Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (May 2013)
43 slides from Uranium Energy's investor presentation, May 2013
Slide 1: North America's Newest Emerging Uranium Producer
| Cc U _ NORTH AMERICA’S NEWEST EMERGING URANIUM PRODUCER =z Uren Eerg)/ Sug www.uraniumenergy.com UEC’s Hobson Processing Facility # -So a
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 that
Slide 3: North America's Newest Emerging Uranium Producer
Yellowcake processed at Hobson from Palangana ISR Mine Satellite facility at the producing Palangana ISR Mine NORTH AMERICA’S NEWEST EMERGING URANIUM PRODUCER Resin hauling truck and trailer at Hobson processing facility Zero Emission vacuum dryer at Hobson processing facility 3
Slide 4: Presentation Outline
PRESENTATION OUTLINE • Uranium Energy Corp Overview • Uranium Supply and Demand • Production Strategy – South Texas • Featured Exploration Projects • Final Thoughts 4
Slide 5: Mission Statement
MISSION STATEMENT: TO EXPAND URANIUM PRODUCTION USING LOW COST IN-SITU RECOVERY(ISR) WHILE DEVELOPING A PIPELINE OF RESOURCES FOR MAJOR ONGOING GROWTH 5 UEC’s Hobson ISR Processing Plant – South Texas
Slide 6: Uranium Energy Corp at a Glance
URANIUM ENERGY CORP AT A GLANCE As of January 31, 2013 Cash Position $12.3 M Market Value of Uranium Inventory $1.6 M No Debt Shares Outstanding 85.5 M Shares Fully Diluted 95.2 M As of May 1, 2013 Closing Price $1.51 Market Capitalization $130 M 52-Week Range $1.40 - $3.02 Average daily volume (3-m
Slide 7: Palangana ISR Mine
PALANGANA ISR MINE FIRST PRODUCING MINE • Production commenced January 2011, initial CAPEX of $10M • In Fiscal 2012 (July 31), the company sold 270,000 lbs. of U308 at ~$51/lb. generating revenues of $13.8M at an average cash cost of $18/lb. • During first half of fiscal 2013 (January 31), the compa
Slide 8: Goliad ISR Project
GOLIAD ISR PROJECT NEXT IN-LINE FOR PRODUCTION • NI 43-101 compliant resource: • Measured & Indicated Resource: 5,475,200 lbs. avg. grade of 0.05% • Inferred Resource: 1,547,500 lbs. with avg. grade of 0.05% • Fully licensed and permitted • Mine construction underway with production to initiate in Q
Slide 9: Project Pipeline Includes ISR + Conventional Uranium Projects Across the Americas
PROJECT PIPELINE INCLUDES ISR + CONVENTIONAL URANIUM PROJECTS ACROSS THE AMERICAS U.S PROJECT PORTFOLIO PARAGUAY PROJECTS, SOUTH AMERICA 9
Slide 10: UEC's Project Pipeline
UEC’S PROJECT PIPELINE (E) Exploration (D) In Development (NT) Near Term Production (P) Producing Note: The resources stated are historical in nature. Recent independent verification of the data has not yet been performed. The Company has not completed sufficient exploration to verify the historical
Slide 11: Exploration Databases Drive Resource Expansion
EXPLORATION DATABASES DRIVE RESOURCE EXPANSION UEC is able to target properties for acquisition that have been subject to significant exploration and development by senior energy companies in the past. DATA STORAGE AT CORPUS CHRISTI HEAD OFFICE 11
Slide 12: Leadership Team/Corporate Leaders
LEADERSHIP TEAM/CORPORATE LEADERS • Amir Adnani – President, CEO, Director • Harry L. Anthony – COO, Director An entrepreneur and founding CEO of UEC, extensive Internationally recognized expert in the field of ISR experience in financing natural resource companies uranium mining • Mark Katsumata –
Slide 13: Technical Team
TECHNICAL TEAM Harry Anthony Robert Underdown Andrew Kurrus Clyde Yancey Chief Operating Officer Vice President of Exploration Vice President Production Manager of Exploration Texas 30 years experience exploring 35 years experience exploring for World-renowned ISR expert Has held senior operational
Slide 14: Presentation Outline
PRESENTATION OUTLINE • Uranium Energy Corp Overview • Uranium Supply and Demand • Production Strategy – South Texas • Featured Exploration Projects • Final Thoughts 14
Slide 15: Uranium Price History
URANIUM PRICE HISTORY • Uranium Spot Price as of April 29: $40.50/lb. • Uranium Term Price: $57.00/lb. $160.00 $140.00 $120.00 Fukushima Olympic Dam Events $100.00 Malfunction Tornado Announcement US$/lb U3O8 Announcements $80.00 at Ranger Cigar Lake $60.00 2nd Flood $40.00 Financial $20.00 Crisis $
