Mr. Mark Chalmers reports

ENERGY FUELS ANNOUNCES FIRST U.S. PRIMARY PRODUCTION OF CRITICAL "HEAVY" RARE EARTH MATERIAL IN DECADES

Energy Fuels Inc. has successfully produced its first kilogram (kg) of terbium (Tb) oxide at its White Mesa mill in Utah. Using monazite ore sourced from the United States, the team achieved a purity of 99.9 per cent Tb at pilot scale, which meets the specifications of global manufacturers of rare-earth permanent magnets (REPMs). This achievement follows the company's recent announcement that it had produced nearly 30 kilograms of 99.9 per cent pure dysprosium (Dy) oxide production, another critical heavy rare-earth oxide (REO) used in permanent magnets.

"This success proves we can process and produce high-purity 'heavy' rare-earth oxides economically and at scale in the U.S.," said Energy Fuels chief executive officer Mark Chalmers. "North America will soon have a reliable and secure U.S. commercial source of these vital critical materials ensuring availability for high performance magnet and defence technologies. This is just another example of the outstanding team the company has at both the mill, and elsewhere, as the company continues to advance our strategy of becoming a world significant critical material producer."

Energy Fuels believes it is the first U.S. company in many decades to produce high-purity Tb oxide from a primary mineral feedstock and publicly disclose actual production volumes and purities that are sufficient for downstream metal/alloy validation. Like the company's Dy oxide, its Tb oxide has been requested by multiple magnet manufacturers and OEMs (original equipment manufacturers) around the world to begin product validation. Both Dy and Tb are subject to Chinese export controls highlighting the need for secure, Western supply chains.

Adding Dy (dysprosium) and Tb to permanent magnets makes a superior product for electric vehicles (EVs)/hybrid EVs, drones, robotics and defence technologies by improving operational capabilities in high heat conditions and enabling smaller, lighter, and more powerful motors and actuators. The mill expects to continue producing terbium oxide at an approximate rate of one kilogram per week in its existing pilot circuit, followed by pilot production of Sm (samarium), Eu (europium) and Gd (gadolinium) oxides.

The company also plans to expand its heavy rare-earth element production capability at its existing mill circuits for the planned commercial-level recovery of Dy, Tb, Sm, Eu and Gd, with the ability to separate other heavy rare-earth elements such as Y (yttrium) and Lu (lutetium) if market conditions warrant. Subject to the receipt of required regulatory approvals and sufficient quantities of monazite sand feedstock, the expanded commercial circuit is expected to be operational as early as 2027, with planned production recovery of up to approximately 35 tonnes of Dy, 12 tonnes of Tb per year and potentially other heavy rare-earth elements, in addition to the 850 to 1,000 tonnes of NdPr, from processing up to approximately 10,000 tonnes of monazite per year through existing circuits.

The company also plans to further expand its NdPr, Dy and Tb production capability and potentially other REE material production capability through the development of its stand-alone phase 2 circuit as early as 2029, subject to the receipt of regulatory approvals and sufficient feed materials. Upon commissioning, the phase 2 circuit is expected to increase the mill's rare-earth oxide production capacity to over 6,000 tpa of NdPr oxide, along with approximately 80 tpa of Tb and 288 tpa of Dy oxides. This would provide the capability to produce sufficient NdPr for up to approximately 7.0 million EVs/hybrid EVs per year.

Moving forward, the company expects to continue purchasing monazite concentrates from U.S. companies and to import additional significant quantities from allied nations, including Energy Fuels' shovel-ready Donald project in Australia, massive Vara Mada project in Madagascar and prospective Bahia project in Brazil. The company is also planning to install circuits at the mill to enable the processing of mixed rare-earth concentrates (MREC) for both light and heavy rare-earth oxides, subject to receipt of regulatory approvals. MREC is a partially processed, intermediate rare-earth material.

About Energy Fuels Inc.

Energy Fuels is a leading U.S. critical materials company specializing in uranium, rare-earth elements, heavy mineral sands, vanadium and medical isotopes. With several uranium projects in the western United States, Energy Fuels has been the top U.S. producer of natural uranium concentrate, supplying nuclear utilities. The company owns the only fully licensed conventional uranium mill in the U.S. -- the White Mesa mill in Utah -- where it also produces REE products and evaluates medical isotope recovery for emerging cancer therapies. Additionally, Energy Fuels is developing three heavy mineral sands projects: the Vara Mada project in Madagascar, Bahia project in Brazil and Donald project in Australia (through a joint venture with Astron Corp. Ltd.). Based in Lakewood, Colo., its shares trade on the NYSE American (UUUU) and Toronto Stock Exchange (EFR).

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