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• ADDENDUM TO PERIvIIT TRANSFER REQ~~FST This Addendum to Permit Transfer Request describes (i) the current status of the bankruptcy proceedings in which affiliates of Energy Fuels Nuclear, Inc. ("ERII'~ have been involved and (ri) the impending sale of the mining properties operated by EFM. As previously reported by EFNI, Energy Fuels, Ltd. ("EFL"), and Energy Fuels Exploration Company ("EFEX") filed voluntary petitions Cor bankruptcy in [he United States Bankruptcy Court Cor the District oC Colorado (the "Bankruptcy Court's in February• of 1995. The bankruptcy f flings were part of a larger bankruptcy case involving Oren L. Benton. EFM did not file a bankruptcy petition and has maintained its operations during the bankruptcy process. EFL, EFEX and EFNI are collectively referred to herein as the "Energy Fuels Companies". In 1996, the mining assets of EFL and EFEX were offered Cor sale in the bankruptcy proceedings. After an extended due diligence and bidding process, a successful bidder was selected and a purchase agreement was entered into between the Energy Fuels Companies and International Uranium Holdings Corporation ("IUH'. EFNI is a party to the purchase agreement since it has acted as the operator of the mining properties that are being sold to IUH. The terms and conditions of the purchase agreement have been approved by an Order of the Bankwptcy Court (the "Sale Order"). Pursuant to the terms of the purchase agreement and Sale Order, EFM is obligated to initiate the transfer of the various permits and licenses it holds to International Uranium (USA) Corporation ("IUC"). IUC is a subsidiary of the purchaser of the assets, IUH. IUC will operate the mining properties for !UH and its subsidiaries and in the course of such operations will be the pernuttee/licettsee. Relevant information cortceming IUC is included in the necessary transfer forms. Under the terms of the purchase agreement, lUH has committed to offer employment with IUC to all current employees of EFM. All the parties to the sales transaction believe that this will greatly facilitate the transition of operations between EFM and [UC. As you might expect, the process of "closing" the sales transaction is very complicated given the requirement that all actions necessary to transfer all properties, permits and other assets from each entity to IUH and IUC occur simtiltaneously. Additionally, the bankruptcy estates, Creditors' committee and a variety of creditors must resolve certain claims at the same "closing". As a part of the closing, permits and licenses for the exploration and mining activities of the Energy Fuels Companies aze to be ttaasferred from EFN to IUC. The liming of the transfer is important since IUH obviously does not want to deliver the ptuchase price until it has received necessary approvals from the various regulatory agencies to operate the properties acrd the sellers do not want to end up with the permits and mo property. At the closing, IUH is obligated to post substitute or replacement stuety bonds for those permits and licenses now held by EFNI which require financial surety. IUH and IUC are in the process of finalivng a bonding line with a major North American bonding company. In the event the final arangements have not been made with this company by closing, IUH will cause a major national bank to issue letters of credit to support the pernvtting/reclamation obligations associated with the various permits and licenses it is acquiring. As the closing is now structured, we are requesting regulatory agencies to approve permit and license transfers under their normal procedures, but add a condition to the approval of transfer which states that the transfer shall be effective o_y upon the receipt by the agency of replacement financial assurance in the form previously agreed upon by IUC and the agency. With the addition