News Releases

February 25, 2011

Energy Fuels Inc. (TSX-EFR) (“Energy Fuels” or the “Company“), Energy Fuels Inc. (TSX-EFR) (“Energy Fuels” or the “Company”), an advanced uranium and vanadium development company, announced today that it has filed a preliminary short form prospectus in connection with a best efforts offering (the “Offering”) of units (each, a “Unit”) in the capital of Energy Fuels. Each Unit consists of one common share (a “Common Share”) of the Company and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). The Offering is being made through a syndicate of agents led by Dundee Securities Ltd. and including Haywood Securities Inc., Scotia Capital Inc., Versant Partners Inc., Cormark Securities Inc. and Toll Cross Securities Inc. (collectively, the “Agents”). The Company has granted an over-allotment option (the “Over-Allotment Option”) to the Agents, pursuant to which the Agents may purchase, for a period of 30 days following the closing of this Offering, additional Units (the “Over-Allotment Units”), in a maximum number equal to 15% of the number of Units sold pursuant to the Offering.

Final pricing and determination of the number of Units to be sold pursuant to the Offering will be determined in the context of the market prior to the filing of the final short form prospectus in respect of the Offering. The Units will be offered in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, Canada by way of a short form prospectus.

In consideration for the services to be rendered by the Agents under the Offering, the Agents will receive a cash commission of 7% of the gross proceeds of the Offering (including any Units issued as a result of the exercise of the Over-Allotment Option). The Agents will also receive non transferable compensation warrants (the “Compensation Warrants”) entitling the Agents to purchase, in the aggregate, that number of Common Shares that is equal to 7% of the aggregate number of Units and Over-Allotment Units sold pursuant to the Offering.

The Company intends to use the net proceeds of the Offering to fund ongoing exploration and mine development activities at the Whirlwind and Energy Queen Mines, expansion of mineral resources at currently controlled properties through additional drilling and technical report preparation, continued Colorado Plateau property acquisition, detailed final design engineering for the proposed Piñon Ridge Mill, and for general working capital purposes.

Closing of the Offering is subject to certain conditions including, but not limited to, the execution of a definitive agency agreement with the Agents, receipt of all necessary regulatory and stock exchange approvals including the receipt of listing approval by the Toronto Stock Exchange (“TSX”) for: (i) the Common Shares included in the Units and the Over-Allotment Units, and (ii) the Common Shares issuable pursuant to the exercise of the Warrants included in the Units, the Warrants included in the Over-Allotment Units and the Compensation Warrants. Successful listing of such Common Shares will be subject to the Company fulfilling all of the listing requirements of the TSX.

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any U.S. state securities laws and may not be offered or sold in the United States, absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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