What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-05-13 compared with 2024-11-14 · 419 added, 598 removed, 238 unchanged (81% of the section changed)

Management’s Discussion and Analysis

of Financial Condition and Results of Operations

Forward-Looking Statements

Management’s Discussion and

Analysis of Financial Condition and Results of Operations Forward-Looking Statements

The information disclosed in this quarterly report,

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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

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.

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

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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 Sunday mine, the Carnation mine, the St.

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

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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”).

The Company has registered offices at 5 Church

Street, Toronto, Ontario, Canada, M5E 1M2, 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

Ore Purchase Agreement

On April 8, 2025, PRM entered into an Ore Purchase

Agreement (the “Ore Purchase Agreement”) with subsidiaries of Energy Fuels Inc.

(“Purchaser”).

The Ore Purchase

Agreement is for a one year period and provides for the delivery of up to 25,000 short tons of uranium bearing ore to the White Mesa Mill

in Blanding, Utah.

PRM shall make deliveries at its own cost and the purchase price per ton will be based upon the average grade of uranium

within each lot, and other qualifying conditions.

Within 30 days after each lot is closed, the Purchaser shall pay to PRM an 85% provisional

payment calculated based upon the sampled grade and an agreed upon pricing schedule.

Within 30 days after each lot is fed to processing,

the Purchaser shall pay to PRM a final settlement payment calculated based upon the assayed grade and the agreed upon pricing schedule,

net of a royalty, pursuant to a previously existing royalty agreement with the Purchaser.

During April and May of 2025, the Company focused

on the operational preparations required to commence ore deliveries.

During this period, an additional ore pad was constructed, equipment

and vehicles were prepared and new equipment was purchased.

As Western is planning to make deliveries with its own trucks and drivers,

there were logistical, transportation, permitting, regulatory, insurance and driver qualification matters to finalize.

In preparation

for transport, significant quantities from the underground stockpiles have been hauled to the Sunday Mine Complex ore pads.

Mine Complex Project Update

In response to elevated uranium prices during

early 2024, Western spent 2024 ramping 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 to the Leonard & Clark deposit and the drilling teams continued to define additional mining areas utilizing underground horizontal

During the third quarter of 2024, the operations team moved to an area of the Sunday Mine where the last operator ceased production.

Existing underground workings were rehabilitated and utilities were installed in a large stope area close to the former production face.

With the recent decline in uranium prices, there

has been a corresponding reduction in mining operations in 2025.

The development of the Sunday Mine Complex will be the secondary focus

during 2025 as the mining team will be alternating between mine development and hauling / delivery activities related to the Ore Purchase

In the first quarter of 2025, the extension of the GMG deposit secondary escape has been the main underground project.

Mineral Processing Plant

Our current plans call for the permitting and

construction of a mineral processing plant at this newly acquired site in Colorado.

Western expects to benefit from the prior site owner’s

completion of all phases of licensing and permitting of their Pinon Ridge Mill project.

The Company’s plans are to develop its initial

mill at the Colorado location, which is much closer to the Sunday Mine Complex.

This mill is expected to have a cost of approximately

This facility will be designed to recover uranium and vanadium both from conventional materials mined from Company mines

and materials produced by other mining companies.

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.

After permitting

and construction, and subject to available financing, the processing of uranium and vanadium materials is targeted to commence in 2029.

Site improvements were made as monitoring equipment and infrastructure were installed and the existing roads were graded.

Air and water

baseline data was collected for the full first quarter 2025.

Western is working to verify that the original data collected by the prior

owners is consistent with the data collected by Western beginning in the first quarter of 2025.

A minimum of two to three quarters of

data collections will be needed to make that comparison.

Both datasets will be utilized for a projected 2026 licensing application submission.

Mineral Mill Site Acquisition

1, 2024, Western, through its wholly owned subsidiary, Western Utah, executed a binding stock purchase agreement to purchase 100% of the

shares of PRC from a private investor group and thereby acquire Mustang, which is a wholly owned subsidiary of PRC.

Mustang owns an 880-acre

property located in Montrose County, Colorado, where a uranium processing mill was previously licensed but never constructed.

The transaction

was accounted for as a purchase of an asset.

The Company assumed an obligation to an unrelated third party to remit a royalty based on

the volume of minerals processed through any mineral processing plant located on the property.

The acquisition

becomes the second property that Western has acquired, in addition to the Maverick site in Utah.

It also becomes part of Western’s

plans for developing and licensing one or more uranium and vanadium processing facilities to process production from its resource properties

in Colorado and Utah.

George Glasier,

the President, CEO and a director of Western, and his wife Kathleen owned 50% of the shares of PRC and Andrew Wilder, a director of Western,

indirectly owned 3% of the shares of PRC, and so the transaction was considered a related party transaction.

The Company’s Board

of Directors established an independent committee of the Board comprised of directors who were not considered to have an interest in the

transaction, and the independent committee oversaw the negotiation and approved the entering into the agreement on behalf of the Company.

purchase price of PRC was $1.98 million, which consisted of an aggregate of $829,167 in payments to former PRC shareholders for their

equity interests and outstanding loans made to PRC and related accrued interest and a $1,148,125 payment for principal and interest to

a third party in satisfaction of an assumed liability of Mustang.

