Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) reported its financial results for the quarter ended March 31, 2024. The Company’s Quarterly Report on Form 10-Q has been filed with the U.S. Securities and Exchange Commission and may be viewed on the Electronic Document Gathering and Retrieval System at www.sec.gov/edgar, on the System for Electronic Data Analysis and Retrieval + at www.sedarplus.ca, and on the Company’s website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in U.S. dollars.

• Recorded Net Income of Over $3 Million: During the three months ended March 31, 2024, the Company earned net income of $3.64 million, or $0.02 per common share, including operating income of $2.02 million.
• Robust Balance Sheet with Over $220 million of Liquidity and No Debt: As of March 31, 2024, the Company had $222.54 million of working capital including $54.78 million of cash and cash equivalents, $140.80 million of marketable securities (uranium stocks and interest-bearing securities), $28.25 million of inventory, and no debt.
• Over $20 Million of Additional Liquidity from Market Value of Inventory: At current commodity prices, the Company’s product inventory has a market value of approximately $40.82 million, while the balance sheet reflects product inventory carried at cost of $19.96 million.
• Uranium Drives Revenue: The Company sold 300,000 pounds of uranium concentrates (“U₃O₈“) at a weighted average price of $84.38 per pound for $25.31 million, which resulted in a gross profit of $14.26 million and an average gross margin of 56%.
• SX “Phase 1” REE Separation Circuit Development Completed: The Phase 1 modification and enhancements to the existing solvent extraction circuit at the Company’s White Mesa Mill were completed in Q1-2024, and the Mill expects to complete commissioning of the new circuit in Q2-2024.
• Well-Stocked to Capture Market Opportunities: As of March 31, 2024, the Company held 385,000 pounds of finished U₃O₈, 905,000 pounds of finished vanadium (“V₂O₅“), and 11 tonnes of finished high purity, partially separated mixed rare earth carbonate in inventory. The Company holds an additional 495,000 pounds of U₃O₈ as raw materials and work-in-progress inventory (for total finished, raw material and work-in-progress inventory of 880,000 pounds of U₃O₈), along with an estimated 1 – 3 million pounds of solubilized V₂O₅ in tailings solutions that could be recovered in the future. Additionally, at March 31, 2024 the Company had 480 tonnes of REE raw materials (monazite concentrate) in inventory.

Capitalizing on Strong Uranium Pricing:

• During the three months ended March 31, 2024, the Company sold 300,000 pounds of U₃O₈ for $25.31 million or a realized sales price of $84.38 per pound. These sales resulted in a gross profit of $14.26 million ($47.54 per pound of U₃O₈), or a 56% gross margin.
• The Company recently renewed an alternate feed agreement with one of our key customers, providing the Company with an estimated long-term, multi-year, low-cost source of 11,000 to 30,000 pounds of U₃O₈ per year.
• During the three months ended March 31, 2024, the Company continued uranium ore production at its Pinyon Plain (Arizona), La Sal (Utah) and Pandora (Utah) mines.
• Once production is fully ramped up at these mines, which is expected by mid- to late-2024, the Company expects to be mining at a run-rate of 1.1 to 1.4 million pounds of newly mined U₃O₈ per year.
• During 2024, the Company expects to produce approximately 150,000 to 500,000 pounds of finished U₃O₈ from newly mined conventional ore, stockpiled ore, and recycled alternate feed materials, depending on the timing of the ramp up of production at the Company’s Pinyon Plain, La Sal and Pandora mines, and Mill schedule, while increasing to higher levels of production in 2025 and beyond.
• The Company expects to offer to buy uranium and uranium/vanadium ore from third-party miners in the vicinity of the Mill during 2024, which has the potential to contribute to the Company’s production profile.
• On April 30, the U.S. Senate approved by unanimous consent the Prohibiting Russian Uranium Imports Act, which bans the import of Russian uranium products into the U.S. Under the ban, which commences 90 days after enactment and terminates in 2040, all imports of uranium products from Russia will be banned, subject to waivers in the event “no alternative viable source of low-enriched uranium is available to sustain the continued operation of a nuclear reactor or U.S. nuclear energy company.” The Company expects President Joe Biden to sign the bill into law in the coming days.
• In anticipation of continued strength in uranium markets, the Company is preparing two additional mines in Colorado and Wyoming (Whirlwind and Nichols Ranch) for expected production in 2025. If market conditions remain strong, the Whirlwind and Nichols Ranch mines could potentially increase Energy Fuels’ uranium production to a run-rate of over two million pounds of U₃O₈ per year as early as 2025.
• The Company is advancing permitting and other pre-development activities on its large-scale Roca Honda, Sheep Mountain and Bullfrog uranium properties for additional uranium production in the future, which could expand the Company’s uranium production to a run-rate of up to five million pounds of U₃O₈ per year in the coming years.
• The Company continues to evaluate uranium resource and development acquisition and other potentially accretive opportunities as they may arise.
• As of May 1, the spot price of U₃O₈ was $92.00 per pound and the long-term price of U₃O₈, which is the price most relevant for long-term uranium sales contracts, was $80.00 per pound, according to data from TradeTech.

