EFR.TO · 2017-05-05 12:00:00

Energy Fuels Announces Q1-2017 Results

Financials

Lakewood, Colorado – May 5, 2017

Energy Fuels Inc. ( NYSE MKT:UUUU; TSX:EFR) (“Energy Fuels” or the “Company”) , today reported its

financial results for the quarter ended March 31, 2017 . The Company’s q uarterly report on Form 10 -Q

has been filed with the U.S. Securities and Exchange Commission (“SEC”) , and may be viewed on the

Electronic Document Gathering and Retrieval System (“E DGAR”) at www.sec.gov/edgar.shtml , on the

System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com, and on the

Company’s website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in US

dollars.

Financial Highlights:

• At March 31, 2017, the Company had $ 23.8 million of working capital, including cash and cash

equivalents of $12.2 million and approximately 550,000 pounds of uranium concentrate inventory.

• 60,000 pounds of U3O8 sales were completed by the Company at an average realized price of $58.28

per pound, pursuant to a long-term contract.

• Uranium production totaled 92,000 pounds of U3O8 during the quarter.

• Q1 had lower sales volume due to the timing of contract sales. On April 1, 2017, the Company

delivered 200,000 lbs. into long-term sales contracts and over $13 million was collected.

• $3.8 million of total revenue was realize d by the Company. The Company began fulfilling a t oll

processing contract which is expected to result in $6.50 million of revenue for 2017, of which $0.26

million was realized by the Company during Q1-2017.

Stephen P. Antony, Energy Fuels’ President and CEO stated: “Energy Fuels continues to enjoy

meaningful insulation from price weakness in the uranium spot market. Our contract sales and other

sources of revenue enable the Company to maintain a strong working capital position and overall

balance sheet. In addition, Energy Fuels is likely to become the largest uranium producer in the U.S. in

2017, based on published company guidance. We are proud to take the position as the largest uranium

producer in the U.S., especially during a time when our industry demands high degrees of efficiency.”

Key Developments:

On March 22, 2017, the Company completed all licensing and permitting for the Jane Dough property,

which is a part of the Nichols Ranch ISR Project. The Company now has all licenses and permits required

to commence production at the Jane Dough property, including approvals from the U.S. Environmental

Protection Agency (“EPA”), the U.S. Nuclear Regulatory Commission (“NRC”), and the State of Wyoming.

The Company is currently producing uranium from Nichols Ranch, which contains 13 wellfields, of which

nine are currently in production and four are expected to be developed in the future based on market

conditions. The Jane Dough property is expected to accommodate 22 wellfields, which are expected to

be developed after all 13 wellfields at the Nichols Ranch property are in production.

The Company substantially completed shaft-sinking and underground drilling operations at its Canyon

Mine in March 2017. We c ontinue to receive the results from the underground drilling campaign , and

samples assayed to date indicate the presence of high-grade uranium and copper mineralization. The

Company expects to release an updated resource estimate for the Canyon Project later in 2017.

On March 31, 2017, the Company announced that Mark Chalmers had been appointed as the

Company’s President and Chief Operating Officer effective July 1, 2017, with Stephen Antony continuing

as Chief Executive Officer. In addition, two members of the Company’s Board of Directors , Mr. Glenn

Catchpole and Mr. Ron Hochstein, will not stand for re-election.

Mr. Antony continued: “ Our operations continued to perform to high standards. We brought a new

cost-efficient, in -situ recovery (ISR) wellfield online at Nichols Ranch in March, and head -grade and

production volumes are rising. We also prudently finished other key permitting and development

activities during Q1-2017. We completed permitting for the Jane Dough wellfields at the Nichols Ranch

Project. As a result, we now have 26 permitted wellfields and significant ISR resources in front of us at

Nichols Ranch that we can place into production in the future. We now have a valuable permitted asset

in hand, and that cash requirement has stopped. We also now have substantially finished the production

shaft and underground drilling at the Canyon Mine during Q1 -2017, where we have encoun tered large

areas of high-grade uranium and copper mineralization. W e believe we have significantly increased the

size of the uranium resource at the Canyon Mine. This should translate into low overall costs per pound,

in-line with the lowest cost conventional uranium mines operating in the world today. Monetizing the

copper will further reduce our uranium cost -per-pound. Completion of these milestones has resulted in

a reduction in the workforce and a significant reduction in cash outlays at the Canyon Mine during the

evaluation time period . Nichols Ranch and the Canyon Mine , along with the fully -permitted Alta Mesa

Project now on standby, are ideally positioned to quickly increase the Company’s low -cost uranium

production in improving markets.”

