Ur-Energy Closes on Paycheck Protection Program Loans and Provides Operational and Market Update
News Release
10758 W. Centennial Rd. Suite 200
Littleton, CO 80127
Phone: 720.981.4588
Fax: 720.981.5643
www.ur-energy.com
Ur-Energy Closes on Paycheck Protection Program Loans
and Provides Operational and Market Update
Littleton, Colorado (PR Newswire – April 20, 2020) Ur-Energy Inc. (NYSE American:URG) (TSX:URE) (“Ur-Energy”
or the “Company”) is pleased to announce that two of its subsidiaries have closed on U.S. Small Business
Administration Paycheck Protection Program loans totaling $893,300 pursuant to the Coronavirus Aid, Relief, and
Economic Security Act (the “CARES Act”). The loans have been fully funded.
Ur-Energy CEO, Jeff Klenda said: “While we are very grateful to be the recipient of these stimulus loans, we must
remember what created the need for the program in the first place. Our hearts go out to the thousands of families
who have suffered such tremendous losses during these most unprecedented times. We must all stay the course
set before us, help those in need and, together, I am confident that we will persevere. While we are fortunate to
report that our workforce remains healthy and fully employed, we cannot overstate the importance of these funds
to our ability to retain the highly-trained operational staff we have strived so hard to keep onboard. As intended
by the CARES Act, t his additional funding will provide longer ‘runway’ to maintain current operations and avoid
unnecessary dilution in the depressed uranium market; it also provides continued operational readiness when we
are able to ramp-up production.”
Ur-Energy CFO, Roger Smith said: “Regarding the loans, we were fortunate to be able to work through this new
process so quickly and with such good results. Once again, I am very proud of our Company’s financial
achievements. Without a doubt, the loans will greatly benefit the Company in the coming eight weeks. We intend
to use the proceeds to secure the employment of our workforce and will subsequently seek loan forgiveness to
the fullest extent possible.”
Key elements of the loans are as follows:
Lender: BOKF, NA dba Bank of Oklahoma
Borrowers: Lost Creek ISR, LLC and Ur-Energy USA Inc.
Loan amount (combined): $893,300
Interest rate: 1.00%
Maturity date: April 16, 2022
First principal & interest payment date: October 16, 2020
Amount of Loan Forgiveness: Up to the full principal amount and any accrued interest
In order to have the full amount of the loans forgiven, the following requirements must be met within eight weeks
of the loans and sufficiently documented:
1. Spend not less than 75% of loan proceeds on eligible payroll costs.
2. Spend the remaining 25% of loan proceeds on
a. additional payroll costs above 75%;
b. payments of interest on mortgage obligations incurred before February 15, 2020;
c. rent payments on leases dated before February 15, 2020; and/or
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d. utility payments under service agreements dated before February 15, 2020.
3. Maintain employee compensation levels (subject to specific PPP requirements).
Lost Creek Production Operations and Sales
At this time, the COVID-19 pandemic has caused no interruption of our production operations at Lost Creek and
did not interfere with our scheduled delivery and sale s into term contract commitments in early February and
again in early April.
In 2020 Q1, we sold 33,000 pounds at an average price per pound of $41.52 for revenues of $1.4 million. The
pounds were purchased at an average cost per pound of $24.94 and c ost of sales amounted to $0.8 million. In
early April, we sold 167,000 pounds at an average price per pound of $41.51 for revenues of $6.9 million. The
pounds were purchased at an average cost per pound of $26.01 and cost of sales amounted to $4.3 million.
During 2020 Q1, 4,113 pounds of U3O8 were captured within the Lost Creek plant and 1,433 pounds were packaged
in drums. Drumming activities during the quarter were limited, as packaging only occurs on an as-needed basis to
minimize cost. No shipments of product were made to the conversion facility during the quarter. At March 31,
2020, inventory at the conversion facility was approximately 268,552 pounds U3O8.
Outlook
Recent market activity, driven by production suspensions and reductions, has elevated U 3O8 spot prices by as
much as 30% in the past three weeks to over $32 per pound. The suspensions and closures are generally related
to the COVID-19 pandemic. In recent weeks, we have seen the suspension of Cigar Lake, Rossing, and then Husab,
as well as lower production guidance announced by Kazatomprom. This amounts to as much as 46 million pounds
of primary production on an annualized basis removed from the market. While this increase in uranium pricing is
encouraging, it remains to be seen if long-term contracts will follow and once again become available to support
sustained development and operations on an economical basis.
