Energy Fuels Inc. · TSX:EFR

Energy Fuels — Merger or Acquisition (June 2013)

37 slides from Energy Fuels's merger presentation, Jun 20, 2013

  1. Slide 1: Energy Fuels' Proposed Acquisition of Strathmore Minerals Corp.

    ENERGY FUELS’ PROPOSED ACQUISITION OF S T R AT H M O R E M I N E R A L S C O R P. June 2013 TSX | EFR TSX | STM; OTCQX | STHJF

  2. Slide 2: Forward Looking Statements

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR FORWARD LOOKING STATEMENTS Certain of the information contained in this presentation constitutes "forward-looking information" (as defined in the Securities Act (Ontario)) and "forward-looking statements" (as defined in the U.S. Private

  3. Slide 3: Notice Regarding Technical Disclosure

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR NOTICE REGARDING TECHNICAL DISCLOSURE This presentation may use the terms "Measured", "Indicated“ and "Inferred" Resources. U.S. investors are advised that, while such terms are recognized and required by Canadian regulations, the Securi

  4. Slide 4: Transaction Summary

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR T R A N SA C TION SU MMA RY SYN ER G Y A N A LYSIS PR O F O R MA EN ER G Y F U EL S

  5. Slide 5: The Business Case for the Transaction

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR THE BUSINESS CASE FOR THE TRANSACTION Energy Fuels is Currently the Leading U.S. Conventional Uranium Producer  1.2 million lbs. of expected FY-2013 U 3 O 8 production (~25% - 30% of all US uranium production) Combines Assets that Belon

  6. Slide 6: Transaction Background

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR TRANSACTION BACKGROUND Milestones Achieved  June 11, 2013: Energy Fuels Inc. (“EFR”) signs definitive agreement to acquire Strathmore Minerals Corp. (“STM”) in an all-stock transaction (the “Transaction”)  May 24, 2013: EFR and STM ann

  7. Slide 7: Summary Transaction Terms

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR SUMMARY TRANSACTION TERMS Structure  Acquisition of STM by EFR by way of plan of arrangement  Each STM shareholder will receive 1.47 common shares of EFR for each share of STM held, representing a 31% Consideration premium to STM’s 20-

  8. Slide 8: Benefits to Shareholders

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR BENEFITS TO SHAREHOLDERS For Strathmore Shareholders  STM shareholders receive direct participation in a revenue-generating uranium producer that can enhance the potential economic returns of STM’s project portfolio  EFR is covered by

  9. Slide 9: Support for the Transaction

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR SUPPORT FOR THE TRANSACTION Strong Mutual Support for the Transaction  Both Executive Teams and Boards of Directors have expressed a willingness to enter into Support Agreements to vote their shares in favour of the Transaction  Both c

  10. Slide 10: Synergy Analysis

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR T R A N SA C TION SU MMA RY SYN ER G Y A N A LYSIS PR O F O R MA EN ER G Y F U EL S

  11. Slide 11: White Mesa Mill + Roca Honda Project

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR WHITE MESA MILL + ROCA HONDA PROJECT Synergy: STM’s Roca Honda is a Roca Honda to White Mesa = 250 miles significant high-grade resource within trucking distance of EFR’s White Mesa Mill  Roca Honda is owned 60% by Strathmore & 40% by S

  12. Slide 12: White Mesa Mill + Roca Honda Project (Cont'd)

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR WHITE MESA MILL + ROCA HONDA PROJECT (CONT’D) The Transaction Offers The Potential to Avoid Construction & Operation of a New Mill in New Mexico  October 2012 Roca Honda PEA assumed construction of a new mill  Development Capital: $66

  13. Slide 13: Sheep Mountain Project + Gas Hills Project

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR SHEEP MOUNTAIN PROJECT + GAS HILLS PROJECT Synergy: Co-development potential of 2 Gas Hills to Sheep Mountain = 28 miles large uranium projects in mining-friendly Wyoming  Gas Hills owned 100% by Strathmore  KEPCO has right to earn up

