Energy Fuels Resumes Vanadium Production; Launches Initiatives to Boost Readiness for Potential Uranium Market Improvement ; Provides 2019 Guidance
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Energy Fuels Resumes Vanadium Production; Launches Initiatives to Boost
Readiness for Potential Uranium Market Improvement ; Provides 2019 Guidance
Lakewood, Colorado – January 7, 2019
Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (“Energy Fuels” or the “Company”) , a leading
producer of uranium and vanadium in the United States , is pleased to anno unce that it has resumed
vanadium pro ductio n at its 100%-owned White Mesa Mill (the “Mill”), making the Company the newest
producer in the World able to r espond to today’s vanadium market strength . The Company is also
pleased to anno unce that it has launched a number of key initiatives intended to boost the ability of the
Company to quickly and effectively increase uranium production in response to improved uranium
market conditions that may result from the ongoing Section 232 uranium investigation in the United
States or improvement in glo bal market fundamentals . Finally, the Company provides uranium and
vanadium production and sales guidance for 2019.
Vanadium Production Resumes
In December 2018, the Company commenced a campaign to recover vanadium pentoxide (“ V2O5”) from
existing tailings pond solutions at the Company’s White Mesa Mill , which result from past m ineral
processing o peratio ns. I n early January 2019 , the Company produced its first batches of vanadium
concentrate, also known as “black flake”. This is Energy Fuels’ first vanadium production since 2013, and
the first time the Company has recovered vanadium from tailings pond solutions at the Mill. The
Company is also pleased to announce that the first batches of “black flake” are of excellent quality and
purity, and believed by the Company to meet or exceed the commercial specifications of potential
buyers of high quality finished vanadium product. The Mill is the only operating conventional uranium
and vanadium production facility in the United States and is highly strategic , as uranium and vanadium
are two (2) of the thirty -five (35) “mineral commo dities considered critical to the econo mic and natio nal
security of the United States”, according to the Final List of Critical Minerals published by the U.S.
Government in May 2018.
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V2O5 “black flake” Produced at the White Mesa Mill in January 2019
The Company intends to continue to ramp-up vanadium pro ductio n from this campaign during Q1-2019,
and at this time expects to achieve f ull production rates of 200,000 to 225,000 pounds of V 2O5 per
month by the end of the quarter, subject to continued successful ramp- up, suitable sales prices, and
market conditions.
As previously anno unced, the Co mpany estimates there are up to four (4) million pounds of recoverable
vanadium dissolved in these Mill pond solutions. The Company had originally intended to commence
this campaign in November 2018, but elected to delay comm encement to December 2018 in order to
accommodate additional uranium production at the Mill.
Enhanced Uranium Production Readiness and Scalability
The Company also expects to launch a number of key initiatives in 2019 intended to enhance the
Company’s a bility to more quickly and effectively respo nd to improved uranium market conditio ns that
may result from the ongoing Section 232 uranium investigation in the United States or improvements in
global uranium market fundamentals . During 2019, t he Company pla ns to invest a total of
approximately $4.2 million in initiatives at the following projects:
• La Sal Complex : The Company expects to continue the current test-mining program targeting
vanadium at the fully-permitted La Sal mine. The Company is also planning to begin refurbishing and
potentially test-mining a second uranium/vanadium mine within the La Sal Complex, the fully-
permitted Pandora mine. The La Sal and Pandora properties are individual mines within the
Company’s 100%-owned La Sal Complex , which is a series of several past -producing
uranium/vanadium mines along an 11- mile east -west mineral trend located in eastern Utah. The
purpose of the test-mining program is to evaluate different mining approaches that selectively
target high-grade vanadium zones, thereby potentially increasing productivity and mined grades for
vanadium and decreasing mining costs per po und of V2O5 and U3O8 recovered. As previously
announced on October 24, 2018, the Company had identified and mined zones of mineralization
that averaged 1.67% V2O5 and 0.10% U3O8 over approximately 420 tons of material from areas that
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were mined in the past. As of December 31, 2018, the Company had mined over 3,000 tons of
material. The Company expects to provide the market with f urther updates on this program in Q1-
2019, and depending on market conditions and continued positive results, the Company may decide
to expand and extend the project. In additio n, the Company expects to complete a surface and
undergro und drilling program at the La Sal Complex in 2019. The purpose of the drilling program is
to potentially expand the uranium and/or vanadium resources, and to provide additional data for a
possible update to the existing March 25, 2014 technical report on the La Sal Complex.
• Nichols Ranch ISR Project : The Company has purchased and expects to install new ion exchange
capacity, and upgrade other equipment , at the Company’s 100% owned Nichols Ranch in situ
recovery (“ ISR”) Plant in Wyoming . These upgrades will increase flow capacity thro ugh the plant ,
and are thereby expected to reduc e operating costs per pound and significantly increase the
uranium production capacity of Nichols Ranch.
