Special U.S. Federal Income Tax Filing Requirements Related to Your Investment in ENERGY FUELS INC.

Shareholders who are U.S. taxpayers should be aware that Energy Fuels Inc. ("Energy Fuels") expects to be a passive foreign investment company ("PFIC') for its current fiscal year, expects that it was a PFIC in its taxable year ended September 30, 2007 and expects that it may also be a PFIC in subsequent years.

The attached PFIC Annual Information Statement is being provided to you pursuant to the requirements of Treasury Regulations Section 1.1295-1(g) (1). This PFIC Annual Information Statement contains information to enable you, should you choose, to elect to treat Energy Fuels as qualified electing fund ("QEF"). A U.S. shareholder does not have to make this election for shares held in his or her retirement account.

A U.S. shareholder who makes a QEF election is required to annually include in his or her income his or her pro rata share of the ordinary earnings and net capital gains of Energy Fuels, whether or not Energy Fuels distributes any amounts to its shareholders.

Energy Fuels did not have ordinary earnings or net capital gains for its taxable year ended September 30, 2007 and believes that it will not have ordinary earnings or net capital gains in any future years in which it may be a PFIC.

If you do not elect to treat Energy Fuels as a QEF, then if Energy Fuels is a PFIC for any year during your holding period, then you would be subject to the PFIC rules, which could result in adverse tax consequences to you. For example, if you were to receive a so-called "excess distribution" or if you sell your Energy Fuels stock in the future at a gain, you could be required to allocate such distribution or gain, as the case may be, ratably over the time period during which you held your stock while Energy Fuels was a PFIC, and pay tax at the highest rate (rather than, if otherwise applicable, the long-term capital gain rate) on ordinary income in effect for each year to which the gain is allocated plus interest on the tax.

The QEF election is made by completing and attaching Form 8621 to a U.S. federal income tax return filed by the due date of the return, as extended.

We strongly urge you to consult your own tax advisor for advice concerning the application of the U. S. federal income tax rules governing PFICs.

The instructions for Form 8621 can be found on the Internet at http://www.irs.gov/pub/irsfill/f8621.pdf.  If you would like us to send you a copy of Form 8621, please contact our office at 303 974 2140 Attn: Gordon Phair, Chief Financial Officer, Suite 600, 44 Union Blvd. Lakewood, Colorado, USA 80228

 PFIC Annual Information Statement