Mr. Mark Chalmers reports

ENERGY FUELS ANNOUNCES Q2-2023 RESULTS, INCLUDING GROWING WORKING CAPITAL, COMMERCIAL URANIUM AND RARE EARTH SALES, AND CONTINUED PROGRESS ON DEVELOPMENT OF RARE EARTH SEPARATION CAPABILITIES IN UTAH

Energy Fuels Inc. has released its financial results for the quarter ended June 30, 2023. The company's quarterly report on Form 10-Q has been filed with the U.S. Securities and Exchange Commission, and may be viewed on EDGAR, on SEDAR and on the company's website. Unless noted otherwise, all dollar amounts are in U.S. dollars.

Financial highlights:

• As of June 30, 2023, the company had a robust balance sheet with $134.36-million of working capital (versus $116.97-million as of Dec. 31, 2022), including $35.59-million of cash and cash equivalents, $64.12-million of marketable securities, $32.98-million of inventory, and no debt. At current commodity prices, the company's product inventory has a value of approximately $50.51-million.
• During the three months ended June 30, 2023, the company incurred a net loss of $4.89-million, or three cents per share, which included: (i) the sale of 80,000 pounds of uranium (U3O8) to a major U.S. nuclear utility for $4.34-million, resulting in a gross profit of $2.00-million (46 per cent); (ii) the sale of 127 metric tonnes (Mt) of rare earth element carbonate for $2.27-million; (iii) a gain of $2.75-million on the sale of its prompt fission neutron (PFN) assets; (iv) a non-cash mark-to-market gain on investments accounted for at fair value of $770,000; (v) interest income of $1.74-million; (vi) increased expenses associated with preparing four of its uranium mines for production; and (vii) expenses associated with developing commercial rare earth element (REE) separation capabilities.
• As of June 30, 2023, the company held 766,000 pounds of finished U3O8, 906,000 pounds of finished V2O5 and 37 Mt of finished high-purity, partially separated mixed REE carbonate in inventory.
• The company holds an additional 403,000 pounds of U3O8 as raw materials and work-in-progress inventory, along with one million to three million pounds of solubilized V2O5 in tailings solutions that could be recovered in the future.

Uranium highlights:

• During Q2 2023, the company completed the sale of 80,000 pounds of U3O8 to a major U.S. nuclear utility for $4.34-million, or $54.19 per pound, which resulted in a gross profit of $2.00-million or $24.97 per pound of U3O8. This sale resulted in a gross margin of 46 per cent per pound of uranium. This was the company's first delivery under its new portfolio of long-term uranium sales agreements.
• So far in 2023, the company has sold a total of 380,000 pounds of uranium for a weighted-average realized price of $60.01 per pound resulting in a gross margin of 56 per cent.
• During 2023, the company expects to sell an additional 180,000 pounds of U3O8 into its current portfolio of supply agreements with U.S. nuclear utilities at an expected sales price of approximately $54 to $58 per pound (depending on inflation and spot price activity), resulting in an estimated 46-per-cent to 50-per-cent gross margin.
• Over the past several months, the company has made significant progress in preparing four of its conventional uranium and uranium/vanadium mines to be ready to resume ore production, including significant work force expansion and performing needed rehabilitation and development of surface and underground infrastructure.
• On May 3, 2023, the company completed the sale of its PFN in situ uranium assaying tool assets, including the underlying contracts, technology, licences and intellectual property, to enCore Energy in exchange for cash consideration received at closing of $3.10-million. At closing, the PFN assets, which the company had purchased in 2020 for cash consideration of $500,000, had a net book value of $350,000. The PFN assets were used exclusively at the Alta Mesa in situ recovery project and are not required for any of the company's other properties. Should the company have the need for the use of a PFN tool in the future, the company retained a 20-year usage right, subject to the availability of the PFN assets, to purchase, lease and/or license at least one PFN tool and all related and/or required equipment, technology and licences on commercially reasonable terms.
• As of July 28, 2023, the spot price of U3O8 was $56.20 per pound according to data from TradeTech.

Rare earth element highlights:

