Westwater Resources, Inc. (NYSE American: WWR), an explorer and developer of U.S.-based mineral resources essential to green energy production, today announced an update on its first-of-its-kind graphite processing plant in Alabama and its second quarter results for the period ended June 30, 2021.

On June 22, 2021 Westwater entered into an incentive package with the State of Alabama and local municipalities to locate the site of the Company’s graphite processing facility in Coosa County, Alabama. The agreement provides certain tax credits and incentives which are estimated by the State of Alabama to be valued at $36M. Westwater has also entered into a land lease agreement for approximately 70 acres to construct its commercial graphite processing facility, with an option to purchase the land during the term of the lease.

As previously reported, Westwater has entered into an agreement with Samuel Engineering, Inc. for a Definitive Feasibility Study on the Coosa Graphite Processing Facility. The study will address location, raw material, product quality and infrastructure, and will provide cost estimates for the Coosa facility. Samuel Engineering, Inc. will also provide design and drawings. Westwater anticipates receipt of the report by the end of the third quarter.

Westwater’s graphite and vanadium exploration program began in April 2021 and is expected to continue throughout the remainder of the year. The scope of this program includes core drilling, the evaluation of extractive techniques and the expansion of general knowledge of the minerals on the property.

“The second quarter of 2021 has been extremely successful for our Company, and we reached a number of key goals required to produce our battery-grade graphite products for an energy-dependent world,” said Chris Jones, CEO of Westwater. “During the quarter we continued and are nearing completion of our pilot program in various locations in Germany and the USA, and the combined effort has produced approximately 13 metric tonnes of our three battery-grade graphite products.”

“We are now listed on the NYSE American and we were added to the Russell Microcap Index,” Mr. Jones added. “Our Russell membership remains in place for one year and gives us automatic inclusion in the appropriate growth and value style indexes.”

After a comprehensive search process, Westwater hired Chad Potter as Chief Operating Officer, who began working with the Westwater team on August 2, 2021. Mr. Potter will lead Westwater’s construction, development and future operations of its commercial graphite processing facility and mine.

“With the addition of Chad Potter to our roster, I believe we have one of the strongest management teams in the industry,” Mr. Jones concluded.

FINANCIAL REVIEW

Product Development Expenses

Product development expenditures for the second quarter 2021 were $2.1 million, an increase of $1.9 million compared to the prior-year quarter. Approximately $0.7 million of the period-over-period increase was related to Westwater’s graphite processing pilot program, with the remaining increase due primarily to product testing, other lab work and other auxiliary costs associated with the Coosa Graphite Project.

General and Administrative Expenses

General and Administrative expenses for the second quarter 2021 increased by $0.5 million compared to the prior year-quarter, due primarily to higher costs related to shareholder meetings, an increase in stock compensation and higher costs related to Westwater’s sales and marketing efforts.

Net Cash Used in Consolidated Operations

Net cash used in operating activities for the first half of 2021 was $9.1 million, an increase of $3.1 million compared to the same period in the prior year, due primarily to higher graphite product development, exploration, and general, administrative and arbitration costs in 2021.

Net Loss

Net Loss for the three months ended June 30, 2021, was $3.5 million, or $0.11 per share, as compared with a consolidated net loss of $2.5 million, or $0.43 per share, for the same 2020 period. The $1.0 million increase in Westwater’s consolidated net loss was due to an increase in product development, and exploration, general and administrative costs in 2021; offset partially by the elimination of costs from discontinued operations, and an unrealized gain related to the enCore common stock.

Cash and Working Capital

The Company’s cash balance at June 30, 2021, was approximately $119 million.

CONFERENCE CALL & WEBCAST

The Company will hold a conference call on Thursday, August 12, 2021, at 11:00am EDT.

DIAL- IN- NUMBERS

• 1-800-319-4610 (USA and Canada)
• 1-604-638-5340 (International)
• Conference ID: Westwater Resources Conference call

Hosting the call will be Christopher M. Jones, President and Chief Executive Officer of Westwater Resources, who will be joined by Jeffrey L. Vigil, Vice President-Finance and Chief Financial Officer, Chad Potter, Chief Operating Officer and Dain McCoig, Vice President of Operations,

Mr. Jones will present an update on the Company’s business, as well as a special report and update on the Coosa Graphite Project. Mr. Vigil will review the financial results and financial condition of the Company. Mr. Potter and Mr. McCoig will be available for questions as part of the call.

The conference call presentation will also be available via a live webcast through the Company’s website, www.westwaterresources.net.

A replay of the call will be available on the Company’s website for a limited time and by phone:

• 1-855-669-9658 (USA and Canada)
• 1-412-317-0088 (Internationally)
• Replay access code: 7387

About Westwater Resources

Westwater Resources (NYSE American: WWR) is focused on developing battery-grade graphite. The Company’s projects include the Coosa Graphite Project — the most advanced natural flake graphite project in the contiguous United States — and the associated Coosa Graphite Deposit located across 41,900 acres (~17,000 hectares) in east-central Alabama. For more information, visit www.westwaterresources.net.

Cautionary Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," “scheduled,” and other similar words. All statements addressing events or developments that WWR expects or anticipates will occur in the future, including but not limited to the commencement of operations at the Company’s proposed processing plant facilities, future production of battery graphite products, future financing activities and financial resources, the benefits of the incentive package with the State of Alabama and local municipalities, the timing and content of the Definitive Feasibility Study on the Coosa Graphite Processing Facility, and activities involving the Coosa Graphite Project and the Coosa Graphite Deposit. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, (a) the Company’s ability to successfully construct and operate a processing plant capable of producing battery grade materials in quantities and on schedules consistent with the Coosa Graphite Project business plan; (b) the Company’s ability to raise additional capital in the future including the ability to utilize existing financing facilities; (c) spot price and long-term contract price of graphite and vanadium; (d) risks associated with our operations and the operations of our partners such as Dorfner Anzaplan and Samuel Engineering, including the impact of COVID-19; (e) operating conditions at the Company’s projects; (f) government regulation of the graphite industry and the vanadium industry; (g) world-wide graphite and vanadium supply and demand, including the supply and demand for energy storage batteries; (h) unanticipated geological, processing, regulatory and legal or other problems the Company may encounter in the jurisdictions where the Company operates or intends to operate, including but not limited to Alabama and Colorado; (i) the effect of inflation and supply chain disruptions on the anticipated cost to construct and commence operations at our planned processing plant; (j) any graphite or vanadium discoveries not being in high-enough concentration to make it economic to extract the minerals; (k) currently pending or new litigation or arbitration; and (l) other factors which are more fully described in the Company’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.