Uranium remains our top pick while our gold forecast gains some lustre

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1 Equity Research April 28, 2014 Research Update COMMODITY PRICE UPDATE Uranium remains our top pick while our gold forecast gains some lustre Actual Q1/14 Variance Q2/14 Change Q3/14 Change Q4/14 Change Q2/13 Q3/13 Q4/13 Actual Est. % New Old % New Old % New Old % Gold US$/oz 1,417 1,330 1,294 1,294 1, % 1,300 1, % 1,300 1, % 1,275 1, % Silver US$/oz % % % % Uranium Spot US$/lb % % % % Copper US$/lb % % % % FY 2014 Change FY 2015 Change FY 2016 Change FY2017 Change LT Change Actual Old % New Old % New Old % New Old % New Old % Gold US$/oz 1,292 1, % 1,350 1, % 1,350 1, % 1,300 1, % 1,300 1, % Silver US$/oz % % % % % Uranium Spot US$/lb % % % % % Copper US$/lb % % % % % Source: Cantor Fitzgerald Research, Bloomberg, Ux Consulting *Please note that many target prices have changed as a result of our commodity price update. Full details are displayed in exhibit 4. GOLD: ETF BUYING SHOULD RESUME; GEOPOLITICAL TENSIONS LEND SUPPORT We have increased our gold price forecasts for FY 2014 to total $1,292/ounce, representing an increase of 6.5% from our previous forecast, while our FY 2015 forecast has increased by 9.8% to reach $1,350. What underpins our positive revision for gold is that since the beginning of 2013, Gold ETF holdings have fallen dramatically and remain at trough levels. At a beginning of 2013 peak of just under 85.0M ounces, ETF holdings have declined to reach 55.8M ounces presently, representing a decrease of 34%. We believe this is a trough scenario that will begin to reverse itself during the remainder of the year. More telling is that in that over the very same timeframe, silver ETF holdings have increased by 6%, palladium ETF holdings have increased by 32% and platinum ETF holdings have increased by 73% (see exhibit 1). We note that the spot gold price began the began the year on a low of $1,205.90/ounce and subsequently climbed by 15% to reach a 2014 high of $1,382.92/ounce on March 14. Gold has since retreated from that high however by time of publishing remains up by 8% YTD at an even $1,302/ounce. Headwinds for gold since the beginning of the year have been the strong performance by equities which have led to some U.S. Indices reaching record levels. Concerns over potential defaults in China and on-going tensions in Ukraine/Russia continue to support the gold price however. URANIUM: PRICES WILL MAKE A VIOLENT MOVE HIGHER We have long pointed to 2014 as the kick off year for uranium prices to return and for the commodity to retake its position in the spotlight. While uranium equities have shown some strength year to date, we believe there is significant upside remaining as the current spot price of US$31.50/lb remains well below the current marginal cost of production of US$40/lb and significantly below the minimum incentive price for future supply to match future uranium demand (US$70/lb). While uranium prices may remain low due to excess uranium inventories stemming from material earmarked for Japan s 50 reactors not being consumed for the last three years, we believe prices are Rob Chang, MBA Associate: Michael Wichterle, MBA RChang@cantor.com MWichterle@cantor.com (416) (416) Sales/Trading Toronto: (416) , (800) See disclosure and a description of our recommendation structure at the end of this report.

2 set for a violent move higher as Japan is set to restart some reactors this year (we forecast two to six reactors to restart in 2014, with the first announcements to come this summer). Moreover, despite the negative headlines of anti-uranium sentiment we continue to highlight that there are more reactors under construction, planned, and proposed now (555) than since before Fukushima (541). Momentum continues to build in China as the State Energy Commission agreed in mid-april to speed up the approval process for new nuclear power plants. Last year, the Commission gave the green light for two new reactors, with a generating capacity of 2.1Gw. It intends to green-light 8.6Gw this year. Due to our detailed supply and demand forecast, we continue to forecast a significant and dramatic move in the price of uranium in the near term when the price corrects from below the marginal cost of production. We forecast a supply deficit in two of the next five years followed by a large and unavoidable deficit beginning in 2020 as global demand outpaces global supply under the current price environment. Given that it takes 8-10 years for a uranium project to move from greenfield discovery to first production, the fact that 2020 is only five years away means that we will already have a deficit no matter what happens to uranium prices and to mine development plans. Exhibit 1: Precious metal ETF holdings since January 2013 Gold ETF Holdings in ounces Silver ETF Holdings in ounces 90,000,000 80,000,000-34% 700,000, ,000,000 +6% 70,000, ,000,000 60,000, ,000,000 50,000, ,000,000 40,000, ,000,000 30,000,000 1/4/2010 1/4/2011 1/4/2012 1/4/2013 1/4/ ,000,000 1/5/2010 1/5/2011 1/5/2012 1/5/2013 1/5/2014 Platinum ETF Holdings in ounces Palladium ETF Holdings in ounces 3,200,000 2,700,000 2,200,000 1,700, % 2,700,000 2,200,000 1,700, % 1,200,000 1,200, , , ,000 1/5/2010 1/5/2011 1/5/2012 1/5/2013 1/5/ ,000 1/5/2010 1/5/2011 1/5/2012 1/5/2013 1/5/2014 Source: Bloomberg Rob Chang, MBA, (416) of 23

3 Exhibit 2: Reactors under construction, planned, and proposed Proposed Ordered or Planned Under Construction U3O8 Spot Price $ $100 $ $80 $ $62.50 $ $53.00 $ $51.75 $50 $ $40 $34.50 $32.75 $ (Apr) $20 Source: World Nuclear Association, Ux Consulting Rob Chang, MBA, (416) of 23

