SEGMENT INFORMATION

The Company is engaged in uranium extraction, recovery and sales of uranium from mineral properties and the recycling of uranium bearing materials generated by third parties. As a part of these activities the Company also acquires, explores, evaluates and, if warranted, permits uranium properties. The Company’s primary mining activities are in the United States.

The reportable segments are those operations whose operating results are reviewed by the Chief Executive Officer to make decisions about resources to be allocated to the segment and assess its performance provided those operations pass certain quantitative thresholds. Operations whose revenues, earnings or losses or assets exceed 10% of the total consolidated revenue, earnings or losses or assets are reportable segments. Information about assets and liabilities of the segment has not been provided because the information is not used to assess performance.

In order to determine reportable operating segments, management reviewed various factors, including geographical location and managerial structure. It was determined by management that a reportable operating segment generally consists of an individual property managed by a single general manager and management team. Finance income (expense), other income (expenses) are managed on a consolidated basis and are not allocated to operating segments.

The Company has two operating segments, the conventional uranium recovery segment (the “Conventional Uranium Segment”) and the in-situ uranium recovery segment (the “ISR Uranium Segment”).

Non-mining activities and other operations are reported in Corporate and other.

The Conventional Uranium Segment

The Conventional Uranium Segment consists of a standalone conventional uranium recovery facility (the “White Mesa Mill”), conventional mining projects in the vicinity of the White Mesa Mill located in the Colorado Plateau, Henry Mountains, Arizona Strip, and the Roca Honda Project (“Roca Honda”) in New Mexico, and the Sheep Mountain Project (“Sheep Mountain”) in Wyoming. At June 30, 2017 the conventional mining projects in the vicinity of the White Mesa Mill are on standby, being upgraded and evaluated for continued mining activities and/or in process of being permitted. The White Mesa Mill also processes third party uranium-bearing mineralized materials from mining and recycling activities.

The ISR Uranium Segment

The ISR Uranium Segment consists of an operating uranium recovery facility to recover concentrated uranium from wellfields of the Nichols Ranch Project located in Wyoming and a uranium recovery facility and wellfields maintained on standby as part of the Alta Mesa Project in Texas. The Nichols Ranch Project also includes the Jane Dough property and the Hank Project. Additionally, the segment includes other mineral properties in the vicinity of the Nichols Ranch Project and the Alta Mesa Project. The Nichols Ranch Project and surrounding assets were acquired as part of the Company’s 2015 acquisition of Uranerz Energy Corporation and the Alta Mesa Project was acquired in June of 2016.

The following tables set forth operating results by reportable segment for the three months ended June 30, 2017:



	Operating Segments					Non-Operating Segments
Three months ended June 30, 2017	Conventional		ISR			Corporate & Other				Total
Revenues
Uranium concentrates	4,406		10,637			—				15,043
Alternate feed materials processing and other	2,840		—			—				2,840
Total revenues	7,246		10,637			—				17,883
Costs and expenses applicable to revenues
Costs and expenses applicable to uranium concentrates	1,503		7,771			—				9,274
Costs and expenses applicable to alternate feed materials and other	1,797		—			—				1,797
Total costs and expenses applicable to revenues	3,300		7,771			—				11,071
Other operating costs
Impairment of inventories	179		1,778			—				1,957
Development, permitting and land holding	1,045		141			—				1,186
Standby costs	216		813			—				1,029
Abandonment of mineral properties	—		42			—				42
Impairment of assets held for sale	—		3,599			—				3,599
Accretion of asset retirement obligation	171		175			—				346
Selling costs	45		—			—				45
Intangible asset amortization	981		1,906			—				2,887
General and administration	393		199			2,786				3,378
Total operating loss	916		(5,787		)	(2,786		)	—	(7,657		)

Interest expense	—		—			(503		)		(503		)
Other expense	—		—			3,680				3,680
Net loss	$	916	$	(5,787	)	$	391			$	(4,480	)
Attributable to shareholders	$	916	$	(5,777	)	$	391			$	(4,470	)
Non-controlling interests	—		(10		)	—				$	(10	)
Net loss for the period	$	916	$	(5,787	)	$	391			$	(4,480	)

The following tables set forth operating results by reportable segment for the six months ended June 30, 2017:



	Operating Segments						Non-Operating Segments
Six months ended June 30, 2017	Conventional			ISR			Corporate & Other			Total
Revenues
Uranium concentrates	7,903			10,637			—			18,540
Alternate feed materials processing and other	3,099			—			—			3,099
Total revenues	11,002			10,637			—			21,639
Costs and expenses applicable to revenues
Costs and expenses applicable to uranium concentrates	3,341			7,771			—			11,112
Costs and expenses applicable to alternate feed materials and other	2,030			—			—			2,030
Total costs and expenses applicable to revenues	5,371			7,771			—			13,142
Other operating costs
Impairment of inventories	179			1,778			—			1,957
Development, permitting and land holding	3,957			552			—			4,509
Standby costs	645			1,590			—			2,235
Abandonment of mineral properties	—			287			—			287
Impairment of assets held for sale	—			3,599			—			3,599
Accretion of asset retirement obligation	341			350			—			691
Selling costs	115			—			—			115
Intangible asset amortization	1,186			1,906			—			3,092
General and administration	1,168			427			6,211			7,806
Total operating loss	(1,960		)	(7,623		)	(6,211		)	(15,794		)

Interest Expense	—			—			(1,045		)	(1,045		)
Other income	—			—			1,763			1,763
Net loss	$	(1,960	)	$	(7,623	)	$	(5,493	)	$	(15,076	)
Attributable to shareholders	$	(1,960	)	$	(7,525	)	$	(5,493	)	$	(14,978	)
Non-controlling interests	—			(98		)	—			(98		)
Net loss for the period	$	(1,960	)	$	(7,623	)	$	(5,493	)	$	(15,076	)