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Item 1. Financial Statements

2021-06-09 compared with 2021-03-16 · 336 added, 261 removed, 588 unchanged (50% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2021

FOR THE NINE MONTHS ENDED APRIL 30, 2021

(Unaudited – Expressed in U.S.

2 unchanged sentences

(Unaudited – Expressed in U.S.

January 31, 2021

April 30, 2021

July 31, 2020

30 unchanged sentences

Accumulated deficit

Accumulated other comprehensive loss

Accumulated other comprehensive income (loss)

TOTAL LIABILITIES AND EQUITY

4 unchanged sentences

(Unaudited – Expressed in U.S.

Three Months Ended January 31,

Six Months Ended January 31,

Three Months Ended April 30,

Nine Months Ended April 30,

COSTS AND EXPENSES

6 unchanged sentences

Interest expenses and finance costs

Income (loss) from equity-accounted investment

Income from equity-accounted investment

Gain on loan extinguishment

Gain on disposition of assets

(Loss) gain on disposition of assets

OTHER INCOME (EXPENSES)

11 unchanged sentences

(Unaudited – Expressed in U.S.

Six Months Ended January 31,

Nine Months Ended April 30,

NET CASH PROVIDED BY (USED IN):

5 unchanged sentences

Amortization of long-term debt discount

Gain on disposition of assets

Loss (gain) on disposition of assets

Gain on loan extinguishment

Loss (income) from equity-accounted investment

Income from equity-accounted investment

Deferred tax benefits

Foreign exchange loss

Changes in operating assets and liabilities

6 unchanged sentences

FINANCING ACTIVITIES

Proceeds from share issuance, net of issuance costs

Repayment of promissory note

Repayment of long-term debt

Proceeds from share issuances, net of issuance costs

Repayments of long-term debt

Repayments of other loans

Proceeds from a government loan

NET CASH PROVIDED BY FINANCING ACTIVITIES

13 unchanged sentences

(Unaudited – Expressed in U.S.

Additional Paid-

Accumulated Other

Additional Paid-in

Share Issuance

Accumulated Other Comprehensive

Comprehensive Income

Stockholders'

Income (Loss)

Balance, July 31, 2020

20 unchanged sentences

Balance, January 31, 2021

Issued under ATM offering, net of issuance costs

Issued under direct offerings, net of issuance costs

Issued upon exercise of stock options

Issued upon exercise of warrants

Stock-based compensation

Common stock issued for consulting services

Common stock issued under Stock Incentive Plan

Amortization of stock-based compensation

Issued for equity financing as issuance costs

Net loss for the period

Other comprehensive income

Balance, April 30, 2021

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(Unaudited – Expressed in U.S.

Accumulated Other

Additional Paid-in

Share Issuance

Accumulated Other Comprehensive

Comprehensive Income

Stockholders'

Income (Loss)

Balance, July 31, 2019

15 unchanged sentences

Balance, January 31, 2020

Stock-based compensation

Common stock issued under Stock Incentive Plan

Amortization of stock-based compensation

Net loss for the period

Other comprehensive loss

Balance, April 30, 2020

The accompanying notes are an integral part of these condensed consolidated financial statements.

1 unchanged sentence

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

4 unchanged sentences

and its subsidiary companies and a controlled partnership (collectively, the “Company” or “we”) are engaged in uranium and titanium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates and titanium minerals, on projects located in the United States, Canada and the Republic of Paraguay.

At January 31, 2021, we had cash and cash equivalents of $8.7 million and term deposits of $4.0 million.

Subsequent to January 31, 2021, we received net proceeds of $28.2 million through the sale of our common shares under an at-the-market offering (refer to Note 13:

Capital Stock).

At January 31, 2021, we had $18.0 million of term debt with a maturity date of January 31, 2022, which became a current liability at January 31, 2021, resulting in a working capital deficit of $5.0 million.

However, we believe our existing cash resources will provide sufficient funds to repay the $18.0 million principal amount when it comes due and carry out our planned operations for 12 months from the date that our condensed consolidated financial statements are issued.

As at April 30, 2021, we had a working capital of $64.2 million including cash and cash equivalents of $43.9 million, term deposits of $4.0 million and uranium inventory holdings of $26.2 million.

During the three months ended and subsequent to April 30, 2021, we entered into agreements to purchase 2.505 million pounds of uranium inventories for a total purchase price of $75.9 million, of which $18.1 million will become due in the next 12 months from the date that our condensed consolidated financial statements are issued (refer to Note 4:

Inventories).

In addition, as at April 30, 2021, we had $10.0 million of term debt with a maturity date of January 31, 2022.

However, we believe our existing cash resources and if necessary, cash generated from the sale of the Company’s current assets will provide sufficient funds to fulfill our uranium inventory purchase commitments, repay the $10.0 million principal debt amount when it becomes due, and carry out our planned operations for 12 months from the date that our condensed consolidated financial statements are issued.

Our continuation as a going concern for a period beyond those 12 months will be dependent upon our ability to obtain adequate additional financing, as our operations are capital intensive and future capital expenditures are expected to be substantial.

9 unchanged sentences

In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation have been made.

Operating results for the six months ended January 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2021 (“Fiscal 2021”).

Operating results for the nine months ended April 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2021 (“Fiscal 2021”).

Exploration Stage

3 unchanged sentences

As a result, and despite the fact that we commenced extraction of mineralized materials at the Palangana Mine in November 2010, we remain in the Exploration Stage, as defined under Industry Guide 7, and will continue to remain in the Exploration Stage until such time that proven or probable reserves have been established.

Since we commenced the extraction of mineralized materials at the Palangana Mine without having established proven or probable reserves, any mineralized materials established or extracted from the Palangana Mine should not in any way be associated with having established or produced from proven or probable reserves.

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

In accordance with U.S.

4 unchanged sentences

We are in the Exploration Stage which has resulted in us reporting larger losses than if we had been in the Production Stage due to the expensing, rather than capitalizing, of expenditures relating to ongoing mill and mine development activities.

Additionally, there would be no corresponding amortization allocated to future reporting periods of our Company since those costs would have been expensed previously, resulting in both lower inventory costs and cost of goods sold and results of operations with higher gross profits and lower losses than if we had been in the Production Stage.

Additionally, there would be no corresponding amortization allocated to future reporting periods of our Company since those costs would have been expensed previously, resulting in both lower produced inventory costs and cost of goods sold and results of operations with higher gross profits and lower losses than if we had been in the Production Stage.

Any capitalized costs, such as expenditures relating to the acquisition of mineral rights, are depleted over the estimated extraction life using the straight-line method.

1 unchanged sentence

TERM DEPOSITS

At January 31, 2021, term deposits totaled $4,000,000 (July 31, 2020:

As of April 30, 2021, term deposits totaled $4,000,000 (July 31, 2020:

$Nil), which are held at a major financial institution with an initial term of four to six months bearing interest rate at 0.25%.

MINERAL RIGHTS AND PROPERTIES

Mineral Rights

At January 31, 2021, we had mineral rights in the States of Arizona, Colorado, New Mexico, Wyoming and Texas, in Canada and in the Republic of Paraguay.

These mineral rights were acquired through staking, purchase or lease agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium and titanium.

At January 31, 2021, annual maintenance payments of approximately $2.2 million will be required to maintain these mineral rights.

During the three months ended April 30, 2021, we entered into agreements to purchase 2,305,000 pounds of uranium inventories, of which 900,000 pounds of uranium inventory were received.

As at April 30, 2021, costs of inventories consisted of the following:

April 30, 2021

July 31, 2020

Supplies and work-in-progress

Uranium concentrates from production

Purchased uranium inventories

As of April 30, 2021, our uranium inventory purchase commitments for the next two fiscal years are as the follows:

Purchase Commitments

Total Purchase Price

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

Subsequent to April 30, 2021, we received 100,000 pounds of uranium inventories at a purchase price of $2,745,000, and entered into agreements to purchase 200,000 pounds of uranium inventories.

MINERAL RIGHTS AND PROPERTIES

Mineral Rights

As of April 30, 2021, we had mineral rights in the States of Arizona, Colorado, New Mexico, Wyoming and Texas, in Canada and in the Republic of Paraguay.

These mineral rights were acquired through staking, purchase or lease agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium and titanium.

As of April 30, 2021, annual maintenance payments of approximately $2.7 million will be required to maintain these mineral rights.

Mineral rights and property acquisition costs consist of the following:

January 31, 2021

April 30, 2021

July 31, 2020

20 unchanged sentences

Since we commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

During the three and six months ended January 31, 2021 and 2020, we continued with reduced operations at the Palangana Mine to capture residual uranium only.

As a result, no depletion for the Palangana Mine was recorded on our Condensed Consolidated Financial Statements for the three and six months ended January 31, 2021 and 2020.

During the three and nine months ended April 30, 2021 and 2020, we continued with reduced operations at the Palangana Mine to capture residual uranium only.

As a result, no depletion for the Palangana Mine was recorded on our condensed consolidated financial statements for the three and nine months ended April 30, 2021 and 2020.

