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Item 1. Business

2022-09-29 compared with 2021-10-28 · 248 added, 142 removed, 172 unchanged (69% of the section changed)

Uranium Energy Corp.

NYSE AMERICAN) is a fast growing, uranium mining company listed on the NYSE American.

UEC is working towards fueling the global demand for carbon-free nuclear energy, a key solution to climate change, and energy source for the low-carbon future.

UEC is a pure-play uranium company and is advancing its next generation of low-cost, environmentally friendly, In-Situ Recovery (“ISR”) mining uranium projects.

The Company has two extraction ready ISR hub and spoke platforms in South Texas and Wyoming, anchored by fully licensed and operational processing capacity at its Hobson and Irigaray plants.

UEC also has seven U.S.

ISR uranium projects with all of their major permits in place, with additional diversified holdings of uranium assets across the U.S., Canada and Paraguay.

We believe nuclear energy will continue to be an important part of the energy transition and the energy mix of a future low carbon economy.

As such, we are focused on scaling our business to meet the future energy needs for nuclear in the U.S.

and globally.

Corporate Organization

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Effective February 28, 2006, we completed a forward stock split of our common stock on the basis of 1.5 shares for each outstanding share and amended our Articles of Incorporation to increase our authorized capital from 75,000,000 shares of common stock, with a par value of $0.001 per share, to 750,000,000 shares of common stock, with a par value of $0.001 per share.

In June 2007 we changed our fiscal year end from December 31 st to July 31 st (in each instance our “Fiscal” year now).

In June 2007 we changed our fiscal year end from December 31 st to July 31 st (in each instance our “Fiscal”

On December 31, 2007, we incorporated a wholly-owned subsidiary, UEC Resources Ltd., under the laws of the Province of British Columbia, Canada.

On December 18, 2009, we acquired a 100% interest in the South Texas Mining Venture, L.L.P.

(“STMV”), a Texas limited liability partnership, from each of URN Resources Inc., a subsidiary of Uranium One Inc., and Everest Exploration, Inc.

On September 3, 2010, we incorporated a wholly-owned subsidiary, UEC Paraguay Corp., under the laws of the State of Nevada.

On May 24, 2011, we acquired a 100% interest in Piedra Rica Mining S.A., a private company incorporated in Paraguay.

On September 9, 2011, we acquired a 100% interest in Concentric Energy Corp., a private company incorporated in the State of Nevada.

On September 9, 2011, we acquired a 100% interest in Concentric Energy Corp.

(“Concentric”), a private company incorporated in the State of Nevada. 

On March 30, 2012, we acquired a 100% interest in Cue Resources Ltd.

(“Cue”), a formerly publicly-traded company incorporated in the Province of British Columbia, Canada.

On March 4, 2016, we acquired a 100% interest in JDL Resources Inc., a private company incorporated in the Cayman Islands.

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On August 9, 2017, we acquired a 100% interest in AUC Holdings (US), Inc.

On January 31, 2018, we incorporated a wholly-owned subsidiary, UEC Resources (SK) Corp., under the laws of the Province of Saskatchewan, Canada.

Our principal offices are located at 500 North Shoreline Boulevard, Suite 800N, Corpus Christi, Texas, 78401, and at 1030 West Georgia Street, Suite 1830, Vancouver, British Columbia, Canada, V6E 2Y3.

(“AUC”).

On January 31, 2018, we incorporated a wholly-owned subsidiary, UEC Resources (SK) Corp., under the laws of the Province of Saskatchewan, Canada. On December 17, 2021, we acquired a 100% interest in Uranium One Americas, Inc.

(“U1A”) (now UEC Wyoming Corp.).

Our principal office is located at 1030 West Georgia Street, Suite 1830, Vancouver, British Columbia, Canada, V6E 2Y3.

General Business

We are pre-dominantly engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing, on uranium projects located in the United States, Canada and the Republic of Paraguay.

We utilize in-situ recovery (“ISR”) mining where possible which we believe, when compared to conventional open pit or underground mining, requires lower capital and operating expenditures with a shorter lead time to extraction and a reduced impact on the environment.

We do not expect, however, to utilize ISR mining for all of our uranium projects in which case we would expect to rely on conventional open pit and/or underground mining techniques.

We have one uranium mine located in the State of Texas, our Palangana Mine, which utilizes ISR mining and commenced extraction of uranium oxide (“U 3 O 8 ”), or yellowcake, in November 2010.

We have one uranium processing facility located in the State of Texas, our 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.

Since commencement of uranium extraction from our Palangana Mine in November 2010 to July 31, 2021, our Hobson Processing Facility has processed 578,000 pounds of U 3 O 8 .

As at July 31, 2021, we had no uranium supply or “off-take” agreements in place.

UEC’s goal is to provide the much needed fuel for the global energy transition.

The International Energy Outlook projects that worldwide electricity generation will grow by 1.8% per year, through to 2050.

As the global community calls on all governments and industries to curb their carbon emissions to stop the effects of climate change, there is growing need to combine intermittent renewable energy sources, such as wind and solar, with one or more “firm”

zero-carbon sources, such as nuclear energy, to ensure the affordability and accessibility of the net-zero electricity grid.

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, Canada and the Republic of Paraguay. 

We utilize ISR mining where possible which we believe, when compared to conventional open pit or underground mining, requires lower capital and operating expenditures with a shorter lead time to extraction and a reduced impact on the environment.

We do not expect, however, to utilize ISR mining for all of our uranium projects in which case we would expect to rely on conventional open pit and/or underground mining techniques. 

We have one uranium mine located in the State of Texas, our Palangana Mine, which utilizes ISR mining and commenced extraction of uranium oxide (“U 3 O 8 ”), or yellowcake, in November 2010.

We have one uranium processing facility located in the State of Texas, our Hobson Processing Facility, which processes material from our ISR Mines 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. 

Since commencement of uranium extraction from our ISR Mines in November 2010 to July 31, 2022, our Hobson Processing Facility has processed 578,000 pounds of U 3 O 8 .

As at July 31, 2022, 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 in the South Texas Uranium Belt, where we utilize ISR mining.

We utilize a “hub-and-spoke” strategy whereby the Hobson Processing Facility acts as the central processing site (the “hub”) for our Palangana Mine and future satellite uranium mining activities, such as our Burke Hollow and Goliad Projects, located within the South Texas Uranium Belt (the “spokes”).

