NOTE

: MINERAL RIGHTS AND PROPERTIES

Mineral Rights

April 30, 2019,

we had mineral rights in the States of Arizona, Colorado, New Mexico, Wyoming and Texas, in Canada 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

April 30, 2019,

annual maintenance payments of approximately

$2,516,000

will be required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

	April 30, 2019			July 31, 2018
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		3,470,373			9,154,268
Workman Creek Project		649,854			1,657,500
Los Cuatros Project		257,250			257,250
Slick Rock Project		-			646,650
Reno Creek Project		31,527,870			31,527,870
Diabase Project		546,938			546,938
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
		67,659,501			74,997,692
Accumulated Depletion		(3,929,884	)		(3,929,884	)
		63,729,617			71,067,808

Databases		2,410,038			2,410,038
Accumulated Amortization		(2,408,939	)		(2,405,192	)
		1,099			4,846

Land Use Agreements		404,310			404,310
Accumulated Amortization		(381,055	)		(354,388	)
		23,255			49,922
	$	63,753,971		$	71,122,576

We have

not

established proven or probable reserves, as defined by the SEC under Industry Guide

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

nine

months ended

April 30, 2019,

we completed a royalty purchase agreement (the "Royalty Purchase Agreement") with Uranium Royalty Corp. (“URC”), a private entity investing in the uranium sector, in connection with the purchase by URC from our Company of a

one

percent (

) net smelter return royalty (collectively, the "Royalties") for uranium only, on each of our Slick Rock, Workman Creek and Anderson projects. On

December 4, 2018,

we closed the Royalty Purchase Agreement and received

12,000,000

common shares of URC (the “Consideration Shares”) with a fair value of

$9,077,842.

The fair value of the Consideration Shares, net of transaction costs of

$55,787,

was allocated to the respective underlying projects based on their identified mineral resources as follows:

Fair value of Consideration Shares	$	9,077,842
Transaction costs		55,787
Net consideration	$	9,022,055

Net consideration allocation to:	Allocation %			Net Consideration Allocation
Anderson Project		63	%	$	5,683,895
Workman Creek Project		12	%		1,082,646
Slick Rock Project		25	%		2,255,514
		100	%	$	9,022,055

The net consideration allocation amounts have reduced the carrying value of the Anderson Project by

$5,683,895,

the Workman Creek Project by

$1,082,646

and the Slick Rock Project by

$676,650.

The net consideration of

$2,255,514

allocated to the Slick Rock Project exceeded its carrying value of

$676,650

$1,578,864,

which was recorded as a gain on disposition of asset and included in the condensed consolidated statement of operations for the

nine

months ended

April 30, 2019.

During the

nine

months ended

April 30, 2019

and

2018,

we continued with reduced operations at the Palangana Mine to capture residual uranium only. As a result,

depletion for the Palangana Mine was recorded on our condensed consolidated financial statements for the

three

and

nine

months ended

April 30, 2019

and

2018,

respectively.

Mineral property expenditures incurred by major projects were as follows:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2019		2018		2019		2018
Mineral Property Expenditures
Palangana Mine	$	248,687	$	264,447	$	775,311	$	740,977
Goliad Project		34,071		28,658		71,949		71,373
Burke Hollow Project		605,025		152,307		880,039		570,099
Longhorn Project		10,157		5,760		35,691		11,832
Salvo Project		6,702		6,702		20,211		20,338
Anderson Project		15,097		15,211		52,367		45,241
Workman Creek Project		7,673		7,673		23,037		23,627
Slick Rock Project		12,206		12,206		41,637		40,012
Reno Creek Project		178,722		158,546		474,015		1,126,918
Yuty Project		8,297		114,481		94,299		339,677
Oviedo Project		105,724		17,982		167,207		99,224
Alto Paraná Titanium Project		78,325		33,312		138,588		147,744
Other Mineral Property Expenditures		142,672		164,208		444,467		401,346
	$	1,453,358	$	981,493	$	3,218,818	$	3,638,408

During the

three

and

nine

months ended

April 30, 2018,

and in connection with the acquisition of the Reno Creek Project, we issued

353,160

shares as settlement of certain reimbursable expenses totalling

$483,829

which was included in the mineral property expenditures on our condensed consolidated statements of operations for the

nine

months ended

April 30, 2018.