What changed in this filing

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Item 9A. Controls and Procedures

2022-04-15 compared with 2021-04-15 · 1345 added, 1378 removed, 305 unchanged (90% of the section changed)

1 unchanged sentence

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, our principal executive

officer and principal financial officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e)

and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

Based on their evaluation of our

disclosure controls and procedures, our principal executive officer and principal financial officer concluded that our disclosure controls

and procedures were not effective as of December 31, 2020, to ensure that information required to be disclosed by the Company in the reports

that we file or submit under the Exchange Act is (a) recorded, processed, summarized and reported within the time periods specified in

the SEC’s rules and forms and (b) accumulated and communicated to management, including our principal executive officer and principal

financial officer, as appropriate to allow for timely decisions regarding required disclosure.

As of the end of the period covered by this report,

our principal executive officer and principal financial officer evaluated the effectiveness of our disclosure controls and procedures

(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

Based on their evaluation of our disclosure controls and procedures, our principal executive officer and principal financial officer

concluded that our disclosure controls and procedures were not effective as of December 31, 2021, to ensure that information required

to be disclosed by the Company in the reports that we file or submit under the Exchange Act is (a) recorded, processed, summarized and

reported within the time periods specified in the SEC’s rules and forms and (b) accumulated and communicated to management, including

our principal executive officer and principal financial officer, as appropriate to allow for timely decisions regarding required disclosure.

Description of Material Weakness

Management has concluded that the Company’s

disclosure controls and procedures were not effective as of December 31, 2020, due to the lack of segregation of duties and the

failure to report disclosures on a timely basis.

Management has concluded that the Company’s

disclosure controls and procedures were not effective as of December 31, 2021, due to the lack of segregation of duties and the failure

to report disclosures on a timely basis.

Remediation of Material Weakness

Management has developed a plan and related

timeline for the Company to design a set of control procedures and the related required documentation thereof in order to address

this material weakness.

However, its implementation was delayed as a decline in commodity prices caused the Company to pursue aggressive

cost cutting and de-staffing which has increasingly concentrated duties on the remaining staff.

Until the Company has the proper

staff in place, it likely will not be able to remediate its material weaknesses.

Management’s Annual Report on Internal Control Over

Financial Reporting

Management is responsible for establishing and maintaining adequate

internal control over financial reporting.

Internal control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in

accordance with generally accepted accounting principles.

A company’s internal control over financial reporting includes

those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly

reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are

recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,

and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors

of the company;

and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use

or disposition of the company’s assets that could have a material effect on the financial statements.

This annual report does not include an attestation report of

our independent registered public accounting firm regarding internal control over financial reporting.

Management’s report

was not subject to attestation by our independent registered public accounting firm pursuant to a provision under the Dodd-Frank

Wall Street Reform and Consumer Protection Act that grants a permanent exemption for non-accelerated filers from complying with

Section 404(b) of the Sarbanes-Oxley Act of 2002.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting

identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 under the Exchange Act that occurred

during the Company’s fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal

Management has developed a plan and related timeline

for the Company to design a set of control procedures and the related required documentation thereof in order to address this material

However, its implementation was delayed as a decline in commodity prices caused the Company to pursue aggressive cost cutting

and de-staffing which has increasingly concentrated duties on the remaining staff.

Until the Company has the proper staff in place, it

likely will not be able to remediate its material weaknesses.

Management’s Annual Report on Internal

Control Over Financial Reporting

Management is responsible for establishing and

maintaining adequate internal control over financial reporting.

Internal control over financial reporting is a process designed to provide

reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes

in accordance with generally accepted accounting principles.

A company’s internal control over financial reporting includes those

policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the

transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary

to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures

of the company are being made only in accordance with authorizations of management and directors of the company;

and (iii) provide reasonable

assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that

could have a material effect on the financial statements.

This annual report does not include an attestation

report of our independent registered public accounting firm regarding internal control over financial reporting.

Management’s report

was not subject to attestation by our independent registered public accounting firm pursuant to a provision under the Dodd-Frank Wall

Street Reform and Consumer Protection Act that grants a permanent exemption for non-accelerated filers from complying with Section 404(b)

of the Sarbanes-Oxley Act of 2002.

Changes in Internal Control over Financial

There have been no changes in our internal control

over financial reporting identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 under the Exchange

Act that occurred during the Company’s fourth fiscal quarter that have materially affected, or are reasonably likely to materially

affect, our internal control over financial reporting.

OTHER INFORMATION.

DIRECTORS, EXECUTIVE OFFICERS

AND CORPORATE GOVERNANCE

The following table sets forth information regarding the members

of our board of directors (the “Board”) and our executive officers.

George Glasier

President, Chief Executive Officer and Director

Chief Financial Officer

DISCLOSURE REGARDING FOREIGN JURISDICTIONS

THAT PREVENT INSPECTIONS.

DIRECTORS, EXECUTIVE

OFFICERS AND CORPORATE GOVERNANCE

The following table sets forth information regarding the members of

our board of directors (the “Board”) and our executive officers.

Chief Executive Officer and Director

Financial Officer

Director, Chairman

Andrew Wilder

Executive Officers

George Glasier, J.D ., our Director, President and Chief

Executive Officer, founded Western Uranium & Vanadium Corp.

He has over thirty years’

experience in the uranium industry

in the United States, with extensive experience in sales and marketing;

project development and permitting uranium processing facilities.

George Glasier, J.D ., founded Western Uranium & Vanadium

and has served as a Director and as President and Chief Executive Officer since 2014.

He has over thirty years’ experience

in the uranium industry in the United States, with extensive experience in sales and marketing;

project development and permitting uranium

processing facilities.

He is the founder of Energy Fuels Inc.

(Volcanic Metals Exploration Inc.) and served as its Chief Executive Officer and President from

January 2006 to March 2010.

He was responsible for assembling a first-class management team, acquiring a portfolio of uranium projects,

and leading the successful permitting process that culminated in the licensing of the Piñon Ridge uranium mill;

planned for construction

in Western Montrose County, Colorado.

He began his career in the uranium industry in the late 1970’s with Energy Fuels Nuclear,

which built and operated the White Mesa Mill near Blanding, Utah, becoming the largest uranium producer in the United States.

Robert Klein is Chief Financial Officer of Western

Uranium & Vanadium Corp.

He is in charge of accounting and finance, and is closely involved in capital markets activities,

corporate transactions, investor relations, public relations, and legal, and compliance.

(Volcanic Metals Exploration Inc.) and served as its Chief Executive Officer

and President from January 2006 to March 2010.

He was responsible for assembling a first-class management team, acquiring a portfolio

of uranium projects, and leading the successful permitting process that culminated in the licensing of the Piñon Ridge uranium

planned for construction in Western Montrose County, Colorado.

He began his career in the uranium industry in the late 1970’s

with Energy Fuels Nuclear, which built and operated the White Mesa Mill near Blanding, Utah, becoming the largest uranium producer in

the United States.

Robert Klein has served as Chief Financial Officer of

Western Uranium & Vanadium Corp since 2016.

He is in charge of accounting and finance, and is closely involved in capital markets

activities, corporate transactions, investor relations, public relations, and legal, and compliance.

Formerly, Mr.

Klein served as Vice President

Finance and had leading roles in reporting, corporate transactions, and Western’s public listings on the CSE and OTCQX.

Klein served as Vice

President Finance and had leading roles in reporting, corporate transactions, and Western’s public listings on the CSE and OTCQX.

Klein was formerly the Chief Operating Officer of Cross River Group and began his association with Western on an Operating Partner

basis after the formation of Western’s predecessor company, Pinon Ridge Mining, LLC.

Previously, Mr.

Klein was a Managing Director

at Analytical Research, an alternative investments research firm.

He has a broad financial background derived from senior operating

and investment roles with asset managers and through Exeter Analytics, a consulting firm he founded.

Klein was formerly the

CFO of Five Points Capital, a hedge fund spin-out from Soros Fund Management.

After having begun his career in public accounting,

Klein worked for Lehman Brothers, an investment bank, and William E.

Simon & Sons, a merchant bank and private investment

Rob holds the Chartered Financial Analyst designation, received an M.B.A.

Klein was a Managing Director at

Analytical Research, an alternative investments research firm.

He has a broad financial background derived from senior operating and investment

roles with asset managers and through Exeter Analytics, a consulting firm he founded.

Klein was formerly the CFO of Five Points Capital,

a hedge fund spin-out from Soros Fund Management.

After having begun his career in public accounting, Mr.

Klein worked for Lehman Brothers,

an investment bank, and William E.

Simon & Sons, a merchant bank and private investment firm.

Rob earned the Chartered Financial Analyst

designation, received an M.B.A.

from the Robert H.

Smith School of Business at

the University of Maryland and a B.S.

in Accounting from George Mason University.

Smith School of Business at the University of Maryland and a B.S.

in Accounting from

George Mason University.

Non-Employee Directors

Andrew Wilder serves

as a Director for Western Uranium & Vanadium Corporation.

He is the Founder and Chief Executive Officer of the Cross River

Group, a firm that provides capital, strategic business development and operations to alternative asset managers and operating

Prior to founding Cross River, Mr.

Wilder co-founded and was the Chief Operating Officer for Kiski Group, an advisory

firm organized in 2009 to help institutions develop their alternative manager platforms by helping vet managers and offer infrastructure

solutions in areas of investment and business risk management.

Wilder co-founded and served as Chief Operating Officer

and Chief Financial Officer of North Sound Capital LLC, a long/short equity hedge fund manager.

North Sound launched with $15 million

in July of 2001 and reached $3 billion AUM and 65 employees within 5 years.

Wilder was responsible for building and overseeing

all aspects of the business ex-research.

Wilder also co-founded Columbus Avenue Consulting, an independent fund administration

business with 90 clients and $7 billion in AUA when it was subsequently sold in 2012.

Wilder’s prior career included

heading operations for C.

Blair Asset Management, a $500 million long/short equity hedge fund, and serving as a Manager in audit

of Deloitte & Touche (in their Cayman Islands and Toronto practices).

Wilder received the Chartered Accountant (Canada)

designation, holds the CFA designation, and received an MBA from the University of Toronto and a BA from the University of Western

Bryan Murphy is Founder

of Magellan Limited, an advisory firm focusing on providing strategic, M&A, and financial advisory services and currently serves

as CFO and Head of Finance for Biome Renewables Inc., an early stage renewable energy innovation and industrial design company.

Andrew Wilder serves as

a Director and the Chairman of the Audit Committee for Western Uranium & Vanadium Corporation, positions he has held since 2014.

is the Founder and the Chief Executive Officer of Cross River Infrastructure Partners, a platform designed to accelerate global sustainability

through the development and construction of infrastructure projects deploying transformative industrial technologies.

Areas of focus include

capturing and sequestering carbon emissions, generating green hydrogen and ammonia, generating clean power with advanced small modular

nuclear reactors, and upcycling biowaste into renewable natural gas and alternative protein.

Wilder is also currently a Board Member

for Bedford 2030, a community-based climate action non-profit organization for the Township of Bedford, New York.

In 2011, prior to launching

Cross River Infrastructure Partners, Mr.

Wilder founded and managed the Cross River Group, an advisory business providing capital and

business development services to alternative asset managers and institutions.

Wilder co-founded and served as Chief Operating

and Chief Financial Officer for North Sound Capital LLC, an equity hedge fund manager with $3 billion peak assets under management.

Wilder’s prior career included serving as a Manager in the audit group of Deloitte.

Wilder received the Chartered Accountant

(Canada) designation, holds the CFA designation, and received an MBA from the University of Toronto and a BA from the University of Western

Bryan Murphy has served as a

Director of Western Uranium & Vanadium Corp.

He is the founder of Magellan Limited, an advisory firm focusing on providing

strategic, M&A, and financial advisory services and currently serves as CFO and Head of Finance for Biome Renewables Inc., an early

stage renewable energy innovation and industrial design company.

Formerly, Mr.

Murphy was Co-Founder and Managing Partner of Quest Partners, a boutique investment bank that focuses on the provision

of M&A, corporate finance, and business strategy services.

In these capacities, Mr.

Murphy has developed extensive international

experience and relationships advising high-growth businesses across North America, Europe, and the Middle East.

In the prior dozen

Murphy held senior management roles at Canadian Tire Corporation overseeing divisions and business lines.

Additionally,

Murphy was formerly a board member of Covenant House Toronto, one of Canada’s largest homeless youth agencies.

has an Honours Bachelor of Arts in Business Administration majoring in Finance and an MBA with Distinction from the University

of Western Ontario Richard Ivey School of Business.

Bryan earned the ICD.D designation from the Rotman School of Management at

the University of Toronto and the Institute of Corporate Directors.

Involvement of Officers and Directors

in Certain Legal Proceedings

None of our officers and directors

has filed for bankruptcy, been convicted in a criminal proceeding or been the subject of any order, judgment, or decree permanently,

temporarily, or otherwise limiting activities (1) in connection with the sale or purchase of any security or commodity or in connection

with any violation of Federal or State securities laws or Federal commodities laws, (2) engaging in any type of business practice,

or (3) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker,

leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission or an associated person of

any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director

or employee of an investment company, bank, savings and loan association or insurance company, or engaging in or continuing any

conduct or practice in connection with such activity.

Murphy was Co-Founder and Managing Partner of Quest Partners,

a boutique investment bank that focuses on the provision of M&A, corporate finance, and business strategy services.

In these capacities,

Murphy has developed extensive international experience and relationships advising high-growth businesses across North America, Europe,

and the Middle East.

In the prior dozen years, Mr.

Murphy held senior management roles at Canadian Tire Corporation overseeing divisions

and business lines.

Additionally, Mr.

Murphy was formerly a board member of Covenant House Toronto, one of Canada’s largest homeless

youth agencies.

Bryan has an Honours Bachelor of Arts in Business Administration majoring in Finance and an MBA with Distinction from

the University of Western Ontario Richard Ivey School of Business.

Bryan earned the ICD.D designation from the Rotman School of Management

at the University of Toronto and the Institute of Corporate Directors.

Involvement of Officers

and Directors in Certain Legal Proceedings

During the past ten years, none of the persons

serving as our executive officers and/or directors have been the subject of any of the following legal proceedings that are required to

be disclosed pursuant to Item 401(f) of Regulation S-K, including:

(a) any bankruptcy petition filed by or against any business of which

such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

any criminal convictions or any criminal proceedings in which the person is a named subject (excluding traffic violations and other minor

(c) any order, judgment, or decree permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement

in any type of business, securities or banking activities;

(d) any finding by a court, the SEC or the CFTC to have violated a federal

or state securities or commodities law, any law or regulation respecting financial institutions or insurance companies, or any law or

regulation prohibiting mail or wire fraud in connection with any business entity;

or (e) any sanction or order of any self-regulatory

organization, any registered entity, or any equivalent exchange, association, entity or other organization that has disciplinary authority

over its members or persons associated with a member.

Further, no such legal proceedings are believed to be contemplated by governmental

authorities against any director or executive officer.

Family Relationships

There are no family relationships among

our directors and executive officers.

There are no family

relationships among our directors and executive officers.

Code of Ethics

We have adopted a code of ethics that

applies to our officers, directors, employees and consultants.

A copy of the code of ethics will be sent, free of charge, to any

person who sends a written request for a copy to Western Uranium & Vanadium Corp., 330 Bay Street, Toronto, Ontario, Canada

We have adopted a code

of ethics that applies to our officers, directors, employees and consultants.

A copy of the code of ethics will be sent, free of charge,

to any person who sends a written request for a copy to Western Uranium & Vanadium Corp., 330 Bay Street, Toronto, Ontario, Canada

Audit Committee

Western has established a separately

designated audit committee of the Board of Directors consisting of Andrew Wilder, George Glasier, and Bryan Murphy.

Our audit committee

is responsible for oversight of audits, corporate governance, board nominations, and executive compensation.

The Board has determined

that one of its members, Andrew Wilder, who has previously served as Western’s Chief Financial Officer, qualifies as an “audit

committee financial expert”.