We utilize a “hub-and-spoke”

strategy whereby the Hobson Processing Facility acts as the central processing site (the “hub”) for our Palangana Mine and future satellite uranium mining activities, such as our Burke Hollow and Goliad Projects, located within the South Texas Uranium Belt (the “spokes”).

The Hobson Processing Facility has a physical capacity to process uranium-loaded resins up to a total of two million pounds of U 3 O 8 annually and is licensed to process up to one million pounds of U 3 O 8 annually.

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Our operating and strategic framework is based on expanding our uranium extraction activities, which includes advancing certain uranium projects with established mineralized materials towards uranium extraction, and establishing additional mineralized materials on our existing uranium projects or through acquisition of additional uranium projects.

Physical Uranium Portfolio

Physical Uranium Program

The Company is investing in building 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 established a physical uranium portfolio (the “Physical Uranium Portfolio”) and, as of the date of this Annual Report, have entered into agreements to purchase 4.1 million pounds of U.S.

Hence, we established a physical uranium portfolio (the “Physical Uranium Program”) and, as of the date of this Annual Report, have entered into agreements to purchase 5.5 million pounds of U.S.

warehoused uranium of which various deliveries have, or are scheduled to occur, in March 2022 to December 2025 at the ConverDyn conversion facility located in Metropolis, Illinois, at a volume weighted average price of approximately $37.30 per pound.

This Physical Uranium Portfolio will support three objectives for our Company:

Our Physical Uranium 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;

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

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

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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.

During the year ended July 31, 2021 (“Fiscal 2021”), we made significant advancements in various aspects of our operations, including:

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;

we commenced wellfield development and resource delineation drilling at the initial production area of our Burke Hollow ISR Project located in South Texas.

Burke Hollow’s initial production area is the newest and largest in-situ recovery wellfield being developed in the U.S.;

we established the Physical Uranium Portfolio, under which, as of the date of this Annual Report, we had entered into agreements to purchase 4.1 million pounds of uranium concentrates at a volume weighted average price of $32.12 per pound and received 1.2 million pounds, which are held at the ConverDyn facility located in Metropolis, Illinois.

The uranium inventories have a market value of approximately $56.7 million as of the date of this Annual Report;

we completed two registered direct offerings with certain institutional investors and issued 13,636,364 shares of our common stock at an average price of $3.12 per share, for total gross proceeds of $42,500,000;

as of July 31, 2021, we had $117.2 million in cash, equity investments and physical uranium holdings comprised of:

(i) $44.3 million in cash;

(ii) uranium inventory holdings of $29.0 million;

and (iii) 15 million shares of Uranium Royalty Corp.

with a market value of $43.9 million;

the Company’s shares were included on the Russell 2000 and Russell 3000 indexes.

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 (the “UR”). 

During the year ended July 31, 2022 (“Fiscal 2022”), we made significant advancements in various aspects of our operations, including:

we completed the acquisition of Uranium One Americas, Inc.

(“U1A”) on December 17, 2021, pursuant to a Share Purchase Agreement dated November 8, 2021 (the “U1A Acquisition”).

The acquisition of U1A (now UEC Wyoming Corp.) represented a unique opportunity to acquire an advanced asset base from a subsidiary of Uranium One Inc., one of the global leaders in the nuclear industry, and to double the Company’s production capacity in three key categories:

total number of permitted U.S.

ISR projects;

and processing infrastructure;

we repaid the remaining $10 million balance of our secured credit facility on January 31, 2022 and are now completely debt free;

we completed and filed technical report summaries (each, a “TRS report”) in accordance with Item 1302 of Regulation S-K (the “S-K 1300”) disclosing mineral resources for each of our Reno Creek, Wyoming ISR Hub and Spoke, Anderson and Yuty Projects on February 8, 2022, April 4, 2022, July 12, 2022 and July 19, 2022, respectively.

we launched our environmental, social and governance (“ESG”) program and achieved several key milestones;

we completed installation of the monitor well ring at Production Area 1 of our Burke Hollow Project;

the Company’s shares remain included on the Russell 2000 and Russell 3000 indexes;

we secured an additional 1,816,000 pounds of U.S.

warehoused uranium, expanding our Physical Uranium Program to 5.5 million pounds U 3 O 8 , with delivery dates out to December 2025 at a volume weighted average price of approximately $37.30 per pound.

Uranium Industry Background

The need for safe, reliable, pollution-free electricity continues to rise as the world’s population grows to new record levels.

The world’s population of 7.9 billion in 2021 is projected to increase over 1% per year to a population near 8.5 billion by 2030.

The need for more electricity and efforts to reach global climate change goals with clean energy sources are important drivers for the projected long-term increase in nuclear power and uranium demand.

The world’s current operating fleet of nuclear power plants, in addition to the global growth in new reactors under construction and those planned, is testimony to the confidence in nuclear power to provide safe, highly reliable, economic and carbon free electricity as part of an overall energy supply mix.

The International Energy Agency (“IEA”) reported:

“global electricity demand fell about 1% in 2020 due to the impacts of the COVID-19 pandemic but expects 2021 to grow near 5% and 2022 by another 4%”.

The International Atomic Energy Agency (“IAEA”) reported:

“Throughout 2020, nuclear power reactors supplied 2553.2 TWh of low-emission and dispatchable electricity, which accounted for about 10% of total global electricity generation and nearly one-third of the world’s low-carbon electricity generation.

The 2020 nuclear power production was slightly lower compared to 2019 when the world’s nuclear reactors produced 2657.1 TWh.

The IAEA Power Reactor Information System shows a total of 5.55 GWe of new nuclear capacity was added in 2020 while 5.1 GWe was retired, and construction began on five new reactors with a total capacity of 4.5 GWe.

As of September 2021, the World Nuclear Association (“WNA”) data showed a total of 444 nuclear reactors operable in 32 countries, with a combined capacity of about 400 GWe.

Since the ratification of the Paris Agreement;

a legally binding international treaty on climate change that was adopted by 196 parties in Paris on December 15, 2015 and entered into on November 6, 2016;

the global community has embarked on a challenging but necessary journey to decarbonize the global energy mix in order to limit global warming to well below a two degree scenario compared to pre-industrial levels.

The Paris Agreement reaffirms that developed countries should take the lead in providing financial assistance to countries that are less endowed and more vulnerable, while for the first time also encouraging voluntary contributions by other parties.

