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anticipates being able to utilize the AMT in commercial production by 2018 and so anticipates resuming production from the Project by 2019 and no later than 2022. In addition to focusing on development of AMT, in November, 2016,the Company signed a letter of intent with Pinon Ridge Corporation (PRC),the owner of the Pinon Ridge Mill license,the area of which is located just 8 miles from the Project. PRC presently contemplates construction of the new mill beginning in 2019. The letter of intent between the Company and PRC calls for PRC to have use of AMT at the proposed Pinon Ridge Mill if required,a supply of post AMT ore from the Company to PRC for uranium and vanadium processing, and a sharing of costs between the Company and PRC for reimbursement of pre-development costs. In partnering with PRC,the Company can continue to develop and license AMT for use at near term assets,decrease capital costs to fund and construct the Pinon Ridge Mill for uranium and vanadium ore processing,and bring the Company's near term uranium and vanadium assets into production for mill feed. The Company has confidence that the uranium commodity price is bound to increase over the next five years. In February, 2017,the Company compiled four(4) recent uranium U308 spot price forecast reports from market analysts,the results of which can be found in Table 1, below. By the end of 2017, the uranium spot price is projected to be between$25 to$40 per pound with an analyst average of $29.85 per pound. By the end of 2022 the price is projected to be from $65 to$70 per pound with an analyst average of$67.50 per pound.The average analyst price is forecast to be back to the June,2012 level,that which EFR originally cited Temporary Cessation, by 2019. U308 Spot Price Forecasts 2017 2018 2019 2020 2021 2022 Cantor Fitzgerald' 28.63 45.00 66.25 Haywood Securities, Inez 25.75 39.25 46.50 54.50 63.75 70.00 RBC Capital Markets3 25.00 35.00 40.00 40.00 45.00 65.00 TD Securities4 40.00 45.00 Average Price(USD/lb) 29.85 41.06 50.92 47.25 54.38 67.50 Table 1: Uranium U308 Spot Price Forecasts, Q1 2017 The Company's current business plan contemplates resumption of production from the Project based upon 1)the construction and start of operations at the Pinon Ridge Mill,the nearby licensed processing facility to be capable of also recovering the valuable vanadium resource of Uravan Mineral Belt ore and 'Cantor Fitzgerald,Sector Update—Quarterly Commodity Outlook,February 6,2017,p. 1 z Haywood Securities Inc.,Metals and Mining—Target&Commodity Price Revisions,January 25,2017,pp. 1&17 3 RBC Capital Markets,Global Metals&Mining 2017 Outlook, December 12,2016, p.43 °TD Securities,Commodities Weekly—Rates,FX,and Commodities Strategy,February 27,2017,p.7 Pinon Ridge Mining, LLC P.O. Box 825 Nucla,CO 81424