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Corpus Christi, TX, November 9, 2021– Uranium Energy Corp. (NYSE American: UEC, the “Company” or “UEC”) is pleased to announce the Company has entered into a definitive share purchase agreement with Uranium One Investments Inc., a subsidiary of Uranium One Inc. (“Uranium One”), to acquire all the issued and outstanding shares of Uranium One Americas, Inc. (“U1A”) for a total purchase price comprised of $112 million in cash and the replacement (with corresponding payments to the seller) of $19 million in reclamation bonding (the “Acquisition”).

Uranium One is the world’s fourth largest uranium producer and part of Russia’s State Atomic Energy Corporation, Rosatom.

The Acquisition is fully funded with UEC’s existing balance sheet, which as of October 26, 2021 had over $235 million of cash and market value liquid assets.

The U1A assets are primarily situated in the Powder River Basin of Wyoming; the most productive in-situ recovery (“ISR”) uranium mining district in the western hemisphere.

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Highlights of the Acquisition include the following:

• Positions UEC, a U.S. corporation headquartered in Texas, as the largest American uranium mining company, amid a new era of domestic and global support for clean-air nuclear energy as essential to the realization of a low-carbon global economy;

• Creates Wyoming hub-and-spoke operations for UEC, anchored by U1A’s Irigaray plant which is one of the largest central processing facilities in the United States with a licensed capacity of 2.5 million pounds U₃O₈per year;

• Incorporates U1A’s production-ready assets including Christensen Ranch ISR Project with four fully installed wellfields, and six additional permitted or development-stage satellite ISR projects, combining with UEC’s Reno Creek Project;

• Anticipates significant capital expenditure savings and deep operating synergies with UEC’s permitted and nearby Reno Creek ISR Project which is 45 miles away from the Irigaray plant;

• Secures approximately 37.6 million pounds U₃O₈in historically estimated Measured and Indicated Resources and 4.3 million pounds U₃O₈in historically estimated Inferred resources with considerable growth potential based on independent technical reports prepared for U1A.  These historical resources are not treated by UEC as current and the Company plans to complete and report current resources post-closing of the Transaction;⁽¹⁾

• Adds a dominant land package of approximately 100,000 acres in Wyoming’s prolific uranium producing Powder River and Great Divide Basins consisting of dozens of under-explored, mineralized brownfield projects, backed by detailed databases of historic uranium exploration and development programs, thus greatly enhancing the potential for resource expansion; and

• Provides for significant tax loss carryforwards to be applied to offset future income.⁽²⁾

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Management comments

“We are very pleased that after a comprehensive and competitive bidding process, Uranium One elected to work with UEC to undertake the successful sale of their substantial uranium assets in the United States. 

“This is a highly accretive transaction for UEC and represents great value to our shareholders. The purchase price is equal to only 12% of our current enterprise value, yet the acquisition doubles the size of our production capacity in three key categories: total number of permitted U.S. ISR projects, resources, and processing infrastructure. 

“The opportunity to acquire an advanced asset base of this quality from one of the global leaders in the nuclear energy sector is highly rare in the uranium sector anywhere in the world, let alone in our own home jurisdiction of the United States.

“Additionally, we expect significant savings related to the development of our nearby Reno Creek ISR Project.  We also anticipate long-lasting operational synergies and cost efficiencies in our newly formed Wyoming hub-and-spoke operations.

“The U1A Irigaray Central Processing Plant will be able to process our fully licensed Reno Creek ISR project, in addition to the fully permitted Moore Ranch, Ludeman and Christensen Ranch projects in the U1A portfolio purchased in this transaction.”

“The assets in this transaction are some of the lowest cost U.S. projects along with fast restart capabilities in the most productive region of the western hemisphere for in-situ recovery of uranium, Wyoming’s Powder River basin. 

“With this Acquisition, our U.S. ISR production profile increases to 6.5 million pounds U3O8 per year based on licensed and installed capacity of our Wyoming and South Texas hub-and-spoke operations.

“Combined with our physical uranium holdings of 4.1 million pounds of U.S. warehoused uranium, we now have the unparalleled ability to provide reliable domestic supply to the U.S. Uranium Reserve as well as re-emerging demand from American and global nuclear utilities.”

Amir Adnani, President and CEO, UEC

“This is a very proud day for Uranium Energy Corp. to have reached a successful transaction with Uranium One.

“We have been working for a considerable time to acquire this important portfolio and it is rewarding for our Company to see it come to fruition.

“We believe this achievement will accelerate and strengthen the development of domestic uranium production that can supply U.S. origin uranium for a full range of America’s uranium requirements.”

UEC Chairman and former U.S. Energy Secretary, Spencer Abraham

“We are also pleased to share news of the signing of a definitive agreement by which UEC will acquire our U.S. assets.  This transaction will provide a material return for Uranium One’s owners and shareholders in the process.”

Alexander Fedotov, Uranium One Chairman, and President of U1A

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Closing of the Acquisition is subject to certain regulatory approvals.

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