4 Millions of Lbs. Millions of Lbs. Sector Update April 28, 2014 Exhibit 3: Cantor Fitzgerald Uranium Supply & Demand Forecast A2011A2012A 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E Global Uranium Supply (M lbs U3O8) Global Uranium Demand (M lbs U3O8) Surplus / Deficit A 2011A 2012A 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E Source: World Nuclear Association, Ux Consulting, Cantor Fitzgerald Canada estimates Rob Chang, MBA, (416) of 23

5 TARGET PRICE CHANGES Exhibit 4: Metals & Mining Recommendation and Target Price Changes New Previous Commodity Company Ticker Rating Target Rating Target Target Change Gold Premier Gold Mines PG-TSX; PIRGF-OTO Buy $3.85 Buy $3.85 0% Gold Primero Mining P-TSX; PPP-NYSE Buy $8.65 Buy $9.10-5% Gold Brazil Resources BRI-TSXV; BRIZF:OTCQX Buy $2.70 Not Rated N/A N/A Uranium Cameco Corp. CCO-TSX; CCJ-NYSE Buy $30.70 Buy $ % Uranium Denison Mines DML-TSX; DNN-NYSE Buy (Spec) $2.05 Buy (Spec) $2.10-2% Uranium Energy Fuels EFR-TSX; UUUU-NYSE Buy $13.25 Buy $ % Uranium Fission Uranium Corp. FCU-TSXV; FCUUF-OTCBB Buy (Spec) N/A Buy (Spec) N/A N/A Uranium Kivalliq Energy KIV-TSXV Buy (Spec) $0.30 Buy (Spec) $0.30 0% Uranium Uranerz Energy URZ-TSX; URZ-NYSE Buy $2.10 Buy $2.10 0% Uranium Uranium Energy Corp UEC-NYSE Buy $2.05 Buy $2.10-2% Uranium Uranium Participation Corp. U-TSX; URPTF-OTCBB Buy $6.75 Buy $6.35 6% Uranium Ur-Energy URE-TSX; URG-NYSE Buy $2.80 Buy $2.80 0% Source: Cantor Fitzgerald Canada Rob Chang, MBA, (416) of 23

6 PREMIER GOLD (PG-TSX, PIRGF-OTC, P20-FRANKFURT): BUY, $3.85 MAINTAINED We are maintaining a BUY recommendation and are maintaining our target price of $3.85 per share on Premier Gold Mines. Our target price is based on a 1.0x multiple to our NAV valuation of $3.85 per share. Since our January 3 rd commodity price update, Premier Gold has increased by 34.7% - outperforming spot gold, which increased by 8.0% during the same period. In late January, Premier announced the results from a Preliminary Economic Assessment ( PEA ) for both the Hardrock and Brookbank deposits, while in late February, significant assays were announced, expanding mineralization at the Cove project in Nevada. Hardrock Highlights from the NI compliant PEA for Hardrock include average annual production for the first eight years at Hardrock to total 253,100 ounces, with a 15 year Life of Mine ( LOM ) figure of 202,700 ounces. Initial processing will begin at 10,000 tonnes per day ( TPD ) expanding to 18,000 TPD in year 3. The post-tax NPV5% was found to total $359M given a $1,250/ounce gold price. The post-tax IRR totals 19%. Both figures from the PEA are largely in-line with our estimates published on January 23rd. (After Tax NPV5% of $382M and an IRR of 18%). Note that our economic estimates for Hardrock included a gold price of $1,300/ounce compared with the PEA s baseline estimate of $1,250/ounce. Exhibit 5. Hardrock PEA Production & Economic Highlights PEA Baseline Production Metrics Years 1-8 LOM (Yrs 1-12) LOM (Yrs 1-15) w/o Stockpile Average Annual Gold Production (oz) 253, , ,700 Average Mill Feed Grade (g/t Au) Average Gold Recoveries 90.0% 89.9% 89.6% Total Gold Recovered (oz) 2,025,100 2,786,000 3,041,000 PEA PEA Previous CF Est. PEA Pre-Tax US$1050 US$1250 US$1300 US$1450 IRR (%) 10.30% 23.00% 21.80% 33.60% NPV5% (C$M) Payback (Years) PEA PEA Previous CF Est. PEA After-Tax US$1050 US$1250 US$1300 US$1450 IRR (%) 8.20% 19.00% 18.00% 27.70% NPV5% (C$M) Payback (Years) Exchange Rate C$1.00 = US$ 0.95 Source: Premier Gold, PEA prepared by Stantec Mining, BBA Inc, InnovExplo Inc and Micon Intl. Cantor Fitzgerald Canada estimates Rob Chang, MBA, (416) of 23

