Mr. Mark Chalmers reports

ENERGY FUELS ANNOUNCES 2023 RESULTS: RECORD NET INCOME AND EARNINGS PER SHARE, URANIUM PRODUCTION RAMP-UP, AND NEAR-TERM PRODUCTION OF SEPARATED RARE EARTH ELEMENTS

Energy Fuels Inc. has released its financial results for the year ended Dec. 31, 2023. The company's annual report on Form 10-K 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:

• Record annual net income of nearly $100-million: During the year ended Dec. 31, 2023, the company earned net income of $99.76-million, or 63 cents per common share.
• Robust balance sheet with over $220-million of liquidity and no debt: As of Dec. 31, 2023, the company had $222.34-million of working capital (versus $116.97-million as of Dec. 31, 2022), including $57.45-million of cash and cash equivalents, $133.04-million of marketable securities (uranium stocks and interest-bearing securities), $38.87-million of inventory, and no debt.
• Nearly $45-million of additional liquidity from market value of inventory: At current commodity prices, the company's product inventory has a value of approximately $76.10-million while the balance sheet reflects product inventory carried at cost of $31.16-million.
• Uranium drives revenue: Revenue was composed of: (i) sales of 560,000 pounds of uranium concentrates for $33.28-million, which resulted in a gross profit of $17.96-million and an average gross margin of 54 per cent; (ii) sales of 153 metric tonnes of finished high-purity, partially separated mixed rare earth carbonate for $2.85-million; and (iii) sale of 79,344 pounds of vanadium for $870,000.
• Alta Mesa sale funds investment in uranium and rare earth production: The company realized a gain of $119.26-million on the sale of the company's Alta Mesa in situ recovery project in Texas and prompt fission neutron assets that were used exclusively at Alta Mesa. The cash received from the Alta Mesa sale helped to finance expenses associated with: (i) preparing three of its uranium mines for production; and (ii) developing commercial rare earth element separation capabilities.
• Well stocked to capture market opportunities: As of Dec. 31, 2023, the company held 685,000 pounds of finished U3O8, 905,000 pounds of finished V2O5 and 11 tonnes of finished RE carbonate in inventory. The company holds an additional 436,000 pounds of U3O8 as raw materials and work-in-progress inventory (for total finished, raw material and work-in-progress inventory of 1.12 million pounds of U3O8), along with an estimated one million to three million pounds of solubilized V2O5 in tailings solutions that could be recovered in the future. In December, 2023, the company purchased 100,000 pounds of U3O8 and 480 tonnes of monazite from third parties.

Capitalizing on strong uranium pricing:

• During the year ended Dec. 31, 2023, the company sold 560,000 pounds of U3O8 for $33.28-million or a realized sales price of $59.42 per pound. These sales resulted in a gross profit of $17.96-million ($32.07 per pound of U3O8) or a 54-per-cent gross margin.
• During 2023, the company readied three of its permitted and developed uranium mines for uranium production, Pinyon Plain (Arizona), La Sal (Utah) and Pandora (Utah). In late December, 2023, the company announced that all three uranium mines had commenced production on schedule.
• Once production is fully ramped up at these mines, which is expected by mid- to late 2024, the company expects to be producing uranium at a run rate of 1.1 million to 1.4 million pounds per year.
• During 2024, the company expects to produce approximately 150,000 to 500,000 pounds of U3O8 from newly mined conventional ore, stockpiled ore and recycled alternative feed materials, depending on the timing of the ramp-up of production at the company's Pinyon Plain, La Sal and Pandora mines, while increasing to higher levels of production in 2025 and beyond.
• The company expects to issue an ore buying schedule in early 2024, describing the terms under which the company is prepared to buy uranium and uranium/vanadium ore from third party miners in the vicinity of the White Mesa mill, which is expected to contribute to the company's production profile.
• During 2024, the company expects to sell 200,000 to 300,000 pounds of U3O8 into its existing portfolio of long-term uranium contracts, of which 200,000 pounds were sold during first quarter 2024 at a realized price of $75.13 per pound, which resulted in a gross profit of $38.29 per pound or gross margin of 51 per cent.
• During first quarter 2024, the company contracted to sell an additional 100,000 pounds of uranium in March, 2024, at an average sales price of $102.88 per pound, which it expects to result in a gross profit of approximately $66.04 per pound, or approximate gross margin of 64 per cent. Assuming continued strength in uranium prices, the company intends to capture further opportunities to selectively sell uranium into the spot market during 2024.
• In anticipation of continued strength in uranium markets, the company is preparing two additional mines in Colorado and Wyoming (Whirlwind and Nichols Ranch) for expected production within one year. If market conditions remain strong, the Whirlwind and Nichols Ranch mines could potentially increase Energy Fuels' uranium production to a run rate of over two million pounds of U3O8 per year as early as 2025.
• In light of the current strength in the uranium market, the company is planning to conduct exploration drilling on its Nichols Ranch area properties and underground delineation drilling at its Pinyon Plain mine to increase the company's uranium resources and mine life at its existing mines, as well as advance permitting on its large-scale Roca Honda, Sheep Mountain and Bullfrog uranium properties for additional uranium production in the future, which could expand the company's uranium production to a run rate of up to five million pounds of U3O8 per year in the coming years.
• As of Feb. 16, 2024, the spot price of U3O8 was $102 per pound, and the long-term price of U3O8, which is the price most relevant for long-term uranium sales contracts, was $72 per pound, according to data from TradeTech.

