Uranium Energy Corp Reports Fiscal 2013 Q2 Production Results and Provides Operations Update

  Uranium Energy Corp Reports Fiscal 2013 Q2 Production Results and Provides
                              Operations Update

PR Newswire

CORPUS CHRISTI, TX, March 12, 2013

NYSE MKT Equities Exchange Symbol - UEC

CORPUS CHRISTI, TX, March 12, 2013 /PRNewswire/ - Uranium Energy Corp (NYSE
MKT: UEC, the "Company") is pleased to report financial and production results
for the second quarter ended January 31, 2013. Major second quarter
highlights include the following:

  *Production Increased During the Quarter: Production from the Palangana
    Mine increased to 48,000 pounds of U[3]O[8 ]compared to 29,000 pounds the
    previous quarter. The startup of Production Area-3 in early December 2012
    provided for stronger production levels during the quarter, especially for
    the month of January. This increase in production has continued into
    fiscal Q3 with 28,000 pounds of U[3]O[8] produced in February 2013;

  *Additional Production Areas at Palangana: Production Area-3 development
    was completed and production commenced in December 2012, with development
    and permitting activities continuing on Production Areas-4 and 5;

  *The Goliad ISR Project is Fully Permitted for Production: In December
    2012, final regulatory authorization was received to initiate production
    at the now fully-permitted Goliad ISR Project. The project is under
    construction with a three-phase electrical power system and a large
    sitepad having been completed. Procurement of processing equipment and
    supplies for the construction of the satellite facility and first
    production area are well underway;

  *Sale of 50,000 Pounds U[3]O[8] Generated Revenues of $2.1 Million: During
    the quarter, the Company sold 50,000 pounds of U[3]O[8] at $42 per pound
    for gross proceeds of $2.1 million, with a cash cost per pound sold of $31
    excluding royalties. Cash cost per pound sold increased due primarily to
    lower production volume, however, rising production levels this quarter
    over the prior quarter areanticipated to reduce cash cost per pound sold
    in future quarters;

  *Cumulative Sales to Date: Cumulative sales of U[3]O[8] since commencement
    of production to January 31, 2013 total 370,000 pounds at a cash cost per
    pound sold of $21 excluding royalties; and

  *The Company's Balance Sheet Remains Strong: As of January 31, 2013, the
    Company had $12.3 million of cash in the treasury and 36,000 pounds of
    U[3]O[8] available for sale in inventory with a market value of
    approximately $1.6 million. The Company is a debt-free, 100%-unhedged
    producer.

Palangana Mine - Production Update

During the six  months ended  January 31,  2013, the  Palangana Mine  produced 
77,000 pounds of  U[3]O[8] from Production  Areas-1, 2 and  3, and the  Hobson 
processing facility processed 83,000 pounds of U[3]O[8]. At January 31, 2013,
the Company had  36,000 pounds of  U[3]O[8] available for  sale in  inventory, 
with a market value of approximately $1.6 million.

With production  continuing at  Production Areas-1  and 2,  Production  Area-3 
commenced production in early December 2012. This resulted in an increase  in 
Palangana Mine production from 29,000 pounds of U[3]O[8] the previous  quarter 
to 48,000 pounds this  quarter, which is anticipated  to reduce cash cost  per 
pound sold  in future  quarters. Development  and permitting  activities  are 
continuing on Production Areas-4 and 5 as described below.

Palangana Mine - Development and Permitting Update

At Production Areas-4 and 5, the Company completed collection of environmental
data to enlarge  its mine area  boundary, aquifer exemption  boundary and  its 
radioactive material license area. Applications to expand the boundaries  are 
planned for calendar Q2 2013.

Production Area-4 monitor well drilling,  baseline sampling and pumping  tests 
have been  completed.  A  Production  Area-4 application  is  expected  to  be 
submitted in calendar Q2 2013.

Goliad ISR Project

The Goliad ISR  Project is now  fully permitted for  production. In  December 
2012, the  Company announced  that the  U.S. Environmental  Protection  Agency 
concurred  with  the  TCEQ  issuance  of  the  Aquifer  Exemption  permit.  A 
three-phase electrical power system for the entire project and a large caliche
sitepad for the main plant complex and disposal well have been  constructed. 
Procurement of long-lead items including processing equipment and supplies for
the construction of the satellite facility  and the first production area  are 
well underway.

