Mr. Mark Chalmers reports

ENERGY FUELS' U.S. RARE EARTH PROCESSING EXPANSION BOASTS LOWER-THAN-EXPECTED CAPEX, SIGNIFICANT ANNUAL EBITDA, AND AMONG THE LOWEST COST NDPR PRODUCTION IN THE WORLD

Energy Fuels Inc. today released the results of a new bankable feasibility study (BFS) for its planned phase 2 circuit expansion (phase 2 circuit) of rare-earth element (REE) processing at its 100-per-cent-owned White Mesa mill in Utah. The BFS confirms the expansion's exceptional economics, competitive cost structure and ability to supply a significant share of United States rare-earth demand.

"Energy Fuels is on the cusp of solving America's rare-earth processing 'bottleneck,'" stated Mark S. Chalmers, chief executive officer of Energy Fuels. "Today's BFS shows that Energy Fuels is in the process of restoring a U.S. rare-earth supply chain that is world competitive. With an estimated capital cost of $410-million for the phase 2 circuit and an estimated all-in production cost of $29.39/kg NdPr equivalent produced from our Vara Mada project, we believe our REE oxide production ranks among the lowest capital and operating costs globally."

Highlights of the BFS include:

• AACE International (AACE) Class 3 bankable feasibility study (BFS) analyzed planned phase 2 circuit expansion (the phase 2 circuit) of REE processing and production capability at the mill.
• Upon commissioning, Energy Fuels' phase 2 circuit is expected to become one of the world's largest and lowest-cost producers of light and heavy rare-earth oxides. The mill, located in Utah, has the current installed capability in its existing phase 1 circuit (phase 1 circuit) to produce roughly 1,000 tonnes per annum (tpa) NdPr oxide. The phase 2 circuit will increase production capability to over 6,000 tpa of NdPr (along with approximately 66 tpa of terbium (Tb) and 240 tpa of dysprosium (Dy)).
• Initial capital cost of $410-million for the phase 2 circuit (lower than previous estimates).
• Net present value (8-per-cent discount rate) of $1.9-billion, or $7.96 per share (based on current outstanding shares), and IRR (internal rate of return) of 33 per cent (after-tax) for the phase 2 circuit, which does not include the company's recently announced Vara Mada project or any of the company's other HMS/monazite projects, all of which are expected to supply REE ore to the Mill for processing into REE oxides.
  • NPV increases to $3.7-billion, or $15.26 per share (based on current shares outstanding), when the phase 2 circuit is combined with the recently announced $1.8-billion NPV from the company's Vara Mada project
• Average annual EBITDA (earnings before interest, taxes, depreciation and amortization) of $311-million for first 15 years from the phase 2 circuit stand alone, not including expected EBITDA from the company's existing phase 1 circuit, recently announced expected project-level EBITDA from the company's Vara Mada project, project-level EBITDA from any of the company's other HMS/monazite projects or the company's United States industry-leading uranium production.
  • EBITDA increases to $765-million for the first 15 years when the phase 2 circuit is combined with the recently announced expected EBITDA from the company's Vara Mada project over those years.
• Annual expected REE oxide production over the 40-year modelled life of the project from the phase 2 circuit alone:
  • 5,513 tpa NdPr;
  • 48 tpa Tb;
  • 165 tpa Dy;
  • 748 tpa SEG concentrate (samarium, europium and gadolinium);
  • 1,080 tpa Ho+ concentrate (Ho, Er, Tm, Yb, Lu and Y);
  • 198,000 pounds per year uranium (U3O8), which is in addition to the company's U.S.-leading uranium production from its Pinyon Plain, La Sal and other conventional uranium mines.
• All-in costs for up to 32,000 tpa from the Vara Mada project alone (including transportation costs) equating to:
  • $29.39 per kg NdPr oxide equivalent.
• All-in costs for 50,000 tpa monazite from all modeled sources including Vara Mada (including transportation costs) equating to:
  • $59.80 per kg NdPr oxide equivalent.
• Regulatory approval for the phase 2 circuit is expected by mid-2027, allowing planned construction and commissioning of the phase 2 circuit by Q1 2029, which is on schedule to accommodate expected monazite deliveries from the company's permitted Donald joint venture project (expected as early as Q1 2028), Vara Mada project (expected as early as Q1 2029, subject to completion of permitting and the receipt of certain Madagascar government approvals) and Bahia project (expected in 2030, subject to completion of permitting), in each case pending development of those projects.
• The BFS assumes the phase 2 circuit is operating at full capacity of 50,000 tpa of monazite concentrate purchased at arm's-length prices from the company's Vara Mada, Donald and Bahia projects, once those projects are developed and commissioned, and to the extent full capacity is not achieved from monazite purchased from third party producers.
• The BFS utilizes base case Q3 2025 price forecasts from Adamas Intelligence (REE) and TradeTech (uranium).
• Added economic upside and project-level cash flow from the company's Donald joint venture in Australia is not included in this analysis, pending completion of an updated National Instrument 43-101 (NI 43-101) and Subpart 1300 of Regulation S-K (S-K 1300) feasibility study for that project, expected to be filed later in Q1 2026, or from the company's Bahia project in Brazil which is in the exploration and permitting phase, both of which are also expected to supply REE ore to the mill.

The BFS is a Class 3 bankable feasibility study that analyzes planned expansion of REE processing and production capability at the mill. As the BFS does not evaluate a mine or other mineral property, it is not a feasibility study subject to or intended to be compliant with NI 43-101 or S-K 1300.

Mr. Chalmers continued: "The BFS results are a gamechanger for several reasons. First, we have a clear pathway to supplying 45 per cent of total U.S. rare-earth requirements in the near term, including 100 per cent of much-needed 'heavy' REEs like Tb and Dy by 2030 according to Benchmark Mineral Intelligence demand forecast. Second, we believe we can scale our production of these critical REE oxides at a fraction of the capital costs required by others. Third, our operating costs, and expected margins, should be in the first quartile globally including Chinese producers. Fourth, our phase 2 circuit and Vara Mada project combined have a current NPV of $3.7-billion and the ability to generate approximately $765-million of EBITDA per year over the first 15 years for Energy Fuels shareholders. Finally, we are demonstrating that it is possible to achieve both large-scale rare-earth production and superior economics here in the United States, where we operate at the very highest global standards for health, safety, environmental protection and sustainability."

About Energy Fuels Inc.

Energy Fuels is a leading U.S.-based critical materials company, focused on uranium, rare-earth elements (REEs), heavy mineral sands, vanadium and medical isotopes. Energy Fuels, which owns and operates several conventional and in situ recovery uranium projects in the Western United States, has been the leading U.S. producer of natural uranium concentrate for the past several years, which is sold to nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels also owns the White Mesa mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States. At the mill, Energy Fuels also produces advanced REE products, vanadium oxide (when market conditions warrant) and is evaluating the potential recovery of certain medical isotopes from existing uranium process streams needed for emerging targeted alpha therapy cancer treatments. Energy Fuels is also developing three heavy mineral sands projects: the 100-per-cent-owned Vara Mada project in Madagascar; the 100-per-cent-owned Bahia project in Brazil; and the Donald project in Australia in which Energy Fuels has the right to earn up to a 49-per-cent interest in a joint venture with Astron Corp. Ltd. Energy Fuels, based near Denver, Colo., trades its common shares on the NYSE American under the trading symbol UUUU and is also listed on the Toronto Stock Exchange under the trading symbol EFR.

Qualified person

The technical information in this press release has been reviewed on behalf of the company by Daniel Kapostasy, vice-president, technical services, of the company.

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