Mr. John Cash reports

UR-ENERGY RELEASES 2023 YEAR END RESULTS AND ANNOUNCES TWO NEW URANIUM SALES AGREEMENTS

Ur-Energy Inc. has filed the company's annual report on Form 10-k, consolidated financial statements, and management discussion and analysis, all for the year ended Dec. 31, 2023, with the U.S. Securities and Exchange Commission on EDGAR and with Canadian securities authorities on SEDAR+. These filings also may be accessed on the company's website. Shareholders of the company may receive a hard copy of the consolidated financial statements, free of charge, upon request to the company.

Ur-Energy chief executive officer John Cash said: "We are pleased to have met our sales guidance during 2023, with $17.3-million in revenues received during the year. Our ramp-up and recommissioning activities at Lost Creek are advancing well now. In February, we made our first shipment of U3O8 [triuranium octoxide] to the conversion facility since returning to commercial production. It was our 75th shipment from Lost Creek. We have recently completed two additional sales agreements, strengthening our sales contract book through 2030.

"As the uranium market evolves toward supply from secure jurisdictions, we continue to see a significant number of requests for proposals from global fuel buyers. Our objective with the ramp-up of production from Lost Creek and ultimately from Shirley Basin is to continue signing well-priced, long-term contracts that provide strong profit margins for many years to come. We also plan to leave some of our production capacity uncontracted so we can participate in a strong spot market. We remain one of the few North American producers as our mine staff continues to successfully progress production toward these objectives."

Lost Creek operations

Ramp-up activities at Lost Creek in 2023 led to operation of the first two new header houses in Mine Unit 2 (MU2). Ur-Energy's Q4 production figures reflect the progress made in well field operations: In 2023, Ur-Energy 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 milligrams per litre U3O8.

Well field construction and development continues in all areas of MU2. Subsequent to year-end, Ur-Energy completed all delineation drilling throughout the remaining eight planned production areas in MU2. Ur-Energy has 12 drill rigs on site, with plans to mobilize additional rigs in the coming weeks. Production in HH 2-6 came on line after year-end, with HH 2-7 anticipated to come on line in early March, 2024. All remaining planned production areas of MU2 is scheduled to be drilled and constructed during 2024. Additionally, Ur-Energy is planning delineation drilling and initial well installation in phase 2 of Mine Unit 1 (MU1) when drilling is complete in MU2.

Financial results

As of Dec. 31, 2023, Ur-Energy had cash resources of $59.7-million, which was an increase of $26.7-million from the $33-million balance on Dec. 31, 2022. During 2023, Ur-Energy generated $46.1-million from financing activities; used $17-million for operating activities and $2-million for investing activities; and increased restricted cash by $400,000.

U3O8 sales, cost of sales and gross profit

An attached table provides information on Ur-Energy's U3O8 sales, cost of sales and gross profit.

Ur-Energy sold a total of 280,000 pounds U3O8 in 2023 at an average price per pound sold of $61.89 and the average cost per pound sold was $30.99, which resulted in an average gross profit per pound sold of $30.90 with an average gross profit margin of nearly 50 per cent. Including NRV adjustments, the gross loss was $1.7-million and $6.8-million for the years ended Dec. 31, 2023, and 2022, respectively. Excluding the NRV (net realizable value) adjustments, Ur-Energy realized gross profits of $8.7-million and nil for the years ended Dec. 31, 2023, and Dec. 31, 2022, respectively. Ur-Energy was to generate positive gross profits from uranium sales in 2023.

U3O8 production and ending inventory

An attached table provides information on Ur-Energy's production and ending inventory of U3O8 pounds.

Year ended Dec. 31, 2023, compared with year ended Dec. 31, 2022

An attached table summarizes the results of operations for the years ended Dec. 31, 2023, and Dec. 31, 2022.

2024 guidance

Ur-Energy's ramp-up decision in December, 2022, laid the company's foundation for 2023. Notwithstanding the historic 2022/2023 winter endured in Wyoming, Ur-Energy advanced its well field construction and development plans and returned to commercial production operations at Lost Creek in Q2, with production initiated in HH 2-4. Subsequently, production has been brought on line in HH 2-5 and HH 2-6, and HH 2-7 is anticipated to come on line in early March, 2024. Ur-Energy anticipates additional header houses in MU2 will be brought on line throughout the year to meet the company's production goals.

