The following discussion and analysis should be read in conjunction with our
unaudited condensed consolidated financial statements for the three and
six-month period ended June 30, 2022 (the "Quarter"), 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 natural uranium concentrate or
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 more than 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,
vanadium and REEs for our own account, as well as from toll processing materials
for others.

Our natural 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. The Company holds several
existing mines that contain vanadium resources, and the Mill has produced
considerable quantities of vanadium from area mines during its operating
history. 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, for the recovery
of uranium and production of 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. Most recently, on May 19, 2022, the Company
announced it had entered into binding agreements to acquire 17
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mineral concessions in the State of Bahia, Brazil totaling approximately 37,300
acres or 58.3 square miles (the "Bahia Project"). Based on significant
historical drilling performed to date, it is believed that the Bahia Project
holds significant quantities of heavy minerals, including monazite, that will
feed Energy Fuels' quickly emerging U.S.-based REE supply chain. The Company is
also in discussions with other entities around the world to acquire additional
supplies of natural monazite sands and has worked 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 currently 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, pursuant to a strategic alliance with a technology development company,
the Company is evaluating the feasibility of recovering radioisotopes from the
Mill's existing process streams for use in the development of medical isotopes
for the potential treatment of cancer. This involves evaluating the potential to
recover Th-232, and Ra-226 from the Company's existing RE Carbonate and uranium
process streams at the Mill and the feasibility of recovering Ra-228 from the
Th-232, Th-228 from the Ra-228 and concentrating Ra-226 at the Mill. 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 targeted alpha therapy ("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 not be recoverable from our Mill feed.

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 Mill is the only operating conventional uranium mill in
the U.S. and the only operating facility 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 six months ended June 30,
2022, Mill activities focused primarily on processing monazite sands for the
recovery of uranium, and production of a mixed RE Carbonate. The Company is
actively pursuing additional monazite sands and Alternate Feed Materials for
processing at the Mill.

The Company continues to pursue additional sources of feed materials for the
Mill. 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 existing 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 second 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 many 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. To date, the
Company has entered into three long-term contracts with U.S. nuclear utilities
with deliveries occurring from 2023 to 2030 at supportive pricing and other
terms. In anticipation of potential price recoveries and additional 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
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(the last of which was brought out of temporary cessation during the Quarter for the resumption of mining operations). 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.

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 a definitive agreement executed in July
2021, Energy Fuels purchases natural monazite sands, currently being mined in
Georgia (U.S.) by The Chemours Company, which is processed into an RE Carbonate
at the Mill. At this time, all of the resulting RE Carbonate is sold and shipped
to Neo's rare earth separations facility in Sillamäe, Estonia ("Silmet"). Silmet
then processes 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 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 REE
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 to date includes 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. On April 13, 2022, the Company announced
that it had 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 awarded Energy Fuels, working with a team
from Penn State University, $1.9 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.

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
                                       29
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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 began commercial-scale
partial separation of lanthanum (La) and cerium (Ce) on a small scale from its
RE Carbonate using an existing solvent extraction circuit at the Mill, which
represents the first commercial level REE separation to occur in the U.S. in
many years, along with the production of an even more advanced RE Carbonate in
2022 than was produced in 2021.

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. 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.

On May 19, 2022, the Company announced it had entered into binding agreements to
acquire the Bahia Project in Brazil for a total consideration of $27.50 million
in cash, with $5.50 million due at signing and on completion of other benchmarks
during a 90-day due diligence period and the remaining $22.00 million due at
closing. Based on significant historical drilling performed to date, it is
believed that the Bahia Project holds significant quantities of heavy minerals,
including monazite, that can feed Energy Fuels' quickly emerging U.S.-based REE
supply chain. The Bahia Project is a well-known heavy mineral sand ("HMS")
deposit with over 3,300 historical vertical exploration auger holes drilled to
date, indicating significant concentrations of titanium (ilmenite and rutile),
zirconium (zircon), and REEs (monazite). Importantly, the mineralization is at
or near the surface, so the material is expected to be relatively easy to
recover using standard, low-cost sand mining techniques, including the use of
front-end loaders, excavators and/or dredges. The Company is primarily
interested in the monazite, which contains both REEs and uranium. Preliminary
assay data indicates the monazite sand contained in the HMS concentrate ranges
between 0.62% and 12.82%, and the uranium contained in the monazite is expected
to be comparable to typical Colorado Plateau uranium deposits. At this time, the
Company is concluding its due diligence on the Bahia Project and expects to
close on or around August 31, 2022. Subject to closing, the acquisition of the
Bahia Project is expected to be a significant step in Energy Fuels' development
as a major global REE producer based in the U.S.

