Quarterly Report for Quarter Ending January 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

(Expressed in thousands of U.S. dollars, except per share and per pound amounts)

The following management's discussion and analysis of the Company's financial condition and results of operations (the "MD&A") contain forward-looking statements that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business plans and expectations. In evaluating these statements you should consider various factors, including the risks, uncertainties and assumptions set forth in reports and other documents we have filed with or furnished to the SEC and, including, without limitation, this Form 10-Q Quarterly Report for the six months ended January 31, 2026, and our Form 10-K Annual Report for Fiscal 2025, including the consolidated financial statements and related notes contained therein. These factors, or any one of them, may cause our actual results or actions in the future to differ materially from any forward-looking statement made in this Quarterly Report. Refer to "Cautionary Note RegardingForward-looking Statements" as disclosed in our Form 10-K Annual Report for Fiscal 2025, and Item 1A, Risk Factors, under Part II - Other Information, of this Quarterly Report.

Introduction

This MD&A is focused on material changes in our financial condition from July 31, 2025, our most recently completed year end, to January 31, 2026, and our results of operations for the three and six months ended January 31, 2026, and should be read in conjunction with Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, as contained in our Form 10-K Annual Report for Fiscal 2025.

Business

We have been primarily engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing. Our principal projects are located in Wyoming and Texas in the United States and in Saskatchewan, Canada, as more fully described in our Form 10-K Annual Report for Fiscal 2025.

In August 2024, we restarted uranium extraction at our fully permitted, and past producing, Christensen Ranch Mine ISR operation in Wyoming. During Fiscal 2025, our initial production as part of ramp up yielded 103,545 pounds and 26,421 pounds of precipitated uranium and dried and drummed U₃O₈ (uranium concentrate), respectively. For the six months ended January 31, 2026, 114,355 pounds of precipitated uranium and dried and drummed U₃O₈ were produced. We expect the ramp-up phase will continue while new production areas are being constructed in 2026. Delineation drilling expanded in wellfield 12 and 8 and 10-extensions. Mine development advanced further with well installation in wellfield 10-extension and 12, as well as installation of the monitor well ring in wellfield 10-extension. Additionally, construction was completed on four new header houses in wellfield 11, with three additional header houses being installed in wellfield 12 and 10-extension. Production from the new header houses is expected to commence on receipt of state regulatory approval. In parallel with activities at the Christensen Ranch mine, process upgrades at the Irigaray central processing plant ("CPP") continued in the second quarter of Fiscal 2026, including refurbishment of the calciner to increase throughput of dried yellowcake. Updates included components as recommended by the manufacturer to increase operational efficiency. As a result, drying and packaging is now running with 24/7, two shift operations.

At Ludeman, our third new ISR project located 10 miles northeast of Glenrock, Wyoming, delineation drilling was approximately 80% completed at the end of the second quarter of Fiscal 2026. This work will assist wellfield pattern design currently underway.

Uranium recovered from the Christensen Ranch Mine ISR operation is processed at our Irigaray CPP, which has a licensed production capacity of four million pounds of U₃O₈ per year. The Irigaray CPP is the hub central to our four fully permitted ISR projects located in the Powder River Basin of Wyoming, including our Christensen Ranch Mine and our Reno Creek, Moore Ranch and Ludeman Projects.

On August 1, 2025, our Sweetwater Project was designated as a FAST-41 transparency project by the U.S. Federal Permitting Improvement "Steering Council" as part of the implementation of President Trump's Executive Order on Immediate Measures to "Increase American Mineral Production". Our first milestone in the FAST-41 process was completed in the second fiscal quarter with the submission of the Sweetwater Plan of Operations for ISR operations to the Bureau of Land Management ("BLM") on November 14, 2025. BLM finalized their completeness review of the submission on March 3, 2026, the second milestone in the FAST-41 process. The next steps are meetings with BLM to determine the level of National Environmental Policy Act review that will be necessary for final approval of the project on federal lands. The installation of 23 cased monitor wells and the coring program for advanced metallurgical testing was completed during the quarter. We commenced a 200-hole delineation drilling program in the first wellfield at Sweetwater on March 2, 2026.

In Texas, our fully-licensed and 100% owned Hobson CPP forms the basis for our regional operating strategy in the State of Texas, specifically the South Texas Uranium Belt, where we utilize ISR mining. We utilize a "hub-and-spoke" strategy whereby the Hobson Processing Facility, which has a physical capacity to process uranium-loaded resins of up to a total of two million pounds of U₃O₈ annually and is licensed to process up to four million pounds of U₃O₈ annually, acts as the central processing site (the "hub") for our Palangana Mine, and future satellite uranium mining activities, such as our Burke Hollow and Goliad Projects, located within the South Texas Uranium Belt (the "spokes").

