Mr. Mark Chalmers reports

ENERGY FUELS ANNOUNCES Q1-2024 RESULTS, INCLUDING CONTINUED NET INCOME, CONTINUED SUCCESSFUL URANIUM RAMP-UP, COMMISSIONING RARE EARTH OXIDES PRODUCTION, AND STEPS TO SECURE WORLD-SCALE SOURCES OF HEAVY MINERAL SANDS AND MONAZITE

Energy Fuels Inc. has released its financial results for the quarter ended March 31, 2024. 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.

• Recorded net income of over $3-million: During the three months ended March 31, 2024, the company earned net income of $3.64-million, or two cents per common share, including operating income of $2.02-million.
• Robust balance sheet with over $220-million of liquidity and no debt: As of March 31, 2024, the company had $222.54-million of working capital, including $54.78-million of cash and cash equivalents, $140.80-million of marketable securities (uranium stocks and interest-bearing securities), $28.25-million of inventory, and no debt.
• Over $20-million of additional liquidity from market value of inventory: At current commodity prices, the company's product inventory has a market value of approximately $40.82-million while the balance sheet reflects product inventory carried at cost of $19.96-million.
• Uranium drives revenue: The company sold 300,000 pounds of uranium concentrates at a weighted-average price of $84.38 per pound for $25.31-million, which resulted in a gross profit of $14.26-million and an average gross margin of 56 per cent.
• SX phase 1 rare earth element separation circuit development completed: The phase 1 modification and enhancements to the existing solvent extraction circuit at the company's White Mesa mill were completed in first quarter 2024, and the mill expects to complete commissioning of the new circuit in second quarter 2024.
• Well stocked to capture market opportunities: As of March 31, 2024, the company held 385,000 pounds of finished U3O8, 905,000 pounds of finished vanadium and 11 tonnes of finished high-purity, partially separated mixed rare earth carbonate in inventory. The company holds an additional 495,000 pounds of U3O8 as raw materials and work-in-progress inventory (for total finished, raw material and work-in-progress inventory of 880,000 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. Additionally, at March 31, 2024, the company had 480 tonnes of REE raw materials (monazite concentrate) in inventory.

Capitalizing on strong uranium pricing:

