What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-13 · 378 added, 227 removed, 430 unchanged (58% 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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reports on Form 8-K.

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

As of the subsequent measurement date, June 30, 2024, Western reconfirmed its qualification as a foreign private

issuer for periods ended through December 31, 2025.

The Company has registered offices at 5 Church

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Recent Developments

Uranium Markets and Western Strategy

The uranium term price has remained highly stable

since August 2024 when it first reached $80/lb;

it finished July 2025 at $81/lb.

The uranium spot market has experienced more volatility,

peaking at $106/lb in January 2024, and declining into a 2025 trading range of $64/lb to $78/lb.

In 2024, Western responded to favorable

market conditions by aggressively ramping up operations and expanding production capacity primarily at its 100% owned Sunday Mine Complex.

While uranium spot prices weakened late in the year, we had anticipated a recovery in 2025, supported by the U.S.

ban on Russian uranium

(effective 2028) and the Trump administration’s strong backing of nuclear energy and domestic mining.

The Company’s interpretation

of market signals was that uranium markets would stabilize at replacement price levels.

However, given recent turbulence in global commodity

and financial markets, along with geopolitical uncertainties, we have shifted to a more conservative stance, increasingly focusing on

cost control and strategic discipline.

This conservative approach has been adopted to reduce

operational spending in the near-term.

The intent is to focus on the initiatives that bring long-term value to the Company:

the proposed Mustang mill and the development of nearby mines to supply this mill.

Western’s team remains confident that uranium

prices will become reflective of replacement cost levels and strong underlying market fundamentals.

While we are focusing on preparing

more of our mineral properties for active mining operations, we intend to utilize this conservative approach until there is a significant

and sustainable recovery in uranium markets.

Ore Purchase Agreement

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

During April and May of 2025, the Company focused

During April and May 2025, the Company focused

on the operational preparations required to commence ore deliveries.

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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

Additionally, in preparation for transport, significant quantities from the

underground stockpiles have been hauled to the Sunday Mine Complex ore pads.

In mid-June, Western began delivering mined material from

the Sunday Mine Complex to the White Mesa Mill.

During June and July, approximately 792 tons were delivered under the Ore Purchase Agreement.

The first ore lot is expected to close in August, with provisional payment anticipated within 30 days thereafter.

Most of the uranium-bearing

feedstock originated from historically stockpiled material, supplemented by new production from the Sunday Mine Complex.

All deliveries

were completed by redeployed Western employees utilizing the Company’s trucks and equipment.

Mustang Mineral Processing Plant

We are prioritizing the development of the Mustang

Mineral Processing Plant (Mustang) in Colorado due to its close proximity to the SMC and lower hauling costs in comparison to the Maverick

Minerals Processing Plant in Utah.

Western expects to benefit from the prior site owner’s completion of all phases of licensing

and permitting of their Pinon Ridge Mill project.

This mill is expected to have a cost of approximately $75 million.

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

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.

During the fourth quarter

2024, site improvements were made as monitoring equipment and infrastructure were installed and the existing roads were graded.

data collection at Mustang began in January 2025, and the compilation of two quarterly reports have been completed.

The results for both

water and air quality are consistent with prior data collected by the former owners.

Third quarter data collection is underway, and two

additional quarters are planned.

Based on the current schedule, the fourth quarter of data collection will conclude in time to begin preparing

the radioactive materials license application in Q1 2026.

Mustang’s completion is critical for in-house yellowcake production.

Mustang Mineral Mill Site Acquisition

On October 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

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.

The total 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

Sunday Mine Complex Project

In response to elevated uranium prices during

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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 development of the Sunday Mine Complex became a secondary focus during

the second quarter 2025 as the mining team alternated 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 became the main underground project.

During 2025, Western extended work in three areas

of the GMG deposit and advanced the Leonard & Clark decline.

While additional rehabilitation could further expand capacity, current

development supports the potential for full production.

This was a staffing and capital intensive project because the mining team was

working deep underground across four mines.

