What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2022-04-15 compared with 2021-04-15 · 7 added, 625 removed, 2 unchanged (100% of the section changed)

MARKET FOR REGISTRANT’S

COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our common shares trade on the OTCQX Market

under the “WSTRF”

trading symbol.

Our common shares are listed for trading

in Canada on the CSE under the symbol “WUC”.

According to our transfer agent, as of

April 15, 2021 there were approximately 3,431 holders of record of our common shares.

SELECTED FINANCIAL DATA

Not Applicable

MANAGEMENT’S DISCUSSION

AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

The information disclosed in this annual report, and the information

incorporated by reference herein, include “forward-looking statements”

within the meaning of Section 27A of the Securities

Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Forward-looking

statements include, but are not limited to, statements regarding our or our management’s expectations, hopes, beliefs, intentions

or strategies regarding the future.

In addition, any statements that refer to projections, forecasts or other characterizations of future

events or circumstances, including any underlying assumptions, are forward-looking statements.

The words “anticipate,”

“believe,”

“continue,”

“could,”

“estimate,”

“expect,”

“intend,”

“may,”

“might,”

“plan,”

“possible,”

“potential,”

“predict,”

“project,”

“should,”

“would”

and similar expressions may identify forward-looking statements, but the absence of these words does not mean that

a statement is not forward-looking.

The forward-looking statements contained or incorporated

by reference in this quarterly report are based on our current expectations and beliefs concerning future developments and their potential

effects on us and speak only as of the date of each such statement.

There can be no assurance that future developments affecting us will

be those that we have anticipated.

These forward-looking statements involve a number of risks, uncertainties (some of which are beyond

our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied

by these forward-looking statements.

These risks and uncertainties include, but are not limited to, those factors described in Item 1A,

“Risk Factors,”

and this Item 7 of this annual report.

Should one or more of these risks or uncertainties materialize, or

should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking

We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future

events or otherwise, except as may be required under applicable securities laws.

The following discussion should be read in conjunction with our audited

consolidated annual financial statements and footnotes thereto contained in this annual report.

Western Uranium & Vanadium

(“Western”

or the “Company”, formerly Western Uranium Corporation) was incorporated in December 2006

under the Ontario Business Corporations Act.

On November 20, 2014, the Company completed a listing process on the Canadian Securities

Exchange (“CSE”).

As part of that process, the Company acquired 100% of the members’

interests of Pinon Ridge Mining

LLC (“PRM”), a Delaware limited liability company.

The transaction constituted a reverse takeover (“RTO”)

of Western by PRM.

Subsequent to obtaining appropriate shareholder approvals, the Company reconstituted its Board of Directors

and senior management team.

Effective September 16, 2015, Western completed its acquisition of Black Range Minerals Limited (“Black

Range”).

On August 18, 2014, the Company

closed on the purchase of certain mining properties in Colorado and Utah from Energy Fuels Holding Corp.

Assets purchased included

both owned and leased lands in Utah and Colorado and all represent properties that have been previously mined for uranium to varying

degrees in the past.

The acquisition included the purchase of the Sunday Mine Complex.

The Sunday Mine Complex is located in western

San Miguel County, Colorado.

The complex consists of the following five individual mines:

the Sunday mine, the Carnation mine,

the Saint Jude mine, the West Sunday mine and the Topaz mine.

The operation of each of these mines requires a separate permit and

all such permits have been obtained by Western and are currently valid.

In addition, each of the mines has good access to a paved

highway, electric power to existing declines, office/storage/shop and change buildings, and extensive underground haulage development

with several vent shafts complete with exhaust fans.

These properties were formerly secured by a first priority interest collateralizing

a $500,000 promissory note which was paid in full on August 31, 2018 and thus the properties are now held free and clear of encumbrances.

The Sunday Mine Complex is the Company’s core resource property and was assigned active status effective June 2019.

On September 16, 2015, Western

completed its acquisition of Black Range, an Australian company that was listed on the Australian Securities Exchange until the

acquisition was completed.

The acquisition terms were pursuant to a definitive Merger Implementation Agreement entered into between

Western and Black Range.

Pursuant to the agreement, Western acquired all of the issued shares of Black Range by way of Scheme of

Arrangement (“the Scheme”) under the Australian Corporation Act 2001 (Cth) (the “Black Range Transaction”),

with Black Range shareholders being issued common shares of Western on a 1 for 750 basis.

