Channen ProjectAt the Channen Project, fourteen widely-spaced exploration holes drilled on a 6,400-foot grid revealed that at least two lower Goliad sub-rolls lying between 700 feet to 860 feet in depth exist on the property. Closer spaced delineation holes reveal that the overall trend length known to date is over two miles. These drilling results are being reviewed for future exploration activities in the Channen Project in order to fully identify the extent of the mineralized zones. Paraguay ISR Projects On October 15, 2012, the Company filed on SEDAR an NI 43-101 technical report disclosing an exploration target at its Oviedo Project of 23-56 million pounds of U 3O 8 covering a grade range of 0.040% to 0.052% U 3O 8 (1). The technical report was created from the results of the Company's 10,000-meter drilling program on its Oviedo Project and the compilation of historical and other geologic data. Company geologists are continuing to perform detailed radon surveys over anomalous targets developed through synthesis of historic and current exploration results. Work has continued on the delineation of the radon anomalies that indicate the potential for shallow uranium mineralization along basin margins. The Company's Paraguay Yuty and Oviedo Projects, with geology that is very similar to that of South Texas, have the potential to be large-scale ISR-amenable uranium projects. Financial Review The following is a financial review of the Company for the three and six months ended January 31, 2013, and should be read in conjunction with the condensed consolidated financial statements and management's discussion and analysis as contained in the Company's Form 10-Q filing available at the Company's website at www.uraniumenergy.com or on EDGAR at www.sec.gov. Results of Operations During the three months ended January 31, 2013, the Company recorded revenue of $2.1 million resulting from the sale of 50,000 pounds of U 3O 8 at an average sales price of $42 per pound. Cash cost of sales excluding royalties was $1.6 million or $31 per pound sold. Royalties were $0.2 million or $5 per pound sold and non-cash costs were $0.3 million or $6 per pound sold. Total cost of sales was $2.1 million or $42 per pound sold including royalties and non-cash costs, resulting in a gross profit of $0.01 million. During the six months ended January 31, 2013, the Company recorded revenue of $4.3 million resulting from the sale of 100,000 pounds of U 3O 8 at an average sales price of $43 per pound. Cash cost of sales excluding royalties was $2.8 million or $28 per pound sold. Royalties were $0.5 million or $5 per pound sold and non-cash costs were $0.6 million or $6 per pound sold. Total cost of sales was $3.9 million or $39 per pound sold including royalties and non-cash costs, resulting in a gross profit of $0.3 million. During the three months ended January 31, 2013, the Company recorded a net loss of $5.6 million or $0.06 per share (2012 Q2: $6.5 million or $0.09 per share). Expenses totaled $5.6 million (2012 Q2: $8.2 million) and include $1.9 million (2012 Q2: $4.2 million) for mineral property expenditures, $3.3 million (2012 Q2: $3.7 million) for general and administrative and $0.4 million (2012 Q2: $0.3 million) for depreciation, amortization and accretion. During the six months ended January 31, 2013, the Company recorded a net loss of $12.9 million or $0.15 per share (six months ended January 31, 2012: $12.1 million or $0.16 per share). Expenses totaled $13.2 million (six months ended January 31, 2012: $15.1 million) and include $6.3 million (six months ended January 31, 2012: $6.9 million) for mineral property expenditures, $6.0 million (six months ended January 31, 2012: $7.6 million) for general and administrative and $0.9 million (six months ended January 31, 2012: $0.6 million) for depreciation, amortization and accretion. Liquidity Net cash used in operating activities for the six months ended January 31, 2013 was $11.8 million (six months ended January 31, 2012: $10.3 million). Net cash used in financing activities for the six months ended January 31, 2013 was $0.0 million (six months ended January 31, 2012: $1.4 million). Net cash used in investing activities for the six months ended January 31, 2013 was $0.9 million (six months ended January 31, 2012: $2.2 million). At January 31, 2013, the Company had cash and cash equivalents of $12.3 million and working capital of $10.8 million. Uranium Market Update During the three months dating from October 31, 2012 through January 31, 2013, spot uranium prices strengthened, with a rise in the Ux Consulting "Broker Average Price" from $40.63 per pound to $44.00 per pound U 3O 8. Spot prices were reported within this range throughout the quarter and have since pulled back to $42.25 per pound as of March 11, 2013. Meanwhile, the Ux "Long-Term" uranium contract price dropped $4.00 per pound from $60 to $56 over the period. Supply-demand fundamentals contain several catalysts that could strengthen prices by the end of the current year. The expiration of the HEU agreement in 2013 will remove about 24 million pounds of uranium from secondary supply annually. The prospects for a rise in near-term demand improved as China lifted the moratorium on new reactor builds and Prime Minister Shinzo Abe was elected in Japan near the end of the year. Globally, there are 65 new reactors currently under construction that should add in excess of 30 million pounds of new demand annually. Compounding the longer term supply deficit, several major production projects have been delayed or shelved as a result of weak market conditions. Industry analysts estimate uranium prices need to be in the $70-$80 range in order to spur investment to develop new conventional mining projects. About Uranium Energy Corp Uranium Energy Corp is a U.S.-based uranium production, development and exploration company operating North America's newest emerging uranium mine. The Company's fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, including the Palangana in-situ recovery project, which is ramping up initial production, and the Goliad in-situ recovery project which is now fully permitted and under construction. The Company's operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining . Stock Exchange Information: NYSE MKT: UEC Frankfurt Stock Exchange Symbol: U6Z WKN: AØJDRR ISN: US916896103 Notice to U.S. Investors The mineral resources referred to herein have been estimated in accordance with the definition standards on mineral resources of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101 and are not compliant with U.S. Securities and Exchange Commission (the "SEC") Industry Guide 7 guidelines. In addition, measured mineral resources, indicated mineral resources and inferred mineral resources, while recognized and required by Canadian regulations, are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Accordingly, we have not reported them in the United States. Investors are cautioned not to assume that any part or all of the mineral resources in these categories will ever be converted into mineral reserves. These terms have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. In particular, it should be noted that mineral resources which are not mineral reserves do not have demonstrated economic viability. It cannot be assumed that all or any part of measured mineral resources, indicated mineral resources or inferred mineral resources will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. Investors are cautioned not to assume that any part of the reported measured mineral resources, indicated mineral resources or inferred mineral resources referred to in this news release are economically or legally mineable. (1) In the Company's subject technical reports all tonnages, grade, and contained pounds for exploration targets should not be construed to reflect a calculated mineral resource (inferred, indicated, or measured). The potential quantities and grades, as stated in the technical reports, are conceptual in nature and there has been insufficient work to date to define a NI 43-101 compliant resource. Furthermore, it is uncertain if additional exploration will result in the discovery of an economic mineral resource on the project.