For the 53% ownership of PRC, $414,584 was paid to George Glasier and

$24,875 was paid to an affiliate of Andrew Wilder.

The San Rafael Uranium Project, located in Emery

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

During the second quarter 2024, Western submitted a Notice

of Intent to the U.S.

Bureau of Land Management (“BLM”) that was approved for a mineral and groundwater exploration project.

During the third quarter of 2024, Utah’s Division of Oil, Gas & Mining gave its approval of the exploration permit application

and the Company posted a $60,300 financial guarantee of reclamation costs with the BLM.

Currently all permits have been received that

are needed for the drilling of monitor wells, and sinking of a mine shaft.

When site work commences, following the completion of repairs

to access roads, the phase 1 drilling program can begin.

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.

is currently on hold as our mining staff is focused on activities related to the Ore Purchase Agreement and mining operations at the Sunday

Mine Complex.

Minerals Processing Plant

The development of the Maverick Minerals Processing

Plant in Green River, Utah, has advanced since the land package acquisition was completed in 2023.

Subsequently, a full team of consulting

firms was chosen and engaged for their expertise in engineering / mill design, permit preparation, environmental, hydrology, and air quality.

The project design and permitting activities include site evaluation work, compilation of a preliminary plant and property site plan,

baseline data collection, plant and animal studies and a cultural survey.

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.

The next steps were for PSE to complete a preliminary engineering design and cost estimate for a 500 ton per day mill

and the installation of monitor wells.

However, additional work has been deferred for Western to reassess its design strategy now that

it has purchased a previously licensed mill site in Colorado (Mustang Mineral Processing Plant formerly the Pinon Ridge Mill).

As processing

facility development efforts have been shifted, some of the Maverick site infrastructure has been relocated to the Mustang site and notably

the preliminary engineering work is also transferable.

The Maverick site is located in close proximity (approximately 4 miles) to the

San Rafael Uranium Project, however, it is approximately 170 miles from the Sunday Mine Complex.

Mined Materials Inventory

December 2021 through March 2022, 3,140 tons of uranium/vanadium material was mined from the Sunday Mine Complex.

contractor calculated uranium grades based upon scintillometer sampling of each 10-ton truckload and vanadium quantities were

derived by applying the 6:1 historical ratio.

The estimated stockpiled inventory is 50,289 pounds of uranium and 301,736 pounds of

The value of this stockpile is not reflected as an asset on the balance sheet as the costs to produce the stockpiled

inventory was expensed in accordance with Regulation SK-1300.

The in-house mining team stockpiled limited quantities of additional

mined material in 2024.

It is Western’s intent to sell a portion of this stockpiled material to Energy Fuels under the Ore

Purchase Agreement.

In the recent past, during mine development activities, we have attempted to drift around mineralization,

leaving the seam faces for quick access during the next period of full production.

Each historical work project has yielded

underground stockpiles as higher grade material was intersected, and this uranium/vanadium inventory is not included in the pounds

of uranium and vanadium quantified above.

Bullen Property (Weld County)

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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.

Company’s mining property in Colorado.

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

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

The Company has also received cash payments from the lessee related to the easement that the Company is recognizing incrementally over

the eight year term of the easement.

On June 23, 2020, the operator elected to extend

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

During the three months ended September 30, 2024

and 2023, we recognized aggregate revenue of $52,981 and $89,144, respectively, and for the nine months ended September 30, 2024 and 2023,

During the three months ended March 31, 2025 and

2024, we recognized aggregate revenue of $41,221 and $54,273, respectively, under these oil and gas lease arrangements.

For the three months

ended September 30, 2024, oil and gas royalties declined due to lower volumes attributable to production decline curves.

months ended September 30, 2024, the decline in oil and gas royalties was principally attributable to short-term well-pad maintenance

shutdowns of eight (8) wells during the second quarter and lower production volumes attributable to production decline curves.

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 573 feet has been developed, including 466 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 13,153 linear

During the second quarter, the underground horizontal drilling program achieved 12,339 additional linear feet, and in the third

quarter an additional 4,983 linear feet were achieved.

Also, during the third quarter, the operations

team moved to an area of the Sunday Mine where the last operator ceased production.

Existing underground workings were rehabilitated and

utilities were installed in a large stope area close to the former production face.

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 days a week.

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

during the summer months.

For the next phase of the work program, the mining team is transitioning back to the seven day work schedule

in November 2024.

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.

The drilling 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.

Significant drilling, probing and data collection was

done in this area, and reporting will be completed under the supervision of Western’s new geologist, to be hired in the fourth quarter

The San Rafael Uranium Project, located in Emery County, Utah, is being

developed as the Company's second production facility.

During the second quarter 2024, Western submitted a Notice of Intent to the U.S.

Bureau of Land Management (“BLM”) that was approved for a mineral and groundwater exploration project.

the third quarter of 2024, Utah’s Division of Oil, Gas & Mining gave its approval of the exploration permit application and

the Company posted a $60,300 Financial Guarantee of reclamation costs with the BLM.

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 three and nine months ended

September 30, 2024, $55,643 and $234,192, respectively, in funding was provided to the JV, and this amount has been fully expensed to

mining expenditures.