• During the three months ended March 31, 2024, the company sold 300,000 pounds of U3O8 for $25.31-million or a realized sales price of $84.38 per pound. These sales resulted in a gross profit of $14.26-million ($47.54 per pound of U3O8) or a 56-per-cent gross margin.
• The company recently renewed an alternative feed agreement with one of its key customers, providing the company with an estimated long-term, multiyear, low-cost source of 11,000 to 30,000 pounds of U3O8 per year.
• During the three months ended March 31, 2024, the company continued uranium ore production at its Pinyon Plain (Arizona), La Sal (Utah) and Pandora (Utah) mines.
• Once production is fully ramped up at these mines, which is expected by mid- to late 2024, the company expects to be mining at a run rate of 1.1 million to 1.4 million pounds of newly mined U3O8 per year.
• During 2024, the company expects to produce approximately 150,000 to 500,000 pounds of finished 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, and mill schedule, while increasing to higher levels of production in 2025 and beyond.
• The company expects to offer to buy uranium and uranium/vanadium ore from third party miners in the vicinity of the mill during 2024, which has the potential to contribute to the company's production profile.
• On April 30, the U.S. Senate approved by unanimous consent the Prohibiting Russian Uranium Imports Act, which bans the import of Russian uranium products into the United States. Under the ban, which commences 90 days after enactment and terminates in 2040, all imports of uranium products from Russia will be banned, subject to waivers in the event no alternative viable source of low-enriched uranium is available to sustain the continued operation of a nuclear reactor or U.S. nuclear energy company. The company expects President Joe Biden to sign the bill into law in the coming days.
• 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 in 2025. 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.
• The company is advancing permitting and other predevelopment activities 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.
• The company continues to evaluate uranium resource and development acquisition and other potentially accretive opportunities as they may arise.
• As of May 1, the spot price of U3O8 was $92 per pound, and the long-term price of U3O8, which is the price most relevant for long-term uranium sales contracts, was $80 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 capacity or production profile in any way.
• The development of the phase 1 REE separation circuit at the mill was completed on schedule at the end of Q1 2024 at a cost that is expected to be $7-million to $9-million below the $25-million budget.
• During second quarter 2024, the company expects to produce about 25 to 35 tonnes of separated neodymium praseodymium oxide and 10 to 20 tonnes of a heavy samarium plus mixed rare earth carbonate as it commissions the phase 1 REE separation 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 and through mid-2026.
• The mill's phase 1 REE separation 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. Subject to securing sufficient monazite feed, phase 1 capacity is expected to position Energy Fuels in the coming years as one of the world's leading producers of separated NdPr outside of China.
• Due to the significant opportunity in REEs, Energy Fuels is engineering further enhancements at the mill to increase NdPr oxide production capacity to approximately 4,000 tonnes to 6,000 tonnes per year by 2027 (phase 2) and to add a separate crack and leach circuit 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 3). Phase 2 and phase 3 are subject to permitting, financing and receipt of sufficient monazite feed.
• To secure cost-effective and reliable supplies of monazite ore, Energy Fuels is securing positions in several heavy mineral sand deposits around the world, which produce monazite sand as a low-cost byproduct of primary ilmenite and rutile (titanium) and zircon (zirconium) production. Monazite sands are a rich source of the magnetic REEs used in EVs and a variety of clean energy and advanced technologies.
• The company has made significant progress in developing its Bahia HMS project in Brazil. Based on preliminary, historical resource estimates, the company believes the Bahia project has the potential to supply approximately 3,000 to 10,000 tonnes per year of monazite sand concentrate to the mill (depending on production rates), containing approximately 1,500 to 5,000 tonnes of total rare earth oxides per year potentially for decades. During the first half of 2023, the company completed 2,266 metres of sonic drilling to confirm and further delineate the rare earth, titanium and zirconium mineralization. The company is currently awaiting the results from the 2023 drilling campaign. In Q1 2024, the company commenced further sonic drilling. Additionally, the company completed bulk test work on a 2.5-tonne sample in March, 2024, and is currently collecting a larger 15-tonne sample for additional process testwork. The company expects to complete a U.S. Subpart 1300 of Regulation S-K and Canadian National Instrument 43-101-compliant mineral resource estimate on the Bahia project during 2024.
• On April 21, 2024, the company announced that it had executed a definitive scheme implementation deed with Base Resources Ltd. pursuant to which Energy Fuels has agreed to acquire 100 per cent of the issued shares of Base Resources in consideration for: (i) 0.0260 Energy Fuels common share; and (ii) 6.5 Australian cents in cash, payable by way of a special dividend by Base Resources to its shareholders for each Base Resources ordinary share held, for a total equity value at the time of announcement of approximately $375-million (Australian). The transaction will be effected by way of a scheme of arrangement under Australia's Corporations Act and is subject to a number of conditions precedent, including the receipt of certain government approvals and the approval of the shareholders of Base Resources.
• Base Resources owns the Toliara mineral sand project in Madagascar, which is a world-class, advanced-stage, low-cost and large-scale HMS project. In addition to its stand-alone, ilmenite, rutile (titanium) and zircon (zirconium) production capability, the Toliara project also contains large quantities of monazite. According to a definitive feasibility study on titanium and zirconium minerals and a preliminary feasibility study on monazite, the Toliara project boasts a net present value of $2.0-billion at a 10-per-cent discount rate, with expected monazite production of approximately 17,000 tonnes per year in its first phase, ramping up to a maximum of 27,795 tpy in its second phase, averaging 21,800 tpy over the life of the project. Energy Fuels believes its United States-based REE separation capabilities have the potential to increase these valuations materially. The Toliara project is subject to negotiation of fiscal terms applying to the project with the Madagascar government and the receipt of certain Madagascar government approvals and actions, including the lifting of a suspension on development at the Toliara project pending negotiation of fiscal terms and the addition of monazite recovery to the existing mine permit, before development may commence.
• On Dec. 27, 2023, the company announced that it had entered into a non-binding memorandum of understanding with Astron Corporation Ltd. to jointly develop the Donald project in Australia. The Donald project is a known HMS and rare earth deposit that the company believes could provide the mill with another near-term, low-cost and large-scale source of monazite sand for the recovery of REE oxides along with the contained uranium. The Donald project has most licences and permits in place (or at an advanced stage of completion). The MOU sets out in broad terms the basis upon which the parties would enter into an Australian incorporated venture under which Energy Fuels would invest up to $180-million (Australian) (approximately $117-million at current exchange rates) to earn up to a 49-per-cent interest in the venture. In addition, the company would issue to Astron common shares having a value of up to $17.5-million. Based on a definitive feasibility study, 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 by the company to be another low-cost source of feed for the mill's REE production. Although the company is currently in the process of completing due diligence and negotiating definitive agreements with Astron, there can be no assurance that the company will enter into definitive agreements to govern the venture, or if entered into, the terms will be as set out in the MOU, or that the transaction will be completed.
• Together, the Bahia, Toliara and Donald projects have the potential to supply the mill with over 50,000 tonnes of low-cost monazite sand per year, assuming the Toliara project and Donald project are secured and all three projects are ramped up to full expected production capacity.
• On April 24, 2024, the company released an AACE International Class 4 prefeasibility study (not a prefeasibility study subject to or intended to be compliant with National Instrument 43-101 or S-K 1300) dated April 22, 2024, indicating globally competitive capital and operating costs for its planned phase 2 expanded REE oxide production at the mill. The economics detailed in the mill PFS are for the phase 2 expansion of REE separation capacity in one or more additional facilities at the mill, capable of processing 30,000 tonnes per year of monazite to produce approximately 3,000 tpy of NdPr oxide. The mill PFS shows globally competitive capital expenditures of $348-million for the 30,000-tonne-per-year phase 2 separation facility and an average processing cost of $29.88 per kilogram NdPr. This analysis does not include any capital or operating costs associated with the recovery of Dy and Tb or any revenues associated with the sales of those heavy REE oxides. The mill PFS can be viewed on the company's website.
• Upon successful completion of the Base Resources transaction, Energy Fuels plans to update the Toliara DFS2 and the Toliara monazite PFS and reissue those reports in a form that complies with National Instrument 43-101 and S-K-1300, and that also updates and incorporates the results of the mill PFS to expand phase 2 production capacity from a 30,000-tonne-per-year monazite process facility capable of producing approximately 3,000 tpy of NdPr oxide to a 40,000- to 60,000-tonne-per-year monazite process facility, which would generate 4,000 to 6,000 tpy of NdPr, 150 to 225 tpy of Dy and 50 to 75 tpy of Tb. The phase 2 separation facility is subject to completion of engineering design and receipt of required permits and licences.