A major milestone was achieved with the construction completion of Burke Hollow during the second quarter of Fiscal 2026. Drilling, casing, and underreaming of wells in the initial production area within the first wellfield is complete. The wellfield is comprised of 129 injection and recovery wells that have been tested for mechanical integrity and will provide initial feed to the ion-exchange ("IX") plant. The buildout of the satellite IX plant, including IX columns, IX resin and water treatment systems with an overall capacity of 2,500 gallons per minute was completed. Ion-exchange is a filtration system which removes liquid uranium from groundwater before it is dried and processed into U₃O₈ at the Hobson CPP. Additionally, all bulk chemicals, including oxygen, carbon dioxide and others, have been delivered in preparation for startup of our hub and spoke operations in South Texas. In December 2025, the Drilling and Completion Report for the waste disposal well was submitted to the Texas Commission on Environmental Quality ("TCEQ") for their review. The waste disposal well will facilitate production operations, as well as restoration at the completion of mining activities. As the TCEQ completes its review, which is standard procedure for commencing a new ISR operation, we have carried out pre-operational inspections of the wellfield, IX plant and disposal well. With the increased level of industry activity, there is regulatory backlog, which has led to slower than normal review times for submissions.

In Canada, we started a 34,000-meter core drilling program in October 2025. Of the planned drilling more than 30% has been completed. Concurrently, we are working with SaskPower towards a Definition Phase Agreement for a high-voltage power connection to the Roughrider Project.

On August 18, 2025, we incorporated UEC US Uranium LLC for the purpose of holding and administering our physical uranium assets and related contractual arrangements in the U.S. On January 2, 2026, UEC Energy Corp. was formed as a holding company to hold certain investments and other assets.

In September 2025, we announced the incorporation of United States Uranium Refining & Conversion Corp. ("UR&C"), which is intended to pursue the feasibility of developing a new uranium refining and conversion facility in the U.S. The project will move forward contingent on several factors, including completion and assessment of additional engineering and economic studies, securing strategic government commitments, utility contracts, regulatory approvals and favorable market conditions. During the second quarter of Fiscal 2026, UR&C progressed a feasibility study with its contractor, Fluor Corporation ("Fluor"). In support of the feasibility study, a detailed siting study was initiated for the planned facility, and the review of various sites across the U.S. is underway. All sites are undergoing a rigorous evaluation with respect to site and civil characteristics, environment and permitting requirements, logistics, utility infrastructure, and the available workforce. Several key technical personnel were added to the UR&C's team, as well as Fluor's engineering team. Additionally, Fluor began preparing for licensing of the facility with the placement of key licensing and permitting personnel.

On October 2, 2025, we completed a private placement offering of 575,000 shares of our common stock issued as "flow-through shares", as defined in subsection 66(15) of the Income Tax Act (Canada), for gross proceeds of $8.63 million. The proceeds will be applied toward certain qualifying CEE, as defined in the Income Tax Act (Canada), at the Company's Roughrider Project located in Saskatchewan, Canada.

On October 6, 2025, we completed a public offering of 15,500,000 shares of our common stock at a price of $13.15 per share, resulting in gross proceeds of $203.83 million. On October 9, 2025, the underwriter exercised its over-allotment option to purchase an additional 2,325,000 shares of common stock at the same offering price, providing additional gross proceeds to the Company of $30.57 million. The total issuance costs were $2.79 million pursuant to the public offering and the over-allotment purchase. We intend to use the proceeds from this offering to support the development of a new uranium refining and conversion facility through UR&C, as well as for general corporate and working capital purposes.

As at January 31, 2026, we hold certain mineral rights in various stages in the States of Arizona, New Mexico, Texas and Wyoming, and in Canada and in the Republic of Paraguay, many of which are located in historically successful mining areas and have been the subject of past exploration and pre-extraction activities by other mining companies.

Our operating and strategic framework is to become a leading low-cost North American focused uranium supplier based on expanding our uranium extraction activities, which includes advancing certain uranium projects with established mineralized materials towards uranium extraction and establishing additional mineralized materials on our existing uranium projects or through acquisition of additional uranium projects.

We continue to establish additional uranium projects through exploration and pre-extraction activities and direct acquisitions in the U.S., which require us to manage numerous challenges, risks and uncertainties inherent in our business and operations as more fully described in Item 1A. Risk Factors herein.