Rare earth element ramp-up:

• The mill's REE production is complementary to its uranium production and does not diminish the mill's uranium production profile in any way.
• The phase 1 modification and enhancements to the existing solvent extraction circuits at the mill are expected to be completed on schedule, and $7-million to $9-million below budget, by the end of Q1 2024, at which time the company will be able to produce high-purity separated REE oxides. Subject to securing sufficient monazite feed, phase 1 is expected to position Energy Fuels as one of the world's leading producers of separated neodymium-praseodymium outside of China.
• The mill's phase 1 REE circuit is expected to have the capacity to produce approximately 800 to 1,000 tonnes of separated NdPr oxide per year. For reference, 1,000 tonnes of NdPr can be used in enough permanent REE magnets to power up to one million electric vehicles per year. Phase 1 capital costs are expected to total between $16-million and $18-million, or approximately $7-million to $9-million less than its initial $25-million budget. During second quarter 2024, the company expects to produce about 25 to 35 tonnes of NdPr oxide to commission and optimize the NdPr circuit, after which time the company expects to begin processing uranium ore and alternative feed materials for the large-scale production of uranium at the mill for the rest of the year.
• Due to the significant opportunity in REEs, Energy Fuels is engineering further enhancements at the mill to increase NdPr oxide production capacity to approximately 3,000 tonnes to 5,000 tonnes per year by 2027 and to add a separate crack and leach facility to allow for the simultaneous operation of the mill's conventional ore and REE processing circuits. The company also intends to produce separated dysprosium, terbium and potentially other advanced REE materials in the future from monazite and potentially other REE process streams by 2028. Phase 2 and phase 3 are subject to permitting, financing and receipt of sufficient monazite feed.
• To secure a cost-effective and reliable supply of monazite ore, Energy Fuels made significant progress in developing its Bahia project in Brazil. 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 at the Bahia project. The company commenced further sonic drilling in Q1 2024. The company is awaiting the results from the 2023 drilling campaign. The company expects to complete an SK-1300 and National Instrument 43-101-compliant mineral resource estimate on the Bahia project during 2024.
• In December, 2023, the company announced it had signed a non-binding memorandum of understanding with Astron Corporation Ltd. to jointly develop the Donald rare earth and mineral sands project, located in the Wimmera region of the state of Victoria, Australia. Under the terms of the MOU, Energy Fuels could earn into a 49-per-cent equity interest by investing $180-million (Australian) ($117-million (U.S.)) into the Donald project. The Donald project has the potential to produce approximately 7,000 to 8,000 tonnes of monazite per year during its first phase and 13,000 to 14,000 tonnes during its second phase, and is expected to be another low-cost source of feed for the company's REE production at the mill. This joint venture is subject to due diligence investigations and the negotiation of definitive agreements.
• 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.

Vanadium highlights:

• The company produces high-purity V2O5 from time to time and carries that material in inventory for sale into market strength, including during Q1 2023, when the company sold approximately 79,344 pounds of V2O5 for a realized sales price of $10.98 per pound.
• The company currently holds approximately 905,000 pounds of V2O5 in inventory.
• As of Feb. 16, 2024, the spot price of V2O5 was $6.88 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 cancer therapeutics.
• In June, 2023, the Utah division of waste management and radiation control issued the company a research and development licence for the recovery of R&D quantities of Ra-226 at the mill.
• During 2024, the company intends to complete engineering on the R&D pilot facility for the production of Ra-226 at the mill, to set up the first stages of the pilot facility and to produce R&D quantities of Ra-226 at the mill for testing by end-users of the product.

