Energy Fuels Transforms into Diversified U.S. Critical Minerals Powerhouse with Acquisition of Base Resources

• Energy Fuels closes acquisition of Australia's Base Resources, securing the world-class Toliara rare earth project in Madagascar
• Positions Energy Fuels to become a leading global producer of rare earth elements, titanium, zirconium, and uranium
• Toliara project to provide low-cost rare earth minerals that Energy Fuels will process into advanced products at its Utah facility
• Rare earths are critical for clean energy technologies like EVs, wind turbines, and defense applications
• Acquisition brings Base Resources' proven mine development and operations team to Energy Fuels

About Energy Fuels

Energy Fuels is the leading US-based critical minerals company focused on the responsible production of rare earth elements, uranium, titanium, zirconium, vanadium and medical isotopes. Headquartered near Denver, Colorado, Energy Fuels owns and operates several uranium mines and projects in the western United States, including the only fully licensed and operating conventional uranium mill in the country - the White Mesa Mill in Utah.

Over the past few years, Energy Fuels has been the top producer of uranium in the U.S., providing the fuel for carbon-free nuclear energy. The company is now leveraging its expertise and assets to also produce the critical minerals needed for clean energy technologies, electric vehicles, wind turbines, advanced electronics and defense applications. Energy Fuels is restoring essential U.S. critical mineral supply chains and processing capabilities to support clean energy, economic security, and national defense.

Toliara Project & Rare Earth Strategy

With the acquisition of Base Resources, Energy Fuels has secured access to one of the world's premier undeveloped mineral sands projects - the Toliara project in Madagascar. Toliara contains high-grade and high-quality titanium, zirconium and rare earth minerals with a projected long mine life. A definitive feasibility study has demonstrated robust economics for producing titanium and zirconium, with a prefeasibility study showing the potential to also produce a monazite rare earth stream.

The monazite from Toliara, along with monazite Energy Fuels plans to produce from its Bahia project in Brazil and Donald project joint venture in Australia, will feed Energy Fuels' White Mesa Mill. The mill has already demonstrated the ability to process monazite and separate it into advanced rare earth products like NdPr (neodymium-praseodymium) oxide used in EVs and wind turbines.

Over the next 2-4 years, Energy Fuels plans to develop and commission the Toliara, Bahia and Donald mineral sands projects. At full production, they could provide sufficient monazite feedstock for Energy Fuels to produce 4,000-6,000 tonnes of separated NdPr and 200-300 tonnes of dysprosium and terbium per year, making it one of the largest non-Chinese rare earth producers. Energy Fuels is already designing and licensing an expansion of its rare earth processing capabilities at the White Mesa Mill to match this monazite supply.

Titanium, Zirconium & Uranium Production

In addition to rare earths, the mineral sands projects will generate significant quantities of titanium and zirconium minerals. These will provide Energy Fuels with an additional profitable product stream, positioning it as a major global supplier. Meanwhile, the company will continue ramping up uranium production at its U.S. mines and the White Mesa Mill to maintain its position as the leading domestic uranium producer.

Proven Management & Operational Expertise

Beyond the high-quality assets, the Base Resources acquisition brings a proven management and operations team to Energy Fuels. Base successfully developed the Kwale mineral sands mine in Kenya and has run it profitably for many years, demonstrating the technical expertise to design, construct and operate world-class mineral sands operations.

The Investment Thesis for Energy Fuels

For investors, Energy Fuels presents a unique opportunity to gain exposure to the critical minerals essential for the clean energy transition, as well as uranium needed for carbon-free baseload power, all from a leading US-based producer.

The acquisition of Base Resources and its Toliara project is truly transformative for Energy Fuels. It provides the company with access to low-cost and large-scale sources of rare earth minerals along with titanium and zirconium. With a clear development path, these new projects significantly derisk and strengthen Energy Fuels' strategy to restore critical mineral supply chains in the U.S.

Once in production, the Toliara, Bahia and Donald mineral sands projects are expected to generate robust cash flow from both traditional titanium-zirconium products as well as rare earth minerals. The company will control its supply chain and costs by processing the rare earth monazite at its White Mesa Mill in Utah. This integrated mine-to-magnet strategy sets Energy Fuels apart from other Western rare earth companies.

Uranium also remains a key part of the story. With uranium markets in a structural deficit and nuclear power gaining recognition as a critical clean energy source, Energy Fuels is well positioned as the top U.S. producer with a pipeline of low-cost scalable projects.

Key Takeaways

The key takeaways from Energy Fuels' acquisition of Base Resources are:

• Secures a world-class rare earth and critical mineral asset in the Toliara project to feed Energy Fuels' U.S. processing capabilities
• Significantly boosts Energy Fuels ability to restore U.S. rare earth and critical mineral supply chains essential for clean energy, economic and national security
• Positions Energy Fuels to become a leading global supplier of rare earths, titanium, zirconium and uranium
• Creates a powerful vertical integration from secure mineral resources to advanced rare earth products
• Brings Base Resources' proven management and operational expertise in mineral sands to Energy Fuels

In short, with this acquisition Energy Fuels has put together the key pieces to become a major diversified critical minerals company for the U.S. and a leading global rare earth producer, all while maintaining its position as the premier U.S. uranium company. This strategic transformation looks set to create significant value for investors while bolstering U.S. economic and national security.