<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>d06420exv99w1.txt
<DESCRIPTION>2ND QUARTER 2003 REPORT
<TEXT>
<PAGE>

                                                                       EXHIBIT 1

REPORT TO SHAREHOLDERS
2ND QUARTER 2003
(U.S. DOLLARS)

         For the first six months of fiscal 2003, International Uranium
Corporation ("IUC" or the "Company") recorded a profit of $5,089,601 ($0.08 per
share) on revenues of $9,091,904, as compared with a net loss of $2,279,472
($0.03 per share) for the first six months of fiscal 2002. These profits are a
result of the current processing campaign at the Company's White Mesa Mill,
which enables the Company to recognize previously recorded deferred revenue as
revenue when the materials are processed. This Mill run has also enabled the
Company to eliminate its working capital deficit and to move to a positive
working capital position of approximately $4.3 million by the end of the second
quarter of fiscal 2003.

         During the quarter, the Company processed an estimated 69,600 tons of
Ashland 1, Linde and Molycorp alternate feed materials, bringing the total
processed for the first six months of fiscal 2003 to over 125,000 tons. In
addition, the Company continued to receive approximately 8,800 tons of alternate
feed material from the Linde project during the quarter. The current processing
campaign will be completed on May 23, 2003, at which time nearly all of the bulk
alternate feed material at the Mill site will have been processed, and the Mill
will be placed on stand-by. While on standby, the Mill will continue to receive
material from the Linde project, as well as minor amounts of additional material
from the Ashland 1 and Heritage sites. The timing of the next mill run will
depend on a number of conditions such as the uranium price, and the amount of
materials that will have been received on site. The Company continues to
aggressively pursue other alternate feed opportunities.

         Last quarter, the Company formed a 50/50 joint venture, Urizon Recovery
Systems, LLC ("Urizon"), with Nuclear Fuel Services, Inc. ("NFS"). The purpose
of Urizon is to pursue a program of reprocessing and recycling surplus nuclear
materials, which are within the U.S. Department of Energy ("DOE") complex. In
early April, NFS submitted a proposal to the DOE for funding the Urizon program,
and in particular, for funding the design, licensing, construction and operation
of a blending facility at NFS' Erwin, Tennessee site. DOE materials will be
blended at that facility into a form of alternate feed material that will be
suitable for processing at the Company's White Mesa Mill. This is an exciting
first step for the Urizon program, and, if successful will enable the venture to
begin detailed engineering and licensing of the blending facility at the NFS
site in the first quarter of fiscal 2004. In addition to supporting NFS in the
preparation of the proposal, the Company continued to make significant progress
on the preparation of its license amendment for processing the blended material
at the Company's White Mesa Mill. This license amendment will be submitted near
the end of the third quarter of fiscal 2003. Review of the license amendment by
the regulatory authorities is anticipated to take six months to a year to
complete.

         With regard to the Moab Tailings Project, the Company was actively
involved in the DOE's public scoping process for the Environmental Impact
Statement ("EIS") for




<PAGE>

the project, which the DOE initiated during the first quarter of this fiscal
year. A number of public scoping meetings were held. In addition, the Company
has prepared an Environmental Report for the DOE to be used in the evaluation of
the White Mesa Mill slurry pipeline transportation system option. The Company is
also working with Pipeline Systems Inc. to refine its detailed cost estimate for
the slurry pipeline, for presentation to the DOE late in the third quarter of
fiscal 2003. Based on discussions to date, the DOE is still on schedule to
produce a draft EIS by January of 2004, with the final EIS expected to be
published by August 2004.

         Throughout the winter months, the Mongolian precious and base metals
exploration program continued, focusing primarily on the analysis of data from
the past year's field program and on the analysis of geophysical data. The
Company is planning an extensive field program this summer on the land areas it
acquired last year. The primary focus will be on the Tsagaan Tolgoi Region in
western Mongolia and the Shiveen Gol copper/gold anomaly. A letter of intent was
signed for the purchase of the Shiveen Gol anomaly with Datsan Trading Company
in the first quarter of this fiscal year. The closing of the purchase of the
Shiveen Gol properties is near completion.