In the meantime, we continue to await the long-overdue report and recommendations of t he United States
Nuclear Fuel Working Group (the “Working Group”) which was established in July 2019 to develop
recommendations for reviving and expanding domestic uranium production. On or about November 12, 2019, the
Working Group submitted its report and recommendations to the White House, to the office of the co -Chair of
the Working Group, Director of the U.S. National Economic Council, Larry Kudlow. However, since that time, no
direct action has been taken by the White House.
It is likely that one of the recommendations of the Working Group became public on February 10, 2020, when the
President’s FY2021 budget was published, and include d a budget item of $150 million per year from FY2021 to
FY2030 to support the creation and fulfillment of a new national uranium reserve to be supplied by domestically-
mined uranium. This budget item is understood to be the result of the Working Group’s recommendations.
As we watch primary uranium production in the U.S., and now around the globe, decline to nearly inconsequential
levels in some cases, it is also historic that North America no longer has any UF6 conversion capacity. On April 8,
2020, operations at the Port Hope UF6 conversion facility were suspended, which also forced the closure o f the
Blind River UO3 refinery. In the U.S., ConverDyn’s conversion has been idled since 2017.
At the same time, we note with interest that U.S. nuclear electricity production continues to grow. Recently, the
Nuclear Energy Institute noted key take-aways from 2019 with regard to the U.S. nuclear industry. Among them,
after producing nearly 20 percent of all U.S. electricity production and nearly 55 percent of all carbon -free
generation in 2019, U.S. nuclear power plants generated the highest amount of electricity since the birth of
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commercial nuclear power in 1957. This is good news because that record nuclear power generation avoided over
476 million metric tons of carbon emissions. But, is it sustainable when you consider that primary uranium
production in North America now stands at virtually zero?
Global demand growth has not subsided either. On April 14, 2020, China’s Nuclear Safety Inspection Department
reported that the coronavirus outbreak will have no impact on the progress of nuclear power plant construction
in China in the short term, nor have reactors already in operation been affected. Global demand growth will most
likely continue, if not increase, in the long-term.
Considering the current state of uranium production and conversion capacity in the U.S. (and now North America),
combined with the growing demand for uranium here and around the world , one must ask what will it take for
the U.S. government, and other interested parties, to realize that ag gressive action must be taken to preserve
what remains of the domestic uranium industry before our U.S. nuclear utilities face the consequences of a serious
supply disruption.
Still, there can be no certainty of the final outcome of the Working Group’s findings and recommendations, or the
impact of any actions taken in response to those findings and recommendation s, including the budget
appropriations process related to the national uranium reserve . The outcome of this continuing process and its
effects on the U.S. uranium market, therefore, remains uncertain.
We will provide further guidance in our Form 10 -Q, which is currently anticipated to be filed on Friday, May 8,
2020, and throughout the year as market forces may continue to change, and the Working Group and related
matters progress.
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 more than 2. 6 million pounds from Lost Creek since the
commencement of operations. Applications are under review by various agencies to incorporate our LC East
project area into the Lost Creek permits and to operate at our Shirley Basin Project. 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. Shares of Ur- Energy trade on the NYSE American
under the symbol “URG” and on the Toronto Stock Exchange under the symbol “URE.” Ur -Energy’s corporate
office is in Littleton, Colorado; its registered office is in Ottawa, Ontario. Ur- Energy’s website is www.ur-
energy.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeffrey Klenda, Chair & CEO
866-981-4588
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., controlling production operations at lower levels at Lost
Creek; whether COVID-19 (Coronavirus) will interfere with our business and/or the production operations at Lost
Creek and, if so, in what fashion for what period of time; the level of loan forgiveness to be successfully obtained
under the SBA PPP program; the timing to d etermine future development and construction priorities, and the
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ability to readily ramp-up production operations when market and other conditions warrant; the outcome of the
report and recommendations from the U.S. Nuclear Fuel Working Group, including th e timeline and scope of
proposed remedies, including the budget appropriations process related to the establishment of the national
uranium reserve; and whether recent impacts on uranium supply–demand will continue) and are 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. 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 estimates; 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 chang e in circumstances or in
management’s beliefs, expectations or opinions that occur in the future.