The following discussion and analysis should be read in conjunction with our
unaudited condensed consolidated financial statements and related notes, which
have been prepared in accordance with U.S. GAAP, included elsewhere in this
Quarterly Report on Form 10-Q. 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, 2022. 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 "Cautionary Statement Regarding Forward-Looking Statements."

All dollar amounts stated herein are in U.S. dollars, except share and per share amounts and currency exchange rates unless specified otherwise.

Operations Update and Outlook for 2023

Overview

We responsibly produce several of the raw materials needed for clean energy and advanced technologies, including uranium, rare earth elements ("REEs") 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 White Mesa Mill (the "White Mesa Mill" or "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

•In Situ Recovery ("ISR") operations.



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"). 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. On February 10, 2023, the Company closed on its previously announced
mineral rights transfer agreements to acquire 17 mineral sand 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. See "Rare Earth Element Initiatives,"
below for more information.

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. The
Company is currently modifying and enhancing its existing solvent extraction
("SX") circuits at the Mill to be able to produce fully separated REE oxides,
including NdPr oxide, in addition to uranium, as soon as late-2023 or
early-2024. The Company is also evaluating other downstream REE activities,
including metal-making and alloying at the Mill or elsewhere in the U.S., and is
actively pursuing federal grants to help fund such efforts.

The Company also has a long history of conventional vanadium recovery at the
Mill. The Company has several existing mines that contain vanadium resources,
and the Mill has produced considerable quantities of vanadium 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.
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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 valuable materials
that would otherwise not be recoverable.

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 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, 2023, Mill
activities focused primarily on processing monazite sands for the recovery of
uranium and production of 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
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. During 2019
to 2022, the Company received 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 cleanup projects similar to
those on the Navajo Nation.

The Company's ISR operations consist of our Nichols Ranch Project, which is on standby at current uranium prices.



While 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
years to levels that we believe 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 and mine and process resources from our La Sal Project, Whirlwind
Project and/or Pinyon Plain Project. We believe we can bring this new production
to market within approximately twelve to eighteen months of a positive
production decision. Longer term, we expect to develop our large conventional
mines at Roca Honda and/or Sheep Mountain.

Update on Rare Earth Element Initiative



As previously disclosed, in early-2022, the Company began commercial-scale
partial separation of lanthanum ("La") and cerium ("Ce") on a small scale from
our RE Carbonate, resulting in a higher-value carbonate ("Partially Separated RE
Carbonate") using an existing solvent extraction ("SX") circuit at the Mill,
which represents the first commercial level REE separation to occur in the U.S.
in many years. The Partially Separated RE Carbonate, which is now our salable
product, is an even more advanced RE Carbonate than was produced in 2021, as it
contains a higher concentration of valuable neodymium and praseodymium ("NdPr")
("High Value TREO").



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Rare Earth Element Initiatives



The Company is in advanced discussions with several groups holding natural
monazite properties to secure additional supplies of monazite sands by offtake
or otherwise, which if successful, would be expected to allow the Company to
increase production of RE Carbonate, along with separated REE oxides in the
future.

The Company continues to make progress toward full REE oxide separation
capabilities at the Mill to produce both "light" and "heavy" separated REE
oxides. The Company is currently separating La and Ce from its commercial RE
Carbonate stream utilizing existing Mill infrastructure to produce an RE
Carbonate product with higher concentrations of NdPr and "heavy" (samarium
("Sm")+) REEs. Energy Fuels is also proceeding with the modification and
enhancement of its existing Mill infrastructure ("Phase 1") to expand its
"light" REE separation facilities to be capable of producing commercial
quantities of separated NdPr oxide by later this year or early 2024, followed by
planned further expansions to further increase NdPr production capacity ("Phase
2") and to produce separated dysprosium ("Dy"), terbium ("Tb") and potentially
other REE materials in the future ("Phase 3") from monazite and potentially
other REE process streams.

In 2022, the Company began construction on its "Phase 1" REE separation
facilities, which includes modifications and enhancements to the SX circuits at
the Mill. "Phase 1" is expected to have the capacity to process approximately
8,000 to 10,000 tonnes of monazite per year, producing roughly 4,000 to 5,000
tonnes TREO, containing roughly 800 to 1,000 tonnes of recoverable separated
NdPr oxide per year, or sufficient NdPr for 400,000 to 1 million EVs per year.
Because Energy Fuels is utilizing existing infrastructure at the Mill, "Phase 1"
capital is expected to total approximately $25 million. "Phase 1" is expected to
be operational later this year or early 2024, subject to receipt of sufficient
monazite supply and successful construction and commissioning.

During "Phase 2," Energy Fuels expects to expand its NdPr separation
capabilities, with an expected capacity to process approximately 15,000 to
30,000 tonnes of monazite per year and expected recovery of approximately 7,500
to 15,000 tonnes of TREO, containing approximately 1,500 to 3,000 tonnes of NdPr
oxide per year, or sufficient NdPr for 750,000 to 3.0 million EVs per year.
"Phase 2" is also expected to add a dedicated monazite "crack-and-leach" circuit
to the Mill's existing leach circuits. The Company expects to complete "Phase 2"
in 2026, subject to licensing, financing, and receipt of sufficient monazite
feed.

