ENERGY FUELS INC

Initial recognition, classification and initial measurement

The Group recognizes financial assets when it becomes a party to the contractual provisions of the instrument. Financial assets are classified, at initial recognition, either as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), or fair value through profit or loss. Financial assets are classified on initial recognition based on (i) the Group's business model for managing the financial assets and (ii) the contractual cash flow characteristics of the financial asset. The Group's financial assets are primarily classified as:

• Financial assets measured at amortized cost ("FAAC")

• Financial assets at fair value through profit or loss ("FVTPL")

The Group does not hold any financial assets classified as fair value through other comprehensive income (FVOCI) as of December 31, 2025 or December 31, 2024.

The Group measures financial assets at amortized cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective of holding financial assets in order to collect contractual cash flows

and

• Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding ("SPPI" test).

The Group classifies cash and cash equivalents, trade receivables not subject to factoring and other financial receivables as well as other financial assets as measured at amortized cost.

All other financial assets are classified as measured at fair value through profit or loss. These include not only derivative financial instruments but also trade receivables that are to be sold to the factor under a factoring agreement.

At initial recognition, financial assets are measured at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset, except for financial assets measured at fair value through profit or loss, for which transaction costs are recognized in profit or loss as incurred. Trade receivables are initially measured at the transaction price determined in accordance with IFRS 15 unless they contain a significant financing component.