Changes to Management



On June 24, 2022, the Company appointed John L. Uhrie to serve as the Company's
Chief Operating Officer ("COO"), effective as of August 1, 2022. Dr. Uhrie most
recently served for over three years as Vice President for Metals, Exploration
and Development of The Doe Run Company ("Doe Run"), a global leader, in lead,
zinc and copper production. In this role, Dr. Uhrie was primarily responsible
for growth, optimization and new project development for a large underground,
lead mining company. Dr. Uhrie also provided executive oversite of the secondary
lead smelter at Doe Run, along with regional and international exploration
covering a wide variety of deposit types and metals. Prior to his position with
Doe Run, Dr. Uhrie served as President, Consulting Services-Americas for RPM
Global ("RPM"). In this role, Dr. Uhrie was responsible for consulting services
in RPM's Americas region as well as serving as project manager and process
engineer for RPM's world-wide mine finance due diligence activities covering
geology, mining, processing, environmental, social, governance, and economics.
While with RPM, Dr. Uhrie oversaw all aspects of project work from proposal
preparation through final reports. Prior to RPM, Dr. Uhrie was Manager of
Process Metallurgy for Newmont Mining Corp. (2009-2014) and Manager, Metallurgy
and Strategic Planning, Africa (2008-2009) and Manager of Hydrometallurgical
Operations (2005-2008) for Freeport McMoRan Copper and Gold, Bagdad Operations.
Dr. Uhrie is a registered Professional Engineer, a Qualified Professional
through the Mining and Metallurgical Society of America (MMSA) and holds a BS in
Geological Engineering from Michigan Technological University, an MS in Geology
from the University of Wyoming and a Ph.D. in Metallurgical Engineering from
Michigan Technological University.

On August 4, 2022, the Company appointed Tom L. Brock to serve as the Company's
Chief Financial Officer ("CFO"), effective as of August 8, 2022. Concurrently
with Mr. Brock's appointment as CFO, David Frydenlund, the Company's current
CFO, General Counsel and Corporate Secretary, was appointed to the position of
Executive Vice President, Chief Legal Officer and Corporate Secretary of the
Company, effective August 8, 2022. Prior to joining the Company, Mr. Brock
served as Vice President, Chief Accounting Officer at Extraction Oil & Gas Inc
from August 2016 until November 2021, where he led the accounting, tax,
treasury, information technology and human resource functions. Prior to that
time, Mr. Brock served as Vice President, Corporate Controller of American
Midstream Partners LP from July 2012 until November 2013, and as Vice President,
Chief Accounting Officer and Corporate Controller from November 2013 until
August 2016. Prior to that, Mr. Brock held the position of Director of Trading
and Finance with BG Group in Houston, Texas, where he controlled accounting and
other functions for its marketing and trading companies beginning in July 2010.
Mr. Brock began his career with KPMG LLP, where he spent 13 years holding
various positions serving clients in the energy industry. Mr. Brock holds a
Bachelor of Accountancy from New Mexico State University and is a Certified
Public Accountant licensed in the State of Texas.

Known Trends or Uncertainties


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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) recent strengthening of uranium and
vanadium markets which could result in the Company selling inventories at
increased prices and/or signing additional contracts with nuclear utilities for
the long-term supply of uranium; (ii) the recently implemented U.S. Uranium
Reserve Program, which 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 fell during the Quarter. The uranium spot price began the Quarter at
$58.20 per pound on March 31, 2022 and dropped 13% to $50.50 per pound by June
30, 2022. During the Quarter, the uranium spot price hit a high of $63.75 per
pound on April 15, 2022 and a low of $45.50 per pound during the weeks of May
20, 2022 and June 17, 2022. In contrast, TradeTech price data indicates that
long-term U3O8 prices rose during the Quarter, beginning the Quarter at $50.00
per pound and ending the Quarter at $53.00 per pound. On July 29, 2022,
TradeTech reported a spot price of $48.75 per pound and a long-term price of
$53.00 per pound U3O8.

The following important developments occurred during the Quarter:

-The European Parliament voted to demand a full embargo on Russian imports of oil, coal, natural gas and nuclear fuel (TradeTech NMR, April 8, 2022).

-Emmanuel Macron won reelection as the President of France, vowing to boost nuclear and renewables (TradeTech NMR, April 29, 2022).



