Western Uranium Bets on Itself with Major Share Buyback Plan

TORONTO, ON – December 17, 2025 – In a bold strategic maneuver, Western Uranium & Vanadium Corp. (CSE: WUC) has announced it will buy back a significant portion of its own stock, a move signaling management's profound belief that the company’s market price fails to reflect its true value amidst a strengthening uranium market.

The company unveiled plans for a normal course issuer bid (NCIB) to purchase up to 6,672,291 of its common shares, which represents about 10% of its publicly available stock. The buyback program is slated to run for one year, beginning December 19, 2025. All shares repurchased on the open market will be cancelled, thereby reducing the total number of shares outstanding and increasing the ownership stake of remaining shareholders.

This decision comes as the company’s stock has faced significant headwinds. Despite a resurgent global interest in nuclear energy, Western’s shares have fallen approximately 48% over the past year, recently trading around CA$0.54. It is this disconnect that the company's board of directors aims to address directly. In the official announcement, the board stated its belief that the shares “have been trading in a price range which does not adequately reflect the value of the Company’s business and prospects.”

A Signal of Confidence Amidst Market Headwinds

The share buyback is a classic corporate finance tool used to signal confidence to the market. By using its own cash to repurchase shares, a company is effectively investing in itself. For Western Uranium & Vanadium, this is a particularly strong statement. The move starkly contrasts the company’s recent stock performance with the bullish outlook from some market analysts.

While the stock has languished, analyst consensus maintains a “Strong Buy” rating, with an average 12-month price target of CA$3.99. This target suggests a potential upside of over 600% from its recent closing prices, lending credence to the board’s assertion of undervaluation. The NCIB, therefore, serves as a tangible action to bridge this vast gap between current market perception and perceived intrinsic value.

The repurchases will be conducted on the open market through the Canadian Securities Exchange (CSE) by the investment firm Canaccord Genuity Corp., adding a layer of structured execution to the plan. The program allows for flexibility, as the company is not obligated to purchase the maximum number of shares and can adjust its buying activity based on market conditions. This allows management to be opportunistic in its repurchases while navigating the volatile resource sector.

Balancing Shareholder Returns with Critical Growth

While the buyback is designed to boost shareholder value, it also introduces a critical question of capital allocation. The company has stated it will fund the NCIB using cash on hand. According to its latest financial reports, Western’s cash position stood at $4.43 million as of September 2025, down from $5.66 million in the prior quarter. Historically, the development-stage company has relied on equity and debt financing to fund its operations and has been operating at a loss as it advances its key projects.

This makes the decision to allocate cash to a buyback a significant strategic choice. The funds used could otherwise be directed toward the company's ambitious growth projects, which are vital for its long-term future. Western is currently focused on licensing and developing its Mustang Mineral Processing Plant and advancing its flagship Sunday Mine Complex in the prolific Uravan Mineral Belt of Colorado and Utah. These projects are capital-intensive, requiring sustained investment to move from permitting into production.

The press release acknowledges this tension, noting that the buyback “may have an effect on the anticipated use of funds” from a recently closed $7.25 million private placement. This suggests a potential strategic pivot, where management now sees a greater return on investment in buying back its own discounted shares compared to accelerating project spending. Investors will be keenly watching the company’s forthcoming annual financial reports for a clearer picture of how this new priority will impact project timelines and operational budgets.

Riding the Tides of a Resurgent Nuclear Market

The backdrop for Western’s strategic decision is an increasingly bullish global market for both uranium and vanadium. The uranium sector is experiencing a renaissance driven by a confluence of powerful trends. With global nuclear power generation projected to hit a new all-time high by 2025 and 63 reactors currently under construction worldwide, demand for uranium fuel is on a firm upward trajectory. This is further amplified by the burgeoning development of Small Modular Reactors (SMRs) and the massive electricity requirements of artificial intelligence data centers, both of which are strengthening the case for reliable, carbon-free nuclear energy.

On the supply side, the market remains tight. Years of underinvestment have led to a structural deficit, with analysts forecasting a significant supply shortfall by 2030. This fundamental imbalance has pushed long-term contract prices for uranium toward $86 per pound, a level not seen in over a decade.

Similarly, the vanadium market is poised for growth, driven by its use in high-strength steel and, more critically, in vanadium redox flow batteries (VRFBs). As renewable energy deployment accelerates, the need for large-scale energy storage solutions is surging, positioning VRFBs as a key technology and boosting demand for high-purity vanadium. It is this promising long-term outlook for its core commodities that underpins Western’s confidence in the future value of its undeveloped resources.