Climate finance is needed for mitigation, because large-scale investments are required to significantly reduce emissions.

According to the International Energy Agency (“IEA”), in order to meet net-zero by 2050 global goals, the global community will need to halt sales of new internal combustion engine passenger cars by 2035, and phase out all unabated coal and oil power plants by 2040.

Nuclear energy will play a key role in the future energy mix, due to its consistency and reliability, which other carbon-free energy sources are unable to provide in their current form.

According to research conducted by Harvard University, the Massachusetts Institute of Technology and the Organization for Economic Cooperation and Development, powering the grid with 100% renewables is not the most affordable path towards creating a carbon-free grid.

Instead, this research has concluded that the best way to achieve net-zero emissions from the grid is to combine intermittent low-carbon sources, such as wind and solar, with one or more “firm”

zero-carbon sources, such as nuclear energy (source:

Nuclear Energy:

Essential Clean Energy For a Low Carbon Economy, Nuclear Energy Institute).

The need for safe, reliable, pollution-free electricity continues to rise as the world’s population grows to new record levels.

The world’s population of 8 billion in 2022 is projected to increase over 1% per year to a population near 8.6 billion by 2030.

The need for more electricity and efforts to reach global climate change goals with clean energy sources are increasingly important drivers for the projected long-term increase in nuclear power and uranium demand.

There has been a new and vibrant interest in nuclear power as more countries realize that nuclear power is indispensable for decarbonizing the globe, stabilizing electrical grids and supplementing intermittent power sources.

Elevated interest in nuclear power has also been one of the results of the Russian invasion of Ukraine with Russia cutting off gas supplies to Western Europe.

The lack of alternative energy sources has exposed the risks to national security for these countries as a result of their Russian over dependency, and indigenous nuclear power is proving to be a good option to mitigate that threat.

The World Nuclear Association (“WNA”) reported:

“nuclear reactors generated a total of 2653 TWh in 2021, up 100 TWh from 2553 TWh in 2020.

This is the third highest ever total for global generation from nuclear…

and reestablishes the upward trend in nuclear generation seen since 2012.”

The IEA World Energy Outlook in 2021 projected “electricity generation growth of between 75% and 116% over 2020-2050 across its three main scenarios.

In the report’s Sustainable Development Scenario, “nuclear generation increases by 2022 TWh (75%) over the same period, requiring capacity growth of about 254 GW, or 61%.”

As of July 31, 2022, the IAEA Power Reactor Information System shows more than 6 GWe of new nuclear capacity has been added in 2022 while 1.85 GWe has been retired, and construction has begun on four new reactors this year with a total capacity of 4.6 GWe. 

As of July 2022, WNA data showed a total of 443 nuclear reactors operable in 32 countries, with a combined capacity of about 394 GWe.

Their data also showed 59 new reactors under construction, 89 reactors planned or on order and another 340 proposed.

In the WNA’s Emerging Nuclear Energy Countries report they noted:

“about 30 countries are considering, planning or starting nuclear power programs, and a further 20 or so countries have at some point expressed an interest”.

While most of the growth in nuclear power is coming from countries like China and Russia, there is also notable growth in other countries, including India and the United Arab Emirates.

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While global generation from nuclear power has eclipsed pre-Fukushima levels, Japan restarts have been slower than expected.

To date, a total of 27 reactors have applied for restart including the nine reactors that have restarted.

As of August 1, 2022, a total of 26 reactors had applied for restart, including ten reactors that have restarted.

More restarts are expected as Japan completes additional safety programs and ramps back up towards a policy goal of 20 to 22 percent of their total electrical generation from nuclear power by 2030.

The WNA’s 2021 Fuel Report noted:

“regardless of the particular scenario in the long term, the industry needs to at least double its development pipeline of new projects by 2040”.

The 2021 report also noted that in all scenarios “world reactor requirements for uranium in 2040 are about approximately 12% higher” than in the previous 2019 report.

World base case uranium demand is forecasted to be about 191 million pounds U 3 O 8 in 2021, exceeding the 128 million pounds of projected production by about 63 million pounds (source:

UxC 2021 Q3 UMO).

Production was curtailed by almost 20 million pounds in 2020 due to the COVID-19 pandemic, but most operations have resumed.

However, the COVID-19 pandemic shutdowns have accelerated inventory drawdowns and it is expected that the lost production will not be made up.

Primary production has become increasingly concentrated, with about 80% of global production coming from State Owned Enterprises (“SOEs”).

Resource depletion is also a factor impacting supply with two long standing projects ceasing operations that have been producing about seven million pounds per year.

Other major projects remain in an idle mode until market prices rise sufficiently to justify production.

While the difference between primary production and reactor demand is currently being filled with secondary market supplies, this is not a sustainable long-term supply source.

Recent forecasts expect secondary sources to drop about 43%, from 63 million pounds U 3 O 8 in 2021 to about 36 million pounds by 2024.

While there are different estimates on timing, it is clear that secondary supply (including inventory drawdown) will be insufficient to fill a projected supply-demand gap, and new production will be required.

As this transition evolves, the market will become more production cost driven as opposed to inventory driven.

In their August 9, 2021, Weekly Report, UxC published an article entitled “The Disconnect Between U 3 O 8 Prices and Production Costs”.

The article noted:

“secondary supplies to account for significantly smaller shares of global demand at 19% in 2025 and only 7% by 2035, which means that higher uranium prices will be necessary to incentivize incremental production that is currently either on standby or under development”.

In 2021 secondary supply is projected to account for about one third of total supply.

Industry consultant TradeTech noted in their 2021 Uranium Market Study (Issue 2) that:

“With Secondary Supplies forecast to decline in the period 2019-2040, this evolving dynamic looks to place even greater demands on an underfunded and underdeveloped primary sector”.

The United States has the world’s largest nuclear fleet and produced more than 30% of the world’s nuclear generation with approximately 790 billion kilowatt hours in 2020.

Department of Energy (“DOE”) reported U.S.

nuclear plants continued to be the nation’s most reliable energy source with an average capacity factor of more than 92 percent.

Japanese Prime Minister Fumio Kishida recently said he has asked for as many as nine nuclear reactors to be online this coming winter to help offset expected power shortages.

The United States has the world’s largest nuclear fleet and produces about 30% of the world’s nuclear generation.

Department of Energy (“DOE”) Energy Information Administration reported U.S.

nuclear plants continued to be the nation’s most reliable energy source with an average capacity factor of more than 93 percent this past year.