On August 25, 2015, the Scheme was approved

by the shareholders of Black Range and on September 4, 2015, Black Range received approval by the Federal Court of Australia.

addition, Western issued to certain employees, directors and consultants options to purchase Western common shares.

options were intended to replace Black Range stock options outstanding prior to the Black Range Transaction on the same 1 for 750

The Company has registered offices

at 330 Bay Street, Suite 1400, Toronto, Ontario, Canada, M5H 2S8 and its common shares are listed on the CSE under the symbol “WUC”

and are traded on the OTCQX Best Market under the symbol “WSTRF”.

Its principal business activity is the acquisition

and development of uranium and vanadium resource properties in the states of Utah and Colorado in the United States of America

(“United States”).

Recent Developments

Kinetic Separation Licensing

During 2016, the Company submitted

documentation to the Colorado Department of Public Health and Environment (“CDPHE”) for a determination ruling regarding

the type of license which may be required for the application of Kinetic Separation at the Sunday Mine Complex within the state

During May and June of 2016, CDPHE held four public meetings in several cities in Colorado as part of the process.

On July 22, 2016 CDPHE closed the comment period.

In connection with this matter, the CDPHE consulted with the United States Nuclear

Regulatory Commission (“NRC”).

In response, the CDPHE received an advisory opinion dated October 16, 2016, which did

not contain support for the NRC’s opinion and with which the Company’s regulatory counsel does not agree.

advisory opinion recommended that Kinetic Separation should be regulated as a milling operation but did recognize that there may

be exemptions to certain milling regulatory requirements because of the benign nature of the non-uranium bearing sands produced

after Kinetic Separation is completed on uranium-bearing ores.

On December 1, 2016, the CDPHE issued a determination that the proposed

Kinetic Separation operations at the Sunday Mine must be regulated by the CDPHE through a milling license.

The 2018 increase in

the blended uranium/vanadium price has brought the Company closer to production.

Beginning in 2017, the Company’s regulatory

counsel has prepared significant documentation in preparation for a prospective submission.

On September 13, 2019, the Company’s

regulatory counsel submitted a white paper to the NRC entitled Recommendations on the Proper Legal and Policy Interpretation for

Using Kinetic Separation Processes at Uranium Mine Sites.

On July 24, 2020, the NRC staff responded with a letter in support of

the original conclusion;

Western’s regulatory counsel is evaluating alternatives.

Letter of Intent with Pinon Ridge Mill

The Company entered into a letter of intent with Pinon Ridge

Corporation for use of its Kinetic Separation at the permitted uranium recovery facilities at the Pinon Ridge Mill site.

of intent provided for the processing of all of Western’s ore produced by its mines in the region at the mill site to produce

U308 and vanadium utilizing both the application of Kinetic Separation and traditional milling techniques, at a cost to be determined

in a definitive agreement.

The Pinon Ridge Mill license is held by Pinon Ridge Resources Corporation, a wholly owned subsidiary

of Pinon Ridge Corporation, which is owned by Mr.

George Glasier, our Chief Executive Officer and a director, Mr.

Andrew Wilder,

a director, and Mr.

Russell Fryer, a former executive chairman and director.

On February 22, 2019, the Company and Pinon Ridge

Corporation cancelled and released each other from obligations under the letter of intent.

Incentive Stock Option Plan

The Company maintains an Incentive Stock Plan (the “Plan”)

which permits the granting of stock options as incentive compensation.

See Item 12, “Security Ownership of Certain Beneficial Owners

and Management and Related Stockholder Matters –

Equity Compensation Plan Information,”

for more detailed information about

Sunday Mine Complex Vanadium Project Supplementary Requirements

On June 18, 2019, The Colorado Division of Reclamation, Mining and

Safety (CDRMS) issued a letter indicating limited supplementary requirements prior to the removal of material (ore) from the Sunday Mine

Complex underground workings and further offsite handling.

In a follow-up meeting on Monday, August 5, 2019, the Company agreed to construct

an ore pad on the surface before stockpiling or storing ore outside the mine and acquire certification that the storm drainage system

was constructed in accordance with the existing plan prior to the removal of ore from the SMC.

On August 15, 2019, the Company sent a

response letter to CDRMS providing the requested additional information regarding the reopening of the Sunday Mine Complex mines.

18, 2019, the CDRMS issued a letter indicating that activities at the Sunday Mines did not meet the definition of a “Mining Operation”

and thus at that time, the Division did not consider the permits in active status.

In the letter, CDRMS reiterated that prior to the removal

of ore material from the mines and upgrading to an active status, the CDRMS surface requirements needed to be completed, inspected and

accepted by CDRMS.

