Resource World Magazine

A P R I L / M A Y 2 0 1 6 www.resourceworld.com 37 uRANIuM www.resourceworld.com H aving just raised $10 million with institutional investors, including JP Morgan and Resource Capital Investment (a division of Sprott Inc.), US-based uranium energy Corp. [UEC- NYSE] continues to advance its most promising projects and leverage itself for a revival in the commodity price. Amir Adnani, President and CEO of UEC, stated, "With this capital raise, UEC is in a strong financial position to advance our portfolio of uranium projects with ongoing exploration and production per- mitting at the Burke Hollow ISR project in South Texas, permitting for baseline studies at the Anderson Project in Arizona and exploration/permitting at our ISR projects in Paraguay. We continue to main- tain pre-production readiness at the fully permitted Goliad ISR Project and are pro- duction-ready at our Palangana ISR mine, and Hobson processing plant. We remain uniquely positioned to capitalize on the anticipated strengthening of the uranium market." The company has plans for a Hub-and- Spoke production strategy in South Texas. Its Hobson processing plant has a 2 million lb/year capacity and is currently licensed to process up to 1 million lbs annu- ally. Until uranium prices become more favourable, the Hobson plant is operating at a reduced pace processing yellowcake from the Palangana ISR operation 94 miles to the south. Limited production began at Palangana in January 2011 for an initial capital cost of just $10 million. The Palangana opera- tion currently is only capturing residual lbs of U 3 O 8 and, for now, the company has deferred major pre-extraction expendi- tures but reports that it "remains in a state of operational readiness." Meanwhile, UEC continues to advance its Goliad ISR project which it anticipates to be the next in line for production. The project is 43 miles west of Hobson and is fully licensed and permitted. Current measured and indicated resources are 5.4 million lbs U 3 O 8 contained in 3.8 million tonnes averaging 0.05% U 3 O 8 . Inferred resources add another 1.5 million lbs in 1.5 million tonnes averaging 0.05% U 3 O 8 . UEC has 20 uranium projects in Texas, Arizona, Colorado and Wyoming, ranging from the pre-production to exploration- stage and all fit within the company's low-cost, scalable Hub-and-Spoke produc- tion strategy with its Hobson Plant acting as the central processing hub. The company also has promising ISR projects in Paraguay that cover over 750,000 acres. To date, over $50 million has been spent on exploration and host ISR amenable resources. UEC has 115.6 million shares outstand- ing with a market capitalization of $88 million and $20 million in long term debt. Sprott Resource Lending Partnership and CEF (Capital Markets) Ltd. hold the $20 million senior secured Credit Facility. Principal payments have been deferred to February 2019. At the moment, the com- pany has over $10 million in the bank. n UEC positioned to take advantage of rising uranium prices

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