Vanadium highlights:

• The company produces high-purity V2O5 from time to time and carries that material in inventory for sale into market strength, most recently 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 May 1, the spot price of V2O5 was $5.87 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: "Energy Fuels maintained our momentum from 2023 by reporting continued profitability in Q1 2024, driven mainly by uranium. We also continued to make extraordinary progress diversifying into the complementary HMS and rare earth oxide businesses.

"During the quarter, we made profitable uranium sales into our portfolio of long-term utility contracts, and we completed two opportunistic spot sales, averaging nearly $103 per pound of U3O8, enabled by our significant uranium inventories backed by our near-term low-cost uranium production capacity. From these sales, we maintained high gross margins, averaging roughly 56 per cent, contributed to in large part by our low-cost alternate feed material and other historic uranium production, which we have maintained in inventory pending increased uranium prices such as we see today.

"We recently renewed a multiyear alternate feed agreement with one of our key customers, providing the company with a long-term, low-cost source of U3O8. Finally, the ramp-up of our conventional mines in Arizona and Utah continues to proceed on budget and on schedule. We plan to begin processing alternate feed materials for the production of uranium starting in [third quarter] 2024, followed by a conventional ore run later in 2024 or 2025. In order to optimize recoveries and minimize downtime, it is necessary to build a large stockpile of conventional ore before processing it at the mill. While we build the necessary uranium stockpile, we are commissioning our new rare earth separation circuit.

