The following discussion and analysis should be read in conjunction with our
unaudited condensed consolidated financial statements for the three-month period
ended March 31, 2022, and the related notes thereto, which have been prepared in
accordance with U.S. GAAP. Additionally, the following discussion and analysis
should be read in conjunction with Management's Discussion and Analysis of
Financial Condition and Results of Operations and the audited consolidated
financial statements included in Part II of our Annual Report on Form 10-K for
the year ended December 31, 2021. This Discussion and Analysis contains
forward-looking statements and forward-looking information that involve risks,
uncertainties and assumptions. Our actual results may differ materially from
those anticipated in these forward-looking statements as a result of many
factors. See section heading "Cautionary Statement Regarding Forward-Looking
Statements," above.

While the Company has established the existence of multiple Mineral Resources
and extracts and processes saleable uranium from these operations, the Company
has only established Proven Mineral Reserves or Probable Mineral Reserves, as
defined under SEC S-K 1300, at its Sheep Mountain Project. As a result, the
Company is a "Development Stage Issuer" as defined by S-K 1300, as it is engaged
in the preparation of Mineral Reserves for extraction on at least one material
property. Under U.S. GAAP, for a property that has no Proven or Probable
Reserves, the Company capitalizes the cost of acquiring the property (including
mineral properties and rights), and expenses all costs related to the property
incurred subsequent to the acquisition of such property. Acquisition costs of a
property are depreciated over its estimated useful life for a revenue generating
property or expensed if the property is sold or abandoned. Acquisition costs are
subject to impairment if so indicated.

All dollar amounts stated herein are in U.S. dollars, except share and per share
amounts and currency exchange rates unless specified otherwise. References to
Cdn$ refer to Canadian currency, and $ to United States currency.


Overview

We responsibly produce several of the raw materials needed for clean energy and advanced technologies, including uranium, rare earth elements and vanadium.



Our primary product is U3O8 (also known as yellowcake), which, when further
processed, becomes the fuel for the generation of clean nuclear energy.
According to the Nuclear Energy Institute, nuclear energy provides nearly 20% of
the total electricity and approximately 50% of the clean, carbon-free
electricity generated in the U.S. The Company generates revenues from extracting
and processing materials for the recovery of uranium for our own account, as
well as from toll processing materials for others.

Our uranium concentrate is produced from multiple sources:

•Conventional recovery operations at the Mill, including:

•Processing ore from uranium mines; and

•Recycling of Alternate Feed Materials, which are uranium-bearing materials that are not derived from conventional ore; and

•ISR operations.



The Company also has a long history of conventional vanadium recovery at the
Mill when vanadium prices support those activities. From late 2018 to early
2020, the Company completed a campaign to recover vanadium from solutions in the
tailings management system at the Mill ("Pond Return") from which it recovered
over 1.8 million pounds of high-purity V2O5. The Company has also recovered
uranium from Pond Return since 2015 and continues to evaluate opportunities for
copper recovery from our Pinyon Plain Project.

The Company is also currently producing an intermediate REE product called mixed
RE Carbonate. In 2020, the Company began evaluating the potential to recover
REEs at the Mill. By October 2020, the Company had produced a mixed RE
Carbonate, ready for separation, on a pilot scale from natural monazite sands.
In December 2020, the Company entered into a contract to acquire natural
monazite sands from a heavy mineral sands operation in Georgia, from which it
expects to recover uranium and produce a commercially salable mixed RE Carbonate
containing approximately 71% total rare earth oxide ("TREO") on a dry basis. In
March 2021, the Company began ramping up commercial-scale production of mixed RE
Carbonate from these natural monazite sands. In July 2021, the Company announced
the signing of a definitive supply agreement and began commercial shipments of
RE Carbonate to a separation facility in Europe, which is the next step in
producing usable REE products. The Company is also in discussions with other
entities to acquire additional supplies of natural

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monazite sands, and is working with U.S. government agencies and national
laboratories on various REE initiatives, including having completed work with
the U.S. Department of Energy ("DOE") to evaluate the potential to process other
types of REE- and uranium-bearing ores at the Mill produced from coal-based
resources. The Company is also evaluating the potential to perform REE
separation and other downstream REE activities, including metal-making and
alloying, in the future at the Mill or elsewhere in the U.S.

Finally, the Company is evaluating, pursuant to a strategic alliance with
RadTran, LLC ("RadTran"), a technology development company focused on closing
critical gaps in the procurement of medical isotopes for emerging TAT cancer
therapeutics and other applications, the feasibility of recovering Th-232, and
Ra-226 from the Company's existing RE Carbonate and uranium process streams at
the Mill and, together with RadTran, is evaluating the feasibility of recovering
Ra-228 from the Th-232, Th-228 from the Ra-228 and concentrating Ra-226 at the
Mill using RadTran technologies. Recovered Ra-228, Th-228 and Ra-226 would then
be sold to pharmaceutical companies and others to produce Pb-212, Ac-225,
Bi-213, Ra-224 and Ra-223, which are the leading medically attractive TAT
isotopes for the treatment of cancer. Existing supplies of these isotopes for
TAT applications are in short supply, and methods of production are costly and
currently cannot be scaled to meet the demand created as new drugs are developed
and approved. This is a major roadblock in the research and development of new
TAT drugs as pharmaceutical companies wait for scalable and affordable
production technologies to become available. Under this initiative, the Company
has the potential to recover valuable isotopes from its existing process streams
for use in treating cancer, thereby recycling back into the market material that
would otherwise be lost to disposal.

The Mill, located near Blanding, Utah, processes ore mined from the Four Corners
region of the United States, as well as Alternate Feed Materials that can
originate worldwide. The Company has the only operating uranium mill in the
United States, which is also the last operating facility left in the U.S. with
the ability to recover vanadium from primary ore sources. The Mill is licensed
to process an average of 2,000 tons of ore per day and to produce approximately
8.0 million pounds of U3O8 per year. The Mill has separate circuits to process
conventional uranium and vanadium ores, as well as Alternate Feed Materials and
REEs.

For the last several years, no mines have operated commercially in the vicinity
of the Mill due to low uranium prices. As a result, in recent years, Mill
activities have focused on processing Alternate Feed Materials for the recovery
of uranium under multiple toll processing arrangements, as well as Alternate
Feed Materials for our own account. Additionally, in recent years, the Mill has
recovered dissolved uranium and vanadium through its Pond Return program from
the Mill's tailings management system that was not fully recovered during the
Mill's prior forty years of operations. During the three months ended March 31,
2022, Mill activities focused primarily on processing monazite sands and
producing a mixed RE Carbonate. The Company is actively pursuing additional
monazite sands and Alternate Feed Materials for processing at the Mill.

The Mill also continues to pursue additional sources of feed materials. For
example, a significant opportunity exists for the Company to potentially
participate in the clean-up of abandoned uranium mines in the Four Corners
Region of the U.S. The U.S. Justice Department and Environmental Protection
Agency announced settlements in various forms in excess of $1.5 billion to fund
certain cleanup activities on the Navajo Nation. Additional cleanup settlements
with other parties are also pending. Our Mill is within economic trucking
distance, and is uniquely positioned in this region, to receive uranium-bearing
materials from these cleanups and recycle the contained U3O8, while, at the same
time, permanently disposing of the cleanup materials outside the boundaries of
the Navajo Nation in our licensed tailings management system. There are no other
facilities in the U.S capable of providing this service. In addition, as
previously announced, beginning in the second quarter of 2019 and continuing
through the first quarter of 2022, the Company has been receiving shipments of
material generated in the cleanup of a large, historically producing
conventional uranium mine located in northwest New Mexico. In addition to
generating revenue for the Company, this project demonstrates the ability of the
Mill to responsibly clean up projects similar to those requiring cleanup on the
Navajo Nation.

