Energy Fuels' Strategy: Former GM Executive Joins, Separated NdPr Finished & Packaged at White Mesa Mill

• Energy Fuels welcomes Debra Bennethum, former GM Critical Minerals Manager, as Director of Critical Minerals & Strategic Supply Chain
• Company achieves commercial production of separated rare earth elements at White Mesa Mill
• Production capacity of 850-1,000 tonnes of separated NdPr annually
• Q2 2024 expected production: 25-35 tonnes of 'on spec' separated NdPr
• Energy Fuels diversifying beyond uranium into rare earths, targeting EV and renewable energy markets

Energy Fuels Strengthens Rare Earth Position with Key Hire and Production Milestone

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) is a leading U.S.-based uranium and critical minerals company. As a premier uranium producer in the United States, Energy Fuels mines uranium and produces natural uranium concentrates for major nuclear utilities, supporting carbon-free nuclear energy production. The company has recently expanded its portfolio to include rare earth elements (REEs), commencing production of mixed REE carbonate in 2021 and achieving commercial production of separated REEs in 2024. Energy Fuels also produces vanadium and is exploring the recovery of radionuclides for cancer treatments. With its key assets including the White Mesa Mill in Utah and the Nichols Ranch ISR Project in Wyoming, Energy Fuels is strategically positioned to capitalize on the growing demand for both traditional and emerging critical minerals.

Strategic Hire Bolsters Rare Earth Ambitions

In a significant move to advance its rare earth business, Energy Fuels has announced the appointment of Debra Bennethum as Director, Critical Minerals & Strategic Supply Chain. This strategic hire brings a wealth of experience from the automotive industry, particularly in the electric vehicle (EV) sector, to Energy Fuels' management team.

Debra Bennethum joins Energy Fuels with an impressive background in the automotive industry, specifically in critical minerals and EV supply chains. As a chemical engineer, she previously served as the EV Critical Minerals Manager in General Motors' Global Purchasing and Supply Chain Division. At Energy Fuels, Bennethum is expected to play a crucial role in the company's rare earth element sales and marketing initiatives. Her responsibilities will include:

1. Cultivating relationships with original equipment manufacturers (OEMs) and other customers
2. Negotiating supply, offtake, and other agreements for REE products
3. Evaluating REE collaborations in metal-making, alloying, and magnet-making
4. Assisting in evaluating and pursuing government funding and other support

The addition of Bennethum to the Energy Fuels team is a strategic move that signals the company's serious intentions in the rare earth market. Her extensive experience in the automotive industry, particularly with EVs and critical minerals, positions Energy Fuels to better understand and cater to the needs of potential customers in these rapidly growing sectors.

Mark S. Chalmers, President and CEO of Energy Fuels, emphasized the significance of this hire, stating, "Ms. Bennethum's decision to join Energy Fuels is a significant 'vote of confidence' in our rare earth plans going forward."

This sentiment underscores the company's commitment to becoming a major player in the rare earth supply chain, particularly for the automotive and renewable energy sectors.

Commercial Production Milestone at White Mesa Mill

Concurrent with the announcement of Bennethum's appointment, Energy Fuels revealed a significant operational milestone: the achievement of commercial production of 'on spec' separated rare earth elements at its White Mesa Mill in Utah.

Production Capacity & Specifications

The company's new "Phase 1" REE separation circuit at the White Mesa Mill boasts an impressive capacity:

• Annual production of 850 to 1,000 metric tons of separated neodymium-praseodymium (NdPr)
• Energy Fuels believes this makes it one of the largest commercial REE separation circuits outside of China

Q2 2024 Production Outlook

For the second quarter of 2024, Energy Fuels projects:

• Production of 25 to 35 tonnes of 'on spec' separated NdPr
• Additional production of a "heavy" REE concentrate containing approximately:
  • 1,500 kilograms of dysprosium (Dy)
  • 400 kilograms of terbium (Tb)

Future Plans for Heavy REE Concentrate

Energy Fuels intends to use all or part of the heavy REE concentrate for pilot-scale test work. This initiative aims to design, permit, and construct commercial separation facilities for dysprosium, terbium, and potentially other rare earth elements at the Mill in the coming years.

Significance of Rare Earth Production

The commencement of commercial rare earth production marks a pivotal moment for Energy Fuels, diversifying its product portfolio beyond uranium and vanadium. This expansion into rare earths positions the company to capitalize on the growing demand for these critical minerals, particularly in the electric vehicle and renewable energy sectors.The ability to produce separated NdPr is especially noteworthy, as these elements are crucial components in the production of permanent magnets used in electric vehicle motors and wind turbines. By establishing domestic production of these critical materials, Energy Fuels is contributing to the security and resilience of the U.S. supply chain for clean energy technologies.

Integrated Rare Earth & Uranium Production

Energy Fuels' operations are uniquely characterized by the company's ability to advance its rare earth business while simultaneously maintaining its uranium production capabilities. This integrated approach offers several advantages, including diversification of revenue streams, efficient utilization of existing infrastructure at the White Mesa Mill, flexibility to respond to market demands for both uranium and rare earth elements, and potential for synergies in processing and recovery of multiple critical minerals. The company's plan to shift operations to processing inventoried uranium ores and alternate feed materials for the remainder of the year, after the current REE campaign, demonstrates this operational flexibility.

Energy Fuels' recent developments in rare earth production and strategic hiring position the company favorably in the critical minerals market. As one of the few producers of separated rare earth elements outside of China, Energy Fuels is well-positioned to meet the growing demand for secure, domestic supply chains. With Bennethum's expertise, the company is strategically targeting the rapidly growing electric vehicle and renewable energy markets. The ability to produce uranium, rare earth elements, and vanadium provides multiple avenues for growth and helps mitigate market risks.

The company's plans for pilot-scale work on heavy rare earth elements suggest further growth opportunities in the rare earth sector. Additionally, as critical minerals gain strategic importance, Energy Fuels may benefit from government initiatives aimed at securing domestic supply chains. These factors collectively contribute to Energy Fuels' strong market position and significant growth potential in the critical minerals industry.

Conclusion

For investors considering Energy Fuels, the company presents an intriguing opportunity in the critical minerals sector. The recent developments in rare earth production, coupled with the strategic hire of Debra Bennethum, demonstrate Energy Fuels' commitment to diversification and growth beyond its traditional uranium business. Key investment considerations include:

• Market Position: Energy Fuels is establishing itself as a leading domestic producer of both uranium and rare earth elements in the United States.
• Growth Potential: The rare earth market, particularly for elements used in EVs and renewable energy, presents significant growth opportunities.
• Operational Flexibility: The company's ability to produce multiple critical minerals provides resilience against market fluctuations.
• Strategic Relationships: The addition of Bennethum could lead to valuable partnerships in the automotive and clean energy sectors.
• Supply Chain Security: As a domestic producer, Energy Fuels is well-positioned to benefit from initiatives aimed at securing critical mineral supply chains.

Investors should still consider the inherent risks in the mining and processing sector, including market price volatility for critical minerals, regulatory challenges, and the capital-intensive nature of expanding production capabilities. Energy Fuels' recent moves suggest a company actively positioning itself for growth in the evolving critical minerals landscape. For investors seeking exposure to both the nuclear energy sector and the emerging technologies driving the clean energy transition, Energy Fuels offers a unique value proposition worth careful consideration.