Forward-Looking Statements





The information disclosed in this quarterly report, and the information
incorporated by reference herein, include "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). Forward-looking statements include, but are not limited to, statements
regarding our or our management's expectations, hopes, beliefs, intentions, or
strategies regarding the future. In addition, any statements that refer to
projections, forecasts, or other characterizations of future events or
circumstances, including any underlying assumptions, are forward-looking
statements. The words "anticipate," "believe," "continue," "could," "estimate,"
"expect," "intend," "may," "might," "plan," "possible," "potential," "predict,"
"project," "should," "would," and similar expressions may identify
forward-looking statements, but the absence of these words does not mean that a
statement is not forward-looking.



The forward-looking statements contained or incorporated by reference in this
quarterly report are based on our current expectations and beliefs concerning
future developments and their potential effects on us and speak only as of the
date of each such statement. There can be no assurance that future developments
affecting us will be those that we have anticipated. These forward-looking
statements involve a number of risks, uncertainties (some of which are beyond
our control), or other assumptions that may cause actual results or performance
to be materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include, but are not
limited to, those factors described in Item 2 of Part I of this quarterly report
and in Item 1A of Part I of the Company's Annual Report on Form 10-K for the
year ended December 31, 2020 as filed with the SEC on April 15, 2021. Should one
or more of these risks or uncertainties materialize, or should any of our
assumptions prove incorrect, actual results may vary in material respects from
those projected in these forward-looking statements. We undertake no obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required under
applicable securities laws.



The following discussion should be read in conjunction with our condensed consolidated interim financial statements and footnotes thereto contained in this quarterly report.





Overview



General



Western Uranium & Vanadium Corp. ("Western" or the "Company", formerly Western
Uranium Corporation) was incorporated in December 2006 under the Ontario
Business Corporations Act. On November 20, 2014, the Company completed a listing
process on the Canadian Securities Exchange ("CSE"). As part of that process,
the Company acquired 100% of the members' interests of Pinon Ridge Mining LLC
("PRM"), a Delaware limited liability company. The transaction constituted a
reverse takeover ("RTO") of Western by PRM. Subsequent to obtaining appropriate
shareholder approvals, the Company reconstituted its Board of Directors and
senior management team. Effective September 16, 2015, Western completed its
acquisition of Black Range Minerals Limited ("Black Range").



On August 18, 2014, the Company closed on the purchase of certain mining
properties in Colorado and Utah from Energy Fuels Holding Corp. Assets purchased
included both owned and leased lands in Utah and Colorado, and all represent
properties that have been previously mined for uranium to varying degrees in the
past. The acquisition included the purchase of the Sunday Mine Complex. The
Sunday Mine Complex is located in western San Miguel County, Colorado. The
complex consists of the following five individual mines: the Sunday mine, the
Carnation mine, the Saint Jude mine, the West Sunday mine and the Topaz mine.
The operation of each of these mines requires a separate permit, and all such
permits have been obtained by Western and are currently valid. In addition, each
of the mines has good access to a paved highway, electric power to existing
declines, office/storage/shop and change buildings, and an extensive underground
haulage development with several vent shafts complete with exhaust fans. These
properties were formerly secured by a first priority interest collateralizing a
$500,000 promissory note which was paid in full on August 31, 2018, and thus,
the properties are now held free and clear of encumbrances. The Sunday Mine
Complex is the Company's core resource property and was assigned "Active" status
effective June 2019.



On September 16, 2015, Western completed its acquisition of Black Range, an
Australian company that was listed on the Australian Securities Exchange until
the acquisition was completed. The acquisition terms were pursuant to a
definitive Merger Implementation Agreement entered into between Western and
Black Range. Pursuant to the agreement, Western acquired all of the issued
shares of Black Range by way of Scheme of Arrangement ("the Scheme") under the
Australian Corporation Act 2001 (Cth) (the "Black Range Transaction"), with
Black Range shareholders being issued common shares of Western on a 1 for 750
basis. On August 25, 2015, the Scheme was approved by the shareholders of Black
Range, and on September 4, 2015, Black Range received approval by the Federal
Court of Australia. In addition, Western issued options to purchase Western
common shares to certain employees, directors, and consultants. Such stock
options were intended to replace Black Range stock options outstanding prior to
the Black Range Transaction on the same 1 for 750 basis.



                                       16





The Company has registered offices at 330 Bay Street, Suite 1400, Toronto,
Ontario, Canada, M5H 2S8, and its common shares are listed on the CSE under the
symbol "WUC" and are traded on the OTCQX Best Market under the symbol "WSTRF".
Its principal business activity is the acquisition and development of uranium
and vanadium resource properties in the states of Utah and Colorado in the
United States of America ("United States").



Recent Developments


February 2021 Private Placement





On February 16, 2021, the Company closed on a non-brokered private placement of
3,250,000 units at a price of CAD $0.80 per unit. The aggregate gross proceeds
raised in the private placement amounted to CAD $2,600,000. Each unit consisted
of one common share of Western (a "Share") plus one common share purchase
warrant of Western (a "Warrant"). Each warrant entitled the holder to purchase
one Share at a price of CAD $1.20 per Share for a period of three years
following the closing date of the private placement. A total of 3,250,000 Shares
and 3,250,000 Warrants were issued in the private placement.



