Mr. John Cash reports

UR-ENERGY RELEASES 2023 Q1 RESULTS

Ur-Energy Inc. has filed the company's Form 10-Q for the quarter ended March 31, 2023, with the U.S. Securities and Exchange Commission and with Canadian securities authorities SEDAR website.

Ur-Energy's chief executive officer, John Cash, said: "The first quarter of 2023 will go down as one of the snowiest in Wyoming's recorded history. Despite the weather, our team is successfully advancing Lost Creek to production with a targeted ramp up of Header House 2-4 in the second quarter of this year which will be followed by the remaining header houses in Mine Unit 2. With these advances at Lost Creek, we look forward to returning to production operations sufficient to deliver to our customers under our term sales agreements.

"As the market continues to improve, we are increasingly optimistic that additional profitably priced sales contracts will incentivize a ramp up to full production at Lost Creek and, potentially, the buildout of Shirley basin. 2023 promises to be an exciting year for Ur-Energy and our shareholders."

Financial results

As of March 31, 2023, the company had cash resources consisting of cash and cash equivalents of $77.3-million, an increase of $44.3-million from the Dec. 31, 2022, balance of $33.0-million. During the three months ended March 31, 2023, the company generated $2.3-million from operating activities, used $700,000 for investing activities and generated $42.7-million from financing activities, which included net proceeds of $44.0-million from share issuances less a $1.3-million Wyoming bond loan principal payment. Included in the financing activities, on Feb. 21, 2023, the company received net proceeds of $43.2-million from an underwritten public offering (see also Ur-Energy news release, Feb. 21, 2023). In addition to the offering, the company was pleased to record its first uranium sale in nearly three years. The uranium sale was the first of three deliveries to be made in 2023.

In 2023 Q1, the company delivered 100,000 pounds of U3O8 at a sales price of $64.47 per pound for proceeds of $6.4-million to the U.S. Department of Energy (DOE) national uranium reserve. In addition to the DOE sale, the company has two multiyear sales agreements which call for deliveries beginning in 2023 and continuing through 2028, with the possibility of deliveries continuing under one agreement into 2029. Including the Q1 DOE sale, the company expects to sell 280,000 pounds U3O8 in 2023 for $17.3-million and, together with the base amount of 600,000 pounds U3O8 to be sold annually 2024 -- 2028, total anticipated revenues to the company will be approximately $205-million.

U3O8 sales, cost of sales and gross profit

The attached table provides information on the company's U3O8 sales, cost of sales and gross profit.

U3O8 production and ending inventory

The attached table provides information on the company's production and ending inventory of U3O8 pounds.

During 2022, the company purchased 40,000 pounds U3O8 at $49.50 per pound. The pounds were purchased with the intention of selling them to the DOE uranium reserve program. In December, 2022, the company was notified by the DOE that its bid was accepted, and 100,000 pounds U3O8 were delivered to the DOE on Jan. 31, 2023, at an average price per pound sold of $64.47.

During 2020, the company intentionally reduced production operations at Lost Creek in response to the depressed state of the uranium market at that time. As a result, production rates declined significantly and remained low through 2022. Following the company's decision to ramp up in late 2022, Ur-Energy continues to target initial ramp-up of production in 2023 Q2 and production rates are expected to increase throughout the year. As new production is added to inventory, the average cost per pound produced is likely to increase until production rates approach targeted levels.

Continuing guidance for 2023

The company's ramp-up decision in December, 2022, laid its foundation for 2023. The company has continued the Lost Creek advance construction and development program and have steadily progressed hiring of staff and engagement of contractors for the development work ahead as the company returns to commercial production operations at Lost Creek. The company continues to diligently work to optimize processes and refine production plans, supported by the company's experienced Lost Creek operational staff and new hires. The company continues to target HH 2-4 coming on line in Q2.

Construction of the company's centralized services facility is nearly complete at the company's operations headquarters in Casper, Wyo. The new 6,000-square-foot building is adjacent to the company's office building and will house the construction shop and chemistry lab. The company will be able to consolidate its header house construction and lab analyses in support of the Lost Creek operation, and the development and future operation of the Shirley basin project. With all major permits and authorizations for the company's Shirley basin project now in hand, the company stands ready to construct the mine when market conditions support the placement of new offtake sales contracts for the project.

The rally in uranium spot prices which began in 2021 continues to date, with price per pound during Q1 remaining at about $50/lb. Moreover, nuclear utilities and other purchasers are back in the market, resulting in some sustained strengthening of term pricing.

Global recognition of nuclear energy's role in achieving net-zero carbon emissions continues to expand. The Biden Administration also continues to voice support for clean energy and the nuclear industry. G7 nations are prioritizing nuclear energy as clean energy which provides nations with baseload energy, high-quality jobs, economic growth and, importantly, greater energy security.

These changing sentiments and stronger prices enabled us to secure multiyear sales agreements with leading nuclear companies. The company's first two agreements call for annual delivery of a base amount of 600,000 pounds of U3O8 over a five-year period, beginning in 2024. In 2023 H2, the company will deliver into the first sales commitments under these agreements. Sales prices are anticipated to be profitable on a company-wide, all-in cost basis and are escalated annually from initial pricing in 2023 and 2024.

Bills are pending in both the House and Senate to cut off Russian imports of low-enriched uranium. The bills appear to have strong bipartisan and Department of Energy support, but the outcome remains uncertain. Any cessation of imports of nuclear fuel from Russia will introduce uncertainty into the supply chain since Russia is a major global supplier and the West has limited capacity to backfill any supply disruption. Additionally, Congress is considering steps to further bolster United States nuclear fuel production capacity to mitigate the impact from global supply chain disruptions to nuclear utilities which supply nearly 20 per cent of U.S. electricity and 50 per cent of the U.S. carbon-free electricity.

The company cash position as of April 26, 2023, was $73.0-million. The company looks forward to delivering existing and future Lost Creek production into its sales contracts. As noted, the company has sufficient conversion facility inventory on hand to meet 2023 deliveries and, with the DOE sale in Q1, anticipate selling a total of 280,000 pounds U3O8 at an average price of $61.89 for proceeds of $17.3-million this year.

The company will continue to closely monitor the uranium markets, and other developments in the nuclear energy market and from Congress, which may positively affect the uranium production industry and provide the opportunity to put in place additional offtake contracts at pricing sufficient to justify further expansion of production. As always, the company will focus on maintaining safe and compliant operations.

About Ur-Energy Inc.

Ur-Energy is a uranium mining company operating the Lost Creek in situ recovery uranium facility in south-central Wyoming. The company has produced and packaged approximately 2.7 million pounds U3O8 from Lost Creek since the commencement of operations. Ur-Energy now has all major permits and authorizations to begin construction at Shirley basin, the company's second in situ recovery uranium facility in Wyoming and is in the process of obtaining remaining amendments to Lost Creek authorizations for expansion of Lost Creek. Ur-Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development and operation of uranium mineral properties in the United States. The primary trading market for Ur-Energy's common shares is on the NYSE American under the symbol URG. Ur-Energy's common shares also trade on the Toronto Stock Exchange under the symbol URE. Ur-Energy's corporate office is in Littleton, Colo., and its registered office is in Ottawa, Ont.

We seek Safe Harbor.