What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-08-22 compared with 2022-05-20 · 609 added, 600 removed, 38 unchanged (97% of the section changed)

Management’s Discussion

and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

The information disclosed in this quarterly report, and the information

incorporated by reference herein, include “forward-looking statements” within the meaning of Section 27A of the Securities

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

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking

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

or strategies regarding the future.

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

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

The words “anticipate,” “believe,”

“continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,”

“plan,” “possible,” “potential,” “predict,” “project,” “should,”

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

a statement is not forward-looking.

The forward-looking statements contained or incorporated by reference

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

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

There can be no assurance that future developments affecting us will be those

that we have anticipated.

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

or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these

forward-looking statements.

These risks and uncertainties include, but are not limited to, those factors described in this Item 2 of Part

I and Item 1A of Part II of this quarterly report.

Should one or more of these risks or uncertainties materialize, or should any of our

assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.

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

except as may be required under applicable securities laws.

The following discussion should be read in conjunction with our condensed

consolidated interim financial statements and footnotes thereto contained in this quarterly report.

Western Uranium & Vanadium Corp.

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

On November 20, 2014, the Company completed a listing process on the Canadian Securities Exchange (“CSE”).

that process, the Company acquired 100% of the members’ interests of Pinon Ridge Mining LLC (“PRM”), a Delaware limited liability

The transaction constituted a reverse takeover (“RTO”) of Western by PRM.

Subsequent to obtaining appropriate shareholder

approvals, the Company reconstituted its board of directors and senior management team.

Effective September 16, 2015, Western completed

its acquisition of Black Range Minerals Limited (“Black Range”).

On August 18, 2014, the Company closed on the

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

Assets purchased included both owned and leased

lands in Utah and Colorado, and all represent properties that have been previously mined for uranium to varying degrees in the past.

acquisition included the purchase of the Sunday Mine Complex.

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

information disclosed in this quarterly report, and the information incorporated by reference herein, include “forward-looking

statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities

Exchange Act of 1934, as amended (the “Exchange Act”).

Forward-looking statements include, but are not limited to, statements

regarding our or our management’s expectations, hopes, beliefs, intentions or strategies regarding the future.

In addition, any

statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying

assumptions, are forward-looking statements.

The words “anticipate,” “believe,” “continue,” “could,”

“estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,”

“potential,” “predict,” “project,” “should,” “would” and similar expressions

may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

forward-looking statements contained or incorporated by reference in this quarterly report are based on our current expectations and

beliefs concerning future developments and their potential effects on us and speak only as of the date of each such statement.

can be no assurance that future developments affecting us will be those that we have anticipated.

These forward-looking statements involve

a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance

to be materially different from those expressed or implied by these forward-looking statements.

These risks and uncertainties include,

but are not limited to, those factors described in this Item 2 of Part I and Item 1A of Part II of this quarterly report.

or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material

respects from those projected in these forward-looking statements.

We undertake no obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities

following discussion should be read in conjunction with our condensed consolidated interim financial statements and footnotes thereto

contained in this quarterly report.

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.

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”).

August 18, 2014, the Company closed on the purchase of certain mining properties in Colorado and Utah from Energy Fuels Holding Corp.

Assets purchased included both owned and leased lands in Utah and Colorado, and all represent properties that have been previously mined

for uranium to varying degrees in the past.

The acquisition included the purchase of the Sunday Mine Complex.

The Sunday Mine Complex

is located in western San Miguel County, Colorado.

The complex consists of the following five individual mines:

the Sunday mine, the Carnation mine, the Saint Jude mine, the West Sunday

mine and the Topaz Mine.

The operation of each of these mines requires a separate permit, and all such permits have been obtained by Western

and are currently valid.

In addition, each of the mines has good access to a paved highway, electric power to existing declines, office/storage/shop

and change buildings, and an extensive underground haulage development with several vent shafts complete with exhaust fans.

Mine Complex is the Company’s core resource property and in July 2021 was assigned “Active” status when mining operations

were restarted.

On September 16, 2015, Western completed its acquisition

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

The acquisition

terms were pursuant to a definitive Merger Implementation Agreement entered into between Western and Black Range.

Pursuant to the agreement,

Western acquired all of the issued shares of Black Range by way of Scheme of Arrangement (“the Scheme”) under the Australian

Corporation Act 2001 (Cth) (the “Black Range Transaction”), with Black Range shareholders being issued common shares of Western

on a 1 for 750 basis.

On August 25, 2015, the Scheme was approved by the shareholders of Black Range, and on September 4, 2015, Black

Range received approval by the Federal Court of Australia.

In addition, Western issued options to purchase Western common shares to certain

employees, directors, and consultants.

Such stock options were intended to replace Black Range stock options outstanding prior to the

Black Range Transaction on the same 1 for 750 basis.

The Company has registered offices at 330 Bay

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

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

Its principal business activity is the acquisition and development

of uranium and vanadium resource properties in the states of Utah and Colorado in the United States of America (“United States”).

Recent Developments

February 2021 Private Placement

On February 16, 2021, the Company closed on 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.

Each unit consisted of one common share of Western plus one common share purchase warrant of Western.

Each warrant entitled

the holder to purchase one common share at a price of CAD $1.20 per share for a period of three years following the closing date of the

the Sunday mine, the

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

The operation of each of these mines requires a separate

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

In addition, each of the mines has good access to

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

development with several vent shafts complete with exhaust fans.

The Sunday Mine Complex is the Company’s core resource property

and in July 2021was assigned “Active” status when mining operations were restarted.

September 16, 2015, Western completed its acquisition of Black Range, an Australian company that was listed on the Australian Securities

Exchange until the acquisition was completed.

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

into between Western and Black Range.

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

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

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

On August 25, 2015, the Scheme was approved

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

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

Such stock options were intended

to replace Black Range stock options outstanding prior to the Black Range Transaction on the same 1 for 750 basis.

Company has registered offices at 330 Bay Street, Suite 1400, Toronto, Ontario, Canada, M5H 2S8, and its common shares are listed on

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

Its principal

business activity is the acquisition and development of uranium and vanadium resource properties in the states of Utah and Colorado in

the United States of America (“United States”).

2022 Private Placement

A total of 3,250,000 common shares and 3,250,000 warrants were issued in the private placement.

March 2021 Private Placement

On March 1, 2021, the Company closed on a non-brokered

On January 20, 2022, the Company closed on a non-brokered

private placement of 2,495,575 units at a price of CAD $1.60 per unit.

1 unchanged sentence

to CAD $3,992,920.

Each unit consisted of one common share and one common share purchase warrant.

Each warrant entitled the holder to

purchase one common 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 common shares and 3,125,000 warrants were issued in the private placement.

December 2021 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 common share plus one warrant.

Each warrant entitled the holder to purchase

one common share at a price of CAD $2.50 per share for a period of three years following the closing date of the private placement.

total of 372,966 common shares and 372,966 warrants were issued in the private placement.

January 2022 Private Placement

On January 20, 2022, the Company closed on 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.

Each unit consisted of one common share of Western plus one common share purchase warrant of Western.

Each warrant entitled the holder

to purchase one common 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 common shares and 2,495,575 warrants were issued in the private placement.

Bullen Property (Weld County)

The Bullen Property is an oil and gas property

located in Weld County Colorado.

The Company acquired this non-core property in 2015 in the Black Range Minerals Limited acquisition,

and Black Range purchased the property in 2008 for its Keota Uranium Project.

entitled the holder to purchase one common 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 common 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.

Property (Weld County)

Bullen Property is an oil and gas property located in Weld County Colorado.

The Company acquired this non-core property in 2015 in the

Black Range Minerals Limited acquisition, and Black Range purchased the property in 2008 for its Keota Uranium Project.

In 2017, the Company signed a three year oil and

1 unchanged sentence

The consideration was

in the form of upfront bonus payments and backend 3/16 th production royalty payment.

in the form of upfront bonus payments and a backend 3/16 th production royalty payment.

Additional right-of-way easement agreements

2 unchanged sentences

uranium, and other mineral resources.

A 2019 lawsuit was filed in the Weld County District

Court over the original Bullen Property deed language which was negotiated before the Company acquired Black Range by prior management

and a bank representing the estate of the property owner.

The Company settled with the plaintiffs by awarding the estate’s beneficiaries

a non-participating royalty interest of 1/8th for all hydrocarbon and non-hydrocarbon substances that are produced and sold from the property.

In early 2020, Bison Oil & Gas traded

this lease to Mallard Exploration (“Mallard”), Mallard subsequently filed an application with the Colorado Oil &

Gas Conservation Commission (“COGCC”) to update the permit to create a new pooled unit.

During 2021, the operator advanced through the oil well production stages:

2019 lawsuit was filed in the Weld County District Court over the original Bullen Property deed language which was negotiated before

the Company acquired Black Range by prior management and a bank representing the estate of the property owner.

The Company settled with

the plaintiffs by awarding the estate’s beneficiaries a non-participating royalty interest of 1/8th for all hydrocarbon and non-hydrocarbon

substances that are produced and sold from the property.

early 2020, the operator filed an application with the Colorado Oil & Gas Conservation Commission (“COGCC”) to update

the permit to create a new pooled unit.

Subsequently d uring 2021, the operator advanced through the oil well production stages:

drilling was completed in the first quarter, wellfield completion/fracking was completed during the second quarter, drill out was completed

in July, and flowback was completed in August.

By August 2021, each of the eight (8) Blue Teal Fed wells had commenced oil and gas production.

By August 2021, each of the eight (8) wells had commenced oil and gas production.

The first royalty payment was made in January 2022 and monthly royalty payments have been received subsequently.

These wells continue

to rank among the top Colorado producing wells.

Due to the success of the first 8 wells, the operator has decided to develop

a second set of 8 wells within Western’s royalty area during 2022.

During May 2022, the operator completed drilling all 8 of the

the next oil well production stages will follow in the same sequence as the 2021 wellfield development.

During the three months ended March 31, 2022 and

2021 the Company recognized aggregate revenue of $156,226 and $16,155, respectively, under these oil and gas lease arrangements.

31, 2022, the operator of the Weld County Colorado oil and gas pooled trust issued the first cumulative royalty payment in the amount

of $207,552 for August 2021 through December 2021 sales, which was recognized as income in the fourth quarter of 2021.

Kinetic Separation Licensing

During 2016, the Company submitted documentation

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

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

During May and

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

On July 22, 2016, CDPHE closed the

comment period.

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

months ended June 30, 2022 and 2021, we recognized aggregate revenue or $279,263 and $32,310, respectively, under these oil and gas lease

arrangements.

On January 31, 2022, the operator of the Weld County Colorado oil and gas pooled trust issued the first cumulative royalty

payment in the amount of $207,552 for August 2021 through December 2021 sales, which was recognized as income in the fourth quarter of

Due to the success of the first 8 wells, the operator

decided to develop a second set of 8 wells within Western’s royalty area during 2022.

During May 2022, the operator completed drilling

the new wells, fracking occurred during May and June, and drill out was completed in July.

Given the pace advancing through the oil well

production stages, the Company is anticipating first oil and gas production from the new well pad in the September timeframe.

Separation Licensing

2016, the Company submitted documentation to the Colorado Department of Public Health and Environment (“CDPHE”) for a determination

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

the state of Colorado.

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

On July 22, 2016, CDPHE closed the comment period.

In connection with this matter, the CDPHE consulted with the NRC.

In response, the CDPHE received an advisory opinion,

dated October 16, 2016, which did not contain support for the NRC’s opinion and with which the Company’s regulatory counsel

does not agree.

NRC’s advisory opinion recommended that Kinetic Separation should be regulated as a milling operation but did recognize

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

produced after Kinetic Separation is completed on uranium-bearing ores.

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

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

in 2017, the Company’s regulatory counsel prepared significant documentation in preparation for a prospective submission.

13, 2019, the Company’s regulatory counsel submitted a white paper to the NRC entitled “Recommendations on the Proper Legal

and Policy Interpretation for Using Kinetic Separation Processes at Uranium Mine Sites.” On July 24, 2020, the NRC staff responded

with a letter in support of the original conclusion.

Western’s regulatory counsel has proposed alternatives.

However, management

has decided not to proceed at this time, given its present opportunity set.

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

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

In response, the

CDPHE received an advisory opinion, dated October 16, 2016, which did not contain support for the NRC’s opinion and with which

the Company’s regulatory counsel does not agree.

NRC’s advisory opinion recommended that Kinetic Separation should be regulated

as a milling operation but did recognize that there may be exemptions to certain milling regulatory requirements because of the benign

nature of the non-uranium bearing sands produced after Kinetic Separation is completed on uranium-bearing ores.

On December 1, 2016,

the CDPHE issued a determination that the proposed Kinetic Separation operations at the Sunday Mine Complex must be regulated by the

CDPHE through a milling license.

Beginning in 2017, the Company’s regulatory counsel prepared significant documentation in preparation

for a prospective submission.

On September 13, 2019, the Company’s regulatory counsel submitted a white paper to the NRC entitled

“Recommendations on the Proper Legal and Policy Interpretation for Using Kinetic Separation Processes at Uranium Mine Sites.”

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

Western’s regulatory counsel has

proposed alternatives.

However, management has decided not to proceed at this time, given its present opportunity set.

Mine Complex Permitting Status

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)

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

2020 permit hearing.

On November 12, 2020, a coalition of environmental groups filed a lawsuit 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 Plaintiff 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.

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 Company is continuing

to work 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 that has precluded the Company from commencing active mining operations at the Topaz Mine.

Sunday Mine Complex Project 2021 Restart

The SMC project entailed the development of multiple SMC ore bodies

and involves a shift in the base of operations from the St.

Jude Mine (2019) to the Sunday Mine (2021).

Underground development began

in August following mine ventilation, power upgrades, and increasing explosive capabilities.

The first target was the extension of the

drift (tunnel) 150 feet to reach the first surface exploration drill hole to access the GMG Ore Body (GMG).

Early results were positive

as drilling toward the GMG resulted in the location of ore-grade material within thirty feet of the existing mine workings.

Notably, only

limited exploration drilling has been done in this area due to the mountainous terrain on the surface above.

As drifting proceeded, very

high-grade ore continued to be intersected through the drift path and on both sides of the drift.

As a result, the team shifted from development

From December 2021 to March 2022, over 3,000 tons of high-grade uranium/vanadium ore was mined from the drift.

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 12, 2020, a coalition of environmental

groups filed a lawsuit against the MLRB seeking a partial appeal of the July 22, 2020 decision by requesting termination of the Topaz

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 Plaintiff 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

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

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

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 to work 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 that has precluded the Company

from commencing active mining operations at the Topaz Mine.

Mine Complex 2021/2022 Project

SMC project entailed the development of multiple SMC ore bodies and involves a shift in the base of operations from the St.

Mine (2019) to the Sunday Mine (2021).

Underground development began in August 2021 following mine ventilation, power upgrades, and

increasing explosive capabilities.

The first target was the extension of the drift (tunnel) 150 feet to reach the first surface

exploration drill hole to access the GMG Ore Body (GMG).

Early results were positive as drilling toward the GMG resulted in the

location of ore-grade material within thirty feet of the existing mine workings.

Notably, only limited exploration drilling has been

done in this area due to the mountainous terrain on the surface above.

As drifting proceeded, very high-grade ore continued to be

intersected through the drift path and on both sides of the drift.

As a result, the team shifted from development to mining.

December 2021 to March 2022, over 3,000 tons of high-grade uranium/vanadium ore was mined from the drift.

The mining contractor

calculated grades based upon on site scintillometer readings.

At the end of March 2022, the mining contractor engaged by Western

decided to retire from contract mining operations.

As a result of this decision, Western will take over the mining operations and has

acquired a full complement of mining equipment.

The equipment is being prepared for operations and upgrades to mine ventilation, support

buildings and infrastructure are underway.

Further mine development and ore production is targeted for resumption in thesummer after upgrades

are completed.

Western’s mining team will be expanded to facilitate mine development and full ore production.

Uranium Section 232 Investigation/Nuclear Fuel Working Group

An investigation under Section 232 of the Trade

Expansion Act of 1962 was undertaken by the DoC in 2018 to assess the impact to national security of the importation of the vast majority

of uranium utilized by the approximately 100 operative civilian nuclear reactors within the United States.

In response to the Section

232 report, the White House disseminated a Presidential Memoranda in July 2019.

At that time, President Trump formed the Nuclear Fuel

Working Group (“NFWG”) to find solutions for reviving and expanding domestic nuclear fuel production and reinvigorating recommendations.

In April 2020, the DoE released the NFWG report

entitled “Restoring America’s Competitive Nuclear Energy Advantage – A strategy to assure U.S.

national security.”

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

nuclear fuel cycle.

The NFWG findings and recommendations presented are a positive outcome for U.S.

the end of March 2022, the mining contractor engaged by Western decided to retire from contract mining operations.

As a result of

this decision, Western will take over the mining operations and has acquired a full complement of mining equipment.

The equipment

has been prepared for operations and upgrades to mine ventilation, support buildings and infrastructure are ongoing.

development and ore production is targeted for resumption in the fall and Western’s

in-house mining team will be expanded to facilitate mine development and full ore production.

Section 232 Investigation/Nuclear Fuel Working Group Process

investigation under Section 232 of the Trade Expansion Act of 1962 was undertaken by the DoC in 2018 to assess the impact to national

security of the importation of the vast majority of uranium utilized by the approximately 100 operative civilian nuclear reactors within

the United States.

In response to the Section 232 report, the White House disseminated a Presidential Memoranda in July 2019.

time, President Trump formed the Nuclear Fuel Working Group (“NFWG”) to find solutions for reviving and expanding domestic

nuclear fuel production and reinvigorating recommendations.

April 2020, the DoE released the NFWG report entitled “Restoring America’s Competitive Nuclear Energy Advantage – A

strategy to assure U.S.

national security.” The report outlines a strategy for the reestablishment of critical capabilities and

direct support to the front end of the U.S.

domestic nuclear fuel cycle.

The NFWG findings and recommendations presented are a positive

outcome for U.S.

uranium miners;

however, the ultimate

outcome and timing remains uncertain as the continuing process requires approvals and budget appropriation from Congress and implementation

however, the ultimate outcome and timing remains uncertain as the continuing process requires approvals

and budget appropriation from Congress and implementation by U.S.

government agencies.

This remains an ongoing process where a number

of bills were introduced in both the U.S.

Senate and House to implement the key provisions of the NFWG report’s recommendations.

remains an ongoing process where a number of bills were introduced in both the U.S.

Senate and House to implement the key provisions

of the NFWG report’s recommendations.

In November 2020, after the U.S.

election, the Senate Committee on Appropriations released its funding measures and allocations recommending

the creation and funding of the American Uranium Reserve.

In October 2020, the DoC extended the Russian Suspension Agreement for an additional

20 years until 2040.

Existing categories of quotas on imports of Russian uranium into the U.S.

were reduced by a graduated scale, and

additional provisions were modified to eliminate loopholes.

An extension of this agreement was among the NFWG’s recommendations.

In further implementation of the report’s recommendations, the DoE made multiple investment awards to companies advancing new nuclear

technologies.

TerraPower and X-energy received awards to build demonstration models of their advanced reactor designs, and NuScale received

support to deploy the first U.S.

small modular reactor (“SMR”) plan comprised of 12 modules at the Idaho National Laboratory.

election, the Senate Committee on Appropriations released

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

In October 2020, the DoC

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

Existing categories of quotas on imports of Russian

uranium into the U.S.

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

of this agreement was among the NFWG’s recommendations.

In further implementation of the report’s recommendations, the DoE

made multiple investment awards to companies advancing new nuclear technologies.

TerraPower and X-energy received awards to build demonstration

models of their advanced reactor designs, and NuScale received support to deploy the first U.S.

small modular reactor (“SMR”)

plan comprised of 12 modules at the Idaho National Laboratory.

The International Development Finance Corp.

signed a letter of intent to finance NuScale’s development of 42 SMR modules in South

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

government has increased its industry

support to a level not seen in decades.

This is being done to level the playing field versus state-sponsored foreign entities.

In December 2020, U.S.

Congress passed the “COVID-Relief

and Omnibus Spending Bill,” which included $75 million for the establishment of a strategic U.S.

signed a letter of intent

to finance NuScale’s development of 42 SMR modules in South Africa.

In an acknowledgement of the future growth potential of new

nuclear technologies, the U.S.

government has increased its industry support to a level not seen in decades.

This is being done to level

the playing field versus state-sponsored foreign entities.

December 2020, U.S.

Congress passed the “COVID-Relief and Omnibus Spending Bill,” which included $75 million for the establishment

of a strategic U.S.

Uranium Reserve.

The Biden-Harris

Administration has rolled the 2021 funding into its 2022 fiscal year budget to continue this initiative.

In July 2021, the uranium Section

232 report was publicly released.

The report concluded that uranium imports were “weakening our internal economy” and “threaten

to impair the national security” and recommended immediate actions to “enable U.S.

producers to recapture and sustain a market

share of U.S.

The Biden-Harris Administration has rolled the 2021 funding into its 2022 fiscal year budget to

continue this initiative.

In July 2021, the uranium Section 232 report was publicly released.

The report concluded that uranium imports

were “weakening our internal economy” and “threaten to impair the national security” and recommended immediate

actions to “enable U.S.

producers to recapture and sustain a market share of U.S.

uranium consumption”.

The DoE continues to work on establishing the parameters of the program and in August 2021,

the DoE put out a Request for Information (RFI) to obtain additional comments related to the establishment of the DoE’s Uranium

Reserve program.

On October 13, 2021, Western submitted a response to the Request for Information:

Establishment of the Uranium Reserve

Program to the DoE’s National Nuclear Security Administration.

The Russian invasion of Ukraine has fast tracked

the Uranium Reserve Program.

The DoE continues

to work on establishing the parameters of the program and in August 2021, the DoE put out a Request for Information (RFI) to obtain additional

comments related to the establishment of the DoE’s Uranium Reserve program.

On October 13, 2021, Western submitted a response to

the Request for Information:

Establishment of the Uranium Reserve Program to the DoE’s National Nuclear Security Administration.

Russian invasion of Ukraine has fast tracked the Uranium Reserve Program.

On May 5, 2022, the U.S.

Secretary of Energy Jennifer Granholm’s testified before the Senate Committee

on Energy and Natural Resources that the DoE “would make direct purchases of domestically mined and converted uranium this calendar

year to establish a strategic uranium reserve”.

Secretary Granholm’s comments make clear that the U.S.

Secretary of Energy Jennifer Granholm’s

testified before the Senate Committee on Energy and Natural Resources that the DoE “would make direct purchases of domestically

mined and converted uranium this calendar year to establish a strategic uranium reserve”.

Secretary Granholm’s comments make

clear that the U.S.

is thinking larger.

Granholm stated that “We should not be sending any money to Russia for any American energy or for any other reason,” and “if

we move away from Russia right away, we want to make sure we have the ability to continue to keep the fleet afloat.” To accomplish

this she further disclosed that the DoE is “developing a full-on uranium strategy that’s going through the interagency process.”

In February, Russia invaded Ukraine commencing a war between the two

Russia is a major global energy supplier and both countries are top ten uranium producers, and Russia is a global leader in

nuclear fuel services.

Granholm stated that “We should not be sending any money to Russia for any American energy

or for any other reason,” and “if we move away from Russia right away, we want to make sure we have the ability to continue

to keep the fleet afloat.” To accomplish this she further disclosed that the DoE is “developing a full-on uranium strategy

that’s going through the interagency process.”

Subsequently in June, the DoE issued a Request

for Proposals (“RFP”) to purchase up to 1 million pounds of uranium at an initial funding level of $75 million into the newly

established U.S.

Uranium Reserve.

The RFP sought uranium that was already held in inventory at Honeywell’s Metropolis Works Plant,

conversion facility.

Western did not hold qualifying inventory, and as such did not submit a bid proposal.

producers have submitted bids, and the DoE process defined a 60 day evaluation period, until the end of September for the successful bidders

to be determined.

Upon this award, the fully approved funding will be depleted, and Western looks forward to next steps to expand the

Uranium Reserve program.

As originally proposed, the program contemplated $150M in annual purchases for a 10 year period which would

aggregate to $1.5 billion over its lifetime.

February, Russia invaded Ukraine commencing a war between the two countries.

Russia is a major global energy supplier and both countries

are top ten uranium producers, and Russia is a global leader in nuclear fuel services.

Thus, these actions caused a surge in energy prices.

On the day prior to the invasion, the spot price of uranium

was less than $44/lbs and it increased to a decade high peak of over $63/lbs, before subsequently declining below $50/lbs spot prices.

Russia’s invasion of Ukraine has called into question their role and future participation in the nuclear fuel cycle.

been the target of unprecedented economic sanctions which have created bottlenecks of Russian exports, including nuclear fuel.

of a large global dependence, nuclear fuel purchasers are continuing to diversify away from Russian nuclear fuel.

As a result of these

new realities, the U.S.

Congress is considering both sanctions and multiple pieces of legislation focusing on prohibiting the importation

of Russian uranium and nuclear fuel, which is likely to benefit the U.S.

On the day prior to the invasion, the spot price of uranium was less than $44/lbs and it increased to a decade high peak of over $63/lbs,

before subsequently declining below $50/lbs spot price levels.

Russia’s invasion of Ukraine has called into question their role

and future participation in the nuclear fuel cycle.

Russia has been the target of unprecedented economic sanctions which have created

bottlenecks of Russian exports, including nuclear fuel.

In spite of a large global dependence, nuclear fuel purchasers are continuing

to diversify away from Russian nuclear fuel.

As a result, of these new realities, the U.S.

Congress is considering both sanctions and

multiple pieces of legislation focusing on prohibiting the importation of Russian uranium and nuclear fuel which is likely to benefit

domestic mining industry.

Further, there remains the possibility

that Russia might reverse-sanction the United States and not make nuclear fuel deliveries.

Vanadium Section 232 Investigation

In the United States,

a petition for an investigation under Section 232 of the Trade Expansion Act of 1962 was requested by two domestic companies in November

Further, there remains the possibility that Russia might reverse-sanction the United States and not

make nuclear fuel deliveries.

Recently, we have witnessed Russia rationing

oil and gas into specific European countries.

The speculation is that this is to keep those countries from building inventory, such that

additional Russian restrictions would have a greater impact during the winter months.

Thus the weaponizing of energy is a tactic that

is already being deployed in the Russia/Ukraine war and is increasingly receiving consideration from countries that have Russian energy

dependencies, like the United States dependency upon Russian nuclear fuel which has built-up over time.

Section 232 Investigation

the United States, a petition for an investigation under Section 232 of the Trade Expansion Act of 1962 was requested by two domestic

companies in November 2019.

In June of 2020, the U.S.

Secretary of Commerce, Wilbur Ross, initiated an investigation into whether the present quantities or

circumstances of vanadium imports into the United States threaten to impair the national security.

The Section 232 National Security Investigation

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

In July 2021, the report was made

It concluded that vanadium imports “do not threaten to impair the national security as defined in Section 232,” but

identified and recommended “several actions that would help to ensure reliable domestic sources of vanadium and lessen the potential

for imports to threaten national security.” No action has been taken on these recommendations.

Biden-Harris Administration

The positive momentum has continued for the nuclear and uranium mining

sector due to the Biden-Harris Administration’s emphasis on climate change.

The “Plan to Build a Modern Sustainable Infrastructure

and an Equitable Clean Energy Future” emphasizes climate change solutions.

Upon taking office, the Biden team immediately rejoined

the Paris Agreement and continued its pursuit of campaign promises of investments in clean energy, creating jobs, producing clean electric

power, and achieving carbon-pollution free energy in electricity generation by 2035.

Since taking office, President Biden has given all

agencies climate change initiatives and has started a climate change working group.

Secretary of Commerce, Wilbur Ross, initiated an investigation into whether the

present quantities or circumstances of vanadium imports into the United States threaten to impair the national security.

232 National Security Investigation of Imports of Vanadium was concluded, and a report was submitted to President Biden in February 2021.

In July 2021, the report was made public.

It concluded that vanadium imports “do not threaten to impair the national security as

defined in Section 232,” but identified and recommended “several actions that would help to ensure reliable domestic sources

of vanadium and lessen the potential for imports to threaten national security.” No action has been taken on these recommendations.

Administration Initiatives

positive momentum has continued for the nuclear and uranium mining sector due to the Biden-Harris Administration’s emphasis on

climate change.

The “Plan to Build a Modern Sustainable Infrastructure and an Equitable Clean Energy Future” emphasizes climate

change solutions.

Upon taking office, the Biden team immediately rejoined the Paris Agreement and continued its pursuit of campaign promises

of investments in clean energy, creating jobs, producing clean electric power, and achieving carbon-pollution free energy in electricity

generation by 2035.

Since taking office, President Biden has given all agencies climate change initiatives and has started a climate

change working group.

The existing U.S.

nuclear reactor fleet currently

produces in excess of 50% of U.S.

clean energy, and new, advanced nuclear technologies promise to generate additional clean energy.

White House national climate advisor told the media in a press briefing that the Biden-Harris Administration intends to seek a national

clean energy standard that includes nuclear energy.

The Company believes that nuclear energy will be increasingly able to compete on a

level playing field with renewable energy technologies.

There has been legislative advancement of implementation mechanisms

including tax credits, subsidies, and/or U.S.

utilities being required to produce an increasing proportion of electricity generation from

clean energy power sources.

President Biden’s Build Back Better agenda has several components supportive of nuclear power generation.

Already signed into law is the $1.2 trillion Infrastructure Investment and Jobs Act that provides the DoE funding to prevent the premature

retirement of existing nuclear plants and invest in advanced nuclear projects.

The separate $1.7 trillion Build Back Better Reconciliation

Legislation, which has not yet made its way through the U.S.

Congress, further addresses climate change through the inclusion of a zero-emission

nuclear power production credit.

If passed in its current form, beginning in 2022 qualified nuclear power facilities would be eligible

to receive a base credit and a bonus credit if certain requirements are met.

President Biden attended the United Nations Climate Change Conference

(COP26) in Glasgow, Scotland.

His administration simultaneously released a proposed plan targeting the reduction of methane emissions.

Many of the proposed initiatives from the Climate Summit target reduced utilization of fossil fuels and if implemented expand future opportunities

for nuclear power generation, given its ability to provide baseload and carbon-free energy.

To conclude the COP2, in a surprise announcement,

and China pledged to work together to slow global warming.

nuclear reactor fleet currently produces in excess of 50% of U.S.

clean energy, and new, advanced

nuclear technologies promise to generate additional clean energy.

A White House national climate advisor told the media in a press briefing

that the Biden-Harris Administration intends to seek a national clean energy standard that includes nuclear energy.

The Company believes

that nuclear energy will be increasingly able to compete on a level playing field with renewable energy technologies.

has been legislative advancement of implementation mechanisms including tax credits, subsidies, and/or U.S.

utilities being required

to produce an increasing proportion of electricity generation from clean energy power sources.

President Biden’s Build Back Better

agenda has several components supportive of nuclear power generation.

Already signed into law is the $1.2 trillion Infrastructure Investment

and Jobs Act that provides the DoE funding to prevent the premature retirement of existing nuclear plants and invest in advanced nuclear

The separate $1.7 trillion Build Back Better Reconciliation Legislation, which has not yet made its way through the U.S.

further addresses climate change through the inclusion of a zero-emission nuclear power production credit.

If passed in its current form,

beginning in 2022 qualified nuclear power facilities would be eligible to receive a base credit and a bonus credit if certain requirements

Biden attended the United Nations Climate Change Conference (COP26) in Glasgow, Scotland.

His administration simultaneously released

a proposed plan targeting the reduction of methane emissions.

Many of the proposed initiatives from the Climate Summit target reduced

utilization of fossil fuels and if implemented expand future opportunities for nuclear power generation, given its ability to provide

baseload and carbon-free energy.

To conclude the COP2, in a surprise announcement, the U.S.

and China pledged to work together to slow

global warming.

This is significant because the U.S.

and China represent the two countries

with the largest CO2 emissions.

They jointly pledged to take “enhanced climate actions” to meet the 2015 Paris Agreement temperature

goal of limiting global warming to less than 1.5C.

The Harris-Biden Administration has shifted its focus toward the Russia/Ukraine

conflict and the implementation of multiple rounds of sanctions, participating in the international response, and providing support.

DoE has been outspoken and is working hard at creating nuclear fuel solutions to address the current dependence and promote a geopolitical

realignment of the nuclear fuel cycle away from Russia.

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 uranium supply agreement in April 2022.

Uranium Supply Agreement Delivery

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 inventory.

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.

Sprott Physical Uranium Trust

The Sprott Physical Uranium Trust (U.UN) (the “Trust”)

took over the former Uranium Participation Corp.

(U.TO) and launched an at-the-market program (ATM) on August 17, 2021 to raise capital

for the closed-ended trust.

Since the inception of the ATM program, the Trust has bought significant quantities of uranium causing spot

prices to increase.

The New York Stock Exchange (NYSE) declined the U.S.

and China represent the two countries with the largest CO2 emissions.

pledged to take “enhanced climate actions” to meet the 2015 Paris Agreement temperature goal of limiting global warming to

less than 1.5C.

Harris-Biden Administration has shifted its focus toward the Russia/Ukraine conflict and the implementation of multiple rounds of sanctions,

participating in the international response, and providing support.

The DoE has been outspoken and is working hard at creating nuclear

fuel solutions to address the current dependence and promote a geopolitical realignment of the nuclear fuel cycle away from Russia.

On August 16, 2022, President Biden signed into law the Inflation

Reduction Act which is a significantly reduced version of the Build Back Better plan.

This Act provisions for $369 billion in climate

and energy investments.

A portion of which will significantly benefit the U.S.

domestic nuclear industry.

Notably, while protecting the

climate, there is a leveling of the playing field with renewable energy which has long benefited from government support.

benefits to nuclear split across existing reactors, new advanced reactors, low enriched uranium and high-assay low enriched uranium nuclear

fuels, and in multiple stages of the domestic nuclear fuel cycle.

We believe that each of these benefits increase future aggregate demand.

Acquisition of Physical Uranium

May 2021, the Company executed a binding agreement to purchase 125,000 pounds of natural uranium concentrate at approximately $32 per

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 and sold under the terms of the uranium supply agreement

in the second quarter of 2022.

Supply Agreement Delivery

the second quarter of 2022, in satisfaction of the Year 5 delivery under our supply contract, we delivered and sold 125,000 lbs of uranium

concentrate from our prepaid uranium concentrate inventory.

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

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

Physical Uranium Trust

Sprott Physical Uranium Trust (U.UN) (the “Trust”) took over the former Uranium Participation Corp.

(U.TO) and launched

an at-the-market program (ATM) on August 17, 2021 to raise capital for the closed-ended trust.

Since the inception of the ATM

program, the Trust has bought significant quantities of uranium causing spot prices to increase.

The New York Stock Exchange (NYSE)

declined the U.S.

listing application for the anticipated Sprott U.S.

uranium trust vehicle.

Sprott has stated that they do not have an intent to further pursue a listing on a US exchange “in the near

term.” Since the Trust was launched it has purchased in excess of 37 million pounds of uranium, and Sprott has grown the Canadian

listed vehicle to ~ $3 billion.

Due to Sprott’s success a clone physical uranium fund was launched

on May 12, 2022.

The ANU Energy OEIC Ltd fund raised over $75 million dollars in a private placement and has made its first uranium purchase.

Kazatomprom, the world’s largest producer of uranium is a strategic investor and uranium supplier to ANU Energy.

Kazatomprom has

made the first uranium delivery at Cameco’s Port Hope conversion facility.

The world has been, and continues to be, impacted by the novel coronavirus

(“COVID-19”) pandemic.

COVID-19, and measures to prevent its spread, impacted our business in a number of ways.

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.

need to observe quarantine periods also caused a limited loss of manpower and delay to the 2021 / 2022 Sunday Mine Complex project.

COVID-19 pandemic has limited and continues to limit Western’s participation in industry and investor conference events.

is continuing to monitor COVID-19 and its subvariants and the potential impact of the pandemic on the Company’s operations.

Results of Operations

For the Three Months Ended March 31,

Lease and royalty revenue

Mining expenditures

Professional fees

General and administrative

Consulting fees

Total operating expenses

Operating loss

Accretion and interest

Other Comprehensive income

Foreign exchange gain

Comprehensive Loss

Net loss per share - basic and diluted

Three Months Ended March 31, 2022 as Compared to the Three Months

Ended March 31, 2021

Our consolidated net loss for the three months ended March 31, 2022

and 2021 was $1,173,603 and $291,614 or $0.03 and $0.01 per share, respectively.

The principal components of these year over year changes

are discussed below.

Our comprehensive loss for the three months ended March 31, 2022 and

2021 was $1,116,942 and $246,650, respectively.

Our revenue for the three months ended March 31, 2022 and 2021 was

$156,226 and $16,155, respectively.

This revenue resulted from lease revenue pursuant to a July 18, 2017 oil and gas lease agreement,

which was extended for an additional three years in 2020 at a 150% increased rate.

The February 2, 2018 pipeline easement, with the initial

operator has terminated resulting in a decrease in this portion of revenue.

The July 1, 2018 right-of-way agreement with the new operator

was consistent between periods.

physical uranium trust vehicle.

Sprott has stated that they do

not have an intent to further pursue a listing on a US exchange “in the near term.” In the one year since the Trust

initiated its ATM program in August 2021, it has purchased about 39 million pounds of uranium, and grown

the net asset value to ~ $2.8 billion.

to Sprott’s success a clone physical uranium fund was launched on May12, 2022.

The ANU Energy OEIC Ltd fund raised over $75 million

dollars in a private placement and has made its first uranium purchase.

Kazatomprom, the world’s largest producer of uranium is

a strategic investor and uranium supplier to ANU Energy.

Kazatomprom has made the first uranium delivery at Cameco’s Port Hope

conversion facility.

world has been, and continues to be, impacted by the novel coronavirus (“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 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.

of Operations

the Three Months Ended

the Six Months Ended

and administrative

Total operating

profit/(loss)

Interest expense, net

(income)/expense

income/(loss)

Other Comprehensive

income/(loss)

exchange gain/(loss)

Comprehensive

income/(loss)

Months Ended June 30, 2022 as Compared to the Three Months Ended June 30, 2021

consolidated net income for the three months ended June 30, 2022 was $2,279,550 or $0.05 per share and consolidated net loss for the

three months ended June 30, 2021 was $474,610 or $0.01 per share.

The principal components of these year over year changes are discussed

comprehensive income for the three months ended June 30, 2022 was $2,058,762 and comprehensive loss was $449,680 for the three

months ended June 30, 2021.

revenue for the three months ended June 30, 2022 and 2021 was $7,346,646 and $16,155, respectively.

The increase in revenue of

$7,330,491 was primarily related to the revenue recognized upon the satisfaction of the uranium concentrate delivery under our

supply contract whereby we delivered 125,000 lbs of uranium concentrate from our prepaid uranium concentrate inventory.

of revenue was $4,044,083 for the three months ended June 30, 2022 as compared to $0 for the three months ended June 30, 2021.

This increase

was a result of recording the cost of the uranium concentrate that was sold and delivered during the second quarter of 2022.

expenditures for the three months ended June 30, 2022 were $122,588 as compared to $40,034 for the three months ended June 30, 2021.

The increase in mining expenditures of $82,554, or 206% was principally attributable to mining expenditures related to restarting mining

operations at the Sunday Mine Complex.

fees for the three months ended June 30, 2022 were $212,459 as compared to $104,481 for the three months ended June 30, 2021.

increase in professional fees of $107,978 or 103% was primarily due to an increase in legal fees and other fees to support mining

and Administrative

and administrative expenses for the three months ended June 30, 2022 were $655,757 as compared to $262,799 for the three months ended

June 30, 2021.

The increase in general and administrative expense of $392,958, or 150% is primarily due to a $249,207 increase in stock-based

compensation expense, $49,063 increase in payroll expenses, and an increase of $32,515 in investor relations expenditures.

fees for the three months ended June 30, 2022 were $20,307 as compared to $4,009 for the three months ended June 30, 2021.

in consulting fees of $16,298 or 407% was principally due to our reduced utilization of consultants during the second quarter of 2021

due to COVID-19.

and interest for the three months ended June 30, 2022 was $15,902 as compared to $1,001 for the three months ended June 30, 2021.

exchange loss for the three months ended June 30, 2022 was $220,788 as compared to a gain of $24,930 for the three months ended June

The foreign exchange loss of is primarily due to the strengthening of the US dollar as compared to the Canadian dollar.

Months Ended June 30, 2022 as Compared to the Three Months Ended June 30, 2021

consolidated net income for the six months ended June 30, 2022 was $1,105,947 or $0.03 per share and consolidated net loss was $766,224

or $0.02 per share for the six months ended June 30, 2021.

The principal components of these year over year changes are discussed below.

comprehensive income for the six months ended June 30, 2022 was $941,820 and comprehensive loss was $696,330 for the six months ended

June 30, 2021.

revenue for the six months ended June 30, 2022 and 2021 was $7,502,872 and $32,310, respectively.

The increase in revenue of $7,470,562

was primarily related to the revenue recognized upon the satisfaction of the uranium concentrate delivery under our supply contract whereby

we delivered 125,000 lbs of uranium concentrate from our prepaid uranium concentrate inventory.

of revenue was $4,044,083 for the six months ended June 30, 2022 as compared to $0 for the six months ended June 30, 2021.

This increase

was a result of recording the cost of the uranium concentrate that was sold and delivered during the second quarter of 2022.

expenditures for the six months ended June 30, 2022 were $411,626 as compared to $87,893 for the six months ended June 30, 2021.

increase in mining expenditures of $323,733, or 368% was principally attributable to mining expenditures related to restarting mining

operations at the Company’s Sunday Mine Complex.

fees for the six months ended June 30, 2022 were $348,519 as compared to $150,868 for the six months ended June 30, 2021.

in professional fees of $197,651, or 131% was primarily due to an increase in legal fees and other fees to support mining operations.

and Administrative

and administrative expenses for the six months ended June 30, 2022 were $1,518,819 as compared to $473,980 for the six months ended June

The increase in general and administrative expense of $1,044,839, or 220% is due to a $744,327 increase in stock-based compensation

expense, $138,925 increase in payroll expenses, and an increase of $32,515 in investor relations expenditures.

fees for the six months ended June 30, 2022 were $59,819 as compared to $4,009 for the six months ended June 30, 2021.

The increase in

consulting fees of $55,810 was principally due to our reduced utilization of consultants during the first half of 2021 due to COVID-19.

and interest for the six months ended June 30, 2022 was $18,059 as compared to $3,343 for the six months ended June 30, 2021.

exchange loss for the six months ended June 30, 2022 was $164,127 as compared to a gain of $69,894 for the six months ended June 30,

The foreign exchange loss is primarily due to the strengthening of the US dollar as compared to the Canadian dollar.

and Capital Resources

Company’s cash and restricted cash balance as of June 30, 2022 was $11,985,167.

The Company’s cash position is highly dependent

on its ability to raise capital through the issuance of debt and equity and its management of expenditures for mining development and

for fulfillment of its public company reporting responsibilities.

Management believes that in order to finance the development of the

mining properties and Kinetic Separation, the Company will be required to raise additional capital by way of debt and/or equity.

could potentially require additional capital if the scope of Company’s projects expands.

This outlook is based on the Company’s

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

external opportunities.

cash provided by (used in) operating activities

cash provided by operating activities was $5,820,748 for the six months ended June 30, 2022, as compared with $753,946 used in operating

activities for the six months ended June 30, 2021.

Of the $5,820,748 in net cash provided by operating activities for the six months

ended June 30, 2022, $1,105,947 is derived from our net income before non-cash adjustments.

Changes in our operating assets and liabilities

for the period primarily includes a decrease in prepaid uranium concentrate inventory and a decrease of $146,177 in subscription payable.

cash used in investing activities

cash used in investing activities was $635,876 for the six months ended June 30, 2022, as compared with $65,000 for the six months

ended June 30, 2021.

This net cash used consists of purchases of equipment and vehicles to build out our in-house mining

cash provided by financing activities

cash provided by financing activities for the six months ended June 30, 2022 and 2021 were $5,343,155 and $5,466,722, respectively.

the six months ended June 30, 2022 we completed a private placement representing aggregate net proceeds of $3,011,878 and received $2,331,277

from the exercise of warrants.

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 $722,488 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 $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 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.

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.

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.

During 2021, the operator completed all well development stages and each of the

eight (8) wells commenced oil and gas production by mid-August 2021.

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.

On January 31, 2022, the operator of the Weld County Colorado oil and gas pooled trust issued the first

1 unchanged sentence

in the fourth quarter of 2021.

Subsequently, in 2022, monthly royalty checks were disseminated for sales during each of the months in

the first quarter.

Mining Expenditures

Mining expenditures for the three months ended March 31, 2022 were

$289,038 as compared to $47,859 for the three months ended March 31, 2021.

The increase in mining expenditures of $241,179, or 504% was

principally attributable to mining expenditures related to restarting mining operations at the Company’s Sunday Mine Complex during

the third quarter of 2021.

Professional Fees

Professional fees for the three months ended March 31, 2022 were $136,060

as compared to $46,387 for the three months ended March 31, 2021.

The increase in professional fees of $89,673, or 193% was primarily

due to a $63,585 increase in legal fees.

General and Administrative

General and administrative expenses for the three months ended March

31, 2022 were $863,062 as compared to $211,181 for the three months ended March 31, 2021.

The increase in general and administrative expense

of $651,881, or 309% is due to a $495,120 increase in stock-based compensation expense, $89,862 increase in payroll expenses, and an increase

of $19,940 in utilities expenses from the Sunday Mine Complex project.

Consulting Fees

Consulting fees for the three months ended March 31, 2022 were $39,512

as compared to $0 for the three months ended March 31, 2021.

The increase in consulting fees of $39,512 was principally due to the Company’s

reduced utilization of consultants during the first quarter of 2021 due to COVID-19.

Accretion and Interest

Accretion and interest for the three month ended December 31, 2022

was $2,157 as compared to $2,342 for the three months ended March 31, 2021.

Foreign Exchange

Foreign exchange gain for the three months ended March 31, 2022 was

a gain of $56,661 as compared to a gain of $44,964 for the three months ended March 31, 2021.

The change of the foreign exchange gain

of $11,697 is primarily due to from holding assets in Canadian Dollars during a period when the currency appreciated and the translation

gain from using United States Dollars as the reporting currency.

Liquidity and Capital Resources

The Company’s cash balance as of March 31, 2022 was $2,798,217.

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

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

Management believes

that in order to finance the development of the mining properties and Kinetic Separation, the Company will be required to raise additional

capital by way of debt and/or equity.

Western could potentially require additional capital if the scope of Company’s projects expands.

This outlook is based on the Company’s current financial position and is subject to change if opportunities become available based

on current exploration program results and/or external opportunities.

Net cash used in operating activities

Net cash used in operating activities was $1,080,087 for the three

months ended March 31, 2022, as compared with $283,482 for the three months ended March 31, 2021.

Of the $1,080,087 in net cash used in

operating activities for the three months ended March 31, 2022, $1,173,603 is derived from our net loss before non-cash adjustments.

in our operating assets and liabilities for the period primarily include an increase of $59,800 in prepaid expenses and other current

assets, a decrease of $195,338 in accounts payable and accrued expenses, a decrease of $146,177 in subscription payable, and a decrease

of $16,155 in deferred revenue.

Net cash used in investing activities

Net cash used in investing activities was $369,900 for the three months

ended March 31, 2022, as compared with $65,000 for the three months ended March 31, 2021.

This capital expenditure relates to purchasing

property and equipment for our mining operations.

Net cash provided by financing activities

Net cash provided by financing activities for the three months ended

March 31, 2022 and 2021 were $3,353,728 and $3,869,306, respectively.

The Company completed a private placement during the first quarter

of 2022 representing aggregate net proceeds of $3,011,878 and received $341,850 from the exercise of warrants during the three months

ended March 31, 2022.

Reclamation Liability

The Company’s mines are subject to certain

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

The reclamation liabilities of the United States

mines are subject to legal and regulatory requirements, and estimates of the costs of reclamation are reviewed periodically by the applicable

regulatory authorities.

The reclamation liability represents the Company’s best estimate of the present value of future reclamation

costs in connection with the mineral properties.

The Company determined the gross reclamation liabilities of the mineral properties as

of 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 commencing final reclamation.

The Company has begun the reclamation of the

Van 4 Mine and 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 and moved the portion of the reclamation liability related to the Van

4 Mine and its related restricted cash into 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.

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

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 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

During the years ended March 31, 2022 and 2021 the Company recognized

aggregate revenue of $156,226 and $16,155, respectively, under these oil and gas lease arrangements.

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.

Subsequently, in 2022, monthly royalty

checks were received for sales during each of the months in the first quarter.

Related Party Transactions

The Company has transacted with related parties pursuant to service

arrangements in the ordinary course of business, as follows:

Prior to the acquisition of Black Range, Mr.

George Glasier, the Company’s

CEO, who is also a director of the Company (“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.

Going Concern

The Company has incurred continuing losses from its operations and

as of March 31, 2022, the Company had an accumulated deficit of $14,335,099 and working capital of $6,849,079.

Since inception, the Company has met its liquidity requirements principally

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

On January 20, 2022, the Company closed on 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).

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

The Company’s ability to continue its operations and to pay its

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

Management’s plans include seeking

to procure additional funds through debt and equity financings, to secure regulatory approval to fully utilize its Kinetic Separation

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

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

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

operating costs and required debt service.

If the Company is unable to obtain sufficient amounts of additional capital, it may be required

to reduce the scope of its planned product development, which could harm its financial condition and operating results, or it may not

be able to continue to fund its ongoing operations.

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

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

The accompanying

condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

Off Balance Sheet Arrangements

As of March 31, 2022, there were no off-balance sheet transactions.

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

Critical Accounting Estimates and Policies

The preparation of these condensed consolidated financial statements

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

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

Significant assumptions about the future and other

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

to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, include, but are not

limited to, the following:

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

of intangible assets, valuation and impairment assessments on mineral properties, deferred contingent consideration, the reclamation liability,

valuation of stock-based compensation, valuation of available-for-sale securities and valuation of long-term debt, HST and asset retirement

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

Quantitative and Qualitative Disclosures

About Market Risk

Not applicable.

Subsequently, in 2022, monthly royalty checks were received for sales during each of the months in the

first quarter.

Party Transactions

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 of the Company (“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.

Company also owed Mr.

Glasier reimbursable expenses in the amount of $37,500 and $65,753 as of June 30, 2022 and December 31, 2021, respectively.

to the quarter ending June 30, 2022, we had incurred losses from our operations.

During the three months ended June 30, 2022, we generated

a net income of $2,279,550, principally upon our sale of a prepaid uranium concentrate inventory contract that we purchased in December

2021.We expect to generate operating losses for the foreseeable future as we incur expenses to bring our mining operations online.

of June 30, 2022, we had an accumulated deficit of $12,055,549 and working capital of $10,870,844.

inception, the Company has met its liquidity requirements principally through the issuance of notes and the sale of its common shares.

On January 20, 2022, the Company closed on a non-brokered private placement of 2,495,575 units at a price of CAD $1.60 per unit.

aggregate gross proceeds raised in the private placement amounted to CAD $3,992,920 (USD $3,011,878 in net proceeds).

During the six

months ended June 30, 2022, the Company received $2,331,277 in proceeds from the exercise of warrants.

Company’s ability to continue its operations and to pay its obligations when they become due is contingent upon the Company obtaining

additional financing.

Management’s plans include seeking to procure additional funds through debt and equity financings, to secure

regulatory approval to fully utilize its Kinetic Separation and to initiate the processing of ore to generate operating cash flows.

are no assurances that the Company will be able to raise capital on terms acceptable to the Company or at all, or that cash flows generated

from its operations will be sufficient to meet its current operating costs and required debt service.

If the Company is unable to obtain

sufficient amounts of additional capital, it may be required to reduce the scope of its planned product development, which could harm

its financial condition and operating results, or it may not be able to continue to fund its ongoing operations.

These conditions raise

substantial doubt about the Company’s ability to continue as a going concern to sustain operations for at least one year from the

issuance of the accompanying financial statements.

The accompanying condensed consolidated financial statements do not include any adjustments

that might result from the outcome of these uncertainties.

Balance Sheet Arrangements

of June 30, 2022, there were no off-balance sheet transactions.

The Company has not entered into any specialized financial agreements

to minimize its investment risk, currency risk or commodity risk.

Accounting Estimates and Policies

preparation of these condensed consolidated financial statements requires management to make certain estimates, judgments and assumptions

that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and reported

amounts of expenses during the reporting period.

assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period,

that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ

from assumptions made, include, but are not limited to, the following:

fair value of transactions involving common shares, assessment

of the useful life and evaluation for impairment of intangible assets, valuation and impairment assessments on mineral properties, deferred

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

and valuation of long-term debt, HST and asset retirement obligations.

Other areas requiring estimates include allocations of expenditures,

depletion and amortization of mineral rights and properties

Quantitative and Qualitative Disclosures About Market Risk

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 2. Management’s Discussion and Analysis