March 2021 Private Placement


On March 1, 2021, the Company closed on a non-brokered private placement of
3,125,000 units at a price of CAD $0.80 per unit. The aggregate gross proceeds
raised in the private placement amounted to CAD $2,500,000. Each unit consisted
of one Share and one Warrant. Each warrant entitled the holder to purchase one
Share at a price of CAD $1.20 per Share for a period of three years following
the closing date of the private placement. A total of 3,125,000 Shares and
3,125,000 Warrants were issued in the private placement.



Bullen Property (Weld County)





The Bullen Property is an oil and gas property located in Weld County Colorado.
The Company acquired this non-core property in 2015 in the Black Range Minerals
Limited acquisition, and Black Range purchased the property in 2008 for its
Keota Uranium Project.



In 2017, the Company signed a three year oil and gas lease which in 2020 was extended for an additional three year term or until the end of continuous operations. The consideration was in the form of upfront bonus payments and backend 3/16th production royalty payment. Additional right-of-way easement agreements were signed which allowed for the development of a pipeline. The lease agreement allows the Company to retain property rights to vanadium, uranium, and other mineral resources.





A 2019 lawsuit was filed in the Weld County District Court over the original
Bullen Property deed language which was negotiated before the Company acquired
Black Range by prior management and a bank representing the estate of the
property owner. The Company settled with the plaintiffs by awarding the estate's
beneficiaries a non-participating royalty interest of 1/8th for all hydrocarbon
and non-hydrocarbon substances that are produced and sold from the property.



In early 2020, Bison Oil & Gas traded this lease to Mallard Exploration ("Mallard"), Mallard subsequently filed an application with the Colorado Oil & Gas Conservation Commission ("COGCC") to update the permit to create a new pooled unit.


During 2021, the operator advanced through the oil well production stages:
drilling was completed in the first quarter, wellfield completion/fracking was
completed during the second quarter, drill out was completed in July, and
flowback was completed in August. By August 2021, each of the eight (8) Blue
Teal Fed wells had commenced oil and gas production. The first gas production
was sold in July and the first oil production was sold in August. Based upon
Colorado rules, the operator may commence royalty payments not later than six
months after the end of the month in which production is first sold. Thus the
first monthly royalty check and royalty statement will be released at the
January 2022 month-end for the since inception cumulative for Western's royalty
interest in the pooled trust (0.003114 interest decimal). Individual well
volumes are expected to continue to build to peak levels after about 100 days of
production from the reservoir; this will be accomplished during the fourth

quarter.



                                       17





Kinetic Separation Licensing
During 2016, the Company submitted documentation to the Colorado Department of
Public Health and Environment ("CDPHE") for a determination ruling regarding the
type of license which may be required for the application of Kinetic Separation
at the Sunday Mine Complex within the state of Colorado. During May and June of
2016, CDPHE held four public meetings in several cities in Colorado as part of
the process. On July 22, 2016, CDPHE closed the comment period. In connection
with this matter, the CDPHE consulted with the United States Nuclear Regulatory
Commission ("NRC"). In response, the CDPHE received an advisory opinion, dated
October 16, 2016, which did not contain support for the NRC's opinion and with
which the Company's regulatory counsel does not agree. NRC's advisory opinion
recommended that Kinetic Separation should be regulated as a milling operation
but did recognize that there may be exemptions to certain milling regulatory
requirements because of the benign nature of the non-uranium bearing sands
produced after Kinetic Separation is completed on uranium-bearing ores. On
December 1, 2016, the CDPHE issued a determination that the proposed Kinetic
Separation operations at the Sunday Mine Complex must be regulated by the CDPHE
through a milling license. The 2018 increase in the blended uranium/vanadium
price has brought the Company closer to production. Beginning in 2017, the
Company's regulatory counsel prepared significant documentation in preparation
for a prospective submission. On September 13, 2019, the Company's regulatory
counsel submitted a white paper to the NRC entitled "Recommendations on the
Proper Legal and Policy Interpretation for Using Kinetic Separation Processes at
Uranium Mine Sites." On July 24, 2020, the NRC staff responded with a letter in
support of the original conclusion. Western's regulatory counsel has proposed
alternatives. However, management has decided not to proceed at this time,

given
its present opportunity set.