Physical Uranium Program

We are investing in building the next generation of low-cost uranium projects that will be competitive on a global basis and which will use the ISR mining process which is expected to reduce the impact on the environment as compared to conventional mining. Despite our focus on low cost ISR mining with its low capital requirements, we saw a unique opportunity to purchase drummed uranium at prevailing spot prices which are below most global industry mining costs. Hence, we established a physical uranium portfolio (the "Physical Uranium Program").

As of January 31, 2026, we held 1,456,000 pounds of purchased uranium, and all previously disclosed purchase commitments for uranium had been fulfilled as of such date with no outstanding purchase agreements remaining.

Our Physical Uranium Program supports three objectives for our Company: (i) to bolster our balance sheet as uranium prices appreciate; (ii) to provide strategic inventory to support future marketing efforts with utilities that could compliment production and accelerate cash flows; and (iii) to increase the availability of our Texas and Wyoming production capacity for emerging U.S. origin specific opportunities which may command premium pricing due to the scarcity of domestic uranium. One such U.S. origin specific opportunity is the Company's plan to participate in supplying the Uranium Reserve, as outlined in the Nuclear Fuel Working Group report published by the U.S. Department of Energy.

Uranium Market Developments

The uranium market is being driven by a macro demand for more electricity generation, an unprecedented global push for clean energy, data center and AI development, geopolitical situations and under investment among other factors. In its latest Electricity 2026 Outlook, the International Energy Agency reported nuclear energy at a record high and projected global electricity demand growth of roughly 3.6% per year through 2030. The report also noted that nuclear energy together with renewable energy sources will generate about half of all global electricity by 2030. Demand for data centers and artificial intelligence systems is continuing to increase with Goldman Sachs projecting a 160% to 175% increase in global data center power demand by 2030 compared to 2023 levels. ICF International Inc. in its September 2025 study, projected that electricity demand in the United States will see a 25% increase by 2030 and a near 80% increase by 2050.

Countries around the globe are realizing the highly reliable, clean, safe, economical power nuclear energy provides should be a part of most any country's baseload energy platform. An increasing number of governments have announced that they are pursuing strategies to increase energy independence for national security interests that dovetail well with nuclear power as a key component in their energy mix.

In the United States, several pieces of bipartisan legislation have passed in recent years supporting nuclear energy development and expansion, including the Nuclear Fuel Security Act, the Advance Act, the Inflation Reduction Act and the Big Beautiful Bill (collectively, the "Acts"). In combination, these bills and other legislative efforts seek to encourage the restoration and rebuilding of a robust domestic fuel cycle in the United States. Consistent with the Acts, recent legislation labeled as the Accelerating Reliable Capacity (ARC) Act of 2026 has been introduced in the Senate by bipartisan parties to provide federal backing for over-budget nuclear reactors.

On May 23, 2025, the President of the United States signed Executive Orders (each, an "Executive Order") that include a policy objective to quadruple United States' nuclear energy by 2050. These Executive Orders mark a historic level of policy support to rejuvenate the United States nuclear industry and its infrastructure, underscoring its importance as a matter of national security. The Executive Orders invoke the Defense Production Act and are intended to have significant positive policy and economic impacts on the domestic fuel cycle, reactor new builds, research and new technology advancements. Underscoring the Executive Orders directives, on October 28, 2025 announcements were made that the U.S. Government had entered into a strategic partnership encompassing at least $80 billion for the construction of new nuclear reactors using Westinghouse technology.

Additionally, large technology companies, like Nvidia, Microsoft, Meta, Google, Oracle and Amazon, have announced significant nuclear energy commitments including that required for their data center energy demand with large investments in the clean, affordable and reliable power that nuclear energy provides.

Global uranium market fundamentals have shown major improvement in recent years as this market began a transition from being inventory driven to production driven. The spot market bottomed out in November 2016 at about $17.75 per pound U₃O₈, but has since shown significant appreciation, reaching a high in 2024 of $107.00 per pound U₃O_8. Since that time the spot uranium market retraced some of the advance, reaching a low of $63.45 per pound U₃O₈ on March 17, 2025. That low proved to be short lived, and the uranium market has since rebounded, reaching $101.50 per pound U₃O₈ on January 29, 2026. Since that time, the market has experienced what appears as a shorter-term pullback to $85.50 in February 2026 (Source: UxC LLC Historical Ux Daily Prices).

