Energy Fuels CEO Stephen Antony Updates Shareholders

- March 30th, 2015

Energy Fuels Inc. (NYSEMKT:UUUU,TSX:EFR) President and CEO Stephen P. Antony provided an update to shareholders, citing the US remains to be in a good position to stay as the largest producer of nuclear power, “Growing geopolitical uncertainty in Eastern Europe and Africa is further highlighting the critical need for stable, reliable uranium sources.” Mr. Antony also said that Energy Fuels eagerly awaits the closing of the Uranerz transaction in 2015.

Energy Fuels Inc. (NYSEMKT:UUUU,TSX:EFR) President and CEO Stephen P. Antony provided an update to shareholders, citing the US remains to be in a good position to stay as the largest producer of nuclear power, “Growing geopolitical uncertainty in Eastern Europe and Africa is further highlighting the critical need for stable, reliable uranium sources.” Mr. Antony also said that Energy Fuels eagerly awaits the closing of the Uranerz transaction in 2015.

As quoted in the press release:

Dear Fellow Shareholder:

I write to you today on behalf of myself and the Board of Directors of Energy Fuels. I first wish to thank you for your continued support of Energy Fuels’ vision of becoming the leading uranium producer in the U.S. Since our inception in 2006, our vision has been to become “America’s Uranium Miner” – to grow into the largest, most reliable, most competitive – and ultimately most profitable – supplier of uranium in the U.S. And, I am excited to say that we are on our way to achieving this vision. In 2014, we successfully executed our business plan, strengthened our balance sheet, increased our gross profitability, and exceeded the annual production and operations guidance from our previous annual financial statements.

Despite general weakness in the energy sector, the recent strength of uranium might be the best kept secret in energy and commodities markets. Indeed, we may be in the early stages of a recovery. Though we continue to manage our business conservatively, we are increasingly optimistic about uranium markets. This belief is demonstrated by our growth through M&A and by maintaining – and increasing – our ability to scale-up production as prices continue to increase.

Energy Fuels began 2015 by announcing we had entered into an agreement to acquire America’s newest uranium producer, Uranerz Energy Corporation (“Uranerz”). We believe this will be yet another transformational acquisition for Energy Fuels, as we continue to emerge as the leading uranium mining company focused on the U.S.

At a time when uncertainty in the energy market remains widespread, it is our belief that rising global demand for emission-free and carbon-free sources of energy – including nuclear energy – will continue to stand-out within the energy sector. This is why the Board and I remain committed to building long-term value in the U.S. uranium space through prudent existing production, maintaining and growing our production scalability, and continuing to consolidate the U.S. uranium space.

Energy Fuels is a major producer of uranium in the U.S. For the past 5 years, our White Mesa Mill has supplied an average of 1 million pounds of uranium to World nuclear markets every year. We are producing from one mine in Arizona, and preparing to resume development at another. Uranerz is currently ramping up uranium production at their Nichols Ranch Processing Facility in Wyoming, and their existing long-term sales contracts should fit well within Energy Fuels’ existing portfolio of contracts. And, I should point out that both Energy Fuels’ and Uranerz’ contracts boast premium-pricing that is significantly above today’s spot price.

We believe having the ability to significantly scale-up production from a growing, diverse mining portfolio in a rising price environment will allow Energy Fuels to more swiftly capitalize on further upside in uranium prices. We anticipate these rising prices will be fueled by a growing imbalance in global uranium supply and demand, highlighted by the 70 reactors under construction around the World, along with the hundreds more planned, proposed, or on order.

The global appeal for nuclear power continues to spread with advances in technological innovation and growing concerns regarding global climate change. Leaders around the World continue to publicly express the need to improve air quality and lower carbon footprints. This bodes well for producing uranium miners like Energy Fuels.

The U.S. is the largest producer of nuclear power on the planet, and should remain so for many years to come. China is the largest consumer of energy on the planet and is pursuing an aggressive nuclear program with 27 reactors under construction and new units being approved. Indeed, China’s nuclear energy program may be much larger than many people think. In addition, the door is open for Japan to finally restart a large portion of their nuclear capacity.

Growing geopolitical uncertainty in Eastern Europe and Africa is further highlighting the critical need for stable, reliable uranium sources. Energy Fuels has the capability to provide this uranium supply, because we operate in the U.S., a geopolitically friendly environment. Indeed, a whole host of factors point to increasing future uranium prices, and we believe Energy Fuels is well-positioned to benefit.

We are enthusiastic about the closing of the Uranerz transaction, and we look forward to sharing updates of our progress in the months ahead. 2015 is already shaping up to be an exciting time in the history of Energy Fuels. We are also committed to remaining a responsible, growth-oriented and entrepreneurial uranium mining company, as we believe this will ultimately create value for our shareholders.

We value your belief in our vision, and thank you for your continued support of Energy Fuels. If you have any questions or concerns, please feel free to contact our offices via phone at (888) 864-2125 or via email at investorinfo@energyfuels.com.

Respectfully,

Stephen P. Antony
President and CEO of Energy Fuels Inc.

Click here to read the Energy Fuels Inc. (NYSEMKT:UUUU,TSX:EFR) press release
Click here to see the Energy Fuels Inc. (NYSEMKT:UUUU,TSX:EFR) profile.

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