Western has established a separately designated

audit committee of the board of directors (the “Board”) consisting of Andrew Wilder, George Glasier, and Bryan Murphy.

audit committee is responsible for oversight of audits, corporate governance, board nominations, and executive compensation.

has determined that one of its members, Andrew Wilder, who has previously served as Western’s Chief Financial Officer, qualifies

as an “audit committee financial expert”.

We have also determined that Mr.

Wilder and Mr.

Murphy are independent directors as defined in

Nasdaq Listing Rule 5605(a)(2).

EXECUTIVE COMPENSATION

Summary Compensation Table

The following table sets forth information

regarding compensation earned by our named executive officers:

The following table sets forth information regarding

compensation earned by our named executive officers:

Name and Principal Position

George Glasier (1)

President and Chief Executive Officer

Robert Klein (2)

Chief Financial Officer

Glasier chose to decline his 2018 stock option grant, requesting instead that those options be reallocated to further incentivize other members of management.

On January 6, 2020, Mr.

Glasier was granted an option to purchase 125,000 of our common shares at an exercise price of CAD $1.03 per share which expires five years from the date of issuance.

This option vested in two installments:

two-thirds on the date of grant, and one-third on June 30, 2020.

On January 6, 2020, Mr.

Klein was granted an option to purchase 125,000 of our common shares at an exercise price of CAD $1.03 per share which expires five years from the date of issuance.

This option vested in two installments:

two-thirds on the date of grant, and one-third on June 30, 2020.

January 6, 2020, Mr.

Glasier was granted an option to purchase 125,000 of our common shares at an exercise price of CAD $1.03 per

share which expires five years from the date of issuance.

This option vested in three installments:

one-third on the date of grant,

one-third on January 31, 2020 and one-third on June 30, 2020.

Klein was granted an option to purchase 125,000 of our common shares at an exercise price of CAD $1.03 per share which

expires five years from the date of issuance.

This option vested in three installments:

one-third on the date of grant, one-third

on January 31, 2020 and one-third on June 30, 2020.

Employment Agreements

George Glasier

On February 8, 2017, the Company entered into an employment agreement

with George Glasier, its Chief Executive Officer.

The employment agreement automatically renews each year unless either party provides

a 90-day advance written notice of their desire to not renew the agreement.

The employment agreement provides for a base salary of $180,000

per annum and a discretionary annual cash bonus to be determined by the Company’s Board of Directors.

On May 30, 2019, the Board

of Directors approved an addendum to Mr.

Glasier’s employment agreement, increasing his annual salary from $180,000 to $220,000.

Pursuant to the employment agreement, if the Company terminates the employment agreement without cause, or if a change of control occurs,

the Company is required to pay to Mr.

Glasier a lump sum payment equal to two and one-half times his annual base salary.

On February 8, 2017, the Company entered into

an employment agreement with George Glasier, its Chief Executive Officer.

The employment agreement automatically renews each year unless

either party provides a 90-day advance written notice of their desire to not renew the agreement.

The employment agreement provides for

a base salary of $180,000 per year, the amount of which is subject to review by the board of directors at least annually.

The agreement

also provides for a discretionary annual cash bonus to be determined by the Board.

On May 30, 2019, the Board approved an addendum to

Glasier’s employment agreement, increasing his annual base salary from $180,000 to $220,000.

In December 2021, the Board approved

an increase to Mr.

Glasier’s base salary from $220,000 to $250,000.

Pursuant to the employment agreement, if the Company terminates

the employment agreement without cause, or if a change of control occurs, the Company is required to pay to Mr.

Glasier a lump sum payment

equal to two and one-half times his annual base salary.

On November 12, 2020, the Company entered into a new employment agreement

12 unchanged sentences

Klein is eligible to participate generally in any employee benefit plan of the Company

or its affiliates and to receive annual stock option grants under the Company’s incentive stock option plan in amounts to be determined

and approved by the Board.

Equity Awards Table

The following table sets forth unexercised

options, unvested stock and equity incentive plan awards outstanding for our named executive officers as of December 31, 2020.

Outstanding Option Awards at Fiscal

Year-End for 2020

Outstanding Equity

The following table sets forth unexercised options,

unvested stock and equity incentive plan awards outstanding for our named executive officers as of December 31, 2021.

Outstanding Option Awards at Fiscal Year-End

Number of securities

8 unchanged sentences

Director Compensation

The following table sets forth a summary

of the compensation for the fiscal year ended December 31, 2020 earned by each director who is not a named executive officer and

who served on the Board during the year.

The following table sets forth a summary of the

compensation for the fiscal year ended December 31, 2021earned by each director who is not a named executive officer and who served on

the Board during the year.

Andrew Wilder (1)

Bryan Murphy (2)

Wilder is paid a CAD $2,000 monthly fee for his services

as a Director.

During the year ended December 31, 2020, the Company incurred $18,480 in director fees for Mr.

Wilder’s services.

Wilder was also granted an option to purchase 125,000 of

our common shares at an exercise price of CAD $1.03 per share which expires five years from the date of issuance with a grant date

fair value of $53,839.

The total options were fully vested on September 30, 2020.

Murphy is paid a CAD $5,000 monthly fee for his services

as Chairman and Director.

During the year ended December 31, 2020, the Company incurred $47,133 in director fees for Mr.

Murphy’s

Murphy was also granted an option to purchase 125,000 of

our common shares at an exercise price of CAD $1.03 per share which expires five years from the date of issuance with a grant date

fair value of $53,839.

The total options were fully vested on September 30, 2020.

SECURITY OWNERSHIP OF CERTAIN

BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth information with respect to the

beneficial ownership of our class of common shares as of April 15, 2021 by:

each person, or group of affiliated persons, known to us to beneficially own more than 5% of our outstanding common shares;

each of our directors and executive officers;

all of our directors and executive officers as a group.

The amounts and percentages of common shares beneficially owned

are reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities.

The information

relating to our 5% beneficial owners is based on information we received from such holders.

Under the rules of the SEC, a person

is deemed to be a “beneficial owner”

of a security if that person has or shares voting power, which includes the power

to vote or direct the voting of a security, or investment power, which includes the power to dispose of or to direct the disposition

Wilder is paid a CAD

$2,000 monthly fee for his services as a Director.

During the year ended December 31, 2021, the Company incurred $19,147 in director

Wilder’s services.

Murphy is paid a CAD$5,000

monthly fee for his services as Chairman and Director.

During the year ended December 31, 2021, the Company incurred $47,868 in director

Murphy’s services.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth information with

respect to the beneficial ownership of our class of common shares as of April 13, 2022 by:

person, or group of affiliated persons, known to us to beneficially own more than 5% of our

outstanding common shares;

of our directors and executive officers;

of our directors and executive officers as a group.

The amounts and percentages of common shares

beneficially owned are reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities.

The information relating to our 5% beneficial owners is based on information we received from such holders.

Under the rules of the SEC,

a person is deemed to be a “beneficial owner” of a security if that person has or shares voting power, which includes the

power to vote or direct the voting of a security, or investment power, which includes the power to dispose of or to direct the disposition

of a security.

1 unchanged sentence

ownership within 60 days.

Securities that can be so acquired are deemed to be outstanding for purposes of computing such person’s

ownership percentage, but not for purposes of computing any other person’s percentage.

Securities that can be so acquired are deemed to be outstanding for purposes of computing such person’s

ownership percentage, but not for purposes of computing any other person’s percentage.

Under these rules, more than one person

may be deemed a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to

which such person has no economic interest.

Except as otherwise set forth in the footnotes to the table

below, the address of persons listed below is c/o Western Uranium & Vanadium Corp., 330 Bay Street, Suite 1400, Toronto,

may be deemed a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to which

such person has no economic interest.

Except as otherwise set forth in the footnotes

to the table below, the address of persons listed below is c/o Western Uranium & Vanadium Corp., 330 Bay Street, Suite 1400, Toronto,

Ontario, Canada M5H 2S8.

Unless otherwise indicated in the footnotes, each of the beneficial owners listed has, to our knowledge,

sole voting and investment power with respect to the indicated common shares.

Unless otherwise indicated in the footnotes, each of the beneficial owners listed has, to our knowledge, sole

voting and investment power with respect to the indicated common shares.

Name of Beneficial Owner

2 unchanged sentences

Common Shares (1)

5% or Greater Stockholders

5% or Greater Shareholders

George Glasier

5,269,203 (2)

Directors and Named Executive Officers

George Glasier

5,269,203 (2)

Andrew Wilder

Robert Klein (4)

Bryan Murphy (5)

All executive officers and directors as a group (4 persons)

Based on 36,458,747 common shares outstanding on April 15, 2021 and, with respect to each individual holder, rights to acquire our common shares exercisable within 60 days of April 15, 2021.

Consists of 4,783,333 common shares and 475,000 common shares issuable upon the exercise of stock options held by Mr.

Consists of 725,000 common shares issuable upon the exercise of stock options held by Mr.

Consists of 20,000 common shares and 675,000 common shares

issuable upon the exercise of stock options held by Mr.

Consists of 31,250 common shares, 31,250 common shares issuable upon the exercise of warrants, and 475,000 common shares issuable upon the exercise of stock options held by Mr.

Based on 42,921,644

common shares outstanding on April 13, 2022 and, with respect to each individual holder, rights to acquire our common shares exercisable

within 60 days of April 13, 2022.

Consists of 4,810,869 common

shares and 458,334 common shares issuable upon the exercise of stock options held by Mr.

Consists of 18,328 common

shares and 708,334 common shares issuable upon the exercise of stock options held by Mr.

Consists of 38,358 common shares and 708,334

common shares issuable upon the exercise of stock options held by Mr.

Consists of 31,250 common shares and 31,250 common shares issuable upon the exercise of warrants

beneficially owned indirectly through Magellan Limited, and 608,334 common shares issuable upon the exercise of stock options held by

Equity Compensation Plan Information

The Company maintains an Incentive Stock

Option Plan (the “Plan”) that permits the granting of stock options as incentive compensation.

Shareholders of the

Company approved the Plan on June 30, 2008 and amendments to the Plan on June 20, 2013, and the Board of Directors approved additional

changes to the Plan on September 12, 2015.

The purpose of the Plan is to attract,

retain and motivate directors, management, staff and consultants by providing them with the opportunity, through stock options,

to acquire a proprietary interest in the Company and benefit from its growth.

At December 31, 2020, a total of 2,808,000

stock options issued under the Plan were outstanding.

Company approved the Plan on June 30, 2008 and amendments to the Plan on June 20, 2013, and the board of directors approved

additional changes to the Plan on September 12, 2015 and as of October 1, 2021.

The Plan was amended on October 1, 2021 to allow for

the cashless exercise of stock options, among other things.

The purpose of the Plan is to attract, retain and motivate directors,

management, staff and consultants by providing them with the opportunity, through stock options, to acquire a proprietary interest in

the Company and benefit from its growth.

The Plan is to be administered by the Board in

accordance with all applicable laws and regulations, including the policies of any stock exchange, over-the-counter marketplace, or quotation/system

service upon which the Company’s securities are listed or traded.

The Board is authorized, subject to the provisions of the Plan,

to adopt such rules and regulations as it deems consistent with the Plan’s provisions and, in its sole discretion, to designate options

to purchase shares of the Company pursuant to the Plan.

The Board may delegate to a committee the authority to exercise any or all power

and authority of the Board under the Plan, including the authority with respect to option grants and/or exercises, all to the extent stipulated

by the Board when so delegated.

The Board may authorize one or more individuals of the Company to execute, deliver and receive documents

on behalf of the Board.

At December 31, 2021, a total of 2,324,670 stock

options issued under the Plan were outstanding.

The Plan provides that the aggregate number

of common shares for which stock options may be granted will not exceed 10% of the issued and outstanding common shares at the

time stock options are granted.

At December 31, 2020, a total of 30,083,747 common shares were outstanding, and at that date the

maximum number of stock options eligible for issue under the Plan was 3,008,375.

A stock option exercise price shall not be less

than the most recent share issuance price.

of common shares for which stock options may be granted will not exceed 10% of the issued and outstanding common shares at the time

stock options are granted.

At December 31, 2021, a total of 39,073,122 common shares were outstanding, and at that date the maximum

number of stock options eligible for issue under the Plan was 3,907,312.

A stock option exercise price shall not be less than the

most recent share issuance price.

The maximum term is five years.

There are no specific vesting provisions under the Plan.

Options are non-assignable and non-transferable except that stock options may be transferred to the spouse of an optionee or to

the registered retirement savings plan or registered pension plan of an optionee.

A stock option exercise price shall not

be less than the most recent share issuance price.

The maximum term is five years.

There are no specific vesting provisions under

Options are non-assignable and non-transferable except that stock options may be transferred to the spouse of an optionee

or to the registered retirement savings plan or registered pension plan of an optionee.

The Plan provides that if an optionee’s

employment is terminated for any reason, or if the service of a director, senior executive or consultant of the Company who is

an optionee is terminated, any vested stock option of such optionee may be exercised during a period of ninety (90) days following

the date of termination of such employment or service, as the case may be.

In the case of an optionee’s death, any vested stock

option of such optionee at the time of death may be exercised by his or her heirs or legatees or their liquidator during a period

of one year following such optionee’s death.

The total number of common shares issuable

to any one person during a 12-month period may not exceed ten percent (10%) of the total number of common shares issued and outstanding.

Options granted to consultants providing investor relations activities must vest over 12 months in stages of no more than 25% in

any three-month period.

Also, in any 12-month period, no options exercisable for more than 2% of the Company’s issued and

outstanding shares may be awarded to consultants or employees conducting investor relations activities.

The Plan provides that

where options are cancelled or lapse under the Plan, the associated common shares become available again and new options may be

granted in respect thereof in accordance with the provisions of the Plan.

The Board may make any amendment to the

Plan, without shareholder approval, except an increase in the number of common shares reserved for issue under the Plan or a reduction

of an option exercise price.

The terms of any existing option may not be altered, suspended or discontinued without the consent

in writing of the Optionee.

are non-assignable and non-transferable.

The Plan provides that if an optionee’s employment

is terminated for any reason, or if the service of a director, senior executive or consultant of the Company who is an optionee is terminated,

any vested stock option of such optionee may be exercised during a period of ninety (90) days following the date of termination of such

employment or service, as the case may be.

In the case of an optionee’s death, any vested stock option of such optionee at the time of

death may be exercised by his or her personal representative, heirs or legatees or their liquidator during a period of one year following

such optionee’s death.

The total number of common shares issuable to

any one person during a 12-month period may not exceed ten percent (10%) of the total number of common shares issued and outstanding.

Also, in any 12-month period, no options exercisable for more than 2% of the Company’s issued and outstanding shares may be awarded

to consultants.

The Plan provides that where options are cancelled or lapse under the Plan, the associated common shares become available

again and new options may be granted in respect thereof in accordance with the provisions of the Plan.

The Board may make any amendment to the Plan,

without shareholder approval, except an increase in the number of common shares reserved for issue under the Plan or a reduction of an

option exercise price.

The terms of any existing option may not be altered, suspended or discontinued without the consent in writing

of the Optionee.

Equity Compensation Plan Information

4 unchanged sentences

Equity compensation plans approved by shareholders

Equity compensation plans not approved by shareholders

CERTAIN RELATIONSHIPS AND RELATED

TRANSACTIONS AND DIRECTOR INDEPENDENCE

Equity compensation plans not approved

by shareholders

CERTAIN RELATIONSHIPS

AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Transactions with Related Persons

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.

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 technology.

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

Since the deferred contingent consideration obligation is probable and the amount is 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

December 31, 2019, respectively.

common stock to Seller and committed to pay AUD $500,000 (USD $362,794 as of December 31, 2021) to Seller within 60 days of the first

commercial application of the Kinetic Separation technology.

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 is estimable, the Company recorded the deferred contingent

consideration as an assumed liability in the amount of $362,794 and $392,086 as of December 31, 2021 and 2020, respectively.

Director Independence

The Board of Directors facilitates its exercise of independent

supervision over management by ensuring representation on the Board by directors who are independent of management and by promoting

frequent interaction and feedback.

Directors are considered to be independent if they have no direct

or indirect material relationship with the Company.