During "Phase 3," Energy Fuels expects to add "heavy" REE separation
capabilities, including the production of Dy, Tb, and potentially other REE
oxides and advanced materials. The Company will also evaluate the potential to
produce La and Ce products. The Company expects to have additional "heavy" REE
feedstock stockpiled from "Phase 1" and "Phase 2." as feed for "Phase 3" REE
separation. The Company expects to complete "Phase 3" in 2027, subject to
licensing, financing, and receipt of sufficient feed.

In addition, the Company completed its purchase of the Bahia Project in Brazil
on February 10, 2023. The Bahia Project is a well-known heavy mineral sand
("HMS") deposit that has the potential to supply 3,000 - 10,000 tonnes of
natural monazite sand concentrate per year for decades to the Mill for
processing into high-purity REE oxides and other materials. While Energy Fuels'
primary interest in acquiring the Bahia Project is the REE-bearing monazite, the
Bahia Project is also expected to produce large quantities of high-quality
titanium (ilmenite and rutile) and zirconium (zircon) minerals that are also in
high demand.

Natural monazite of 3,000 - 10,000 tonnes contains approximately 1,500 - 5,000
tonnes of TREO, including 300 - 1,000 tonnes of NdPr and significant commercial
quantities of Dy and Tb. The Company is focused on monazite at the current time,
as it has superior concentrations of these four (4) critical REEs compared to
other REE-bearing minerals. These REE's are used in the powerful
neodymium-iron-boron ("NdFeB") magnets that power the most efficient electric
vehicles ("EV"), along with uses in other clean energy and defense technologies.
For reference, a typical EV utilizes approximately one (1) to two (2) kilograms
of NdPr oxide in its drivetrain. Based on this assumption, monazite from the
Bahia Project alone is expected to supply enough NdPr oxide to power 150,000 to
1 million EVs per year. The uranium contained in the monazite, which is expected
to be comparable in grade to typical Colorado Plateau uranium deposits, will
also be recovered at the Mill.

The acquisition of the Bahia Project is part of the Company's efforts to build a
large and diverse book of monazite supply for its rapidly advancing REE
processing business. The Company expects to procure monazite through
Company-owned mines like the Bahia Project, joint ventures or other
collaborations, and open market purchases, like the Company's current
arrangement with The Chemours Company. The Company is currently in advanced
discussions with several additional current and future monazite producers around
the world to supply Energy Fuels' initiative.

Sale of Alta Mesa property to enCore Energy



On February 14, 2023, the Company closed on its previously announced definitive
agreement to sell three wholly owned subsidiaries that together hold the Alta
Mesa ISR Project to enCore Energy Corp. for total consideration of $120 million.
The transaction is expected to help the Company fully finance much of its
uranium, REE, vanadium and medical isotope business
                                       29
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plans for the next 2 to 3 years without diluting shareholders. See Note 5 - Property, Plant and Equipment and Mineral Properties for more information.

Known Trends or Uncertainties



The Company has had negative net cash outflows and net losses in previous years
in part due to depressed uranium and vanadium prices, along with smaller
quantities of monazite to process into salable RE Carbonate which hasn't allowed
the Company to realize economies of scale. 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 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.

Continued Efforts to Minimize Costs

Although the Company is pursuing two new initiatives - its REE and TAT radioisotope initiatives - in addition to its existing uranium and vanadium products, 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.

Uranium Market Update



According to monthly price data from TradeTech LLC ("TradeTech"), uranium spot
prices rose modestly during the Quarter. The uranium spot price began the
Quarter at $47.60 per pound on December 31, 2022 and rose 6% to $50.60 per pound
by March 31, 2023. During the Quarter, the uranium spot price hit a high of
$51.85 per pound during the week of February 24, 2023 and a low of $47.60 per
pound at the beginning of the quarter. TradeTech price data indicates that
long-term U3O8 prices were flat during the Quarter at $53.00 per pound. On April
28, 2023, TradeTech reported a spot price of $53.75 per pound and a long-term
price of $53.00 per pound U3O8.

The following important developments in the uranium and nuclear industries occurred during the Quarter:



-Under South Korea's 10th Basic Plan for Electricity Supply and Demand,
finalized by the Power Policy Council on January 11, 2023, nuclear is expected
to provide nearly 34.6% of the nation's electricity generation by 2026, compared
to 27.1% in 2021. The Plan also calls for the construction of Units 3 and 4 at
the Shin Hanul Nuclear Power Plant to resume (TradeTech, NMR, 1/13/2023).

-Support for nuclear power in Japan continues, where local authorities
representing communities surrounding the Ohma Nuclear Power Plant visited the
Ministry of Economy, Trade, and Industry to show support for the resumption of
construction of the nuclear power plant in Japan's Aomori Prefecture (TradeTech,
NMR, 2/10/2023).

-On February 10, 2023, Japan's Cabinet formally adopted a plan to implement a
Green Transformation policy, which will allow for the operation of nuclear power
plants beyond their current 60-year limit (TradeTech, NMR, 2/17/2023). During
the week of March 3, 2023, the Cabinet approved bills to allow commercial
nuclear plants to operate beyond their current 60-year limit (TradeTech, NMR,
3/3/3023).

