URANIUM ENERGY CORP 10-Q

Item 1. Financial Statements 4 Table of Contents URANIUM ENERGY CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE three and nine months ended April 30, 2025 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated) 5 Table of Contents URANIUM ENERGY CORP. INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited – Expressed in thousands of U.S. dollars) Notes April 30, 2025 July 31, 2024 CURRENT ASSETS Cash and cash equivalents $ 71,397 $ 87,533 Inventories 4 76,358 75,833 Prepaid expenses and other receivables 4,908 3,147 Investment in equity securities 9 - 68,731 TOTAL CURRENT ASSETS 152,663 235,244 MINERAL RIGHTS AND PROPERTIES 5 710,340 557,583 PROPERTY, PLANT AND EQUIPMENT 6 67,547 20,465 RESTRICTED CASH 7 9,207 7,251 EQUITY-ACCOUNTED INVESTMENTS 8 55,566 58,809 INVESTMENT IN EQUITY SECURITIES 9 8,763 6,533 OTHER NON-CURRENT ASSETS 3,724 3,943 TOTAL ASSETS $ 1,007,810 $ 889,828 CURRENT LIABILITIES Accounts payable and accrued liabilities $ 11,897 $ 22,938 Asset retirement obligations - current 10 2,845 2,953 Derivative liabilities 11 - 3,030 Other current liabilities 355 301 TOTAL CURRENT LIABILITIES 15,097 29,222 ASSET RETIREMENT OBLIGATIONS 10 35,879 16,672 OTHER NON-CURRENT LIABILITIES 1,395 1,474 DEFERRED TAX LIABILITIES 3 62,647 64,347 TOTAL LIABILITIES 115,018 111,715 STOCKHOLDERS’ EQUITY Capital stock Common stock $ 0.001 par value: 750,000,000 shares authorized, 435,027,962 shares issued and outstanding (July 31, 2024 - 410,355,768 ) 12 435 410 Additional paid-in capital 1,285,772 1,110,433 Accumulated deficit ( 379,505 ) ( 318,901 ) Accumulated other comprehensive loss ( 13,910 ) ( 13,829 ) TOTAL EQUITY 892,792 778,113 TOTAL LIABILITIES AND EQUITY $ 1,007,810 $ 889,828 COMMITMENTS AND CONTINGENCIES 4,10 SUBSEQUENT EVENTS 12 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 6 Table of Contents URANIUM ENERGY CORP. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited – Expressed in thousands of U.S. dollars, except share and per share data) Three Months Ended Nine Months Ended April 30, April 30, Notes 2025 2024 2025 2024 SALES AND SERVICE REVENUE 14 $ - $ - $ 66,837 $ 224 COST OF SALES AND SERVICES 14 - - ( 42,360 ) ( 187 ) GROSS PROFIT - - 24,477 37 OPERATING COSTS Mineral property expenditures 5 15,680 9,071 43,437 21,448 General and administrative 6,378 4,219 18,293 14,314 Depreciation, amortization and accretion 5,6,10 1,405 551 3,048 1,620 TOTAL OPERATING COSTS 23,463 13,841 64,778 37,382 LOSS FROM OPERATIONS ( 23,463 ) ( 13,841 ) ( 40,301 ) ( 37,345 ) OTHER INCOME (EXPENSES) Interest expense and finance costs ( 404 ) ( 205 ) ( 1,034 ) ( 620 ) Income (loss) from equity-accounted investments 8 ( 2,255 ) 3,306 ( 3,722 ) 4,958 Fair value gain (loss) on equity securities 9 ( 4,266 ) ( 13,804 ) ( 22,583 ) 23,585 Gain (loss) on revaluation of derivative liabilities 11 - 2,071 1,706 ( 9,892 ) Interest income 571 993 2,897 1,559 Other 39 ( 28 ) 101 16 OTHER INCOME (EXPENSES) ( 6,315 ) ( 7,667 ) ( 22,635 ) 19,606 LOSS BEFORE INCOME TAXES ( 29,778 ) ( 21,508 ) ( 62,936 ) ( 17,739 ) DEFERRED TAX RECOVERY (EXPENSE) ( 434 ) 1,831 2,332 3,633 NET LOSS FOR THE PERIOD ( 30,212 ) ( 19,677 ) ( 60,604 ) ( 14,106 ) OTHER COMPREHENSIVE INCOME (LOSS) Translation gain (loss) 10,416 ( 5,850 ) ( 81 ) ( 9,167 ) TOTAL OTHER COMPREHENSIVE INCOME (LOSS) 10,416 ( 5,850 ) ( 81 ) ( 9,167 ) TOTAL COMPREHENSIVE LOSS FOR THE PERIOD $ ( 19,796 ) $ ( 25,527 ) $ ( 60,685 ) $ ( 23,273 ) NET LOSS PER SHARE 15 Basic $ ( 0.07 ) $ ( 0.05 ) $ ( 0.14 ) $ ( 0.04 ) Diluted $ ( 0.07 ) $ ( 0.05 ) $ ( 0.14 ) $ ( 0.04 ) WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, Basic 429,941,797 404,104,490 421,670,287 393,425,716 Diluted 429,941,797 404,104,490 421,670,287 393,425,716 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 7 Table of Contents URANIUM ENERGY CORP. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited – Expressed in thousands of U.S. dollars) Nine Months Ended April 30, Notes 2025 2024 OPERATING ACTIVITIES Net loss for the period $ ( 60,604 ) $ ( 14,106 ) Adjustments to reconcile net loss to cash flows in operating activities Stock-based compensation 13 4,713 3,987 Depreciation, amortization and accretion 5,6,10 3,056 1,620 (Income) loss from equity-accounted investments 8 3,722 ( 4,958 ) (Gain) loss on disposition of assets ( 12 ) 33 (Gain) loss on revaluation of equity securities 9 22,583 ( 23,585 ) (Gain) loss on revaluation of derivative liabilities 11 ( 1,706 ) 9,892 Deferred tax recovery ( 2,332 ) ( 3,633 ) Changes in operating assets and liabilities Inventories 304 ( 57,179 ) Prepaid expenses and other receivables 139 ( 580 ) Accounts payable and accrued liabilities ( 10,761 ) ( 5,389 ) Other liabilities ( 102 ) 27 NET CASH USED IN OPERATING ACTIVITIES ( 41,000 ) ( 93,871 ) FINANCING ACTIVITIES Proceeds from share issuances, net of issuance costs 12 168,025 160,239 Payments for withholding of employee taxes related to options, RSUs and PRSUs ( 2,637 ) ( 947 ) NET CASH PROVIDED BY FINANCING ACTIVITIES 165,388 159,292 INVESTING ACTIVITIES Acquisition of Sweetwater Assets 3 ( 177,328 ) - Investment in mineral rights and properties ( 165 ) ( 1,391 ) Capital contribution to equity-accounted investment 8 ( 538 ) ( 2,388 ) Purchase of additional interest in equity-accounted investment 8 - ( 9,238 ) Investment in equity securities 9 ( 10,455 ) ( 12,115 ) Proceeds from sale of equity securities 9 54,372 3,008 Purchase of property, plant and equipment ( 4,505 ) ( 1,166 ) Proceeds from disposition of assets 49 8 NET CASH USED IN INVESTING ACTIVITIES ( 138,570 ) ( 23,282 ) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 14,182 ) 42,139 FOREIGN EXCHANGE DIFFERENCE ON CASH 2 ( 27 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD 94,784 52,865 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD 7 $ 80,604 $ 94,977 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 8 Table of Contents URANIUM ENERGY CORP. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY (Unaudited - Expressed in thousands of U.S. dollars, except share data ) Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Stockholders’ Equity Shares Amount Balance, July 31, 2024 410,355,768 $ 410 $ 1,110,433 $ ( 318,901 ) $ ( 13,829 ) $ 778,113 Common stock Issued under ATM offerings, net of issuance costs 7,595,626 8 61,223 - - 61,231 Issued upon exercise of stock options 121,037 - 120 - - 120 Issued upon exercise of warrants 1,054,997 1 4,618 - - 4,619 Stock-based compensation Common stock issued for consulting services 15,000 - 88 - - 88 Amortization of stock-based compensation - - 1,733 - - 1,733 Net loss for the period - - - ( 20,158 ) - ( 20,158 ) Other comprehensive loss - - - - ( 1,728 ) ( 1,728 ) Balance, October 31, 2024 419,142,428 $ 419 $ 1,178,215 $ ( 339,059 ) $ ( 15,557 ) $ 824,018 Common stock Issued under ATM offering, net of issuance costs 9,231,030 9 70,624 - - 70,633 Issued upon exercise of stock options 38,065 - 9 - - 9 Issued upon vesting of RSUs 742 - - - - - Stock-based compensation Amortization of stock-based compensation - - 1,556 - - 1,556 Net loss for the period - - - ( 10,234 ) - ( 10,234 ) Other comprehensive loss - - - - ( 8,769 ) ( 8,769 ) Balance, January 31, 2025 428,412,265 $ 428 $ 1,250,404 $ ( 349,293 ) $ ( 24,326 ) $ 877,213 Common stock Issued under ATM offering, net of issuance costs 6,578,235 7 34,027 - - 34,034 Issued upon exercise of stock options 15,428 - 5 - - 5 Issued upon vesting of RSUs 18,335 - - - - - Stock-based compensation - Common stock issued for consulting services 3,699 - 19 - - 19 Amortization of stock-based compensation - - 1,317 - - 1,317 Net loss for the period - - - ( 30,212 ) - ( 30,212 ) Other comprehensive income - - - - 10,416 10,416 Balance, April 30, 2025 435,027,962 $ 435 $ 1,285,772 $ ( 379,505 ) $ ( 13,910 ) $ 892,792 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 9 Table of Contents URANIUM ENERGY CORP. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY (Unaudited - Expressed in thousands of U.S. dollars, except share data ) Common Stock Additional Paid-in Capital Share Issuance Obligation Accumulated Deficit Accumulated Other Comprehensive Loss Stockholders’ Equity Shares Amount Balance, July 31, 2023 378,452,864 $ 378 $ 924,737 $ - $ ( 289,680 ) $ ( 3,608 ) $ 631,827 Common stock Issued under ATM offerings, net of issuance costs 10,770,000 11 56,259 - - - 56,270 Issued upon exercise of stock options 445,861 1 263 - - - 264 Stock-based compensation Amortization of stock-based compensation - - 1,572 - - - 1,572 Net income for the period - - - - 3,321 - 3,321 Other comprehensive loss - - - - - ( 11,049 ) ( 11,049 ) Balance, October 31, 2023 389,668,725 $ 390 $ 982,831 $ - $ ( 286,359 ) $ ( 14,657 ) $ 682,205 Common stock Issued under ATM offering, net of issuance costs 10,418,029 10 73,228 - - - 73,238 Issued upon exercise of stock options 669,999 1 ( 70 ) - - - ( 69 ) Issued upon exercise of warrants 302,220 - 1,965 517 - - 2,482 Stock-based compensation Amortization of stock-based compensation - - 1,312 - - - 1,312 Net income for the period - - - - 2,250 - 2,250 Other comprehensive income - - - - - 7,732 7,732 Balance, January 31, 2024 401,058,973 $ 401 $ 1,059,266 $ 517 $ ( 284,109 ) $ ( 6,925 ) $ 769,150 Common stock Issued under ATM offering, net of issuance costs 3,396,370 3 25,539 - - - 25,542 Issued upon exercise of stock options 345,077 1 209 - - - 210 Issued upon exercise of warrants 1,150,694 1 8,678 ( 517 ) - - 8,162 Stock-based compensation Amortization of stock-based compensation - - 1,103 - - - 1,103 Net loss for the period - - - - ( 19,677 ) - ( 19,677 ) Other comprehensive loss - - - - - ( 5,850 ) ( 5,850 ) Balance, April 30, 2024 405,951,114 $ 406 $ 1,094,795 $ - $ ( 303,786 ) $ ( 12,775 ) $ 778,640 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 10 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 1: NATURE OF OPERATIONS Uranium Energy Corp. was incorporated in the State of Nevada on May 16, 2003. Uranium Energy Corp. and its subsidiary companies and a controlled partnership (collectively, the “Company” or “we”) are engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates, on projects located in the United States, Canada and the Republic of Paraguay. As at April 30, 2025 , we had working capital (current assets less current liabilities) of $ 137.57 million including cash and cash equivalents of $ 71.40 million and purchased uranium inventories of $ 72.90 million. We believe our existing cash resources and cash flow from sale of uranium concentrates, and, if necessary, cash generated from the sale of the Company’s liquid assets, will provide sufficient funds to carry out our planned operations including uranium mining and our inventory purchase commitments for 12 months from the date that these unaudited interim 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 achieve consistent positive cash flow from the sale of our produced and purchased uranium inventories and 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, and this reliance is expected to continue for the foreseeable future. Our continued operations, including the recoverability of the carrying values of our assets, are dependent ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations. NOTE 2: SUMMARY OF SIGNIFICANT POLICIES Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and are presented in U.S. dollars. Accordingly, they do not include all of the information and footnotes required under U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10 -K for the year ended July 31, 2024 (“Fiscal 2024 ”). 