ENERGY FUELS INC

Share-Based Payments

The Group's equity-settled share-based payments are expensed on a straight-line basis over the vesting period, which is based on the Group's estimate of the number of equity instruments that will eventually vest. At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest based on the satisfaction of non-market-based vesting conditions or service conditions. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the arrangements. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option or appreciation right, volatility and dividend yield and making assumptions about them. The impact of the revision of the original estimates, if any, is recognized in profit or loss so that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity reserves. The Group initially measures the cost of cash-settled transactions with employees using a binomial model to determine the fair value of the liability incurred. For cash-settled share-based payment transactions, the liability needs to be remeasured at the end of each reporting period up to the date of settlement, with any changes in fair value recognized in profit or loss. This requires a reassessment of the estimates used at the end of each reporting period. Further details on share-based payments are disclosed inNote 30.

The estimates and underlying assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Note 5: Capital management

Capital includes issued capital, and all other equity reserves attributable to the equity holders of the parent.

The Group's objective in managing capital is to maintain financial flexibility, support its ability to continue as a going concern, satisfy covenant requirements under its financing arrangements and fund its operating and strategic plans. The Group monitors the total net debt/net cash position, which includes all interest-bearing liabilities. The financial performance of the Group is measured with focus on earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which is EBITDA adjusted for items that the Group considers not reflective of underlying operating performance.

Due to the terms of the loan agreement, the Group is obliged to submit a covenant calculation at the end of each quarter by certifying in a compliance certificate that the agreed leverage ratio, based on the last twelve months (LTM), is within the agreed range. The leverage ratio relates to the ratio of net debt to a pro-forma EBITDA, which is conceptually outlined in the senior facilities agreement. For purposes of the leverage ratio, net debt represents interest-bearing loans and borrowings, less cash and cash equivalents, as adjusted for any items required or excluded under the senior facilities agreement. The Group met the covenants set out in the loan agreement in each quarter of 2025.

These key figures are reviewed with the Group's management monthly and with the Board quarterly.

No changes were made in the objectives, policies, or processes for managing capital during the year ended December 31, 2025.

Note 6: Group information