Ur‐Energy Provides 2016 Q4 and Year‐End Operational Results
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 Provides 2016 Q4 and Year‐End Operational Results
Littleton, Colorado (PR Newswire – January 11, 2017) Ur‐Energy Inc. (NYSE MKT:URG, TSX:URE) (the
“Company” or “Ur‐Energy”) reports the following operational results for fourth quarter and year‐end
2016, and other recent developments.
Lost Creek Highlights
Lost Creek Operations
Units 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2016
U3O8 Captured (‘000 lbs) 159.3 133.3 141.8 103.6 538.0
U3O8 Dried &
Drummed (‘000 lbs) 173.8 130.3 145.9 111.1 561.1
U3O8 Sold
(from production) (‘000 lbs) 75.0 187.0 200.0 100.0 562.0
Average Flow Rate (gpm) 1,853 2,210 2,469 2,559 2,274
U3O8 Head Grade (mg/l) 82 58 55 39 58
Lost Creek Uranium Sales and Operational Highlights
For the quarter, 103,558 pounds of U3O8 were captured within the Lost Creek plant; 111,049 pounds
U3O8 were packaged in drums; and 98,775 pounds U3O8 of drummed inventory were shipped from the
Lost Creek processing plant to the converter. Production was controlled at lower levels as the market
remained depressed and contract commitments were largely met earlier in the year. At December 31,
inventory at the conversion facility was approximately 84,689 pounds U3O8.
Contract sales for the quarter from Lost Creek‐produced U3O8 totaled 100,000 pounds at an average
price of $32.70 per pound, for sales revenues of $3.3 million. No spot sales were made during the quarter
due to the continuing low spot price environment. For the year, we had 662,000 pounds U3O8 under
contract at an average price of $47.61. 200,000 of the contracted U3O8 pounds were assigned to a third
party in 2016 Q1. The Company recognized $2.6 million in deferred revenue from the first half of the
assignment transaction in 2016 Q3. The Company will recognize an additional $2.5 million of deferred
revenue from the second half of the assignment transaction in 2016 Q4. Excluding the assignment
transaction, the Company sold 562,000 pounds U3O8 from Lost Creek production at an average price of
$39.49 per pound, which includes 462,000 pounds from contract sales and 100,000 pounds of spot sales.
This concludes the third calendar year with consecutive quarterly sales since operations began at Lost
Creek in August 2013.
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In 2016 Q4, production continued to be sourced from 13 header houses in the first mine unit. During
2016, only one header house (HH13) was brought online. Following its commissioning, staff initiated
refinements to other header houses and production processes based upon results at HH13. After more
than three years of operations, the first mine unit still produced a yearly average head grade of 58 ppm.
However, the head grade during Q4 averaged 39 ppm. The lower head grade during this period of
operation, as well as varying month‐to‐month grades, is a typical result as the mine matures and older
operating patterns remain in the flow regime.
Jeff Klenda, Chair and CEO of Ur‐Energy, said “We are pleased that our operations in 2016 continued at
rates still well above initial projections for this period in Lost Creek’s production life. Reliable cash flow
from long‐term sales agreements continues to protect and distinguish our Company during this
challenging time in the market. Cash flow is more important now than ever before.”
Permitting Update
The final operational approvals for Underground Injection Control (UIC) Class V wells at Lost Creek were
received during the quarter, following pre‐operational testing. These approvals and final pre‐
commissioning refinements of the system allow for the onsite disposal of fresh permeate (i.e., clean
water) into Class V wells. Site operators will use the reverse osmosis circuits, which were installed during
initial construction of the plant, to treat process waste water into brine and permeate streams. The
brine stream will continue to be disposed of in the UIC Class I deep wells while the clean, permeate
stream will be injected into the UIC Class V wells. It is expected that these operational procedures, which
are currently being commissioned, will significantly enhance waste water disposal capacity at the site
and allow wellfield flow rates to be increased.
Retirement of RMB Debt Facility
We retired our last remaining debt facility with RMB Australia Resources Limited (“RMB”) in December
2016. The debt facility was one among several that RMB advanced to the Company in 2013. The facilities
were used to continue the construction of Lost Creek uninterrupted, and to make the Pathfinder Mines
Corporation (Shirley Basin / Lucky Mc) acquisition.
Roger Smith, CFO of Ur‐Energy, said “In a year where many companies were unable to make their
scheduled debt payments and were forced to renegotiate their debt agreements, often at unfavorable
terms, we were very pleased to successfully conclude this obligation. Once again, we thank RMB for
their strong commitment and support of our projects and Company.”
Guidance for 2017
As previously disclosed, the Company has contractually committed 600,000 pounds during 2017, at an
average price of approximately $51 per pound. We have established the schedule for those
commitments for the year. We will provide further guidance for the upcoming year at the time of filing
our Annual Report on Form 10‐K, which is currently anticipated to be filed on Friday, March 3, 2017.
About Ur‐Energy
Ur‐Energy is a uranium mining company operating the Lost Creek in‐situ recovery uranium facility in south‐central
Wyoming. The Lost Creek processing facility has a two million pounds per year nameplate design capacity. Shirley Basin,
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our newest project, is one of the Pathfinder Mines assets we acquired in 2013. Applications for permits and licenses to
operate Shirley Basin have begun to be submitted to regulators. 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 MKT under the symbol “URG” and on the Toronto Stock
Exchange under the symbol “URE.” Ur‐Energy’s corporate office is located 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
Jeff.Klenda@ur‐energy.com
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., continuing results of Lost Creek operations; ability to obtain
additional long‐term contracts at advantageous pricing; results of Class V operations) 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; 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.