Slide 16: 220,000 Barrels of Oil Equivalent to Six Barrels of Uranium
220,000 barrels of oil is equivalent to these six barrels of uranium 16
Slide 17: Nuclear Capacity by Region
NUCLEAR CAPACITY BY REGION As of April, 2013 ~435 2 0MWe 08-2030 nuclear reactors are 800,000 operable in 30 countries MWe including 48 Japanese reactors awaiting 700,000 800,000 restarts 600,000 67 nuclear 700,000 reactors South under America construction 500,000 Africa & Middle E 600,000 and 164 A
Slide 18: The Post-Fukushima Uranium Sector
THE POST-FUKUSHIMA URANIUM SECTOR • China, India, South Korea and Russia remain committed to nuclear power • Uranium demand remains strong and poised for long-term growth M Lbs. 300 250 200 150 100 50 0 2012 2015 2020 2030 Global Uranium Demand Forecast – Post-Fukushima Source: WNA, Ux Consulting 18
Slide 19: Post-Fukushima Uranium Sector Still Faces Supply/Demand Imbalance
POST-FUKUSHIMA-URANIUM SECTOR STILL FACES SUPPLY/DEMAND IMBALANCE • Analysts’ forecast a large supply-demand gap in the near term and increasing post-2016 • A recent study estimated $83/lb. as the incentive price to develop new conventional mines 300 250 200 Million Lbs U3O8 150 100 50 0 2008 2009 2
Slide 20: Post-Fukushima - HEU Still Expires in 2013
POST-FUKUSHIMA- HEU STILL EXPIRES IN 2013 • US-Russian HEU Agreement set to expire in 2013; Russia has no desire to extend agreement • HEU supplies 13% of world or 45% of US annual uranium needs • Current cost of downblending HEU exceeds new mine production costs The HEU agreement supplies ~24Mlb. u
Slide 21: Dependence on Foreign Uranium by the World's Largest Electricity Consumers
DEPENDENCE ON FOREIGN URANIUM BY THE WORLD’S LARGEST ELECTRICITY CONSUMERS The US consumes 55M pounds per year, China consumes 19M pounds per year, but only produces 4M pounds per year forecasted to grow to 73M by 2030, but only produces 3M pounds per year 21
Slide 22: Post-Fukushima - Nuclear Expansion Continues
POST-FUKUSHIMA- NUCLEAR EXPANSION CONTINUES • UK, a G-7 nation - announced it will build 5 reactors • Saudi Arabia, land of big oil – announced it will build 16 reactors • Russia, China and India - have all re-affirmed their support for nuclear power – and they represent 50% of the new builds • Braz
Slide 23: New Production Requires Higher Prices
NEW PRODUCTION REQUIRES HIGHER PRICES • Recent J.P. Morgan report estimates an incentive price for uranium to be $83/lb before CAPEX for the development of new greenfield projects. • Most new production delayed at current prices leading to a supply deficit: • In August 2012 BHP Billiton announced de
Slide 24: Presentation Outline
PRESENTATION OUTLINE • Uranium Energy Corp Overview • Uranium Supply and Demand • Production Strategy – South Texas • Featured Exploration Projects • Final Thoughts 24
Slide 25: South Texas Uranium Belt: Hub & Spoke Production Strategy
SOUTH TEXAS URANIUM BELT HUB & SPOKE PRODUCTION STRATEGY • The Texas Commission on Environmental Quality (TCEQ) issues all required mining permits • 30+ years of uranium mining in Texas, 32 applications made = 32 final permits • 26 of 31 current or historic uranium deposits have been ISR amenable SO
Slide 26: Resin Hauling Truck and Trailer, Hobson Processing Facility
1 2 3 4 RESIN HAULING TRUCK AND TRAILER 26 HOBSON PROCESSING FACILITY
Slide 27: Hobson Processing Plant
HOBSON PROCESSING PLANT • Fully licensed and permitted • Completely refurbished as of Q3/2008 27
Slide 28: Current South Texas Resources
CURRENT SOUTH TEXAS RESOURCES Status Grade 43-101 Acreage % U3O8 (M lbs.) • PA-1, 2 and 3: Producing Palangana • PA-4 and 5: In development 0.135 2.2 9,601 • Exploration drilling to establish new production areas • Fully permitted for production Goliad • Mine construction underway 0.050 6.9 2,574 •
Slide 29: Palangana ISR Mine
PALANGANA ISR MINE PRODUCING • First new ISR uranium mine in the U.S. in seven years • 9,601 acre property, located ~100 miles south of UEC’s Hobson processing plant • 2.2M lb. NI 43-101 compliant resource: • Measured & Indicated Resource: 1,057,000 lbs. avg. grade of 0.135% • Inferred Resource: 1,1
Slide 30: Palangana Satellite Facility and Wellfield
