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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2015

or

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to _____

Commission File Number: 001-33706

URANIUM ENERGY CORP.
(Exact name of registrant as specified in its charter)

Nevada 98-0399476
(State or other jurisdiction of incorporation of organization) (I.R.S. Employer Identification No.)

1111 West Hastings Street, Suite 320, Vancouver, B.C. V6E 2J3
             (Address of principal executive offices) (Zip Code)

(604) 682-9775
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X]     No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [X]     No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

[  ] Large accelerated filer [X] Accelerated filer
   
[  ] Non-accelerated filer (Do not check if a smaller reporting company) [  ] Smaller reporting company


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [  ]     No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 92,529,441 shares of common stock outstanding as of June 4, 2015.

2


URANIUM ENERGY CORP.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION 4
Item 1. Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25
Item 3. Quantitative and Qualitative Disclosures About Market Risk 34
Item 4. Controls and Procedures 34
PART II – OTHER INFORMATION 35
Item 1. Legal Proceedings 35
Item 1A. Risk Factors 36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45
Item 3. Defaults Upon Senior Securities 45
Item 4. Mine Safety Disclosures 46
Item 5. Other Information 46
Item 6. Exhibits 46
SIGNATURES 47

3


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

4


URANIUM ENERGY CORP.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2015

(Unaudited)

5



URANIUM ENERGY CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 

    Notes     April 30, 2015     July 31, 2014  
                   
CURRENT ASSETS                  
   Cash and cash equivalents     $  1,423,447   $  8,839,892  
   Inventories   3     2,193,888     1,896,475  
   Prepaid expenses and deposits         585,401     726,984  
   Other current assets         15,862     19,872  
   Current portion of deferred financing costs         83,811     83,811  
          4,302,409     11,567,034  
                   
DEFERRED FINANCING COSTS         104,763     167,621  
MINERAL RIGHTS AND PROPERTIES   4     38,866,145     39,488,699  
PROPERTY, PLANT AND EQUIPMENT   5     7,380,260     8,005,337  
RECLAMATION DEPOSITS   6     1,706,025     5,678,629  
        $  52,359,602   $  64,907,320  
                   
                   
CURRENT LIABILITIES                  
   Accounts payable and accrued liabilities     $  1,574,358   $  2,088,284  
   Due to related parties   7     30,628     11,234  
   Current portion of asset retirement obligations   9     340,827     198,816  
          1,945,813     2,298,334  
                   
DEFERRED INCOME TAX LIABILITIES         684,012     711,477  
LONG-TERM DEBT   8     19,636,948     18,705,137  
ASSET RETIREMENT OBLIGATIONS   9     3,791,675     3,768,773  
          26,058,448     25,483,721  
                   
STOCKHOLDERS' EQUITY                  
   Capital stock 
             Common stock $0.001 par value: 750,000,000 shares 
             authorized, 92,434,424 shares issued and outstanding 
             (July 31, 2014 - 90,966,558)
  10     92,440     90,972  
   Additional paid-in capital         212,835,360     208,008,312  
   Accumulated deficit         (186,611,642 )   (168,662,146 )
   Accumulated other comprehensive loss         (15,004 )   (13,539 )
          26,301,154     39,423,599  
        $  52,359,602   $  64,907,320  
                   
COMMITMENTS AND CONTINGENCIES   14              
SUBSEQUENT EVENTS   3              

The accompanying notes are an integral part of these condensed consolidated financial statements

6



URANIUM ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
 

          Three Months Ended April 30,     Nine Months Ended April 30,  
    Notes     2015     2014     2015     2014  
                               

SALES

      $  -   $  -   $  -   $  -  

 

                             

COSTS AND EXPENSES

                             

   Cost of sales

        -     -     -     -  

   Inventory write-down

        -     338,101     -     730,250  

   Mineral property expenditures

  4     1,045,842     2,739,349     4,560,241     6,911,512  

   General and administrative

  7, 10     3,167,896     1,808,395     9,711,933     7,196,664  

   Depreciation, amortization and accretion

  4, 5, 9     374,082     577,045     1,440,808     1,766,005  

   Impairment loss on mineral property

        -     428,164     -     457,055  

 

        4,587,820     5,891,054     15,712,982     17,061,486  

LOSS FROM OPERATIONS

        (4,587,820 )   (5,891,054 )   (15,712,982 )   (17,061,486 )

 

                             

OTHER INCOME (EXPENSES)

                             

   Interest income

        1,640     7,317     9,646     20,647  

   Interest and finance costs

  8     (764,761 )   (535,802 )   (2,270,104 )   (2,165,337 )

   Gain (loss) on disposition of assets

        2,400     -     (498 )   (2,553 )

   Realized loss on available-for-sale securities

        (3,023 )   -     (3,023 )   -  

   Loss on fair value of variable share forward contract

        -     (288,436 )   -     (557,037 )

   Gain on settlement of asset retirement obligations

        -     10,868     -     9,831  

 

        (763,744 )   (806,053 )   (2,263,979 )   (2,694,449 )

LOSS BEFORE INCOME TAXES

        (5,351,564 )   (6,697,107 )   (17,976,961 )   (19,755,935 )

 

                             

DEFERRED INCOME TAX BENEFIT

        3,835     -     27,465     -  

NET LOSS FOR THE PERIOD

        (5,347,729 )   (6,697,107 )   (17,949,496 )   (19,755,935 )

 

                             

OTHER COMPREHENSIVE INCOME (LOSS), NET OF INCOME TAXES

        207     (7,228 )   (1,465 )   (13,555 )

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD

      $  (5,347,522 ) $  (6,704,335 ) $  (17,950,961 ) $  (19,769,490 )

 

                             

NET LOSS PER SHARE, BASIC AND DILUTED

  11   $  (0.06 ) $  (0.07 ) $  (0.20 ) $  (0.22 )

 

                             

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED

      92,034,908     89,924,411     91,683,568     88,666,564  

The accompanying notes are an integral part of these condensed consolidated financial statements

7



URANIUM ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 

          Nine Months Ended April 30,  
    Notes     2015     2014  

CASH (USED IN) PROVIDED BY:

                 

 

                 

OPERATING ACTIVITIES

                 

Net loss for the period

$       (17,949,496 ) $  (19,755,935 )

Adjustments to reconcile net loss to net cash from operating activities

                 

     Stock-based compensation

  10     4,628,544     984,841  

     Depletion, depreciation, amortization and accretion

        2,435,476     3,093,795  

     Impairment loss on mineral property

        -     457,055  

     Loss on disposition of assets

        498     2,553  

     Realized loss on available-for-sale securities

        3,023     -  

     Loss on fair value of variable share forward contract

        -     557,037  

     Gain on settlement of asset retirement obligations

        -     (9,831 )

     Deferred income tax benefit

        (27,465 )   -  

Changes in operating assets and liabilities

                 

     Inventories

        (244,045 )   (630,548 )

     Prepaid expenses and deposits

        (94,035 )   112,525  

     Other current assets

        (478 )   (8,088 )

     Accounts payable and accrued liabilities

        (513,926 )   (1,530,860 )

Settlement of asset retirement obligations

        -     (13,551 )

NET CASH FLOWS USED IN OPERATING ACTIVITIES

        (11,761,904 )   (16,741,007 )

 

                 

FINANCING ACTIVITIES

                 

     Shares issuance for cash, net of issuance costs

  10     435,590     6,562,076  

     Net proceeds from debt financing

        -     9,554,467  

     Due to related parties

  7     19,394     (868 )

NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES

        454,984     16,115,675  

 

                 

INVESTING ACTIVITIES

                 

     Investment in mineral rights and properties

  4     (73,624 )   (161,800 )

     Purchase of property, plant and equipment

        (10,905 )   (77,813 )

     Proceeds from disposition of assets

        2,400     600  

     Cash proceeds from the release of reclamation deposits

  6     5,663,158     -  

     Payment of collateral for surety bonds

  6     (1,690,208 )   -  

     Increase in reclamation deposits

        (346 )   (1,152 )

NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES

    3,890,475     (240,165 )

 

                 

NET CASH FLOWS

        (7,416,445 )   (865,497 )

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

        8,839,892     14,171,807  

CASH AND CASH EQUIVALENTS, END OF PERIOD

$       1,423,447   $  13,306,310  

 

                 

SUPPLEMENTAL CASH FLOW INFORMATION

  13              

The accompanying notes are an integral part of these condensed consolidated financial statements

8



URANIUM ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
 

                            Accumulated        
                            Other        
    Common Stock     Additional Paid-     Accumulated     Comprehensive     Stockholders'  
    Shares     Amount     in Capital     Deficit     Loss     Equity  
Balance, July 31, 2014   90,966,558   $  90,972   $  208,008,312   $ (168,662,146 ) $  (13,539 ) $  39,423,599  
Common stock                                    
       Issued for equity financing, net of issuance costs   280,045     280     175,143     -     -     175,423  
       Issued for exercise of stock options   296,548     297     24,252     -     -     24,549  
Stock-based compensation                                    
       Common stock issued for consulting services   891,273     891     1,379,388     -     -     1,380,279  
       Options issued for consulting services   -     -     721,430     -     -     721,430  
       Options issued for management fees   -     -     1,424,585     -     -     1,424,585  
       Options issued for employee benefits   -     -     1,102,250     -     -     1,102,250  
Net loss for the period   -     -     -     (17,949,496 )   -     (17,949,496 )
Other comprehensive loss   -     -     -     -     (1,465 )   (1,465 )
Balance, April 30, 2015   92,434,424   $  92,440   $  212,835,360   $ (186,611,642 ) $  (15,004 ) $  26,301,154  

The accompanying notes are an integral part of these condensed consolidated financial statements

9



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

NOTE 1: NATURE OF OPERATIONS AND GOING CONCERN

Uranium Energy Corp. was incorporated in the State of Nevada on May 16, 2003. Uranium Energy Corp. and its subsidiary companies and a controlled partnership (collectively, the “Company”) are engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates, on projects located in the United States and Paraguay.

Although planned principal operations have commenced from which significant revenues from sales of uranium concentrates were realized for the fiscal years ended July 31, 2013 (“Fiscal 2013”) and 2012 (“Fiscal 2012”), the Company has yet to achieve profitability and has had a history of operating losses and significant negative cash flow since inception. No revenue from uranium sales was realized for the nine months ended April 30, 2015 and the fiscal year ended July 31, 2014 (“Fiscal 2014”). Historically, the Company has been reliant primarily on equity financings from the sale of its common stock and debt financing in order to fund its operations, and this reliance is expected to continue for the foreseeable future. During Fiscal 2013 and 2012, the Company also relied on cash flows generated from its mining activities.

At April 30, 2015, the Company had working capital of $2.4 million including cash and cash equivalents of $1.4 million. Subsequent to April 30, 2015, the Company received gross proceeds of $3.1 million in cash from the sale of 80,000 pounds of finished goods - uranium concentrates from inventories. The Company’s continuation as a going concern is dependent upon its ability to obtain adequate additional financing which the Company has successfully secured since its inception, including those from asset divestitures. However, there is no assurance that the Company will be successful in securing any form of additional financing including further asset divestitures and accordingly, there is substantial doubt as to whether the Company’s existing cash resources and working capital are sufficient to enable the Company to continue its operations for the next twelve months. The continued operations of the Company, including the recoverability of the carrying values of its assets, are dependent ultimately on the Company’s ability to achieve and maintain profitability and positive cash flow from its operations.

These consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary in the event the Company can no longer continue as a going concern.

NOTE 2: BASIS OF PRESENTATION

The accompanying unaudited interim condensed consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required under U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation have been made. Operating results for the nine months ended April 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2015.

Exploration Stage

The Company has established the existence of mineralized materials for certain uranium projects, including the Palangana Mine. The Company has not established proven or probable reserves, as defined by the United States Securities and Exchange Commission (the “SEC”) under Industry Guide 7, through the completion of a “final” or “bankable” feasibility study for any of its uranium projects, including the Palangana Mine. Furthermore, the Company has no plans to establish proven or probable reserves for any of its uranium projects for which the Company plans on utilizing in-situ recovery (“ISR”) mining, such as the Palangana Mine. As a result, and despite the fact that the Company commenced extraction of mineralized materials at the Palangana Mine in November 2010, the Company remains in the Exploration Stage as defined under Industry Guide 7, and will continue to remain in the Exploration Stage until such time proven or probable reserves have been established.

10



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

Since the Company commenced extraction of mineralized materials at the Palangana Mine without having established proven or probable reserves, any mineralized materials established or extracted from the Palangana Mine should not in any way be associated with having established or produced from proven or probable reserves.

In accordance with U.S. GAAP, expenditures relating to the acquisition of mineral rights are initially capitalized as incurred while exploration and pre-extraction expenditures are expensed as incurred until such time the Company exits the Exploration Stage by establishing proven or probable reserves. Expenditures relating to exploration activities such as drill programs to establish mineralized materials are expensed as incurred. Expenditures relating to pre-extraction activities such as the construction of mine wellfields, ion exchange facilities and disposal wells are expensed as incurred until such time proven or probable reserves are established for that project, after which expenditures relating to mine development activities for that particular project are capitalized as incurred.

Companies in the Production Stage as defined under Industry Guide 7, having established proven and probable reserves and exited the Exploration Stage, typically capitalize expenditures relating to ongoing development activities, with corresponding depletion calculated over proven and probable reserves using the units-of-production method and allocated to future reporting periods to inventory and, as that inventory is sold, to cost of goods sold. The Company is in the Exploration Stage which has resulted in the Company reporting larger losses than if it had been in the Production Stage due to the expensing, instead of capitalization, of expenditures relating to ongoing mill and mine development activities. Additionally, there would be no corresponding amortization allocated to future reporting periods of the Company since those costs would have been expensed previously, resulting in both lower inventory costs and cost of goods sold and results of operations with higher gross profits and lower losses than if the Company had been in the Production Stage. Any capitalized costs, such as expenditures relating to the acquisition of mineral rights, are depleted over the estimated extraction life using the straight-line method. As a result, the Company’s consolidated financial statements may not be directly comparable to the financial statements of companies in the Production Stage.

