Ur-Energy and Energy Fuels Announce U.S. Department of Commerce Has Initiated Investigation into Effects of Uranium Imports on U.S. National Security
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Ur-Energy and Energy Fuels Announce U.S. Department of Commerce
Has Initiated Investigation into Effects of Uranium Imports
on U.S. National Security
Denver, Colorado – July 18, 2018
Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (“Energy Fuels”) and Ur -Energy Inc. (NYSE
American: URG; TSX: URE) (“Ur -Energy”) are pleased to announce that on July 18, 2018, the
U.S. Department of Commerce (“DOC”) initiated an investigation into the effects of uranium
imports on U.S. national security. This investigation was requested by Energy Fuels and Ur -
Energy in their Petition for Relief Under Section 232 of the Trade Ex pansion Act of 1962 (the
“Petition”), which was filed jointly by the companies on January 16, 2018.
The Secretary of Commerce (the “Secretary”) now has 270 days to conduct the investigation
and submit a report to the President of the United States conta ining the Secretary’s findings
and proposed remedy, if any. Following receipt of the Secretary’s report, the President then has
up to 90 days to act on the Secretary’s recommendations and, if necessary, take action to
“adjust the imports of an article and its derivatives” and/or pursue other lawful, non -trade-
related actions necessary to address the import threat.
Energy Fuels and Ur -Energy requested that the DOC conduct its investigation due to the
following factors:
• In 2017, U.S. uranium production fell to near historic lows due, in large part, to uranium and
nuclear fuel imported from state -subsidized foreign entities; 2018 dome stic production is
likely to be even lower, with Q1-2018 production being 50 percent lower than Q1-2017.
• In 2017, i mports of uranium from state -owned and state -subsidized enterprises in Russia,
Kazakhstan, and Uzbekistan fulfill ed about one -third of U.S. demand, while purchases of
U.S. uranium by owners of U.S. nuclear reactors dropped by 46 percent. In 2018, domestic
producers are projected to fulfill only about 2 percent of total U.S. commercial demand.
• Increasing levels of state -subsidized nuclear fuel are expected to be imported from Russia
and China in the coming years, which would likely further displace U.S. uranium production.
If Russia and its allies take control of this critical fuel, the threat t o U.S. national and energy
security would be incalculable.
• While U.S. producers can fairly compete with foreign production on a level playing field, it is
difficult for them to compete with heavily subsidized foreign production. Foreign policies o f
other nations should not be permitted to jeopardize this crucial U.S. industry.
• A sustainable domestic uranium mining industry is vital to U.S. national security because it
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supplies uranium for essential defense needs and fuel for nuclear power plants that are a
key component of the nation’s critical clean energy infrastructure.
• Ur-Energy and Energy Fuels, both headquartered in Denver, Colorado, are the two main U.S.
uranium producers, together mining more than half of all U.S. uranium in 2017.
• In the Petition, the companies proposed two compl ementary remedies: (1) a quota that
limits imports of uranium into the U.S., effectively reserving 25 percent of the U.S. market
for domestic uranium production, and (2) a requirement for U.S. federal utilities and
agencies to buy U.S. uranium in accordance with the President’s Buy American Policy. The
companies’ proposed remedies are expected to result in U.S. utilities purchasing
approximately 12 million pounds of uranium per year from U.S. production.
• The proposed remedies are expected to restore a sustainable U.S. uranium mining industry,
bolster national defense, and support energy security through reduced reliance on state -
subsidized uranium and nuclear fuel imports from nations that compete with the U.S. for
geopolitical influence and commercial advantage.
• An econometric model prepared in connection with the Petition demonstrates that the
effects of the proposed remedies on utilities and consumers are expected to be negligible.
Please refer to Energy Fuels’ and Ur-Energy’s press releases on January 16, 2018, for further
information on the background and legal basis for the Petition. Additional information
regarding the trade action can be found on the companies’ respective websites shown below.
As with any governmental investigation, there can be no certainty of the outcome of the
investigation or the recommendation of the Secretary, and therefore the outcome of this
process is uncertain.
About Energy Fuels: Energy Fuels is a leading integrated U.S. uranium mining company,
supplying U3O8 to major nuclear utilities. Its corporate offices are in Denver, Colorado, and all of
its assets and employees are in the western United States. Energy Fue ls holds three of America’s
key uranium production centers, the White Mesa Mill in Utah, the Nichols Ranch Processing
Facility in Wyoming, and the Alta Mesa Project in Texas. The White Mesa Mill is the only
conventional uranium mill operating in the U.S. t oday and has a licensed capacity of over 8
million pounds of U 3O8 per year. The Nichols Ranch Processing Facility is an in- situ recovery
production center with a licensed capacity of 2 million pounds of U 3O8 per year. Alta Mesa is an
in-situ recovery produ ction center with a licensed capacity of 1.5 million pounds of U 3O8 per
year, which is currently on care and maintenance due to low uranium prices. Energy Fuels also
has the largest uranium resource portfolio in the U.S. among producers, and uranium mining
projects located in a number of Western U.S. states, including one producing in- situ recovery
project, mines on standby, and mineral properties in various stages of permitting and
development. Energy Fuels also produces vanadium as a by -product of its uranium production
from certain of its mines on the Colorado Plateau, as market conditions warrant. The primary
trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol
“UUUU,” and the Company’s common shares are also liste d on the Toronto Stock Exchange
under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.
