NATURE OF OPERATIONS

12 Months Ended

Jul. 31, 2012

NATURE OF OPERATIONS [Text Block]

NOTE 1: NATURE OF OPERATIONS

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

The Company realized revenue from uranium sales during the fiscal year ended July 31, 2012, however, it has a history of operating losses and significant negative cash flow since inception. Although planned principal operations have commenced and existing cash resources are expected to provide sufficient funds for the next twelve months, future capital expenditures of the Company may be substantial and its continuation as a going concern for a period longer than twelve months will be dependent upon the Company’s ability to obtain adequate financing. Historically, the Company has been reliant primarily on equity financing from the sale of its common shares and this reliance is expected to continue for the foreseeable future. Furthermore, 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. At July 31, 2012, the Company had working capital of $22.5 million and an accumulated deficit of $120.8 million. For the fiscal year ended July 31, 2012 (“Fiscal 2012”), the fiscal year ended July 31, 2011 (“Fiscal 2011”) and the fiscal year ended July 31, 2010 (“Fiscal 2010”), the Company recorded a net loss of $25.1 million, $27.4 million and $14.5 million, respectively.