The CDRMS further noted requirements that would apply to Western’s proposed off-site kinetic separation test

On April 9, 2020, CDRMS issued a letter acknowledging that the Construction Completion Reports and As-Built Certifications for

the ore storage pads have been reviewed and accepted.

It was further noted that prior to ore being removed and placed on the ore pad an

inspection would still need to be completed, but due to COVID-19 the CDRMS staff were subject to a no-travel policy under the Governor’s

Stay-at-Home Order.

Hence, CDRMS offered an alternative remote procedure requiring extensive photo documentation and a signed affidavit

from both the manufacturer and installation crew certifying that the ore pad liner was installed in accordance with the approved Environmental

Protection Plan.

Additional requirements included the submission of a comprehensive hydrogeology report and completion of the Sunday Mine

Complex MLRB permit hearing process.

With this approval, Western has now completed every project, study, and submission stipulated as

required under the existing Environmental Protection Plan by CDMRS, and all submissions have been made.

The hydrogeology report is currently

being reviewed by CDMRS and approval is needed to conduct mining activities below the static groundwater level or to affect ground or

surface waters.

The Company is working toward the completion of an updated Plan of Operations, which is required for resumption of mining

activities at the Topaz Mine.

Sunday Mine Complex Permitting Status

On February 4, 2020, the Colorado DRMS sent a Notice of Hearing to

Declare Termination of Mining Operations related to the status of the mining permits issued by the state of Colorado for the Sunday Mine

At issue is the application of an unchallenged Colorado Court of Appeals Opinion for a separate mine (Van 4) with very different

facts that are retroactively modifying DRMS rules and regulations.

The Company maintains that it was timely in meeting existing rules

and regulations.

The hearing was scheduled to be held during several monthly MLRB Board meetings, but this matter has been delayed several

The permit hearing was held during the MLRB Board monthly meeting on July 22, 2020.

At issue was the status of the five existing

permits which comprise the Sunday Mine Complex.

Due to COVID restrictions, the hearing took place utilizing a virtual-only format.

Company prevailed in a 3 to 1 decision which acknowledged that the work completed at the Sunday Mines under DRMS oversight was timely

and sufficient for Western to maintain these permits.

In a subsequent July 30, 2020 letter, the DRMS notified the Company that the status

of the five permits (Sunday, West Sunday, St.

Jude, Carnation, and Topaz) had been changed to Active status effective June 10, 2019, the

original date on which the change of the status was approved.

On August 23, 2020, the Company initiated a request for temporary cessation

status for the Sunday Mine Complex as the mines had not be restarted within a 180-day window due to the direct and indirect impacts of

the COVID-19 pandemic.

Accordingly, a permit hearing was scheduled for October 21, 2020 to determine temporary cessation status.

unanimous vote, the MLRB approved temporary cessation status for each of the five Sunday Mine Complex permits (Sunday, West Sunday, St.

Jude, Carnation, and Topaz).

On October 9, 2020, the MLRB issued a board order which finalized the findings of the July 22, 2020 permit

On November 10, 2020, the MLRB issued a board order which finalized the findings of the October 21, 2020 permit hearing.

6, 2020, the MLRB signed an order placing the five Sunday Mine Complex mine permits into Temporary Cessation.

On November 12, 2020, a

coalition of environmental groups filed a complaint against the MLRB seeking a partial appeal of the July 22, 2020 decision by requesting

termination of the Topaz Mine permit.

On December 15, 2020, the same coalition of environmental groups amended their complaint against

the MLRB seeking a partial appeal of the October 21, 2020 decision requesting termination of the Topaz Mine permit.

The Company has joined

with the MLRB in defense of their July 22, 2020 and October 21, 2020 decisions.

According to the judicial review timetable, an opening

brief and answer brief will be filed with the Denver District Court during second quarter 2021.

Van 4 Mine Permitting Status

A prior owner of the Van 4 Mine had been

granted a first Temporary Cessation from reclamation of the mine by the Colorado Mined Land Reclamation Board (“MLRB”)

which was set to expire June 23, 2017.

Prior to its expiration, PRM formally requested an extension through a second Temporary

PRM subsequently participated in a public process which culminated in a hearing on July 26, 2017.

Prior to the hearing,

three non-profit organizations who pursue environmental and conservation objectives filed a brief objecting to the extension.

MLRB board members voted to grant a second five-year Temporary Cessation for the Van 4 Mine.

Thereafter, the three objecting parties

filed a lawsuit on September 18, 2017.

The MLRB was named as the defendant and PRM was named as a party to the case due to the

Colorado law requirement that any lawsuit filed after a hearing must include all of the parties in the proceeding.