Recently Issued Accounting Pronouncement

In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”), which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted.

NOTE 3: INVENTORIES

In November 2010, the Company commenced uranium extraction at its Palangana Mine and processing of uranium concentrates at its Hobson Processing Facility. The Company’s inventories consisted of the following:

    April 30, 2015     July 31, 2014  
Supplies $  17,393   $  26,631  
Work-in-progress   64,156     63,257  
Finished goods - uranium concentrates   2,112,339     1,806,587  
  $  2,193,888   $  1,896,475  

At April 30, 2015, the total non-cash component of inventory was $422,167 (July 31, 2014: $368,799). For the three and nine months ended April 30, 2015, no inventory write-down to net realizable value was recorded (three and nine months ended April 30, 2014: $338,101 and $730,250).

11



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

At April 30, 2015, we had 84,000 pounds of finished goods inventories - uranium concentrates that were available for sale. Subsequent to April 30, 2015, the Company sold 80,000 pounds of finished goods - uranium concentrates generating gross sales of $3,080,000, subject to certain royalty and overriding royalty interests.

NOTE 4: MINERAL RIGHTS AND PROPERTIES

Mineral Rights

At April 30, 2015, the Company had mineral rights in the States of Arizona, Colorado, New Mexico, Texas and Wyoming and the Republic of Paraguay. These mineral rights were acquired through staking and purchase, lease or option agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium. At April 30, 2015, annual maintenance payments of approximately $1,016,000 are required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

    April 30, 2015     July 31, 2014  
Mineral Rights and Properties, Unproven            
   Palangana Mine $  6,587,135   $  6,664,260  
   Goliad Project   8,689,127     8,689,127  
   Burke Hollow Project   1,495,750     1,495,750  
   Longhorn Project   116,870     116,870  
   Salvo Project   364,710     364,710  
   Nichols Project   154,774     154,774  
   Anderson Project   9,154,268     9,154,268  
   Workman Creek Project   1,422,008     1,372,008  
   Los Cuatros Project   257,250     257,250  
   Slick Rock Project   661,271     661,271  
   Yuty Project   11,947,144     11,947,144  
   Coronel Oviedo Project   1,133,412     1,133,412  
   Other Property Acquisitions   285,740     262,115  
    42,269,459     42,272,959  
Accumulated Depletion   (3,859,648 )   (3,454,533 )
    38,409,811     38,818,426  
             
Databases   2,405,038     2,405,038  
Accumulated Amortization   (2,113,581 )   (1,928,901 )
    291,457     476,137  
             
Land Use Agreements   390,155     390,155  
Accumulated Amortization   (225,278 )   (196,019 )
    164,877     194,136  
  $  38,866,145   $  39,488,699  

During the nine months ended April 30, 2015, the asset retirement obligations (“ARO”) of the Palangana Mine were revised due to changes in the estimated timing of restoration and reclamation of the Palangana Mine. As a result, ARO liabilities and the corresponding mineral rights and properties associated with the Palangana Mine were reduced by $77,125.

The Yuty Project located in Paraguay was advanced from exploration phase to exploitation phase upon approval from the Ministry of Public Works and Communication, the national agency that regulates mining in Paraguay.

12



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

The Company has not established proven or probable reserves, as defined by the SEC under Industry Guide 7, through the completion of a “final” or “bankable” feasibility study for any of its mineral projects. The Company has established the existence of mineralized materials for certain uranium projects, including the Palangana Mine. Since the Company commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

No revenues were generated from the sale of uranium concentrates during the nine months ended April 30, 2015 or Fiscal 2014. Historically, the Palangana Mine has been the Company’s sole source for uranium concentrates sold to generate its revenues during Fiscal 2013 and 2012, with no revenues generated prior to Fiscal 2012. The economic viability of the Company’s mining activities, including the expected duration and profitability of the Palangana Mine and of any future satellite ISR mines, such as the Goliad and Burke Hollow Projects, located within the South Texas Uranium Belt, has many risks and uncertainties. These include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct the mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. The Company’s mining activities may change as a result of any one or more of these risks and uncertainties and there is no assurance that any ore body that we extract mineralized materials from will result in profitable mining activities.

Mineral property expenditures incurred by major projects were as follows:

    Three Months Ended April 30,     Nine Months Ended April 30,  
    2015     2014     2015     2014  
Mineral Property Expenditures                        
 Palangana Mine $  500,535   $  668,307   $  1,621,391   $  1,975,766  
 Goliad Project   25,631     419,278     79,924     1,591,309  
 Burke Hollow Project   94,702     750,907     1,235,250     1,348,976  
 Longhorn Project   22,276     21,852     52,999     50,552  
 Salvo Project   16,751     4,358     39,590     5,374  
 Anderson Project   50,142     45,290     173,564     172,975  
 Workman Creek Project   -     1,440     31,300     31,651  
 Slick Rock Project   2,924     10,309     52,708     61,320  
 Yuty Project   41,274     148,248     301,035     228,997  
 Coronel Oviedo Project   132,315     457,527     428,077     601,723  
 Other Mineral Property Expenditures   159,292     211,833     544,403     842,869  
  $  1,045,842   $  2,739,349   $  4,560,241   $  6,911,512  

NOTE 5: PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

    April 30, 2015     July 31, 2014  
          Accumulated     Net Book           Accumulated     Net Book  
    Cost     Depreciation     Value     Cost     Depreciation     Value  
Hobson Processing Facility $  7,107,717   $  (729,241 ) $  6,378,476   $  7,107,717   $  (595,169 ) $  6,512,548  
Mining Equipment   2,441,417     (1,952,367 )   489,050     2,587,206     (1,678,958 )   908,248  
Logging Equipment and Vehicles   1,962,895     (1,681,803 )   281,092     1,855,451     (1,559,850 )   295,601  
Computer Equipment   617,083     (567,146 )   49,937     645,622     (551,633 )   93,989  
Furniture and Fixtures   182,801     (176,240 )   6,561     183,810     (164,003 )   19,807  
Land   175,144     -     175,144     175,144     -     175,144  
  $  12,487,057   $  (5,106,797 ) $  7,380,260   $ 12,554,950   $  (4,549,613 ) $  8,005,337  

13



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

NOTE 6: RECLAMATION DEPOSITS

Reclamation deposits include interest and non-interest bearing deposits held with external financial institutions relating to exploration, pre-extraction, extraction and processing activities in the States of Arizona, Texas and Wyoming.

Reclamation deposits consisted of the following:

    April 30, 2015     July 31, 2014  
Palangana Mine $  1,102,981   $  3,689,666  
Hobson Processing Facility   587,228     1,957,476  
Arizona   15,000     15,000  
Wyoming   816     815  
    1,706,025     5,662,957  
Interest   -     15,672  
  $  1,706,025   $  5,678,629  

In November 2014, the Company secured $5.6 million of surety bonds, subject to a 2% annual premium on the face value, as an alternate source of financial assurance for its future remediation and decommissioning activities at the Palangana Mine and Hobson Processing Facility. These surety bonds replaced an equivalent amount of reclamation deposits funded entirely through cash payments by the Company, allowing for the release of $3.9 million in cash to the Company. The remaining $1.7 million, representing 30% of the face value of the surety bonds and comprised of $1.1 million relating to the Palangana Mine and $0.6 million relating to the Hobson Processing Facility, is held as restricted cash for collateral purposes as required by the surety.

NOTE 7: DUE TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS

During the three and nine months ended April 30, 2015, the Company incurred $45,443 and $118,101 (three and nine months ended April 30, 2014: $37,176 and $110,815), respectively, in general and administrative costs paid to a company controlled by a direct family member of a director and officer. In addition, during the nine months ended April 30, 2015, the Company issued 15,000 restricted shares to this company for consulting services with a fair value of $18,150 included in general and administrative costs.

During the three and nine months ended April 30, 2014, the Company incurred $9,000 and $27,000, respectively, in consulting fees paid to a company controlled by a former director of the Company.

At April 30, 2015, amounts owed to related parties totaled $30,628 (July 31, 2014: $11,234). These amounts are unsecured, non-interest bearing and due on demand.

NOTE 8: LONG-TERM DEBT

Long-term debt consisted of the following:

    April 30, 2015     July 31, 2014  
Principal amount $  20,000,000   $  20,000,000  
Unamortized discount   (363,052 )   (1,294,863 )
Long-term debt, net of unamortized discount $  19,636,948   $  18,705,137  

For the three and nine months ended April 30, 2015, the amortization of debt discount totaled $315,309 and $931,811 (three and nine months ended April 30, 2014: $143,856 and $1,040,511), respectively, which were recorded as interest expense and included in the consolidated statements of operations.

14



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

The aggregate yearly maturities of long-term debt based on principal amounts outstanding at April 30, 2015 are as follows:

Fiscal 2015 $  -  
Fiscal 2016   1,666,667  
Fiscal 2017   18,333,333  
Total $  20,000,000  

NOTE 9: ASSET RETIREMENT OBLIGATIONS

The Company's asset retirement obligations (“ARO”) relate to site restoration for the Palangana Mine and Hobson Processing Facility.

Balance, July 31, 2014 $  3,967,589  
Revision in estimate of asset retirement obligations   (77,125 )
Accretion   242,038  
Balance, April 30, 2015   4,132,502  
Less: current portion of asset retirement obligations   (340,827 )
Long-term asset retirement obligations $  3,791,675  

    April 30, 2015     July 31, 2014  
Undiscounted amount of estimated cash flows $  6,393,712   $  6,382,549  
             
Payable in years   2.5 to 12     2.5 to 12  
Inflation rate   1.56% to 2.43%     1.56% to 2.43%  
Discount rate   5.00% to 10.50%     5.00% to 10.50%  

The undiscounted amounts of estimated cash flows for the next five fiscal years and beyond are as follows:

Fiscal 2015 $  85,207  
Fiscal 2016   340,827  
Fiscal 2017   1,195,782  
Fiscal 2018   635,932  
Fiscal 2019   -  
Remaining balance   4,135,964  
  $  6,393,712  

NOTE 10: CAPITAL STOCK

Capital Stock

At April 30, 2015, the Company’s capital stock was 750,000,000 authorized shares of common stock with a par value of $0.001 per share.

The Company previously filed a Form S-3 “Shelf” Registration Statement effective September 2, 2011 (the “2011 Shelf”) providing for the public offer and sale of certain securities of the Company from time to time, at its discretion, up to an aggregate amount of $50 million of which a total of $34.4 million was utilized through public offers and sales of shares and units. The Company filed a further registration statement effective December 31, 2013 providing for the public offer and sale of certain securities of the Company representing an additional 20%, or $3.1 million, of the then remaining $15.6 million available under the 2011 Shelf, which increased the remaining amount available under the 2011 Shelf to $18.7 million.

15



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

The Company filed a prospectus supplement to the 2011 Shelf, providing for the public offer and sale of the Company’s shares having an aggregate offering price of up to $18.7 million through one or more “at-the-market” offerings (the “ATM Offering”) pursuant to a Controlled Equity OfferingSM Sales Agreement effective December 31, 2013 between Cantor Fitzgerald & Co., as sales agent, and the Company. During the nine months ended April 30, 2015, the Company completed a public offer and sale of 280,045 shares of the Company at a price of $1.70 per share for gross proceeds of $474,788 under the ATM Offering, with transaction costs of $289,870 relating to the 2011 Shelf and ATM Offering previously included in prepaid expenses and deposits charged to additional paid-in capital as corresponding share issuance costs.

The 2011 Shelf expired on September 2, 2014. As a result, no further public offer and sale of the Company’s shares may be completed through the ATM Offering under the 2011 Shelf.

During Fiscal 2014, the Company filed a second Form S-3 “Shelf” Registration Statement effective January 10, 2014 providing for the public offer and sale of certain securities of the Company from time to time, at its discretion, up to an aggregate offering of $100 million.

Share Transactions

Period / Description   Common     Value per Share     Issuance  
    Shares Issued     Low     High     Value  
Balance, July 31, 2014   90,966,558                    
     Equity Financing   280,045   $  1.70   $  1.70   $  175,423  
     Consulting Services   254,171     1.07     1.63     330,330  
     Options Exercised   28,937     0.33     0.33     9,550  
Balance, October 31, 2014   91,529,711                    
     Consulting Services   309,898     1.09     1.90     547,095  
     Options Exercised (1)   52,011     0.33     0.45     10,999  
Balance, January 31, 2015   91,891,620                    
     Consulting Services   327,204     1.40     2.40     502,854  
     Options Exercised (2)   215,600     0.33     1.32     4,000  
Balance, April 30, 2015   92,434,424                    

(1)

Options to purchase 25,000 shares were exercised on a cashless basis resulting in the issuance of a net 18,679 shares; and

   
(2)

Options to purchase 492,500 shares were exercised on a cashless basis resulting in the issuance of a net 203,479 shares.

Share Purchase Warrants

A summary of share purchase warrants outstanding and exercisable at April 30, 2015 is presented below:

  Weighted     Number of Warrants
Outstanding
            Weighted Average  
  Average         Expiry Date     Remaining Contractual  
  Exercise Price               Life (Years)  
$  1.00        500,000     March 1, 2016     0.84  
  1.95          50,000     June 3, 2016     1.10  
  2.50     2,600,000     July 30, 2018     3.25  
  2.60     1,859,524     October 23, 2016     1.48  
$  2.38     5,009,524           2.33  

16



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

Stock Options

At April 30, 2015, the Company had one stock option plan, the 2014 Stock Incentive Plan (the “2014 Plan”). The 2014 Plan provides for 7,500,000 shares of the Company that may be issued pursuant to awards that may be granted and an additional 7,958,941 shares of the Company that may be issued pursuant to stock options previously granted under the Company’s prior 2013 Stock Incentive Plan. The 2014 Plan supersedes and replaces the Company’s prior 2013 Stock Incentive Plan, which superseded and replaced the Company’s prior 2009 and 2006 Stock Option Plans, such that no further shares are issuable under these prior plans.

In September 2014, the Company granted stock options under the 2014 Plan to the Company’s directors, officers, employees and consultants to purchase a total of 7,540,000 shares of the Company exercisable at a price of $1.32 per share over a five-year term. These stock options are subject to an 18-month vesting provision whereby at the end of each of the first three, six, 12 and 18 months after the grant date, 25% of the total stock option grant becomes exercisable.