-Sprott acquired the assets of North Shore ETF and launched a uranium mining
exchange-traded fund ("ETF") in Europe (TradeTech NMR, April 29, 2022 and May 6,
2022).

-The U.S. Department of Energy ("DOE") began accepting applications from nuclear operators for financial support under the $6 billion Civil Nuclear Credit Program announced on April 19, 2022 (TradeTech NMR, April 22, 2022).



-Transportation issues continued to create uncertainty in the nuclear fuel
market as President Biden signed a proclamation banning Russian vessels from
U.S. ports (except those carrying source, special nuclear and byproduct
material) (TradeTech NMR, April 22, 2022) and Canadian Special Economic Measures
on Russia threatened to delay a Canadian Class 7 vessel from being loaded with
nuclear material bound for the U.S. (TradeTech NMR, June 24, 2022). The Canadian
government subsequently allowed the vessel to be loaded and travel to the U.S.
However, the Company believes this situation highlights the fragile nature and
risks of nuclear fuel supply to the U.S. in light of Russia's ongoing invasion
of Ukraine.

-The DOE issued a Request for Proposals ("RFP") to purchase uranium from U.S.
uranium producers as part of the department's newly established U.S. Uranium
Reserve Program (TradeTech NMR, June 30, 2022). Energy Fuels has submitted a bid
in response to the RFP. Results of the bidding process have not yet been
announced.

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 continue to represent a fundamental shift in the uranium
market due to 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 ongoing invasion of Ukraine has
sparked a widespread trend away from Russian-sourced nuclear fuel supply. 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,
geopolitical risks including Russia's ongoing invasion of Ukraine, and the
market activity of state-owned uranium and nuclear companies.

During the Quarter, as a result of these factors, the Company has successfully
entered into three long-term uranium purchase and sale agreements with major
U.S. utilities with satisfactory pricing and terms. The Company will continue to
closely monitor uranium markets and seek additional 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 providing the Company and its shareholders with exposure to 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, selling to the U.S. Uranium Reserve Program, or as
a part of one or more term contracts.
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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 Wood MacKenzie (formerly, 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 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, 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.

To date in 2022, the Mill has produced 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 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 dropped approximately 3% during the Quarter
from $965 RMB/kg (about $152/kg) to $933 RMB/kg (about $139/kg). The price for
NdPr Oxide at August 4, 2022 was $760 RMB/kg (about $113/kg). The mid-point Ce
Oxide (99.9%) price dropped 3% during the Quarter from $1.47/kg to $1.42/kg. The
price for Ce Oxide at August 4, 2022 was $1.38/kg (Asian Metal). The mid-point
La Oxide (99.9%) price dropped 4% during the Quarter from $1.43/kg to $1.38/kg.
The price for La Oxide at August 4, 2022 was $1.34/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-
                                       32
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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 dropped 25%,
beginning the Quarter at $12.25 per pound V2O5 as of April 1, 2022 and ending
the Quarter at $9.15 per pound V2O5 as of June 24, 2022. The price of vanadium
was at its high of $12.25 per pound V2O5 at the beginning of the Quarter. The
price of vanadium was at its low of $9.15 per pound V2O5 at the end of the
Quarter. As of July 29, 2022, the current price of vanadium is $8.00.

According to Fastmarkets, prices for vanadium began dropping in the beginning of
the Quarter 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. Further, end-user demand for
ferrovanadium dropped in Europe after these consumers bought considerable
quantities of vanadium earlier in the Quarter due to Russia's invasion of
Ukraine. Notable alloy prices slide in Europe on weak demand, May 26, 2022.

Operations Update and Outlook for the Period Ending June 30, 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. Having recently secured three long-term uranium contracts with
major U.S. utilities, the Company is beginning to perform the work needed to
recommence production at one or more of its mines and in-situ recovery ("ISR")
facilities, starting as soon as 2023. Until such time when the Company has
ramped back up to commercial uranium production, it can rely on its significant
uranium inventories to fulfill its new contract requirements. The Company also
continues to evaluate selling a portion of its inventories on the spot market in
response to future upside price volatility, into the newly created U.S. Uranium
Reserve Program, or for delivery into additional long-term supply contracts if
procured. During the first half of 2022, the Company also began selling a
portion of its vanadium inventory into then 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 without
reliance on current uranium sales prices. The Company is also seeking new
sources of natural monazite sands (in addition to the proposed acquisition of
the Bahia Project) 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 new U.S. Uranium
Reserve Program and other efforts to restore domestic nuclear fuel capabilities.

