News Releases

August 23, 2011

Energy Fuels Inc. (TSX-EFR) (“Energy Fuels” or the “Company“) announced today that the Radiation Program of the Colorado Department of Public Health and Environment (CDPHE) has approved a request by the Company to defer its remaining financial assurance payments for the Piñon Ridge Uranium and Vanadium Mill until next construction season. This approval is an amendment to the company’s Radioactive Materials License (the “License”). The original payment schedule was based on mill construction starting in September 2011. However, due to ongoing litigation on the License, Energy Fuels will not be able to start construction until at least March 2012.

Steve Antony, President and CEO of Energy Fuels commented, “The deferral of this substantial commitment of capital is very good news for Energy Fuels in light of the expected and ongoing legal processes that are in the hands of the court system. Until we clear the administrative and legal roadblocks currently prohibiting us from beginning construction, there is no reason to tie up these funds in the state treasury. We can put this money to far better use in our consolidation program in the western US.”

The amended License reflects a department-approved financial warranty for decommissioning of the mill in the amount of US$11,070,890, payable on the following schedule:

1. US$1,373,900, which was paid on May 6, 2011;
2. US$2,898,260 due March 7, 2012 or prior to the start of construction, whichever comes first;
3. US$6,401,920 due Sept. 7, 2012 or six months after construction begins, whichever comes first; and
4. US$396,810 due March 7, 2013 or one year after construction begins, whichever comes first.

These amounts are based on detailed cost estimates analyzing a worst-case scenario that assumes a third party must implement the preapproved decommissioning and reclamation plan at no cost to taxpayers. These cost estimates are required to be reviewed annually to ensure sufficient money is in place to protect taxpayers.

In addition to the amounts detailed above, Energy Fuels has previously deposited US$844,400 into the Colorado state treasury to pay for the long-term care of the mill site after decommissioning.

Steve Tarlton, Radiation Program Manager for CDPHE stated that, “It’s important to note that the financial warranty is for decommissioning the mill after operation at the end of its useful life. Because construction has not even begun, delaying these payments poses no liability to the state or the people of Colorado.”

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