These stock options have a five-year contractual term, which is significantly different from the 10-year contractual term generally applicable to stock options previously granted by the Company. Since no relevant historical information was available to provide a reasonable basis in estimating the expected life, the Company adopted the simplified method, being the mid-point of the average vesting date and the end of the contractual term, to estimate the expected life for these stock options.

A summary of stock options granted by the Company during the nine months ended April 30, 2015, including corresponding grant date fair values and assumptions using the Black Scholes option pricing model, is presented below:

    Options     Exercise     Term           Expected     Risk-Free     Dividend     Expected  
Date   Issued     Price     (Years)     Fair Value     Life (Years)     Interest Rate     Yield     Volatility  
September 3, 2014   7,540,000   $  1.32     5   $  3,750,388     2.90     0.94%     0.00%     56.28%  
January 19, 2015   50,000     1.20     5     25,430     2.90     0.77%     0.00%     64.54%  
February 10, 2015   50,000     1.31     5     28,714     2.90     1.01%     0.00%     66.72%  
Total   7,640,000               $ 3,804,532                          

In December 2014, the Company cancelled certain stock options previously granted to the Company’s directors, officers, employees and consultants to purchase a total of 4,294,000 shares of the Company exercisable at prices ranging from $2.25 to $5.65 per share with original contractual terms of ten years.

17



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

A continuity schedule of outstanding stock options for the underlying common shares for the nine months ended April 30, 2015 is presented below:

    Number of Stock
Options
  Weighted Average
Exercise Price
        Weighted Average  
        Remaining Contractual  
        Term (Years)  
Balance, July 31, 2014   7,987,214   $ 2.10     4.97  
     Issued   7,540,000     1.32     4.84  
     Exercised   (28,937 )   0.33     1.28  
     Forfeited   (58,750 )   2.82     7.26  
Balance, October 31, 2014   15,439,527     1.72     4.78  
     Issued   50,000     1.20     4.97  
     Exercised   (58,332 )   0.38     1.45  
     Expired   (487 )   5.13     -  
     Forfeited   (67,500 )   2.25     5.28  
     Cancelled   (4,294,000 )   2.59     5.59  
Balance, January 31, 2015   11,069,208     1.39     4.16  
     Issued   50,000     1.31     4.78  
     Exercised   (504,621 )   1.29     4.28  
Balance, April 30, 2015   10,614,587   $ 1.39     3.90  

At April 30, 2015, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was estimated at $13,568,356 (vested: $8,641,756 and unvested: $4,926,600).

At April 30, 2015, unrecognized stock-based compensation expense related to the unvested portion of stock options granted under the Company’s 2014 Plan totaled $1,139,756 to be recognized over the next 0.85 years.

A summary of stock options outstanding and exercisable at April 30, 2015 is presented below:

    Options Outstanding     Options Exercisable  
    Outstanding at
April 30, 2015
      Weighted       Exercisable at
April 30, 2015
      Weighted  
Range of Exercise Prices         Average Exercise         Average Exercise  
          Price           Price  
$0.33 to $0.70   1,901,801   $  0.41     1,901,801   $  0.41  
$0.71 to $2.45   7,745,000     1.39     3,900,000     1.46  
$2.46 to $5.90   967,786     3.33     967,786     3.33  
    10,614,587   $  1.39     6,769,587   $  1.43  

18



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

Stock-Based Compensation

A summary of stock-based compensation expense is presented below:

    Three Months Ended April 30,     Nine Months Ended April 30,  
    2015     2014     2015     2014  
Stock-Based Consulting Fees                        
     Common stock issued for consulting services $  502,854   $  216,640   $  1,380,279   $  773,558  
     Options issued to consultants   346,995     (9,189 )   721,430     64,529  
    849,849     207,451     2,101,709     838,087  
Stock-Based Management Fees                        
     Options issued to management   263,306     -     1,424,585     55,000  
    263,306     -     1,424,585     55,000  
Stock-Based Wages and Benefits                        
     Options issued to employees   204,723     26,018     1,102,250     94,591  
    204,723     26,018     1,102,250     94,591  
                         
Stock-based compensation charged to inventory   -     (1,596 )   -     (4,239 )
  $  1,317,878   $  231,873   $  4,628,544   $  983,439  

NOTE 11: LOSS PER SHARE

The following table reconciles weighted average number of shares used in the computation of basic and diluted loss per share:

    Three Months Ended April 30,     Nine Months Ended April 30,  
    2015     2014     2015     2014  
Numerator                        
Net Loss for the Period $  (5,347,729 ) $  (6,697,107 ) $  (17,949,496 ) $  (19,755,935 )
                         
Denominator                        
Basic Weighted Average Number of Shares   92,034,908     89,924,411     91,683,568     88,666,564  
Dilutive Stock Options and Warrants   -     -     -     -  
Diluted Weighted Average Number of Shares   92,034,908     89,924,411     91,683,568     88,666,564  
                         
Net Loss per Share, Basic and Diluted $  (0.06 ) $  (0.07 ) $  (0.20 ) $  (0.22 )

For the three months and nine months ended April 30, 2015 and 2014, all outstanding stock options and share purchase warrants were excluded from the computation of diluted loss per share since the Company reported net losses for those periods and their effects would be anti-dilutive.

19



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

NOTE 12: SEGMENTED INFORMATION

The Company currently operates in a single reportable segment and is focused on uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates.

At April 30, 2015, long-term assets located in the U.S. totaled $34,950,537 or 73% of the Company’s total long-term assets of $48,057,193.

The table below provides a breakdown of the Company’s long-term assets by geographic segments:

    April 30, 2015  
    United States     Canada     Paraguay     Total  
Balance Sheet Items   Texas     Arizona     Other States              
Deferred Financing Costs $  104,763   $  -   $  -   $  -   $  -   $  104,763  
Mineral Rights and Properties   14,038,001     10,841,861     905,728     -     13,080,555     38,866,145  
Property, Plant and Equipment   7,354,159     -     -     9,427     16,674     7,380,260  
Reclamation Deposits   1,690,209     15,000     816     -     -     1,706,025  
Total Long-term Assets $ 23,187,132   $ 10,856,861   $  906,544   $  9,427   $ 13,097,229   $ 48,057,193  

    July 31, 2014  
    United States Canada Paraguay Total  
Balance Sheet Items   Texas     Arizona     Other States              
Deferred Financing Costs $  167,621   $  -   $  -   $  -   $  -   $  167,621  
Mineral Rights and Properties   14,732,677     10,791,861     883,606     -     13,080,555     39,488,699  
Property, Plant and Equipment   7,966,833     -     465     12,960     25,079     8,005,337  
Reclamation Deposits   5,662,814     15,000     815     -     -     5,678,629  
Total Long-term Assets $ 28,529,945   $ 10,806,861   $  884,886   $  12,960   $ 13,105,634   $ 53,340,286  

20



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

The tables below provide a breakdown of the Company’s operating results by geographic segments. All intercompany transactions have been eliminated.

    Three Months Ended April 30, 2015  
Statement of Operations   United States     Canada     Paraguay     Total  
    Texas     Arizona     Other States                
Sales $  -   $  -   $  -   $  -   $  -   $  -  
                                     
Costs and Expenses:                                    
   Cost of sales   -     -     -     -     -     -  
   Inventory write-down   -     -     -     -     -     -  
   Mineral property expenditures   786,935     50,119     35,199     -     173,589     1,045,842  
   General and administrative   2,400,403     51,889     4,368     707,481     3,755     3,167,896  
   Depreciation, amortization and accretion   368,448     -     501     2,741     2,392     374,082  
   Impairment loss on mineral property   -     -     -     -     -     -  
    3,555,786     102,008     40,068     710,222     179,736     4,587,820  
Loss from operations   (3,555,786 )   (102,008 )   (40,068 )   (710,222 )   (179,736 )   (4,587,820 )
                                     
Other income (expenses)   (759,273 )   (4,640 )   -     -     169     (763,744 )
Loss before income taxes $  (4,315,059 ) $  (106,648 ) $  (40,068 ) $  (710,222 ) $  (179,567 ) $  (5,351,564 )

    Three Months Ended April 30, 2014  
Statement of Operations   United States     Canada     Paraguay     Total  
    Texas     Arizona     Other States              
Sales $  -   $  -   $  -   $  -   $  -   $  -  
                                     
Costs and Expenses:                                    
   Cost of sales   -     -     -     -     -     -  
   Inventory write-down   338,101     -     -     -     -     338,101  
   Mineral property expenditures   2,060,823     49,218     23,533     -     605,775     2,739,349  
   General and administrative   993,390     37,501     12,751     776,584     (11,831 )   1,808,395  
   Depreciation, amortization and accretion   568,521     -     780     4,713     3,031     577,045  
   Impairment loss on mineral property   428,164     -     -     -     -     428,164  
    4,388,999     86,719     37,064     781,297     596,975     5,891,054  
Loss from operations   (4,388,999 )   (86,719 )   (37,064 )   (781,297 )   (596,975 )   (5,891,054 )
                                     
Other income (expenses)   (801,086 )   (5,020 )   -     36     17     (806,053 )
Loss before income taxes $  (5,190,085 ) $  (91,739 ) $  (37,064 ) $  (781,261 ) $  (596,958 ) $  (6,697,107 )

21



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

    Nine Months Ended April 30, 2015  
Statement of Operations   United States     Canada     Paraguay     Total  
    Texas     Arizona     Other States                
Sales $  -   $  -   $  -   $  -   $  -   $  -  
                                     
Costs and Expenses:                                    
   Cost of sales   -     -     -     -     -     -  
   Inventory write-down   -     -     -     -     -     -  
   Mineral property expenditures   3,431,826     207,586     191,718     -     729,111     4,560,241  
   General and administrative   7,456,500     148,766     18,393     2,069,664     18,610     9,711,933  
   Depreciation, amortization and accretion   1,420,996     -     1,968     9,238     8,606     1,440,808  
   Impairment loss on mineral property   -     -     -     -     -     -  
    12,309,322     356,352     212,079     2,078,902     756,327     15,712,982  
Loss from operations   (12,309,322 )   (356,352 )   (212,079 )   (2,078,902 )   (756,327 )   (15,712,982 )
                                     
Other income (expenses)   (2,249,325 )   (15,018 )   -     (120 )   484     (2,263,979 )
Loss before income taxes $  (14,558,647 ) $  (371,370 ) $  (212,079 ) $  (2,079,022 ) $  (755,843 ) $  (17,976,961 )

    Nine Months Ended April 30, 2014  
Statement of Operations   United States     Canada     Paraguay     Total  
    Texas     Arizona     Other States              
Sales $  -   $  -   $  -   $  -   $  -   $  -  
                                     
Costs and Expenses:                                    
   Cost of sales   -     -     -     -     -     -  
   Inventory write-down   730,250     -     -     -     -     730,250  
   Mineral property expenditures   5,676,286     230,749     173,757     -     830,720     6,911,512  
   General and administrative   4,165,060     182,147     77,714     2,766,689     5,054     7,196,664  
   Depreciation, amortization and accretion   1,729,640     758     6,690     19,944     8,973     1,766,005  
   Impairment loss on mineral property   428,164     -     28,891     -     -     457,055  
    12,729,400     413,654     287,052     2,786,633     844,747     17,061,486  
Loss from operations   (12,729,400 )   (413,654 )   (287,052 )   (2,786,633 )   (844,747 )   (17,061,486 )
                                     
Other income (expenses)   (2,676,947 )   (15,398 )   -     (2,154 )   50     (2,694,449 )
Loss before income taxes $  (15,406,347 ) $  (429,052 ) $  (287,052 ) $  (2,788,787 ) $  (844,697 ) $  (19,755,935 )

NOTE 13: SUPPLEMENTAL CASH FLOW INFORMATION

During the nine months ended April 30, 2015, the Company issued 891,273 restricted shares with a fair value of $1,380,279 for consulting services.

NOTE 14: COMMITMENTS AND CONTINGENCIES

The Company is renting or leasing various office or storage space located in the United States, Canada and Paraguay with total monthly payments of $19,547. Office lease agreements expire between July 2015 to April 2016 for the United States and Canada.

The aggregate minimum payments over the next five fiscal years are as follows:

Fiscal 2015 $  59,094  
Fiscal 2016   47,952  
  $  107,046  

The Company is committed to pay its key executives a total of $747,000 per year for management services.

The Company is subject to ordinary routine litigation incidental to its business. Except as disclosed below, the Company is not aware of any other material legal proceedings pending or that have been threatened against the Company.

22



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

On or about March 9, 2011, the Texas Commission on Environmental Quality (the “TCEQ”) granted the Company’s applications for a Class III Injection Well Permit, Production Area Authorization and Aquifer Exemption for its Goliad Project. On or about December 4, 2012, the U.S. Environmental Protection Agency (the “EPA”) concurred with the TCEQ issuance of the Aquifer Exemption permit (the “AE”). With the receipt of this concurrence, the final authorization required for uranium extraction, the Goliad Project achieved fully-permitted status. On or about May 24, 2011, a group of petitioners, inclusive of Goliad County, appealed the TCEQ action to the 250th District Court in Travis County, Texas. A motion filed by the Company to intervene in this matter was granted. The petitioners’ appeal lay dormant until on or about June 14, 2013, when the petitioners filed their initial brief in support of their position. On or about January 18, 2013, a different group of petitioners, exclusive of Goliad County, filed a petition for review with the Court of Appeals for the Fifth Circuit in the United States (the “Fifth Circuit”) to appeal the EPA’s decision. On or about March 5, 2013, a motion filed by the Company to intervene in this matter was granted. The parties attempted to resolve both appeals and, to facilitate discussions and to avoid further legal costs, the parties jointly agreed, through mediation which was initially conducted through the Fifth Circuit on or about August 8, 2013, to abate the proceedings in the State District Court. On or about August 21, 2013, the State District Court agreed to abate the proceedings. The EPA subsequently filed a motion to remand without vacatur with the Fifth Circuit wherein the EPA's stated purpose was to elicit additional public input and further explain its rationale for the approval. In requesting the remand without vacatur, which would allow the AE to remain in place during the review period, the EPA denied the existence of legal error and stated that it was unaware of any additional information that would merit reversal of the AE. The Company and the TCEQ filed a request to the Fifth Circuit for the motion to remand without vacatur, if granted, to be limited to a 60-day review period. On December 9, 2013, by way of a procedural order from a three-judge panel of the Fifth Circuit, the Court granted the remand without vacatur and initially limited the review period to 60 days. In March of 2014, at the EPA’s request, the Fifth Circuit extended the EPA’s time period for review and additionally, during that same period, the Company conducted a joint groundwater survey of the site, the result of which reaffirmed the Company’s previously filed groundwater direction studies. On or about June 17, 2014, the EPA reaffirmed its earlier decision to uphold the granting of the Company’s existing AE, with the exception of a northwestern portion containing less than 10% of the uranium resource which was withdrawn, but not denied, from the AE area until additional information is provided in the normal course of mine development. On or about September 9, 2014, the petitioners filed a status report with the State District Court which included a request to remove the stay agreed to in August 2013 and to set a briefing schedule (the “Status Report”). In that Status Report, the petitioners also stated that they had decided not to pursue their appeal at the Fifth Circuit. The Company continues to believe that the pending appeal is without merit and is continuing forward as planned towards uranium extraction at its fully-permitted Goliad Project.

