Westwater Resources Announces Q3 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 third quarter results for the quarter ended September 30, 2023, and to provide business and financial updates.

Anticipated 33% Increase in Phase I Planned Production

During the third quarter of 2023, Westwater completed a debottlenecking study with its third-party engineering firm resulting in design changes that are expected to result in an anticipated 33% increase in coated spherical purified graphite (“CSPG”) production for Phase I of the Kellyton Graphite Processing Plant (“Kellyton Plant”). As a result of the study, Westwater now expects to produce 10,000 MT of CSPG annually in Phase I while still remaining within its existing Phase I cost estimate of $271 million. “Increasing expected CSPG production by 33%, while maintaining our estimated budget, is another significant step in improving the economics of the Kellyton Plant,” said Frank Bakker, Westwater’s President and CEO. “Customer engagement and market demand for domestic CSPG remains strong, and we believe moving to 10,000 MT in response to this market demand enhances Westwater’s position as a domestic source of CSPG.”

China to Curb Export of Graphite Products

In October, China announced a new set of export restrictions on certain graphite products beginning December 1, 2023. Chinese exporters will be required to apply for permits to ship two types of graphite material, including “high-purity, high-hardness and high-intensity synthetic graphite material and natural flake graphite and its products.” Nearly 100% of the battery-grade natural graphite materials produced today involve some amount of processing in China. Westwater believes these new export restrictions could increase prices of Chinese graphite materials and could disrupt the global production of electric vehicle (“EV”) batteries.

“This recent announcement by China further exposes the need for the United States to establish a reliable battery-grade supply chain,” said Terence J. Cryan, Westwater’s Executive Chairman. “With the Kellyton Plant, Westwater is committed to leading the domestic solution for a reliable supply of battery-grade graphite materials for the EV market.”

Customer Engagement

As previously announced, Westwater has a Joint Development Agreement (“JDA”) with SK On, a leading EV battery manufacturer. SK On has provided testing feedback for samples produced by Westwater under the JDA. If a supply agreement is executed between the parties, the Company anticipates it would then supply a mass production sample to SK On as part of its formal qualification process.