Mr. Mark Chalmers reports

ENERGY FUELS' US-PRODUCED "HEAVY" RARE EARTH OXIDE SUCCESSFULLY QUALIFIED FOR USE IN PERMANENT MAGNETS

Energy Fuels Inc.'s high-purity dysprosium (Dy) oxide has passed all initial purity and quality assurance and quality control (QA/QC) benchmarks of a major South Korean automotive manufacturer for downstream rare-earth permanent magnet (REPM) production.

Dy oxide is a key additive in neodymium-iron-boron (NdFeB) REPMs that improves durability and magnetic performance and is used in REPMs to power electric vehicles (EVs), hybrid EVs, advanced robotics, and other automotive and commercial applications. Dy oxide is also key to the manufacture of REPMs used in several crucial defence systems, including drones, missiles, jet engines and guidance systems, as well as in control rods for naval reactors.

Mark S. Chalmers, chief executive officer of Energy Fuels, stated: "Production of dysprosium oxide that meets stringent magnet specifications is yet another key milestone in the company's critical materials strategy, demonstrating Energy Fuels' unique and rapidly expanding capabilities in the rare-earth sector, and in particular our ability to produce high-purity separated 'heavy' rare-earth oxides from monazite at our White Mesa mill in Utah. This achievement is even more notable by the fact our dysprosium oxide was validated by a well-known third party end-user. I commend our creative and hardworking team at the mill for this impressive accomplishment."

Today's announcement follows Energy Fuels' Sept. 9, 2025, news that its NdPr oxide, another key ingredient in REPMs, has also been qualified for use in NdFeB magnet applications. As a result, the company believes Energy Fuels is the first U.S. company to have both its light and heavy REEs qualified for use in permanent magnet applications, marking a major milestone in rebuilding the United States rare-earth supply chain. Production and qualification of Dy oxide is a significant milestone for the United States and Energy Fuels, and critical for U.S. national defence, as the supply of Dy oxide and other heavy REE oxides is extremely limited outside of China. In April, 2025, China imposed export controls on seven rare earths, including Dy, Tb and Sm, which remain in place today.

As previously announced, the company produced its first kilogram of Dy oxide at the White Mesa mill in August, 2025. To date, the company has produced approximately 29 kilograms of high-purity Dy oxide at pilot scale, achieving purities of 99.9 per cent which exceed the automotive specification of 99.5-per-cent purity.

Upcoming terbium (Tb) and samarium (Sm) pilot production

The company is also pleased to announce that it plans to begin piloting terbium (Tb) oxide production at the White Mesa mill next week and expects to have kilogram-scale samples available for qualification in early 2026. Tb oxide is another essential element that is crucial for high operating temperature REPMs for EVs and many key defence systems.

Following the Tb oxide pilot, Energy Fuels plans to begin piloting gadolinium (Gd) and then samarium (Sm) oxide production. Sm is a key ingredient in samarium-cobalt (SmCo) magnets used in radar, sonar, missile guidance and jet engines where magnet stability in extreme temperatures is paramount.

Commercial-scale heavy rare-earth production as soon as Q4 2026

As a result of the company's successful continuing heavy REE pilot, Energy Fuels is proceeding with plans for construction of the infrastructure needed to produce Dy, Tb and potentially Sm oxides at commercial scale at the White Mesa mill. These heavy REE refining circuits are planned to have the annual capacity to produce up to 48 metric tons (tonnes) of Dy oxide and 14 tonnes of Tb oxide, subject to available feed.

About Energy Fuels Inc.

Energy Fuels is a leading U.S.-based critical materials company, focused on uranium, REEs, heavy mineral sands, vanadium and medical isotopes. Energy Fuels, which owns and operates several conventional and in situ recovery uranium projects in the Western United States, has been the leading U.S. producer of natural uranium concentrate for the past several years, which is sold to nuclear utilities that process it further for the production of carbon-free nuclear energy. Energy Fuels also owns the White Mesa mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States. At the mill, Energy Fuels also produces advanced REE products, vanadium oxide (when market conditions warrant) and is evaluating the potential recovery of certain medical isotopes from existing uranium process streams needed for emerging targeted alpha therapy cancer treatments. Energy Fuels is also developing three heavy mineral sands projects: the Toliara project in Madagascar; the Bahia project in Brazil; and the Donald project in Australia in which Energy Fuels has the right to earn up to a 49-per-cent interest in a joint venture with Astron Corp. Ltd. Energy Fuels is based in Lakewood, Colo., near Denver. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol UUUU and its common shares are also listed on the Toronto Stock Exchange under the trading symbol EFR.

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