"We continue to make extraordinary progress on rare earth elements by leveraging our uranium capabilities and permits. We completed the modifications and enhancements to the mill's SX circuit by adding up to 1,000 tonnes of NdPr separation capabilities through the development of our phase 1 REE separation circuit. This means Energy Fuels' White Mesa mill now has one of the largest rare earth separation circuits in the world, ex China. This is obviously highly strategic. During Q2, we plan to process stockpiled monazite and produce roughly 25 to 35 tonnes of separated NdPr oxide, along with 10 to 20 tonnes of a heavy mixed rare earth concentrate as we commission the new circuit.

"Once the NdPr run is complete, we will shift our focus to processing alternate feed materials and conventional ore for uranium recovery later in 2024 through mid-2026. By 2026 or 2027, we expect to have significant quantities of monazite from our newly secured mineral sand projects. We also plan to have a dedicated monazite crack-and-leach facility completed or under construction by that time. We are carefully calibrating mill and mine schedules to accommodate both uranium and rare earths production, without diminishing the capacity for either, in a clear optimization and diversification strategy.

"We are also making spectacular progress toward securing, large-scale, low-cost sources of monazite that the mill can process into rare earth oxides in the future. Early on, it became very apparent that to become a low-cost, world-scale rare earth oxide producer, we needed to secure our own supply chains for monazite to better control our costs and production schedules. Monazite sand from HMS projects is clearly one of the best, lowest-cost source of rare earths due to excellent natural distributions of both the light and heavy rare earths needed for magnets, high total and magnet rare earth grades, and the fact that it is produced as a low-cost byproduct of primary titanium and zirconium mineral production.

"We acquired the Bahia HMS project in Brazil in 2023, which we are advancing toward production. In December, 2023, we announced an MOU to acquire a 49-per-cent interest in the Donald mineral sand project in Australia, which is moving forward toward definitive agreements. We also recently announced a proposed acquisition of Base Resources, which owns the Toliara project in Madagascar. Many experts believe the Toliara project is one of the world's premier mineral sand deposits, due to its massive scale, projected low costs, and the high quality and payability of its ilmenite, rutile, zircon and rare earth minerals. Between these three projects, assuming successful acquisition and/or development of the Toliara project, Donald project and Bahia project, we will have secured up to approximately 50,000 tpa of monazite to supply the mill, with an expected ramp-up during 2026 to 2028. This quantity of monazite would contain estimated recoverable quantities of up to roughly 5,000 tpa of NdPr oxide, 200 tpa of Dy oxide and 70 tpa of Tb oxide.

"Importantly, upon the successful completion of the Base Resources acquisition, Energy Fuels will also access Base Resources' proven leadership and heavy mineral sands operations team, which has an exceptional record of responsible asset development, construction, commissioning and profitable production in Africa. The Base Resources team will not only continue to oversee the development and operation of Toliara but will also enhance Energy Fuels' heavy mineral sands teams in Australia and Brazil, thus allowing the company to maximize the value of all projects to the company's shareholders.

"We also released the results of the mill PFS, demonstrating that the mill is expected to have low capital and operating costs that we believe are among the lowest in the world. Now that we are securing our supply chains and demonstrating our commercial viability and competitiveness, we are in the process of advancing discussions with commercial customers on sales opportunities and the U.S. government on sales and financial support.

"Another key benefit of our HMS project acquisitions that cannot be overlooked is diversification into the HMS market, which is independent of the uranium and REE markets. The Toliara project is recognized as a world-class HMS project based on the contained ilmenite and rutile (titanium) and zircon (zirconium), without any reliance on monazite or REEs, and if developed and operating, is expected to generate significant cash flows independent of the prices of uranium and REEs.

"At Energy Fuels, we are building a diversified, U.S.-based critical minerals company, centred on our core uranium processing capabilities. Our goal is to create a profitable company able to withstand the business cycles associated with many critical minerals. We plan to be globally competitive in these markets, offering commercial and government customers a reliable, low-cost U.S. alternative."

Conference call and webcast at 9 a.m. ET on May 6, 2024

Energy Fuels will be hosting a conference call and webcast on May 6, 2024, at 9 a.m. ET (7 a.m. MT), to discuss its Q1 2024 financial results, the outlook for the rest of 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.

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 see viewer-controlled webcast slides and/or stream the call.

A replay of the call will be available until May 20, 2024, by calling 888-390-0541 and entering the replay code, 812214 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 centers: 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 United States 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 NI 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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