Uranium Energy Corp. · AMEX:UEC

Uranium Energy — Investor Presentation (May 2011)

46 slides from Uranium Energy's investor presentation, May 2011

  1. Slide 1: North America's Newest Emerging Uranium Producer

    =z U = c NORTH AMERICA’S NEWEST EMERGING URANIUM PRODUCER Uranium Energy Corp www. uraniumenergy.com UEC’s Hobson Processing Facility

  2. Slide 2: Disclaimer

    DISCLAIMER Statements contained in this presentation which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward- looking statements. Factors tha

  3. Slide 3: North America's Newest Emerging Uranium Producer

    Yellowcake processed at Hobson from Palangana ISR project Satellite facility at the producing Palangana ISR project NORTH AMERICA’S NEWEST EMERGING URANIUM PRODUCER Resin hauling truck and trailer at Hobson Processing Plant Zero emission vacuum dryer at Hobson ISR processing plant 2

  4. Slide 4: Presentation Outline

    PRESENTATION OUTLINE  Uranium Energy Corp Overview  Uranium Supply and Demand  In-Situ Recovery (ISR) Mining  Production Strategy – South Texas  Featured Projects  Final Thoughts 3

  5. Slide 5: Mission Statement

    MISSION STATEMENT: EXPAND PRODUCTION OF URANIUM USING LOW COST IN-SITU RECOVERY(ISR) WHILE DEVELOPING A PIPELINE OF ADDITIONAL SIGNIFICANT URANIUM RESOURCES FOR ONGOING MAJOR GROWTH. South Texas 4

  6. Slide 6: UEC at a Glance

    UEC AT A GLANCE Share Capital & Cash Position Cash & Equivalents (Apr 2011) $34.0 M Total Cash Potential $38.1 M Cash Potential from Warrants $23.7 M Cash Potential from Options $14.4 M Debt $0 M Shares Outstanding 72.2 M Shares Fully Diluted 87.6 M Market Cap (as of May 13) 223 M Warrants: Expiring

  7. Slide 7: Palangana ISR Project - Ramping Up ISR Production

    PALANGANA ISR PROJECT - RAMPING UP IN-SITU RECOVERY (ISR) PRODUCTION MAJOR HIGHLIGHTS REPORTED FOR THE FISCAL QUARTER ENDED JANUARY 31, 2011:  Initial results indicate low-cost production profile:  $18/lb cash operating expense  21,000 pounds of uranium concentrates were accumulated in inventory

  8. Slide 8: Investment Summary

    producing Palangana ISR INVESTMENT SUMMARY project PROOF OF CONCEPT  Operating the first new ISR uranium mine in the U.S. in five years BUSINESS PLAN FOCUSED ON GROWTH  Regional strategy in South Texas with central ISR processing plant and four ISR projects  100,000 meter drill program to expand

  9. Slide 9: Project Pipeline Includes ISR and Conventional Uranium Projects Across the Americas

    PROJECT PIPELINE INCLUDES ISR AND CONVENTIONAL URANIUM PROJECTS ACROSS THE AMERICA’S UEC’S U.S PROJECT PORTFOLIO UEC’S PARAGUAY PROJECT, UEC U.S PROJECT PORTFOLIO SOUTH AMERICA 8

  10. Slide 10: UEC's U.S. Project Pipeline

    UEC’S U.S. PROJECT PIPELINE Project / Historic Operator Stage Resource MM lbs Hobson Processing Plant / Uranium One Palangana / Union Carbide (P) 2.2(1) Goliad / Moore Energy (NT) 6.9(1) Nichols / Texaco Corp (NT) 1.3(1) Salvo/ Mobil Oil (E) 2.8 Total Texas Resources ~13.2 MM Lbs West Ranch / Kerr M

  11. Slide 11: UEC's Exploration Databases Drives Resource Expansion

    UEC’s EXPLORATION DATABASES DRIVES RESOURCE EXPANSION UEC has been able to target properties for acquisition that have already been the subject of significant exploration and development by senior energy companies in the past. JURISDICTION PROVIDER YEARS DRILL HOLES OF DATA US, Canada, Maps, Geologi

