Texas

The Texas Hub & Spoke ISR Project

• In November 2022, UEC announces that the Texas Commission on Environmental Quality ("TCEQ") has approved the Company's submission for a renewed and expanded radioactive material license ("RML") for its Hobson Central Processing Plant. UEC's amended RML from the TCEQ increases the Hobson Processing Plant's licensed production capacity to 4 million pounds of U3O8 annually. This distinguishes the plant as having the largest licensed capacity in Texas and the second largest in the United States.
• The Hobson Plant anchors UEC's hub-and-spoke in-situ recovery ("ISR") production platform in South Texas and will process uranium loaded resin recovered from multiple satellite projects including the Palangana and Burke Hollow ISR projects.
• In June 2024, Uranium Energy Corp Achieves Milestone with Filing the latest S-K 1300 Technical Report Summary Disclosing Resources for Its South Texas Hub & Spoke ISR Project.
• This latest S-K 1300 report marks an important milestone, reconfirming UEC’s position as America’s leading ISR uranium company with South Texas and Wyoming Hub & Spoke platforms containing 12 satellite projects, 7 of which are fully licensed, and over 79,156,000lbs of Measured and Indicated resources and 25,002,000 lbs of Inferred resources:
  • Total South Texas Disclosed M&I Resources are 12,958,000 lbs with 7,241,000tons grading approximately 0.085% U₃O₈ 
  • Total Disclosed Inferred Resources for South Texas is 9,948,100 lbs with 4,356,000tons grading approximately 0.120% U₃O₈
• The South Texas Hub & Spoke platform is production ready with fully licensed ISR projects.
• S-K 1300 was adopted by the Securities and Exchange Commission (“SEC”) to modernize mineral property disclosure requirements for mining registrants and to align U.S. disclosure requirements more closely for mineral properties with current industry and global regulatory standards.
• The Project geology is considered amenable to low-cost, environmentally friendly ISR mining methods.
• The TRS was prepared under S-K 1300 and was filed on June 12, 2024 with the SEC through EDGAR on Form 8-K and is also available on SEDAR as a “Material Document” filed on June 12, 2024.  The TRS was prepared on behalf of the Company by Western Water Consultants, Inc. d/b/a WWC Engineering, of Sheridan, Wyoming.

S-K 1300 Technical Report Summary - June 2024

About the Texas Hub & Spoke Project

The Project consists of five Project areas (“Figure 1-1”): Hobson Central Processing Plant (“CPP”), Burke Hollow, Goliad, Palangana and Salvo; and is located in Karnes, Bee, Goliad and Duval Counties, Texas. 

The Hobson CPP will serve as the ‘hub’ of the Project, with the other Project areas serving as satellite facilities, or the ‘spokes’. The Hobson CPP will process all the mineral mined on each of the other Project areas. The Project is in the South Texas Uranium Province (“STUP”), which is part of the South Texas coastal plain portion of the Gulf of Mexico Basin (“GMB”).

Mineral rights for the Project are all private (fee) mineral leases. Fee mineral leases are obtained through negotiation with individual mineral owners.

The Project resides in the GMB. The GMB extends over much of South Texas and includes the Texas coastal plain and STUP where the Project is located. The coastal plain is bounded by the Rocky Mountain uplift to the west and drains into the Gulf of Mexico. The coastal plain is comprised of marine, non-marine and continental sediments ranging in age from Paleozoic through Cenozoic.

Uranium mineralization at the Project is typical of Texas roll-front sandstone deposits. The formation of roll-front deposits is largely a groundwater process that occurs when uranium-rich, oxygenated groundwater interacts with a reducing environment in the subsurface and precipitates uranium. The most favorable host rocks for roll-fronts are permeable sandstones with large aquifer systems. Interbedded mudstone, claystone and siltstone are often present and aid in the formation process by focusing groundwater flux.

To date, UEC holds data from 5,232 drill holes that have been completed by UEC and previous uranium exploration companies on and nearby the five Project areas held by UEC. Data from the drilling, including survey coordinates, collar elevations, depths and grade of uranium intercepts, have been incorporated into UEC’s database.

Recent developments and operations include all work that has been done to develop and operate the Project properties since the last technical reports were written to update the resources and development at each Project area.