The Company plans to continue, on a smaller scale, to rehabilitate additional Sunday Mine

Complex areas with defined uranium mineralization.

Sunday Mine Complex Drilling Program

The first phase of the horizontal underground

drilling program has now been successfully completed.

The program employed rigorous quality control, including twinning holes, assaying,

and drilling core samples.

In addition to the 20,366 feet of drilling previously reported, an additional 1,655 feet of core drilling was

Half of these core holes targeted mineralized faces identified during underground development, while the other half confirmed

previously identified ore zones.

Geotechnical and geological logging also mapped major faults and weak ground conditions.

confirmed five mineralized pockets in the GMG drift and outlined the deposit’s overall shape and trend.

The horizontal drilling

program defined mineralized deposits but did not establish deposit thickness.

A second program phase would necessitate surface/vertical

drilling to capture thickness data to update geologic resource estimates.

Having successfully completed the initiatives at the Sunday

Mine Complex, we gradually reduced staffing through attrition, consultant cutbacks, selective layoffs, and redeployment.

These efficiency

measures have been taken to align the workforce with Company capitalization levels.

Additional Projects

Looking forward, Management is considering opportunities

across our property portfolio to increase production capacity that are less capital intensive.

These include re-permitting the Topaz Mine,

rehabilitating the Sage Mine, reassessing the Van 4 Mine for decline/portal access rather than utilizing the previously reclaimed shaft,

and additional development of the Rimrock JV mines.

The project to advance permitting of the San Rafael Project is included in this group,

and discussed in more detail below.

Progress has been made on each of these initiatives.

Opportunities to acquire additional uranium properties

are being considered.

The San Rafael Uranium Project, located in Emery

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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

Infrastructure

Western expanded its fleet of mining equipment

and vehicles in 2023/2024 by purchasing discounted used equipment and reconditioning with an in-house team of mechanics.

This approach

has the advantage of putting equipment into reliable high-volume usage condition at a fraction of the cost, while mitigating supply chain

The Company has also sought cost savings in this area by limiting new purchases in 2025, and opting to rehabilitate the remainder

of the fleet over a longer duration.

Maverick Minerals Processing Plant

The development of the Maverick Minerals Processing

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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.

San Rafael Uranium Project;

however, it is approximately 170 miles from the Sunday Mine Complex.

We are prioritizing development of the

Mustang site, given its close proximity to the Sunday Mine Complex, lower hauling costs, and past licensing advances over the Maverick

Stockpiled Mined Materials Inventory

From December 2021 through March 2022, 3,140 tons

of uranium/vanadium material was mined from the Sunday Mine Complex.

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.

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

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

During the three months ended June 30, 2025 and

2024, we recognized aggregate revenue of $30,509 and $39,781, respectively, and for the six months ended June 30, 2025 and 2024, we recognized

aggregate revenue of $71,730 and $94,054, respectively, under these oil and gas lease arrangements.

For the three and six months ended

June 30, 2025, oil and gas royalties declined due to lower volumes attributable to production decline curves.

Kinetic Separation Licensing

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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

Biden-Harris, Trump 1.0 and Trump 2.0 Administration

During the first Trump Administration, the U.S.

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measures that are very positive for U.S.

domestic energy, mining and Western.

domestic energy and mining and for 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 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”

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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.

benefit from expedited permitting;

the second included two uranium projects.

On May 23, 2025, President Trump signed four Executive Orders

specific to boosting the U.S.

domestic nuclear fuel cycle.

This incited a strong uranium mining stock rally the following day.

office, President Trump has signed no fewer than 10 Executive Orders to boost the energy sector that we believe to be directly or indirectly

beneficial to nuclear and/or uranium mining industries.

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.

tariffs and reciprocal tariffs on the United States’ largest trading partners.

United States Ban of Russian Uranium due

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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.

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

The earlier embrace of Russia negatively impacted the prices of uranium equities and physical uranium commodities during 2025.

Nuclear Fuel and Uranium Market Conditions

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.

