Uranium Energy Corp. (UEC) recently acquired all of the issued and outstanding shares of Uranium One Americas (U1A), Inc. for a total purchase price of $112 million in cash together with an additional $2.9 million in estimated working capital (primarily pre-paid insurance and land payments) and the assumption of $19 million in reclamation bonding. Uranium One is the world’s fourth-largest uranium producer and part of Russia’s State Atomic Energy Corporation, Rosatom.

UEC fully funded the acquisition with existing cash on hand. Subsequent to closing, UEC holds approximately $120 million of cash and liquid assets.

The U1A portfolio of projects being acquired includes, among other assets, seven projects in the Powder River Basin, three of which are fully permitted, and five in the Great Divide Basin. The portfolio consists 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.

We are very pleased to have closed this highly accretive transaction for UEC. The acquisition doubles our production capacity in three key categories: total number of permitted US ISR [in-situ recovery] projects, resources, and processing infrastructure. Also, the opportunity to have acquired an advanced asset base of this quality from one of the global leaders in the nuclear energy industry is highly unique.

With this acquisition, UEC’s sector-leading US ISR production profile increases to 6.5 million pounds U₃O₈ per year based on permitted 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 US-warehoused uranium, we now have the unparalleled ability to provide reliable domestic supply to the US Government as well as nuclear utilities while providing our shareholders exposure to the fastest growing, 100% unhedged and pure-play uranium business listed on the NYSE American.

—Amir Adnani, President and CEO

ISR is injected-solution mining that reverses the natural process that deposited the uranium in the sandstones. On-site ground water is fortified with gaseous oxygen and introduced to the uranium ore body through a pattern of injection wells. The solution dissolves the uranium from the sandstone host.

The uranium-bearing solution is brought back to surface through production wells where the uranium is concentrated on resin beads for trucking to the company’s Hobson Processing Plant to be concentrated further and dried into yellowcake for market. This pattern of injection and recovery wells, plus surrounding monitor wells that serve as a safeguard, is called a wellfield.

The U1A assets are primarily situated in the Powder River Basin of Wyoming; the most productive in-situ recovery uranium mining district in the western hemisphere. Other highlights of the acquisition include the following:

• Largest US uranium mining company. Positions UEC, a US corporation headquartered in Texas, as the largest American uranium mining company.

• Wyoming Hub and Spoke. 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 U₃O₈ per year.

• Production Ready. 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.

• Reno Creek Synergies. 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.

• Resource Expansion. Secured approximately 37.6 million pounds U₃O₈ in historically estimated Measured and Indicated Resources and 4.3 million pounds U₃O₈ in historically estimated Inferred resources with considerable growth potential based on independent technical reports prepared for U1A.

• Dominant Land Package. The acquisition added approximately 100,000 acres to UEC current land package in Wyoming, resulting in the company holding about 118,000 acres in Wyoming’s prolific uranium producing Power River and Great Divide Basins.

UEC has outlined several initiatives to integrate the U1A assets into the UEC portfolio. They include:

• The company plans to complete and submit new technical reports on the advanced stage projects in the U1A portfolio as soon as possible for the purposes of establishing current resources as the U1A historical resources are not treated as current by UEC.

• Advance technical studies to further develop the Wyoming hub and spoke strategy to capture the significant capital expenditure savings and operating synergies anticipated with its Reno Creek project.

• The U1A portfolio consists of additional mineralized brownfield projects that UEC intends to develop to generate technical resource reports.

• Perform an operational review on potential expansion of the Irigaray Central Processing Plant.

• In addition to Reno Creek, advance the Moore Ranch and Ludeman ISR projects in Wyoming as production satellite facilities along with the company’s development plans at Burke Hollow in South Texas.

• Review and integrate U1’s significant tax loss carry-forwards to be applied to offset future income.

Uranium Energy Corp is a US-based uranium mining and exploration company that is advancing the next generation of ISR mining uranium projects. In South Texas, the company’s hub-and-spoke operations are anchored by the fully-licensed Hobson Processing Facility which is central to the Palangana, Burke Hollow, Goliad and other ISR pipeline projects.

In Wyoming, UEC controls the Reno Creek project, which is the largest permitted, pre-construction ISR uranium project in the US.