Uranium Energy Corp. (UEC) H.C. Wainwright & Co.

Company Update Metals and Mining April 15, 2021 Uranium Energy Corp. (UEC) Rating: Buy Heiko F. Ihle, CFA 212-356-0510 hihle@hcwresearch.com Tyler Bisset 646-975-6955 tbisset@hcwresearch.com Marcus Giannini 212-916-3978 mgiannini@hcwresearch.com Development and Resource Delineation Update; Financing Closed; Physical Uranium Purchases Fully Funded; Reiterate Buy Stock Data 04/13/2021 Price $2.88 Exchange NYSE American Price Target $5.00 52-Week High $3.67 52-Week Low $0.68 Enterprise Value (M) $593 Market Cap (M) $657 Public Market Float (M) 136.4 Shares Outstanding (M) 228.1 3 Month Avg Volume 6,921,562 Short Interest (M) 19.82 Shares Outstanding (M): pro forma $30.5M and $12.0M financing. Balance Sheet Metrics Cash (M) $73.5 Total Debt (M) $9.9 Total Cash/Share $0.32 Cash (M): pro forma for $30.5M and $12.0M financing, $28.2M received from ATM program, $2.0M from exercised stock options and warrants, and the $8.0M voluntary debt payment. Total Debt (M): pro forma for $8.0 voluntary debt payment. EPS ($) Diluted Full Year - Jul 2020A 2021E 2022E FY (0.08) (0.08) 0.02 Revenue ($M) Full Year - Jul 2020A 2021E 2022E FY 0.0 0.0 23.1 4 3 2 1 0 APR-20 AUG-20 DEC-20 APR-21 40 30 20 10 0 Vol. (mil) Price Wellfield development and resource delineation update. On April 14, Uranium Energy Corp (UEC) provided an update on the ongoing wellfield development and resource delineation drilling at its Burke Hollow in-situ recovery (ISR) uranium project in Texas. As of April 9, the company has utilized two drill rigs to complete 40 resource delineation holes, as management looks to improve the understanding of five Goliad Formation trends within PAA-1. We highlight hole 283.0-319.5, which intersected an average uranium grade of 0.163% and a 4.483 grade thickness. UEC also installed roughly 45 additional exterior monitoring wells to account for trend extensions. These wells are expected to compliment the 76 monitor wells already installed at site. Physical uranium initiative fully funded after closing of financing. On April 9, UEC announced that it closed an offering for gross proceeds of $12.0M following the issuance of 3.6M common shares at $3.30 per share. We note that the net proceeds from this funding are expected to be applied towards additional uranium purchases, as well as general working capital requirements. Following the financing, UEC now has more than $110.0M in cash, equity, and inventory holdings. Further, the company now has cash on hand to fully fund its physical uranium initiative, which currently stands at 2.105M pounds (lbs) of U.S. warehoused uranium at a weighted average price of about $30/lb, with deliveries expected between March 2021 and December 2022. We are reiterating our Buy rating on UEC and our PT of $5. Our valuation remains based on a DCF of future operations for the firm, utilizing our recently revised 7.5% discount rate. We then add an in situ value of $75.0M for UEC's Reno Creek assets, $41.5M for Alto Parana's resources, and an additional $40.0M for Paraguay and UEC's other exploration stage assets. We continue to believe that these figures remain inline with similar projects throughout our coverage universe to which we assign equal geopolitical risk factors. Near-term catalysts. Going forward, we maintain our longer-term expectation that current global developments should drive higher future uranium prices that could eventually support favorable production decisions at one or more of UEC's properties. This is especially important given ongoing wellfield development and definition drilling that should support a meaningful production ramp-up at Burke Hollow. We also highlight that Burke Hollow already maintains all four major required permits for uranium extraction. Finally, we expect the new physical uranium purchasing initiative to add incremental value through potentially higher future uranium prices, while also freeing up production capacity at its operations to support the U.S. Uranium Reserve in the future. Risks. (1) Uranium price risk; (2) operating and technical risk; (3) political risk; and (4) financial risk. For definitions and the distribution of analyst ratings, analyst certifications, and other disclosures, please refer to pages 3 - 4 of this report.