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Uranium Energy Corp Issues Year-End Shareholder Report

January 4, 2012

NYSE Amex Equities Exchange Symbol – UEC

CORPUS CHRISTI, TX, Jan. 4, 2012 /PRNewswire/ – Uranium Energy Corp (NYSE-AMEX: UEC, the ‘Company’) today issued a Year-End Shareholder Report. The report from CEO Amir
Adnani follows in its complete form:

Dear Shareholder,

As we begin a new year, I would like to provide for you a status report
on the Company’s accomplishments for the past year.  First and
foremost, I would like to thank you as a UEC shareholder for your
continued support and confidence in the Company and its management.

Despite 2011 having been a challenging year for the uranium sector, UEC,
as one of the few uranium producers worldwide, was able to execute on
its key objective of initiating and ramping-up production at low cash
costs. Strategic acquisitions were also made to favorably position UEC
for long-term growth in the uranium sector.

With an emerging low-cost production profile, one of North America’s
strongest technical teams and a growing base of operations in South
Texas — combined with over $20 million in cash and $7 million of
uranium in inventory as of the latest quarter end (October 31, 2011) –
UEC is well positioned for strong growth and a rewarding 2012.

2011 Achievements and Upcoming Milestones:

South Texas Operations

        --  Mine construction to commence at Goliad ISR Project - As of
            December 2011, the Company has received all of the state-level
            permits to start construction at our 100%-owned Goliad project
            in South Texas. The procurement of materials and initial
            wellfield development is scheduled to commence in early 2012.

        --  Production Advances - At Palangana in South Texas, the Company
            initiated production at Production Area-1 (PAA-1) in November
            2010. The nearby Hobson plant has processed more than 200,000
            pounds of U3O8 from Palangana. Both facilities are establishing
            strong safety and environmental records.

        --  Uranium Sales - In October 2011, UEC generated revenues of $3.1
            million by completing its first uranium sale for 60,000 pounds
            of U3O8 at an average sales price of $52 per pound and an
            average cash cost of $14 per pound. As of October 31, 2011, the
            Company had 134,000 pounds of U3O8 available for sale in
            inventory with a market value of $7 million.

        --  Data Acquisition - In September 2011, UEC acquired the South
            Texas uranium database package from Uranium One. This database
            contains over 2.8 million feet of drilling results and 40
            uranium targets. The database is currently being reviewed by
            the exploration team in order to identify acquisition and
            exploration targets in an ongoing effort to develop additional
            uranium sources for processing at the Hobson plant.

        --  South Texas Exploration and Resource Development - In the
            second half of 2011 the Company's exploration team continued to
            direct and investigate resource expansion opportunities at the
            Palangana and Salvo projects.

            The Company's development team continues to advance Production
            Area-2 (PAA-2) at Palangana towards initial production. PAA-2
            is scheduled to commence operations in April 2012.  Production
            Area-3 (PAA-3) is also advancing with a production application
            scheduled to be filed this month.

            The 2011 drilling campaign at the Company's Salvo project
            resulted in an independent NI 43-101 Technical Report in April
            2011, which identified an inferred resource estimate of 2.8 MM
            lbs. of U3O8. Drilling with two rigs resumed in October 2011 to
            further expand the current resource estimate and is expected to
            continue throughout 2012. Additional leases have been acquired
            to expand the project area to include additional prospective
            zones. Metallurgical and other tests are also being performed
            to reaffirm ISR amenability at Salvo.

            The Company has firmly established its "hub-and-spoke" strategy
            in South Texas with four ISR projects in close proximity to the
            Company's Hobson processing plant. Initial operations have
            proven to produce uranium at low cash costs. UEC is committed
            to increasing its resources and operations in South Texas
            through acquisition, exploration and permitting activities.

Corporate Acquisitions and Advancements

        --  Property Acquisitions and Exploration in Paraguay - In addition
            to the May 2011 acquisition of the 247,000-acre uranium
            property located in the area of Coronel Oviedo, Paraguay, the
            Company entered into an agreement in October 2011 to acquire a
            further six prospecting permits covering 740,000 acres in the
            same area, bringing the total land package to nearly
            one-million acres. Globally, UEC now controls one of the
            largest land packages with ISR potential.

            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 by
            pump-test studies. The Company has initiated a 10,000-meter
            drill program on this district-scale project.

        --  Property Acquisitions in Arizona - In September 2011, UEC
            acquired a 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 uranium production. Anderson
            was brought to the feasibility stage twice in the late 1970's
            by major mining companies. Company geologists are analyzing all
            historic project data including results from over 1,400 drill
            holes, with the objective of completing an updated NI 43-101
            Technical Report during the first quarter of 2012.

            In December 2011, UEC also acquired the Workman Creek project
            located in Gila County, Arizona. This project has over 400
            exploration and development drill holes completed in the 1970's
            by Wyoming Minerals Corp, a subsidiary of Westinghouse. A
            positive feasibility study was completed on Workman Creek
            during the 1980's.

