Energy Fuels Announces Q 2-2022 Results, Including Continued Robust Balance Sheet and Market-Leading U.S. Uranium & Rare Earth Positions.

LAKEWOOD, Colo: Energy Fuels Inc. ( NYSE: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company") today reported its financial results for the quarter ended June 30, 2022. The Company's quarterly 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 ("EDGAR") 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 U.S. dollars.

Highlights:

At June 30, 2022, the Company had a robust balance sheet with $134.1 million of working capital, including $86.4 million of cash and cash equivalents, $11.8 million of marketable securities, $28.6 million of inventory, and no short term (or long term) debt. At current commodity prices, the Company's product inventory has a value of $43.9 million.

During the quarter ended June 30, 2022, the Company incurred a net loss of $18.1 million, which included a non-cash mark-to-market decrease in the value of investments accounted for at fair value of $13.4 million.

During Q2-2022, the Company entered into three (3) long-term uranium sales contracts with U.S. nuclear utilities. Base quantities under these contracts total 3.0 million pounds with deliveries to occur during the 2023 - 2030 time period. If the buyers exercise all options, total delivery quantities could increase to as much as 4.2 million pounds. Annual quantities vary year-to-year, with lower delivery quantities in the early years, and higher quantities in the later years. Contract pricing has a fixed price component (fully indexed to inflation) and a spot market component, along with floor and ceiling prices (fully indexed to inflation). The Company expects to fulfill deliveries during the early years of these contracts from its significant existing produced inventories.

In June 2022, the U.S. Department of Energy ("DOE") issued a Request for Proposals ("RFP") to purchase uranium ("U3O8") for the new U.S. Uranium Reserve (the "Reserve"). The DOE states that they expect to purchase up to 1 million pounds of U3O8 inventory from up to four (4) qualified U.S. uranium producers. The uranium must be physically located at Honeywell's Metropolis Works conversion facility (the "U.S. Converter"). Energy Fuels believes it meets all qualifications to supply the Reserve, and the Company currently holds about 692,000 pounds of U3O8 at the U.S. Converter. The Company has submitted a bid to sell U3O8 to the Reserve, taking into consideration its long-term contract commitments and current and expected market conditions. There are no guarantees the DOE will purchase uranium from the Company under this RFP.

During the first half of 2022, the Company produced approximately 205 tonnes of mixed rare earth element ("REE") carbonate ("RE Carbonate"), containing approximately 95 tonnes of total rare earth oxides ("TREO"). Energy Fuels' RE Carbonate, which is roughly 32% - 34% NdPr, is the most advanced REE material being produced in the U.S. today.

In May 2022, the Company announced it had entered into agreements to acquire a 58 square mile rare earth land position in Brazil (the "Bahia Project"). The Bahia Project is a well-known heavy mineral sand ("HMS") deposit that has the potential to feed the Company's White Mesa Mill with REE and uranium-bearing monazite sand for decades. Due diligence is ongoing, and closing is currently expected to occur on or around August 31, 2022. After closing, the Company expects to conduct an extensive exploration program to better define the HMS and monazite resource, including comprehensive sonic drilling and geophysical mapping with the intent to complete an Initial Assessment under SK-1300 (U.S.) and a Preliminary Economic Assessment under NI 43-101 (Canada) during Q4-2022 or Q1-2023.

The Company is currently in active discussions with several additional sources of natural monazite sands around the world to significantly increase the supply of feed for its growing REE initiative.

The Company continues to make excellent progress toward installing full REE separation capabilities at the Mill to produce both "light" and "heavy" separated REE oxides in the coming years, subject to successful licensing, financing, and commissioning, and continued strong market conditions. The Company has hired Carester SAS ("Carester"), a global leader in producing separated REE oxides, to support these REE separation initiatives. The Company is also evaluating installing a smaller "light" separation circuit within the existing Mill facilities with the ability to produce up to 1,500 tonnes TREO and 375 tonnes of NdPr oxide per year in the next 18-24 months. Initial estimates indicate low capital and operating costs for this circuit until a larger facility in the order of 10,000 tonnes TREO can be permitted, constructed and commissioned.

During the first half of 2022, the Company sold approximately 575,000 pounds of the Company's existing inventory of vanadium ("V2O5") (as ferrovanadium, "FeV"), for an average weighted net price of $13.44 per pound of V2O5. Vanadium markets have dropped in recent weeks. Therefore, the Company has halted sales of its inventory which currently stands at approximately 1.05 million pounds of V2O5. However, the Company expects...