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 sold some of its existing vanadium inventory into recent strong markets and is evaluating the potential to recommence vanadium production in 2023 or later years as market conditions may warrant for future sale and to replace sold inventory.



The Company has secured three new long-term sales contracts with U.S. nuclear
utilities, and is continuing to strategically pursue additional 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 uranium sales and procure
additional 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, to the U.S.
Uranium Reserve, or pursuant to term contracts 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 U.S. Uranium Reserve Program is expanded, 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
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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 U.S.
Uranium Reserve is expanded.

Conventional Activities

Conventional Extraction and Recovery Activities



During the six months ended June 30, 2022, the Mill did not package any material
quantities of U3O8, focusing instead on developing its REE recovery business.
During the six months ended June 30, 2022, the Mill produced approximately 205
tonnes of RE Carbonate, containing approximately 95 tonnes of TREO. The Mill
recovered small quantities of uranium 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 during 2022. 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 (in addition to the Bahia Project) 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 North American conversion facilities and at the Mill, the Company has
approximately 300,000 pounds of U3O8 contained in stockpiled Alternate Feed
Materials and other ore inventory at the Mill that can be recovered relatively
quickly in the future, as general market conditions may warrant (totaling about
992,000 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 1.05 million 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 six months ended June 30, 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 expansion of the U.S. Uranium Reserve
Program.

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 Whirlwind
Project, which came out of temporary cessation during the Quarter, and the Sheep
Mountain 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 six months ended June 30, 2022, the Company entered into three
uranium sale and purchase agreements with major U.S. utilities, constituting its
first new long-term supply contracts since 2018. Having observed a marked uptick
in interest from
                                       34
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nuclear utilities seeking long-term uranium supply, the Company remains actively engaged in pursuing additional selective long-term uranium sales contracts.

Vanadium Sales



As a result of strengthening vanadium markets, during the six months ended June
30, 2022, the Company sold approximately 575,000 pounds of the Company's
existing inventory of V2O5 (as FeV) at a net weighted average price of $13.44
per pound of V2O5. 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.

RE Carbonate 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. During
the quarter ended June 30, 2022, the Company sold approximately 18,000 kilograms
of TREO at an average price of $25.35 per kilogram of TREO.

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
underutilized capacity production costs applicable to RE Carbonate and
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 and six months ended June 30, 2022 and 2021 (in thousands of U.S. dollars):



                                                   Three months ended                     Six months ended
                                                        June 30,                              June 30,
                                                 2022               2021               2022               2021
Revenues
RE Carbonate                                 $     449          $       -          $     449          $       -
Vanadium concentrates                            5,295                  -              7,707                  -

Alternate Feed Materials processing and
other                                              723                456              1,248                809
Total revenues                                   6,467                456              9,404                809
Costs and expenses applicable to revenues
Costs and expenses applicable to RE
Carbonate                                          222                  -                222                  -
Costs and expenses applicable to vanadium
concentrates                                     2,102                  -              3,331                  -

Underutilized capacity production costs
applicable to RE Carbonate                       1,095                  -              2,758                  -
Total costs and expenses applicable to
revenues                                         3,419                  -              6,311                  -

Gross margin                                     3,048                456              3,093                809

Other operating costs and expenses
Development, permitting and land holding         1,219              2,517              2,392              5,888
Standby costs                                    3,323              2,118              6,798              4,253
Accretion of asset retirement obligation           510                351                904                672
Total other operating costs and expenses         5,052              4,986             10,094             10,813

Selling, general and administration
Selling costs                                       21                  -                 30                  -
General and administration                       4,682              3,812              9,889              7,185
Total selling, general and administration        4,703              3,812              9,919              7,185

Total operating loss                            (6,707)            (8,342)           (16,920)           (17,189)

Interest expense                                    (8)               (14)               (17)               (30)
Other loss (Note 12)                           (11,344)            (2,435)           (15,852)            (4,482)
Net loss                                     $ (18,059)         $ (10,791)         $ (32,789)         $ (21,701)

Basic and diluted net loss per common share
(Note 9)                                     $   (0.11)         $   (0.07)         $   (0.21)         $   (0.15)



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. During
the quarter the Company entered into three new long-term Uranium sales
contracts. Future sales of uranium may be subject to sale in the spot market if
not covered by these new contracts, the Company is unable to agree to terms for
additional long-term sales contracts or, potentially, pursuant to direct
government purchases under the newly established U.S. Uranium Reserve Program.
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 June 30, 2022 and 2021 totaled $6.47 million and $0.46 million, respectively, which were primarily related to increased shipments of vanadium concentrates and RE Carbonate as well as fees for mineralized material received from clean-up of a third-party uranium mine.


