Uranium One Improves Profitability and Announces 18% Increase in Q2 2015 Production to $3.2 Million Pounds; Average Total Cash Costs Remains at $14 per Pound

TORONTO, Aug. 12, 2015 /CNW/ - Uranium One Inc. ("Uranium One") today reported quarterly headline revenue of $111 million for Q2 2015. Attributable revenue⁽²⁾ was $165 million for Q2 2015, including joint venture revenue, based on sales of 3.2 million pounds of produced material⁽¹⁾ at an average realized sales price of $ 37 per pound sold of produced material⁽²⁾with an average cash cost per pound sold of produced material⁽²⁾ at $14 per pound. Attributable production for the quarter was 3.2 million pounds.

Q2 2015 Highlights

Operational

• Total attributable production⁽¹⁾  during Q2 2015 was 3.2 million pounds, compared with total attributable production⁽¹⁾  of 2.7 million pounds during Q2 2014.
• The average total cash cost per pound sold of produced material⁽²⁾ remained at $14 per pound during Q2 2015, which is the same as the cost per pound for Q2 2014.

Financial

• Attributable sales volumes of produced material⁽¹⁾ for Q2 2015 were 3.2 million pounds sold from the Corporation's operations and joint ventures, compared to 2.8 million pounds sold during Q2 2014.
• Headline revenue was $111.0 million in Q2 2015, compared to $41.1 million in Q2 2014.
• Attributable revenues⁽²⁾ consistent with the Corporation's segment reporting, which includes revenues from its interests in joint ventures, amounted to $165.0 million in Q2 2015, compared to $86.1 million in Q2 2014.
• The average realized sales price of produced material⁽²⁾ during Q2 2015 was $37 per pound, compared to $29 per pound in Q2 2014. The average spot price in Q2 2015 was $37 per pound compared to $29 per pound in Q2 2014.
• Gross profit, including the Corporation's attributable share of gross profit from joint ventures, totaled $41.1 million in Q2 2015, a 207% increase compared to $13.4 million in Q2 2014, due to an increase of 28% in the realized sales price of produced material and a 18% increase in the sales volume, while maintaining the cash cost per pound sold of produced material at $14 per pound, and optimizing the general and administrative costs and restructuring its operations.

Corporate

• During the second quarter, the Corporation substantially completed a planned restructuring of the operations of its Toronto office, relocating certain head office functions such as finance, internal audit and some technical services to Moscow and reducing the size of its Toronto office.  As a result, Ms. Juliana L. Lam, the Corporation's former Executive Vice President and Chief Financial Officer completed the planned transition and left the Corporation to pursue other interests effective June 30, 2015. Ms. Lam's functions assumed by members of the Finance Department of JSC "Uranium One Group", overseen by Mr, Maxim Dranov, its Vice President, Economy and Finance.
• As previously reported, since March 2014, the U.S. and Canadian governments and the European Union have implemented a number of orders, directives and regulations in response to the situation in Ukraine. These measures generally impose visa restrictions and asset freezes on certain designated individuals and entities, restrict access by certain designated Russian institutions and entities to Western capital markets. The Corporation's operations have not been impacted by the foregoing orders, directives or regulations or any designations made thereunder and the Corporation continues to carry on business as usual.

Q2 2015 Operations and Projects

During Q2 2015, Uranium One achieved attributable production of 3.2 million pounds, an increase of 18% over attributable production of 2.7 million pounds for the comparable period in 2014.

TOTAL ATTRIBUTABLE PRODUCTION		Q2 2015	Q2 2014
Attributable commercial production (lbs)
	Akdala^(3)	486,100	366,100
	South Inkai^(^3^)	1,010,300	693,400
	Karatau	654,500	681,900
	Akbastau	596,600	458,900
	Zarechnoye	262,300	294,100
	Kharasan^(^3^)	197,300	109,700
	Willow Creek	35,500	133,700
Total attributable production (lbs)		3,242,600	2,737,800

The financial statements, as well as the accompanying Operating and Financial Review, are available for review at www.uranium1.com and should be read in conjunction with this news release. All figures are in U.S. dollars unless otherwise indicated. All references to pounds sold or pounds purchased are to pounds of U₃O₈.