For context, capacity factors for other sources of energy were natural gas (54%), coal (49%), wind (35%) and solar (25%).

In 2020 nuclear plants provided more than half of U.S carbon free energy and about 20% of its total generation as the nation’s second largest energy source.

In 2021, nuclear plants provided more than half of U.S carbon free energy and about 20% of its total generation.

As of August 2022, the operating U.S.

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In terms of uranium demand, the U.S.

nuclear fleet is the world’s largest uranium consumer and has averaged about 47 million pounds of uranium a year over the past decade.

uranium mining industry was formerly the world’s largest producer but is now producing virtually none of the U.S.

reactor requirements.

The United States has become almost entirely dependent on foreign supply, with more than half of its requirements being imported from SOEs in Russia, other former Soviet Union countries and China.

nuclear fleet is the world’s largest uranium consumer and has averaged about 46 million pounds of uranium a year over the past decade.

Regarding uranium supply, the WNA’s 2021 Fuel Report noted:

“regardless of the particular scenario in the long term, the industry needs to at least double its development pipeline of new projects by 2040”.

And they also noted:

“Over the longer term, the Reference Scenario shows demand for uranium growing by 3.1% compound average growth rate.”

The 2021 report also noted that in all scenarios “world reactor requirements for uranium in 2040 are approximately 12% higher”

than in the previous 2019 report.

World base case uranium demand is forecasted to be about 204 million pounds U 3 O 8 in 2022, exceeding the 134 million pounds of projected production by about 70 million pounds (source:

UxC 2022 Q2 UMO).

While the difference between primary production and reactor demand is currently being filled with secondary market supplies, this is not a sustainable long-term supply source.

Projections from UxC 2022 Q2 MO show secondary market supplies dropping to less than 24 million pounds per year over the next 4 years.

uranium mining industry was formerly the world’s largest producer but is now producing virtually no uranium.

The United States has become almost entirely dependent on foreign supply, with about 60% being imported from State Owned Enterprises (“SOE”) in Russia and other former Soviet Union (“FSU”) countries, including Kazakhstan and Uzbekistan.

However, actions taken by the U.S.

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Most notably, the prior administration established the U.S.

Nuclear Fuel Working Group (“NFWG”) comprised of various government agencies “to develop recommendations for reviving and expanding domestic nuclear fuel production”.

The NFWG recommendations were released in a report entitled, “Restoring America’s Competitive Nuclear Energy Advantage”.

Nuclear Fuel Working Group (“NFWG”) comprised of various government agencies “to develop recommendations for reviving and expanding domestic nuclear fuel production”.

The NFWG recommendations were released in a report entitled, “Restoring America’s Competitive Nuclear Energy Advantage”.

The report broadly advocates for increased U.S.

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Uranium mining is the starting point in the strategy with a program to purchase 17 to 19 million pounds of U.S.

uranium for a strategic Uranium Reserve (the “UR”).

The previous administration’s budget outlined a 10-year, $1.5 billion UR program.

DOE is in the process of developing this program and in 2020, the U.S.

uranium for a strategic Uranium Reserve.

That Administration’s policy outlined a 10-year, $1.5 billion UR program. 

In 2020, the U.S.

Congress approved $75 million for initial funding for fiscal year 2021.

producer, contracts to supply the UR will need to be at levels that are more reflective of production costs to sustain operations.

The global uranium market suffered a long downturn after peaking in 2007 at $138 per pound U 3 O 8 that was followed by a rebound and then a subsequent drop of about 75% from early 2011 into the 2016 low of $17.75 per pound.

However, the market has been showing a slow recovery since, and was up by approximately 80% in early August 2021 from the 2016 low.

Since early August 2021, exceptionally strong buying has emerged, primarily from financial entities, and the spot market U 3 O 8 price was up by approximately 150% as of the date of this Annual Report from the 2016 low.

In July of 2022, the DOE National Nuclear Security Administration (“NNSA”) issued Requests for Proposals (“RFP”) to the U.S.

producers that had produced uranium since 2009, for an initial quantity of up to 1 million pounds of domestic uranium.

Results of the NNSA RFP are expected to be known this year at the end of September.

However, the market has been showing a slow recovery since, and was up by approximately 175% going into August 2022 from the 2016 low.

Global fundamentals are in process of rebalancing the uranium market and driving an improvement in the price of uranium.

As outlined above, increased levels of production cuts from major producers, plus significant purchasing by producers to fill long-term supply contracts, as well as financial entities and producers buying significant quantities of uranium for appreciation purposes, are all contributing to the upward movement in uranium prices.

Ultimately, the forces of supply and demand will dictate the uranium market’s future direction.

Significant purchasing by producers to fill long-term supply contracts, as well as financial entities buying significant quantities of uranium for appreciation purposes, have all been contributing to the upward movement in uranium prices.

Other factors that have affected global production include production shutdowns or reductions as a result of the COVID-19 pandemic that removed almost 20 million pounds of production in 2020 that will not be made up.

While most of the impacted mines have or are in the process of ramping back up operations, there are still lingering factors affecting production.

In early August, the world’s largest producer (Kazatomprom) announced the pandemic “disrupted the overall production supply chain in 2021, resulting in a shortage of certain production materials, such as reagents and piping which led to a shift in the commissioning schedule for new wellfields.”

This year the nuclear fuel markets have experienced a fundamental change after Russia invaded Ukraine with western utilities beginning an almost immediate shift away from Russian supply.

Industry consultant “TradeTech”

reported that the new trend “is foreshadowing a potential bifurcation in the nuclear fuel markets.”

While the markets are still sorting out what all the impacts might be, one of the more likely postulated outcomes is a western market that will not receive much if any supply from suppliers in the Commonwealth of Independent States (the “CIS”).

The CIS includes Russia, Kazakhstan and Uzbekistan that together supplied about 60% of U.S.

uranium requirements in 2021, a new record high from these FSU countries.

Most western utilities with suppliers in the CIS are already pursing increased diversification strategies with supply options from the U.S and its allies that are in more stable jurisdictions.

While sanctions banning some Russian energy sources have been implemented in the U.S., there has not been a ban placed on Russian uranium to date, although legislation has been introduced to do so.

Transportation issues are also impacting uranium supply with routes through Russian ports or supply on Russian vessels running into legal constraints.

