What changed in this filing

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Item 1. Financial Statements

2022-08-22 compared with 2022-05-20 · 323 added, 282 removed, 415 unchanged (59% of the section changed)

28 unchanged sentences

Shareholders’ Equity

Common shares, no par value, unlimited authorized shares, 41,837,207 and 39,073,428 shares issued as of March 31, 2022 and December 31, 2021, respectively, and 41,836,901 and 39,073,122 shares outstanding as of March 31, 2022 and December 31, 2021, respectively

Treasury shares, 306 shares held in treasury as of March 31, 2022 and December 31, 2021

Common shares, no par value, unlimited authorized shares, 43,314,644 and 39,073,428 shares issued as of June 30, 2022 and December 31, 2021, respectively, and 43,314,338 and 39,073,122 shares outstanding as of June 30, 2022 and December 31, 2021, respectively

Treasury shares, 306 shares held in treasury as of June 30, 2022 and December 31, 2021

Accumulated deficit

1 unchanged sentence

( 13,161,496 )

Accumulated other comprehensive income

Accumulated other comprehensive (loss) income

Total shareholders’ equity

Total liabilities and shareholders’ equity

The accompanying notes are an integral part of these unaudited condensed

consolidated financial statements.

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

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS

OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER

COMPREHENSIVE LOSS

INCOME (LOSS)

(Stated in USD)

For the Three Months

Ended March 31,

Lease and royalty revenue

For the Three Months Ended

For the Six Months Ended

Cost of revenues

Mining expenditures

3 unchanged sentences

Total operating expenses

Operating loss

( 1,171,446 )

Operating profit/ (loss)

Accretion and interest

( 1,173,603 )

Other comprehensive income

Foreign exchange gain

Comprehensive loss

Other (income)/expense

Settlement expense

Net income/(loss)

Other comprehensive income/(loss)

Foreign exchange gain/(loss)

Comprehensive income/(loss)

$ ( 449,680 )

$ ( 696,330 )

Net loss per share - basic and diluted

Weighted average shares outstanding, basic and diluted

The accompanying notes are an integral part of

these unaudited condensed consolidated financial statements.

Net income/(loss) per share - basic

Net income/(loss) per share - diluted

Weighted average shares outstanding - basic

Weighted average shares outstanding - diluted

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

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES

IN SHAREHOLDERS’ EQUITY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’

(Stated in USD)

1 unchanged sentence

Treasury Shares

Accumulated Other Comprehensive

Comprehensive

Income (Loss)

9 unchanged sentences

$ ( 14,335,099 )

Proceeds from the exercise of warrants

Stock based compensation - stock options

Foreign exchange loss

Balance as of June 30, 2022

$ ( 12,055,549 )

$ ( 100,649 )

Balance as of January 1, 2021

5 unchanged sentences

$ ( 11,379,073 )

The accompanying notes are an integral part of

these unaudited condensed consolidated financial statements.

Proceeds from the exercise of warrants

Foreign exchange gain

Balance as of June 30, 2021

$ ( 11,853,683 )

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

WESTERN URANIUM & VANADIUM CORP.

2 unchanged sentences

(Stated in USD)

For the Three Months Ended March 31,

For the Six Months Ended

Cash Flows From Operating Activities:

$ ( 1,173,603 )

Net income/(loss)

$ ( 766,224 )

Reconciliation of net loss to cash used in operating activities:

Reconciliation of net loss to cash provided by (used in) operating activities:

Accretion of reclamation liability

2 unchanged sentences

Change in operating assets and liabilities:

Prepaid uranium concentrate inventory

Prepaid expenses and other current assets

1 unchanged sentence

Subscription payable

Reclamation liability

Deferred revenue

Net cash used in operating activities

( 1,087,087 )

Cash Flows From Investing Activities

Contingent consideration

Net cash provided by (used in) operating activities

Cash Flows Used In Investing Activities

Purchase of property and equipment

1 unchanged sentence

Cash Flows From Financing Activities

Proceeds from Private Placement - January 20, 2022

Proceeds from warrant exercises

9 unchanged sentences

Cash paid during the period for:

The accompanying notes are an integral part of these unaudited condensed

consolidated financial statements.

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

WESTERN URANIUM & VANADIUM CORP.

28 unchanged sentences

2 – Liquidity and going concern

The Company has incurred continuing losses from

its operations and negative operating cash flows from operations.