The uranium term price has remained highly stable

since August 2024, when it first reached $80/lb.

Since then, it has not closed any month-end below this level, finishing July 2025 at

In contrast, the uranium spot market experienced more volatility.

After peaking at $106/lb in January 2024, spot prices declined

to $84/lb in July 2024 and ended the year at $73/lb.

In 2025, month-end spot prices have ranged from $64/lb to $78/lb, closing July at

In 2023/2024, spot uranium prices reacted to supply/demand constraints and geopolitical risks.

Positive catalysts across multiple

levels of the nuclear fuel and uranium markets have set in motion uranium market and nuclear fuel opportunities for the next decade and

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.

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.

In spite of all these favorable attributes, spot

uranium prices have declined in 2025 versus 2024 levels, as have the equities of junior uranium miners.

We anticipate that both will rebound

to 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.

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

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

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.

The future is not clear as we believe some miners, like ourselves, 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

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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

Many of those 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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China National Nuclear Corp.

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

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

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

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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.

This additional

hot spot further increases volatility in the world and destabilizes the Middle East region that is highly influential on global energy

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

the beginning of 2025, Israel and Hamas agreed to a ceasefire which ended in March 2025;

the hostilities resumed in March and it is not

clear when and if the combatants will be able to negotiate a new ceasefire or an end to military actions.

In August 2025, the Israeli

Prime Minister spoke of Israel’s intention to take control of the entire Gaza Strip and said that he will be seeking backing from

Israeli government ministers.

On June 13, 2025, Israel attacked key nuclear and military facilities in Iran with Iranian military responding

with attacks on Israel soon after.

The conflict escalated quickly, which raised significant concerns for the stability of the region and

oil prices increased sharply in the first days of the war.

On June 22, 2025, the United States military bombed a number of Iranian nuclear

sites in a move to force Iranian authorities to negotiate a nuclear treaty and end the hostilities.

Subsequently, both parties began to

abide by a ceasefire, which appears to be holding.

No further diplomatic negotiations have been announced.

June 2025 Private Placement

On June 13, 2025, the Company closed a private

placement of 5,911,786 units at a price of $0.63 (CAD $0.85) per unit.

The aggregate gross proceeds raised in the private placement amounted

to $3,693,424 (CAD $5,025,018) and proceeds net of issuance costs were $3,331,687 (CAD $4,532,939).

Each unit is comprised of one common

share of Western and one common share purchase warrant.

Each warrant is exercisable into one common share at a price of $0.77 (CAD $1.05)

per share for a period of four years following the closing date of the private placement.

A total of 5,911,786 common shares and warrants

to purchase 5,911,786 common shares were issued to investors and warrants to purchase 206,913 common shares were issued to broker dealers

in connection with the private placement.

Results of Operations

The following table presents the Company’s

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

financial results for the three and six months ended June 30, 2025 and 2024.

For the Three Months Ended

For the Six Months Ended

Mining expenditures

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Operating loss

Accretion and interest income, net

Interest income, net

Other comprehensive (loss) income

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$ (2,688,042 )

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

Ended March 31, 2024

$ (4,638,591 )

$ (5,307,289 )

Three Months Ended June 30, 2025 as Compared to the Three Months

Ended June 30, 2024

Our condensed consolidated net loss for the three

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

months ended June 30, 2025 and 2024 was $1,968,534 and $2,625,522, respectively.

The principal components of these quarter over quarter

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Our comprehensive loss for the three months ended

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 $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.

June 30, 2025 and 2024 was $1,985,641 and $2,688,042, respectively.

Our revenues for the three months ended June 30,

2025 and 2024 were $30,509 and $39,781, respectively.

The decrease in revenues of $9,272, or 23% was primarily related to significantly

lower oil and gas prices during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Mining Expenditures

Mining expenditures for the three months ended

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

of $382,270, or 29% 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 placed into service.

June 30, 2025 were $1,144,866 as compared to $1,384,951 for the three months ended June 30, 2024.