A “material relationship”

is a relationship which could, in the

view of the Board, be reasonably expected to interfere with the exercise of a director’s independent judgment.

The Company’s Board currently consists of three directors.

Among this group, Bryan Murphy is the only independent director based upon the tests for independence set forth in National Instrument

52-110 Audit Committees .

SEC rules require a separate determination of independence of

the Company’s directors based on the definition of independence of a U.S.

national securities exchange or inter-dealer quotation

system which has requirements that a majority of the board of directors be independent.

Because the Company’s common shares

are not currently listed on a national securities exchange, it currently uses the definition in Nasdaq Listing Rule 5605(a)(2)

for determining director independence.

Under that definition, only Bryan Murphy would be considered an independent director.

Murphy would also be considered an independent director under Rule 5605(c)(2)’s provisions relating to audit committee composition.

PRINCIPAL ACCOUNTING FEES AND

The board of directors facilitates its exercise

of independent supervision over management by ensuring representation on the Board by directors who are independent of management and

by promoting frequent interaction and feedback.

Directors are considered to be independent if

they have no direct or indirect material relationship with the Company.

A “material relationship” is a relationship which

could, in the view of the Board, be reasonably expected to interfere with the exercise of a director’s independent judgment.

The Company’s Board currently consists of three directors.

Andrew Wilder and Bryan Murphy are independent directors based upon the tests for independence set forth in National Instrument 52-110 Audit

SEC rules require a separate determination of independence of the Company’s

directors based on the definition of independence of a U.S.

national securities exchange or inter-dealer quotation system which has

requirements that a majority of the board of directors be independent.

Because the Company’s common shares are not currently listed

on a national securities exchange, it currently uses the definition in Nasdaq Listing Rule 5605(a)(2) for determining director independence.

Under that definition, Andrew Wilder and Bryan Murphy would be considered independent directors.

Wilder and Mr.

Murphy would also

be considered independent directors under Rule 5605(c)(2)’s provisions relating to audit committee composition.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following table sets forth the aggregate

fees billed by MNP LLP (“MNP”), our independent registered accounting firm for the fiscal years ended December 31,

2020 and December 31, 2019.

fees billed by MNP LLP (“MNP”), our independent registered accounting firm for the fiscal years ended December 31, 2021 and

December 31, 2020.

These fees are categorized as audit fees, audit-related fees, tax fees, and all other fees.

of the services provided in each category is described in the table below.

The nature of the services

provided in each category is described in the table below.

Audit-related fees

All other fees

Consist of fees billed for

professional services rendered for the audit of the consolidated financial statements and review of the quarterly interim consolidated

financial statements.

These fees also include the review of registration statements and the delivery of consents in connection

with registration statements.

Consist of fees billed for professional

services rendered for the audit of the consolidated financial statements and review of the quarterly interim consolidated financial statements.

These fees also include the review of registration statements and the delivery of consents in connection with registration statements.

Audit-related fees:

There were no fees

billed by MNP for professional services rendered for audit-related services for the years ended December 31, 2020 and 2019.

Consists of fees incurred for the Company’s U.S.

Canadian tax preparation fees and tax consulting fees.

In 2021, MNP billed

audit-related fees for preparation and review of an SEC Form S-1 filing and a comment letter.

There were no fees billed by MNP for

professional services rendered for audit-related services for the years ended December 31, 2020.

Consists of fees incurred for the Company’s

and Canadian tax preparation fees and tax consulting fees.

All other fees:

There were no fees billed

by MNP for professional services rendered for other compliance purposes for the years ended December 31, 2020 and 2019.

The Company’s Board of Directors

has established pre-approval policies and procedures, pursuant to which the Board approved the foregoing audit and tax services

provided by MNP in 2020 and 2019 consistent with the Board’s responsibility for engaging Western’s independent auditors.

The Board also considered whether the non-audit services rendered by our independent registered public accounting firm are compatible

There were no fees billed by

MNP for professional services rendered for other compliance purposes for the years ended December 31, 2021 and 2020.

The Company’s board of directors has

established pre-approval policies and procedures, pursuant to which the Board approved the foregoing audit and tax services provided

by MNP in 2021 and 2020 consistent with the Board’s responsibility for engaging Western’s independent auditors.

Board also considered whether the non-audit services rendered by our independent registered public accounting firm are compatible

with an auditor maintaining independence.

The Board has determined that the rendering of such services is compatible with MNP maintaining

its independence.

PART IV –

OTHER INFORMATION

UNREGISTERED SALES OF EQUITY SECURITIES AND USE

The Company did not make any unregistered

sales of equity securities during the quarter ended December 31, 2020.

EXHIBITS, FINANCIAL STATEMENT

The Board has determined that the rendering of such services is compatible with MNP

maintaining its independence.

PART IV – OTHER INFORMATION

FINANCIAL STATEMENT SCHEDULES

Documents Filed as Part of This Report.

1 unchanged sentence

statements are being filed as part of this Annual Report.

Consolidated Financial Statements of Western Uranium & Vanadium Corp.

Consolidated Financial Statements

of Western Uranium & Vanadium Corp.

and Subsidiaries

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm (PCAOB ID:

Consolidated Balance Sheets as of December 31, 2021 and 2020

Consolidated Statements of Operations and Other

Comprehensive Loss for the years ended December 31, 2020 and December 2019

Consolidated Statements of Shareholders’

Equity for the years ended December 31, 2020 and December 31, 2019

Consolidated Statements of Cash Flows for the years ended December 31, 2020 and December 31, 2019

Consolidated Statements of Operations

and Other Comprehensive Loss for the years ended December 31, 2021 and December 2020

Consolidated Statements of Shareholders’ Equity for the years ended December

31, 2021 and December 2020

Consolidated Statements of Cash Flows for the years ended December 31, 2021 and

December 2020

Notes to Consolidated Financial Statements

1 unchanged sentence

are being provided as required by Item 601 of Regulation S-K.

Share Exchange Agreement between Pinon Ridge Mining LLC, Homeland Uranium Inc., Homeland Uranium (Utah), et al., dated November 6, 2014.

Merger Implementation Agreement between Black Range Minerals Limited and Western Uranium Corporation, dated March 20, 2015.

Credit Facility between Western Uranium Corporation and Black Range Minerals Limited, dated March 20, 2015.

Termination and Liquidation Agreement between Ablation Technologies LLC, Black Range Minerals Ablation Holdings Inc.

and Mineral Ablation, LLC dated March 17, 2015

Certificate of Incorporation, as amended.

Amended and Restated By-laws.

Call Option Agreement

Technology License Agreement between Ablation Technologies LLC and Black Range Mineral Ablation Holdings Inc.

Exchange Agreement between Pinon Ridge Mining LLC, Homeland Uranium Inc., Homeland Uranium (Utah), et al., dated November 6, 2014.

Implementation Agreement between Black Range Minerals Limited and Western Uranium Corporation, dated March 20, 2015.

Facility between Western Uranium Corporation and Black Range Minerals Limited, dated March 20, 2015.

and Liquidation Agreement between Ablation Technologies LLC, Black Range Minerals Ablation Holdings Inc.

and Mineral Ablation, LLC

dated March 17, 2015

of Incorporation, as amended.

and Restated By-laws.

Description of Capital Stock

Option Agreement

License Agreement between Ablation Technologies LLC and Black Range Mineral Ablation Holdings Inc.

dated as of March 17, 2015

Incentive Stock Option Plan (Rolling 10%), as amended

Employment Agreement between George Glasier and Western Uranium & Vanadium Corporation dated February 8, 2017

Employment Agreement between Robert Klein and Western Uranium & Vanadium Corporation dated May 12, 2017

Employment Agreement between Robert Klein and Western Uranium & Vanadium Corporation dated November 13, 2017

Addendum to Employment Agreement between George Glasier and Western Uranium & Vanadium Corporation dated May 30, 2019

Employment Agreement, dated November 12, 2020, by and between Robert Klein and Western Uranium and Vanadium Corp.

List of Subsidiaries

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer

Agreement between George Glasier and Western Uranium & Vanadium Corporation dated February 8, 2017

Agreement between Robert Klein and Western Uranium & Vanadium Corporation dated May 12, 2017

Agreement between Robert Klein and Western Uranium & Vanadium Corporation dated November 13, 2017

to Employment Agreement between George Glasier and Western Uranium & Vanadium Corporation dated May 30, 2019

Agreement, dated November 12, 2020, by and between Robert Klein and Western Uranium and Vanadium Corp.

of Subsidiaries

13a-14(a)/15d-14(a) Certification of Chief Executive Officer

13a-14(a)/15d-14(a) Certification of Chief Financial Officer

1350 Certifications of Chief Executive Officer and Chief Financial Officer

Mine Safety Disclosure Exhibit

XBRL Instance Document.

XBRL Taxonomy Extension Schema Document.

XBRL Taxonomy Extension Calculation Linkbase Document.

XBRL Taxonomy Extension Definition Linkbase Document.

XBRL Taxonomy Extension Label Linkbase Document.

XBRL Taxonomy Extension Presentation Linkbase Document.

Schedules and exhibits omitted pursuant to Item 601(b)(2) of Regulation S-K.

The Company agrees to furnish a copy of the omitted schedules and exhibits to the SEC upon request.

Inline XBRL Instance Document.*

Inline XBRL Taxonomy Extension Schema Document.*

Inline XBRL Taxonomy Extension Calculation Linkbase Document.*

Inline XBRL Taxonomy Extension Definition Linkbase Document.*

Inline XBRL Taxonomy Extension Label Linkbase Document.*

Inline XBRL Taxonomy Extension Presentation Linkbase Document.*

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).*

Schedules and exhibits

omitted pursuant to Item 601(b)(2) of Regulation S-K.

The Company agrees to furnish a copy of the omitted schedules and exhibits

to the SEC upon request.

Filed herewith

Previously filed as an exhibit to the Company’s Form 10 filed on April 29, 2016

Previously filed as an exhibit with Amendment No.

2 to the Company’s Form 10 filed on July 22, 2016

Previously filed as an exhibit with Amendment No.

1 to the Company’s Form 10 filed on June 22, 2016

Previously filed as an exhibit to the Company’s Form 8-K filed on October 12, 2016

Previously filed as an exhibit to the Company’s Form 10-Q filed on May 15, 2017

Previously filed as an exhibit to the Company’s Form 10-K filed on April 2, 2018

Previously filed as an exhibit to the Company’s Form 10-Q filed on August 14, 2019

Previously filed as an exhibit to the Company’s Form 10-Q filed on November 16, 2020

Previously filed as an

exhibit to the Company’s Form 10 filed on April 29, 2016

Previously filed as an

exhibit with Amendment No.

2 to the Company’s Form 10 filed on July 22, 2016

Previously filed as an

exhibit with Amendment No.

1 to the Company’s Form 10 filed on June 22, 2016

Previously filed as an exhibit to the Company’s Form 10-Q filed on May 15, 2017

Previously filed as an exhibit to the Company’s Form 10-K filed on April 2, 2018

Previously filed as an exhibit to the Company’s Form 10-Q filed on August 14, 2019

Previously filed as an exhibit to the Company’s Form 10-Q filed on November 16, 2020

FORM 10-K SUMMARY

Pursuant to the requirements of the Securities Exchange Act of 1934,

the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

WESTERN URANIUM &VANADIUM CORP.

Pursuant to the requirements of the Securities

Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

WESTERN URANIUM & VANADIUM

April 15, 2022

/s/ George Glasier

George Glasier

Chief Executive Officer and President

Pursuant to the requirements of the Securities Exchange Act of 1934,

this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Pursuant to the requirements of the Securities

Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and

on the dates indicated.

April 15, 2022

/s/ George Glasier

George Glasier

Chief Executive Officer, President and

Director (Principal Executive Officer)

(Principal Executive Officer)

April 15, 2022

/s/ Robert Klein

Chief Financial Officer

1 unchanged sentence

April 15, 2022

/s/ Bryan Murphy

April 15, 2022

/s/ Andrew Wilder

Andrew Wilder

1 unchanged sentence

and Subsidiaries

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2020

(Stated in USD)

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID:

Consolidated Balance Sheets as of December 31, 2021 and 2020 F-3

Consolidated Statements of Operations and Other Comprehensive Loss for the Years Ended December 31, 2021 and 2020 F-4

Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended December 31, 2021 and 2020 F-5

Consolidated Statements of Cash Flows for the Years Ended December 31, 2021 and 2020 F-6

Notes to Consolidated Financial Statements F-7

of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Western Uranium &

Vanadium Corp.

To the Board of Directors and Shareholders of Western Uranium & Vanadium

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Western

Uranium & Vanadium Corp.

(the “Company”) as of December 31, 2020 and 2019, and the related consolidated statements of

operations and other comprehensive loss, changes in shareholders’

equity, and cash flows for the years then ended, and the related

notes (collectively referred to as the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in

all material respects, the consolidated financial position of the Company as of December 31, 2020 and 2019, and the results of its consolidated

operations and its consolidated cash flows for the years then ended, in conformity with accounting principles generally accepted in the

United States of America.

We have audited the accompanying consolidated

balance sheets of Western Uranium & Vanadium Corp.

(the “Company”) as of December 31, 2021 and 2020, and the related consolidated

statements of operations and other comprehensive loss, changes in shareholders’ equity and cash flows for the years then ended,

and the related notes (collectively referred to as the consolidated financial statements).

In our opinion, the consolidated financial statements

present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2021 and 2020, and the

results of its consolidated operations and its consolidated cash flows for the years then ended, in conformity with accounting principles

generally accepted in the United States of America.

Material Uncertainty Related to Going Concern

The accompanying consolidated financial statements have been prepared assuming

that the Company will continue as a going concern.

As discussed in Note 2 to the consolidated financial statements, the Company has incurred

continuing losses and negative cash flows from operations and is dependent upon future sources of equity or debt financing in order to

fund its operations.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Management’s

plans in regard to these matters are also described in Note 2.

The consolidated financial statements do not include any adjustments that

might result from the outcome of this uncertainty.

The accompanying consolidated financial statements

have been prepared assuming that the Company will continue as a going concern.

As discussed in Note 2 to the consolidated financial statements,

the Company has incurred continuing losses and negative cash flows from operations and is dependent upon future sources of equity or debt

financing in order to fund its operations.

These conditions raise substantial doubt about the Company’s ability to continue as a

going concern.

Management’s plans in regard to these matters are also described in Note 2.

The consolidated financial statements

do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s

Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required

to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations

of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements

are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform,

an audit of its internal control over financial reporting.

As part of our audits, we are required to obtain an understanding of internal

control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal

control over financial reporting.

These consolidated financial statements are the

responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s consolidated financial

statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United

States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and

the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the

standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated

financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we

engaged to perform, an audit of its internal control over financial reporting.

As part of our audits, we are required to obtain an understanding

of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s

internal control over financial reporting.

Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material

misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as

evaluating the overall presentation of the consolidated financial statements.

We believe that our audits provide a reasonable basis for

Our audits included performing procedures to assess

the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures

that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the

consolidated financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by

management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that our audits provide

a reasonable basis for our opinion.

Chartered Professional Accountants, Licensed Public Accountants

We have served as the Company’s auditor since 2015.

Mississauga, Canada

April 15, 2022

WESTERN URANIUM & VANADIUM CORP.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

1 unchanged sentence

(Stated in USD)

As of December 31,

Current assets:

Restricted cash, current portion

Prepaid uranium concentrate inventory

Prepaid expenses

3 unchanged sentences

Restricted cash, net of current portion

Mineral properties and equipment

Mineral properties and equipment, net

Kinetic separation intellectual property

Liabilities and Shareholders’

Liabilities and Shareholders’ Equity

Current liabilities:

1 unchanged sentence

Reclamation liability, current portion

Subscription payable

Deferred revenue, current portion

5 unchanged sentences

Total liabilities

Shareholders’

Common shares, no par value, unlimited authorized shares, 30,084,053 and 30,084,053 shares issued as of December 31, 2020 and December 31, 2019, respectively and 30,083,747 and 30,083,747 shares outstanding as of December 31, 2020 and December 31, 2019, respectively

Treasury shares, 306 and 306 shares held in treasury as of December 31, 2020 and December 31, 2019, respectively

Commitments and Contingencies (Note 7)

Shareholders’ Equity

Common shares, no par value, unlimited authorized shares, 39,073,428 and 30,084,053 shares issued as of December 31, 2021 and 2020 and 39,073,122 and 30,083,747 shares outstanding as of December 31, 2021 and 2020, respectively

Treasury shares, 306 shares held in treasury as of December 31, 2021 and 2020

Accumulated deficit

( 13,161,496 )

Accumulated other comprehensive income

Total shareholders’

Total liabilities and shareholders’

The accompanying

notes are an integral part of these consolidated financial statements.