-U.S. Senators John Barrasso (R-WY), Joe Manchin (D-WV), Jim Risch (R-ID),
Martin Heinrich (D-NM), Cynthia Lummis (R-WY), Chris Coons (D-DE), and Roger
Marshall (R-KS) introduced bipartisan legislation to ban Russian uranium
imports. This is a companion bill to H.R. 1042, which was introduced in February
2023 by U.S. Representatives Cathy McMorris Rodgers (R-WA), and Bob Latta (R-OH)
(TradeTech, NMR, 3/10/2023).

-During the week of March 10, 2023, Unit 3 at the Vogtle Nuclear Power Plant in
Georgia reached criticality, according to Georgia Power, a subsidiary of
Southern Company. Initial criticality is an important step during the startup
testing sequence (TradeTech, NMR, 3/10/2023).

-The U.K. government has classified nuclear as "environmentally sustainable" in
order to attract investment for the energy sector. This follows the E.U.
decision in July 2022 to label nuclear energy as green technologies needed for
the energy transition. (TradeTech, NMR, 3/17/2023). The U.K. government
announced its "Powering Up Britain" plan, which would increase the share of
nuclear generating capacity from 15% to 25% by 2050 (TradeTech, NMR, 3/31/2023).

-The U.S. International Trade Commission has determined in a "sunset review"
that termination of the suspended trade investigation on Russian uranium imports
"would be likely to lead to continuation or recurrence of material injury within
a reasonably foreseeable time." As a result, on March 23, the ITC said the
Russian Suspension Agreement would remain in place (TradeTech, NMR, March 24,
2023).
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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. Globally, the
Company believes that nuclear energy is seeing greater acceptance by governments
and policymakers as a solution to addressing the issues of climate change and
energy security. 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
transportation issues, trade issues, the life of existing uranium mines,
conversion and enrichment bottlenecks, 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.

No additional new uranium agreements were entered into by the Company during the
Quarter. However, the Company continues 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 is
also continuing to evaluate its ramp-up back into production at certain of its
conventional mines in anticipation of its fulfillment obligations, as well as
the timing and method for the purchase and 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.

Rare Earth Element 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, including wind turbines, EVs, cell phones, computers,
flat panel displays, advanced optics, catalysts, medicine, and national defense
applications. 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, 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 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 EVs and permanent magnet wind turbines used for
renewable energy generation, as well as in an array of other modern
technologies, including mobile devices and defense applications. 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 a 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 then goes 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 an 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, the Mill has produced an RE Carbonate, substantially all of which has
been sold to Neo Performance Materials ("Neo"). The Mill is currently modifying
and enhancing its existing SX facilities to result in an SX REE separation
circuit at the Mill, which, based on engineering to date, is expected to be
capable of producing up to 1,000 tonnes of separated NdPr oxide
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per year. The Company is also currently evaluating the potential to produce other downstream REE materials, including REE metals and alloys, 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, Dy, Tb, 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 (Pr6O11 25%; Nd2O3 75%) mid-point prices in China dropped approximately
26% during the Quarter from ¥710 RMB/kg (about $103/kg) to ¥525 RMB/kg (about
$76kg). The price for NdPr Oxide as April 28, 2023 was ¥443 RMB/kg (about
$64/kg). Ce Oxide (99.9%) mid-point prices in China dropped approximately 13%
during the Quarter from ¥7.05 RMB/kg (about $1.02/kg) to ¥6.15 RMB/kg (about
$0.90/kg). The price for Ce Oxide as of April 28, 2023 was ¥5.60 RMB/kg (about
$0.81/kg). La Oxide (99.9%) mid-point prices in China price dropped
approximately 16% during the Quarter from ¥6.95 RMB/kg (about $1.00/kg) to ¥5.85
RMB/kg (about $0.85/kg). The price for La Oxide as of April 28, 2023 was ¥5.35
RMB/kg (about $0.77/kg). Dy Oxide (99.5%) mid-point prices in China dropped
approximately 19% during the Quarter from ¥2,490 RMB/kg (about $360/kg) to
¥2,025 RMB/kg (about $295/kg). The price for Dy Oxide as of April 28, 2023 was
¥1,900 RMB/kg (about $275/kg). Tb Oxide (99.99%) mid-point prices in China
dropped approximately 29% during the Quarter from ¥14,000 RMB/kg (about
$2,022/kg) to ¥9,950 RMB/kg (about $1,449/kg). The price for Tb Oxide as of
April 28, 2023 was ¥8,450 RMB/kg (about $1,222/kg).

The REE market is dominated by China, which produces approximately 83% of
refined REE products with other Asia Pacific operations providing an additional
15%. According to WoodMackenzie, "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.

While China consumes the most REEs in its manufacturing industries, much of it
is consumed in the manufacture of end-use goods for export and by non-Chinese
companies operating within China. REE separation facilities are additionally
located in Vietnam, India, as well as Silmet in Estonia, and use a variety of
feedstocks and sources, with small-scale or experimental operational facilities
located elsewhere (Russia included).

