Ur-Energy Ramping Up Lost Creek Production to Meet Rising Uranium Demand

• Ur-Energy is a publicly traded uranium company with properties in Wyoming.
• They have two flagship uranium mining properties: Lost Creek and Shirley Basin.
• Lost Creek has been operating for over nine years and is ramping up production due to contracts.
• Ur-Energy raised funds to support production ramp-up and potentially acquire quality properties.
• The uranium market is showing positive trends with supply-demand fundamentals and geopolitical factors contributing to growth opportunities.

About Ur-Energy

Ur-Energy is a publicly traded pure-play uranium mining company focused on in-situ recovery uranium production in Wyoming. The company, which trades on the NYSE American and Toronto Stock Exchanges, owns two flagship uranium projects - the producing Lost Creek mine and the pre-production Shirley Basin project. Ur-Energy is ramping up production at Lost Creek to meet rising uranium demand in North America and globally.

Interview with CEO John Cash

Ramping Up Production at Flagship Lost Creek Mine

Ur-Energy is in the process of ramping up uranium production at its flagship Lost Creek mine in Wyoming, which has been operating since 2013. The company recently announced plans to increase production at Lost Creek due to new long-term supply contracts secured at favorable prices.

According to Ur-Energy CEO John Cash, the company is going from "very limited production to quite high levels of production" at Lost Creek. This ramp up requires significant capital investment in additional equipment and personnel. However, Lost Creek's low production costs and exceptional 90% average recovery rate position View Our Energy to profitably increase output.

The company has already begun hiring additional staff and sourcing the specialized equipment needed to scale up in-situ recovery uranium mining at Lost Creek. While ramping up production is always challenging, Ur-Energy's long lead time on procurement and strategic planning helps mitigate risks. CEO Cash is "glad that Lost Creek is built out," avoiding the greater complexities of constructing a new conventional uranium mine in the current inflationary environment.

Lost Creek Wellfield Expansion Nearing Completion

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A key part of Lost Creek's production ramp up is completing the build out of its wellfield, where solutions are injected to recover uranium from the ore body. Ur-Energy has been testing and developing innovative well designs that improve the efficiency and environmental footprint of in-situ mining.

According to CEO Cash, the company is "moving those forward" and will "have more to report on that in the coming months." Once the expanded wellfield is online, Lost Creek will have the capacity to produce at significantly higher volumes to fulfill new supply contracts. Along with its low operating costs, Lost Creek's world-class 90% uranium recovery rate will boost the economics of scaled up production.

Strong Long-Term Uranium Price OutlookIn addition to its low-cost production profile, Ur-Energy is ramping up at an opportune time given the improving global uranium market. The company was able to secure new 10+ year uranium supply contracts at prices that incentivize bringing incremental uranium production online.

Ur-Energy sees further upside for uranium prices given declining inventories and rising demand, especially in North America and Europe. With demand outstripping supply, CEO Cash believes uranium prices are heading higher over the long run. The company's early move to lock-in long-term contracts positions it well to benefit from future uranium price appreciation.

M&A Opportunities on the Horizon

Beyond its core production growth strategy, Ur-Energy is keeping an eye out for mergers and acquisitions opportunities. Thanks to a recently completed financing, the company has ample cash to pursue accretive acquisitions.

Ur-Energy is particularly interested in upgrading its production profile through M&A. As CEO Cash explained, the goal is to eventually reach 3-4 million pounds of annual uranium production to become a "mid-tier" uranium mining company. While remaining disciplined in its approach, View Our Energy is ready to engage in M&A discussions to build up its project pipeline.

Rising Uranium Demand Creating Strong Tailwinds

Ur-Energy is ramping up Lost Creek production at an ideal time, with uranium demand on the rise globally. Major uranium importing countries like the U.S. are looking to source more supply from geopolitically stable jurisdictions. This is driving utilities to favor Western uranium producers like Ur-Energy.

With many legacy mines shutting down in recent years, the uranium market needs new production to come online. Ur-Energy has proven it can profitably operate an ISR uranium mine in Wyoming through all market cycles. Lost Creek's planned production increase will help meet rising uranium demand as the world pursues a net zero future enabled by nuclear power.

Risks and Opportunities

Risks

• Execution risk in ramping up production at Lost Creek - Any operational issues or delays could negatively impact cash flow
• Permitting risks for expanding wellfield and production - Requires approvals from regulators
• Fluctuating uranium prices - Contract book provides some price protection but spot exposure remains
• Potential for cost overruns or operational issues with M&A deals - Dilution is also a risk with acquisitions

Opportunities

• Significant production growth at low-cost Lost Creek mine - Provides operating leverage to higher uranium prices
• Long-term contracted revenue from major utilities - Over 10+ years, reducing cash flow volatility
• Potential to acquire undervalued uranium assets - Could rapidly boost resources and production profile
• Future upside from rising global uranium demand - Nuclear power expansion and security of supply concerns
• Exploration potential at existing projects - Resource expansion could extend mine life
• Strong management team with uranium mining expertise - Focused on prudent growth and risk management

Conclusion

Well-Positioned to Capitalize on Favorable Market TrendsWith Lost Creek ramping up and a healthy balance sheet, Ur-Energy is poised to thrive in an improving uranium market. The company's early move to lock-in long-term contracts allows it to expand production into rising prices. For investors seeking exposure to Western uranium production and the global nuclear power buildout, Ur-Energy represents an attractive opportunity.

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