The Roca Honda Royalty was created pursuant to a royalty deed dated July 31, 2015 between Strathmore Resources (US) Ltd. and Uranco Inc., a wholly owned subsidiary of Westwater Resources Inc. The Roca Honda Royalty is subject to the right of the payor to purchase the royalty for US$5,000,000 at any time prior to the first royalty payment becoming due thereunder.

The Roca Honda Royalty does not apply to the entire project area for the Roca Honda Project. The royalty currently applies to approximately 640 acres, or approximately 14% of the current project area.

The Roca Honda Project is a Development stage, conventional uranium project located in New Mexico, USA, approximately three miles northwest of San Mateo, New Mexico and covers approximately 4,440 acres. The Roca Honda Project is 100% owned by Strathmore Resources (US) Ltd., a wholly owned subsidiary of Energy Fuels Inc. ("Energy Fuels"). 

Energy Fuels also owns the White Mesa Mill, an existing conventional uranium mill located near Blanding, Utah, approximately 275 miles from the Roca Honda Project.

The information below regarding project milestones and recent developments for the Roca Honda Project has been summarized from the Historic Roca Honda Technical Report(1), a copy of which is available under Energy Fuels' profile on SEDAR (www.sedar.com), and from Energy Fuels' public disclosure.

Mineralization was initially discovered in the area of the Roca Honda Project in 1970 by Kerr-McGee Oil Industries. The project claims were acquired by Strathmore Minerals Corp. in 2004.

In August 2013, Energy Fuels acquired a 60% interest in the Roca Honda Project through the acquisition of Strathmore Minerals Corp. and in May 2016 acquired the remaining 40% interest in the Roca Honda Project from Sumitomo Corporation. Strathmore Resources (US) Ltd. acquired Section 17 in 2015 from Uranco Inc., a wholly-owned subsidiary of Westwater Resources Inc.

In its quarterly report for the three months ended June 30, 2019, Energy Fuels disclosed that it plans to accelerate the licensing and permitting for the Roca Honda Project. In its annual report for the year ended December 31, 2018, Energy Fuels disclosed that the Roca Honda Project is at an advanced stage of permitting, with a draft Environmental Impact Statement completed by the United States Forest Service in February of 2013 with an additional scoping process initiated in September of 2016 to incorporate Section 17 and development drilling into the mine plan. Energy Fuels has disclosed that it expects a Record of Decision to be issued by the United States Forest Service in 2021. In such annual report, Energy Fuels disclosed that other major permits required for the Roca Honda Project included a Permit to Mine to be issued by the New Mexico Mining and Minerals Division, a Discharge Permit to be issued by the New Mexico Environment Department and a Mine Dewatering Permit to be issued by the New Mexico State Engineer's Office.  

(1) Technical Report on the Roca Honda Project, McKinley County, State of New Mexico, U.S.A., with an effective date of February 4, 2015, prepared for Strathmore Resources (a subsidiary of Energy Fuels) and authored by Stuart E. Collins, P.E., Robert L. Michaud, P. Eng., Mark Mathisen, C.P.G., and Harold Roberts, P.E.