The Company sees its commercial production of RE Carbonate as the first step in
an effort to restore the REE supply chain in the U.S., where one currently does
not exist. Multiple potential domestic sources of mined mineral sands, including
monazites, exist in North America and are potential feedstocks for the Mill; in
addition, there is one producer of REEs from hard rock mining in California,
which currently ships its material to Asia. On a global level, there is a
potential to acquire natural monazite sands from the following locations:
Australia, South Africa, Madagascar, New Zealand, the Philippines, Indonesia,
Brazil, Malaysia, Thailand, India, Russia, and others.

As demand for clean energy technologies and other advanced technologies,
increases in the coming years, the Company expects demand and prices for REEs to
increase. Increases in supply sources for REEs are expected in conjunction with
anticipated rising REE prices.

Vanadium Market Update



Vanadium is a metallic element that, when converted into ferrovanadium ("FeV")
(an alloy of vanadium and iron), is used primarily as an additive to strengthen
and harden steel and make it anti-corrosive. According to market consultant
FastMarkets, over 90% of FeV is used in the steel industry. In addition,
vanadium is used in the aerospace and chemical industries, and continues to see
interest in energy storage technologies, including vanadium redox flow
batteries. China is the largest global producer of vanadium, with additional
production coming from Russia, South Africa, and Brazil (Roskill).

During the Quarter, the mid-point price of vanadium in Europe rose 7%, beginning
the Quarter at $9.44 per pound V2O5 as of December 31, 2022 and ending the
Quarter at $10.13 per pound V2O5 as of March 31, 2023. The price of vanadium was
at its high of $10.80 per pound V2O5 between February 3, 2023 and February 16,
2023. The price of vanadium was at its low of $9.44 per pound V2O5 between
December 30, 2022 and January 12, 2023. As of April 28, 2023, the price of
vanadium is $9.75 per pound V2O5.

Early in the Quarter, FastMarkets reported "vanadium pentoxide and vanadium
nitrogen prices increased amid stronger downstream demand and more optimism from
market participants due to vanadium batteries gaining more attention in the
energy storage industry," along with "spot tightness due to production cuts at
several major vanadium producers for maintenance." China's vanadium price
increases amid tight spot availability, optimistic outlook, January 13, 2023.
However, by the end of the Quarter, sentiment was somewhat muted with Fast
Markets reporting "vanadium pentoxide prices fell amid weak demand" with "some
traders actively destock[ing] amid bearish market sentiment." However, one
Chinese trader
                                       32
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indicated that "we have not seen any signs of recovery in downstream sectors,
but some market participants believe this may improve in April when some basic
infrastructure projects start." China's vanadium price drops on weak demand,
March 31, 2023.

Operations Update and Outlook

Overview

The Company continues to believe that uranium supply and demand fundamentals
point to higher sustained uranium prices in the future. The Company believes
that nuclear energy, fueled by uranium, is experiencing a global resurgence with
an increased focus by governments, policymakers, and citizens on
decarbonization, electrification, and security of energy supply. In addition,
Russia's invasion of Ukraine and the 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 foster security of supply, avoid transportation
issues, and ensure more certain pricing.

In 2022, we entered into three long-term uranium contracts with major U.S. utilities. To deliver into these contracts, the Company is undergoing the necessary work to recommence production at one or more of its mines and 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, including its recent purchases of U.S. origin uranium on the spot market.

The Company continually seeks 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 seeking additional sources of natural monazite sands to supply
feedstock to its emerging REE projects (in addition to the recent acquisition of
the Bahia Project discussed in Note 5 - Property, Plant and Equipment and
Mineral Properties). The Company is also evaluating the potential to recover
radioisotopes from its existing process streams 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 expanding the new U.S. Uranium Reserve Program, supporting efforts to
restore domestic nuclear fuel capabilities, and advocating for the responsible
sourcing of uranium and nuclear fuel.

We continually evaluate the optimal mix of production, inventory and purchases in order to retain the flexibility to deliver long-term value.

Mill Activities



During the three months ended March 31, 2023, the Mill focused on its mixed RE
Carbonate production and produced approximately 250 tonnes of high-purity,
partially separated mixed RE Carbonate, containing approximately 115 tonnes of
TREO. while working to secure additional monazite ore feedstock to increase
production. During the three months ended March 31, 2023 the uranium recovered
from processing monazite ore was retained in circuit and was not packaged as
final U3O8 product. The Mill did not recover any vanadium during the quarter.

During the first half of 2023, the Company expects to process approximately 600
tonnes of monazite delivered late in 2022 from Chemours and recover
approximately 150 to 170 tonnes of TREO at the Mill in the form of approximately
315 to 365 tonnes of high-purity, partially separated mixed RE Carbonate (of
which approximately 250 tonnes of high-purity, partially separated mixed RE
Carbonate were recovered in the first quarter of 2023 containing approximately
115 tonnes of TREO). The Company expects to receive an additional 400 to 700
tonnes of monazite later in 2023, which the Company expects to process for the
recovery of uranium and production of separated NdPr and a heavy REE (Sm+) RE
Carbonate upon commissioning of the Mill's Phase 1 REE separation circuit in
late 2023 or early 2024 (see "Rare Earth Element Initiatives" above). The
Company is also in active discussion with several parties globally to acquire
additional quantities of natural monazite ore, which if secured and delivered to
the Mill, could result in significant additional quantities of uranium and
separated NdPr and heavy REE (Sm+) Re Carbonate production in 2024 and beyond.