Selected Summary Financial Information:

$000, except per share data

Three months

ended

March 31, 2017

Three months

ended

March 31, 2016

Results of Operations:

Total revenues 3,756$ 17,996$

Gross profit 1,685 5,853

Net loss attributable to the company (10,508) (8,808)

Basic and diluted loss per share (0.15) (0.19)

$000's

As at March 31,

2017

As at December 31,

2016

Financial Position:

Working capital 23,821$ 24,023$

Property, plant and equipment 36,126 37,582

Mineral properties 92,380 92,625

Total assets 196,455 196,457

Total long-term liabilities 48,940 46,487

Operations and Sales Outlook:

The Company plans to extract and/or recover uranium from the following sources in 2017 (each of

which is more fully described below):

1) Nichols Ranch ISR Project; and

2) Alternate feed materials and pond returns at the Mill

Our planned operations are expected to produce finished uranium in excess of our existing

requirements under our sales contracts.

Extraction and Recovery Activities - Overview

The Company expects to produce 675, 000 pounds in the year ending December 31, 2017 of which

92,000 pounds U3O8 were produced in the first three months of the year. We had previously forecasted

total production for the year ending December 31, 2017 of 800,000 pounds of U 3O8. The lower

production amount is due to expected lower initial recoveries of pond returns of 25,000 pounds of U3O8,

a delay in receipt of certain alternate feed materials of 50,000 pounds of U3O8, which are now expected

to be received in 2018, and lower than expected recoveries at our Nichols Ranch Project.

Extraction and Recovery - ISR Uranium Segment

We expect to extract and recover approximately 300,000 pounds of U3O8 from our Nichols Ranch Project

for the year ending December 31, 2017, of which 58,000 pounds were recovered in the first three

months of the year.

At March 31, 2017, the Nichols Ranch wellfields had nine header houses extracting uranium. The ninth

header house began extracting uranium in March 2017. Until such time that improvement in uranium

market conditions is observed or suitable sales contracts can be entered into, the Company intends to

defer development of further header houses at its Nichols Ranch project.

Extraction and Recovery – Milling Operations

The Company expects to recover approximately 375,000 pounds of U 3O8 during the year ending

December 31, 2017 at the Mill, including approximately 275,000 pounds of U3O8 from dissolved uranium

not recovered from previous processing in the mill tailings management system (“Pond Return”) and

approximately 100,000 pounds of U3O8 from alternate feed sources. In the first three months of the year

the White Mesa Mill recovered 34,000 pounds of these amounts.

In addition, during 2017, the Company expects to earn a fee for processing approximately 1.0 million

pounds of U3O8 contained in alternate feed materials at the Mill, returning all finished uranium product

to the generator of the feed material. During the three months ended March 31, 2017, the Company

began the recovery process and completed processing of 39,000 pounds of this material.

Shaft sinking and evaluation of the Canyon Project

The Company completed shaft sinking and underground evaluation drilling activities in March 2017 at

the Canyon Project.

The Company is actively processing and reviewing the drilling results in order to define the

mineralization, develop mine plans and evaluate the Mill’s ability to recover a salable copper product

from the significant copper mineralization the Company has identified. Through evaluation activities

completed to date, the Company has identified zones of high -grade uranium and copper mineralization

within the deposit. The Company is evaluating the potential for recovering copper at its White Mesa Mill

as a value-added byproduct along with the recovery of uranium. The Company plans to issue an updated

NI 43-101 compliant resource estimate in the second half of 2017.

The timing of the Company’s plans to mine and process mineralized materials from the Canyon Project

will be based on the results of this additional evaluation work, along with market conditions and

available financing.

Other operational activities

Permitting of the Jane Dough Property, which is adjacent to Nichols Ranch, was completed in March

2017.

In January 2017, the Company obtained the necessary permits to mine the open pit and underground

resources of its Sheep Mountain Project in Wyoming.

The Company is continuing to pursue cost cutting initiatives, including the potential sale or

abandonment of certain non-core properties and the sale of excess mining equipment and other assets.

Sales of U3O8 and other revenue update and outlook

In 2017, the Company expects to complete deliveries of 520,000 pounds of U 3O8 under four contracts,

including 320,000 pounds under three long- term contracts and 200,000 pounds under a contract where

the price is based on the average spot price per pound of uranium for the five weeks prior to the dates

of delivery. Of these deliveries, 120,000 pounds represent the final de liveries under one of these

contracts. The Company is currently monitoring market conditions for additional sales opportunities.

Selective additional spot sales may be made as necessary to generate cash for operations and

development activities.

During the three months ended March 31, 2017, 60,000 pounds of the above amounts were delivered to

a customer under one of the long-term contracts.