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

Mineral property expenditures incurred on our projects were as follows:

Three Months Ended January 31,

Six Months Ended January 31,

Three Months Ended April 30,

Nine Months Ended April 30,

Mineral Property Expenditures

13 unchanged sentences

Property, plant and equipment consist of the following:

January 31, 2021

April 30, 2021

July 31, 2020

5 unchanged sentences

Land and Buildings

During the three months ended January 31, 2021, we purchased 100 acres of land (the “Goliad Land Purchase”) within our Goliad Project located in Goliad County, Texas, for total consideration of $487,995, of which $380,000 was financed with a promissory note.

During the nine months ended April 30, 2021, we purchased 100 acres of land (the “Goliad Land Purchase”) within our Goliad Project located in Goliad County, Texas, for total consideration of $487,995, of which $380,000 was financed with a promissory note.

Refer to Note 11:

Other Loans Payable.

Other Loans Payable herein.

RESTRICTED CASH

Restricted cash includes cash and cash equivalents and money market funds as collateral for various bonds posted in favor of applicable state regulatory agencies in Arizona, Texas and Wyoming, and for estimated reclamation costs associated with our Anderson Project, Palangana Mine, Hobson Processing Facility and Reno Creek Project.

Restricted cash includes cash and cash equivalents and money market funds pledged as collateral for various bonds posted in favor of applicable state regulatory agencies in Arizona, Texas and Wyoming, and for estimated reclamation costs associated with our Anderson Project, Palangana Mine, Hobson Processing Facility and Reno Creek Project.

Restricted cash will be released upon the completion of reclamation of a mineral property or the restructuring of a surety and collateral arrangement.

January 31, 2021

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

April 30, 2021

(Unaudited – Expressed in U.S.

During the three months ended April 30, 2021, we paid an additional $198,377 as surety bond collateral for inflation adjustments upon renewal of various surety bonds relating to our Palangana Mine and Hobson Processing Facility.

April 30, 2021

July 31, 2020

Restricted cash, beginning of period

Additional surety bond collateral

Interest received

Restricted cash, end of period

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

(Unaudited – Expressed in U.S.

Subsequent to January 31, 2021, we paid an additional $198,377 as surety bond collateral for inflation adjustments upon renewal of various surety bonds relating to our Palangana Mine and Hobson Processing Facility.

Cash, cash equivalents and restricted cash are included in the following accounts at January 31, 2021 and 2020:

January 31, 2021

January 31, 2020

Cash, cash equivalents and restricted cash are included in the following accounts as of April 30, 2021 and 2020:

April 30, 2021

April 30, 2020

Cash and cash equivalents

2 unchanged sentences

EQUITY-ACCOUNTED INVESTMENT

At January 31, 2021, we owned 14,000,000 shares of Uranium Royalty Corp.

As of April 30, 2021, we owned 14,000,000 shares of Uranium Royalty Corp.

(“URC”), representing a 18.8% (July 31, 2020:

1 unchanged sentence

In addition, two of our officers are members of URC’s board of directors, and one of which is also an executive officer of URC.

As a consequence, our ability to exercise significant influence over URC’s operating and financing policies continued to exist during the three and six months ended January 31, 2021.

URC is a public company listed on the TSX Venture Exchange with the trading symbol “URC.V”.

For the three and six months ended January 31, 2021 and 2020, income (loss) from investment in URC consisted of the following:

Three Months Ended January 31,

Six Months Ended January 31,

As a consequence, our ability to exercise significant influence over URC’s operating and financing policies continued to exist during the three and nine months ended April 30, 2021.

URC is a public company listed on the TSX Venture Exchange with the trading symbol “URC.V” and on NASDAQ with the trading symbol “UROY”.

For the three and nine months ended April 30, 2021 and 2020, income (loss) from investment in URC consisted of the following:

Three Months Ended April 30,

Nine Months Ended April 30,

Share of income (loss) from URC

Gain on ownership interest dilution

For the three and six months ended January 31, 2021, we recorded translation gain of $486,038 and $548,799, respectively, and for three and six months ended January 31, 2020, we recorded translation loss of $39,648 and $49,542, respectively, as a result of translating the ending balance of investment in URC in Canadian Dollars to U.S.

For the three and nine months ended April 30, 2021 and 2020, we recorded a gain on ownership interest dilution as a result of URC issuing more shares from the exercises of URC’s share purchase warrants.

For the three and nine months ended April 30, 2021, we recorded translation gains of $493,101 and $1,041,900, respectively, and for three and nine months ended April 30, 2020, we recorded translation losses of $479,148 and $528,690, respectively, as a result of translating the ending balance of the investment in URC denominated in Canadian Dollars to U.S.

Dollars using the period end exchange rate, which was included in other comprehensive income (loss) in our condensed consolidated statements of operations and comprehensive loss.

During the six months ended January 31, 2021, the change in carrying value of our investment in URC is summarized as follows:

During the nine months ended April 30, 2021, the change in carrying value of our investment in URC is summarized as follows:

Balance, July 31, 2020

Share of loss from URC

Income from investment in URC

Gain on ownership interest dilution

Translation gain

Balance, January 31, 2021

At January 31, 2021, the fair value of our investment in URC was approximately $21.9 million.

RELATED PARTY TRANSACTIONS

During the three and six months ended January 31, 2021, we incurred $17,464 and $34,141 (three and six months ended January 31, 2020:

$35,657 and $68,490), respectively, in general and administrative costs paid to Blender Media Inc.

(“Blender”), a company controlled by Arash Adnani, a direct family member of our President and Chief Executive Officer, for various services, including information technology, financial subscriptions, corporate branding, media, website design, maintenance and hosting, provided by Blender to the Company.

At January 31, 2021, the amount owing to Blender was $16,520 (July 31, 2020:

Balance, April 30, 2021

As of April 30, 2021, the fair value of our investment in URC was approximately $49.3 million.

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

Subsequent to April 30, 2021, on May 20, 2021, we participated in an equity financing and acquired an additional 1,000,000 common shares of URC at a price of CAD$4.10 per share for total consideration of $3,396,852.

RELATED PARTY TRANSACTIONS

During the three and nine months ended April 30, 2021, we incurred $17,900 and $52,041 (three and nine months ended April 30, 2020:

$36,849 and $105,339), respectively, in general and administrative costs paid to Blender Media Inc.

As of April 30, 2021, the amount owing to Blender was $nil (July 31, 2020:

LONG-TERM DEBT

As at January 31, 2021, our long-term debt consisted of the following:

January 31, 2021

As of April 30, 2021, our long-term debt consisted of the following:

April 30, 2021

July 31, 2020

4 unchanged sentences

Long-term debt, net of current portion

For the three and six months ended January 31, 2021, amortization of debt discount totaled $381,828 and $825,695, (three and six months ended January 31, 2020:

For the three and nine months ended April 30, 2021, amortization of debt discount totaled $296,401 and $1,122,096 (three and nine months ended April 30, 2020:

$399,231 and $1,244,032), respectively, which was recorded as interest expense and included in our condensed consolidated statements of operations and comprehensive loss.

During the three and six months ended January 31, 2021, we paid $368,000 and $776,889 (three and six months ended January 31, 2020:

During the three and nine months ended April 30, 2021, we paid $274,222 and $1,051,111 (three and nine months ended April 30, 2020:

$400,000 and $1,217,778), respectively, in cash to our lenders (the “Lenders”) for interest on the long-term debt.

During the three months ended January 31, 2021, we made a voluntary principal payment of $2,000,000 to one of our Lenders, which decreased the principal balance outstanding to $18,000,000 under our credit facility (the “Credit Facility”).

During the three months ended January 31, 2021, and pursuant to the terms of our Third Amended and Restated Credit Agreement with our Lenders, we issued an aggregate of 1,249,039 shares with a fair value of $1,170,000, representing 6.5% of the $18,000,000 principal balance outstanding, as payment of anniversary fees to our Lenders.

The Company’s Credit Facility with our Lenders has a maturity date on January 31, 2022, with an interest rate of 8% per annum and an underlying effective interest rate of 16.48%.

At January 31, 2021, our working capital ratio, excluding the current portion of the long-term debt, was 7.4:1, which was in compliance with the debt covenant requirement under our Credit Facility being a working capital ratio, excluding any current portion of the long-term debt, of not less than 1:1.

The aggregate yearly maturities of long-term debt based on principal amounts outstanding at January 31, 2021 are as follows:

Subsequent to January 31, 2021, we made further voluntary principal payment of $8,000,000 to our Lenders, which decreased the principal balance outstanding to $10,000,000.

OTHER LOANS PAYABLE

We applied for a Paycheck Protection Program loan and received the proceeds of $277,250 (the “PPP Loan”) during Fiscal 2020.

During the three months ended January 31, 2021, we received a Notice of Paycheck Protection Program Forgiveness Payment from the Small Business Administration regarding the approval of our application for forgiveness of our PPP Loan of $277,250 and accrued interest.

As a result, we recognized a gain on extinguishment of the PPP Loan of $278,617 during the three months ended January 31, 2021.

During the nine months ended April 30, 2021, we made voluntary principal payments totaling $10,000,000 to certain Lenders, which decreased the principal balance outstanding to $10,000,000 under our credit facility (the “Credit Facility”).

