Uranium Participation Corp.

Uranium Concentrate Investment

$4.42  -0.09

Operations

Offerings, Acquisitions and Investments

Since incorporation to the end of the 2018 fiscal year, the Corporation has raised gross proceeds of $765.2 million in 11 equity financings. Approximately $13.3 million of those proceeds have been used by the Corporation to purchase its shares under its normal course issuer bids. As defined in, and calculated in accordance with the Amended By-Law, the Aggregate Gross Proceeds of Offerings is $751.9. In connection with the acquisition of Uranium Limited (the "UL Acquisition"), the Corporation also issued 20,624,972 common shares valued at $122.1 million and received $31.2 million from the exercise of warrants and $8.0 million from the exercise of stock options assumed by the Corporation following the UL Acquisition.

As at February 28, 2018, the Corporation held an aggregate of 13,484,354 pounds of U3O8 and 1,117,230 KgU as UF6 at a total cost of $810.0 million. The total cost (a) includes $123.9 million in acquisition costs related to the UL Acquisition, associated with 1,725,000 pounds of U3O8 and 412,000 KgU as UF6, and (b) excludes $17.0 million in historical acquisition costs as a result of the previous sale of uranium holdings. As defined in, and calculated in accordance with the Amended & Restated By-law of the Corporation, the historical aggregate cost of the Corporation's Uranium Purchases is $703.1 million. As at February 28, 2018, the Uranium Purchases represent approximately 93.5% of the Aggregate Gross Proceeds of Offerings.

Ownership of Uranium

All uranium owned by UPC is stored at licensed uranium conversion, enrichment, or fuel fabrication facilities (each one, a "Facility" or collectively, the "Facilities") owned by different organizations in Canada, France, England, Germany, the Netherlands and the United States. The Manager, on behalf of UPC, negotiates storage arrangements with the Facilities. See "Management of UPC". The Facilities represent the only viable source of storage, at present, and are also used by global nuclear energy utilities, and commodity traders for their storage needs. Accordingly, the Corporation's risk in respect of ownership and storage of its uranium is considered largely similar to that of any participant in the nuclear energy industry. See "Risk Factors -- Risks Associated with Facilities" in the Corporation's Annual Information Form.  
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