The Company's ISR operations consist of our Nichols Ranch Project and Alta Mesa Project, both of which are on standby at current uranium prices.



While we believe the current spot price of uranium has not supported production
for the majority of global uranium producers over the past several years, having
resulted in significant production cuts, the spot price of uranium has improved
in recent months to levels that could support production if these prices are
sustained and result in long-term supply contracts with nuclear utilities. In
anticipation of potential price recoveries and contracts, we continue to
maintain and advance our resource portfolio. We stand ready to: resume wellfield
construction and resume production at our Nichols Ranch Project; resume
wellfield construction, perform plant upgrades, conduct exploration, and resume
production at our Alta Mesa facility; and mine and process resources from our
Pinyon Plain Project, La Sal Project and/or Whirlwind Project. We believe we can
bring this new production to the market within approximately six to eighteen
months of a positive production decision. Longer term, we expect to develop our
large conventional mines at Roca Honda, Henry Mountains, and/or Sheep Mountain.


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COVID-19



The Company continues to respond to the effects of the global coronavirus
("COVID-19") pandemic on the Company's business objectives, projections and
workforce. To date, although the Company has made operational adjustments since
the onset of the pandemic to ensure its workforce remains protected, the Company
has not been required to shut down any operations as a result of COVID-19. None
of these operational adjustments have been material to the Company. The Company
has evaluated any potential future shutdown of Company production facilities as
a result of COVID-19, and has determined that any such shutdown could be
accommodated by the Company in a manner consistent with a typical shutdown of
Company production facilities as a result of depressed commodity prices.
Management believes the Company is well-capitalized and will be able to
withstand facility shutdowns or depressed share prices as a result of COVID-19
for at least the next twelve months.

Update on Rare Earth Element Initiative



On March 1, 2021, the Company and Neo Performance Materials Limited ("Neo")
announced a new REE production initiative spanning European and North American
critical material supply chains. Under an agreement in principle signed on March
1, 2021 and finalized into a definitive agreement in July 2021, Energy Fuels
will process natural monazite sands, currently being mined in the state of
Georgia by The Chemours Company, into an RE Carbonate at the Mill and ship a
portion of the produced RE Carbonate to Neo's rare earth separations facility in
Sillamäe, Estonia ("Silmet"). Silmet will then process the RE Carbonate into
separated REE materials for use in REE permanent magnets and other REE-based
advanced materials. On July 7, 2021, the Company announced that the first
container (approximately 20 tonnes of product) of an expected 15 containers of
mixed RE Carbonate had been successfully produced by Energy Fuels at the Mill
and was en route to Silmet. This commercial-scale production of RE Carbonate by
Energy Fuels from a U.S. mined REE resource positions Energy Fuels as the only
company in North America that currently produces a monazite-derived, enhanced
REE material. In addition, since the RE Carbonate has been chemically altered to
recover the REEs and remove impurities, thereby rendering it ready for REE
separation without further processing, this is currently the most advanced REE
material being produced on a commercial scale in the U.S. today. The physical
delivery of this product also represents the launch of a new, environmentally
responsible REE supply chain that allows for source validation and tracking from
mining through to final end-use applications for manufacturers in North America,
Europe, Japan, and other nations.

The Company also announced on March 1, 2021 that, in addition to supplying RE
Carbonate to Neo, Energy Fuels is evaluating the potential to develop U.S.
separation capabilities at the Mill, or nearby, as it works to increase its
monazite sand supplies, thereby integrating a U.S. rare earth supply chain in
the coming years, in addition to supplying RE Carbonate to European markets. On
April 27, 2021, the Company announced it had engaged Carester to prepare a
scoping study for the development of a solvent extraction REE separation circuit
at the Mill utilizing the Mill's existing equipment and infrastructure to the
extent applicable, to create a continuous, integrated and optimized REE
production sequence. Based in Lyon, France, Carester is a leading global
consultant in the production of separated REE products, with expertise in
designing, constructing, operating and optimizing REE production facilities
globally. Carester's scoping work included an evaluation of the Mill's current
monazite leaching process, preparation of an REE separation flow sheet, capital
and operating expense estimates, incorporation of new technologies where
applicable, and recommendations on equipment vendors. Based on the results of
this scoping work, the Company is evaluating installing a full separation
circuit at the Mill to produce both "light" and "heavy" separated REE oxides in
the coming years, subject to successful licensing, financing, and commissioning
and continued strong market conditions, and has hired Carester to support these
REE separation initiatives.

In addition, on April 21, 2021, the Company announced the execution of a
non-binding MOU for the supply of natural monazite sands from IperionX Limited's
("IperionX") Titan Project in Tennessee, if and when the project is developed
and mined. IperionX's Titan Project covers a large area of heavy mineral sands
properties in Tennessee prospective for titanium, zircon, monazite and other
valuable minerals such as high-grade silica sand and other refractory minerals.
Thereafter, the Company also announced that the DOE Office of Fossil Energy and
National Energy Technology Laboratory had exercised its option to award Energy
Fuels, working with a team from Penn State University, an additional $1.75
million to complete a feasibility study on the production of REE products from
natural coal-based resources, as well as from other materials such as
REE-containing ores like the natural monazite sands the Company is currently
processing at the Mill. This award followed the DOE providing Energy Fuels a
$150,000 contract in 2020 for the successful completion of a conceptual design
for the same initiative, resulting in a total award to Energy Fuels of $1.9
million.

On December 15, 2021, the Company announced the execution of a memorandum of
understanding ("MOU") with Nanoscale Powders LLC ("NSP") for the development of
a novel technology for the potential production of REE metals, subject to the
finalization of definitive agreements. We believe this technology, which was
initially developed by NSP, and will be advanced by the Company and NSP working
together, has the potential to revolutionize the REE metal making industry by
reducing costs of production, reducing energy consumption, and significantly
reducing greenhouse gas emissions. Producing REE metals and alloys is a key step
in a fully integrated REE supply chain, after commercial production of separated
REE oxides and before the

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manufacture of neodymium iron boron ("NdFeB") magnets used in electric vehicles, wind generation and other clean energy and advanced technologies.



During the three months ended March 31, 2022, the Company also began
commercial-scale partial separation of lanthanum (La) on a small scale from its
RE Carbonate using an existing solvent extraction circuit at the Mill. This
represents the first commercial level REE separation to occur in the U.S. in
many years.

On April 13, 2022, the Company announced its first commercial shipments of three
critical mineral products in a single week, having sent U3O8 to a uranium
conversion facility in the U.S. to enrich for use in the production of clean,
carbon-free nuclear energy, V2O5 to a ferrovanadium ("FeV") conversion facility
in the U.S. to be sold into the steel and specialty alloy industries, and RE
Carbonate to the Silmet facility in Estonia for separation into advanced REE
products. At the same time, the Company announced that it had begun partial
commercial-scale REE separations at the Mill utilizing existing Mill facilities,
thereby producing a more advanced RE Carbonate in 2022 than it did in 2021.