During the nine months ended April 30, 2021, and pursuant to the terms of our Third Amended and Restated Credit Agreement with our Lenders, we issued an aggregate of 1,249,039 shares with a fair value of $1,170,000, representing 6.5% of the $18,000,000 principal balance outstanding at the time, as payment of anniversary fees to our Lenders.

The Company’s Credit Facility with our remaining Lender has a maturity date on January 31, 2022, with an interest rate of 8% per annum and an underlying effective interest rate of 18.10%.

As of April 30, 2021, our working capital ratio, excluding the current portion of the long-term debt, was 32:1, which was in compliance with the debt covenant requirement under our Credit Facility being a working capital ratio, excluding any current portion of the long-term debt, of not less than 1:1.

The aggregate yearly maturities of long-term debt based on principal amounts outstanding as at April 30, 2021 are as follows:

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

During the three months ended January 31, 2021, in connection with the Goliad Land Purchase, we issued a promissory note with a principal amount of $380,000 to Mar G B Ranch LLC (the “Promissory Note”).

OTHER LOANS PAYABLE

During Fiscal 2020, we applied for a Paycheck Protection Program loan and received the proceeds of $277,250 (the “PPP Loan”).

During the nine months ended April 30, 2021, we received a Notice of Paycheck Protection Program Forgiveness Payment from the Small Business Administration regarding the approval of our application for forgiveness of our PPP Loan of $277,250 and accrued interest.

As a result, we recognized a gain on extinguishment of the PPP Loan of $278,617 during the nine months ended April 30, 2021.

During Fiscal 2020, our Canadian subsidiary received a loan of $29,842 (CAD$40,000) under the Canadian Emergency Business Account Program (“CEBA”), which provides financial relief for Canadian small businesses during the COVID-19 pandemic (the “CEBA Loan”).

During the three months ended April 30, 2021, we repaid CAD$30,000 of the CEBA Loan, 75% of the total CEBA Loan principal before its initial term date on December 31, 2022 and received a CEBA Loan Closure Confirmation for forgiveness of CAD$10,000.

As a result, we recognized a gain on extinguishment of the CEBA Loan of $7,759 during the three months ended April 30, 2021.

During the nine months ended April 30, 2021, in connection with the Goliad Land Purchase, we issued a promissory note with a principal amount of $380,000 to a landowner (the “Promissory Note”).

The Promissory Note carries an interest rate of 5% per annum with principal and interest payable in 24 monthly installments with a maturity date of November 1, 2022.

We may prepay the Promissory Note in any amount at any time before the maturity date without penalty.

During the three months ended January 31, 2021, we paid $3,111 in cash for interest on the Promissory Note.

At January 31, 2021, other loans payable consisted of the following:

January 31, 2021

During the three and nine months ended April 30, 2021, we paid $4,124 and $7,235, respectively, in cash for interest on the Promissory Note.

As of April 30, 2021, other loans payable consisted of the following:

April 30, 2021

July 31, 2020

10 unchanged sentences

Balance, July 31, 2020

Balance, January 31, 2021

Balance, April 30, 2021

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

April 30, 2021

(Unaudited – Expressed in U.S.

The estimated amounts and timing of cash flows and assumptions used for ARO estimates are as follows:

January 31, 2021

April 30, 2021

July 31, 2020

3 unchanged sentences

Discount rate

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

(Unaudited – Expressed in U.S.

The undiscounted amounts of estimated cash flows for the next five fiscal years and beyond are as follows:

3 unchanged sentences

The lease for the processing facility has an evergreen option that can continue for so long as it is in operation.

During the three and six months ended January 31, 2021 and 2020, total lease expenses include the following components:

Three Months Ended January 31,

Six Months Ended January 31,

During the three and nine months ended April 30, 2021 and 2020, total lease expenses include the following components:

Three Months Ended April 30,

Nine Months Ended April 30,

Operating leases

1 unchanged sentence

Total Lease Expenses

As at January 31, 2021, the weighted average remaining lease term was 15.3 years and the weighted average discount rate was 4.74%.

During the six months ended January 31, 2021, cash paid for amounts included in the measurement of operating lease liabilities totaled $114,280.

As at April 30, 2021, the weighted average remaining lease term was 16.1 years and the weighted average discount rate was 4.74%.

During the nine months ended April 30, 2021, cash paid for amounts included in the measurement of operating lease liabilities totaled $170,276.

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

April 30, 2021

(Unaudited – Expressed in U.S.

Minimum future lease payments under operating leases with terms longer than one year are as follows:

5 unchanged sentences

Current lease liabilities are included in Other Current Liabilities, and non-current lease liabilities are included in Other Non-Current Liabilities in our consolidated balance sheets.

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

(Unaudited – Expressed in U.S.

CAPITAL STOCK

1 unchanged sentence

On September 23, 2020, we completed a public offering of 12,500,000 units at a price of $1.20 per unit for gross proceeds of $15,000,000 (the “September 2020 Offering”).

Each unit was comprised of one share of our Company and one-half of one share purchase warrant, and each whole warrant entitles its holder to acquire one share of our Company at an exercise price of $1.80 per share and expiring 24 months from the date of issuance.

Each unit consisted of one share of our Company and one-half of one share purchase warrant, and each whole warrant entitles its holder to acquire one share of our Company at an exercise price of $1.80 per share and expiring 24 months from the date of issuance.

In connection with the September 2020 Offering, we also issued compensation share purchase warrants to agents as part of share issuance costs to purchase 583,333 shares of our Company exercisable at an exercise price of $1.80 per share and expiring 24 months from the date of issuance.

The shares were valued at the Company’s closing price of $0.96 per share at September 23, 2020.

The shares were valued at the Company’s closing price of $0.96 per share on September 23, 2020.

The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions.

3 unchanged sentences

Expected Annual Dividend Yield

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

April 30, 2021

(Unaudited – Expressed in U.S.

The net proceeds from the September 2020 Offering were allocated to the fair values of the shares and share purchase warrants as presented below.

9 unchanged sentences

Wainwright & Co., LLC and certain co-managers as set forth in the ATM Offering Agreement (collectively, the “ATM Managers”), as amended in Fiscal 2020, under which the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $30 million through the ATM Managers (collectively, the “ATM Offering”).

During the three months ended January 31, 2021, we issued 632,487 shares of the Company’s common stock at a weighted average price of $1.74 per share under the ATM Offering for net cash proceeds of $1,074,337.

Subsequent to January 31, 2021, we issued 13,036,419 shares of the Company’s common stock at a weighted average price of $2.22 under the ATM Offering for net cash proceeds of $28,246,612.

During the nine months ended April 30, 2021, we issued 13,668,906 shares of the Company’s common stock at a weighted average price of $2.19 per share under the ATM Offering for net cash proceeds of $29,320,949.

On March 19, 2021, we completed a registered direct offering of 10,000,000 shares of the Company’s common stock at a price of $3.05 per share for net proceeds of $29,083,710 (the “March 2021 Offering”).

On April 8, 2021, we completed a registered direct offering of 3,636,364 shares of the Company’s common stock at a price of $3.30 per share for net proceeds of $11,315,966 (the “April 2021 Offering”).

In connection with the April 2021 Offering, we also issued, on a private placement basis, 181,818 common stock purchase warrants (each, an “Agent Warrant”) to the agent as partial compensation, and each Agent Warrant entitles its holder to acquire one share of common stock at an exercise price of $4.125 per share and expiring five years from the date of issuance.

The Agent Warrants were valued at $1.80 per share using the Black-Scholes option pricing model with the following assumptions.

Expected Risk Free Interest Rate

Expected Annual Volatility

Expected Contractual Life in Years

Expected Annual Dividend Yield

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

Share Purchase Warrants

A continuity schedule of outstanding share purchase warrants for the six months ended January 31, 2021, is as follows:

A continuity schedule of outstanding share purchase warrants for the nine months ended April 30, 2021, is as follows:

Weighted Average

4 unchanged sentences

Balance, January 31, 2021

A summary of share purchase warrants outstanding and exercisable at January 31, 2021, is as follows:

Issued in connection with April 2021 Offering

Balance, April 30, 2021

During the three and nine months ended April 30, 2021, we received cash proceeds of $3,399,303 and $3,401,193, and issued 3,598,200 and 3,599,250 shares, respectively, from the exercise of 8,145,840 and 8,146,890 share purchase warrants, respectively.

A summary of share purchase warrants outstanding and exercisable as of April 30, 2021, is as follows:

Weighted Average

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Number of Warrants

Weighted Average Remaining Contractual

April 3, 2021

Weighted Average

Remaining Contractual

August 9, 2022

September 23, 2022

Subsequent to January 31, 2021, we received cash proceeds of $511,726 and issued 435,542 shares upon the exercise of 1,597,333 share purchase warrants.

April 5, 2026

Stock Options

At January 31, 2021, we had one stock option plan, our 2020 Stock Incentive Plan, which superseded and replaced our 2019 Stock Incentive Plan.

A continuity schedule of outstanding stock options for the underlying shares for the six months ended January 31, 2021, is as follows:

Number of Stock Options

Weighted Average Exercise Price

As of April 30, 2021, we had one stock option plan, our 2020 Stock Incentive Plan, which superseded and replaced our 2019 Stock Incentive Plan.

