NOTE 5:

MINERAL RIGHTS AND PROPERTIES

Mineral Rights

At April 30, 2017, we had mineral rights in the States of Arizona, Colorado, New Mexico and Texas and in the Republic of Paraguay. These mineral rights were acquired through staking, purchase or lease agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium. At April 30, 2017, annual maintenance payments of approximately $1,228,000 will be required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

	April 30, 2017		July 31, 2016
Mineral Rights and Properties
Palangana Mine	$	6,443,028	$	6,443,028
Goliad Project		8,689,127		8,689,127
Burke Hollow Project		1,495,750		1,495,750
Longhorn Project		116,870		116,870
Salvo Project		14,905		14,905
Nichols Project		-		154,774
Anderson Project		9,154,268		9,154,268
Workman Creek Project		1,520,680		1,472,008
Los Cuatros Project		257,250		257,250
Slick Rock Project		615,650		615,650
Yuty Project		11,947,144		11,947,144
Oviedo Project		1,133,412		1,133,412
Other Property Acquisitions		91,080		234,248
		41,479,164		41,728,434
Accumulated Depletion		(3,929,884)		(3,929,884)
		37,549,280		37,798,550

Databases		2,410,038		2,410,038
Accumulated Amortization		(2,388,947)		(2,364,019)
		21,091		46,019

Land Use Agreements		404,310		404,310
Accumulated Amortization		(305,249)		(274,928)
		99,061		129,382
	$	37,669,432	$	37,973,951

We have not established proven or probable reserves, as defined by the SEC under Industry Guide 7, for any of our mineral projects. We have established the existence of mineralized materials for certain uranium projects, including our Palangana Mine. Since we commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

During the nine months ended April 30, 2017, we issued 46,800 restricted shares with a fair value of $48,672 as an advance royalty payment for our Workman Creek Project, which was capitalized as Mineral Rights & Properties on our consolidated balance sheet as at April 30, 2017.

During the nine months ended April 30, 2017, we abandoned our Nichols Project located in Texas and certain non-core mineral interests at projects located in Arizona, Colorado and New Mexico with a combined acquisition cost of $297,942. As a result, an impairment loss on mineral properties of $297,942 was reported on our condensed consolidated statements of operations for the nine months ended April 30, 2017.

During the nine ended April 30, 2016, we abandoned certain mineral interests at the projects located in Colorado and New Mexico with a combined acquisition cost of $86,535. As a result, an impairment loss on mineral properties of $86,535 was reported on our consolidated statement of operations for the nine months ended April 30, 2016.

During the nine months ended April 30, 2016, the asset retirement obligations (“ARO”) of the Palangana Mine were revised due to changes in the estimated timing of restoration and reclamation of the Palangana Mine, resulting in the corresponding mineral rights and properties being reduced by $24,787, and a credit amount of re-valuation of ARO totaling $184,381 being recorded against the mineral property expenditures for the Palangana Mine.

During the three and nine months ended April 30, 2017 and 2016, we continued with reduced operations at our Palangana Mine to capture residual uranium only. As a result, no depletion for the Palangana Mine was recorded on our consolidated financial statements for the three and nine months ended April 30, 2017 and 2016, respectively.

Mineral property expenditures incurred by major projects were as follows:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2017		2016		2017		2016
Mineral Property Expenditures
Palangana Mine	$	239,781	$	280,345	$	625,430	$	1,031,625
Goliad Project		40,295		26,848		90,174		71,679
Burke Hollow Project		288,742		48,409		439,058		974,661
Longhorn Project		23,724		247		24,777		4,620
Salvo Project		6,701		4,622		21,710		21,697
Anderson Project		30,489		3,564		45,993		170,780
Workman Creek Project		7,673		418		23,593		32,109
Slick Rock Project		12,207		-		36,759		53,861
Yuty Project		91,175		89,246		282,887		291,788
Oviedo Project		58,054		136,031		273,124		422,763
Alto Parana Project		95,460		-		618,093		-
Other Mineral Property Expenditures		104,940		136,238		475,207		517,611
Revaluation of Asset Retirement Obligations		-		-		-		(184,381)
	$	999,241	$	725,968	$	2,956,805	$	3,408,813

During the three and nine months ended April 30, 2017, and pursuant to a share purchase and option agreement effective March 4, 2016 to acquire the Alto Parana Project, a titanium project located in the departments of Alto Parana and Canindeyú in the Republic of Paraguay, we recorded total costs of $95,460 and $618,093, respectively, related to maintenance and assessment work required to keep the Alto Parana Project in good standing. Refer to Note 7: Other Long-Term Assets.