Ur-Energy Announces Additional Sales Commitments, Success in its Bid into the Uranium Reserve, and Decision to Ramp-Up Lost Creek Production Operations
News Release
10758 W. Centennial Rd. Suite 200
Littleton, CO 80127
Phone: 720.981.4588
www.ur-energy.com
Ur-Energy Announces Additional Sales Commitments, Success in its Bid into the Uranium Reserve,
and
Decision to Ramp-Up Lost Creek Production Operations
Littleton, Colorado (ACCESSWIRE – December 19, 2022) Ur-Energy Inc. (NYSE American:URG) (TSX:URE)
(the “Company” or “Ur-Energy”) is pleased to announce that it has expanded the quantity to be delivered
into the sales agreement announced by the Company on August 8, 2022 . The agreement which called
for the annual delivery of 200,000 pounds of U3O8 over a six-year period, has been amended to increase
the annual delivery by 100,000 pounds of U3O8 beginning in 2024 at the same pricing levels.
The Company’s total sales quantity now under contract will be 600,000 pounds U3O8 per year beginning
in 2024, plus or minus a small, optional flex. Having secured these sales commitments, Ur-Energy has
made the decision to immediately ramp up production at its operating Lost Creek uranium mine to levels
sufficient to deliver into these current contracts.
The Company will target an initial annual production rate of 600,000 pounds U3O8, which represents 50%
of Lost Creek’s licensed wellfield production capacity of 1.2 million pounds. This production level will
provide an economy of scale and a stable, long -term revenue stream to the Company while leaving
ample room for growth and additional sales into new contracts or the spot market . Because of the
advanced construction and drilling efforts the Company has already made in preparation for ramp up,
we expect to commence production in Q1 2023 and reach the initial annual production rate in Q4 2023.
John Cash, the C ompany’s CEO, stated, “ Western nuclear companies continue to support production
from Lost Creek by signing new and expanded contracts. We will continue our efforts to layer in
additional contracts with strong profit margins with the goal of maximizing production at Lost Creek and
further reducing our proven low cost of production.
“The growth in our contract book gives us the confidence to ramp production at Lost Creek to 600,000
pounds per year. Our entire team has been working toward this goal for several years and we are excited
to bring our low cost, flagship property back into meaningful production. In addition to our Lost Creek
mine, our Shirley Basin Project has all major permits and licenses required to construct and operate a
one million p ound per year production facility. To further prepare for construction and operations at
Shirley Basin, we plan to install the monitor wells for the first Shirley Basin mine unit in Spring 2023.
“Our current contract book fills just over 2 5% of our annual licensed wellfield capacity of 2.2 million
pounds and only 14% of our annual licensed processing capacity of 4.2 million pounds . This leaves us
considerable room to increase production, open satellite operations, toll process material for other
companies, and sell into a rising market.”
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Ur-Energy is also pleased to announce t hat the National Nuclear Security Administration (“NNSA”), a semi-
autonomous agency of the Department of Energy, has awarded the Company, through its wholly owned
subsidiary Lost Creek ISR, LLC, a contract to sell 100,000 pounds of domestically produced U 3O8 to the
national Uranium Reserve at a sales price of $64.47 per pound. Ur -Energy will provide the material for this
one-time purchase from its existing U.S. produced inventory of 324,000 pounds.
Total revenue of $6,447,000 will be realized in March 2023 after the material is delivered to the NNSA.
The strong price of the sale is an indication of the value of domestically produced uranium compared to
published global prices and is likely an indication that domestic inventories are in short supply.
The Company intends to retain its remaining inventory of 224,000 pounds, which was intentionally not
bid into the Uranium Reserve, to sell into long -term contracts with commercial leaders in the nuclear
industry.
About Ur-Energy
Ur-Energy is a uranium mining company operating the Lost Creek in -situ recovery uranium facility in
south-central Wyoming. We have produced, packaged, and shipped approximately 2.6 million pounds
U3O8 from Lost Creek since the commencement of operations. Ur -Energy 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 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, Colorado and its
registered office is in Ottawa, Ontario.
FOR FURTHER INFORMATION, PLEASE CONTACT
John W. Cash, Chairman, CEO & President
866-981-4588, ext. 303
Cautionary Note Regarding Forward-Looking Information
This release may contain “forward-looking statements” within the meaning of applicable securities laws
regarding events or conditions that may occur in the future ( e.g., whether the sales prices specified in
current sales agreements will be profitable to the Company; the ability to readily and cost -effectively
ramp-up production operations to meet the delivery schedules in the agreements including whether the
preparations and development efforts to date will expedite ramp-up as anticipated; whether additional
sales agreements will be secured and the timing and profitability of such additional agreements, as well
as whether Lost Creek will be able to further reduce already low costs of production and realize
economies of scale; whether we will toll process for other companies at Lost Creek; timing to determine
future devel opment and construction priorities; the timing and success in completing the planned
monitor well program at Shirley Basin, and implementing contracting and construction plans for the
project; and whether the pricing accepted by NNSA signals low domestic inventory supplies ) and are
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based on current expectations that, while considered reasonable by management at this time, inherently
involve a number of significant business, economic and competitive risks, uncertainties and
contingencies. Generally, forward-looking statements can be identified by the use of forward-looking
terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "estimates,"
"intends," "anticipates," "does not anticipate," or "believes," or variations of the foregoing, or
statements that certain actions, events or results "may," "could," "might" or "will be taken," "occur," "be
achieved" or "have the potential to." All statements, other than statements of historical fact, are
considered to be forward-looking statements. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance or achievements express
or implied by the forward-looking statements. Factors that could cause actual results to differ materially
from any forward -looking statements include, but are not limited to, capital and other costs varying
significantly from estimate s; failure to establish estimated resources and reserves; the grade and
recovery of ore which is mined varying from estimates; production rates, methods and amounts varying
from estimates; delays in obtaining or failures to obtain required governmental, environmental or other
project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in
development and other factors described in the public filings made by the Company at www.sedar.com
and www.sec.gov. Readers should not place undue reliance on forward -looking statements. The
forward-looking statements contained herein are based on the beliefs, expectations and opinions of
management as of the date hereof and Ur -Energy disclaims any intent or obligation to update them or
revise them to reflect any change in circumstances or in management’s beliefs, expectations or opinions
that occur in the future.