WESTERN URANIUM & VANADIUM CORP.

( 11,087,459 )

Accumulated other comprehensive income (loss)

Total shareholders’ equity

Total liabilities and shareholders’ equity

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

WESTERN URANIUM

& VANADIUM CORP.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE LOSS

(Stated in USD)

For the Years Ended

Lease revenue

Lease and royalty revenue

Mining expenditures

4 unchanged sentences

Operating loss

( 2,012,945 )

( 1,813,656 )

Accretion and interest

Settlement expense

Warrant modification expense

Gain on forgiveness of debt

Other comprehensive (expense) income

Foreign exchange (loss) gain

( 2,074,037 )

( 2,392,890 )

Other comprehensive income (expense)

Foreign exchange gain (loss)

Comprehensive loss

3 unchanged sentences

Weighted average shares outstanding, basic and diluted

The accompanying

notes are an integral part of these consolidated financial statements.

WESTERN URANIUM & VANADIUM CORP.

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

WESTERN URANIUM & VANADIUM

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’

(Stated in USD)

1 unchanged sentence

Treasury Shares

Other Comprehensive

Comprehensive

Income (Loss)

Balance as of January 1, 2020

1 unchanged sentence

Stock based compensation - stock options

Private placement - April 16, 2019

Private placement - June 17, 2019

Foreign exchange gain

Balance as of December 31, 2019

$ (8,694,569 )

Stock based compensation - stock options

Warrant modification expense

Foreign exchange loss

( 2,392,890 )

Balance as of December 31, 2020

$ ( 11,087,459 )

The accompanying

notes are an integral part of these consolidated financial statements.

WESTERN URANIUM & VANADIUM CORP.

Private placement - February 16, 2021, net of offering costs

Private placement - March 1, 2021, net of offering costs

Private placement - December 17, 2021, net of offering costs

Proceeds from the exercise of warrants

Cashless exercise of stock options

Foreign exchange gain

( 2,074,037 )

Balance as of December 31, 2021

$ ( 13,161,496 )

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

WESTERN URANIUM & VANADIUM

AND SUBSIDIARIES

6 unchanged sentences

Reconciliation of net loss to cash used in operating activities:

Accretion of and additions to reclamation liability

Accretion of reclamation liability

Gain on forgiveness of debt

3 unchanged sentences

Change in operating assets and liabilities:

Prepaid uranium concentrate inventory

( 4,085,723 )

Prepaid expenses and other current assets

Accounts payable and accrued liabilities

Reclamation liabilities

Deferred revenue

Net cash used in operating activities

( 6,154,665 )

( 1,513,626 )

Cash Flows From Investing Activities

2 unchanged sentences

Cash Flows From Financing Activities

Proceeds from loan payable

Proceeds from notes payable

Proceeds from warrant exercises

Issuances of Common shares, net of offering costs

1 unchanged sentence

Effect of foreign exchange rate on cash

Net decrease in cash and restricted cash

Net increase (decrease) in cash and restricted cash

( 1,510,383 )

Cash and restricted cash - beginning

Cash and restricted cash - ending

Restricted cash

Restricted cash, current portion

Restricted cash, noncurrent

Supplemental disclosure of cash flow information:

Cash paid during the year for:

The accompanying

notes are an integral part of these consolidated financial statements.

WESTERN URANIUM & VANADIUM CORP.

Cash paid during the period for:

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

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

NOTE 1 –

Nature of operations

Western Uranium & Vanadium Corp.

(“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.

to obtaining appropriate shareholder approvals, the Company reconstituted its Board of Directors and senior management team.

September 16, 2015, Western completed its acquisition of Black Range Minerals Limited (“Black Range”).

The Company’s registered office is

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

symbol “WUC.”

On April 22, 2016, the Company’s common shares began trading on the OTC Pink Open Market, and on

May 23, 2016, the Company’s common shares were approved for trading on the OTCQX Best Market.

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”).

On June 28, 2016, the Company’s registration

statement became effective and Western became a United States reporting issuer.

Thereafter, the Company was approved for Depository

Trust Company eligibility through the Depository Trust and Clearing Corporation, which facilitates electronic book-entry delivery,

settlement and depository services for shares in the United States.

On June 29, 2018, the shareholders of the

Company approved the name change of the Company from “Western Uranium Corporation”

to “Western Uranium &

Vanadium Corp.”

The name change became effective in Ontario, Canada on October 1, 2018;

thereafter on October 4, 2018 Western’s

shares started trading under the new name on the CSE and OTCQX and the Company announced the name change by news release.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

of operations

Uranium & Vanadium Corp.

(“Western” or the “Company”) 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”).

Company’s registered office is located at 330 Bay Street, Suite 1400, Toronto, Ontario, Canada, M5H 2S8, and its common shares

are listed on the CSE under the symbol “WUC.” On April 22, 2016, the Company’s common shares began trading on the OTC

Pink Open Market, and on May 23, 2016, the Company’s common shares were approved for trading on the OTCQX Best Market.

The Company’s

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”).

June 28, 2016, the Company’s registration statement became effective and Western became a United States reporting issuer.

the Company was approved for Depository Trust Company eligibility through the Depository Trust and Clearing Corporation, which facilitates

electronic book-entry delivery, settlement, and depository services for shares in the United States.

2 – Liquidity and going concern

The Company has incurred continuing losses

from its operations and negative operating cash flows from 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.

On May 6, 2020, the Company obtained a Paycheck Protection Program loan

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

On December 2, 2020, the Company received notice from the U.S.

Small Business Association that the entire PPP Loan balance and accrued interest was forgiven in full on such date.

The Company recorded

the loan forgiveness as other income in the Company’s consolidated statements of operations and comprehensive loss.

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 technology 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.

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 these consolidated financial

The Company has incurred continuing losses from

its operations and negative operating cash flows from operations.

As of December 31, 2021, the Company had an accumulated deficit

of $ 13,161,496 and working capital of $ 4,492,169 .

Since inception, the Company has met its liquidity

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

On February 16, 2021, the Company closed a non-brokered

private placement of 3,250,000 units at a price of CAD $ 0.80 per unit.

The aggregate gross proceeds raised in the private placement amounted

to CAD $ 2,600,000 (USD $ 1,950,509 in net proceeds).

On March 1, 2021, the Company closed a non-brokered private placement of 3,125,000

units at a price of CAD $ 0.80 per unit.

The aggregate gross proceeds raised in the private placement amounted to CAD $ 2,500,000 (USD $ 1,918,797

in net proceeds).

On December 17, 2021, the Company closed a non-brokered private placement of 372,966 units at a price of CAD $ 1.60 per

The aggregate gross proceeds raised in the private placement amounted to CAD $ 596,746 (USD $ 434,973 in net proceeds).

year ended December 31, 2021, the Company received $ 2,004,864 in proceeds from the exercise of warrants.

Company’s ability to continue its planned 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

financing, to secure regulatory approval to fully utilize its kinetic separation (“Kinetic Separation”) technology, and

to initiate the processing of ore to generate operating cash flows.

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.

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 these consolidated

financial statements.

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

of these uncertainties.

WESTERN URANIUM & VANADIUM CORP.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

These consolidated financial statements

are presented in United States dollars and have been prepared in accordance with United States generally accepted accounting principles

GAAP”).

The accompanying consolidated financial

statements include the accounts of Western and its wholly-owned subsidiaries, Western Uranium Corp.

(Utah), PRM, Black Range, Black

Range Copper Inc., Ranger Resources Inc., Black Range Minerals Inc., Black Range Minerals Colorado LLC, Black Range Minerals Wyoming

LLC, Haggerty Resources LLC, Ranger Alaska LLC, Black Range Minerals Utah LLC, Black Range Minerals Ablation Holdings Inc.

Black Range Development Utah LLC.

of Presentation and Principles of Consolidation

consolidated financial statements are presented in United States dollars and have been prepared in accordance with United States Generally

Accepted Accounting Principles (“U.S.

accompanying consolidated financial statements include the accounts of Western and its wholly-owned subsidiaries, Western Uranium Corp.

(Utah), PRM, Black Range, Black Range Copper Inc., Ranger Resources Inc., Black Range Minerals Inc., Black Range Minerals Colorado LLC,

Black Range Minerals Wyoming LLC, Haggerty Resources LLC, Ranger Alaska LLC, Black Range Minerals Utah LLC, Black Range Minerals Ablation

Holdings Inc., and Black Range Development Utah LLC.

All inter-company transactions and balances have been eliminated upon consolidation.

The Company has established the existence

of mineralized materials for certain uranium projects.

The Company has not established proven or probable reserves, as defined

by the United States Securities and Exchange Commission (the “SEC”) under Industry Guide 7, through the completion

of a “final”

or “bankable”

feasibility study for any of its uranium projects.

Exploration Stage

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 the Company exits the Exploration Stage by establishing proven or probable reserves.

relating to exploration activities such as drill programs to search for additional mineralized materials are expensed as incurred.

Expenditures relating to pre-extraction activities such as the construction of mine wellfields, ion exchange facilities and disposal

wells are expensed as incurred until such time proven or probable reserves are established for that uranium project, after which

subsequent expenditures relating to mine development activities for that particular project are capitalized as incurred.

Companies in the Production Stage as defined

under Industry Guide 7, 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.

The Company is in the Exploration Stage which has resulted in the Company reporting larger losses than if it

had been in the Production Stage due to the expensing, instead of capitalizing, of expenditures relating to ongoing mine development

and extraction activities.

Additionally, there would be no corresponding amortization allocated to future reporting periods of

the Company since those costs would have been expensed previously, resulting in both lower inventory costs and cost of goods sold

and results of operations with higher gross profits and lower losses than if the Company had been in the Production Stage.

capitalized costs, such as expenditures relating to the acquisition of mineral rights, are depleted over the estimated extraction

Company has established the existence of mineralized materials for certain uranium projects.

The Company has not established proven or

probable reserves, as defined by the United States Securities and Exchange Commission (the “SEC”), through the completion

of a “final” or “bankable” feasibility study for any of its uranium projects.

Exploration Stage and Mineral Properties

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 the Company exits the exploration stage by establishing proven

or probable reserves.

Expenditures relating to exploration activities, such as drill programs to search for additional mineralized materials,

are expensed as incurred.

Expenditures relating to pre-extraction activities, such as the construction of mine wellfields, ion exchange

facilities, disposal wells, and mine development, are expensed as incurred until such time proven or probable reserves are established

for that uranium project, after which subsequent expenditures relating to development activities for that particular project are capitalized

Expenditures relating to mining and ore production while the Company is in the exploration stage and while the ore is stockpiled

underground are expensed as incurred.

stage issuers, as defined in subpart 1300 of Regulation S-K, having engaged in material extraction of established mineral reserves on

at least one material property, 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.

The Company is an exploration stage issuer, which has resulted in the Company

reporting larger losses than if it had been in the production stage due to the expensing, instead of capitalizing, of expenditures relating

to ongoing mine development and extraction activities.

Additionally, there would be no corresponding amortization allocated to future

reporting periods of the Company since those costs would have been expensed previously, resulting in both lower inventory costs and cost

of goods sold and results of operations with higher gross profits and lower losses than if the Company had been in the production stage.

Any capitalized costs, such as expenditures relating to the acquisition of mineral rights, are depleted over the estimated extraction

life using the straight-line method.

As a result, the Company’s consolidated financial statements may not be directly comparable

to the financial statements of companies in the production stage.

WESTERN URANIUM & VANADIUM CORP.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 – SUMMARY OF Significant Accounting Policies (CONTINUED )

Use of Estimates

The preparation of these consolidated financial

statements in conformity with U.S.

GAAP requires management to make estimates and assumptions that affect the reported amount of

assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported.

nature, these estimates are subject to measurement uncertainty and the effects on the consolidated financial statements of changes

in such estimates in future periods could be significant.

Significant areas requiring management’s estimates and assumptions

include determining the fair value of transactions involving common shares, assessment of the useful life and evaluation for impairment

of Kinetic Separation intellectual property, valuation and impairment assessments on mineral properties and equipment, deferred

contingent consideration, the reclamation liability, valuation of stock-based compensation, and valuation of available-for-sale

Other areas requiring estimates include allocations of expenditures, depletion and amortization of mineral rights and

preparation of these consolidated financial statements in conformity with U.S.

GAAP requires management to make estimates and assumptions

that affect the reported amount of assets and liabilities at the date of the financial statements and revenues and expenses during the

periods reported.

By their nature, these estimates are subject to measurement uncertainty, and the effects on the consolidated financial

statements of changes in such estimates in future periods could be significant.

Significant areas requiring management’s estimates

and assumptions include the determination of the fair value of transactions involving common shares, assessment of the useful life and

evaluation for impairment of Kinetic Separation intellectual property, valuation and impairment assessments of mineral properties and

equipment, valuation of deferred contingent consideration, valuation of the reclamation liability, valuation of stock-based compensation,

and valuation of available-for-sale securities.

Other areas requiring estimates include allocations of expenditures, depletion, and amortization

of mineral rights and properties.

Actual results could differ from those estimates.

Foreign Currency Translation

The reporting currency of the Company,

including its subsidiaries, is the United States dollar.

Currency Translation

The reporting currency of the Company, including

its subsidiaries, is the United States dollar.

The financial statements of subsidiaries located outside of the U.S.

measured in their functional currency, which is the local currency.

The functional currency of the parent (Western Uranium &

Vanadium Corp.

(Ontario)) is the Canadian dollar.

Monetary assets and liabilities of these subsidiaries are translated at the exchange

rates at the balance sheet date.

are measured in their

functional currency, which is the local currency.

The functional currency of the parent (Western Uranium & Vanadium Corp.

is the Canadian dollar.

Monetary assets and liabilities of these subsidiaries are translated at the exchange rates at the balance sheet

Transactions denominated in currencies other than the functional currency are recorded based on the exchange rates at the time of

the transaction.

Income and expense items are translated using average monthly exchange rates.

Non-monetary assets

are translated at their historical exchange rates.

Translation adjustments are included in accumulated other comprehensive loss

in the consolidated balance sheets.

Segment Information

The Company determines its reporting units

in accordance with FASB ASC 280, “

Segment Reporting ”

(“ASC 280”).

The Company evaluates a reporting

unit by first identifying its operating segments under ASC 280.

The Company then evaluates each operating segment to determine

if it includes one or more components that constitute a business.

If there are components within an operating segment that meet

the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting

If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if

the segments are economically similar and, if so, the operating segments are aggregated.

The Company has one operating segment

and reporting unit.

Non-monetary assets are translated at their

historical exchange rates.

Translation adjustments are included in “Accumulated other comprehensive income (loss)” in the

consolidated balance sheets.

The Company determines its reporting units in

accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280,

Segment Reporting .

The Company evaluates a reporting unit by first identifying its operating segments under ASC 280.

then evaluates each operating segment to determine if it includes one or more components that constitute a business.

If there are components

within an operating segment that meet the definition of a business, the Company evaluates those components to determine if they must be

aggregated into one or more reporting units.

If applicable, when determining if it is appropriate to aggregate different operating segments,

the Company determines if the segments are economically similar and, if so, the operating segments are aggregated.

The Company has one

operating segment and reporting unit.

The Company operates in one reportable business segment;

the Company is in the business of exploring, developing,

mining and the production of its uranium and vanadium resource properties, including the utilization of the Company’s Kinetic

Separation technology in its mining processes.

the Company is in the business of exploring,

developing, mining, and the production of its uranium and vanadium resource properties, including the utilization of the Company’s

Kinetic Separation technology in its mining processes.