7 Note as well that the Hardrock PEA also assumes that only open pit mining will be used for resource extraction. LOM total cash costs are expected to total $652/ounce (all-in sustaining $738/ounce) for the first eight years of production, or $752/ounce (all-in sustaining $789/ounce) for LOM years 1-12 without stockpile. LOM total cash costs are expected to total $652/ounce (all-in sustaining $738/ounce) for the first eight years of production, or $720/ounce (all-in sustaining $789/ounce) for LOM years 1-12 without stockpile. Brookbank Various options were considered for the mining at the satellite Brookbank deposit with the trucking option to Hardrock thus far being the favoured alternative. Using the same gold price assumptions as for Hardrock, a pre-tax IRR of 30.7% was calculated, along with a pre-tax NPV5% of $76M (post-tax, NPV5% of $52M). Exhibit 6. Brookbank PEA Production & Economic Highlights PEA Baseline Production Metrics Years 1-3 ALL LOM Average Annual Gold Production (oz) 29,000 48,700 Average Mill Feed Grade (g/t Au) Average Gold Recoveries 92.0% 92.0% Total Gold Recovered (oz) 87, ,100 Pre-tax US$1050 US$1250 US$1450 IRR (%) 14.00% 30.70% 43.60% NPV5% (C$M) $29 $76 $139 Payback (Years) After-tax US$1050 US$1250 US$1450 IRR (%) 9.40% 24.70% 38.10% NPV5% (C$M) $11 $52 $87 Payback (Years) Exchange Rate CAN$1.00 = US$ 0.95 Source: Premier Gold, PEA prepared by Stantec Mining, BBA Inc, InnovExplo Inc and Micon Intl. Brookbank will not come on-line at the same time as Hardrock. A 2017 start date is more likely for the satellite deposit. Cove On the 19 th of February, Premier Gold announced significant assay results from the company s Cove Gold Project along the Eureka-Battle Trend in Nevada. The results ultimately confirmed multiple zones of gold and poly-metallic mineralization underneath and around the historic Cove open pit mine that point to the potential for a significant resource increase. Highlighted assay results include: Rob Chang, MBA, (416) of 23

8 Cove North Deep ( CND ) Zone o PG-01 highlight results: grams per tonne gold (g/t Au) across 4.5 metres (m) 3.74 g/t Au and g/t Ag across 5.0m 2201 Zone o AX-51 highlight results: g/t Au, g/t Ag, 0.69% Zn, and 0.47% Pb across 10.3m g/t Au, g/t Ag, 0.28% Zn, and 0.07% Pb across 4.1 m g/t Au, g/t Ag, 0.18% Zn and 0.09% Pb across 3.0 m o PG-02 highlight results: 4.75 g/t Au, g/t Ag, 8.24% Zn and 4.43% Pb across 3.0 m g/t Au, g/t Ag, 0.11% Zn and 0.03% Pb across 6.1 m Cove South Deep ( CSD ) Zone o AX-51 highlight results: 5.01 g/t Au across 22.7 m CSD Upper Including 7.34 g/t Au across 4.9 m And g/t Au across 3.5 m o PG-02 highlight results: g/t Au and g/t Ag across 6.7 m CSD Upper Rob Chang, MBA, (416) of 23

9 Exhibit 7: Premier Gold Mines NAV Mining Assets CDN$ 000s Per share TransCanada Project (100%) $329,585 $2.15 Rahill-Bonanza (49%) $75,573 $0.49 Other Properties/Exploration Spend $92,443 $0.60 Sandstorm Gold (SSL-TSX) $27,439 $0.18 Total Mining Assets $525,040 $3.43 Financial Assets CDN$ 000s Per share Cash $52,552 $0.34 Working Capital net of cash $6,198 $0.04 LT Liabilities $3,855 $0.03 Proceeds from ITM Instruments $2,819 $0.02 $65,424 $0.43 Net Asset Value CDN$ $590,464 $3.86 Shares Outstanding (M) 151,496 NAV/sh $3.90 Diluted shares outstanding 153,126 NAV per Diluted share (C$/share) $3.86 Current share price (C$/share) $2.03 Price / NAV 0.53x (1) Corporate adjustments are as of last reported Financial Statements December 31, 2013 Source: Cantor Fitzgerald Canada Estimates, Company Reports PRIMERO MINING (P-TSX, PPP-NYSE): BUY, $8.65 FROM $9.10 (-5%) We are maintaining a BUY recommendation and are lowering our target price to $8.65 per share from $9.10 per share, or by -5%, on Primero Mining. Our target price is based on a 1.0x multiple to our NAV5% valuation of $8.67 per share, which declined from $9.08 per share, or -5%, as a result of Primero s 2014 guidance for its newly acquired Black Fox mine. Exhibit 8. Black Fox Mine Guidance Rob Chang, MBA, (416) of 23

10 Source: Primero Mining Corp. Since our January update, Primero Mining has increased by 50.4% - outperforming spot gold, which increased by 8.0% during the same period. Recently, Primero Mining announced guidance for its newly acquired Black Fox Mine, a producing gold operation as a result of the company s acquisition of Brigus Gold. In mid-march, Primero announced a resource update at San Dimas which was highlighted by both increases in reserves and grades. As at December , the company reported adding 311,000 ounces of gold to the Proven and Probable reserve category at San Dimas, before depleting 102,000 ounces during the year. Gold grades were also noticeably on the rise, increasing from 4.5 g/t as for the year end 2012 mineral estimate, to the current 5.5g/t, representing an increase of 23%. The newly discovered Victoria vein contributed 45,000 ounces in the year end 2012 gold reserve, and through drilling in 2013 has now expanded to 195,000 ounces at a high grade of 11.5 g/t as reported in the update. Note that continued reserve growth will bode well for a possible mill expansion to 3,000 TPD at San Dimas. The current expansion to 2,500 TPD is on track for operations to begin later this quarter. As previously announced for the full year 2014, Primero expects to increase production from San Dimas to between 155,000 and 165,000 gold equivalent ( AuEq ) ounces, representing an increase of 15% from that of full year Rob Chang, MBA, (416) of 23