As of March 31, 2022, the Company had an accumulated deficit of $ 14,335,099

and working capital of $ 6,849,079 .

Prior to the quarter ending June 30, 2022, the

Company had incurred losses from our operations.

During the three months ended June 30, 2022, the Company generated a net income of $ 2,279,550 ,

principally upon its sale of a prepaid uranium concentrate inventory contract that was purchased in December 2021.

The Company expects

to generate operating losses for the foreseeable future as it incurs expenses to bring its mining operations online.

As of June 30, 2022,

the Company had an accumulated deficit of $ 12,055,549 and working capital of $ 10,870,844 .

Since inception, the Company has met its liquidity

4 unchanged sentences

to CAD $ 3,992,920 (USD $ 3,011,878 in net proceeds).

During the three months ended March 31, 2022, the Company received $ 341,850 in proceeds

During the six months ended June 30, 2022, the Company received $ 2,331,277 in proceeds

from the exercise of warrants.

19 unchanged sentences

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements have been

prepared in accordance with generally accepted accounting principles in the United States (“U.S.

GAAP”) for interim financial

information and with the instructions to Form 10-Q and Rule 10 of Regulation S–X.

Accordingly, they do not include all of the information

and notes required U.S.

However, in the opinion of management of the Company, all adjustments necessary for a fair presentation

of the financial position and operating results have been included in these condensed consolidated financial statements.

These condensed

consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included

in the Company’s Annual Report on Form 10–K for the fiscal year ended December 31, 2021, as filed with the SEC on April 15,

Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for

any subsequent quarters or for the year ending December 31, 2022.

The accompanying condensed consolidated financial

statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S.

for interim financial information and with the instructions to Form 10-Q and Rule 10 of Regulation S–X.

Accordingly, they do not

include all of the information and notes required U.S.

However, in the opinion of management of the Company, all adjustments necessary

for a fair presentation of the financial position and operating results have been included in these condensed consolidated financial statements.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto

included in the Company’s Annual Report on Form 10–K for the fiscal year ended December 31, 2021, as filed with the SEC on

April 15, 2022.

Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that

may be expected for any subsequent quarters or for the year ending December 31, 2022.

The accompanying condensed consolidated financial

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

41 unchanged sentences

Use of Estimates

The preparation of these condensed 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 condensed 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.

The preparation of these condensed 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 condensed 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.

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.

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.

are measured in their functional currency,

which is the local currency.

are 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.

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.

adjustments are included in “Accumulated other comprehensive income” in the condensed consolidated balance sheets.

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 income” in the condensed

consolidated balance sheets.

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 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.

The Company purchases prepaid uranium concentrate

contracts for future delivery of uranium concentrate pursuant to a supply agreement.

The Company recognizes revenue upon the delivery

of the uranium contract to the counterparty and charges to cost of revenues the purchase cost of the uranium concentrate contract upon

such delivery.

The Company leases certain of its mineral properties for the exploration and production of oil and gas reserves.

accounts for lease revenue in accordance with the FASB ASC 842, Leases .

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.

Fair Values of Financial Instruments

35 unchanged sentences

instruments are as follows:

Quoted Prices in Active Markets for Identical Assets or Liabilities

Quoted Prices for Similar Assets or Liabilities in Active Markets

Significant Unobservable Inputs

Marketable securities as of March 31, 2022

Quoted Prices in

Active Markets for

Identical Assets or

Quoted Prices

Liabilities in

Active Markets

Marketable securities as of June 30, 2022

Marketable securities as of December 31, 2021

Stock-Based Compensation

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

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 measurable.

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 recognizes

forfeitures at the time forfeitures occur.

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 period.

Diluted 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 three months ended March 31, 2022 and 2021 excludes potentially dilutive securities.

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

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 fair value of the stock or the fair value

of the service, whichever is more readily measurable.

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

The Company recognizes forfeitures at the time forfeitures occur.

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

(Stated in USD)

3 – SUMMARY OF Significant Accounting Policies, continued

Net Income (Loss) per Share

Basic net income (loss) per share is

computed by dividing net income (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 following is a reconciliation of the numerator and denominator used to

calculate basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2022 and 2021.

computations of net income (loss) per share for each of the three and six months ended June 30, 2021 is the same for both basic and

fully diluted.

Three Months Ended

Six Months Ended

Net (loss) income

$ ( 474,610 )

$ ( 766,224 )

Weighted average shares outstanding, basic

Dilutive effect of options and warrants

Weighted average shares outstanding, diluted

Net (loss) income per share, basic

Net (loss) income per share, 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.

For the Three Months

Ended March 31,

table below have been excluded from the computation of diluted net income (loss) per share because the effect of their inclusion would

have been anti-dilutive.

For the Three Months Ended

For the Six Months Ended

Warrants to purchase common shares

10 unchanged sentences

4 – MINERAL ASSETS equipment, Kinetic separation INTELLECTUAL PROPERTY, AND OTHER PROPERTY

The Company’s mining properties acquired

on August 18, 2014 that the Company retains as of March 31, 2022 include:

The San Rafael Uranium Project located in Emery County, Utah;

The Company’s mining properties acquired on August 18, 2014 that the Company retains as of June 30, 2022 include:

San Rafael Uranium Project located in Emery County, Utah;

The Sunday Mine Complex located in western San Miguel County, Colorado;

The Van 4 Mine located in western Montrose County, Colorado;

Van 4 Mine located in western Montrose County, Colorado;

The Sage Mine 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.

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 March 31, 2022include Hansen, North Hansen and Hansen Picnic Tree located in Fremont

on September 16, 2015 that the Company retains as of June 30, 2022 include Hansen, North Hansen and Hansen Picnic Tree located in Fremont

and Teller Counties, Colorado.

18 unchanged sentences

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 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.

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 which was recognized as income

in the fourth quarter of 2021.

During the three months ended March 31, 2022 and

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 expired.

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.

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 which was recognized as income in the fourth quarter

Royalty receipts were received monthly as earned during each of the months in the first two quarters of 2022

During the three months ended June 30, 2022 and

2021, the Company recognized aggregate revenue of $ 123,037 and $ 16,155 , respectively, and for the six months ended June 30, 2022 and 2021,

the Company recognized aggregate revenue of $ 279,263 and $ 32,310 , respectively, under these oil and gas lease arrangements.

5 unchanged sentences

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 March 31, 2022 and December 31, 2021, to be approximately $ 740,446 and $ 740,446 , 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 4 Mine.

The reclamation cost is fully covered

by the reclamation bonds posted upon acquisition of the property.

The Company adjusted the fair value of its reclamation obligation for

the Van 4 Mine.

The portion of the reclamation liability related to the Van 4 Mine and its related restricted cash are included in current

liabilities and current assets, respectively, at a value of $ 75,057 .

The Company expects to begin incurring the reclamation liability

after 2054 for all mines that are not in reclamation and accordingly, has discounted the gross liabilities over their remaining lives

using a discount rate of 5.4%.

The net discounted aggregated values as of March 31, 2022 and December 31, 2021 were $274,197 and $271,620,

respectively.

The gross reclamation liabilities as of March 31, 2022 and December 31, 2021 are secured by financial warranties in the

amount of $ 740,446 and $ 740,446 , respectively.

Reclamation liability activity for the three months ended March 31,

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 to be $ 740,446 as of June

30, 2022 and December 31, 2021.

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 4 Mine.

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

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

The portion of the reclamation liability related

to the Van 4 Mine and its related restricted cash are included in current liabilities and current assets, respectively, at a value of

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%.

The net discounted aggregated values as

of June 30, 2022 and December 31, 2021 were $291,482 and $271,620, respectively.

The gross reclamation liabilities as of June 30, 2022

and December 31, 2021 are secured by financial warranties in the amount of $ 740,486 and $ 740,446 , respectively.

Reclamation liability activity for the six months ended June 30, 2022

and 2021 consists of:

For the Three Months

Ended March 31,

Beginning balance

For the Six Months Ended

Beginning balance at January 1

Discontinuation of reclamation liability

Ending Balance

Ending Balance at June 30

WESTERN URANIUM & VANADIUM CORP.

4 unchanged sentences

Sunday Mine Complex Permitting Status

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

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

At issue 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

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

In a unanimous vote, the MLRB approved Temporary Cessation status for each of the five Sunday Mine Complex permits (Sunday, West

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,

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 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.

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.

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.

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

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 MLRB

had until April 19, 2022 to appeal the Denver District Court’s ruling.

Neither the Company nor the MLRB appealed the Denver District

Court ruling.

Western anticipates receiving an MLRB board order of reclamation for the Topaz Mine in June/July 2022.