Rare Earth Element Ramp-Up:

• The Mill’s REE production is complementary to its uranium production and does not diminish the Mill’s uranium capacity or production profile in any way.
• The development of the “Phase 1” REE Separation circuit at the Mill was completed on-schedule at the end of Q1-2024, at a cost that is expected to be $7 million to $9 million below the $25 million budget.
• During Q2-2024, the Company expects to produce about 25 – 35 tonnes of separated neodymium praseodymium (“NdPr“) oxide and 10 to 20 tonnes of a “heavy” samarium plus (“SM+“) mixed rare earth carbonate as it commissions the Phase 1 REE Separation circuit, after which time the Company expects to begin processing uranium ore and alternate feed materials for the large-scale production of uranium at the Mill for the remainder of the year and through mid-2026.
• The Mill’s Phase 1 REE separation circuit is expected to have the capacity to produce approximately 800 to 1,000 tonnes of separated NdPr oxide per year. For reference, 1,000 tonnes of NdPr can be used in enough permanent REE magnets to power up to 1 million electric vehicles  (“EVs“) per year. Subject to securing sufficient monazite feed, “Phase 1” capacity is expected to position Energy Fuels in the coming years as one of the world’s leading producers of separated NdPr outside of China.
• Due to the significant opportunity in REEs, Energy Fuels is engineering further enhancements at the Mill to increase NdPr oxide production capacity to approximately 4,000 tonnes – 6,000 tonnes per year by 2027, and to add a separate crack and leach circuit to allow for the simultaneous operation of the Mill’s conventional ore and REE processing circuits. The Company also intends to produce separated dysprosium (“Dy“), terbium (“Tb“) and potentially other advanced REE materials in the future from monazite and potentially other REE process streams by 2028. Phase 2 and Phase 3 are subject to permitting, financing and receipt of sufficient monazite feed.
• To secure cost-effective and reliable supplies of monazite ore, Energy Fuels is securing positions in several heavy mineral sand deposits around the World, which produce monazite sand as a low-cost byproduct of primary ilmenite and rutile (titanium) and zircon (zirconium) production. Monazite sands are a rich source of the ‘magnetic’ REEs used in EVs and a variety of clean energy and advanced technologies.
• The Company has made significant progress in developing its Bahia HMS project in Brazil. Based on preliminary, historical resource estimates, the Company believes the Bahia Project has the potential to supply approximately 3,000 – 10,000 tonnes per year of monazite sand concentrate to the Mill (depending on production rates), containing approximately 1,500 – 5,000 tonnes of total rare earth oxides per year potentially for decades.¹ During the first half of 2023, the Company completed 2,266 meters of sonic drilling to confirm and further delineate the rare earth, titanium, and zirconium mineralization. The Company is currently awaiting the results from the 2023 drilling campaign. In Q1-2024, the Company commenced further sonic drilling. Additionally, the Company completed bulk test work on a 2.5 tonne sample in March 2024 and is currently collecting a larger 15 tonne sample for additional process test work. The Company expects to complete a U.S. Subpart 1300 of Regulation S-K and Canadian National Instrument 43-101 compliant mineral resource estimate on the Bahia Project during 2024.
• On April 21, 2024, the Company announced that it had executed a definitive Scheme Implementation Deed with Base Resources Limited (ASX: BSE) (AIM: BSE) pursuant to which Energy Fuels has agreed to acquire 100% of the issued shares of Base Resources in consideration for (i) 0.0260 Energy Fuels common shares and (ii) AUS$0.065 in cash, payable by way of a special dividend by Base Resources to its shareholders, and together with the Share Consideration, the for each Base Resources ordinary share held, for a total equity value at the time of announcement of approximately AUS$375 million. The Transaction will be effected by way of a scheme of arrangement under Australia’s Corporations Act and is subject to a number of conditions precedent, including the receipt of certain government approvals and the approval of the shareholders of Base Resources.
