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 September 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 September 30, 2017 and September 30, 2016:



	Operating Segments					Non-Operating Segments
Three months ended September 30, 2017	Conventional		ISR			Corporate & Other				Total
Revenues
Uranium concentrates	3,497		—			—				3,497
Alternate feed materials processing and other	2,002		—			—				2,002
Total revenues	5,499		—			—				5,499
Costs and expenses applicable to revenues
Costs and expenses applicable to uranium concentrates	1,010		—			—				1,010
Costs and expenses applicable to alternate feed materials and other	1,694		—			—				1,694
Total costs and expenses applicable to revenues	2,704		—			—				2,704
Other operating costs
Impairment of inventories	—		864			—				864
Development, permitting and land holding	1,519		952			—				2,471
Standby costs	89		654			—				743
Abandonment of mineral properties	—		—			—				—
Impairment of assets held for sale	—		200			—				200
Accretion of asset retirement obligation	170		175			—				345
Selling costs	32		—			—				32
Intangible asset amortization	205		—			—				205
General and administration	428		158			2,360				2,946
Total operating loss	352		(3,003		)	(2,360		)	—	(5,011		)

Interest expense	—		—			(562		)		(562		)
Other expense	—		—			689				689
Net loss	$	352	$	(3,003	)	$	(2,233	)		$	(4,884	)
Attributable to shareholders	$	352	$	(2,885	)	$	(2,233	)		$	(4,766	)
Non-controlling interests	—		(118		)	—				$	(118	)
Net loss for the period	$	352	$	(3,003	)	$	(2,233	)		$	(4,884	)



						Non-Operating
	Operating Segments					Segments
Three months ended September 30, 2016	Conventional		ISR			Corporate & Other			Total
Revenues
Uranium concentrates	8,687		—			—			8,687
Alternate feed materials processing and other	15		—			—			15
Total revenues	$	8,702	$	—		$	—		$	8,702
Costs and expenses applicable to revenues
Costs and expenses applicable to uranium concentrates	4,334		—			—			4,334
Costs and expenses applicable to alternate feed materials and other	7		—			—			7
Total costs and expenses applicable to revenues	$	4,341	$	—		$	—		$	4,341
Other operating costs
Impairment of inventories	—		1,379			—			1,379
Development, permitting and land holding	2,527		3,725			—			6,252
Standby costs	260		387			—			647
Abandonment of mineral properties	—		1,005			—			1,005
Accretion of asset retirement obligation	130		45			—			175
Selling costs	47		—			—			47
Intangible asset amortization	583		—			—			583
General and administration	—		437			3,378			3,815
Total operating income (loss)	814		(6,978		)	(3,378		)	(9,542		)

Interest Expense	—		—			(573		)	(573		)
Other income	—		—			1,870			1,870
Net income (loss)	$	814	$	(6,978	)	$	(2,081	)	$	(8,245	)
Attributable to shareholders	$	814	$	(6,809	)	$	(2,081	)	$	(8,076	)
Non-controlling interests	—		(169		)	—			(169		)
Net income (loss) for the period	$	814	$	(6,978	)	$	(2,081	)	$	(8,245	)

The following tables set forth operating results by reportable segment for the nine months ended September 30, 2017 and September 30, 2016:



	Operating Segments						Non-Operating Segments
Nine months ended September 30, 2017	Conventional			ISR			Corporate & Other			Total
Revenues
Uranium concentrates	11,400			10,637			—			22,037
Alternate feed materials processing and other	5,101			—			—			5,101
Total revenues	16,501			10,637			—			27,138
Costs and expenses applicable to revenues
Costs and expenses applicable to uranium concentrates	4,351			7,771			—			12,122
Costs and expenses applicable to alternate feed materials and other	3,724			—			—			3,724
Total costs and expenses applicable to revenues	8,075			7,771			—			15,846
Other operating costs
Impairment of inventories	179			2,642			—			2,821
Development, permitting and land holding	5,476			1,504			—			6,980
Standby costs	734			2,244			—			2,978
Abandonment of mineral properties	—			287			—			287
Impairment of assets held for sale	—			3,799			—			3,799
Accretion of asset retirement obligation	511			525			—			1,036
Selling costs	147			—			—			147
Intangible asset amortization	1,391			1,906			—			3,297
General and administration	1,596			585			8,571			10,752
Total operating loss	(1,608		)	(10,626		)	(8,571		)	(20,805		)

Interest Expense	—			—			(1,607		)	(1,607		)
Other income	—			—			2,452			2,452
Net loss	$	(1,608	)	$	(10,626	)	$	(7,726	)	$	(19,960	)
Attributable to shareholders	$	(1,608	)	$	(10,410	)	$	(7,726	)	$	(19,744	)
Non-controlling interests	—			(216		)	—			(216		)
Net loss for the period	$	(1,608	)	$	(10,626	)	$	(7,726	)	$	(19,960	)