While alternate routes are being worked on (i.e.

the Caspian Sea), to date these routes are not fully functioning. 

As a result, there has been additional buying on the spot market by the impacted suppliers.

Ultimately, the forces of supply and demand will dictate the uranium market’s future direction.

While the global market has clearly improved since the 2016 low, we still expect several major drivers to further bolster prices.

Higher priced contracts that have supported high production costs are continuing to roll out of producer and utility supply portfolios.

These higher priced contracts are not replaceable with current market prices below levels needed to sustain profitable mining operations for many western producers.

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

In addition, several projects that have produced significant quantities of uranium for many years have been shut down as a result of resource depletion and the WNA notes:

“more mines are expected to close over the next decade”.

Higher priced contracts that have supported high production costs have largely rolled out of producer and utility supply portfolios.

These higher priced contracts are not expected to be replaceable with current market prices still below levels needed to sustain profitable mining operations for many western producers.

Several projects that have produced significant quantities of uranium for many years have been shut down as a result of resource depletion and the WNA notes:

“more mines are expected to close over the next decade”.

SOE supply is also likely to be reduced in the U.S.

market with the U.S.

government’s intent to close the national security risks that overdependence presents.

and Western European markets with the fallout from Russia’s invasion of Ukraine that has exposed serious national security risks to those countries with overdependence on Russian energy sources.

Global supply demand numbers are showing a cumulative structural supply deficit of approximately 440 M lbs in 2022 through 2032, despite several new production projects expected to come online.

The supply dynamics in western countries are still unfolding, as western utilities look to explore and secure alternative supply options in more stable jurisdictions.

On the demand side of the equation, further upside market pressure also appears likely to evolve as utilities return to a longer-term contracting cycle to replace expiring contracts.

Utilities will most likely need to do a lot more contracting in upcoming years with more than 50% of their requirements showing uncommitted by 2029.

That factor and the growing recognition that nuclear power will need to be part of the solution to meet climate change objectives underpin a solid growth story for long term uranium producers.

As these and other market forces unfold, the inventory and SOE supply should become less important drivers, paving the way for a more production cost driven market.

As these and other market forces unfold, the secondary market supply is forecasted to become a less important driver, paving the way for a more production cost driven market.

Lead times for new production typically range from seven to 10 years or longer.

The market appears to be within the time frames required for investment to bring new supply online to meet those lead times.

However, prices are not yet at levels that incentivize future production for many producers, increasing the probability of the potential for less supply than the market is currently pricing in.

While some producers have announced restart plans, prices are not yet at levels that incentivize future production for many producers, increasing the probability of the potential for less supply than the market is currently pricing in.

Titanium (TiO2) Industry Updates

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There is no economical substitute or environmentally safe alternative to titanium dioxide.

Titanium dioxide is used in many "quality of life" products for which demand historically has been linked to global gross domestic product (“GDP”), ongoing urbanization trends and discretionary spending.

90% of all the mined titanium feedstocks are used to manufacture pure titanium dioxides – a pigment that enhances brightness and opacity in paints, inks, paper, plastics, food products and cosmetics.

Titanium dioxide is used in many “quality of life”

products for which demand historically has been linked to global gross domestic product (“GDP”), ongoing urbanization trends and discretionary spending. 

90% of all the mined titanium feedstocks are used to manufacture pure titanium dioxides –

a pigment that enhances brightness and opacity in paints, inks, paper, plastics, food products and cosmetics.

The remaining 10% of supply is used in the production of titanium metal and steel fabrication.

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Demand for titanium pigment rebounded strongly during the first half of 2022 due to global economic growth, while the supply of titanium dioxide feedstock was impacted due to difficulties encountered by some producers which had a direct effect on prices.

The rebound in demand and impact on supply and prices are expected to continue for the second half of 2021 and in 2022.

Existing producers continue to report increasing ilmenite prices due to low inventories throughout the supply chain with prices and demand expected to remain robust throughout 2022.

In addition to above mentioned supply constraints, the nature of feedstock supply is also changing.

China, the world's largest feedstock market, is increasingly more reliant on higher quality feedstocks.

Chinese domestic ilmenite is mainly unsuitable for processing under the stricter environmental regulations and, as such, the long-term global shift towards chloride pigment production will continue to drive overall high-quality feedstock demand and prices.

China, the world’s largest feedstock market, is increasingly more reliant on higher quality feedstocks. Chinese domestic ilmenite is mainly unsuitable for processing under the stricter environmental regulations and, as such, the long-term global shift towards chloride pigment production will continue to drive overall high-quality feedstock demand and prices.  

In our view, what appear to be longer-term supply and demand fundamentals and, more specifically, the long-term global shift towards higher grade feedstocks, have the potential to keep upward pressure on high-quality feedstock prices.

In-Situ Recovery (ISR) Mining

We utilize or plan on utilizing in-situ recovery or ISR uranium mining for our South Texas projects, including our Palangana Mine, as well as our Reno Creek Project in Wyoming, and will continue to utilize ISR mining whenever such alternative is available to conventional mining.

When compared to conventional mining, ISR mining requires lower capital expenditures and has a reduced impact on the environment, as well as a shorter lead time to uranium recovery.

We utilize in-situ recovery or ISR uranium mining for our South Texas projects as well as our Reno Creek Project in Wyoming, and will continue to utilize ISR mining whenever such alternative is available to conventional mining.

When compared to conventional mining, ISR mining requires lower capital expenditures, has a reduced impact on the environment, and results in a shorter lead time to uranium recovery.

ISR mining is considered considerably more environmentally friendly compared to alternative, traditional mining approaches, as the ISR process does not require blasting or waste rock movement, resulting in less damage to the environment, minimal dust, and no resulting tailings or tailings facilities.

Further, ISR mining is more discrete and, therefore, land access does not typically have to be restricted, and the area may be restored to its pre-mining usage faster than when applying traditional mining approaches.

ISR mining involves circulating oxidized water through an underground uranium deposit, dissolving the uranium and then pumping the uranium-rich solution to the surface for processing.

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The stripped resin beads are then transported back to the mine and reused in the ion exchange columns.

The uranium solution, now free from the resin, is precipitated out and concentrated into a slurry mixture and fed to a filter press to remove unwanted solids and contaminants.

The uranium solution, now free from the resin, is precipitated out and concentrated into a slurry mixture and fed to a filter press to remove unwanted solids and contaminants.

