Ur-Energy and Energy Fuels Jointly File Section 232 Petition with U.S. Commerce Department to Investigate Effects of Uranium Imports on U.S. National Security
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News Release
Ur-Energy and Energy Fuels Jointly File Section 232 Petition with U.S. Commerce
Department to Investigate Effects of Uranium Imports on U.S. National Security
Denver, Colorado – January 16, 2018
Ur-Energy Inc. (NYSE American: URG; TSX: U RE) (“Ur-Energy”) and Energy Fuels Inc. (NYSE American:
UUUU; TSX: EFR) (“Energy Fuels”) today jointly submitted a Petition to the U.S. Department of
Commerce (“DOC”) for Relief Under Section 232 of the Trade Expansion Act of 1962 (as amended) from
Imports of Uranium Products that Threaten National Security (the “Petition”).
• Imports of uranium from state -owned and state -subsidized enterprises in Russia, Kazakhstan, and
Uzbekistan now fulfill nearly 40% of U.S. demand, while domestic production fulfills less than 5%.
• Increasing levels of nuclear fuel are expected to be imported from Russia and China in the coming
years, which will compete directly with U.S. uranium production.
• In 2017, U.S. uranium production fell to near historic lows due in large part to u ranium and nuclear
fuel imported from state -subsidized foreign entities; 2018 domestic production is likely to be even
lower.
• A healthy uranium mining industry is vital to U.S. national security, because it supplies fuel for
nuclear power plants that are a key component of the nation’s critical energy infrastructure and
essential defense needs.
• Ur-Energy and Energy Fuels, both headquartered in Denver, Colorado, are the two main U.S. uranium
producers, together supplying more than half of all U.S. uranium in 2017.
• Energy Fuels and Ur -Energy have filed a Section 232 Petition requesting (1) the Department of
Commerce to investigate the effects of uranium imports on U.S. national security and (2) the
President to use his authority to adjust imports to ensure t he long-term viability of the U.S. uranium
mining industry.
• Energy Fuels and Ur -Energy have proposed sensible remedies that will support a viable domestic
uranium mining industry with a negligible impact on U.S. nuclear utilities.
Uranium is primarily use d as the fuel for non -emitting, zero-carbon nuclear energy, but also plays a key
role in national defense. According to the Nuclear Energy Institute, nuclear energy provides about 20% of
all electricity, and nearly 60% of the carbon -free electricity, gener ated in the U.S. Uranium is also the
backbone of the U.S. nuclear deterrent and fuels ships and submarines in the U.S. Navy. Despite
uranium’s critical role in supporting clean electricity and national defense, imports of cheap, foreign
state-subsidized ur anium have swelled in recent years to the point that domestic suppliers currently
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provide less than 5% of our nation’s demand. As recently as 1980, U.S. producers supplied nearly 100%
of our domestic uranium needs, and in 1989 the DOC initiated a Section 2 32 investigation at the request
of the U.S. Department of Energy (“DOE”) because of concerns that uranium imports exceeded 37.5% at
that time. The problem is far worse now.
In 2016, the combined uranium imports from three geopolitically and commercially linked countries –
Russia, Kazakhstan, and Uzbekistan – fulfilled nearly 40% of U.S. requirements. While the U.S. does not
import significant quantities of uranium from China at this time, China has significantly grown their state-
owned nuclear enterprises and announced that they intend to penetrate the U.S. nuclear market with
nuclear fuel that will compete directly with U.S. uranium miners. Further, the approaching expiration of
the Russian Suspension Agreement will remove existing limits on Russian urani um imports. This will
create additional pressure on U.S. uranium producers, as Russia has announced plans to increase its U.S.
market share after that agreement expires in 2020.
Today’s extreme dependence is not a matter of foreign competition legitimatel y underpricing domestic
production. It is the result of certain foreign state -subsidy policies that undermine U.S. companies who
could otherwise compete fairly on a global basis.
The Petition filed today is a response to this threat to U.S. energy and na tional security. The Petitioners
urge Commerce Secretary Ross and President Trump to act decisively to help restore the long -term
viability of the U.S. uranium mining industry. Without a viable nuclear fuel cycle, the commercial and
nuclear capabilities of the U.S. will be diminished, and the nation is likely to become 100% dependent on
foreign parties that compete with the U.S. for geopolitical influence and commercial advantage to fuel a
majority of our clean, baseload electricity. Further, international treaties require that the uranium
necessary for defense programs be sourced from the U.S. Unless steps are taken now to foster a healthy
domestic uranium mining industry, the defense stockpiles currently held by the DOE will be depleted,
and it is unlikely that domestic producers will have sufficient capabilities to meet our defense needs in
the future.