PALANGANA SATELITE FACILITY AND WELLFIELD Ion Exchange Facility Production Area 1 (PAA-1) 30
Slide 31: Goliad ISR Project
GOLIAD ISR PROJECT MINE CONSTRUCTION UNDERWAY • NI 43-101 compliant resource: • Measured & Indicated Resource: 5,475,200 lbs. avg. grade of 0.05% • Inferred Resource: 1,547,500 lbs. with avg. grade of 0.05% • Mine construction underway with production to initiate in Q3 2013 Permits Received Permit S
Slide 32: Burke Hollow ISR Project
BURKE HOLLOW ISR PROJECT INITIAL DRILLING COMPLETED • NI 43-101 inferred mineral resource of 2.9M lbs. at an avg. grade of 0.047% • NI 43-101 Exploration Target of 1.8 - 7.2M lbs. at an avg. grade range of 0.03% to 0.06% • 17,510-Acre project located approximately 50 miles from Hobson Processing Pla
Slide 33: Presentation Outline
PRESENTATION OUTLINE • Uranium Energy Corp Overview • Uranium Supply and Demand • Production Strategy – South Texas • Featured Exploration Projects • Final Thoughts 33
Slide 34: Expanding the Project Pipeline
EXPANDING THE PROJECT PIPELINE A NEW ISR DISTRICT OPPORTUNITY IN PARAGUAY Project / Historic Operator Stage Resource M lbs Yuty / Cue Resources (E/D) 11.1(1) Exploration Project / Historic Operator Stage Target M lbs Oviedo / Anschutz Corp (E) 23-56(1) (E) Exploration (D) In Development (1) NI 43-10
Slide 35: Paraguay: A Frontier ISR Opportunity
PARAGUAY A FRONTIER ISR OPPORTUNITY FOREIGN DIRECT INVESTMENT 500 • Government policy focused on attracting Foreign Direct Investment 450 400 • Low corporate tax rate of 10% and 2.5% royalty on 350 uranium* 300 Millions US$ 250 • Central Bank forecasts 24.9% growth in the 200 commodities sector in 2
Slide 36: Paraguay Technical Team
PARAGUAY TECHNICAL TEAM Victor Fernandez-Crosa Jose Luis Paredes-Rolón Carlos Figuerado Country Manager and Chief Geologist and Drilling Supervisor Advisory Board Geologist 25 years experience as a field geologist 23 years experience as a geologist in 25 years experience in mineral and oil and consu
Slide 37: Strong Relationship with Paraguayan Government
STRONG RELATIONSHIP WITH PARAGUAYAN GOVERNMENT “Key to the City” presentation. Left to Right: Juan Antonio Denis Pintos, Deputy Chairman of the Left to Right: Federico Franco, Former President of Commission of Mines, Energy and Hydrocarbons; Nelda Martinez, Mayor Pro Tem of Corpus Paraguay and Amir
Slide 38: Yuty ISR Project
YUTY ISR PROJECT • 11.1M lbs. NI 43-101* compliant resource established after exploration on 5% of 500,000 acre concession • Subject to extensive uranium exploration by The Anschutz Corporation (1976-1983) and Cue / Cameco (2007-2010) • Determined to be ISR-amenable as indicated by initial aquifer t
Slide 39: Oviedo ISR Project
OVIEDO ISR PROJECT • NI 43-101 Exploration Target of 23 to 56 Million Pounds U3O8 • 500,000 acre concession located in the area of Coronel Oviedo, Paraguay • Subject to extensive uranium exploration by The Anschutz Corporation (1976-1983) and Crescent Resources (2006-2008) • Property characterized b
Slide 40: Prior Exploration
PRIOR EXPLORATION HIGHLIGHTS ANSCHUTZ CORPORATION • of 71 drill holes 17 showed significant uranium values • the best being 6.2 feet of 0.153% U3O8 at a starting UEC crew performing 24-hour aquifer test depth of 785 feet • 3 mineralized fronts were identified and a 75 mile-long fault structure which
Slide 41: Arizona: U.S. Project Portfolio Highlight
ARIZONA U.S PROJECT PORTFOLIO HIGHLIGHT UEC ARIZONA PROJECT PORTFOLIO • Favorable permitting environment and has established uranium districts with historic production • Largest US nuclear power plant in the US, located in Arizona, just received 20 year license extensions Project / Historic Operator
Slide 42: Presentation Outline
PRESENTATION OUTLINE • Uranium Energy Corp Overview • Uranium Supply and Demand • Production Strategy – South Texas • Featured Exploration Projects • Final Thoughts 42
Slide 43: UEC Milestones - Over the Next 12 Months
UEC MILESTONES – OVER THE NEXT 12 MONTHS GROWING PRODUCTION AND POUNDS South Texas Projects Arizona Projects Paraguay Projects Palangana Goliad Burke Hollow Arizona Paraguay Ramp up Complete Baseline permitting Begin data Further resource Production Area 3 construction of collection for expansion on