The Company completed its earn-in during the third quarter of 2024, through payment of the initial contribution and

now owns 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

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

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 left off.

The re-scoping process will need to be repeated to start the one year time clock.

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.

Energy Fuels Ore Buying Program

Energy Fuels has announced that it expects to commence an ore buying

program from third-party miners in 2024 to increase its uranium production profile at the White Mesa Mill, currently, the only operational

conventional uranium/vanadium mill in the United States.

Western and Energy Fuels have had discussions regarding the delivery of mined

material from the Sunday Mine Complex.

The process can move forward once Energy Fuels makes available a final Ore Purchase Agreement with

the program terms.

If a mutually beneficial arrangement can be established, Western could pivot its current mining operations to begin

deliveries of mined material in as little as 30 days.

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 nine 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 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 timing has been deferred

while Western reassesses its design and strategy now that it has purchased a previously licensed mill site in Colorado (please see Colorado

Mill Site Purchase, below).

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 through the application of Kinetic

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.

Colorado Mill Site Purchase

On October 1, 2024, Western, through its wholly owned subsidiary, Western

Uranium Corporation, executed a binding Stock Purchase Agreement (the “PRC Agreement”) to purchase 100% of the shares of Pinon

Ridge Corporation, a Colorado corporation (“PRC”), from a private investor group and thereby acquire Pinion Ridge Resources

Corporation (“PRRC”), which is a wholly owned subsidiary of PRC.

PRRC owns an approximately 900-acre property located in Montrose

County, Colorado, where a uranium processing mill was previously licensed but never constructed.

While the mill was never constructed,

it was fully licensed and thus provides leverage from past expenditures unique to this specific site supporting the permitting process.

The acquisition becomes the second property package, that Western has acquired in addition to the Maverick Minerals Processing Plant site

in Utah, and is part of Western’s plans for developing and licensing one or more uranium and vanadium processing facilities to process

production from its resource properties in Colorado and Utah.

Pursuant to the PRC Agreement, the former PRC

shareholders were paid $829,167 for their PRC equity and shareholder loan repayments.

As of October 3, 2024, Western has completed all

such payments and the transaction has closed.

After closing, a creditor holding a security interest against PRRC was paid a total of $1,148,125

to pay off an outstanding promissory note.

Western also assumed certain PRC liabilities and obligations in the transaction, including

royalty obligations payable to an unrelated third party based upon the mineral volume processed through any mineral processing plant that

is located on the property.

The transaction will be accounted for as a purchase

George Glasier, the President, CEO and a director

of Western, and his wife Kathleen owned 50% of the shares of PRC, and Andrew Wilder, a director of Western, indirectly owned 3% of the

shares of PRC, and so the transaction was considered a related party transaction.

The Company’s Board of Directors established an

independent committee of the Board comprised of directors who were not considered to have an interest in the transaction, and the independent

committee oversaw the negotiation and approved the entering into the Agreement on behalf of the Company.

Of the total cash paid to the

sellers, approximately $414,000 was paid to George Glasier and approximately $24,000 was paid to an affiliate of Andrew Wilder.

The operations team has moved rapidly to deploy instruments for the

collection of water and air quality data.

This baseline testing is being completed to update existing site data as a critical input for

the permitting and licensing application.

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.

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:

In response to Russia’s war in Ukraine, the United States legislature passed the Prohibiting Russian Uranium Imports Act (H.R.

to ban Russian uranium imports into the U.S.

Unanimous passage of The Prohibiting Russian Uranium Imports Act (H.R.

1042) in April 2024

For the three

months ended March 31, 2025, oil and gas royalties declined due to lower volumes attributable to production decline curves.

Kinetic Separation Licensing

On December 1, 2016 a determination was made by

the CDPHE considering the NRC Advisory Opinion, the Colorado public meeting process, and the CDPHE regulatory and evaluation framework.

This determination stated that the proposed Kinetic Separation operations at the Sunday Mine by Black Range Minerals must be regulated

by the CDPHE through a milling license.

Previously, the Company was unable to deploy Kinetic Separation as it was without a regulatory

framework, but as a result of this determination the Company is now able to deploy Kinetic Separation under a milling license.

milling license that Western is currently seeking will likely incorporate Kinetic Separation via an amendment to the initial license –

as Western’s current plan is to submit a licensing application that is substantially identical to the application that was used

previously for the Pinon Ridge Mill (which did not include the Company’s Kinetic Separation technology).

Biden-Harris, Trump

1.0 and Trump 2.0 Administration Initiatives

During the first Trump Administration, the U.S.

government focused on market distortions caused by foreign state-owned enterprises and the economic and geopolitical influence lost by

allowing Russia and China to take the global lead in nuclear power.

In support of the world’s largest civilian nuclear reactor fleet,

has implemented some of the recommendations of the Nuclear Fuel Working Group which followed the uranium Section 232 investigation.

This led to the implementation of the Uranium Reserve Program and the American Assured Fuel Supply program.

Subsequently, the Russia/Ukraine

war has highlighted the nuclear fuel supply chain risks and the geopolitical risks of dependence on the direct and indirect sourcing of

nuclear fuel from state owned enterprises in Russia and former Soviet Union republics.