Q2 2015 Financials

FINANCIAL	Q2 2015	Q2 2014	YTD Q2 2015	YTD Q2 2014
Attributable production (lbs) ^(4)	3,242,600	2,737,800	6,218,800	5,832,700
Attributable sales (lbs)^(4) – Produced material	3,208,200	2,747,800	4,894,500	6,013,500
Average realized sales price ($ per lb)^(4) – Produced material	37	29	37	33
Average total cash cost per pound sold ($ per lb)^(5) – Produced material	14	14	14	14
Revenues  ($ millions) – as reported on consolidated income statement	111.0	41.1	168.8	110.6
Attributable revenues ($ millions)^(5)	165.0	86.1	242.5	204.1
Gross profit (loss) ($ millions) – as reported on consolidated income statement	0.2	(6.5)	(1.4)	(1.6)
Attributable gross profit ($ millions)^(5)	41.1	13.4	62.3	53.6
Net earnings (loss) ($ millions)	21.6	(63.4)	9.3	(97.6)
Net earnings (loss) per share – basic and diluted ($ per share)	0.02	(0.07)	0.01	(0.10)
Adjusted net earnings (loss) ($ millions)^(3)	7.8	(38.3)	(11.2)	(61.2)
Adjusted net earnings (loss) per share – basic ($ per share)^(3)	0.01	(0.04)	(0.01)	(0.06)

About Uranium One

Uranium One is one of the world's largest uranium producers with a globally diversified portfolio of assets located in Kazakhstan, the United States, Australia and Tanzania. ROSATOM State Atomic Energy Corporation, through its affiliates, owns 100% of the outstanding common shares of Uranium One.

For further information about Uranium One, please visit www.uranium1.com

Notes:
(1)	Attributable production pounds and attributable sales pounds are from assets owned and from joint ventures in commercial production during the period.
(2)	Uranium One has included the following non-GAAP performance measures: average realized sales price per pound – produced material, average total cash cost per pound sold – produced material, attributable revenues, attributable gross profit, adjusted net earnings (loss) and adjusted net earnings (loss) per share. See the section on "Non-GAAP Measures" in the operating and financial review attached to the interim consolidated financial statements of the Corporation for the three months and six months ended June 30, 2015.
(3)	Represents production up to and including June 3, 2014, and from and including October 18, 2014. Although Betpak Dala LLP and Kyzylkum LLP lost the rights to produce uranium from the Akdala, South Inkai and Kharasan mines effective as of the dismissal of their appeal on June 4, 2014, they entered into agreements to provide mine development, extraction and processing services to Kazatomprom with respect to those mines. These service agreements provided for the continuation of normal business operations at these mines and were designed to ensure that the economic return to the joint ventures from existing operations was not affected in the period prior to the acquisition of subsoil use rights for the Akdala and South Inkai mines by SMCC and for the Kharasan mine by Khorasan-U. Uranium One and Kazatomprom also signed a definitive uranium offtake agreement ensuring the continuity of deliveries to Uranium One and its customers during this period.
(4)	Attributable production pounds and attributable sales pounds are from assets owned and from joint ventures in commercial production during the period.
(5)	The Corporation has included the following non-GAAP performance measures: average realized sales price per pound – produced material, average total cash cost per pound sold – produced material, attributable revenues, attributable gross profit, adjusted net earnings (loss) and adjusted net earnings (loss) per share. See the section on "Non-GAAP Measures".

Cautionary Statements

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Forward-looking statements include but are not limited to those with respect to, the price of uranium, the estimation of mineral resources and reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, market conditions, corporate plans, objectives and goals, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, the timing and potential effects of proposed transactions, title disputes or claims, limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the possibility of sanctions that may be imposed on the Corporation, its shareholders, affiliates or third parties with which the Corporation deals, that may have a material adverse effect on the Corporation's ability to carry on its business or perform its contractual obligations, the future steady state production and cash costs of Uranium One, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, possible changes to the tax code in Kazakhstan, accidents, labour disputes or other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities, risks relating to the completion of transactions, integration of acquisitions and the realization of synergies relating thereto, to international operations, to prices of uranium as well as those factors referred to in the section entitled "Risk Factors" in Uranium One's Operating and Financial Review for the year ended December 31, 2014. Although Uranium One has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements. Uranium One expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except  as required under applicable securities laws.

SOURCE Uranium One Inc.

please contact: Feroz Ashraf, Chief Executive Officer, E:mail: [email protected], Tel: [phone]