WESTWATER RESOURCES INC

RESULTS OF OPERATIONS** **

Summary

Our consolidated net loss from continuing operations for the year ended December 31, 2023 was $7.8 million, or $0.15 per share, as compared with a consolidated net loss from continuing operations of $11.1 million, or $0.25 per share for the same period in 2022. The $3.3 million decrease in our consolidated net loss from continuing operations was due primarily to collection of a $3.1 million cash settlement from the Republic of Turkey, a $1.2 million write-off of accrued uranium royalties, a $0.3 million increase in interest income on our investment account, and $0.5 million less exploration expenses; offset partially by $1.8 million higher product development expenses associated with additional sample production.

Product Development Expenses

Product development expenses for the year ended December 31, 2023 were $2.9 million, an increase of $1.8 million compared to the prior year. Product development expenses for the year ended December 31, 2023, primarily relate to an increase in continued product development, product optimization costs, and additional sample production of battery-grade natural graphite products for evaluation by potential customers.

Exploration Expenses

Exploration expenses for the year ended December 31, 2023, were $0.3 million, a decrease of $0.5 million compared to the prior year. The decrease in exploration expenses was the result to the Company completing its initial drilling program at the Coosa Graphite Deposit in April 2022.

General and Administrative Expenses

General and administrative expenses for the year ended December 31, 2023, were $9.8 million, a decrease of approximately $0.1 million as compared with 2022. The decrease is primarily due to approximately $0.2 million less in hiring fees and employee relocation costs in 2023 due to a hiring freeze and approximately $0.2 million of stock award forfeitures related to the Company’s former Chief Executive Officer’s departure in January 2023, offset by approximately $0.3 million of related severance charges.

Arbitration Costs

During the year ended December 31, 2023, the Company did not incur legal costs related to the arbitration against the Republic of Turkey. This represents a decrease of $0.1 million compared to the prior year. SeeItem 3, Legal ProceedingsandNote 9, Commitments and Contingenciesfor further detail.

Mineral Property Expenses

Mineral property expenses were less than $0.1 million for the year ended December 31, 2023, remaining flat compared to the prior year. These costs include payments to land and surface owners.

Settlement

The Company realized a $3.1 million gain on the settlement of its arbitration against the Republic of Turkey in the fourth quarter of 2023 upon receipt of payment. SeeItem 3, Legal Proceedingsfor further detail.

Other Income

Other income for the year ended December 31, 2023 was $2.4 million, an increase of approximately $1.4 million compared to prior year. The increase is primarily due toa $1.2 million write-off of accrued uranium royaltiesand a $0.3 million increase in interest income on our investment account.

During the fourth quarter of 2023, the Company completed a voluntary disclosure of unclaimed property, which included a review of the historical accrued uranium royalties related to the Company’s former uranium business. Upon completion of the review by the state authority, it was concluded that the accrued uranium royalties were not owed or escheatable to the state. Based on the completion of the voluntary disclosure of unclaimed property, the Company has determined that the probability of these accrued uranium royalty liabilities becoming payable is remote and therefore wrote off the estimated liability and recognized other income of $1.2 million for the year ended December 31, 2023.