Production Area Development Commences At Burke Hollow ISR Project In South Texas

CORPUS CHRISTI, TX – Uranium Energy Corp reported the restart of wellfield development and resource delineation drilling at the Company’s Burke Hollow in-situ recovery (ISR) uranium project in South Texas.  Advancing and expanding Burke Hollow’s resources strategically dovetails with UEC’s plans to participate in supplying the U.S. Uranium Reserve (UR) as outlined in the Nuclear Fuel Working Group report published by the U.S. Department of Energy (DOE). The UR is designed as a 10-year, $1.5 billion program to purchase newly mined U.S. origin uranium.

Chairman and former U.S. Energy Secretary, Spencer Abraham, said, “U.S. energy policies and bi-partisan legislative initiatives in 2020 have laid the foundation for domestic nuclear fuel to supply America’s largest source of carbon-free energy and support strategic defense priorities. By restoring the domestic nuclear fuel supply chain, with its high standards in the areas of health, safety and environment, the U.S. will reduce over-dependency on foreign sources while supporting the generation of significant baseload, carbon-free energy from American nuclear power plants.”

Secretary Abraham continued, “Initial funding of $75 million to establish the U.S. Uranium Reserve was approved in the FY 2021 bipartisan omnibus spending bill and the DOE has begun the process of developing a plan on how to implement the program. This is expected to be a competitive bid process, focused on existing fully permitted and low-cost projects.”

Amir Adnani, President and CEO, added, “UEC is positioned as the leader in U.S. low-cost, environmentally friendly and fully permitted ISR projects. Burke Hollow’s initial production area is amongst the largest uranium ISR wellfields ever developed in the 45-year history of uranium mining in South Texas. It’s a key building block in our production readiness portfolio which includes the largest U.S. resource base of fully permitted ISR projects in Texas and Wyoming. The low-impact ISR method of uranium recovery being developed at Burke Hollow is the most environmentally friendly way to mine uranium which is now responsible for approximately 50% of global production.”

In the 2021 drilling campaign, the Company will expand and complete the Production Area Authorization #1 (PAA-1) monitor well ring to include the two newly identified trends from the last campaign, resulting in a total of five fronts or trends within PAA-1. The Company estimates that approximately 45 additional exterior monitoring wells will be installed to accommodate the trend extensions, complementing the 76 monitor wells previously installed. The Company plans to drill at least 30 exploration and delineation holes to further define the five mineralized fronts in PAA-1. Additionally, all exterior and interior monitor wells will be completed in designed intervals, supporting permit requirements that include sampling and pumping tests in anticipation of commencing production activities. The project area is a 19,335-acre property located in eastern Bee County located in the South Texas Uranium Belt 50 miles to the southeast of the Company’s Hobson Processing Plant. Burke Hollow has received all four of its major permits required for uranium extraction from the Texas Commission on Environmental Quality and the Environmental Protection Agency.