Ur-Energy continued to diligently work to optimize processes and refine production operations, including in the recommissioning of the Lost Creek plant equipment and processes. At Feb. 29, 2024, the plant processing and drying operations were performing routinely, with approximately 32,000 pounds U3O8 drummed thus far in 2024.

Ur-Energy expects 2024 production from MU2 to be between 650,000 and 750,000 pounds, with approximately 600,000 to 700,000 pounds U3O8 drummed and packaged during the year. Ur-Energy made its first shipment of U3O8 to the converter in February, 2024, and anticipate routine shipments throughout the year.

Ur-Energy has contractual commitments, secured in 2022, for deliveries of 570,000 pounds U3O8 during 2024. Currently, in addition to delivering into its term sales obligations, Ur-Energy plans to build inventory at the conversion facility and therefore do not foresee making deliveries into spot market contracts this year. Ur-Energy will, however, continue to monitor spot market pricing and may make spot sales if warranted.

Uranium spot prices strengthened throughout 2023 and into 2024, with pricing averaging approximately $63 per pound U3O8 in 2023 and reaching highs above $90 per pound U3O8 during the year. Spot pricing thus far in 2024 has returned to prices over $100 per pound, although it was reported at $95 per pound at Feb. 29, 2024. Nuclear utilities and other purchasers are back in the market, moving not only spot pricing, but term pricing as well, which exceeded $70 per pound U3O8 at the end of January, 2024.

As the spot and term prices of uranium enjoyed sustained increases in the latter part of 2023, Ur-Energy saw a dramatic increase in request for proposals (RFPs) for uranium sales from U.S., European and Asian utilities and other global fuel buyers. Ur-Energy 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 recently signed its fourth agreement calling for deliveries of a base annual quantity ranging from 100,000 to 350,000 pounds U3O8 from 2026 through 2030. The purchaser may flex the annual quantity up or down by as much as 10 per cent. This agreement provides in part for market-related pricing. Additionally, Ur-Energy has signed its fifth U3O8 sales agreement, which includes delivery commitments for five years beginning in 2026, with an initial delivery of 50,000 pounds U3O8 in 2026. In each of 2027 through 2030, Ur-Energy will sell 200,000 pounds U3O8 annually under this agreement. All sales will be made at fixed prices, escalated from the base agreed price.

All major permits and authorizations for Ur-Energy's Shirley Basin project are in place. As Ur-Energy is growing its sales contract book and with the continuing improvements in the market, Ur-Energy has initiated procurement of long-lead time items for the Shirley Basin satellite facility and is advancing other activities at the site, with the objective of shortening construction and ramp-up when the decision is made to proceed with construction. Ur-Energy continues to consider the market 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. 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.

Ur-Energy is pleased to be one of the few publicly traded companies that is commercially recovering uranium and expanding its production capacity to sell into an expanding market. Stronger prices have already enabled Ur-Energy to secure multiyear sales agreements with leading nuclear companies. Ur-Energy is securing pricing that includes a market-related calculation on recent awards and contracts. Ur-Energy now has five agreements that call for combined annual delivery of a base amount of 550,000 to 1.1 million pounds of U3O8 over a six-year period, beginning in 2025. Ur-Energy's sales under these agreements began in 2023 and call for an additional 570,000 pounds of U3O8 to be delivered in 2024. Sales prices are anticipated to be profitable on an all-in production cost basis and escalate annually from initial pricing.

Ur-Energy's cash position as of Feb. 29, 2024, was $66.2-million. Ur-Energy looks forward to delivering existing and future Lost Creek production inventory into its sales contracts.

Ur-Energy will continue to closely monitor the uranium markets and other developments that may positively affect the uranium production industry and provide the opportunity to put in place additional offtake sales contracts at pricing sufficient to justify further expansion of production at Lost Creek and to support a decision to construct Shirley Basin. As always, Ur-Energy 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. Ur-Energy has 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.

We seek Safe Harbor.