The Company is organized and operated as one business.

Management reviews its business

as a single operating segment, using financial and other information rendered meaningful only by the fact that such information

is presented and reviewed in the aggregate.

The Company considers all highly-liquid

instruments with an original maturity of three months or less at the time of issuance to be cash equivalents.

As of December 31,

2020 and 2019, the Company had no cash equivalents.

Marketable Securities

The Company classifies its marketable securities

as available-for-sale securities, which are carried at their fair value based on the quoted market prices of the securities with

unrealized gains and losses reported as accumulated comprehensive income (loss), a separate component of shareholders’

Realized gains and losses on available-for-sale securities are included in net earnings in the period earned or incurred.

WESTERN URANIUM & VANADIUM CORP.

as a single operating segment, using financial and other information rendered meaningful only by the fact that such information is presented

and reviewed in the aggregate.

Company considers all highly-liquid instruments with an original maturity of three months or less at the time of issuance to be cash

As of December 31, 2021 and 2020, the Company had no cash equivalents.

Company classifies its marketable securities as available-for-sale securities, which are carried at their fair value based on the quoted

market prices of the securities with unrealized gains and losses reported as accumulated comprehensive income (loss), a separate component

of shareholders’ equity.

Realized gains and losses on available-for-sale securities are included in net earnings in the period

earned or incurred.

cash balances are restricted as they relate to deposits with banks that have been assigned to state reclamation authorities in the United

States to secure various reclamation guarantees with respect to mineral properties in Utah, Wyoming, and Colorado.

As these funds are

not available for general corporate purposes and secure the long term reclamation liability (see Note 4), they have been separately disclosed

and classified as long-term for the majority of the Company’s mines.

As of December 31, 2021 and 2020, the Company has determined

that the Van 4 Mine is now considered to be in reclamation.

The Company recognized the Van 4 Mine’s reclamation liability and its

restricted cash in full on the Company’s consolidated balance sheet as current.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

SUMMARY OF Significant Accounting Policies, CONTINUED

Restricted Cash

Certain cash balances are restricted as

they relate to deposits with banks that have been assigned to state reclamation authorities in the United States to secure various

reclamation guarantees with respect to mineral properties in Utah, Wyoming and Colorado.

As these funds are not available for general

corporate purposes and secure the long term reclamation liability (see Note 4), they have been separately disclosed and classified

as long-term for the majority of the Company’s mines.

As of December 31, 2020 and 2019, the Company has determined that the

Van 4 Mine is now considered to be in reclamation.

The Company recognized the Van 4 Mine’s reclamation liability and its

restricted cash in full on the Company’s consolidated balance sheet as current.

Revenue Recognition

The Company leases certain of its mineral properties for the exploration

and production of oil and gas reserves.

The Company accounts for lease revenue in accordance with ASC 842 “Leases”.

payments received in advance are deferred and recognized on a straight –

line basis over the related lease term associated with

the prepayment.

Royalty payments will be recognized as revenues when received.

Fair Values of Financial Instruments

The carrying amounts of cash, restricted

cash, accounts payable, accrued liabilities, and loan payable approximate their fair value due to the short-term nature of these

Marketable securities are adjusted to fair value at each balance sheet date based on quoted prices which are considered

level 1 inputs.

The Company’s operations and financing activities are conducted primarily in United States dollars and as

a result, the Company is not subject to significant exposure to market risks from changes in foreign currency rates.

is exposed to credit risk through its cash and restricted cash, but mitigates this risk by keeping these deposits at major financial

institutions.

ASC 820 “Fair Value Measurements

and Disclosures”

provides the framework for measuring fair value.

That framework provides a fair value hierarchy that prioritizes

the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices

in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level

3 measurements).

Fair value is defined as an exit price,

representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction

between market participants.

Fair value is a market-based measurement that is determined based on assumptions that market participants

would use in pricing an asset or liability.

A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair

value as follows:

Level 1 Quoted prices in active markets

for identical assets or liabilities.

Level 2 Quoted prices for similar assets

or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active,

or other inputs that are observable, either directly or indirectly.

Level 3 Significant unobservable inputs

that cannot be corroborated by market data.

WESTERN URANIUM & VANADIUM CORP.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED )

Property and equipment

Property and equipment is stated at cost less accumulated depreciation.

Depreciation is calculated using the straight-line method, based upon the following estimated useful lives:

Computer and related equipment

For the years ended December 31, 2021 and 2020,

the Company recorded depreciation expense of $ 20,380 and $ 10,628 , respectively.

The Company leases certain of its mineral properties

for the exploration and production of oil and gas reserves.

The Company accounts for lease revenue in accordance with the FASB ASC 842,

Lease payments received in advance are deferred and recognized on a straight-line basis over the related lease term associated

with the prepayment.

Royalty payments are recognized as revenues based upon production.

Values of Financial Instruments

The carrying amounts of cash, restricted cash,

accounts payable, subscription payable, contingent consideration and accrued liabilities approximate their fair value due to the short-term

nature of these instruments.

Marketable securities are adjusted to fair value at each balance sheet date based on quoted prices which

are considered level 1 inputs.

The Company’s operating and financing activities are conducted primarily in United States dollars,

and as a result, the Company is not subject to significant exposure to market risks from changes in foreign currency rates.

is exposed to credit risk through its cash and restricted cash but mitigates this risk by keeping these deposits at major financial institutions.

820, Fair Value Measurements and Disclosures , provides the framework for measuring fair value.

That framework provides a fair

value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest

priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest

priority to unobservable inputs (level 3 measurements).

value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a

liability in an orderly transaction between market participants.

Fair value is a market-based measurement that is determined based on

assumptions that market participants would use in pricing an asset or liability.

A three-tier fair value hierarchy is used to prioritize

the inputs in measuring fair value as follows:

1 - Quoted prices in active markets for identical assets or liabilities.

2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in

markets that are not active, or other inputs that are observable, either directly or indirectly.

3 - Significant unobservable inputs that cannot be corroborated by market data and inputs that are derived principally from or

corroborated by observable market data or correlation by other means.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 – SUMMARY OF Significant Accounting Policies (continued )

Fair Values of Financial Instruments (continued)

The fair value of the Company’s financial

instruments are as follows:

Values of Financial Instruments (continued)

fair value of the Company’s financial instruments are as follows:

Quoted Prices for Similar

Assets or Liabilities in

Active Markets

Marketable securities as of December 31, 2021

Marketable securities as of December 31, 2020

Mineral Properties

Acquisition costs of mineral properties

are capitalized as incurred while exploration and pre-extraction expenditures are expensed as incurred until such time the Company

exits the Exploration Stage by establishing proven or probable reserves, as defined by the SEC under Industry Guide 7, through

the completion of a “final”

or “bankable”

feasibility study.

Expenditures relating to exploration activities

are expensed as incurred and expenditures relating to pre-extraction activities are expensed as incurred until such time proven

or probable reserves are established for that project, after which subsequent expenditures relating to development activities for

that particular project are capitalized as incurred.

Where proven and probable reserves have

been established, the project’s capitalized expenditures are depleted over proven and probable reserves upon commencement

of production using the units-of-production method.

Where proven and probable reserves have not been established, such capitalized

expenditures are depleted over the estimated production life upon commencement of extraction using the straight-line method.

Company has not established proven or probable reserves for any of its projects.

The carrying values of the mineral properties

are assessed for impairment by management.

Impairment of Long-Lived Assets

The Company reviews and evaluates its long-lived assets and kinetic separation

technology for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets.

An impairment loss is measured and recorded based on discounted estimated future cash flows or upon an estimate of fair value that may

be received in an exchange transaction.

Future cash flows are estimated based on estimated quantities of recoverable minerals, expected

uranium (“U3O8”) prices (considering current and historical prices, trends and related factors), production levels, operating

costs of production and capital and restoration and reclamation costs, based upon the projected remaining future uranium production from

each project.

The Company’s long-lived assets (which include its mineral assets and Kinetic Separation intellectual property) were

acquired during the end of 2014 and in 2015 in arms-length transactions.

As of December 31, 2020, the Company evaluated the total estimated

future cash flows on an undiscounted basis for its mineral properties, equipment, and Kinetic Separation intellectual property and determined

that no impairment was deemed to exist.

Estimates and assumptions used to assess recoverability of the Company’s long-lived assets

and measure fair value of our uranium properties are subject to risk uncertainty.

Changes in these estimates and assumptions could result

in the impairment of its long-lived assets.

of Long-Lived Assets

The Company reviews and evaluates its

long-lived assets and Kinetic Separation technology for impairment when events or changes in circumstances indicate that the related

carrying amounts may not be recoverable.

Impairment is considered to exist if the total estimated future cash flows on an

undiscounted basis are less than the carrying amount of the assets.

An impairment loss is measured and recorded based on discounted

estimated future cash flows or upon an estimate of fair value that may be received in an exchange transaction.

Future cash flows are

estimated based on estimated quantities of recoverable minerals, expected uranium prices (considering current and historical prices,

trends, and related factors), production levels, operating costs of production, and capital, restoration and reclamation costs,

based upon the projected remaining future uranium production from each project.

The Company’s long-lived assets (which include

its mineral assets and Kinetic Separation intellectual property) were acquired during the end of 2014 and in 2015 in arms-length

transactions.

As of December 31, 2021, the Company evaluated the total estimated future cash flows on an undiscounted basis for its

mineral properties and Kinetic Separation intellectual property and determined that no impairment was deemed to exist.

Estimates and

assumptions used to assess recoverability of the Company’s long-lived assets and to measure fair value of our uranium

properties are subject to risk uncertainty.

Changes in these estimates and assumptions could result in the impairment of the

Company’s long-lived assets.

In estimating future cash flows, assets are grouped at the lowest level for which there are

identifiable cash flows that are largely independent of future cash flows from other asset groups.

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

SUMMARY OF Significant Accounting Policies, continued

The Company utilizes an asset and liability

approach for financial accounting and reporting for income taxes.

The provision for income taxes is based upon income or loss after

adjustment for those permanent items that are not considered in the determination of taxable income.

Deferred income taxes represent

the tax effects of differences between the financial reporting and tax basis of the Company’s assets and liabilities at the

enacted tax rates in effect for the years in which the differences are expected to reverse.

The Company evaluates the recoverability

of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all the deferred

tax assets will not be realized.

Management makes judgments as to the interpretation of the tax laws that might be challenged upon

an audit and cause changes to previous estimates of tax liability.

In management’s opinion, adequate provisions for income

taxes have been made.

If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of

reserves may be necessary.

Tax benefits are recognized only for tax

positions that are more likely than not to be sustained upon examination by tax authorities.

The amount recognized is measured

as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement.

A liability for “unrecognized

tax benefits”

is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition

and measurement standards.

As of December 31, 2020 and December 31, 2019, no liability for unrecognized tax benefits was required

to be reported.

The Company’s policy for recording

interest and penalties associated with tax audits is to record such items as a component of general and administrative expense.

Company utilizes an asset and liability approach for financial accounting and reporting for income taxes.

The provision for income taxes

is based upon income or loss after adjustment for those permanent items that are not considered in the determination of taxable income.

Deferred income taxes represent the tax effects of differences between the financial reporting and tax basis of the Company’s assets

and liabilities at the enacted tax rates in effect for the years in which the differences are expected to reverse.

The Company evaluates the recoverability of deferred

tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will

not be realized.

Management makes judgments as to the interpretation of the tax laws that might be challenged in an audit and cause changes

to previous estimates of tax liability.

In management’s opinion, adequate provisions for income taxes have been made.

taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

Tax benefits are recognized only for tax positions

that are more likely than not to be sustained upon examination by tax authorities.

The amount recognized is measured as the largest amount

of benefit that is more than 50 percent likely to be realized upon settlement.

A liability for unrecognized tax benefits is recorded

for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards.

As of December

31, 2021 and December 31, 2020, no liability for unrecognized tax benefits was required to be reported.

Company’s policy for recording interest and penalties associated with tax audits is to record such items as a component of general

and administrative expense.

There were no amounts accrued for penalties and interest for the years ended December 31, 2021 and 2020.

The Company does not expect

its uncertain tax position to change during the next twelve months.

Management is currently unaware of any issues under review

that could result in significant payments, accruals or material deviations from its position.

The Company has identified its federal

Canadian and United States tax returns and its state tax returns in Colorado and Utah as its “major”

tax jurisdictions,

The Company does not expect its uncertain tax position to change during the next twelve months.

Management is currently unaware of any

issues under review that could result in significant payments, accruals, or material deviations from its position.

The Company has identified its federal Canadian

and United States tax jurisdictions and its state tax jurisdictions in Colorado and Utah as its “major” tax jurisdictions,

and such returns for the years 2017 through 2021 remain subject to examination.

Restoration and Remediation Costs (Asset Retirement Obligations)

Various federal and state mining laws and

regulations require the Company to reclaim the surface areas and restore underground water quality for its mine projects to the

pre-existing mine area average quality after the completion of mining.

Future reclamation and remediation costs,

which include extraction equipment removal and environmental remediation, are accrued at the end of each period based on management’s

best estimate of the costs expected to be incurred for each project.

Such estimates are determined by the Company’s engineering

studies which consider the costs of future surface and groundwater activities, current regulations, actual expenses incurred, and

technology and industry standards.

In accordance with ASC 410, Asset Retirement

and Environmental Obligations, the Company capitalizes the measured fair value of asset retirement obligations to mineral properties.

The asset retirement obligations are accreted to an undiscounted value until the time at which they are expected to be settled.

The accretion expense is charged to earnings and the actual retirement costs are recorded against the asset retirement obligations

when incurred.

Any difference between the recorded asset retirement obligations and the actual retirement costs incurred will be

recorded as a gain or loss in the period of settlement.

At each reporting period, the Company reviews

the assumptions used to estimate the expected cash flows required to settle the asset retirement obligations, including changes

in estimated probabilities, amounts and timing of the settlement of the asset retirement obligations, as well as changes in the

legal obligation requirements at each of its mineral properties.

Changes in any one or more of these assumptions may cause revision

of asset retirement obligations for the corresponding assets.

WESTERN URANIUM & VANADIUM CORP.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 – SUMMARY OF Significant Accounting Policies (continued )

Deferred Financing Costs

Deferred financing costs represent costs

incurred in connection with the issuance of debt.

Once the associated debt instrument is issued, these costs would be recorded

as a debt discount and amortized to interest expense using the effective interest method over the term of the related debt instrument.

Upon the abandonment of a pending financing transaction, the related deferred financing costs would be charged to general and administrative

The Company may also issue warrants or

other equity instruments in connection with the issuance of debt instruments.

The equity instruments are recorded at their relative

fair market value on the date of issuance which results in a debt discount which is amortized to interest expense using the effective

interest method.

Stock-Based Compensation

The Company follows ASC 718, Compensation

and Remediation Costs (Asset Retirement Obligations)

federal and state mining laws and regulations require the Company to reclaim the surface areas and restore underground water quality

for its mine projects to the pre-existing mine area average quality after the completion of mining.

reclamation and remediation costs, which include extraction equipment removal and environmental remediation, are accrued at the end of

each period based on management’s best estimate of the costs expected to be incurred for each project.

Such estimates are determined

by the Company’s engineering studies which consider the costs of future surface and groundwater activities, current regulations,

actual expenses incurred, and technology and industry standards.

In accordance with the FASB ASC 410, Asset

Retirement and Environmental Obligations , the Company capitalizes the measured fair value of asset retirement obligations to mineral

The asset retirement obligations are accreted to an undiscounted value until the time at which they are expected to be settled.

The accretion expense is charged to earnings and the actual retirement costs are recorded against the asset retirement obligations when

Any difference between the recorded asset retirement obligations and the actual retirement costs incurred will be recorded as

a gain or loss in the period of settlement.

each reporting period, the Company reviews the assumptions used to estimate the expected cash flows required to settle the asset retirement

obligations, including changes in estimated probabilities, amounts and timing of the settlement of the asset retirement obligations,

as well as changes in the legal obligation requirements at each of its mineral properties.

Changes in any one or more of these assumptions

may cause revision of asset retirement obligations for the corresponding assets.