Known Trends or Uncertainties



The Company has faced depressed uranium and vanadium prices in previous years
which have resulted in the Company having negative cash flows and net losses in
previous years. We are not aware at this time of any trends or uncertainties
that have had or are reasonably likely to have a material impact on revenues or
income of the Company other than (i) continued strengthening of uranium and
vanadium prices which could result in the Company selling inventories at
increased prices and/or signing contracts with nuclear utilities for the
long-term supply of uranium; (ii) the proposed U.S. Uranium Reserve, which, if
implemented, could result in improved uranium sales prices; and (iii) the
Company's REE and TAT radioisotope initiatives, which, if successful, could
result in improved results from operations in future years. We are not aware at
this time of any events that are reasonably likely to cause a material change in
the relationship between costs and revenue of the Company.

Uranium Market Update



According to monthly price data from TradeTech LLC ("TradeTech"), uranium spot
prices rose significantly during the first quarter 2022 (the "Quarter"), though
the spot price dropped moderately following the end of the Quarter. The uranium
spot price began the Quarter at $42.00 per pound on December 31, 2021 and rose
nearly 40% to $58.20 per pound on March 31, 2022. Subsequent to the end of the
Quarter, the price rose further to $63.75 per pound on April 15, 2022 and then
dropped to $53.50 per pound during the week of April 22, 2022. During the
Quarter, the uranium spot price hit a high of $58.50 per pound on March 11, 2022
and a low of $42.00 per pound at the beginning of the Quarter. TradeTech price
data indicates that long-term U3O8 prices rose during the Quarter as well,
beginning the Quarter at $45.00 per pound and ending the Quarter at $50.00 per
pound. On May 6, 2022, TradeTech reported a spot price of $54.75 per pound and a
long-term price of $52.00 per pound U3O8.

The following important developments occurred during the Quarter:



-Political unrest affected Kazakhstan, which is the largest uranium producer in
the world, including the resignation of its government, national protests, and a
"security clampdown on transport, financial, and communications systems."
(TradeTech, NMR, January 7, 2022). This caused an "extremely volatile price
cycle last week [the week of January 7, 2022]" (TradeTech NMR, January 14,
2022);

-Cameco Corporation ("Cameco") announced the restart of its McArthur River/Key
Lake Mill in 2024, ramping up to 15 million pounds per year, which is 40% less
than its annual licensed capacity, at which point Cameco will reduce its annual
production at Cigar Lake to 13.5 million pounds per year, or 25% below its
annual capacity. (TradeTech NMR, February 11, 2022);

-French President Emmanuel Macron, who won re-election in April 2022, announced
that he supports the construction of up to 14 new nuclear reactors in France in
order to move the country away from fossil fuels. (TradeTech, NMR, February 11,
2022);

-On February 24, 2022, Russia invaded Ukraine, causing world leaders to "place
unprecedented sanctions on the Russian state." (TradeTech, NMR, February 25,
2022). However, the U.S. Treasury Department issued "General Licenses" to
authorize certain transactions with Russia to continue, including those related
to the nuclear sector (conversion, enrichment, fabrication, transport, of
uranium);

-On March 3, 2022, in the midst of escalating aggression in its war against
Ukraine, Russian forces attacked the Zaporozhye Nuclear Power Plant located in
southeastern Ukraine, causing Energoatom - Ukraine's nuclear company - to call
on "international monitors to intervene to ensure the safety of the country's 15
commercial reactors." (TradeTech, NMR, March 4, 2022);

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-According to TradeTech, "activity in the spot uranium market was driven by
increasing uncertainty as the events in Ukraine continue to unfold." (TradeTech,
NMR, March 4, 2022). Further, "the prospect of widespread restrictions on the
import of Russian nuclear fuel have amplified concerns about the availability of
uranium to a market that is in a structural supply deficit." (TradeTech, NMR,
March 11, 2022). By mid-March, U.S. leaders were calling for a ban on Russian
uranium imports into the U.S. and a ban on Russian companies from participating
in U.S. capital markets. (TradeTech, NMR, March 18, 2022); and

-After the end of the Quarter, the spot price rose to $63.75 per pound during
the week of April 15, 2022 then dropped back down to $53.50 per pound the
following week, "which represents a significant price movement in a period
marked by historic volatility." TradeTech posits that the uranium market has
evolved and attracted a wider array of participants, which is believed to mean
that "the market has developed deeper ties to the broader financial markets…
[and that] the uranium price now exhibits a sensitivity to trends and
developments that impact investor sentiment… [which has] translated to greater
volatility." The selloff during the week of April 21, 2022 was attributed to a
broader selloff in markets "partially driven by bearish sentiment tied to rising
inflation and interest rates." (TradeTech, NMR, April 21, 2022).

The Company continues to believe that certain uranium supply and demand
fundamentals point to higher sustained uranium prices in the future, including
significant production cuts in recent years, along with significant increased
demand from utilities, financial entities, traders and producers. The Company
believes that financial entities purchasing uranium on the spot market for
long-term investment represent a fundamental shift in the uranium market by
increasing demand and removing readily available material from the market that
would otherwise serve as supply to utilities, traders, and others. Further, the
Company believes that Russia's invasion of Ukraine has sparked a widespread
trend away from Russian-sourced nuclear fuel supply. In response, the Company
desires to enter into term contracts with utilities for the sale of uranium at
prices that support production. With less uranium available on the spot market
and the potential for significant future price volatility, the Company is
tracking the potential willingness of utilities to accept higher-term offers.
The Company also continues to believe that a large degree of uncertainty exists
in the market, primarily due to the size of mobile uranium inventories,
transportation issues, premature reactor shutdowns in the U.S., trade issues,
the life of a given uranium mine, conversion/enrichment shutdowns, the opaque
nature of inventories and secondary supplies, unfilled utility demand, and the
market activity of state-owned uranium and nuclear companies.

Therefore, the Company will continue to closely monitor uranium markets and seek
opportunities to enter into long-term sales contracts with utilities at prices
that sustain production, cover overhead costs, and provide a reasonable
rate-of-return to investors while also holding back some production to allow the
Company and its shareholders the ability to participate in further upside price
movements. The Company will also continue to evaluate the timing and method for
the disposition of its existing uranium inventories, including selling into the
spot market or as a part of one or more term contracts if procured.

Rare Earth Market Update

REEs are a group of 17 chemical elements (the 15 elements in the lanthanum
series, plus yttrium and scandium) that are used in a variety of clean energy
and advanced technologies. Monazite, the source of REEs currently utilized by
the Company, also contains significant recoverable quantities of uranium, which
fuels the production of carbon-free electricity using nuclear technology.
According to industry analyst Roskill, most demand for REE's is in the form of
separated REEs, "as most end-use applications require only one or two separated
rare earth compounds or products." (Roskill, Rare Earths, Outlook to 2030, 20th
Edition). The main uses for REEs include: (i) battery alloys; (ii) catalysts;
(iii) ceramics, pigments and glazes; (iv) glass polishing powders and additives;
(v) metallurgy and alloys; (vi) permanent magnets; (vii) phosphors; and (viii)
others (Adamas Intelligence). By volume, REEs used for permanent magnets
(neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb)) and
catalysts (cerium (Ce) and lanthanum (La)) comprised 60% of total consumption,
yet over 90% of the value consumed.