Mark S. Chalmers, Energy Fuels' president and chief executive officer, stated: "In 2023, Energy Fuels joined an exclusive club. With nearly $100-million in net income, we became one of the only profitable non-state-owned uranium mining companies in the world. There were two factors that contributed to our profitability: profitable uranium sales that captured the recent sharp rise in uranium prices and the sale of our non-core Alta Mesa project. The Alta Mesa sale was important because it provided the company with the funds needed to increase our uranium production and strategically diversify into the REE business. Keep in mind that while net income was less than Alta Mesa proceeds, this was by design as we are investing heavily in growth to become a sustainably profitable, high-margin U.S. critical minerals company."

Mr. Chalmers continued: "Our nimble business plan enabled us to capture opportunities in the uranium market as prices surged beginning in late 2023. During 2023, we sold 560,000 pounds of uranium for about $60 per pound for total gross profits of $17.96-million and a 54-per-cent gross margin. However, uranium prices have risen significantly since then, and in Q1 2024, we intend to sell approximately 300,000 pounds of uranium under long-term contracts and on the spot market at an expected weighted-average sales price of $84.38 per pound and at substantially higher gross margins. As long as market prices are strong, we will continue to selectively capitalize on spot market sales opportunities as we ramp up our production in ways that are unique to our company in 2024 and beyond and with limited capital.

"Furthermore, we have a bullish long-term view on uranium prices, and we are investing to increase production. We are ramping up production at several of our uranium mines, which continue to proceed on time and on budget. In late 2023, we announced that we had begun ore production at our Pinyon Plain, La Sal and Pandora mines. We currently expect to process ore from these conventional mines, along with alternate feed material recycling, at the mill in the latter half of 2024. As a result, we intend to produce approximately 150,000 to 500,000 pounds of uranium during 2024 from both newly mined conventional ore and stockpiled alternate feed materials, increasing further in 2025, depending on the timing of the ramp-up of production at the company's Pinyon Plain, La Sal and Pandora mines.

"Looking further ahead, we are preparing two additional mines for production (the Whirlwind mine and the Nichols Ranch ISR project), which have the potential to increase company-wide production to a run rate of about two million pounds of uranium per year by 2025. At the current time, only about 25 per cent to 30 per cent of our short-term, low-cost production is committed to contracts, and our contracts maintain some exposure to market prices. As a result, most of Energy Fuels' future uranium production is exposed to further market upside at this time. We are also planning an exploration drilling program on our Nichols Ranch project and an underground delineation drilling program at our Pinyon Plain mine to increase our resources at those projects, as well as advancing permitting efforts at three of our large-scale uranium mines, which could increase company-wide production to a run rate of up to five million pounds of uranium per year in the next several years."

Turning to the company's REE opportunities, Mr. Chalmers noted: "Even as we capture today's opportunities in uranium, we are also advancing our REE initiatives. With relatively minimal capital expenditures, we are now positioned to capitalize on this potentially high-growth market. We believe now is the right time to secure a strategic position in the REE space since REE prices are at relatively low levels and because our unique ability to process radioactive ore at the mill gives us a durable competitive advantage. We plan to commission our new NdPr circuit at the White Mesa mill during Q2 2024 and produce about 25 to 35 tonnes of NdPr oxide, and are seeking to secure low-cost sources of monazite to feed current and future rare earth oxide crack-and-leach and separation circuits. We will not make major capital expenditures on any projects unless the REE economics build shareholder value. We are very excited about the long-term opportunity in REEs, especially because it is complementary to our uranium efforts, and does not diminish our short-, medium- or long-term uranium opportunities."

Mr. Chalmers concluded: "Energy Fuels is taking a unique and attractive path in the critical minerals business. Unlike other companies, who are reliant on only uranium, Energy Fuels is taking a broader view of the critical mineral industry and is producing the materials necessary to power the energy transition. Over time, our intent is to build a multiproduct, high-value commodity portfolio, centred on uranium, that earns long-term, sustainable and high-margin cash flows. I am excited to see our plans develop further in 2024."

Conference call and webcast at 8:30 a.m. ET on Monday, Feb. 26, 2024

Energy Fuels will be hosting a conference call and webcast on Feb. 26, 2024, at 8:30 a.m. ET (6:30 a.m. MT), to discuss its 2023 financial results, the outlook for 2024, and its uranium, rare earths, vanadium and medical isotopes 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.

Rapid connect

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.

Webcast

A replay of the call will be available until March 11, 2024, by calling 888-390-0541 or 416-764-8677 and entering the replay code 227391 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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