Sunday Mine Complex Vanadium Project Supplementary Requirements





On June 18, 2019, The Colorado Division of Reclamation, Mining and Safety
(CDRMS) issued a letter indicating limited supplementary requirements prior to
the removal of material (ore) from the Sunday Mine Complex's underground
workings and further offsite handling. In a follow-up meeting on Monday, August
5, 2019, the Company agreed to construct an ore pad on the surface before
stockpiling or storing ore outside the mine and acquire certification that the
storm drainage system was constructed in accordance with the existing plan prior
to the removal of ore from the Sunday Mine Complex. On August 15, 2019, the
Company sent a response letter to CDRMS providing the requested additional
information regarding the reopening of the Sunday Mine Complex. On September 18,
2019, the CDRMS issued a letter indicating that activities at the Sunday Mine
Complex do not meet the definition of a "Mining Operation", and thus, at this
time, the Division does not consider the permits in active status. In the
letter, CDRMS reiterated that prior to the removal of ore material from the
mines and upgrading to an active status, the CDRMS surface requirements needed
to be completed, inspected, and accepted by CDRMS. The CDRMS further noted
requirements that would apply to Western's proposed off-site kinetic separation
test facility. On April 9, 2020, CDRMS issued a letter acknowledging that the
Construction Completion Reports and As-Built Certifications for the ore storage
pads have been reviewed and accepted. It was further noted that prior to ore
being removed and placed on the ore pad an inspection would still need to be
completed, but due to COVID-19 the CDRMS staff were subject to a no-travel
policy under the Governor's Stay-at-Home Order. Hence, CDRMS offered an
alternative remote procedure requiring extensive photo documentation and a
signed affidavit from both the manufacturer and installation crew certifying
that the ore pad liner was installed in accordance with the approved
Environmental Protection Plan. Additional requirements included the submission
of a comprehensive hydrogeology report and completion of the Sunday Mine Complex
MLRB permit hearing process. With this approval, Western has now completed every
project, study, and submission stipulated as required under the existing
Environmental Protection Plan by CDMRS, and all submissions have been made. The
hydrogeology report is currently being reviewed by CDMRS, and approval is needed
to conduct mining activities below the static groundwater level or to affect
ground or surface waters. The Company is working toward the completion of an
updated Plan of Operations, which is required for resumption of mining
activities at the Topaz mine.



Sunday Mine Complex Permitting Status


On February 4, 2020, the Colorado DRMS sent a Notice of Hearing to Declare
Termination of Mining Operations related to the status of the mining permits
issued by the state of Colorado for the Sunday Mine Complex. At issue was the
application of an unchallenged Colorado Court of Appeals Opinion for a separate
mine (Van 4) with very different facts that are retroactively modifying DRMS
rules and regulations. The Company maintains that it was timely in meeting
existing rules and regulations. The hearing was scheduled to be held during
several monthly MLRB Board meetings, but this matter was delayed several times.
The permit hearing was held during the MLRB Board monthly meeting on July 22,
2020. At issue was the status of the five existing permits which comprise the
Sunday Mine Complex. Due to COVID-19 restrictions, the hearing took place
utilizing a virtual-only format. The Company prevailed in a 3-to-1 decision
which acknowledged that the work completed at the Sunday Mine Complex under DRMS
oversight was timely and sufficient for Western to maintain these permits. In a
subsequent July 30, 2020 letter, the DRMS notified the Company that the status
of the five permits (Sunday, West Sunday, St. Jude, Carnation, and Topaz) had
been changed to "Active" status effective June 10, 2019, the original date on
which the change of the status was approved. On August 23, 2020, the Company
initiated a request for Temporary Cessation status for the Sunday Mine Complex
as the mines had not been restarted within a 180-day window due to the direct
and indirect impacts of the COVID-19 pandemic. Accordingly, a permit hearing was
scheduled for October 21, 2020 to determine Temporary Cessation status. In a
unanimous vote, the MLRB approved Temporary Cessation status for each of the
five Sunday Mine Complex permits (Sunday, West Sunday, St. Jude, Carnation, and
Topaz). On October 9, 2020, the MLRB issued a board order which finalized the
findings of the July 22, 2020 permit hearing. On November 12, 2020, a coalition
of environmental groups filed a lawsuit against the MLRB seeking a partial
appeal of the July 22, 2020 decision by requesting termination of the Topaz mine
permit. On December 15, 2020, the same coalition of environmental groups amended
their complaint against the MLRB seeking a partial appeal of the October 21,
2020 decision requesting termination of the Topaz mine permit. The Company has
joined with the MLRB in defense of their July 22, 2020 and October 21, 2020
decisions. On May 5, 2021, the Plaintiff in the Topaz Appeal filed an opening
brief with the Denver District Court seeking to overturn the July 22, 2020 and
October 21, 2020 MLRB permit hearing decisions on the Topaz mine permit. The
MLRB and the Company were to respond with an answer brief within 35 days on or
before June 9, 2021, but instead sought a settlement. The judicial review
process was delayed as extensions were put in place until August 20, 2021. A
settlement was not reached and the MLRB and the Company submitted answer briefs
on August 20, 2021. The Plaintiff submitted a reply brief on September 10,

2021.



                                       18




Sunday Mine Complex Project 2021 Restart





In July 2021, the Company announced its preparation for the resumption of mining
activities at the Sunday Mine Complex (SMC). The project entailed the
development of multiple SMC ore bodies. This year's project involves a shift in
the base of operations from the St. Jude Mine (2019) to the Sunday Mine (2021).
Underground development began in August following mine ventilation, power
upgrades, and increasing explosive capabilities. The first target was the
extension of the drift (tunnel) 150 feet to reach the first surface exploration
drill hole to access the GMG Ore Body (GMG). Early results were positive as
drilling toward the GMG resulted in the location of ore-grade material within
thirty feet of the existing mine workings. Notably, only limited exploration
drilling has been done in this area due to the mountainous terrain on the
surface above. As drifting proceeded, very high-grade ore continued to be
intersected through the drift path and on both sides of the drift. As a result,
the team shifted from development to mining. In a matter of only three working
days, over 300 tons of high-grade uranium/vanadium ore was mined from the drift.
Based upon on-site scintillometer readings, the content is estimated to contain
1.5%+ uranium U3O8. Results indicate higher resource grades and larger
quantities than expected. Development of the GMG Ore Body will continue
throughout the remaining part of this year and into early 2022.



