One U.S. uranium company has been aggressively ramping up resources and processing capabilities for the restart of production — Uranium Energy Corp. (NYSE-A: UEC).

Dear Fellow Investor,

The writing was on the wall before Putin started the war — there were just so many new and existing nuclear plants globally, with their uranium demand far beyond current production.

When Putin attacked, it added a new catalyst. His dumped uranium and nuclear fuel are big and obvious energy security and national security issues for Western countries.

At the start of the war in February, the U.S. was nearly 60% dependent on Russia and its allies — and 99% dependent on outsiders — for the uranium to keep America’s nuclear plants operating.

These 92 reactors supply 20% of U.S. electricity and more than 50% of its carbon-free electricity.

Similar to Europe’s situation with natural gas, the U.S. has this urgent issue to address regarding uranium supply to keep electricity flowing.

And the market is reacting to the pressure: The price of uranium has already more than doubled in the last two years to approximately $50/lb.

But all evidence points toward it going far higher. The Biden administration, and both political parties in both houses of Congress, are now fully engaged.

Bottom line: Uranium production is coming back home, where it started, and now with Federal government and bipartisan support.

It should be noted, Uranium Energy Corp. (NYSE-A: UEC) acquired all of Russia’s uranium assets in the U.S. by buying Uranium One Americas in December 2021 for $125 million in cash, before Russia’s invasion of Ukraine.

As you’re about to see, this purchase, in addition to other prescient moves, has clearly established UEC as the go-to U.S. uranium play.

Two Transformative Acquisitions

The acquisition of Uranium One Americas doubled UEC’s capabilities in three key categories: Permitted wellfield satellites...mineral resources...and licensed operational processing capacity.

Uranium One was the world’s fourth largest uranium company and part of Rosatom, Russia’s State Atomic Energy Corporation.

But in its bid to establish a premier position before the new uranium bull market got up to speed, UEC didn’t stop there:

The company then acquired UEX Corp. in August this year in an all-stock transaction that further doubled its in-ground resources.

UEX’s portfolio contains high-grade projects in the world-class Athabasca Basin of Saskatchewan, including joint ventures with Cameco, Orano and Denison.

These accretive transactions are transformative, and UEC is now the largest diversified North American focused uranium company.

It is the company with strong financials that has been the driver of so much consolidation in the sector.

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A Vision For The Sector

This chutzpah comes from vision — the CEO, Amir Adnani, the Chairman, former Secretary of Energy Spencer Abraham and Executive VP Scott Melbye — are all long-term, committed advocates of U.S. energy independence and nuclear power.

The other senior management team members at UEC now include those from Uranium One and UEX — seasoned veterans with decades of uranium experience that are hard to come by during a major bullish fundamental shift in the industry.

Bottom line: UEC is production-ready with the largest resource base of fully permitted ISR projects in the U.S. The company has approximately $173 million in cash and liquid assets with no debt.

America’s Leading Uranium Company

America’s leading uranium company has several defining features:

• Fastest growing, 100% unhedged, pure-play uranium company...

• Production-ready, low-cost, environmentally friendly ISR (in-situ recovery) mining, largest resource base of fully permitted ISR projects of any U.S-based near-term producer...

• Production profile of 6.5 million pounds U₃O₈/year based on permitted and installed capacity of Wyoming and South Texas hub-and-spoke operations...

• Strong balance sheet with $173 million in cash and liquid assets with zero debt...

• Physical uranium portfolio of 5.5 million pounds of U.S.-warehoused U₃O₈ at approximately $37/lb. average cost versus a market price of $48.25/lb. (Oct 4, 2022)...

• Canadian high-grade conventional business is comprised of 29 projects, five of which are advanced resource-stage

• Owns 16% of Uranium Royalty Corp (NASDAQ: UROY), the first and only royalty company in the sector globally

Sector Backing From The U.S. Federal Government

In the U.S., for the first time in decades, both the Democrat and Republican parties support continued operation of existing nuclear power plants and growth of new, advanced and small modular reactors.

Congress and the Administration are also coming to realize our vulnerability to Russian fuel supplies and the urgent need to expand our own domestic nuclear fuel cycle.