No vanadium production is currently planned during 2023, though the Company continually monitors its inventory and vanadium markets to guide future potential vanadium production.

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.

Conventional Mine Activities

During the three months ended March 31, 2023, the Company performed rehabilitation and development work on its La Sal Complex, Whirlwind and Pinyon Plain projects for future potential production, including engineering, procurement,


                                       33
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construction management, increased development activities, significant workforce
expansion and needed rehabilitation of surface and underground infrastructure.
The Company expects to continue its rehabilitation and development work on these
Projects during 2023, as it prepares them for future production. Although the
timing of the Company's plans to extract and process mineralized materials from
these Projects will be based on current contract requirements, inventory levels,
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 making the investments required to put one or more of these
facilities into production as soon as later in 2023.

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 other conventional projects, including the
Energy Queen and Pandora mines and Sheep Mountain project. Additionally, the
Company is evaluating processing options for future production at its Sheep
Mountain project and 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.

ISR Extraction and Recovery Activities



The Company expects to produce insignificant quantities of U3O8 in the year
ending December 31, 2023 from Nichols Ranch. Until such time when (i) market
conditions improve sufficiently, (ii) suitable term sales contracts can be
procured, (iii) the U.S. Uranium Reserve Program is expanded or a combination
thereof, 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 sold its Alta Mesa ISR Project in
February 2023. See Note 5 - Property, Plant and Equipment and Mineral Properties
for more information.

Inventories

As of March 31, 2023, the Company had approximately 847,000 pounds of finished
uranium inventories located at North American conversion facilities.
Additionally, the Company has approximately 345,000 pounds of additional U3O8
contained in stockpiled Alternate Feed Materials and other ore inventory at the
Mill that can potentially be recovered relatively quickly in the future, as
general market conditions may warrant. During the three months ended March 31,
2023, the Company completed the purchase of 120,000 additional pounds of uranium
and the sale of 300,000 pounds of uranium to the U.S. Uranium Reserve Program,
resulting in the Company holding approximately 847,000 pounds of U3O8 in
inventory as of March 31, 2023. The Company expects to deliver 260,000
additional pounds of U3O8 under its existing uranium term contracts in 2023
resulting in expected uranium inventories to total approximately 587,000 pounds
of U3O8 at year-end 2023, subject to currently unplanned uranium spot sales and
purchases.

The Company sold 79,344 pounds of vanadium during the three months ended March
31, 2023. As of March 31, 2023, the Company holds approximately 906,000 pounds
of finished V2O5 in inventory. 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.

Sales Update and Outlook for 2023



The Company continually evaluates selling a portion of its inventories on the
spot market in response to future upside price volatility, for delivery into
additional long-term supply contracts if procured, and/or for future additional
sales into the newly established U.S. Uranium Reserve Program. The Company also
continually evaluates the potential to purchase uranium on the spot market to
replace sold inventory, meet sales obligations, and gain exposure to future
price increases.

Uranium Sales



The Company entered into four uranium sale and purchase agreements in 2022:
three with major U.S. nuclear utilities and one with the U.S. Uranium Reserve
Program. Under these contracts, the Company expects to sell 560,000 pounds of
U3O8 during 2023 with an expected weighted-average sales price of $58 - $60 per
pound, subject to then-prevailing market prices at the time of delivery. In
January 2023, the Company completed the sale of 300,000 pounds of its
inventories located at the Metropolis Works uranium conversion facility
("ConverDyn") to the U.S. Uranium Reserve Program, receiving total proceeds of
$18.47 million ($61.57 per pound), resulting in a margin of approximately $35.85
per pound of uranium. During the remainder of 2023, the Company expects to sell
260,000 pounds of its U3O8 inventory into its contracts at an expected sales
price of approximately $54 to $58 per pound, subject to inflation and spot
prices in effect at the time of delivery.

The three utility contracts require deliveries of uranium between 2023 and 2030,
with base quantities totaling 3.0 million pounds of uranium over the period, and
up to 4.1 million pounds of uranium if all remaining options are exercised.
Having
                                       34
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observed a marked uptick in interest from nuclear utilities seeking long-term uranium supply, the Company remains actively engaged in pursuing additional selective long-term uranium sales contracts.

To provide the Company with additional flexibility to fulfill its contract obligations and gain direct exposure to potential future uranium price increases, the Company purchased a total of 301,052 pounds of U.S.-origin uranium on the spot market in late 2022 and early 2023 for a weighted-average gross price of approximately $50.08 per pound.

Vanadium Sales



As a result of strengthening vanadium markets, during the three months ended
March 31, 2023, the Company sold approximately 79,344 pounds of the Company's
existing inventory of V2O5 at a weighted average price of $10.98 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. As such, the sales during Q1 2023 were at a $0.60 per pound premium to
the average spot price for V2O5 during February and March 2023.

Additionally, the Company intends to continue to selectively sell its V2O5 inventory on the spot market as markets warrant but will otherwise continue to maintain its vanadium in inventory.