Legal Basis and Process
The Petition was filed by Energy Fuels and Ur -Energy pursuant to the Trade Expansion Act of 1962, as
amended (the “Act”), and 15 C .F.R. § 705.5. The Act was promulgated by Congress to protect essential
national security industries whose survival is threatened by imports. As such, the Act authorizes the
Secretary of Commerce (the “Secretary”) to conduct investigations to evaluate the effects of imports of
any item on the national security of the U.S. In the Petition, Energy Fuels and Ur-Energy describe in detail
how the loss of a viable U.S. uranium mining industry would have a significant detrimental impact on the
national, energy, an d economic security of the U.S. and the ability of the country to sustain an
independent nuclear fuel cycle.
Once the DOC initiates an investigation, the Secretary has 270 days to prepare a report to the President.
Following receipt of the Secretary’s rep ort, the President then has 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 threat.
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Benefits of Trade Remedies
The Petition seeks remedies which will set a quota to limit imports of uranium into the U.S., effectively
reserving 25% of the U.S. nuclear market for U.S. uranium production. Additionally, the Petition suggests
implementation of a requirement for U.S. federal utilities and agencies to buy U.S. uranium in
accordance with the President’s Buy American Policy. These remedies are expected to result in U.S.
utilities purchasing approximately 12 million pounds of uranium per year from U.S . production, based on
recent data. This would be expected to create a healthy U.S. uranium mining industry, bolster national
defense, and improve supply diversification for U.S. utilities and their customers. Greater diversification
will lessen the exposu re of the U.S. government, U.S. utilities and their customers to the policies of
nations like Russia, Kazakhstan, and China. U.S. utilities and their customers will also receive greater
protection from supply shocks, price increases, and other geopolitical ly motivated actions of foreign
state-controlled uranium producers. Likewise, a strong domestic uranium mining industry will be able to
reliably supply the required domestic uranium that is critical to our national defense programs. The U.S.
government will provide support to a vital national security industry, while maintaining a high degree of
competition that encourages innovation and lower prices. These remedies will reduce dependence on
imports that fuel clean energy, and support reductions in air pollution and carbon emissions.
U.S. uranium producers will continue to compete with global uranium producers, but on a more level
playing field. U.S. production will come from existing U.S. producers, from other U.S. producers that are
on standby as a result of low uranium prices, and from new U.S. producers. Pricing for U.S. uranium
would be expected to increase through domestic competition to levels more consistent with un -
subsidized global costs of uranium production, but not to a level that will have a significant impact on the
bottom lines of U.S. utilities or the rates their customers pay. An econometric model included in the
Petition demonstrates that the average price impact to consumers will be negligible.
Additional information regarding the trade a ction, including the full text of the Section 232 Petition, can
be found on the companies’ respective websites shown below. There can be no certainty of the outcome
of the investigation or the recommendation of the Secretary, and therefore the outcome of t his 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. Ur -Energy operates the Lost Creek in-situ recovery uranium
facility in south-central Wyoming. Ur-Energy has produced, packaged and shipped more than two 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 permit s, 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, exp loration, 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 tr ading symbol
“URE.” Ur-Energy’s website is www.ur-energy.com.
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About Energy Fuels: Energy Fuels is a leading integrated U.S. uranium mining company, supplying U 3O8
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 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 Alt a 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 U 3O8 per year. The Nichols Ranch Processing
Facility is an in -situ recovery production ce nter with a licensed capacity of 2 million pounds of U 3O8 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. En ergy 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 va rious stages of permitting and development. Energy Fuels also
produces vanadium as a co -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 s hares 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; the expected furthe r negative impacts of such imports on U.S. uranium
production and national security, including the depletion of stockpiles held by the Department of Energy;
the potential of the U.S. to be unable to sustain an independent nuclear fuel cycle and to become 1 00%
dependent on foreign parties; 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 P resident will act on the recommendation and, if
so, the nature of the action and remedy; the expected benefits of the proposed remedies, including: the
expected impacts on U.S. production and the U.S. uranium mining industry, the expected impacts on
purchases of U.S. production by U.S. utilities, the expected impacts on supply diversification and the
expected benefits of such diversification on domestic utilities and national defense, the expected ability of
the U.S. uranium mining industry to reliably supp ly the required domestic uranium production, the
expected impact of the proposed remedy on improved competition, innovation and lower prices, and the
reduction of dependence on imports; the expected impact on pricing for U.S. uranium production and the
negligible price impact on electricity rates paid by 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 securitie s 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 uncert ainties, 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
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of uranium in coming years; the expected further negative impacts of such imports on U.S. uranium
production and national security, including the deplet ion of stockpiles held by the Department of Energy;
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; the expected impact on pricing
for U.S. uranium production and the negligible price impact on electri city rates paid by consumers; and
other risk factors as described in 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 co mmunication, except as otherwise required by law. Additional information
identifying risks and uncertainties is contained in Energy Fuels’ and Ur -Energy’s 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 ma y 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:
Karen Heinold
202.379.6358