  14. Slide 14: Sheep Mountain Project + Gas Hills Project (Cont'd)

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR SHEEP MOUNTAIN PROJECT + GAS HILLS PROJECT (CONT’D) EFR Sheep Mountain Prefeasibility STM Gas Hills NI 43-101 Study (PFS): Technical Report:  Completed: March 2012  Completed: March 2013  Pre-Tax NPV 7 : $173.5 million Lbs. U3O8 Grade

  15. Slide 15: Key Industry Relationships Strengthened

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR KEY INDUSTRY RELATIONSHIPS STRENGTHENED  EFR’s and STM’s largest shareholder; has indicated willingness to vote its EFR and STM shares in favour of the Transaction  An affiliate of KEPCO is EFR’s largest uranium customer based on EFR`s

  16. Slide 16: Other Assets Acquired

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR OTHER ASSETS ACQUIRED Copper King Project (Gold/Copper)  NPV 5 : 159.5 million  Pre-Tax IRR: 31.2%  $1,100/oz. gold and $3.00/lb. copper Au Grade Cu (ounces) Thickness (million lbs.) Grade M&I 926,000 0.54 223.0 0.187% Inferred 174,00

  17. Slide 17: Pro Forma Energy Fuels

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR T R A N SA C TION SU MMA RY SYN ER G Y A N A LYSIS PR O F O R MA EN ER G Y F U EL S

  18. Slide 18: Pro Forma Asset Summary

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR PRO FORMA ASSET SUMMARY A Central Mill Supplied by Regional Mines 1 Operating Mill 2 Producing Mines 5 Permitted Mines on Standby 6 Permitted Development Projects 23 Additional Development Projects The leading position in two of the most

  19. Slide 19: Post Transaction Capital Structure

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR POST TRANSACTION CAPITAL STRUCTURE EFR as at EFR Post STM (as at March 31, Transaction March 31, 2013) 2013 (1) (2) Pro Forma Major Institutional Holders: KEPCO Shares Outstanding 753.5 124.7 936.9 Warrants 53.3 (C$0.32) -- 53.3 (C$0.32)

  20. Slide 20: Uranium Peer Group Comparison

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR URANIUM PEER GROUP COMPARISON Source: Dundee Securities Ltd.(1) Share Market Enterprise U3O8 Resources Production Price Cap Value (MMlb) (2) EV / Resource Price / Price / (000's lbs) (3) (US$ in millions) (US$) (US$MM) (US$MM) M&I Inferr

  21. Slide 21: Pro Forma Resource Summary

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR PRO FORMA RESOURCE SUMMARY Measured & Indicated Inferred Tons Grade Grade Lbs. U3O8 Lbs. V2O5 Grade Grade Lbs. U3O8 Lbs. V2O5 Tons (‘000) (‘000) (% U3O8) (% V2O5) (‘000) (‘000) (% U3O8) (% V2O5) (‘000) (‘000) Sheep Mountain(1) 12,895 0.1

  22. Slide 22: Energy Fuels' Track Record of Resource Growth

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR ENERGY FUELS’ TRACK RECORD OF RESOURCE GROWTH(1) Proposed Strathmore Acquisition 88.8 Million lbs. Measured & Inferred 38.5 Million lbs. Inferred Acquisitions/Resource Updates (2012 - 2013) 52.4 18.9 Denison US Assets Acquisition (June 2

  23. Slide 23: Contact

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR CONTACT Energy Fuels Inc. Strathmore Minerals Corp. Suite 500 -2 Toronto Street Suite 312 - 1708 Dolphin Avenue Toronto, Ontario M5C 2B6 Kelowna, BC V1Y 9S4 Energy Fuels Resources (USA) Inc. 225 Union Blvd., Suite 600 Lakewood, Colorado

  24. Slide 24: Appendix

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR A PPEN D I X

  25. Slide 25: Energy Fuels' Highlights

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR ENERGY FUELS’ HIGHLIGHTS  The Only Conventional Uranium Producer in the U.S.  ~1.2 million lbs. of FY-2013 production, accounting for ~25% of all U.S. Uranium Production  Producing Mines in the Highest-Grade Uranium Deposits in the U.

