Energy Fuels Forges Strategic Collaborations to Create Non-China Rare Earth Magnet Supply Chain

• Energy Fuels has signed a strategic MOU with South Korea-based POSCO International to potentially create a new non-China rare earth element (REE) supply chain for electric and hybrid vehicle drivetrains.
• The company is also forming a strategic alliance with The Chemours Company to expand their relationship and enhance U.S. domestic rare earth and critical mineral supply chains.
• Energy Fuels is developing an innovative, low-cost U.S.-centered REE supply chain by producing low-cost byproduct monazite concentrates from heavy mineral sand mines globally and processing them into separated REE oxides at the White Mesa Mill.
• The company expects to produce 200,000-250,000 pounds of uranium in H1-2025, with a goal to increase production to 2+ million pounds per year if market conditions warrant.
• Energy Fuels maintains a strong financial position with over $178 million in liquidity, including $38.6 million in cash and cash equivalents, with no debt.

Energy Fuels Inc. (TSX: EFR) is positioning itself as America's leading producer of uranium and critical materials for the clean energy transition. The company is expanding beyond its core uranium business to become a globally significant critical minerals company based in the United States. Energy Fuels is currently a leading U.S. producer of uranium, rare earth elements (REEs), and heavy mineral sands (HMS), with operations centered around its White Mesa Mill in Utah - the only fully licensed and operating conventional uranium processing facility in the United States.

Energy Fuels announced a strategic Memorandum of Understanding (MOU) with South Korea-based POSCO International Corporation, followed by an announcement of a strategic alliance with The Chemours Company. These moves strengthen Energy Fuels' position in the global critical minerals market while addressing domestic supply chain vulnerabilities for the United States and its allies. In a news release, Energy Fuels' President and CEO Mark Chalmers expressed whar this means for the company's outlook,

"The agreement between Energy Fuels and POSCO International brings the U.S. and our allies in Europe, South Korea and Japan one step closer to seeing vehicles powered by American-made rare earth oxides with no ties to China, unlocking a scalable, high-quality allied REE magnet processing and manufacturing route that does not currently exist in the U.S."

Strategic Collaboration with POSCO International

The collaboration with POSCO International could fast-track the formation of one of the world's first commercial permanent rare earth magnet supply chains independent of China. Initial qualification samples of Energy Fuels' neodymium-praseodymium (NdPr) oxide, produced at its White Mesa Mill in Utah, have already met all of POSCO's applicable specifications.

Under the MOU, Energy Fuels will supply a larger scale sample of NdPr oxide to POSCO, which will be processed into NdPr metal, alloy, and finished high-performance permanent REE magnets to qualify the company's NdPr oxide for use in POSCO's traction motor cores. Upon successful validation, Energy Fuels and POSCO will discuss the potential delivery of additional mass production supply volumes of NdPr oxide later this year, which could be enough to power over 30,000 EVs.

POSCO is currently a leading supplier of traction motor cores to automotive customers, with their drivetrains already qualified by U.S., South Korean, European, and Japanese manufacturers. This collaboration places Energy Fuels in an excellent position to secure supportive sales agreements for its REE oxides and could lead to Energy Fuels' U.S.-processed REE oxide being used in vehicles for U.S. and European markets as soon as this year.

"Energy Fuels and POSCO are working together to create a traceable, competitively priced, and sustainably produced rare earth supply chain for allied magnet-makers and U.S. and allied automotive partners," Chalmers noted.

Strategic Alliance with Chemours

After announcing the POSCO collaboration, Energy Fuels revealed its strategic alliance with The Chemours Company to enhance U.S. domestic rare earth and critical mineral supply chains to meet increasing demand.

This alliance will capitalize on the complementary geographic and operational synergies of both organizations. Chemours mines and separates heavy mineral sands from its mines in Florida and Georgia, while Energy Fuels is developing new heavy mineral sands projects in Madagascar, Brazil, and Australia. In the recent update,

"Energy Fuels and Chemours each have unique, complementary capabilities, which can be deployed to solve many of America's critical mineral supply chain challenges in rare earth elements, titanium and zirconium. Energy Fuels and Chemours have collaborated successfully over the past four years, and we look forward to expanding our relationship in this key area," said Chalmers.

Diversified Asset Portfolio & Product Suite

Energy Fuels is building its business on a foundation of diversified assets across geography, commodity, and development stages. The company's assets include:

1. Uranium and Vanadium Assets:
   • Producing mines: Pinyon Plain Mine (Arizona), La Sal Complex (Utah)
   • Processing facility: White Mesa Mill (Utah)
   • Development assets: Sheep Mountain (Wyoming), Roca Honda (New Mexico), Bullfrog (Utah)
   • Standby assets: Nichols Ranch ISR (Wyoming)
2. Heavy Mineral Sands Projects:
   • Toliara Project (Madagascar, 100% ownership)
   • Donald Project (Australia, right to earn up to 49% interest)
   • Bahia Project (Brazil, 100% ownership)
   • Ongoing relationship with Chemours (Georgia & Florida, USA)

The company is leveraging existing infrastructure, excess capacity, and logical "side steps" throughout its asset base to produce several in-demand critical materials, including uranium (U₃O₈), vanadium (V₂O₅), rare earth oxides, titanium minerals, and zircon.