Van 4 Mine Permitting Status





A prior owner of the Van 4 mine had been granted a first Temporary Cessation
from reclamation of the mine by the Colorado Mined Land Reclamation Board
("MLRB") which was set to expire June 23, 2017. Prior to its expiration, PRM
formally requested an extension through a second Temporary Cessation. PRM
subsequently participated in a public process which culminated in a hearing on
July 26, 2017. Prior to the hearing, three non-profit organizations who pursue
environmental and conservation objectives filed a brief objecting to the
extension. The MLRB board members voted to grant a second five-year Temporary
Cessation for the Van 4 mine. Thereafter, the three objecting parties filed a
lawsuit on September 18, 2017. The MLRB was named as the defendant and PRM was
named as a party to the case due to the Colorado law requirement that any
lawsuit filed after a hearing must include all of the parties in the proceeding.
The plaintiff organizations are seeking for the court to set aside the board
order granting a second five-year Temporary Cessation period to PRM for the Van
4 mine. The Colorado state Attorney General was defending this action in the
Denver Colorado District Court. On May 8, 2018, the Denver Colorado District
Court ruled in favor, whereby the additional five-year Temporary Cessation
period was granted. The Plaintiffs appealed this ruling to the Colorado Court of
Appeals, and on July 25, 2019, the ruling was reversed, ruling that the
additional five-year Temporary Cessation period should not have been granted.



The MLRB and the Colorado Attorney General advised Western that it will not make
an additional appeal of the ruling. Further, the time period for an appeal has
passed. The judge has subsequently issued an instruction for the MLRB to issue
an order revoking the permit and putting the Van 4 mine into reclamation. On
January 22, 2020, the MLRB held a hearing, and on March 2, 2020, the MLRB issued
an order vacating the Van 4 Temporary Cessation, revoking the permit, and
ordering commencement of final reclamation, which must be completed within five
years. The Company commenced reclamation of the Van 4 mine, but progress has
been delayed both by COVID-19 restrictions and countywide fire and open flame
restrictions. The reclamation cost is fully covered by the reclamation bonds
posted upon acquisition of the property. The Van 4 reclamation is ongoing.




                                       19




Uranium Section 232 Investigation/Nuclear Fuel Working Group Process





An investigation under Section 232 of the Trade Expansion Act of 1962 was
undertaken by the U.S Department of Commerce ("DoC") in 2018 to assess the
impact to national security of the importation of the vast majority of uranium
utilized by the approximately 100 operative civilian nuclear reactors within the
United States. In response to the Section 232 report, the White House
disseminated a Presidential Memoranda in July 2019. At that time, President
Trump formed the Nuclear Fuel Working Group ("NFWG") to find solutions for
reviving and expanding domestic nuclear fuel production and reinvigorating
recommendations.



In April 2020, the U.S. Department of Energy ("DoE") released the NFWG report
entitled "Restoring America's Competitive Nuclear Energy Advantage - A strategy
to assure U.S. national security." The report outlines a strategy for the
reestablishment of critical capabilities and direct support to the front end of
the U.S. domestic nuclear fuel cycle. The NFWG findings and recommendations
presented are a positive outcome for U.S. uranium miners; however, the ultimate
outcome and timing remains uncertain as the continuing process requires
approvals and budget appropriation from Congress and implementation by U.S.
government agencies.



This remains an ongoing process where a number of bills were introduced in both
the U.S. Senate and House to implement the key provisions of the NFWG report's
recommendations. In November 2020, after the U.S. election, the Senate Committee
on Appropriations released its funding measures and allocations recommending the
creation and funding of the American Uranium Reserve. In October 2020, the DoC
extended the Russian Suspension Agreement for an additional 20 years until 2040.
Existing categories of quotas on imports of Russian uranium into the U.S. were
reduced by a graduated scale, and additional provisions were modified to
eliminate loopholes. An extension of this agreement was among the NFWG's
recommendations. In further implementation of the report's recommendations, the
DoE made multiple investment awards to companies advancing new nuclear
technologies. TerraPower and X-energy received awards to build demonstration
models of their advanced reactor designs, and NuScale received support to deploy
the first U.S. small modular reactor ("SMR") plan comprised of 12 modules at the
Idaho National Laboratory. The International Development Finance Corp. signed a
letter of intent to finance NuScale's development of 42 SMR modules in South
Africa. In an acknowledgement of the future growth potential of new nuclear
technologies, the U.S. government has increased its industry support to a level
not seen in decades. This is being done to level the playing field versus
state-sponsored foreign entities. In December 2020, U.S. Congress passed the
"COVID-Relief and Omnibus Spending Bill," which included $75 million for the
establishment of a strategic U.S. Uranium Reserve. The Biden-Harris
Administration has rolled the 2021 funding into its 2022 fiscal year budget to
continue this initiative. The DoE continues to work on establishing the
parameters of the program and in August 2021, the DoE put out a Request for
Information (RFI) to obtain additional comments related to the establishment of
the DOE's Uranium Reserve program. On October 13, 2021, Western submitted a
response to the Request for Information: Establishment of the Uranium Reserve
Program to the DOE's National Nuclear Security Administration