Burke Hollow ISR Project Update

At the Burke Hollow Project,  environmental data collection has commenced  and 
will continue throughout  2013. A drainage  study has been  completed and  an 
ecology,  cultural  resource  and  socioeconomic  assessment  is  planned  for 
calendar Q2  2013.  Regional baseline  wells  are also  being  installed  for 
groundwater data collection and permitting work is expected to be ramped up in
calendar Q2 2013.

Further exploration and development drilling is being planned, with permitting
activities already initiated to move the Burke Hollow ISR Project  immediately 
into the  production pipeline,  consistent  with the  Company's  hub-and-spoke 
production model for its South Texas assets.

South Texas Exploration and Development Update

Salvo ISR Project

At the Salvo Project, permits remain  in compliance with the state  regulatory 
agencies, and  restoration of  drill  sites has  been approved  after  regular 
inspections conducted by the Texas Railroad Commission.

A review of  historic and  recent drilling  results completed  by the  Company 
shows  good  potential  for  future  resource  development.  Exploration   and 
delineation drilling  is planned  for the  proposed Production  Area-1 in  the 
future.

Channen Project

At the Channen Project, fourteen widely-spaced exploration holes drilled on  a 
6,400-foot grid  revealed  that at  least  two lower  Goliad  sub-rolls  lying 
between 700 feet to 860  feet in depth exist  on the property. Closer  spaced 
delineation holes reveal that the overall  trend length known to date is  over 
two miles. These drilling results  are being reviewed for future  exploration 
activities in the Channen Project in order to fully identify the extent of the
mineralized zones.

Paraguay ISR Projects

On October 15, 2012, the Company filed on SEDAR an NI 43-101 technical  report 
disclosing an exploration target at its Oviedo Project of 23-56 million pounds
of U[3]O[8] covering  a grade  range of  0.040% to  0.052% U[3]O[8]^(1).  The 
technical report was created  from the results  of the Company's  10,000-meter 
drilling program on its Oviedo Project  and the compilation of historical  and 
other geologic data.  Company geologists  are continuing  to perform  detailed 
radon surveys over anomalous targets  developed through synthesis of  historic 
and current exploration results. Work has continued on the delineation of the
radon anomalies that indicate the potential for shallow uranium mineralization
along basin margins.

The Company's Paraguay  Yuty and Oviedo  Projects, with geology  that is  very 
similar to  that  of  South  Texas,  have  the  potential  to  be  large-scale 
ISR-amenable uranium projects.

Financial Review

The following is  a financial  review of  the Company  for the  three and  six 
months ended January  31, 2013,  and should be  read in  conjunction with  the 
condensed consolidated financial  statements and  management's discussion  and 
analysis as  contained in  the Company's  Form 10-Q  filing available  at  the 
Company's website at www.uraniumenergy.com or on EDGAR at www.sec.gov.

Results of Operations

During the three months ended January  31, 2013, the Company recorded  revenue 
of $2.1 million resulting  from the sale  of 50,000 pounds  of U[3]O[8] at  an 
average sales price of $42 per pound. Cash cost of sales excluding  royalties 
was $1.6 million or $31 per pound sold. Royalties were $0.2 million or $5 per
pound sold and non-cash costs  were $0.3 million or  $6 per pound sold.  Total 
cost of sales was $2.1 million or  $42 per pound sold including royalties  and 
non-cash costs, resulting in a gross profit of $0.01 million.

During the six months ended January 31, 2013, the Company recorded revenue  of 
$4.3 million  resulting from  the sale  of 100,000  pounds of  U[3]O[8] at  an 
average sales price of $43 per pound. Cash cost of sales excluding  royalties 
was $2.8 million or $28 per pound sold. Royalties were $0.5 million or $5 per
pound sold and non-cash costs  were $0.6 million or  $6 per pound sold.  Total 
cost of sales was $3.9 million or  $39 per pound sold including royalties  and 
non-cash costs, resulting in a gross profit of $0.3 million.