                                       36
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Revenues for the six months ended June 30, 2022 and 2020 totaled $9.40 million
and $0.81 million, respectively, which were primarily related to a significant
increase in shipments of vanadium concentrates and RE Carbonate as well as fees
for mineralized material received from clean-up of a third-party uranium mine.
Revenues have increased for both the quarter and year-to-date as a result of
higher shipments of V2O5 for processing and sale as FeV as well as the increased
production of approximately 205 tonnes of mixed RE Carbonate, containing
approximately 95 tonnes of total rare earth oxides ("TREO").

Costs and Expenses Applicable to Revenues

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



During the three months ended June 30, 2022 and 2021 the Company did not recover
any material amount of pounds of U3O8 as packaged product or V2O5 at the White
Mesa Mill.

Costs and expenses applicable to revenue for the three months ended June 30,
2022 totaled $2.10 million related to sales of approximately 225,000 pounds of
vanadium as FeV and $1.10 million related to underutilized capacity production
costs applicable to RE Carbonate processing.

During the six months ended June 30, 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 six months ended June 30, 2022
totaled $3.33 million related to sales of approximately 375,000 pounds of
vanadium as FeV and $2.76 million related to underutilized capacity production
costs applicable to RE Carbonate processing.

During the six months ended June 30, 2022, the Company began its RE Carbonate
production run, and recovered approximately 205 tonnes of mixed RE Carbonate,
containing approximately 95 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 June 30, 2022, the Company spent $1.22 million for
the future development of the Company's properties, primarily related to land
holding expenses, compared to $2.52 million for the three months ended June 30,
2021, which were primarily incurred for the first-time development and ramping
up of the expected RE Carbonate production program at the Mill.

For the six months ended June 30, 2022, the Company spent $2.39 million for the
future development of the Company's properties, primarily related to land
holding expenses, compared to $5.89 million for the six months ended June 30,
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 June 30, 2022, standby costs totaled $3.32 million,
compared with $2.12 million in the prior year. For the six months ended June 30,
2022, standby costs totaled $6.80 million, compared with $4.25 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.



                                       37

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Accretion



Accretion related to the asset retirement obligation for the Company's
properties increased slightly for the three months ended June 30, 2022 to $0.51
million compared with the prior year of $0.35 million. For the six months ended
June 30, 2022, accretion increased to $0.90 million compared with the prior year
of $0.67 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 $4.70 million and $9.92 million, respectively, for the three
and six months ended June 30, 2022, compared to $3.81 million and $7.19 million,
respectively, for the three and six months ended June 30, 2021. The increase is
primarily related to public company expenses such as legal, accounting, audit
and internal control professional services and corporate efforts to develop our
REE programs. Additionally, stock based compensation increased for the six
months ended June 30, 2022 compared with the six months ended June 30, 2021, by
approximately $0.82 million due to additional grants coupled with a higher stock
fair market value.

Interest Expense and Other Income and Expenses

Interest expense



Interest expense for the three months ended June 30, 2022 was $0.01 million,
compared with $0.01 million for the three months ended June 30, 2021. Interest
expense for the six months ended June 30, 2022 was $0.02 million, compared with
$0.03 million for the six months ended June 30, 2021.

Other income and expense



For the three months ended June 30, 2022, other income and expense was $11.34
million expense, net. These amounts primarily consist of a mark-to-market loss
on investments accounted for at fair value of $13.42 million and other income of
$0.28 million, partially offset by a gain on foreign exchange of $2.35 million
and interest income of $0.01 million.

For the three months ended June 30, 2021, other income and expense was $2.44
million expense, net. These amounts primarily consist of a mark-to-market loss
on the increase in fair value of warrant liabilities of $3.55 million and a
$0.44 million mark-to-market loss on investments accounted for at fair value,
partially offset by a gain on foreign exchange of $0.66 million, other income of
$0.87 million and interest income of $0.01 million.

For the six months ended June 30, 2022, other income and expense was $15.85
million expense, net. These amounts primarily consist of a mark-to-market loss
on investments accounted for at fair value of $16.84 million and other income of
$0.17 million, partially offset by a gain on foreign exchange of $1.13 million
and interest income of $0.02 million.