The plaintiff

organizations are seeking for the court to set aside the board order granting a second five-year Temporary Cessation period to

PRM for the Van 4 Mine.

The Colorado state Attorney General was defending this action in the Denver Colorado District Court.

May 8, 2018, the Denver Colorado District Court ruled in favor, whereby the additional five-year temporary cessation period was

The Plaintiffs appealed this ruling to the Colorado Court of Appeals and on July 25, 2019 the ruling was reversed, ruling

that the additional five-year temporary cessation period should not have been granted.

The MLRB and the Colorado Attorney General advised Western that it

will not make an additional appeal of the ruling.

Further, the time period for an appeal has passed.

The Judge has subsequently issued

an instruction for the MLRB to issue an order revoking the permit and putting the Van 4 Mine into reclamation.

On January 22, 2020, the

MLRB held a hearing and on March 2, 2020, the MLRB issued an order vacating the Van 4 Temporary Cessation, revoking the permit and ordered

commencement of final reclamation, which must be completed within five (5) years.

The Company commenced reclamation of the Van 4 Mine

but progress has been delayed both by COVID-19 restrictions and countywide fire and open flame restrictions.

The reclamation cost is fully

covered by the reclamation bonds posted upon acquisition of the property.

Warrant Extension for Warrants issued in 2018 Private Placement

On April 20, 2020, the Company announced the extension by nine months

of the common share purchase warrants (the “Warrants”) issued to investors in non-brokered private placements that closed

on May 4, June 30, and August 9, 2018 (the “2018 Private Placements”) and the amendment of the trigger price in the acceleration

clause of each Warrant.

A total of 2,671,116 Warrants were amended.

In accordance with ASC 178-20-35-3, the

Company must record a warrant modification expense to account for the effects of these amendments to the original terms.

8 for more information.

Each Warrant originally entitled the holder to purchase one common

share in the capital of the Company at a price of $1.15 CAD at any time prior to May 4, June 30, and August 9, 2020, respectively.

of these dates was extended by nine months such that the Warrants expired or will expire on February 4, April 30, and May 9, 2021, respectively.

Additionally, each Warrant originally contained an acceleration clause that allowed the Company to accelerate the expiration date of the

warrant if the closing price of the Company’s common shares was equal to or greater than $2.50 CAD for a period of five consecutive

trading dates.

The Company is amending this clause by lowering the trigger price from $2.50 CAD to $1.83 CAD.

The Company performed a

Black-Scholes analysis to determine the fair value of the Warrants using the pre-modification terms and the post-modification terms on

the date of modification.

Based on the Company’s analysis performed, the Company recorded a warrant modification expense of $639,012

on April 20, 2020.

Uranium Section 232 Investigation/Nuclear Fuel Working Group

In the United States, an investigation

under Section 232 of the Trade Expansion Act of 1962 (U.S) was undertaken by the U.S Department of Commerce (“DoC”)

in 2018 to assess the impact to national security of the importation of the vast majority of uranium utilized by the ~100 operative

civilian nuclear reactors within the United States.

In response to the Section 232 report, the White House disseminated a Presidential

Memoranda in July 2019.

At that time, President Trump formed the Nuclear Fuel Working Group (“NFWG”) to find solutions

for reviving and expanding domestic nuclear fuel production and reinvigorating recommendations.

As a first step in addressing this

issue, President Trump’s Fiscal Year 2021 budget included a $150 million line item each year for the next decade to establish

a Uranium Reserve.

Thereafter, U.S.

Energy Secretary Dan Brouillette

stated that the Department of Energy (“DoE”) was preparing to release the NFWG report in early March 2020.

This announcement

was made prior to the coronavirus contagion which has delayed the report release.

In parallel, Congress has requested that the

DoE prepare a report on Key Challenges in Reconstituting Uranium Mining and Conversion Capabilities in the United States.

deadline for industry to supply responses to the Request For Information launched by DoE was March 30, 2020.

Western continued

to participate in the process and made an RFI submission.

On April 23, 2020, the DoE released the

NFWG report entitled “Restoring America’s Competitive Nuclear Energy Advantage –

A strategy to assure U.S.

security”.

The report outlines a strategy for the reestablishment of critical capabilities and direct support to the front

end of the U.S.

domestic nuclear fuel cycle.

The Summary of Measures included the following which could benefit U.S.

uranium miners:

direct purchases of uranium by establishing a Uranium Reserve, ending DoE’s program which barters uranium and re-evaluates

DoE’s Excess Uranium Inventory Management Policy, creating a level playing field for all energy sources in power markets,

streamlining regulatory reform and land access for uranium dumping in the U.S.

