Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (October 2021)
41 slides from Uranium Energy's investor presentation, October 2021
Slide 1: Corporate Presentation – October 2021
Corporate Presentation – October 2021 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 2: Disclaimer
Disclaimer Statements contained in this presentation which are not historical facts are forward-looking statements the mineral resources in these categories will ever be converted into mineral reserves. These terms that involve risks, uncertainties and other factors that could cause actual results t
Slide 3: Leading Pure Play, American Uranium Producer
Production ready, licensed, low-cost In-Situ Recovery (ISR) mining in Texas and Wyoming Largest resource base of fully permitted ISR projects of any U.S. based producer Leading Pure Play, American Uranium Newly established U.S. warehoused inventory of 2.3 M lbs. U308 Producer Strong balance sheet wi
Slide 4: Robust Nuclear Power Growth
Robust Nuclear Power Growth 4 CHINA announced that it is likely to triple nuclear power capacity by 2030 444 INDIA plans for 21 new nuclear reactors by 2031 Operable Reactors Worldwide U.A.E. completed 2 reactors; 2 units under construction 51 U.K. upgrading nuclear fleet to new advanced reactors Un
Slide 5: Nuclear Power is Critical to U.S. Energy
Nuclear Power is Critical to U.S. Energy Bi-Partisan Support – First Time in 48 years Democratic Party Supports Nuclear Energy The U.S. Senate has passed a Bipartisan infrastructure bill that provides a $6B nuclear credit program for qualifying nuclear plants with priority given to reactors using ur
Slide 6: Uranium Spot Price Accelerating with Entry of Financial Players
Uranium Spot Price Accelerating with Entry of Financial Players led by Sprott Uranium Trust At $43.00/lb, price still well below 2011 at $70 high and incentive levels for new primary production Spot Daily Long Term $160 $140 $138.00 US $/lb U308 $120 $70.00 $100 2011: Fukushima event $80 $45.00 $60
Slide 7: Diversified Asset Portfolio Low-Cost ISR & Production Ready
Diversified Asset Portfolio Low-Cost ISR & Production Ready Canada - Athabasca Basin Resources (M lbs.) 58 M lbs. Measured & Indicated Project Name Diabase Stage (E) M&I NA Inferred NA 45 M lbs. Inferred U3O8 U.S. Hardrock Pipeline (Uranium & Vanadium) Resources (M lbs.) Project Name Stage Contracte
Slide 8: Physical Uranium Initiative
Physical Uranium Initiative Purchasing drummed uranium at prevailing spot prices below most global industry mining costs: ✓ Bolsters UEC ✓ Provides strategic inventory ✓ Increases the availability of our balance sheet to support future marketing and Texas and Wyoming production as uranium prices pro
Slide 9: U.S. Infrastructure, Resources and Permits
U.S. Infrastructure, Resources and Permits Stage: Hobson Processing Plant Texas Hub & Spoke ISR Portfolio Uranium (E) Exploration Production Capacity of 2 M lbs./year Vanadium (D) In Development (NT) Near Term Production WY CO AZ NM TX Wyoming Reno Creek ISR Project U.S. Conventional Portfolio South
Slide 10: UEC At a Glance
UEC At a Glance Member of the Russell 3000® Index Cash, Equity and ~$123.4 million Inventory Holdings(1,2,3) 233.2 M 5.4 M 12.6 M 251.2M Share Structure Outstanding Warrants + Options & Stock Awards(4) Fully Diluted(1) $2.89 5,975,858 Recent Activity As of Sep 29, 2021 Avg. Daily Vol. (3-mo) $674 M
Slide 11: 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, founder Served as a U.S. Senator from 1995 to 2001, as 36 years of experience in senior roles with uranium and Chairman of GoldMining
Slide 12: Hub & Spoke Production Strategy
Hub & Spoke Production Strategy South Texas 12 URANIUMENERGY URANIUM ENERGYCORP CORP| NYSE | NYSEAMERICAN: AMERICAN:UEC UEC| URANIUMENERGY.COM | URANIUMENERGY.COM
Slide 13: Hobson is fully licensed and permitted
Hobson is fully The Processing Plant has a 2M lbs. / year licensed and permitted physical capacity 13 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 14: Palangana ISR Mine First Producing Mine Proof of Concept
