Mr. John Cash reports

UR-ENERGY PROVIDES Q3 OPERATIONS UPDATE

Ur-Energy Inc. has provided the following update on Q3 2023 production operations and ramp-up activities at Lost Creek, efforts to build the company's uranium sales contract book, and advances at Shirley basin.

Lost Creek production operations and ramp-up activities

Ramp-up of operations at Lost Creek continues to progress with two new header houses in production in mine unit 2 (MU2): HH 2-4 and, most recently, HH 2-5. During the quarter, Ur-Energy produced approximately 30,491 pounds U3O8 (triuranium octoxide) from HH 2-4. The company plans to continue bringing header houses on-line through the remainder of 2023 and going forward based upon its production plans.

Not unexpectedly, the restart at Lost Creek has encountered both familiar and new challenges. New production areas typically come with unique start-up issues to be addressed and the continuation of mining in MU2 is no exception. Among the more significant new challenges, however, has been recruitment and retention of employees and contractors. While Ur-Energy has hired nearly every operations position, the turnover rate has hampered efficient operations. The company is seeing steady improvement in production activities as its growing core staff have more time on the job. The Wyoming labour market has similarly affected Ur-Energy's contractors. Together with the record-setting winter of 2022/2023, these labour-related issues have resulted in initial work being slowed at Lost Creek. Ur-Energy expects that as it retains a trained, core work force, these inefficiencies will be overcome. It also anticipates that as the Wyoming unemployment rate stabilizes the company's contractors will also find long-term employees.

The Casper construction facility is fully staffed and operating as planned to allow for the construction of header houses, including electrical and instrumentation work, prior to delivery to Lost Creek. HHs 2-6 and 2-7 are nearing completion, and construction is beginning on HH 2-8. The company's laboratory in Casper is also fully staffed.

Supply chain disruption continues to be a global and uranium industry issue. While most in industry continue to face procurement challenges, Ur-Energy's advanced ordering and recycling of old equipment at Lost Creek have allowed it to largely overcome the issue with minimal delays. The company will continue to order equipment and materials well in advance and keep a close eye on lead times for critical items. Ur-Energy believes many of the supply chain issues it is experiencing are also the result of labour issues.

Sale of uranium and sales agreements

During the quarter, Ur-Energy made its first delivery into its term contracts, with 90,000 pounds U3O8 delivered to a purchaser. The company received proceeds of $5.4-million. A second delivery of 90,000 pounds U3O8 is scheduled to be made in Q4 2023. Currently, the company's sales deliveries in 2024 are projected at 570,000 pounds U3O8, as deliveries are made into two of its three previously announced sales agreements.

As the spot and term prices of uranium increase, Ur-Energy has seen a dramatic increase in requests for proposal (RFPs) for uranium sales from U.S., European and Asian utilities, and other global fuel buyers. The company has responded to the RFPs with increasing prices commensurate with improvements in the market and recognizing the premium paid for North American production due to its geopolitical stability.

Ur-Energy is in advanced discussions with three companies in the global nuclear industry for additional sales commitments. The company is optimistic that negotiations with all three purchasers will result in completing additional sales agreements during Q4.

The most significant of the three proposals calls for annual delivery of between 100,000 and 350,000 pounds U3O8 over a five-year period beginning in 2026; the agreement will include the option for the buyer to add up to three additional years of deliveries of 300,000 pounds U3O8 beginning in 2031. The pricing is a combination of an escalated fixed price, which is well above anticipated all-in costs of production, and market-related pricing that is subject to an escalated floor and ceiling. The purchaser will have the option of a small flex to the annual delivery.

Shirley basin update

Based on the company's advanced negotiations with these nuclear fuel purchasers and the strengthening market, the Ur-Energy board has authorized management to proceed with additional tasks to advance Shirley basin. The company is initiating procurement of long-lead items for the Shirley basin project, and will advance other activities in the field, with the objective to shorten the time for construction and ramp-up when the "go" decision is made by the board for construction.

Shirley basin is fully permitted and construction ready with a licensed wellfield capacity of one million pounds U3O8 per year. The company currently estimates it will take up to 24 months to complete all procurement, development activities and construction of the satellite facility and associated first mine unit to initiate production. This estimate is based on the long lead times it is seeing for critical equipment, especially for electrical equipment. The decision to proceed with construction of the satellite and first mine unit for production operations will be considered on a continuing basis as the uranium market and the company's contract book evolve.

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.

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