Highlights

• Uranium Royalty Corp (URC) is exercising its option to purchase US$10 million of physical uranium, secured under its strategic and foundational investment in the 2018 IPO of Yellow Cake plc (YCA);
• Initial tranche to be exercised by URC to acquire 348,068 pounds of U₃O₈ at US$28.73 per pound for delivery on or before April 30, 2021;
• The acquisition provides URC with direct physical U₃O₈ holdings at an opportunistic price, which is ~7% below the most recent spot price published by TradeTech on March 29, 2021 of US$30.75 per pound; and
• Together with our recently announced proposed acquisitions of royalty interests in the McArthur River and Cigar Lake mines, URC is ideally positioned to benefit from improving uranium prices.

Uranium Royalty Corp. (TSX-V: URC) announces the exercise of its option to acquire 348,068 pounds of U₃O₈ pursuant to its existing strategic arrangements with Yellow Cake plc at a price of US$28.73 per pound. The Company expects to complete the acquisition and take delivery of the U₃O₈ on or before April 30, 2021.

Scott Melbye, Chief Executive Officer of URC, commented: “We are pleased to announce this exercise which gives URC an initial direct uranium stake at an opportunistic price that is below the most recent spot price of US$30.75 (TradeTech) in what has been a strengthening uranium spot market.  This decision is in line with our goal of gaining exposure to uranium prices through sector-focused investments and it clearly demonstrates the value of our strategic Yellow Cake investment. In addition to this optionality, we also hold a 5.9% stake in Yellow Cake, which itself announced this month that it is acquiring an additional 3.9 million pounds of U₃O₈, bringing its total holdings to 13.2 million pounds (prior to our exercise).”

Mr. Melbye continued: “The addition of this direct physical uranium interest further diversifies our unique uranium-focused portfolio and adds a valuable asset to the balance sheet. As of March 29, 2021, we have approximately $46 million in cash and listed securities. Together with our recently announced proposed acquisitions of royalty interests in the McArthur River and Cigar Lake mines, we believe we are uniquely positioned to benefit from further improvements in the uranium market.”

The acquisition is being completed pursuant to the option granted to the Company in connection with its 2018 IPO investment in Yellow Cake. Pursuant to the option, the Company may acquire between US$2.5 million and US$10 million of U₃O₈ per year from Yellow Cake between January 1, 2019 and January 1, 2028, up to a maximum aggregate amount of US$31.25 million worth of U₃O₈.  Yellow Cake is a listed uranium holding company that purchases U₃O₈ through the spot market and a long-term supply agreement with National Atomic Company Kazatomprom JSC.

About Uranium Royalty Corp.

Uranium Royalty Corp. is a pure-play uranium royalty company focused on gaining exposure to uranium prices by making strategic investments in uranium interests, including royalties, streams, debt and equity investments in uranium companies, as well as through holdings of physical uranium. The Company recognizes the inherent cyclicality of valuations based on uranium prices, including the impact of such cyclicality on the availability of capital within the uranium sector and the current historically low uranium pricing environment. URC intends to execute on its strategy by leveraging the deep industry knowledge and expertise of its management team and the Board to identify and evaluate investment opportunities in the uranium industry. The Company’s management and the Board include individuals with decades of combined experience in the uranium and nuclear energy sectors, including specific expertise in mine finance, project identification and evaluation, mine development and uranium sales and trading.