Western Uranium & Vanadium Market Update
July 27, 2022
Western Uranium & Vanadium Market Update
FOR IMMEDIATE RELEASE
Toronto, Ontario and Nucla, Colorado - Western Uranium & Vanadium Corp. (CSE:WUC) (OTCQX: WSTRF)
(“Western” or ”Company”) is providing the following market updates:
Mine Tour - Sunday Mine Complex
On Saturday September 17th, Western is conducting an underground mine tour at its Sunday Mine Complex in
Western Colorado . The Company will be able to accommodate a limited number of shareholders , investors,
potential customers and industry professionals. If interested, please email the Company’s Investor Relations at
[email protected] in order to reserve a tour spot.
Mining Operations - Sunday Mine Complex
In building Western’s in -house mining capability, three separate equipment packages have been acquired and
readied for deployment. This full complement of mining equipment was purchased at attractive prices and is
sufficient to support the initial mining operations at the Complex. The Company is continuing to acquire
equipment to support Western’s full mining operations. Western has built its internal mining capabi lity
seeking the advantages of: lower cost, increased flexibility, and cross-staffing efficiencies.
Nuclear Fuel and Uranium Markets
The fundamentals for nuclear energy are the best in 50 years. Demand is increasing due to the electrification
transition, climate change initiatives, energy crisis responses, and next generation small modular reactor
(SMR) advancement. Before the Russian invasion of Ukraine, r egions of the world were exp eriencing energy
crisis due to insufficient baseload power and extreme weather conditions. Following the invasion, e nergy
security issues have become more prevalent due to the threat of Russia weaponizing energy exports . Uranium
demand will increase with n ew reactors being built, operating reactor life extensions, restarts of idle reactors,
and nuclear phase-out plans being reversed.
The Russia/Ukraine war has created extraordinary volatility in uranium markets during the last five months.
After the invasio n, the spot price exceeded $60 per pound, a price level not seen since 2011. Spot uranium
prices peaked on April 13 th at over $64 per pound before declining to a recent low of $45 per pound. The
volatile price swings resulted in large fluctuations of uranium equities.
Since the beginning of the conflict , conversion service prices have approximately doubled and enrichment
service prices have increased about 50%. Russia currently exerts significant influence in these stages of the
nuclear fuel cycle with control over 35% +/- of the global capacity in both conversion and enrichment services.
Significant capital investments are needed to expand western conversion and enrichment capacity; those
facilities are seeking long-term contracts to justify the needed investment. However, as government s work
through legislation to address the purchases of nuclear fuel and services from Russia, utility customers are
awaiting the outcome. This issue is difficult to resolve due to the dependencies that have been built-up over
decades of Russian government sponsorship of the Rosatom State Nuclear Energy Corporation.
Western believes that enrichment and conversion prices are leading indicators of future uranium price levels.
We anticipate that a legislative solution will incorporate a combination of government funding and
parameters for utility contracting that will facilitate a transition away from Russian nuclear fuel dependencies.
Thus Western’s operational strategy is being implemented to coincide with our uranium market expectation
for increasing price levels which will reward the short-term ability to scale-up ore production.
Oil and Gas Royalty Update
The development of a second set of 8 oil and gas wells remains ongoing. After the drilling stage was finished
during May, the operator initiated the fracking phase. Western anticipates that well completion will be
concluded during the third quarter and the 8 new wells put into production during the fourth quarter.
Thereafter, Company oil and gas royalties would expand from a total of 8 producing wells to 16 produc ing
wells.
About Western Uranium & Vanadium Corp.
Western Uranium & Vanadium Corp. is a Colorad o-based uranium and vanadium conventional mining
company focused on low cost near -term production of uranium and vanadium in the western United States ,
and development and application of kinetic separation.
Cautionary Note Regarding Forward -Looking Information: Certain information contained in this news release
constitutes “forward-looking information” or a “forward-looking statements” within the meaning of applicable
securities laws (collectively, “forward -looking statements”). Statements of that nature include statements
relating to, or that are dependent upon: the Company’s expectations, estimates , assumptions and projections
regarding exploration and production plans and results; the timing of planned activities; whether the
Company can raise any additional funds required to implement its plans; whether regulatory or analogous
requirements can be satisfied to permit planned activities; and more generally to the Company’s business, and
the economic and political environment applicable to its operations, assets and plans. All such forward -looking
statements are subject to important risk factors and uncertainties, many of which are beyond the Company’s
ability to control or predict. Please refer to the Company’s most recent Management’s Discussion and
Analysis, as well as its other filings at www.sec.gov and/or www.sedar.com, for a more detailed review of
those risk factors. Readers are cautioned not to place undue reliance on the Company’s forward-looking
statements, and that these statements are made as of the date hereof. While the Company may do so, it does
not undertake any obl igation to update these forward -looking statements at any particular time, except as
and to the extent required under applicable laws and regulations.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
George Glasier Robert Klein
President and CEO Chief Financial Officer
970-864-2125 908-872-7686