Uranium Energy Corp. · AMEX:UEC

Uranium Energy — Investor Presentation (September 2018)

41 slides from Uranium Energy's investor presentation, September 2018

  1. Slide 1: Corporate Presentation – September 2018

    Corporate Presentation – September 2018

  2. Slide 2: Disclaimer

    Disclaimer Statements contained in this presentation which are not historical facts are measured mineral resources, indicated mineral resources and inferred forward-looking statements that involve risks, uncertainties and other factors mineral resources, while recognized and required by Canadian reg

  3. Slide 3: UEC's Three-Prong Strategy

    UEC’s Three-Prong Strategy ▪ 100% Un-Hedged Book for Maximum Upside ▪ Align with contrarian long-term capital ▪ Grow Permitted Capacity and Production Readiness ▪ Develop low-cost and scalable ISR operations ▪ Downturn Presented Acquisition Opportunities ▪ Best time to acquire future exploration & d

  4. Slide 4: Diversified Asset Portfolio: Low-Cost ISR & Production Ready

    Diversified Asset Portfolio Low-Cost ISR & Production Ready Athabasca Basin Resources (M lbs) Project Name Stage Combined portfolio of Diabase (E) M&I NA Inferred NA 58Mlbs M&I and Reno Creek ISR Project (Fully Permitted) 45Mlbs Inferred U3O8 Project Name Stage Resources (M lbs) M&I Inferred Reno Cr

  5. Slide 5: UEC's Hobson ISR Processing Plant – South Texas

    UEC’s Hobson ISR Processing Plant – South Texas 5

  6. Slide 6: Our Team

    Our Team Amir Adnani Spencer Abraham Scott Melbye President, CEO, Director Chairman, Board of Directors Executive Vice President An entrepreneur, founding CEO of UEC, Served as a U.S. Senator from 1995 to 2001, as 34 years of experience in senior roles with founder and Chairman of GoldMining Inc., S

  7. Slide 7: UEC at a Glance

    UEC at a Glance Member of the Russell 3000® Index Cash ~$12.2 M* Share 158.5 M 30.9 M 13.1 M 202.5 M Structure Outstanding Warrants + Options Fully Diluted** Recent $1.71 1,101,608 Activity As of August 31, 2018 Avg. Daily Vol. (3-mo) $274.3 M $20 M*** Market Cap As of August 31, 2018 Long-Term Debt

  8. Slide 8: Hub & Spoke Production Strategy

    Hub & Spoke Production Strategy South Texas 8

  9. Slide 9: Hobson is fully licensed and permitted

    Hobson is fully licensed and permitted. The Processing Plant has a 2M lb. / year physical capacity 9

  10. Slide 10: In-Situ Recovery (ISR) Technology – Low Cost & Environmentally Friendly

    In-Situ Recovery (ISR) Technology – Low Cost & Environmentally Friendly 10

  11. Slide 11: Palangana ISR Mine: First Producing Mine Proof of Concept

    Palangana ISR Mine First Producing Mine Proof of Concept $10 M 6 months construction Initial CAPEX timeline • Low cash-cost of Production $21.77/lb during operation Ready • Fully permitted including expanded mine permit Similar Costs • Goliad fully permitted • Burke Hollow final mine for Future and

  12. Slide 12: Palangana Production Area (PA-1)

    Palangana Production Area 1 (PA-1) Palangana Ion Exchange Facility 12

  13. Slide 13: Resin Hauling Truck And Trailer

    Resin Hauling Truck And Trailer 13

  14. Slide 14: Burke Hollow ISR Project: Growth Ahead

    Burke Hollow ISR Project Growth Ahead ▪ Discovery of five trends since 2012 ▪ 7.09 million pounds in 4.06 MTons grading 0.088% U3O8 ▪ Leach amenability testing indicates recovery greater than 90% ▪ 20,000 acres located ~50 miles from Hobson Processing Plant. ▪ 55% of the property unexplored South Te

  15. Slide 15: Burke Hollow ISR Project Advancing with Drilling and Permitting

    Burke Hollow ISR Project Advancing with Drilling and Permitting ▪ The following final permits have been issued: ✓ Mine Production Area. ✓ Two Class I disposal wells. Drilling at Burke Hollow ✓ Aquifer Exemption ▪ Upcoming Q4 2018: Radioactive Material License (RML) application is under technical rev

  16. Slide 16: Strengthening ISR Portfolio with Accretive Consolidation of Reno Creek Project

    Strengthening ISR Portfolio with Accretive Consolidation of Reno Creek Project ▪ Fully Permitted Construction Ready ISR Project ▪ Permitted to produce up to 2 million lbs U3O8 per year ▪ ~$60M invested in the project since 2010 including asset acquisitions, extensive development activities and royal