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 MLRB had until April 19, 2022 to appeal the Denver District Court’s ruling.

Neither the Company nor the MLRB appealed the Denver

District Court ruling.

Western anticipates receiving an MLRB board order of reclamation for the Topaz Mine.

The Company is continuing

1 unchanged sentence

of mining activities on federal land that has precluded the Company from commencing active mining operations at the Topaz Mine.

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

(Stated in USD)

4 – MINERAL ASSETS equipment, Kinetic separation INTELLECTUAL PROPERTY, AND OTHER PROPERTY, CONTINUED

Kinetic Separation Intellectual Property

34 unchanged sentences

Mining Equipment Purchases

During the three months ended March 31, 2022 and 2021, Western purchased

During the six months ended June 30, 2022 and 2021, Western purchased

$ 635,876 and $ 65,000 , respectively, in mining equipment and vehicles.

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

(Stated in USD)

NOTE 5 – Accounts Payable

and Accrued Liabilities

Accounts Payable and Accrued Liabilities

payable and accrued liabilities consisted of:

2 unchanged sentences

Total accounts payable and accrued liabilities

WESTERN URANIUM & VANADIUM CORP.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

(Stated in USD)

NOTE 6 – COMMITMENTS AND CONTINGENCIES

Supply Contract

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.

On March 8, 2021, the Company entered into an agreement with a third party to complete the Year 4 (2021) uranium concentrate delivery.

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.

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.

In April 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

This delivery of uranium concentrate resulted in a sale of $7,130,000, at a price of $57.04 per pound.

In May 2022, the Company

received the cash proceeds from this sale (See note 11).

April 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.

Accordingly, during the three and six months ended June 30, 2022, the Company recorded

revenue of $7,223,609 (at a price of approximately $57 per pound) and cost of revenue of $4,044,083 related to the delivery of the uranium.

In May 2022, the Company received the cash proceeds from this sale.

Strategic Acquisition of Physical Uranium

In May 2021, the Company executed a binding agreement

to purchase 125,000 pounds of natural uranium concentrate at $32.16 per pound.

In December 2021, the Company paid $4,020,000, in connection

with its full prepayment of the purchase price for 125,000 pounds of natural uranium concentrate.

This uranium concentrate was subsequently

delivered under the terms of the aforementioned uranium concentrates supply agreement in April 2022.

NOTE 7 – SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

to purchase 125,000 pounds of natural uranium concentrate at approximately $32 per pound.

In December 2021, the Company paid $4,044,083,

in connection with its full prepayment of the purchase price for 125,000 pounds of natural uranium concentrate.

This uranium concentrate

was subsequently delivered under the terms of the aforementioned uranium concentrates supply agreement in April 2022.

NOTE 7 – SHARE CAPITAL AND OTHER EQUITY

Authorized Capital

5 unchanged sentences

of common shares are entitled to share ratably in all assets of the Company that are legally available for distribution.

As of March 31,

As of June 30,

2022 and December 31, 2021, an unlimited number of common shares were authorized for issuance.

Private Placements

On 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 the private placement amounted to CAD $ 3,992,920

(USD $ 3,011,878 in net proceeds).

Each unit consisted 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 $ 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.

On 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 the private placement amounted

to CAD $ 3,992,920 (USD $ 3,011,878 in net proceeds).

Each unit consisted 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 $ 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 to investors and 98,985 Warrants were issued to broker dealers in connection with the private placement.

Warrant Exercises

During the three months ended March 31, 2022, an aggregate of 268,204

During the six months ended June 30, 2022, an aggregate of 1,745,947

warrants were exercised for total gross proceeds of $ 2,331,277 .

3 unchanged sentences

(Stated in USD)

NOTE 7 – SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS, CONTINUED

NOTE 7 – SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

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.

The board of directors approved additional changes to the Plan on September 12, 2015 and as of

October 1, 2021.

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.

The purpose of the Plan is to attract, retain,

4 unchanged sentences

options are granted.

As of March 31, 2022, a total of 41,836,901 common shares were outstanding, and at that date the maximum number of

As of June 30, 2022, a total of 43,314,338 common shares were outstanding, and at that date the maximum number of

stock options eligible for issue under the Plan was 4,331,434 .

2 unchanged sentences

under the Plan for the purchase of an aggregate of 900,000 common shares to five individuals consisting of directors and officers of the

The options have a five year term, an exercise price of CAD $ 1.76 (US $ 1.41 as of March 31, 2022) and vest equally in thirds

commencing initially on the date of grant and thereafter on April 1, 2022, and July 1, 2022.

The options have a five year term, an exercise price of CAD $ 1.76 (US $ 1.37 as of June 30, 2022) and vest equally in thirds commencing

initially on the date of grant and thereafter on April 1, 2022, and July 1, 2022.

The Company utilized the Black-Scholes option

8 unchanged sentences

Outstanding – January 1, 2022

Outstanding – March 31, 2022

Exercisable – March 31, 2022

Outstanding – June 30, 2022

Exercisable – June 30, 2022

The Company’s stock-based compensation expense related to stock

options for the three months ended March 31, 2022 and 2020 was $ 495,120 and $ 0 , respectively, which is included in general and administrative

expenses on the Company’s condensed consolidated statements of operations and comprehensive loss.

As of March 31, 2022 and December

31, 2021, the Company had $ 251,074 and $ 0 in unamortized stock option expense, respectively.

options for the three months ended June 30, 2022 and 2021 was $ 251,074 and $ 0 , respectively, and for the six months ended June 30, 2022

and 2021 stock-based compensation expense was $ 753,219 and $ 0 , respectively, which is included in general and administrative expenses

on the Company’s condensed consolidated statements of operations and comprehensive loss.

As of June 30, 2022, there was no unamortized

stock option expense.

WESTERN URANIUM & VANADIUM CORP.

2 unchanged sentences

(Stated in USD)

NOTE 7 – SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS, CONTINUED

NOTE 7 – SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

Exercise Price

Outstanding - January 1, 2022

Outstanding – March31, 2022

Exercisable – March31, 2022

( 1,745,947 )

Expired/Forfeited

Outstanding – June 30, 2022

Exercisable – June 30, 2022

8 – Mining Expenditures

For the Three Months

Ended March 31,

For the Three Months Ended

For the Six Months Ended

Total mining expenses

9 – Related Party Transactions AND BALANCES

2 unchanged sentences

Prior to the acquisition of Black Range, Mr.

George Glasier, the Company’s

CEO, who is also a director (“Seller”), transferred his interest in a former joint venture with Ablation Technologies, LLC

to Black Range.

In connection with the transfer, Black Range issued 25 million shares of Black Range common stock to Seller and committed

to pay AUD $500,000 (USD $374,499 as of March 31, 2022) to Seller within 60 days of the first commercial application of the kinetic separation

Western assumed this contingent payment obligation in connection with the acquisition of Black Range.

At the date of the acquisition

of Black Range, this contingent obligation was determined to be probable.

Since the deferred contingent consideration obligation is probable

and the amount is estimable, the Company recorded the deferred contingent consideration as an assumed liability in the amount of $ 374,499

and $ 362,794 as of March 31, 2022 and December 31, 2021, respectively.

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 $345,732 as of June 30, 2022) 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 $ 345,732 and $ 362,794 as of June 30, 2022 and December 31, 2021, respectively.

The Company also owed Mr.

Glasier reimbursable expenses in the amount

of $ 21,000 and $ 65,753 as of March 31, 2022 and December 31, 2021, respectively.

of $ 37,500 and $ 65,753 as of June 30, 2022 and December 31, 2021, respectively.

WESTERN URANIUM & VANADIUM CORP.

17 unchanged sentences

a limited loss of manpower and delay to the 2021/2022 Sunday Mine Complex project.

The COVID-19 pandemic has limited and continues to

limit Western’s participation in industry and investor conference events.

The Company is continuing to monitor COVID-19 and its

subvariants and the potential impact of the pandemic on the Company’s operations.

NOTE 11 – SUBSEQUENT EVENTS

Exercise of Warrants

Subsequent to March 31, 2022 and through May 19, 2022, the Company

received CAD $ 2,598,860 and issued 1,477,743 shares of common stock pursuant to the exercise of warrants.

Sale of Prepaid Uranium Concentrate Inventory

In May 2022 prior to the release of March 31,

2022 financial reporting, the Company received $ 7,130,000 related to the sale of its prepaid uranium concentrate inventory in connection

with its supply contract.

The COVID-19 pandemic has limited Western’s participation

in industry and investor conference events.

The Company is continuing to monitor COVID-19and its subvariants and the potential impact

of the pandemic on the Company’s operations.

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

What changed 10-Q

Item 1. Financial Statements