  26. Slide 26: Corporate Goals & Objectives

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR CORPORATE GOALS & OBJECTIVES Energy Fuels’ Mission: Become the dominant uranium producer in the U.S. and a mid-tier producer globally Operating Objectives Current (FY-2013) Potential (Weak Uranium Price) (Strong Uranium Price) Spot Price

  27. Slide 27: Energy Fuels' Corporate Strategy

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR ENERGY FUELS’ CORPORATE STRATEGY Prudence in the Current Price Environment…  Focus production levels to satisfy sales contract requirements  Utilize lower-cost sources of production to meet sales contract requirements  Increase supply

  28. Slide 28: Primary Assets

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR PRIMARY ASSETS White Mesa Mill  Only conventional uranium mill operating in the U.S.  ~1.2 million lbs. of U 3 O 8 production (FY-2013)  Alternate Feed & Vanadium Circuits Arizona Strip Mines  Arizona 1 and Pinenut in production  Ca

  29. Slide 29: The White Mesa Mill

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR THE WHITE MESA MILL The Only Operating Conventional Uranium Mill in the U.S.  Reliable supplier of U 3 O 8 and V 2 O 5  Licensed Capacity: 2,000 tons of ore/day (and up to 8 million lbs. per year) The White Mesa Mill has produced ~4.5

  30. Slide 30: Alternate Feed Processing at White Mesa Mill

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR ALTERNATE FEED PROCESSING AT WHITE MESA MILL Higher-Margin Uranium Production with No Associated Mining Costs  Alternate Feed Defined: Uranium-bearing materials – other than conventional ore – with recoverable quantities of uranium  So

  31. Slide 31: Arizona Strip Mines

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR ARIZONA STRIP MINES High-Grade, Low-Cost Production  Arizona 1 Mine (Producing): Production expected through 2013  Pinenut Mine (Producing): Currently transitioning into production  Canyon Mine (Development): Development began in Dece

  32. Slide 32: Sheep Mountain Project

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR SHEEP MOUNTAIN PROJECT 30+ Million lbs. of NI 43-101 Indicated Uranium Resource  Large stand-alone project in mining-friendly Wyoming with an existing mine permit  BLM Plan of Operations expected in 2014  NRC License expected in 2015

  33. Slide 33: Colorado Plateau Mines

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR COLORADO PLATEAU MINES Recently-Producing Mines On Standby & In Development  Beaver (La Sal Complex) − Standby, as of Oct. 2012  Pandora (La Sal Complex) − Standby, as of Dec. 2012  Daneros − Standby, as of Oct. 2012  Sunday Complex

  34. Slide 34: Henry Mountains Complex

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR HENRY MOUNTAINS COMPLEX Permitted & Developed Mine in Utah  EFR’s 2 nd largest U 3 O 8 resource  ~20 million lbs. of NI 43-101 resource (see resource table)  Significant existing infrastructure  ~17-miles of existing underground work

  35. Slide 35: 16.5% Stake in Virginia Energy Resources

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR 16.5% STAKE IN VIRGINIA ENERGY RESOURCES The Largest Known Uranium Deposit in the United States  EFR owns ~16.5% of the outstanding common shares of Virginia Energy Resources Inc. (TSX-V : VUI)  Owns the Coles Hill Project, the largest

  36. Slide 36: Q2-2013 Financial Performance

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR Q2-2013 FINANCIAL PERFORMANCE Highlights Cash Flow From Operations: $14.7 million U 3 O 8 Production (Conventional): 239,000 lbs. Cash Cost of Production (1) : $39.57 /lb. U 3 O 8 Production (Alternate Feed): 51,600 lbs. Average Sales Pr

  37. Slide 37: FY-2013 & Q3-2013 Guidance

    ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX : EFR FY-2013 & Q3-2013 GUIDANCE FY-2013  Sales: 1.0 – 1.05 million lbs. U 3 O 8 1.5 – 1.6 million lbs. V 2 O 5  Production: 1.175 million lbs. U 3 O 8 1.5 – 1.6 million lbs. V 2 O 5  Mining: Continuing at Arizona 1 and Pinenut mines throug

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