11 Exhibit 9: Primero Mining NAV Mining Assets $ 000s Per share San Dimas (100%) $1,108,763 $5.92 Cerro Del Gallo (100%) $110,616 $0.59 Black Fox (100%) $90,405 $0.48 Grey Fox (100%) $31,085 $0.17 Total Mining Assets $1,340,870 $7.16 Financial Assets $ 000s Per share Cash $110,711 $0.59 Working Capital net of cash -$5,775 -$0.03 LT Liabilities -$30,944 -$0.17 Proceeds from ITM Instruments $207,403 $1.11 Syndicated Metals (ASX: SMD) (8.3%) $448 $0.00 $281,843 $1.51 Net Asset Value $ $1,622,712 $8.67 Shares Outstanding ('000s) 159,093 NAV/sh $10.20 Diluted shares outstanding 187,161 NAV per share (C$/share) $8.67 Current share price (C$/share) $7.03 Price / NAV 0.81x (1) Corporate adjustments are as of last reported Financial Statements December 31, 2013 Source: Cantor Fitzgerald Canada Estimates, Company Reports BRAZIL RESOURCES (BRI-TSXV): BUY, $2.70 MAINTAINED On February 28, we launched coverage of Brazil Resources, with a target price of $2.70 per share, which represents a 1.0x multiple to our blended NAV valuation. Year to date, the shares have increased by 79.8% while the gold price has advanced by 8.0% With Brazil Resources, we see a track record of resource expansion which has grown from under 1M ounces in 2012 to the current 3.9M ounces as updated on January 21. Exploration upside remains as the 1.54 g/t indicated Au flagship Sao Jorge deposit remains open at depth and in all directions. Moreover, the company is supported by an advisory board consisting of global business and political leaders from Brasilinvest Group. The Group partners with different countries with the goal of promoting Brazilian interests. The Group s founder and chairman, Mario Garnero, is a founding director and sits on the board or BRI. The group owns about 10% of the company. Lastly, Brazil Resources has a 75% ownership stake in the Rea Uranium Project (the balance owned by AREVA) located in the uranium rich Athabasca Basin and near the emerging world class Patterson Lake South project. We expect management to unlock the value of this non-core asset via a spinout or sale. Rob Chang, MBA, (416) of 23

12 Exhibit 10: Brazil Resources NAV Mining Assets CDN$ 000s Per share Comment Sao Jorge (100%) $146,199 $1.70 8% NPV Cachoeira (100%) $42,733 $0.50 In-Situ Valuation ($40/oz Indicated, $20/oz Inferred) Boa Vista (100%) $13,440 $0.16 In-Situ Valuation ($40/oz Indicated, $20/oz Inferred) Surubim (100%) $20,120 $0.23 In-Situ Valuation ($40/oz Indicated, $20/oz Inferred) Rea Uranium Project (100%) $10,000 $0.12 Exploration spend Total Mining Assets $232,493 $2.70 Financial Assets CDN$ 000s Per share Cash $6,626 $0.08 Working Capital net of cash -$8,177 -$0.10 LT Liabilities -$229 -$0.00 Proceeds from ITM Instruments $0 $0.00 -$1,780 -$0.02 Net Asset Value CDN$ $230,713 $2.68 Shares Outstanding (000s) 72,423 NAV/sh $3.19 Diluted shares outstanding 86,000 NAV per Diluted share (C$/share) $2.68 Current share price (C$/share) $0.89 Price / NAV 0.33x (1) Corporate adjustments are as of last reported Financial Statements November 30, 2013 Source: Cantor Fitzgerald Canada Estimates, Company Reports CAMECO CORPORATION (CCO-TSX, CCJ-NYSE): BUY, $30.70 FROM $32.70 (-6%) We are maintaining a BUY recommendation and are slightly decreasing our target price to $30.70 per share from $32.70 per share, or by -6% Our target price is based on the application of a 14x multiple to our forward cash flow forecast of $2.19 per share, which is down 6% from our previous forecast of $2.34 per share. The change primarily stems from the rolling of our valuation model forward a quarter and our reduced short-term uranium price forecast. Since our January 3 update, Cameco shares have increased by 12.3% - outperforming the U 3O 8 spot price, which has declined by 10.0% in the same time frame. Two large company milestones were achieved since the beginning of the year: the sale of Cameco s stake in Bruce Power and the start of production at Cigar Lake. As announced at the end of January, Cameco has sold its 31.6% limited partnership interest in Bruce Power L.P. to BPC Generation Infrastructure Trust ( Borealis ), one of the limited partners in Bruce Power, for $450M. This was a pretty significant corporate move seeing as for a long time, Cameco claimed to have exposure to the full nuclear cycle from production, to refining to power generation. With the sale, not only does Cameco become a more pure play on the mining and refining side, but it saves potentially over $3.0B for refurbishment costs for the Bruce Power reactors. Rob Chang, MBA, (416) of 23