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 nine months ended April 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2025 (“Fiscal 2025 ”). All amounts in the tables are expressed in thousands of U.S. dollars unless otherwise stated. Mineral Rights and Properties We have established the existence of mineralized materials for certain uranium projects, including our Palangana Mine and Christensen Ranch Mine (collectively, the “ISR Mines”), and our Red Desert, Green Mountain, Roughrider and Christie Lake Projects. We have not established proven or probable reserves, as defined by the United States Securities and Exchange Commission (“SEC”) subpart 1300 of Regulation S-K (“S-K 1300” ), through the completion of a “final” or “bankable” feasibility study for any of the uranium projects we operate, including our ISR Mines. Furthermore, we have no present plans to establish proven or probable reserves for any of our uranium projects for which we plan on utilizing in-situ recovery (“ISR”) mining, such as our ISR Mines. As a result, and despite the fact that we commenced extraction of mineralized materials at some of our ISR Mines, we remain an Exploration Stage issuer, as defined by the SEC, and will continue to remain as an Exploration Stage issuer until such time proven or probable reserves have been established. Since we commenced extraction of mineralized materials at our ISR Mines without having established proven or probable reserves, any mineralized materials established or extracted from our ISR Mines should not in any way be associated with having established or produced from proven or probable reserves. 11 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) In accordance with U.S. GAAP, expenditures relating to the acquisition of mineral rights are initially capitalized as incurred while exploration and pre-extraction expenditures are expensed as incurred until such time as we exit the Exploration Stage by establishing proven or probable reserves. Expenditures relating to exploration activities, such as drill programs to establish mineralized materials, are expensed as incurred. Expenditures relating to pre-extraction activities, such as the construction of mine wellfields and disposal wells, are expensed as incurred until such time that proven or probable reserves are established for that project, after which expenditures relating to mine development activities for that particular project are capitalized as incurred. Companies in the Production Stage, as defined by the SEC, having established proven and probable reserves and exited the Exploration Stage, typically capitalize expenditures relating to ongoing development activities, with corresponding depletion calculated over proven and probable reserves using the units-of-production method and allocated to future reporting periods to inventory and, as that inventory is sold, to cost of goods sold. We are in the Exploration Stage which has resulted in our Company reporting larger losses than if it would have been in the Production Stage due to the expensing, instead of the capitalization of expenditures relating to ongoing mine development activities. Additionally, there would be no corresponding depletion allocated to future reporting periods of our Company since those costs had 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 would have been in the Production Stage. Any capitalized costs, such as acquisition costs of mineral rights, are depleted over the estimated extraction life using the straight-line method. As a result, our consolidated financial statements may not be directly comparable to the financial statements of companies in the Production Stage. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023 - 07, Segment Reporting (Topic 280 ): Improvements to Reportable Segment Disclosures. This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under this ASU are also required for public entities with a single reportable segment. This ASU is effective for the Company’s Annual Report on Form 10 -K for the fiscal year ending July 31, 2025, and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures. This ASU expands public entities’ income tax disclosures by requiring disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU will be effective for fiscal years beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. In November 2024, the FASB issued ASU 2024 - 03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220 - 40 ): Disaggregation of Income Statement Expenses. This ASU requires public entities to disclose specified information about certain costs and expenses at each interim and annual reporting period, which includes amounts for inventory purchases, employee compensation, depreciation, intangible asset amortization, and expenses related to oil and gas activities. This ASU will be effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. 12 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) Note 3 : ACQUSITION OF THE SWEETWATER ASSETS On December 6, 2024, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of (i) Sweetwater Uranium Inc. (formerly Kennecott Uranium Company (“KUC”)) and (ii) Wyoming Coal Resources Company (“WCRC”) (collectively, the “Sweetwater Acquisition”) from Rio Tinto America Inc. KUC and WCRC collectively own or hold the following assets: (i) a fully-licensed conventional uranium processing mill, including buildings and equipment, located in Sweetwater County, Wyoming (the “Sweetwater Plant”); (ii) the Red Desert Project, an uranium project adjacent to the Sweetwater Plant; and (iii) the Green Mountain Project, an uranium project located 22 miles north of the Sweetwater Plant. The Sweetwater Acquisition is accounted for as an acquisition of assets rather than a business as both KUC and WCRC do not meet the definition of a business in accordance with ASC 805 Business Combinations. The following table summarizes the fair value of the consideration paid, and the fair value of the assets acquired and liabilities assumed, on the closing date of the Sweetwater Acquisition: Consideration paid Cash $ 175,399 Acquisition related costs 4,199 Total consideration $ 179,598 Assets acquired and liabilities assumed Prepaid expenses $ 399 Property, plant and equipment 44,493 Mineral rights and properties 145,749 Total assets 190,641 Asset retirement obligations (Note 10) 10,392 Deferred tax liabilities 651 Total liabilities 11,043 Total net assets $ 179,598 The Company recognized the assets and liabilities acquired in this acquisition by allocating the cost of the acquisition to the assets and liabilities based on their relative fair values. The fair value of the mineral rights and properties was based on a value per pound of uranium which was determined using an in situ multiples analysis. Management used data from comparable public companies and precedent transactions in the in situ multiples analysis to estimate a value per pound of uranium and apply that to the property resource estimates, taking into account project-specific characteristics. The fair value of asset retirement obligations was measured based on the expected costs and timing for final well closure, plant and equipment decommissioning and removal, and environmental remediation, which are discounted to present value using credit adjusted risk-free rates. Cash flow on acquisition: Cash paid $ 175,399 Acquisition related costs 1,929 Acquisition of Sweetwater assets $ 177,328 13 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 4: INVENTORIES As at April 30, 2025 , we held 1,356,000 ( July 31, 2024 : 1,466,000 ) pounds of purchased uranium concentrate inventory. Costs of inventories consist of the following: April 30, 2025 July 31, 2024 Material and supplies $ 384 $ 215 In-process inventory 2,897 - Uranium concentrates from extraction 178 178 Purchased uranium inventories 72,899 75,440 $ 76,358 $ 75,833 As of April 30, 2025 , our uranium inventory purchase commitments for the next five fiscal years are as follows: Purchase Commitments in Pounds Purchase Price Fiscal 2026 300,000 $ 11,114 Total 300,000 $ 11,114 14 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 5: MINERAL RIGHTS AND PROPERTIES Mineral Rights As at April 30, 2025 , we own mineral rights in the States of Arizona, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay. These mineral rights were acquired through staking, purchase or lease or option agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium. As at April 30, 2025 , the carrying value of our mineral rights and properties were as follows: Costs United States Canada Paraguay Total Balance, July 31, 2024 $ 172,540 $ 376,523 $ 15,014 $ 564,077 Sweetwater Acquisition 145,749 - - 145,749 Additions 165 1 - 166 Asset retirement obligations (Note 10) 7,688 - - 7,688 Impact of foreign currency translation - ( 42 ) - ( 42 ) Balance, April 30, 2025 326,142 376,482 15,014 717,638 Accumulated Depletion and Amortization United States Canada Paraguay Total Balance, July 31, 2024 ( 6,389 ) ( 105 ) - ( 6,494 ) Additions ( 804 ) - - ( 804 ) Balance, April 30, 2025 ( 7,193 ) ( 105 ) - ( 7,298 ) Carrying Value Balance, July 31, 2024 $ 166,151 $ 376,418 $ 15,014 $ 557,583 Balance, April 30, 2025 $ 318,949 $ 376,377 $ 15,014 $ 710,340 Mineral property expenditures recorded during the period are as follows: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Permitting and compliance $ 253 $ 394 $ 855 $ 1,733 Property maintenance 1,246 1,073 3,738 3,020 Exploration 3,079 4,668 8,919 9,985 Development 6,493 1,769 18,759 3,414 Extraction readiness 4,609 1,167 11,166 3,296 Total $ 15,680 $ 9,071 $ 43,437 $ 21,448 15 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 6: PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: April 30, 2025 July 31, 2024 Cost Accumulated Net Book Cost Accumulated Net Book Depreciation Value Depreciation Value Plant and Processing Facilities $ 61,470 $ ( 3,853 ) $ 57,617 $ 19,346 $ ( 2,708 ) $ 16,638 Mining Equipment 6,745 ( 2,877 ) 3,868 3,740 ( 2,523 ) 1,217 Logging Equipment and Vehicles 5,161 ( 2,595 ) 2,566 3,452 ( 2,222 ) 1,230 Computer Equipment 303 ( 296 ) 7 300 ( 287 ) 13 Furniture and Fixtures 243 ( 201 ) 42 243 ( 190 ) 53 Buildings 2,086 ( 153 ) 1,933 337 ( 103 ) 234 Land 1,514 - 1,514 1,080 - 1,080 $ 77,522 $ ( 9,975 ) $ 67,547 $ 28,498 $ ( 8,033 ) $ 20,465 NOTE 7: 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 plants, processing facilities and various projects. Restricted cash will be released upon completion of reclamation of a mineral property or restructuring of a surety and collateral arrangement. Cash, cash equivalents and restricted cash are included in the following accounts: April 30, 2025 July 31, 2024 Cash and cash equivalents $ 71,397 $ 87,533 Restricted cash 9,207 7,251 Total cash, cash equivalents and restricted cash $ 80,604 $ 94,784 During the nine months ended April 30, 2025 , we paid $ 1.96 million of surety bond collateral related to the Sweetwater Acquisition. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and restricted cash. These assets include Canadian dollar and U.S. dollar denominated certificates of deposit, money market accounts and demand deposits. These instruments are maintained at financial institutions in Canada and the U.S. The maximum credit risk of these assets is the carrying amount less the amount covered by the Canada Deposit Insurance Corporation, the Securities Investor Protection Corporation or the U.S. Federal Deposit Insurance Corporation, should the financial institutions with which these amounts are invested be rendered insolvent. As of April 30, 2025 , approximately $ 59.50 million of our cash and cash equivalents are held in a single financial institution at one of the largest banks in Canada and subject to concentration risk. The Company does not consider any of its financial assets to be impaired as of April 30, 2025 . 16 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 8: EQUITY-ACCOUNTED INVESTMENTS As at April 30, 2025 , we owned 17,978,364 shares of Uranium Royalty Corp. (“URC”), representing a 13.5 % ( July 31, 2024 : 14.8 %) interest in URC. In addition, two of our executive officers are members of URC’s board of directors. Furthermore, one of these executive officers also holds an executive position within URC. 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, 2025 . Should URC’s outstanding options be fully exercised, the Company’s ownership interest would decrease from 13.5 % to 13.3 %. URC is a public company listed on the Toronto Stock Exchange with the trading symbol “URC” and on NASDAQ with the trading symbol “UROY”. As at April 30, 2025 , the fair value of our investment in URC was approximately $ 32.54 million ( July 31, 2024 : $ 43.33 million). As at April 30, 2025 , we owned 50 % of the outstanding shares of JCU (Canada) Exploration Company Limited (“JCU”) acquired through our acquisition of UEX Corporation completed on August 19, 2022 ( the “UEX Acquisition”). JCU is a private Canadian company engaged in the exploration and development of uranium assets in Canada. The Company’s 50 % interest in JCU is a joint venture, which is accounted for using the equity method. During the nine months ended April 30, 2025 , the changes in carrying value of our equity-accounted investments are summarized as follows: Investment in URC JCU Total Balance, July 31, 2024 $ 34,978 $ 23,831 $ 58,809 Capital contribution - 538 538 Share of loss ( 452 ) ( 3,298 ) ( 3,750 ) Gain on dilution of ownership interest 28 - 28 Foreign exchange difference ( 3 ) ( 56 ) ( 59 ) Balance, April 30, 2025 $ 34,551 $ 21,015 $ 55,566 For the three and nine months ended April 30, 2025 and 2024 , income (loss) from our equity-accounted investments consisted of the following: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Share of income (loss) $ ( 2,256 ) $ 104 $ ( 3,750 ) $ 1,325 Gain on dilution of ownership interest 1 3,202 28 3,633 Total $ ( 2,255 ) $ 3,306 $ ( 3,722 ) $ 4,958 17 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 9: INVESTMENTS IN EQUITY SECURITIES During the nine months ended April 30, 2025 , the changes in our investments in equity securities are summarized as follows: Balance, July 31, 2024 $ 75,264 Sale of investment in publicly listed companies ( 54,372 ) Investment in public listed companies 10,455 Fair value loss on equity securities ( 22,583 ) Foreign exchange difference ( 1 ) Balance, April 30, 2025 $ 8,763 On January 15, 2025, we completed the acquisition of 107,142,857 common shares (the “Anfield Shares”) of Anfield Energy Inc. (“Anfield”) for total consideration of $ 10.46 million pursuant to a subscription agreement between the Company and Anfield. As at April 30, 2025 , the Company owns 17.63 % of the outstanding shares of Anfield. During the three months ended April 30, 2025, the Company entered into an indemnification support agreement with Anfield. Under this agreement the Company provides an indemnity of $ 3 million in favour of Anfield for its surety bond and, in return, obtains the right to nominate members to Anfield board of directors in proportion to the Company’s ownership of outstanding Anfield Shares. The Company’s ability to appoint directors to Anfield’s board results in the investment in Anfield Shares being subject to equity method of accounting. However, as permitted under ASC 825 Financial Instruments, the Company elected to apply the fair value option to account for its investment in Anfield Shares. All subsequent changes in fair value of Anfield Shares are recognized in the consolidated statements of operations. The indemnity may be canceled by the Company upon delivery of 30 days’ written notice. The cumulative revaluation adjustment since acquisition of the equity securities held as at April 30, 2025 is a loss of $ 12.79 million. NOTE 10: ASSET RETIREMENT OBLIGATIONS Asset retirement obligations (“ARO”s) relate to future remediation and decommissioning activities for our plants, processing facilities and various projects, and are summarized as follows: Balance, July 31, 2024 $ 19,625 Assumed from Sweetwater Acquisition (Note 3) 10,392 Addition 7,688 Accretion 1,127 Liabilities settled in cash ( 108 ) Balance, April 30, 2025 38,724 Asset retirement obligations, current ( 2,845 ) Asset retirement obligations, non-current $ 35,879 The estimated timing of cash flows and assumptions used for our ARO estimates are as follows: April 30, 2025 July 31, 2024 Payable in years 1 to 37 1 to 23 Inflation rate 1.56 % to 5.32 % 1.56 % to 5.32 % Discount rate 3.72 % to 6.35 % 3.72 % to 6.35 % 18 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 11: DERIVATIVE LIABILITIES On August 19, 2022, the Company issued replacement warrants (each, a “Replacement Warrant”) in connection with the UEX Acquisition. The Replacement Warrants are accounted for as derivative liabilities as the exercise prices of the Replacement Warrants are denominated in Canadian dollars which differs from our functional currency. As at April 30, 2025 , there were no Replacement Warrants outstanding. The movement in derivative liabilities during the period is as follows: Balance, July 31, 2024 $ 3,030 Exercise of Replacement Warrants ( 1,324 ) Change in fair value during the period ( 1,706 ) Balance, April 30, 2025 $ - NOTE 12: CAPITAL STOCK Equity Financing On November 16, 2022, we filed a Form S- 3 automatic shelf registration statement under the United States Securities Act of 1933, as amended (the “Securities Act”), which became effective upon filing, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of an undetermined dollar value of common stock, debt securities, warrants to purchase common stock or debt securities, subscription receipts for units which include common stock, debt securities, warrants or any combination thereof (the “2022 Shelf”), which included an at-the-market offering agreement prospectus (the “2022 ATM Offering”) covering the offering, issuance and sale of up to a maximum offering of $ 300 million under the 2022 Shelf. On November 16, 2022, we also entered into an at-the-market offering agreement (the “2022 ATM Offering Agreement”) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, the “2022 ATM Managers”) as set forth in the 2022 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 $ 300 million through the ATM Managers selected by us. On December 20, 2024, we filed a prospectus supplement to our 2022 Shelf (the “2024 ATM Offering”) under which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $ 300 million pursuant to an at-the-market offering agreement (the “2024 ATM Offering Agreement”) we have with Goldman Sachs & Co. LLC and certain co-managers (collectively, the “2024 ATM Managers”). Under the 2024 ATM Offering Agreement, we may, from time to time, sell shares of our common stock through the 2024 ATM Managers selected by us. 19 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) During the nine months ended April 30, 2024 , we issued 24,584,399 of the Company’s common stock under the 2022 ATM Offering for gross cash proceeds of $ 158.62 million. The total issuance costs were $ 3.57 million, all of which were related to compensation paid to the 2022 ATM Managers. During the nine months ended April 30, 2025 , we issued 11,516,375 and 11,888,516 of the Company’s common stock under the 2022 ATM Offering and the 2024 ATM Offering for gross cash proceeds of $ 94.40 million and $ 75.34 million, respectively. The total issuance costs were $ 2.15 million and $ 1.69 million, all of which were related to compensation paid to the 2022 ATM Managers and the 2024 ATM Managers, respectively. Subsequent to April 30, 2025 , we issued 9,306,188 of the Company’s common stock under the 2024 ATM Offering for gross cash proceeds of $ 56.08 million. The total issuance costs were $ 1.26 million, all of which were related to compensation paid to the 2024 ATM Managers. Share Purchase Warrants A continuity schedule of our outstanding share purchase warrants for the nine months ended April 30, 2025 , is as follows: Number of Weighted Average Warrants Exercise Price Balance, July 31, 2024 1,265,319 $ 3.29 Exercised ( 1,065,899 ) 3.21 Expired ( 40,329 ) 2.35 Balance, April 30, 2025 159,091 $ 4.13 A summary of our share purchase warrants outstanding and exercisable as of April 30, 2025 , is as follows: Number of Weighted Average Remaining Weighted Average Warrants Contractual Exercise Price Outstanding Life (Years) Expiry Date 4.13 159,091 0.93 April 5, 2026 During the nine months ended April 30, 2025 , we received cash proceeds totaling $ 3.30 million from the exercise of share purchase warrants. During the nine months ended April 30, 2024, we received cash proceeds totaling $ 4.51 million from the exercise of share purchase warrants. 