• Proposals are before both the Senate and the House to stop imports of Russian uranium and nuclear fuel.

• On July 1, 2022, the U.S. National Nuclear Security Administration, a division of the Department of Energy, initiated the U.S. strategic uranium reserve by issuing a solicitation to purchase up to an estimated one million pounds of domestically produced U₃O₈ and associated conversion services. Proposals were submitted in August and are under evaluation.

• The Biden Administration will continue to push Congress by year-end to appropriate $1.5 billion for the Department of Energy to acquire LEU (“Low Enriched Uranium”) for the existing commercial nuclear fleet that powers one in five homes in America and HALEU (“High-Assay Low Enriched Uranium”) for emerging advanced and small modular reactors.

This will be supportive for domestic suppliers of uranium, and conversion and enrichment, and help to wean the U.S. off of Russian imports.

The U.S. uranium sector is on its way back.

And it now has a financially strong leader, Uranium Energy Corp

UEC’s Uranium Assets Ready For Deployment

In both Wyoming and South Texas, UEC has hub-and-spoke operations with permitted and development in-situ recovery (“ISR”) uranium assets that surround licensed, operational processing facilities, as demonstrated by the screens above and below.

In the Powder River Basin of Wyoming, for example, UEC has the Irigaray processing plant, licensed for 2.5 million pounds capacity, surrounded by no less than seven ISR uranium projects, four of which are fully permitted.

These and additional pipeline projects in Wyoming represent almost 66.2 million pounds of measured and indicated resources in this mining-friendly state that has historically produced over 230 million pounds of U₃O₈.

And Far More Areas To Grow Into

And it doesn’t stop there. Here are other key aspects to the Uranium Energy story:

1. Athabasca Basin — from the UEX acquisition, UEC gained 29 projects in Canada in the Athabasca Basin and Nunavut. Note that confirmation of these resources is subject to the completion of technical reports by UEC.

Acquired projects include:

• 82.8% ownership in Christie Lake (UEX showed an attributable inferred resource of 20.4 million lbs. U₃O₈)

The latest drill results represent the highest-grade mineralized intersection ever encountered at the Christie Lake Project and amongst the sector’s best uranium results of the year.

• 16.9% ownership in Kiggavik JV with Orano (66.2%) at the feasibility stage hosting an historic 127 million lbs. of indicated resource

• 15% of Cameco’s (69.9%) Millennium project in prime location in the Athabasca Basin with an historic 75.9 million lbs. total of indicated resource.

2. Additional significant ISR uranium (and titanium) resources in Paraguay

3. The largest physical uranium resource of all U.S. uranium companies with 5.5 million warehoused pounds at an average cost basis of $37/lb.

4. Substantial cash and liquid assets of $173 million for growth to production and possible additional acquisitions

5. 16% of Uranium Royalty Corp., the world’s only royalty company for uranium projects

Management Is Ready For Action

These developments do not surprise industry veterans.

UEC's operations are managed by professionals with decades of hands-on experience in the key facets of uranium exploration, development, mining and global marketing.

Consider the experience that UEC brings to bear (click image to enlarge):

Magnitude Of Opportunity

The magnitude of the potential gain here is big.

With the U.S. energy and national security at stake, all constituents want UEC to continue its growth and succeed with new and increased production.

It’s like the company that everyone has been needing has finally moved back into town.

All aspects of our high-tech economy need electricity more than ever — families, businesses, now cars and trucks. The federal and local governments need success here.

What else do you do?

Using Russian nuclear fuel to help Putin is not a prospect, especially considering his weaponization of energy supplies.

Canada represents reliable supply from a resource-friendly ally and has taken major steps to increase its longer term-project pipeline there.

UEC is the uranium company that is stepping up with major investments when the sector needs it most, and government backing will contribute to energy independence success.

With a market cap of $1 billion, and the stock still trading $3 to $4/share — and with $173 million in cash and liquid assets — the value proposition is several times above the current market cap.

No other US uranium company is larger, and the only Canadian producer, Cameco, has a $10 billion market cap.

UEC has a lot of sky to grow into.

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