July 2016 NYSE MKT: URG TSX: URE

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Transcription:

July 2016

This presentation contains forward-looking statements, within the meaning of applicable securities laws, regarding events or conditions that may occur in the future. Such statements include without limitation the Company s ability to maintain steady-state operations; timing of making product deliveries; the technical and economic viability of Lost Creek (including the production and related costs realized compared with those to date and the projections contained in the preliminary economic analysis of the Lost Creek Property); whether higher-than-expected headgrades will continue to be realized throughout Lost Creek; the ability to complete additional favorable uranium sales agreements and ability to reduce exposure to volatile market; the potential of exploration targets throughout the Lost Creek Property (including the continuing ability to expand resources); the results of and timing for further exploration, development and permitting of Company projects; the technical and economic viability of Shirley Basin (including the production and cost projections contained in the preliminary economic analysis of the Shirley Basin project); completion of (and timing for) regulatory approvals and other development at Shirley Basin and other projects including LC East; and the long term effects on the uranium market of events in Japan in 2011 including supply and demand projections. These statements 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. Numerous factors could cause actual events to differ materially from those in the forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demand for nuclear power; weather and other natural phenomena; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; and other exploration, development, operating, financial market and regulatory risks. Although Ur-Energy Inc. believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this presentation. Ur-Energy Inc. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Cautionary Note Regarding Projections: Similarly, this presentation also may contain projections relating to an extended future period and, accordingly, the estimates and assumptions underlying the projections are inherently highly uncertain, based on events that have not taken place, and are subject to significant economic, financial, regulatory, competitive and other uncertainties and contingencies beyond the control of Ur-Energy Inc. Further, given the nature of the Company's business and industry that is subject to a number of significant risk factors, there can be no assurance that the projections can be or will be realized. It is probable that the actual results and outcomes will differ, possibly materially, from those projected. The attention of investors is drawn to the Risk Factors set out in the Company's Annual Report on Form 10-K, filed February 26, 2016, which is filed with the U.S. Securities and Exchange Commission on EDGAR (http://www.sec.gov/edgar.shtml) and the regulatory authorities in Canada on SEDAR (www.sedar.com). Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources: the information presented uses the terms "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. James A Bonner, Ur-Energy Vice President, Geology, P.Geo., SME Registered Member and Qualified Person as defined by National Instrument 43-101, reviewed and approved the technical information contained in this presentation. 2

Lost Creek ISR Uranium Facility Initiated Production 3Q 2013 Produced 1.73M lbs. U 3 0 8 through March 2016 State of the art flagship project Results demonstrate that Lost Creek is a reliable, low cost production center steady state production Resource Growth Two 2015 Updates Lost Creek Property net increase of 4.6 million lbs. Measured & Indicated resource Resources from exploration drilling: 139,000lbs Measured & Indicated; 498,000lbs Inferred Realizing better sales prices through long term sales agreements Pathfinder - Shirley Basin, our Next Development PEA Completed in January 2015 Application for permit to mine filed 4Q 2015; work on other applications underway 3

Share Capital & Cash Position NYSE MKT: URG As of 03/31/2016 Shares Outstanding 143.4M Stock Options & RSUs 9.5M Warrants 8.2M Fully Diluted 161.1M Cash (05/05/2016) Market Cap (06/30/2016) US$4.1M US$84.6M Share Price (06/30/2016) US$0.59 52 Week Range US$0.44 - $.82 Avg. Daily Volume ~506,000 (3-mo URG & URE 06/30/2016) TSX: URE Member of S&P/TSX SmallCap Index Geographical Distribution as of 6/30/15 United States ~65% Canada ~19% Other ~16% 4

Canada Cantor Fitzgerald Rob Chang (Toronto, ON) 1.416.849.5008 Dundee Securities David Talbot (Toronto, ON) 1.416.350.3082 Haywood Securities Colin Healey (Vancouver, BC) 1.604.697.7400 Raymond James TBD 1.604.659.8255 United States H.C. Wainwright Heiko Ihle (New York, NY) 1.212.356.0510 Roth Capital Partners Joseph Reagor (Newport Beach, CA) 1.949.720.7106 Ur-Energy Inc. is followed by the analysts listed above. This list, including the firms and individual analysts at these firms, is subject to change at any time without notice. Please note that any opinions, estimates, forecasts, conclusions or recommendations regarding Ur-Energy Inc. performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts, conclusions, recommendations or predictions of Ur-Energy Inc. or its management. Ur-Energy Inc. does not by its reference above or in any other manner imply its endorsement of or concurrence with such information, conclusions or recommendations. 5