Also, recent follow through includes the July 2021 public release of the uranium
Section 232 report which the DoC presented to President Trump in April 2019. The
report concluded that uranium imports were "weakening our internal economy" and
"threaten to impair the national security" and recommended immediate actions to
"enable U.S. producers to recapture and sustain a market share of U.S. uranium
consumption". These actions were not taken in favor of the NFWG process.



Vanadium Section 232 Investigation


In the United States, a petition for an investigation under Section 232 of the
Trade Expansion Act of 1962 was requested by two domestic companies in November
2019. In June of 2020, the U.S. Secretary of Commerce, Wilbur Ross, initiated an
investigation into whether the present quantities or circumstances of vanadium
imports into the United States threaten to impair the national security. The
initiation of this investigation created a 270-day window, which lasted until
February 2021, to compile and deliver a report to the President of the United
States. The Section 232 National Security Investigation of Imports of Vanadium
was concluded, and a report was submitted to President Biden in February 2021.In
July 2021, the report was made public. It concluded that vanadium imports "do
not threaten to impair the national security as defined in Section 232," but
identified and recommended "several actions that would help to ensure reliable
domestic sources of vanadium and lessen the potential for imports to threaten
national security." No action has been taken on these recommendations.



                                       20




Biden-Harris Administration Initiatives





The positive momentum has continued for the nuclear and uranium mining sector
due to the Biden-Harris Administration's emphasis on climate change. The "Plan
to Build a Modern Sustainable Infrastructure and an Equitable Clean Energy
Future" emphasizes climate change solutions. Upon taking office, the Biden team
immediately rejoined the Paris Agreement and continued its pursuit of campaign
promises of investments in clean energy, creating jobs, producing clean electric
power, and achieving carbon-pollution free energy in electricity generation by
2035. Since taking office, President Biden has given all agencies climate change
initiatives and has started a climate change working group. The existing U.S.
nuclear reactor fleet currently produces in excess of 50% of U.S. clean energy,
and new, advanced nuclear technologies promise to generate additional clean
energy. A White House national climate advisor told the media in a press
briefing that the Biden-Harris Administration intends to seek a national clean
energy standard that includes nuclear energy. The Company believes that nuclear
energy will be increasingly able to compete on a level playing field with
renewable energy technologies.



There has been legislative advancement of implementation mechanisms including
tax credits, subsidies, and/or U.S. utilities being required to produce an
increasing proportion of electricity generation from clean energy power sources.
President Biden's Build Back Better agenda has several components supportive of
nuclear power generation. Already signed into law is the $1.2 trillion
Infrastructure Investment and Jobs Act that provides the United States
Department of Energy funding to prevent the premature retirement of existing
nuclear plants and invest in advanced nuclear projects. The separate $1.7
trillion Build Back Better Reconciliation Legislation, which is making its way
through the U.S. Congress, further addresses climate change through the
inclusion of a zero-emission nuclear power production credit. If passed in its
current form, beginning in 2022 qualified nuclear power facilities would be
eligible to receive a base credit and a bonus credit if certain requirements are
met.



President Biden attended the United Nations Climate Change Conference (COP26) in
Glasgow, Scotland. His administration simultaneously released a proposed plan
targeting the reduction of methane emissions. Many of the proposed initiatives
from the Climate Summit target reduced utilization of fossil fuels and if
implemented expand future opportunities for nuclear power generation, given its
ability to provide baseload and carbon-free energy. To conclude the COP2, in a
surprise announcement, the U.S. and China pledged to work together to slow
global warming. This is significant because the U.S. and China represent the two
countries with the largest CO2 emissions. They jointly pledged to take "enhanced
climate actions" to meet the 2015 Paris Agreement temperature goal of limiting
global warming to less than 1.5C.



Strategic Acquisition of Physical Uranium





On June 2, 2021, the Company executed a binding agreement to purchase 125,000
pounds of natural uranium concentrate at the market price, in which the Company
plans to take delivery on or before June 2022.



Sprott Physical Uranium Trust



The Sprott Physical Uranium Trust (U.UN) (the "Trust") took over the former
Uranium Participation Corp. (U.TO) and launched an at-the-market program (ATM)
on August 17, 2021 to raise capital for the closed-ended trust. In the three
month period, since the inception of the ATM program, the Trust has bought about
21 million pounds of uranium and spot prices have increased from a low of $30 to
a peak of $51 before declining to $47 at the end of this period. Notably, the
Trust's activities have increased price discovery in the spot uranium markets
and have removed inventory from the market.