13 Annual U3O8 Production (lbs) Sector Update April 28, 2014 Yet another milestone occurred in mid-march as Cameco announced the start of production at its 50% owned Cigar Lake uranium mining operation located in northern Saskatchewan. After years of delays and mine plan re-engineering, Cigar Lake is finally in production. All mining systems and processing circuits are operational and ore is being transported to the McClean Lake mill. By the end of Q2/14, the mill is expected to begin processing the ore into uranium concentrate. The Cigar Lake operation will be a key production driver going forward for Cameco and is expected to be one of the largest uranium mines in the world. Peak production from Cigar Lake is expected to be 18M lbs annually. Exhibit 11: Cameco Production, Cost, and Realized Price Forecast $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 McArthur River/Key Lake (69.8%) Rabbit Lake (100%) US ISR Inkai (50%) Cigar Lake (50%) Average Realized Price Avg. Unit Cost of Sales (Incl D&A) Source: Cantor Fitzgerald Canada Estimates, Company Reports DENISON MINES (DML-TSX, DNN-NYSE): BUY SPECULATIVE, $2.05 FROM $2.10 (-2%) We are maintaining a BUY (Speculative) recommendation and our slightly reducing our target price to $2.05, from $2.10 per share previously. Out target price is based on a 1.0x multiple to our blended NAV valuation of $2.03 per share. Since our January 3 update, Denison Mines has increased by 23.3% - outperforming the U 3O 8 spot price which declined by 10.0%. Since the beginning of the year, Denison has been successful on both the acquisition front and on the exploration front. In mid March, it was announced that the company had entered into a plan of arrangement to acquire International Enexco s (IEC-TSXV; Not Rated) two uranium properties located in Northern Saskatchewan s Athabasca Basin. The key assets acquired in the all share deal include the Mann Lake project and the Bachmann Lake project. Mann Lake is a 3,407 Ha. property located between McArthur River and Millennium. Cameco (52.5%) and AREVA (17.5%) are IEC s (30%) partners in the project. Bachmann Lake is an 11,419 Ha. property situated adjacent to the Millennium project. IEC owned the remaining 20% not owned by Denison. Rob Chang, MBA, (416) of 23

14 On the exploration front, a new high grade zone was discovered at Wheeler River. In the newly named Gryphon Zone located 3 km north-west of the Phoenix deposit, hole WR-556 at the K North target intersected 9.7% U3O8 over 4.6m using a cut-off grade of 1.0% U3O8. At a lower cut-off grade of 0.1% U3O8, the intercept returned 3.7% U3O8 over 12.6m. In early April a follow-up hole returned 17.3% U3O8 over 4.2m As mentioned during our New York Uranium Conference earlier this month, the McClean Lake Mill expansion has begun with a capacity increase from 13M lbs to 24m lbs per year and is expected to be complete by Just recently, the mill has received initial shipments of Cigar Lake ore. Nine trucks have been received from Cameco and production of yellowcake is expected for July. Between $6-$8M in cash flow is expected from the mill once at full capacity. Denison has a 22.5% ownership stake in the mill. Lastly, management mentioned that the focus is to concentrate on the assets in the Athabasca Basin while spinning out the African assets may potentially occur. (namely Mutanga in Zambia and Falea in Mali). The Mongolian asset may be sold in the next few months. Targeted strategic acquisitions remain on the table. Exhibit 12: Denison Mines NAV Asset Attributable M Lbs U3O8 EV/Lb Value ($M) Per share Ownership Notes Revenue Generating Assets McClean Lake Mill $40.6 $ % 8% Discounted Cash Flow for processing Cigar Lake feed UPC Contract Value $46.9 $0.10 Minimum annual fee at a 5% Discount Rate In-Situ Valuation Falea 76.0 $1.00 $76.0 $ % Mali with Silver and Copper converted to Uranium Equivalent Gurvan Saihan JV 21.8 $1.00 $21.8 $ % Mongolia McClean Lake Deposits 5.9 $12.00 $71.4 $ % McLean Lake, McLean Lake North, & Sue D; Areva 70% & OURD 7.5% Midwest 13.4 $12.00 $161.3 $ % Areva 69.16% & OURD 5.67%; Development on hold reviewed every 6 mont Mutanga 49.2 $1.00 $49.2 $ % Zambia Waterbury Lake 7.7 $12.00 $92.2 $ % 40% KEPCO Wheeler River Project 35.9 $12.00 $431.3 $ % Cameco 30% & JCU 10% Other Assets Working Capital Net of Cash -$42.6 -$0.09 As of Q4/13 Financials Long-Term Cash Equivalent Investments $8.2 $0.02 Cash + proceeds from options and warrants $47.5 $0.10 As of Q4/13 Financials Valuation $1,003.7 $2.03 Source: Cantor Fitzgerald Canada Estimates, Company Reports ENERGY FUELS (EFR-TSX, UUUU-NYSE): BUY, $13.25 FROM $13.35 (-1%) We are maintaining our BUY recommendation and are slightly lowering our target price to $13.25, from $13.35 previously, on Energy Fuels due to a modest reduction in our near-term uranium price forecast. Our target price is based on a 1.0x multiple to our blended NAV valuation of $13.26 per share. Since our January 3 update, Energy Fuels has increased by 54.0% - outperforming the U 3O 8 spot price which declined by 10.0%. In April, Energy Fuels announced operational highlights for the 15-month period ending 2013 which included production at the White Mesa mill of 1.235M lbs. U 3O 8 from both conventional and alternate feed. The mill also Rob Chang, MBA, (416) of 23