            With the Anderson and Workman Creek acquisitions, UEC is now a
            leading uranium company in Arizona in addition to South Texas.

        --  Analyst Coverage - Five recognized uranium analysts in the U.S.
            and Canada cover and report on the Company's developments. Most
            recently, Global Hunter Securities initiated coverage as of
            September 2011. The Company, and myself, were fortunate to
            receive continued international recognition through interviews
            with major news services including Bloomberg, Dow Jones and
            Reuters that were distributed globally.

Honoring Edward Robert Brezinski

Last month, we lost a key member of the UEC team and a distinguished
veteran of the nuclear industry.  Edward Robert Brezinski, Vice
President of Marketing and Sales, passed away at the age of 57 on
December 10, 2011.

Ed was involved in the industry for more than 25 years.  He began his
career at Northeast Utilities as a lead purchaser of uranium,
conversion, enrichment and fabrication services and later served as a
trader with UG USA, NUKEM Inc., NYNCO and Energy Solutions.  Ed first
joined UEC in July 2007 as a member of the Advisory Board and was
recently appointed as Vice President of Marketing and Sales in March
2011.

Ed’s extensive knowledge of the uranium markets contributed greatly
towards UEC’s growth and success.  His tireless efforts as a nuclear
industry spokesperson benefited not only the Company, but the entire
industry as well. He will be dearly missed.

Uranium Shortfall Continues and its Effects on the Uranium Price 

Despite the impact of Fukushima, the fundamentals of the uranium sector
remain intact and appear poised for both near-term and long-term
growth. There are currently 435 reactors operating, 62 reactors under construction, 156 reactors at the planning stage and
343 reactors under proposal. China, India, Russia and South Korea, the
four major drivers of nuclear growth, have evaluated and renewed their
commitment to nuclear power.

In China alone, government sources have announced plans to significantly
increase Chinese nuclear capacity from 11GW today to possibly 86GW or
more by 2020. With the emerging markets continuing to drive demand
growth for nuclear power, the outlook for the uranium industry remains
strong.

For 2011, global uranium consumption was approximately 175 million
pounds while uranium production is estimated to reach only about 145
million pounds. To date, this shortfall has been made up from secondary
sources of uranium such as government inventories, recycled materials,
and down-blended weapons-grade material provided under the HEU
Agreement between the U.S. and Russia, currently providing
approximately 24 million pounds of supply annually and is set to expire
in 2013.

By 2020, annual uranium consumption is forecasted to increase by 50
million to approximately 225 million pounds. Significant additional
supply from new mine production, often delayed by operational,
political and economic risks, will not only need to keep pace with this
demand growth, but it will need to replace current production from
depleting mine deposits.  Furthermore, secondary sources are expected
to decrease over the long-term, especially with the expiry of the HEU
Agreement.

Despite this need for new production, current price levels in the range
of $50 to $55 per pound are insufficient to incentivize the development
of new conventional uranium projects. At current prices for example,
Kazakhstan, the source of nearly all production growth in the last
decade, has indicated that no new uranium projects will be developed
and, at the same time, is attempting to minimize further downward
pressure on uranium prices by stabilizing its production levels. Over
the course of the previous year, emerging supply constraints have also
been exposed by operational challenges at existing mines and delays at
development projects across the globe. The increasing supply tension
combined with increasing demand are expected to result in higher spot
and contract prices going forward, especially as we approach the end of
2013.

We view recent merger and acquisition activities in the uranium sector
by major companies including Rio Tinto and China Guangdong Nuclear
Power Corp., among others, as further evidence that the outlook for the
uranium sector remains robust. As the sector nears major supply
shortages and higher uranium prices, UEC is extremely well positioned
with increasing production at low cash costs and a growing portfolio of
extensively explored and established uranium projects.

As North America’s newest uranium producer with a high-growth and
low-cost profile, Uranium Energy Corp is positioned to make you a proud
shareholder in 2012. Thank you again for your support and continuing
contribution.

——————————

Stay in close touch by calling 1-866-748-1030, emailing info@uraniumenergy.com and visiting www.uraniumenergy.com.

Best regards,

Amir Adnani

President and CEO

Uranium Energy Corp

About Uranium Energy Corp

Uranium Energy Corp. (NYSE-AMEX: UEC) 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 has been granted its Mine Permit and 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:
NYSE-AMEX: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
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 herein are economically or
legally mineable.

Safe Harbor Statement

Except for the statements of historical fact contained herein, the
information presented herein 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 herein
and in any document referred to herein.

Certain matters discussed herein 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 herein can be found in the Company’s filings with
the Securities and Exchange Commission. For forward-looking statements
herein, 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 document shall
not constitute an offer to sell or the solicitation of an offer to buy
securities. 

SOURCE Uranium Energy Corp


Source: PR Newswire