\nFounded four decades ago and originally incorporated to mine uranium, Westwater Resources has been reinvented as a 21st<\/sup> century energy materials development company focused on the production of battery-grade graphite. The Company\u2019s Coosa Graphite Project is the most advanced graphite project in the United States and, when developed, will produce high purity battery-grade graphite, a material that is essential for the components of high-technology energy applications such as electric automobiles.\n<\/p>\n Westwater recently announced delivery of 30 metric tonnes of natural flake graphite concentrate at pilot plant contractor Dorfner Anzaplan\u2019s facility in Hirschau, Germany<\/a>. This material is being utilized in the Company\u2019s pilot plant facilities presently under construction in Germany, upstate New York and Illinois. Operation of the pilot plants is expected to commence this month and continue through March 2021.\n<\/p>\n \nWestwater continues to develop a proprietary process for the production of non-Chinese battery-grade graphite. The Company has filed a provisional patent application with the U.S. Patent and Trademark Office for its proprietary graphite purification technology, which produces battery-grade graphite with a more sustainable environmental footprint than that produced in China. Independent performance testing of Westwater\u2019s ULTRA-CSPG\u2122 (Coated Spherical Purified Graphite or “CSPG\u201d) material produced in a laboratory setting shows that it performs as well or better than benchmark commercially available natural flake and synthetic materials. Independent performance testing of Westwater\u2019s ULTRA-PMG\u2122 (Purified Micronized Graphite or \u201cPMG\u201d) material<\/a> has also shown outstanding resistivity values as a conductivity enhancer.\n<\/p>\n \nDuring the third quarter, Westwater added to its management team by appointing Jay Wago as Vice President of Sales and Marketing<\/a>. Mr. Wago has years of solid experience in the battery materials business, and he has been tasked with bolstering the Company\u2019s marketing strategy to create greater awareness of Westwater\u2019s American-made graphite battery material to end-users worldwide. The Westwater marketing team, under Mr. Wago\u2019s direction, is working to place battery-grade graphite products produced during the pilot plant program in the hands of potential customers.\n<\/p>\n On September 8, 2020, Westwater entered into a Letter of Intent to sell its U.S. uranium business to enCore Energy Corp. of Vancouver, BC, a Toronto Venture Exchange-listed company (TSX.V:EU)<\/a>. Westwater will receive approximately $2 million in shares of enCore stock and will retain royalty interests on its former New Mexico properties. This sale is expected to eliminate approximately $4 million in annual expenditures by the Company and nearly $7.8 million in liabilities based on September 30, 2020 book values. The transaction is expected to close on or before December 31, 2020. Westwater will retain its interests in its uranium business that is the subject of an international arbitration with the Republic of Turkey.\n<\/p>\n On September 30, 2020, the U.S. President issued an executive order addressing the threat to the United States domestic supply chain of reliance on critical minerals from foreign adversaries<\/a> and declaring such reliance a national emergency. The critical minerals referred to in the executive order were previously identified by the Department of Interior in May 2018, and include both natural graphite and vanadium. The executive order highlights the importance of Westwater\u2019s plans to develop the Coosa Graphite Deposit in east-central Alabama, where the Company has also discovered widespread and significant levels of vanadium mineralization. In 2021, Westwater expects to commence further exploration for vanadium at the Coosa Graphite Project.\n<\/p>\n \n\u201cOur management team possesses a unique combination of battery materials knowledge and extensive project-execution experience alongside manufacturing and processing expertise. This expertise spans everything from graphite to precious metals to energy materials,\u201d said Chris Jones, CEO of Westwater Resources. \u201cCoupled with decades of capital markets experience, we have what we need to build a powerful presence in the new energy marketplace. In the third quarter of 2020 we reached a number of significant milestones, and I believe these milestones position our Company for growth throughout 2021. We continue to execute our business plan without pause.\u201d\n<\/p>\n FINANCIAL SUMMARY<\/span><\/b><\/p>\n Table 1: Financial Summary<\/b><\/p>\n
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