A continuity schedule of outstanding stock options for the underlying shares for the nine months ended April 30, 2021, is as follows:

Number of Stock

Weighted Average

Exercise Price

Balance, July 31, 2020

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Balance, January 31, 2021

Balance, April 30, 2021

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

During the three and six months ended January 31, 2021 and 2020, the total number of stock options exercised, the number of shares issued upon exercise of those options and the cash received from such exercises are as follows:

Three Months Ended January 31,

Six Months Ended January 31,

During the three and nine months ended April 30, 2021 and 2020, the total number of stock options exercised, the number of shares issued upon exercise of those options and the cash received from such exercises are as follows:

Three Months Ended April 30,

Nine Months Ended April 30,

Number of Options Exercised on Forfeiture Basis

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Total Intrinsic Value of Options Exercised

Subsequent to January 31, 2021, we received further cash proceeds of $381,631 and issued 680,043 shares of the Company upon the exercise of 984,223 stock options.

A continuity schedule of outstanding unvested stock options at January 31, 2021, and the changes during the period, is as follows:

Subsequent to April 30, 2021, we received further cash proceeds of $380,776 and issued 704,423 shares of the Company upon the exercise of 888,251 stock options.

A continuity schedule of outstanding unvested stock options as of April 30, 2021, and the changes during the period, is as follows:

Number of Unvested

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Balance, January 31, 2021

At January 31, 2021, unrecognized stock-based compensation expense related to the unvested portion of stock options totaled $1,241,072 to be recognized over the next 1.17 years.

At January 31, 2021, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was $7,093,519 (vested:

Balance, April 30, 2021

As of April 30, 2021, unrecognized stock-based compensation expense related to the unvested portion of stock options totaled $922,396 to be recognized over the next 1.06 years.

As of April 30, 2021, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was $20,034,091 (vested:

$10,709,934 and unvested:

A summary of stock options outstanding and exercisable at January 31, 2021, is as follows:

A summary of stock options outstanding and exercisable as of April 30, 2021, is as follows:

Options Outstanding

Options Exercisable

Range of Exercise Prices

Range of Exercise

Outstanding at

Janury 31, 2021

Weighted Average Exercise Price

Weighted Average Remaining Contractual Term (Years)

April 30, 2021

Exercise Price

Weighted Average

Contractual Term

Exercisable at

January 31, 2021

Weighted Average Exercise Price

Weighted Average Remaining Contractual Term (Years)

April 30, 2021

Average Exercise

Weighted Average

Contractual Term

URANIUM ENERGY CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

Restricted Stock Units

A summary of outstanding and unvested restricted stock units (“RSU”s) at January 31, 2021, is as follows:

Number of Restricted Stock Units

Grant Date Fair Value

Remaining Life (Years)

Aggregate Intrinsic Value

A summary of outstanding and unvested restricted stock units (“RSU”s) as of April 30, 2021, is as follows:

Number of Restricted

Remaining Life

Aggregate Intrinsic

July 30, 2019

July 16, 2020

During the three and six months ended January 31, 2021, stock-based compensation relating to the RSUs totaled $271,834 and $543,668 (three and six months ended January 31, 2020:

During the three and nine months ended April 30, 2021, stock-based compensation relating to RSUs totaled $262,970 and $806,638 (three and nine months ended April 30, 2020:

$66,928 and $200,784), respectively.

At January 31, 2021, outstanding unvested RSUs totaled 1,615,000 (July 31, 2020:

As of April 30, 2021, outstanding unvested RSUs totaled 1,615,000 (July 31, 2020:

1,615,000), and unrecognized compensation costs relating to unvested RSUs totaled $508,861, which is expected to be recognized over a period of approximately 1.14 years.

Performance Based Restricted Stock Units

During the three and six months ended January 31, 2021, stock-based compensation relating to target performance based restricted stock units (“PRSU”s) totaled $37,544 and $75,088 (three and six months ended January 31, 2020:

During the three and nine months ended April 30, 2021, stock-based compensation relating to target performance based restricted stock units (“PRSU”s) totaled $37,544 and $112,632 (three and nine months ended April 30, 2020:

$68,165 and $204,495), respectively.

At January 31, 2021, outstanding unvested PRSUs totaled 333,750 (July 31, 2020:

As of April 30, 2021, outstanding unvested PRSUs totaled 333,750 (July 31, 2020:

333,750), and unrecognized compensation costs relating to unvested PRSUs totaled $126,720, which is expected to be recognized over a period of approximately 0.72 years.

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A summary of stock-based compensation expense is as follows:

Three Months Ended January 31,

Six Months Ended January 31,

Three Months Ended April 30,

Nine Months Ended April 30,

Stock-Based Compensation for Consultants

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

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The following table reconciles the weighted average number of shares used in the calculation of the basic and diluted loss per share:

Three Months Ended January 31,

Six Months Ended January 31,

Three Months Ended April 30,

Nine Months Ended April 30,

Net Loss for the Period

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Net Loss per Share, Basic and Diluted

For the three and six months ended January 31, 2021 and 2020, all outstanding stock options, RSUs, PRSUs and share purchase warrants were excluded from the calculation of the diluted loss per share since their effects would be anti-dilutive.

For the three and nine months ended April 30, 2021 and 2020, all outstanding stock options, RSUs, PRSUs and share purchase warrants were excluded from the calculation of the diluted loss per share since their effects would be anti-dilutive.

SEGMENTED INFORMATION

We currently operate in one reportable segment which is focused on uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates.

At January 31, 2021, our long-term assets located in the United States totaled $58,196,798 or 68% of our total long-term assets of $85,704,749.

As of April 30, 2021, our long-term assets located in the United States totaled $58,294,295 or 67% of our total long-term assets of $87,144,864.

The table below provides a breakdown of the long-term assets by geographic segments:

January 31, 2021

April 30, 2021

United States

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2021

April 30, 2021

(Unaudited – Expressed in U.S.

The tables below provide a breakdown of our operating results by geographic segments for the three and six months ended January 31, 2021 and 2020.

The tables below provide a breakdown of our operating results by geographic segments for the three and nine months ended April 30, 2021 and 2020.

All intercompany transactions have been eliminated.

Three Months Ended January 31, 2021

United States

Three Months ended April 30, 2021

Statement of Operations

United States

Costs and Expenses:

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Loss before income taxes

Three Months Ended January 31, 2020

United States

Three Months Ended April 30, 2020

Statement of Operations

United States

Costs and Expenses:

5 unchanged sentences

Loss before income taxes

Six Months Ended January 31, 2021

United States

Nine Months Ended April 30, 2021

Statement of Operations

United States

Costs and Expenses:

5 unchanged sentences

Loss before income taxes

Six Months Ended January 31, 2020

United States

Nine Months Ended April 30, 2020

Statement of Operations

United States

Costs and Expenses:

5 unchanged sentences

Loss before income taxes

SUBSEQUENT EVENT

Subsequent to January 31, 2021, we entered into an agreement to purchase 400,000 pounds of uranium concentrate (“U 3 O 8 ”) at a price of $27.29 per pound.

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

The following management ’ s discussion and analysis of the Company ’ s financial condition and results of operations (the “ MD&A ” ) contain forward-looking statements that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business plans and expectations.

In evaluating these statements you should consider various factors, including the risks, uncertainties and assumptions set forth in reports and other documents we have filed with or furnished to the SEC and, including, without limitation, this Form 10-Q Quarterly Report for the three months ended January 31, 2021, and our Form 10-K Annual Report for the fiscal year ended July 31, 2020, including the consolidated financial statements and related notes contained therein.

In evaluating these statements you should consider various factors, including the risks, uncertainties and assumptions set forth in reports and other documents we have filed with or furnished to the SEC and, including, without limitation, this Form 10-Q Quarterly Report for the nine months ended April 30, 2021, and our Form 10-K Annual Report for the fiscal year ended July 31, 2020, including the consolidated financial statements and related notes contained therein.

These factors, or any one of them, may cause our actual results or actions in the future to differ materially from any forward-looking statement made in this Quarterly Report.

Refer to “ Cautionary Note Regarding Forward-looking Statements ” as disclosed in our Form 10-K Annual Report for the fiscal year ended July 31, 2020, and Item 1A, Risk Factors, under Part II - Other Information, of this Quarterly Report.

This MD&A is focused on material changes in our financial condition from July 31, 2020, our most recently completed year end, to January 31, 2021, and our results of operations for the three and six months ended January 31, 2021, and should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, as contained in our Form 10-K Annual Report for Fiscal 2020.

This MD&A is focused on material changes in our financial condition from July 31, 2020, our most recently completed year end, to April 30, 2021, and our results of operations for the three and nine months ended April 30, 2021, and should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, as contained in our Form 10-K Annual Report for Fiscal 2020.

We are predominantly engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing, on uranium projects located in the United States and Paraguay, as more fully described in our Form 10-K Annual Report for Fiscal 2020.

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We have one uranium processing facility located in the State of Texas, the Hobson Processing Facility, which processes material from the Palangana Mine into drums of U 3 O 8 , our only sales product and source of revenue, for shipping to a third-party storage and sales facility.

At January 31, 2021, we had no uranium supply or off-take agreements in place.

