PRESS RELEASE

from Ur-Energy Inc. (NASDAQ:URG)

Ur-Energy Releases 2024 Q1 Results

LITTLETON, CO / ACCESSWIRE / May 6, 2024 / Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") has filed the Company's Form 10-Q for the quarter ended March 31, 2024, with the U.S. Securities and Exchange Commission at www.sec.gov/edgar.shtml and with Canadian securities authorities at www.sedarplus.ca.

Ur-Energy CEO, John Cash said: "Last week the U.S. Senate, following the House of Representatives action on the same bill, announced the passage by unanimous consent of a Russian Uranium Ban that will commence 90 days after it is signed, subject to certain limited waivers available until January 1, 2028. We are encouraged to see unanimous bipartisan backing of a bill that is likely to result in strong support for western suppliers of nuclear fuel components, including Ur-Energy. We believe we are in the right place at the right time to help fill the uranium supply gap and we will continue to advance production at Lost Creek and Shirley Basin and look for other opportunities to expand our U.S. based production portfolio."

Lost Creek Operations

Ramp-up continues at Lost Creek, with two additional header houses (HHs 2-6 and 2-7) coming online thus far in 2024. During Q1, we captured approximately 38,221 pounds, dried and packaged 39,229 pounds, and shipped 35,445 pounds U3O8. At quarter end, our in-process inventory was approximately 80,465 pounds, our drummed inventory was 26,062 pounds, and our finished inventory at the conversion facility was 79,235 pounds U3O8.

Sales and Sales Agreements

In April 2024, we completed a new sales agreement in addition to the two new agreements announced earlier this year. The April agreement calls for annual delivery commitments of up to 100,000 pounds U3O8 in 2026 through 2029, a portion of which is based upon production milestones. The pricing for the sales under this agreement is a combination of an escalated fixed price, which is well above the anticipated all-in costs of production, and a market-related pricing component that is subject to an escalated floor and ceiling. Including the three agreements announced this year, we now have six sales agreements with various global nuclear purchasers with deliveries as follows:



Year

Base Quantity (U3O8 Pounds)

2024570,000
2025700,000
2026950,000
20271,150,000
20281,200,000
2029600,000
2030550,000
5,720,000

Subsequent to quarter end, we sold 75,000 pounds U3O8 for which we received $4.6 million in early May. In total, we anticipate selling 570,000 pounds U3O8, under two contracts secured in 2022.

Financial Results

As of March 31, 2024, we had cash resources of $53.9 million, which was a decrease of $5.8 million from the $59.7 million balance on December 31, 2023. During the three months ended March 31, 2024, we spent $14.5 million on operating activities, used $0.8 million for investing activities, and generated $9.6 million from financing activities.

U3O8 Sales, Cost of Sales, and Gross Profit 1

The following table provides information on our U3O8 sales, cost of sales, and gross profit.