During the year ending December 31, 2017, the Company expects to earn approximately $6.50 million in

toll revenue for processing certain alternate feed materials for a third party of which $0.26 million was

earned in the first three months of 2017. The Company also continues to pursue new sources of

revenue, including additional alternate feed materials, toll processing o f alternate feed materials and

other sources of feed for the Mill. A significant focus will be placed on participating in the clean -up of

abandoned uranium mines, either on the Navajo Nation or in the Four Corners region.

Stephen P. Antony, P.E., President & CEO of Energy Fuels , is a Qualified Person as defined by Canadian

National Instrument 43 -101 and has reviewed and approved the technical disclosure contained in this

news release.

About Energy Fuels : Energy Fuels is a leading integrated US -based uranium mining company, supplying U 3O8 to

major nuclear utilities. Energy Fuels holds three of America’s key uranium production centers, the White Mesa Mill

in Utah, the Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in Texas. The White Mesa Mill

is the only conventional uranium mill operating in the U.S. today and has a licensed capacity of over 8 million

pounds of U3O8 per year. The Nichols Ranch Processing Facility is an ISR production center with a licensed capacity

of 2 million pound s of U 3O8 per year. Alta Mesa is an ISR production center currently on care and maintenance.

Energy Fuels also has the largest NI 43 -101 compliant uranium resource portfolio in the U.S. among producers, and

uranium mining projects located in a number of Western U.S. states, including one producing ISR project, mines on

standby, and mineral properties in various stages of permitting and development. The Company also produces

vanadium as a co -product of its uranium production f rom certain of its mines on the Colorado Plateau, as market

conditions warrant. The Company’s common shares are listed on the NYSE MKT under the trading symbol “UUUU”,

and on the Toronto Stock Exchange under the trading symbol “EFR”.

ADDITIONAL NON-US GAAP FINANCIAL PERFORMANCE MEASURES

The Company has included the additional non -US GAAP measure “Gross Profit” in the financial statements and in

this news release. Management notes that “Gross Profit” provides useful information to investors as an indication

of the Company’s principal business activities before consideration of how those activities are financed, sustaining

capital expenditures, corporate and exploration and evaluation expenses, finance income and costs, and taxation.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This news release contains certain “Forward Looking Information” and “Forward Looking Statements” within the

meaning of applicable Canadian and United States securities legislation, which may include, but is not limited to,

statements with respect to : production, revenue and sales forecasts; the Company’s expectations as to the

evaluation and preparation of a revised NI 43 -101 Report for the Canyon Project; expectations that drill results at

the Canyon Project could result in an expansion of the previ ously estimated mineral resource and/or identification

of a significant copper resource; whether all or a portion of any copper resource at the Canyon Project can be

recovered at the White Mesa Mill or elsewhere; expectations relating to mining costs at the Canyon Project and the

performance of wellfields at the Nichols Ranch Project; scalability, and the Company’s ability and readiness to re-

start or expand any of its existing projects to respond to any improvements in uranium market conditions; the

expectation that the Company will earn a reasonable margin on any of its alternate feed material or other

processing activities; the ability of the Company to secure any new sources of alternate feed materials or other

processing opportunities at the White Mesa Mill; the ability of the Company to manage its activities and assets

conservatively under current market conditions while maintaining its uranium resource base and recovery

capabilities; the ability of the Company to enjoy some insulation from spot market weakness; the ability of the

Company to enter into suitable sales contracts in the future; expected timelines for the permitting and development

of projects; mineral resource estimates; the Company’s expectations as to longer term fundamentals in the marke t

and price projections; the Company’s expectations as to expenditures and cost reductions; and expectations to

become or maintain its position as a leading uranium company in the United States. Generally, these forward-

looking statements can be identified by the use of forward- looking terminology such as “plans”, “expects” “does

not expect”, “is expected”, “is likely”, “budget” “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”,

“does not anticipate”, or “believes”, or variations of such words and phrases, or state that certain actions, events or

results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “have the potential to”. All

statements, other than statements of historical fact, herein are considered to be for ward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause

the actual results, performance or achievements of the Company to be materially different from any future results,

performance or achievements express or implied by the forward- looking statements. Factors that could cause

actual results to differ materially from those anticipated in these forward- looking statements include risks

associated with: production, revenue and sales forecasts; the Company’s expectations as to the evaluation and

preparation of a revised NI 43 -101 Report for the Canyon Project; expectations that drill results at the Canyon

Project could result in an expansion of the previously estimated miner al resource and/or identification of a

significant copper resource; whether all or a portion of any copper resource at the Canyon Project can be recovered

at the White Mesa Mill or elsewhere; expectations relating to mining costs at the Canyon Project and the