The decrease in mining expenditures

of $240,085, or 17% was principally attributable to a decrease in mining, drilling and explosive supplies, reduced Rimrock joint venture

costs and lower non-cash stock-based compensation expense.

Professional Fees

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 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.

Professional fees for the three months ended June

30, 2025 were $243,297 as compared to $245,187 for the three months ended June 30, 2024.

General and Administrative

General and administrative expenses for the three

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

months ended June 30, 2025 were $545,394 as compared to $824,868 for the three months ended June 30, 2024.

The decrease in general and

administrative expense of $279,474, or 34% is primarily due to a decrease in non-cash stock-based compensation expense and a reduction

in the payroll expenses, which were slightly offset by higher insurance costs.

Consulting Fees

Consulting fees for the three months ended June

30, 2025 were $75,636 as compared to $296,928 for the three months ended June 30, 2024.

The decrease in consulting fees of $221,292, or

75% was due to a spending shift in the mineral processing plant licensing efforts.

The prior period was comprised predominantly of higher

engineering costs and the current period was comprised of lower baseline data collection costs.

Interest Income, Net

Interest income, net for the three months ended

June 30, 2025 was $10,150 as compared to $86,631 for the three months ended June 30, 2024.

The decrease in interest income, net of $76,481,

or 88% was principally attributable to lower cash balances during the three months ended June 30, 2025 as compared to the three months

ended June 30, 2024.

Foreign Currency Translation Adjustment

Foreign currency translation adjustment for the

three months ended June 30, 2025 was a loss of $17,107 as compared to a loss of $62,520 for the three months ended June 30, 2024.

lower foreign currency translation adjustment for the three months ended June 30, 2025 was principally attributable to narrower exchange

rate exposure and changes during the quarter, as compared to the June 30, 2024 quarter.

Six Months Ended June 30, 2025 as Compared to the Six Months

Ended June 30, 2024

Our condensed consolidated net loss for the six

months ended June 30, 2025 and 2024 was $4,606,149 and $5,102,410, respectively.

The principal components of these period over period

changes are discussed below.

Our comprehensive loss for the six months ended

June 30, 2025 and 2024 was $4,638,591 and $5,307,289, respectively.

Our revenues for the six months ended June 30,

2025 and 2024 was $71,730 and $94,054, respectively.

The decrease in revenues of $22,324, or 24% was primarily related to significantly

lower oil prices during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

Mining Expenditures

Mining expenditures for the six months ended June

30, 2025 were $2,836,015 as compared to $2,693,830 for the six months ended June 30, 2024.

The increase in mining expenditures of $142,185,

or 5% was principally attributable to higher payroll costs and higher depreciation costs for mining equipment placed into service, offset

by reduced Rimrock joint venture costs.

Professional Fees

Professional fees for the six months ended June

30, 2025 were $414,917 as compared to $357,877 for the six months ended June 30, 2024.

The increase in professional fees of $57,040, or

16% was due to increased audit and accounting costs in connection with the increase in the scale of our business and mining operations.

General and Administrative

General and administrative expenses for the six

months ended June 30, 2025 were $1,277,472 as compared to $1,791,113 for the six months ended June 30, 2024.

The decrease in general and

administrative expense of $513,641, or 29%, 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 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 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.

Consulting fees for the six months ended June

30, 2025 were $190,784 as compared to $490,354 for the six months ended June 30, 2024.

The decrease in consulting fees of $299,570, or

61%, was due to a spending shift in the mineral processing plant licensing efforts.

The prior period was comprised predominantly of higher

engineering costs and the current period was comprised of lower baseline data collection costs.

Interest Income, Net

Interest income, net for the six months ended

June 30, 2025 was $41,309 as compared to $136,710 for the six months ended June 30, 2024.

The decrease in interest income, net of $95,401

or 70% was principally attributable to lower cash balances during the six months ended June 30, 2025 as compared to the six months ended

June 30, 2024.