On or about April 3, 2012, the Company received notification of a lawsuit filed in the State of Arizona, in the Superior Court for the County of Yavapai, by certain petitioners (the “Plaintiffs”) against a group of defendants, including the Company and former management and board members of Concentric. The lawsuit asserts certain claims relating to the Plaintiffs’ equity investments in Concentric, including allegations that the former management and board members of Concentric engaged in various wrongful acts prior to and/or in conjunction with the merger of Concentric. The lawsuit originally further alleged that the Company was contractually liable for liquidated damages arising from a pre-merger transaction which the Company previously acknowledged and recorded as an accrued liability, and which portion of the lawsuit was settled in full by a cash payment of $149,194 to the Plaintiffs and subsequently dismissed. The court dismissed several other claims set forth in the Plaintiffs’ initial complaint, but granted the Plaintiffs leave to file an amended complaint. The court denied a subsequent motion to dismiss the amended complaint, finding that the pleading met the minimal pleading requirements under the applicable procedural rules. In October 2013, the Company filed a formal response denying liability for any of the Plaintiffs’ remaining claims and is vigorously defending against any and all remaining claims asserted under this lawsuit. The parties have exchanged disclosure statements and formal discovery has been completed. A trial date has been set for April 2016. The Company continues to believe that this lawsuit is without merit, and intends to file a dispositive motion prior to November 20, 2015.

23



URANIUM ENERGY CORP.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2015
(Unaudited)
 

On June 1, 2015, the Company received notice that Westminster Securities Corporation filed a suit in the United States District Court for the Southern District of New York, alleging a breach of contract relating to certain four-year warrants issued by Concentric in December 2008. Although the Concentric warrants expired by their terms on December 31, 2012, Westminster bases its claim upon transactions allegedly occurring prior to UEC’s merger with Concentric. The Company believes that this claim lacks merit and intends to vigorously defend the same.

At any given time, the Company may enter into negotiations to settle outstanding legal proceedings and any resulting accruals will be estimated based on the relevant facts and circumstances applicable at that time. The Company does not expect that such settlements will, individually or in the aggregate, have a material effect on its financial position, results of operations or cash flows.

24



Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following management’s discussion and analysis of financial condition and results of operations of the Company (“MD&A”) contains 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 the reports and other documents we have filed with or furnished to the SEC, including, without limitation, this Quarterly Report on Form 10-Q for the three and nine months ended April 30, 2015 and the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014 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 document. Refer to “Item 1A. Risk Factors” under Part II - Other Information.

Introduction

This MD&A is focused on material changes in our financial condition from July 31, 2014, our most recently completed year-end, to April 30, 2015 and our results of operations for the three and nine months ended April 30, 2015 and 2014, and should be read in conjunction with the MD&A contained in our Form 10-K Annual Report for the fiscal year ended July 31, 2014.

Business

We operate in a single reportable segment and since 2004, as more fully described in our Form 10-K Annual Report for the fiscal year ended July 31, 2014, we have been engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing, on uranium projects located in the United States and Paraguay.

We utilize in-situ recovery (“ISR”) mining where possible which we believe, when compared to conventional open pit or underground mining, requires lower capital and operating expenditures with a shorter lead time to extraction and a reduced impact on the environment. We have one uranium mine located in the State of Texas, the Palangana Mine, which utilizes ISR mining and commenced extraction of uranium concentrates (“U3O8”), or yellowcake, in November 2010. We have one uranium processing facility or mill located in the State of Texas, the Hobson Processing Facility, which processes material from the Palangana Mine into drums of U3O8, our only sales product and source of revenue, for shipping to a third-party storage and sales facility. At April 30, 2015, we had no uranium supply or “off-take” agreements in place.

Our fully-licensed and 100%-owned Hobson Processing Facility 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 up to a total of two million pounds of U3O8 annually and is licensed to process up to one 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 Goliad and Burke Hollow Projects, located within the South Texas Uranium Belt (the “spokes”).

We also hold certain mineral rights in various stages in the States of Arizona, Colorado, New Mexico, Texas and Wyoming 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. We do not expect, however, to utilize ISR mining for all of our mineral rights in which case we would expect to rely on conventional open pit and/or underground mining techniques.

Our operating and strategic framework is 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.

On September 5, 2013, we announced a strategic plan to align our operations to adapt to the existing uranium market in a challenging post-Fukushima environment, most notably the uranium spot price being at historical lows. Since then, uranium extraction at the Palangana Mine has operated at a reduced pace, including the deferral of any further pre-extraction expenditures, to maintain operational readiness in anticipation of a recovery in uranium spot prices. Pre-extraction activities at other PAAs of the Palangana Mine and at the Goliad Project have continued, as well as further exploration and permitting activities completed at the Burke Hollow Project.

25


During the nine months ended April 30, 2015:

permitting activities continued to advance at other PAAs of the Palangana Mine;

permitting activities continued and a drill program comprised of 43 exploration holes totaling 22,295 feet was completed at the Burke Hollow Project located in Texas;

a Preliminary Economic Assessment dated July 6, 2014 prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, (“NI 43- 101”) was filed for the Anderson Project located in Arizona;

an updated Technical Report dated October 6, 2014 prepared in accordance with NI 43-101 was filed for the Burke Hollow Project;

the Yuty Project located in Paraguay was advanced from exploration phase to exploitation phase upon approval from the Ministry of Public Works and Communication, the national agency that regulates mining in Paraguay;

a public offer and sale of 280,045 shares of the Company was completed at a price of $1.70 per share for gross proceeds of $474,788 under the ATM Offering;

$5.6 million of surety bonds were secured, subject to a 2% annual premium on the face value, which replaced an equivalent amount of reclamation deposits related to future remediation and decommissioning activities at the Palangana Mine and Hobson Processing Facility, and resulted in the release of $3.9 million in cash and cash equivalents to the Company; and

Scott Melbye was appointed Executive Vice President and Craig Wall was appointed Vice President of Environmental, Health and Safety.

Mineral Rights and Properties

The following is a summary of significant activities by project for the nine months ended April 30, 2015:

Texas: Palangana Mine

During the nine months ended April 30, 2015, we continued with our strategic plan for reduced operations initiated in Fiscal 2014. Since then, uranium extraction at the Palangana Mine has operated at a reduced pace, including the deferral of any further pre-extraction expenditures, to maintain operational readiness in anticipation of a recovery in uranium spot prices.

The Mine Area Permit to include additional PAAs at the Palangana Mine was approved and issued by the Texas Commission on Environmental Quality (“TCEQ”). Both the PAA-4 permit and the Radioactive Material License amendment to add PAA-4 were approved and issued by the TCEQ. The Aquifer Exemption amendment to include PAA-4 was approved and issued by the TCEQ and submitted to the Environmental Protection Agency for final approval and concurrence.

Texas: Burke Hollow Project

During the nine months ended April 30, 2015, 43 exploration holes totaling 22,295 feet were drilled at the Burke Hollow Project to depths ranging from a minimum 140 feet to a maximum 1,100 feet, with an average depth of 518 feet. At April 30, 2015, a total of 526 exploration holes, including 30 monitor wells, totaling 246,400 feet have been drilled to depths ranging from a minimum 140 feet to a maximum 1,100 feet, with an average depth of 468 feet.

The Mine Area, Aquifer Exemption and Radioactive Material License applications continue to be under technical review by the TCEQ. Technical review of the two Waste Disposal Well applications was completed and two draft permits have been issued.

An updated Technical Report dated October 6, 2014 prepared in accordance with NI 43-101 was filed for the Burke Hollow Project which summarized the geology and mineralized materials resulting from the Company’s three drilling campaigns conducted between May 2012 and September 2014.

26


Arizona: Anderson Project

In April 2015, an independent consultant was retained to review the historic baseline material for the Anderson Project and to develop a gap analysis for updating the baseline work required for a mine permit submission. A Preliminary Economic Assessment dated July 6, 2014 prepared in accordance with NI 43-101 was completed and filed in September 2014.

Results of Operations

For the three and nine months ended April 30, 2015, we recorded a net loss of $5,347,729 ($0.06 per share) and $17,949,496 ($0.20 per share), respectively. Costs and expenses during the three and nine months ended April 30, 2015 were $4,587,820 and $15,712,982, respectively.

For the three and nine months ended April 30, 2014, we recorded a net loss of $6,697,107 ($0.07 per share) and $19,755,935 ($0.22 per share), respectively. Costs and expenses during the three and nine months ended April 30, 2014 were $5,891,054 and $17,061,486, respectively.

Uranium Extraction Activities

During the nine months ended April 30, 2015, we continued with our strategic plan for reduced operations initiated in Fiscal 2014. Uranium extraction at PAA-1, 2 and 3 of the Palangana Mine has continued to operate at a reduced pace and as a result, U3O8 pounds extracted from the Palangana Mine and processed at the Hobson Processing Facility have decreased significantly. During the three and nine months ended April 30, 2015, the Palangana Mine extracted 2,000 and 13,000 pounds of U3O8, respectively, while the Hobson Processing Facility processed 3,000 and 14,000 pounds of U3O8, respectively. During the three and nine months ended April 30, 2014, the Palangana Mine extracted 9,000 and 36,000 pounds of U3O8, respectively, while the Hobson Processing Facility processed 9,000 and 37,000 pounds of U3O8, respectively.

During the three and nine months ended April 30, 2015 and 2014, no revenue from sales of U3O8 was generated. Since commencing uranium extraction at the Palangana Mine in November 2010 to April 30, 2015, the Hobson Processing Facility has processed finished goods representing 574,000 pounds of U3O8, of which 490,000 pounds have been sold, resulting in a finished goods inventory balance of 84,000 pounds of U3O8 remaining as of April 30, 2015. Subsequent to April 30, 2015, the Company sold 80,000 pounds of finished goods-uranium concentrates from inventory generating gross sales of $3,080,000.

At April 30, 2015, the total value of inventories was $2,193,888, of which $2,112,339 (96%) represented the carrying value of finished goods of U3O8, $64,156 (3%) represented the carrying value of work-in-progress and $17,393 (1%) represented the carrying value of supplies. The cash component of the total carrying value of inventories was $1,771,721 and the non-cash component of the total carrying value of inventory was $422,167. For the nine months ended April 30, 2015, no inventory write-down to net realizable value was recognized.

At July 31, 2014, the total value of inventories was $1,896,475 of which $1,806,587 (96%) represented the carrying value of finished goods of U3O8, $63,257 (3%) represented the carrying value of work-in-progress and $26,631 (1%) represented the carrying value of supplies. The cash component of the total carrying value of inventories was $1,527,676 and the non-cash component of the total carrying value of inventory was $368,799. During Fiscal 2014, inventory write-downs totaling $804,060 were recognized to adjust the U3O8 inventory balances in finished goods and work-in-progress to net realizable values to reflect market prices of U3O8, less estimated royalties.

Cash and non-cash components of the total value of inventories represent non-GAAP financial measures which we believe are important in evaluating our operating results not only for management but for our investors. We use these measures to compare our performance with other mining companies and rely upon them as part of management’s decision-making process.

Costs and Expenses

For the three and nine months ended April 30, 2015, costs and expenses totaled $4,587,820 and $15,172,982, respectively, comprised of mineral property expenditures of $1,045,842 and $4,560,241, general and administrative of $3,167,896 and $9,711,933 and depreciation, amortization and accretion of $374,082 and $1,440,808. No inventory write-down or impairment loss on mineral property was recorded. During the three and nine months ended April 30, 2015, no sales of U3O8 were generated therefore no corresponding cost of sales were recorded.

27


During the three and nine months ended April 30, 2014, costs and expenses totaled $5,891,054 and $17,061,486, respectively, comprised of inventory write-down of $338,101 and $730,250, mineral property expenditures of $2,739,349 and $6,911,512, general and administrative of $1,808,395 and $7,196,664, depreciation, amortization and accretion of $577,045 and $1,766,005 and impairment loss on mineral property of $428,164 and $457,005. During the three and nine months ended April 30, 2014, no sales of U3O8 were generated therefore no corresponding cost of sales were recorded.

Mineral Property Expenditures

During the three and nine months ended April 30, 2015, mineral property expenditures totaled $1,045,842 and $4,560,241, respectively, comprised of expenditures relating to permitting, property maintenance, exploration, pre-extraction and all other non-extraction related activities on our uranium projects. Additionally, these amounts include uranium extraction expenditures directly related to maintaining operational readiness and permitting compliance of $497,846 and $1,456,206, respectively, for the Palangana Mine and Hobson Processing Facility.

During the three and nine months ended April 30, 2014, mineral property expenditures totaled $2,739,349 and $6,911,512, respectively, comprised of expenditures relating to permitting, property maintenance, exploration, pre-extraction and all other non-extraction related activities on our uranium projects. Additionally, these amounts include uranium extraction expenditures directly related to maintaining operational readiness of $725,588 and $2,006,954, respectively, for the Palangana Mine and Hobson Processing Facility.

