NOTE

MINERAL RIGHTS AND PROPERTIES

Mineral Rights

As at

July 31, 2021,

we had mineral rights in the States of Arizona, Colorado, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay. These mineral rights were acquired through staking and purchase, lease or option agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium. As at

July 31, 2021,

annual maintenance payments of approximately

$3.4

million were required to maintain these mineral rights.

As at

July 31, 2021,

the carrying value of these mineral rights and properties was as follows:

	July 31, 2021			July 31, 2020
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		899,854			799,854
Los Cuatros Project		257,250			257,250
Slick Rock Project		60,000			30,000
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
		67,711,387			67,581,387
Accumulated Depletion		(3,929,884	)		(3,929,884	)
		63,781,503			63,651,503

Databases and Land Use Agreements		2,458,808			2,458,808
Accumulated Amortization		(2,456,308	)		(2,454,808	)
		2,500			4,000
	$	63,784,003		$	63,655,503

We have

not

established proven or probable reserves, as defined by the SEC, for any of our mineral projects. We have established the existence of mineralized materials for certain uranium 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.

Mineral property expenditures incurred on our projects were as follows:

	Year Ended July 31,
	2021		2020
Mineral Property Expenditures
Palangana Mine	$	889,597	$	1,342,927
Goliad Project		237,515		190,278
Burke Hollow Project		1,445,797		1,130,467
Longhorn Project		9,154		17,023
Salvo Project		31,209		28,318
Anderson Project		78,601		71,170
Workman Creek Project		32,700		32,700
Slick Rock Project		52,117		52,521
Reno Creek Project		672,225		596,551
Yuty Project		31,279		65,679
Oviedo Project		371,966		350,211
Alto Paraná Titanium Project		198,969		230,350
Other Mineral Property Expenditures		427,678		474,208
	$	4,478,807	$	4,582,403

United States Projects

●

Palangana Mine, Texas

We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Palangana Mine located in Duval County, Texas, approximately

100

miles south of our Hobson Processing Facility. These agreements are subject to certain royalty and overriding royalty interests indexed to the sale price of uranium and generally have an initial

five

-year term with extension provisions.

During Fiscal

2021

and Fiscal

2020,

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 consolidated financial statements.

●

Goliad Project, Texas

We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Goliad Project located in Goliad County, Texas. These agreements are subject to certain fixed royalty interests based on net proceeds from sales or indexed to the sales price of uranium and have an initial

five

-year term with extension provisions.

●

Burke Hollow Project, Texas

We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Burke Hollow Project located in Bee County, Texas. These agreements are subject to fixed royalty interests based on net proceeds from sales and have an initial

five

-year term with extension provisions.

●

Longhorn Project, Texas

We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Longhorn Project located in Live Oak County, Texas. These agreements are subject to certain royalty interests indexed to the sale price of uranium and have an initial

five

-year term with extension provisions.

●

Salvo Project, Texas

We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Salvo Project located in Bee County, Texas. These agreements are subject to certain royalty interests indexed to the sales price of uranium and have an initial

five

-year term with extension provisions.

●

Anderson Project, Arizona

We hold an undivided

100%

interest in contiguous mineral lode claims and state leases at the Anderson Project located in Yavapai County, Arizona.

●

Workman Creek Project, Arizona

We hold an undivided

100%

interest in contiguous mineral lode claims in the Workman Creek Project located in Gila County, Arizona. The Workman Creek Project is subject to a

3.0%

net smelter royalty requiring an annual advance royalty payment of

$50,000

for

2016

and

2017,

and

$100,000

thereafter. We have an exclusive right and option to acquire

1.5%

of the net smelter royalty for

$1,000,000

at any time until

January 21, 2024.

Additionally, certain individuals hold an option to acquire a

0.5%

net smelter royalty exercisable by paying the Company the sum of

$333,340

at any time until

January 21, 2024.

During Fiscal

2021

and Fiscal

2020,

advance royalty payments of

$100,000

and

$100,000,

respectively, were capitalized as Mineral Rights and Properties and added to the carrying value of the Workman Creek Project.

●

Los Cuatros Project, Arizona

We hold an undivided

100%

interest in a state lease in the Los Cuatros Project located in Maricopa County, Arizona.

●

Slick Rock Project, Colorado

We hold an undivided

100%

interest in contiguous mineral lode claims in the Slick Rock Project located in San Miguel County, Colorado. Certain claims of the Slick Rock Project are subject to a

1.0%

3.0%

net smelter royalty, the latter requiring an annual advance royalty payment beginning in

November 2017.

During Fiscal

2021

and Fiscal

2020,

advance royalty payments of

$30,000

and

$30,000,

respectively, were capitalized as Mineral Rights and Properties and added to the carrying value of the Slick Rock Project.

●

Reno Creek Project, Wyoming

The Reno Creek Project consists of U.S. federal mineral lode claims, state mineral leases, various private mineral leases and certain surface use agreements which grant us the exclusive right to explore, develop and mine for uranium, which is located in Campbell County, Wyoming. The mineral leases and surface use agreements are subject to certain royalty interests with terms ranging from

five

years, some of which have extension provisions.

Canadian Project

●

Diabase Project, Canada

We hold a

100%

interest in the Diabase Project located on the southern rim of the Athabasca Basin uranium district in Saskatchewan, Canada.

Paraguay Projects

During Fiscal

2018

and Fiscal

2019,

we had communications and filings with the Ministry of Public Works and Communications (“MOPC”), the mining regulator in Paraguay, whereby the former MOPC took the position that certain concessions forming part of the Company's Yuty and Alto Parana Projects were

not

eligible for extension as to exploration or continuation to exploitation in their current stages. While we remain fully committed to our development path forward in Paraguay, we have filed certain applications and appeals in Paraguay to reverse the MOPC's position in order to protect our continuing rights in those concessions.

●

Yuty Project, Paraguay

The Yuty Project is a property under

one

exploitation concession and is subject to an overriding royalty of

$0.21

per pound of uranium produced from the Yuty Project.

●

Oviedo Project, Paraguay

The Oviedo Project is a property under

one

exploration permit and is subject to a

1.5%

gross overriding royalty over which we have an exclusive right and option at any time to acquire

0.5%

for

$166,667

and a right of

first

refusal to acquire all or any portion of the remaining

1.0%.

●

Alto Paran

Titanium Project, Paraguay

The Alto Paraná Titanium Project is a property under certain titanium mineral concessions located in the departments of Alto Parana and Canindeyú in Paraguay. The Alto Paraná Titanium Project is subject to a

1.5%

net smelter returns royalty. We have the right, exercisable to

July 2023,

to acquire

0.5%

of the net smelter royalty at a purchase price of

$500,000.