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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News Release
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
Ur‐Energy Inc. (NYSE American: URG; TSX: URE) (“Ur‐Energy”) and Energy Fuels Inc. (NYSE American:
UUUU; TSX: EFR) (“Energy Fuels”) 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 Ur‐Energy and Energy Fuels in their Petition for Relief
Under Section 232 of the Trade Expansion 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 containing 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.
Ur‐Energy and Energy Fuels 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 domestic production is likely to be even
lower, with Q1‐2018 production being 50 percent lower than Q1‐2017.
In 2017, imports of uranium from state‐owned and state‐subsidized enterprises in Russia,
Kazakhstan, and Uzbekistan fulfilled 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 to U.S. national and energy security would be
incalculable.
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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 of 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 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 complementary 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 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 commencement 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 common 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.
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
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are in the western United States. Energy Fuels 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. today
and has a licensed capacity of over 8 million pounds of U3O8 per year. The Nichols Ranch Processing
Facility is an in‐situ recovery production center with a licensed capacity of 2 million pounds of U3O8 per
year. Alta Mesa is an in‐situ recovery production center with a licensed capacity of 1.5 million pounds of
U3O8 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 listed
on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is
www.energyfuels.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 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 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 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 any other
statements regarding Energy Fuels’ or Ur‐Energy’s future expectations, 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 predict. 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, including 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 benefits of the proposed remedies, including: restoring a sustainable
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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 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