20 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 13: STOCK-BASED COMPENSATION Stock Options A continuity schedule of our outstanding stock options for the three and nine months ended April 30, 2025 , is as follows: Number of Stock Weighted Average Options Exercise Price Balance, July 31, 2024 5,103,339 $ 2.66 Granted 24,415 6.21 Exercised ( 173,375 ) 2.85 Cancelled/Forfeited ( 12,062 ) 4.32 Balance, October 31, 2024 4,942,317 $ 2.67 Granted 1,289 8.28 Exercised ( 63,852 ) 3.34 Cancelled/Forfeited ( 22,524 ) 4.37 Balance, January 31, 2025 4,857,230 $ 2.66 Granted 10,000 4.22 Exercised ( 29,750 ) 3.50 Cancelled/Forfeited ( 17,988 ) 4.73 Balance, April 30, 2025 4,819,492 $ 2.65 The table below sets forth the number of shares issued and cash received upon the exercise of our stock options: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Number of Options Exercised on a Cash Basis 1,250 202,437 49,963 492,112 Number of Options Exercised on a Non-Cash Basis 28,500 203,974 217,014 1,400,984 Total Number of Options Exercised 29,750 406,411 266,977 1,893,096 Number of Shares Issued on a Cash Basis 1,250 202,437 49,963 492,112 Number of Shares Issued on a Non-Cash Basis 14,178 142,640 124,567 968,825 Total Number of Shares Issued Upon Exercise of Options 15,428 345,077 174,530 1,460,937 Cash Received from Exercise of Stock Options $ 5 $ 281 $ 134 $ 681 Total Intrinsic Value of Options Exercised $ 101 $ 2,431 $ 1,211 $ 9,022 21 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) A continuity schedule of our outstanding unvested stock options as of April 30, 2025 , and the changes during the period, is as follows: Number of Unvested Stock Options Weighted Average Grant-Date Fair Value Balance, July 31, 2024 1,086,988 $ 2.83 Granted 24,415 4.09 Cancelled/Forfeited ( 12,062 ) 2.85 Vested ( 87,325 ) 3.19 Balance, October 31, 2024 1,012,016 $ 2.83 Granted 1,289 5.53 Cancelled/Forfeited ( 22,449 ) 2.89 Vested ( 280,059 ) 2.50 Balance, January 31, 2025 710,797 $ 2.97 Granted 10,000 2.67 Cancelled/Forfeited ( 15,125 ) 3.20 Vested ( 42,462 ) 2.89 Balance, April 30, 2025 663,210 $ 2.96 During the nine months ended April 30, 2025 , we gran ted a stock option under our 2024 Stock Incentive Plan (the “Stock Incentive Plan”) to one of our officers to purchase an aggregate of 24,415 shares of the Company which are subject to a 24 -month vesting provision whereby, at the end of each of the first three and six months after the grant date, 12.5 % of the total stock options become exercisable, and whereby at the end of each of 12, 18 and 24 months after the grant date, 25 % of the total stock options become exercisable. For the nine months ended April 30, 2025 , the weighted av erage fair value of the stock options granted was $ 3.75 per share and it was estimated at the date of grant using the Black-Scholes model with the following assumptions, which is level 2 of the fair value measurement hierarchy: Exercise Price $ 5.73 Expected Risk Free Interest Rate 3.59 % Expected Volatility 78.28 % Expected Life in Years 5 Expected Dividend Yield 0.00 % As at April 30, 2025 , the aggregate intrinsic value of all of our outstanding stock options was estimated at $ 12.75 million (vested: $ 12.20 million and unvested: $ 0.55 million). As at April 30, 2025 , our unrecognized compensation cost related to unvested stock options was $ 0.69 million ( July 31, 2024 : $ 2.18 million), which is expected to be recognized over 0.84 years. 22 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) A summary of our stock options outstanding and exercisable as of April 30, 2025 , is as follows: Options Outstanding Options Exercisable Weighted Weighted Average Average Range of Weighted Remaining Weighted Remaining Exercise Outstanding at Average Contractual Exercisable at Average Contractual Prices April 30, 2025 Exercise Price Term (Years) April 30, 2025 Exercise Price Term (Years) $0.91 to $0.99 1,392,750 $ 0.92 5.02 1,392,750 $ 0.92 5.02 $1.00 to $1.99 475,000 1.10 5.21 475,000 1.10 5.21 $2.00 to $2.99 522,149 2.26 6.18 522,149 2.26 6.18 $3.00 to $3.99 1,943,929 3.62 7.42 1,627,102 3.64 7.25 $4.00 to $4.99 15,000 4.39 9.41 3,750 4.72 8.35 $5.00 to $5.99 394,817 5.48 9.21 104,355 5.46 9.16 $6.00 to $6.99 64,558 6.51 9.09 26,176 6.58 9.01 $7.00 to $7.99 10,000 7.63 8.73 5,000 7.63 8.73 $8.00 to $8.28 1,289 8.28 9.55 - 8.28 9.55 4,819,492 $ 2.65 6.55 4,156,282 $ 2.33 6.20 Restricted Stock Units During the nine months ended April 30, 2025 , the Company g ran ted 16,103 restricted stock units (each, an “RSU”) to one of our officers under our Stock Incentive Plan. RSUs granted during the period have a vesting period of three years from the grant date, whereby one - third of the RSUs will vest at the end of the first, second and third year, respectively, from the date of grant. The fair value of these RSUs was determined using the share prices at the respective grant dates. A summary of our outstanding and unvested RSUs as of April 30, 2025 , is as follows: Number of Restricted Stock Grant Date Remaining Life Aggregate Grant Date Units Fair Value (Years) Intrinsic Value May 1, 2022 19,608 $ 4.25 0.09 $ 103 July 29, 2022 92,015 3.98 0.33 483 July 31, 2023 413,593 3.32 1.34 2,171 January 2, 2024 778 6.44 1.76 4 April 1, 2024 13,334 7.07 2.00 70 July 26, 2024 610,091 5.49 2.32 3,203 September 1, 2024 709 5.23 0.42 4 October 1, 2024 16,103 6.21 2.50 85 November 5, 2024 2,230 7.12 1.60 12 November 5, 2024 14,344 7.12 2.60 75 November 18, 2024 323 8.28 0.64 2 January 6, 2025 5,874 7.06 2.77 31 January 27, 2025 2,122 7.07 2.83 11 1,191,124 $ 4.66 1.79 $ 6,254 23 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) During the three and nine months ended April 30, 2025 , our stock-based compensation related to RSUs was $ 0.74 million and $ 2.27 million ( three and nine months ended April 30, 2024 : $ 0.45 million and 1.33 million), respectively. As at April 30, 2025 , our unrecognized compensation costs related to unvested RSUs totaled $ 2.43 million ( July 31, 2024 : $ 4.42 million), which is expected to be recognized over a period of approximately 1.46 years. Performance Based Restricted Stock Units During the three and nine months ended April 30, 2025 , our stock-based compensation related to the amortization of performance based restricted stock units (each, a “PRSU”) totaled $ 0.29 million and $ 0.86 million ( three and nine months ended April 30, 2024 : $ 0.18 million and $ 0.53 million), respectively. As at April 30, 2025 , our unrecognized compensation costs related to unvested PRSUs totaled $ 1.88 million ( July 31, 2024 : $ 2.74 million), which is expected to be recognized over a period of approximately 1.90 years. Stock-Based Compensation A summary of our stock-based compensation expense for the three and nine months ended April 30, 2025 , is as follows: Three Months Ended Nine Months Ended April 30, April 30, 2025 2024 2025 2024 Stock-Based Compensation for Consultants Common stock issued to consultants $ 18 $ - $ 106 $ - Amortization of stock option expenses 24 87 121 302 Amortization of RSU expenses 1 - 33 - 43 87 260 302 Stock-Based Compensation for Management Amortization of stock option expenses 115 120 494 488 Amortization of RSU and PRSU expenses 957 585 2,902 1,774 1,072 705 3,396 2,262 Stock-Based Compensation for Employees Amortization of stock option expenses 151 285 858 1,362 Amortization of RSU expenses 72 26 199 61 223 311 1,057 1,423 $ 1,338 $ 1,103 $ 4,713 $ 3,987 24 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 14: SALES AND SERVICE REVENUE AND COST OF SALES AND SERVICES The table below provides a breakdown of our sales and service revenue and cost of sales and service revenue: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Sales of purchased uranium inventory $ - $ - $ 66,837 $ - Revenue from toll processing services - - - 224 Total sales and service revenue $ - $ - $ 66,837 $ 224 Cost of purchased uranium inventory $ - $ - $ ( 42,360 ) $ - Cost of toll processing services - - - ( 187 ) Total cost of sales and services $ - $ - $ ( 42,360 ) $ ( 187 ) The table below provides a breakdown of major customers: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Customer A 0 % 0 % 50 % 0 % Customer B 0 % 0 % 24 % 0 % Customer C 0 % 0 % 14 % 0 % Customer D 0 % 0 % 12 % 0 % Customer E 0 % 0 % 0 % 100 % 0 % 0 % 100 % 100 % NOTE 15: INCOME (LOSS) PER SHARE The following table reconciles the weighted average number of shares used in the calculation of our basic and diluted loss per share: Three Months Ended April 30, Nine Months Ended April 30, Numerator 2025 2024 2025 2024 Net Loss for the Period $ ( 30,212 ) $ ( 19,677 ) $ ( 60,604 ) $ ( 14,106 ) Denominator Basic Weighted Average Number of Shares 429,941,797 404,104,490 421,670,287 393,425,716 Dilutive Effect of Stock Awards and Warrants - - - - Diluted Weighted Average Number of Shares 429,941,797 404,104,490 421,670,287 393,425,716 Net Loss Per Share – Basic $ ( 0.07 ) $ ( 0.05 ) $ ( 0.14 ) $ ( 0.04 ) Net Loss Per Share – Diluted $ ( 0.07 ) $ ( 0.05 ) $ ( 0.14 ) $ ( 0.04 ) 25 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) NOTE 16: SEGMENTED INFORMATION We currently operate in four reportable segments, three of which are focused on uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates, plus a corporate and administrative segment. Segment results for the prior periods have been updated to reflect the change in reportable segments. The tables below provide financial information relating to the Company’s segments. All intercompany transactions have been eliminated.: Three Months Ended April 30, 2025 Sales and service revenue Depreciation, amortization and accretion Loss from equity-accounted investment Interest income Loss before income taxes Total expenditures for additions to long-lived assets Mining Wyoming $ - $ 1,098 $ - $ - $ ( 12,644 ) $ 190 Texas - 264 - - ( 4,314 ) 1,962 Saskatchewan - 38 - - ( 4,460 ) - Others - 2 - - ( 104 ) - Corporate and administrative - 3 ( 2,255 ) 571 ( 8,256 ) - Consolidated $ - $ 1,405 $ ( 2,255 ) $ 571 $ ( 29,778 ) $ 2,152 Three Months Ended April 30, 2024 Sales and service revenue Depreciation, amortization and accretion Income from equity-accounted investment Interest income Loss before income taxes Total expenditures for additions to long-lived assets Mining Wyoming $ - $ 400 $ - $ - $ ( 4,311 ) $ - Texas - 120 - - ( 3,137 ) 158 Saskatchewan - 26 - - ( 3,615 ) 102 Others - 1 - - ( 185 ) - Corporate and administrative - 4 3,306 993 ( 10,260 ) - Consolidated $ - $ 551 $ 3,306 $ 993 $ ( 21,508 ) $ 260 26 Table of Contents URANIUM ENERGY CORP. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 30, 2025 (Unaudited - Expressed in thousands of U.S. dollars unless otherwise stated) Nine Months Ended April 30, 2025 Sales and service revenue Depreciation, amortization and accretion Loss from equity-accounted investment Interest income Loss before income taxes Total expenditures for additions to long-lived assets Mining Wyoming $ - $ 2,386 $ - $ - $ ( 30,282 ) $ 191,523 Texas - 536 - - ( 13,205 ) 3,140 Saskatchewan - 113 - - ( 10,408 ) 273 Others - 6 - - ( 954 ) 52 Corporate and administrative 66,837 7 ( 3,722 ) 2,897 ( 8,087 ) - Consolidated $ 66,837 $ 3,048 $ ( 3,722 ) $ 2,897 $ ( 62,936 ) $ 194,988 Nine Months Ended April 30, 2024 Sales and service revenue Depreciation, amortization and accretion Income from equity-accounted investment Interest income Income (loss) before income taxes Total expenditures for additions to long-lived assets Mining Wyoming $ 224 $ 1,177 $ - $ - $ ( 9,706 ) $ 242 Texas - 376 - - ( 8,314 ) 186 Saskatchewan - 55 - - ( 9,301 ) 2,088 Others - 3 - - ( 671 ) 69 Corporate and administrative - 9 4,958 1,559 10,253 3 Consolidated $ 224 $ 1,620 $ 4,958 $ 1,559 $ ( 17,739 ) $ 2,588 As of April 30, 2025 Total assets Equity-Accounted Investments Long-lived assets other than financial instruments Mining Wyoming $ 365,453 $ - $ 352,824 Texas 33,739 - 30,533 Saskatchewan 379,045 - 377,653 Others 20,800 - 20,445 Corporate and administrative 208,773 55,566 156 Consolidated $ 1,007,810 $ 55,566 $ 781,611 As of July 31, 2024 Total assets Equity-Accounted Investments Long-lived assets other than financial instruments Mining Wyoming $ 169,740 $ - $ 162,816 Texas 23,776 - 21,028 Saskatchewan 378,368 - 377,550 Others 20,789 - 20,397 Corporate and administrative 297,155 58,809 200 Consolidated $ 889,828 $ 58,809 $ 581,991 27 Table of Contents Item 2. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations (Expressed in thousands of U.S. dollars, except per share and per pound amounts) 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 nine months ended April 30, 2025, and our Form 10-K Annual Report for Fiscal 2024, 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 Fiscal 2024, and Item 1A, Risk Factors, under Part II - Other Information, of this Quarterly Report. Introduction This MD&A is focused on material changes in our financial condition from July 31, 2024, our most recently completed year end, to April 30, 2025, and our results of operations for the three and nine months ended April 30, 2025, 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 2024. Business We are 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, as more fully described in our Form 10-K Annual Report for Fiscal 2024. In August 2024, we restarted uranium extraction at our fully permitted, and past producing, Christensen Ranch Mine ISR operation in Wyoming. We expect the ramp-up phase will continue while new production areas are being constructed and completed in 2025. At the same time, we have continued to advance our Roughrider and Burke Hollow Projects with resource expansions and development programs, respectively. Uranium recovered from the Christensen Ranch Mine ISR operation will be processed at our Irigaray central processing plant (“CPP”). The Irigaray CPP is the hub central to our four fully permitted ISR projects located in the Powder River Basin of Wyoming, including our Christensen Ranch Mine, Reno Creek, Moore Ranch and Ludeman p rojects. On October 16, 2024, we received approval from the Wyoming Department of Environmental Quality, Uranium Recovery Program, to increase the licensed production capacity at the Irigaray CPP to 4.0 million pounds of U 3 O 8 annually. In Texas, 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. We utilize a “hub-and-spoke” strategy whereby the Hobson Processing Facility, which has a physical capacity to process uranium-loaded resins of up to a total of two million pounds of U 3 O 8 annually and is licensed to process up to four million pounds of U 3 O 8 annually, 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”). On November 7, 2024, we filed an initial assessment technical report summary that includes an economic analysis and mineral resource estimate for our Roughrider Project, located in Northern Saskatchewan, Canada. The economic analysis is included in a technical report summary titled “S-K 1300 Initial Assessment Report – Roughrider Uranium Project, Saskatchewan, Canada”, issued on November 5, 2024 and prepared for the Company by Tetra Tech Canada Inc., Understood Mineral Resources Ltd., Snowden Optiro, Terracon Geotechnique Ltd. and Clifton Engineering Group Inc., in accordance with Item 1302 of S-K 1300. 28 Table of Contents On December 6, 2024, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of (i) Kennecott Uranium Company (again KUC) and (ii) Wyoming Coal Resources Company (again WCRC) from Rio Tinto America Inc. (collectively, again, the Sweetwater Acquisition). KUC and WCRC collectively own or hold the following major assets: (i) the facilities, equipment, improvements and fixtures for the processing of uranium located in Sweetwater County, Wyoming, and related facilities and impoundments (again, the Sweetwater Plant); (ii) the Red Desert Project, a uranium project adjacent to the Sweetwater Plant; and (iii) the Green Mountain Project, a uranium project located 22 miles north of the Sweetwater Plant, with two deposits that have potential for ISR mining and three deposits that are considered appropriate for conventional mining. The consideration for the Sweetwater Acquisition was $175.4 million in cash plus acquisition related costs of $4.2 million. On January 15, 2025, we completed the acquisition of 107,142,857 common shares (again, the Anfield Shares) of Anfield Energy Inc. (again Anfield) (TSX-V: AEC) for total consideration of $10.46 million ($15 million Canadian dollars) pursuant to a subscription agreement between the Company and Anfield, whereby the Company subscribed for the Anfield Shares at a price of $0.14 per share (Canadian dollars). Immediately after the acquisition, the Company had beneficial ownership, and control and direction over, a total of 203,415,775 Anfield Shares, representing approximately 17.8% of the outstanding Anfield Shares on a non-diluted basis and approximately 24.2% of the outstanding Anfield Shares on a diluted basis after assuming the exercise of all warrants held by the Company. The Anfield Shares were acquired by the Company for investment purposes. During the three months ended April 30, 2025, the Company entered into an indemnification support agreement with Anfield, whereby the Company provides an indemnity of $3 million in favour of Anfield for its surety bond and, in return, obtains the right to nominate members to Anfield’s board of directors in proportion to the Company’s ownership of outstanding Anfield Shares. The indemnity can be canceled by the Company upon the delivery of 30 day’s written notice. We will continue to monitor the business, prospects, financial condition and potential capital requirements of Anfield. We also hold certain mineral rights in various stages in the States of Arizona, New Mexico, Texas and Wyoming, and in Canada and in the Republic of Paraguay, many of which are located in historically successful mining areas and have been the subject of past exploration and pre-extraction activities by other mining companies. Our operating and strategic framework is to become a leading low-cost North American focused uranium supplier 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. Key Issues With the completion of the acquisition of Uranium One Americas, Inc. in December 2021, together with the completion of the Sweetwater Acquisition in December 2024, we expanded our footprints in Wyoming with our Wyoming hub-and-spoke operations. The acquisition of UEX Corporation in August 2022 and the acquisition of Roughrider Mineral Holdings Inc. in October 2022 further expanded our footprints in Canada and, in particular, the Athabasca Basin in Saskatchewan. We continue to establish additional uranium mines through exploration and pre-extraction activities and direct acquisitions in both the U.S. and Paraguay, all of which require us to manage numerous challenges, risks and uncertainties inherent in our business and operations as more fully described in Item 1A. Risk Factors herein. Our operations are capital intensive, and we will require significant additional financing to continue with our exploration, pre-extraction and extraction activities and acquire additional uranium projects. Historically, we have been reliant primarily on equity financings from the sale of our common stock to fund our operations. We have also relied on cash flows generated from the sales of our purchased uranium inventories under our physical uranium program to fund our operations. However, we have yet to achieve consistent profitability or develop consistent positive cash flow from operations. Our reliance on equity financings is expected to continue for the foreseeable future. The availability of such additional financing, when required, will be dependent on many factors beyond our control including, but not limited to, the market price of uranium, the continuing public support of nuclear power as a viable source of electricity generation, the volatility in the global financial markets affecting our stock price and the status of the worldwide economy, any one of which may cause significant challenges in our ability to access additional financing, including access to the equity and credit markets. We may also be required to seek other forms of financing, such as asset divestitures or additional joint venture arrangements, to continue advancing our uranium projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project. However, there is no assurance that we will be successful in securing any form of additional financing when required and on terms favorable to us. Our inability to obtain additional financing would have a negative impact on our operations, including delays, curtailment or abandonment of any one or all of our uranium projects. 29 Table of Contents We have not established proven or probable reserves through the completion of a final or bankable feasibility study for any of the mineral projects we operate. We have established the existence of mineralized materials for certain uranium projects, including our ISR Mines. Since we commenced uranium extraction at our ISR Mines 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. The economic viability of our mining activities, including the expected duration and profitability of our ISR Mines, of any future satellite ISR mines, such as our Burke Hollow, Goliad, Ludeman, Antelope and Charlie Projects, and of our traditional uranium mines in the Athabasca Basin in Saskatchewan, Canada, has many risks and uncertainties. These include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct a mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. Our mining activities may change as a result of any one or more of these risks and uncertainties and there is no assurance that any ore body that we extract mineralized materials from will result in achieving and maintaining profitability and developing positive cash flow. As at April 30, 2025, we had no uranium supply or off-take agreements in place. Future sales of U 3 O 8 are therefore expected to generally occur through the uranium spot market, with any fluctuations in the market price continuing to have a direct impact on our revenues and cash flows. Physical Uranium Program The Company is investing in building the next generation of low-cost uranium projects that will be competitive on a global basis and which will use the ISR mining process which is expected to reduce the impact on the environment as compared to conventional mining. 