Energy Fuels Inc.
TSX : EFR

Energy Fuels Inc.

September 26, 2011 10:45 ET

Key Settlement Achieved on Water Rights for Energy Fuels' Pinon Ridge Mill

TORONTO, ONTARIO--(Marketwire - Sept. 26, 2011) - Energy Fuels Inc. (TSX:EFR) ("Energy Fuels" or the "Company") announced today that it has reached a key settlement with two of the Objectors to the Company's water rights' application for the proposed Piñon Ridge Uranium and Vanadium Mill (the "Mill"). On Wednesday September 21, a settlement agreement was filed in State of Colorado District Court, Water Division 4 ("Water Court"), whereby Energy Fuels settled with Sheep Mountain Alliance ("SMA") and Living Rivers ("LR"), two regional conservation groups who intervened in the water application as Objectors. In that settlement agreement SMA and LR agreed to withdraw their opposition to the Company's water rights application in exchange for Energy Fuels implementing certain environmental and water supply protections. The Water Judge quickly approved the settlement agreement as an Order of the Court.

This settlement will lead to the Company obtaining a Final Decreed Conditional Water Right that will provide the water needed to construct and operate the Piñon Ridge Mill. A similar settlement with the Bureau of Land Management ("BLM") has already been approved by the Court. The only other remaining Objector, the Colorado Water Conservation Board ("CWCB"), has given preliminary approval for a settlement pending the purchase of upstream water, which is readily available from the watershed.

"This water settlement is a major milestone for Energy Fuels and the Piñon Ridge Mill," said Steve Antony, President and CEO of Energy Fuels. "In the Western United States water is scarce and highly significant for all projects. By settling with all of the Objectors, we will secure the water needed for the Mill and add flows to the Dolores River for enhanced wildlife and habitat protection."

Mr. Antony continued, "We were confident of prevailing in Water Court, but we believe this settlement is in the best interests of Energy Fuels. Perhaps more importantly, it shows that Energy Fuels and Sheep Mountain Alliance can reach mutually acceptable agreements that protect the environment."

About Energy Fuels: Energy Fuels Inc. is a uranium and vanadium mineral development company. The Company received a Final Radioactive Materials License from the State of Colorado for the proposed Piñon Ridge Uranium and Vanadium Mill in March 2011. The Mill will be the first uranium mill constructed in the United States in over 30 years.

With more than 45,000 acres of highly prospective uranium and vanadium property located in the states of Colorado, Utah, Arizona, Wyoming, and New Mexico, and exploration properties in Saskatchewan's Athabasca Basin totaling approximately 32,000 additional acres, the Company has a full pipeline of additional development prospects. Energy Fuels, through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corporation and its British Columbia subsidiary, Magnum Uranium Corp., has assembled this property portfolio along with a first class management team, including highly skilled technical mining and milling professionals based in Lakewood and Naturita, Colorado and Kanab, Utah.

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time-to-time with the British Columbia, Alberta and Ontario Securities Commissions.

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