DGAP-News: Uranium Energy Corp Closes US$20 Million Loan Facility

DGAP-News: Uranium Energy Corp Closes US$20 Million Loan Facility

DGAP-News: Uranium Energy Corp. / Key word(s): Miscellaneous
Uranium Energy Corp Closes US$20 Million Loan Facility

31.07.2013 / 14:30


Uranium Energy Corp Closes US$20 Million Loan Facility

July 31, 2013, Corpus Christi, Texas - Uranium Energy Corp (NYSE MKT: UEC,
the 'Company' or 'UEC') is pleased to announce that the Company and certain
of its U.S. subsidiaries have entered into a US$20,000,000 senior secured
Credit Facility with Sprott Resource Lending Partnership and CEF (Capital
Markets) Limited.

Under the Credit Facility the Company has received initial funding in the
amount of US$10,000,000 (the 'Initial Advance'), with an additional
US$5,000,000 available for draw-down by the Company pursuant to a second
advance, and a further additional US$5,000,000 available for draw-down by
the Company pursuant to a third advance, in each case in accordance with
the terms of the Credit Agreement.

Amir Adnani, President and CEO stated: 'Closing of this facility injects
non-dilutive growth capital into the Company while aligning our interest
with two North American and Asian resource investors in Sprott and CEF
Holdings Limited.  As we look to develop strategic ties in Asia, the
fastest growing market for nuclear power, it is important to establish
relations with one of the region's largest conglomerates.'

The Company will use the proceeds of the Credit Facility for the
development, operation and maintenance of its Hobson, Goliad and Palangana
projects and for working capital purposes.

The Credit Facility has a two-year term and bears interest at a rate of 8%
per annum.  The undrawn standby Credit Facility will be subject to a
standby fee of 4.00% per year.

Additionally, the Company will: (a) pay to the Lenders a one-time 4.5% fee
payable in the Company's common shares due 12-months from closing, and (b)
issue to the Lenders, on a pro rata basis, an aggregate of 2,600,000 common
stock purchase warrants (the 'Bonus Warrants'), each exercisable for the
purchase of one common share in the capital of the Company at a price of
US$2.50 for a period of three years following the Initial Advance closing

The Bonus Warrants are subject to accelerated expiry if, at any time prior
to the date of expiry of the Bonus Warrants, the 30-trading-day
volume-weighted average closing price of the Company's common shares on the
NYSE MKT equals or exceeds US$5.00 per share.  In such case, the Bonus
Warrants will expire on the date that is 30 days following the Lender's
receipt of notice of the accelerated expiry date. On the earlier of the
date of repayment of the outstanding principal amount under the Credit
Facility and the first anniversary of the Initial Advance closing date, the
Lenders will also receive, on a pro rata basis, an aggregate fee of
US$150,000, payable at the election of the Lenders in cash or in the number
of common shares determined on the basis of a 10% discount to the
five-trading-day volume-weighted average closing price of the Company's
common shares on the NYSE MKT immediately prior to that date.

The Credit Facility is secured by the Company's Hobson plant and the Goliad
mineral leases and in the event of the advance of the final US$5,000,000,
would be required to be secured by the Palangana mineral leases.

The securities referred to in this news release have not been registered
under the U.S. Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or an applicable exemption
from registration requirements.

About Sprott Resource Lending Corp.

Sprott Resource Lending Corp. is a natural resource lender focused on
providing financing to mining and oil and gas companies. In July 2013,
Sprott Inc. completed the acquisition of Sprott Resource Lending Corp.
which now operates as a subsidiary of Sprott Inc.

About CEF (Capital Markets) Limited

CEF (Capital Markets) Limited is owned by CEF Holdings Limited which is
owned 50% by Cheung Kong (Holdings) Limited and 50% by the Canadian
Imperial Bank of Commerce ('CIBC'). Cheung Kong (Holdings) Limited is the
publicly-listed flagship company of the Cheung Kong Group of companies, the
Hong Kong based multi-national conglomerate with a combined market cap of
the Group in excess of $100 billion as of February 28, 2013.  CIBC is a
leading North American financial institution with operations around the
world.  CEF is an investor in significant resource assets on a global

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.

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

Stock Exchange Information:
Frankfurt Stock Exchange Symbol: U6Z
ISN: US916896103

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

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.

End of Corporate News


31.07.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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