Energy Fuels Set to Advance World-Class Toliara Critical Minerals Project as Madagascar Lifts Suspension

• The Madagascar government has lifted the suspension on Energy Fuels' Toliara critical minerals project, allowing development activities to resume.
• Energy Fuels believes the Toliara project has potential to supply large quantities of critical minerals, including rare earths, to the U.S. and global markets for decades.
• Energy Fuels completed the acquisition of Base Resources in October 2024, gaining the Toliara project and an experienced mine development team.
• Energy Fuels is ramping up U.S. uranium production, successfully commissioned a rare earth separation circuit, and is advancing other heavy mineral sands projects.
• With a robust balance sheet, expanding critical minerals portfolio, and positive market fundamentals, Energy Fuels continues to present a compelling opportunity for investors.

Energy Fuels is a leading U.S.-based critical minerals company focused on uranium, rare earth elements (REEs), heavy mineral sands (HMS), vanadium and medical isotopes. The company is the top U.S. producer of uranium and is developing an integrated critical minerals business spanning multiple projects. Energy Fuels owns and operates the White Mesa Mill in Utah, the only fully licensed and operating conventional uranium mill in the U.S. The company is leveraging its permits, facilities and expertise to process uranium and produce a variety of critical materials for the energy transition and other industries.

Madagascar Lifts Suspension on Toliara Project

In a significant development, the Madagascar government has lifted the suspension on Energy Fuels' 100%-owned Toliara critical minerals project. The suspension was imposed in November 2019, prior to Energy Fuels acquiring the project through its October 2024 acquisition of Base Resources.

The lifting of the suspension allows Energy Fuels to recommence on-the-ground development and technical activities at Toliara. This includes re-establishing community and social programs, advancing permitting and fiscal terms with the government, expanding the mineral resource base, and progressing towards a positive financial investment decision, which is expected in early 2026.

Energy Fuels President and CEO Mark S. Chalmers stated:

"The lifting of the suspension by the Malagasy Government is a very significant step in the development of the Toliara rare earths, titanium, and zirconium project."

He believes Toliara is a "generational" mining project with potential to supply large quantities of critical minerals to the U.S. and global markets for many decades.

The Toliara Project has the strong potential to be a 'crown jewel' of Madagascar's future economy, a leader in the global clean energy transition, and a model for sustainable mining in Africa, harnessing the principles and practices established and refined by Base Resources over 11 years operating the Kwale titanium and zirconium operation in Kenya. Energy Fuels acquired Base Resources this past October, including its well-regarded management and operations team which remains in place.

Toliara is expected to produce titanium and zirconium minerals, as well as a byproduct monazite stream containing rare earth elements. The rare earths would be processed at Energy Fuels' White Mesa Mill in the U.S. at competitive costs. With the suspension lifted, Energy Fuels can now advance the project in partnership with the Madagascar government.

Energy Fuels' Transformation

Energy Fuels' acquisition of Australia-based Base Resources in October 2024 was transformational, providing the company with the world-class Toliara project and an experienced mine development and operations team. Base Resources has a track record of profitably developing and operating the Kwale HMS operation in Kenya.

In addition to Toliara, the Base Resources acquisition included the Kwale operation which is nearing the end of its life. Base Resources also holds prospective HMS projects in Australia and Brazil that complement Energy Fuels' growing critical minerals portfolio.

Uranium Business Gaining Momentum

Uranium continues to drive Energy Fuels' current financial performance, while rare earth elements and heavy mineral sands add significant long-term value and growth potential. In Q3-2024, Energy Fuels sold 50,000 pounds of U3O8 at a realized price of $80/lb for $4 million in revenue. The company also signed a new long-term uranium supply contract with a U.S. utility.

Energy Fuels is ramping up uranium production from its Pinyon Plain, La Sal and Pandora mines to a targeted run-rate of 1.1 to 1.4 million lbs per year by late-2024. Total production in 2024 is expected at 150,000 to 200,000 lbs of U3O8 from stockpiled alternate feed materials and mined ore.

The company is advancing development of its Nichols Ranch in-situ recovery uranium project in Wyoming and Whirlwind mine in Colorado with an aim to make a production decision within a year at each mine. Longer-term, Energy Fuels' portfolio of large-scale uranium projects like Roca Honda, Bullfrog and Sheep Mountain have potential to expand production to over 5 million lbs U3O8 per year.

Rare Earth & Heavy Mineral Sands Projects Advance

Energy Fuels achieved a key milestone in Q3-2024 with the successful commissioning of a "Phase 1" rare earth separation circuit at its White Mesa Mill in Utah. About 38 tonnes of separated NdPr was produced with samples being tested by potential customers.

The company is updating a prefeasibility study to increase throughput of its rare earth circuit to process 60,000 tonnes per annum of monazite and produce roughly 6,000 tpa NdPr, 150-225 tpa dysprosium, and 50-75 tpa terbium - positioning Energy Fuels as a major U.S. rare earth producer.

In addition to the newly acquired Toliara HMS project, Energy Fuels is advancing the large Donald mineral sands project in Australia through a joint venture with Astron Corporation. A final investment decision on the Donald project is expected as early as 2025.

Energy Fuels also continues to progress its 100%-owned Bahia mineral sands project in Brazil with ongoing drilling and metallurgical test work. A mineral resource estimate for Bahia is anticipated in 2024.

Medical Isotope Strategy Taking Shape

Energy Fuels added an experienced team and separation technology through its August 2024 acquisition of RadTran LLC to support its emerging medical isotope business. RadTran specializes in the separation of isotopes like radium-226 and radium-228 used in targeted alpha therapies for cancer treatment.

The company is utilizing an R&D license to set up a pilot facility for recovering R&D quantities of radium-226 at its White Mesa Mill. This positions Energy Fuels to help address the global shortage of medical isotopes.

Robust Balance Sheet & Inventory

As of September 30, 2024, Energy Fuels had a robust balance sheet with $183 million of working capital, including $47 million in cash, $101 million of marketable securities, $36 million of inventory, and no debt. The company's product inventory had an additional $10 million of market value over its $13 million carrying cost.

Energy Fuels held 1.04 million lbs of U3O8 in inventory at quarter-end, including 235,000 lbs of finished product. Uranium inventories are expected to continue increasing with ramping mine production. The company also held 905,000 lbs of finished vanadium, 38 tonnes of NdPr and 9 tonnes of mixed rare earth carbonate.

Conclusion

Energy Fuels presents a unique investment opportunity as a leading U.S. critical minerals company with an expanding portfolio across the uranium, rare earth elements, heavy mineral sands, vanadium and medical isotope markets. The company is the top U.S. uranium producer with plans to significantly grow low-cost production.

With the suspension lifted on its world-class Toliara project, successful commissioning of rare earth separation, and a growing pipeline of heavy mineral sands projects, Energy Fuels is well positioned to become a major global supplier of critical minerals. The company's robust balance sheet, strengthening fundamentals for uranium and rare earths, and an accomplished operational team further enhance its investment case.

As governments prioritize secure critical mineral supply chains to support the energy transition and other high-tech applications, Energy Fuels is poised to benefit from its integrated operating and development portfolio spanning the U.S. and multiple African jurisdictions. Investors seeking exposure to the critical minerals supercycle should consider Energy Fuels given its attractive long-term growth profile.