Palangana ISR Mine First Producing Mine Proof of Concept $10M 6 months construction timeline Initial CAPEX • Low cash-cost of $21.77/lb during operation Production Ready • Fully permitted including expanded mine permit • Received 10-year renewal permits in 2019 Similar Costs for • The major permits
Slide 15: Palangana Production Area (PA-1)
Palangana Production Area 1 (PA-1) In-Situ Recovery (ISR) Technology Low Cost & Environmentally Friendly Palangana Ion Exchange Facility URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 16: Resin Hauling Truck And Trailer
Resin Hauling Truck And Trailer URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 17: Burke Hollow ISR Project
Burke Hollow ISR Project ▪ Discovery of six trends since 2012 ▪ 7.09M lbs. in 4.06Mt grading 0.088% U308 ▪ Leach amenability testing indicates recovery greater than 90% ▪ ~20,000 acres located ~50 miles from Hobson Processing Plant ▪ 50% of the property unexplored South Texas See news releases dated
Slide 18: Burke Hollow ISR Project
Burke Hollow ISR Project Advancing Towards Uranium Extraction The following final permits have been issued: ✓ Mine Production Area ✓ Two Class I disposal wells ✓ Aquifer Exemption ✓ Radioactive Materials License Cased monitor wells in the proposed Production Area 1 at Burke Hollow Project See news r
Slide 19: Burke Hollow ISR Project, South Texas
Burke Hollow ISR Project, South Texas The Newest & Largest ISR Wellfield Being Developed in the U.S. 2021 Production Area Development ✓ Plan to complete all exterior and interior wells, including installation of ~45 additional monitor wells ✓ Permitting activities to include sampling and pumping tes
Slide 20: Reno Creek ISR Project
Reno Creek ISR Project The largest permitted, pre-construction ISR uranium project in the U.S. Strategic Location within the Heart of the Powder River Basin, Wyoming Received a modified Permit to Construct in 2019, allowing the construction of the Central Processing Plant (CPP) and ISR wellfields 20
Slide 21: Reno Creek ISR Project Pre-Feasibility Study Underway
Reno Creek ISR Project M&I Resource 26M lbs. of U3O8 grading 0.041% within 32Mt* Pre-Feasibility Study Inferred Resource 1.49M lbs. Underway of U3O8 grading 0.039% within 1.92Mt* First time since 1980 that the major mineralized trends have been consolidated Considerable ISR exploration and expansion
Slide 22: Reno Creek: Project Timeline
Reno Creek: Project Timeline Aug 2017: Sept. 2016: UEC Closes July 2013: Updated June 2012: Repurchase of Acquisition of resource May 2018: Exploration 5% Gross the Fully June 2011: to current Licensed Reno UEC Completes success Production 22M lbs. Creek Project the Acquisition of 350-hole resource
Slide 23: Anderson Project - Arizona
Anderson Project - Arizona NI 43-101 compliant resource*: A Large U.S. Resource ▪ Indicated Resource: 29.5Mt, 17M lbs. avg. grade of 0.029% ▪ Inferred Resource: 14.3Mt, 12M lbs. with avg. grade of 0.046% 9,852 Acres Project located ~75 miles northwest of Phoenix, AZ Between 1955-1958 with ~$40M spen
Slide 24: Slick Rock Project - Colorado
Slick Rock Project - Colorado NI 43-101 Compliant Resource*: ▪ Inferred Resource: 2.5Mt, 11.6M lbs. avg. grade of 0.228% Technical Report ▪ Inferred Resource: 2.5Mt, 69.6M lbs. vanadium with avg. grade of 1.37% Low ▪ $21M initial CAPEX with an annual production of 438,000 pounds CAPEX U3O8 + vanadiu
Slide 25: 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 / Exploration / 8.9M lbs. in 7.8Mt grading 0.052% U3O
Slide 26: Alto Paraná Titanium Project
Alto Paraná Titanium Project Project Overview ▪ One of the highest-grade and largest-known Ferro- Titanium deposits in the world ▪ NI 43-101 compliant resource with a mineral exploration claim of 70,498 hectares UEC pilot plant at Alto Parana ▪ The PEA’s first phase was completed in early 2021 and %
Slide 27: Titanium Feedstock Market
Titanium Feedstock Market – TiO2 prices hitting 3-year highs Price of TiO2 Feedstock - ilmenite (USD per tonne) $400 $358 $350 ▪ 90% of TiO2 feedstocks (ilmenite) used for pigment $300 UEC acquired $250 +225% manufacturing $200 Alto Paraná $150 ▪ Strong price recovery for ilmenite since 2017, with $