         The Company intends to proceed with its plan to transfer its Mongolian
precious and base metals properties, as well as its 70% interest in the
Gurvan-Saihan Joint Venture to a subsidiary of the Company, which could then be
used as a vehicle to finance the Company's Mongolian exploration program. The
Company had hoped to complete this transfer during the first quarter of 2002;
however, the transfer has been postponed pending improvements in market
conditions.

MANAGEMENT'S DISCUSSION AND ANALYSIS

         The following discussion and analysis of the financial condition and
results of operations for the Company for the period ended March 31, 2003 should
be read in conjunction with the consolidated financial statements and
accompanying notes. The consolidated financial statements are prepared in
accordance with generally accepted accounting principles in Canada.

OVERVIEW

         IUC is incorporated under the Business Corporations Act (Ontario). As
outlined in our 2002 Annual Report, the Company has redefined the focus of its
business activities and is now primarily engaged in the business of recycling
uranium-bearing waste products, referred to as "alternate feed materials," for
the recovery of uranium, alone or in combination with other metals, as an
environmentally preferable alternative to the direct disposal of these waste
products. Alternate feed materials are generally ores or residues from other
processing facilities that contain uranium in quantities or forms that can be
recovered at the Company's White Mesa uranium mill (the "Mill"). While the
Company has had considerable success to date in the development of its alternate
feed business, the Company has not to date developed a sufficient backlog of
alternate feed material to result in sustained profitable operations for the
Company. Developing this


<PAGE>

backlog will be a prerequisite if the Company is to remain profitable and
continue with its pursuit of this business in the future.

         The Company also owns several uranium and uranium/vanadium mines and
exploration properties that have been shut down pending significant improvement
in uranium and vanadium prices. The Company is seeking potential purchasers for
these mining properties and associated mining equipment. In addition, the
Company is engaged in the selling of uranium recovered from these operations in
the international nuclear fuel market and sells vanadium and other metals that
can be produced as a co-product with uranium.

         During fiscal 2002, the Company initiated a precious and base metals
exploration program in Mongolia. The Company is also evaluating other
exploration and development opportunities to expand its project portfolio beyond
uranium and vanadium.

REVENUES

         Alternate feed processing activities during the first six months of
fiscal 2003 consisted of the receipt, sampling, analysis and processing of
Ashland 1, Linde and Molycorp materials. Revenues for the second quarter and
first six months of fiscal 2003 of $4,817,797 and $9,091,904 respectively,
increased $4,670,541 and $8,829,661 as compared to $147,256 and $262,243 for the
comparable periods in fiscal 2002. These increases were due to the continuation
of the alternate feed mill run, which began during the third quarter of fiscal
2002.

         Approximately 27,200 tons of material was received during the first six
months of fiscal 2003 bringing the total received to over 278,425 tons from the
Ashland 1, Linde, Heritage and Molycorp sites. The receipt of material from the
Molycorp site is complete. During the remainder of the fiscal year the Company
anticipates continuing to receive material from the Linde site at the current
rates, as well as small quantities of material from the Ashland 1 and Heritage
sites.

         Tons processed during the first six months of fiscal 2003 are estimated
to be 125,978. As of March 31, 2003, tons processed during this mill run totaled
214,316, leaving approximately 64,100 tons to be processed during the third
quarter of fiscal 2003. The average throughput recognized during fiscal 2003 was
less than that recognized during fiscal 2002 due to winter operating conditions
and other factors.

         The Company receives a recycling fee for a majority of the alternate
feed materials once they are delivered to the Mill. A portion of the fees, equal
to the costs that are incurred receiving materials, is recognized as revenue,
while the remaining recycling fees are recorded as deferred revenue until the
material is processed at which time they are recorded as revenue. In addition to
the recycling fees, the Company will retain the uranium recovered from these
materials, which can be sold in subsequent periods.


<PAGE>

         The Company continues to hold approximately 424,000 pounds of vanadium,
as black flake, and approximately 144,000 pounds of vanadium, as vanadium
pregnant liquor. Throughout the quarter, vanadium prices were at historic lows
of $1.30 to $1.50 per pound V2O5; however, over the past six weeks, vanadium
prices have improved and are currently trading in the range of $2.30 to $2.80
per pound V2O5. The Company is evaluating opportunities to sell its inventory at
these price levels.

