Mr. Stephen Antony reports

ENERGY FUELS AGREES TO SELL ITS INTEREST IN BAYSWATER URANIUM TO MEGA URANIUM

Energy Fuels Inc. has entered into a securities purchase agreement to sell all of its shares of Bayswater Uranium Corp. to Mega Uranium Ltd. in exchange for 1.75 million newly issued common shares of Mega. Energy Fuels acquired 2,759,807 shares of Bayswater as part of its Aug. 30, 2013, acquisition of Strathmore Minerals Corp. The 2,759,807 shares represent approximately 11.5 per cent of the issued and outstanding shares of Bayswater. The transaction is expected to be completed on or before Jan. 17, 2014, or such other date as the parties may agree, and is subject to various conditions including acceptance by the Toronto Stock Exchange. The shares of Mega being acquired by Energy Fuels will be issued on a private placement basis and are subject to a statutory four-month holding period.

Stephen P. Antony, president and chief executive officer of Energy Fuels, stated: "Energy Fuels and Mega have an established relationship, and Energy Fuels is already a shareholder of Mega through a previous non-core asset sale. Mega's market capitalization is currently significantly lower than the Toro Energy Ltd. common shares it received as consideration for its sale of the Maitland Lake uranium project, which closed on Nov. 19, 2013. Mega also owns other investments, including about 17 per cent of the currently outstanding shares of NexGen Energy Ltd. Energy Fuels is pleased to increase its investment in Mega at this time."

We seek Safe Harbor.