15 produced 1.537m lbs. of vanadium (V 2O 5). Revenues for the period totaled $73.3M. Energy Fuels continues to position itself to realize economic benefits of anticipated improvements in the price of U3O8, through select development and permitting expenditures along with care & maintenance initiatives. As of December 31, 2013, EFR held 452,000 lbs of U3O8 in inventory. The current long-term supply contracts in place will equate to an average realized price of $58.42/lb for FY2014. We note as well that as announced on April 23rd, Energy Fuels announced that it has revised its previously announced guidance and now expects to continue mining at its wholly owned Pinenut Mine through 2014 and into the 1 st quarter of 2015 due to favorable mining conditions. As a result of favorable mining conditions and lower than expected costs, an additional 250,000 lbs of uranium will be mined and stockpiled on surface until the 1 st quarter of 2015, at which point the economic uranium resource of the mine will be fully depleted. Exhibit 13: Energy Fuels NAV Energy Fuels Projects NAV $000s Per Share Comment White Mesa Mill and EFR's Uranium Mines/Projects Virginia Energy (VUI-TSXV) 16.5% 190,784 $ % Discount Rate Source: Cantor Fitzgerald Canada Estimates, Company Reports 680 $ % of the market value for conservatism Mega Uranium (MGA-TSX) 322 $ % of the market value for conservatism Cash 17,404 $1.06 Cash + Recent Financing Working Capital (Net of Cash) 15,092 $0.92 As of most recent quarter Total 224,281 $13.26 FISSION URANIUM (FCU-TSXV, FCUUF-OTCBB): BUY SPECULATIVE We are maintaining our BUY (Speculative) recommendation on Fission Uranium. Since our January 3 update, Fission Uranium has advanced by 23.8% - outperforming the U 3O 8 spot price which declined by 10.0%. Fission Uranium announced on April 24 th that its $12M, 2014 winter delineation drilling program has been complete, however full assay results for all 82 drill holes will still be forthcoming. The winter drilling campaign was successful in that numerous milestones were achieved, most notably with the creation of an all encompassing R780E zone which was the result of the merger of zones R390E, R585E, R780E and R945E. The newly merged R780E zone has a strike length which increased by over 135% to 855m compared to the length defined in Moreover, just earlier on April 22 nd, the second best assay result ever was reported for a hole on the PLS property. Hole PLS encountered intermittent mineralization 58.5m down hole and continuous mineralization Rob Chang, MBA, (416) of 23

16 beginning at 63.0m. A total of 102.5m of continuous mineralization was encountered at a grade of 5.98% U 3O 8, which is the widest interval to date ever encountered at PLS. Lastly, we highlight the discovery last month of the furthest zone from the initial discovery hole, Zone R1620E represents the eastern most frontier. Thus far, two drillholes have encountered mineralization, which will warrant additional follow-up drilling. During our uranium conference in New York City, management mentioned that they hope to have an initial NI compliant resource by December. Exhibit 14: Fission Uranium Valuation Sensitivities Source: Cantor Fitzgerald Canada Estimates Fission Per Share Valuation Sensitivities Potential Resource $7.50 $9.00 $10.00 $ M Lbs $0.20 $0.23 $0.26 $ M Lbs $0.49 $0.59 $0.65 $ M Lbs $0.98 $1.17 $1.30 $ M Lbs $1.17 $1.41 $1.56 $ M Lbs $1.46 $1.76 $1.95 $ M Lbs $1.95 $2.34 $2.60 $ M Lbs $2.44 $2.93 $3.25 $3.58 Cantor Estimate of 68M lbs $1.32 $1.59 $1.76 $1.94 Cantor High End Estimate of 100M lbs $1.94 $2.33 $2.59 $2.85 KIVALIQ ENERGY (KIV-TSXV): BUY SPECULATIVE, $0.30 MAINTAINED We are maintaining a BUY (Speculative) recommendation and are maintaining our target price of $0.30 per share on Kivalliq Energy. The target price is based on applying a more conservative $1.00/lb multiple on the in-situ resource and potential resource sizes for Angilak. While Angilak remains as one of the highest grade uranium projects in the world, we are applying a reduced valuation multiple to reflect the current market sentiment for junior mining projects. Since our January 3 update, Kivalliq has advanced by 12.2% - outperforming the U 3O 8 spot price which declined by 10.0% during the same period. Rob Chang, MBA, (416) of 23

17 Exhibit 15: Valuation based on three resource size scenarios at Angilak Resource Size Weight Valuation Blended Vaulation 43 M lbs (current) 60% $0.23 $ M lbs 30% $0.32 $ M lbs 10% $0.42 $ % $0.27 Cash $2.20 $0.01 Working Capital (less cash) ($3.68) ($0.02) Valuation $0.27 Source: Cantor Fitzgerald Canada Estimates UR-ENERGY (URE-TSX, URG-NYSE): BUY, $2.80 MAINTAINED We are maintaining a BUY recommendation and are maintaining our target price of $2.80 per share on Ur-Energy. Out target price is based on a 1.0x multiple to our blended NAV valuation of $2.79 per share. Since our January 3 update, Ur-Energy has decreased by 2.7% - outperforming the U 3O 8 spot price which declined by 10.0% during the same period. Ur-Energy s management re-iterated FY2014 production guidance of approximately 1M lbs. U3O8. This has been followed up with positive Q operational data (announced on April 22) in which average daily production was higher (2,206lbs U3O8/day compared to 1,535 lbs the previous quarter) largely due to head grades which remain high and average flow rates which remain high as well (1,103 gallons per minute gpm this past quarter, compared to 694 gpm in the previous quarter). During Q1, we note that 198,573 lbs. were captured at Lost Creek, of which 171,233 lbs. were packaged in drums, and 110,000 lbs. were sold. Extrapolated over the course of a year, this production rate translates into an annualized figure of approximately 805,000 lbs. The average realized contract price of $61.12/lb. was slightly higher than our originally estimated $60.00/lb. We also note that there has been some market chatter regarding water disposal issues at Lost Creek and concerns that the operation may not meet its production forecast due to it. We have discussed this matter in depth with management and have learned that it was a self-reported item to the Nuclear Regulatory Commission (discovered during a Department of Environmental Quality inspection), that the plant held notably reduced flow rates for about three weeks in April, and that steps were taken to significantly reduce the amount of waste water produced to the point where management is confident that it is not an issue. Given that the plant is licensed to operate at 6,000 gpm and has operated well below that amount, as it ramps up (and issues like these are ramp up issues), we are comfortable that UR-Energy has sufficient room to increase flow rates to catch up to guided production should it need to. We Rob Chang, MBA, (416) of 23

