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 controlled partnership (collectively, the “Company”) are engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium and titanium concentrates, on projects located in the United States and Paraguay.

Although planned principal operations have commenced from which significant revenues from sales of uranium concentrates were realized for the fiscal years ended July 31, 2015 (“Fiscal 2015”), 2013 (“Fiscal 2013”) and 2012 (“Fiscal 2012”), the Company has yet to achieve profitability and has had a history of operating losses resulting in an accumulated deficit balance since inception. No revenue from sales of uranium concentrates was realized for the fiscal year ended July 31, 2017 (“Fiscal 2017”), 2016 (“Fiscal 2016”), and 2014 (“Fiscal 2014”) or for any periods prior to Fiscal 2012. Historically, the Company has been reliant primarily on equity financings from the sale of its common stock and, during Fiscal 2014 and 2013, on debt financing in order to fund its operations, and this reliance is expected to continue for the foreseeable future.

On January 20, 2017, the Company completed a public offering of 17,330,836 units at a price of $1.50 per unit for gross proceeds of $26.0 million, which substantially improved the Company’s working capital position. At July 31, 2017, the Company had working capital of $21.1 million including cash and cash equivalents of $12.6 million and short-term investments of $10.0 million. The existing cash resources as at July 31, 2017 are expected to provide sufficient funds to carry out the planned operations for 12 months from the date that the consolidated financial statements are issued. The Company’s continuation as a going concern for a period beyond those 12 months will be dependent upon its ability to obtain adequate additional financing, as the Company’s operations are capital intensive and future capital expenditures are expected to be substantial. The continued operations of the Company, including the recoverability of the carrying values of our assets, are dependent ultimately on the Company’s ability to achieve and maintain profitability and positive cash flow from our operations.