Mr. John Cash reports

UR-ENERGY RELEASES 2023 Q2 RESULTS AND ANNOUNCES SECOND QUARTER EARNINGS WEBCAST / TELECONFERENCE TO BE HELD AUGUST 15, 2023

Ur-Energy Inc. has filed the company's Form 10-Q for the quarter ended June 30, 2023, with the U.S. Securities and Exchange Commission at EDGAR and with Canadian securities authorities at SEDAR+.

Ur-Energy chief executive officer John Cash said: "This was an exciting quarter with our Lost Creek project moving back into commercial production. Despite significant challenges in recruitment of personnel and contractors, and the worst Wyoming winter on record, we are proud to say we began producing [triuranium octoxide] again to build inventory for delivery into our three sales contracts. Congratulations and a genuine thank you to each of our team members, whose Wyoming cowboy-up spirit of perseverance has made the ongoing ramp-up possible.

"Demand for nuclear energy continues to expand as nations seek to lower carbon emissions and foster security through energy independence. While the demand for nuclear fuel grows, risk in the supply chain is escalating as evidenced by the war in Ukraine, transportation issues for Kazakh uranium and Russian LEU exports, the recent coup in Niger, and a lack of any significant new mine production in the near term.

"Our strategy to take advantage of the improving market is simple: continue growing our long-term sales book as the market continues to improve and ramp up production at Lost Creek and, ultimately, at Shirley basin. We will also continue to consider acquisition opportunities to increase our production portfolio but will remain disciplined by only seeking to acquire, or organically develop, quality, producible projects."

Financial results

As of June 30, 2023, it had cash resources consisting of cash and cash equivalents of $68.0-million, an increase of $35.0-million from the Dec. 31, 2022, balance of $33.0-million. During the six months ended June 30, 2023, it used $5.1-million for operating activities, used $1.2-million for investing activities and generated $41.3-million from financing activities, which included net proceeds of $44.0-million from share issuances less a $2.7-million Wyoming bond loan principal payment.

In the first six months of 2023, it sold 100,000 pounds to the U.S. Department of Energy uranium reserve program at an average price of $64.47. It has three multiyear sales agreements, having recently added a third agreement to its contract book, which calls for deliveries of 100,000 pounds U3O8 annually from 2025 to 2027. Collectively, its agreements call for deliveries beginning in 2023 and continuing through 2028, with the possibility of deliveries continuing under one agreement into 2029. Including the already completed 100,000-pound sale, it expects to sell 280,000 pounds U3O8 in 2023 for $17.3-million. With the addition of its third multiyear sales agreement, its current anticipated revenues from 2023 to 2028 will be approximately $220-million.

Continuing guidance for 2023

Its ramp-up decision in December, 2022, laid its foundation for 2023. Notwithstanding the winter endured in Wyoming this year, it was able to advance its well field construction and development plans to return to commercial production operations at Lost Creek, with the production flow initiated from HH 2-4 in May. Production rates increased noticeably in June. It continues to diligently work to optimize processes and refine production plans, supported by its experienced Lost Creek operational staff and new hires. It expects HH 2-5 will also be brought on-line this year. Additional header houses will come on-line thereafter based upon its production targets for delivery into its sales commitments.

Construction of its centralized service facility is complete at its company-owned operations headquarters in Casper, Wyo. The new 6,000-square-foot building houses its construction shop and fully licensed chemistry lab. It is able to consolidate its header house construction and lab analyses in support of Lost Creek and other future operations.

The Casper facility will also support the development and future operation of the Shirley basin project. With all major permits and authorizations for its Shirley basin project in place, it stands ready to construct the mine when market conditions support the placement of new offtake sales contracts for the project.

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, baseload energy, which provides nations with high-quality jobs, economic growth and, importantly, greater energy security.

Uranium spot prices during second quarter remained above $50 per pound. U3O8, with much of the period experiencing prices in the mid-$50s per pound U3O8. Nuclear utilities and other purchasers are back in the market, resulting in sustained term pricing.

These stronger prices enabled it to secure multiyear sales agreements with leading nuclear companies. It has three agreements that call for combined annual delivery of a base amount of 600,000 to 700,000 pounds of U3O8 over a five-year period, beginning in 2024. Sales prices are anticipated to be profitable on a company-wide, all-in cost basis, and are escalated annually from initial pricing. In second half 2023, it will deliver into the first sales commitments under these agreements.

Bills are pending in both the House and Senate to cut off Russian imports of low-enriched uranium. While the bills appear to have strong bipartisan and Department of Energy support, 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 U.S. 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.

Its cash position as of Aug. 3, 2023, was $63.7-million, and it has 223,790 pounds U3O8 in its conversion facility inventory. It looks forward to delivering existing and future Lost Creek production into its sales contracts. As noted, it has sufficient conversion facility inventory on hand to meet its remaining 2023 deliveries and, with the DOE sale in first quarter, anticipates selling a total of 280,000 pounds U3O8 at an average price of $61.89 for proceeds of $17.3-million this year with average gross profit margins expected to be above 40 per cent.

It will continue to closely monitor the uranium markets and other developments in the nuclear energy market, 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, it will focus on maintaining safe and compliant operations.

Earnings webcast and teleconference

It will host a webcast and teleconference on Tuesday, Aug. 15, 2023, at 1:30 p.m. Mountain Time/3:30 p.m. Eastern Time.

Ur-Energy management will provide a review of its Q2 2023 operations and results. A question-and-answer session will follow the presentation. Please join the company by phone or on-line as follows.

Toll-free number:  888-506-0062

International number:  973-528-0011

Provide the event code 517113 or ask to join the Ur-Energy call.

The webcast will be available 10 minutes prior to the call.

Preregistration and participation access will be necessary. Following the webcast, a replay will be available.

About Ur-Energy Inc.

Ur-Energy is a uranium mining company operating the Lost Creek in situ recovery uranium facility in south-central Wyoming. It has produced and packaged approximately 2.7 million pounds U3O8 from Lost Creek since the commencement of operations. Ur-Energy 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.

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