Rosita

The Rosita Project is home to a processing facility, which was expanded in 2008 but the facility with its new dryer and other key components was not commissioned. The plant has a similar design to the Kingsville Dome facility, and has an annual production capacity of 800,000 pounds of uranium per year.

Rosita

Location

60 miles (96 kilometers) west-northwest of the city of Corpus Christi, in north-central Duval County, Texas.

Status

The Rosita Project has resources that are on standby for a potential restart of uranium production with final processing into yellowcake at the Kingsville Dome processing facility. Any restart of production will be based upon a sustained recovery in uranium prices.

The Property

The Company's property holdings for the main part of the Rosita Project consist of mineral leases from private land owners. Annual holding costs for these properties range from $10 to $30 per acre. Additionally, the leases make provisions for the payment of sliding scale royalties, based on a percentage of uranium sales, ranging from 6.25% up to 18.25% (when uranium prices reach $80.00 per pound) for production derived from the leased lands.

The processing facility is located on land owned by the company in fee.

Production History

Initial production at Rosita commenced in 1990, and production continued until July 1999. During the period of operation, the Company produced 2.6 million pounds of uranium from the project. Production was suspended in 1999, due to unfavorable market conditions. The project operated briefly in 2008, producing 10,200 pounds of uranium.

Geology

Uranium mineralization at the Rosita property occurs as roll-fronts, which is the typical style of uranium mineralization in the region, and is hosted in the Goliad Formation at depths of 125 to 350 feet (38 to 106 meters) below the surface.

Environmental and Permitting Status

Westwater Resources holds four authorized production areas at the Rosita Project licensed by the Texas Commission on Environmental Quality (TCEQ). In addition, the Company also holds a radioactive materials license and an underground injection control permit for the project from the TCEQ, as well as an aquifer exemption from the United States Environmental Protection Agency. Under the terms of existing permits and authorizations, production could resume in authorized areas. New areas of uranium mineralization, which may be proposed for production in the future, would require additional production area authorizations from TCEQ.

The Company commenced reclamation of the surface and restoration of groundwater in two of the previously mined areas at Rosita's Production Areas 1 and 2. The plugging and abandoning phase of restoration is completed in Production Areas 1 and 2 with surface reclamation underway.