Typical natural monazite sands from the southeast U.S. average about 55% TREO
and 0.20% uranium, which is the typical grade of uranium found in uranium mines
that have historically fed the Mill. Of the 55% TREO typically found in the
monazite sands, the neodymium and praseodymium ("NdPr") comprise approximately
22% of the TREO. NdPr are among the most valuable of the REEs, as they are the
key ingredient in the manufacture of high-strength permanent magnets which are
essential to the lightweight and powerful motors required in electric vehicles
("EVs") and permanent magnet wind turbines used for renewable energy generation,
as well as in an array of other modern technologies. Monazite also contains
higher concentrations of "heavy" rare earths, including dysprosium (Dy) and
terbium (Tb) used in permanent magnets, relative to other common REE ores.

The Company is currently primarily focused on NdPr and, to a lesser extent, La,
Ce, Sm, Dy and Tb. The REE supply chain starts at the mine. REEs are mined both
as a primary target, like the Mountain Pass REE mine in California, and as a
byproduct, which is the case for Chemours' Offerman Mineral Sand Plant, where
the natural monazite sands are physically separated from

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the other mined sands. Mining creates an ore, which in the case of the Chemours
material is the natural monazite sands that are physically separated from the
other mined mineral sands. The ore will then go through a process of cracking
and cleaning at the Mill that may include acids or caustic solutions, elevated
temperature, and pressure to recover the uranium and free the REEs from the
mineral matrix. After removal of the uranium (and other radionuclides), which
will be sold into the commercial nuclear fuel cycle for the creation of
carbon-free nuclear energy, this solution is cleaned of any remaining
deleterious elements (including remaining radioactive elements) and made into an
RE Carbonate, which is a form acceptable as a solvent extraction ("SX")
feedstock for REE separation. SX facilities then use solvents and a series of
mixer-settlers for the separation of the REEs in the RE Carbonate from each
other and to create the desired purified REE products (often as oxides) for the
market or particular end user. Separated REE products are typically sold to
various markets, depending on the use. Separated REE products can be made into
REE metals and metal-alloys, which are used for magnets and other applications.

At this time, the Mill is producing an RE Carbonate, a portion of which has been
sold to Neo, and which is expected to be sold, potentially, to other third-party
SX separation facilities for separation into individual separated REE products.
The Mill is evaluating the potential to perform SX REE separation, and
potentially other downstream REE activities, including metal-making and
alloying, in the future at the Mill or elsewhere in the U.S.

REEs are commercially transacted in a number of forms and purities. Therefore,
there is no single price for REEs collectively, but numerous prices for various
REE compounds and materials. The primary value that the Company expects to
generate in the short- to medium-term will come from NdPr, Ce, and La, as the
price the Company receives from the sale of its RE Carbonate is tied to the
prices of those REE oxides. In addition, the Company expects to produce
separated REE oxides in the future. According to data from Asian Metal, NdPr
Oxide (Pr O 25%; Nd O 75%) mid-point prices in China rose approximately 14%
during the Quarter from $848 RMB/kg (about $133/kg) to $965 RMB/kg (about
$152/kg). The price for NdPr Oxide at May 13, 2022 was $915 RMB/kg (about
$135/kg). The mid-point Ce Oxide (99.9%) price was flat during the Quarter at
$1.47/kg. The current price for Ce Oxide is $1.45/kg (Asian Metal). The
mid-point La Oxide (99.9%) price was flat during the Quarter at $1.43/kg. The
current price for La Oxide is $1.41/kg (Asian Metal).

The REE market is dominated by China, which produces 83% of refined REE products
with other Asia Pacific operations providing an additional 15%. According to
WoodMacKenzie (formerly Roskill), "Prices for rare earths in the years to come
will follow different trajectories based on their involvement with the magnet
industry." WoodMacKenzie forecasts that prices for magnet elements, including
neodymium (Nd) and praseodymium (Pr), will remain elevated through 2050,
supporting new primary and secondary supply. Prices for elements used as
additives or fillers in magnets, namely terbium (Tb) and dysprosium (Dy), will
see "short-term price support followed by a steady decline as supply
availability improves." Prices for other non-magnet elements, including cerium
(Ce) and lanthanum (La), will remain stable at roughly the cost of production.
Adamas Intelligence projects that global demand for magnet REE oxides to
increase by five-fold between 2020 and 2030.

Vanadium Market Update



During the Quarter, the mid-point price of vanadium in Europe rose
significantly, beginning the Quarter at $8.75 per pound V2O5 as of December 31,
2021 and ending the Quarter at $12.25 per pound V2O5 as of March 25, 2022. The
price of vanadium reached a high of $12.25 per pound V2O5 during the week of
March 11, 2022 and continuing through the end of the Quarter. The price of
vanadium was at its low of $8.75 per pound V2O5 during the first two weeks of
the Quarter.

According to Fastmarkets, vanadium prices rose during the beginning of the
Quarter "due to fears surrounding possible sanctions against Russia … [which
resulted in] end-users in the steel industry, as well as traders, avoiding
material with Russian origins and starting to build 'safety stocks.'" European
FeV prices continue to rise, so too the risk to ferro-niobium 'switch',
Fastmarkets, March 8, 2022. This article also details the potential for
substitution of vanadium for niobium at prices much higher than current levels.
By the end of the Quarter, prices leveled off and even dropped slightly.
According to Fastmarkets, this was due to "weak downstream demand and logistical
difficulties" caused by the last outbreak of COVID-19 in China. Chinese vanadium
prices slide on weaker demand, Fastmarkets, April 1, 2022. Additional new
intermediary demand is possible in the vanadium market with the proposed
creation of the new Largo Physical Vanadium Fund, which is an investment vehicle
providing investors with exposure to physical vanadium markets. Largo provides
update on new physical vanadium holding company, Fastmarkets, April 20, 2022.

Operations Update and Outlook for Period Ending March 31, 2022

Overview



The Company continues to believe that uranium supply and demand fundamentals
point to higher sustained uranium prices in the future. In addition, Russia's
recent invasion of Ukraine and the recent entry into the uranium market by
financial entities purchasing uranium on the spot market to hold for the
long-term has the potential to result in higher sustained spot and term prices
and, perhaps, induce utilities to enter into more long-term contracts with
non-Russian producers like Energy Fuels to ensure security of supply and more
certain pricing. However, the Company has not yet entered into sufficient
long-term supply
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agreements to justify commencing uranium production at the Company's mines and
in-situ recovery ("ISR") facilities. As a result, the Company expects to
maintain uranium recovery at reduced levels until such time when sustained
increased market strength is observed, additional suitable term sales contracts
can be procured, or the U.S. government buys uranium from the Company following
the establishment of the proposed U.S. Uranium Reserve. The Company also holds
significant uranium inventories and is evaluating selling all or a portion of
these inventories on the spot market in response to future upside price
volatility or for delivery into long-term supply contracts if procured. The
Company has also begun selling a portion of its vanadium inventory into
strengthening markets.