18 did confirm with management that the current water disposal system can handle the expected waste water from a plant running at capacity. Exhibit 16: UR-Energy NAV Source: Cantor Fitzgerald Canada Estimates, Company Reports URANERZ ENERGY (URZ-TSX, URZ-NYSE): BUY, $2.10 MAINTAINED We are maintaining a BUY recommendation and target price of $2.10 per share on Uranerz Energy. Our target price is based on a 1.0x multiple to our NAV10% valuation of $2.12 Since our January 3 update, Uranerz has increased by 33.3% - outperforming the U 3O 8 spot price which declined by 10.0% during the same period. In mid-april Uranerz officially received final approval from the Nuclear Regulatory Commission NRC and has officially begun uranium mining operations at its 100%-owned Nichols Ranch uranium in-situ recovery project located in the Powder River Basin in Wyoming. Note that this regulatory approval was the final item required prior to commencement of operations. Prior to the receipt of this license, the plant was circulating water to troubleshoot and maintain the facility in a ready-to-go state. We forecast production of over 580,000 lbs. of U 3O 8 in 2014 with an average cash cost of $26.44/lb. Note that the company has three uranium off-take agreements with two major U.S. nuclear operators, including Exelon which operates the largest nuclear fleet in the country and the third largest fleet in the world. All agreements are longterm contracts with deliveries over four to five year periods for a portion of planned production. The contracts include: two with fixed escalating prices, and the other uses a combination of spot and fixed prices with a floor and a ceiling. Exhibit 17: Uranerz Energy NAV UR-Energy Projects NAV Per Share Comment Lost Creek $196.8 $ % Discount Rate Pathfinder $50.7 $ % Discount Rate Lost Soldier $146.6 $ % Discount Rate Debt -$27.8 -$0.20 PV of LT 10% Discount Rate Working Capital $18.7 $0.14 Q4/13 Financials + Cash Proceeds from ITM Options Total $2.79 Uranerz Energy Projects NAV Per Share Comment Nichols Ranch, Hank, Jane Dough and Reno Creek Source: Cantor Fitzgerald Canada Estimates, Company Reports $ % Discount Rate Working Capital 13.6 $0.16 Q4/13 Financials Total $2.12 Rob Chang, MBA, (416) of 23

19 URANIUM ENERGY CORP. (UEC-NYSE): BUY, $2.05 FROM $2.10 (-2%) We are slightly reducing our target price to $2.05 per share based on our reduced near-term price forecasts for uranium. Our target price is based on a 1.0x multiple to our blended NAV valuation of $2.04 per share. Since our January 3 update, Uranium Energy Corp has decreased by 45.3% - dramatically underperforming the U 3O 8 spot price which declined by 10.0% in the same time frame. On April 22 nd, UEC announced a positive Preliminary Economic Assessment ( PEA ) for its Slick Rock uranium/vanadium project located in San Miguel County, Colorado. Prepared in accordance to NI criteria, highlights from the technical report include a project pre-tax Internal Rate of Return ( IRR ) of 33% and a post-tax IRR of 29% and pre-tax Net Present Value ( NPV ), at a discount rate of 10%, of $43.8 million and a post-tax NPV of $31.9 million. These figures are based on a uranium spot price of $60/lb and a vanadium spot price of $10/lb. The PEA assumes the sale of mined product to Energy Fuel s (EFR-TSX, UUUU-NYSE, BUY; Target C$13.35) White Mesa mill located in Blanding, Utah. Operating costs are assumed to total $67.78/tonne. Additionally, in the PEA, it is estimated that an average of 438,000 lbs of uranium along with 2.6M lbs of vanadium will be produced per year, over an estimated mine life of over 21 years. Lastly, we note that in March, UEC announced the receipt of a $10M credit facility injection which was facilitated by both Sprott Resource Lending Partnership and CEF Capital Markets Ltd. who will continue to support UEC as the company ramps production going forward. The capital will be directed primarily to the Goliad project and new production areas at Palangana. We note that the third asset in the development pipeline remains the Burke Hollow project. Slick Rock, not being an ISR project, is further below the project pipeline. Rob Chang, MBA, (416) of 23

20 Exhibit 18: UEC NAV Uranium Energy Corp. Projects NAV Per Share Comment Palangana 20,768,933 $0.21 8% NPV Goliad 125,849,130 $ % NPV Burke Hollow 12,403,533 $ % NPV Salvo 2,839,000 $0.03 $1.0/lb In-situ Valuation Nichols 1,307,000 $0.01 $1.0/lb In-situ Valuation Yuty 5,570,000 $0.06 $1.0/lb In-situ Valuation Anderson 29,000,000 $0.30 $1.0/lb In-situ Valuation Workman Creek 5,542,000 $0.06 $1.0/lb In-situ Valuation Working Capital (net of cash) (5,957,182) ($0.06) Fiscal Q1/2014 NPV of Debt (16,574,733) ($0.17) Fiscal Q1/2014 Cash 19,033,946 $0.19 Fiscal Q1/2014 Total 199,781,626 $2.04 NAV Multiple 1.0 Target Price $2.05 Source: Cantor Fitzgerald Canada Estimates, Company Reports URANIUM PARTICIPATION (U-TSX, URPTF-OTC): BUY, $6.75 FROM $6.35 (+6%) We are maintaining a BUY recommendation and are increasing our target price to $6.75 per share on Uranium Participation Corp. The increase is based on the rolling forward of our forward four quarter uranium price deck, which captures a higher price forecast. Our target price is based on a 1.0x multiple to our portfolio NAV of $6.74/share for Uranium Participation Corp. The portfolio NAV is derived from the application of an average U 3O 8 spot price of $45.88/lb and a UF 6 price of $137.63/kg to the portfolio. Our revised prices are based on a rolling forward four-quarter average. Since our January 3 update, Uranium Participation has decreased by 6.2% - outperforming the U 3O 8 spot price which declined by 10.0% in the same time frame. Rob Chang, MBA, (416) of 23