The Company follows the FASB ASC 718, Compensation

- Stock Compensation , which addresses the accounting for stock-based payment transactions, requiring such transactions to be accounted

for using the fair value method.

Awards of shares for property or services are recorded at the more readily measurable of the fair

value of the stock and the fair value of the service.

The Company uses the Black-Scholes option-pricing model to determine the

grant date fair value of stock-based awards under ASC 718.

The fair value is charged to earnings depending on the terms and conditions

of the award, and the nature of the relationship of the recipient of the award to the Company.

The Company records the grant date

fair value in line with the period over which it was earned.

For employees and consultants, this is typically considered to be

the vesting period of the award.

Awards of shares for property or services are recorded at the fair value of the stock or the fair value

of the service, whichever is more readily measureable.

The Company uses the Black-Scholes option-pricing model to determine the grant

date fair value of stock-based awards under ASC 718.

The fair value is charged to earnings depending on the terms and conditions of the

award, and the nature of the relationship of the recipient of the award to the Company.

The Company records the grant date fair value

in line with the period over which it was earned.

For employees and consultants, this is typically considered to be the vesting period

of the award.

The Company estimates the expected forfeitures and updates the valuation accordingly.

In November 2019, the FASB issued ASU 2019-08, Compensation –

Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), which clarifies that an entity must measure and

classify share-based payment awards granted to a customer by applying the guidance in Topic 718.

ASU 2019-08 is effective for annual reporting

periods beginning after December 15, 2019, including interim reporting periods within those annual reporting periods.

The Company adopted

ASU 2019-08, and has determined that there was no material impacts on its consolidated financial statements.

Warrant Modification Expense

6 unchanged sentences

modification expense.

See Note 8 for additional information.

Loss per Share

Basic net loss per share is computed by

dividing net loss by the weighted average number of common shares outstanding during the year.

Diluted earnings per share is computed

using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the year.

common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants (using the treasury

stock method).

The computation of diluted net loss per share for the years ended December 31, 2020 and 2019 excludes potentially

dilutive securities.

The computations of net loss per share for each year presented is the same for both basic and fully diluted.

Potentially dilutive securities outlined

in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion

would have been anti-dilutive.

Warrants to purchase common shares

Options to purchase common shares

Total potentially dilutive securities

In July 2018, the FASB issued ASU 2018-10 Leases (Topic 842), Codification

Improvements and ASU 2018-11 Leases (Topic 842), Targeted Improvements, to provide additional guidance for the adoption of Topic 842.

ASU 2018-10 clarifies certain provisions and correct unintended applications of the guidance such as the application of implicit rate,

lessee reassessment of lease classification, and certain transition adjustments that should be recognized to earnings rather than to stockholders’

(deficit) equity.

ASU 2018-11 provides an alternative transition method and practical expedient for separating contract components for

the adoption of Topic 842.

In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842) which requires an entity to recognize assets

and liabilities arising from a lease for both financing and operating leases with terms greater than 12 months.

ASU 2018-11, ASU 2018-10,

and ASU 2016-02 (collectively, “the new lease standards”) are effective for fiscal years beginning after December 15, 2018,

with early adoption permitted.

The Company adopted ASU 2018-10, and has determined that there was no impact to the consolidated financial

WESTERN URANIUM & VANADIUM CORP.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 – SUMMARY OF Significant Accounting Policies (continued )

Recent Accounting Standards

Management does not believe that any recently

issued, but not yet effective accounting standards, when adopted, will have a material effect on the accompanying consolidated

financial statements.

net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period.

earnings per share are computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding

during the period.

Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants

(using the treasury stock method).

The computation of diluted net loss per share for the years ended December 31, 2021 and 2020 excludes

potentially dilutive securities.

The computations of net loss per share for each year presented is the same for both basic and fully

dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share because the effect

of their inclusion would have been anti-dilutive.

Ended December 31,

to purchase common shares

potentially dilutive securities

Accounting Standards

does not believe that any recently issued, but not yet effective accounting standards, when adopted, will have a material effect on the

accompanying consolidated financial statements.

The Company has adopted the recent accounting standards that are disclosed below.

In June 2016, the FASB issued ASU No.

2016-13, “Financial Instruments

Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments”

(“ASU 2016-13”).

replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model.

CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables,

Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments.

ASU 2016-13 replaces

the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model.

The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables,

held-to-maturity debt securities, and reinsurance receivables.

2 unchanged sentences

in leases recognized by a lessor.

For public business entities that meet the definition of an SEC filer, the standard will be effective

for fiscal years beginning after December 15, 2019, including interim periods in those fiscal years.

For public business entities that meet the definition of an SEC filer, the standard was effective for

fiscal years beginning after December 15, 2019, including interim periods in those fiscal years.

For debt securities with other-than-temporary

impairment, the guidance will be applied prospectively.

Existing purchased credit impaired (PCI) assets will be grandfathered and classified

as purchased credit deteriorated (PCD) assets at the date of adoption.

The asset will be grossed up for the allowance for expected credit

losses for all PCD assets at the date of adoption and will continue to recognize the non-credit discount in interest income based on the

yield of such assets as of the adoption date.

Subsequent changes in expected credit losses will be recorded through the allowance.

all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning

of the first reporting period in which the guidance is effective.

The standard became effective for the Company beginning January 1, 2021.

The adoption of this standard did not have a material impact on the Company’s results of operations, financial condition, cash flows,

and financial statement disclosure.

In December 2019, FASB issued ASU No.

Existing purchased credit impaired (“PCI”) assets will be grandfathered

and classified as purchased credit deteriorated (“PCD”) assets at the date of adoption.

The asset will be grossed up for the

allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the non-credit discount

in interest income based on the yield of such assets as of the adoption date.

Subsequent changes in expected credit losses will be recorded

through the allowance.

For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings

as of the beginning of the first reporting period in which the guidance is effective.

The standard became effective for the Company beginning

January 1, 2020.

The adoption of this standard did not have a material impact on the Company’s results of operations, financial

condition, cash flows, and financial statement disclosure.

December 2019, FASB issued ASU No.

2019-12, Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes .

ASU 2019-12 eliminated certain exceptions and changed guidance on other matters.

exceptions relate to the allocation of income taxes in separate company financial statements, tax accounting for equity method investments

and accounting for income taxes when the interim period year-to-date loss exceeds the anticipated full year loss.

Changes relate to the

accounting for franchise taxes that are income-based and non-income-based, determining if a step up in tax basis is part of a business

combination or if it is a separate transaction, when enacted tax law changes should be included in the annual effective tax rate computation,

and the allocation of taxes in separate company financial statements to a legal entity that is not subject to income tax.

The new standard

is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted.

The Company is currently evaluating the potential impact but does not believe there will be an impact of the adoption of this standard

on its results of operations, financial position and cash flows and related disclosures.

In June 2020, the American Institute of Certified Public Accountants

in conjunction with FASB developed Technical Question and Answer (“TQA”) 3200.18, “Borrower Accounting for a Forgivable

Loan Received Under the Small Business Administration Paycheck Protection Program”, which is intended to provide clarification on

how to account for loans received from the Paycheck Protection Program (“PPP”).

TQA 3200.18 states that an entity may account

for PPP loans under ASC 470, “Debt”

or, if the entity is expected to meet PPP eligibility criteria and the PPP loan is expected

to be forgiven, the entity may account for the loans under International Accounting Standards (“IAS”) 20, “Accounting

for Government Grants and Disclosure of Government Assistance”.

The Company has accounted for PPP loan proceeds under ASC 470 as

allowed by TQA 3200.18.

WESTERN URANIUM & VANADIUM CORP.

eliminated certain exceptions and changed guidance on other matters.

The exceptions relate to the allocation of income taxes in separate

company financial statements, tax accounting for equity method investments, and accounting for income taxes when the interim period year-to-date

loss exceeds the anticipated full year loss.

Changes relate to the accounting for franchise taxes that are income-based and non-income-based,

determining if a step-up in tax basis is part of a business combination or if it is a separate transaction, when enacted tax law changes

should be included in the annual effective tax rate computation, and the allocation of taxes in separate company financial statements

to a legal entity that is not subject to income tax.

The new standard is effective for fiscal years, and interim periods within those

fiscal years, beginning after December 15, 2020, with early adoption permitted.

The Company adopted this standard, and it did not result

in a material impact on its results of operations, financial position, cash flows, and related disclosures.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

4 - MINERAL ASSETS equipment, and Kinetic separation INTELLECTUAL PROPERTY AND OTHER PROPERTY

The Company’s mining properties acquired on August 18, 2014 that the Company retains as of December 31, 2020 include:

Rafael Uranium Project located in Emery County, Utah;

TO THE CONSOLIDATED FINANCIAL STATEMENTS

4 - MINERAL ASSETS equipment, Kinetic separation INTELLECTUAL PROPERTY, AND OTHER PROPERTY

Company’s mining properties acquired on August 18, 2014 that the Company retains as of December 31, 2021 include:

The San Rafael

Uranium Project located in Emery County, Utah;

The Sunday Mine Complex located in western San Miguel County, Colorado;

Van 4 Mine located in western Montrose County, Colorado;

The Sage Mine project located in San Juan County, Utah, and San Miguel

County, Colorado.

These mining properties include leased land in the states of Colorado and Utah.

None of these mining properties

were operational at the date of acquisition.

The Company’s mining properties acquired on September 16, 2015 that

the Company retains as of December 31, 2020 include Hansen, North Hansen, and Hansen Picnic Tree located in Fremont and Teller Counties,

The Company no longer holds any interest in Hansen and Hansen Picnic Tree, see Note 12 for additional information.

also acquired the Keota project located in Weld County, Colorado and the Ferris Haggerty project located in Carbon County Wyoming.

mining assets include both owned and leased land in the states of Utah, Colorado and Wyoming.

All of the mining assets represent properties

which have previously been mined to different degrees for uranium.

As the Company has not formally established

proven or probable reserves on any of its properties, there is inherent uncertainty as to whether or not any mineralized material

can be economically extracted as originally planned and anticipated.

The Company’s mineral properties

and equipment and kinetic separation intellectual property are:

As of December 31,

Mineral properties and equipment

Kinetic separation intellectual property

Oil and Gas Lease and Easement

The Company entered into an oil and gas

lease that became effective with respect to minerals and mineral rights owned by the Company of approximately 160 surface acres

of the Company’s property in Colorado.

As consideration for entering into the lease, the lessee has 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

The Company has also received cash payments from the lessee related to the easement that the Company is recognizing incrementally

over the eight year term of the easement.

The Van 4 Mine

located in western Montrose County, Colorado;

The Sage Mine located in San Juan County, Utah, and San Miguel County, Colorado.

mining properties include leased land in the states of Colorado and Utah.

None of these mining properties were operational at the date

of acquisition.

Company’s mining properties acquired on September 16, 2015 that the Company retains as of December 31, 2021 include Hansen, North

Hansen and Hansen Picnic Tree located in Fremont and Teller Counties, Colorado.

The Company also acquired the Keota project located in

Weld County, Colorado and the Ferris Haggerty project located in Carbon County Wyoming.

These mining assets include both owned and leased

land in the states of Utah, Colorado, and Wyoming.

All of the mining assets represent properties which have previously been mined, to

different degrees, for uranium.

the Company has not formally established proven or probable reserves on any of its properties, there is inherent uncertainty as to whether

or not any mineralized material can be economically extracted as originally planned and anticipated.

Company’s mineral properties and equipment and kinetic separation intellectual property are:

of December 31,

properties and equipment

separation intellectual property

and Gas Lease and Easement

Company entered into an oil and gas lease that became effective with respect to minerals and mineral rights owned by the Company of approximately

160 surface acres of the Company’s property in Colorado.

As consideration for entering into the lease, the lessee has agreed to

pay the Company a royalty from the lessee’s revenue attributed to oil and gas produced, saved, and sold attributable to the net

mineral interest.

The Company has also received cash payments from the lessee related to the easement that the Company is recognizing

incrementally over the eight year term of the easement.

On June 23, 2020, the same entity, as discussed

above, elected to extend the oil and gas lease easement for three additional years , commencing on the date the lease would have previously

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.

WESTERN URANIUM & VANADIUM CORP.

During 2021, the operator completed all well development stages, and each of the eight (8) Blue Teal Fed wells commenced oil

and gas production by mid-August 2021.

During the years ended December 31, 2021 and 2020

the Company recognized aggregate revenue of $ 272,142 and $ 54,620 , respectively, under these oil and gas lease arrangements (See Note 14).

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

4 - MINERAL ASSETS equipment, and Kinetic separation INTELLECTUAL PROPERTY AND OTHER PROPERTY, CONTINUED

Reclamation Liabilities

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

TO THE CONSOLIDATED FINANCIAL STATEMENTS

4 - MINERAL ASSETS equipment, Kinetic separation INTELLECTUAL PROPERTY, AND OTHER PROPERTY (CONTINUED )

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, 2021 and 2020, to be approximately $ 740,446 and $ 906,811 ,

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

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

1 unchanged sentence

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 warranties in the amount of $906,811 and $897,662, respectively.

Reclamation liability activity for the years ended December

31, 2020 and 2019 consists of:

For the Years Ended

Beginning balance

Ending Balance

WESTERN URANIUM & VANADIUM CORP.

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 .

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%.

The net discounted aggregated values as of December 31,

2021 and 2020 were $271,620 and $309,940, respectively.

The gross reclamation liabilities as of December 31, 2021 and 2020 are secured

by financial warranties in the amount of $ 740,446 and $ 906,811 , respectively.

liability activity for the years ended December 31, 2021 and 2020 consists of:

the Years Ended

Discontinuation

of reclamation liability

the first quarter of 2021, the Company received notice that its Ferris Haggerty property was no longer considered to be subject to reclamation

The Company recorded a discontinuation of the Ferris Haggerty property’s present value of $ 2,669 during the first quarter

On April 29, 2021, the Company moved the Ferris Haggerty $ 10,000 restricted cash deposit into its cash after receiving payment

from the state of Wyoming.

During the fourth quarter of 2021, the Company received notice from the State of Colorado that its surety

release request on the Hansen Picnic Tree property had been approved, and as such, this property is no longer subject to reclamation

As the property was not a current development priority, Western completed reclamation on the property.

The Company recorded

a discontinuation of the Hansen Picnic Tree property’s present value of $ 44,793 during the fourth quarter of 2021.

29, 2021, the Company moved the $ 154,936 restricted cash deposit into its cash after receiving payment from the state of Colorado.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

4 - MINERAL ASSETS equipment, and Kinetic separation INTELLECTUAL PROPERTY AND OTHER PROPERTY, CONTINUED

Van 4 Mine Permitting Status

A prior owner of the Company’s 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, whereby

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

Thereafter, the MLRB and the Colorado Attorney

General advised Western that it will not make an additional appeal of the ruling.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

4 - MINERAL ASSETS equipment, Kinetic separation INTELLECTUAL PROPERTY, AND OTHER PROPERTY (CONTINUED )

4 Mine Permitting Status

A prior owner of the Company’s Van 4 Mine

had been granted a first Temporary Cessation from reclamation of the mine by the MLRB which was set to expire June 23, 2017.

its expiration, PRM formally requested an extension through a second Temporary Cessation.

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.

The 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.

On May 8, 2018, the Denver Colorado District Court ruled in favor, whereby the additional five-year Temporary Cessation

period was granted.

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 afterward on March 2, 2020, the MLRB issued an order vacating

the Van 4 Temporary Cessation, terminating mining operations and ordering commencement of final reclamation.

The Company has five

years to complete the reclamation of the Van 4 Mine.

The reclamation commenced in the spring of 2020 and is fully covered by the

reclamation bonds posted upon acquisition of the property.

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 Complex.

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 times.

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.

The 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.

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

In a unanimous vote, the MLRB approved temporary

cessation status for each of the five Sunday Mine Complex permits (Sunday, West Sunday, St.

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 ordering commencement of final reclamation, which must be completed within five years.

The Company commenced reclamation of the Van

4 Mine, but progress has been delayed both by the novel coronavirus (“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.

operations team has made significant progress on the reclamation as all surface structures have been disassembled and removed with the

exception of the head frame.

