News Releases

February 4, 2011

Energy Fuels Inc. (TSX-EFR) (“Energy Fuels” or the “Company“), an advanced uranium and vanadium development company, learned that today, February 4, 2010, Judge James Schum of the State of Colorado District Court in Montrose County denied the legal challenge by Sheep Mountain Alliance of the decision by the Montrose County Board of County Commissioners (Board) to approve the Special Use Permit for the Company’s Piñon Ridge Mill, originally approved on September 30,2009. This ruling will allow for construction to proceed on the mill once all remaining state and federal permits are obtained and a reclamation bond is posted with the State of Colorado.

Energy Fuels received approval from the Colorado Department of Public Health (CDPHE) and Environment for its Radioactive Material License on January 5, 2011. This is the primary permit needed to operate a uranium mill in Colorado. The mill is designed to process 500 tons per day (tpd) of uranium and vanadium ore.

Energy Fuels submitted its application for the Piñon Ridge Mill Special Use Permit in July 2008 for an 880 acre parcel in Paradox Valley on the west end of Montrose County. The county permitting process was extensive and extended over a period of one year and included six public meetings held by the Planning Commission and Board. The project received unanimous approval from all levels of the Montrose County review process including the West End Planning Advisory Committee, the Planning Commission and the Board.

The Sheep Mountain Alliance is a non-governmental organization based in Telluride Colorado, which is located about 55 miles (90 kilometers) from the mill site in San Miguel County. The organization filed an appeal of the Board’s Decision on October 30, 2009 contending that the Montrose County Zoning Resolution prohibits issuance of a special use permit for a uranium mill in an area zoned for General Agriculture and that the county abused its discretion when it approved a 500 tpd mill, as the mill is designed to allow for future expansion to 1,000 tpd. Legal briefs were subsequently filed with the District Court in the fall of 2010. The Court, in its February 4, 2011 order stated “that the recording of the resolution conditionally approving the mill was not an abuse of discretion or unlawful” and “that the Board properly applied the procedural and substantive provisions of the Zoning Resolution.”

Steve Antony, President and CEO of Energy Fuels stated that, “We could not be more pleased with this decision. The Energy Fuels team continues to meet its milestones and deliver on our commitments as we move toward the responsible and safe production of uranium and vanadium in western Colorado.”

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