Dear Shareholder,

On Thursday August 27, 2009, The Energy Report interviewed Malcolm Gissen and Marshall Berol, managers of the Encompass Fund, one of the country�s top-performing mutual funds so far in 2009. As of yesterday, their fund is up 80% year-to-date, and ranks 15th in performance among 13,800 U.S. funds as tracked by Morningstar (www.encompassfund.com). Both money managers are bullish on uranium, and expressed strong opinions about Uranium Energy Corp.

During the interview, Mr. Berol made the following statements about Uranium Energy Corp:

�An area that we like very much is uranium because of, again, supply and demand factors, production factors, production difficulties. When you talk about the recession and its effect on supply, that hasn't affected the uranium industry.

�One of the companies that we have in the portfolio and that we have been very positive on is Uranium Energy Corp. (NYSE.A:UEC). Uranium Energy has a number of uranium projects that they acquired over the last several years in the U.S.�in Colorado, Utah, Wyoming, Texas and New Mexico. Their primary project is in Texas and it is progressing, we believe, very, very nicely toward the objective of producing uranium in Q4 '10, 12 to 15 months from now.

�We have been in Uranium Energy for some period of time. We�ve added to it and it has been an outstanding performer this year, as it went from under a dollar at the end of last year to currently roughly $2.50. It has been higher. They are expected to be the next uranium-producing company in the U.S., and there's no question that there will be a market for that uranium. They may or may not sell it before they start production. They may or may not be the company that takes it into production. It is possible that somebody will come along, a uranium user, and want to buy the project and/or the company. But regardless of whether it gets bought, we feel there's a very bright future for Uranium Energy...�

Please feel free to give us a call at 1-866-748-1030 if you have questions.

Thank you,

Uranium Energy Corp

Highlights of Uranium Energy Corp as an investment opportunity:

• Well funded to aggressively pursue its key development targets in the months ahead with more than $25 million on hand 
• One of the world�s few near-term uranium producers  
• Recently added to the Russell 2000 and Russell 3000 Indexes 
• Low permitting risk in Texas with Draft Permit and Production Area Authorization in hand 
• Technical team involved with 35 ISR projects in the US 
• Low geological risk with shallow deposit and ISR process 
• Last major ISR project put into production (in 2005) by UEC team in Texas, and 
• �Security of supply� premium with all projects in the U.S

For further information about Uranium Energy Corp (NYSE - AMEX: UEC), please click: www.uraniumenergy.com or call 1.866.748.1030