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 Complex.

At issue was 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

was delayed several times.

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-19 restrictions, the hearing took place utilizing a

virtual-only format.

The Company prevailed in a 3 to 1 decision which acknowledged that the work completed at the Sunday Mine Complex

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 been 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.

In a 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 hearing.

On November 10, 2020, the MLRB issued

a board order which finalized the findings of the October 21, 2020 permit hearing.

On November 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.

WESTERN URANIUM & VANADIUM CORP.

On October 9, 2020, the MLRB issued a board order which finalized the

findings of the July 22, 2020 permit hearing.

On November 10, 2020, the MLRB issued a board order which finalized the findings of the

October 21, 2020 permit hearing.

On November 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 (the “Plaintiffs”) 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.

On May 5, 2021, the Plaintiffs in the Topaz Appeal filed an opening brief with the Denver District Court

seeking to overturn the July 22, 2020 and October 21, 2020 MLRB permit hearing decisions on the Topaz Mine permit.

The MLRB and the Company

were to respond with an answer brief within 35 days on or before June 9, 2021, but instead sought a settlement.

The judicial review process

was delayed as extensions were put in place until August 20, 2021.

A settlement was not reached, and the MLRB and the Company submitted

answer briefs on August 20, 2021.

The Plaintiff submitted a reply brief on September 10, 2021.

On March 1, 2022, the Denver District

Court reversed the MLRB’s orders regarding the Topaz Mine and remanded the case back to MLRB for further proceedings consistent

with its order.

The Company and the MRLB have until April 19, 2022 to appeal the Denver District Court’s ruling.

The Company is

also working toward the completion of an updated Topaz mine Plan of Operations which is a separate federal requirement of the BLM for

the conduct of mining activities on federal land.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

NOTE 5 - Accounts

Payable and Accrued Liabilities

TO THE CONSOLIDATED FINANCIAL STATEMENTS

4 - MINERAL ASSETS equipment, Kinetic separation INTELLECTUAL PROPERTY, AND OTHER PROPERTY (CONTINUED )

Separation Intellectual Property

The Kinetic Separation intellectual property was

acquired in Western’s acquisition of Black Range on September 16, 2015.

Previously Black Range acquired its Kinetic Separation assets

in the dissolution of a joint venture on March 17, 2015, through the acquisition of all the assets of the joint venture and received a

25-year license to utilize all of the patented and unpatented technology owned by the joint venture.

The technology license agreement

for patents and unpatented technology became effective as of March 17, 2015, for a period of 25 years, until March 16, 2040.

no remaining license fee obligations, and there are no future royalties due under the agreement.

The Company has the right to sub-license

the technology to third parties.

The Company may not sell or assign the Kinetic Separation license;

however, the license could be transferred

in the case of a sale of the Company.

The Company has developed improvements to Kinetic Separation during the term of the license agreement

and retains ownership of, and may obtain patent protection on, any such improvements developed by the Company.

The Kinetic Separation patent was filed on September 13, 2012 and granted

on February 14, 2014 by the United States Patent Office.

The patent is effective for a period of 20 years until September 13, 2032.

patent is supported by two provisional patent applications.

The provisional patent applications expired after one year but were incorporated

Patent by reference and claimed benefit prior to their expirations.

The status of the patent and two provisional patent applications

has not changed subsequent to the 2014 patent grant.

The Company has the continued right to use any patented portion of the Kinetic Separation

technology that enters the public domain subsequent to the patent expiration.

The Company anticipates Kinetic Separation will improve the efficiency

of the mining and processing of the sandstone-hosted ore from Western’s conventional mines through the separation of waste from

mineral bearing-ore, potentially reducing transportation, mill processing, and mill tailings costs.

Kinetic Separation is not currently

in use or being applied at any Company mines.

The Company views Kinetic Separation as a cost saving technology, which it will seek to

incorporate into ore production subsequent to commencing scaled production levels.

There are also alternative applications, which the

Company has explored.

5 - Accounts Payable and Accrued Liabilities

payable and accrued liabilities consisted of:

As of December 31,

Trade accounts payable

Accrued liabilities

Total accounts payable and accrued liabilities

Note 6 –

of December 31,

accounts payable

accounts payable and accrued liabilities

Note 6 – Loan Payable

Paycheck Protection Program Loan

On May 6, 2020, the Company obtained the PPP Loan of $73,116.

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.

Business Association that the entire PPP Loan balance and accrued interest was forgiven in full on such date.

The Company recorded the

loan forgiveness as other income in the Company’s consolidated statement of operations and other comprehensive loss.

NOTE 7 –

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 was forgiven in full on such date.

Company recorded the loan forgiveness as other income in the Company’s consolidated statement of operations and other comprehensive

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

7– COMMITMENTS AND CONTINGENCIES

Supply Contract

In December 2015, the Company signed a uranium concentrates supply agreement

with a major U.S.

utility company for delivery commencing in 2018 and continuing for a five year period through 2022.

As the Company does

not possess saleable uranium, a partial assignment agreement was put in place whereby the assignee accepted the Company’s right

to the Year 1 delivery of 125,000 pounds of natural uranium concentrates.

The Year 1 delivery was made during 2018 and the assignee was

paid the full consideration under the agreement.

The Company did not recognize any gain or loss on this transaction.

In Year 2, a partial

assignment agreement was put in place whereby the assignee accepted the Company’s right to the Year 2 delivery of 125,000 pounds

of natural uranium concentrates.

The Year 2 delivery was made during 2019 and the assignee was paid the full consideration under the agreement.

The Company did not recognize any gain or loss on this transaction.

The Company and the U.S.

utility customer mutually agreed to cancel

the Year 3 delivery, rather than pursue a partial assignment;

In December 2015, the Company signed a uranium

concentrates supply agreement with a major United States utility company for delivery commencing in 2018 and continuing for a five-year

period through 2022.

The Company and the major United States utility customer mutually agreed to cancel the Year 3 delivery, rather than

pursue a partial assignment.

There was no delivery during 2020.

See Note 15 for additional information

related to the Year 4 delivery.

Legal proceedings

On June 13, 2019, Black Range was sued

over the original Weld County Colorado deed language.

The lawsuit was filed in the Weld County District Court.

This deed was negotiated

prior to the Company acquiring Black Range in September 2015 by prior management and a bank representing the estate of the property

The plaintiff, the estate’s beneficiaries, assert that it was the intent that they would receive a production override

royalty for oil and gas production from the property, however this language was not included in the deed.

Western’s attorney

has filed a response with the court contesting this allegation.

This only involves royalties on oil and gas production on this

undeveloped property, thus there is no current economic impact.

Court procedure mandates that the parties participate in a mediation

process before bringing the matter before the court.

During the scheduling of the mediation process, the parties agreed to a settlement.

Western executed the Settlement Agreement on December 31, 2019 and the four plaintiffs executed in counterparts on various days

in January 2020.

The plaintiff was given a non-participating royalty interest of 1/8 th for all hydrocarbon and non-hydrocarbon

substances that are produced and sold from the Weld County property.

As the settlement only impacts future economics, the Company

will not recognize any gain or loss from this transaction.

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

NOTE 8 - SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

Authorized Capital

The holders of the Company’s common shares are entitled to one

vote per share.

Holders of common shares are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors

out of legally available funds.

Upon the liquidation, dissolution, or winding up of the Company, holders of common shares are entitled

to share ratably in all assets of the Company that are legally available for distribution.

As of December 31, 2020 and 2019, an unlimited

number of common shares were authorized for issuance.

Private Placement

On April 16, 2019, the Company completed

a private placement of 3,914,632 units at a price of CAD $0.98 (USD $0.73) per unit for gross proceeds of CAD $3,836,340 (USD $2,856,356).

Each unit consisted of one common share and a warrant to purchase one-half of one common share.

Each warrant is exercisable at

a price of CAD $1.70 and expires three years from the date of issuance.

On June 17, 2019, the Company completed

a private placement of 192,278 units at a price of CAD $0.98 (USD $0.73) per unit for gross proceeds of CAD $188,432 (USD $140,555).

Each unit consisted of one common share and a warrant to purchase one-half of one common share.

Each warrant is exercisable at

a price of CAD $1.70 and expires three years from the date of issuance.

Incentive Stock Option Plan

The Company maintains an Incentive Stock

Option Plan (the “Plan”) that permits the granting of stock options as incentive compensation.

Shareholders of the

Company approved the Plan on June 30, 2008 and amendments to the Plan on June 20, 2013, and the Board of Directors approved additional

changes to the Plan on September 12, 2015.

The purpose of the Plan is to attract,

retain and motivate directors, management, staff and consultants by providing them with the opportunity, through stock options,

to acquire a proprietary interest in the Company and benefit from its growth.

The Plan provides that the aggregate number

of common shares for which stock options may be granted will not exceed 10% of the issued and outstanding common shares at the

time stock options are granted.

As of December 31, 2020, a total of 30,083,747 common shares were outstanding, and at that date

the maximum number of stock options eligible for issue under the Plan was 3,008,375.

On January 6, 2020, the Company granted

options under the Plan for the purchase of an aggregate of 600,000 common shares to five individuals consisting of directors, officers,

and consultants of the Company.

The options have a five year term, an exercise price of CAD $1.03 (US $0.81 as of December 31,

2020) and vest equally in thirds commencing initially on the date of grant and thereafter on January 31, 2020, and September 30,

WESTERN URANIUM & VANADIUM CORP.

On March 8, 2021, the Company entered into an agreement with a third party

to complete the Year 4 (2021) uranium concentrate delivery.

The Company paid $ 78,000 in April 2021 to the assignee for which the assignee

made the delivery in May 2021.

This amount is included in settlement expense on the Company’s consolidated statement of operations

and comprehensive loss.

On April 13, 2022, in satisfaction of its Year 5 (2022) delivery obligation, the Company delivered 125,000 pounds

of uranium concentrate (See Note 14).

Acquisition of Physical Uranium

On May 28, 2021, the Company executed a binding

agreement to purchase 125,000 pounds of natural uranium concentrate at the market price.

In December 2021, the Company paid $4,020,000

or $32.16 per pound, in connection with its full prepayment of the purchase price for 125,000 pounds of natural uranium concentrate.

uranium concentrate was delivered to the purchaser on April 13, 2022 , pursuant to the terms of the aforementioned uranium concentrates

supply agreement.

8 - SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

The holders of the Company’s common shares

are entitled to one vote per share.

Holders of common shares are entitled to ratably receive such dividends, if any, as may be declared

by the board of directors, out of legally available funds.

Upon the liquidation, dissolution, or winding down of the Company, holders

of common shares are entitled to share ratably in all assets of the Company that are legally available for distribution.

As of December

31, 2021 and 2020, an unlimited number of common shares were authorized for issuance.

February 16, 2021, the Company closed a non-brokered private placement of 3,250,000 units at a price of CAD $ 0.80 per unit.

The aggregate

gross proceeds raised in the private placement amounted to CAD $ 2,600,000 (USD $ 1,950,509 in net proceeds).

Each unit consisted of one

common share of Western (a “Share”) plus one common share purchase warrant of Western (a “Warrant”).

entitled the holder to purchase one Share at a price of CAD $ 1.20 per Share for a period of three years following the closing date of

the private placement.

A total of 3,250,000 Shares and 3,250,000 Warrants were issued in the private placement.

On March 1, 2021, the Company closed a non-brokered

private placement of 3,125,000 units at a price of CAD $ 0.80 per unit.

The aggregate gross proceeds raised in the private placement amounted

to CAD $ 2,500,000 (USD $ 1,918,797 in net proceeds).

Each unit consisted of one Share plus one Warrant.

Each Warrant entitled the holder

to purchase one Share at a price of CAD $ 1.20 per Share for a period of three years following the closing date of the private placement.

A total of 3,125,000 Shares and 3,125,000 Warrants were issued in the private placement.

On December 17, 2021, the Company closed a non-brokered

private placement of 372,966 units at a price of CAD $ 1.60 per unit.

The aggregate gross proceeds raised in the private placement amounted

to CAD $ 596,746 (USD $ 434,973 in net proceeds).

Each unit consisted of one Share plus one Warrant.

Each Warrant entitled the holder to

purchase one Share at a price of CAD $ 2.50 per Share for a period of three years following the closing date of the private placement.

A total of 372,966 Shares and 372,966 Warrants were issued in the private placement.

During the year ended December 31, 2021, an aggregate

of 2,066,693 warrants were exercised for total gross proceeds of $ 2,004,864 .

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 - SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS (CONTINUED)

Stock Options

Stock Option Plan

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

that permits the granting of stock options as incentive compensation.

Shareholders of the Company approved the Plan on June 30, 2008

and amendments to the Plan on June 20, 2013.

The board of directors approved additional changes to the Plan on September 12, 2015 and

as of October 1, 2021.

purpose of the Plan is to attract, retain, and motivate directors, management, staff, and consultants by providing them with the opportunity,

through stock options, to acquire a proprietary interest in the Company and benefit from its growth.

Plan provides that the aggregate number of common shares for which stock options may be granted will not exceed 10 % of the issued and

outstanding common shares at the time stock options are granted.

As of December 31, 2021, a total of 39,073,122 common shares were outstanding,

and at that date the maximum number of stock options eligible for issue under the Plan was 3,907,312 .

On October 1, 2021, the Company amended the Plan

to allow for the cashless exercise of stock options, among other things.

During the year ended December 31, 2021, the Company

issued 174,716 shares of common stock pursuant to the cashless exercise of 483,330 stock options.

Exercise Price

1 unchanged sentence

Date Fair Value

Outstanding - January 1, 2020

Expired, forfeited, or cancelled

Outstanding –

– January 1, 2021

– December 31, 2021

Exercisable –

– December 31, 2021

Exercise Price

Average Grant

Date Fair Value

Number of Shares

Weighted Average Exercise Price

Weighted Average Contractual Life (Years)

Weighted Average Grant Date Fair Value

Intrinsic Value

Outstanding - January 1, 2020

Expired, forfeited, or cancelled

Outstanding –

December 31, 2019

Exercisable –

December 31, 2019

The Company’s stock based compensation

expense related to stock options for the years ended December 31, 2020 and 2019 was $204,808 and $180,269, respectively.

December 31, 2020, the Company had $0 in unamortized stock option expense.

The Company utilized the Black-Scholes

option pricing model to determine the fair value of these stock options, using the assumptions as outlined below.

Outstanding – December 31, 2020

Exercisable – December 31, 2020

Company’s stock-based compensation expense related to stock options for the years ended December 31, 2021 and 2020 was $ 0 and $204,808,

respectively, which is included in general and administrative expenses on the Company’s consolidated statements of operations and

comprehensive loss.

As of December 31, 2021, the Company had $ 0 in unamortized stock option expense.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 - SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS (CONTINUED)

Stock Options, continued

The Company utilized the Black-Scholes option pricing

model to determine the fair value of these stock options, using the assumptions as outlined below.

Exercise Price

4 unchanged sentences

Expected life (in years)

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

NOTE 8 - SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS, CONTINUED

Exercise Price

Contractual Life

Outstanding - January 1, 2019

Outstanding –

- January 1, 2020

– December 31, 2020

Exercisable –

– December 31, 2020

Outstanding - January 1, 2020

Outstanding –

–January 1, 2021

( 3,647,147 )

( 2,066,693 )

–December 31, 2021

Exercisable –

–December 31, 2021

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 - SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS (CONTINUED)

Warrant Extension

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.

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.

The warrant modification

expense amounted to $639,012.

The Company performed a Black-Scholes valuation

on the warrants both pre-modification and post-modification, using the assumptions below.

The warrant modification expense amounted to

The Company performed a Black-Scholes valuation on the warrants both

pre-modification and post-modification, using the assumptions below.

August 2018 –

Exercise Price

of Warrants Modified

Weighted Average

Risk-Free Interest Rate

life (in years)

Each Warrant initially 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, July 30, and August

9, 2020, respectively.

Each of these dates has been extended by nine months from their respective expiration dates such that the

Warrants will now 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 days.

The Company amended this clause

by lowering the trigger price from $2.50 CAD to $1.83 CAD.