Upon taking office, the Biden-Harris Administration

team immediately rejoined the Paris Climate Accord, reversed a number of pro-fossil fuel energy policies, and gave all agencies climate

change initiatives.

The Administration worked to advance a national clean energy standard.

In August 2022, the Inflation Reduction Act

was signed into law authorizing governmental investments of approximately $369 billion in climate and energy, a portion of which would

benefit the U.S.

domestic nuclear industry and battery technologies.

In November 2024, the United States held a highly

contested Presidential election between Republicans (Trump-Vance) and Democrats (Harris-Walz).

The Trump-Vance Republican ticket won,

returning former President Donald Trump to the Presidency.

Republicans also achieved Congressional majorities in both the Senate

and House of Representatives.

Nuclear energy now enjoys bipartisan support.

However, with the change in Presidential Administrations,

the Biden emphasis on climate change and clean energy initiatives was replaced by Trump pro-energy initiatives.

In his first day in office,

President Trump signed Executive Orders declaring a National Energy Emergency and a U.S.

withdrawal from the Paris Climate Agreement for

a second time.

The new administration is seeking a reduction in the federal government’s size and regulatory power;

we believe this

is likely to expedite the permitting and development of energy resource projects.

The Trump Administration has put forth multiple

measures that are very positive for U.S.

domestic energy, mining and Western.

On February 14, 2025, President Trump signed an Executive

Order creating the National Energy Dominance Council.

On March 20, 2025 to boost domestic production of critical minerals and reduce reliance

on foreign imports, President Trump signed an Executive Order titled “Immediate Measures to Increase American Mineral Production.”

On April 9, 2025, President Trump signed an Executive Order entitled “Zero-based Regulatory Budgeting to Unleash American Energy”

to reduce costs on energy production by requiring conditional sunset dates for regulations.

Then on April 15, 2025, an Executive Order

was released entitled “Ensuring National Security and Economic Resilience through Section 232 Actions on Processed Critical Minerals

and Derivative Products”.

The Department of the Interior followed on April 23, 2025, by implementing emergency permitting procedures

to strengthen domestic energy supply.

In April / May 2025, in response to President Trump’s earlier March 20, 2025 Executive Order,

the Federal Permitting Improvement Steering Council announced the first two waves of critical mineral production projects selected to

benefit from expedited permitting, the second included two uranium projects.

The capital markets have yet to reflect the very

positive impact of these pro-energy policies for the uranium mining sector as this has initially been overshadowed by the announcements

tariffs and reciprocal tariffs on the U.S.’s largest trading partners.

United States Ban of Russian Uranium due

to Russian Invasion of Ukraine

In response to Russia’s war in Ukraine,

legislature passed the Prohibiting Russian Uranium Imports Act (H.R.

1042) to ban Russian uranium imports into the United States.

Unanimous passage 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.

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.

RUSSIAN RESPONSE TO URANIUM BAN:

On May 14, 2024, the day following the ban enactment, Bloomberg reported that Russia had responded with TENEX issuing force majeure notices

utility customers.

TENEX is the subsidiary of Rosatom, the state nuclear energy corporation, and the entity through which U.S.

counterparties contract for Russian uranium product imports into the United States.

The TENEX force majeure notices require 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 DOE is currently granting waivers to the ban.

Multiple waivers

have been partially or fully approved, however the details are not in the public domain.

The waiver process does not appear restrictive

and will likely allow the majority of previously contracted Russian material into the United States prior to January 1, 2028.

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 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.

nuclear fuel industry.

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

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

Subsequently, on May 13, 2024, President Biden signed this legislation into law.

The ban became effective 90 days after its enactment

on August 11, 2024 and is being phased in under Department of Energy conditional waivers before becoming a complete ban on January 1,

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

This funding was deployed

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

The United States has the world’s

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

In November 2024, in response to the U.S.

on Russian uranium imports, Russia imposed a counter restriction on the export of enriched uranium to the United States.

This was designed

to create maximum uncertainty through its implementation on a shipment-by-shipment basis.

Also in December 2024, Russia’s national

nuclear company sold a 49% minority stake in a joint venture in a Kazakhstan uranium mine to a Chinese state-owned company.

It was reported

that this was done due to difficulties selling uranium to European or North American buyers due to sanctions recently imposed upon Russia.

The war in Ukraine is ongoing and it is unclear

at this time when and how it will end but the parties have commenced negotiations under the guidance of the Trump Administration.

the early days of the new administration, President Trump appeared to be more open toward Russia’s interests, which caused concern

from traditional European allies.

Recently, the Trump’s Administration position regarding the war in Ukraine has become more balanced.

The earlier embrace of Russia negatively impacted the prices of uranium equities and physical uranium commodities during the first quarter

Nuclear Fuel and Uranium Market Conditions

During the first nine months of 2024, the spot uranium price decreased

$9.00 from $91.00 to $82.00.

Notably, the long-term price increased from $68.00 to $81.50 during a period of rising conversion and enrichment

services prices.

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.

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.

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.

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.

During the three months ended March 31, 2025,

the spot uranium price decreased $9 from $73 to ~$64, and then rebounded to the $70 level by mid-May 2025.

Notably, over this same three

month period, the long-term price was steady at ~$80.

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

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

Since January 2024 and through April 2025, spot uranium had

a slow decline from a high of $100/lb level to the aforementioned levels.

