UEC

Business Context and Reporting Period

This Form 8-K was filed by Uranium Energy Corp. (UEC) on April 20, 2022. The filing serves as a Regulation FD disclosure regarding a significant expansion of the Company's physical uranium inventory program.

Key Financial Metrics and Inventory Status

• Total Inventory: Expanded to 5 million pounds of U₃O₈ (U.S. warehoused).
• Recent Acquisition: Secured an additional 400,000 pounds of U.S. warehoused uranium.
• Cost Basis: Volume weighted average price of approximately $38 per pound.
• Delivery Schedule: Staged deliveries extending through December 2025.
• Unrealized Gain: Over $125 million based on the TradeTech spot price of $63.25 per pound as of April 19, 2022.
• Historical Context: Inventory grew ten-fold from 500,000 pounds purchased a year prior at a cost basis under $30 per pound.

Material Changes and Strategic Objectives

The primary material change is the ten-fold increase in physical inventory holdings. Management states this program supports three key objectives:

1. Strengthening the balance sheet as uranium prices appreciate.
2. Providing strategic inventory to support future sales and marketing with utilities, complementing U.S. production and accelerating near-term cash flows.
3. Increasing availability of Texas and Wyoming production capacity for U.S. origin uranium opportunities, including potential sales to the U.S. Government for a National Uranium Reserve.

Outlook, Risks, and Management Commentary

CEO Amir Adnani highlighted the strategic timing of purchases near cycle lows amidst a "uranium bull market" characterized by a projected structural supply deficit exceeding 215 million pounds by 2026. The Company anticipates that U.S. uranium may command significant premium pricing due to domestic scarcity and potential bans on Russian uranium imports. The filing does not provide specific revenue, profit, cash flow, or debt figures for the reporting period, as this is a current report focused on a specific event rather than a periodic financial statement.

Investor Verification Checklist

• Verify the $125 million unrealized gain calculation against current spot prices and the specific cost basis of the 5 million pound inventory.
• Confirm the delivery terms and warehousing agreements for the 400,000 pounds added in April 2022.
• Assess the impact of the U.S. Government National Uranium Reserve mandate on potential future sales and pricing premiums.
• Review the Company's liquidity position to ensure it can sustain operations while holding this large physical inventory until delivery dates.