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 Program”) and, as of April 30, 2025, we had 1,356,000 pounds of uranium and had entered into agreements to purchase 300,000 pounds of warehoused uranium in Fiscal 2026 at conversion facilities located in North America at a volume weighted average price of approximately $37.05 per pound. 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 cash flows; 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 the 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 (“DOE”). Uranium Market Developments The uranium market is being driven by a macro demand for more electricity generation, an unprecedented global push for clean energy, geopolitical situations and under investment among other factors. McKinsey & Company noted that global electricity demand is expected to more than double from 25,000 terawatt-hours (TWh) to between 52,000 and 71,000 TWh by 2050, due to the growth in emerging markets’ energy needs and electrification across the economy. An April 2025 study from the National Electrical Manufacturers Association projects that electricity demand in the U.S. will see a 50% increase by 2050. This includes expectations that artificial intelligence growth and demand to power data centers will increase by 30% over the next ten years. There is a growing realization that the highly reliable, safe, economical baseload power nuclear energy provides should be a part of any clean energy platform. Governments around the globe are also pursuing strategies to increase energy independence for national security interests that dovetail well with nuclear power as a key component in their energy mix. Certainly, the May 2025 Executive Orders (“EOs”) designed to reinvigorate nuclear power in the U.S. issued by the Trump Administration support this theme. Countries that have been less than enthusiastic about nuclear energy are reversing attitudes and advancing programs to include or extend the generation of electricity produced from nuclear power. 30 Table of Contents In the U.S., several pieces of unprecedented bipartisan legislation have passed in recent years supporting nuclear development and expansion, including the Nuclear Fuel Security Act, Advance Act, and the Inflation Reduction Act. In combination, these bills and others like The Prohibiting Russian Uranium Imports Act and the EOs will help rebuild and restore a robust domestic fuel cycle in the U.S. The new Trump Administration is also firmly behind nuclear energy with priority actions stating, “unleash commercial nuclear power in the U.S.” and “strengthen grid reliability and security.” (Source: Energy.Gov - Secretary Wright Acts to Unleash Golden Era of American Energy Dominance, February 5, 2025). The DOE has called for a significant expansion of nuclear energy capacity from 97 GWe to 300 GWe by 2050. On May 23, 2025, President Trump signed the EOs that include a policy objective to quadruple U.S. nuclear energy generation capacity by 2050. President Trump’s EOs mark a historic level of policy support to rejuvenate the U.S. nuclear industry and its infrastructure, underscoring its importance as a matter of national security. The EOs invoke the Defense Production Act that will have significant positive policy and economic impacts on the domestic fuel cycle, reactor new builds, research and new technology advancements. The EOs will also result in an accelerated and coordinated approach to regulatory actions, all aimed at a more secure and independent energy future for the United States. Generating capacity gains are anticipated to come from multiple sources, including building new nuclear power plants, uprating existing reactors, and restarting retired reactors that meet appropriate safety and economic criteria. Large U.S. technology companies like Microsoft, Meta, Google, Oracle and Amazon are making significant nuclear energy commitment for their data center energy demand with large investments in the clean, affordable and reliable power that nuclear energy provides. Global uranium market fundamentals have improved in recent years as the market began a transition from being inventory driven to production driven. The spot market bottomed out in November 2016 at about $17.75 per pound U 3 O 8 , but has since shown appreciation, reaching a high in 2024 of $107.00 per pound U 3 O 8 . Since that time the spot uranium market has seen a pullback reaching a low of $63.45 per pound U 3 O 8 on March 17, 2025 before starting a rebound move that has since carried the spot market back above $70.00 per pound U 3 O 8 in May 2025. During the three and nine months ended, April 30, 2025, uranium prices averaged $65.53 and $74.38 per pound U 3 O 8 , respectively. The period including November 2024 through April 2025 was marked by continued spot price fluctuations between $82.00 and $63.45 per pound U 3 O 8 (all pricing information is sourced from UxC LLC Historical Ux Daily Prices). Reinforcing the strength of the longer-term market fundamentals, UxC LLC long term prices have remained constant at $80.00 per pound U 3 O 8 in all of 2025 through the month of April. Underinvestment in uranium mining operations over the past decade has been a major factor contributing to a structural deficit that is apparent between global production and uranium requirements. Reduced production from existing uranium mines has also been a contributing factor with some large producers cutting back and/or unable to reach previously planned production levels. In 2025 and 2026 the mid-case gap between production and requirements is projected to be more than 54 million pounds of U 3 O 8 , and by 2035 accumulates to a total near 336 million pounds of U 3 O 8 (Source: UxC 2025 Q1 Uranium Market Outlook). For context, the U.S. utilities purchased 51.6 million pounds of U 3 O 8 in 2023 (Source: U.S. Energy Information Administration, June 6, 2024 - Uranium Marketing Annual Report). The current gap is being filled with secondary market sources, including finite inventory that has been declining and is projected to decline further in coming years. Secondary supply is also likely to be further reduced with western enrichers, reversing operations from underfeeding to overfeeding that requires more uranium to increase the production of enrichment services. As secondary supplies continue to diminish, and as existing mines deplete resources, new production will be needed to meet existing and future demand. The timeline for new mining projects can be 10 years or longer and will require prices high enough to stimulate new mining investments. Since 2022, uranium supply has become more complicated due to Russia’s invasion of Ukraine with its State Atomic Energy Corporation, Rosatom, being a significant supplier of nuclear fuel around the globe. Economic sanctions, transportation restrictions and U.S. legislation banning the importation of Russian nuclear fuel and Russia’s retaliation with an U.S. export ban is causing a fundamental change to the nuclear fuel markets. Additionally, the 2023 coup in Niger, and the government’s demand for the U.S. and France to vacate the country, as well as the revocation of Canadian and French companies mining rights, operating permits and export capabilities, has underscored jurisdictional risk. Niger is the world’s seventh largest producer and accounted for approximately 5% of global uranium production and approximately 14% of European Union supply in 2023 ( Source: Euratom Supply Agency, World Nuclear Association - Uranium in Niger July 23, 2024, World Nuclear News ). 31 Table of Contents The White House's Executive Order establishing “The National Energy Dominance Council” noted one of the objectives is to “reduce dependency on foreign imports” for America’s “national security” and recognized uranium as an ‘amazing national asset’ ( Source: The White House News & Update, February 14, 2025 ). Critical minerals, including uranium are also receiving additional scrutiny as mandated by the Trump Administration’s Executive Order initiating a new 232 investigation to ensure imports are not in such quantities or circumstances as to threaten or impair national security and or economic resilience. This action being performed by the Department of Commerce could potentially lead to tariffs or other import restrictions on foreign uranium to bolster domestic production. On the demand side, the global nuclear energy industry continues robust growth, with 68 new reactors connected to the grid in 2015 through March of 2025, with another 61 reactors under construction. In 2024, 6 new reactors were connected to the grid and 4 reactors were permanently shut down (Source: International Atomic Energy Association Power Reactor Information System – May 19, 2025). Total nuclear generating capacity for the world’s 439 operable reactors as of May 19, 2025 stands at 398 GWe (Source: World Nuclear Association). At least 31 countries have pledged to triple their nuclear capacity by 2050 further supporting additional growth for the nuclear industry and uranium demand. In addition, over 150 nuclear industry companies, 14 of the world’s largest banks like Citibank, Morgan Stanley and Goldman Sachs, and more recently, 15 large energy users such as Microsoft, Amazon and Google have all pledged to support this goal in their investments and commercial activities. Additional upside market pressure is also occurring as utilities continue their return to a longer-term contracting cycle to replace expiring contracts. Cumulative uncommitted demand through 2035 is more than 950 million pounds U 3 O 8 (Source: UxC Uranium Market Overview Q1 2025). This utility demand, along with that from financial entities, government programs in the EOs, and various producers, as well as the increasing interest in nuclear energy for artificial intelligence data centers, are adding to the strong fundamentals supporting the uranium market. Seasonality The timing of our uranium concentrate sales is dependent upon factors such as extraction results from our mining activities, cash requirements, contractual requirements and perception of the uranium market. As a result, our sales are neither tied to nor dependent upon any particular season. In addition, our ability to extract and process uranium does not change on a seasonal basis. Over the past ten years uranium prices have tended to decline during the calendar third quarter before rebounding during the fourth quarter, but there does not appear to be a strong correlation. Results of Operations For the three and nine months ended April 30, 2025, we recorded revenue of $0.00 million and $66.84 million, and realized gross profit of $0.00 million and $24.48 million, respectively, which were all related to sales of purchased uranium inventory. For the three and