Westwater Resources Announces Q2 2023 Business and Financial Updates - Seite 2

Dainen offers high-performance, natural graphite anode materials to leading Japanese manufacturers of automotive lithium-ion batteries. If the parties are able to come to terms on an agreement, Westwater would supply CSPG to Dainen from the Kellyton Plant.

Coosa Graphite Deposit Update

During the second quarter, Westwater began a preliminary economic assessment (“PEA”) for the Coosa Graphite Deposit. The PEA will expand on the Technical Report Summary (“TRS”) that was prepared as an initial assessment in accordance with S-K 1300 and filed with the SEC on Form 8-K on December 6, 2022. The PEA will include an economic assessment based on the TRS and an initial mine plan. Westwater expects to complete and disclose the results of the PEA in the fourth quarter of 2023.

Until the Coosa Graphite Deposit comes online, Westwater believes it has secured sufficient supply of natural graphite concentrate feedstock for the Kellyton Plant pursuant to a supply contract with Syrah Resources Limited.

Construction Financing Update

Westwater continues its efforts to close a financing transaction, to fund the balance of the estimated capital requirements for the initial phase of the Kellyton Plant. “The interest in funding our project remains strong. We are engaged with multiple potential lenders and are in negotiations on deal structure and terms with a subset of those parties,” said Steve Cates, Westwater’s Chief Financial Officer and SVP – Finance. “While the credit markets have been tight in recent months, there are lenders wanting to invest in the energy transition. Based on our lender engagement, we believe finalizing a definitive sales agreement is a critical piece needed to secure the additional funding to complete the initial phase of the Kellyton Plant.”

As of June 30, 2023, Westwater had a cash balance of $17.3 million and spent $107.3 million since beginning construction of the Kellyton Plant. Westwater continues to estimate the total costs of the initial phase of the Kellyton Plant to be $271 million.

Financial Summary

($ in thousands, Except Share and Per Share Amounts)	Q2 2023	Q2 2022	Variance
Net Cash Used in Operations*	$(8,920)	$(5,911)	51%
Net Cash Used in Investing Activities*