Good afternoon. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Energy Fuels’ Q2 2022 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. [Operator Instructions] thank you. Mr. Chalmers, you may begin your conference.

Thank you, Michelle, and good afternoon, everyone, and it is always a pleasure to have people joining us for our Q2 call and webcast today. We are excited to discuss our Q2 achievements as well as the significant accomplishments we continue to make. And as always, we have a lot to talk about. For those who cannot join the call today, there will be replays of the presentation available for two weeks on our website, either later today or tomorrow. We continue to make extraordinary progress on many fronts. And I believe there is no question that Energy Fuels has clearly emerged as a clear leader in U.S. critical mineral production, at a time when this has never been more important. Today, I have the Q2 highlights embedded in our updated corporate presentation. But before I begin, I just want to remind people that you are controlling the slides from your own device, and I will endeavor to tell you when to advance to the next slide. I don't always get - accomplish that, but I will do my best. As Michelle mentioned, there will be questions at the end of the presentation and Dave Frydenlund, our Executive Vice President and Chief Legal Officer; as well as our new CFO, Tom Brock, which I'm very pleased to have him join us today, will be available to answer any questions I cannot can answer. So let's get going. This first slide, you guys have - most of you have seen this. And again, a picture of the White Mesa mill, which is really our flagship asset for the company and our critical mineral hub where we can produce uranium, rare earth elements, vanadium and hopefully soon, medical isotopes and do our recycling. Next slide. I may be making some forward-looking statements…

Thank you. [Operator Instructions] First question comes from Heiko Ihle of H.C. Wainwright. Please go ahead.

This is [Marcus Jenine] calling in for Heiko. There was a sentence in your release that we found intriguing stating having recently secured three long-term uranium contracts with major U.S. utilities, the company is beginning to perform the works needed to recommence production at one or more of its mine and ISR facilities, starting as soon as 2023. So I guess, just out of curiosity, how much work are you planning to do this year? Are you able to quantify your expenditures for that? And do you need a lot of labor for this? And are you having a hard time finding workers by any chance, given the current situation?

Yes. Look, we are working at probably three or four of our projects right now getting ready for production. We haven't designated which projects we are going to start up first, but we are doing quite a bit of work and looking in terms of how much are we spending. I'm just pulling the number out of my backside, but maybe up to $5 million or $6 million, $7 million, that kind of expenditure. A lot of these projects have set for a number of years, and they need some work. We have hired people to do that work. And I'm going to say, it is in the order of around 20 people, 15, 20 people to be focused on getting these projects back into production or being ready to go into production. The contracts that we have signed, again, 2023 is a start of one or two of those contracts and just sort of getting the flywheel turned up. But yes, watches space, we are planning to have at least one mine open and advancing for new production. That hasn't happened yet. But yes, there is work being done at several projects getting ready for production because we'd like to build on that contract portfolio going forward and open up several miles.

Okay. Perfect. And lastly, you have over one million pounds of vanadium left. You sold some for an average of $13.44 per pound in the first half, but then stopped giving pricing. Do you have a fixed sum where you would restart sales or is this a moving target more or less depending on the balance sheet that month? How much lead time do you need for these sales given logistics?

Yes. Look, the thing about vanadium is very slippery. And yes, we don't really have any intent to sell any vanadium at $7, $8 a pound. But to sell it, we can probably sell it in a week when the price hits the right levels. But when you look at the current price at $8, you saw a little spike and we caught - sold $7 million or $8 million of vanadium at $13. That is exactly the kind of strategy that we are trying to execute. So we will sell it when it makes sense, and we will hold it when it doesn't make sense to sell it.

Alright perfect. That is it for me. Thanks again for taking that question.

Our pleasure.

Thank you. [Operator Instructions] The next question comes from Puneet Singh of Eight Capital. Please go ahead.

Hi thanks for taking my question. I see aligning here about evaluating, installing a smaller light separation circuit. What needs to happen for you to get that going in the next 18-months to 24-months? Can you expand a little bit more on that?

Yes. Well, because we are separating in the lab at lab scale and we are also doing commercial separation of the lanthanum removal step, we have gained a lot of expertise and knowledge about that next step of separation. Now White Mesa is a solvent-extraction facility. And we have been doing solvent extraction for uranium and vanadium for four decades. So we are very comfortable with that. One of the concepts is that we could perhaps do some separations of rare earths in our existing solvent-extraction building. That is the concept. It is a very large building. We have the potential of maybe adding a second or maybe a third floor with additional upsize separation cells, SX cells, bigger than what we are using in the laboratory, but maybe smaller than what we would be using in our full-scale commercial separation facility, which we are planning on being in the order of about 10,000 tonnes of REO. So it is kind of a new idea, but it is absolutely not out of the question that we might be able to do that very quickly because we are licensed to do solvent extraction. And we are currently doing solvent extraction of rare earth, that why not look at another intermediate step. So I guess that is probably the most flavor I can give on it at the moment, but it is absolutely not on the question that in a period of 12 to 18 months that we could be taking the next step. And we think that it would be quite interesting if we do that. We haven't really decided yet 100% if we are going to do it, but we are going to definitely consider it.

Okay. I think it would be interesting just for the market to see that. But yes, thanks for that color.

Thank you. The next question comes from [Marshall Verab of BLSH Financial]. Please go ahead.

Thank you for taking my call and congratulations, Mark, the progress you are making in these various areas. I have a couple of questions. One of them, on the U.S. government's RFP for uranium, have they announced any kind of timetable for making any contract awards?

Cris Moore, who is probably on this call, I don't know if you'll jump in or not, I think it is a couple of months. Yes, go ahead.

It is two months. Yes, yes, two months. I think it was mentioned that we would expect to hear something back by September 30th or October 1st.

And would that be for deliveries this calendar year?

Yes, it would be. I believe the RFP mentioned that deliveries would have to, I believe, occur within 60-days after an award. So that would certainly get within 2022.

Yes. Okay, thank you. And then on the - you mentioned no debt, and I remember seeing - I think in the press release, there was in the financial statements, it showed some long-term debt, something like 13 million. Can you explain that, please?

Yes. Look, I think most of that is a reclamation liabilities that are not funded. I don't have the exact numbers, but about half of our reclamation liabilities, we are cash back, but then we have some bonds for other reclamation liabilities. Tom Brock, do you have anything to add to that?

No. You are exactly on point there, Mark.

So that is what it is. It is reclamation liabilities, but half of those are backed by cash or plus or minus half.

Okay. Thank you very much.

Thank you.

Thank you. There are no further questions at this time. Please continue.

Alright. Well, look, again, always our pleasure. We are reaching for the stars here. We are going big, but not reckless, as I said earlier. We do not see anything standing in the way of us expanding our business plan as we are doing now in leaps and bounds in the coming years. We have got to secure the various steps along the way. It doesn't happen easily or for free, but we are very excited where we are taking this company. And we hope to continue to provide really significant updates to the market as we advance and appreciate the fact that people that are shareholders of the company, we want to value create for our shareholders and go forward. We are also very excited about the progress that we are making with our foundation in San Juan County, our clean San Juan County Clean Energy Trust; the advancements that we are making in the local communities; the new jobs we are creating in the local communities. We are very excited about all things, Energy Fuels, and again, appreciate your support and interest in our company. Thank you very much.

Ladies and gentlemen, this does conclude the conference call for today. You may now disconnect your line and have a great day.