UEX Corp T.UEX

RE:Raymond James: Outperform rating and $0.70 target for UEX

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Message to Shareholders

November 3, 2014

It is once again my pleasure as your President to provide an update on the Company's activities for the third quarter of 2014.

While the last several years have been challenging for the uranium exploration and development industry, the last two quarters have been marked by significant volatility for uranium prices, producers, and explorers and developers. Last quarter’s surprise drop of the spot price to US$28.25/lb was short-lived, as in the third quarter the spot price rebounded quickly to US$35.50/lb. This price increase was spurred by the announcement of the preliminary approval for the re-start of the Japanese Sendai 1 & 2 reactors, the suspension of new development projects, the contraction in primary mine production output, the risk associated with Russian-sourced uranium and the announcement of a labour strike at the world’s largest uranium mine complex.

UEX successfully raised $3.08 million in equity in the quarter, which means our Company remains financially robust, and we anticipate having $7.4 million of cash reserves in our treasury at year end. Not only does our Company have the resources to weather the recent short-term decline in stock prices, UEX is also in position to increase shareholder value by exploring what I believe is the most exciting new global uranium exploration play.

Last quarter, I reported to you that the Company was in the process of verifying through the review of our drill core library, the twelve high-priority basement target areas on the Hidden Bay Project where new discoveries similar to the Millennium, Gryphon, PLS, and Roughrider basement-hosted uranium deposits could be expected. We selected six of the twelve target areas for field review of historical drill core, which revealed the presence of intense hydrothermal clay alteration within the basement rocks. Anomalous uranium concentrations were found in both the Wolf Lake and Dwyer Lake target areas. Such intense clay alteration and anomalous uranium concentrations are rare and are strikingly similar to proximal alteration and uranium concentrations I have observed near the Millennium and Roughrider basement-hosted deposits.

The targets generated to date by the basement-targeting program have exceeded Company expectations. UEX is currently preparing to commence a 10,000 m - $2.5 million drilling program late in the fourth quarter that will extend into the spring of 2015. The program will initially target the high priority targets identified in the Wolf and Dwyer Lake areas.

What excites me about the results of our basement targeting is the fact that our exploration team was so quickly able to demonstrate to me the competitive advantage that our database brings to our Hidden Bay Project. UEX is uniquely poised to make the next basement uranium discovery in the shallowest part of Athabasca Basin in an area surrounded by established infrastructure and in the shadow of two operating uranium mills.

What excites me further is that this winter’s program will be one of several needed over the next few years to adequately evaluate the basement uranium deposit potential of our Hidden Bay Project.

AREVA has recently proposed exploration budgets for our Western Athabasca Projects and we expect to have a news release in the coming weeks outlining the details of these 2015 proposed programs.

Concurrently, UEX continues to look at opportunities that meet our key criteria of having an existing quality uranium resource base with potential of being developed into a low-cost uranium mine, which are located within good uranium mining jurisdictions. This challenging uranium market has exposed several opportunities which we will continue to evaluate for their potential to be accretive to UEX shareholders.

Blessed with the largest non-producer-owned uranium resources in the Athabasca Basin, our enviable portfolio of brownfields, mid-stage and grassroots exploration targets, the ability to vector towards shallow basement-hosted uranium targets at Hidden Bay, the potential for resource expansion and the discovery of new lenses around known uraniferous targets at Shea Creek, coupled with our financial strength to capitalize on opportunities as they present themselves, UEX is well-positioned to reap the benefits of the ongoing nuclear renaissance.

I look forward to updating you on our progress and successes in the coming months.


Roger Lemaitre
President & CEO