The NFWG finding and recommendations presented

by the DoE are a positive outcome for U.S.

uranium miners;

however, the ultimate outcome and timing remains uncertain as this is

a continuing process requiring approvals and budget appropriation from Congress and implementation by U.S.

government agencies.

Presently, Western is one of the very few uranium companies holding previously producing, permitted, and developed mines in the

United States and thus well positioned to benefit in the short-term from a favorable determination.

Implementation of the NFWG recommendations remains an ongoing process.

During July 2020, the U.S.

House Committee on Appropriations has decided not to provide $150 million uranium reserve funding for fiscal

Instead the DoE was given 180 days to develop and submit the uranium reserve plan.

Subsequently, Senator Barrasso introduced a bill

into the U.S.

Senate entitled the “The American Nuclear Infrastructure Act of 2020 and Representatives Latta and Cheney introduced

a bill to the U.S.

House entitled the Nuclear Prosperity and Security Act.

These bills implement the key provisions of the NFWG report’s

recommendations;

both include the creation of a national uranium reserve.

In parallel, the preparation of a Congressional report by the

DoE on Key Challenges in Reconstituting Uranium Mining and Conversion Capabilities in the United States remains ongoing and is anticipated

to be imminently completed for the U.S.

In November 2020, Post-U.S.

election, the Senate Committee on Appropriations released its

funding measures and allocations recommending the creation and funding of the American Uranium Reserve.

In October 2020, the DoC extended

the Russian Suspension Agreement for an additional 20 years until 2040.

Existing categories of quotas on imports of Russian uranium into

were reduced by a graduated scale and additional provisions were modified to eliminate loopholes.

An extension of this agreement

was among the NFWG’s recommendations.

In further implementation of the report’s recommendations, the DoE made multiple investment

awards to companies advancing new nuclear technologies.

TerraPower and X-energy received awards to build demonstration models of their

advanced reactor designs and NuScale received support to deploy the first U.S.

small modular reactor (“SMR”) plan comprised

of 12 modules at the Idaho National Laboratory.

The International Development Finance Corp.

signed a letter of intent to finance NuScale’s

development of 42 SMR modules in South Africa.

In an acknowledgement of the future growth potential of new nuclear technologies, the U.S.

government has increased its industry support to a level not seen in decades, this is being done to level the playing field versus state-sponsored

foreign entities.

In December 2020, the U.S.Congress passed the COVID-Relief and Omnibus Spending Bill, which included $75 million for

the establishment of a strategic U.S.

Uranium Reserve.

Department of Energy (DOE) is working on establishing the parameters of

There will be a different outcome as a President Biden appointed Secretary of Energy transitioned into leading DOE and the

focus has shifted toward climate change.

Vanadium Section 232 Investigation

In the United States, a petition for an investigation under Section

232 of the Trade Expansion Act of 1962 (U.S) was requested by two domestic companies in November 2019.

On June 2, 2020, the U.S.

of Commerce, Wilbur Ross, initiated an investigation into whether the present quantities or circumstances of vanadium imports into the

United States threaten to impair the national security.

The initiation of this investigation created a 270 day window, which lasts until

February 2021, to compile and deliver a report to the President of the United States.

The Section 232 National Security Investigation

of Imports of Vanadium was concluded and a report submitted to President Biden on February 22, 2021.

The President has 90 days to decide

if he concurs with the findings and recommendations and determine whether to take an action to mitigate the impairment of national security.

As a remedy, the petitioners requested a 40% tariff on vanadium imports from all sources and the establishment of a stockpiling program.

Separate tariff rate quotas were requested for refined vanadium products.

Western has submitted survey data and continues to support this

investigation and remedies that level the playing field for U.S.

domestic producers versus foreign state-sponsored competitors.

Paycheck Protection Program Loan

On May 6, 2020, the Company obtained the

PPP Loan of $73,116.

The loan had a fixed interest rate of 1%, required the Company to make seventeen (17) monthly payments, after

a seven months deferral period, and had a maturity date of May 6, 2022.

The entirety of the loan principal was eligible for forgiveness

to the extent that the proceeds are utilized toward permissible expenditures within the initial period.

On December 2, 2020, the

Company received notice from the U.S.

Small Business Association that the entire PPP Loan balance and accrued interest would be

forgiven in full on such date.

The Company recorded the loan forgiveness as other income in the Company’s consolidated statement

of operations.

COVID-19 Coronavirus

In December 2019, a novel strain of coronavirus,

COVID-19, was reported to have surfaced in Wuhan, China.