COST OF PRODUCTS AND SERVICES SOLD

         Process milling expenditures for the second quarter and first six
months of fiscal 2003 of $1,807,052 and $3,495,021, respectively, which
represent the costs incurred receiving and processing alternate feed materials,
increased $1,647,557 and $3,221,296 as compared to $159,495 and $273,725 for the
comparable periods in fiscal 2002. During the second quarter and first six
months of fiscal 2002 the Company did not process any alternate feed material.

         In addition to FUSRAP (Formerly Utilized Sites Remedial Action Program)
material from the Linde and Ashland 1 sites, the Company continues to receive
deliveries of alternate feed materials from another uranium producer under a
long-term arrangement. While the Company will not receive a processing fee for
this particular alternate feed material it will produce uranium from these
materials, which will then be sold. These materials will not be processed until
the price of uranium strengthens above current levels. As of March 31, 2003,
there were approximately 5,300 tons of these materials at the Mill. Materials
received from other uranium producers or private industry sources tend to be
relatively high in uranium content but relatively small in volume as compared to
FUSRAP materials.

MILL STAND-BY

         Mill stand-by expenses consist primarily of payroll and related
expenses for personnel, parts and supplies, contract services and other overhead
expenditures required to maintain the Mill on stand-by status until a sufficient
stockpile of alternate feed material has been accumulated to justify an
efficient mill run. As the Mill was processing alternate feed material during
the first six months of fiscal 2003, there were no Mill stand-by expenditures.
During the second quarter and first six months of fiscal 2002 the Mill did not
process any alternate feed material, resulting in Mill stand-by expenditures of
$718,099 and $1,377,572 respectively.

SELLING, GENERAL AND ADMINISTRATIVE

         Selling, general and administrative expenses consist primarily of
payroll and related expenses for personnel, legal, contract services and other
overhead expenditures. Selling, general and administrative expenses for the
second quarter and first six months of fiscal 2003 were $414,177 and $1,010,963
respectively. This represents a decrease of $487,099 or 54% and $474,490 or 32%
as compared to expenditure levels of $901,276 and $1,485,453 for the comparable
periods in fiscal 2002. The decreases resulted


<PAGE>

primarily from charging Urizon for services rendered. Pursuant to the Urizon
operating agreement, each member must provide services as specified therein and
charge Urizon for such services. Depending upon the type of services provided by
the members, Urizon reimburses such services to the members either currently
when charged or in the future out of available distributable cash after certain
profit and funding conditions have been satisfied. Selling, general and
administrative expenses before charging Urizon for services rendered were
$1,355,991 for the first six months of fiscal 2003 as compared to $1,485,453 for
the first six months of fiscal 2002.

EXPLORATION

         During the second quarter of fiscal 2002, the Company initiated a
precious and base metals exploration effort in Mongolia. This program is being
funded 100% by the Company, and the Company holds a 100% interest in the lands
that have been licensed for exploration. As of March 31, 2003, the Company had
acquired 54 exploration licenses totaling 3.5 million hectares. Additional
exploration licenses are pending. To date, activities have included land and
data acquisition, geophysical and geochemical analysis and an extensive field
program. Exploration expenditures on these properties during the first six
months of fiscal 2003 were $246,402.

OTHER INCOME AND EXPENSE

         Net interest and other income for the second quarter and first six
months of fiscal 2003 was $235,885 and $441,769 respectively, as compared to
$505,891 and $635,265 for the second quarter and first six months of fiscal
2002. The decrease of $193,496 during the comparable six-month periods was the
result of a decrease in gains on the sale of short-term investments of $215,478
offset by increases in income from equipment sales of $68,433. In addition,
interest income decreased $33,851 during the first six months of fiscal 2003 due
to a decrease in the average cash balances available for investment.

LIQUIDITY AND CAPITAL RESOURCES

         At March 31, 2003, the Company had cash and short-term investments of
$6,278,209 and working capital of $4,325,319 as compared to cash and short-term
investments of $9,759,946 and a working capital deficit of $82,136 at September
30, 2002. The increase of $4,407,455 in working capital was primarily due to the
Company processing alternate feed materials. As the alternate feed materials
were processed, deferred revenue was recorded as revenue, which reduced current
liabilities and assisted in the elimination of the Company's working capital
deficit during the first six months of fiscal 2003. The Company must continue to
generate new sources of alternate feed material to ensure a positive working
capital position in future periods.

