NOTE 5:

MINERAL RIGHTS AND PROPERTIES

Mineral Rights

At January 31, 2018, 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 January 31, 2018, annual maintenance payments of approximately $1,602,000 will be required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

	January 31, 2018		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		1,632,500		1,520,680
Los Cuatros Project		257,250		257,250
Slick Rock Project		635,650		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
		68,440,691		42,755,064
Accumulated Depletion		(3,929,884)		(3,929,884)
		64,510,807		38,825,180

Databases		2,410,038		2,410,038
Accumulated Amortization		(2,398,694)		(2,392,196)
		11,344		17,842

Land Use Agreements		404,310		404,310
Accumulated Amortization		(335,195)		(315,356)
		69,115		88,954
	$	64,591,266	$	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 and six months ended January 31, 2018, we paid $50,000 in cash and issued 46,134 restricted shares with a fair value of $61,820, respectively, as advance royalty payments for our Workman Creek Project, which were capitalized as Mineral Rights and Properties on the consolidated balance sheet as at January 31, 2018.

During the three and six months ended January 31, 2017, we abandoned the Nichols Project located in Texas with an acquisition cost of $154,774 and 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 $154,774 and $297,942, respectively, was reported on our consolidated statements of operations for the three and six months ended January 31, 2017.

During the three and six months ended January 31, 2018 and 2017, 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 our condensed consolidated financial statements for the three and six months ended January 31, 2018 and 2017, respectively.

Mineral property expenditures incurred by major projects were as follows:

	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2017		2018		2017
Mineral Property Expenditures
Palangana Mine	$	237,215	$	184,277	$	476,530	$	385,649
Goliad Project		19,899		19,849		42,715		49,879
Burke Hollow Project		83,555		110,675		417,792		150,316
Longhorn Project		3,265		906		6,072		1,053
Salvo Project		6,702		6,843		13,636		15,009
Anderson Project		14,572		269		30,030		15,504
Workman Creek Project		7,673		7,673		15,955		15,920
Slick Rock Project		14,192		12,206		27,805		24,552
Reno Creek Project		244,982		-		968,372		-
Yuty Project		134,228		102,037		225,196		191,712
Oviedo Project		19,046		68,402		81,242		215,070
Alto Paraná Titanium Project		74,821		409,865		114,432		522,633
Other Mineral Property Expenditures		120,065		144,444		237,138		370,267
	$	980,215	$	1,067,446	$	2,656,915	$	1,957,564

During the six months ended January 31, 2018, 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 our condensed consolidated statements of operations for the six months ended January 31, 2018. Refer to Note 4: Acquisition of Reno Creek Project.

During the three months ended January 31, 2018, we entered into a definitive purchase agreement (the “Purchase Agreement”) with Uranerz Energy Corporation (“Uranerz”), a wholly owned subsidiary of Energy Fuels Inc., to acquire 100% of its advanced stage North Reno Creek project (“North Reno Creek Project”) located immediately adjacent to and within our existing Reno Creek Project permitting boundary in the Powder River Basin, Wyoming.

According to the Definitive Purchase Agreement, we will provide to Uranerz the following consideration at the closing of this transaction:

$2,940,000 in cash; and

$2,450,000 in shares of the Company (each, a “UEC Share”), with the final number of UEC Shares to be calculated based on a deemed issuance price per UEC Share based on the volume weighted average price of our shares on the NYSE American for the five trading days immediately prior to the closing date of the Purchase Agreement.