COVID-19



During 2020 and continuing into 2021, the world has been, and continues to be,
impacted by the COVID-19 pandemic. COVID-19, and measures to prevent its spread,
impacted our business in a number of ways. The impact of these disruptions and
the extent of their adverse impact on the Company's financial and operating
results will be dictated by the length of time that such disruptions continue,
which will, in turn, depend on the currently unpredictable duration and severity
of the impacts of COVID-19, and among other things, the impact of governmental
actions imposed in response to COVID-19 and individuals' and companies' risk
tolerance regarding health matters going forward and developing strain
mutations. To date, COVID-19 has primarily caused Western delays in reporting,
regulatory matters, and operations. Most notably, the Company initiated a
request for Temporary Cessation status for the Sunday Mine Complex in August
2020 as the mines had not been restarted within the 180-day window due to the
direct and indirect impacts of the COVID-19 pandemic. The Van 4 mine reclamation
process was also delayed because of the COVID-19 pandemic. The Company is
monitoring COVID-19's potential impact on the Company's operations.



                                       21





Results of Operations



                                             For the Three Months Ended          For the Nine Months Ended
                                                    September 30,                      September 30,
                                                2021               2020            2021              2020
Revenue
Lease revenue                              $       16,155       $   11,155     $      48,465     $     33,465

Expenses
Mining expenditures                               335,028           53,166           422,921          345,637
Professional fees                                 136,174           67,356           287,042          252,533

General and administrative                        361,301          241,300           835,281          911,080
Consulting fees                                    12,801           10,846            16,810           47,668
Total operating expenses                          845,304          372,668 

       1,562,054        1,556,918

Operating loss                                   (829,149 )       (361,513 )      (1,513,589 )     (1,523,453 )

Interest expense, net                               1,344            4,920             4,687           10,621
Settlement expense                                      -                -            78,441                -

Warrant modification expense                            -                - 

               -          639,012

Net loss                                   $     (830,493 )     $ (366,433 )      (1,596,717 )     (2,173,086 )

Other Comprehensive income (expense)
Foreign exchange gain (loss)                      (46,363 )         14,705 

          23,531         (101,096 )

Comprehensive loss                         $     (876,856 )     $ (351,728 )      (1,573,186 )     (2,274,182 )

Net loss per share - basic and diluted $ (0.02 ) $ (0.01 ) $ (0.04 ) $ (0.07 )

Three Months Ended September 30, 2021 as Compared to the Three Months Ended September 30, 2020





Summary:



Our condensed consolidated net loss for the three months ended September 30,
2021 and 2020 was $830,493 and $366,433 for ($0.02) and ($0.01) per share,
respectively. The principal components of these quarter over quarter changes are
discussed below.


Our comprehensive loss for the three months ended September 30, 2021 and 2020 was $876,856 and $351,728, respectively.





Revenue



Our revenue for the three months ended September 30, 2021 and 2020 was $16,155
and $11,155, respectively. This revenue resulted from lease revenue pursuant to
a July 18, 2017 oil and gas lease agreement, which was extended for an
additional three years in 2020 at a 150% increased rate. The February 2, 2018
pipeline easement, with the initial operator has terminated resulting in a
decrease in this portion of revenue. The July 1, 2018 right-of-way agreement
with the new operator was consistent between periods. The aforementioned revenue
streams are derived from the Weld County oil and gas property.



Mining Expenditures



Mining expenditures for the three months ended September 30, 2021 were $335,028
as compared to $53,166 for the three months ended September 30, 2020. The
increase in mining expenditures of $281,862, or 530% was principally
attributable to mining expenditures related to resumption of mining operations
at the Company's Sunday Mine Complex during the third quarter of 2021.



                                       22





Professional Fees



Professional fees for the three months ended September 30, 2021 were $136,174 as
compared to $67,356 for the three months ended September 30, 2020. The increase
in professional fees of $68,818, or 102% is primarily attributable to a $68,014
increase in legal fees.



General and Administrative



General and administrative expenses for the three months ended September 30,
2021 were $361,301 as compared to $241,300 for the three months ended September
30, 2020. The increase in general and administrative expense of $120,001, or 50%
is principally due to a $76,174 increase in payroll expenses and an $18,561
increase in utilities in connection with the Sunday Mine Complex project.



Consulting Fees



Consulting fees for the three months ended September 30, 2021 were $12,801 as
compared to $10,846 for the three months ended September 30, 2020. The increase
in consulting fees of $1,955 or 18% was principally due to the Company's
increased utilization of consultants during the current period.



Interest Expense, net



Interest expense, net, for the three months ended September 30, 2021 was $1,344
as compared to $4,920 for the three months ended September 30, 2020. The
decrease of interest expense, net, of $3,576 was due to the forgiveness of the
Company's Paycheck Protection Program loan during 2020.



Foreign Exchange



Foreign exchange gain (loss) for the three months ended September 30, 2021 was
$(46,363) as compared to $14,705 for the three months ended September 30, 2020.
The increase of the foreign exchange loss is primarily due to holding cash
balances in Canadian Dollars and the translation gain from using United Stated
Dollars as the reporting currency.



Nine Months Ended September 30, 2021 as Compared to the Nine Months Ended September 30, 2020





Summary:



Our condensed consolidated net loss for the nine months ended September 30, 2021
and 2020 was $1,596,717 and $2,173,086 or ($0.04) and ($0.07) per share,
respectively. The principal components of these quarter over quarter changes are
discussed below.


