Mr. John Cash reports

UR-ENERGY PROVIDES 2024 Q1 OPERATIONS AND 2024 PRODUCTION GUIDANCE UPDATES

Ur-Energy Inc. has provided the following updates on first quarter 2024 operations, adjustment to its production guidance for the year and the early repayment of its state bond loan.

John Cash, Ur-Energy chairman and chief executive officer, said of Q1 2024: "This year has started with a great number of advances in the growth of Ur-Energy, demonstrating a focus on our future in a strengthening market for nuclear energy, including our own uranium production at the front end of the fuel cycle. We were pleased to announce our decision to build our second [in situ recovery] uranium facility at Shirley basin, the birthplace of ISR uranium in the 1960s, and related activities have commenced. We anticipate production at Shirley basin to begin in 2026.

"Meanwhile, ramp-up continues at Lost Creek with additional development and production leading to another shipment of yellowcake being made this month. We continue to overcome ramp-up challenges. Due to those challenges, we are updating and reducing our 2024 production guidance to 550,000 to 650,000 pounds captured."

Lost Creek production operations

Ramp-up continues at Lost Creek, with two additional header houses (HH 2-6 and 2-7) coming on-line in 2024. During Q1, the company captured approximately 38,221 pounds, dried and packaged approximately 39,229 pounds, and shipped 35,445 pounds triuranium octoxide. At quarter-end, its in-process inventory was approximately 80,465 pounds, its drummed inventory was approximately 26,062 pounds and its finished inventory at the conversion facility was approximately 79,235 pounds U3O8.

While the company has experienced some additional equipment and operational challenges, it is seeing more consistent drying and packaging, with 19,331 pounds U3O8 packaged since quarter-end and dryer operations keeping pace with well field production. It has 13 drill rigs on site, with an additional rig scheduled to commence work in early May. Drilling has advanced into HH 2-11 with completion work nearly finished in HH 2-8. Fabrication of HH 2-8 and 2-9 is complete, and work on HH 2-10 and 2-11 is advancing in its Casper construction shop. HH 2-8 is expected to come on-line in May.

Shirley basin development

The company was pleased to announce its decision in Q1 to proceed with the buildout of a satellite facility at its wholly owned, fully permitted and licensed Shirley basin project in Carbon county, Wyoming. The decision will nearly double its annual permitted mine production to 2.2 million pounds U3O8 while diversifying its supply.

The satellite plant will be a relatively low-cost facility consisting of ion exchange, waste water and groundwater restoration circuits. The ion exchange resin at Shirley basin will be loaded with uranium from the mine and shipped to its Lost Creek ISR facility for processing before being recycled back into operations at Shirley basin. This satellite approach will help minimize initial facility capital costs to approximately $24.4-million and preoperational well field development costs to $16.3-million.

The satellite plant will be designed with a flow rate of up to 6,000 gallons per minute and capacity to produce up to 1.0 million pounds of U3O8 per year. The company's permits and licence allow for the construction of the elution, precipitation and drying circuits should it become economically advantageous. No amendments to the existing permits or licences would be required.

The estimated time to finalize designs, order materials, and construct the satellite plant and initial well field recovery area is approximately 24 months. Work has already been initiated on long-lead items, including detailed engineering and additional geologic pattern planning for the well field. Planning has been completed for the monitor well ring for the first mine unit, with plans to install approximately 120 wells in second quarter and third quarter 2024. This installation will enable hydrologic testing and baseline water quality analyses to proceed prior to the start of installation of production patterns in mid-2025. Significantly, the bid process and award for fabrication of IX columns have been completed. This procurement represents one of the longest-lead items in the facility.

Sales and prepayment of state bond loan

As previously announced, the company completed two additional uranium sales agreements during Q1 2024. Its fourth agreement calls 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. Its fifth U3O8 sales agreement includes delivery commitments for five years beginning in 2026, with an initial delivery of 50,000 pounds U3O8 in 2026 and annual deliveries of 200,000 pounds U3O8 in 2027 through 2030. All sales under this agreement will be made at fixed prices, escalated from the agreed base price.

Subsequent to quarter-end, the company sold 75,000 pounds U3O8, for which it will receive $4.6-million in early May. In total, it anticipates selling 570,000 pounds U3O8, under two contracts secured in 2022.

As planned, on March 27, it completed the prepayment of the remaining $4.4-million on its state bond loan and now is debt-free. At March 31, 2024, it had cash and cash equivalents of $53.9-million.

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 2.8 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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