Last updated on April 19, 2014 at 8:43 EDT

Uranium Energy Corp Reports Fiscal 2011 Production Results and Provides Operations Update

October 13, 2011

NYSE Amex Equities Exchange Symbol – UEC

CORPUS CHRISTI, TX, Oct. 13, 2011 /PRNewswire/ – Uranium Energy Corp (NYSE
AMEX: UEC, the “Company”) is pleased to report financial and production
results for the fourth quarter and fiscal year ended July 31, 2011. 
Major fourth quarter highlights include the following:

        --  Production increased and costs remain low: During the fourth
            quarter, only the second full quarter of Palangana Mine
            production, the Company produced 83,000 pounds of U3O8 in
            inventory, including work-in-progress, as compared with 49,000
            pounds in the previous quarter.  Since commencement of
            production in November 2010 through to July 31, 2011, the
            Company has produced a total of 153,000 pounds of U3O8 at a
            cash operating expense of approximately $13 per pound;
        --  The Company signed its first multi-year sales contract;
        --  Both Palangana and Salvo projects received substantial ongoing
            exploration and development;
        --  The Company acquired the historically significant Anderson Mine
            project in Arizona: In May 2011, terms were finalized to merge
            with Concentric Energy Corp. to acquire the Anderson Mine
            uranium project, a 7,581-acre mineral claim block located in
            Yavapai County, Arizona, a former open-pit producer which has
            received 1,400 development drill holes. This transaction
            completed after the close of the fourth quarter;
        --  The Company acquired the Coronel Oviedo Uranium Project in
            Paraguay: This 247,000-acre (100,000-hectare) project area
            holds similar geology, and similar geological potential, as the
            South Texas uranium belt; and
        --  The balance sheet remains strong: As of July 31, 2011, the
            Company remains debt-free with $30.7 million of cash in the
            treasury and 153,000 lbs. of U3O8 in inventory.

Amir Adnani, President and Chief Executive Officer, stated, “During our
fiscal fourth quarter, we continued to make significant progress with
operations, delivering production growth at competitive margins,
validating our regional Texas ‘hub-and-spoke’ strategy. With an eye to
the next up-cycle, we have been acquiring projects with significant
historical work at an attractive discount and with minimal dilution to
the Company. Concurrently, we see a groundswell of positive indicators
emerging for the nuclear industry, and are optimistic about the
prospects for major growth in the industry.”

Palangana Mine – Production Update

Since production began in November 2010 through to the July 31, 2011
fiscal year-end, the Company has produced a total of 153,000 pounds of
U(3)O(8 )in inventory, including work-in-progress, at a cash operating expense of
approximately $13 per pound.  Well-pattern performance continued to
improve with production of 83,000 pounds of U(3)O(8) during the fourth quarter of Fiscal 2011, which represents only the
second full quarter of Palangana Mine production.  The Company is
stockpiling this uranium inventory for future sales in the firming spot
market, and anticipates generating its first uranium sales this
calendar year.

The three-phase startup of Production Area-1 at the Palangana Mine is
continuing with the average depth of the wells at approximately 450
feet.  Production initially commenced at the Phase I wellfield (18
production and 27 injection wells) in November 2010, followed by the
Phase II wellfield (32 production and 22 injection wells) in April
2011, with the final Phase III wellfield (21 production and 18
injection wells) having commenced production in early October.

Subsequent to the July 31, 2011 year-end, field crews are addressing
performance variations in certain wells. As a result, indications for
fiscal first quarter 2012 production range between 60,000 to 70,000
pounds U(3)O(8). A number of injection and production wells in the Phase 1 wellfield,
the smallest of the three fields, which has already produced 27% of the
indicated NI 43-101 resource of approximately 300,000 pounds, are being
recompleted, and new wells are being drilled to determine if plugging
has occurred. Phase II wells are also being evaluated and production is
reduced there at least temporarily. As noted above, the Phase III
wellfield commenced operations in early October.

Palangana – Ongoing Exploration and Development

During the fourth quarter, the Company’s exploration group continued to
direct and investigate resource expansion efforts at Palangana. The
Company’s development team continues to bring Production Area-2 closer
to initial production with production drilling anticipated to start
this calendar year. Production Area-3 is progressing, with the
application for Production Area Authorization anticipated to be
submitted by December 2011.

Goliad Development Update

Subsequent to the close of the fourth quarter, the Texas Commission on
Environmental Quality (TCEQ) has continued to make progress with the
one remaining license needed to initiate construction at the Goliad
project, the Radioactive Materials License (RML), which was received in
draft form on August 29, 2011. The final RML is anticipated this
calendar year. Before the Company initiates in-situ recovery of uranium
at Goliad’s Production Area One, the regional Environmental Protection
Agency must complete its review of and concur with the Aquifer
Exemption which has already been granted to the Company by TCEQ.