The following table is a summary of the mineral property expenditures incurred on our uranium projects:

    Three Months Ended April 30,     Nine Months Ended April 30,  
    2015     2014     2015     2014  
Mineral Property Expenditures                        
 Palangana Mine $  500,535   $  668,307   $  1,621,391   $  1,975,766  
 Goliad Project   25,631     419,278     79,924     1,591,309  
 Burke Hollow Project   94,702     750,907     1,235,250     1,348,976  
 Longhorn Project   22,276     21,852     52,999     50,552  
 Salvo Project   16,751     4,358     39,590     5,374  
 Anderson Project   50,142     45,290     173,564     172,975  
 Workman Creek Project   -     1,440     31,300     31,651  
 Slick Rock Project   2,924     10,309     52,708     61,320  
 Yuty Project   41,274     148,248     301,035     228,997  
 Coronel Oviedo Project   132,315     457,527     428,077     601,723  
 Other Mineral Property Expenditures   159,292     211,833     544,403     842,869  
  $  1,045,842   $  2,739,349   $  4,560,241   $  6,911,512  

General and Administrative

During the three and nine months ended April 30, 2015, general and administrative expenses totaled $3,167,896 and $9,711,933 (three and nine months ended April 30, 2014: $1,808,395 and $7,196,664), respectively.

The following summary provides a discussion of the major expense categories, including salaries, management and consulting fees; office, investor relations, communications and travel; professional fees; and stock-based compensation, including analyses of the factors that caused any significant variances compared to the same period last year:

For the three and nine months ended April 30, 2015, salaries, management and consulting fees totaled $673,670 and $1,953,949 which increased by $146,116 and decreased by $794,815, respectively, compared with $527,554 and $2,748,764 for the three and nine months ended April 30, 2014, respectively. The significant decrease overall was primarily the result of no bonus payments made to certain directors, officers, employees and consultants of the Company during the nine months ended April 30, 2015;

28



For the three and nine months ended April 30, 2015, office, investor relations, communications and travel expenses totaled $800,382 and $2,222,932, respectively, which remained consistent as compared with $733,072 and $2,316,398 for the three and nine months ended April 30, 2014, respectively. We are continuing efforts to monitor and control our costs overall to reduce expenses wherever possible;

 

For the three and nine months ended April 30, 2015, professional fees totaled $375,965 and $906,508 which increased by $60,068 and decreased by $241,556, respectively, compared with $315,897 and $1,148,064 for the three and nine months ended April 30, 2014, respectively. The decrease overall was primarily the result of a decrease in professional fees relating to regulatory filings and legal proceedings; and

 

For the three and nine months ended April 30, 2015, stock-based compensation totaled $1,317,879 and $4,628,544 which increased by $1,086,007 and $3,645,106, respectively, compared with $231,872 and $983,438 for the three and nine months ended April 30, 2014, respectively. These increases were primarily the result of stock options granted to the Company’s directors, officers, employees and consultants in September 2014, as well as an increase in equity-based payments for consulting services as part of our continuing efforts to reduce cash outlay.

Depreciation, Amortization and Accretion

During the three and nine months ended April 30, 2015, depreciation, amortization and accretion totaled $374,082 and $1,440,808 which decreased by $202,963 and $325,197, respectively, compared with $577,045 and $1,766,005 for the three and nine months ended April 30, 2014, respectively. These decreases were primarily the result of extensions in the estimated useful lives relating to the Palangana Mine combined with the effects of certain equipment and property reaching full depletion and depreciation. Depreciation, amortization and accretion include depreciation and amortization of long-term assets acquired in the normal course of operations and accretion of asset retirement obligations.

Interest and Finance Costs

During the three and nine months ended April 30, 2015, interest and finance costs totaled $764,761 and $2,270,104, which increased by $228,959 and $104,767, respectively, compared with $535,802 and $2,165,337 for the three and nine months ended April 30, 2014, respectively. These increases reflect the resulting increase in interest and finance costs from the additional $10 million in funding received in March 2014 for a total of $20 million in funding received under the Amended Credit Facility.

For the three and nine months ended April 30, 2015, interest and finance costs were primarily comprised of, respectively, amortization of debt discount of $315,309 and $931,811, interest paid on long-term debt of $395,555 and $1,213,333, amortization of deferred financing costs of $20,953 and $62,858 and amortization of annual surety bond premium of $28,304 and $47,084.

For the three and nine months ended April 30, 2014, interest and finance costs were primarily comprised of, respectively, amortization of debt discount of $143,856 and $1,040,511, interest and standby fees paid on long-term debt of $350,000 and $963,333 and amortization of deferred financing costs of $36,927 and $146,095.

29


Summary of Quarterly Results

          For the Quarters Ended        
    April 30, 2015     January 31, 2015     October 31, 2014     July 31, 2014  
                         
Sales $  -   $  -   $  -   $  -  
Net loss   (5,347,729 )   (5,875,540 )   (6,726,227 )   (6,219,172 )
Total comprehensive loss   (5,347,522 )   (5,876,988 )   (6,726,451 )   (6,219,156 )
Basic and diluted loss per share   (0.06 )   (0.06 )   (0.07 )   (0.07 )
Total assets   52,359,602     55,525,074     59,838,854     64,907,320  

          For the Quarters Ended        
    April 30, 2014     January 31, 2014     October 31, 2013     July 31, 2013  
                         
Sales $  -   $  -   $  -   $  1,980,000  
Net loss   (6,697,107 )   (7,178,894 )   (5,879,934 )   (5,077,213 )
Total comprehensive loss   (6,704,335 )   (7,182,920 )   (5,882,235 )   (5,050,693 )
Basic and diluted loss per share   (0.07 )   (0.08 )   (0.07 )   (0.06 )
Total assets   70,496,960     67,320,964     73,692,104     73,250,001  

Liquidity and Capital Resources

On September 5, 2013, we announced a strategic plan to align our operations to adapt to the existing uranium market in a challenging post-Fukushima environment, most notably the uranium spot price being at historical lows. Since then, uranium extraction at the Palangana Mine has operated at a reduced pace, including the deferral of any further pre-extraction expenditures, to maintain operational readiness in anticipation of a recovery in uranium spot prices. Pre-extraction activities at other PAAs of the Palangana Mine and at the Goliad Project have continued, as well as further exploration and permitting activities completed at the Burke Hollow Project. As a result, we did not rely on cash flows generated from our mining activities during the nine months ended April 30, 2015 or Fiscal 2014 to the extent relied upon during Fiscal 2013 and 2012.

In November 2014, we secured $5.6 million of surety bonds, subject to a 2% annual premium on the face value, as an alternate source of financial assurance for future remediation and decommissioning activities at the Palangana Mine and Hobson Processing Facility. These surety bonds replaced an equivalent amount of reclamation deposits funded entirely through cash payments by the Company, allowing for the release of $3.9 million in cash to the Company. The remaining $1.7 million, representing 30% of the face value of the surety bonds and comprised of $1.1 million relating to the Palangana Mine and $0.6 million relating to the Hobson Processing Facility, is held as restricted cash for collateral purposes as required by the surety.

The components of working capital include the following:

    April 30, 2015     July 31, 2014  
Cash and cash equivalents $  1,423,447   $  8,839,892  
Current assets   4,302,409     11,567,034  
Current liabilities   1,945,813     2,298,334  
Working capital   2,356,596     9,268,700  

At April 30, 2015, we had working capital of $2,356,596, a decrease of $6,912,104 from our working capital of $9,268,700 at July 31, 2014. At April 30, 2015, we had $1,423,447 (July 31, 2014: $8,839,892) in cash and cash equivalents. As a result, our working capital balance will fluctuate significantly as we secure additional financing and utilize our cash and cash equivalents to fund our operations including exploration and pre-extraction activities.

At April 30, 2015, we had 84,000 pounds of U3O8 in finished goods inventories that were available for sale with a carrying value of $2,112,339 and an approximate market value of $3.1 million. Subsequent to April 30, 2015, we sold 80,000 pounds of U3O8 from inventories generating gross sales of $3,080,000.

Although our planned principal operations have commenced from which significant revenues from sales of U3O8 were realized during Fiscal 2013 of $9,026,325 and Fiscal 2012 of $13,757,400, we have yet to achieve profitability and have had a history of operating losses and significant negative cash flow since inception. No revenue from the sale of U3O8 was realized during the nine months ended April 30, 2015 or Fiscal 2014. For the nine months endedApril 30, 2015 and 2014, our net losses totaled $17,949,496 and $19,755,935, respectively, and we had an accumulated deficit balance of $186,611,642 as at April 30, 2015. During the nine months ended April 30, 2015 and 2014, net cash flows decreased by $7,416,445 and $865,497, respectively.

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As described above, at April 30, 2015, we had working capital of $2.4 million including cash and cash equivalents of $1.4 million and subsequently received $3.1 million in cash from the sale of U3O8. The continuation of theCompany as a going concern is dependent upon our ability to obtain adequate additional financing which we have successfully secured since inception, including those from asset divestitures. However, there is no assurance that we will be successful in securing any form of additional financing including further asset divestitures and accordingly, there is substantial doubt as to whether our existing cash resources and working capital are sufficient to enable the Company to continue its operations for the next twelve months.

Historically, we have been reliant primarily on equity financings from the sale of our common stock and, during Fiscal 2014 and 2013, on debt financing in order to fund our operations, and this reliance is expected to continue for the foreseeable future. During Fiscal 2013 and 2012, we also relied on cash flows generated from our mining activities; however, we have yet to achieve profitability or develop positive cash flow from operations, and we do not expect to achieve profitability or develop positive cash flow from operations in the near term. Our reliance on equity and debt financings 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 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. We may also be required to seek other forms of financing, such as joint venture arrangements to continue advancing our uranium projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project. However, 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, and we will require significant additional financing to fund our operations, including continuing with our exploration and pre-extraction activities. In the absence of such additional financing, we would not be able to fund our operations, including continuing with our exploration and pre-extraction activities, which may result in delays, curtailment or abandonment of any one or all of our uranium projects.

Our anticipated operations including exploration and pre-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 change may include accelerating the pace or broadening the scope of reducing our operations as originally announced on September 5, 2013. 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 weakness in the market price of uranium experienced in Fiscal 2014 continues or weakens further during Fiscal 2015;

if the weakness in the market price of our common stock experienced in Fiscal 2014 continues or weakens further during Fiscal 2015;

if we default on making scheduled payments of principal, interest and fees and complying with the restrictive covenants as required under our debt financing during Fiscal 2015, and it results in accelerated repayment of our indebtedness and/or enforcement by the lenders against certain key assets securing our indebtedness; and

if another nuclear incident, such as the events that occurred at Fukushima in March 2011, were to occur during Fiscal 2015, continuing public support of nuclear power as a viable source of electricity 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 and pre-extraction activities 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. The economic viability of our mining activities, including the expected duration and profitability of the Palangana Mine and of any future satellite ISR mines, such as the Goliad and Burke Hollow Projects, located within the South Texas Uranium Belt, has many risks and uncertainties. These include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct the mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. Our mining activities may change as a result of any one or more of these risks and uncertainties and there is no assurance that any ore body that we extract mineralized materials from will result in profitable mining activities.

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Equity Financings

We previously filed a Form S-3 “Shelf” Registration Statement effective September 2, 2011 (the “2011 Shelf”) providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, up to an aggregate amount of $50 million of which a total of $34.4 million was utilized through public offers and sales of shares and units. We filed a further registration statement effective December 31, 2013 providing for the public offer and sale of certain securities of the Company representing an additional 20%, or $3.1 million, of the then remaining $15.6 million available under the 2011 Shelf, which increased the remaining amount available under the 2011 Shelf to $18.7 million.

We filed a prospectus supplement to the 2011 Shelf, providing for the public offer and sale of the Company’s shares having an aggregate offering price of up to $18.7 million through one or more “at-the-market” offerings (the “ATM Offering”) pursuant to a Controlled Equity OfferingSM Sales Agreement effective December 31, 2013 between Cantor Fitzgerald & Co., as sales agent, and the Company. During the nine months ended April 30, 2015, we completed a public offer and sale of 280,045 shares of the Company at a price of $1.70 per share for gross proceeds of $474,788 under the ATM Offering.

The 2011 Shelf expired on September 2, 2014. As a result, no further public offer and sale of the Company’s shares may be completed through the ATM Offering under the 2011 Shelf.

We filed a second Form S-3 “Shelf” Registration Statement effective January 10, 2014 providing for the public offer and sale of certain securities of the Company from time to time, at its discretion, up to an aggregate offering of $100 million.

Operating Activities

Net cash used in operating activities during the nine months ended April 30, 2015 was $11,761,904 (nine months ended April 30, 2014: $16,741,007). Significant operating expenditures included uranium extraction costs, mineral property expenditures and general and administrative expenses.

Financing Activities

Net cash provided by financing activities during the nine months ended April 30, 2015 was $454,984, resulting primarily from net cash of $411,041 received from the issuance of common shares from the equity financing and $24,549 received from the exercise of stock options. Net cash provided by financing activities during the nine months ended April 30, 2014 was $16,115,675 resulting primarily from net cash of $6,539,575 received from the issuance of common shares from the equity financing and $22,501 received from the exercise of stock options, and net cash of $9,554,467 in additional funding received from the Amended Credit Facility.

Investing Activities

Net cash provided by investing activities during the nine months ended April 30, 2015 was $3,890,475, resulting primarily from gross proceeds of $5,663,158 received from the release of reclamation deposits, offset by the payment of collateral for the surety bonds of $1,690,208, acquisition of mineral rights and properties of $73,624 and purchase of property, plant and equipment of $10,905. Net cash used in investing activities during the nine months ended April 30, 2014 was $240,165 resulting primarily from the acquisition of mineral rights and properties of $161,800 and purchase of property, plant and equipment of $77,813.