During the three  months ended January  31, 2013, the  Company recorded a  net 
loss of $5.6 million or  $0.06 per share (2012 Q2:  $6.5 million or $0.09  per 
share). Expenses totaled  $5.6 million  (2012 Q2: $8.2  million) and  include 
$1.9 million (2012 Q2: $4.2  million) for mineral property expenditures,  $3.3 
million (2012  Q2:  $3.7 million)  for  general and  administrative  and  $0.4 
million (2012 Q2: $0.3 million) for depreciation, amortization and accretion.

During the six months ended January 31, 2013, the Company recorded a net  loss 
of $12.9 million or $0.15 per share (six months ended January 31, 2012:  $12.1 
million or $0.16 per share). Expenses totaled $13.2 million (six months ended
January 31, 2012: $15.1  million) and include $6.3  million (six months  ended 
January 31,  2012:  $6.9  million) for  mineral  property  expenditures,  $6.0 
million (six months  ended January  31, 2012:  $7.6 million)  for general  and 
administrative and  $0.9 million  (six  months ended  January 31,  2012:  $0.6 
million) for depreciation, amortization and accretion.

Liquidity

Net cash used  in operating activities  for the six  months ended January  31, 
2013 was $11.8 million (six months ended January 31, 2012: $10.3 million). Net
cash used in financing  activities for the six  months ended January 31,  2013 
was $0.0 million (six months ended January 31, 2012: $1.4 million). Net  cash 
used in investing  activities for the  six months ended  January 31, 2013  was 
$0.9 million (six months  ended January 31, 2012:  $2.2 million). At  January 
31, 2013,  the Company  had cash  and cash  equivalents of  $12.3 million  and 
working capital of $10.8 million.

Uranium Market Update

During the three months dating from October 31, 2012 through January 31, 2013,
spot uranium prices  strengthened, with a  rise in the  Ux Consulting  "Broker 
Average Price"  from $40.63  per pound  to $44.00  per pound  U[3]O[8].  Spot 
prices were reported within this range  throughout the quarter and have  since 
pulled back to  $42.25 per  pound as  of March  11, 2013.  Meanwhile, the  Ux 
"Long-Term" uranium contract  price dropped $4.00  per pound from  $60 to  $56 
over the period.

Supply-demand fundamentals  contain several  catalysts that  could  strengthen 
prices by the end of the current year. The expiration of the HEU agreement in
2013 will remove  about 24  million pounds  of uranium  from secondary  supply 
annually. The prospects  for a  rise in  near-term demand  improved as  China 
lifted the moratorium on new reactor builds and Prime Minister Shinzo Abe  was 
elected in  Japan near  the  end of  the year.  Globally,  there are  65  new 
reactors currently under construction that should add in excess of 30  million 
pounds of new demand  annually. Compounding the  longer term supply  deficit, 
several major production projects have been delayed or shelved as a result  of 
weak market conditions. Industry analysts estimate uranium prices need to  be 
in the $70-$80 range in order  to spur investment to develop new  conventional 
mining projects.

About Uranium Energy Corp

Uranium Energy  Corp  is  a U.S.-based  uranium  production,  development  and 
exploration company operating  North America's newest  emerging uranium  mine. 
The Company's  fully  licensed and  permitted  Hobson processing  facility  is 
central to all of its projects in South Texas, including the Palangana in-situ
recovery project,  which is  ramping  up initial  production, and  the  Goliad 
in-situ recovery project which is now fully permitted and under construction.
The Company's  operations  are  managed by  professionals  with  a  recognized 
profile for excellence in their industry,  a profile based on many decades  of 
hands-on experience in the key facets of uranium exploration, development  and 
mining.