The slurry is then dried in a zero-emissions rotary vacuum dryer, packed in metal drums and shipped out as uranium concentrates, or yellowcake, to a conversion facility for storage and sales.

Each project is divided into a mining unit, known as a Production Area Authorization (“PAA”), which lies inside an approved Mine Permit Boundary.

Each PAA will be developed, extracted and restored as one unit and will have its own set of monitor wells.

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On December 18, 2009, we acquired the Hobson Processing Facility as part of our acquisition of STMV.

With a physical capacity to process uranium-loaded resins up to a total of two million pounds of U 3 O 8 annually, and licensed to process up to one million pounds of U 3 O 8 annually, our fully-licensed and 100%-owned Hobson Processing Facility forms the basis for our “hub-and-spoke” strategy in the State of Texas, specifically in the South Texas Uranium Belt, where we utilize ISR mining.

With a physical capacity to process uranium-loaded resins up to a total of two million pounds of U 3 O 8 annually and licensed to process up to one million pounds of U 3 O 8 annually, our fully-licensed and 100%-owned Hobson Processing Facility forms the basis for our “hub-and-spoke”

strategy in the State of Texas, specifically in the South Texas Uranium Belt, where we utilize ISR mining.

Palangana Mine

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Material Relationships Including Long-Term Delivery Contracts

As at July 31, 2021, we had no uranium supply or “off-take” agreements in place.

As at July 31, 2022, we had no uranium supply or “off-take”

agreements in place.

Given that there are up to approximately 60 different companies as potential buyers in the uranium market, we are not substantially dependent upon any single customer to purchase uranium extracted by us.

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We have amended the majority of the leases to extend the time period for an additional five years past the original five-year renewal periods.

Our Burke Hollow and some of our Goliad leases have a fixed royalty amount based on net proceeds from sales of uranium, and our other projects have production royalties calculated on a sliding-scale basis tied to the gross sales price of uranium.

Our Burke Hollow and some of our Goliad Project leases have a fixed royalty amount based on net proceeds from sales of uranium, and our other projects have production royalties calculated on a sliding-scale basis tied to the gross sales price of uranium.

Remediation of a property is required in accordance with regulatory standards, which may include the posting of reclamation bonds.

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Our federal mining claims consist of both unpatented lode and placer mining claims registered with the U.S.

Bureau of Land Management (“BLM”) and the appropriate counties.

These claims provide for all mineral rights including surface access rights for an indefinite period.

Annual maintenance requirements include BLM claim fees of $165 per claim due yearly on September 1 st .

Our state mineral leases are registered with their respective states.

These leases provide for all mineral rights, including surface access rights, subject to a production royalty of 4% in Wyoming and 5% to 6% in Arizona, ranging from a five-year term in Arizona to a ten-year term in Wyoming.

Annual maintenance requirements include lease fees of $1 and $3 per acre and minimum exploration expenditure requirements of $10 and $20 per acre in Arizona.

These leases provide for all mineral rights, including surface access rights, to be subject to a production royalty of 4% in Wyoming and 5% to 6% in Arizona, ranging from a five-year term in Arizona to a ten-year term in Wyoming.

Annual maintenance requirements include lease fees of between $1 and $3 per acre and minimum exploration expenditure requirements of between $10 and $20 per acre in Arizona.

Our private mineral leases are negotiated directly with the owners of the land/mineral/surface rights with varying terms.

These leases provide for uranium and certain other specified mineral rights only, including surface access rights, subject to production royalties, ranging from an initial term of five to seven years and renewal for a second five-year to seven-year term, and some of which have an initial term of 20 years.

Under the mining laws of Saskatchewan, Canada, title to mineral rights for our Diabase Project is held through The Crown Minerals Act of the Province of Saskatchewan.

In addition, The Mineral Resources Act, 1985 and The Mineral Tenure Registry Regulations affect the rights and administration of mineral tenure in Saskatchewan.

Our Diabase Project lands are currently claimed as “Crown dispositions” or “mineral dispositions”.

Our Diabase Project lands are currently claimed as “Crown dispositions”

or “mineral dispositions”.

Subject to section 19 of The Crown Minerals Act, a claim grants to the holder the exclusive right to explore for any Crown minerals that are subject to these regulations within the claim lands.

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A claim may be converted to a mineral lease upon application and payment of a registration fee.

Under the mining laws of the Republic of Paraguay, title to mineral rights for our Yuty Project is held through a “Mineral Concession Contract” approved by the National Congress and signed between the Government of the Republic of Paraguay and the Company, and titles to mineral rights for our Oviedo Project and our Alto Paraná Titanium Project are held through “Exploration Mining Permits” granted by the Ministry of Public Works and Communications (“MOPC”), the mining regulator in Paraguay.

Under the mining laws of the Republic of Paraguay, title to mineral rights for our Yuty Project is held through a “Mineral Concession Contract”

approved by the National Congress and signed between the Government of the Republic of Paraguay and the Company, and titles to mineral rights for our Oviedo Project and our Alto Paraná

Titanium Project are held through “Exploration Mining Permits”

granted by the Ministry of Public Works and Communications (“MOPC”), the mining regulator in Paraguay.

These mineral rights provide for the exploration of metallic and non-metallic minerals and precious and semi-precious gems within the territory of Paraguay for up to a six-year period, and for the exploitation of minerals for a minimum period of 20 years from the beginning of the production phase, extendable for an additional ten years.

Environmental Regulation

Our activities will be subject to existing federal, state and local laws and regulations governing environmental quality and pollution control.

Our operations will be subject to stringent environmental regulation by state and federal authorities including the Railroad Commission of Texas (“RCT”), the Texas Commission on Environmental Quality (“TCEQ”) and the United States Environmental Protection Agency (“EPA”).

In Texas surface extraction and exploration for uranium is regulated by the RCT, while ISR uranium extraction is regulated by the TCEQ.

Environmental, Social and Governance Overview

UEC is dedicated to preserving the environment in which we operate, and to being a responsible neighbor to our local communities.

We believe in mining in a responsible manner, such as through the deployment of ISR technology when possible, adhering to all applicable environmental regulations and managing and reducing our carbon emissions.

UEC believes that uranium and nuclear energy will be an important part of the energy transition as it can provide reliable and consistent power to the grid.

Ensuring responsible mining practices better positions nuclear to be an energy source of choice to governments, and enables us to be a better partner and corporate citizen to our local communities.