During the three and six months ended January 31, 2026, uranium prices averaged $80.76 and $78.75 per pound U₃O₈ representing a 7.7% and 0.9% increase, respectively, compared to the average price of $74.98 and $78.06 per pound U₃O₈ representing a 7.7% increase compared to the average price of $74.98 per pound U₃O₈ in the corresponding period in Fiscal 2025 (Source: UxC LLC Historical Ux Daily Prices).

Relative underinvestment in uranium mining operations has been evident for more than a decade and has been a major factor contributing to a structural deficit between global production and uranium requirements. Reduced production from existing uranium mines has also been a contributing factor with some large producers cutting back and/or unable to reach previously planned production levels. In 2025 and 2026, the mid-case gap between production and requirements is projected to be about 67 million pounds U₃O₈, and by 2035 accumulates to a total above 344 million pounds U₃O₈ (Source: UxC 2025 Q4 Uranium Market Outlook). For context, utilities in the United States purchased 55.9 million pounds U₃O₈ in 2024 (Source: United States Energy Information Administration, September 30, 2025 - Uranium Marketing Annual Report). The current gap is being filled with secondary market sources, including finite inventory that has been declining and is projected to decline further in coming years. Secondary supply is also expected to be further reduced with western enrichers, reversing operations from underfeeding to overfeeding that requires more uranium to increase the production of enrichment services. As secondary supplies continue to diminish, and as existing mines deplete resources, new production will be needed to meet future demand. The timeline for many new mining projects can be 10 to 20 years and will require prices high enough to stimulate new mining investments.

Since 2022, uranium supply has become more complicated due to Russia's invasion of Ukraine with its State Atomic Energy Corporation, Rosatom, being a significant supplier of nuclear fuel around the globe. Economic sanctions, transportation restrictions and United States legislation banning the importation of Russian nuclear fuel, and the European Union's goals to reduce and eventually eliminate its dependence on Russian fuel, is causing a fundamental change to the nuclear fuel markets. As a result of the instability and assurance of supply risks, United States and European utilities are shifting supply focus to areas of low geopolitical risk.

The United States Presidential Executive Order "Establishing The National Energy Dominance Council" noted that one of its objectives was to "reduce dependency on foreign imports" for the United States' "national security" and recognized uranium as an "amazing national asset" (Source: The White House News & Update, February 14, 2025). As of November 7, 2025, Uranium was added back into the U.S. Geological Survey list of Critical Minerals making it also subject to the Section 232 Investigation on Critical Minerals that was already underway. On January 14, 2026, Presidential Proclamation 11001was issued - Adjusting Imports of Processed Critical Minerals and their Derivative Products ("PCMDPs") into the United States. The Proclamation directs the U.S. Trade Representative and Department of Commerce to negotiate agreements with trading partners to secure supply chains and address import volumes. The Proclamation addresses the Section 232 investigation and states: "the Secretary recommended a range of actions, including actions to adjust the imports of PCMDPs so that such imports will not threaten to impair the national security". While specific remedies are not yet defined, in the event agreements are not reached or are ineffective by July 13, 2026, the actions could potentially lead to resumption of strategic uranium reserve purchases, establishment of import price floors or other remedies.

On the demand side, the global nuclear energy industry continues robust growth, with 70 new reactors connected to the grid in 2015 through 2025 and with another 74 reactors under construction. In 2025, construction started for seven new reactors and seven new reactors were connected to the grid while seven reactors were permanently shut down (Source: International Atomic Energy Association Power Reactor Information System - February 16, 2026). Total nuclear generating capacity for the world's 437 operable reactors stands at 399 gigawatts (Source: World Nuclear Association - February 16, 2026). In December 2025, the World Nuclear Association reported 33 countries had pledged to at least triple their nuclear capacity by 2050, further supporting additional growth for the nuclear industry and uranium demand. In addition, over 140 nuclear industry companies, 16 of the world's largest banks, like Citibank, Morgan Stanley and Goldman Sachs, and at least 15 large energy users, such as Microsoft, Amazon and Google, have all pledged to support this goal in their investments and commercial activities.

Additionally, there is positive momentum from the utility industry as it returns to a longer-term contracting cycle to replace expiring contracts. It is estimated that cumulative uncommitted demand through 2035 is more than 870 million pounds U₃O₈ (Source: UxC Uranium Market Overview Q4 2025). This utility demand, together with potential demand from financial entities, government programs and the overall increase in interest in nuclear energy as a source for growing electricity demand from artificial intelligence and data center applications, are continuing to add positive tailwinds to the strong fundamentals in the uranium market.