There are positive catalysts across multiple levels of the

nuclear fuel and uranium markets that.

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

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.

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.

Multiple market analysts have flagged low

availability of mobile secondary inventories.

We believe the continued draw down of inventories to be a market catalyst for 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.

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 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.

In the second quarter of 2024, investors began purchasing nuclear and

uranium equities as a means to create long exposure for their positive view on Artificial Intelligence (AI), due to the vast energy requirements

of data centers.

Recent transactions have been announced as tech giants Microsoft, Amazon, and Google have sought deals to source nuclear

power for their data centers from full scale reactors and SMRs.

Microsoft most prominently signed an agreement with Constellation Energy

to restart a Three Mile Island reactor in Pennsylvania and purchase 100% of the power generated for two decades.

Nuclear Fuel Supply Chain Concentration

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 some miners with available near-term production are waiting for higher

price levels and/or project funding before making full start-up commitments.

Utilities have also deferred contracting to understand how

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

In the second quarter of 2024, investors began

purchasing nuclear and uranium equities as a means to create long exposure for their positive view on Artificial Intelligence (AI), due

to the vast energy requirements of data centers.

Recent transactions have been announced as tech giants Microsoft, Amazon, and Google

have sought deals to source nuclear power for their data centers from full scale reactors and SMRs.

Microsoft most prominently signed

an agreement with Constellation Energy to restart a Three Mile Island reactor in Pennsylvania and purchase 100% of the power generated

for two decades.

Many investors reversed their positions and began to sell these nuclear and uranium equities in the fourth quarter of

2024 and in the first quarter of 2025, and the nuclear and uranium equities that initially benefited saw a price reversal.

Nuclear Fuel Supply

Chain Concentration Risks

Russia’s invasion of Ukraine and the ensuing

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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 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 has 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

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

military troops would be withdrawn from Niger.

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 supply.

Several uranium

mine development projects in the country continue to proceed despite the evacuation of many foreign nationals and difficulties receiving

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.

Subsequently in October 2024, Orano suspended production at its last operating mine

This was due to the financial strain from a border closing, which has stranded stockpiled uranium.

Further, the government is

not responding to proposed export alternatives.

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.

The Israel-Hamas hostilities have escalated

over the Summer of 2024 and then spread to other countries in the Middle East.

This additional hot spot further increases volatility in

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

United States Presidential Election

On November 5, 2024, the United States held a highly contested Presidential

election between Republicans (Trump-Vance) and Democrats (Harris-Walz).

The Trump-Vance Republican ticket won, thus returning former-President

Donald Trump to a second Presidential term.

Also, Republicans appear to have assumed control of Congress by achieving majorities in both

the Senate and House of Representatives.

Nuclear energy currently enjoys bipartisan support, but each of these Presidential Administrations

has taken a different approach in their support.

Given the Republican wins in these elections, this is likely to lead to changes in the

approach to various issues that could affect the Company’s business but can’t be predicted with any certainty.

However, based upon available information, we speculate that Biden-Harris’ climate change and clean energy initiatives will be de-emphasized

in favor of Trump administration campaign themes involving energy independence and America first policies.

In July 2023, the government of Niger was overthrown

by its military.

This is significant because the new regime is opposed to Western interests and this landlocked West African country holds

the 7th largest uranium resource in the world and was producing about 5% of global production.

The conflict has an anti-French sentiment,

and 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 from Niger.

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

military also departed the country.

The Junta is utilizing Russian military

support as a replacement.

In addition, the Niger government has revoked operating permits from foreign uranium companies, including Orano

in June 2024 and Goviex in July 2024.

In November 2024, Orano further reported that it had lost operational control, to authorities in

Niger, of another of its uranium mines.

This mine was in production, but had been impacted by export restrictions imposed by the Junta.

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.

The Israel-Hamas

hostilities have escalated over the Summer of 2024 and then spread to other countries in the Middle East.

At the beginning of 2025, Israel

and Hamas agreed to a ceasefire which ended in March 2025;

the hostilities resumed in March and it’s not clear when and if the combatants

will be able to negotiate a new ceasefire or an end to military actions.

This additional hot spot further increases volatility in the

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

Recently, India and Pakistan have exchanged small, but escalating strikes against each other’s interests.

This is a concern as both countries have nuclear weapons capabilities.

Results of Operations

The following table presents the Company’s

financial results for the three and nine months ended September 30, 2024 and 2023.

financial results for the three months ended March 31, 2025 and 2024.

For the Three Months Ended

September 30,

For the Nine Months Ended

September 30,

Mining expenditures

5 unchanged sentences

Accretion and interest income, net

Other income, net

Other comprehensive (loss) income

3 unchanged sentences

$ (2,619,247 )

$ (7,534,441 )

$ (3,225,516 )

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

Months Ended September 30, 2023

Three Months Ended March 31, 2025 as Compared to the Three Months

Ended March 31, 2024

Our condensed consolidated net loss for the three

months ended September 30, 2024 and 2023 was $2,241,170 and $1,060,042, respectively.

The principal components of these year over year

months ended March 31, 2025 and 2024 was $2,637,615 and $2,476,888, respectively.