Our comprehensive loss for the nine months ended September 30, 2021 and 2020 was $1,573,186 and $2,274,182, respectively.





Revenue



Our revenue for the nine months ended September 30, 2021 and 2020 was $48,465
and $33,465, respectively. This revenue resulted from lease revenue pursuant to
a July 18, 2017 oil and gas lease agreement, which was extended for an
additional three years in 2020 at a 150% increased rate. The February 2, 2018
pipeline easement, with the initial operator has terminated resulting in a
decrease in this portion of revenue. The July 1, 2018 right-of-way agreement
with the new operator was consistent between periods. The aforementioned revenue
streams are derived from the Weld County oil and gas property.



Mining Expenditures



Mining expenditures for the nine months ended September 30, 2021 were $422,921
as compared to $345,637 for the nine months ended September 30, 2020. The
increase in mining expenditures of $77,284 or 22% was principally attributable
to mining expenditures related the resumption of mining operations at the
Company's Sunday Mine Complex during the third quarter of 2021.



                                       23





Professional Fees



Professional fees for the nine months ended September 30, 2021 were $287,042 as
compared to $252,533 for the nine months ended September 30, 2020. The increase
in professional fees of $34,509, or 14% was due to a $49,823 increase in legal
fees offset by an $11,764 reduction in investor relations costs.



General and Administrative



General and administrative expenses for the nine months ended September 30, 2021
were $835,281 as compared to $911,080 for the nine months ended September 30,
2020. The decrease in general and administrative expense of $75,799, or 8% is
due to a $208,059 decrease in stock-based compensation expense offset by an
increase of $106,688 in payroll expenses and an increase of $21,331 in utilities
expenses in connection with the Sunday Mine Complex project.



Consulting Fees



Consulting fees for the nine months ended September 30, 2021 were $16,810 as
compared to $47,668 for the nine months ended September 30, 2020. The decrease
in consulting fees was principally due to the Company's reduced utilization of
consultants during the current period.



Interest Expense, net


Interest expense, net, for the nine months ended September 30, 2021 was $4,687 as compared to $10,621 for the nine months ended September 30, 2020. The decrease of interest expense, net, of $5,934 was principally due to the forgiveness of the Company's Paycheck Protection Program (PPP) loan.





Foreign Exchange



Foreign exchange gain (loss) for the nine months ended September 30, 2021 was
$23,531 as compared to ($101,096) for the nine months ended September 30, 2020.
The increase of the foreign exchange gain is primarily due to holding cash
balances in Canadian Dollars and the translation gain from using United Stated
Dollars as the reporting currency.



Liquidity and Capital Resources





The Company's cash balance as of September 30, 2021 was $4,445,103. The
Company's cash position is highly dependent on its ability to raise capital
through the issuance of debt and equity and its management of expenditures for
mining development and for fulfillment of its public company reporting
responsibilities. Management believes that in order to finance the development
of the mining properties and Kinetic Separation, the Company will be required to
raise additional capital by way of debt and/or equity. The Company could
potentially require additional capital if the scope of the Sunday Mine Complex
expands. This outlook is based on the Company's current financial position and
is subject to change if opportunities become available based on current
exploration program results and/or external opportunities.



Net cash used in operating activities





Net cash used in operating activities was $1,576,627 for the nine months ended
September 30, 2021, as compared with $1,236,238 for the nine months ended
September 30, 2020. Of the $1,576,627 in net cash used in operating activities
for the nine months ended September 2021, $1,596,717 is derived from our net
loss before non-cash adjustments. This was offset by non-cash adjustments of
$8,564 in depreciation, $5,983 for accretion of our reclamation liability, and
$542 in unrealized loss on our marketable securities. Changes in our operating
assets and liabilities for the period include an increase of $80,454 in prepaid
expenses and other current assets, an increase of $133,920 in accounts payable
and accrued expenses, and a decrease of $48,465 in deferred revenue.



                                       24




Net cash used in investing activities


Net cash used in investing activities was $65,000 for the nine months ended
September 30, 2021, as compared with $0 for the nine months ended September 30,
2020. This capital expenditure relates to purchasing property and equipment

for
our mining operations.


Net cash provided by financing activities





Net cash provided by financing activities for the nine months ended September
30, 2021 and 2020 were $5,519,337 and $73,116, respectively. The Company
completed two private placements during the first quarter of 2021 representing
aggregate net proceeds of $3,869,306 and received $1,650,031 from the exercise
of warrants during the nine months ended September 30, 2021.