nine months ended April 30, 2024, we recorded revenue of $0.00 million and $0.22 million, and realized gross profit of $0.00 million and $0.04 million, respectively, which were all generated from toll processing services. For the three and nine months ended April 30, 2025, we recorded a net loss of $30.21 million ($0.07 per share) and $60.60 million ($0.14 per share), and loss from operations of $23.46 million and $40.30 million, respectively. During the three and nine months ended April 30, 2024, we recorded net loss of $19.68 million ($0.05 per share) and $14.11 million ($0.04 per share), and loss from operations of $13.84 million and $37.35 million, respectively. While we have commenced uranium extraction at our Christensen Ranch Mine in August 2024, we are still ramping up our mining activities during the three and nine months ended April 30, 2025. We expect the ramp-up phase will continue while new production areas are being constructed and completed in 2025. The rest of our uranium projects are expected to remain in a state of operational readiness and the relevant expenditures, which are directly related to regulatory/mine permit compliance, lease maintenance obligations and maintaining a necessary labor force, are being charged to our consolidated statement of operations. As of April 30, 2025, we have 300,000 pounds of uranium inventory purchase commitments outstanding at a volume weighted average price of approximately $37.05 per pound. Deliveries are scheduled to occur in Fiscal 2026. As of April 30, 2025, the carrying value of our inventories was $76.36 million (July 31, 2024: $75.83 million), of which purchased uranium concentrate inventories was $72.90 million (July 31, 2024: $75.44 million). 32 Table of Contents Sales and Service Revenue The table below provides a breakdown of our sales and service revenue and cost of sales and services: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Sales of purchased uranium inventory $ - $ - $ 66,837 $ - Revenue from toll processing services - - - 224 Total sales and service revenue $ - $ - $ 66,837 $ 224 Cost of purchased uranium inventory $ - $ - $ (42,360 ) $ - Cost of toll processing services - - - (187 ) Total cost of sales and services $ - $ - $ (42,360 ) $ (187 ) During the nine months ended April 30, 2025, we generated revenue of $66.84 million and achieved a gross profit of $24.48 million, both derived from the sales of purchased uranium inventory. However, due to volatility in the uranium market and broader global economic conditions, the Company did not engage in any sales activities during the three months ended April 30, 2025. Operating Costs Mineral Property Expenditures 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 mineral projects. The following table provides the nature of mineral property expenditures for the periods indicated: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Permitting and compliance $ 253 $ 394 $ 855 $ 1,733 Property maintenance 1,246 1,073 3,738 3,020 Exploration 3,079 4,668 8,919 9,985 Development 6,493 1,769 18,759 3,414 Extraction readiness 4,609 1,167 11,166 3,296 Total $ 15,680 $ 9,071 $ 43,437 $ 21,448 During the three and nine months ended April 30, 2025 , exploration expenditures, such as drilling and preliminary economic assessments, were primarily spent on the following projects: ● Burke Hollow Project: $0.43 million and $1.91 million ( April 30, 2024 : $1.59 million and $3.68 million), respectively; and ● Roughrider Project: $2.08 million and $5.30 million ( April 30, 2024 : $2.36 million and $3.62 million), respectively. During the three and nine months ended April 30, 2025 , development expenditures were primarily spent on the following projects: ● Burke Hollow Project: $2.31 million and $6.90 million ( April 30, 2024 : $nil and $nil), respectively; and ● Christensen Ranch Mine: $4.39 million and $8.60 million ( April 30, 2024 : $1.43 million and $1.43 million), respectively. 33 Table of Contents During the three and nine months ended April 30, 2025 , extraction readiness expenditures were primarily spent on the following projects: ● Christensen Ranch Mine: $3.53 million and $8.37 million ( April 30, 2024 : $0.56 million and $1.52 million), respectively; ● Irigaray Plant: $0.65 million and $1.44 million ( April 30, 2024 : $0.12 million and $0.30 million), respectively; and ● Palangana Mine: $0.21 million and $0.63 million ( April 30, 2024 : $0.30 million and $1.03 million), respectively. General and Administrative General and Administrative expenses were comprised of the following: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Salaries and management fees $ 2,000 $ 1,441 $ 5,646 $ 4,236 Office, investor communications, insurance and travel 2,057 1,161 5,168 3,783 Foreign exchange (gain) loss 252 (31 ) (166 ) 7 Professional fees 731 545 2,932 2,301 Sub-total 5,040 3,116 13,580 10,327 Stock-based compensation 1,338 1,103 4,713 3,987 Total general and administrative expenses $ 6,378 $ 4,219 $ 18,293 $ 14,314 The following summary provides a discussion of our major expense categories including analyses of the factors that caused significant variances compared to the same period last year: ● for the three and nine months ended April 30, 2025, salaries, wages and management fees increased compared to the three and nine months ended April 30, 2024, which was primarily the result of an increase in personnel and corporate-wide salary increases to adjust for inflation; and ● for the three and nine months ended April 30, 2025, professional fees and office, investor communications, insurance and travel increased compared to the three and nine months ended April 30, 2024, which was primarily the result of increase in business activities and the expansion of our operations. Income (Loss) from Equity-Accounted Investments Income (loss) from equity-accounted investments was comprised of the following: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Share of income (loss) $ (2,256 ) $ 104 $ (3,750 ) $ 1,325 Gain on dilution of ownership interest 1 3,202 28 3,633 Total $ (2,255 ) $ 3,306 $ (3,722 ) $ 4,958 During the three and nine months ended April 30, 2025 and 2024, we recorded a gain on dilution of ownership interest in URC as a result of URC issuing more shares from its equity financing and exercises of warrants and/or stock options. As at April 30, 2025, we had a 13.5% equity interest in URC compared to a 14.8% equity interest as at July 31, 2024. 34 Table of Contents During the three and nine months ended April 30, 2025, we recorded a share of URC’s loss of $0.15 million and $0.45 million (three and nine months ended April 30, 2024: income of $0.52 million and $2.40 million) and a share of JCU’s loss of $2.11 million and $3.30 million (three and nine months ended April 30, 2024: $0.42 million and $1.07 million), respectively. Fair Value Gain (Loss) on Equity Securities As at April 30, 2025, our investments in certain equity securities were revalued using the market values at period end, which resulted in a fair value loss of $4.27 million and $22.58 million on revaluation of equity securities for the three and nine months ended April 30, 2025 (three and nine months ended April 30, 2024: loss of $13.80 million and gain of $23.59 million), respectively. Gain (Loss) on Revaluation of Derivative Liabilities In connection with the UEX Acquisition, we issued Replacements Warrants, which are accounted for as derivative liabilities as the exercise prices of the UEX warrants were denominated in Canadian dollars which differs from the functional currency of the Company. As at April 30, 2025, all Replacement Warrants had been either exercised or expired. A gain of $nil and $1.71 million on revaluation of derivative liabilities was recorded for the three and nine months ended April 30, 2025, respectively, due to the decrease in time value of the Replacement Warrants as they expired in the first quarter of Fiscal 2025. During the three and nine months ended April 30, 2024, we recorded a gain on revaluation of derivative liabilities of $2.07 million and a loss of $9.89 million, respectively, primarily due to changes in our share price. Interest income During the three and nine months ended April 30, 2025, interest income totaled $0.57 million and $2.90 million, compared to $0.99 million and $1.56 million for the three and nine months ended April 30, 2024, respectively. The interest earned resulted from the investment of cash proceeds received from our 2022 ATM Offering and our 2024 ATM Offering (collectively, the “ATM Offerings”) and the sale of equity securities in short-term deposits. Summary of Quarterly Results For the Quarters Ended April 30, 2025 January 31, 2025 October 31, 2024 July 31, 2024 Sales and service revenue $ - $ 49,750 $ 17,087 $ - Gross profit - 18,226 6,251 - Net loss (30,212 ) (10,234 ) (20,158 ) (15,115 ) Total comprehensive loss (19,796 ) (19,003 ) (21,886 ) (16,169 ) Basic and diluted loss per share (0.07 ) (0.02 ) (0.05 ) (0.04 ) Total assets 1,007,810 981,957 917,798 889,828 For the Quarters Ended April 30, 2024 January 31, 2024 October 31, 2023 July 31, 2023 Sales and service revenue $ - $ 116 $ 108 $ 38,949 Gross profit - 19 18 15,023 Net income (loss) (19,677 ) 2,250 3,321 517 Total comprehensive income (loss) (25,527 ) 9,982 (7,728 ) 6,835 Basic and diluted income (loss) per share (0.05 ) 0.01 0.01 - Total assets 878,268 878,878 798,129 737,589 Liquidity and Capital Resources April 30, 2025 July 31, 2024 Cash and cash equivalents $ 71,397 $ 87,533 Current assets 152,663 235,244 Current liabilities 15,097 29,222 Working capital (Current assets less Current liabilities) 137,566 206,022 35 Table of Contents During the nine months ended April 30, 2025, we received net proceeds of $168.03 million (nine months ended April 30, 2024: $160.24 million) from our ATM Offerings and from exercises of stock options and share purchase warrants. Subsequent to April 30, 2025, we received additional net proceeds of $54.82 million under our 2024 ATM Offering. We have a history of operating losses resulting in an accumulated deficit balance since inception. We had an accumulated deficit balance of $379.51 million as at April 30, 2025. Furthermore, we may not achieve and maintain profitability or develop positive cash flow from our operations in the near term. Historically, we have been reliant primarily on equity financings from the sale of our common stock in order to fund our operations. We have yet to achieve consistent profitability or develop consistent positive cash flow from operations. Currently, we also rely on cash flows generated from the sales of our purchased uranium concentrates to fund our operations. Our reliance on equity is expected to continue for the foreseeable future, and their availability whenever such additional financing is required will be dependent on many factors beyond our control and including, but not limited to, the