The principal components of these quarter over quarter

changes are discussed below.

Our comprehensive loss for the three months ended

September 30, 2024 and 2023 was $2,227,152 and $1,103,516, respectively.

Our revenue for the three months ended September

March 31, 2025 and 2024 was $2,652,950 and $2,619,247, respectively.

Our revenue for the three months ended March 31,

2025 and 2024 was $41,221 and $54,273, respectively.

The decrease in revenues of $36,163, or 41% was primarily related to lower oil

and gas well volumes attributable to production decline curves during the three months ended September 30, 2024 as compared to the three

months ended September 30, 2023.

The decrease in revenues of $13,052, or 24% was primarily related to lower oil and

gas well volumes attributable to production decline curves during the three months ended March 31, 2025 as compared to the three months

ended March 31, 2024 and lower oil prices in the most recent quarter.

Mining Expenditures

Mining expenditures for the three months ended

September 30, 2024 were $1,166,343 as compared to $730,854 for the three months ended September 30, 2023.

March 31, 2025 were $1,691,149 as compared to $1,308,879 for the three months ended March 31, 2024.

The increase in mining expenditures

1 unchanged sentence

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.

for mining equipment placed into service.

Professional Fees

Professional fees for the three months ended September

30, 2024 were $127,049 as compared to $44,382 for the three months ended September 30, 2023.

Professional fees for the three months ended March

31, 2025 were $171,620 as compared to $112,690 for the three months ended March 31, 2024.

The increase in professional fees of $58,930,

or 186% was due to increased accounting and legal costs in connection with increased business and mining activities.

or 52% was due to increased accounting and legal costs in connection with growth in our business and mining operations, as well as seasonal

increases in our public company compliance costs.

General and Administrative

General and administrative expenses for the three

months ended September 30, 2024 were $813,403 as compared to $365,197 for the three months ended September 30, 2023.

The increase in general

and administrative expense of $448,206, or 123%, is primarily due to an increase in headcount and employee benefits, non-cash stock-based

compensation expense and insurance costs in connection with increased mining activities.

months ended March 31, 2025 were $732,078 as compared to $966,245 for the three months ended March 31, 2024.

The decrease in general and

administrative expense of $234,167, or 24%, is primarily due to a decrease in non-cash stock-based compensation expense and a reduction

in the administrative payroll expense.

Consulting fees

Consulting fees for the three months ended September

30, 2024 were $247,850 as compared to $48,251 for the three months ended September 30, 2023.

The increase in consulting fees of $199,599

was due to the increased costs incurred for the licensing and permitting of a mineral processing plant.

Consulting fees for the three months ended March

31, 2025 were $115,148 as compared to $193,426 for the three months ended March 31, 2024.

The decrease in consulting fees of $78,278,

or 40%, was due to a spending shift in the mineral processing plant licensing costs from engineering to baseline data collection studies.

Accretion and interest income, net

Accretion and interest income, net for the three

months ended September 30, 2024 was $62,492 as compared to $39,498 for the three months ended September 30, 2023.

The increase in interest

income, net of $22,994 or 58% was principally attributable to higher interest rates earned and larger invested cash balances during the

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

Other income, net

Other income, net for the three months ended September

30, 2024 was $1,998 as compared to $0 for the three months ended September 30, 2023.

The change was attributable to a loss on the sale

of a used vehicle during the three months ended September 30, 2024.

Foreign currency translation adjustment

Foreign currency translation adjustment for the

three months ended September 30, 2024 was a gain of $14,018 as compared to a loss of $43,474 for the three months ended September 30,

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

Nine Months Ended September 30, 2024 as Compared to the Nine

Months Ended September 30, 2023

Our condensed consolidated net loss for the nine

months ended September 30, 2024 and 2023 was $7,343,580 and $3,240,232, respectively.

The principal components of these year over year

changes are discussed below.

Our comprehensive loss for the nine months ended

September 30, 2024 and 2023 was $7,534,441 and $3,225,516, respectively.

Our revenue for the nine months ended September

30, 2024 and 2023 was $147,035 and $357,908, respectively.

The decrease in revenues of $210,873, or 59% was primarily related to lower

production volumes from the oil and gas wells due to short-term well-pad maintenance shutdown in the second quarter and lower well performance

during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

Mining Expenditures

Mining expenditures for the nine months ended September 30, 2024 were

$3,860,173 as compared to $1,992,503 for the nine months ended September 30, 2023.

The increase in mining expenditures of $1,867,670,

or 94% 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 nine months ended September

30, 2024 were $484,926 as compared to $303,312 for the nine months ended September 30, 2023.

The increase in professional fees of $181,614,

or 60% 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 nine

months ended September 30, 2024 were $2,604,516 as compared to $1,384,316 for the nine months ended September 30, 2023.

The increase in

general and administrative expense of $1,220,200, or 88% is primarily due to an increase in headcount and employee benefits, non-cash

stock-based compensation expense and insurance costs in connection with increased mining activities.

Consulting fees

Consulting fees for the nine months ended September

30, 2024 were $738,204 as compared to $48,988 for the nine months ended September 30, 2023.

The increase in consulting fees of $689,216

was due to the increased costs incurred for the licensing and permitting of a mineral processing plant.

