Westwater Applauds Federal FY 2021 Budget Proposal for Uranium

Westwater Resources, Inc. (Nasdaq: WWR), an energy materials development company, is pleased to support the Federal Fiscal Year 2021 budget proposal to set aside $150 million to establish a domestic Uranium Reserve.

Christopher M. Jones, President and Chief Executive Officer, said, “We believe this is an important development for the U.S. uranium industry that provides a real-time opportunity for Westwater. The Federal FY2021 budget, announced today, provides for a mechanism to build a strategic stockpile of uranium to secure our nation’s defensive needs. $150 million has been allocated for that new Uranium Reserve which addresses immediate challenges to the production of domestic uranium. Westwater stands ready to participate using our large uranium resource portfolio and two fully licensed facilities and wellfields in Texas.

“We also support the continued efforts of the Administration and the Nuclear Fuel Working Group to continue to evaluate issues related to the uranium supply chain and fuel supply,” concluded Mr. Jones.

Westwater Resources’ Uranium Portfolio

Westwater’s holdings in New Mexico encompass approximately 188,700 acres and include:

• The Cebolleta and Juan Tafoya properties immediately west of Albuquerque;
• Nose Rock, Ambrosia Lake and West Largo properties located in the prolific Grants Mineral Belt where much of the uranium produced in the United States over four decades was sourced; and
• Parts of the Santa Fe Railroad minerals rights checkerboard between Grants and Gallup, New Mexico.

Westwater’s holdings in Texas encompass approximately 11,000 acres and include:

• Two processing plants with unlimited licenses to produce uranium; and
• Wellfields in place as well as permits in hand to develop added capacity.

Westwater believes that the uranium business in the United States is producing at what may be an all-time low level, and one that is not capable of satisfying domestic demand for nuclear power. With uranium designated by the Federal Government as a Critical Mineral, this low production level is at odds with the security of the United States – something that is clearly stated in the Government’s position paper. Westwater Resources looks forward to further bulletins from the Administration over coming months as they apply to the uranium business and how the Nuclear Fuel Working group intends to recommend implementation of the program for purchases of uranium for the Uranium Reserve. Westwater stands ready to implement production restart plans as soon as prices support.