  12. Slide 12: Officers and Directors

    OFFICERS AND DIRECTORS  Amir Adnani – President -Chief Executive Officer, Director An entrepreneur and founding CEO of UEC, extensive experience in financing natural resource companies  Harry L. Anthony – Chief Operating Officer, Director Internationally recognized expert in the field of ISR urani

  13. Slide 13: Technical & Advisory Team

    TECHNICAL & ADVISORY TEAM Ed Brezinski Harry Anthony Robert Underdown Andrew Kurrus Vice President Chief Operating Officer Vice President of Exploration Marketing and Sales Production Manager Texas World-renowned ISR expert Has held senior operational 30 years experience exploring 25 years experienc

  14. Slide 14: Presentation Outline

    PRESENTATION OUTLINE  Uranium Energy Corp Overview  Uranium Supply and Demand  In-Situ Recovery (ISR) Mining  Production Strategy – South Texas  Featured Projects  Final Thoughts 13

  15. Slide 15: Uranium Price History

    URANIUM PRICE HISTORY - Uranium Spot Price as of May 9th: $56.50/lb - Uranium Term Price: $70.00/lb URANIUM PRICES ARE DRIVEN PRIMARILY BY GLOBAL NUCLEAR Tornado CAPACITY EXPANSION, Announcements URANIUM PRODUCTION at Ranger Olympic Dam Fukushima ISSUES AT MAJOR Malfunction Events FACILITIES AND MOS

  16. Slide 16: Nuclear Capacity Forecast by Region, 1980-2030 Post Fukushima

    NUCLEAR CAPACITY FORECAST BY REGION, 1980-2030 POST FUKUSHIMA MWe ~ 425 of 443 nuclear © UxC 700,000 reactors safely operating 62 nuclear 600,000 reactors remain 500,000 under construction 400,000 ~3% of which 300,000 are in G7 countries 200,000 100,000 0 1980 1983 1986 1989 1992 1995 1998 2001 2004

  17. Slide 17: Post Fukushima - Supply/Demand Imbalance

    POST FUKUSHIMA – THE URANIUM SECTOR CONTINUES TO FACE A SUPPLY/DEMAND IMBALANCE Production from Existing Mines and Secondary Supply Demand Requirements to be Filled by New Production How will this picture be impacted by Fukushima Source: UxC’s Uranium Market Outlook: Q3 2009 16

  18. Slide 18: Post Fukushima - Supply/Demand Imbalance: What Has Changed

    POST FUKUSHIMA – THE SECTOR CONTINUES TO FACE A SUPPLY/DEMAND IMBALANCE MINE SUPPLY (~130 MM LBS. U3O8 IN 2010) CANNOT MEET CURRENT DEMAND (182 MM LBS. U3O8 IN 2010) NOR IS IT EXPECTED TO GROW AT THE SAME PACE AS FUTURE DEMAND WHAT HAS CHANGED SINCE FUKUSHIMA? Uranium Demand Uranium Supply • 425 nuc

  19. Slide 19: Post Fukushima - HEU Still Expires in 2013

    POST FUKUSHIMA - HEU STILL EXPIRES IN 2013  Expiration of US-Russian HEU Agreement scheduled for 2013  Russia has repeatedly indicated that there is no desire to extend agreement  Existing US/Russia HEU agreement supplies 13% of world or 45% of US annual uranium needs  Current cost of downblendi

  20. Slide 20: Post Fukushima - The U.S. Opportunity

    POST FUKUSHIMA - THE U.S. OPPORTUNITY  U.S. holds the fourth position globally for recoverable resources of U308  104 U.S. nuclear reactors consume 55mm lbs. of U3O8/year to generate 20% of US electricity grid  Currently, the U.S. produces approximately 4mm lbs. of U3O8/year  Secondary supplies

  21. Slide 21: Presentation Outline

    PRESENTATION OUTLINE  Uranium Energy Corp Overview  Uranium Supply and Demand  In-Situ Recovery (ISR) Mining  Production Strategy – South Texas  Featured Projects  Final Thoughts 20