Seasonality

The timing of our uranium concentrate sales is dependent upon factors such as extraction results from our mining activities, cash requirements, contractual requirements and perception of the uranium market. As a result, our sales are neither tied to nor dependent upon any particular season. In addition, our ability to conduct exploration on our Canadian projects can be limited in the spring and fall seasons when access to lakes is limited by thin and or unstable ice.

Results of Operations

During the three and six months ended January 31, 2026, we recorded revenue of $20.20 million and gross profit of $10.03 million, related to sales of purchased uranium inventory. For the three and six months ended January 31, 2025, we recorded revenue of $49.75 million and $66.84 million, respectively, and gross profit of $18.23 million and $24.48 million, respectively, all of which were related to sales of purchased uranium inventory.

For the three and six months ended January 31, 2026, we recorded a net loss of $13.94 million ($0.03 per share) and $24.28 million ($0.05 per share), respectively, and loss from operations of $23.56 million and $53.39 million, respectively. During the three and six months ended January 31, 2025, we recorded a net loss of $10.23 million ($0.02 per share) and $30.39 million ($0.07 per share), respectively, and loss from operations of $3.63 million and $16.84 million, respectively.

During the six months ended January 31, 2026, we continued ramping up mining activities at our Christensen Ranch Mine, where 114,355 pounds of precipitated uranium and dried and drummed U₃O₈ were produced. We expect the ramp-up phase will continue while new production areas are being constructed in Fiscal 2026. At our Burke Hollow Project, final construction milestones were completed and the operations team is preparing for startup while the state regulator finishes their review of the completion report for the waste disposal well. In parallel, we continued to advance our Roughrider Project with resource expansions and accelerated the development program at our Ludeman Project. In addition, drilling and engineering for mill refurbishment of our Sweetwater Project have been initiated. The rest of our uranium projects are expected to remain in a state of operational readiness and the relevant expenditures, which are directly related to regulatory/mine permit compliance, lease maintenance obligations and maintaining a necessary labor force, are being charged to our consolidated statement of operations.

Sales Revenue and Costs

The table below provides a breakdown of our sales revenue and cost of sales:

		Three Months Ended January 31,								Six Months Ended January 31,
		2026				2025				2026				2025
Sales of purchased uranium inventory		$	20,200			$	49,750			$	20,200			$	66,837
Cost of purchased uranium inventory		$	(10,172	)		$	(31,524	)		$	(10,172	)		$	(42,360	)
Gross profit		$	10,028			$	18,226			$	10,028			$	24,477

Variations in sales of purchased uranium inventory are dependent on our cash position, prevailing market prices and the liquidity of the uranium market.

Operating Costs

Mineral Property Expenditures

Mineral property expenditures primarily consisted of costs relating to permitting and land payments, mine site services and maintenance, exploration and development, pre-extraction activities and other non-extraction related activities on our mineral projects.

The following table provides the nature of mineral property expenditures for the periods indicated:

		Three Months Ended January 31,								Six Months Ended January 31,
		2026				2025				2026				2025
Permitting and land payments		$	2,709			$	1,556			$	4,065			$	3,095
Extraction readiness and mine site maintenance			2,359				4,180				4,762				6,556
Exploration			4,323				923				8,040				5,840
Development			14,289				7,584				27,733				12,266
Total		$	23,680			$	14,243			$	44,600			$	27,757

During the three and six months ended January 31, 2026, exploration expenditures, such as drilling and preliminary economic assessments, were primarily spent on the following projects:

●

Burke Hollow Project: $0.52 million and $1.70 million (January 31, 2025: $0.18 million and $1.48 million), respectively; and

●

Roughrider Project: $3.80 million and $4.81 million (January 31, 2025: $0.33 million and $3.22 million), respectively.

During the three and six months ended January 31, 2026, development expenditures were primarily spent on the following projects:

●

Burke Hollow Project: $3.80 million and $8.63 million (January 31, 2025: $2.75 million and $4.59 million), respectively;

●

Christensen Ranch Mine: $9.54 million and $17.96 million (January 31, 2025: $2.40 million and $4.21 million), respectively; and

●

Ludeman Project: $0.66 million and $0.70 million (January 31, 2025: $0.64 million and $0.67 million), respectively.

During the three and six months ended January 31, 2026, mine site services and maintenance expenditures were primarily spent on optimization of our Irigaray CPP, including a full rebuild of one of two yellowcake thickeners and replacing the rake, gearbox and motor along with a full refurbishment of the calciner.