As of April 30, 2021, we had no uranium supply or off-take agreements in place.

Our fully-licensed and 100%-owned Hobson Processing Facility forms the basis for our regional operating strategy in the State of Texas, specifically the South Texas Uranium Belt where we utilize ISR mining.

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Uranium Market Developments

Over the past few years, global uranium market fundamentals have been improving as the market transitions from being an inventory driven to more of a production driven market.

The spot market bottomed in November 2016 at about $17.75 per pound U 3 O 8 and stood at about $27.72 per pound at January 31, 2021.

Curtailments in production from several global producers have lowered uranium supply over the past few years.

In 2020, about 50% of global production was shutdown attributable to the COVID-19 virus.

Over the past few years, global uranium market fundamentals have been improving as the market transitions from an inventory driven to more of a production driven market.

The spot market bottomed in November 2016 at about $17.75 per pound U 3 O 8 and stood at about $29.05 per pound at April 30, 2021 (UxC Broker Average Price).

Production curtailments, and more recently, mine closures from several global producers, have lowered uranium supply over the past few years.

In 2020, total global production was reduced from 2019 levels of about 142 million pounds to about 123 million pounds, primarily as a result of COVID-19 shutdowns.

This event has accelerated a rebalancing in the market, resulting in about 19 million pounds of supply being removed that will not be made up.

Supply and demand projections show a structural deficit between production and utility requirements of about 40 million pounds per year through 2026 that approaches 70 million pounds by 2030.

Supply and demand projections show a structural deficit between production and utility requirements of more than 40 million pounds per year through 2026 with the gap growing to more than 55 million pounds by 2030.

The gap is being filled with secondary market sources, including finite inventory that is projected to decline in upcoming years.

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This will likely continue the trend of production cuts and deferrals until prices rise sufficiently to sustain long-term mining operations.

In late 2020, one of the world’s largest and low-cost mines shut down again because of COVID-19 concerns and is currently reducing expected supply by another 1.5 million pounds per month.

In addition, some of the more significant global projects have recently shut down or are in their final stages of production as their resources become depleted.

On the demand side of the equation, the global nuclear energy industry continues robust growth, with 53 new reactors connected to the grid since the start of 2013 and another 52 reactors under construction as of February 2021.

Nuclear generation has continued to increase over the past several years and has eclipsed pre-Fukushima production volumes.

On the demand side of the equation, the global nuclear energy industry continues robust growth, with 55 new reactors connected to the grid since the start of 2013 and another 52 reactors under construction as of May 2021.

Nuclear generation has continued to increase over the past several years and has eclipsed pre-Fukushima production levels.

In the 2020 edition (World Energy Outlook 2020), the International Energy Agency “Stated Policies Scenario” sees installed nuclear capacity growth of over 15% from 2019 to 2040, reaching about 480 GWE.

Further upside market pressure also appears likely as utilities finally return to a longer-term contracting cycle to replace expiring contracts, something the market has not experienced for several years.

In the U.S., significant political developments are improving the outlook for American uranium producers.

In a more recent market development, financial entities and various producers, including our Company, began purchasing significant quantities of drummed uranium inventory, further removing excess supplies that will likely not re-enter the market unless bundled in longer term contracts at much higher prices.

In the United States, significant political developments are improving the outlook for American uranium producers.

In September 2020, for the first time in 48 years, the Democratic Party platform endorsed nuclear power, creating a solid base of bipartisan political support for the nuclear industry.

In October 2020, the U.S.

Department of Commerce concluded an amendment to the Agreement Suspending the Antidumping Investigation on Uranium from the Russian Federation that reduces America’s dependence on Russian natural uranium concentrates up to 75% from prior levels.

Department of Commerce concluded an amendment to the Agreement Suspending the Antidumping Investigation on Uranium from the Russian Federation that reduces the United State’s dependence on Russian natural uranium concentrates up to 75% from prior levels.

In December, the U.S.

Federal Government omnibus spending bill passed by Congress includes $75 million for initial funding of the 10-year U.S.

Uranium Reserve.

Federal Government omnibus spending bill passed by Congress included $75 million for initial funding of the 10-year U.S.

Uranium Reserve (the “Uranium Reserve”).

More recently, the Nuclear Prosperity and Security Act was reintroduced in the U.S.

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Uranium Reserve.

The Uranium Reserve is designed as a 10-year, $1.5 billion program to purchase newly mined U.S.

origin uranium that fits well with the Company’s production ready, fully licensed domestic mining capabilities.

In late March of this year, additional support for nuclear energy also emerged from the current administration as a proposed component of a “Clean Energy Standard” under a plan to revitalize U.S.

infrastructure.

Uranium Inventory Initiative

The Company is investing inbuilding the next generation of low-cost and environmentally friendly uranium projects that will be competitive on a global basis.

Despite our focus on low cost ISR mining with its low capital requirements, we saw a unique opportunity to purchase drummed uranium at prevailing spot prices which are below most global industry mining costs.

Hence, we recently established a physical uranium inventory initiative (the “Initiative Program”) and have entered into agreements to purchase 2.505 million pounds of U.S.

warehoused uranium.

Various deliveries have or are scheduled to occur in March 2021 into June 2023 at the ConverDyn conversion facility located in Metropolis, Illinois, at a volume weighted average price of approximately $30 per pound.

This Initiative Program will support three objectives for our Company:

(i) to bolster our balance sheet as uranium prices appreciate;

(ii) to provide strategic inventory to support future marketing efforts with utilities that could compliment production and accelerate cashflows;

and (iii) to increase the availability of our Texas and Wyoming production capacity for emerging U.S.

origin specific opportunities which may command premium pricing due to scarcity of domestic uranium.

One such U.S.

origin specific opportunity is the Company’s plan to participate in supplying the Uranium Reserve, as outlined in the Nuclear Fuel Working Group report published by the U.S.

Department of Energy.

As of the date of this Quarterly Report, we have received 1,000,000 pounds of uranium inventory under our Initiative Program.

Response to COVID-19 Pandemic

In response to the COVID-19 pandemic, we have taken proactive steps to lower our operating expenses and to adjust our timing of capital expenditures.

For the protection of our employees, we have arranged for our teams at our Vancouver, Corpus Christi and Paraguay offices to work remotely.

In the meantime, we continued to operate our Palangana Mine at a reduced pace to capture residual uranium only and continue to advance our ISR projects with engineering and geologic evaluations that support the Company’s extraction readiness strategy.

In response to the COVID-19 pandemic and for the protection of our employees, we have arranged for our teams at our Vancouver, Corpus Christi and Paraguay offices to work remotely.

In the meantime, we continued to operate our Palangana Mine at a reduced pace to capture residual uranium only and we continue to advance our ISR projects with engineering and geologic evaluations that support the Company’s extraction readiness strategy.

Results of Operations

For the three and six months ended January 31, 2021, we recorded net losses of $3,461,059 ($0.02 per share) and $8,424,596 ($0.04 per share) and losses from operations of $3,523,558 and $6,910,188, respectively.

For the three and six months ended January 31, 2020, we recorded net losses of $1,888,661 ($0.01 per share) and $6,931,238 ($0.04 per share), and losses from operations of $$3,799,869 and $7,714,876, respectively.

During the three and six months ended January 31, 2021, in response to the significant financial market uncertainty as a result of the COVID-19 pandemic, we continued our efforts of corporate-wide cost-cutting and cash saving measures.

In the meantime, we continued with our strategic plan for reduced operations at our Palangana Mine to capture residual pounds of U 3 O 8 only.

As a result, no U 3 O 8 extraction or processing costs were capitalized to inventories during the three months ended January 31, 2021.

At January 31, 2021, the total value of inventories was $211,662 (July 31, 2020:

For the three and nine months ended April 30, 2021, we recorded net losses of $4,590,161 ($0.02 per share) and $13,014,757 ($0.06 per share) and losses from operations of $4,863,141 and $11,773,329, respectively.

For the three and nine months ended April 30, 2020, we recorded net losses of $3,273,644 ($0.02 per share) and $10,204,882 ($0.06 per share) and losses from operations of $3,158,511 and $10,873,387, respectively.

During the three and nine months ended April 30, 2021, we continued with our strategic plan for reduced operations at our Palangana Mine to capture residual pounds of U 3 O 8 only.

As a result, no U 3 O 8 extraction or processing costs were capitalized to inventories during the three months ended April 30, 2021.

During the three months ended April 30, 2021, as part of the Initiative Program, we received 900,000 pounds of uranium inventory at a total cost of $26,193,818.

As of April 30, 2021, the total value of inventories was $26,405,480 (July 31, 2020:

During the three months ended April 30, 2021, we commenced the 2021 drilling campaign and drilled 57 exploration holes totaling 27,285 feet at our Burke Hollow Project.

Costs and Expenses

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Mineral property expenditures primarily consisted of costs relating to permitting, property maintenance, exploration and pre-extraction activities and other non-extraction related activities on our projects.

During the three and six months ended January 31, 2021, mineral property expenditures totaled $961,257 and $1,663,018, respectively, of which $242,047 and $440,067, respectively, were directly related to maintaining operational readiness and permitting compliance for our Palangana Mine and Hobson Processing Facility.

