The San Rafael Royalty is a 2% net smelter return royalty on portions of the San Rafael property.

The San Rafael Royalty does not apply to the entire project area for the San Rafael Project. The San Rafael Royalty is applicable only to the 136 GM unpatented federal lode mining claims that comprise the majority of the project.  

Unless otherwise indicated, the information herein regarding the San Rafael Project is derived from a historic technical report prepared for Pinon Ridge Mining LLC titled "NI 43-101 Technical Report on the San Rafael Uranium Project" with an effective date of November 19, 2014 (the "Historic San Rafael Technical Report"). The Company is treating such estimate as historical in nature and notes that a qualified person has not done sufficient work to classify the historical estimates as current mineral resources. The Company is referencing such historic estimate for illustrative purposes, as the Company believes it provides readers with relevant information regarding the San Rafael Project. There are numerous uncertainties inherent in the historical estimate, which is subject to all of the assumptions, parameters and methods used to prepare such historical estimate.

In its Annual Report on Form 10-K for the year ended December 31, 2021, Western Uranium indicates that further permitting the project would be the next steps for the project. The San Rafael Uranium Project is currently being held as a property that is exploratory in nature with no identified reserves.

The Deep Gold deposit was originally discovered by Continental Oil Company (Conoco) and Pioneer Uravan geologists in the late 1960s and 1970s to early 1980s, respectively. Exploration drilling was conducted just east of the core of the Tidwell Mineral Belt and north-northeast of the Acerson Mineral Belt. The area containing the deposits was considered to contain highly prospective paleo trunk stream channel trends. Some of the larger historic producing mines in the area were Atlas Minerals’ Snow, Probe, and Lucky Mines. The deposit in the San Rafael Project is an open concordant, channel-controlled, sandstone-hosted, trend type, with mineralization hosted in the upper sandstone sequence of the Salt Wash Member of the Upper Jurassic Morrison Formation. Depth to mineralization at the Deep Gold deposit in Section 23 averages 800 feet, with hole depths averaging approximately 1,000 feet.

In addition to Conoco, Pioneer Uravan, and Atlas Minerals, the US Atomic Energy Commission (AEC) and other companies (Union Carbide, Energy Fuels Nuclear, and others) conducted exploration drilling and mining in the area.

The Tidwell Mineral Belt and the San Rafael Uranium District have been the sites of considerable historic exploration drilling and production, with over 4 million pounds of uranium and 5.4 million pounds of vanadium produced. Production from the Snow, immediately up dip of the Deep Gold deposit, which produced for nine years, starting in March 1973 and ending in January of 1982, consisted of 650,292 pounds of U₃O₈ contained in 173,330 tons of material at an average grade of 0.188% U₃O₈.

The Historic San Rafael Technical Report stated a combined a project-wide historical resource of 758,000 tons @ 0.225% U₃O₈ containing 3,404,600 lbs U₃O₈ in the indicated category and 453,800 tons @ 0.205% U₃O₈ containing 1,859,500 lbs U₃O₈ in the inferred category.