Salvo Exploration

Phase II drilling of 47 holes in prospective new zones concluded during
the summer of 2011 to further expand the current Inferred Resource
Estimate of approximately 2.8 million pounds. Metallurgical and other
tests are also being performed to reaffirm ISR amenability at Salvo.
The project area was expanded during the fourth quarter to include
additional prospective zones.

Paraguay Update

The Company has acquired a 247,000-acre uranium property located in the
area of Coronel Oviedo, Paraguay. Share dilution to acquire the project
was well below 1%. The Coronel Oviedo Project is geologically very
similar to the Company’s projects in the South Texas uranium belt and
is anticipated to be ISR-amenable as initially indicated through
pump-test studies. This project is an excellent fit for our technical
team which has a distinctive track record of discovering and advancing
sandstone-hosted uranium deposits. The Company plans to complete a
10,000-meter drill program early in Fiscal 2012.

Financial Review

The following is a financial review of the Company for the three months
and twelve months ended July 31, 2011, and should be read in
conjunction with the consolidated financial statements and management’s
discussion and analysis as contained in the Company’s Form 10-K filing
available at the Company’s website at www.uraniumenergy.com or on EDGAR at www.sec.gov.

Results of Operations

For the three months ended July 31, 2011, the Company recorded a net
loss of $5.6 million or $0.08 per share (2010 Q4: $7.2 million or $0.13
per share).  For Fiscal 2011, the Company recorded a net loss of $27.4
million or $0.40 per share (Fiscal 2010: $14.5 million or $0.25 per
share, which includes a gain on sale of Cibola Resources, LLC of $8.5
million or $0.14 per share).  Expenses for Fiscal 2011 totaled $27.9
million (Fiscal 2010: $22.4 million) and include $11.4 million (Fiscal
2010: $6.4 million) for mineral property expenditures, $8.8 million
(Fiscal 2010: $7.6 million) for general and administrative, $6.3
million (Fiscal 2010: $7.0 million) for stock-based compensation and
$1.1 million (Fiscal 2010: $0.8 million) for depreciation, depletion
and accretion.

The Company has grown substantially, particularly over the last two
years since the acquisition of the South Texas Mining Venture, L.L.P.
in December 2009. This resulted in the acquisition of the Corpus
Christi office and existing infrastructure, and focused the Company
towards the commencement of production at the Palangana Mine in
November 2010, including preparation of the Hobson Processing Facility,
for most of Fiscal 2010 and the first half of Fiscal 2011.  At July 31,
2011, we held uranium concentrates in inventory but did not generate
revenue from sales during Fiscal 2011.

The Company announced its first multi-year uranium sales contract on
June 16, 2011. The sales contract provides for the delivery of 300,000
pounds of U(3)O(8) over a period of three years starting in August 2011, with the price to
be based on published market price indicators at the time of delivery.


Net cash used in operating activities for the fiscal year ended July 31,
2011 was $23.7 million compared to $5.0 million last year.  Net cash
provided from financing activities for the twelve months ended July 31,
2011 was $36.8 million compared to $1.2 million last year.  Net cash
used in investing activities for the twelve months ended July 31, 2011
was $3.5 million compared to net cash provided of $9.2 million last
year. As of July 31, 2011, the Company had cash and cash equivalents of
$30.7 million.

Acquisitions Update

The downturn in the uranium market has provided the Company with an
excellent opportunity to make strategic acquisitions at attractive
discounts to historical valuations. The Company closed two transactions
subsequent to the fourth quarter.

Anderson Project in Arizona

The Company and Concentric Energy Corp. (“Concentric”) announced the
completion of the stock-for-stock merger (the “Merger”) effected under
the laws of Nevada on September 9, 2011. Under the Merger, which was
previously announced on May 6, 2011, UEC has issued 1,253,440 common
shares of the Company to the former Concentric stockholders to acquire
Concentric. The sole purpose of the Merger was to acquire Concentric’s
undivided 100% interest in the Anderson Property, a 7,581-acre mineral
claim block located in Yavapai County, Arizona, with a previous history
of small-scale, open-pit uranium production.

With the acquisition of the Anderson Mine project, UEC is now the
leading uranium player in Arizona, as well as in South Texas. Arizona
is both a business and energy-friendly state. Three of the largest
nuclear power plants in the U.S. are in Arizona, and all three plants
have recently received their 20-year license extensions.

South Texas Uranium Exploration Data

Additionally, the Company completed the acquisition of a South Texas
uranium exploration data package (the “Database”) from Uranium One.
Refer to the Company’s news release dated August 31, 2011 which
provides specific details on the acquired data, as well as the history
of the Database. This strategic database is anticipated to
significantly advance the Company’s ongoing exploration efforts in
South Texas.

Uranium Market Update

During the Company’s fourth quarter ending July 31, 2011, the spot price
of uranium decreased from $55.50/lb. to $51.50/lb. according to the Ux
Consulting Company. Since the earthquake and tsunami in Japan occurred
during March 2011, and as news of reactor damage at the Fukushima
nuclear power plant began emerging, the spot uranium price declined
very rapidly from $68.00/lb. to $50.00/lb. and has since stayed in a
narrow range. The primary sellers appeared to be financial institutions
and traders and the primary buyers were utilities and producers during
this very tumultuous time. Since then, the spot price seems to be
finding strong support in the low $50′s, and the longer term contract
uranium price has declined from $73.00/lb. to $64.00/lb.,
post-Fukushima, according to the Ux Consulting Company.