During the three and six months ended January 31, 2020, mineral property expenditures totaled $1,323,323 and $2,846,774, respectively, of which $301,114 and $650,249, respectively, were directly related to maintaining operational readiness and permitting compliance for our Palangana Mine and Hobson Processing Facility.

During the three and nine months ended April 30, 2021, mineral property expenditures totaled $1,478,754 and $3,141,772, respectively, of which $238,015 and $678,082, respectively, were directly related to maintaining operational readiness and permitting compliance for our Palangana Mine and Hobson Processing Facility.

During the three and nine months ended April 30, 2020, mineral property expenditures totaled $956,564 and $3,803,338, respectively, of which $258,628 and $908,878, respectively, were directly related to maintaining operational readiness and permitting compliance for our Palangana Mine and Hobson Processing Facility.

The following table provides mineral property expenditures on our projects for the periods indicated:

Three Months Ended January 31,

Six Months Ended January 31,

Three Months Ended April 30,

Nine Months Ended April 30,

Mineral Property Expenditures

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General and Administrative

During the three and six months ended January 31, 2021, general and administrative expenses totaled $2,464,703 and $5,050,392, respectively, which increased by $69,909 and $340,428, respectively, compared to $2,394,794 and $4,709,964, respectively, for the three and six months ended January 31, 2020.

The increases primarily resulted from increases in stock-based compensation expenses being offset by decreases in general and administrative expenses of other categories.

During the three and nine months ended April 30, 2021, general and administrative expenses totaled $3,286,201 and $8,336,593, respectively, which increased by $1,158,314 and $1,498,742, respectively, compared to $2,127,887 and $6,837,851, respectively, for the three and nine months ended April 30, 2020.

The increases primarily resulted from increases in corporate development and stock-based compensation expenses.

The following summary provides a discussion of the major expense categories including analyses of the factors that caused significant variances compared to the same period last year:

for the three and six months ended January 31, 2021, salaries and management fees totaled $379,767 and $745,270, respectively, which decreased by $37,406 and $135,942, respectively, compared to $417,173 and $881,212, respectively, for the three and six months ended January 31, 2020, primarily as a result of corporate-wide reduction in salaries and fees;

for the three and six months ended January 31, 2021, office, insurance, filing and listing fees, investor relations, corporate development and travel expenses totaled $682,482 and $1,402,246, respectively, which decreased by $170,182 and $249,530, respectively, compared to $852,664 and $1,651,776, respectively, for the three and six months ended January 31, 2020, primarily as a result of corporate-wide cost reductions;

for the three and six months ended January 31, 2021, professional fees totaled $184,396 and $306,303, respectively, which decreased by $142,311 and $155,037, respectively, compared to $326,707 and $461,340, respectively, for the three and six months ended January 31, 2020.

for the three months ended April 30, 2021, salaries and management fees totaled $516,883, which increased by $106,788 compared to $410,095 for the three months ended April 30, 2020, primarily as a result of reinstatement of salaries and fees which had been reduced during the initial months of the COVID-19 pandemic.

For the nine months ended April 30, 2021, salaries and management fees totaled $1,262,153, which was consistent with $1,291,306 for the nine months ended April 30, 2020;

for the three and nine months ended April 30, 2021, office, insurance, filing and listing fees, investor relations, corporate development and travel expenses totaled $1,400,984 and $2,803,230, respectively, which increased by $616,975 and $367,444, respectively, compared to $784,009 and $2,435,786, respectively, for the three and nine months ended April 30, 2020, primarily as a result of increases in consulting fees and corporate development expenses;

for the three and nine months ended April 30, 2021, professional fees totaled $200,607 and $506,910, respectively, which decreased by $37,531 and $192,568, respectively, compared to $238,138 and $699,478, respectively, for the three and nine months ended April 30, 2020.

The decrease primarily resulted from decrease in general legal fees and accounting and audit fees.

Professional fees are primarily comprised of legal services related to certain transactional activities and regulatory compliance, in addition to audit and tax services;

for the three and six months ended January 31, 2021, stock-based compensation totaled $1,218,058 and $2,596,573, respectively, which increased by $419,808 and $880,937, respectively, compared to $798,250 and $1,715,636, respectively, for the three and six months ended January 31, 2020.

During the three and six months ended January 31, 2021, in response to the financial market uncertainty as a result of the COVID-19 pandemic, we continued our efforts of corporate-wide cost-cutting and cash saving measures implemented in Fiscal 2020, where we expanded the scope of equity-based payments, including shares issued in lieu of cash for certain salaries and fees under our Stock Incentive Plan, to compensate certain employees and consultants to reduce cash outlays.

for the three and nine months ended April 30, 2021, stock-based compensation totaled $1,167,727 and $3,764,300, respectively, which increased by $472,082 and $1,353,019, respectively, compared to $695,645 and $2,411,281, respectively, for the three and nine months ended April 30, 2020.

During the three and nine months ended April 30, 2021, in response to the financial market uncertainty as a result of the COVID-19 pandemic, we continued to expand the scope of equity-based payments, including shares issued in lieu of cash for certain salaries and fees under our Stock Incentive Plan, to compensate certain employees and consultants.

During Fiscal 2020, we granted approximately 6.2 million stock options to our directors, officers, employees and certain consultants and awarded 1.3 million RSUs to certain of our directors and officers.

The stock-based compensation expenses included the fair value of compensation shares at the time of issuance and the amortization of the fair value of various stock awards granted in Fiscal 2020 and prior fiscal years using graded vesting method.

Depreciation, Amortization and Accretion

During the three and six months ended January 31, 2021, depreciation, amortization and accretion totaled $97,598 and $196,778, respectively, which increased by $15,846 and $38,640, respectively, compared to $81,752 and $158,138, respectively, for the three and six months ended January 31, 2020.

During the three and nine months ended April 30, 2021, depreciation, amortization and accretion totaled $98,186 and $294,964, respectively, which increased by $24,126 and $62,766, respectively, compared to $74,060 and $232,198, respectively, for the three and nine months ended April 30, 2020.

Depreciation, amortization and accretion include depreciation and amortization of long-term assets acquired in the normal course of operations and accretion of asset retirement obligations.

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Interest and Finance Costs

During the three and six months ended January 31, 2021, interest and finance costs totaled $829,727 and $1,720,641, respectively, which were consistent with $859,163 and $1,744,288, for the three and six months ended January 31, 2020, respectively.

For the three and six months ended January 31, 2021, interest paid on long-term debt totaled $368,000 and $776,889, respectively, which decreased by $40,889 and $40,889, respectively, compared to $408,889 and $817,778, respectively, for the three and six months ended January 31, 2020.

For the three months ended January 31, 2021, amortization of debt discount totaled $381,828 and $825,695, respectively, which decreased by $30,752 and $19,106, respectively, compared to $412,580 and $844,801, respectively, for the three and six months ended January 31, 2020.

The decreases in interest on long-term debt and amortization of debt discount are a result of the decrease in the outstanding principle amount of our long-term debt to $18,000,000 from $20,000,000 in the comparable periods of last year.

For the three and six months ended January 31, 2021, surety bond premium totaled $61,009 and $90,079, respectively, which increased by $31,939 and $26,383, respectively, compared to $29,070 and $63,696, respectively, for the three and six months ended January 31, 2020.

Income or Loss from Equity-Accounted Investment

During the three and six months ended January 31, 2021, we recorded income of $600,913 and a loss of $102,692, respectively, as a result of income and loss pick up from URC’s operations.

During the three and six months ended January 31, 2020, we recorded income of $2,704,373 and $2,363,776, respectively, primarily due to a dilution gain of $2,728,026 and $3,056,656, respectively, recognized as a result of the change of our ownership interest in URC due to URC’s initial public offering in December 2019, offset by loss pick up totaling $23,653 and $692,880, respectively, from URC’s operations.

During the three and nine months ended April 30, 2021, interest and finance costs totaled $636,178 and $2,356,819, respectively, which decreased by $199,505 and $223,152, respectively, compared to $835,683 and $2,579,971, respectively, for the three and nine months ended April 30, 2020.

For the three and nine months ended April 30, 2021, interest paid on long-term debt totaled $274,222 and $1,051,111, respectively, which decreased by $125,778 and $166,667, respectively, compared to $400,000 and $1,217,778, respectively, for the three and nine months ended April 30, 2020.

For the three and nine months ended April 30, 2021, amortization of debt discount totaled $296,401 and $1,122,096, respectively, which decreased by $102,830 and $121,936, respectively, compared to $399,231 and $1,244,032, respectively, for the three and nine months ended April 30, 2020.

The decreases in interest on long-term debt and amortization of debt discount are a result of the decrease in the outstanding principal amount of our long-term debt to $10,000,000 from $20,000,000 in the comparable periods of last year.

For the three and nine months ended April 30, 2021, surety bond premium totaled $48,718 and $138,797, respectively, which increased by $19,648 and $46,031, respectively, compared to $29,070 and $92,766, respectively, for the three and nine months ended April 30, 2020.

The increases were primarily a result of increases in surety bond collateral amounts and the annual premium rate.

Income from Equity-Accounted Investment

During the three and nine months ended April 30, 2021, we recorded income of $456,132 and $353,440, respectively, as a result of the equity income pick up from URC’s operations.

