Westwater Resources, Inc.

Thank you for standing by. This is the conference operator. Welcome to the Westwater Resources, Inc. first quarter 2022 results and business update conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Chad Potter, President and CEO. Please go ahead, sir.

Thank you. And thank you for all attending our first quarter 2022 results call. accounting officer. Slide 2, during this presentation, the forward-looking statements we will be making are based off management's judgment, including projections related to Kellyton's graphite plant and the Cusick graphite deposit. These statements are subject to certain risks and uncertainties, a description which can be found on page 2 in this presentation. Our 10-K for 2021 and our actual results may differ materially from what may be discussed today. On to page three. Why Westwater is an investment. Westwater is an energy technology company focused on producing battery-grade natural graphite materials for advanced batteries here in the United States. We're using a patent-pending proprietary purification process. We made a lot of progress during the first quarter. in March, hiring our various general contractors and other contractors. We continued the process of ordering long lead time equipment and the build-out and completion of our administration's offices in April. Also in April, we hosted a ceremony of groundbreaking at our Peloton facility, which was attended by the governor of Alabama and other state, local, and federal officials. In April, we completed the exploration drilling program at our Coosa Graphite deposit, and we expect our geological model to be completed by the end of the year. Slide four. I'd like to turn it over to our Chief Financial Officer, Mr. Jeff Vigil.

Thank you, Chad. Good morning, everyone. First, let's take a look at our capital position on slide four. Our closing share price on Wednesday, May 4th was $1.37, and with approximately 47.2 million shares outstanding, our market capitalization stands at approximately 65 million. Our average daily trading volume over the past three months was approximately 3.2 million shares per day. Our share price began the quarter at $2.15 and ended the quarter at $2.00. We believe investors have taken a more cautious approach to Westwater as we embark on the construction of our graphite processing facility in Alabama and the large capital expenditures associated therewith. We finished the first quarter with a cash balance of $116 million and a working capital balance of approximately $109 million. During the first quarter, the company utilized its ATM facility with Cameron Fitzgerald and to raise approximately $16 million from stock sales. In April 2022, we raised an additional $9 million from ATM stock sales. Our working capital balance and zero debt provide us with the ability to continue to move the construction of Phase I of the Kellerton Graphite Plant forward. Since beginning the construction of Phase I, we have incurred $17.8 million of the estimated total cost of $202 million. Our two financing facilities with Cantor and Lincoln Park provide the company with an opportunity to raise cash at a low cost of capital and may be used in the future to support the company's business plan in 2022. However, management is currently engaged in the process of identifying additional or alternative sources of low-cost capital funding, which potentially could include project-level debt offtake agreements, loan and grant programs provided by the U.S. Department of Energy, a strategic partner, or a combination of these. Turning to slide five, we provide a financial summary for the quarter ended March 31, 2022. Net cash used in all operating activities was $2.7 million for the quarter, as compared with $4.8 million for the same period in 2021. 2.1 million decrease in cash used was primarily due to reduced product development expenses and arbitration costs. Product development costs for the three months ended March 31, 2022 decreased 1.6 million compared to the same period in 2021. The costs incurred for the first quarter of 2022 were related to continued product optimization costs, while the prior year period was impacted by expenses related to our DFS report for the Kellyton plant and the company's pilot program, both which were completed in the second half of 2021. General administrative expenses for the three months ended March 31, 2022, increased by $100,000 from the prior year period. The increase year over year is due primarily to increased payroll costs as the company continues to build out its team and to invest in sales and marketing. Net loss from continuing operations for the three months ended March 31, 2022, was $2.8 million, or $0.08 per share, compared to a net loss of $5.4 million, or $0.19 per share, for the same period in 2021. $2.6 million reduction in net loss is due primarily to decreased product development expenses and arbitration costs. And with that, I'll turn it back to you, Chad. Thank you, Jeff.