NOTE 16:

SUBSEQUENT EVENT

Subsequent to April 30, 2017, on May 9, 2017, our Company entered into a share purchase agreement (the “SPA”) with Pacific Road Capital A Pty Ltd., as trustee for Pacific Road Resources Fund A (“Fund A”), Pacific Road Capital B Pty Ltd., as trustee for Pacific Road Resources Fund B (“Fund B”), and Pacific Road Holdings S.à.r.l. (“Luxco”; and collectively with Fund A and Fund B are referred to as the “Pacific Road Funds”) to acquire from the Pacific Road Funds and Bayswater Holdings Inc.(“BHI”), a wholly-owned subsidiary of Bayswater Uranium Corporation, all of the issued and outstanding shares (the “Purchased Shares”) of Reno Creek Holdings Inc. (“RCHI”) and, indirectly thereby, 100% of its fully permitted Reno Creek in-situ recovery uranium project located in the Powder River Basin, Wyoming.

Pursuant to the terms of the SPA, the closing of the purchase and sale of the Purchased Shares will occur on such day which is five calendar days following the receipt of the U.S. Nuclear Regulatory Agency approval of the change of control of RCHI (the “Closing Date”), or on such earlier or later Closing Date as may be agreed to in advance by the parties, whereby the Company will be required to provide to:

(a)

the Pacific Road Funds, in exchange for 97.27% of the Purchased Shares, the following:

(i)

14,000,000 shares of common stock of our Company (“UEC Shares”);

(ii)

11,000,000 common share purchase warrants of our Company (each, a “Warrant”), with each Warrant entitling the holder to acquire one share of common stock of our Company (a “Warrant Share”) at an exercise price of $2.30 per Warrant Share for a period of five years from the Closing Date. The Warrants contain an accelerator clause which provides that, in the event that the closing price of UEC Shares on its principally traded exchange is equal to or greater than $4.00 per UEC Share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants to within 30 days of the date the holder receives an acceleration notice from the Company; and

(iii)

a 0.5% net profits interest royalty, capped at $2.5 million; and

(b)

BHI, in exchange for 2.73% of the Purchased Shares the following:

(i)

392,927 UEC Shares;

(ii)

308,728 Warrants on the same terms and conditions as the Warrants to be issued to Pacific Road Funds; and

(iii)

at BHI’s election, either (A) a 0.01403% net profits interest royalty, capped at $70,165.50; or (B) $2,807 at the Closing Date.

The Company will be acquiring the 2.73% of the Purchased Shares owned by BHI pursuant to certain ‘drag along’ rights contained in the shareholders agreement between the shareholders of RCHI.