  17. Slide 17: Strategic location within the heart of the Powder River Basin

    Strategic location within the heart of the Powder River Basin which has produced over 85 MM lbs. of uranium 17

  18. Slide 18: Reno Creek: Project Timeline

    Reno Creek: Project Timeline Aug 2017: UEC Closes Sept. 2016: May 2018: July 2013: Acquisition of June 2012: July 2015: Updated UEC Completes the Repurchase of the Fully June 2011: Exploration Permit to resource to Acquisition of the 5% Gross Licensed 350 hole resource success Mine/DDW current 22Mlb

  19. Slide 19: Anderson Project - Arizona

    Anderson Project - Arizona NI 43-101 compliant resource*: A Large US ▪ Indicated Resource: 29.5 MTons, 17 M lbs. avg. grade of 0.029% Resource ▪ Inferred Resource: 14.3 MTons, 12 M lbs. with avg. grade of 0.046% 9,852 Acres Project located ~75 miles northwest of Phoenix, AZ Historic Between 1955-195

  20. Slide 20: Slick Rock Project - Colorado

    Slick Rock Project - Colorado NI 43-101 compliant resource*: ▪ Inferred Resource: 2.5 M tons, 11.6 M lbs. avg. Technical grade of 0.228% Report ▪ Inferred Resource: 2.5 M tons, 69.6 M lbs. vanadium with avg. grade of 1.37% Low ▪ $21 M initial CAPEX with an annual production CAPEX of 438,000 pounds U

  21. Slide 21: Diabase Project - Saskatchewan, Canada

    Diabase Project - Saskatchewan, Canada Cigar Lake McArthur River Arrow Triple R Centennial Gryphon Millennium Phoenix DIABASE PROJECT Key Lake Mill ▪ Athabasca Basin – Premier District ▪ Over $20 million in Historical Exploration Work ▪ Over 21,000 meters of Diamond Drilling to date ▪ UEC Acquisitio

  22. Slide 22: ISR District Opportunity in Paraguay

    ISR District Opportunity in Paraguay Similar geology as South Texas and leveraging ~$50M of historic exploration work by Anschutz and Cameco, including new work completed by UEC. Project Historic Operator Stage Resource (M lbs.) Yuty Cue Resources / 8.9m lbs in 7.8 MTonnes grading Exploration / Came

  23. Slide 23: Alto Paraná Titanium Project - Paraguay

    Alto Paraná Titanium Project - Paraguay Project Overview ▪ One of the highest-grade and largest-known Cut-Off % % % Ilmenite Tonnes Thickness Ferro-Titanium deposits in the world % TiO2 Fe2O3 calc Billions (m) ▪ NI 43-101 compliant resource with a mineral exploration claim of 70,498 hectares 6.0 7.4

  24. Slide 24: Titanium Feedstock Market – TiO2 prices hitting 3-year highs

    Titanium Feedstock Market – TiO2 prices hitting 3-year highs Price of TiO2 feedstock - Ilmenite (USD per tonne) ▪ 90% of TiO2 feedstocks (ilmenite) used for $175 $175 pigment manufacturing UEC signed option to ▪ Strong 2017 price growth for ilmenite, $150 acquire $150 Alto Paraná continue 2018, driv

  25. Slide 25: Climate Change Requires Nuclear Energy Involvement

    Climate Change Requires Nuclear Energy Involvement “There’s really only one technology that we know of that supplies carbon-free power at the scale modern civilization requires, and that is nuclear power” - Ken Caldeira of Stanford University’s Department of Global Ecology 25

  26. Slide 26: Nuclear Power - Growth Industry By Any Measure

    Nuclear Power - Growth Industry By Any Measure ▪ 453 operable reactors in 30 different countries ▪ 56 reactors under construction ▪ 152 reactors on order or planned ▪ 335 Reactors Proposed ▪ In total- more reactors than in March 2011, pre-Fukushima Source: WNA, July 30, 2018 26

  27. Slide 27: China and India Accelerating Nuclear Growth

    China and India Accelerating Nuclear Growth ▪ China: ▪ India: - 42 reactors operating - 22 reactors operating - 179 reactors planned and proposed - 42 reactors planned and proposed - 16 under construction - 7 under construction ▪ Air quality imperative – moratorium on new coal plants Source: WNA, In

  28. Slide 28: Japanese Recovery Well Underway in 2018

    Japanese Recovery Well Underway in 2018 A total of 9 reactors have restarted – Up from 5 last year ▪ 26 reactors in total have applied for restart ▪ 2 reactors under construction ▪ 12 reactors planned and proposed PM Shinzo Abe won a landslide re- election victory. Nuclear power goals reaffirmed in

  29. Slide 29: Nuclear Power in the United States

    Nuclear Power in the United States Continued Strong Reliance on Nuclear Power 20% of the nations electrical energy 56% of the nation’s carbon-free electricity - 99 operating reactors - 2 new reactors under construction - 14 New Reactor Licenses issued or under review ✓ Department of Energy pushing f