Summary capital and operating cost estimates are not included with this TRS, since UEC is reporting the results of an Initial Assessment (“IA”) without economic analysis. No new construction/development has occurred at the Hobson CPP or at Salvo since the 2010-2012 drilling campaign. However, UEC initiated drilling projects on Palangana, Goliad and Burke Hollow in 2010-2015, 2014 and 2019-2021, respectively. UEC also activated several wellfields at Palangana to produce uranium from 2010 to 2016.

Palangana

From 2010 to 2015, UEC drilled 891 drill holes at Palangana. Most of the drilling occurred in 2010 (391 holes), 2011 (281 holes) and 2012 (186 holes) and the remaining holes were drilled from 2013-2015. The majority of these wells were drilled for delineation purposes and the rest were drilled for monitor and production wells. In 2010, UEC activated wellfields in Production Area (“PA”) PA-1, PA-2 and PA-3 at Palangana. From 2010 to 2016, 563,600 lbs of uranium were produced by ISR methods.

Goliad

In 2014, UEC conducted a drilling program at Goliad for exploration and water wells. 35 holes were drilled and logged for exploration and water supply purposes with a majority of the holes being drilled in PA- 1 and PA-2.

Burke Hollow

The Burke Hollow project is the newest and largest ISR wellfield being developed in the U.S.

In November 2022, UEC announces that baseline sampling at its Burke Hollow project's first production area is complete, and that the production area pump test has been conducted successfully. Baseline sampling of all production area monitor wells and a production area pump test are important steps in finalizing the authorization for production within the already approved Mine Permit area. Due to the success of these endeavors, UEC is now one step closer to initiating production at Burke Hollow and is also now preparing for the second production area delineation drilling.

From 2021 to present, UEC completed installation and the permit submittal of PA-1.  Upon completion of PA-1, UEC drilled to upgrade the resources from inferred to measured and indicated to better define the mineralization in PA-1, PA-2, and the newly discovered PA-3.  As of April 11, 2024, 714 delineation and exploration holes were drilled, with 44 of these holes completed as monitor wells.  This program is ongoing for the purpose of completing additional holes for exploration and delineation of the newly discovered PA-3 and the Southern Graben Exploration Target outlined in previous technical summary report filings.

In 2023, mineralization was discovered to the south of the PA-1 area in a shallower horizon known as the Eastern Lower A Sand Trend, or “PA-3”, contained within the Eastern block of Burke Hollow.  This recently discovered trend accounts for much of the resource expansion since the initial 2022 Hub and Spoke technical summary report, adding significant pounds in all resource categories.  Current drilling focuses on delineation of this trend and exploration of the Southern Graben Area.

No historical data was used in the Burke Hollow mineral estimate, only data from drilling conducted by UEC from 2012 to the present.  In total, 887 new holes were drilled and logged between 2019 and April 11, 2024 to complete this estimate. 

This IA TRS has been prepared in accordance with the regulations set forth in S-K 1300 with the objective of disclosing the mineral resources at the Project and Platform.

Based on the density of drilling, continuity of geology and mineralization, testing and data verification, the mineral resource estimates meet the criteria for indicated or inferred mineral resources as summarized herein.

The in-place resources were estimated separately for each project area.  The Platform contains a measured resource of 3,631,900 lbs and an indicated resource of 9,326,100 lbs of U₃O₈ in-place.  The Platform contains 9,948,100 lbs of inferred mineral resources in-place.  Tables 1 and 2 below list the Platform resources by the project area.  Mineral resources are not mineral reserves and do not have demonstrated economic viability.  However, considerations of reasonable prospects for eventual economic extraction were applied to the mineral resource calculations herein.

Table 1:   Texas Hub and Spoke Project Measured and Indicated Resource Summary

Table 2:  Texas Hub and Spoke Project Inferred Resource Summary

The technical information in this news release has been reviewed and approved by Western Water Consultants, Inc., d/b/a/ WWC Engineering, an independent, third party consulting firm to the Company, and by Andrew W. Kurrus III, P.G., V.P. of Resource Development, Texas, for the Company, who fulfill the requirements as a “qualified person” for the purposes of S-K 1300.

Texas Careers

UEC is an active energy resource company seeking to fill multiple full-time positions for our uranium project in Beeville, Texas. UEC is an equal opportunity employer, offering competitive salaries and a robust benefit package; including paid medical insurance, paid dental insurance, vision, generous PTO, various paid holidays, and 401(k) Plan with Company match.