Since then, the COVID- 19 coronavirus has spread to multiple countries,

including the United States and Canada.

As the COVID-19 coronavirus continues to spread in the United States and Canada, we may

experience disruptions that could severely impact our business.

The global outbreak of the COVID-19 coronavirus continues to evolve

The extent to which the COVID-19 coronavirus may impact our business will depend on future developments, which are highly

uncertain and cannot be predicted with confidence, such as the ultimate geographic spread of the disease, the duration of the outbreak,

travel restrictions and social distancing in the United States, Canada and other countries, business closures or business disruptions

and the effectiveness of actions taken in the United States, Canada and other countries to contain and treat the disease.

Year Ended December 31, 2020 as Compared to the Year Ended

December 31, 2019

The following table presents the Company’s financial results

for the years ended December 31, 2020 and 2019.

For the Years Ended

Lease revenue

Mining expenditures

Professional fees

General and administrative

Consulting fees

Total operating expenses

Operating loss

Interest expense, net

Warrant modification expense

Gain on forgiveness of debt

Other Comprehensive income (expense)

Foreign exchange (loss) gain

Comprehensive Loss

Net loss per share - basic and diluted

Our consolidated net loss for the years ended December 31, 2020

and 2019 was $2,392,890 and $2,110,227 or $0.08 and $0.07 per share, respectively.

The principal components of these year over

year changes are discussed below.

Our comprehensive loss for the years ended December 31, 2020

and 2019 was $2,503,750 and $2,066,741, respectively.

Our revenue for the years ended December 31, 2020 and 2019 was

$54,620 and $44,620, respectively.

This revenue resulted from lease revenue pursuant to a July 2017 oil and gas lease agreement,

which was extended for an additional three years in 2020, February 2018 pipeline easement, and July 2018 right-of-way agreement.

This revenue is derived from the Weld County Colorado (DJ-Basin) oil and gas property acquired in the Black Range Minerals acquisition.

Mining Expenditures

Mining expenditures for the year ended December 31, 2020 were

$393,182 as compared to $466,117 for the year ended December 31, 2019.

The decrease in mining expenditures of $72,935, or 15.6%

was principally attributable to the Sunday Mine Complex project’s disproportionately larger exploration, development, and

mining expenditures during 2019 versus the surface infrastructure portion of the projects conducted during 2020.

Professional Fees

Professional fees for the year ended December 31, 2020 were $299,908 as

compared to $362,698 for the year ended December 31, 2019.

The decrease in professional fees of $62,790, or 17.3% was due to a $31,123

decrease in professional services utilization and $21,890 decrease in investor relations expenditure.

General and Administrative

General and administrative expenses for the year ended December 31, 2020

were 1,136,049 as compared to $1,122,591 for the year ended December 31, 2019.

The increase in general and administrative expense of $13,458,

or 1.2% is due to a $87,581 increase in payroll and stock based compensation, offset by a $53,160 decrease due to reduced 2020 travel

and convention expenditures and $25,373 in reduced utilities costs from not having the mines open during 2020.

Consulting Fees

Consulting fees for the year ended December 31, 2020 were $39,137

as compared to $138,096 for the year ended December 31, 2019.

The decrease in consulting fees of $98,959, or 71.7% was principally

due to the Company’s reduced utilization of consultants during the current period.

Interest Expense, net

Interest expense, net, for the year ended December 31, 2020

was $13,338 as compared to $65,345 for the years ended December 31, 2019.

The decrease of interest expense, net, of $52,007 was

due to the acceleration of amortization expense in 2019 on the Van 4 Mine as it was placed into reclamation.

Warrant Modification Expense

Warrant modification expense for the year ended December 31,

2020 was $639,012 as compared to $0 for the year ended December 31, 2019.

The increase in warrant modification expense relates

to the Company’s decision on April 20, 2020 to extend warrants issued to investors during various 2018 private placements

and amend the trigger price in the acceleration clause for each tranche of warrants, resulting in a warrant modification expense

Gain on Forgiveness of Debt

Gain on forgiveness of debt for the year ended December 31,

2020 was $73,116 as compared to $0 for the year ended December 31, 2019.

The gain on forgiveness of debt relates to the Company

having its PPP Loan forgiven by the U.S.

Small Business Association in December 2020.

Foreign Exchange

Foreign exchange (loss) gain for the year ended December 31,

2020 was $(110,860) as compared to $43,486 for the year ended December 31, 2019.

The increase of the foreign exchange loss of $154,346

is primarily due to a swing from a gain in 2019 to a loss in 2020 from holding cash balances in Canadian Dollars and the translation

loss from using United Stated Dollars as the reporting currency.