Accretion and interest income, net

Accretion and interest income, net for the nine

months ended September 30, 2024 was $199,202 as compared to $126,979 for the nine months ended September 30, 2023.

The increase in interest

income, net of $72,223, or 57% was principally attributable to higher interest rates earned and larger invested cash balances during the

nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

Other income, net

Other income, net for the nine months ended September

30, 2024 was a loss of $1,998 as compared to a gain of $4,000 for the nine months ended September 30, 2023.

The change was principally

attributable to a gain on the sale of a used vehicles during the nine months ended September 30, 2023 compared to a loss on the sale of

a used vehicle during the nine months ended September 30, 2024.

months ended March 31, 2025 was $31,159 as compared to $50,079 for the three months ended March 31, 2024.

The decrease in interest income,

net of $18,920 or 38% was principally attributable to a decrease in interest earned, on account of a lower level of interest yielding

cash balances during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Foreign currency translation adjustment

Foreign currency translation adjustment for the

nine months ended September 30, 2024 was a loss of $190,861 as compared to a gain of $14,716 for the nine months ended September 30, 2023.

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

three months ended March 31, 2025 was a loss of $15,335 as compared to a loss of $142,359 for the three months ended March 31, 2024.

lower foreign currency translation adjustment for the three months ended March 31, 2025 was principally attributable to narrower exchange

rate changes during the quarter, as compared to exchange rate changes during the March 31, 2024 quarter.

Liquidity and Capital Resources

Our cash and cash equivalents and restricted cash

balance as of September 30, 2024 was $7,459,395.

balances as of March 31, 2025 was $3,936,395.

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.

of debt and equity and our management of expenditures for mining and for the development of our mineral processing plant and for the fulfillment

of our public company reporting responsibilities.

Our management believes that in order to finance the development and mining operations

of our mining resource properties, to construct our Kinetic Separation equipment and operations and to secure regulatory licenses for

and to construct our uranium and vanadium mineral processing facilities, 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 our mining operations at the Sunday Mine Complex

and develop secondary production facilities.

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 $5,762,812

for the nine months ended September 30, 2024, as compared with $2,563,287 for the nine months ended September 30, 2023.

The increase of

$3,199,525 in cash used in operating activities was principally driven by an increase in net loss of $4,103,348, offset by an increase

of $542,788 in stock-based compensation and an increase of $269,925 in depreciation.

Net cash used in operating activities for the

three months ended March 31, 2025 and 2024 was $2,186,106 and $1,757,471, respectively.

The increase of $428,635 in cash used in operating

activities was principally driven by an increase in net loss of $160,727 and a decrease of $245,377 in stock-based compensation.

Net cash used in investing activities

Net cash used in investing activities was $1,178,935

for the nine months ended September 30, 2024, as compared with $1,874,183 for the nine months ended September 30, 2023.

The decrease in

cash used in investing activities of $695,248 was principally due to elevated purchases of equipment in the 2023 period in connection

initial mining mobilization related to the Sunday Mine Complex.

Net cash used in investing activities for the

three months ended March 31, 2025 and 2024 was $166,507 and $403,369, respectively.

The decrease in cash used in investing activities

of $236,862 was principally due to reduced acquisitions of mining equipment and vehicles in the current quarter, as compared to the prior

period, during which there was a greater emphasis on acquiring additional equipment and scaling up mining capacity due to elevated uranium

price levels.

Net cash provided by financing activities

Net cash provided by financing activities for

the nine months ended September 30, 2024 and 2023 were $4,605,458 and $551,629, respectively.

The increase in cash provided by financing

activities of $4,053,829 was due to proceeds of $4,605,458 from the exercise of warrants during the nine months ended September 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

In connection with our San Rafael Mine, during the three months ended September 30, 2024, we incurred an additional gross

and discounted reclamation liability of $61,403 and $12,154, respectively.

We determined the gross reclamation liabilities of the mineral

properties to be $812,027 and $751,444, as of September 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 September 30, 2024, and its related restricted cash are included in current liabilities

the three months ended March 31, 2025 and 2024 was $0 and $4,605,458, respectively.

The cash provided by financing activities of $4,605,458

during the three months ended March 31, 2024 was due in its entirety from warrant exercise proceeds.

Asset Retirement Obligations

Our mines are subject to certain AROs, which we

have recorded as liabilities.

The AROs of the United States mines are subject to legal and regulatory requirements and estimates of the

costs of asset retirement obligations are reviewed periodically by the applicable regulatory authorities.

The ARO represents our best

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

We determined the gross ARO of the mineral properties

to be $1,163,157 and $1,163,978, as of March 31, 2025 and December 31, 2024, respectively.

The portion of the asset retirement obligation

related to the Van 4 Mine, which is in reclamation as of March 31, 2025, and its related restricted cash are included in current liabilities

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

During the nine months ended September 30, 2024, our internal mining operations

team has been performing the Van 4 Mine reclamation work, and the State of Colorado has not yet reduced the reclamation liability amount.

We expect to begin incurring the reclamation liability after 2054 for all mines that are not in reclamation and accordingly, have discounted

the gross liabilities over their remaining lives using a discount rate of 5.4%.

The net discounted aggregated values as of September 30,

2024 and December 31, 2023 were $262,880 and $241,562, respectively.

