Westwater Resources Announces Q2 2023 Business and Financial Updates

Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite development company (“Westwater” or the “Company”), is pleased to announce its second quarter results for the quarter ended June 30, 2023 and to provide business and financial updates.

Construction Progress at the Kellyton Plant

During the second quarter of 2023, Westwater continued construction activities at the Kellyton Graphite Processing Plant (“Kellyton Plant”), including the receipt of additional long-lead equipment components, completing the erection of five of six primary plant buildings, and installation of overhead cranes ahead of equipment installation. As of the date of this press release, Westwater has constructed and is currently operating its research and development laboratory (“R&D Lab”). The R&D Lab allows Westwater to continue product development and optimization under the Joint Development Agreement (“JDA”) with SK On, and to perform additional quality control tests. It also affords greater flexibility to optimize future samples in accordance with customer specifications. Further, in August, Westwater began installing spheronizers and shaping mills in its shaping building.

Customer Engagement

As previously announced, Westwater entered into a JDA with SK On, a leading electric vehicle (“EV”) battery manufacturer. Work under the JDA began at the end of the first quarter and continues as the parties work together to ensure that the Coated Spherical Purified Graphite (“CSPG”) planned to be produced at the Kellyton Plant can be used as high-performance anode material for SK On’s batteries.

SK On has provided positive feedback on recent samples produced by Westwater, and the Company plans to supply a mass production sample to SK On later this year. “We are extremely pleased with the significant progress made with SK On under the JDA, and the performance of our product samples,” said Frank Bakker, Westwater’s President and Chief Executive Officer. Westwater is currently negotiating a definitive sales agreement of CSPG with SK On.

Westwater continues to engage with other potential customers. On June 7, 2023, Westwater announced the execution of a letter of intent (“LOI”) with Dainen Material Co., Ltd. (“Dainen”) for the supply and purchase of CSPG. As is standard, the LOI is subject to customary conditions and specifications that will be included in a future definitive agreement.