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Stock Options and Warrants

At April 30, 2015, the Company had stock options outstanding representing 10,614,587 common shares at a weighted-average exercise price of $1.39 per share and share purchase warrants outstanding representing 5,009,524 common shares at a weighted-average exercise price of $2.38 per share. At April 30, 2015, outstanding stock options and warrants represented a total 15,624,111 shares issuable for gross proceeds of approximately $26,639,000 should these stock options and warrants be exercised in full. At April 30, 2015, outstanding in-the-money stock options and warrants represented a total 14,751,325 common shares exercisable for gross proceeds of approximately $23,693,000 should these in-the-money stock options and warrants be exercised in full. The exercise of these stock options and warrants is at the discretion of the respective holders and, accordingly, there is no assurance that any of these stock options or warrants will be exercised in the future.

Transactions with Directors and Officers

During the three and nine months ended April 30, 2015, the Company incurred $45,443 and $118,101 (three and nine months ended April 30, 2014: $37,176 and $110,815), respectively, in general and administrative costs paid to a company controlled by a direct family member of a director and officer. In addition, during the nine months ended April 30, 2015, the Company issued 15,000 restricted shares to this company for consulting services with a fair value of $18,150 included in general and administrative costs.

During the three and nine months ended April 30, 2014, the Company incurred $9,000 and $27,000, respectively, in consulting fees paid to a company controlled by a former director of the Company.

At April 30, 2015, amounts owed to related parties totaled $30,628 (July 31, 2014: $11,234). These amounts are unsecured, non-interest bearing and due on demand.

Material Commitments

Material commitments of the Company since the filing of the Form 10-K for the fiscal year ended July 31, 2014 have not changed, except for commitments relating to executive management services which increased by $236,000 due primarily to the appointment of an Executive Vice President in September 2014.

At April 30, 2015, we have made all scheduled payments and complied with all of the covenants under the Amended and Restated Credit Agreement dated and effective March 13, 2014, and we expect to continue complying with all scheduled payments and covenants during our fiscal year ending July 31, 2015.

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 Form 10-K Annual Report for the fiscal year ended July 31, 2014.

Refer to “Critical Accounting Policies” under Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K Annual Report for the fiscal year ended July 31, 2014.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Form 10-K Annual Report for the fiscal year ended July 31, 2014.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based on such evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.

It should be noted that any system of controls is based in part upon certain assumptions designed to obtain reasonable (and not absolute) assurance as to its effectiveness, and there can be no assurance that any design will succeed in achieving its stated goals.

Changes in Internal Controls

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our fiscal quarter ended April 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

As of the date of this Quarterly Report, other than as disclosed below, there are no material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which the Company or any of its subsidiaries is a party or of which any of their property is subject, and no director, officer, affiliate or record or beneficial owner of more than 5% of our common stock, or any associate or any such director, officer, affiliate or security holder, is (i) a party adverse to us or any of our subsidiaries in any legal proceeding or (ii) has an adverse interest to us or any of our subsidiaries in any legal proceeding. Other than as disclosed below, management is not aware of any other material legal proceedings pending or that have been threatened against us or our properties.

On or about March 9, 2011, the Texas Commission on Environmental Quality (the “TCEQ”) granted the Company’s applications for a Class III Injection Well Permit, Production Area Authorization and Aquifer Exemption for its Goliad Project. On or about December 4, 2012, the U.S. Environmental Protection Agency (the “EPA”) concurred with the TCEQ issuance of the Aquifer Exemption permit (the “AE”). With the receipt of this concurrence, the final authorization required for uranium extraction, the Goliad Project achieved fully-permitted status. On or about May 24, 2011, a group of petitioners, inclusive of Goliad County, appealed the TCEQ action to the 250th District Court in Travis County, Texas. A motion filed by the Company to intervene in this matter was granted. The petitioners’ appeal lay dormant until on or about June 14, 2013, when the petitioners filed their initial brief in support of their position. On or about January 18, 2013, a different group of petitioners, exclusive of Goliad County, filed a petition for review with the Court of Appeals for the Fifth Circuit in the United States (the “Fifth Circuit”) to appeal the EPA’s decision. On or about March 5, 2013, a motion filed by the Company to intervene in this matter was granted. The parties attempted to resolve both appeals and, to facilitate discussions and to avoid further legal costs, the parties jointly agreed, through mediation which was initially conducted through the Fifth Circuit on or about August 8, 2013, to abate the proceedings in the State District Court. On or about August 21, 2013, the State District Court agreed to abate the proceedings. The EPA subsequently filed a motion to remand without vacatur with the Fifth Circuit wherein the EPA's stated purpose was to elicit additional public input and further explain its rationale for the approval. In requesting the remand without vacatur, which would allow the AE to remain in place during the review period, the EPA denied the existence of legal error and stated that it was unaware of any additional information that would merit reversal of the AE. The Company and the TCEQ filed a request to the Fifth Circuit for the motion to remand without vacatur, if granted, to be limited to a 60-day review period. On December 9, 2013, by way of a procedural order from a three-judge panel of the Fifth Circuit, the Court granted the remand without vacatur and initially limited the review period to 60 days. In March of 2014, at the EPA’s request, the Fifth Circuit extended the EPA’s time period for review and additionally, during that same period, the Company conducted a joint groundwater survey of the site, the result of which reaffirmed the Company’s previously filed groundwater direction studies. On or about June 17, 2014, the EPA reaffirmed its earlier decision to uphold the granting of the Company’s existing AE, with the exception of a northwestern portion containing less than 10% of the uranium resource which was withdrawn, but not denied, from the AE area until additional information is provided in the normal course of mine development. On or about September 9, 2014, the petitioners filed a status report with the State District Court which included a request to remove the stay agreed to in August 2013 and to set a briefing schedule (the “Status Report”). In that Status Report, the petitioners also stated that they had decided not to pursue their appeal at the Fifth Circuit. The Company continues to believe that the pending appeal is without merit and is continuing forward as planned towards uranium extraction at its fully-permitted Goliad Project.

On or about April 3, 2012, the Company received notification of a lawsuit filed in the State of Arizona, in the Superior Court for the County of Yavapai, by certain petitioners (the “Plaintiffs”) against a group of defendants, including the Company and former management and board members of Concentric. The lawsuit asserts certain claims relating to the Plaintiffs’ equity investments in Concentric, including allegations that the former management and board members of Concentric engaged in various wrongful acts prior to and/or in conjunction with the merger of Concentric. The lawsuit originally further alleged that the Company was contractually liable for liquidated damages arising from a pre-merger transaction which the Company previously acknowledged and recorded as an accrued liability, and which portion of the lawsuit was settled in full by a cash payment of $149,194 to the Plaintiffs and subsequently dismissed. The court dismissed several other claims set forth in the Plaintiffs’ initial complaint, but granted the Plaintiffs leave to file an amended complaint. The court denied a subsequent motion to dismiss the amended complaint, finding that the pleading met the minimal pleading requirements under the applicable procedural rules. In October 2013, the Company filed a formal response denying liability for any of the Plaintiffs’ remaining claims and is vigorously defending against any and all remaining claims asserted under this lawsuit. The parties have exchanged disclosure statements and formal discovery has been completed. A trial date has been set for April 2016. The Company continues to believe that this lawsuit is without merit, and intends to file a dispositive motion prior to November 20, 2015.

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On June 1, 2015, the Company received notice that Westminster Securities Corporation filed a suit in the United States District Court for the Southern District of New York, alleging a breach of contract relating to certain four-year warrants issued by Concentric in December 2008. Although the Concentric warrants expired by their terms on December 31, 2012, Westminster bases its claim upon transactions allegedly occurring prior to UEC’s merger with Concentric. The Company believes that this claim lacks merit and intends to vigorously defend the same.

Item 1A. Risk Factors

In addition to the information contained in our Form 10-K Annual Report for the fiscal year ended July 31, 2014 and this Form 10-Q Quarterly Report, the following list of material risks and uncertainties should be carefully reviewed by our stockholders and any potential investors in evaluating our Company, our business and the market value of our common stock. Any one of these risks and uncertainties has the potential to cause material adverse effects on our business, prospects, financial condition and operating results which could cause actual results to differ materially from any forward-looking statements expressed by us and a significant decrease in the market price of our common stock. Refer to “Forward-Looking Statements” as disclosed in our Form 10-K Annual Report for the fiscal year ended July 31, 2014.

There is no assurance that we will be successful in preventing the material adverse effects that any of the following risks and uncertainties may cause, or that these potential risks and uncertainties are a complete list of the risks and uncertainties facing us. Furthermore, there may be additional risks and uncertainties that we are presently unaware of, or presently consider immaterial, that may become material in the future and have a material adverse effect on us. You could lose all or a significant portion of your investment due to any of these risks and uncertainties.

Risks Related to Our Company and Business

Evaluating our future performance may be difficult since we have a limited financial and operating history, with significant negative cash flow and accumulated deficit to date. The continuation of the Company as a going concern is dependent upon our ability to obtain adequate additional financing, including those from asset divestitures. However, there is no assurance that we will be successful in securing any form of additional financing and accordingly, there is substantial doubt as to whether our existing cash resources and working capital are sufficient to enable the Company to continue its operations for the next twelve months. Furthermore, our long-term success will depend ultimately on our ability to achieve and maintain profitability and to develop positive cash flow from our mining activities.

As more fully described under Item 1. Business in our Form 10-K Annual Report for the fiscal year ended July 31, 2014, Uranium Energy Corp. was incorporated under the laws of the State of Nevada on May 16, 2003 and since 2004, we have been engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing on projects located in the United States and Paraguay. In November 2010, we commenced uranium extraction utilizing ISR for the first time at the Palangana Mine and processed those materials at the Hobson Processing Facility into drums of U3O8, our only sales product and source of revenue. We also hold uranium projects in various stages of exploration and pre-extraction in the States of Arizona, Colorado, New Mexico, Texas and Wyoming and the Republic of Paraguay.

As more fully described under “Liquidity and Capital Resources” of Item 2. Management’s Discussion and Analysis of Financial Condition and Result of Operations, we have a history of significant negative cash flow and accumulated deficit since inception to April 30, 2015 of $186.6 million. Although we generated revenues from sales of U3O8 during Fiscal 2013 and 2012 of $9.0 million and $13.8 million, respectively, we have yet to achieve profitability or develop positive cash flow from our operations. No revenues from the sale of U3O8 were generated during the nine months ended April 30, 2015 or during Fiscal 2014 or prior to Fiscal 2012. Furthermore, we do not expect to achieve and maintain profitability or develop positive cash flow from our operations in the near term. Historically, we have been reliant primarily on equity financings and, more recently, on debt financing to fund our operations and we expect this reliance to continue for the foreseeable future. As a result of our limited financial and operating history, including our significant negative cash flow and net losses to date, it may be difficult to evaluate our future performance.

At April 30, 2015, we had working capital of $2.4 million including cash and cash equivalents of $1.4 million and subsequently received $3.1 million in cash from the sale of U3O8.The continuation of the Company as a going concern is dependent upon our ability to obtain adequate additional financing which we have successfully secured since inception, including those from asset divestitures. However, there is no assurance that we will be successful in securing any form of additional financing including further asset divestitures and accordingly, there is substantial doubt as to whether our existing cash resources and working capital are sufficient to enable the Company to continue its operations for the next twelve months.

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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 and pre-extraction activities 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. The economic viability of our mining activities, including the expected duration and profitability of the Palangana Mine and of any future satellite ISR mines, such as the Goliad and Burke Hollow Projects, located within the South Texas Uranium Belt, has many risks and uncertainties. These include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct the mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vi) the introduction of significantly more stringent regulatory laws and regulations. Our mining activities may change as a result of any one or more of these risks and uncertainties and there is no assurance that any ore body that we extract mineralized materials from will result in achieving and maintaining profitability and developing positive cash flow.

Our operations are capital intensive, and we will require significant additional financing to acquire additional uranium projects and continue with our exploration and pre-extraction activities on our existing uranium projects. However, 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. We will require significant additional financing to fund our operations, including continuing with our exploration and pre-extraction activities which include assaying, drilling, geological and geochemical analysis and mine construction costs. In the absence of such additional financing, we would not be able to fund our operations, including continuing with our exploration and pre-extraction activities, which may result in delays, curtailment or abandonment of any one or all of our uranium projects.

Historically, we have been reliant primarily on equity financings from the sale of our common stock and, for Fiscal 2014 and 2013, on debt financing in order to fund our operations. We have also relied on cash flows generated from our mining activities during Fiscal 2013 and 2012, however, we have yet to achieve profitability or develop positive cash flow from operations. Our reliance on equity and debt financings 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 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. We may also be required to seek other forms of financing, such as asset divestitures or joint venture arrangements to continue advancing our uranium projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project. However, there is no assurance that we will be successful in securing any form of additional financing when required and on terms favorable to us.

Restrictive covenants in the credit agreement governing our indebtedness may restrict our ability to pursue our business strategies.

We entered into an amended and restated credit agreement dated and effective March 13, 2014, which superseded in its entirety a prior credit agreement dated and effective July 30, 2013, which provides for a $20 million secured credit facility, pursuant to which we had drawn down $20 million in principal as of July 31, 2014. The amended and restated credit agreement includes restrictive covenants that, among other things, limit our ability to sell the assets securing our indebtedness or to incur additional indebtedness other than permitted indebtedness, which may restrict our ability to pursue certain business strategies from time to time. If we do not comply with these covenants, we could be in default which, if not addressed or waived, could require accelerated repayment of our indebtedness and/or enforcement by the lenders against certain key assets securing our indebtedness.

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If we are unable to service our indebtedness, we could lose the assets securing our indebtedness.

Our ability to make scheduled payments of principal, interest and fees, including compliance with the restrictive covenants under our amended and restated credit agreement, will be dependent on and may change as a result of our financial condition and operating performance. If we cannot make scheduled payments on our debt, we will be in default which, if not addressed or waived, could require accelerated repayment of our indebtedness and/or enforcement by the lenders against certain assets securing our indebtedness. Our amended and restated credit agreement is secured against the lease and related rights comprising the Hobson Processing Facility and the mineral and related rights comprising the Goliad Project. These are key assets on which our business is substantially dependent and as such, the enforcement against any one or all of these assets would have a material adverse effect on our operations and financial condition.

