Commercial-Scale 'Heavy' Rare Earth Plant Now Under Construction in Utah

"Heavy rare earth production is a severe pinch point in North American and European permanent magnet supply chains," said Ross Bhappu, President and Chief Executive Officer of Energy Fuels. "Given our ongoing success in piloting heavy rare earth oxides, we are now ready to advance to commercial-scale production. This is an exciting moment for Energy Fuels as we continue to build a fully integrated Western mine-to-magnet rare earth platform with proven commercial expertise at each step of the supply chain. The production of both light and heavy rare earth oxides is a key differentiator of Energy Fuels' strategy to build an integrated rare earth supply chain that is expected to be completed upon the anticipated closing of our pending acquisitions of Australian Strategic Materials (ASM) and Vacuumschmelze (VAC)¹."

The Mill has the current commercial capacity to produce up to 1,000 tonnes per annum (tpa) of separated NdPr oxide. The planned expansion is designed to add the capacity to produce up to approximately 20 tpa of terbium (Tb), 120 tpa of dysprosium (Dy), 140 tpa of samarium (Sm), 20 tpa of europium (Eu), and 140 tpa of gadolinium (Gd) oxides, along with other rare earth elements²: Tb and Dy are heavy rare earths added to most high-end rare earth permanent magnets (REPMs) to increase resistance to demagnetization (coercivity) and high-temperature performance, and to enable smaller, lighter, more powerful, and more efficient electric motors.

The planned expansion is expected to be completed by the end of 2027, with respect to the addition of the Tb and Dy circuits and by the end of 2028 with respect to the addition of the Sm, Eu and Gd circuits.³

The White Mesa Mill's heavy rare earth expansion is sized and timed to process the anticipated near-term monazite output from the Company's Donald Project joint venture in Australia. Subject to a positive final investment decision (anticipated in Q3 2026)⁴, Donald is expected to produce approximately 8,500 to 9,500 tonnes of monazite concentrate annually beginning in 2028. This volume, along with additional third-party feedstock currently under contract and in discussion, is expected to fully utilize the Mill's current NdPr oxide capacity, and planned Tb and Dy oxide capacity, which is expected to be commissioned in Q4 2027. In turn, these rare earth oxides are expected to supply roughly 70% of the feedstock required for ASM's existing and planned metal and alloy capacity in South Korea, which itself is expected to supply sufficient magnet alloy to supply over 100% of the 2,000 tonnes of magnet capacity at VAC's magnet manufacturing facility in Sumter, South Carolina – the largest REPM facility in the United States.⁵ 

The planned expansion is also expected to include a circuit for the processing of mixed rare earth carbonates (MREC) to enable Energy Fuels to process additional types of feedstocks produced globally that are rich in heavy rare earth oxides. Importantly, the new MREC circuit will enable the Mill to produce rare earth oxides and uranium simultaneously at commercial scale.

This expansion project is estimated to have a total capital expenditure of approximately $104 million, which is expected to be supported in large part through various government grants and loans. The debt component for the heavy rare earth expansion is planned to be covered by a previously announced conditional loan commitment from the U.S. government. The equity component will be covered out of the Company's working capital, which totaled approximately $0.96 billion as of March 31, 2026. The Company has also applied for grant funding from other U.S. government agencies.

Energy Fuels plans to further expand the Mill in 2029 to increase overall capacity to 6,294 tpa NdPr, 80 tpa Tb, and 288 tpa Dy oxides. This second expansion is expected to process monazite supplied largely by the Company's current and development projects, including all phases of the Donald Project in Australia, the Vara Mada Project in Madagascar, and the Bahia Project in Brazil, along with third-party monazite concentrates and MRECs. The oxides produced at the Mill from these sources will support more than 100% of the expected internal demand of the planned expansion of ASM's metal and alloy facility in South Korea and its planned new facility in the U.S. This in turn will produce sufficient magnet alloy to supply more than 100% of the internal demand for VAC's planned U.S. and European magnet manufacturing expansions, resulting in a total integrated mine-to-magnet supply chain capable of producing 15,700 tonnes of REPMs per year in the coming years⁵. These volumes of magnets are sufficient to supply up to six million electric/hybrid electric vehicles per year, four million humanoid robots per year, 31 million internal combustion engine vehicles per year, 3,140 offshore wind turbines per year, or 7.8 million iPhones per year.⁶

Footnotes:

About Energy Fuels

Energy Fuels is a leading U.S.-based critical materials company, focused on uranium, rare earth elements (REEs), heavy mineral sands, vanadium and medical isotopes. Energy Fuels, which owns and operates several conventional and in-situ recovery uranium projects in the western United States, has been the leading U.S. producer of natural uranium concentrate for the past several years, which is sold to nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels also owns the com Mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States. At the Mill, Energy Fuels also produces advanced REE products, vanadium oxide (when market conditions warrant), and is evaluating the potential recovery of certain medical isotopes from existing uranium process streams needed for emerging Targeted Alpha Therapy cancer treatments. Energy Fuels is developing three (3) heavy mineral sands projects: the 100% owned Vara Mada Project in Madagascar; the 100% owned Bahia Project in Brazil; and the Donald Project in Australia in which Energy Fuels has the right to earn up to a 49% interest in a joint venture with Astron Limited. Energy Fuels, based near Denver, Colorado, trades its common shares on the NYSE American under the trading symbol "UUUU," and is also listed on the Toronto Stock Exchange under the trading symbol "EFR." For more information on all Energy Fuels does, please visit http://www.energyfuels.com.

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the planned expansion will be completed as expected, or at all; any expectation with respect to the capital costs of the planned expansion; any expectation as to funding related to the planned expansion; any expectation that the proposed acquisitions of ASM and/or VAC will complete as planned or at all; any expectation that any government funding being pursued will be funded as contemplated or at all; any expectation that Energy Fuels' Donald Project will be developed as planned or at all; any expectation that ASM will expand its metal and alloy-making capacity as planned; any expectation that any of Energy Fuels' other projects will advance to a positive final investment decision and be developed; any expectation as to future production of Energy Fuels; any expectation that Energy Fuels will secure sufficient feed materials to support its planned expanded separations capacity at the Mill;any expectation that Energy Fuels will be successful in developing an integrated mine-to-magnet platform; any expectation that the Company's further expansion plans at the Mill will be completed or as to the production capacity of any such expansion; any expectation that Energy Fuels will maintain its position as a leading U.S.-based critical materials company; and any expectation that Energy Fuels' evaluation of radioisotope recovery at the Mill will be successful. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Energy Fuels to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; legal challenges; the availability of feed sources for the Mill; competition from other producers; public opinion; government and political actions or inactions; the ability of Energy Fuels to produce rare earth products to meet commercial specifications on a commercial scale at acceptable costs or at all; market factors, including future demand for rare earth element products generally or for western-produced REE products; and the other factors described under the caption "Risk Factors" in Energy Fuels' most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar, on SEDAR+ at www.sedarplus.ca, and on Energy Fuels' website at www.energyfuels.com. Forward-looking statements contained herein are made as of the date of this news release, and Energy Fuels disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. Energy Fuels assumes no obligation to update the information in this communication, except as otherwise required by law.

www.energyfuels.com

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SOURCE Energy Fuels Inc.