The Company will also continue to seek new sources of revenue, including through
its emerging REE business, as well as new sources of Alternate Feed Materials
and new fee processing opportunities at the Mill that can be processed under
existing market conditions (i.e., without reliance on current uranium sales
prices). The Company is also seeking new sources of natural monazite sands for
its emerging REE business, is evaluating the potential to recover radioisotopes
for use in the development of TAT medical isotopes for the treatment of cancer,
and continues its support of U.S. governmental activities to assist the U.S.
uranium mining industry, including the proposed establishment of the U.S.
Uranium Reserve.

Extraction and Recovery Activities Overview

During 2022, the Company plans to recover 100,000 to 120,000 pounds of uranium and approximately 650 to 1,000 tonnes of mixed RE Carbonate containing approximately 300 to 450 tonnes of TREO.



No vanadium production is currently planned during 2022, though the Company is
currently selling some of its existing vanadium inventory into improving markets
and is now evaluating the potential to recommence vanadium production in 2022 or
2023 in light of recent market improvements in vanadium pricing.

The Company has strategically begun to pursue uranium sales commitments with
pricing expected to have both fixed and market-related components. The Company
believes that recent price increases, volatility and focus on security of supply
in light of Russia's invasion of Ukraine have increased the potential for the
Company to make spot sales, and the Company is actively seeking term sales
contracts with utilities at pricing that sustains production and covers
corporate overhead. Therefore, existing inventories may increase from 692,000
pounds of U3O8 to 792,000 to 812,000 pounds of U3O8 at year-end 2022 or may
increase to a lesser extent, or be reduced, in the event the Company sells a
portion of its inventory on the spot market or pursuant to term contracts, if
procured, in 2022.

ISR Activities

The Company expects to produce insignificant quantities of U3O8 in the year
ending December 31, 2022 from Nichols Ranch. Until such time when market
conditions improve sufficiently, suitable term sales contracts can be procured,
or the proposed U.S. Uranium Reserve is established, the Company expects to
maintain the Nichols Ranch Project on standby and defer development of further
wellfields and header houses. The Company currently holds 34 fully permitted,
undeveloped wellfields at Nichols Ranch, including four additional wellfields at
the Nichols Ranch wellfields, 22 wellfields at the adjacent Jane Dough
wellfields, and eight wellfields at the Hank Project, which is fully permitted
to be constructed as a satellite facility to the Nichols Ranch Plant. The
Company expects to continue to keep the Alta Mesa Project on standby until such
time that market conditions improve sufficiently, suitable term sales contracts
can be procured, or the proposed U.S. Uranium Reserve is established.

Conventional Activities

Conventional Extraction and Recovery Activities



During the three months ended March 31, 2022, the Mill did not package any
material quantities of U3O8, focusing instead on developing its REE recovery
business. During the three months ended March 31, 2022, the Mill produced
approximately 60 tonnes of RE Carbonate, containing approximately 30 tonnes of
TREO. The Mill recovered small quantities of uranium in 2021 and during the
Quarter, which were retained in circuit. During 2022, the Company expects to
recover 100,000 to 120,000 pounds of uranium at the Mill as finished product.
The Company expects to recover approximately 650 to 1,000 tonnes of mixed RE
Carbonate containing approximately 300 to 450 tonnes of TREO at the Mill. The
Company expects to sell all or a portion of its mixed RE Carbonate to Neo or
other global separation facilities and/or to stockpile it for future production
of separated REE oxides at the Mill or elsewhere. The Company is in advanced
discussions with several sources of natural monazite sands, including the
Company's existing supplier, to secure additional supplies of monazite sands,
which if successful, would be expected to allow the Company to increase RE
Carbonate production.

In addition to its 692,000 pounds of finished uranium inventories currently
located at a North American conversion facility and at the Mill, the Company has
approximately 389,000 pounds of U3O8 contained in stockpiled Alternate Feed
Materials and ore inventory at the Mill that can be recovered relatively quickly
in the future, as general market conditions may warrant (totaling
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about 1,081,000 pounds of U3O8 of total uranium inventory). The Company is also seeking to acquire additional ore inventory from third party mine cleanup activities that can be recovered relatively quickly in the future.



The Company currently holds 1,397,000 pounds of V2O5 in inventory, and there
remains an estimated 1.0 to 3.0 million pounds of additional solubilized
recoverable V2O5 remaining in tailings solutions awaiting future recovery, as
market conditions may warrant.

The Company currently expects that planned uranium production from Alternate
Feed Materials, processing natural monazite sands for the recovery of uranium
and REEs, and the receipt of uranium-bearing materials from mine cleanup
activities will keep the Mill in operation through and beyond 2022. The Company
is also actively pursuing opportunities to process additional sources of natural
monazite sands, new and additional Alternate Feed Material sources, and new and
additional low-grade mineralized materials from third parties in connection with
various uranium clean-up requirements. Successful results from these activities
would allow the Mill to extend operations well into and beyond 2023. If, at any
time, the Company is unable to justify full operation of the Mill, the Company
would place uranium, REE and/or vanadium recovery activities at the Mill on
standby. While on standby, the Mill would continue to dry and package material
from the Nichols Ranch Plant, if operating, and continue to receive and
stockpile Alternate Feed Materials for future milling campaigns. Each future
milling campaign would be subject to receipt of sufficient mill feed and
resulting cash flow that would allow the Company to operate the Mill on a
profitable basis or to recover all or a portion of the Mill's standby costs.

Conventional Standby, Permitting and Evaluation Activities



During the three months ended March 31, 2022, standby and environmental
compliance activities continued at the fully permitted and substantially
developed Pinyon Plain Project (uranium and, potentially, copper) and the fully
permitted and developed La Sal Complex (uranium and vanadium). The Company plans
to continue carrying out engineering, metallurgical testing, procurement and
construction management activities at its Pinyon Plain Project. The timing of
the Company's plans to extract and process mineralized materials from these
Projects will be based on sustained improvements in general market conditions,
procurement of suitable sales contracts and/or the establishment of the proposed
U.S. Uranium Reserve.

The Company is selectively advancing certain permits at its other major
conventional uranium projects, such as the Roca Honda Project, which is a large,
high-grade conventional project in New Mexico. The Company is also continuing to
maintain required permits at its conventional projects, including the Sheep
Mountain Project and Whirlwind Project. In addition, the Company will continue
to evaluate the Bullfrog Project. Expenditures for certain of these projects
have been adjusted to coincide with expected dates of price recoveries based on
the Company's forecasts. All of these projects serve as important pipeline
assets for the Company's future conventional production capabilities, as market
conditions may warrant.

Uranium Sales

During the three months ended March 31, 2022, the Company completed no sales of
uranium, at its election. Having observed a marked uptick in interest from
nuclear utilities seeking long-term uranium supply, the Company is now actively
engaged in pursuing selective long-term uranium sales contracts.