Foreign Currency Translation Adjustment

Foreign currency translation adjustment for the

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.

six months ended June 30, 2025 was a loss of $32,442 as compared to a loss of $204,879 for the six months ended June 30, 2024.

foreign currency translation adjustment for the six months ended June 30, 2025 was principally attributable to narrower exchange rate

exposure and changes during the period, as compared to the June 30, 2024 period.

Liquidity and Capital Resources

Our cash and cash equivalents and restricted cash

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

balances as of June 30, 2025 was $5,658,876.

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 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.

of public company reporting responsibilities.

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

our mining resource properties, to deploy Kinetic Separation units 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.

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 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.

six months ended June 30, 2025 and 2024 was $3,564,250 and $3,786,275, respectively.

The decrease of $222,025 in cash used in operating

activities was principally driven by a decreased net loss of $496,261 offset by a decrease of $323,561 in stock-based compensation.

Net Cash Used In Investing Activities

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.

six months ended June 30, 2025 and 2024 was $376,458 and $1,030,011, respectively.

The decrease in cash used in investing activities of

$653,553 was principally due to reduced acquisitions of mining equipment and vehicles in the current period.

We have shifted emphasis

from new acquisitions to refurbishing our previously acquired fleet.

Net Cash Provided By Financing Activities

Net cash provided by financing activities for

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

the six months ended June 30, 2025 and 2024 was $3,331,687 and $4,605,458, respectively.

The cash provided by financing activities of

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

$3,331,687 during the six months ended June 30, 2024 was due in its entirety from private placement proceeds, net.

The cash provided by

financing activities of $4,605,458 during the six months ended June 30, 2024 was due in its entirety from warrant exercise proceeds.

Asset Retirement Obligations

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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.

to be $1,163,157 and $1,163,978, as of June 30, 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

related to the Van 4 Mine, which is in reclamation as of June 30, 2025, and its related restricted cash are included in current liabilities

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

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.

During the six months ended June 30, 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

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.

The net discounted aggregated values as of June 30, 2025 and December 31, 2024 were $419,816 and $410,098, respectively.

gross AROs as of June 30, 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 March 31, 2025 and 2024, we recognized aggregate revenue of $41,221 and $54,273, respectively, under these

oil and gas lease arrangements

during the three months ended June 30, 2024 and 2023, we recognized aggregate revenue of $30,509 and $39,781, respectively, and for the

six months ended June 30, 2025 and 2024, we recognized aggregate revenue of $71,730 and $94,054, respectively, under these oil and gas

lease arrangements

Related Party Transactions

11 unchanged sentences

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

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

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 $23,525 in

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

in the amount of $328,525 and $309,138 as of June 30, 2025 and December 31, 2024, 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.

In connection with these arrangements, we incurred rent expense of $27,271

and $26,325 for the three months ended June 30, 2025 and 2024, respectively, and $53,596 and $49,850 for the six months ended June 30,

2025 and 2024, respectively.

We are obligated to pay Mr.

Glasier for reimbursable

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

expenses in the amount of $24,277 and $83,554, included within accounts payable and accrued liabilities, as of June 30, 2025 and December

31, 2024, respectively.

During the six 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 March 31, 2025, had an accumulated deficit of $31,567,509 and working capital

2022, we had incurred losses from our operations and as of June 30, 2025, had an accumulated deficit of $33,536,043 and working capital

of $4,011,435.

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

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

On June 13, 2025, we closed

a brokered private placement of 5,911,786 units at a price of $0.63 (CAD $0.85) per unit.

The aggregate gross proceeds raised in the private

placement amounted to $3,693,424 (CAD $5,025,018) and proceeds net of issuance costs were $3,331,687 (CAD $4,532,939).

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).

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 shares.

Our ability to continue our operations and to

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Management’s plans include seeking

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

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

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.

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

There are no assurances that we will be able to

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Off Balance Sheet Arrangements

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

As of June 30, 2025, there were no off-balance

sheet transactions.

13 unchanged sentences

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

Quantitative and Qualitative Disclosures

About Market Risk

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