Rare Earth Sales



The Company commenced its commercial production of a mixed RE Carbonate in March
2021. All RE Carbonate produced at the Mill in 2022 was sold to Neo for
separation at Silmet. Until such time as the Company commissions its own
separation circuits at the Mill, which is expected to be in late 2023 or early
2024, all or a portion of RE Carbonate production is expected to be sold to Neo
for separation at Silmet and/or, 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.

While the Company continues to make progress on 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. Throughout this process, the Company is gaining
important knowledge, experience and technical information, all of which are
valuable for current and future mixed RE Carbonate production and planned future
production of separated REE oxides and other advanced REE materials at the Mill
or elsewhere.
                                       35
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Results of Operations

The following table summarizes the results of operations for the three months ended March 31, 2023 and 2022 (in thousands of U.S. dollars):



                                                   Three Months Ended
                                                        March 31,                    Increase               Percent
                                                 2023               2022            (Decrease)              Change
Revenues
Uranium concentrates                         $  18,470          $       -          $   18,470                          *
Vanadium concentrates                              871              2,412              (1,541)                    (64) %

Alternate Feed Materials, processing and
other                                              272                525                (253)                    (48) %
Total revenues                                  19,613              2,937              16,676                          *

Costs applicable to revenues
Costs applicable to uranium concentrates         7,715                  -               7,715                          *
Costs applicable to vanadium concentrates          551              1,229                (678)                    (55) %

Underutilized capacity production costs
applicable to RE Carbonate                           -              1,663              (1,663)                         *
Total costs applicable to revenues               8,266              2,892               5,374                     186  %

Other operating costs and expenses
Exploration, development and processing          3,096              1,173               1,923                     164  %
Standby                                          2,287              3,475              (1,188)                    (34) %
Accretion of asset retirement obligations          346                394                 (48)                    (12) %
Total other operating costs                      5,729              5,042                 687                      14  %

Selling, general and administration
Selling, general and administration
(excluding share-based compensation)             4,837              4,354                 483                      11  %
Share-based compensation                         1,186                862                 324                      38  %
Total selling, general and administration        6,023              5,216                 807                      15  %

Total operating loss                              (405)           (10,213)              9,808                          *

Other income (loss)
Gain on sale of assets                         116,450                  -             116,450                          *
Other loss                                      (1,781)            (4,517)              2,736                     (61) %
Total other income (loss)                      114,669             (4,517)            119,186                          *

Net income (loss)                            $ 114,264          $ (14,730)         $  128,994                          *

Basic and diluted net income (loss) per
common share                                 $    0.72          $   (0.09)         $     0.81                          *


*Not meaningful.






                                       36

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The following tables set forth selected operating data and financial metrics for the three months ended March 31, 2023 and 2022.



                                       Three Months Ended
                                           March 31,                    Increase        Percent
                                   2023                  2022          (Decrease)       Change

Volumes Sold

Uranium concentrates (lbs.)     300,000                     -          300,000                 *
Vanadium concentrates (lbs.)     79,344               229,349         (150,005)           (65) %


*Not meaningful.

                                                   Three Months Ended
                                                        March 31,                       Increase               Percent
                                                 2023                 2022             (Decrease)              Change
Realized Sales Price

Uranium concentrates ($/lbs.)              $    61.57             $       -          $     61.57                          *
Vanadium concentrates ($/lbs.)             $    10.98             $   10.51          $      0.47                       4  %

Costs and expenses applicable to revenues



Uranium concentrates ($/lbs.)              $    25.72             $       -          $     25.72                          *
Vanadium concentrates ($/lbs.)             $     6.94             $    5.36          $      1.58                      29  %


*Not meaningful.

Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022



For the three months ended March 31, 2023, we recognized net income of
$114.26 million or $0.72 per share compared to a net loss of $14.73 million or
$0.09 per share for the three months ended March 31, 2022. The change between
periods was primarily due to (i) a gain of $116.45 million recognized on the
sale of the Company's Alta Mesa ISR Project in February 2023, (ii) sales of
uranium concentrates for $18.47 million, (iii) a $1.66 million decrease in
underutilized production costs applicable to RE Carbonate, partially offset by
(i) costs applicable to uranium concentrates of $7.72 million, (ii) a decrease
in sales of vanadium concentrates of $1.54 million and (iii) increased selling,
general and administrative expenses, including non-cash share-based
compensation, of $0.81 million due to increased headcount associated with
ramping up operating activities.

Operating loss decreased to $0.41 million for the three months ended March 31,
2023 from $10.21 million for the three months ended March 31, 2022, primarily
due to sales of uranium concentrates during the three months ended March 31,
2023. There were no such sales during the three months ended March 31, 2022.

Revenues

Uranium concentrates

Revenues from uranium concentrates were $18.47 million for the three months
ended March 31, 2023 due to the completed sale of 300,000 pounds of our
inventories to the U.S. Uranium Reserve Program at a realized sales price of
$61.57 per pound of uranium. There were no revenues from uranium concentrates
for the three months ended March 31, 2022.