Vanadium Sales



As a result of strengthening vanadium markets, during the three months ended
March 31, 2022, the Company sold approximately 150,000 pounds of FeV (converted
from the Company's existing inventory of V2O5) at a gross weighted average price
of $20.65 per pound V contained in FeV. The Company expects to sell its
remaining finished vanadium product when justified into the metallurgical
industry, as well as other markets that demand a higher purity product,
including the aerospace, chemical, and potentially the vanadium battery
industries. The Company expects to sell to a diverse group of customers in order
to maximize revenues and profits. The vanadium produced in the 2018/19 pond
return campaign was a high-purity vanadium product of 99.6%-99.7% V2O5. The
Company believes there may be opportunities to sell certain quantities of this
high-purity material at a premium to reported spot prices. The Company may also
retain vanadium product in inventory for future sale, depending on vanadium spot
prices and general market conditions.

Rare Earth Sales



The Company commenced its ramp-up to commercial production of a mixed RE
Carbonate in March 2021 and has shipped all of its RE Carbonate produced to-date
to Silmet, where it is currently being fed into their separation process. All RE
Carbonate produced at the Mill in 2022 is expected to be sold to Neo for
separation at Silmet. Until such time as the Company expects to permit and
construct its own separation circuits at the Mill, production in future years is
expected to be sold to Neo for separation at Silmet and, potentially, to other
REE separation facilities outside of the U.S. To the extent not sold, the
Company expects to stockpile mixed RE Carbonate at the Mill for future
separation and other downstream REE processing at the Mill or elsewhere.

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As the Company continues to ramp up its mixed RE Carbonate production and
additional funds are spent on process enhancements, improving recoveries,
product quality and other optimization, profits from this initiative are
expected to be minimal until such time when monazite throughput rates are
increased and optimized. However, even at the current throughput rates, the
Company is recovering most of its direct costs of this growing initiative, with
the other costs associated with ramping up production, process enhancements and
evaluating future separation capabilities at the Mill being expensed as
development expenditures. Throughout this process, the Company is gaining
important knowledge, experience and technical information, all of which will be
valuable for current and future mixed RE Carbonate production and expected
future production of separated REE oxides and other advanced REE materials at
the Mill. As discussed above, the Company is evaluating installing a full
separation circuit at the Mill to produce both "light" and "heavy" separated REE
oxides in the coming years, subject to successful licensing, financing, and
commissioning and continued strong market conditions, and has hired Carester to
support these REE separation initiatives.

The Company also continues to pursue new sources of revenue, including additional Alternate Feed Materials and other sources of feed for the Mill.

Continued Efforts to Minimize Costs



Although the Company is pursuing two exciting new initiatives - its REE and TAT
radioisotope initiatives - in addition to its existing uranium and vanadium
lines of business, which will likely require the Company to grow certain of its
operations, the Company will continue to seek ways to minimize the costs of all
its operations where feasible while maintaining its critical capabilities,
manpower, and properties.


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Results of Operations

The following table summarizes the results of operations for the three months ended March 31, 2022 and 2021 (in thousands of U.S. dollars):



                                                                    Three months ended
                                                                        March 31,
                                                                              2022                   2021
Revenues

Vanadium concentrates                                                   $       2,412          $           -

Alternate Feed Materials processing and other                                     525                    353
Total revenues                                                                  2,937                    353

Costs and expenses applicable to revenues



Costs and expenses applicable to vanadium concentrates                          1,229                      -

Underutilized capacity production costs applicable to Rare Earth concentrates

                                                              1,663                      -
Total costs and expenses applicable to revenues                                 2,892                      -

Gross margin                                                                       45                    353

Other operating costs and expenses
Development, permitting and land holding                                        1,173                  3,371
Standby costs                                                                   3,475                  2,135
Accretion of asset retirement obligation                                          394                    321
Total other operating costs and expenses                                        5,042                  5,827

Selling, general and administration
Selling costs                                                                       9                      -
General and administration                                                      5,207                  3,373
Total selling, general and administration                                       5,216                  3,373

Total operating loss                                                          (10,213)                (8,847)

Interest expense                                                                   (9)                   (16)
Other loss                                                                     (4,508)                (2,047)
Net loss                                                                $     (14,730)         $     (10,910)

Basic and diluted net loss per common share                             $       (0.09)         $       (0.08)



Revenues

Previously, the Company's revenues from uranium were based on delivery schedules
under long-term contracts, which could vary from quarter to quarter. As of
December 31, 2018, the Company no longer had any uranium sales contacts. Future
sales of uranium may be subject to sale in the spot market if the Company is
unable to agree to terms for additional long-term sales contracts or,
potentially, pursuant to direct government purchases under the proposed U.S.
Uranium Reserve. In the year ended December 31, 2019, the Company initiated the
selling of vanadium recovered from pond return at the Mill under a Sales and
Agency Agreement appointing an exclusive sales and marketing agent for all V2O5
produced by the Company.

Revenues for the three months ended March 31, 2022 and 2021 totaled $2.94 million and $0.35 million, respectively, which were primarily related to sales of vanadium concentrates and fees for mineralized material received from clean-up of a third-party uranium mine.


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Operating Expenses

Uranium, Vanadium, and RE Carbonate recovered and costs and expenses applicable to revenue

During the three months ended March 31, 2022 and 2021 the Company did not recover any material amount of pounds of U3O8 or V2O5 at the White Mesa Mill.



Costs and expenses applicable to revenue for the three months ended March 31,
2022 totaled $1.23 million related to sales of approximately 150,000 pounds of
vanadium concentrates and $1.66 million related to underutilized capacity
production costs applicable to RE Carbonate processing.

During the three months ended March 31, 2022, the Company began to finalize its
second RE Carbonate production run, and recovered 60 tonnes of mixed RE
Carbonate, containing approximately 30 tonnes of TREO. To date, the Mill has
focused on producing commercially salable RE Carbonate at low throughput rates.
The Company has been very pleased with the resulting product it is shipping to
Silmet, and has continued to improve the quality of this RE Carbonate product
during the quarter. The Mill expects to increase its throughput rates as its
supplies of monazite sands increase. The Company is in advanced discussions with
several monazite suppliers to secure additional supplies of monazite sands, and
once secured, we expect these additional supplies will result in sufficient
throughput to reduce underutilized capacity production costs and allow the
Company to realize its expected margins on a continuous basis.

Other Operating Costs and Expenses

Development, permitting and land holding



For the three months ended March 31, 2022, the Company spent $1.17 million for
the future development of the Company's properties, primarily related to land
holding expenses, compared to $3.37 million for the three months ended March 31,
2021, which were primarily incurred for the first-time development and ramping
up of the expected RE Carbonate production program at the Mill.

While we expect the amounts relative to the items listed above have added future
value to the Company, the Company expenses these amounts, in part due to the
fact that the Company does not have Proven Mineral Reserves or Probable Mineral
Reserves at any of the Company's projects under S-K 1300 or NI 43-101, other
than at the Sheep Mountain Project.

Standby costs



The Company's La Sal Project was placed on standby in 2012 as a result of market
conditions. In February 2014, the Company placed its Arizona 1 Project on
standby. In the beginning of 2018, as well as the beginning of 2020, the Mill
operated at lower levels of uranium recovery, including prolonged periods of
standby. The Nichols Ranch Project was also placed on standby in early 2020.
Costs related to the care and maintenance of the standby mines, along with
standby costs incurred while the Mill is operating at low levels of uranium,
vanadium, and RE Carbonate recovery or on standby, are expensed.