Slide 28: Investment Summary
Investment Summary ▪ Strong balance sheet with ~$123 million in cash, equity and physical holdings upon closing of recent offering ▪ Fully permitted and state of the art infrastructure advantage with Hobson Processing Plant ▪ Pipeline of fully licensed, low-cost ISR projects – potential production p
Slide 29: Nuclear Energy
Nuclear Energy Clean, Safe, Reliable & Economic Perfect Compliment to Renewable Wind and Solar Saves Lives and Improves Quality of Life 29 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 30: Nuclear Power = Carbon Free - Clean Energy
Nuclear Power = Carbon Free - Clean Energy 55% of America’s Clean Energy The only low carbon energy source that provides scalable, 24-7 baseload power Source: World Nuclear Association – Harmony Program 30 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 31: Nuclear Power = Safest Form of Electricity Generation
Nuclear Power = Safest Form of Electricity Generation © 2019 Source: World Nuclear Association – Harmony Program 31 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 32: 2021 Polar Vortex – Nuclear Reliability at 95%
2021 Polar Vortex – Nuclear Reliability at 95% Nuclear 92.5% Geothermal 74.3% Capacity Factor by Natural Gas 56.6% Energy Source in 2020 Hydropower 41.5% Coal 40.2% Wind 35.4% Solar 24.9% Source: U.S. Energy Information Administration 32 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 33: Nuclear Power = Lowest Levelized Cost of Electricity
Nuclear Power = Lowest Levelized Cost of Electricity For Extended Life Plants vs any Other Source Most nuclear plants in the U.S. have or will extend their operational lives by at least 20 - 40 years © 2019 Projected Costs of Generating Electricity, 2020 Edition, International Energy Agency and Nucl
Slide 34: Support for Nuclear Energy is Strong and Increasing
Support for Nuclear Energy is Strong and Increasing Favorability to Nuclear Energy 1983-2021 Overall, do you strongly favor, somewhat favor, somewhat oppose the use of nuclear energy as one of the ways to provide electricity in the United States? Source: NuclearNewswire – ANS; Nuclearmatters.com/job
Slide 35: Small Modular Reactor (SMR) An Important Emerging Market
Small Modular Reactor (SMR) An Important Emerging Market Small Modular Reactors (SMR’s) Scalable, factory-built, smaller footprint, flexible operations, manageable investments, cost competitive, unique applications Advanced Reactors Leverages pros/cons of previous designs, takes advantage of technol
Slide 36: Restricted Primary Supply 2016 – 2035
Uranium Supply Removed from the Market Restricted Primary Supply 2016 – 2035 Sequestered, Suspended, Covid, Operational & Depletion Reductions © 2019 Source: TradeTech, May 31, 2021 36 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 37: Global Supply & Demand
Global Supply & Demand Existing Primary Production + Secondary Market Supply Million lbs Established Production Base (Weighted) Secondary Supply U308 2021 Q1 Requirements 2020 Q4 Requirements ▪ Inventory Overhang Drawing Down ▪ Uranium Price Too Low to Stimulate New Production ▪ Within the Permittin
Slide 38: Utility Procurement Cycle: Old Contracts Rolling Off
Utility Procurement Cycle: Old Contracts Rolling Off…New Contracts Need to be Signed 1.4 Billion Pounds of Contracting needed by 2035! Utility Uncommitted Demand Historic Long-Term Contracting Source: UxC Market Outlook Q3 2021 38 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 39: Bottom Line - Positive Market Outlook
Bottom Line - Positive Market Outlook ✓ Demand Growth – 57 reactors added to grid in past 8 years; 51 reactors under construction – nuclear generation has recovered to pre-Fukushima levels ✓ Strategic Interest in Physical Inventory – Producers, Developers, Financial buyers ✓ The Department of Energy
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
Slide 41: Uranium Energy Corp UEC: NYSE American
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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