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About Ur-Energy: Ur-Energy is a U.S. uranium mining company with corporate and operations
offices in Denver, Colorado, and Casper, Wyoming, respectively . Ur -Energy operates the Lost
Creek in-situ recovery uranium facility in south -central Wyoming. Ur -Energy has produced,
packaged and shipped more than 2 million pounds from Lost Creek since the commencemen t of
operations. Applications are under review by various agencies to incorporate Ur -Energy’s LC
East project area into the Lost Creek permits, and the company has begun to submit
applications for permits and licenses to construct and operate its Shirley Basin Project. Ur -
Energy is engaged in uranium mining, recovery and processing activities in the United States,
including the acquisition, exploration, development and operation of uranium mineral
properties. The primary trading market for Ur -Energy’s commo n shares is the NYSE American
under the trading symbol “URG;” Ur -Energy’s common shares also trade on the Toronto Stock
Exchange under the trading symbol “URE.” Ur-Energy’s website is www.ur-energy.com.
Cautionary Note Regarding Forward-Looking Statements: Certain information contained in this
news release, including any information relating to: the expected increases in foreign state -
subsidized imports of uranium in coming years; expected future U.S. uranium production and
the further negative impacts of such imports on U.S. uranium production and national security;
the outcome of the Department of Commerce Section 232 investigation, including whether or
not the Secretary of Commerce will make a recommendation to t he President and the nature of
the recommendation; whether or not the President will act on the recommendation and, if so,
the nature of the action and remedy; the expected benefits of the proposed remedies, including:
restoring a sustainable U.S. uranium mining industry and the benefits of a sustainable domestic
uranium mining industry to U.S. national security, bolstering national defense, and supporting
energy security; the expected impacts on U.S. production and the U.S. uranium mining industry;
the abi lity of U .S. producers to compete with foreign production on a level playing field; the
reduction of dependence on imports; the negligible impact on U .S. utilities and consumers; and
any other statements regarding Energy Fuels’ or Ur -Energy’s future expect ations, beliefs, goals
or prospects; constitute forward-looking information within the meaning of applicable securities
legislation (collectively, "forward -looking statements"). All statements in this news release that
are not statements of historical fact (including statements containing the words "expects ,"
"does not expect ," "plans ," "anticipates ," "does not anticipate ," "believes ," "intends ,"
"estimates," "projects," "potential," "scheduled," "forecast ," "budget" and similar expressions)
should be considered forward- looking statements. All such forward -looking statements are
subject to important risk factors and uncertainties, many of which are beyond Energy Fuels’ and
Ur-Energy’s ability to control or p redict. A number of important factors could cause actual
results or events to differ materially from those indicated or implied by such forward- looking
statements, including without limitation factors relating to: the expected increases in foreign
state-subsidized imports of uranium in coming years; expected future U.S. uranium production
and the further negative impacts of such imports on U.S. uranium production and national
security; the outcome of the Department of Commerce Section 232 investigation, inc luding
whether or not the Secretary of Commerce will make a recommendation to the President and
the nature of the recommendation; whether or not the President will act on the
recommendation and, if so, the nature of the action and remedy; the expected bene fits of the
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proposed remedies, including: restoring a sustainable U.S. uranium mining industry and the
benefits of a sustainable domestic uranium mining industry to U.S. national security, bolstering
national defense, and supporting energy security; the ex pected impacts on U.S. production and
the U.S. uranium mining industry; the ability of U.S. producers to compete with foreign
production on a level playing field; the reduction of dependence on imports; the negligible
impact on U.S. utilities and consumers ; and other risk factors as described in each of Energy
Fuels’ and Ur-Energy’s most recent annual reports on Form 10 -K and quarterly financial reports.
Energy Fuels and Ur -Energy assume no obligation to update the information in this
communication, except as otherwise required by law. Additional information identifying risks
and uncertainties is contained in Energy Fuels’ and Ur -Energy’s respective filings with the
various securities commissions which are available online at www.sec.gov and www.sedar.com.
Forward-looking statements are provided for the purpose of providing information about the
current expectations, beliefs and plans of the management of Energy Fuels and Ur -Energy
relating to the future. Readers are cautioned that such statements may not be appropriate for
other purposes. Readers are also cautioned not to place undue reliance on these forward-
looking statements, that speak only as of the date hereof.
For Further Information, Please Contact:
Leonard Greenberger
202.349.9672