• Alta Mesa ISR Project : The Company expects to complete a 200-hole surface drilling program at the
Company’s 100%-owned Alta Mesa ISR Project in South Texas , in order to increase and upgrade the
uranium resources and extend the life-of-mine production profile of this project .
• Canyon Mine : The Company expects to continue to evaluate the copper metallurgy and perform
other development work at this key low-cost uranium and copper project .
Mark S. Chalmers, President and CEO of Energy Fuels, stated: “We have officially resumed vanadium
production at our White Mesa Mill in Q4 -2018, and we have produced o ur first batches of V 2O5 ‘black
flake’ from this campaign. Further, we are extremely pleased with the quality and purity of our initial
batches of finished vanadium product. Energy Fuels i s the newest vanadium pro ducer in the World to
respond to today’s relative market strength , and we are now one of the only vanadium producer s in
North America. I also wish to recognize all of our personnel at the White Mesa Mill, who worked
diligently arou nd-the-clock over the past several weeks in order to make this project a success. I couldn’t
be prouder of their professionalism and commitment.
“We expect to continue to ramp -up vanadium productio n in the coming weeks. Even though current
vanadium prices of $15.50 per pound have dropped off of their November 2018 highs of $28.75 per
pound, markets remain strong and have stabilized in recent weeks . Vanadium markets can be extremely
volatile, but we believe th e relative strength we’re seeing in today’s vanadium market is likely to
continue thro ughout 2019, and potentially into 2020. Energy Fuels should be able to generate
substantial revenue under current and expected vanadium market conditio ns. In additio n, now that we
have upgraded the Mill’ s vanadium circuit and proven- up the chemistry required to process the tailings
solutions, we can be extremely flexible in our current and future vanadium pro ductio n. We now have
the ability to halt , and later resume, vanadium production from po nd solutio ns within a matter of days
and at little to no cost to us in response to evolving market conditio ns . While our initial results are
outstanding, we expect to continue to refine o ur processes to potentially improve purities and product
quality to even higher standards. We plan to provide the markets with further updates o n vanadium
production throughout 2019.
“We are also investing in important critical-path items at our low -cost, operating , and standby uranium
projects. These investments will put these projects in the very best position to resume – and increase –
production very quickly, as uranium prices are expected to increase due to the ongoing Section 232
investigatio n into uranium impo rts into the U.S., or through generally improved global uranium market
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conditio ns. When the ‘starting-gun’ goes off, Energy Fuels plans to be among the very first companies to
ramp-up production in an improved market .”
2019 Uranium Production and Sales Gu idance
As a result of current uranium market conditions, both ISR and conventional uranium recovery are being
maintained at reduced levels until such time as market conditio ns improve sufficiently, either as a result
of potential relief under the ongoing Section 232 investigation or thro ugh improved market
fundamentals. During 2019, the Company expects to produce approximately 50,000 to 125,000 pounds
of U 3O8, of which approximately 50,000 to 75,000 pounds are expected to be produced from its Nichols
Ranch ISR Project as it winds down into standby mo de, pending expected improvements in uranium
market conditions . In addition , subject to further process test work, up to 50,000 po unds of uranium
could be recovered from pond solutio ns at the Mill, during the va nadium processing campaign discussed
above. This is expected to be the only source of uranium pro ductio n from the Mill in 2019, due to the
Mill’s expected focus on vanadium.
Further, the Company has entered into no uranium sales commitments in 2019; ther efore, all 2019
uranium production is expected to be added to existing inventories. Energy Fuels ’ significant uranium
inventory provide s the Company with financial flexibility, and the Company believes its existing
inventories and new production may be wor th significantly more in the future. However, if suitable
uranium price increases are observed in 2019, or if cash needs arise, the Company may elect to
complete some discretionary uranium sales in 2019. The Company also expects to stockpile alternate
feed materials and/or other uranium -bearing materials at the Mill during 2019 for future processing
campaigns.
2019 Vanadium Production and Sales Guidance
As previo usly anno unced, the Company currently estimate s that a total volume of up to four (4) million
pounds of recoverable vanadium is dissolved in the Mill’s tailings pond solutio ns . As stated above, the
Company currently expect s to achieve full production rates of 200,000 to 225,000 pounds of V2O5 per
month during Q1-2019. The Company expects this production to occur throughout 2019 , and through at
least half of 2020, subject to continued successful ramp -up, including acceptable sales prices and market
conditio ns. Further, while the Company expects vanadium prices to support vanadium pro ductio n
throughout the campaign, in the event vanadium prices or sales opportunities drop to unsuitable levels,
the Co mpany has the ability to halt production at its discretio n within a very short period of time and at
little to no c ost, thereby preserving this vanadium inventory for future recovery.
