NOTE 5:

MINERAL RIGHTS AND PROPERTIES

Mineral Rights

At October 31, 2017, we had mineral rights in the States of Arizona, Colorado, New Mexico, Wyoming and Texas and in the Republic of Paraguay. These mineral rights were acquired through staking, purchase or lease agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium and titanium. At October 31, 2017, annual maintenance payments of approximately $1,719,000 will be required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

	October 31, 2017		July 31, 2017
Mineral Rights and Properties
Palangana Mine	$	6,285,898	$	6,285,898
Goliad Project		8,689,127		8,689,127
Burke Hollow Project		1,495,750		1,495,750
Longhorn Project		116,870		116,870
Salvo Project		14,905		14,905
Anderson Project		9,154,268		9,154,268
Workman Creek Project		1,582,500		1,520,680
Los Cuatros Project		257,250		257,250
Slick Rock Project		615,650		615,650
Reno Creek Project		25,553,807		-
Yuty Project		11,947,144		11,947,144
Oviedo Project		1,133,412		1,133,412
Alto Paraná Titanium Project		1,433,030		1,433,030
Other Property Acquisitions		91,080		91,080
		68,370,691		42,755,064
Accumulated Depletion		(3,929,884)		(3,929,884)
		64,440,807		38,825,180

Databases		2,410,038		2,410,038
Accumulated Amortization		(2,395,445)		(2,392,196)
		14,593		17,842

Land Use Agreements		404,310		404,310
Accumulated Amortization		(325,463)		(315,356)
		78,847		88,954
	$	64,534,247	$	38,931,976

We have not established proven or probable reserves, as defined by the SEC under Industry Guide 7, for any of our mineral projects. We have established the existence of mineralized materials for certain mineral projects, including the Palangana Mine. Since we commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

During the three months ended October 31, 2017, we issued 46,134 restricted shares with a fair value of $61,820 as an advance royalty payment for the Workman Creek Project, which was capitalized as Mineral Rights & Properties on the consolidated balance sheet as at October 31, 2017.

During the three months ended October 31, 2016, we abandoned certain non-core mineral interests at projects located in Arizona, Colorado and New Mexico with a combined acquisition cost of $143,168. As a result, an impairment loss on mineral properties of $143,168 was reported on the condensed consolidated statements of operations for the three months ended October 31, 2016.

During the three months ended October 31, 2017 and 2016, we continued with reduced operations at the Palangana Mine to capture residual uranium only. As a result, no depletion for the Palangana Mine was recorded on the condensed consolidated financial statements for the three months ended October 31, 2017 and 2016, respectively.

Mineral property expenditures incurred by major projects were as follows:

	Three Months Ended October 31,
	2017		2016
Mineral Property Expenditures
Palangana Mine	$	239,315	$	201,372
Goliad Project		22,816		30,030
Burke Hollow Project		334,237		39,641
Longhorn Project		2,808		147
Salvo Project		6,934		8,166
Anderson Project		15,457		15,234
Workman Creek Project		8,283		8,248
Slick Rock Project		13,613		12,346
Reno Creek Project		723,390		-
Yuty Project		90,968		89,675
Oviedo Project		62,196		146,668
Alto Paraná Titanium Project		39,611		112,768
Other Mineral Property Expenditures		117,072		225,823
	$	1,676,700	$	890,118

During the three months ended October 31, 2017, and in connection with the Reno Creek Acquisition, we issued 353,160 restricted shares as settlement of the Reimbursable Expenses totalling $483,829, which was included in the mineral property expenditures on the condensed consolidated statements of operations for the three months ended October 31, 2017. Refer to Note 4: Acquisition of Reno Creek Project.