Energy Fuels Commencing Vanadium Production; Testing New Approaches to Mining in Tight Vanadium Market
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Energy Fuels Commencing Vanadium Production; Testing New Approaches to
Mining in Tight Vanadium Market
Lakewood, Colorado – September 27, 2018
Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (“Energy Fuels” or the “Company”) is pleased to
announce that the Company expects to resume vanadium production at its 100% owned White Mesa
Mill (the “Mill”) in mid-November 2018, producing significant quantities of salable V2O5 product by the
end of December 2018. When production begins, Energy Fuels will be the newest vanadium producer in
the World and the only primary producer of V 2O5 in North America. In addition, the Company is
currently preparing to conduct a test -mining program that selectively targets high-grade V2O5 resources
at its 100%-owned La Sal Complex of uranium/vanadium mines in Utah, with the goal of significantly
increasing productivity and mined grades and reducing mining costs per pound of V2O5 and U 3O8
recovered.
Energy Fuels’ White Mesa Mill, located near Blanding, Utah, is currently the only facility in the United
States capable of processing conventional mined vanadium resources. As a result, no other company in
the United States is likely to enter primary vanadium production in the near- term, because no other
company has access to the Mill at this time.
Vanadium prices have risen by over 150% in the past year due to a number of factors, including
production cuts and significant increases in demand due to the implementation on November 1, 2018 of
new rebar standards in China that can only be achieved through increased use of vanadium (with limited
substitution). In addition, vanadium demand could increase significantly in the coming years due to the
commercialization of vanadium batteries used in connection with renewable energy generation. As of
September 23, 2018, the mid-point price of V2O5 as reported by Metal Bulletin was $22.63 per pound, as
compared to $9.00 per pound on September 29, 2017.
As previously announced , and starting in November 2018, Energy Fuels expec ts to begin vanadium
production from the pond solutions at the White Mesa Mill, which the Company estimates contain
approximately four (4) million pounds of recoverable V 2O5. Historically, the Mill has been a significant
producer of vanadium, and the Company estimates that the Mill has produced about 45 million pounds
of V2O5 since it was constructed in the early -1980’s, having last produced over 1.5 million pounds of
V2O5 mined from the La Sal Complex in 2013 ( see further update below on the La Sal Co mplex). The
Company has spent the past several months retrofitting and upgrading the Mill’s vanadium recovery
circuit in preparation of this upcoming production run. Once production reaches a steady state , the
Company expects to produce approximately 200,0 00 to 225,000 pounds of V 2O5 per month from the
pond solutions for a period of 16 to 20 months, subject to market conditions, costs, and recoveries .
Further, the Mill has historically produced a relatively high -purity vanadium product, which if achieved
again, offers the potential in today’s market to command a premium above standard V 2O5 prices. The
pond project also offers the Company excellent flexibility, including the ability to turn production on -
and-off quickly and at limited cost, in response to evolving market conditions. While the Mill has never
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to date attempted to commercially recover vanadium dissolved in the ponds, extensive on-site test work
indicates that the project has a high probability for success.
In addition, Energy Fuels is commencing limited conventional vanadium production at its 100% owned
and fully licensed, permitted, and constructed La Sal Co mplex of uranium/vanadium mines in Utah. In
Q4 2008, t he Company expects to begin a test-mining program to evaluate different approaches that
selectively target high -grade vanadium zones, thereby potentially increasing productivity and mined
grades for vanadium and decreasing mining costs per pound of V 2O5 and U3O8 recovered. The Company
also expects to conduct additional exploration and in -fill drilling at the La Sal Complex , with specific
analysis for vanadium, which was not normally done in the past , with the goal of expanding and
upgrading the vanadium resources at this project.
In preparation for this test-mining program, the Company has already completed significant surface and
underground refurbishment at the La Sal Complex, and has re-established services in areas of the mine
complex with the greatest potential to hold high -grade vanadium resources . The Company expects to
commence the test- mining program during Q4 -2018, which is expected to take approximately six (6)
months to complete. If the program is successful and vanadium prices remain strong, the Company may
continue mining beyond the planned campaign.
Historically, the uranium/vanadium mines in the La Sal and Uravan Mineral Districts were mined using
then-available technologies and production methods that focused mainly on recovering the uranium
resources. Th e ore at the La Sal Complex contained vanadium at a historic ratio of roughly 1:5 (the
vanadium concentration five times higher than the uranium concentration). However, the actual
vanadium content was only ultimately known following milling. The Company is actively investigating
above-average grade vanadium areas of mineralization that were not mined in the past due to lower
uranium content. The Company plans to introduce real-time portable XRF technology to better define
areas containing high-grade vanadium resources. The test-mining program announced today is expected
to produce approximately 5,000 tons of mineralized material, which would be further tested and
analyzed at the White Mesa Mill. The Company believes this new approach has the potential to
significantly lower mining costs at the La Sal Complex by selectively targeting the high-grade vanadium
and potentially past un -mined resources. Any new mining approaches developed in this program may
also be applicable to the Company’s other permitted and standby uranium/vanadium m ines in the
region, including the Whirlwind and Rim mines.
Finally, the Company expects to use data gathered from the test- mining program, along with additional
vanadium/uranium focused drilling at the La Sal Complex, to potentially expand and upgrade the
vanadium resources at this project. According to the current March 25, 2014 technical report prepared
in accordance with National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43-
101”), the La Sal Complex contains approximately 1.14 million tons of Measured and Indicated Mineral
Resources with an average grade of 0.94% V 2O5, containing approximately 21.5 million pounds of V 2O5,
along with 0.19 million tons of Inferred Mine ral Resources with an average grade of 0.51% V 2O5,
containing approximately 1.9 million pounds of V2O5.