During the three months ended April 30, 2020, we recorded income of $684,443 as a result of the equity income pick up from URC’s operations, and during the nine months ended April 30, 2020, we recorded income of $3,048,219 primarily due to a dilution gain of $3,056,656 recognized as a result of the change of our ownership interest in URC due to URC’s initial public offering in December 2019, offset by a loss pick up totaling $8,437 from URC’s operations.

Gain on Loan Extinguishment

As a result, a gain on loan extinguishment of $278,617 was recorded on our statement of operations and comprehensive loss for the three and six months ended January 31, 2021.

As a result, we recognized a gain on loan extinguishment of $278,617.

During the three months ended April 30, 2021, we repaid the CEBA Loan of CAD$30,000, 75% of the total CEBA Loan principal before its initial term date on December 31, 2022 and received a CEBA Loan Closure Confirmation for forgiveness of CEBA loan principal of CAD$10,000.

As a result, we recognized a gain on loan extinguishment of $7,759.

Summary of Quarterly Results

For the Quarters Ended

April 30, 2021

January 31, 2021

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July 31, 2020

April 30, 2020

Total comprehensive loss

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For the Quarters Ended

April 30, 2020

January 31, 2020

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July 31, 2019

April 30, 2019

Total comprehensive loss

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Liquidity and Capital Resources

January 31, 2021

April 30, 2021

July 31, 2020

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Current liabilities

Working capital (deficit)

During the six months ended January 31, 2021, we received net proceeds of $14,121,656 from the September 2020 Offering.

During the three months ended January 31, 2021, we received net proceeds of $1,074,337 under the ATM Offering.

At January 31, 2021, we had cash and cash equivalents of $8,713,193 and term deposits of $4,000,000.

Subsequent to January 31, 2021, we received further net proceeds of $28,246,612 under the ATM Offering, which substantially increased our cash and cash equivalent balances and improved our working capital position.

At January 31, 2021, our $18,000,000 long-term debt with maturity on January 31, 2022 became a current liability, resulting in a working capital deficit of $5,029,653.

With the cash proceeds received from the ATM Offering, our existing cash resources are expected to provide sufficient funds to repay the long-term debt when it comes due and carry out our planned operations for 12 months from the date of this Quarterly Report.

Working capital

During the nine months ended April 30, 2021, we received net proceeds of $83,842,281 from various equity financings and $4,709,470 from the exercise of stock options and share purchase warrants, which significantly strengthened our working capital position.

As at April 30, 2021, we had working capital of $64,228,636, which increased by $59,676,159 from the working capital of $4,552,477 as at July 31, 2020.

During the three months ended and subsequent to April 30, 2021, we entered into agreements to purchase 2.505 million pounds of uranium inventories with a total purchase price of $75.9 million with delivery dates from March 2021 to June 2023, of which $18.1 million will become due in the next 12 months from the date that this Quarterly Report is issued.

In addition, as of April 30, 2021, we had $10,000,000 of debt with a maturity date of January 31, 2022.

However, we believe our existing cash resources and, if necessary, cash generated from the sale of the Company’s current assets, will provide sufficient funds to fulfill our uranium inventory purchase commitments, repay the $10,000,000 principal amount of the term debt when it becomes due and carry out our planned operations for 12 months from the date of this Quarterly Report.

Our continuation as a going concern beyond 12 months from the date of this Quarterly Report will be dependent upon our ability to obtain adequate additional financing, as our operations are capital intensive and future capital expenditures are expected to be substantial.

Historically we have been reliant primarily on equity financings from the sale of our common stock and on debt financings in order to fund our operations.

We have also relied, to a limited extent, on cash flows generated from our mining activities during the year ended July 31, 2015 (“Fiscal 2015), 2013 (“Fiscal 2013) and 2012 (“Fiscal 2012”).

We have also relied, to a limited extent, on cash flows generated from our mining activities during the years ended July 31, 2015 (“Fiscal 2015), 2013 (“Fiscal 2013) and 2012 (“Fiscal 2012”).

However, we have yet to achieve profitability or develop positive cash flow from operations and we do not expect to achieve profitability or develop positive cash flow from operations in the near term.

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if the market price of uranium weakens;

if the weakness in the market price of our common stock continues;

if we default on making scheduled payments of fees and complying with the restrictive covenants as required under our Credit Facility resulting in accelerated repayment of our indebtedness and/or enforcement by the Lenders against our key assets securing our indebtedness;

if the market price of our common stock weakens;

if the COVID-19 pandemic worsens or continues over an extended period and causes further financial market uncertainty;

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Equity Financings

We filed a Form S-3 shelf registration statement under the United States Securities Act of 1933, as amended (the “Securities Act”) on March 10, 2017 (the “2017 Shelf”), providing for the public offer and sale of certain securities of our Company from time to time, at our discretion, of up to an aggregate offering amount of $100 million.

On April 9, 2019, we entered into the ATM Offering Agreement with the ATM Managers, under which the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $37.9 million through the Managers.

In connection with the ATM Offering, on April 9, 2019, we filed a prospectus supplement to the 2017 Shelf providing for the public offer and sale of the Company’s shares having an aggregate offering price of up to $37.9 million through one or more at-the-market offerings pursuant to the ATM Offering.

On February 21, 2020, we filed a Form S-3 shelf registration statement under the Securities Act which was declared effective by the SEC on March 3, 2020 (the “2020 Shelf”) providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of up to an aggregate offering amount of $100 million.

As a result of the 2020 Shelf, our 2017 Shelf was then deemed terminated and, as a consequence, our then ATM Offering terminated unless renewed under the 2020 Shelf.

As a result of the 2020 Shelf, our March 10, 2017 Form S-3 registration statement was then deemed terminated and, as a consequence, our then April 9, 2019 ATM Offering Agreement and its related offering terminated unless renewed under the 2020 Shelf.

On March 19, 2020, we entered into an Amending Agreement to the ATM Offering Agreement with the ATM Managers under which the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $30 million through the ATM Managers under its ATM Offering through the 2020 Shelf.

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During the three months ended January 31, 2021, we issued 632,487 shares at a weighted average price of $1.74 per share under the ATM Offering for net cash proceeds of $1,074,337.

Subsequent to January 31, 2021, we issued 13,036,419 shares at a weighted average price of $2.22 under the ATM Offering for net cash proceeds of $28,246,612.

At January 31, 2021, $30 million of the 2020 Shelf was utilized for the ATM Offering and $27.3 million was utilized for the September 2020 Offering;

and therefore, as at January 31, 2021, there was $42.7 million available for distribution under our 2020 Shelf.

During the nine months ended April 30, 2021, we issued 13,668,906 shares of the Company’s common stock at a weighted average price of $2.19 per share under our ATM Offering for net cash proceeds of $29,320,949.

On March 19, 2021, we completed the March 2021 Offering of 10,000,000 shares of the Company’s common stock at a price of $3.05 per share for net proceeds of $29,083,710.

On April 8, 2021, we completed the April 2021 Offering of 3,636,364 shares of the Company’s common stock at a price of $3.30 per share for net proceeds of $11,315,966.

In connection with the April 2021 Offering, we also issued, on a private placement basis, 181,818 Agent Warrants to the agent as partial compensation, and each Agent Warrant entitles its holder to acquire one share of common stock at an exercise price of $4.125 per share and expiring five years from the date of issuance.

As of April 30, 2021, $30 million of the 2020 Shelf was utilized under our ATM Offering and $69.8 million was utilized under our September 2020 Offering, March 2021 Offering and April 2021 Offering;

and therefore, all but $200,000 was utilized under our 2020 Shelf.

On May 17, 2021, we filed a Form S-3 shelf registration statement under the Securities Act which was declared effective by the SEC on June 1, 2021 providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of up to an aggregate offering amount of $200 million (the “2021 Shelf”), which included an at-the-market offering agreement prospectus (the “2021 ATM Offering”) covering the offering, issuance and sale of up to a maximum offering of $100 million as part of the $200 million under the 2021 Shelf.

On May 14, 2021, we entered into an At The Market Offering Agreement (the “2021 ATM Offering Agreement”) with H.C.

Wainwright & Co., LLC and certain co-managers (collectively, the “2021 ATM Managers”) as set forth in the 2021 ATM Offering Agreement under which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $100 million from time to time through the 2021 ATM Manager selected by us.

Credit Facility

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The Third Amended and Restated Credit Agreement superseded, in their entirety, our Second Amended and Restated Credit Agreement dated and effective February 9, 2016, our Amended and Restated Credit Agreement dated and effective March 13, 2014 and our Credit Agreement dated and effective July 30, 2013 with our Lenders.

During the three months ended January 31, 2021, we made a voluntary payment of $2,000,000 to one of our Lenders.

During the three months ended January 31, 2021, and pursuant to the terms of the Third Amended and Restated Credit Agreement, we issued an aggregate of 1,249,039 shares with a fair value of $1,170,000, representing 6.5% of the $18,000,000 principal balance outstanding, as payment of anniversary fees to our Lenders.

Subsequent to January 31, 2021, we made further voluntary principal payment of $8,000,000 to our Lenders, which decreased the principal balance outstanding to $10,000,000.