21 Exhibit 19: Uranium Participation Corp Valuation Valuation Forecast Cantor Forecast Cantor Forecast Market Value Units Quantity Cost USD CAD CAD U3O8 lb 8,076, ,531 $45.88 $ ,504 UF6 kg 2,153, ,357 $ $ , , ,256 Net Working Capital 52,362 NAV 787,618 Shares O/S 116,872,913 NAVPS $6.74 Source: Cantor Fitzgerald Canada Estimates, Company Reports During our uranium conference, Ron Hochstein, UPC s President, mentioned that the company will be looking to sell down its inventory of UF6. Though no timetable has been given on that transaction, note that the company currently has 2.153M KgU of uranium hexafluoride (UF6) in inventory. Moreover, it was also mentioned that despite still being in the market for additional uranium purchases (by early April, UPC was only 65% done buying), the current Board is looking at possibilities to strategically sell as well. Note that since the last NAV update, the uranium oxide (U3O8) in inventory has increased by 250,000 lbs. When pressed for details on potential uranium sales, Mr. Hochstein noted that the Board consideration of sales is proactive and does not indicate any intention to sell at the current time. The topic of discussing uranium sales appeared more to be in preparation for the need to do so in the future for UPC rather than indicative of a change in management s view. It should be noted that UPC has never sold uranium from its portfolio. With the compelling supply and demand backdrop for uranium continuing, we believe Uranium Participation provides investors with the upside of the pending rise in uranium price without operational risks. We remind our readers that the current low price environment is unsustainable. As noted in the exhibit below, the $31.50/lb spot price is below our forecast global marginal cost of production and below or near the 2014 expected cost profiles of several publicly traded producers. Rob Chang, MBA, (416) of 23

22 Exhibit 20: Uranium Cost Curve $60 $55 $50 $45 $47.00 US$/Lb U3O8 $40 $35 $36.52 $40.00 $32.75 $30 $25 $26.44 $26.67 $27.31 $27.50 $20.90 $20 $17.00 $15 $10 Uranium One (Private) Ur-Energy Uranerz Energy Cameco Uranium Energy Corp Paladin Energy (Langer Heinrich) Energy Fuels Global Marginal Cost of Production 2014e Cash Cost Per Lb U3O8 Spot Price U3O8 Term Price Source: Cantor Fitzgerald Canada Estimates, Company Reports Rob Chang, MBA, (416) of 23

23 DISCLAIMERS AND DISCLOSURES Disclaimers The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Inc. ( Cantor ) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Cantor that is not herein. This report is provided, for informational purposes only, to institutional investor clients of Cantor Fitzgerald Inc. 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This report has been prepared in whole or in part by research analysts employed by non-us affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States. These non-us research analysts are not registered as associated persons of Cantor Fitzgerald & Co. and are not licensed or qualified as research analysts with FINRA or any other US regulatory authority and, accordingly, may not be subject (among other things) to FINRA s restrictions regarding communications by a research analyst with a subject company, public appearances by research analysts, and trading securities held by a research analyst account. Potential conflicts of interest The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. Disclosures as of April 28, 2014 Cantor has provided investment banking services or received investment banking related compensation from Energy Fuels, Fission Uranium, and Uranerz Energy within the past 12 months. The analysts responsible for this research report have, either directly or indirectly, a long or short position in the shares or options of Ur-Energy, Fission Uranium, Energy Fuels, Denison Mines, and Cameco. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of Premier Gold Mines, Primero Mining, Uranium Participation, Kivalliq Energy, Uranium Energy Corp, or Uranerz Energy. The analyst responsible for this report has visited the material operations of all companies. No payment or reimbursement was received for the related travel costs. Analyst certification The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein. Definitions of recommendations BUY: The stock is attractively priced relative to the company s fundamentals and we expect it to appreciate significantly from the current price over the next 6 to 12 months. BUY (Speculative): The stock is attractively priced relative to the company s fundamentals, however investment in the security carries a higher degree of risk. HOLD: The stock is fairly valued, lacks a near term catalyst, or its execution risk is such that we expect it to trade within a narrow range of the current price in the next 6 to 12 months. The longer term fundamental value of the company may be materially higher, but certain milestones/catalysts have yet to be fully realized. SELL: The stock is overpriced relative to the company s fundamentals, and we expect it to decline from the current price over the next 6 to 12 months. TENDER: We believe the offer price by the acquirer is fair and thus recommend investors tender their shares to the offer. UNDER REVIEW: We are temporarily placing our recommendation under review until further information is disclosed. Member-Canadian Investor Protection Fund. Customers' accounts are protected by the Canadian Investor Protection Fund within specified limits. A brochure describing the nature and limits of coverage is available upon request Rob Chang, MBA, (416) of 23