Looking forward, despite concerns generated by the Japanese
developments, the underlying uranium market fundamentals still point in
favor of insufficient supply relative to current and growing demand on
a longer-term basis. The worldwide nuclear build-out continues and the
number of reactors currently under construction totals 62 in 15
different countries. The largest percentage of nuclear expansion is
planned in China where 27 new-generation reactors are currently under
construction. China, India, Russia and South Korea continue to lead the
global nuclear build-out and these governments have reaffirmed their
commitment to nuclear energy post-Fukushima.

About Uranium Energy Corp

Uranium Energy Corp is a U.S.-based uranium production, development and
exploration company operating North America’s newest emerging uranium
mine. The Company’s fully licensed and permitted Hobson processing
facility is central to all of its projects in South Texas, including
the Palangana in-situ recovery project, which is ramping up initial
production, and the Goliad in-situ recovery project which is in the
final stages of mine permitting for production.  The Company’s
operations are managed by professionals with a recognized profile for
excellence in their industry, a profile based on many decades of
hands-on experience in the key facets of uranium exploration,
development and mining.

Stock Exchange Information:
Frankfurt Stock Exchange Symbol: U6Z
ISN: US916896103

Notice to U.S. Investors

The mineral resources referred to herein have been estimated in
accordance with the definition standards on mineral resources of the
Canadian Institute of Mining, Metallurgy and Petroleum referred to in
NI 43-101 and are not compliant with U.S. Securities and Exchange
Commission (the “SEC”) Industry Guide 7 guidelines. In addition,
measured mineral resources, indicated mineral resources and inferred
mineral resources, while recognized and required by Canadian
regulations, are not defined terms under SEC Industry Guide 7 and are
normally not permitted to be used in reports and registration
statements filed with the SEC. Accordingly, we have not reported them
in the United States. Investors are cautioned not to assume that any
part or all of the mineral resources in these categories will ever be
converted into mineral reserves. These terms have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. In particular, it should be noted that
mineral resources which are not mineral reserves do not have
demonstrated economic viability. It cannot be assumed that all or any
part of measured mineral resources, indicated mineral resources or
inferred mineral resources will ever be upgraded to a higher
category. In accordance with Canadian rules, estimates of inferred
mineral resources cannot form the basis of feasibility or other
economic studies. Investors are cautioned not to assume that any part
of the reported measured mineral resources, indicated mineral resources
or inferred mineral resources referred to in this news release are
economically or legally mineable.

Under NI 43-101 an issuer may disclose an estimate of the quantity and
grade of a historical mineral resource made before the instrument came
into force if the estimate is an estimate of mineral resources prepared
by or on behalf of a person or company other than the issuer and the
disclosure identifies the source and date of the historical estimate,
confirms that the historical estimate is relevant, comments on its 
reliability, and explains any differences between the categories used
in the historical resource and those permitted by NI 43-101. Any such
resources are historical in nature and were compiled before the
implementation of NI 43-101 reporting standards, and the Company may
not have independently verified any such resource so is not treating
them as current resources. Any such historical resources were prepared
to industry standards in place at the time and are considered relevant
today. Any such estimate, although prepared by experienced personnel
and considered relevant should not be relied on.

Safe Harbor Statement

Except for the statements of historical fact contained herein, the
information presented in this news release constitutes “forward-looking
statements” as such term is used in applicable United States and
Canadian laws. These statements relate to analyses and other
information that are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management. Any other
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects” or “does not expect”, “is
expected”, “anticipates” or “does not anticipate”, “plans, “estimates”
or “intends”, or stating that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved) are
not statements of historical fact and should be viewed as
“forward-looking statements”. Such forward looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such risks and other factors include, among others, the actual results
of exploration activities, variations in the underlying assumptions
associated with the estimation or realization of mineral resources, the
availability of capital to fund programs and the resulting dilution
caused by the raising of capital through the sale of shares, accidents,
labor disputes and other risks of the mining industry including,
without limitation, those associated with the environment, delays in
obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title disputes or
claims limitations on insurance coverage. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news release.

Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it
can give no assurance that its expectations will be achieved. 
Forward-looking information is subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those projected. Many of these factors are beyond the Company’s ability
to control or predict. Important factors that may cause actual results
to differ materially and that could impact the Company and the
statements contained in this news release can be found in the Company’s
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims the
protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. The Company
assumes no obligation to update or supplement any forward-looking
statements whether as a result of new information, future events or
otherwise.  This press release shall not constitute an offer to sell or
the solicitation of an offer to buy securities. 

SOURCE Uranium Energy Corp

Source: PR Newswire