Reclamation Liability



The Company's mines are subject to certain asset retirement obligations, which
the Company has recorded as reclamation liabilities. The reclamation liabilities
of the United States mines are subject to legal and regulatory requirements, and
estimates of the costs of reclamation are reviewed periodically by the
applicable regulatory authorities. The reclamation liability represents the
Company's best estimate of the present value of future reclamation costs in
connection with the mineral properties. The Company determined the gross
reclamation liabilities of the mineral properties as of September 30, 2021 and
December 31, 2020, to be approximately $896,833 and $906,811, respectively. On
March 2, 2020, the Colorado Mined Land Reclamation Board ("MLRB") issued an
order vacating the Van 4 Temporary Cessation, terminating mining operations and
ordering commencement of final reclamation. The Company has begun the
reclamation of the Van 4 mine. The reclamation cost is fully covered by the
reclamation bonds posted upon acquisition of the property. The Company adjusted
the fair value of its reclamation obligation for the Van 4 mine. The portion of
the reclamation liability related to the Van 4 mine and its related restricted
cash are included in current liabilities and current assets, respectively, at a
value of $75,057. The Company expects to begin incurring the reclamation
liability after 2054 for all mines that are not in reclamation and accordingly,
has discounted the gross liabilities over their remaining lives using a discount
rate of 5.4%. The net discounted aggregated values as of September 30, 2021 and
December 31, 2020 were $315,923 and $309,940, respectively. The gross
reclamation liabilities as of September 30, 2021 and December 31, 2020 are
secured by financial warranties in the amount of $896,833 and $906,811,
respectively.



During the first quarter 2021, the Company received notice that its Ferris Haggerty property was no longer considered to be subject to reclamation treatment. The Company recorded a discontinuation of the Ferris Haggerty property's present value of $2,669 during the first quarter 2021. On April 29, 2021, the Company removed the portion of the restricted cash related to the Ferris Haggerty property into its cash account for a total of $10,000.





Related Party Transactions


The Company has transacted with related parties pursuant to service arrangements in the ordinary course of business, as follows:


Prior to the acquisition of Black Range, Mr. George Glasier, the Company's CEO,
who is also a director ("Seller"), transferred his interest in a former joint
venture with Ablation Technologies, LLC to Black Range. In connection with the
transfer, Black Range issued 25 million shares of Black Range common stock to
Seller and committed to pay AUD $500,000 (USD $360,720 as of September 30, 2021)
to Seller within 60 days of the first commercial application of the kinetic
separation technology. Western assumed this contingent payment obligation in
connection with the acquisition of Black Range. At the date of the acquisition
of Black Range, this contingent obligation was determined to be probable. Since
the deferred contingent consideration obligation is probable and the amount is
estimable, the Company recorded the deferred contingent consideration as an
assumed liability in the amount of $360,720 and $392,086 as of September 30,
2021 and December 31, 2020, respectively.



Going Concern


The Company has incurred continuing losses from its operations and as of September 30, 2021, the Company had an accumulated deficit of $12,684,176 and working capital of $4,004,375.





                                       25





Since inception, the Company has met its liquidity requirements principally
through the issuance of notes and the sale of its common shares. On February 16,
2021, the Company closed on a non-brokered private placement of 3,250,000 units
at a price of CAD $0.80 per unit. The aggregate gross proceeds raised in the
private placement amounted to CAD $2,600,000 (USD $1,950,509 in net proceeds).
On March 1, 2021, the Company closed on a non-brokered private placement of
3,125,000 units at a price of CAD $0.80 per unit. The aggregate gross proceeds
raised in the private placement amounted to CAD $2,500,000 (USD $1,918,797 in
net proceeds). During the nine months ended September 30, 2021, the Company
received $1,650,031 in proceeds from the exercise of warrants.



The Company's ability to continue its operations and to pay its obligations when
they become due is contingent upon the Company obtaining additional financing.
Management's plans include seeking to procure additional funds through debt and
equity financings, securing regulatory approval to fully utilize its Kinetic
Separation, and initiating the processing of ore to generate operating cash
flows.



There are no assurances that the Company will be able to raise capital on terms
acceptable to the Company or at all, or that cash flows generated from its
operations will be sufficient to meet its current operating costs and required
debt service. If the Company is unable to obtain sufficient amounts of
additional capital, it may be required to reduce the scope of its planned
product development, which could harm its financial condition and operating
results, or it may not be able to continue to fund its ongoing operations. These
conditions raise substantial doubt about the Company's ability to continue as a
going concern to sustain operations for at least one year from the issuance of
the accompanying financial statements. The accompanying condensed consolidated
financial statements do not include any adjustments that might result from the
outcome of these uncertainties.



Off Balance Sheet Arrangements

As of September 30, 2021, there were no off-balance sheet transactions. The Company has not entered into any specialized financial agreements to minimize its investment risk, currency risk, or commodity risk.

Critical Accounting Estimates and Policies





The preparation of these condensed consolidated financial statements requires
management to make certain estimates, judgments, and assumptions that affect the
reported amounts of assets and liabilities at the date of the condensed
consolidated financial statements and reported amounts of expenses during the
reporting period.



Significant assumptions about the future and other sources of estimation
uncertainty that management has made at the end of the reporting period that
could result in a material adjustment to the carrying amounts of assets and
liabilities, in the event that actual results differ from assumptions made,
include, but are not limited to, the following: valuation of fair value of
transactions involving common shares, assessment of the useful life and
evaluation for impairment of intangible assets, valuation and impairment
assessments on mineral properties, deferred contingent consideration, the
reclamation liability, valuation of stock-based compensation, valuation of
available-for-sale securities and valuation of long-term debt, HST, and asset
retirement obligations. Other areas requiring estimates include allocations of
expenditures, depletion, and amortization of mineral rights and properties.

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