Mr. John Cash reports

UR-ENERGY PROVIDES 2023 Q4/YE OPERATIONS UPDATE

Ur-Energy Inc. has provided an update on 2023 Q4 and year-end uranium sales and production operations at Lost Creek.

Lost Creek production operations

Ramp-up at Lost Creek in 2023 led to operation of the first two new header houses in Mine unit 2 (MU2). The company's Q4 production figures reflect the progress made in wellfield operations: In 2023, the company captured approximately 103,487 pounds U3O8, of which 68,448 pounds U3O8 were captured in Q4. The average production grade in Q4 was 93.9 mg/l.

Wellfield development continues with header house-specific wells being completed. All delineation drilling throughout the remaining eight planned production areas in MU2 is finished. The company has 11 drill rigs on site with plans to mobilize additional rigs in the coming weeks.

As previously disclosed, the restart at Lost Creek encountered challenges. Commissioning new production areas and recommissioning plant operations, not unexpectedly, come with unique start-up issues. The recovery of U3O8 in MU2 and the restart of plant operations have been no exception. As the plant was being recommissioned, the company encountered equipment issues that temporarily reduced plant throughput. The equipment issues have been or are being addressed, and plant operations will be returning to anticipated production rates.

The staffing of Lost Creek's current 65-plus on-site positions is complete, and the company is experiencing greater retention, which fosters more thorough training. 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 the company's contractors. Certain laboir and contractor/vendor challenges may continue.

While the record-setting winter of 2022 to 2023 is behind the company, the ways in which it affected the company's recruitment, training and restart of operations continue to be felt, but are being overcome. More positively, conditions to date this winter have permitted construction and development activities to progress without significant hindrance or weather delay.

The company has benefited from its advance ordering and recycling of equipment at Lost Creek while supply chain disruption continues to be a global industry issue. The company will continue to order equipment and materials well in advance and remain aware of fluctuating lead times for critical items.

John Cash, Ur-Energy's chief executive officer and chairman of the board, stated: "The world has finally recognized the critical role nuclear energy plays in providing baseload power to support energy security and decarbonization goals. We are pleased to be one of the few publicly traded companies that is commercially mining uranium and expanding our production capacity to sell into a rapidly expanding market. The foresight of our directors and years of hard work by our staff have put us in this unique position and we are excited to continue advancing production in the great state of Wyoming."

Sales of uranium and sales agreements

During 2023, the company sold 280,000 pounds U3O8 from existing inventory for $17.3-million. At Dec. 31, 2023, the company had cash and cash equivalents of $59.7-million. The company's sales in 2024 are projected at 570,000 pounds U3O8 into contracts that were put in place in 2022 when the long-term price was well below $60 per pound. The company looks forward to delivering its product into these commitments from existing inventory and new production.

As disclosed in Q4, the company is advancing agreements to signature with three companies in the global nuclear industry for additional sales commitments over a five-year period beginning in 2026, with an option under one agreement for the buyer to extend its purchase commitments for three additional years, until 2033 (see Oct. 19, 2023, Ur-Energy news release).

Shirley Basin project

As announced in October, 2023, the company is advancing Shirley Basin toward construction and operations. While a "go" decision has not been made, procurement of long-lead items for the Shirley Basin project has been initiated and detailed planning for other development and construction activities is in progress. The company currently estimates it will take approximately 24 months to complete procurement, development and construction activities of the satellite facility and its associated first mine unit to initiate production following a "go" decision. This estimate is based on the longer lead times the company is seeing for critical equipment; especially for electrical equipment. Shirley Basin is fully permitted and construction ready with a licensed wellfield capacity of one million pounds U3O8 per year.

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 produced and packaged approximately 2.8 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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