During the nine months ended April 30, 2021, we made voluntary payments totaling $10,000,000 to certain Lenders, which decreased the principal balance outstanding to $10,000,000.

During the nine months ended April 30, 2021, and pursuant to the terms of the Third Amended and Restated Credit Agreement, we issued an aggregate of 1,249,039 shares with a fair value of $1,170,000, representing 6.5% of the $18,000,000 principal balance outstanding at the time, as payment of anniversary fees to our Lenders.

Government Loans

In April 2020, our Canadian subsidiary received a loan of $31,299 (CAD$40,000) under the Canadian Emergency Business Account Program (“CEBA”), which provides financial relief for Canadian small businesses during the COVID-19 pandemic (the “CEBA Loan”).

The CEBA Loan has an initial term date on December 31, 2022 (the “Initial Term Date”) and may be extended to December 31, 2025.

The CEBA Loan is non-revolving, with an interest rate being 0% per annum prior to the Initial Term Date and 5% per annum thereafter during any extended term.

On April 28, 2020, we entered into a business loan agreement with Kleberg Bank, N.A., under the Paycheck Protection Program administered by the Small Business Administration, which is a part of the Coronavirus Aid, Relief, and Economic Security Act enacted by the U.S.

During Fiscal 2020, our Canadian subsidiary received a loan of $29,842 (CAD$40,000) under the CEBA Program.

During Fiscal 2020, we entered into a business loan agreement with Kleberg Bank, N.A., under the Paycheck Protection Program administered by the Small Business Administration, which is a part of the Coronavirus Aid, Relief, and Economic Security Act enacted by the U.S.

Congress in response to the COVID-19 pandemic.

On May 5, 2020, we received the PPP Loan in the amount of $277,250.

Promissory Note

During the three months ended January 31, 2021, in connection with the Goliad Land Purchase, we issued the Promissory Note with a principal amount of $380,000 to Mar G B Ranch LLC.

During the nine months ended April 30, 2021, in connection with the Goliad Land Purchase, we issued the Promissory Note with a principal amount of $380,000 to a landowner.

The Promissory Note carries an interest rate of 5% per annum with principal and interest payable in 24 monthly installments with a maturity date of November 1, 2022.

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Operating Activities

Net cash used in operating activities during the six months ended January 31, 2021 and 2020 was $5,603,172 and $7,545,794, respectively.

Significant operating expenditures included mineral property expenditures, general and administrative expenses and interest payments.

During the nine months ended April 30, 2021, net cash used in operating activities was $35,250,208, of which $26,193,818 was for purchases of uranium inventories.

Other significant operating expenditures included mineral property expenditures, general and administrative expenses and interest payments.

During the nine months ended April 30, 2020, net cash used in operating activities was $10,332,656 for mineral property expenditures, general and administrative expenses and interest payments.

Financing Activities

During the six months ended January 31, 2021, net cash provided by financing activities totaled $13,389,086 primarily from net proceeds of $14,121,656 from our September 2020 Offering, net proceeds of $1,074,337 from the ATM Offering, and net proceeds of $223,324 from the exercise of stock options and share purchase warrants, which were offset by a $2,000,000 voluntary payment to one of our Lenders under our Credit Facility and $30,231 payments under the Promissory Note.

No cash was provided by financing activities during the six months ended January 31, 2020.

During the nine months ended April 30, 2021, net cash provided by financing activities totaled $78,453,548, primarily from the net proceeds of $83,842,281 from various share offerings, and net proceeds of $4,709,470 from the exercise of stock options and share purchase warrants, which were offset by $10,000,000 in voluntary payments to our Lenders under our Credit Facility, $22,083 repayment for the CEBA Loan and payments of $76,120 for the Promissory Note.

During the nine months ended April 30, 2020, cash provided by financing activities was $28,756 from the CEBA Loan.

Investing Activities

During the six months ended January 31, 2021, net cash used by investing activities totaled $4,220,340, primarily for cash used for the investment in term deposits of $10,000,000, cash used for the purchase of property, plant and equipment of $140,340, and cash used for investment in mineral rights and properties of $80,000, offset by cash received from the redemption of term deposits of $6,000,000.

During the six months ended January 31, 2020, net cash provided by investing activities totaled $11,773,277, primarily from cash received from the redemption of term deposits totaling $11,831,671, offset by cash used for the purchase of property, plant and equipment of $30,194 and cash used for investment in mineral rights and properties of $30,000.

During the nine months ended April 30, 2021, net cash used by investing activities totaled $4,222,266, primarily for cash used for the investment in term deposits of $10,000,000, cash used for the purchase of property, plant and equipment of $142,266, and cash used for investment in mineral rights and properties of $80,000, offset by cash received from the redemption of term deposits of $6,000,000.

During the nine months ended April 30, 2020, net cash provided by investing activities totaled $11,670,630, primarily from cash received from the redemption of term deposits totaling $11,831,671, offset by cash used for the purchase of property, plant and equipment of $83,841 and cash used for investment in mineral rights and properties of $80,000.

Stock Options and Warrants

At January 31, 2021, we had stock options outstanding representing 13,070,468 shares at a weighted-average exercise price of $1.10 per share, and share purchase warrants outstanding representing 14,254,264 shares at a weighted-average exercise price of $1.93 per share.

At January 31, 2021, outstanding stock options and warrants represented a total 27,324,732 shares issuable for gross proceeds of approximately $41.9 million should these stock options and warrants be exercised in full on a cash basis.

At January 31, 2021, outstanding in-the-money stock options represented a total of 12,850,468 shares exercisable for gross proceeds of approximately $13.7 million should these in-the-money stock options be exercised in full on a cash basis.

As of April 30, 2021, we had stock options outstanding representing 11,170,110 shares at a weighted-average exercise price of $1.11 per share, and share purchase warrants outstanding representing 5,480,938 shares at a weighted-average exercise price of $1.90 per share.

As of April 30, 2021, outstanding stock options and warrants represented a total 16,651,048 shares issuable for gross proceeds of approximately $22.7 million should these stock options and warrants be exercised in full on a cash basis.

As of April 30, 2021, outstanding in-the-money share purchase warrants and stock options represented a total of 16,469,230 shares exercisable for gross proceeds of approximately $22.0 million should these in-the-money share purchase warrants and stock options be exercised in full on a cash basis.

The exercise of stock options and warrants is at the discretion of the respective holders and, accordingly, there is no assurance that any of the stock options or warrants will be exercised in the future.

Transactions with a Related Party

During the three and six months ended January 31, 2021, we incurred $17,464 and $34,141 (three and six months ended January 31, 2020:

During the three and nine months ended April 30, 2021, we incurred $17,900 and $52,041 (three and nine months ended April 30, 2020:

$36,849 and $105,339), respectively, in general and administrative costs, paid to Blender, a company controlled by Arash Adnani, a direct family member of our President and Chief Executive Officer, for various services, including information technology, financial subscriptions, corporate branding, media, website design, maintenance and hosting, provided by Blender to the Company.

At January 31, 2021, the amount owing to Blender was $16,520 (July 31, 2020:

As of April 30, 2021, the amount owing to Blender was $nil (July 31, 2020:

Material Commitments

Uranium Purchase Commitments

During the three months ended and subsequent to April 30, 2021, we entered into agreements to purchase 2.505 million pounds of uranium inventories under our Initiative Program, of which 1.0 million pounds have been delivered and paid for with the remaining 1.505 million pounds being delivered from December 2021 to June 2023.

Our uranium purchase commitments at the date of this Quarterly Report are as follows:

Purchase Commitments

Total Purchase Price

Long-Term Debt Obligations

At January 31, 2021 we have made all scheduled payments and complied with all covenants under our Credit Facility, and we expect to continue complying with all scheduled payments and covenants during Fiscal 2021.

At April 30, 2021, we have made all scheduled payments and complied with all covenants under our Credit Facility, and we expect to continue complying with all scheduled payments and covenants during Fiscal 2021.

Off-Balance Sheet Arrangements

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Subsequent Events

Subsequent to January 31, 2021, we issued 13,036,419 shares at a weighted average price of $2.22 under the ATM Offering for net cash proceeds of $28,246,612.

Subsequent to January 31, 2021, we received cash proceeds of $381,631 and issued 680,043 shares upon the exercise of 984,223 stock options.

Subsequent to January 31, 2021, we received cash proceeds of $511,726 and issued 435,542 shares upon the exercise of 1,597,333 share purchase warrants.

Subsequent to January 31, 2021, we made further voluntary principal payment of $8,000,000 to our Lenders.

Subsequent to January 31, 2021, we entered into an agreement to purchase 400,000 pounds of U 3 O 8 at a price of $27.29 per pound.

Subsequent to April 30, 2021, we received cash proceeds of $380,776 and issued 704,423 shares upon the exercise of 888,251 stock options.

Subsequent to April 30, 2021, we entered into agreements to purchase 200,000 pounds of uranium inventories under our Initiative Program.

Subsequent to April 30, 2021, on May 20, 2021, we participated in an equity financing by URC and acquired an additional 1,000,000 common shares of URC at a price of CAD$4.10 per share for a total consideration of $3,396,852.

Quantitative and Qualitative Disclosures About Market Risk

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements