What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-08-14 compared with 2024-05-20 · 678 added, 478 removed, 75 unchanged (94% of the section changed)

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

Forward-Looking

Management’s Discussion and Analysis

of Financial Condition and Results of Operations

Forward-Looking Statements

The information disclosed in this quarterly report,

10 unchanged sentences

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 interim consolidated 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.

Western is a Canadian domestic issuer and Canadian reporting issuer.

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 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.

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

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

The following discussion should be read in conjunction

with our condensed interim consolidated 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.

Western is a Canadian domestic issuer and Canadian

reporting issuer.

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.

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.

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

and in July 2021 was 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.

United States Securities and Exchange Commission (“Commission”) rules, the Black Range transaction triggered the Company

being deemed a United States domestic issuer and losing its foreign private issuer exemption.

On April 29, 2016, the Company filed a

Form 10 registration statement with the Commission after shifting its basis of accounting from IFRS to U.S.

On June 28, 2016, the

Company’s registration statement became effective and Western became a United States reporting issuer.

June 30, 2023, Western re-qualified as a foreign private issuer as that term is defined in Rule 3b-4(c) promulgated under the Exchange

As a result, the Company may now utilize certain accommodations made to foreign private issuers, including (1) an exemption from

complying with the Commission’s proxy rules, (2) an exemption from the Company’s insiders having to comply with the reporting

and short-swing trading liability provisions of Section 16 under the Exchange Act, (3) the ability to make periodic filings with the

Commission on the Form 20-F and Form 6-K foreign issuer forms, and (4) the ability to offer and sell unrestricted securities outside

of the United States pursuant to Rule 903 of Regulation S.

The Company plans to take advantage of these accommodations.

Company currently has decided to voluntarily continue to file periodic reports with the Commission using domestic issuer forms including

filing annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

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”).

Property (Weld County)

2017, the Company entered into an oil and gas lease that became effective with respect to minerals and mineral rights owned by the Company

of approximately 160 surface acres of the Company’s property in Colorado.

As consideration for entering into the lease, the lessee

has agreed to pay the Company a royalty 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 operator elected to extend the oil and gas lease easement for three additional years through July 2023.

This was done

to provide additional time in order to complete well construction and commence oil and gas production.

During 2021, the operator completed

a first set of eight (8) wells which commenced oil and gas production by August 2021.

During 2022, the operator completed a second set

of eight (8) wells which commenced oil and gas production by August 2022.

All sixteen (16) wells remain in production and monthly royalty

payments will be ongoing in perpetuity as long as oil and/or gas are produced from the pooled unit containing these sixteen (16) wells.

the three months ended March 31, 2024 and 2023, we recognized aggregate revenue of $54,273 and $165,975, respectively, under these

oil and gas lease arrangements.

Mine Complex Project Update

continues to ramp up operations to achieve its annualized production target of 1 million pounds of uranium and 6 million pounds of vanadium.

At the beginning of 2024, Western expanded the Sunday Mine Complex mining operations by deploying two alternating mining crews and two

alternating drilling teams who operate seven days a week.

Following the expansion of infrastructure deeper into the West Sunday Mine,

the mining teams commenced driving a drift approximately 2,700 feet to the Leonard & Clark deposit.

So far, the teams have drifted

approximately 317 feet and are now deploying a jumbo drill to increase progress.

drilling teams continue to define additional mining areas utilizing underground horizontal drilling.

Between January 25th and March 31st,

the team has drilled a total of 8,170 linear feet with 43 long hole drill targets at three separate areas of the GMG deposit.

Fuel and Uranium Effect from the Russian Invasion of Ukraine

start of the Russia/Ukraine war created extraordinary volatility in uranium markets during the first half of 2022.

At the peak, the

spot price was at an 11 year high.

Prior to the invasion on February 24, 2022, uranium spot prices were in the $43 per pound range

and rose to slightly over $63 per pound by April 2022;

an increase of approximately $20 per pound.

Later in May 2022 and June 2022,

the spot price receded to $45 levels, before recovering to the $50 +/- per pound price level.

This price level was maintained for an

extended period as the immediate ban/sanctions anticipated by investors of nuclear fuel and services from Russia couldn’t be

markets followed the price action of physical uranium prices in speculation that governments worldwide would sanction and ban nuclear

fuel from Russia.

This was in recognition of Russia’s dominant position in nuclear fuel services including 38% of world conversion

capacity and 46% of world enrichment capacity.

The market position of Rosatom, Russia’s national nuclear company, was developed

through decades of government subsidies.

However, because of the lack of replacement capacity in the global nuclear fuel cycle, Rosatom

has avoided sanctions.

of the Ukraine invasion, new contracts are largely not being signed with Rosatom, but deliveries under existing contracts continue to

Customer dependencies upon the Russian supply of uranium, conversion and enrichment are being addressed slowly by governments

as alternative suppliers are not currently available.

However, a desire to stay away from bad actors and the threat of Russia weaponizing

energy exports or a Russian embargo has elicited responses.

Worldwide, utilities have accelerated their contracting of non-Russian conversion

and enrichment services.

New uranium supply agreements are being signed with western producers.

In the United States, multiple new nuclear

funding programs have already been put in place and the language from the Department of Energy has only gotten stronger.

The Secretary

of Energy recently declared:

“The United States wants to be able to source its own fuel from ourselves and that’s why we

are developing a uranium strategy.”

January 2023, ban and sanction discussions intensified as Rosatom was shown to have become an active participant in the Ukraine war.

An article entitled “Russia’s nuclear entity aids war effort, leading to calls for sanctions” was published by the

Washington Post.

Obtained documents show that the Rosatom state nuclear power conglomerate was supplying the Russian military with “components,

technology, and raw materials for missile fuel” to be used in the Ukraine war.

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.

Under United States Securities and Exchange Commission

(“Commission”) rules, the Black Range transaction triggered the Company being deemed a United States domestic issuer and losing

its foreign private issuer exemption.

On April 29, 2016, the Company filed a Form 10 registration statement with the Commission after

shifting its basis of accounting from IFRS to U.S.

On June 28, 2016, the Company’s registration statement became effective

and Western became a United States reporting issuer.

On June 30, 2023, Western re-qualified as a foreign private issuer

as that term is defined in Rule 3b-4(c) promulgated under the Exchange Act.

As a result, the Company may now utilize certain accommodations

made to foreign private issuers, including (1) an exemption from complying with the Commission’s proxy rules, (2) an exemption from

the Company’s insiders having to comply with the reporting and short-swing trading liability provisions of Section 16 under the

Exchange Act, (3) the ability to make periodic filings with the Commission on the Form 20-F and Form 6-K foreign issuer forms, and (4)

the ability to offer and sell unrestricted securities outside of the United States pursuant to Rule 903 of Regulation S.

The Company plans

to take advantage of these accommodations.

However, the Company currently has decided to voluntarily continue to file periodic reports

with the Commission using domestic issuer forms including filing annual reports on Form 10-K, quarterly reports on Form 10-Q and current

reports on Form 8-K.

On the subsequent measurement date June 30, 2024, Western reconfirmed its qualification as a foreign private issuer.

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

Bullen Property (Weld County)

In 2017, the Company entered into an oil and gas

lease that became effective with respect to minerals and mineral rights owned by the Company of approximately 160 surface acres of the

Company’s property in Colorado.

As consideration for entering into the lease, the lessee has agreed to pay the Company a royalty

from the lessee’s revenue attributed to oil and gas produced, saved, and sold attributable to the net mineral interest.

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 operator elected to extend

the oil and gas lease easement for three additional years through July 2023.

This was done to provide additional time in order to complete

well construction and commence oil and gas production.

During 2021, the operator completed a first set of eight (8) wells which commenced

oil and gas production by August 2021.

During 2022, the operator completed a second set of eight (8) wells which commenced oil and gas

production by August 2022.

All sixteen (16) wells remain in production and monthly royalty payments will be ongoing in perpetuity as long

as oil and/or gas are produced from the pooled unit containing these sixteen (16) wells.

During the three months ended June 30, 2024 and

2023, we recognized aggregate revenue of $39,781 and $102,789, respectively, and for the six months ended June 30, 2024 and 2023, we recognized

aggregate revenue of $94,054 and $268,764, respectively, under these oil and gas lease arrangements.

Oil and gas royalties declined in

the current quarter due to a maintenance shutdown of a wellpad, which contains a set of eight (8) wells from which the Company derives

Sunday Mine Complex Project Update

Western continues to ramp up operations to achieve

its annualized production target of 1 million pounds of uranium and 6 million pounds of vanadium.

Following the expansion of infrastructure

deeper into the West Sunday Mine, the mining teams commenced driving a drift which is approximately 2,700 feet in distance to the Leonard

& Clark deposit.

To date, a total of 454 feet has been developed, including 362 feet of ramp footage.

A jumbo drill was deployed to

increase progress.

The drilling teams continue to define additional

mining areas utilizing underground horizontal drilling.

Between January 25th and March 31st, the team drilled a total of 8,170 linear

During the second quarter, the underground horizontal drilling program achieved 12,339 additional linear feet of drilling followed

by probing of the holes and data collection.

At the beginning of 2024, Western expanded the

Sunday Mine Complex mining operations by deploying two alternating mining crews and two alternating drilling teams who operated seven

In early January, a schedule of alternating weeks with seven workdays per week was implemented for the mining and drilling

teams at the Sunday Mine Complex.

By early July, mining operations transitioned back to a four workdays per week schedule to enhance coordination

and efficiency for the next phase of the work program.

The mining team encountered a previously

unknown uranium mineral deposit while drifting to the Leonard & Clark deposit.

Consequently, the Company has paused the drifting project

and the mining team and the drilling team switched the locations from which they were working.

station was relocated to this newly discovered uranium deposit in order to facilitate an assessment of its size.

As this is a previously

unexplored area, this discovery was not unexpected as our expectation is that we will encounter additional significant mineral deposits.

The San Rafael Uranium Project, located in Emery

County, Utah, is being developed as the Company's second production facility.

Western submitted a Notice of Intent to the

Bureau of Land Management (“BLM”) for which the BLM has given its approval for this mineral and groundwater exploration

Following this approval, the Company submitted an exploration permit application to Utah’s Division of Oil, Gas & Mining.

We anticipate receiving this last approval needed to commence the project within approximately 30 days.

Following the completion of repairs

to access roads, the phase 1 drilling program is set to begin in 2024.

Initially, groundwater monitoring wells will be installed at five

drilling locations, reaching depths of approximately 1,000 feet.

During the borehole completion process, mineralization will also be assessed

and confirmed against historical drill data.

This project will provide the baseline data needed for permitting application submission.

Joint Venture with Rimrock Exploration and

Development Inc.

Western has entered into a joint venture with

Rimrock Exploration and Development Inc.

(“Rimrock”), a private company which owns two fully permitted, developed, and past

producing uranium mines in Colorado.

Western will fund mining operations and initially Rimrock will be the operator.

Upon the payment

of the initial contribution, each party will own a 50% interest in the assets of the joint venture.

During the six months ended June 30,

2024, approximately $178,549 in funding was provided to the JV, and this amount has been fully expensed to mining expenditures.

Initial Contribution to fund the mining operations is likely to be satisfied during the third quarter of 2024.

Thereafter, each party

will own a 50% interest in the assets of the JV.

These mines access shallow uranium deposits where mined material is available at depths

of 60 and 120 feet.

The joint venture will sell the mined material to Western under terms to be determined.

The mines do not have a technical

report but are anticipated to provide marginal production to supplement Western’s Sunday Mine Complex production.

The next step

in advancing the project is for the Rimrock team to drill in front of their mining stations to establish more mineralized material and

determine future mining areas based upon the trend of the mineral deposit.

Topaz Mine Permitting Status

In November 2020 and December 2020, a coalition

of environmental groups (the “Plaintiffs”) filed a complaint against the Mined Land Reclamation Board (“MLRB”)

seeking partial appeals of prior MLRB decisions, requesting the termination of the Topaz Mine permit.

The Company joined with the MLRB

in defense of those decisions.

On May 5, 2021, the Plaintiffs in the Topaz Appeal filed an opening brief with the Denver District Court

seeking to overturn the July 22, 2020 and October 21, 2020 MLRB permit hearing decisions on the Topaz Mine permit.

The MLRB and the Company

sought a settlement with the Plaintiffs.

A settlement was not reached, and the MLRB and the Company submitted answer briefs on August

The Plaintiffs 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 the MLRB for further proceedings consistent with its order.

on March 20, 2023, the MLRB issued a board order for the Company to commence final reclamation, which upon completion will terminate mining

operations at the Topaz Mine.

Reclamation commenced immediately at the Topaz Mine and is to be completed within five years by March 2028.

The Company has been working toward the

completion of an updated Topaz Mine Plan of Operations since 2020.

This is a separate federal requirement of the Bureau of Land

Management (“BLM”) for the conduct of mining activities on the federal land at the Topaz Mine and is a prerequisite to

re-permit the Topaz Mine with Colorado’s DRMS.

An Environmental Assessment (“EA”) was prepared by an outside

consultant to the BLM and submitted on June 24, 2024 for BLM’s internal review.

On August 2, 2024, the BLM issued a letter

advising that the Plan of Operations Environmental Assessment had been cancelled.

A new federal law called the Fiscal Responsibility

Act of 2023 was enacted that creates a one year time limit for BLM reviews.

Under the transitional rules, the Topaz project was not

eligible for an extension.

However, the project can be resubmitted and be picked-up where it was left off.

The re-scoping process

will need to be repeated to start the one year time clock.

At this time the Company has the ability to modify the Plan of Operations

or proceed with the version previously submitted.

Given this optionality, the Company is making a determination as to the best way

to move forward.

Uranium/Vanadium Buying Program

Energy Fuels has announced that it expects to

offer an ore buying program and that it plans to be able to schedule a milling run to begin in late 2024 or early 2025 at the White Mesa

Mill, the only operational conventional uranium/vanadium mill in the United States.

Western and Energy Fuels have had initial discussions

regarding the delivery of mined material from the Sunday Mine Complex.

If a mutually beneficial arrangement can be established, Western

could pivot its current mining operations to begin deliveries of uranium/vanadium mined material in as little as 30 days at annualized

quantities up to 250,000 pounds of uranium and 1,000,000 pounds of vanadium.

The Company is currently awaiting a Letter of Intent from

Energy Fuels to understand the terms of this ore buying program.

Utah Mineral Processing Plant

In January 2023, the Company issued news releases

announcing that it has begun site and facility design and permitting on a property acquired in Green River, Emery County, Utah to build

a state-of-the-art minerals processing plant (the “Maverick Minerals Processing Plant”).

This facility will be designed to

recover uranium, vanadium and cobalt both from conventional materials mined from Company mines and materials produced by other mining

Selecting and acquiring the processing site has taken over one year to find a location with the road, power and water infrastructure

The processing plant will utilize the latest processing technology, including Western’s patented Kinetic Separation process.

These technology advancements will result in lower overall capital and processing costs.

This processing plant is expected to have a cost

of approximately $75 million.

After permitting and construction, the processing of uranium and vanadium materials is expected to commence

in late 2027.

The facility will be designed to recover cobalt, a metal essential in battery technology and electric vehicles.

state of Utah, there are numerous occurrences of cobalt which may be economical to mine, if a processing facility were available.

The development of the Maverick Minerals Processing

Plant in Green River, Utah, has advanced considerably.

In the second quarter 2023, the land acquisition was completed and in the third

quarter 2023 the project design and permitting activities commenced with the engagement of a full team of consulting firms, chosen for

their expertise in engineering / mill design, permit preparation, environmental, hydrology, and air quality.

Site evaluation work was

undertaken and a preliminary plant and property site plan was compiled for the location of monitor wells, meteorological towers, buildings,

processing circuits, tailings and evaporation ponds, roads/infrastructure and ore storage facilities.

At a pre-application permitting

meeting in November 2023, the Company and its consultants met onsite with local officials.

During the first six months of 2024, additional

progress has been made.

The baseline data required for submission of the permitting application continues to be collected from the onsite

meteorological towers.

A final plant and animal study was completed.

This study confirmed the site is clear of endangered plant life that

is only observable during the Spring growing season.

Additional consulting commitments were made to advance the licensing and development

with Precision Systems Engineering (PSE), a leading engineering, and design consulting firm headquartered in Sandy, Utah.

Initially, PSE’s target was to release the preliminary engineering

design and cost estimate in June 2024 for a 500 ton per day mill;

this has been deferred until September 2024.

Notably, several opportunities

have recently become available to optimize the mill project for which additional time is needed.

At this stage of development, we are

continuing to analyze a range of scenarios to determine the most advantageous approach.

Notably, we are exploring downsizing the mill

size by modifying the application of Kinetic Separation.

In addition to variable sizing and the application of Kinetic Separation, we

intend to retain the modular build approach, and the potential to utilize multiple facility locations.

The revised design parameters for

the Maverick Minerals Processing Plant will continue to target annualized uranium production of 1 million pounds of yellowcake.

Nuclear Fuel and Uranium Effect from the

Russian Invasion of Ukraine

The start of the Russia/Ukraine war created extraordinary

volatility in uranium markets during the first half of 2022.

At the peak, the spot price was at an 11 year high.

Prior to the invasion

on February 24, 2022, uranium spot prices were in the $43 per pound range and rose to slightly over $63 per pound by April 2022;

of approximately $20 per pound.

Later in May 2022 and June 2022, the spot price receded to $45 levels, before recovering to the $50 +/-

per pound price level.

This price level was maintained for an extended period as the immediate ban/sanctions anticipated by investors

of nuclear fuel and services from Russia couldn’t be implemented.

Equity markets followed the price action of physical

uranium prices in speculation that governments worldwide would sanction and ban nuclear fuel from Russia.

This was in recognition of Russia’s

dominant position in nuclear fuel services including 38% of world conversion capacity and 46% of world enrichment capacity.

position of Rosatom, Russia’s national nuclear company, was developed through decades of government subsidies.

However, because

of the lack of replacement capacity in the global nuclear fuel cycle, Rosatom has avoided sanctions.

Because of the Ukraine invasion, new contracts

are largely not being signed with Rosatom, but deliveries under existing contracts continue to be made.

Customer dependencies upon the

Russian supply of uranium, conversion and enrichment are being addressed slowly by governments as alternative suppliers are not currently

However, a desire to stay away from bad actors and the threat of Russia weaponizing energy exports or a Russian embargo has

elicited responses.

Worldwide, utilities have accelerated their contracting of non-Russian conversion and enrichment services.

supply agreements are being signed with western producers.

In the United States, multiple new nuclear funding programs have already been

put in place and the language from the Department of Energy has only gotten stronger.

The Secretary of Energy recently declared:

United States wants to be able to source its own fuel from ourselves and that’s why we are developing a uranium strategy.”

In January 2023, ban and sanction discussions

intensified as Rosatom was shown to have become an active participant in the Ukraine war.

An article entitled “Russia’s nuclear

entity aids war effort, leading to calls for sanctions” was published by the Washington Post.

Obtained documents show that the Rosatom

state nuclear power conglomerate was supplying the Russian military with “components, technology, and raw materials for missile

fuel” to be used in the Ukraine war.

There has been significant legislative progress

favorable to increasing domestic uranium and nuclear fuel production in the United States.

Before the U.S.

Senate went on summer recess,

an amendment to establish a Nuclear Fuel Security Program was added to the National Defense Authorization Act (NDAA) on a 96-3 vote.

This amendment requires the Secretary of Energy to establish a Nuclear Fuel Security Program, expand the American Assured Fuel Supply

Program, establish a High-Assay Low-Enriched Uranium (HALEU) for Advanced Nuclear Reactor Demonstration Projects Program, submit a report

on a civil nuclear credit program, and to enhance programs to build workforce capacity to meet mission critical needs of the Department

of Energy (DOE).

In advance of the United States putting in place a ban or sanctions on Russian uranium, the DOE continues to make preparations

for a Russian counter-sanction terminating the flow of nuclear fuel and services from Russia.

Senate established a Nuclear Fuel

Security Program in the National Defense Authorization Act (NDAA).

This amendment requires the Secretary of Energy to establish a Nuclear

Fuel Security Program, expand the American Assured Fuel Supply Program, establish a High-Assay Low-Enriched Uranium (HALEU) for Advanced

Nuclear Reactor Demonstration Projects Program, submit a report on a civil nuclear credit program, and to enhance programs to build workforce

capacity to meet mission critical needs of the Department of Energy (DOE).

In advance of the United States putting in place a ban or sanctions

on Russian uranium, the DOE continues to make preparations for a Russian counter-sanction terminating the flow of nuclear fuel and services

UNITED STATES BAN OF RUSSIAN URANIUM:

3 unchanged sentences

1042) in April

2024 by the U.S.

Senate followed the U.S.

House of Representatives' passage of the bill in December 2023.

Subsequently, on May 13, 2024, President

Biden signed this legislation into law.

The ban will now go into effect 90 days after its enactment and will be phased in under Department

of Energy conditional waivers before becoming a complete ban on January 1, 2028.

Importantly, the enactment of a Russian ban releases

funding to support the American nuclear supply chain.

Through nuclear energy diplomacy, Russia’s control of the global nuclear fuel

supply chain extends to many countries.

However, as the United States has the world’s largest civilian nuclear reactor fleet, it

has now taken steps to reduce its reliance on state-sponsored Russian nuclear fuel.

Subsequently, on May 13, 2024,

President Biden signed this legislation into law.

The ban will now go into effect 90 days after its enactment and

will be phased in under Department of Energy conditional waivers before becoming a complete ban on January 1, 2028.

Importantly, the

enactment of a Russian ban releases funding to support the American nuclear supply chain.

This funding will be deployed by the DOE under

a new program called the Low-Enriched Uranium (LEU) – Enrichment Acquisition.

A Request for Proposal was disseminated in June,

an Industry day was organized in July, and bids will be due in August.

Through nuclear energy diplomacy, Russia’s control of the

global nuclear fuel supply chain extends to many countries.

However, as the United States has the world’s largest civilian nuclear

reactor fleet, it has now taken steps to reduce its reliance on state-sponsored Russian nuclear fuel.

As of August 11, 2024, the Russian

uranium ban has become effective and a waiver is required for U.S.

parties to receive Russian uranium until January 1, 2028 when Russian

material is fully banned.

This is a very new development and will likely have some implications becoming public in

the near-term.

RUSSIAN RESPONSE TO URANIUM BAN:

4 unchanged sentences

The TENEX force majeure notices require U.S.

to secure waivers within 60 days that exempt them from the new U.S.

Russian uranium ban or risk being moved to the back of the line for

uranium deliveries if they are granted a waiver later.

TENEX’s notice is based on their intention to honor their contracts, but

they acknowledge this could be overridden by the Kremlin.

This Russian uranium ban is scheduled to go into

effect in 90 days.

It allows for the granting of conditional waivers through 2027.

The TENEX notice sets a 60 day deadline for U.S.

to secure a waiver exemption.

The DOE has targeted a 30 day period to establish the conditions and process through which waivers could

legislative intentions were to deprive Russia of the revenue associated with U.S.

purchases of Russian nuclear fuel

and counter Russia’s control of the global nuclear fuel cycle by flooding U.S.

and international markets with state-supported Russian

uranium and services.

We continue to believe the shift away from Russia/Rosatom will be a

major catalyst in the realignment of nuclear fuel markets which will benefit western producers.

We anticipate this process will culminate

in tremendous support for the U.S.

customers to secure waivers

within 60 days that exempt them from the new U.S.

Russian uranium ban or risk being moved to the back of the line for uranium deliveries

if they are granted a waiver later.

TENEX’s notice is based on their intention to honor their contracts, but they acknowledge this

could be overridden by the Kremlin.

This deadline has now passed and the Company is only aware of one partial waiver having been issued

by the DOE, and believes that there are four or five waiver requests pending.

Western is unaware of TENEX taking any further actions

subsequent to its force majeure notices.

On May 21, 2024, the DOE published their process and instructions for

requesting a waiver.

The waiver process does not appear restrictive and will likely allow most of the previously contracted Russian material

into the United States prior to January 1, 2028.

legislative intentions were to deprive Russia of the revenue associated with

purchases of Russian nuclear fuel and counter Russia’s control of the global nuclear fuel cycle by flooding U.S.

and international

markets with state-supported Russian uranium and services.

We continue to believe the shift away from Russia/Rosatom

will be a major catalyst in the realignment of nuclear fuel markets which will benefit western producers.

We anticipate this process will

culminate in tremendous support for the U.S.

nuclear fuel industry.

As a result, we have been and will continue to accelerate the advancement of

our operational strategy in anticipation of increasing uranium price levels that will reward near-term scaled-up production.

Fuel and Uranium Market Conditions

During the three months ended March 31, 2024,

the spot uranium price decreased - $3.25 from $91.00 to $87.75.

However this follows an extremely strong period in the market where spot

uranium prices have reacted to supply/demand constraints and geopolitical risks.

Since July 2023, spot uranium increased from the approximately

$50/lbs level to over $100/lbs in January 2024, before settling back into approximately the $90 level.

The events of 2022 have set in

motion uranium market and nuclear fuel opportunities for the next decade and beyond.

There are positive catalysts across multiple levels

of the nuclear fuel and uranium markets.

As a result, we have been and will continue to accelerate the advancement

of our operational strategy in anticipation of increasing uranium price levels that will reward near-term scaled-up production.

Nuclear Fuel and Uranium Market Conditions

During the first half of 2024, the spot uranium

price decreased $6.75 from $91.00 to $84.25.

However this follows an extremely strong period in the market where spot uranium prices have

reacted to supply/demand constraints and geopolitical risks.

Since July 2023, spot uranium increased from the approximately $50/lbs level

to over $100/lbs in January 2024, before settling back into its current levels.

The events of 2022 have set in motion uranium market and

nuclear fuel opportunities for the next decade and beyond.

There are positive catalysts across multiple levels of the nuclear fuel and

uranium markets.

Underlying fundamentals are the strongest in decades.

This is attributable to multiple factors,

including climate change, energy security, supply chain and energy scarcity initiatives.

The supply/demand imbalance has flipped from

a market with excess supply into a market with excess future demand.

With the reduced availability of secondary supplies, utilities have

begun adding multi-year contracts with mining companies for primary supply.

The drivers expanding the demand for nuclear fuel include

non-nuclear nations adding nuclear power generation, nuclear nations expanding fleets and/or extending lives of existing reactors, idled

nuclear reactors being redeployed, the reversal of phase-outs and shutdowns, and the deployment of advanced reactors / SMRs.

the challenge is in meeting increasing demand simultaneously with supply constraints from the world’s largest suppliers.

uranium equity prices will continue to strengthen and reflect the underlying positive fundamentals in the nuclear/uranium sector.

notably during the quarter, multiple market analysts have flagged low availability of mobile secondary inventories.

We believe the continued

draw down of inventories to be a market catalyst of the recent uptick in uranium prices.

nuclear energy news has continued to highlight the global growth of future nuclear electricity generation which will drive increased

nuclear fuel demand.

In terms of future supply, utility contracting has continued into 2023, and some uranium mining companies are moving

toward restarting production.

However, due to the lead time needed for future uranium production, we are entering a phase where the supply-demand

fundamentals are in a deep multi-year structural supply deficit.

The future is not clear as we believe that most miners are waiting for

higher price levels before making start-up commitments and utilities are waiting to understand how regulations and geopolitics will modify

their future access to Russian uranium and conversion and enrichment services.

Fuel Supply Chain Concentration Risks

invasion of Ukraine and the ensuing global energy crisis has focused attention on security of supply and supply chain risks.

caused most of the world to re-evaluate their dependence upon nuclear fuel exported by Russia.

In spite of the dominant market position

of Rosatom, future deliveries potentially could be at risk due to sanctions, legislation, or a Russian embargo.

Customer dependence upon

the Russian supply of uranium, conversion and enrichment are being addressed slowly by governments as alternative suppliers are not currently

Since last quarter both Urenco and Orano have announced that they will invest to expand their uranium enrichment capacity

respectively in the United States and France, which represents a shift away from Russia.

Utilities are demonstrating their desire for

increased security of their nuclear fuel supply chains.

Kazakhstan is also a concern because the world’s largest uranium producing

country has an unguarded and the second longest continuous land border in the world shared with Russia.

The potential exists for Russia

to exert influence over Kazakhstan.

Additionally, Kazatomprom is currently working toward putting large long-term contracts in place

This supply is needed for China to fulfill its 15 year plan to deploy 150 new nuclear reactors.

This is attributable to multiple factors, including climate change,

energy security, supply chain and energy scarcity initiatives.

The supply/demand imbalance has flipped from a market with excess supply

into a market with excess future demand.

With the reduced availability of secondary supplies, utilities have begun adding multi-year contracts

with mining companies for primary supply.

The drivers expanding the demand for nuclear fuel include non-nuclear nations adding nuclear

power generation, nuclear nations expanding fleets and/or extending lives of existing reactors, idled nuclear reactors being redeployed,

the reversal of phase-outs and shutdowns, and the deployment of advanced reactors / SMRs.

However, the challenge is in meeting increasing

demand simultaneously with supply constraints from the world’s largest suppliers.

We believe uranium equity prices will continue

to strengthen and reflect the underlying positive fundamentals in the nuclear/uranium sector.

Most notably during the quarter, multiple

market analysts have flagged low availability of mobile secondary inventories.

We believe the continued draw down of inventories to be

a market catalyst of the recent uptick in uranium prices.

Positive nuclear energy news has continued to highlight the global

growth of future nuclear electricity generation which will drive increased nuclear fuel demand.

In terms of future supply, utility contracting

has continued into 2024, and some uranium mining companies are moving toward restarting production.

However, due to the lead time needed

for future uranium production, we are entering a phase where the supply-demand fundamentals are in a deep multi-year structural supply

The future is not clear as we believe some miners with available near-term production are waiting for higher price levels and/or

project funding before making full start-up commitments.

Utilities are also deferring contracting to understand how regulations and geopolitics

will modify their future access to Russian uranium, conversion and enrichment services.

Nuclear Fuel Supply Chain Concentration

Russia’s invasion of Ukraine and the ensuing

global energy crisis has focused attention on security of supply and supply chain risks.

This has caused most of the world to re-evaluate

their dependence upon nuclear fuel exported by Russia.

In spite of the dominant market position of Rosatom, future deliveries potentially

could be at risk due to sanctions, legislation, or a Russian embargo.

Customer dependence upon the Russian supply of uranium, conversion

and enrichment are being addressed slowly by governments as alternative suppliers are not currently available.

Both Urenco and Orano have

announced that they will invest to expand their uranium enrichment capacity respectively in the United States and France, which represents

a shift away from Russia.

Utilities are demonstrating their desire for increased security of their nuclear fuel supply chains.

is also a concern because the world’s largest uranium producing country has an unguarded and the second longest continuous land

border in the world shared with Russia.

The potential exists for Russia to exert influence over Kazakhstan.

Additionally, Kazatomprom

has put large long-term contracts in place with China.

This supply is needed for China to fulfill its 15 year plan to deploy 150 new nuclear

China National Nuclear Corp.

(CNNC) has recently opened a uranium trading hub /warehouse facility, on the China / Kazakhstan border, with the capacity to store 60

million pounds of uranium.

It has become evident that the nuclear fuel supply chain has become increasingly concentrated and interconnected

in this very small area of the world.

Expanding Kazakhstan uranium exports to Russia and China significantly reduces future supply for

Western nuclear fuel buyers.

In late July 2023, soldiers of Niger’s

presidential guard deposed from power President Mohamed Bazoum;

(CNNC) has recently opened a uranium trading hub /warehouse facility, on the China / Kazakhstan

border, with the capacity to store 60 million pounds of uranium.

It has become evident that the nuclear fuel supply chain has become increasingly

concentrated and interconnected in this very small area of the world.

Expanding Kazakhstan uranium exports to Russia and China significantly

reduces future supply for Western nuclear fuel buyers.

In late July 2023, soldiers of Niger’s presidential

guard deposed from power President Mohamed Bazoum;

and replaced him with a military junta.

This is significant because the

new government is opposed to Western interests and has escalated anti-French rhetoric, while seeking support from Russia and its Wagner

mercenary group.

Uranium is Niger’s main export and this small West African country holds the 7th largest uranium resource in the

world and was producing about 5% of global production.

Orano, the French state-backed nuclear energy company has significant operations

in the country that were impacted.

The Junta has initiated multiple actions that are counter to French interests.

Most importantly, Niger’s

Junta has threatened the export of uranium to France which has serious implications because France acquires 20% of its natural uranium

Subsequently, French President Macron has visited Kazakhstan and Uzbekistan, both former Soviet Republics, citing the vast

potential for further cooperation in regard to nuclear power.

Under pressure from the government of Niger, a U.S.

delegation is presenting

detailed plans for shuttering two American bases and withdrawing all troops from the country.

This is occurring as the Junta has signed

a new military agreement with Russia, and brought Russian military instructors into the country in April 2024.

During May 2024 in a joint

statement, Niger and the U.S.

This is significant because the new government

is opposed to Western interests and has escalated anti-French rhetoric, while seeking support from Russia and its mercenary group.

is Niger’s main export and this small West African country holds the 7th largest uranium resource in the world and was producing

about 5% of global production.

The Junta has initiated multiple actions that are counter to French interests, which include Orano, the

French state-backed nuclear energy company.

Most importantly, Niger’s Junta has threatened the export of uranium to France which

has serious implications because France acquires 20% of its natural uranium from Niger.

Subsequently, French President Macron has visited

Kazakhstan and Uzbekistan, both former Soviet Republics, citing the vast potential for further cooperation in regard to nuclear power.

Military alliances are changing as the Junta has

signed a new military agreement with Russia, and brought Russian military instructors into the country in April 2024.

In addition to the

French military evacuating/being expelled from Niger, the U.S.

military has agreed to depart the country.

During May 2024 in a joint statement,

Niger and the U.S.

announced that no later than September 2024 all U.S.

military troops will be withdrawn from Niger.

This conflict also has the potential to impact

future global uranium supply.

Multiple uranium mine development projects in the country continue to proceed despite the evacuation of

many foreign nationals and difficulties receiving supplies.

Re-establishing political stability is likely a prerequisite to these companies

receiving the funding packages needed to cover the significant development costs of the respective projects.

Notably the Junta, has provided

notice to a foreign mining company that it must commence mining operations at its Niger uranium project by July 3, 2024 or risk of revocation

of its mining permit.

October 2023, geopolitical instabilities spread further to the Middle East after a Hamas attack on Israel triggered a counterattack by

Israel on Hamas in the Gaza strip.

This additional hot spot further increases volatility in the world and destabilizes the Middle East

region that is highly influential on global energy prices.

Mineral Processing Plant

In January 2023, the Company issued news releases

announcing that it has begun site and facility design and permitting on a property acquired in Green River, Emery County, Utah to build

a state-of-the-art minerals processing plant (the “Maverick Minerals Processing Plant”).

This facility will be designed to

recover uranium, vanadium and cobalt both from conventional materials mined from Company mines and materials produced by other mining

Selecting and acquiring the processing site has taken over one year to find a location with the road, power and water infrastructure

The processing plant will utilize the latest processing technology, including Western’s patented Kinetic Separation process.

These technology advancements will result in lower overall capital and processing costs.

This processing plant is expected to have a cost

of approximately $75 million.

After permitting and construction, the processing of uranium and vanadium materials is expected to commence

in late 2027.

The facility will be designed to recover cobalt, a metal essential in battery technology and electric vehicles.

state of Utah, there are numerous occurrences of cobalt which may be economical to mine, if a processing facility were available.

The development of the Maverick Minerals Processing

Plant in Green River, Utah, has advanced considerably.

In the second quarter, the land acquisition was completed and in the third quarter

the project design and permitting activities commenced with the engagement of a full team of consulting firms, chosen for their expertise

in engineering / mill design, permit preparation, environmental, hydrology, and air quality.

Site evaluation work was undertaken and a

preliminary plant and property site plan was compiled for the location of monitor wells, meteorological towers, buildings, processing

circuits, tailings and evaporation ponds, roads/infrastructure and ore storage facilities.

At a pre-application permitting meeting in

November 2023, the Company and its consultants met onsite with local officials.

During the first five months of 2024, additional progress

has been made.

The baseline data required for submission of the permitting application continues to be collected from the onsite meteorological

A final plant and animal study was completed.

This study confirmed the site is clear of endangered plant life that is only observable

during the Spring growing season.

Additional consulting commitments have been made to advance the licensing and development with Precision

Systems Engineering (PSE), a leading engineering, and design consulting firm headquartered in Sandy, Utah.

PSE is targeting to release

the preliminary engineering design and cost estimate in June 2024 for a 500 ton per day mill.

Venture with Rimrock Exploration and Development Inc.

Western has entered into a joint venture with

Rimrock Exploration and Development Inc.

(“Rimrock”), a private company which owns two fully permitted, developed, and past

producing uranium mines in Colorado.

Western will fund mining operations and initially Rimrock will be the operator.

Upon the payment

of the initial contribution, each party will own a 50% interest in the assets of the joint venture.

Western has already funded more than

half of the initial contribution.

These mines access shallow uranium deposits where mined material is available at depths of 60 and 120

The joint venture will sell the mined material to Western under terms to be determined.

The mines do not have a technical report

but are anticipated to provide marginal production to supplement Western’s Sunday Mine Complex production.

Uranium/Vanadium

Buying Program

Energy Fuels has announced that it expects to

offer an ore buying program and that it plans to be able to schedule a milling run to begin in late 2024 or early 2025 at the White Mesa

Mill, the only operational conventional uranium/vanadium mill in the United States.

Western and Energy Fuels have had initial discussions

regarding the delivery of mined material from the Sunday Mine Complex.

If a mutually beneficial arrangement can be established, Western

could pivot its current mining operations to begin deliveries of uranium/vanadium mined material in as little as 30 days at annualized

quantities up to 250,000 pounds of uranium and 1,000,000 pounds of vanadium.

of Operations

following table presents the Company’s financial results for the three months ended March 31, 2024 and 2023.

Under pressure from

the government of Niger, the U.S.

completed the final withdrawal of all military personnel on August 5, 2024.

The Junta is now utilizing

Russian military support as a replacement.

This conflict is impacting future global uranium

Several uranium mine development projects in the country continue to proceed despite the evacuation of many foreign nationals

and difficulties receiving supplies.

Re-establishing political stability is likely a prerequisite to these companies receiving the funding

packages needed to cover the significant project development costs.

Recently, the government of Niger has revoked operating permits from

foreign uranium companies, including Orano in June 2024 and Goviex in July 2024.

During October 2023, geopolitical instabilities spread further to the

Middle East after a Hamas attack on Israel triggered a counterattack by Israel on the Gaza Strip.

This additional hot spot further increases

volatility in the world and destabilizes the Middle East region that is highly influential on global energy prices.

Results of Operations

The following table presents the Company’s

financial results for the three and six months ended June 30, 2024 and 2023.

For the Three Months Ended

For the Six Months Ended

Mining expenditures

11 unchanged sentences

$ (1,024,783 )

condensed consolidated net loss for the three months ended March 31, 2024 and 2023 was $2,476,888 and $1,103,531, respectively.

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

comprehensive loss for the three months ended March 31, 2024 and 2023 was $2,619,247 and $1,097,217, respectively.

Our revenue for the three months ended March 31,

$ (5,307,289 )

$ (2,122,000 )

Three Months Ended June 30, 2024 as Compared to the Three Months

Ended June 30, 2023

Our condensed consolidated net loss for the three

months ended June 30, 2024 and 2023 was $2,625,522 and $1,076,659, respectively.

The principal components of these year over year changes

are discussed below.

Our comprehensive loss for the three months ended

June 30, 2024 and 2023 was $2,688,042 and $1,024,783, respectively.

Our revenue for the three months ended June 30,

2024 and 2023 was $39,781 and $102,789, respectively.

The decrease in revenues of $111,702, or 67% was primarily related to lower prices

and lower production volumes from the oil and gas wells during the three months ended March 31, 2024 as compared to the three months ended

March 31, 2023.

expenditures for the three months ended March 31, 2024 were $1,308,879 as compared to $605,104 for the three months ended March 31,

The increase in mining expenditures of $703,775, or 116% was principally attributable to scaling up mining activities at the

Company’s Sunday Mine Complex which involved the hiring of additional mining personnel, increased mining services and supplies

costs, and increased maintenance and depreciation costs for mining equipment and vehicles placed into service.

fees for the three months ended March 31, 2024 were $112,690 as compared to $87,096 for the three months ended March 31, 2023.

increase in professional fees of $25,594, or 29% was due to increased accounting and legal costs recognized in the current

and Administrative

and administrative expenses for the three months ended March 31, 2024 were $966,245 as compared to $613,365 for the three months

ended March 31, 2023.

The increase in general and administrative expense of $352,880, or 58% is primarily due to an increase in

non-cash stock-based compensation expense and an increase in payroll expense.

fees for the three months ended March 31, 2024 were $193,426 as compared to $737 for the three months ended March 31, 2023.

increase in consulting fees of $192,689 was principally due to the increased use of consultants for the Maverick Minerals Processing

Plant to prepare the permitting application.

and interest income, net

The decrease in revenues of $63,008, or 61% was primarily related to lower production

volumes from the oil and gas wells due to well maintenance shutdowns during the three months ended June 30, 2024 as compared to the three

months ended June 30, 2023.

Mining Expenditures

Mining expenditures for the three months ended

June 30, 2024 were $1,384,951 as compared to $656,545 for the three months ended June 30, 2023.

The increase in mining expenditures of

$728,406, or 111% was principally attributable to scaling up mining activities at the Company’s Sunday Mine Complex which involved

the hiring of additional mining personnel, increased mining services and supplies costs, and increased maintenance and depreciation costs

for mining equipment and vehicles placed into service.

Professional Fees

Professional fees for the three months ended June

30, 2024 were $245,187 as compared to $171,834 for the three months ended June 30, 2023.

The increase in professional fees of $73,353,

or 43% was due to increased accounting and legal costs in connection with increased business and mining activities.

General and Administrative

General and administrative expenses for the three

months ended June 30, 2024 were $824,868 as compared to $405,754 for the three months ended June 30, 2023.

The increase in general and

administrative expense of $419,114, or 103% is primarily due to an increase in headcount and employee benefits, as well as an increase

in non-cash stock-based compensation expense.

Consulting fees

Consulting fees for the three months ended June

30, 2024 were $296,928 as compared to $0 for the three months ended June 30, 2023.

The increase in consulting fees of $296,928 was due

to consultant costs incurred to prepare the permitting application for the Maverick Minerals Processing Plant

Accretion and interest income, net

Accretion and interest income, net for the three

months ended March 31, 2024 was $50,079 as compared to $35,296 for the three months ended March 31, 2023.

months ended June 30, 2024 was $86,631 as compared to $52,185 for the three months ended June 30, 2023.

The increase in interest income,

net of $34,446, or 66% was principally attributable to higher interest rates earned and larger invested cash balances during the three

months ended March 31, 2024 as compared to the three months ended March 31, 2023.

income, net for the three months ended March 31, 2024 was $0 as compared to $1,500 for the three months ended March 31, 2023.

was principally attributable to a gain on the sale of used vehicles during the three months ended March 31, 2023.

currency translation adjustment

currency translation adjustment for the three months ended March 31, 2024 was a loss of $142,359 as compared to a gain of $6,314 for

the three months ended March 31, 2023.

The change in foreign exchange is primarily due to the strengthening of the USD against the CAD.

and Capital Resources

cash and cash equivalents and restricted cash balance as of March 31, 2024 was $12,277,635.

Our cash position is highly dependent on

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

fulfillment of our public company reporting responsibilities.

Our management believes that in order to finance the development of the

mining properties and Kinetic Separation, to secure regulatory licenses and to construct the Maverick Minerals Processing Plant for the

processing of uranium and vanadium, we will be required to raise additional capital by way of debt and/or equity.

We will also require

additional working capital to continue to scale-up its mining operations at the Sunday Mine Complex.

This outlook is based on our current

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

opportunities.

cash used in operating activities

cash used in operating activities was $1,757,471 for the three months ended March 31, 2024, as compared with $629,914 for the three

months ended March 31, 2023.

The increase of $1,127,557 in cash used in operating activities was principally driven by an increase

in net loss of $1,373,357, which includes a $333,501 increase in non-cash items including depreciation, accretion of reclamation

liability, stock-based compensation and change in marketable securities offset by a decrease of $87,701 in working capital

adjustments, primarily related to changes in prepaid expenses and other current assets, accounts payable and accrued liabilities and

contingent consideration.

cash used in investing activities

cash used in investing activities was $403,369 for the three months ended March 31, 2024, as compared with $623,623 for the three months

ended March 31, 2023.

The decrease in cash used in investing activities of $220,254 was principally due to reduced acquisitions of mining

equipment and vehicles in the current quarter, as compared to greater acquisitions of equipment in the initial scale up of mining capacity

during the three months ended March 31, 2023.

cash provided by financing activities

months ended June 30, 2024 as compared to the three months ended June 30, 2023.

Other income, net

Other income, net for the three months ended June

30, 2024 was $0 as compared to $2,500 for the three months ended June 30, 2023.

The change was principally attributable to a gain on the

sale of used vehicles during the three months ended June 30, 2023.

Foreign currency translation adjustment

Foreign currency translation adjustment for the

three months ended June 30, 2024 was a loss of $62,520 as compared to a gain of $51,876 for the three months ended June 30, 2023.

change in foreign exchange is primarily due to the strengthening of the USD against the CAD.

Six Months Ended June 30, 2024 as Compared to the Six Months

Ended June 30, 2023

Our condensed consolidated net loss for the six

months ended June 30, 2024 and 2023 was $5,102,410 and $2,180,190, respectively.

The principal components of these year over year changes

are discussed below.

Our comprehensive loss for the six months ended

June 30, 2024 and 2023 was $5,307,289 and $2,122,000, respectively.

Our revenue for the six months ended June 30,

2024 and 2023 was $94,054 and $268,764, respectively.

The decrease in revenues of $174,710, or 65% was primarily related to lower production

volumes from the oil and gas wells due to well maintenance shutdowns during the six months ended June 30, 2024 as compared to the three

months ended June 30, 2023.

Mining Expenditures

Mining expenditures for the six months ended June

30, 2024 were $2,693,830 as compared to $1,261,649 for the six months ended June 30, 2023.

The increase in mining expenditures of $1,432,181,

or 114% was principally attributable to scaling up mining activities at the Company’s Sunday Mine Complex which involved the hiring

of additional mining personnel, increased mining services and supplies costs, and increased maintenance and depreciation costs for mining

equipment and vehicles placed into service.

Professional Fees

Professional fees for the six months ended June

30, 2024 were $357,877 as compared to $258,930 for the six months ended June 30, 2023.

The increase in professional fees of $98,947, or

38% was due to increased accounting and legal costs in connection with increased business and mining activities.

General and Administrative

General and administrative expenses for the six

months ended June 30, 2024 were $1,791,113 as compared to $1,019,119 for the six months ended June 30, 2023.

The increase in general and

administrative expense of $771,994, or 76% is primarily due to an increase in headcount and employee benefits, as well as an increase

in non-cash stock-based compensation expense.

Consulting fees

Consulting fees for the six months ended June

30, 2024 were $490,354 as compared to $737 for the six months ended June 30, 2023.

The increase in consulting fees of $489,617 was due

to consultant costs incurred to prepare the permitting application for the Maverick Minerals Processing Plant.

Accretion and interest income, net

Accretion and interest income, net for the six

months ended June 30, 2024 was $136,710 as compared to $87,481 for the six months ended June 30, 2023.

The increase in interest income,

net of $49,229, or 56% was principally attributable to higher interest rates earned and larger invested cash balances during the six months

ended June 30, 2024 as compared to the six months ended June 30, 2023.

Other income, net

Other income, net for the six months ended June

30, 2024 was $0 as compared to $4,000 for the six months ended June 30, 2023.

The change was principally attributable to a gain on the

sale of used vehicles during the three months ended June 30, 2023.

Foreign currency translation adjustment

Foreign currency translation adjustment for the

six months ended June 30, 2024 was a loss of $204,879 as compared to a gain of $58,190 for the six months ended June 30, 2023.

in foreign exchange is primarily due to the strengthening of the USD against the CAD.

Liquidity and Capital Resources

Our cash and cash equivalents and restricted cash

balance as of June 30, 2024 was $9,567,976.

Our cash position is highly dependent on our ability to raise capital through the issuance

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

Our management believes that in order to finance the development of the mining properties and Kinetic Separation, to secure regulatory

licenses and to construct the Maverick Minerals Processing Plant for the processing of uranium and vanadium, we will be required to raise

additional capital by way of debt and/or equity.

We will also require additional working capital to continue to scale-up its mining operations

at the Sunday Mine Complex.

This outlook is based on our 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 $3,786,275

for the six months ended June 30, 2024, as compared with $1,425,369 for the six months ended June 30, 2023.

The increase of $2,360,906

in cash used in operating activities was principally driven by an increase in net loss of $2,922,220, offset by an increase of $393,750

in stock-based compensation.

Net cash used in investing activities

Net cash used in investing activities was $1,030,011

for the six months ended June 30, 2024, as compared with $1,718,751 for the six months ended June 30, 2023.

The decrease in cash used

in investing activities of $688,740 was principally due to reduced purchases of mining equipment and vehicles in the current period, as

compared to a greater level of purchases of equipment for the initial scale up of mining capacity during the six months ended June 30,

Net cash provided by financing activities

Net cash provided by financing activities for

the three months ended March 31, 2024 and 2023 were $4,605,458 and $0, respectively.

the six months ended June 30, 2024 and 2023 were $4,605,458 and $0, respectively.

The increase in cash provided by financing activities

of $4,605,458 was due to proceeds of $4,605,458 from the exercise of warrants during the three months ended March 31, 2024.

mines are subject to certain asset retirement obligations, which we have 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 our best estimate of the

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

We determined the gross reclamation liabilities

of the mineral properties to be $751,517 and $751,444, as of March 31, 2024 and December 31, 2023, respectively.

The portion of the

reclamation liability related to the Van 4 Mine, which is in reclamation as of March 31, 2024, and its related restricted cash are

included in current liabilities and current assets, respectively, at a value of $75,075.

During the three months ended March 31,

2024, the Company’s internal mining operations team has been performing the reclamation work, and the State of Colorado has

not yet reduced the reclamation liability amount.

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, 2024 and December 31, 2023 were $244,557 and $241,562,

of $4,605,458 was due to proceeds of $4,605,458 from the exercise of warrants during the six months ended June 30, 2024.

Reclamation Liability

Our mines are subject to certain asset retirement

obligations, which we have 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 our best estimate of the present value of future reclamation costs in connection with the mineral

We determined the gross reclamation liabilities of the mineral properties to be $751,517 and $751,444, as of June 30, 2024

and December 31, 2023, respectively.

The portion of the reclamation liability related to the Van 4 Mine, which is in reclamation as of

June 30, 2024, and its related restricted cash are included in current liabilities and current assets, respectively, at a value of $75,075.

During the six months ended June 30, 2024, the Company’s internal mining operations team has been performing the reclamation work,

and the State of Colorado has not yet reduced the reclamation liability amount.

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, 2024 and December 31, 2023 were $247,592 and

$241,562, respectively.

The gross reclamation liabilities as of March 31, 2024 and December 31, 2023 are secured by financial warranties in

the amount of $751,517 and $751,444, respectively.

and Gas Lease and Easement

entered into an oil and gas lease that became effective with respect to minerals and mineral rights owned by us of approximately 160

surface acres of our property in Colorado.

As consideration for entering into the lease, the lessee has agreed to pay us a royalty from

the lessee’s revenue attributed to oil and gas produced, saved, and sold attributable to the net mineral interest.

received cash payments from the lessee related to the easement that we are recognizing incrementally over the eight year term of the

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 a first set of eight (8) wells which commenced

oil and gas production by August 2021.

During 2022, the operator completed a second set of eight (8) wells which commenced oil and gas

production by August 2022.

Monthly royalty payments are ongoing on the sixteen (16) wells.

The gross reclamation liabilities as of June 30, 2024 and December 31, 2023 are secured by financial warranties

in the amount of $751,517 and $751,444, respectively.

Oil and Gas Lease and Easement

We entered into an oil and gas lease that became

effective with respect to minerals and mineral rights owned by us of approximately 160 surface acres of our property in Colorado.

As consideration

for entering into the lease, the lessee has agreed to pay us a royalty from the lessee’s revenue attributed to oil and gas produced,

saved, and sold attributable to the net mineral interest.

We have also received cash payments from the lessee related to the easement

that we are recognizing incrementally over the eight year term of the easement.

On June 23, 2020, the same entity as discussed

above elected to extend the oil and gas lease easement for three additional years, commencing on the date the lease would have previously

During 2021, the operator completed a first set of eight (8) wells which commenced oil and gas production by August 2021.

2022, the operator completed a second set of eight (8) wells which commenced oil and gas production by August 2022.

Monthly royalty payments

are ongoing on the sixteen (16) wells.

Under the oil and gas lease and easement arrangements,

during the three months ended March 31, 2024 and 2023, we recognized aggregate revenue of $54,273 and $165,975, respectively.

Party Transactions

have 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 $325,800 as of March 31,

2024) to Seller within 60 days of the first commercial application of the Kinetic Separation technology.

We 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, we recorded

the deferred contingent consideration as an assumed liability in the amount of $325,800 and $340,650 as of March 31, 2024 and December

31, 2023, respectively.

have multiple lease arrangements with Silver Hawk Ltd., an entity which is owned by George Glasier and his wife Kathleen Glasier.

leases, which are all on a month-to-month basis, are for the rental of office, workshop, warehouse and employee housing facilities.

incurred rent expense of $23,525 and $17,925 in connection with these arrangements for the three months ended March 31, 2024 and 2023,

during the three months ended June 30, 2024 and 2023, we recognized aggregate revenue of $39,781 and $102,789, respectively, and for the

six months ended June 30, 2024 and 2023, the Company recognized aggregate revenue of $94,054 and $268,764, respectively, under these oil

and gas lease arrangements

Related Party Transactions

We have transacted with related parties pursuant

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

Prior to the acquisition of Black Range, Mr.

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 $334,650 (AUD $500,000) to Seller within 60 days of the first commercial application

of the Kinetic Separation technology.

We 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, we recorded the deferred contingent consideration as an assumed liability

in the amount of $334,650 and $340,650 as of June 30, 2024 and December 31, 2023, respectively.

We have multiple lease arrangements with Silver

Hawk Ltd., an entity which is owned by George Glasier and his wife Kathleen Glasier.

These leases, which are all on a month-to-month basis,

are for the rental of office, workshop, warehouse and employee housing facilities.

We incurred rent expense of $26,325 and $17,925 in

connection with these arrangements for the three months ended June 30, 2024 and 2023, respectively.

We incurred rent expense of $49,850

and $35,850 in connection with these arrangements for the six months ended June 30, 2024 and 2023, respectively.

We are obligated to pay Mr.

Glasier for reimbursable

expenses in the amount of $19,656 and $50,010, included within accounts payable and accrued liabilities, as of June 30, 2024 and December

31, 2023, respectively.

are obligated to pay Mr.

Glasier for reimbursable expenses in the amount of $15,482 and $84,040, included within accounts payable and

accrued liabilities, as of March 31, 2024 and December 31, 2023, respectively.

the exception of the quarter ended June 30, 2022, we had incurred losses from our operations and as of March 31, 2024, had an accumulated

deficit of $21,294,745 and working capital of $11,177,529.

inception, we have met our liquidity requirements principally through the issuance of notes, the sale of our common shares and from limited

revenue sources.

During the three months ended March 31, 2024, we received $4,605,458 in proceeds from the exercise of its common share

On December 12, 2023, we closed a non-brokered private placement of 5,215,828 units at a price of CAD $1.39 per unit.

The aggregate

gross proceeds raised in the private placement amounted to CAD $7,250,000 (USD $4,836,867 in net proceeds).

During the year ended December

31, 2023, we received $1,004,044 in proceeds from the exercise of its common share warrants.

During the three months ended June 30, 2024, we

purchased approximately $9,000 of mining related equipment from Silver Hawk Ltd.

Going Concern

With the exception of the quarter ended June 30,

2022, we had incurred losses from our operations and as of June 30, 2024, had an accumulated deficit of $23,920,267 and working capital

of $8,262,219.

Since inception, we have met our liquidity requirements

principally through the issuance of notes, the sale of our common shares and from limited revenue sources.

During the six months ended

June 30, 2024, we received $4,605,458 in proceeds from the exercise of our common share warrants.

On December 12, 2023, we closed a non-brokered

private placement of 5,215,828 units at a price of CAD $1.39 per unit.

The aggregate gross proceeds raised in the private placement amounted

to CAD $7,250,000 (USD $4,836,867 in net proceeds).

During the year ended December 31, 2023, we received $1,004,044 in proceeds from the

exercise of our common share warrants.

Our ability to continue our operations and to

16 unchanged sentences

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

Balance Sheet Arrangements

of March 31, 2024, there were no off-balance sheet transactions.

We have not entered into any specialized financial agreements to minimize

our investment risk, currency risk or commodity risk.

Accounting Estimates and Policies

preparation of these condensed interim 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 interim 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 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

Off Balance Sheet Arrangements

As of June 30, 2024, there were no off-balance

sheet transactions.

We have not entered into any specialized financial agreements to minimize our investment risk, currency risk or commodity

Critical Accounting Estimates and Policies

The preparation of these condensed interim 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 interim consolidated financial statements and reported amounts of expenses during the reporting

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

Other areas requiring estimates

include allocations of expenditures, depletion and amortization of mineral rights and properties.

Quantitative and Qualitative Disclosures

About Market Risk

Not applicable.

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