Westwater Announces 25% Additional Increase in Phase I Production to 12,500 MT Annually While Maintaining Existing Budget

CENTENNIAL, Colo.–(BUSINESS WIRE)–Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite development company (“Westwater” or the “Company”), is announcing an additional increase in Phase I production to 12,500 mt per year of battery-grade natural graphite anode material. In November 2023, Westwater previously announced a capacity increase from 7,500 mt to 10,000 mt per year.

During the fourth quarter of 2023 and early 2024, Westwater worked with its third-party engineering firm and equipment manufacturers to increase design capacity of coated spherical purified graphite (“CSPG”) production for Phase I of the Kellyton Graphite Processing Plant (“Kellyton Plant”). As a result, Westwater now expects to produce 12,500 MT of CSPG annually – an increase of 25 percent – while remaining within the Phase I cost estimate of $271 million. “Westwater is making great progress commercially with the signing of our first multi-year offtake agreement, and now technically by adding additional Phase I production,” said Frank Bakker, Westwater’s President and CEO. “We believe the market interest in our CSPG is due in part to the recent Foreign Entity of Concern guidance requiring EV tax credit vehicles use of IRA-compliant graphite by 2025, and by new Chinese export restrictions on graphite that have reduced security of supply.”

“Customer engagement and market demand for domestic CSPG remains strong following our February 5th announcement of our first multi-year offtake agreement with volumes ramping up to 10,000 mt per year,” said Terence J. Cryan, Westwater’s Executive Chairman. “By increasing the production of Phase I at the Kellyton Plant to 12,500 mt per year, Westwater is responding to the customer demand signals for ‘Made in the USA’ battery anode material. This 25% increase in Phase 1 plant capacity simultaneously improves the projected Kellyton Plant economics, and importantly, the inherent estimated profitability of our company. It will also aid us in securing the debt financing planned for the completion of Phase 1.”

Recent Government Regulation of Graphite Products

Chinese exporters are now required to apply for permits to ship two types of graphite material, including high-purity, high-hardness and high-intensity synthetic graphite material and natural flake graphite and its products. Nearly 100% of the battery-grade natural graphite materials produced in 2023 involve some amount of processing in China. Westwater believes these export restrictions continue to highlight the supply-chain risk for the U.S. and other countries related to natural graphite products.

The U.S. Department of the Treasury (the “Treasury Department”) has published guidance on key requirements for federal clean vehicle tax credits established by the IRA. In addition, the Treasury Department has proposed new regulations to clarify the application of Foreign Entity of Concern (“FEOC”) credit eligibility exclusions, which specifically identifies the People’s Republic of China as an FEOC. Under these regulations, any vehicle whose batteries contain critical minerals – including graphite – that were extracted or processed in anyway, and to any degree, by an FEOC – including China – will be ruled ineligible for the Clean Vehicle Tax credit of $7,500. As a result, an FEOC must be excluded from a vehicle battery’s supply chain in order for the vehicle to be eligible for the tax credit.

Westwater is currently constructing its Kellyton Plant with the intent to provide high-quality natural graphite anode material to battery manufacturers in the United States and believes its product will be 100% IRA compliant.

About Westwater Resources, Inc.

Westwater Resources, Inc. (NYSE American: WWR), an energy technology company, is focused on developing battery-grade natural graphite. The Company’s primary project is the Kellyton Plant that is under construction in east-central Alabama. In addition, the Company’s Coosa Graphite Deposit is the most advanced natural flake graphite deposit in the contiguous United States and located across 41,965 acres (~17,000 hectares) in Coosa County, Alabama. For more information, visit www.westwaterresources.net.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “demand,” “intend,” “expects,” “estimates,” “planned,” “strong,” “projected,” “believes,” and other similar words. Forward looking statements include, among other things, statements concerning offtake agreements, the construction and operation of the Company’s Kellyton Plant, and the costs, schedules, production and economic projections associated with that plant. The Company cautions that there are factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to uncertainties and other factors, many of which are outside the control of the Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Westwater’s Annual Report on Form 10-K for the year ended December 31, 2022, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: (a) our ability to finance growth plans and raise debt or equity capital; (b) the spot price and long‑term contract price of graphite (both flake graphite feedstock and purified graphite products) and vanadium, and the world-wide supply and demand of graphite and vanadium; (c) the effects, extent and timing of additional competition in the markets in which we operate; (d) the ability to obtain contracts with customers; (e) available sources and transportation of graphite feedstock; (f) the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of the Kellyton graphite processing plant; (g) the ability to construct and operate the Kellyton graphite processing plant in accordance with the requirements of permits and licenses and the requirements of tax credits and other incentives; (h) effects of inflation and rising interest rates; (i) the availability and supply of equipment and materials needed to construct the Kellyton graphite processing plant; (j) stock price volatility; (k) government regulation of the mining and manufacturing industries in the United States; (l) unanticipated geological, processing, regulatory and legal or other problems we may encounter; (m) the results of our exploration activities at the Coosa Graphite Deposit, and the possibility that future exploration results may be materially less promising than initial exploration results; (n) any graphite or vanadium discoveries at the Coosa Graphite Deposit not being in high enough concentration to make it economic to extract the metals; (o) currently pending or new litigation or arbitration; (p) our ability to maintain and timely receive mining, manufacturing, and other permits from regulatory agencies; and (q) other factors which are more fully described in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC.

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