For the three months ended March 31, 2022, standby costs totaled $3.48 million,
compared with $2.14 million in the prior year. The increase is primarily related
to expenses incurred while the Mill was operating at lower levels of uranium,
vanadium and RE Carbonate recovery.

Accretion

Accretion related to the asset retirement obligation for the Company's properties increased slightly for the three months ended March 31, 2022 to $0.39 million compared with the prior year of $0.32 million.

Selling, general and administrative



Selling, general and administrative expenses include costs associated with
marketing uranium, corporate, general and administrative costs. Selling, general
and administrative expenses consist primarily of payroll and related expenses
for personnel, contract and professional services, share-based compensation
expense and other overhead expenditures. Selling, general and administrative
expenses totaled $5.22 million for the three months ended March 31, 2022
compared to $3.37 million for the three months ended March 31, 2021. The
increase is primarily related to public company expenses and corporate efforts
to develop our REE programs.

Interest Expense and Other Income and Expenses

Interest expense

Interest expense for the three months ended March 31, 2022 was $0.01 million, compared with $0.02 million for the three months ended March 31, 2021.


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Other income and expense



For the three months ended March 31, 2022, other income and expense was $4.51
million expense, net. These amounts primarily consist of a mark-to-market loss
on investments accounted for at fair value of $3.42 million and a loss on
foreign exchange of $1.21 million, partially offset by other income of $0.11
million and interest income of $0.01 million.

For the three months ended March 31, 2021, other income and expense was $2.05
million expense, net. These amounts primarily consist of a mark-to-market loss
on the increase in fair value of warrant liabilities of $3.50 million and a loss
on foreign exchange of $0.34 million, partially offset by a $1.46 million
mark-to-market gain on investments accounted for at fair value, other income of
$0.33 million and interest income of $0.01 million.

LIQUIDITY AND CAPITAL RESOURCES

Shares issued for cash



On November 5, 2018, the Company filed a prospectus supplement to its U.S.
registration statement, qualifying for distribution up to $24.50 million in
aggregate Common Shares under the ATM. Then, on the same date, the Company filed
a base shelf prospectus whereby the Company may sell any combination of the
"Securities" as defined thereunder in one or more offerings having an aggregate
offering price of up to $150.00 million. On May 5, 2019, the prospectus
supplement to its U.S. registration statement expired and was replaced on May 7,
2019 by a new prospectus supplement in the same amount, qualifying for
distribution up to $24.50 million in aggregate Common Shares under the ATM. On
December 31, 2019 and December 31, 2020, the Company filed prospectus
supplements to its U.S. registration statement, qualifying for distribution up
to $30.00 million and $35.0 million, respectively, in additional Common Shares
under the ATM. On April 8, 2021, the Company filed a prospectus supplement to
its U.S. registration statement, qualifying for distribution up to $33.50
million in additional Common Shares under the ATM. The Company filed a base
shelf prospectus that went effective on March 18, 2021 whereby the Company may
sell any combination of the "Securities" as defined thereunder in one or more
offerings having an aggregate offering price of up to $300.00 million. On June
7, 2021, the Company filed a prospectus supplement to its U.S. shelf
registration statement, qualifying for distribution up to $50.00 million in
additional Common Shares under the ATM. Most recently, on January 3, 2022, the
Company filed with the SEC a prospectus supplement to its U.S. shelf
registration statement, qualifying for distribution up to $50.00 million in
additional Common Shares under the ATM. Sales made pursuant to the above
summarized U.S. shelf registration statements and prospectus supplements are
made on the NYSE American at then-prevailing market prices, or any other
existing trading market of the Common Shares in the United States.

From April 1, 2022 through May 13, 2022, the Company issued 0.36 million Common
Shares at a weighted average price of $10.69 for net proceeds of $3.72 million
using the ATM.

Working capital at March 31, 2022 and future requirements for funds



At March 31, 2022, the Company had working capital of $136.61 million, including
$105.17 million in cash, $0.61 million of marketable securities, approximately
692,000 pounds of uranium finished goods inventory and approximately 1,397,000
pounds of vanadium finished goods inventory. The Company believes it has
sufficient cash and resources to carry out its business plan for at least the
next twelve months.

The Company manages liquidity risk through the management of its working capital and its capital structure.



Cash and cash flows

Three months ended March 31, 2022



Cash, cash equivalents and restricted cash were $125.49 million at March 31,
2022, compared to $132.82 million at December 31, 2021. The decrease of $7.34
million was due primarily to cash used in operating activities of $10.55 million
and cash used in investing activities of $0.40 million, partially offset by cash
provided by financing activities of $3.59 million and the impact of foreign
exchange rate fluctuations on cash held in foreign currencies of $0.02 million.

Net cash used in operating activities of $10.55 million is comprised of the net
loss of $14.73 million for the period adjusted for non-cash items and for
changes in working capital items. Significant items not involving cash
were $0.81 million of depreciation and amortization of property, plant and
equipment, share-based compensation expense of $0.86 million, accretion of asset
retirement obligation of $0.39 million, unrealized foreign exchange loss of
$1.23 million, revision of asset retirement obligations of $0.10 million and
other non-cash expenses, primarily related to the fair market valuation of
investments of $3.35 million. Other items include a decrease in inventories of
$0.78 million, an increase in trade and other receivables of $1.33 million, an
increase in prepaid expenses and other assets of $0.89 million and a decrease in
accounts payable and accrued liabilities of $1.12 million.

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Net cash used in investing activities was $0.40 million for the purchase of property, plant and equipment, primarily for utilization in RE Carbonate production at the Mill.



Net cash provided by financing activities totaled $3.59 million consisting of
$4.16 million net proceeds from the issuance of shares under the Company's ATM
facility and cash received from exercise of stock options of $0.32 million,
partially offset by $0.89 million cash paid to fund employee income tax
withholding due upon vesting of restricted stock units.

Three months ended March 31, 2021



Cash, cash equivalents and restricted cash were $63.53 million at March 31,
2021, compared to $40.99 million at December 31, 2020. The increase of $22.54
million was due primarily to cash provided by financing activities of $30.39
million, cash provided by investing activities of $0.57 million, and the impact
of foreign exchange rate fluctuations on cash held in foreign currencies of
$0.03 million, offset by cash used in operating activities of $8.45 million.

Net cash used in operating activities of $8.45 million is comprised of the net
loss of $10.91 million for the period adjusted for non-cash items and for
changes in working capital items. Significant items not involving cash
were $0.77 million of depreciation and amortization of property, plant and
equipment, share-based compensation expense of $0.70 million, a $3.50 million
change in warrant liabilities, accretion of asset retirement obligation of $0.32
million, and unrealized foreign exchange loss of $0.43 million, offset by other
non-cash expenses of $1.68 million and a revision of asset retirement
obligations of $0.04 million. Other items include an increase in inventories of
$0.40 million, a decrease in accounts payable and accrued liabilities of $0.51
million, an increase in prepaid expenses and other assets of $0.63 million and
an increase in trade and other receivables of $0.01 million.

Net cash provided by investing activities was $0.57 million comprised of $1.17
million cash received from maturities of marketable securities partially offset
by $0.60 million cash used for the purchase of mineral properties and property,
plant and equipment.