         Net cash provided by operating activities was $4,540,838 for the first
six months of fiscal 2003 and consisted primarily of net income from continuing
operations of $5,089,601, adjusted for non-cash items of depreciation of
$347,731, offset by an increase in trade and other receivables of $552,621
reflecting higher receipts of alternate


<PAGE>

feed material and amounts due from Urizon, and decreases in accounts payable and
accrued liabilities of $173,207.

         Net cash used in investment activities was $565,176 for the six months
ended March 31, 2003 and consisted of proceeds from the sale of short-term
investments of $1,377,260, offset by purchases of short-term investments of
$996,675. Restricted investments decreased by $768,550, primarily reflecting the
settlement and termination of the uranium concentrates sale and put option
agreement entered into with a third party. A $1,000,000 bond that secured a
portion of this transaction was released on January 15, 2003. This reduction in
bonding was offset by interest income from restricted investments of $231,450.
In addition, during the six months ended March 31, 2003, the Company invested
$1,500,000 in Urizon.

         Net cash used in financing activities for the six months ended March
31, 2003 totaled $7,198,620 and consisted primarily of a decrease in deferred
revenues of $6,986,357. Deferred revenues represent processing proceeds received
or receivable on delivery of alternate feed materials but in advance of the
required processing activity. As the Ashland 1, Linde, Heritage and Molycorp
materials are processed; the deferred revenue is reclassified as revenue. The
cost of processing these materials is recorded as process milling expenditures
and the Company's cash position is decreased by the cost of processing.

ENVIRONMENTAL RESPONSIBILITY

         The Company reviews the anticipated costs of decommissioning and
reclaiming its Mill and mine sites as part of its environmental planning
process. The Company also formally reviews the Mill's reclamation estimate
annually with the U.S. Nuclear Regulatory Commission. Based on these reviews it
was determined that the Company's estimated reclamation obligation of
$12,320,983 is sufficient to cover these projected future costs. However, there
can be no assurance that the ultimate cost of such reclamation obligations will
not exceed the estimated liability contained in the Company's financial
statements.

         The Company has posted bonds as security for these liabilities and has
deposited cash, cash equivalents and fixed income securities as collateral
against these bonds. At March 31, 2003, the amount of these restricted
investments collateralizing the Company's reclamation obligations was
$11,898,388.

         As mentioned in previous reports, the Company had detected some
chloroform contamination at the Mill site that appeared to have resulted from
the operation of a temporary laboratory facility that was located at the site
prior to and during the construction of the Mill facility, and septic drain
fields that were used for laboratory and sanitary wastes prior to construction
of the Mill's tailings cells. In April 2003, the Company reached agreement with
its regulatory authorities on the classification of the chloroform
contamination. As a result, the Company was able commence an interim remedial
program of pumping the chloroform-contaminated water from the groundwater


<PAGE>

to the Mill's tailings cells. This will enable the Company to begin clean up of
the contaminated areas and to take a further step towards resolution of this
outstanding issue.

RESEARCH AND DEVELOPMENT

         The Company does not have a research and development program per se.
Process development efforts expended in connection with processing alternate
feed materials are included as a cost of processing. Process development efforts
expended in evaluating potential alternate feed materials that are not
ultimately processed at the Mill are included in Mill overhead costs. The
Company does not rely on patents or technological licenses in any significant
way in the conduct of its business.

TREND INFORMATION

         During the period 1997 through 2000, the Company saw a deterioration in
both uranium and vanadium prices, from $11.00 per pound of U3O8 and $4.10 per
pound of V2O5 in October 1997 to $7.40 per pound of U3O8 and $1.70 per pound of
V2O5 at the end of September, 2000. As a result of these decreases in commodity
prices, the Company decided to cease its uranium and uranium/vanadium mining and
exploration activities in 1999, and has shutdown all of its uranium and
uranium/vanadium mines and its Mongolian Uranium Joint Venture pending any
significant improvements in commodity prices. Also as a result of these market
events, the Company decided to marshal its resources to concentrate its
operations primarily on the continuing development of the alternate feed,
uranium-bearing waste recycling business. Although uranium prices have increased
to $11.00 per pound U3O8 as of April 30, 2003, and vanadium is currently trading
in the range of $2.30 to $2.80 per pound V2O5, prices are still too low to
justify the operation of the Company's mines or development of its Mongolian
uranium project.