Unit

2023 Q2

2023 Q3

2023 Q4

2024 Q1

U3O8 Pounds Sold

Produced

lb

-

90,000

90,000

-

Purchased

lb

-

-

-

-

lb

-

90,000

90,000

-

U3O8 Sales

Produced

$000

-

5,440

5,441

-

Purchased

$000

-

-

-

-

$000

-

5,440

5,441

-

U3O8 Price per Pounds Sold

Produced

$/lb

-

60.44

60.46

-

Purchased

$/lb

-

-

-

-

$/lb

-

60.44

60.46

-

U3O8 Cost of Sales

Ad valorem and severance taxes

$000

-

53

53

-

Cash costs

$000

-

1,674

1,674

-

Non-cash costs

$000

-

796

797

-

Produced

$000

-

2,523

2,524

-

Purchased

$000

-

-

-

-

$000

-

2,523

2,524

-

U3O8 Cost per Pound Sold

Ad valorem and severance taxes

$/lb

-

0.59

0.59

-

Cash costs

$/lb

-

18.60

18.60

-

Non-cash costs

$/lb

-

8.84

8.85

-

Produced

$/lb

-

28.03

28.04

-

Purchased

$/lb

-

-

-

-

$/lb

-

28.03

28.04

-

U3O8 Gross Profit

Produced

$000

-

2,917

2,917

-

Purchased

$000

-

-

-

-

$000

-

2,917

2,917

-

U3O8 Gross Profit per Pound Sold

Produced

$/lb

-

32.41

32.42

-

Purchased

$/lb

-

-

-

-

$/lb

-

32.41

32.42

-

U3O8 Gross Profit Margin
Produced

%

0.0%

53.6%

53.6%

0.0%

Purchased

%

0.0%

0.0%

0.0%

0.0%

%

0.0%

53.6%

53.6%

0.0%

1 The U3O8 and cost per pound measures included in the above table do not have a standardized meaning within US GAAP or a defined basis of calculation. These measures are used by management to assess business performance and determine production and pricing strategies. They may also be used by certain investors to evaluate performance.

As previously announced, the Company made the decision to ramp up operations after securing new term contracts in 2022 with initial deliveries beginning in 2023 Q3.

There were no U3O8 sales in 2024 Q1. Our sales in 2024 are projected at 570,000 pounds U3O8 into contracts that were put in place in 2022 when the long-term price was below $60 per pound.

In 2023 Q3 and 2023 Q4, the average price per pound sold into term contracts was $60.45 and the average cost per pound sold was $28.04, which resulted in an average gross profit per pound sold of $32.41 and an average gross profit margin of nearly 54%.

U3O8 Production and Ending Inventory

The following table provides information on our production and ending inventory of U3O8 pounds.

Unit

2023 Q2

2023 Q3

2023 Q4

2024 Q1

U3O8 Production
Pounds captured

lb

4,392

30,491

68,448

38,221

Pounds drummed

lb

-

15,759

6,519

39,229

Pounds shipped

lb

-

-

-

35,445

U3O8 Ending Inventory
Pounds

In-process inventory

lb

5,801

20,396

82,033

80,465

Plant inventory

lb

-

15,759

22,278

26,062

Conversion inventory - produced

lb

223,790

133,790

43,790

79,235

lb

229,591

169,945

148,101

185,762

Value

In-process inventory

$000

-

-

-

-

Plant inventory

$000

-

949

1,343

1,593

Conversion inventory - produced

$000

6,275

3,752

1,228

3,105

$000

6,275

4,701

2,571

4,698

Cost per Pound

In-process inventory

$/lb

-

-

-

-

Plant inventory

$/lb

-

60.22

60.28

61.12

Conversion inventory - produced

$/lb

28.04

28.04

28.04

39.19

Produced conversion inventory detail

Ad valorem and severance tax

$/lb

0.59

0.59

0.59

0.53

Cash cost

$/lb

18.60

18.60

18.60

28.47

Non-cash cost

$/lb

8.85

8.85

8.85

10.19

$/lb

28.04

28.04

28.04

39.19

2024 Continuing Guidance

We have 12 drill rigs onsite, with an additional rig scheduled to commence work in early May. Drilling has advanced into HH 2-11 with completion work nearly finished in HH 2-8. Fabrication of HHs 2-8 and 2-9 is complete, and work on HHs 2-10 and 2-11 is advancing in our Casper construction shop. HH 2-8 is expected to come online in May.

While we have experienced some additional equipment and operational challenges, we are seeing more consistent drying and packaging, with 29,497 pounds U3O8 drummed since quarter end and dryer operations keeping pace with wellfield production.

We expect 2024 production from MU2 to be between 550,000 and 650,000 pounds. We have made two shipments of U3O8 to the converter in 2024 and anticipate routine shipments throughout the year.

We have commitments under contracts negotiated in 2022, when the long-term price was between $43 and $52 per pound, for deliveries of 570,000 pounds U3O8 in 2024 and expect to realize revenues of $33.1 million. The contracts secured in 2022 enabled the Company

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