The gross reclamation liabilities as of September 30, 2024 and December

31, 2023 are secured by financial warranties in the amount of $812,027 and $751,444, respectively.

During the three months ended March 31, 2025, our internal mining operations

team has been performing the Van 4 Mine reclamation work, and the State of Colorado has not yet reduced the associated asset retirement

obligation amount.

The asset retirement obligations represent the

Company’s estimate of the present value of future reclamation costs, discounted using a credit adjusted risk-free interest rates

The net discounted aggregated values as of March 31, 2025 and December 31, 2024 were $415,482 and $410,098, respectively.

gross AROs as of March 31, 2025 and December 31, 2024 are secured by financial warranties in the amount of $1,163,157 and $812,993, respectively.

Oil and Gas Lease and Easement

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Under the oil and gas lease and easement arrangements,

during the three months ended September 30, 2024 and 2023, we recognized aggregate revenue of $52,981 and $89,144, respectively, and for

the nine months ended September 30, 2024 and 2023, the Company recognized aggregate revenue of $147,035 and $357,908, respectively, under

these oil and gas lease arrangements

during the three months ended March 31, 2025 and 2024, we recognized aggregate revenue of $41,221 and $54,273, respectively, under these

oil and gas lease arrangements

Related Party Transactions

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consideration obligation is probable and the amount is estimable, we recorded the deferred contingent consideration as an assumed liability

in the amount of $346,820 and $340,650 as of September 30, 2024 and December 31, 2023, respectively.

On October 1, 2024, Western, through its wholly

owned subsidiary, Western Uranium Corporation (“WUC”), executed a binding Stock Purchase Agreement (the “PRC Agreement”)

to purchase 100% of the shares of Pinon Ridge Corporation, a Colorado corporation (“PRC”), from a private investor group and

thereby acquire an approximately 900-acre property located in Montrose County, Colorado, where a uranium processing plant was previously

licensed but never constructed.

George Glasier, the President, CEO and a director of Western, and his wife Kathleen owned 50% of the shares

of PRC, and Andrew Wilder, a director of Western, indirectly owned 3% of the shares of PRC.

Therefore, this transaction constitutes a

related party transaction.

The Company’s Board of Directors established an independent committee of the Board, comprised of directors

who are not considered to have an interest in the transaction.

The independent committee of the Board has overseen the negotiation and

approved the entering into the Agreement on behalf of the Corporation.

Of the total cash paid to the sellers, approximately $414,000 was

paid to George Glasier and approximately $24,000 was paid to an affiliate of Andrew Wilder.

in the amount of $312,343 and $309,138 as of March 31, 2025 and December 31, 2024, respectively.

We have multiple lease arrangements with Silver

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We incurred rent expense of $26,325 and $23,525 in

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

We incurred rent expense of $76,175

and $53,775 in connection with these arrangements for the nine months ended September 30, 2024 and 2023, respectively.

connection with these arrangements for the three months ended March 31, 2025 and 2024, respectively.

We are obligated to pay Mr.

Glasier for reimbursable

expenses in the amount of $23,832 and $50,010, included within accounts payable and accrued liabilities, as of September 30, 2024 and

December 31, 2023, respectively.

During the nine months ended September 30, 2024

and 2023, the Company purchased approximately $9,000 and $25,800 of mining related equipment from Silver Hawk Ltd, respectively.

expenses in the amount of $18,067 and $83,554, included within accounts payable and accrued liabilities, as of March 31, 2025 and December

31, 2024, respectively.

Going Concern

With the exception of the quarter ended June 30,

2022, we had incurred losses from our operations and as of September 30, 2024, had an accumulated deficit of $26,161,437 and working capital

2022, we had incurred losses from our operations and as of March 31, 2025, had an accumulated deficit of $31,567,509 and working capital

of $2,554,752.

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

During the nine months ended

September 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.

During November 2024, we closed

a private placement of 4,142,906 units at a price of $0.94 (CAD $1.32) per unit.

The aggregate gross proceeds raised in the private placement

amounted to $3,897,166 (CAD $5,468,636) and proceeds net of issuance costs were $3,546,870 (CAD $4,975,966).

During year ended December

31, 2024, we received $4,605,458 (CAD $6,238,248) in proceeds from the exercise of common share warrants to purchase 5,198,540 common

Our ability to continue our operations and to

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

to construct Maverick Minerals Processing Plant for the processing of uranium and vanadium and to incorporate Kinetic Separation in the

processing uranium and vanadium bearing materials to generate operating cash flows.

We will need additional capital to continue ongoing

mining operations by our in-house mining team at the Sunday Mine Complex while simultaneously permitting and constructing a processing

and to permit and construct the Mustang Minerals Processing Plant for the processing of uranium and vanadium to generate operating cash

We will also require capital to fund the ongoing in-house mining operations at the Sunday Mine Complex.

There are no assurances that we will be able to

raise capital on terms acceptable to us or at all, or that cash flows generated from its operations will be sufficient to meet our current

raise capital on terms acceptable to us or at all, or that cash flows generated from our operations will be sufficient to meet our current

operating costs and required debt service.

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Off Balance Sheet Arrangements

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

As of March 31, 2025, there were no off-balance

sheet transactions.

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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