Vanadium concentrates



Revenues from vanadium concentrates decreased to $0.87 million for the three
months ended March 31, 2023 from $2.41 million for the three months ended March
31, 2022, a decrease of 64% primarily due lower volumes sold and realized price
between periods. Lower sales volumes (calculated as the change in year-to-year
sales volumes times the prior period realized price) accounted for an
approximate $1.58 million decrease in vanadium revenue between periods. Lower
realized prices (calculated as the change in the year-to-year average realized
price times current year sales volumes sold) accounted for an approximate $0.03
million decrease in vanadium revenue between periods.

Alternate Feed Materials, processing and other



Revenues from Alternate Feed Materials, processing and other decreased to
$0.27 million for the three months ended March 31, 2023 from $0.53 million for
the three months ended March 31, 2022, a decrease of $0.25 million or 48%,
primarily due to lower Alternate Feed Materials received and processed between
periods.
                                       37
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Costs Applicable to Revenues

Costs applicable to uranium concentrates



Costs applicable to uranium concentrates were $7.72 million for the three months
ended March 31, 2023 due to the completed sale of 300,000 pounds of our finished
uranium concentrate at a weighted average cost of $25.72 per pound to the U.S.
Uranium Reserve Program in January 2023. There were no costs applicable to
uranium concentrates for the three months ended March 31, 2022.

Costs applicable to vanadium concentrates



Costs and expenses applicable to vanadium concentrates decreased to
$0.55 million for the three months ended March 31, 2023 from $1.23 million for
the three months ended March 31, 2022, a decrease of $0.68 million or 55%,
primarily due to a decrease of approximately 150,005 pounds of V2O5, partially
offset by a $1.58 increase in cost per pound sold between periods.

Underutilized capacity production costs applicable to RE Carbonate



Underutilized capacity production costs applicable to RE Carbonate were
$1.66 million for the three months ended March 31, 2022. The underutilized
capacity production costs were due to low throughput rates as the Mill ramps-up
to commercial-scale production of RE Carbonate. To date, the Mill has focused on
producing commercially salable RE Carbonate at low throughput rates and has
shipped its resulting product to Silmet. The Mill expects to increase its
throughput rates as its supplies of monazite sands increase. There were no
underutilized production capacity costs applicable to RE Carbonate for the three
months ended March 31, 2023.

Other Operating Costs and Expenses

Exploration, development and processing



Exploration, development and processing costs increased to $3.10 million for the
three months ended March 31, 2023 from $1.17 million for the three months ended
March 31, 2022, an increase of $1.92 million or 164%. Exploration, development
and processing costs were primarily related to expenses for our Bahia Project
and Whirlwind Project as well as continued progression of the 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 costs in part due to the fact
that the Company has not established Proven Mineral Reserves or Probable Mineral
Reserves as defined by S-K 1300 or NI 43-101 through the completion of a final
or bankable feasibility study for any of the Company's projects as of the year
ended 2022, with the exception of its Sheep Mountain and Pinyon Plain Projects.

Standby

Standby costs related to the care and maintenance of the standby mines are expensed along with standby costs incurred when the Mill in standby status is operating at minimal levels of production or packaging.



Standby costs decreased to $2.29 million for the three months ended March 31,
2023 from $3.48 million for the three months ended March 31, 2022, a decrease of
$1.19 million or 34%, primarily due to the Alta Mesa Divestiture on February 14,
2023 as well as lower costs incurred at Colorado Plateau and the Mill between
periods.

Selling, general and administrative



Selling, general and administrative expenses include costs associated with
marketing uranium, corporate costs and other general and administrative costs.
Corporate costs 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 (excluding share-based compensation)



Selling, general and administrative expenses (excluding share-based
compensation) increased to $4.84 million for the three months ended March 31,
2023 from $4.35 million for the three months ended March 31, 2022, an increase
of $0.48 million or 11%, primarily due to increased salaries and benefits in
connection with additional headcount incurred associated with the Company's
efforts to enhance its business processes to prepare for the current and future
growth in activity in our Uranium and REE operations. Our headcount increased to
134 full-time employees as of March 31, 2023 from 103 full-time employees as of
March 31, 2022.

Share-based compensation

Share-based compensation increased to $1.19 million for the three months ended
March 31, 2023 from $0.86 million for the three months ended March 31, 2022, an
increase of $0.32 million or 38%, primarily due to Board approved annual 2023
grant of awards coupled with a higher grant date fair value, completion of the
requisite service period for 2022 and additional headcount.
                                       38
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Other Income (Loss)

Gain on sale of assets

For the three months ended March 31, 2023, we recognized a gain on sale of assets of $116.45 million related to the sale of Energy Fuels' Alta Mesa ISR Project to enCore for total consideration of $120 million. See Note 5 - Property, Plant and Equipment and Mineral Properties for more information.

Other loss



Other loss decreased to $1.78 million, net for the three months ended March 31,
2023 from $4.52 million, net for the three months ended March 31, 2022, a
decrease of $2.74 million or 61%, primarily due to an unrealized loss on foreign
exchange of $1.24 million during the three months ended March 31, 2022 compared
to an unrealized gain on foreign exchange of $0.03 million during the three
months ended March 31, 2023, increased interest income of $1.02 million,
decreased losses of $0.67 million on mark-to-market investments and marketable
securities accounted for at fair value between periods, partially offset by
unrealized loss on the convertible note of $0.20 million during the three months
ended March 31, 2023.

