Last updated on April 16, 2014 at 13:24 EDT

Uranium Energy Corp Reports Fiscal 2012 Q1 Production Results and Provides Operations Update

December 13, 2011

NYSE Amex Equities Exchange Symbol – UEC

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

        --  The Company completed its first uranium sale: UEC recorded
            revenue of $3.1 million resulting from the sale of 60,000
            pounds of U3O8 at an average sales price of $52 per pound with
            an average cash cost per pound sold of $14;
        --  Production for the Quarter:Production from Palangana totaled
            67,000 pounds and the Hobson facility processed 69,000 pounds
            of U3O8 for a cumulative cash cost of $18 per pound;
        --  Exploration and development activities at Palangana and Salvo
        --  Coronel Oviedo Uranium Project in Paraguay:The Company
            initiated a 10,000-meter drilling program at its Coronel Oviedo
            Project in Paraguay;
        --  The acquisition of the Anderson Project in Arizona was
        --  The Workman Creek Project in Arizona was acquired; and
        --  The Company's balance sheet remains strong: As of October 31,
            2011, UEC had $23.7 million of cash in the treasury and 134,000
            lbs. of U3O8 available for sale in inventory with a market
            value of $7.0 million.

Palangana Mine – Production Update

During the three months ended October 31, 2011, the Palangana Mine
produced 67,000 pounds of U(3)O(8).  The Hobson facility processed 69,000 pounds of U(3)O(8) for a cumulative cash cost((1)) of $18 per pound, with a total of 194,000 pounds processed since the
commencement of production to October 31, 2011.  The Company had
134,000 pounds of U(3)O(8) available for sale in inventory produced at an average cash cost ((1)) of $16 per pound, with a market value of $7.0 million based on the
average of the spot prices for uranium at October 31, 2011.

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 (22
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 2011.

Field crews are continuing to address performance variations with some
wells in the Phase I wellfield. A number of injection and production
wells here are being recompleted, and new wells are being drilled to
assist in extraction efficiencies. In Phase II, the wellfield is being
evaluated to improve production from areas that have remaining
resources yet to be recovered.  As noted above, the Phase III wellfield
commenced operations in early October 2011 and is ramping up.

Production Area-2 wellfield drilling and casing commenced in November
2011. A total of 72 wells are planned (36 injection and 36 production
wells). The first of two phases at PAA-2 is planned to start up in
April 2012.

Palangana – Ongoing Exploration and Development

Exploration drilling continued throughout the first quarter at the
Palangana Project, with four drill rigs targeting several lightly
explored areas.  Three mineralized trends were further delineated by
drilling 66 holes.  Ore-quality mineralization in these trends occurs
between 300′ to 600′ in depth. Additional delineation drilling and
coring are scheduled to be conducted in these areas in the near future.

Additionally, four drill rigs completed delineation of the future
Production Area-3 wellfield during the first quarter.  Thirty-three
delineation holes were drilled, followed by the installation of 18
perimeter monitor wells and 12 interior monitor wells in preparation
for a pump test which was conducted in November, with analytical
results anticipated in December.

Goliad Development Update

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). The Company expects to have an update on the status of this
license before the end of the 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

Drilling resumed at the Salvo Project in October 2011 with two drill
rigs completing four exploration holes offsetting known
mineralization.  During the first quarter, six additional leases were
acquired totaling 724 acres.  Drilling is scheduled to continue
throughout the year, and metallurgical and other tests are also being
performed to reaffirm ISR amenability at Salvo. Management anticipates
releasing drill results by March 2012.

Paraguay Update

In addition to the recently acquired 247,000-acre uranium property
located in the area of Coronel Oviedo, Paraguay, the Company entered
into an agreement to acquire a further six prospecting permits covering
740,000 acres in the same area.  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. With successful initial
exploration here, the Company has initiated a 10,000-meter drill
program on this regional-scale project.

Financial Review

The following is a financial review of the Company for the three months
ended October 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-Q filing available at
the Company’s website at www.uraniumenergy.com or on EDGAR at www.sec.gov.

Results of Operations

During the three months ended October 31, 2011, the Company recorded
revenue of $3.1 million resulting from the sale of 60,000 pounds of U(3)O(8) at an average sales price of $52.00 per pound.  Cost of sales,
including royalties of $0.3 million, totaled $1.4 million or an average
of $24.00 per pound sold  (cash cost ((1)) per pound sold of $14 excluding royalties).

During the three months ended October 31, 2011 (“2012 Q1″) and 2010
(“2011 Q1″), the Company recorded a net loss of $5.6 million or $0.07
per share compared to $8.9 million or $0.15 per share, respectively. 
Expenses for 2012 Q1 totaled $6.9 million (2011 Q1: $8.9 million) and
include $2.7 million (2011 Q1: $3.4 million) for mineral property
expenditures, $3.9 million (2011 Q1: $5.2 million) for general and
administrative and $0.3 million (2011 Q1: $0.3 million) for
depreciation, depletion and accretion.

    (1)      Cash costs are key indicators not defined under U.S. GAAP and
             are non-GAAP measures.  Cash costs exclude non-cash components
             comprised of depreciation, depletion and stock-based


Net cash used in operating activities for 2012 Q1 was $4.8 million
compared to $6.3 million for 2011 Q1.  Net cash used in financing
activities for 2012 Q1 was $1.0 million compared to net cash provided
of $25.9 million for 2011 Q1.  Net cash used in investing activities
for 2012 Q1 was $1.3 million compared to $2.0 million for 2011 Q1. As
of October 31, 2011, the Company had cash and cash equivalents of $23.7
million and working capital of $23.0 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 three
transactions during and subsequent to the first quarter.

Anderson Project in Arizona

On September 9, 2011, the Company and Concentric Energy Corp.
(“Concentric”) completed a stock-for-stock merger (the “Merger”)
effected under the laws of Nevada. Under the Merger, UEC issued
1,253,440 common shares of the Company to the former Concentric
stockholders to acquire Concentric. The purpose of the Merger was to
acquire Concentric’s undivided 100% interest in the Anderson Project, 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 Project, UEC is now one of the
leading uranium players in Arizona, a business and energy-friendly
state. Three of the largest nuclear power plants in the U.S. are
located there, with all three plants having recently received their
20-year license extensions.

South Texas Uranium Exploration Data

On September 7, 2011, the Company completed the acquisition of a major
uranium exploration database covering the Goliad formation (the
“Database”) from Uranium One Inc. for consideration comprised of a cash
payment of $400,000 and the issuance of 159,326 restricted common
shares of the Company. This strategic database is anticipated to
significantly advance the Company’s ongoing exploration efforts in
South Texas.

Workman Creek Project in Arizona

On November 30, 2011, the Company completed the acquisition of an
undivided 100% interest in the highly prospective 3,520-acre Workman
Creek Project located in Gila County, Arizona from Cooper Minerals,
Inc. for consideration of a cash payment of $84,640 and the issuance of
300,000 restricted common shares of the Company.

Uranium Market Update

During the Company’s first quarter ending October 31, 2011, the spot
price of uranium increased from $51.50/lb. to $52.00/lb. according to
the Ux Consulting Company. The spot price is finding strong support in
the low $50′s, and the longer term contract uranium price remains at
$63.00/lb. The worldwide nuclear build-out continues and the number of
reactors currently under construction totals 62 in 15 different
countries.  China, India, Russia and South Korea continue to lead the
global nuclear build-out, and these governments have reaffirmed their
commitment to nuclear energy.

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.

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