Liquidity and Capital Resources

The Company’s cash balance as of December 31, 2020 was

The Company’s cash position is highly dependent on its ability to raise capital through the issuance of debt and

equity and its management of expenditures for mining development and for fulfillment of its public company reporting responsibilities.

Management believes that in order to finance the development of the mining properties and Kinetic Separation, the Company will

be required to raise additional capital by way of debt and/or equity.

The Company could potentially require additional capital

in 2021 if the scope of the Sunday Mine Complex expands.

This outlook is based on the Company’s current financial position

and is subject to change if opportunities become available based on current exploration program results and/or external opportunities.

Net cash used in operating activities

Net cash used in operating activities was $1,513,626 for the

year ended December 31, 2020, as compared with $1,784,544 for the year ended December 31, 2019.

Of the $1,513,626 in net cash

used in operating activities, $2,392,890 is derived from our net loss before non-cash adjustments.

During the years ended December

31, 2020, $10,628 represented an increase in depreciation, $15,712 represented an increase in accretion of reclamation liability,

$73,116 represented a gain on forgiveness of debt, $204,808 represented an increase in stock based compensation, $639,012 represented

an increase in warrant modification expense, $67,029 represented an increase in prepaid expenses and other current assets, $110,543

represented a decrease in accounts payable and accrued expenses, and $125,380 represented an increase in deferred revenue.

Net cash used in investing activities

Net cash used in investing activities was $0 for the year ended

December 31, 2020, as compared with $71,042 for the year ended December 31, 2019.

This capital expenditure in 2019 represents the

initiation of expenditures needed to re-open the Sunday Mine Complex.

Net cash provided by financing activities

Net cash provided by financing activities for the years ended

December 31, 2020 and 2019 were $73,116 and $2,996,911, respectively.

The Company applied for and received $73,116 in the form

of a PPP Loan on May 6, 2020 from the U.S.

Small Business Association, as discussed above, which was forgiven on December 2, 2020.

Reclamation Liability

The Company’s mines are subject to

certain asset retirement obligations, which the Company has recorded as reclamation liabilities.

The reclamation liabilities of

the United States mines are subject to legal and regulatory requirements, and estimates of the costs of reclamation are reviewed

periodically by the applicable regulatory authorities.

The reclamation liability represents the Company’s best estimate of

the present value of future reclamation costs in connection with the mineral properties.

The Company determined the gross reclamation

liabilities of the mineral properties as of December 31, 2020 and 2019, to be approximately $906,811 and $897,662, respectively.

On March 2, 2020, the Colorado Mined Land Reclamation Board (“MLRB”) issued an order vacating the Van 4 Temporary Cessation,

terminating mining operations and ordering commencement of final reclamation.

The Company has begun the reclamation of the Van

The reclamation cost is fully covered by the reclamation bonds posted upon acquisition of the property.

The Company adjusted

the fair value of its reclamation obligation for the Van 4 Mine.

The portion of the reclamation liability related to the Van 4

Mine, and its related restricted cash are included in current liabilities, and current assets, respectively, at a value of $75,057.

The Company expects to begin incurring the reclamation liability after 2054 for all mines that are not in reclamation and accordingly,

has discounted the gross liabilities over their remaining lives using a discount rate of 5.4% to net discounted aggregated values

as of December 31, 2020 and 2019 of $309,940 and $294,228, respectively.

The gross reclamation liabilities as of December 31, 2020

and 2019 are secured by financial warrantees in the amount of $906,811 and $897,662, respectively.

Oil and Gas Lease and Easement

On July 18, 2017, an oil and gas lease became effective with

respect to minerals and mineral rights owned by the Company of approximately 160 surface acres of the Company’s property

As consideration for entering into the lease, the Company received $120,000 during the third quarter of 2017.

lease will be in force for an initial term of three years and may be extended by the lessee at 150% of the initial rate.

has also agreed to pay the Company a royalty of 18.75% of the lessee’s revenue attributed to oil and gas produced, saved,

and sold attributable to the net mineral interest.

The Company is recognizing the initial payment incrementally over the term of

On February 26, 2018, the Company entered into a further agreement

with the same entity as the oil and gas lease to provide them with an easement to an additional part of the Company’s property

solely for the purposes of transporting the oil and gas extracted via a pipeline.

As consideration for the easement, the Company

received $36,960 during the first quarter of 2018.

The Company is recognizing this payment incrementally over the eight-year term

of the easement.

On June 23, 2020, the same entity discussed above elected to

extend the oil and gas lease easement for three additional years commencing on the date the lease would have previously expired.