  30. Slide 30: US National Security is At Stake

    US National Security is At Stake ▪ US Production for 2017 < 5% of US Demand (50 MM lbs) ▪ Projected 2018 US Production – Falling to <2% of US Demand ▪ Russia, Kazakhstan, Uzbekistan Supplying ~40% of US Requirements ▪ Extreme Foreign Dependence - Gaining Attention of Congressional and Top Administra

  31. Slide 31: Washington D.C. Uranium Renaissance

    Washington D.C. Uranium Renaissance ▪ Department of Interior – Uranium is a “Critical Mineral” – vital to the Nation’s economic and national security ▪ Department of Defense - Nuclear Navy requires US origin Uranium ▪ Secretary of Energy Perry halts DOE Barters for balance of FY 2018 = 1.6 MM lbs of

  32. Slide 32: SMR Overview – Important Emerging Market

    SMR Overview – Important Emerging Market ▪ Global market: 65-85 GWe by 2035 ▪ Size: 5 MWe up to 300 MWe ▪ Simpler design & lower capital cost with flexible operation ▪ Cost competitive with natural gas ▪ Utilities in six Western states are planning for 12 of the NuScale Power SMRs to be in commercia

  33. Slide 33: Global Production Plummeting, Reactor Demand Increasing

    Global Production Plummeting Reactor Demand Increasing ▪ Substantial Kazakhstan, US, Canada, Niger and Namibia cuts ▪ Production Peaked in 2016 –162 MM lbs ▪ Fell to 154 MM lbs in 2017 ▪ 2018 Production Projected < 135 MM lbs 2018 Reactor Demand = 192 MM lbs! Data courtesy of UxC - 2018 Q2 Uranium M

  34. Slide 34: Increasing Global Production Cuts

    Increasing Global Production Cuts Global Uranium Curtailments From 2016 – 2018 Year Company, Production Centre Production Curtailment Comment 2016 Cameco, Rabbit Lake 4 MM lbs Operations suspended 2016 Cameco, US Operations 2.5 MM lbs Operations suspended 2017 Cameco, McArthur River 2 MM lbs Product

  35. Slide 35: Fund and Producer Purchases Increasing

    Fund and Producer Purchases Increasing Financial Funds and Producers Depleting Spot Market Supply 2017-18 Uranium Participation Corp 2.1 MM lbs Purchased 1.4 MM lbs in Q3-Q4 2017 and 675,000 lbs in Q2 2018 2018 Yellow Cake PLC 8.4 MM lbs US$170M at ~US$21/lb (5% of global annual supply), and further

  36. Slide 36: Utility Uncommitted Demand & Term Contracting

    Utility Uncommitted Demand & Term Contracting Utility Uncommitted Demand is The Utility Long Term Contracting Substantial in Upcoming Years Cycle Will Need to Pick Up Source: Ux Consulting, June 2018 36

  37. Slide 37: Need for New Production

    Need for New Production Source: TradeTech, September 2018 37

  38. Slide 38: Uranium Price History

    Uranium Price History ($26.55/lb today – up 50% from November 2016 low) Spot Long Term $160.00 $138/lb $140.00 $120.00 $70/lb US $/lb U308 $100.00 2011: Fukushima Event $80.00 2005: Major Mine Disruptions (Cigar Lake, $60.00 McArthur River) $40.00 $31.00 Financial Crisis Nov 2016 $20.00 26.55 $17.75

  39. Slide 39: Investment Summary

    Investment Summary ▪ Production cuts resulting in 2018 - 2019 supply deficit + further demand pressure with producer & fund spot buying ▪ More reactor growth now than pre-Fukushima ▪ US production in 2018 expected to be < 2% of US reactor needs, lowest level since 1949 ▪ DOC 232 outcome may accelera

  40. Slide 40: Combined Resource Summary

    Combined Resource Summary(1) Projects Measured & Indicated Inferred Hub & Spoke ISR Portfolio Tons Grade Lbs U3O8 Tons Grade Lbs U3O8 Texas ISR (‘000) (% U3O8) (‘000) (‘000) (% U3O8) (‘000) Palangana 393 0.14 1,057 328 0.18 1,154 Burke Hollow - - - 4,064 0.088 7,093 Goliad 3,790 0.05 5,475 1,547 0.0

  41. Slide 41: Uranium Energy Corp

    URANIUM ENERGY CORP Toll Free: (866) 748-1030 info@uraniumenergy.com www.uraniumenergy.com Corporate Office 500 North Shoreline Ste. 800N Corpus Christi, TX 78401 Tel: (361) 888-8235 Fax: (361) 888-5041 Investor Relations: Bruce J. Nicholson President and CEO: Amir Adnani Executive Vice President Sc

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