Mark S. Chalmers, President and CEO of Energy Fuels stated: “When Energy Fuels commences vanadium
production in November, we will be the only primary p roducer of V2O5 in North America. T his position
brings the potential for Energy Fuels to generate significant cash flow in today’s strong vanadium price
environment, especially with the steel industry recovering in the U.S . Further, b ecause we own and
control 100% of the only operating conventional vanadium mill in North America, no other company in
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the region can currently produce vanadium , unless Energy Fuels provides access to the facility , and
currently there are no outstanding commitments. This places Energy Fuels in a truly unique position to
potentially realize significant cash flows from our vanadium assets in today’s tight resource market.
“We believe the commencement of vanadium production from the ponds at the White Mesa Mill is well
timed in today’s strong vanadium market. And, over the longer -term, we are hopeful that today’s real-
time mining technologies will provide for a possible paradigm shift that has the potential to improve the
economics of future vanadium and uranium mining in this well-known and prolific high-grade district.”
John H. White, P.E., Vice President, Technical Services of Energy Fuels Resources (USA) Inc. , 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. Its corporate offices are in Denver, Colorado, and all of its assets and employees are in the
western United States. 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 pounds 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 by -product of its uranium production from certain of its mines on the Colorado Plateau, as market
conditions warrant. The primary trading market for Energy Fuels’ common shares is the NYSE American under the
trading symbol “UUUU”, and the Company’s common shares are al so listed on the Toronto Stock Exchange under
the trading symbol “EFR”. Energy Fuels’ website is www.energyfuels.com.
Cautionary Note Regarding Forward -Looking Statements: Certain information contained in this news release,
including any information relating to: the Company being a leading producer of uranium and vanadium in the U.S. ;
any expectations to resume vanadium production at the Mill; any expectations relating to expected vanadium
recoveries from the Mill pond and cash flows; any expectations relating to the purity of any recovered vanadium
from the Mill ponds and any potential for premiums; any expectations relating to the flexibility to turn vanadium
production from the Mill ponds on or off quickly in the future; any expectations to begin a test -mining program at
the Company’s La Sal C omplex; any expectations relating to potential increases in productivity and mined grades
for vanadium and decreases in mining cost s at the La Sal Complex ; any expect ations to conduct additional
exploration and in- fill drilling at the La Sal Complex and to expand and upgrade the resources at the project; any
expectations to potentially continue mining at the La Sal Complex beyond the planned campaign; any expectations
regarding the market for vanadium and future vanadium prices ; and any other statements regarding Energy Fuels’
future expectations, beliefs, goals or prospects; constitute forward- looking information within the meaning of
applicable securities legislation (collectively, "forward-looking statements"). All statements in this news release that
are not statements of historical fact (including statements containing the words "expects", "does not expect",
"plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled",
"forecast", "budget" and similar expressions) should be considered forward- looking statements. All such forward -
looking statements are subject to important ri sk factors and uncertainties, many of which are beyond Energy Fuels’
ability to control or predict. A number of important factors could cause actual results or events to differ materially
from those indicated or implied by such forward- looking statements, including without limitation factors relating
to: the Company being a leading producer of uranium and vanadium in the U.S. ; any expectations to resume
vanadium production at the Mill; any expectations relating to expected vanadium recoveries from the Mill pond
and cash flows; any expectations relating to the purity of any recovered vanadium from the Mill ponds and any
potential for premiums; any expectations relating to the flexibility to turn vanadium production from the Mill ponds
on or off quickly in the future; any expectations to begin a test -mining program at the Company’s La Sal Complex;
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any expectations relating to potential increases in productivity and mined grades for vanadium and decreases in
mining costs at the La Sal Complex; any expectations t o conduct additional exploration and in- fill drilling at the La
Sal Complex and to expand and upgrade the resources at the project; any expectations to potentially continue
mining at the La Sal Complex beyond the planned campaign; any expectations regarding the market for vanadium
and future vanadium prices; and other risk factors as described in Energy Fuels’ most recent annual report on Form
10-K and quarterly financial reports. Energy Fuels assumes no obligation to update the information in this
communication, except as otherwise required by law. Additional information identifying risks and uncertainties is
contained in Energy Fuels’ filings with the various securities commissions which are available online at
www.sec.gov and www.sedar.com. Forward-looking statements are provided for the purpose of providing
information about the current expectations, beliefs and plans of the management of Energy Fuels relating to the
future. Readers are cautioned that such statements may not be appropriate for other purpo ses. Readers are also
cautioned not to place undue reliance on these forward-looking statements, that speak only as of the date hereof.
Cautionary note to United States investors concerning estimates of measured, indicated and inferred
resources. This news release contains certain disclosure that has been prepared in accordance with the
requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. Unless
otherwise indicated, all reserve and resource estimates inc luded in this news release have been prepared in
accordance with NI 43 -101 and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) classification
system. Canadian standards, including NI 43 -101, differ significantly from the requirements of U.S. securities laws,
and reserve and resource information contained in this news release may not be comparable to similar information
disclosed by companies reporting only under U.S. standards. In particular, the term “resource” does not equate to
the term “reserve” under SEC Industry Guide 7. United States investors are cautioned not to assume that all or
any of Measured or Indicated Mineral Resources will ever be converted into mineral reserves. Investors are
cautioned not to assume that all or any p art of an “Inferred Mineral Resource” exists or is economically or
legally minable. Energy Fuels does not hold any Reserves as that term is defined by SEC Industry Guide 7. Please
refer to the section entitled “Cautionary Note to United States Investors Concerning Disclosure of Mineral
Resources” in the Company’s most recently filed Annual Report on Form 10 -K for further details.
Energy Fuels Inc.
Curtis Moore – VP – Marketing & Corporate Development
(303) 974-2140 or Toll free: (888) 864-2125
www.energyfuels.com