• During the three months ended June 30, 2023, the company produced approximately 99 Mt of high-purity, partially separated mixed REE carbonate from monazite, containing approximately 44 Mt of total rare earth oxides (TREO), which continues to be the most advanced REE material being produced commercially in the United States today.
• In early 2023, the company began modifying and enhancing its existing solvent extraction (SX) circuits at the mill to be able to produce separated REE oxides (phase 1). The company has begun this development work in its SX building and ordered most of the major components for this project, which are expected to be delivered to the mill in third quarter 2023.
• Phase 1 is expected to be completed and fully commissioned by late 2023 or early 2024 and have the capacity to produce roughly 800 to 1,000 Mt of recoverable separated neodymium-praseodymium (NdPr) oxide per year, subject to securing sufficient monazite feed. Phase 1 is expected to position Energy Fuels as one of the world's leading producers of NdPr outside of China.
• Phase 1 capital costs are expected to total approximately $25-million. One thousand Mt of NdPr in permanent magnets could power up to one million electric vehicles (EVs) per year.
• The company is engineering further enhancements at the mill to increase NdPr production capacity to up to approximately 3,000 Mt per year by 2026 (phase 2) and to produce separated dysprosium (Dy), terbium (Tb) and potentially other advanced REE materials in the future from monazite and potentially other REE process streams by 2027 (phase 3).
• During the first half of 2023, the company completed 2,266 metres of sonic drilling at its Bahia project in Brazil to confirm and further delineate the rare earth, titanium and zirconium mineralization. The company expects to commence further sonic drilling in Q3 2023, announce drilling results later this year, and commence preparation of an SK-1300- and National Instrument 43-101-compliant mineral resource estimate.
• The company continues active discussions with several additional suppliers of natural monazite around the world to significantly increase the supply of feed for its growing REE initiative.
• As of July 28, 2023, the spot price of NdPr oxide was approximately $65.42 per kilogram according to data from Asian Metal.

Vanadium highlights:

• During the three months ended June 30, 2023, the company sold no vanadium.
• The company produces high-purity V2O5 from time to time when the mill schedule allows and carries that material in inventory for sale into market strength, including during first quarter 2023, when the company sold approximately 79,344 pounds of V2O5 for an average realized sales price of $10.98 per pound.
• The company currently holds approximately 906,000 pounds of V2O5 in inventory.
• As of July 28, 2023, the spot price of V2O5 was $8.23 per pound according to data from Fastmarkets.

Medical isotope highlights:

• The company continued advancing its program to evaluate the potential to recover radioisotopes from its process streams for use in emerging targeted alpha therapy (TAT) cancer therapeutics.

Mark S. Chalmers, Energy Fuels' president and chief executive officer, stated: "Energy Fuels continued to make excellent progress on all aspects of our core uranium and rare earth businesses during Q2 2023.

"We completed the sale of 80,000 pounds of uranium to one of our utility customers under one of our long-term contracts. We expect to make another sale of 180,000 pounds of uranium under another long-term contract later this year. Depending on inflation and spot price activity, we expect that sale to be at a price of $54 to $58 per pound. We also continued preparing four of our conventional uranium mines for production, and we expect at least one to be ready to commercially produce uranium ore later this year.

"Energy Fuels also remains on schedule to complete phase 1 of our rare earth project at the White Mesa mill in Utah, which involves modifications and enhancements to the mill's existing SX building that are expected to have the capacity to produce approximately 800 to 1,000 metric tonnes of separated NdPr oxide per annum. We are also refurbishing the mill's existing SX building as part of this process, and we have completed the installation of a new roof and new concrete pads for the SX cells, tanks, pumps and other equipment. We also received the first new SX cells, which has allowed us to perform tests to confirm and optimize the physical characteristics of the separations. We expect to receive and install the remainder of the new SX cells and other equipment in Q3. Upon successful ramp-up of the modified SX circuit and receipt of sufficient monazite feed, Energy Fuels is expected to be the first U.S. company in many years with the ability to produce commercial quantities of NdPr oxide, which is a key ingredient in powerful permanent rare earth magnets used in electric vehicles, wind generators and other technologies.

"Later this year, we expect to begin pilot work on heavy rare earth separation, including the production of separated dysprosium and terbium oxides. At the same time, we continue to move our Bahia rare earth project in Brazil forward toward production and to secure additional sources of monazite supply to process at the mill for rare earth production.

"To say Energy Fuels continues to make rapid and extraordinary progress on creating a critical mineral hub in Utah to help the United States reshore critical mineral capabilities required for many advanced clean energy, defence and other technologies is truly an understatement."

Conference call and webcast at 4 p.m. ET on Aug. 7, 2023

Energy Fuels will be hosting a conference call and webcast on Aug. 7, 2023, at 4 p.m. ET (2 p.m. MT), to discuss its Q2 2023 financial results, the outlook for the rest of 2023, and its uranium, rare earth, vanadium and medical isotope initiatives.

To instantly join the conference call by phone, please register your name and phone number. After registering, you will receive a call immediately and be placed into the conference call.

Alternatively, you may dial in to the conference call by calling 1-888-664-6392, and you will be connected to the call by an operator.

You may also view viewer-controlled webcast slides and/or stream the call.

A replay of the call will be available until Aug. 21, 2023, by calling 888-390-0541 or 416-764-8677 and entering the replay code 682077 followed by the number sign.

About Energy Fuels Inc.

Energy Fuels is a leading United States-based critical mineral company. The company, as the leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colo., near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America's key uranium production centres: the White Mesa mill in Utah and the Nichols Ranch in situ recovery project in Wyoming. The White Mesa mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over eight million pounds of U3O8 per year and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR project is on standby and has a licensed capacity of two million pounds of U3O8 per year. The company recently acquired the Bahia project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest National Instrument 43-101-compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol UUUU, and the company's common shares are also listed on the Toronto Stock Exchange under the trading symbol EFR.

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