Uranium Participation Corp.

Uranium Concentrate Investment

$4.71  -0.05

Operations

Since incorporation to the end of the 2017 fiscal year, the Corporation has completed 10 public offerings with aggregate gross proceeds of raised gross proceeds of $724.6 million. The Corporation has received a further $31.2 million from the exercise of warrants issued under the public offerings and approximately $8.0 million from the exercise of stock options assumed by the Corporation following its acquisition of Uranium Limited (the "UL Acquisition"). Approximately, $13.3 million has been used by the Corporation to purchase its shares under its normal course issuer bids. Also, as part of the UL Acquisition, the Corporation issued 20,624,972 common shares valued at $122.1 million.

As at February 28, 2017, the Corporation holds an aggregate of 10,080,024 pounds of U3O8 and 1,903,471 KgU as UF6 at a total cost of $783.4 million, which represents approximately 90% of the gross proceeds from the offering of securities and warrant and option exercises since inception, less the purchase of its shares under normal course issuer bids.

The Manager has entered into storage agreements on behalf of UPC with three Facilities for the storage of U3O8 and UF6 and all U3O8 and UF6 purchased by the Corporation is book transferred and stored at these Facilities pursuant to such storage agreements. For the storage of U3O8, the Manager has entered into storage contracts with Cameco Corporation, AREVA NC and ConverDyn, in Canada, France and the United States, respectively. For the storage of UF6, the Manager has entered into storage agreements with Eurodif S.A. in France, States Enrichment Corporation and URENCO UK Limited in England, URENCO Deutschland GMBH in Germany, URENCO Nederland BV in the Netherlands, and Louisiana Energy Services, LLC and Westinghouse Electric Company LLC in the United States.

All purchases of uranium are made in U.S. dollars and the storage costs from the Facilities are paid in either U.S. dollars or Euros. The spot price for uranium quoted by Ux Consulting Company LLC ("UxC") is also quoted in U.S. dollars. As a consequence, the activities and the financial results of UPC are directly affected by changes in the relative exchange rates with the Canadian dollar.

 
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