During the years ended December 31, 2020 and 2019, the Company

recognized aggregate revenue of $54,620 and $44,620, respectively, under these oil and gas lease arrangements.

In early 2020, Bison Oil & Gas traded this lease to Mallard Exploration

(“Mallard”).

Mallard subsequently filed an application with the Colorado Oil & Gas Conservation Commission (“COGCC”)

to update the permitting to create a new pooled unit.

In late 2020, Mallard began development of the pooled unit.

31, 2021, the drilling portion of the project had been completed for the eight horizontal wells named Blue Teal Fed.

Seven wells were

drilled to a 2.5 miles lateral length and one well was drilled to a 3.0 mile lateral length.

These DJ-Basin wells target the Niobrara

During May 2021, Mallard will commence the well completion stage, fracking, and flow back.

Despite some weather delays over

the winter, the Operations Plan remains close to schedule and production is projected to commence during the third quarter of 2021.

production, the Company will receive a net royalty of 1/16th.

Related Party Transactions

The Company has transacted with related parties pursuant to

service arrangements in the ordinary course of business, as follows:

Prior to the acquisition of Black Range, Mr.

George Glasier,

the Company’s CEO, who is also a director (“Seller”), transferred his interest in a former joint venture with

Ablation Technologies, LLC to Black Range.

In connection with the transfer, Black Range issued 25 million shares of Black Range

common stock to Seller and committed to pay AUD $500,000 (USD $392,086 as of December 31, 2020) to Seller within 60 days of the

first commercial application of the Kinetic Separation.

Western assumed this contingent payment obligation in connection with the

acquisition of Black Range.

At the date of the acquisition of Black Range, this contingent obligation was determined to be probable.

Since the deferred contingent consideration obligation is probable and the amount estimable, the Company recorded the deferred

contingent consideration as an assumed liability in the amount of $392,086 and $351,099 as of December 31, 2020 and 2019, respectively.

Going Concern

The Company has incurred continuing losses from its operations

and as of December 31, 2020, the Company had an accumulated deficit of $11,087,459 and working capital of $162,375.

Since inception, the Company has met its liquidity requirements

principally through the issuance of notes and the sale of its common shares.

The Company’s ability to continue its operations and to

pay its obligations when they become due is contingent upon the Company obtaining additional financing.

Management’s plans

include seeking to procure additional funds through debt and equity financings, to secure regulatory approval to fully utilize

its Kinetic Separation and to initiate the processing of ore to generate operating cash flows.

There are no assurances that the Company will be able to raise

capital on terms acceptable to the Company or at all, or that cash flows generated from its operations will be sufficient to meet

its current operating costs and required debt service.

If the Company is unable to obtain sufficient amounts of additional capital,

it may be required to reduce the scope of its planned product development, which could harm its financial condition and operating

results, or it may not be able to continue to fund its ongoing operations.

These conditions raise substantial doubt about the Company’s

ability to continue as a going concern to sustain operations for at least one year from the issuance of the accompanying financial

The accompanying consolidated financial statements do not include any adjustments that might result from the outcome

of these uncertainties.

Off Balance Sheet Arrangements

As of December 31, 2020, there were no off-balance sheet transactions.

The Company has not entered into any specialized financial agreements to minimize its investment risk, currency risk or commodity

Critical Accounting Estimates and

The preparation of these consolidated financial statements requires

management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the

date of the consolidated financial statements and reported amounts of expenses during the reporting period.

Significant assumptions about the future and other sources of

estimation uncertainty that management has made at the end of the reporting period, that could result in a material adjustment

to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, include, but

are not limited to, the following:

fair value of transactions involving common shares, assessment of the useful life and evaluation

for impairment of intangible assets, valuation and impairment assessments on mineral properties, deferred contingent consideration,

the reclamation liability, valuation of stock-based compensation, valuation of available-for-sale securities and valuation of long-term

debt, HST and asset retirement obligations.

Other areas requiring estimates include allocations of expenditures, depletion and

amortization of mineral rights and properties.

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

Not applicable.

FINANCIAL STATEMENTS AND SUPPLEMENTARY

This information appears following Item 17 of this report and

is included herein by reference.

CHANGES IN AND DISAGREEMENTS

WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Our common shares trade on the OTCQX Market under

the “WSTRF” trading symbol.

Our common shares are listed for trading in Canada

on the CSE under the symbol “WUC”.

According to our transfer agent, as of March 31,

2022 there were approximately 3,400 holders of record of our common shares.

Not Applicable

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

What changed 10-K

Item 5. Market for Registrant’s Common Equity