Net cash provided by financing activities totaled $30.39 million, consisting of
$29.91 million net proceeds from the issuance of shares under the Company's ATM
facility, cash received from the exercise of stock options of $0.70 million and
cash received from the exercise of warrants of $0.44 million, partially offset
by $0.66 million in cash paid to fund employee income tax withholding due upon
the vesting of RSUs.

Critical accounting estimates and judgments



The preparation of these consolidated financial statements in accordance with
U.S. GAAP requires the use of certain critical accounting estimates and
judgments that affect the amounts reported. It also requires management to
exercise judgment in applying the Company's accounting policies. These judgments
and estimates are based on management's best knowledge of the relevant facts and
circumstances taking into account previous experience. Although the Company
regularly reviews the estimates and judgments made that affect these financial
statements, actual results may be materially different.

Significant estimates made by management include:

a.Development Stage



While the Company has established the existence of multiple Mineral Resources
and extracts and processes saleable uranium from these operations, the Company
has only established Proven Mineral Reserves or Probable Mineral Reserves, as
defined under SEC S-K 1300, at its Sheep Mountain Project. As a result, the
Company is a "Development Stage Issuer" as defined by S-K 1300, as it is engaged
in the preparation of Mineral Reserves for extraction on at least one material
property.

While in the development stage with its material properties having only Mineral
Resources, the Company continues to expense most amounts that would normally be
capitalized and subsequently depreciated or depleted over the life of Mineral
Reserve-based mining operations. Items such as the construction of wellfields
and related header houses, additions to recovery facilities and advancement of
properties are expensed in the period incurred. As a result, the Company's
consolidated financial statements may not be directly comparable to the
financial statements of mining companies in the development stage having
multiple Mineral Reserves or in the production stage.

b. Resource and reserve estimates utilized



The Company utilizes estimates of its Mineral Resources and Mineral Reserves
based on information compiled by appropriately qualified persons. The
information relating to the geological data on the size, depth and shape of the
deposits requires complex geological judgments to interpret the data. The
estimation of future cash flows related to Mineral Resources and Mineral
Reserves is based upon factors such as estimates of future uranium prices,
future construction and operating costs along with geological assumptions and
judgments made in estimating the size and grade of the resource. Changes in the
Mineral

                                       38
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Resource and Mineral Reserve estimates may impact the carrying value of mining and recovery assets, goodwill, reclamation and remediation obligations and depreciation and impairment.

c. Depreciation of mining and recovery assets acquired



For mining and recovery assets actively extracting and recovering uranium we
depreciate the acquisition costs of the mining and recovery assets on a
straight-line basis over our estimated lives of the mining and recovery assets.
The process of estimating the useful life of the mining and recovery assets
requires significant judgment in evaluating and assessing available geological,
geophysical, engineering and economic data, projected rates of extraction and
recovery, estimated commodity price forecasts and the timing of future
expenditures, all of which are, by their very nature, subject to interpretation
and uncertainty.

Changes in these estimates may materially impact the carrying value of the Company's mining and recovery assets and the recorded amount of depreciation.

d. Impairment testing of mining and recovery assets



The Company undertakes a review of the carrying values of its mining and
recovery assets whenever events or changes in circumstances indicate that their
carrying values may exceed their estimated net recoverable amounts determined by
reference to estimated future operating results and net cash flows. An
impairment loss is recognized when the carrying value of a mining or recovery
asset is not recoverable based on this analysis. In undertaking this review, the
management of the Company is required to make significant estimates of, among
other things, future production and sale volumes, forecasted commodity prices,
future operating and capital costs and reclamation costs to the end of the
mining asset's life. These estimates are subject to various risks and
uncertainties, which may ultimately have an impact on the expected
recoverability of the carrying values of mining and recovery assets.

e. Asset retirement obligations



Asset retirement obligations are recorded as a liability when an asset that will
require reclamation and remediation is initially acquired. For disturbances
created on a property owned that will require future reclamation and remediation
the Company records asset retirement obligations for such disturbance when
occurred. The Company has accrued its best estimate of its share of the cost to
decommission its mining and milling properties in accordance with existing laws,
contracts and other policies. The estimate of future costs involves a number of
estimates relating to timing, type of costs, mine closure plans, and review of
potential methods and technical advancements. Furthermore, due to uncertainties
concerning environmental remediation, the ultimate cost of the Company's
decommissioning liability could differ from amounts provided. The estimate of
the Company's obligation is subject to change due to amendments to applicable
laws and regulations and as new information concerning the Company's operations
becomes available. The Company is not able to determine the impact on its
financial position, if any, of environmental laws and regulations that may be
enacted in the future. Additionally, the expected cash flows in the future are
discounted at the Company's estimated cost of capital based on the periods the
Company expects to complete the reclamation and remediation activities.
Differences in the expected periods of reclamation or in the discount rates used
could have a material difference in the actual settlement of the obligations
compared with the amounts provided.

Recently Adopted Accounting Pronouncements

Non-employee Share-Based Payment

In June 2018, the FASB issued ASU 2018-07, which more closely aligns the accounting for non-employee share-based payment transactions to the guidance for awards to employees except for specific guidance on certain inputs to an option-pricing model and the attribution of cost. The Company adopted this standard effective January 1, 2019 and adoption did not have a significant impact on our net earnings

Fair Value Measurement



In August 2018, the FASB issued ASU 2018-13, which amended the fair value
measurement guidance by removing and modifying certain disclosure requirements,
while also adding new disclosure requirements. The amendments on changes in
unrealized gains and losses, the range and weighted average of significant
unobservable inputs used to develop Level 3 fair value measurements, and the
narrative description of measurement uncertainty would be applied prospectively
for only the most recent interim or annual period presented in the initial
fiscal year of adoption. All other amendments would be applied retrospectively
to all periods presented upon their effective date. The Company adopted this
pronouncement effective January 1, 2020.

Income Taxes - Simplifying the Accounting for Income Taxes



In December 2019, the FASB issued ASU 2019-12, "Income Taxes - Simplifying the
Accounting for Income Taxes (Topic 740)," which is intended to simplify various
aspects related to accounting for income taxes. ASU 2019-12 removes certain
exceptions to the general principles in Topic 740 and also clarifies and amends
existing guidance to improve consistent

                                       39
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application. ASU 2019-12 will be effective for interim and annual periods
beginning after December 15, 2020 (January 1, 2021 for the Company). Early
adoption is permitted. The Company has evaluated the impact the of the adoption
of ASU 2019-12 and it does not have an impact on its consolidated financial
statements, and may not have an impact until such a time that the Company incurs
income tax expenses.

Financial Instruments - Credit Losses



In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit
Losses (Topic 326)." The standard replaces the incurred loss impairment
methodology under current U.S. GAAP with a methodology that reflects expected
credit losses and requires the use of a forward-looking expected credit loss
model for accounts receivables, loans, and other financial instruments. The
standard requires a modified retrospective approach through a cumulative-effect
adjustment to retained earnings as of the beginning of the first reporting
period in which the guidance is effective. The new standard is effective for
non-public companies, and public business entities that meet the definition of a
smaller reporting company as defined by the SEC, for interim and annual periods
beginning after December 15, 2022. On December 31, 2021, the Company became a
large accelerated filer, as defined by the SEC, and, as a result, adopted this
guidance effective January 1, 2021. The adoption of the standard did not have a
material impact on the Company's consolidated financial statements.

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