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

Number of Warrants Modified

Dividend Yield

Expected Volatility

Weighted Average Risk-Free Interest Rate

Expected life (in years)

Each Warrant initially 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, July 30, and August 9, 2020, respectively.

Each of these dates has been extended by nine months from their respective expiration dates such that the Warrants will now 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 days.

The Company amended this clause by lowering the trigger price from

$2.50 CAD to $1.83 CAD.

9 - Mining Expenditures

For the Years Ended

the Years Ended

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

10 - Related Party Transactions AND BALANCES

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,

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 technology.

Company has transacted with related parties pursuant to service arrangements in the ordinary course of business, as follows:

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 $362,794 as of December 31, 2021) to Seller

within 60 days of the first commercial application of the kinetic separation technology.

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 is 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.

The tax effects of temporary differences

that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

As of December 31,

Deferred tax assets:

Net operating loss carryovers

Marketable securities

Accrued expenses

Deferred tax assets, gross

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 is estimable, the Company recorded

the deferred contingent consideration as an assumed liability in the amount of $ 362,794 and $ 392,086 as of December 31, 2021 and 2020,

respectively.

The Company also owes Mr.

Glasier reimbursable

expenses in the amount of $ 65,753 as of December 31, 2021.

11 – Income Taxes

tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are

of December 31,

operating loss carryovers

tax assets, gross

valuation allowance

Deferred tax assets, net

Deferred tax liabilities:

Property and equipment

Deferred tax liabilities, net

The change in the Company’s valuation allowance is as

For the Years Ended

Beginning of year

Increase (decrease) in valuation allowance

WESTERN URANIUM & VANADIUM CORP.

( 3,488,821 )

( 2,997,084 )

tax assets, net

tax liabilities:

and equipment

( 5,098,256 )

( 5,034,319 )

tax liabilities, net

$ ( 2,708,887 )

change in the Company’s valuation allowance is as follows:

the Years Ended

in valuation allowance

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

TO THE CONSOLIDATED FINANCIAL STATEMENTS

11 – Income Taxes (CONTINUED )

A reconciliation of the provision for income

taxes with the amounts computed by applying the statutory Federal income tax rate to income from operations before the provision

for income taxes is as follows:

For the Years Ended

reconciliation of the provision for income taxes with the amounts computed by applying the statutory federal income tax rate to income

from operations before the provision for income taxes is as follows:

the Years Ended

federal statutory rate

State and foreign taxes

Permanent differences

Non-deductible expenses

Valuation allowance

Effective income tax rate

The Company has net operating loss carryovers of approximately $21,081,717

for federal and state income tax purposes and net operating loss carryovers of $11,458,182 for Canadian provincial tax purposes which

begin to expire in 2026.

The ultimate realization of the net operating loss is dependent upon future taxable income, if any, of the Company.

Based on losses from inception, the Company

determined that as of December 31, 2020 it is more likely than not that the Company will not realize benefits from the deferred

The Company will not record income tax benefits in the consolidated financial statements until it is determined that

it is more likely than not that the Company will generate sufficient taxable income to realize the deferred income tax assets.

As a result of the analysis, the Company determined that a valuation allowance against the deferred tax assets was required of

$2,997,084 and $2,427,666 as of December 31, 2020 and 2019, respectively.

Internal Revenue Code (“IRC”)

Section 382 imposes limitations on the use of net operating loss carryovers when the share ownership of one or more 5% shareholders

(shareholders owning 5% or more of the Company’s outstanding capital stock) has increased on a cumulative basis over a period

of three years by more than 50 percentage points.

Management cannot control the ownership changes occurring.

Accordingly, there

is a risk of an ownership change beyond the control of the Company that could trigger a limitation of the use of the loss carryover.

The Company has analyzed the issuances of common shares during the years ended December 31, 2020 and 2019 and does not believe

such change of control occurred.

If such ownership change under IRC section 382 had occurred, such change would substantially limit

the Company’s ability in the future to utilize its net operating loss carryforwards.

Option and exploration agreement

Hansen and Picnic Tree Loss of Property

On September 16, 2015, in connection with

the Company’s acquisition of Black Range, the Company assumed an option and exploration agreement (the “Option and

Exploration Agreement”) with STB Minerals, LLC, a Colorado limited liability company (“STB”).

The Option and

Exploration Agreement gives the Company the right to purchase 51% of the mineral rights of specific areas of the Hansen and Picnic

Tree deposits (for which the Company already holds 49% of the rights).

If the Company were to exercise its option under the Option

and Exploration Agreement, it would require the Company to (a) make a cash payment of $2,500,000 immediately upon exercise;

issue common shares to STB amounting to a value of $3,750,000 immediately upon exercise;

and (c) issue common shares to STB amounting

to a value of $3,750,000 on the date that is 180 days following exercise.

The Option and Exploration Agreement was scheduled to

expire by its terms (as extended) on July 28, 2019 if not exercised.

Prior to July 28, 2019, the Company decided

not to exercise the option to purchase the remaining 51% of the mineral rights of specific areas of the Hansen and Picnic Tree

deposits, and thus the option has expired unexercised.

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

NOTE 13 –

and foreign taxes

Non-deductible

income tax rate

Company has net operating loss carryovers of approximately $ 23,451,072 for federal and state income tax purposes and net operating loss

carryovers of $ 12,104,429 for Canadian provincial tax purposes which begin to expire in 2026.

The ultimate realization of the net operating

loss is dependent upon future taxable income, if any, of the Company.

on losses from inception, the Company determined that as of December 31, 2021 it is more likely than not that the Company will not realize

benefits from the deferred tax assets.

The Company will not record income tax benefits in the consolidated financial statements until

it is determined that it is more likely than not that the Company will generate sufficient taxable income to realize the deferred income

As a result of the analysis, the Company determined that a valuation allowance against the deferred tax assets was required

of $ 3,488,821 and $ 2,997,084 as of December 31, 2021 and 2020, respectively.

Internal Revenue Code (“IRC”) Section

382 imposes limitations on the use of net operating loss carryovers when the share ownership of one or more 5% shareholders (shareholders

owning 5% or more of the Company’s outstanding capital stock) has increased on a cumulative basis over a period of three years by

more than 50 percentage points.

Management cannot control any ownership changes that occur.

Accordingly, there is a risk of an ownership

change beyond the control of the Company that could trigger a limitation of the use of the loss carryover.

The Company has analyzed the

issuances of common shares during the years ended December 31, 2021 and 2020 and does not believe such change of control occurred.

such ownership change under IRC section 382 had occurred, such change would substantially limit the Company’s ability to utilize

its net operating loss carryforwards in the future.

12 – FINANCIAL INSTRUMENTS

The Company’s financial instruments

consist of cash, restricted cash, and accounts payable and accrued liabilities.

The fair values of these financial instruments

approximate their carrying values due to the short-term maturity of these instruments.

The Company’s financial instruments

also incorporated marketable securities that are adjusted to fair value at each balance sheet date based on quoted prices which

are considered level 1 inputs.

The reclamation deposits, which are reflected in restricted cash on the consolidated balance sheets,

are deposits mainly invested in certificates of deposit at major financial institutions and their fair values were estimated to

approximate their carrying values.

There were no transfers of financial instruments between Levels 1, 2, and 3 during the years

ended December 31, 2020 and 2019.

Foreign Currency Risk

Foreign currency risk is the risk that

changes in the rates of exchange on foreign currencies will impact the financial position or cash flows of the Company.

The Company’s

reporting currency is the United States Dollar.

The functional currency for Western Uranium & Vanadium Corp.

standalone entity

is the Canadian dollar.

The Company is exposed to foreign currency risks in relation to certain activity that is to be settled

in Canadian funds.

Management monitors its foreign currency exposure regularly to minimize the risk of an adverse impact on

its cash flows.

Concentration of Credit Risk

Concentration of credit risk is the risk

of loss in the event that certain counterparties are unable to fulfil their obligations to the Company.

The Company limits its

exposure to credit loss on its cash and restricted cash by placing its cash with high credit quality financial institutions.

Liquidity Risk

Liquidity risk is the risk that the Company’s

consolidated cash flows from operations will not be sufficient for the Company to continue operating and discharge is liabilities.

The Company is exposed to liquidity risk as its continued operation is dependent upon its ability to obtain financing, either in

the form of debt or equity, or achieving profitable operations in order to satisfy its liabilities as they come due.

As of December

31, 2020, the Company had a working capital of $162,375 and cash on hand of $565,250.

Market risk is the risk that fluctuations

in the market prices of minerals will impact the Company’s future cash flows.

The Company is exposed to market risk on the

price of uranium and vanadium, which will determine its ability to build and achieve profitable operations, the amount of exploration

and development work that the Company will be able to perform, and the number of financing opportunities that will be available.

Management believes that it would be premature at this point to enter into any hedging or forward contracts to mitigate its exposure

to specific market price risks.

WESTERN URANIUM & VANADIUM CORP.

The Company’s financial instruments consist of cash, restricted

cash, accounts payable, contingent consideration and accrued liabilities.

The fair values of these financial instruments approximate

their carrying values due to the short-term maturity of these instruments.

The Company’s financial instruments also incorporate

marketable securities that are adjusted to fair value at each balance sheet date based on quoted prices which are considered level 1

The reclamation deposits, which are reflected in restricted cash on the consolidated balance sheets, are deposits mainly invested

in certificates of deposit at major financial institutions, and their fair values are estimated to approximate their carrying values.

There were no transfers of financial instruments between Levels 1, 2, and 3 during the years ended December 31, 2021 and 2020.

Currency Risk

Foreign currency risk is the risk that changes in the rates of exchange

on foreign currencies will impact the financial position or cash flows of the Company.

The Company’s reporting currency is the

United States dollar.

The functional currency for Western standalone entity is the Canadian dollar.

The Company is exposed to foreign

currency risks in relation to certain activity that is to be settled in Canadian funds.

Management monitors its foreign currency

exposure regularly to minimize the risk of an adverse impact on its cash flows.

Concentration

of Credit Risk

Concentration

of credit risk is the risk of loss in the event that certain counterparties are unable to fulfil their obligations to the Company.

Company limits its exposure to credit loss on its cash and restricted cash by placing its cash with high credit quality financial institutions.

URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in USD)

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.

As the COVID-19 coronavirus continues to spread in the United States, the Company may experience disruptions that could severely impact

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

The extent to which the COVID-19 coronavirus

may impact the Company’s 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 and other countries, business closures or business disruptions and the effectiveness of actions taken in the United States

to contain and treat the disease.

To date, COVID-19 has primarily caused Western delays in reporting, regulatory, and operations.

notably, the Company initiated a request for temporary cessation status for the Sunday Mine Complex as the mines had not been restarted

within the 180-day window due to the direct and indirect impacts of the COVID-19 pandemic.

The Van 4 Mine reclamation process was also

delayed because of the COVID-19 pandemic.

The Company is monitoring COVID-19’s potential impact on the Company’s operations.

TO THE CONSOLIDATED FINANCIAL STATEMENTS

12 – FINANCIAL INSTRUMENTS (CONTINUED )

Liquidity risk is the risk that the Company’s

consolidated cash flows from operations will not be sufficient for the Company to continue operating and discharge is liabilities.

Company is exposed to liquidity risk as its continued operation is dependent upon its ability to obtain financing, either in the form

of debt or equity, or achieve profitable operations in order to satisfy its liabilities as they come due.

As of December 31, 2021, the

Company had a working capital of $ 4,492,169 and cash on hand of $ 880,821 .

risk is the risk that fluctuations in the market prices of minerals will impact the Company’s future cash flows.

The Company is

exposed to market risk on the price of uranium and vanadium, which will determine its ability to build and achieve profitable operations,

the amount of exploration and development work that the Company will be able to perform, and the number of financing opportunities that

will be available.

Management believes that it would be premature at this point to enter into any hedging or forward contracts to mitigate

its exposure to specific market price risks.

13 – COVID-19

The world has been, and continues to be, impacted by COVID-19 pandemic.

COVID-19, and measures to prevent its spread, impacted our business in a number of ways.

The impact of these disruptions and the extent

of their adverse impact on the Company’s financial and operating results will be dictated by the length of time that such disruptions

continue, which will, in turn, depend on the currently unpredictable duration and severity of the impacts of COVID-19, and among other

things, the impact of governmental actions imposed in response to COVID-19 and individuals’ and companies’ risk tolerance

regarding health matters going forward and developing strain mutations.

To date, COVID-19 has primarily caused Western delays in reporting,

regulatory matters, and operations.

Most notably, the Company initiated a request for Temporary Cessation status for the Sunday Mine Complex

in August 2020 as the mines had not been restarted within the 180-day window due to the direct and indirect impacts of the COVID-19 pandemic.

The Van 4 Mine reclamation process was delayed because of COVID-19 pandemic lockdowns.

The need to observe quarantine periods also caused

a limited loss of manpower and delay to the 2021/2022 Sunday Mine Complex project.

The COVID-19 pandemic has also limited Western’s

participation in industry and investor conference events during 2020 and 2021.

The Company is continuing to monitor COVID-19 and its subvariants

and the potential impact of the pandemic on the Company’s operations.

14 – SUBSEQUENT EVENTS

On February 16, 2021, the Company closed on a non-brokered private

placement (the “Private Placement”) of 3,250,000 units (the “Units”) at a price of CAD $0.80 per Unit.

January 20, 2022, the Company closed a non-brokered private placement of 2,495,575 units at a price of CAD $ 1.60 per unit.

The aggregate

gross proceeds raised in this Private Placement amount to CAD $2,600,000.

Each Unit consists of one common share of Western (a “Share”)

plus one common share purchase warrant of Western (a “Warrant”).

Each warrant entitled the holder to purchase one Share at

a price of CAD $1.20 per Share for a period of three years following the closing date of the Private Placement.

A total of 3,250,000 Shares

and 3,250,000 Warrants were issued in the Private Placement.

On March 1, 2021, the Company closed on a non-brokered private placement

(the “Private Placement”) of 3,125,000 units (the “Units”) at a price of CAD $0.80 per Unit.

The aggregate gross

proceeds raised in this Private Placement amount to CAD $2,500,000.

Each Unit consists of one common share of Western (a “Share”)

plus one common share purchase warrant of Western (a “Warrant”).

Each warrant entitled the holder to purchase one Share at

a price of CAD $1.20 per Share for a period of three years following the closing date of the Private Placement.

A total of 3,125,000 Shares

and 3,125,000 Warrants were issued in the Private Placement.

On March 8, 2021, the Company entered into an agreement with a third party

to complete the 2021 (Year 4) uranium concentrate delivery, with reference to Note 7.

The Company agreed to pay $78,000 in April 2021

to the assignee for the assignee making the delivery in May 2021.

The Company did not recognize any gain or loss on this transaction.

gross proceeds raised in the private placement amounted to CAD $ 3,992,920 .

Each unit consisted of one Share plus one Warrant.

entitled the holder to purchase one Share at a price of CAD $2.50 per Share for a period of three years following the closing date of

the private placement.

A total of 2,495,575 Shares and 2,495,575 Warrants were issued in the private placement.

Oil and Gas Royalty

On January 31, 2022, the operator of the Weld

County Colorado oil and gas pooled trust issued the first cumulative royalty payment check in the amount of $ 207,552 for August 2021 through

December 2021 sales.

Royalty checks will subsequently be received monthly.

For the year ended December 31, 2021, this revenue was recognized

within lease and royalty revenue on the consolidated statements of operations and comprehensive loss.

As of December 31, 2021, this amount

was included within other current assets on the consolidated balance sheets.

Uranium Supply Agreement Delivery

On April 13, 2022, in satisfaction of the Year 5 delivery

under its supply contract, the Company delivered 125,000 lbs of uranium concentrate from its prepaid uranium concentrate inventory.

delivery of uranium concentrate resulted in a sale of $ 7,130,000 , at a price of approximately $ 57 per pound.

The Company expects to receive

the cash from this sale in May 2022.

Exercise of Warrants

Subsequent to December 31, 2021 through April 13, 2022,

the Company received CAD $ 2,272,610 and issued 1,352,947 shares of common stock pursuant to the exercise of warrants.

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 9A. Controls and Procedures