Rare Earth Elements: A Strategic Focus

Energy Fuels has achieved commercial-scale production of NdPr at its White Mesa Mill in 2024, producing 38 tonnes of on-spec NdPr oxide during the year. The company currently has installed capacity to produce up to 1,000 tonnes per annum (tpa) of separated NdPr, which is being tested and qualified by non-China rare earth metal and magnet manufacturers.

Energy Fuels is focused on processing monazite, a mineral recovered as a low-cost byproduct of heavy mineral sand (HMS) mining. Monazite has superior distributions and grades of "magnet" REEs (NdPr, Sm, Dy, Tb) plus higher quantities of uranium. The White Mesa Mill in Utah is the only U.S. facility able to process monazite and produce separated REE oxides.

The company is working on increasing its REE capacity by updating its pre-feasibility study to a definitive feasibility study. This expansion would increase capacity to 4,000-6,000 tpa NdPr plus 150-225 tpa of Dy and 50-75 tpa of Tb, with an expected processing cost of $29.88/kg for NdPr oxide.

Heavy Mineral Sands: Expansion into New Markets

Energy Fuels is advancing three HMS projects to secure its own supply chains for titanium, zirconium, and rare earth minerals:

• Toliara Project (Madagascar): Considered one of the best heavy critical mineral development projects globally, with FID expected in H1-2026. The project has potential to produce 26,000 tpa of monazite containing approximately 2,600 tpa NdPr plus significant Dy and Tb, with a 39-year mine life.
• Donald Project (Australia): With potential FID in H2-2025, this project could supply 7,000-14,000 tpa of monazite to the White Mesa Mill for decades, yielding roughly 700-1,400 tpa NdPr oxide plus Dy/Tb.
• Bahia Project (Brazil): Currently completing a sonic drilling program with a resource estimate expected in 2025, this project could potentially supply 3,000-5,000 tpa of monazite.

In 2024, Energy Fuels generated $39.87 million in revenue from the sale of HMS products (including 17,529 tonnes of rutile, 48,302 tonnes of ilmenite, and 2,477 tonnes of zircon) from the Kwale Project, which ceased production in December 2024.

Uranium Production Update

Energy Fuels remains a leading U.S. producer of uranium, with active ore production at three mines and active mineral processing at the White Mesa Mill. In 2024, the company produced 158,000 pounds of finished U₃O₈ and mined ore containing approximately 350,000 pounds of U₃O₈ from Pinyon Plain, La Sal, and Pandora Mines, which is being stockpiled at the Mill.

For 2025, the company expects:

• Ore production of 730,000-1,170,000 pounds of contained U₃O₈
• Finished U₃O₈ production of 200,000-250,000 pounds in H1-2025
• Contract sales of 200,000-300,000 pounds under long-term contracts with U.S. utilities

Energy Fuels is working to increase its production run-rate to 2+ million pounds per year, subject to market conditions. The company has a total of 1.1 million pounds of U₃O₈ in inventory as of the end of 2024.

Financial Position

Energy Fuels reported a net loss of $47.77 million ($0.28 per share) in 2024, driven by transaction costs but offset by uranium sales. The company sold 450,000 pounds of uranium for a gross profit of $21.33 million and sold HMS products for revenue of $39.87 million.

As of December 2024, Energy Fuels maintained a strong financial position with $170.90 million in working capital, $38.60 million in cash and cash equivalents, and no debts. Energy Fuels is one of the largest private employers and taxpayers in San Juan County, Utah, with about 100 employees at the White Mesa Mill and 35 each at the Pinyon Plain Mine and La Sal Mine Complex. Approximately half of the employees at the Mill are Navajo and Native American.

The company established a foundation with an initial $1 million contribution and ongoing funding equal to 1% of annual revenues from the White Mesa Mill. The foundation supports education, environment, health/wellness, economic advancement, and Native American priorities.

Energy Fuels has also reached a landmark agreement with the Navajo Nation on ore transport and is seeking to assist in the cleanup of Cold War-era uranium mines on Navajo Nation land.

Outlook for Investors

Energy Fuels is positioning itself as a leading U.S.-based critical minerals company with diverse revenue streams from uranium, rare earth elements, heavy mineral sands, and potentially medical isotopes. The company's recent strategic collaborations with POSCO International and The Chemours Company strengthen its position in the global critical minerals market while addressing domestic supply chain vulnerabilities.

With a strong financial position, no debt, and a clear development roadmap for its various projects, Energy Fuels offers investors exposure to multiple critical mineral markets with strong growth potential. The company's focus on building a non-China rare earth supply chain aligns with U.S. and allied nations' strategic priorities to secure critical mineral supply chains, potentially creating significant long-term value for shareholders.

For investors looking at Energy Fuels, the company represents a unique opportunity to invest in a diversified critical minerals producer with established uranium operations, emerging rare earth production capabilities, and significant growth potential in heavy mineral sands. While the company reported a net loss in 2024, its strong balance sheet and strategic positioning in critical mineral markets suggest potential for substantial growth as these markets continue to develop.