Environmental Management

Environmental Governance

UEC approved an Environmental, Health and Safety Policy in Fiscal 2022 which sets out objectives and provides overarching guidelines for the management of the environment.

This enterprise-wide policy can be found at https://www.uraniumenergy.com/about/corporate-governance/.

Topics covered in this policy include the management of hazardous waste, water, biodiversity and land use, air quality and pollutants, green-house gas (“GHG”) emissions, and energy management.

Adherence to and performance against this policy will be reviewed by our Board of Directors’

Sustainability Committee annually.

Environmental Regulations

We believe that we comply with all federal, state and local applicable laws and regulations which govern environmental quality and pollution control. 

Our operations are subject to stringent environmental regulation by state and federal authorities including the Railroad Commission of Texas (“RCT”), the Texas Commission on Environmental Quality (“TCEQ”) and the United States Environmental Protection Agency (“EPA”).

In Texas, where the Company’s hub-and-spoke operations are anchored by the fully-licensed Hobson Processing Facility, surface extraction and exploration for uranium is regulated by the RCT, while ISR uranium extraction is regulated by the TCEQ.

An exploration permit is the initial permit granted by the RCT that authorizes exploration drilling activities inside an approved area.

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As at July 31, 2022, we held one exploration permit in each of Bee, Duval and Goliad Counties in Texas.

Before ISR uranium extraction can begin in Texas, a number of permits must be granted by the TCEQ.

A Mine Area Permit (“MAP”) application is required for submission to the TCEQ to establish a specific permit area boundary, aquifer exemption boundary and the mineral zones of interests or production zones.

As an example of the regulation that guides our industry, before ISR uranium extraction can begin in Texas, a number of permits must be granted by the TCEQ.

The application also includes a financial surety plan to ensure funding for all plugging and abandonment requirements.

Funding for surety is in the form of cash or bonds, including an excess of 15% for contingencies and 10% for overhead, adjusted annually for inflation.

As at July 31, 2021, we held MAPs for our Palangana Mine, Goliad Project and Burke Hollow Project.

A Radioactive Material License (“RML”) application is also required for submission to the TCEQ for authorization to operate a uranium recovery facility.

As at July 31, 2022, we held MAPs for our Palangana Mine and our Goliad and Burke Hollow Projects.

A Radioactive Material License (“RML”) application is also required for submission to the TCEQ for authorization to operate a uranium recovery facility.

The application includes baseline environmental data for soil, vegetation, surface water and groundwater along with operational sampling frequencies and locations.

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Surety funding is in the form of cash or bonds, and includes an excess of 15% for contingencies and 10% for overhead, adjusted annually for inflation.

As at July 31, 2021, we held RMLs for our Palangana Mine, Burke Hollow Project, Goliad Project and Hobson Processing Facility.

As at July 31, 2022, we held RMLs for our Palangana Mine, Burke Hollow and Goliad Projects and Hobson Processing Facility.

PAA applications are also required for submission to the TCEQ to establish specific extraction areas inside the MAP boundary.

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This permit authorizes injection into a specific injection zone within a designated injection interval.

The permit requires continuous monitoring of numerous parameters including injection flow rate, injection pressure, annulus pressure and injection/annulus differential pressure.

Mechanical integrity testing is required initially and annually to ensure the well is mechanically sound.

The permit requires continuous monitoring of numerous parameters including injection flow rate, injection pressure, annulus pressure and injection/annulus differential pressure. 

Mechanical integrity testing is required initially and annually to ensure the well is mechanically sound. 

Surety funding for plugging and abandonment of each well is in the form of cash or bonds, including 15% for contingencies and 10% for overhead, adjusted annually for inflation.

As at July 31, 2021, we held two Class I disposal well permits for each of our Hobson Processing Facility, our Palangana Satellite Facility, our Burke Hollow Project and our Goliad Project.

The federal Safe Drinking Water Act (“SDWA”) creates a regulatory program to protect groundwater and is administered by the EPA.

The SDWA allows states to issue underground injection control (“UIC”) permits under two conditions:

the state’s program must have been granted primacy;

and the EPA must have granted an aquifer exemption upon the state’s request (an “Aquifer Exemption”).

As at July 31, 2022, we held two Class I disposal well permits for each of our Hobson Processing Facility, Palangana Satellite Facility and Burke Hollow and Goliad Projects.

The federal Safe Drinking Water Act (“SDWA”) creates a regulatory program to protect groundwater and is administered by the EPA.

The SDWA allows states to issue underground injection control (“UIC”) permits under two conditions:

the state’s program must have been granted primacy;

and the EPA must have granted an aquifer exemption upon the state’s request (an “Aquifer Exemption”).

Texas, being a primacy state, is therefore authorized to grant UIC permits and makes the official requests for an Aquifer Exemption to the EPA.

The Aquifer Exemption request is submitted by the Company to the TCEQ and, once approved, is then submitted by the TCEQ to the EPA for concurrence and final issuance.

As at July 31, 2021, we held an Aquifer Exemption for each of our Palangana Mine, our Goliad Project and our Burke Hollow Project.

As at July 31, 2022, we held an Aquifer Exemption for each of our Palangana Mine and our Goliad and Burke Hollow Projects.

Waste Disposal

The Resource Conservation and Recovery Act (“RCRA”) and comparable state statutes affect mineral exploration and production activities by imposing regulations on the generation, transportation, treatment, storage, disposal and cleanup of “hazardous wastes” and on the disposal of non-hazardous wastes.

and on the disposal of non-hazardous wastes.

Under the auspices of the EPA, the individual states administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent requirements

Comprehensive Environmental Response, Compensation and Liability Act

The federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) imposes joint and several liability for costs of investigation and remediation and for natural resource damages, without regard to fault or the legality of the original conduct, on certain classes of persons with respect to the release into the environment of substances designated under CERCLA as hazardous substances (collectively, “Hazardous Substances”).

These classes of persons or potentially responsible parties include the current and certain past owners and operators of a facility or property where there is or has been a release or threat of release of a Hazardous Substance and persons who disposed of or arranged for the disposal of the Hazardous Substances found at such a facility.

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Air Emissions

Our operations are subject to local, state and federal regulations for the control of emissions of air pollution.

Major sources of air pollutants are subject to more stringent, federally imposed permitting requirements.

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Presently our Palangana Mine, our Hobson Processing Facility and our Goliad Project all have permits by rule covering air emissions.