         Although the Mill's tailings system currently has capacity to process
all of the alternate feed materials under contract with the Company, this
capacity is expected to run out within the next one to three years, depending on
the level of success of the Company in entering into contracts for the
processing of additional feed materials. In order to provide additional tailings
capacity, the Company will have to repair existing tailings Cell No. 4A, at an
estimated cost of $1.5 to $3.0 million. In addition, if Cell No. 4A is put into
use, the reclamation obligation for the Mill would increase by approximately
$1.0 million, which would require an increase in the Mill's reclamation bond by
that amount. The repair of Cell No. 4A will provide the Company with
approximately 2 million tons of additional tailings capacity, which should be
ample capacity for the foreseeable future.

OUTLOOK FOR 2003

         With the formation of the Urizon Joint Venture with Nuclear Fuel
Services Inc., the Company will focus on the preparation and submittal of the
license amendment application and the submittal of a proposal to the U.S.
Department of Energy ("DOE") for funding of this project in the third quarter of
fiscal year 2003. The Company will not


<PAGE>

know the status of either the license amendment or the proposal until the latter
part of fiscal 2003.

         On the Moab Tailings Project, the Company will continue to monitor the
preparation of and provide input into DOE's Environmental Impact Statement for
the Project.

         The White Mesa Mill will continue to process the Ashland 1, Linde and
Heritage alternate feed materials. Based on average throughput rates attained to
date, the mill run will be completed during the third quarter of fiscal 2003.

         Due to depressed uranium and vanadium markets, the Company suspended
all of its U.S. uranium and uranium/vanadium mining activities in 1999. The
Company intends to keep those properties, as well as the Gurvan-Saihan Joint
Venture, in a shutdown status indefinitely, pending any significant improvements
in commodity prices. The Company also continues to seek potential purchasers for
its uranium and uranium/vanadium mining properties and associated mining
equipment.

         For the 2003 exploration season in Mongolia, the Company is planning
ongoing regional base and precious metals exploration in Mongolia while also
undertaking more concentrated exploration on the Companies existing base and
precious metals licenses. Exploration work will consist of detailed mapping,
geochemistry and geophysics, to elevate our best prospects to drill targets. To
fund this program, the Company intends to form a new subsidiary that will hold
the Mongolian precious and base metals exploration properties as well as the
Company's 70% interest in the Gurvan-Saihan Joint Venture. Depending on market
conditions, funds required for future exploration activities in Mongolia may be
raised through private or public offerings of securities of the subsidiary.

RISKS AND UNCERTAINTIES

         Under the NRC's Alternate Feed Guidance, the Mill is required to obtain
a specific license amendment allowing for the processing of each new alternate
feed material. Various third parties have challenged certain of the Mill's
license amendments, although none of such challenges have been successful to
date. The Company intends to continue to defend its positions and the validity
of its license amendments and proposed license amendments. If the Company does
not ultimately prevail in any such actions and any appeals therefrom, the
Company's ability to process certain types of alternate feed materials, in
certain circumstances, may be adversely affected, which could have a significant
impact on the Company.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

         Certain statements contained in the foregoing Management's Discussion
and Analysis and elsewhere in this Report to Shareholders constitute
forward-looking statements. Such forward-looking statements involve a number of
known and unknown


<PAGE>

risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date the statements
were made, and readers are advised to consider such forward-looking statements
in light of the risks set forth below.

         Risk factors that could affect the Company's future results include,
but are not limited to, competition, environmental regulations, reliance on
alternate feed income, the ability to develop the alternate feed business,
changes to reclamation requirements, dependence on a limited number of
customers, volatility and sensitivity to market prices for uranium and vanadium,
the impact of changes in foreign currencies' exchange rates, political risk
arising from operating in Mongolia, changes in government regulation and
policies including trade laws and policies, demand for nuclear power,
replacement of reserves and production, receipt of permits and approvals from
governmental authorities (including amendments for each alternate feed
transaction) and other operating and development risks.



</TEXT>
</DOCUMENT>
