NOTE

: MINERAL RIGHTS AND PROPERTIES

Mineral Rights

October 31, 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

October 31, 2019,

annual maintenance payments of approximately

$2.6

million will be required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

	October 31, 2019			July 31, 2019
Mineral Rights and Properties
Palangana Mine	$	6,027,784		$	6,027,784
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			3,470,373
Workman Creek Project		699,854			699,854
Los Cuatros Project		257,250			257,250
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
		67,451,387			67,451,387
Accumulated Depletion		(3,929,884	)		(3,929,884	)
		63,521,503			63,521,503

Databases		2,410,038			2,410,038
Accumulated Amortization		(2,409,437	)		(2,409,188	)
		601			850

Land Use Agreements		404,310			404,310
Accumulated Amortization		(392,411	)		(389,768	)
		11,899			14,542
	$	63,534,003		$	63,536,895

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

three

months ended

October 31, 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

months ended

October 31, 2019

and

2018,

respectively.

Mineral property expenditures incurred by major projects were as follows:

	Three Months Ended October 31,
	2019		2018
Mineral Property Expenditures
Palangana Mine	$	320,027	$	280,032
Goliad Project		59,965		18,822
Burke Hollow Project		648,861		108,545
Longhorn Project		10,157		15,376
Salvo Project		7,269		6,808
Anderson Project		16,053		22,214
Workman Creek Project		8,198		7,692
Slick Rock Project		13,134		17,224
Reno Creek Project		148,043		147,876
Yuty Project		14,196		23,403
Oviedo Project		105,938		20,725
Alto Paraná Titanium Project		56,248		25,833
Other Mineral Property Expenditures		115,362		171,693
	$	1,523,451	$	866,243