Stock Exchange Information:
NYSE MKT: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103

Notice to U.S. Investors

The mineral resources  referred to  herein have been  estimated in  accordance 
with the definition standards on  mineral resources of the Canadian  Institute 
of Mining,  Metallurgy and  Petroleum referred  to in  NI 43-101  and are  not 
compliant with U.S.  Securities and Exchange  Commission (the "SEC")  Industry 
Guide 7  guidelines.  In  addition,  measured  mineral  resources,  indicated 
mineral  resources  and  inferred  mineral  resources,  while  recognized  and 
required by Canadian  regulations, are  not defined terms  under SEC  Industry 
Guide 7 and are normally not permitted to be used in reports and  registration 
statements filed with the SEC. Accordingly, we have not reported them in  the 
United States. Investors are cautioned not to  assume that any part or all  of 
the mineral resources in these categories will ever be converted into  mineral 
reserves. These  terms  have  a  great amount  of  uncertainty  as  to  their 
existence, and great uncertainty as to their economic and legal  feasibility. 
In particular, it should be noted that mineral resources which are not mineral
reserves do not have  demonstrated economic viability.  It cannot be  assumed 
that all  or  any  part  of  measured  mineral  resources,  indicated  mineral 
resources or inferred  mineral resources  will ever  be upgraded  to a  higher 
category. In accordance  with Canadian rules,  estimates of inferred  mineral 
resources cannot form  the basis  of feasibility or  other economic  studies. 
Investors are cautioned not to assume  that any part of the reported  measured 
mineral resources, indicated mineral  resources or inferred mineral  resources 
referred to in this news release are economically or legally mineable.

(1) In  the  Company's subject  technical  reports all  tonnages,  grade,  and 
contained pounds for exploration targets should not be construed to reflect  a 
calculated mineral resource (inferred, indicated, or measured). The potential
quantities and grades, as stated in  the technical reports, are conceptual  in 
nature and there  has been insufficient  work to  date to define  a NI  43-101 
compliant resource. Furthermore,  it is uncertain  if additional  exploration 
will result in the discovery of an economic mineral resource on the project.

Safe Harbor Statement

Certain   information   contained   in    this   news   release    constitutes 
"forward-looking statements" as such term is used in applicable United  States 
and  Canadian  laws.  Generally,  these  forward-looking  statements  can  be 
identified by  the use  of forward-looking  terminology such  as "expects"  or 
"does not  expect", "is  expected", "anticipates"  or "does  not  anticipate", 
"plans", "estimates", "intends" or "believes", or that certain actions, events
or results "may", "could",  "would", "might" or "will  be taken", "occur",  or 
"be achieved".

Forward-looking  statements  are  based  on  the  opinions  and  estimates  of 
management as of the date such statements  are made, and are subject to  known 
and unknown risks, uncertainties and other  factors that may cause the  actual 
results, performance or achievements  of UEC to  be materially different  from 
those expressed or implied by such forward-looking statements. Many of  these 
factors are beyond  UEC's ability  to control or  predict. Important  factors 
that may cause actual results to  differ materially and that could impact  UEC 
and the  statements contained  in this  news  release can  be found  in  UEC's 
filings with the  SEC. Such risks  and other factors  include, among  others, 
variations in the  underlying assumptions  associated with  the estimation  or 
realization of  mineralization, the  availability of  financing on  acceptable 
terms, accidents, labor disputes,  acts of God and  other risks of the  mining 
industry including, without limitation, risk of liability under  environmental 
protection legislation, delays in obtaining governmental approvals or permits,
title disputes or claims limitations on insurance coverage. UEC believes that
the expectations reflected in the forward-looking statements included in  this 
news release are  reasonable; however, no  assurance can be  given that  these 
expectations will prove  to be  correct, and  such forward-looking  statements 
should not be unduly relied upon.

For forward-looking statements in this news release, UEC claims the protection
of the safe  harbor for  forward-looking statements contained  in the  Private 
Securities Litigation Reform Act of 1995. UEC assumes no obligation to update
or supplement  any  forward-looking statements  whether  as a  result  of  new 
information, future events or otherwise.



Contact Uranium Energy Corp Investor Relations at:
Toll Free:(866) 748-1030
Fax:(361) 888-5041
E-mail:info@uraniumenergy.com

SOURCE Uranium Energy Corp

Contact:

Contact Uranium Energy Corp Investor Relations at:
Toll Free:(866) 748-1030
Fax:(361) 888-5041
E-mail:info@uraniumenergy.com
 
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