market price of uranium, the continuing public support of nuclear power as a viable source of electricity generation, the volatility in the global financial markets affecting our stock price and the status of the worldwide economy, any one of which may cause significant challenges in our ability to access additional financing, including access to the equity and credit markets. We may also be required to seek other forms of financing, such as asset divestitures or joint venture arrangements, to continue advancing our uranium projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project. However, there is no assurance that we will be successful in securing any form of additional financing when required and on terms favorable to us. Our operations are capital intensive and future capital expenditures are expected to be substantial. We will require significant additional financing to fund our operations, including continuing with our exploration, pre-extraction and extraction activities and acquiring additional uranium projects. In the absence of such additional financing, we would not be able to fund our operations, including continuing with our exploration, pre-extraction and extraction activities, which may result in delays, curtailment or abandonment of any one or all of our uranium projects. Our anticipated operations, including exploration, pre-extraction and extraction activities, however, will be dependent on and may change as a result of our financial position, the market price of uranium and other considerations, and such changes may include accelerating the pace or broadening the scope of reducing our operations. Our ability to secure adequate funding for these activities will be impacted by our operating performance, other uses of cash, the market price of uranium, the market price of our common stock and other factors which may be beyond our control. Specific examples of such factors include, but are not limited to: ● if the market price of uranium weakens; ● if the market price of our common stock weakens; and ● if a nuclear incident, such as the events that occurred in Japan in March 2011, were to occur, continuing public support of nuclear power as a viable source of electrical generation may be adversely affected, which may result in significant and adverse effects on both the nuclear and uranium industries. We believe our existing cash resources, and if necessary, cash generated from the sale of the Company’s liquid assets, will provide sufficient funds to carry out our planned operations for 12 months from the date that this Quarterly Report is issued. Our continuation as a going concern for a period beyond those 12 months will be dependent upon our ability to generate cash flow from the sales of our uranium inventories under our Physical Uranium Program and to obtain adequate additional financing, as our operations are capital intensive and future capital expenditures are expected to be substantial. Our long-term success, including the recoverability of the carrying values of our assets and our ability to acquire additional uranium projects and continue with exploration, pre-extraction, extraction and mining activities on our existing uranium projects, will depend ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations by establishing ore bodies that contain commercially recoverable uranium and to develop these into profitable mining activities. 36 Table of Contents Equity Financings On November 16, 2022, we filed a Form S-3 automatic shelf registration statement under the Securities Act, which became effective upon filing, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of an undetermined dollar value of common stock, debt securities, warrants to purchase common stock or debt securities, subscription receipts for units which include common stock, debt securities, warrants or any combination thereof (again, the 2022 Shelf), which included an at-the-market offering agreement prospectus (again, the 2022 ATM Offering) covering the offering, issuance and sale of up to a maximum offering of $300 million under the 2022 Shelf. On November 16, 2022, we also entered into an at-the-market offering agreement (again, the 2022 ATM Offering Agreement) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, again, the 2022 ATM Managers) as set forth in the 2022 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 $300 million through the ATM Managers selected by us. On December 20, 2024, we filed a prospectus supplement to our 2022 Shelf, under which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $300 million pursuant to an at-the-market offering agreement (again, the 2024 ATM Offering Agreement) we have with Goldman Sachs & Co. LLC and certain co-managers (collectively, again, the 2024 ATM Managers). Under the 2024 ATM Offering Agreement, we may, from time to time, sell shares of our common stock through the 2024 ATM Managers selected by us. During the nine months ended April 30, 2024, we issued 24,584,399 of the Company’s common stock under the 2022 ATM Offering for gross cash proceeds of $158.62 million. The total issuance costs were $3.57 million, all of which were related to compensation paid to the 2022 ATM Managers. During the nine months ended April 30, 2025, we issued 11,516,375 and 11,888,516 of the Company’s common stock under the 2022 ATM Offering and the 2024 ATM Offering for gross cash proceeds of $94.40 million and $75.34 million, respectively. The total issuance costs were $2.15 million and $1.69 million, all of which were related to compensation paid to the 2022 ATM Managers and the 2024 ATM Managers, respectively. Subsequent to April 30, 2025, we issued 9,306,188 of the Company’s common stock under the 2024 ATM Offering for gross cash proceeds of $56.08 million. The total issuance costs were $1.26 million, all of which were related to compensation paid to the 2024 ATM Managers. Operating Activities During the nine months ended April 30, 2025, net cash used in operating activities totaled $41.00 million, which was primarily related to mineral property expenditures of $43.44 million, general and administrative expenses of $18.29 million and changes in operating assets and liabilities, partially offset by a gross profit from the sale of purchased uranium inventory of $24.48 million. During the nine months ended April 30, 2024, net cash used in operating activities was $93.87 million, of which $57.18 million was related to the change in uranium concentrate inventory. Financing Activities During the nine months ended April 30, 2025, net cash provided by financing activities totaled $165.39 million, primarily from the net proceeds of $168.03 million from our ATM Offerings, as well as the exercises of stock options and share purchase warrants, partially offset by payments of $2.64 million for tax withholding amounts related to RSU and PRSU net share issuances. During the nine months ended April 30, 2024, net cash provided by financing activities totaled $159.29 million, primarily from the net proceeds of $160.24 million from our 2022 ATM Offering and the exercises of stock options and share purchase warrants, partially offset by payments of $0.95 million for tax withholding amounts related to RSU and PRSU net share issuances. Investing Activities During the nine months ended April 30, 2025, net cash used in investing activities totaled $138.57 million, comprised of $177.33 million paid for the Sweetwater Acquisition, $10.46 million invested in equity securities, $0.54 million used for the capital contribution to JCU and $4.67 million invested in mineral properties and the purchase of equipment, partially offset by proceeds from the sale of equity securities of $54.37 million. During the nine months ended April 30, 2024, net cash used in investing activities totaled $23.28 million, comprised of capital contribution to JCU of $2.39 million, investment in equity securities of $12.12 million, additional investment in URC of $9.24 million, and cash from the sale of equity securities of $3.01 million. 37 Table of Contents Stock Options and Warrants As of April 30, 2025 , we had in-the-money stock options outstanding representing 4,361,328 shares at a weighted-average exercise price of $2.33 per share, and in-the-money share purchase warrants outstanding representing 159,091 shares at a weighted-average exercise price of $4.13 per share. As of April 30, 2025 , outstanding in-the-money stock options and warrants represented a total 4,520,419 shares issuable for gross proceeds of approximately $10.80 million should these stock options and warrants be exercised in full on a cash basis. The exercise of stock options and warrants is at the discretion of their respective holders and, accordingly, there is no assurance that any of the stock options or warrants will be exercised in the future. Transactions with Related Parties Related party transactions are based on the amounts agreed to by the parties. During three and nine months ended April 30, 2025 and 2024, the Company did not enter into any material contracts or undertake any significant commitment or obligation with any related parties. Material Contractual Obligations and Commitments As at April 30, 2025, significant payment obligations of the Company over the next five years and beyond are as follows: Payment Due by Period Less Than 1-3 3-5 More Than Total 1 Year Years Years 5 Years Asset Retirement Obligations $ 88,856 $ 2,845 $ 5,022 $ 6,675 $ 74,314 Operating Lease Obligations 2,442 489 763 372 818 Uranium Inventory Purchase Obligations 11,114 11,114 - - - Total $ 102,412 $ 14,448 $ 5,785 $ 7,047 $ 75,132 As of April 30, 2025, we were renting or leasing office premises in the States of Texas, Arizona and Wyoming, British Columbia and Saskatchewan, Canada, and Par aguay, for total monthly paym ents of $0.05 million. Office lease agreements for the U.S. and Canada expire between July 2026 and November 2029. Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. Critical Accounting Policies For a complete summary of all of our significant accounting policies refer to Note 2: Summary of Significant Accounting Policies of the Notes to the consolidated financial statements as presented under Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for Fiscal 2024. For a discussion of the recently issued accounting pronouncements, refer to note 2 of the interim condensed consolidated financial statements contained in this Quarterly Report. Refer to “Critical Accounting Policies” under Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for Fiscal 2024. Subsequent Events Subsequent to April 30, 2025, we received additional net cash proceeds of $54.82 million under our 2024 ATM Offering. 38 Table of Contents Item 3. Quantitative and Qualitative Disclosures About Market Risk Refer to Item 7A., Quantitative and Qualitative Disclosures About Market Risk, in our Annual Report on Form 10-K for Fiscal 2024.