• Base Resources owns the Toliara Mineral Sand Project in Madagascar, which is a world-class, advanced-stage, low-cost, and large-scale HMS project. In addition to its stand-alone, ilmenite, rutile (titanium) and zircon (zirconium) production capability, the Toliara Project also contains large quantities of monazite. According to a Definitive Feasibility Study on titanium and zirconium minerals and a Preliminary Feasibility Study  on monazite, the Toliara Project boasts a net present value of $2.0 billion at a 10% discount rate, with expected monazite production of approximately 17,000 tpa in its first phase, ramping up to a maximum of 27,795 tpa in its second phase, averaging 21,800 tpa over the life of the project.² Energy Fuels believes its U.S.-based REE separation capabilities have the potential to increase these valuations materially. The Toliara Project is subject to negotiation of fiscal terms applying to the Project with the Madagascar government and the receipt of certain Madagascar government approvals and actions, including the lifting of a suspension on development at the Toliara Project pending negotiation of fiscal terms and the addition of Monazite recovery to the existing mine permit, before development may commence.
• On December 27, 2023, the Company announced that it had entered into a non-binding Memorandum of Understanding with Astron Corporation Limited to jointly develop the Donald Project in Australia. The Donald Project is a well-known HMS and rare earth deposit that the Company believes could provide the Mill with another near-term, low-cost, and large-scale source of monazite sand for the recovery of REE oxides along with the contained uranium. The Donald Project has most licenses and permits in place (or at an advanced stage of completion). The MOU sets out in broad terms the basis upon which the parties would enter into an Australian incorporated Venture under which Energy Fuels would invest up to AUS$180 million (approximately $117 million at current exchange rates) to earn up to a 49% interest in the Venture. In addition, the Company would issue to Astron common shares having a value of up to $17.5 million. Based on a Definitive Feasibility Study, the Donald Project has the potential to produce approximately 7,000 to 8,000 tonnes of monazite per year during its first phase, and 13,000 to 14,000 tonnes during its second phase,³ and is expected by the Company to be another low-cost source of feed for the Mill’s REE production. Although the Company is currently in the process of completing due diligence and negotiating definitive agreements with Astron, there can be no assurance that the Company will enter into definitive agreements to govern the Venture, or if entered into, the terms will be as set out in the MOU, or that the transaction will be completed.
• Together, the Bahia, Toliara, and Donald Projects have the potential to supply the Mill with over 50,000 tonnes of low cost monazite sand per year, assuming the Toliara Project and Donald Project are secured and all three projects are ramped up to full expected production capacity.
• On April 24, 2024, the Company released an AACE International Class 4 Pre-Feasibility Study (not a Pre-Feasibility Study subject to or intended to be compliant with NI 43-101 or S-K 1300) dated April 22, 2024, indicating globally competitive capital and operating costs for its planned Phase 2 expanded REE oxide production at the Mill. The economics detailed in the Mill PFS are for the Phase 2 expansion of REE separation capacity in one or more additional facilities at the Mill, capable of processing 30,000 tonnes per annum (“tpa”) of Monazite to produce approximately 3,000 tpa of NdPr oxide. The Mill PFS shows globally competitive capital expenditures of $348 million for the 30,000 tpa Phase 2 separation facility and an average processing cost of $29.88/kg NdPr. This analysis does not include any capital or operating costs associated with the recovery of Dy and Tb or any revenues associated with the sales of those “heavy” REE oxides. The Mill PFS can be viewed on the Company’s website, www.energyfuels.com.
• Upon successful completion of the Base Resources transaction, Energy Fuels plans to update the Toliara DFS2 and the Toliara Monazite PFS and re-issue those reports in a form that complies with NI 43-101 and S-K-1300, and that also updates and incorporates the results of the Mill PFS to expand Phase 2 production capacity from a 30,000 tpa Monazite process facility capable of producing approximately 3,000 tpa of NdPr oxide to a 40,000 – 60,000 tpa Monazite process facility which would generate 4,000 – 6,000 tpa of NdPr, 150 – 225 tpa of Dy, and 50 – 75 tpa of Tb. The Phase 2 separation facility is subject to completion of engineering design and receipt of required permits and licenses.

Vanadium Highlights:

• The Company produces high purity V₂O₅ from time-to-time and carries that material in inventory for sale into market strength, most recently during Q1-2023 when the Company sold approximately 79,344 pounds of V₂O₅ for a realized sales price of $10.98 per pound.
• The Company currently holds approximately 905,000 pounds of V₂O₅ in inventory.
• As of May 1, the spot price of V₂O₅ was $5.87 per pound, according to data from Fastmarkets.

