Significant Progress Preparing Four Convention Uranium and Uranium-Vanadium Mines

LAKEWOOD, CO - Energy Fuels Inc. reported that 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 (RE Carbonate) in inventory. The Company holds an additional 403,000 lbs. of U3O8 as raw materials and work-in-progress inventory, along with 1 - 3 million pounds of solubilized V2O5 in tailings solutions that could be recovered in the future.

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 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%.

Every Fuels 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 - $58 per pound (depending on inflation and spot price activity), resulting in an estimated 46% - 50% gross margin.

Over the past several months, significant progress in preparing four (4) of its conventional uranium and uranium/vanadium mines to be ready to resume ore production, including significant workforce expansion and performing needed rehabilitation and development of surface and underground infrastructure. It completed the sale of its PFN in situ uranium assaying tool assets, including the underlying contracts, technology, licenses and intellectual property, to enCore Energy in exchange for cash consideration received at closing of $3.10 million. The PFN Assets were used exclusively at the Alta Mesa ISR 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 licenses on commercially reasonable terms.

During the three months ended June 30, 2023, the Company produced approximately 99 MT of high-purity, partially separated mixed RE 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 U.S.

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 Q3-2023. 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.

Energy Fuels 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).

2,266 meters of sonic drilling has been completed at the 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 NI 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 our growing REE initiative.

During the three months ended June 30, 2023, the Company sold no vanadium. It 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 Q1-2023 when approximately 79,344 pounds of V2O5 was sold for an average realized sales price of $10.98 per pound. The Company currently holds approximately 906,000 pounds of V2O5 in inventory.

Regarding the Medical Isotope the continuance of 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, President and CEO, said, "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 also continued preparing four (4) 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 - 1,000 metric tons 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 (Dy) and terbium (Tb) 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 're-shore' critical mineral capabilities required for many advanced clean energy, defense, and other technologies is truly an understatement."