  22. Slide 22: 21

    21

  23. Slide 23: Typical ISR Process Flow

    TYPICAL ISR PROCESS FLOW TYPICAL ISR PROCESS FLOW 22

  24. Slide 24: Wellfield

    i<-c U= — NORTH AMERICA’S NEWEST EMERGING URANIUM PRODUCER r = —s 3% ~ i > 7. : [i-sru RECOVERY | MS ss phe 3 = 3! I » = \\ - os, 23

  25. Slide 25: Palangana Satellite Facility and Wellfield

    PALANGANA SATELLITE FACILITY AND WELLFIELD 24

  26. Slide 26: UEC's Hobson ISR Processing Plant

    UEC’s HOBSON ISR PROCESSING PLANT 25

  27. Slide 27: Resin Hauling Truck & Trailer

    RESIN HAULING TRUCK & TRAILER 26

  28. Slide 28: Presentation Outline

    PRESENTATION OUTLINE  Uranium Energy Corp Overview  Uranium Supply and Demand  In-Situ Recovery (ISR) Mining  Production Strategy – South Texas  Featured Projects  Final Thoughts 27

  29. Slide 29: South Texas Uranium Belt - A District Production Strategy

    SOUTH TEXAS URANIUM BELT- A DISTRICT PRODUCTION STRATEGY  The Texas Commission on Environmental Quality (TCEQ) issues all required mining permits.  30+ years of uranium mining in Texas, 31 applications made = 31 final permits  26 of 31 current or historic deposits in trend have been ISR amenable

  30. Slide 30: Current South Texas Resources

    CURRENT SOUTH TEXAS RESOURCES: Category Palangana Goliad Salvo Nichols Total 43-101 MEASURED & INDICATED 1.06 5.5 - - 6.56 (M LBS.) 43-101 INFERRED 1.15 1.4 2.8 1.3 6.65 (M LBS.) TOTAL (M LBS.) 2.21 6.9 2.8 1.3 13.21 29

  31. Slide 31: Hobson ISR Processing Plant

    HOBSON ISR PROCESSING PLANT  Production capacity of 3 mm lbs/year  Fully licensed and permitted  Completely refurbished as of Q3/2008 30

  32. Slide 32: Palangana ISR Project - Stage: Producing

    PALANGANA ISR PROJECT - STAGE: PRODUCING  First new ISR uranium mine in the U.S. in five years  9,900-acre property, located 100 miles south of the UEC’s Hobson ISR processing plant  2.2mm lb. NI 43-101 Compliant Resource:  Two Production Zones: Measured & Indicated Resource: 1,057,000 lbs. aver

  33. Slide 33: Palangana ISR Project - Stage: Producing

    PALANGANA ISR PROJECT- STAGE: PRODUCING POTENTIAL PRODUCTION AREA 3 SALT DOME POTENTIAL FOR NEAR TERM EXPANSION PRODUCTION AREAS 1 AND 2 UCC Historic Production Area 32

  34. Slide 34: Goliad ISR Project - Stage: Production Expected Q4 2011

    GOLIAD ISR PROJECT - STAGE: PRODUCTION EXPECTED Q4 2011  Received production permits (Mine Permit and Production Area Authorization)  Largest ISR uranium project in Texas  6.9 mm lb. NI 43-101 Compliant Resource- Measured & Indicated 5.4 million pounds Inferred 1.5 million lbs. U3O8  Exciting “B

  35. Slide 35: Salvo ISR Project - Stage: Expansion Drilling Program

    SALVO ISR PROJECT STAGE: EXPANSION DRILLING PROGRAM  100%-controlled in-situ recovery uranium project in Bee County totaling 4,238 acres  45 miles from Hobson processing plant Targeted to become the third in-situ recovery satellite project in Texas  Inferred mineral resource of 1.2 million tons

  36. Slide 36: Presentation Outline

    PRESENTATION OUTLINE  Uranium Energy Corp Overview  Uranium Supply and Demand  In-Situ Recovery (ISR) Mining  Production Strategy – South Texas  Featured Projects  Final Thoughts 35

