NOTE

: MINERAL RIGHTS AND PROPERTIES

Mineral Rights

January 31, 2019,

we had mineral rights in the States of Arizona, Colorado, New Mexico, Wyoming and Texas, in Canada 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 and titanium. At

January 31, 2019,

annual maintenance payments of approximately

$2,484,000

will be required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

	January 31, 2019			July 31, 2018
Mineral Rights and Properties
Palangana Mine	$	6,285,898		$	6,285,898
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
Anderson Project		3,470,373			9,154,268
Workman Creek Project		649,854			1,657,500
Los Cuatros Project		257,250			257,250
Slick Rock Project		-			646,650
Reno Creek Project		31,527,870			31,527,870
Diabase Project		546,938			546,938
Yuty Project		11,947,144			11,947,144
Oviedo Project		1,133,412			1,133,412
Alto Paraná Titanium Project		1,433,030			1,433,030
Other Property Acquisitions		91,080			91,080
		67,659,501			74,997,692
Accumulated Depletion		(3,929,884	)		(3,929,884	)
		63,729,617			71,067,808

Databases		2,410,038			2,410,038
Accumulated Amortization		(2,408,690	)		(2,405,192	)
		1,348			4,846

Land Use Agreements		404,310			404,310
Accumulated Amortization		(372,166	)		(354,388	)
		32,144			49,922
	$	63,763,109		$	71,122,576

We have

not

established proven or probable reserves, as defined by the SEC under Industry Guide

for any of our mineral projects. We have established the existence of mineralized materials for certain mineral projects, including the 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

six

months ended

January 31, 2019,

we entered into a royalty purchase agreement (the "Royalty Purchase Agreement") with Uranium Royalty Corp. (“URC”), a private entity investing in the uranium sector, in connection with the proposed purchase by URC from our Company of a

one

percent (

) net smelter return royalty (collectively, the "Royalties") for uranium only, on each of our Slick Rock, Workman Creek and Anderson projects. On

December 4, 2018,

we closed the Royalty Purchase Agreement and received

12,000,000

common shares of URC (the “Consideration Shares”) with a fair value of

$9,077,842.

The fair value of Consideration Shares, net of transaction costs of

$55,787,

was allocated to the respective underlying projects based on their identified mineral resources as follows:

Fair value of Consideration Shares	$	9,077,842
Transaction costs		55,787
Net consideration	$	9,022,055

Net consideration allocation to:	Allocation %			Net Consideration Allocation
Anderson Project		63	%	$	5,683,895
Workman Creek Project		12	%		1,082,646
Slick Rock Project		25	%		2,255,514
		100	%	$	9,022,055

The net consideration allocation amounts have reduced the carrying value of the Anderson Project by

$5,683,895,

Workman Creek Project reduced by

$1,082,646

and the Slick Rock Project by

$676,650.

The net consideration of

$2,255,514

allocated to the Slick Rock Project exceeded its carrying value of

$676,650

$1,578,864

which was recorded as a gain on disposition of asset and included in the condensed consolidated statement of operations for the

three

and

six

months ended

January 31, 2019.

During the

six

months ended

January 31, 2019

and

2018,

we continued with reduced operations at the Palangana Mine to capture residual uranium only. As a result,

depletion for the Palangana Mine was recorded on our condensed consolidated financial statements for the

three

and

six

months ended

January 31, 2019

and

2018,

respectively.

Mineral property expenditures incurred by major projects were as follows:

	Three Months Ended January 31,				Six Months Ended January 31,
	2019		2018		2019		2018
Mineral Property Expenditures
Palangana Mine	$	246,592	$	237,215	$	526,624	$	476,530
Goliad Project		19,056		19,899		37,878		42,715
Burke Hollow Project		166,469		83,555		275,014		417,792
Longhorn Project		10,157		3,265		25,533		6,072
Salvo Project		6,702		6,702		13,510		13,636
Anderson Project		15,056		14,572		37,270		30,030
Workman Creek Project		7,673		7,673		15,364		15,955
Slick Rock Project		12,206		14,192		29,430		27,805
Reno Creek Project		147,418		244,982		295,294		968,372
Yuty Project		62,600		134,228		86,003		225,196
Oviedo Project		40,758		19,046		61,483		81,242
Alto Paraná Titanium Project		34,429		74,821		60,262		114,432
Other Mineral Property Expenditures		130,101		120,065		301,795		237,138
	$	899,217	$	980,215	$	1,765,460	$	2,656,915

During the

three

and

six

months ended

January 31, 2018,

and in connection with the acquisition of the Reno Creek Project, we issued

353,160

shares as settlement of the reimbursable expenses totalling

$483,829

which was included in the mineral property expenditures on our condensed consolidated statements of operations for the

six

months ended

January 31, 2018.