General and Administrative

General and administrative expenses were comprised of the following:

		Three Months Ended January 31,								Six Months Ended January 31,
		2026				2025				2026				2025
Salaries and management fees		$	2,016			$	1,865			$	4,613			$	3,646
Office, investor communications and travel			1,932				1,182				3,408				2,264
Rent and property tax			76				163				531				275
Insurance			317				305				659				573
Foreign exchange (gain) loss			114				(26	)			(135	)			(420	)
Professional fees			1,610				1,529				2,733				2,200
Sub-total			6,065				5,018				11,809				8,538
Stock-based compensation			2,141				1,554				3,820				3,377
Total general and administrative expenses		$	8,206			$	6,572			$	15,629			$	11,915

●

For the three and six months ended January 31, 2026, salaries and management fees increased compared to the three and six months ended January 31, 2025, which was primarily the result of hiring additional mid-level management and office personnel to support the Company's expansion and corporate-wide salary increases to adjust for inflation; and

●

For the three and six months ended January 31, 2026, office, investor communications and travel and professional fees increased compared to the three and six months ended January 31, 2025, which was primarily the result of increases in business activities and the expansion of our operations.

Income (Loss) from Equity-Accounted Investments

Income (loss) from equity-accounted investments was comprised of the following:

		Three Months Ended January 31,								Six Months Ended January 31,
		2026				2025				2026				2025
Share of income (loss)		$	210			$	(1,013	)		$	(567	)		$	(1,494	)
Gain on dilution of ownership interest			1,943				22				3,460				27
Total		$	2,153			$	(991	)		$	2,893			$	(1,467	)

During the three and six months ended January 31, 2026 and 2025, we recorded a gain on dilution of ownership interest in URC as a result of URC issuing more shares from its equity financing and exercises of warrants and/or stock options. As at January 31, 2026, we had a 12.3% equity interest in URC compared to a 13.5% equity interest as at July 31, 2025.

During the three and six months ended January 31, 2026, we recorded a share of URC's income of $0.59 million and $0.97 million (three and six months ended January 31, 2025: loss of $0.24 million and $0.30 million), and a share of loss of JCU of $0.38 million and $1.54 million (three and six months ended January 31, 2025: $0.77 million and $1.19 million), respectively.

Fair Value Gain (Loss) on Equity Securities

As at January 31, 2026, our investments in equity securities were revalued using the market values at period end, which resulted in a fair value gain of $4.06 million and $20.09 million on revaluation of equity securities for the three and six months ended January 31, 2026 (three and six months ended January 31, 2025: loss of $7.97 million and $18.32 million), respectively.

Liquidity and Capital Resources

		January 31, 2026				July 31, 2025
Cash and cash equivalents		$	486,347			$	148,930
Current assets			597,652				234,016
Current liabilities			20,806				26,433
Working capital (Current assets less Current liabilities)			576,846				207,583

As at January 31, 2026, the total estimated reclamation costs for all of our projects was $89.10 million. We have secured $61.27 million of surety bonds as an alternate source of financial assurance for the estimated costs of our reclamation obligations, of which $7.66 million is funded and held as restricted cash for collateral purposes as required by the surety. We may be required at any time to fund the remaining $53.61 million or any portion thereof for a number of reasons including, but not limited to, the following: (i) the terms of the surety bonds are amended, such as an increase in collateral requirements; (ii) we are in default with the terms of the surety bonds; (iii) the surety bonds are no longer acceptable as an alternate source of financial assurance by the regulatory authorities; or (iv) the surety encounters financial difficulties. Should any one or more of these events occur in the future, we may not have the financial resources to fund the remaining amount or any portion thereof when required to do so.

We have a history of operating losses resulting in an accumulated deficit balance since inception. We had an accumulated deficit balance of $430.84 million as at January 31, 2026. We may not achieve and maintain profitability or develop positive cash flow from our operations in the near term. During the six months ended January 31, 2026, we received net proceeds of $448.85 million (six months ended January 31, 2025: $135.29 million) from our at-the-market offerings, public offering and flow-through share private placement and from exercises of stock options. As at January 31, 2026, we had a working capital of $576.85 million.