Our uranium extraction and sales history is limited, with our uranium extraction originating from a single uranium mine. Our ability to continue generating revenue is subject to a number of factors, any one or more of which may adversely affect our revenues, results of operations and financial condition.

We have a limited history of uranium extraction and generating revenue. In November 2010, we commenced uranium extraction at a single uranium mine, the Palangana Mine, which has been our sole source for the U3O8 sold to generate our revenues of $9.0 million during Fiscal 2013 and $13.8 million during Fiscal 2012, with no revenues from the sale of U3O8 generated during Fiscal 2014 or prior to Fiscal 2012. During Fiscal 2014, we announced a strategic plan to align our operations to adapt to the existing uranium market in a challenging post-Fukushima environment and as a result, uranium extraction at the Palangana Mine operated at a reduced pace, including the deferral of any further pre-extraction expenditures, to maintain operational readiness in anticipation of a recovery in uranium prices. Our ability to continue generating revenue from the Palangana Mine is subject to a number of factors which include, but are not limited to, (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct the mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. Furthermore, continued mining activities at the Palangana Mine will eventually deplete the Palangana Mine or become uneconomical, and if we are unable to directly acquire or develop our existing uranium projects, such as the Goliad and Burke Hollow Projects, into additional uranium mines from which we can commence uranium extraction, it will negatively impact our ability to continue generating revenues. Any one or more of these occurrences may adversely affect our results of operations and financial condition.

Uranium exploration and pre-extraction programs and mining activities are inherently subject to numerous significant risks and uncertainties, and actual results may differ significantly from expectations or anticipated amounts. Furthermore, exploration programs conducted on our uranium projects may not result in the establishment of ore bodies that contain commercially recoverable uranium.

Uranium exploration and pre-extraction programs and mining activities are inherently subject to numerous significant risks and uncertainties, many beyond our control, including, but not limited to: (i) unanticipated ground and water conditions and adverse claims to water rights; (ii) unusual or unexpected geological formations; (iii) metallurgical and other processing problems; (iv) the occurrence of unusual weather or operating conditions and other force majeure events; (v) lower than expected ore grades; (vi) industrial accidents; (vii) delays in the receipt of or failure to receive necessary government permits; (viii) delays in transportation; (ix) availability of contractors and labor; (x) government permit restrictions and regulation restrictions; (xi) unavailability of materials and equipment; and (xii) the failure of equipment or processes to operate in accordance with specifications or expectations. These risks and uncertainties could result in: delays, reductions or stoppages in our mining activities; increased capital and/or extraction costs; damage to, or destruction of, our mineral projects, extraction facilities or other properties; personal injuries; environmental damage; monetary losses; and legal claims.

Success in uranium exploration is dependent on many factors, including, without limitation, the experience and capabilities of a company’s management, the availability of geological expertise and the availability of sufficient funds to conduct the exploration program. Even if an exploration program is successful and commercially recoverable uranium is established, it may take a number of years from the initial phases of drilling and identification of the mineralization until extraction is possible, during which time the economic feasibility of extraction may change such that the uranium ceases to be economically recoverable. Uranium exploration is frequently non-productive due, for example, to poor exploration results or the inability to establish ore bodies that contain commercially recoverable uranium, in which case the uranium project may be abandoned and written-off. Furthermore, we will not be able to benefit from our exploration efforts and recover the expenditures that we incur on our exploration programs if we do not establish ore bodies that contain commercially recoverable uranium and develop these uranium projects into profitable mining activities, and there is no assurance that we will be successful in doing so for any of our uranium projects.

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Whether an ore body contains commercially recoverable uranium depends on many factors including, without limitation: (i) the particular attributes, including material changes to those attributes, of the deposit such as size, grade, recovery rates and proximity to infrastructure; (ii) the market price of uranium, which may be volatile; and (iii) government regulations and regulatory requirements including, without limitation, those relating to environmental protection, permitting and land use, taxes, land tenure and transportation.

We have not established proven or probable reserves through the completion of a “final” or “bankable” feasibility study for any of our uranium projects, including the Palangana Mine. Furthermore, we have no plans to establish proven or probable reserves for any of our uranium projects for which we plan on utilizing ISR mining, such as the Palangana Mine. Since we commenced extraction of mineralized materials from the Palangana Mine without having established proven or probable reserves, it may result in our mining activities at the Palangana Mine, and at any future uranium projects for which proven or probable reserves are not established, being inherently riskier than other mining activities for which proven or probable reserves have been established.

We have established the existence of mineralized materials for certain uranium projects, including the Palangana Mine. We have not established proven or probable reserves, as defined by the SEC under Industry Guide 7, through the completion of a “final” or “bankable” feasibility study for any of our uranium projects, including the Palangana Mine. Furthermore, we have no plans to establish proven or probable reserves for any of our uranium projects for which we plan on utilizing ISR mining, such as the Palangana Mine. Since we commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated. Any mineralized materials established or extracted from the Palangana Mine should not in any way be associated with having established or produced from proven or probable reserves.

Since we are in the Exploration Stage, pre-production expenditures including those related to pre-extraction activities are expensed as incurred, the effects of which may result in our consolidated financial statements not being directly comparable to the financial statements of companies in the Production Stage.

Despite the fact that we commenced uranium extraction at the Palangana Mine in November 2010, we remain in the Exploration Stage as defined under Industry Guide 7, and will continue to remain in the Exploration Stage until such time proven or probable reserves have been established, which may never occur. We prepare our consolidated financial statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”) under which acquisition costs of mineral rights are initially capitalized as incurred while pre-production expenditures are expensed as incurred until such time we exit the Exploration Stage. Expenditures relating to exploration activities are expensed as incurred and expenditures relating to pre-extraction activities are expensed as incurred until such time proven or probable reserves are established for that uranium project, after which subsequent expenditures relating to mine development activities for that particular project are capitalized as incurred.

We have neither established nor have any plans to establish proven or probable reserves for our uranium projects for which we plan on utilizing ISR mining, such as the Palangana Mine. Companies in the Production Stage as defined by the SEC under Industry Guide 7, having established proven and probable reserves and exited the Exploration Stage, typically capitalize expenditures relating to ongoing development activities, with corresponding depletion calculated over proven and probable reserves using the units-of-production method and allocated to future reporting periods to inventory and, as that inventory is sold, to cost of goods sold. As we are in the Exploration Stage, it has resulted in us reporting larger losses than if we had been in the Production Stage due to the expensing, instead of capitalization, of expenditures relating to ongoing mill and mine pre-extraction activities. Additionally, there would be no corresponding amortization allocated to our future reporting periods since those costs would have been expensed previously, resulting in both lower inventory costs and cost of goods sold and results of operations with higher gross profits and lower losses than if we had been in the Production Stage. Any capitalized costs, such as acquisition costs of mineral rights, are depleted over the estimated extraction life using the straight-line method. As a result, our consolidated financial statements may not be directly comparable to the financial statements of companies in the Production Stage.

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We have recorded estimated reclamation obligations relating to our uranium projects which may be exceeded by the actual reclamation costs when incurred in the future.

We are responsible for certain reclamation obligations in the future, primarily for the Hobson Processing Facility and the Palangana Mine, and have recorded a liability on our balance sheet to recognize such estimated reclamation costs. There is a risk, however, that the actual reclamation costs when incurred in the future will exceed the estimated amounts recorded, which will adversely affect our results of operations and financial performance.

We do not insure against all of the risks we face in our operations.

In general, where coverage is available and not prohibitively expensive relative to the perceived risk, we will maintain insurance against such risk, subject to exclusions and limitations. We currently maintain insurance against general commercial liability claims and certain physical assets used in our operations, subject to exclusions and limitations, however, we do not maintain insurance to cover all of the potential risks and hazards associated with our operations. We may be subject to liability for environmental, pollution or other hazards associated with our exploration, pre-extraction and extraction activities, which we may not be insured against, which may exceed the limits of our insurance coverage or which we may elect not to insure against because of high premiums or other reasons. Furthermore, we cannot provide assurance that any insurance coverage we currently have will continue to be available at reasonable premiums or that such insurance will adequately cover any resulting liability.

Acquisitions that we may make from time to time could have an adverse impact on us.

From time to time, we examine opportunities to acquire additional mining assets and businesses. Any acquisition that we may choose to complete may be of a significant size, may change the scale of our business and operations, and may expose us to new geographic, political, operating, financial and geological risks. Our success in our acquisition activities depends on our ability to identify suitable acquisition candidates, negotiate acceptable terms for any such acquisition, and integrate the acquired operations successfully with those of our Company. Any acquisitions would be accompanied by risks which could have a material adverse effect on our business. For example, there may be a significant change in commodity prices after we have committed to complete the transaction and established the purchase price or exchange ratio; a material ore body may prove to be below expectations; we may have difficulty integrating and assimilating the operations and personnel of any acquired companies, realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls across the organization; the integration of the acquired business or assets may disrupt our ongoing business and our relationships with employees, customers, suppliers and contractors; and the acquired business or assets may have unknown liabilities which may be significant. In the event that we choose to raise debt capital to finance any such acquisition, our leverage will be increased. If we choose to use equity as consideration for such acquisition, existing shareholders may suffer dilution. Alternatively, we may choose to finance any such acquisition with our existing resources. There can be no assurance that we would be successful in overcoming these risks or any other problems encountered in connection with such acquisitions.

The uranium industry is subject to numerous stringent laws, regulations and standards, including environmental protection laws and regulations. If any changes occur that would make these laws, regulations and standards more stringent, it may require capital outlays in excess of those anticipated or cause substantial delays, which would have a material adverse effect on our operations.

Uranium exploration and pre-extraction programs and mining activities are subject to numerous stringent laws, regulations and standards at the federal, state, and local levels governing permitting, pre-extraction, extraction, exports, taxes, labor standards, occupational health, waste disposal, protection and reclamation of the environment, protection of endangered and protected species, mine safety, hazardous substances and other matters. Our compliance with these requirements requires significant financial and personnel resources.

The laws, regulations, policies or current administrative practices of any government body, organization or regulatory agency in the United States or any other applicable jurisdiction, may change or be applied or interpreted in a manner which may also have a material adverse effect on our operations. The actions, policies or regulations, or changes thereto, of any government body or regulatory agency or special interest group, may also have a material adverse effect on our operations.

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Uranium exploration and pre-extraction programs and mining activities are subject to stringent environmental protection laws and regulations at the federal, state, and local levels. These laws and regulations, which include permitting and reclamation requirements, regulate emissions, water storage and discharges and disposal of hazardous wastes. Uranium mining activities are also subject to laws and regulations which seek to maintain health and safety standards by regulating the design and use of mining methods. Various permits from governmental and regulatory bodies are required for mining to commence or continue, and no assurance can be provided that required permits will be received in a timely manner.

Our compliance costs including the posting of surety bonds associated with environmental protection laws and regulations and health and safety standards have been significant to date, and are expected to increase in scale and scope as we expand our operations in the future. Furthermore, environmental protection laws and regulations may become more stringent in the future, and compliance with such changes may require capital outlays in excess of those anticipated or cause substantial delays, which would have a material adverse effect on our operations.

To the best of our knowledge, our operations are in compliance, in all material respects, with all applicable laws, regulations and standards. If we become subject to liability for any violations, we may not be able or may elect not to insure against such risk due to high insurance premiums or other reasons. Where coverage is available and not prohibitively expensive relative to the perceived risk, we will maintain insurance against such risk, subject to exclusions and limitations. However, we cannot provide any assurance that such insurance will continue to be available at reasonable premiums or that such insurance will be adequate to cover any resulting liability.

We may not be able to obtain or maintain necessary licenses.

Our exploration and mining activities are dependent upon the grant of appropriate authorizations, licences, permits and consents, as well as continuation of these authorizations, licences, permits and consents already granted, which may be granted for a defined period of time, or may not be granted or may be withdrawn or made subject to limitations. There can be no assurance that all necessary authorizations, licences, permits and consents will be granted to us, or that authorizations, licences, permits and consents already granted will not be withdrawn or made subject to limitations.

Major nuclear incidents may have adverse effects on the nuclear and uranium industries.

The nuclear incident that occurred in Japan in March 2011 had significant and adverse effects on both the nuclear and uranium industries. If another nuclear incident were to occur, it may have further adverse effects for both industries. Public opinion of nuclear power as a source of electricity generation may be adversely affected, which may cause governments of certain countries to further increase regulation for the nuclear industry, reduce or abandon current reliance on nuclear power or reduce or abandon existing plans for nuclear power expansion. Any one of these occurrences has the potential to reduce current and/or future demand for nuclear power, resulting in lower demand for uranium and lower market prices for uranium, adversely affecting the Company’s operations and prospects. Furthermore, the growth of the nuclear and uranium industries is dependent on continuing and growing public support of nuclear power as a viable source of electricity generation.

The marketability of uranium concentrates will be affected by numerous factors beyond our control which may result in our inability to receive an adequate return on our invested capital.

The marketability of uranium concentrates extracted by us will be affected by numerous factors beyond our control. These factors include macroeconomic factors, fluctuations in the market price of uranium, governmental regulations, land tenure and use, regulations concerning the importing and exporting of uranium and environmental protection regulations. The future effects of these factors cannot be accurately predicted, but any one or a combination of these factors may result in our inability to receive an adequate return on our invested capital.

The uranium industry is highly competitive and we may not be successful in acquiring additional projects.

The uranium industry is highly competitive, and our competition includes larger, more established companies with longer operating histories that not only explore for and produce uranium, but also market uranium and other products on a regional, national or worldwide basis. Due to their greater financial and technical resources, we may not be able to acquire additional uranium projects in a competitive bidding process involving such companies. Additionally, these larger companies have greater resources to continue with their operations during periods of depressed market conditions.

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We hold mineral rights in foreign jurisdictions which could be subject to additional risks due to political, taxation, economic and cultural factors.

