LIABILITIES SUBJECT TO COMPROMISE

The following table reflects pre-petition liabilities that were unpaid as of the Petition Date and are subject to compromise (in millions).



	June 30, 2014
Accounts payable and accrued liabilities	$	1.5
3% convertible senior notes and accrued interest (a)	542.8
Convertible preferred stock and paid-in-kind dividends payable (b)	113.9
Liabilities subject to compromise	$	658.2


(a)	Subsequent to the Petition Date, interest is accrued at 3% plus 50 basis points based on the default rate defined in the notes.

(b)

The convertible preferred stock is currently subject to a share issuance limitation. If a share issuance limitation were to exist at the time of share conversion or sale, any preferred stock shares subject to the share issuance limitation would be subject to optional or mandatory redemption for, at USEC's option, cash or SWU consideration. However, USEC’s ability to redeem may be limited by Delaware law and the Bankruptcy Code. Interest on the convertible preferred stock, in the form of dividends payable-in-kind, ceased in connection with the Proposed Plan.

Because of the nature of the proposed reorganization plan which has been filed, USEC has not sought to establish a general bar date for filing proofs of claim or interest. Certain holders of claims or interests may nevertheless elect to file proofs of claim or interest, and USEC reserves the right to object to any such proofs of claim or interest in accordance with the provisions of the Proposed Plan. As of this filing, USEC has reviewed the proofs of claim that have been filed and has determined that while there may be differences between amounts recorded by USEC and proofs of claims filed, the amounts reflected as liabilities subject to compromise properly reflect the pre-petition liabilities that were unpaid as of the Petition Date.

Although there is no general bar date, the following specific bar dates are in effect: (i) damage claims that may be asserted as a result of the rejection of an executory contract may be filed on or before the date that is the first business day that is 30 days after the Bankruptcy Court’s entry of an order authorizing the rejection; and (ii) claims that are based upon or arise from USEC’s common stock (“510(b) Claims”) must have been asserted in a proof of claim received no later than 5:00 pm Eastern Time on August 11, 2014. USEC does not currently contemplate filing any motions to reject executory contracts, but reserves its right to do so. USEC filed objections to the limited number of 510(b) proofs of claim that were filed as the Company does not believe there is any basis for the allowance of any such claims.