2017-07-21_GENERAL DOCUMENTS - M1997032

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Western Small Miners Associati011 P. 0. Bc,x 644 ,i� �U�IoI`AVAlk \aturita. CO S1422 without basic access today and new Small Modular Reactors, both safer and more efficient,are developed by investors such as Bill Gates and Terrapower. Currently, the U.S. currently imports over 90% of the 2015 Source of Uranium By Origin Country uranium the U.S. uses as fuel for this clean energy.' U,bLv_21 61 Since much of this uranium is imported from nations not particularly fond of the U.S.,this supply reliance has ^Ne4u 16% strategic and national security considerations. This is particularly true in the context of the forecast for supply shortages in the next decade, which is a ba 1p fundamental reason for the consensus forecast of price increases for this mineral. Given the U.S. Department of Energy maintains our nation's strategic uranium reserves through lands and mines throughout the Uravan Mineral Belt and Colorado, WSMA sees Colorado's actions as having national and international implications. Importantly, WSMA believes any discussion of Uravan Mineral Belt mines needs to expand beyond uranium. Vanadium, historic minerals such as radium, and many newly discovered minerals in the area, are all important to consider. Vanadium is the "van" in "Uravan." Vanadium grades roughly average five times the uranium grades,which has led to vanadium being the more valuable mineral at multiple periods throughout the past century. Vanadium is best known and used as an alloy -� providing the strength in high quality steels and aerospace metals. v„ �v�° v2'AP" Two pounds of vanadium added to a ton of steel increases strength two times. Vanadium Redox Batteries, or VRB or flow batteries, are one of the most promising new technologies for e e large-scale grid or facility energy storage. VRB's provide excellent # functional performance in power quality, bridging power, and energy management, all key to enabling renewable energy �-- — production, load leveling and consumer grid independence. Per mineral analyst Roskill, even slight growth in this market "could potentially add tens of kilotonnes of demand to the market."' Roskill's long-term outlook for vanadium prices suggest continued recovery of vanadium pentoxide prices, which have risen from $2.90/lb. in Q1 2016 to over$5.00/lb. in Q1 2017. 5 U.S. Energy Information Administration: Form EIA-858"Uranium Marketing Annual Survey" (2011-15). Uranium purchased by owners and operators of U.S.civilian nuclear power reactors by origin country,total of 56.5 million pounds u3o8 equivalent. 6 http://www.mining.com/web/roskills-long-term-outlook-for-vanadium-prices-suggests-a-recovery-in- prices-is-likely-peaking-around-20192020/