Medical Isotope Highlights:

• The Company continued advancing its program to evaluate the potential to recover radioisotopes from its process streams for use in emerging targeted alpha therapy cancer therapeutics.
• In June 2023, the Utah Division of Waste Management and Radiation Control issued the Company a research and development license for the recovery of R&D quantities of Ra-226 at the Mill.
• During 2024, the Company intends to complete engineering on the R&D pilot facility for the production of Ra-226 at the Mill; to set up the first stages of the pilot facility; and to produce R&D quantities of Ra-226 at the Mill for testing by end-users of the product.

Mark S. Chalmers, Energy Fuels’ President and CEO, stated:

“Energy Fuels maintained our momentum from 2023, by reporting continued profitability in Q1-2024, driven mainly by uranium. We also continued to make extraordinary progress diversifying into the complementary HMS and rare earth oxide businesses.

“During the quarter, we made profitable uranium sales into our portfolio of long-term utility contracts, and we completed two opportunistic spot sales averaging nearly $103 per pound of U₃O₈, enabled by our significant uranium inventories backed by our near-term low-cost uranium production capacity. From these sales, we maintained high gross margins, averaging roughly 56%, contributed to in large part by our low-cost alternate feed material and other historic uranium production which we have maintained in inventory pending increased uranium prices such as we see today.

“We recently renewed a multi-year alternate feed agreement with one of our key customers, providing the Company with a long-term, low-cost source of U₃O₈. Finally, the ramp-up of our conventional mines in Arizona and Utah continues to proceed on budget and on schedule. We plan to begin processing alternate feed materials for the production of uranium starting in Q3-2024, followed by a conventional ore run later in 2024 or 2025. In order to optimize recoveries and minimize downtime, it is necessary to build a large stockpile of conventional ore before processing it at the Mill. While we build the necessary uranium stockpile, we are commissioning our new rare earth separation circuit.

“We continue to make extraordinary progress on rare earth elements by leveraging our uranium capabilities and permits. We completed the modifications and enhancements to the Mill’s SX circuit, by adding up to 1,000 tonnes of NdPr separation capabilities through the development of our Phase 1 REE separation circuit. This means Energy Fuels’ White Mesa Mill now has one of the largest rare earth separation circuits in the World, ex China. This is obviously highly strategic. During Q2, we plan to process stockpiled monazite and produce roughly 25 – 35 tonnes of separated NdPr oxide, along with 10 – 20 tonnes of a ‘heavy’ mixed rare earth concentrate, as we commission the new circuit.

“Once the NdPr run is complete, we will shift our focus to processing alternate feed materials and conventional ore for uranium recovery later in 2024, through mid- 2026. By 2026 or 2027, we expect to have significant quantities of monazite from our newly secured mineral sand projects. We also plan to have a dedicated monazite crack-and-leach facility completed or under construction by that time. We are carefully calibrating Mill and mine schedules to accommodate both uranium and rare earths production, without diminishing the capacity for either, in a clear optimization and diversification strategy.

“We are also making spectacular progress toward securing, large-scale, low-cost sources of monazite that the Mill can process into rare earth oxides in the future. Early on, it became very apparent that to become a low-cost, world-scale rare earth oxide producer, we needed to secure our own supply chains for monazite to better control our costs and production schedules. Monazite sand from HMS projects is clearly one of the best, lowest cost source of rare earths, due to excellent natural distributions of both the ‘light’ and ‘heavy’ rare earths needed for magnets, high total and ‘magnet’ rare earth grades, and the fact that it is produced as a low-cost byproduct of primary titanium and zirconium mineral production.

“We acquired the Bahia HMS Project in Brazil in 2023, which we are advancing toward production. In December 2023, we announced an MOU to acquire a 49% interest in the Donald Mineral Sand Project in Australia, which is moving forward toward definitive agreements. We also recently announced a proposed acquisition of Base Resources, which owns the Toliara Project in Madagascar. Many experts believe the Toliara Project is one of the world’s premier mineral sand deposits, due to its massive scale, projected low costs, and the high quality and payability of its ilmenite, rutile, zircon and rare earth minerals. Between these three projects, assuming successful acquisition and/or development of the Toliara Project, Donald Project and Bahia Project, we will have secured up to approximately  50,000 tpa of monazite to supply the Mill, with an expected ramp-up during 2026 – 2028. This quantity of monazite would contain estimated recoverable quantities of up to roughly  5,000 tpa of NdPr oxide, 200 tpa of Dy oxide, and 70 tpa of Tb oxide.