Clean Water Act

The Clean Water Act (“CWA”) imposes restrictions and strict controls regarding the discharge of wastes, including mineral processing wastes, into waters of the United States, a term broadly defined.

Water Management

UEC commits its management team, employees and contractors to be good stewards of the water it utilizes in all parts of its operations.

From exploration to restoration, water is the critical factor for ISR mining and responsibly managing that water is crucial to our business.

At all UEC’s ISR projects the ore hosted groundwater does not meet either primary or secondary drinking water standards and should only be used for industrial or agricultural use without proper treatment.

Water consumption at UEC’s ISR mining projects is primarily natural groundwater.

During the recovery process, water is pumped from the ore hosted aquifer and piped to the satellite facility.

The groundwater is filtered for solids, stripped of uranium, allowed to settle and then approximately 95% is reinjected or recirculated back into the same aquifer it was recovered from.

This recycling process is an overwhelming advantage of ISR mining compared to other methods such as conventional or open pit.

In order to ensure appropriate water management, and to ensure our team can continuously make decisions to reduce our water usage, UEC closely monitors our water consumption.

UEC is identifying ways to reduce water consumption on an ongoing basis.

Compliance with the Clean Water Act

The Clean Water Act (“CWA”) imposes restrictions and strict controls regarding the discharge of wastes, including mineral processing wastes, into waters of the U.S., a term broadly defined.

Permits must be obtained to discharge pollutants into federal waters.

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State laws governing discharges to water also provide varying civil, criminal and administrative penalties and impose liabilities in the case of a discharge of petroleum or its derivatives, or other hazardous substances, into state waters.

In addition, the EPA has promulgated regulations that may require us to obtain permits to discharge stormwater runoff.

In the event of an unauthorized discharge of wastes, we may be liable for penalties and costs.

In addition, the EPA has promulgated regulations that may require us to obtain permits to discharge storm water runoff.

Management believes that we are in substantial compliance with current applicable environmental laws and regulations.

GHG Emissions Management

Mining is an essential industry to enable the global transition to net-zero.

Uranium mining, at the heart of UEC’s business, fuels nuclear energy, which is an essential carbon-free energy source.

Beyond this, we understand that our operational activities do contribute to climate change through the release of emissions.

Therefore, over the next several years, we will begin a process to understand our emissions profile, as well as identify and implement opportunities to reduce emissions, where and when possible.

We have created an emissions inventory of all sources (mobile and stationary) for each Texas project and we have initiated fuel consumption tracking by individual source at each project. We have created tracking mechanisms for all Scope 1 and 2 emissions for our Texas projects, which includes fuel consumption and mileage for the Texas fleet and stationary sources as well as electrical energy consumption at each Texas project. Scope 1 emissions covers direct emissions from owned or controlled sources.

Scope 2 emissions covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the Company.

Through developing this inventory, we have been able to identify, assess and conduct a cost benefit analysis for emission reduction opportunities at UEC’s Texas projects. Such opportunities include exploring ways to upgrade our Hobson plant into a zero-emissions processing plant. 

Aligned to responsibly managing our emissions in the short-term, we have purchased carbon offset credits for our Scope 1 and 2 emissions for our Texas sites.

Health and Safety

Health and safety is one of our top priorities.

We pride ourselves on employing safe practices in all aspects of its work.

In Fiscal 2022, UEC’s Board approved an Environmental, Health and Safety Policy that provides overall objectives and guidance for our health and safety management.

Supporting this Policy, at each site, UEC has a number of operational policies and practices covering radiation safety and procedures, spills and leakage reporting, equipment training and emergency response procedures.

There is also a company-wide Injury and Incident Policy covered in the employee handbook that all employees are familiar with and are required to comply against.

Training for employees on health and safety protocols are essential to ensuring we employ best safety practices at all times.

Although exact training hours have not been recorded for this fiscal year, UEC has provided training to staff on a variety of safety topics, including, but not limited to, the following topics:

Annual radiation safety training for all plant and wellfield employees;

Bi-Annual Radiation Safety Officer training;

Radiation Safety Technician training;

Logging training;

First Aid/CPR training every two years;

Rig Safety/Inspections training;

Annual DOT Training/HazMat training.

UEC’s health and safety practices are developed to ensure that all regulatory requirements are met.

Across all of our sites, our employees are required to report all injuries to their supervisor.

On an annual basis, all reports are analyzed and tracked as required by the Occupational Health and Safety Association (“OSHA”).

Given the nature of UEC’s specialized industry, there are site-specific emergency procedures in place that identify the steps employees should take in the event of a health and safety emergency.

The uranium industry is highly competitive, and our competition includes larger, more established companies with longer operating histories that not only explore for and produce uranium but also market uranium and other products on a regional, national or worldwide basis.

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Additionally, these larger companies have greater resources to continue with their operations during periods of depressed market conditions.

The global titanium market is highly competitive, with the top six producers accounting for approximately 60% of the world’s production capacity according to TZ Minerals International Pty.

Competition is based on a number of factors, such as price, product quality and service.

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Other services are provided by outsourcing and consulting and special purpose contracts.

As of July 31, 2021, we had 47 persons employed on a full-time basis and two individuals providing services on a contractual basis.

As of July 31, 2022, we had 63 persons employed on a full-time basis and four individuals providing services on a contractual basis.

Human Capital

As of July 31, 2022, our employee population consisted of 63 individuals working for us and our consolidated subsidiaries, 38 of whom were located in the United States, 13 in Canada and 12 in Paraguay.

Our Company is committed to attracting and retaining talented and experienced individuals to manage and support our operations. 

We engage in a variety of learning and development opportunities with our employees, including ongoing training, continuing education courses, workshops and seminars and membership in professional organizations relating to employees’

projects areas of expertise.

We strive to fill employment openings through internal promotions or transfers of qualified employees, as appropriate.

Available Information

The Company’s website address is www.uraniumenergy.com and our annual reports on Form 10-K and quarterly reports on Form 10-Q, and amendments to such reports, are available free of charge on our website as soon as reasonably practicable after such materials are filed or furnished electronically with the SEC.

These same reports, as well as our current reports on Form 8-K, and amendments to those reports, filed or furnished electronically with the SEC are available for review at the SEC’s website at www.sec.gov .

Printed copies of the foregoing materials are available free of charge upon written request by email at info@uraniumenergy.com .

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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-K

Item 1. Business