LIQUIDITY AND CAPITAL RESOURCES

Funding of Major Cash Requirements



Our primary short-term and long-term cash requirements are to fund working
capital needs and operating expenses, capital expenditures and potential future
growth opportunities through ongoing initiatives such as our REE program, Bahia
Project, our S-X project, Pinyon Plain operational readiness and TAT
radioisotope initiative as well as business and property acquisitions.

We expect to be able to fund working capital and operating expenses, capital
expenditures and currently planned growth initiatives over the next 12 months
through available cash balances, and product inventory sales, if needed. We may
also increase our working capital through issuances of Common Shares in
appropriate circumstances. We intend to continue to pursue the acquisition of
monazite mineral rights and other uranium producing assets.

Shares Issued for Cash



The Company has an ATM program in place, which allows the Company to make Common
Share distributions to the extent qualified under a U.S. shelf registration
statement on Form S-3 and one or more prospectus supplements. The Company's
current U.S. shelf registration statement was declared effective on March 18,
2021 and permits the Company to sell any combination of Securities (as defined
therein) in one or more offerings having an aggregate offering price of up to
$300.00 million. Most recently, on January 3, 2022, we filed a prospectus
supplement with the SEC to our 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
U.S. No Common Shares were issued under its ATM offering during the three months
ended March 31, 2023. See Note 7 - Capital Stock for more information.

Working Capital and Future Requirements for Funds



As of March 31, 2023, the Company had working capital of $143.61 million,
including $43.83 million in cash and cash equivalents, $60.44 million of
marketable securities, approximately 847,000 pounds of uranium finished goods
inventory and approximately 906,000 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.


                                       39
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Cash and Cash Flows

The following table summarizes our cash flows (in thousands):



                                                                     Three Months Ended
                                                                         March 31,
                                                                2023                    2022
Net cash used in operating activities                     $       (2,579)         $     (10,548)
Net cash used in investing activities                            (19,002)                  (398)
Net cash provided by (used in) financing activities                 (846)                 3,590

Effect of exchange rate fluctuations on cash held in foreign currencies

                                                    22                     19

Plus: release of restricted cash related to sale of assets

                                                             3,475                      -

Net change in cash, cash equivalents and restricted cash (18,930)

              (7,337)

Cash, cash equivalents and restricted cash, beginning of period

                                                            80,269                132,822

Cash, cash equivalents and restricted cash, end of period $ 61,339

$ 125,485

Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022

Net cash used in operating activities



Net cash used in operating activities decreased by $7.97 million to $2.58
million for the three months ended March 31, 2023 from $10.55 million for the
three months ended March 31, 2022 primarily due to sales of uranium concentrates
of $18.47 million less costs applicable to uranium concentrates of $7.72
million, partially offset by lower sales and costs of vanadium concentrates and
increased selling, general and administrative expenses and exploration,
development permitting and land holding expenses between periods.

Net cash used in investing activities



Net cash used in investing activities increased by $18.60 million to $19.00
million for the three months ended March 31, 2023 from $0.40 million for the
three months ended March 31, 2022 primarily due to purchases of marketable
securities of $47.92 million, the acquisition of the Bahia Project for
$21.60 million, partially offset by $53.76 million in proceeds from the sale of
the Alta Mesa ISR Project. Additionally, additions to property, plant and
equipment and mineral properties increased by $2.82 million between periods. See
Note 5 - Property, Plant and Equipment and Mineral Properties for more
information.

Net cash provided by (used in) financing activities



Net cash used in financing activities was $0.85 million for the three months
ended March 31, 2023 compared to net cash provided by financing activities of
$3.59 million for the three months ended March 31, 2023. The change in net cash
provided by (used in) activities is primarily due to proceeds of $4.16 million
for the issuance of common shares for cash, net under our ATM Program during the
three months ended March 31, 2023. See Note 7 - Capital Stock for more
information.

Critical Accounting Policies and Estimates



The discussion and analysis of our financial condition and results of operations
are based upon our financial statements, which have been prepared in accordance
with U.S. GAAP. The preparation of our unaudited condensed consolidated
financial statements requires us to make estimates and assumptions that affect
the reported amounts of assets, liabilities, revenues and expenses and related
disclosure of contingent liabilities. Certain accounting policies involve
judgments and uncertainties to such an extent that there is reasonable
likelihood that materially different amounts could have been reported under
different conditions, or if different assumptions had been used. We evaluate our
estimates and assumptions on a regular basis. We base our estimates on
historical experience and various other assumptions that are believed to be
reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates and assumptions used in preparation of our financial statements. We
provide expanded discussion of our more significant accounting policies,
estimates and judgments in the Annual Report on Form 10-K for the year ended
December 31, 2022. We believe these accounting policies reflect our more
significant estimates and assumptions used in preparation of our financial
statements.

Off Balance Sheet Arrangements

See Note 12 - Commitments and Contingencies to the unaudited condensed consolidated financial statements for further information on off balance sheet arrangements.


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