“Importantly, upon the successful completion of the Base Resources acquisition, Energy Fuels will also access Base Resources’ proven leadership and heavy mineral sands operations team, which has an exceptional record of responsible asset development, construction, commissioning and profitable production in Africa. The Base Resources team will not only continue to oversee the development and operation of Toliara but will also enhance Energy Fuels’ heavy mineral sands teams in Australia and Brazil, thus allowing the Company to maximize the value of all projects to the Company’s shareholders.

“We also released the results of the Mill PFS demonstrating that the Mill is expected to have low capital and operating costs that we believe are among the lowest in the World. Now that we are securing our supply chains and demonstrating our commercial viability and competitiveness, we are in the process of advancing discussions with commercial customers on sales opportunities, and the U.S. government on sales and financial support.

“Another key benefit of our HMS project acquisitions that cannot be overlooked, is diversification into the HMS market, which is independent of the uranium and REE markets. The Toliara Project is recognized as a world-class HMS project based on the contained ilmenite and rutile (titanium) and zircon (zirconium), without any reliance on monazite or REEs, and if developed and operating is expected to generate significant cash flows independent of the prices of uranium and REEs.

“At Energy Fuels, we are building a diversified, U.S.-based critical minerals company, centered on our core uranium processing capabilities. Our goal is to create a profitable company able to withstand the business cycles associated with many critical minerals. We plan to be globally competitive in these markets, offering commercial and government customers a reliable, low-cost U.S. alternative.”

Selected Summary Financial Information:

QUALIFIED PERSON

THE TECHNICAL INFORMATION IN THIS PRESS RELEASE RELATING TO THE TOLIARA PROJECT AND DONALD PROJECT HAS BEEN PREPARED IN ACCORDANCE WITH JORC STANDARDS, AND THE TECHNICAL INFORMATION RELATING TO THE BAHIA PROJECT HAS BEEN PREPARED BASED ON HISTORICAL EXPLORATION RESULTS REPORTED BY A PREVIOUS OWNER OF THE PROJECT, ALL OF WHICH TECHNICAL INFORMATION HAS BEEN REVIEWED ON BEHALF OF THE COMPANY BY DANIEL KAPOSTASY, VP, TECHNICAL SERVICES OF ENERGY FUELS RESOURCES (USA) INC., A QUALIFIED PERSON UNDER BOTH S-K 1300 AND NI 43-101. THE JORC COMPLIANT TECHNICAL INFORMATION CONTAINED HEREIN RELATING TO THE TOLIARA PROJECT WAS DISCLOSED BY BASE RESOURCES ON DECEMBER 14, 2023. THE JORC COMPLIANT TECHNICAL INFORMATION CONTAINED HEREIN RELATING TO THE DONALD PROJECT WAS DISCLOSED BY ASTRON ON JUNE 27, 2023. THE TECHNICAL INFORMATION CONTAINED HEREIN RELATING TO THE BAHIA PROJECT IS BASED ON THE COMPANY’S PRELIMINARY CALCULATIONS USING THE GRADES AND QUANTITIES ESTIMATED IN 16 DIFFERENT EXPLORATION REPORTS PREPARED BY THE PREVIOUS OWNER AND FILED WITH THE BRAZILIAN GOVERNMENT’S NATIONAL AGENCY OF MINERALS (ANM) OVER SEVERAL YEARS (2011-2019). A QUALIFIED PERSON HAS NOT DONE SUFFICIENT WORK TO CLASSIFY ANY OF THIS TECHNICAL INFORMATION RELATING TO THE TOLIARA PROJECT, DONALD PROJECT OR BAHIA PROJECT AS BASED ON CURRENT NI 43-101 OR S-K 1300 ESTIMATES OF MINERAL RESOURCES, MINERAL RESERVES OR EXPLORATION RESULTS. ACCORDINGLY, ENERGY FUELS IS NOT TREATING ANY OF THIS TECHNICAL INFORMATION AS BASED ON CURRENT ESTIMATES OF MINERAL RESOURCES, MINERAL RESERVES, OR EXPLORATION RESULTS AND IS TREATING THE INFORMATION DISCUSSED ABOVE RELATING TO THE TOLIARA PROJECT, DONALD PROJECT AND BAHIA PROJECT AS HISTORICAL IN NATURE.

ABOUT ENERGY FUELS

Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America’s key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U₃O₈ per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U₃O₈ per year. The Company recently acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development.