For the six months ended June 30, 2021, other income and expense was $4.48
million expense, net. These amounts primarily consist of a mark-to-market loss
on the increase in fair value of warrant liabilities of $7.05 million, partially
offset by a $1.02 million mark-to-market gain on investments accounted for at
fair value, other income of $1.20 million, a gain on foreign exchange of $0.32
million and interest income of $0.03 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
                                       38
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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.

Working capital at June 30, 2022 and future requirements for funds



At June 30, 2022, the Company had working capital of $134.09 million, including
$86.36 million in cash and cash equivalents, $11.80 million of marketable
securities, approximately 692,000 pounds of uranium finished goods inventory and
approximately 1,054,000 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

Six Months Ended June 30, 2022



Cash, cash equivalents and restricted cash were $106.69 million at June 30,
2022, compared to $132.82 million at December 31, 2021. The decrease of $26.13
million was due primarily to cash used in operating activities of $21.36
million, cash used in investing activities of $12.14 million and the impact of
foreign exchange rate fluctuations on cash held in foreign currencies of $0.02
million, partially offset by cash provided by financing activities of $7.39
million.

Net cash used in operating activities of $21.36 million is comprised of the net
loss of $32.79 million for the period adjusted for non-cash items and for
changes in working capital items. Significant items not involving cash
were $1.68 million of depreciation and amortization of property, plant and
equipment, share-based compensation expense of $2.01 million, accretion of asset
retirement obligation of $0.90 million, unrealized foreign exchange gain of
$1.34 million, revision of asset retirement obligations of $0.45 million and
other non-cash expenses, primarily related to the fair market valuation of
investments of $0.26 million. Other items include a decrease in inventories of
$1.78 million, an increase in trade and other receivables of $0.68 million, an
increase in prepaid expenses and other assets of $6.59 million and a decrease in
accounts payable and accrued liabilities of $2.99 million.

Net cash used in investing activities was $12.14 million, which primarily
related to $0.71 million for the purchase of property, plant and equipment,
primarily for utilization in RE Carbonate production at the Mill, as well as
$11.44 million in purchases of marketable debt securities in order to realize
higher interest rates on the Company's excess cash.

Net cash provided by financing activities totaled $7.39 million consisting of
$7.89 million net proceeds from the issuance of shares under the Company's ATM
facility and cash received from exercise of stock options of $0.40 million,
partially offset by $0.88 million cash paid to fund employee income tax
withholding due upon vesting of restricted stock units and $0.01 million cash
paid to settle and fund employee income tax withholding due upon exercise of
stock appreciation rights.

Six Months Ended June 30, 2021



Cash, cash equivalents and restricted cash were $99.86 million at June 30, 2021,
compared to $40.99 million at December 31, 2020. The increase of $58.87 million
was due primarily to cash provided by financing activities of $72.16 million,
cash provided by investing activities of $1.80 million, and the impact of
foreign exchange rate fluctuations on cash held in foreign currencies of $1.41
million, offset by cash used in operating activities of $16.50 million.

Net cash used in operating activities of $16.50 million is comprised of the net
loss of $21.70 million for the period adjusted for non-cash items and for
changes in working capital items. Significant items not involving cash
were $1.56 million of depreciation and amortization of property, plant and
equipment, share-based compensation expense of $1.19 million, a $7.05 million
change in warrant liabilities and accretion of asset retirement obligation of
$0.67 million, offset by unrealized foreign exchange gain of $1.60 million,
other non-cash expenses of $1.58 million and a revision of asset retirement
obligations of $0.04 million. Other items include an increase in inventories of
$1.64 million, a decrease in accounts payable and accrued liabilities of $0.19
million, an increase in prepaid expenses and other assets of $0.18 million and
an increase in trade and other receivables of $0.05 million.

Net cash provided by investing activities was $1.80 million comprised of $2.55
million cash received from maturities of marketable securities partially offset
by $0.76 million cash used for the purchase of property, plant and equipment.

Net cash provided by financing activities totaled $72.16 million consisting of
$67.10 million net proceeds from the issuance of shares under the Company's ATM
facility, cash received from exercise of stock options of $1.46 million, cash
received from exercise of warrants of $4.08 million, and $0.23 million cash
received from non-controlling interest partially offset by $0.66 million cash
paid to fund employee income tax withholding due upon vesting of restricted
stock units and $0.05 million cash paid to settle and fund employee income tax
withholding due upon exercise of stock appreciation rights.
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