Historically, we have been reliant primarily on equity financings from the sale of our common stock in order to fund our operations. We have yet to achieve consistent profitability or develop consistent positive cash flow from operations. Currently, we also rely on cash flows generated from the sales of our purchased uranium concentrates to fund our operations. Our reliance on equity is expected to continue for the foreseeable future, and their availability whenever such additional financing is required will be dependent on many factors beyond our control and including, but not limited to, the market price of uranium, the continuing public support of nuclear power as a viable source of electricity generation, the volatility in the global financial markets affecting our stock price and the status of the worldwide economy, any one of which may cause significant challenges in our ability to access additional financing, including access to the equity and credit markets. There is no assurance that we will be successful in securing any form of additional financing when required and on terms favorable to us.

Our operations are capital intensive and future capital expenditures are expected to be substantial. Our anticipated operations, including exploration, pre-extraction and extraction activities, however, will be dependent on and may change as a result of our financial position, the market price of uranium and other considerations, and such changes may include accelerating the pace or broadening the scope of reducing our operations. Our ability to secure adequate funding for these activities will be impacted by our operating performance, other uses of cash, the market price of uranium, the market price of our common stock and other factors which may be beyond our control. Specific examples of such factors include, but are not limited to:

●

if the market price of uranium weakens;

●

if the market price of our common stock weakens; and

●

if a nuclear incident, such as the events that occurred in Japan in March 2011, were to occur, continuing public support of nuclear power as a viable source of electrical generation may be adversely affected, which may result in significant and adverse effects on both the nuclear and uranium industries.

Our long-term success, including the recoverability of the carrying values of our assets and our ability to acquire additional uranium projects and continue with exploration, pre-extraction, extraction and mining activities on our existing uranium projects, will depend ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations by establishing ore bodies that contain commercially recoverable uranium and to develop these into profitable mining activities.

Equity Financings

At-the-Market Offerings

On November 16, 2022, we filed a Form S-3 automatic shelf registration statement under the Securities Act, which became effective upon filing, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of an undetermined dollar value of common stock, debt securities, warrants to purchase common stock or debt securities, subscription receipts for units which include common stock, debt securities, warrants or any combination thereof (the 2022 Shelf), which included an at-the-market offering agreement prospectus (the 2022 ATM Offering) covering the offering, issuance and sale of up to a maximum offering of $300 million in shares of our common stock under the 2022 Shelf.

On November 16, 2022, we also entered into an at-the-market offering agreement (the 2022 ATM Offering Agreement) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, the 2022 ATM Managers) as set forth in the 2022 ATM Offering Agreement under which we could, from time to time, sell shares of our common stock having an aggregate offering price of up to $300 million through the 2022 ATM Managers selected by us.

On December 20, 2024, we filed a prospectus supplement to our 2022 Shelf (the 2024 ATM Offering) under which we could, from time to time, sell shares of our common stock having an aggregate offering price of up to $300 million pursuant to an at-the-market offering agreement (the 2024 ATM Offering Agreement) we have with Goldman Sachs & Co. LLC and certain co-managers (collectively, the 2024 ATM Managers).

On November 14, 2025, we filed Form S-3 automatic shelf registration statement under the Securities Act, which became effective upon filing, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of an undetermined dollar value of common stock, debt securities, warrants to purchase common stock or debt securities, subscription receipts for units which include common stock, debt securities, warrants or any combination thereof (the 2025 Shelf), which included an at-the-market offering agreement prospectus (the 2025 ATM Offering) covering the offering, issuance and sale of up to a maximum offering of $600 million in shares of our common stock under the 2025 Shelf.

On November 14, 2025, we also entered into an at-the-market offering agreement (the 2025 ATM Offering Agreement) with Goldman Sachs & Co. LLC and certain co-managers (collectively, the 2025 ATM Managers). Under the 2025 ATM Offering Agreement, we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $600 million through the 2025 ATM Managers selected by us.

During the six months ended January 31, 2025, we issued 11,516,375 and 5,310,281 of the Company's common stock under the 2022 ATM Offering and the 2024 ATM Offering for gross cash proceeds of $94.40 million and $40.52 million, respectively. The total issuance costs were $2.15 million and $0.91 million, all of which were related to compensation paid to the 2022 ATM Managers and the 2024 ATM Managers, respectively.

Subsequent to January 31, 2026, we issued 869,556 of the Company's common stock under the 2025 ATM Offering for gross cash proceeds of $14.77 million. The total issuance costs were $0.30 million, all of which were related to compensation paid to the 2025 ATM Managers.

Public Offering

On October 6, 2025, we completed a public offering of 15,500,000 shares of our common stock at a price of $13.15 per share, resulting in gross proceeds of $203.83 million. On October 9, 2025, the underwriter exercised its over-allotment option to purchase an additional 2,325,000 shares of common stock at the same offering price, providing additional gross proceeds to the Company of $30.57 million. The total issuance costs were $2.79 million pursuant to the public offering and the over-allotment purchase.