As the campaign continues, the Company expects to sell its vanadium product within one to three
months of production. At the current time, the Co mpany has not entered into any agreement s for the
sale of vanadium in 2019, as the Company carefully ramps -up pro ductio n and ensures that its vanadium
product meets all commercial specifications . However, now that the Company believes its vanadium
production and product quality have been confirm ed, the Company expects to enter into vanadium
sales agreements in the coming weeks.
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 (“NI 43-101”) and has reviewed and approved the technical
disclosure, including sampling, analytical, and test data underlying the information, contained in this news release.
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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 along with its ura nium 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 also 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 about uranium and vanadium recovery rates and expected pounds of uranium and vanadium that
may be recovered at the White Mesa Mill; any expected total amount of contained vanadium in the Mill’s pond
solutions and expected vanadium and uran ium recoveries from such solutions ; any expectations relating to the
continued successful ramp-up of the Mill pond vanadium recovery campaign, including acceptable costs, recoveries,
product quality, and market conditions; any expectation that vanadium pro duction at the Mill may enable the
Company to generate substantial revenue under current market conditions; any expectations that current
vanadium prices may continue throughout 2019 and potentially into 2020; any expectation that the Company’s key
initiatives may boost the ability of the Company to quickly increase uranium production in response to improved
uranium market conditions; any expectation that improved uranium market conditions may result from the
ongoing Section 232 uranium investigation in the United States or from improvement in global market
fundamentals; any expectation that the Company plans to expand or extend the test mining program at its La Sal
Complex; any expectations relating to potential increases in productivity and mined grades fo r vanadium and
decreases in mining costs at the La Sal Complex or any other mines as a result of the test -mining program; any
expectation that the Company plans to conduct additional surface exploration drilling that targets high- grade
vanadium at the La S al Complex, whether any such drilling may increase resources and whether or not the
Company may update its NI 43 -101 Technical Report on the La Sal Complex; any expectation that the planned
upgrades at Nichols Ranch may increase flow capacity through the plant, thereby reducing operating costs per
pound and significantly increasing the production capacity of Nichols Ranch; any expectation that the planned
drilling program at Alta Mesa may increase and upgrade the uranium resources and extend the life -of-mine
production profile of that project; any expectations about potential copper recoveries from resources mined from
the Canyon mine or the expected costs of production at that mine or any of the Company’s other mines ; any
expectations relating to the Company’s uranium and vanadium production and sales guidance for 2019; any
expectation that the Company’s existing uranium inventories and new production may provide financial flexibility
and may be worth significantly more in the future; any expectation that the Company may stockpile alternate feed
materials and/or other uranium -bearing materials at the Mill for future processing campaigns ; 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 risk 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 im plied 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 about uranium and vanadium recovery rates and expected pounds of uranium and
vanadium that may be recovered at the White Mesa Mill; any expected total amount of contained vanadium in the
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Mill’s pond solutions and expected vanadium and uranium recoveries from such solutions; any expectations relating
to the continued successful ramp- up of the Mill pond vanadium recovery campaign, including acceptable costs,
recoveries, product quality, and market conditions; any expectation that vanadium production at the Mill may
enable the Company to generate substantial under current market conditions; any expectations that current
vanadium prices may continue throughout 2019 and potentially into 2020; any expectation that the Company’s key
initiatives may boost the ability of the Company to quickly increase uranium production in response to improved
uranium market conditions; any expectation that improved uranium market conditions may result from the
ongoing Section 232 uranium investigation in the Unite d States or from improvement in global market
fundamentals; any expectation that the Company plans to expand or extend the test mining program at its La Sal
Complex; any expectations relating to potential increases in productivity and mined grades for vana dium and
decreases in mining costs at the La Sal Complex or any other mines as a result of the test -mining program; any
expectation that the Company plans to conduct additional surface exploration drilling that targets high- grade
vanadium at the La Sal Com plex, whether any such drilling may increase resources and whether or not the
Company may update its NI 43 -101 Technical Report on the La Sal Complex; any expectation that the planned
upgrades at Nichols Ranch may increase flow capacity through the plant, thereby reducing operating costs per
pound and significantly increasing the production capacity of Nichols Ranch; any expectation that the planned
drilling program at Alta Mesa may increase and upgrade the uranium resources and extend the life -of-mine
production profile of that project; any expectations about potential copper recoveries from resources mined from
the Canyon mine or the expected costs of production at that mine or at any of the Company’s other mines ; any
expectations relating to the Company’s uranium and vanadium production and sales guidance for 2019; any
expectation that the Company’s existing uranium inventories and new production may provide financial flexibility
and may be worth significantly more in the future; any expectation that the Company expects to stockpile alternate
feed materials and/or other uranium-bearing materials at the Mill for future processing campaigns; 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 purposes. Readers are also cautioned not to place undue reliance on these forward-looking
statements, that speak only as of the date hereof.
Energy Fuels Inc.
Curtis Moore – VP – Marketing & Corporate Development
(303) 974-2140 or Toll free: (888) 864-2125
www.energyfuels.com