We hold certain mineral rights located in Paraguay through the acquisition of Piedra Rica Mining S.A. and Transandes Paraguay S.A., both companies incorporated in Paraguay. Operations in foreign jurisdictions outside of the U.S. and Canada, especially in developing countries, may be subject to additional risks as they may have different political, regulatory, taxation, economic and cultural environments that may adversely affect the value or continued viability of our rights. These additional risks include, but are not limited to: (i) changes in governments or senior government officials; (ii) changes to existing laws or policies on foreign investments, environmental protection, mining and ownership of mineral interests; (iii) renegotiation, cancellation, expropriation and nationalization of existing permits or contracts; (iv) foreign currency controls and fluctuations; and (v) civil disturbances, terrorism and war.

In the event of a dispute arising at our foreign operations in Paraguay, we may be subject to the exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction of the courts in the United States or Canada. We may also be hindered or prevented from enforcing our rights with respect to a government entity or instrumentality because of the doctrine of sovereign immunity. Any adverse or arbitrary decision of a foreign court may have a material and adverse impact on our business, prospects, financial condition and results of operations.

There is no guarantee that title to our mineral property interests will not be challenged.

Although we have taken reasonable measures to ensure proper title to our interests in mineral properties and other assets, there is no guarantee that the title to any of such interests will not be challenged. No assurance can be given that we will be able to secure the grant or the renewal of existing mineral rights and tenures on terms satisfactory to us, or that governments in the jurisdictions in which we operate will not revoke or significantly alter such rights or tenures or that such rights or tenures will not be challenged or impugned by third parties, including local governments, aboriginal peoples or other claimants. Our mineral properties may be subject to prior unregistered agreements, transfers or claims, and title may be affected by, among other things, undetected defects. A successful challenge to the precise area and location of our claims could result in us being unable to operate on our properties as permitted or being unable to enforce our rights with respect to our properties.

Due to the nature of our business, we may be subject to legal proceedings which may divert management’s time and attention from our business and result in substantial damage awards.

Due to the nature of our business, we may be subject to numerous regulatory investigations, civil claims, lawsuits and other proceedings in the ordinary course of our business including those described under Item 1. Legal Proceedings. No reserves have been established for any potential liability relating to these lawsuits. The outcome of these lawsuits is uncertain and subject to inherent uncertainties, and the actual costs to be incurred will depend upon many unknown factors. We may be forced to expend significant resources in the defense of these suits, and we may not prevail. Defending against these and other lawsuits in the future may not only require us to incur significant legal fees and expenses, but may become time-consuming for us and detract from our ability to fully focus our internal resources on our business activities. The results of any legal proceeding cannot be predicted with certainty due to the uncertainty inherent in litigation, the difficulty of predicting decisions of regulators, judges and juries and the possibility that decisions may be reversed on appeal. There can be no assurances that these matters will not have a material adverse effect on our business, results of operations or financial position.

We depend on certain key personnel, and our success will depend on our continued ability to retain and attract such qualified personnel.

Our success is dependent on the efforts, abilities and continued service of certain senior officers and key employees and consultants. A number of our key employees and consultants have significant experience in the uranium industry. A loss of service from any one of these individuals may adversely affect our operations, and we may have difficulty or may not be able to locate and hire a suitable replacement.

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Certain directors and officers may be subject to conflicts of interest.

The majority of our directors and officers are involved in other business ventures including similar capacities with other private or publicly-traded companies. Such individuals may have significant responsibilities to these other business ventures, including consulting relationships, which may require significant amounts of their available time. Conflicts of interest may include decisions on how much time to devote to our business affairs and what business opportunities should be presented to us. Our Code of Business Conduct for Directors, Officers and Employees provides for guidance on conflicts of interest.

The laws of the State of Nevada and our Articles of Incorporation may protect our directors and officers from certain types of lawsuits.

The laws of the State of Nevada provide that our directors and officers will not be liable to the Company or its stockholders for monetary damages for all but certain types of conduct as directors and officers of the Company. Our Bylaws provide for broad indemnification powers to all persons against all damages incurred in connection with our business to the fullest extent provided or allowed by law. These indemnification provisions may require us to use our limited assets to defend our directors and officers against claims, and may have the effect of preventing stockholders from recovering damages against our directors and officers caused by their negligence, poor judgment or other circumstances.

Several of our directors and officers are residents outside of the U.S., and it may be difficult for stockholders to enforce within the U.S. any judgments obtained against such directors or officers.

Several of our directors and officers are nationals and/or residents of countries other than the U.S., and all or a substantial portion of such persons' assets are located outside of the U.S. As a result, it may be difficult for investors to effect service of process on such directors and officers, or enforce within the U.S. any judgments obtained against such directors and officers, including judgments predicated upon the civil liability provisions of the securities laws of the U.S. or any state thereof. Consequently, stockholders may be effectively prevented from pursuing remedies against such directors and officers under U.S. federal securities laws. In addition, stockholders may not be able to commence an action in a Canadian court predicated upon the civil liability provisions under U.S. federal securities laws. The foregoing risks also apply to those experts identified in this document that are not residents of the U.S.

Disclosure controls and procedures and internal control over financial reporting, no matter how well designed and operated, are designed to obtain reasonable, and not absolute, assurance as to its reliability and effectiveness.

Management’s evaluation on the effectiveness of disclosure controls and procedures is designed to ensure that information required for disclosure in our public filings is recorded, processed, summarized and reported on a timely basis to our senior management, as appropriate, to allow timely decisions regarding required disclosure. Management’s report on internal control over financial reporting is designed to provide reasonable assurance that transactions are properly authorized, assets are safeguarded against unauthorized or improper use and transactions are properly recorded and reported. Any system of controls, no matter how well designed and operated, is based in part upon certain assumptions designed to obtain reasonable, and not absolute, assurance as to its reliability and effectiveness.

Risks Related to Our Common Stock

Historically, the market price of our common stock has been and may continue to fluctuate significantly.

On September 28, 2007, our common stock commenced trading on the NYSE MKT Equities Exchange (formerly known as the American Stock Exchange and the NYSE Amex Equities Exchange) and prior to that, traded on the OTC Bulletin Board.

The global markets have experienced significant and increased volatility in the past, and have been impacted by the effects of mass sub-prime mortgage defaults and liquidity problems of the asset-backed commercial paper market, resulting in a number of large financial institutions requiring government bailouts or filing for bankruptcy. The effects of these past events and any similar events in the future may continue to or further affect the global markets, which may directly affect the market price of our common stock and our accessibility for additional financing. Although this volatility may be unrelated to specific company performance, it can have an adverse effect on the market price of our shares which, historically, has fluctuated significantly and may continue to do so in the future.

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In addition to the volatility associated with general economic trends and market conditions, the market price of our common stock could decline significantly due to the impact of any one or more events, including, but not limited to, the following: (i) volatility in the uranium market; (ii) occurrence of a major nuclear incident such as the events in Fukushima in March 2011; (iii) changes in the outlook for the nuclear power and uranium industries; (iv) failure to meet market expectations on our exploration, pre-extraction or extraction activities, including abandonment of key uranium projects; (v) sales of a large number of our shares held by certain stockholders including institutions and insiders; (vi) downward revisions to previous estimates on us by analysts; (vii) removal from market indices; (viii) legal claims brought forth against us; and (ix) introduction of technological innovations by competitors or in competing technologies.

A prolonged decline in the market price of our common stock could affect our ability to obtain additional financing which would adversely affect our operations.

Historically, we have relied on equity financing and more recently, on debt financing, as primary sources of financing. A prolonged decline in the market price of our common stock or a reduction in our accessibility to the global markets may result in our inability to secure additional financing which would have an adverse effect on our operations.

Additional issuances of our common stock may result in significant dilution to our existing shareholders and reduce the market value of their investment.

We are authorized to issue 750,000,000 shares of common stock of which 92,434,424 shares were issued and outstanding as of April 30, 2015. Future issuances for financings, mergers and acquisitions, exercise of stock options and share purchase warrants and for other reasons may result in significant dilution to and be issued at prices substantially below the price paid for our shares held by our existing stockholders. Significant dilution would reduce the proportionate ownership and voting power held by our existing stockholders, and may result in a decrease in the market price of our shares.

We filed a Form S-3 “Shelf” Registration Statement, which was declared effective on January 10, 2014. This “Shelf” Registration Statement provides for the public offer and sale of certain securities of the Company from time to time, at our discretion, up to an aggregate offering amount of $100 million.

We are subject to the Continued Listing Criteria of the NYSE MKT and our failure to satisfy these criteria may result in delisting of our common stock.

Our common stock is currently listed on the NYSE MKT. In order to maintain this listing, we must maintain certain share prices, financial and share distribution targets, including maintaining a minimum amount of shareholders’ equity and a minimum number of public shareholders. In addition to these objective standards, the NYSE MKT may delist the securities of any issuer if, in its opinion, the issuer’s financial condition and/or operating results appear unsatisfactory; if it appears that the extent of public distribution or the aggregate market value of the security has become so reduced as to make continued listing on the NYSE MKT inadvisable; if the issuer sells or disposes of principal operating assets or ceases to be an operating company; if an issuer fails to comply with the NYSE MKT’s listing requirements; if an issuer’s common stock sells at what the NYSE MKT considers a “low selling price” and the issuer fails to correct this via a reverse split of shares after notification by the NYSE MKT; or if any other event occurs or any condition exists which makes continued listing on the NYSE MKT, in its opinion, inadvisable.

If the NYSE MKT delists our common stock, investors may face material adverse consequences, including, but not limited to, a lack of trading market for our securities, reduced liquidity, decreased analyst coverage of our securities, and an inability for us to obtain additional financing to fund our operations.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During our fiscal quarter ended April 30, 2015, we issued the following securities that were not registered under the Securities Act of 1933, as amended (the “U.S. Securities Act”):

On February 5, 2015, we issued 11,111 shares of restricted common stock to a consultant at a deemed issuance price of $1.87 per share in consideration for services under a consulting agreement. We relied on exemptions from registration under the U.S. Securities Act provided by Rule 506 of Regulation D and/or Section 4(a)(2) with respect to the issuance of these shares.

On February 20, 2015, we issued we issued 4,000 shares of restricted common stock to a consultant at a deemed issuance price of $1.20 per share in consideration for services under a consulting agreement. We relied on exemptions from registration under the U.S. Securities Act provided by Regulation S and/or Section 4(a)(2) with respect to the issuance of these shares.

On March 4, 2015 and April 2, 2015, we issued 7,500 shares of restricted common stock and 7,500 shares of common stock, respectively, to a consultant at a deemed issuance price of $1.29 per share in consideration for services under a consulting agreement. We relied on exemptions from registration under the U.S. Securities Act provided by Regulation S and/or Section 4(a) (2) with respect to the issuance of these shares.

On March 4, 2015 and April 2, 2015, we issued 25,000 shares of restricted common stock and 50,000 shares of common stock, respectively, to a consultant at a deemed issuance price of $1.30 per share in consideration for services under a consulting agreement. We relied on exemptions from registration under the U.S. Securities Act provided by Regulation S and/or Section 4(a) (2) with respect to the issuance of these shares.

On March 4, 2015 and April 2, 2015, we issued 19,685 shares of restricted common stock and 19,685 shares of common stock, respectively, to a consultant at a deemed issuance price of $1.27 per share in consideration for services under a consulting agreement. We relied on exemptions from registration under the U.S. Securities Act provided by Regulation S and/or Section 4(a) (2) with respect to the issuance of these shares.

On March 4, 2015, we issued 35,000 shares of restricted common stock to a consultant at a deemed issuance price of $1.30 per share in consideration for services under a consulting agreement. We relied on exemptions from registration under the U.S. Securities Act provided by Rule 506 of Regulation D and/or Section 4(a)(2) with respect to the issuance of these shares.

On April 7, 2015, we issued an aggregate of 119,277 shares of restricted common stock to four consultants in consideration for services under four consulting agreements, as follows: (i) we issued 16,500 shares of restricted common stock to a consultant at a deemed issuance price of $1.45 per share; (ii) we issued 26,666 shares of restricted common stock to a consultant at a deemed issuance price of $1.50 per share; (iii) we issued 65,000 shares of restricted common stock to a consultant at a deemed issuance price of $1.48 per share; and (iv) we issued 11,111 shares of restricted common stock to a consultant at a deemed issuance price of $1.47 per share. We relied on exemptions from registration under the U.S. Securities Act provided by Regulation S and/or Section 4(a)(2) with respect to the issuance of these shares to two of these consultants and on exemptions from registration under exemptions from registration under the U.S. Securities Act provided by Rule 506 of Regulation D and/or Section 4(a)(2) with respect to the issuance of these shares to the other two consultants.

On April 20, 2015, we issued 13,446 shares of restricted common stock to a consultant at a deemed issuance price of $1.36 per share in consideration for services under a consulting agreement. We relied on exemptions from registration under the U.S. Securities Act provided by Regulation S and/or Section 4(a)(2) with respect to the issuance of these shares.

On April 22, 2015, we issued 15,000 shares of restricted common stock to a consultant at a deemed issuance price of $1.50 per share in consideration for services under a consulting agreement. We relied on exemptions from registration under the U.S. Securities Act provided by Regulation S and/or Section 4(a)(2) with respect to the issuance of these shares.


Item 3. Defaults Upon Senior Securities

None.

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Item 4. Mine Safety Disclosures

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States, and that is subject to regulation by the Federal Mine Safety and Health Administration under the Mine Safety and Health Act of 1977 (“Mine Safety Act”), are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. During the quarter ended April 30, 2015, the Company’s Palangana Mine was not subject to regulation by the Federal Mine Safety and Health Administration under the Mine Safety Act.

Item 5. Other Information

None.

Item 6. Exhibits

The following exhibits are included with this Quarterly Report on Form 10-Q:

Exhibit Description of Exhibit
   
31.1 Certification of Chief Executive Officer pursuant to the Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
   
31.2 Certification of Chief Financial Officer pursuant to the Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
   
32.1 Certifications pursuant to the Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  URANIUM ENERGY CORP.
     
  By: /s/ Amir Adnani
    Amir Adnani
    President, Chief Executive Officer (Principal
    Executive Officer) and Director
    Date: June 8, 2015
     
  By: /s/ Mark Katsumata
    Mark Katsumata
    Secretary, Treasurer and Chief Financial Officer
    (Principal Financial Officer)
    Date: June 8, 2015

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