Private Placement

On October 2, 2025, we completed a private placement offering of 575,000 FT Shares for gross proceeds of $8.63 million. The proceeds will be applied toward certain qualifying CEE, as defined in the Income Tax Act (Canada), at the Company's Roughrider Project located in Saskatchewan, Canada.

Operating Activities

During the six months ended January 31, 2026, net cash used in operating activities totaled $72.43 million, which was primarily related to mineral property expenditures of $44.60 million, general and administrative expenses excluding stock-based compensation of $11.81 million and changes in operating assets and liabilities. The proceeds of $20.20 million from sale of purchased uranium inventory during six months ended January 31, 2026 was subsequently collected on February 13, 2026. During the six months ended January 31, 2025, net cash used in operating activities was $20.26 million, which was primarily attributable to mineral property expenditures of $27.76 million and general and administrative expenses excluding stock-based compensation of $8.54 million, as well as changes in operating assets and liabilities, partially offset by a gross profit of $24.48 million from the sale of purchased uranium inventory.

Financing Activities

During the six months ended January 31, 2026, net cash provided by financing activities totaled $445.77 million, comprised primarily of net proceeds of $448.85 million from our 2024 and 2025 ATM Offerings, public offering and private placement of FT Shares, as well as from the exercises of stock options, partially offset by payments of $3.08 million for tax and withholdings upon settlement of equity awards on a forfeiture basis. During the six months ended January 31, 2025, net cash provided by financing activities totaled $132.65 million, comprised primarily of net proceeds of $135.29 million from our 2022 and 2024 ATM Offerings and the exercises of stock options and share purchase warrants, partially offset by payments of $2.64 million for tax and withholdings upon settlement of equity awards on a forfeiture basis.

Investing Activities

During the six months ended January 31, 2026, net cash used in investing activities totaled $37.48 million, mainly related to investment in equity securities of $36.58 million. During the six months ended January 31, 2025, net cash used in investing activities totaled $136.44 million, comprised of $177.29 million paid for the acquisition of Sweetwater assets, $10.46 million invested in equity securities, $0.54 million used for the capital contribution to JCU and $2.54 million invested in mineral properties and the purchase of equipment, partially offset by proceeds from the sale of equity securities of $54.37 million.

Stock Options

As of January 31, 2026, we had in-the-money stock options outstanding representing 3,551,087 shares at a weighted-average exercise price of $2.78 per share, issuable for gross proceeds of approximately $9.88 million should these stock options be exercised in full on a cash basis. The exercise of these stock options is at the discretion of their respective holders and, accordingly, there is no assurance that any of these stock options or warrants will be exercised in the future.

Transactions with Related Parties

Related party transactions are based on the amounts agreed to by the parties. During the six months ended January 31, 2026 and 2025, the Company did not enter into any material contracts or undertake any significant commitment or obligation with any related parties.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies

For a complete summary of all of our significant accounting policies refer to Note 2: Summary of Significant Accounting Policies of the Notes to the consolidated financial statements as presented under Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for Fiscal 2025.

For a discussion of the recently issued accounting pronouncements, refer to Note 2 of the interim condensed consolidated financial statements contained in this Quarterly Report.

Refer to "Critical Accounting Policies" under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for Fiscal 2025.

Subsequent Events

On January 12, 2026, the Company entered into a subscription agreement to purchase 896,861 Subscription Receipts of Anfield for $4.00 million. Each Subscription Receipt entitled the Company to receive, upon satisfaction of the Escrow Release Conditions on or prior to March 31, 2026, or such other later date as may be specified by the Company in writing, one common share of Anfield, without payment of additional consideration and without further action on the part of the Company. Anfield required the approval of the TSX-V and the disinterested shareholders of Anfield at a special shareholder meeting on February 27, 2026 to remove the Escrow Release Conditions associated with the subscription. Anfield received the approval by the TSX-V and its disinterested shareholders, and consequently issued 896,861 Anfield's common shares to the Company on February 27, 2026.

The Company completed the sale of purchased uranium inventory on January 30, 2026. The receivable arising from the sale was subsequently collected on February 13, 2026.

Subsequent to January 31, 2026, we issued 869,556 of the Company's common stock under the 2025 ATM Offering for gross cash proceeds of $14.77 million. The total issuance costs were $0.30 million, all of which were related to compensation paid to the 2025 ATM Managers.