Mr. John Cash reports

UR-ENERGY RELEASES 2023 Q3 RESULTS

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

Ur-Energy chief executive officer John Cash said: "The uranium market improved dramatically during the third quarter as primary supply failed to keep pace with demand from global utilities and financial players and as geopolitical instability weighed on the market. As the price of uranium improved, we provided increasingly higher priced bids in response to requests for proposals from utilities and other buyers. We are optimistic that the price of uranium will continue to increase, and we look forward to continuing to fill our contract book with production from the active Lost Creek operation and from the fully permitted Shirley Basin project once a construction decision is made.

"Our dedicated team has done an excellent job of positioning the company as the only active uranium miner in the [United States] and one of only two active miners in North America. These are exciting times, and we commit to work diligently to continue ramping up production in a safe and environmentally responsible manner."

Financial results

As of Sept. 30, 2023, it had cash and cash equivalents of $54.6-million, an increase of $21.6-million from the Dec. 31, 2022, balance of $33.0-million. During the nine months ended Sept. 30, 2023, it used $16.7-million for operating activities, used $1.9-million for investing activities and generated $40.5-million from financing activities, which included net proceeds of $44.5-million from share issuances less $4.0-million of Wyoming bond loan principal payments.

In the first nine months of 2023, it sold 190,000 pounds of U3O8 at an average price of $62.56. This includes its first sale into its three multiyear sales agreements, which, collectively, 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 sales of 190,000 pounds U3O8, it expects to sell a total of 280,000 pounds U3O8 in 2023 for $17.3-million. With the addition of its third multiyear sales agreement, its current anticipated revenues in 2023 to 2028 will be approximately $220-million.

Reconciliation of non-generally accepted accounting principle measures with U.S. GAAP financial statement presentation

The attached tables include measures such as U3O8 sales, U3O8 cost of sales, U3O8 gross profit, U3O8 pounds sold, U3O8 price per pound sold, U3O8 cost per pound sold and U3O8 gross profit per pound sold. These measures do not have standardized meanings within U.S. GAAP or a defined basis of calculation. These measures are used by management to assess business performance and determine production and pricing strategies. They may also be used by certain investors to evaluate performance. These measures exclude disposal fees and lower of cost or NRV adjustments.

U3O8 sales, cost of sales and gross profit

An attached table provides information on its U3O8 sales, cost of sales and gross profit.

U3O8 production and ending inventory

An attached table provides information on its production and ending inventory of U3O8 pounds.

Continuing guidance for 2023

Its ramp-up decision in December, 2022, laid its foundation for 2023. Notwithstanding the historic winter endured in Wyoming this year, it advanced its well field construction and development plans, and returned to commercial production operations at Lost Creek in May, with the production flow initiated from HH 2-4. Production rates increased noticeably in June. HH 2-5 was brought into initial production late in third quarter. It continues to diligently work to optimize processes and refine production operations. It expects HHs 2-6 and 2-7 will also be brought on-line this year. Thereafter, it anticipates additional header houses will come on-line 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. 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. All major permits and authorizations for its Shirley Basin project are in place. As it is expanding its sales contract book and with the continuing improvements in the market, it is initiating procurement of long-lead-time items for the Shirley Basin satellite facility and advancing other activities at the site, with the objective of shortening construction and ramp-up when decisions are made to proceed with construction. It continues to watch market conditions and its growing contract book to make a construction decision with respect to Shirley Basin.

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. As well, multiple nations, as well as global nuclear fuel purchasers, are recognizing the stability and security of North American uranium for nuclear energy.

Uranium spot prices continued to strengthen during Q3, with pricing averaging approximately $63 per pound U3O8 and reaching highs during the period above $70 per pound U3O8. Nuclear utilities and other purchasers are back in the market, moving not only spot pricing, but term pricing as well, which exceeded $60 per pound U3O8 during Q3.

As the spot and term prices of uranium have enjoyed sustained increases, it has seen a dramatic increase in request for proposals (RFPs) for uranium sales from U.S., European and Asian utilities, and other global fuel buyers. It 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.

It is in advanced discussions with three companies in the global nuclear industry for additional sales commitments. It is optimistic that negotiations with all three purchasers will result in completing additional sales agreements during fourth quarter. Multiple additional RFPs are expected to be issued in the remaining weeks of 2023. It will consider and respond to those which may continue to diversify its sales portfolio with multiple purchasers and sales commitments that will complement its production profile over the next decade.

Stronger prices over the past year have already 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 an all-in cost basis and escalate annually from initial pricing. In Q3 2023, it delivered 90,000 pounds of U3O8 into the sales commitments under these agreements, and it will deliver another 90,000 pounds U3O8 in Q4 2023.

Its cash position as of Oct. 26, 2023, was $55.0-million. it looks forward to delivering existing and future Lost Creek production inventory into its sales contracts. With the Department of Energy sale in first quarter, it anticipates selling a total of 280,000 pounds U3O8 this year at an average price of $61.89 per pound for proceeds of $17.3-million 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.

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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