  37. Slide 37: Expanding the Project Pipeline

    EXPANDING THE PROJECT PIPELINE A NEW ISR DISTRICT OPPORTUNITY IN PARAGUAY  Prospecting permit covers 247,000 acres located in the area of Coronel Oviedo, Paraguay  Subject to extensive uranium exploration by Anschutz Corp (1976-1983) and Crescent Resources (2006-2008)  Property characterized by m

  38. Slide 38: Prior Exploration Highlights

    PRIOR EXPLORATION HIGHLIGHTS ANSCHUTZ CORPORATION • of 28 drill holes 17 showed significant uranium values • the best being 6.2 feet of 0.153% U3O8 at a starting depth of 785 feet UEC crew performing 24-hour aquifer test • 3 mineralized fronts were identified and a 75 mile-long fault structure which

  39. Slide 39: A New ISR District Opportunity in Paraguay

    A NEW ISR DISTRICT OPPORTUNITY IN PARAGUAY ISR AMENABLE URANIUM MINERALIZATION  UEC has conducted a 24-hour aquifer test in the area of the resource trend UEC crew performing 24-hour aquifer test  The test determined that the project’s aquifer would support in-situ recovery of uranium  The test s

  40. Slide 40: Arizona

    ARIZONA U.S. PROJECT PORTFOLIO HIGHLIGHT UEC ARIZONA PROJECT PORTFOLIO Established uranium districts and historic production Favorable mine permitting environment Largest nuclear power plant in the US, Palo Verde just received 20 year license extensions UEC controls 2 existing projects, both sub

  41. Slide 41: Presentation Outline

    PRESENTATION OUTLINE  Uranium Energy Corp Overview  Uranium Supply and Demand  In-Situ Recovery (ISR) Mining  Production Strategy – South Texas  Featured Projects  Final Thoughts 40

  42. Slide 42: Upcoming 2011 Milestones

    UPCOMING 2011 MILESTONES EXPANDING PRODUCTION AND POUNDS South Texas  Ramp up production at Palangana  Final permits to be issued by the TCEQ for the Goliad Project  Commence construction at Goliad production area  Acquisition of new leases within hauling distance to Hobson ISR processing facili

  43. Slide 43: UEC's Corporate History 2004-2011

    UEC’s CORPORATE HISTORY 2004-2011 October 2004 Acquired portfolio of uranium projects in Wyoming, Arizona, Colorado February 2006 Went public by listing shares on the OTCBB under the symbol URME July 2006-Jan 2007 Raised $18, 500,000 equity financing September 2007 Began trading on the Amex under a

  44. Slide 44: Initial Results Indicate Low-Cost Production Profile

    INITIAL RESULTS INDICATE LOW-COST PRODUCTION PROFILE CASH COST OF URANIUM PRODUCTION (CURRENT QTR, $/LB.) ENERGY(f) sources Energy RESOURCES (F) Resources (f) 40.40 40.40 40.40 DENISON (e) Denison (e)Denison (E) 34.56 34.56 34.56 PALADIN (d) Paladin (d)Paladin (D) 33.52 33.52 33.52 CAMECO (c) Cameco

  45. Slide 45: Analyst Coverage

    ANALYST COVERAGE CIBC World Markets Ian Parkinson (416) 956-6169 Dundee Capital David A. Talbot (416) 350-3082 Haywood Securities Geordie Mark, Ph.D (604) 697-6089 RBC Capital Markets Adam Schatzker (416) 842-7850 Jennings Capital Alka Singh (416) 304-3964 44

  46. Slide 46: Investment Summary

    INVESTMENT SUMMARY NORTH AMERICA’S NEWEST ENERGING URANIUM PRODUCER STRONG FUNAMENTALS AND A CLEAR GROWTH STRATEGY  Operating the first U.S. ISR uranium mine in the last five years  Strong balance sheet: $34 M cash, no debt, and 100% un-hedged production  Owns a fully licensed, constructed, and c

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