Board of Directors Executive Director Jeffrey T. Klenda,* Chairman and Executive Director (Mining Finance) Non-Executive Directors W. William Boberg,* Former President & CEO (Professional Geologist) James M. Franklin,* Chair-Technical Committee (Professional Geologist) Paul Macdonell,* Chair-Compensation and Corp. Governance & Nominating Committees (Private Mediator) Thomas H. Parker, Lead Director, Chair-Audit Committee (Professional Engineer) Gary C. Huber, Director (Professional Geologist; Mining Executive) Officers Roger L. Smith, Chief Financial Officer & Chief Administrative Officer (CPA & MBA) Steven M. Hatten, VP Operations (Mining Engineer) John W. Cash, VP Regulatory Affairs (Geologist & Geophysicist) James A. Bonner, VP Geology (Professional Geologist) Penne A. Goplerud, Corporate Secretary & General Counsel (JD) * Founding Directors 6

Highly experienced technical and management team ~180 years of direct uranium production experience ISR operations experience Nebraska, Texas & Wyoming 7

440 operable reactors world wide with 384 GWe capacity 65 New Nuclear Reactors under construction in 14 countries 90 net new reactors by 2022 173 planned 337 proposed *Source: UxC Uranium Market Outlook Japan s reactor fleet: Sendai 1 began full operations September 10, 2015 Sendai 2 began full operations November 17, 2015 In 2014, world nuclear industry consumption was ~171 million lbs and production was only ~145 million lbs *Sources: Nuclear Energy Institute; World Nuclear Association 8

HEU secondary supply concluded in 2013 Provided 24 Mlbs/yr equivalent for past 20 years Large scale production uneconomical at current prices Rossing reduced production rates (6.0 Mlbs/yr) Paladin Kayelekera production halted (3.0 Mlbs/yr) Key supply deferrals BHP Billiton Olympic Dam expansion Cameco Kintyre and Millennium Areva Trekkopje and Imouraren Swakop Uranium Husab Many more Current uranium pricing cannot sustain high cost producers US shutdowns production rates falling 9

US demand is not met by US production US domestic production ~3.3M lbs of uranium/yr 1 US utilities consume ~46.5M lbs of uranium/yr 1 Ur-Energy is well positioned to capitalize on this opportunity Uranium originating in Kazakhstan, Russia and Uzbekistan accounted for 39% of the 53 million pounds purchased by US utilities 1 U.S. Energy Information Administration 2014 10

Multiple long-term contracts spanning 2013-2021 timeframe, post Fukushima ~3.1M lbs committed 2016 2021 (avg. price $49.81/lb) De-risking by securing future revenue stream in an uncertain market 2015: 630,000 lbs U 3 O 8 at avg. price of $49.42/lb - $31.1M gross revenues 2016: 662,000 lbs U 3 O 8 at avg. price of $47.58/lb - $31.5M gross revenues Spot sales supplementing On cash basis, Lost Creek is realizing $30+ margins in a sub-$30 spot price environment Exclusive representation by Jim Cornell of NuCore Energy, LLC 11

Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costs Wyoming Agreement State program being developed 12

Ur-Energy is a Pipeline Producer Target larger and scalable project Not just Pounds in the Ground Following the Smith Ranch model Flagship Lost Creek Property Wyoming ~42,000 acres 13

Resources Measured & Indicated Inferred 14,609,000 11,084,000 8,348,200 8,655,000 5,230,000 780,000 5,765,300 2,017,800 2,869,100 4,740,000 5,040,000 6,439,000 March 2011 February 2012 April 2012 December 2013 June 2015 February 2016 Increase in Resources Fukishima to Date...........250% Measured: 9.39 Mlbs eu 3 O 8 (in 9.74 Mt @ 0.048%) 1 Indicated: 5.22 Mlbs eu 3 O 8 (in 5.94 Mt @ 0.044%) Inferred: 6.44 Mlbs eu 3 O 8 (in 7.37 Mt @ 0.044%) Based on grade cutoff of 0.02% eu 3 O 8 and GT cutoffs of 0.2 and 0.3 1 Measured resources not reduced by the 1,358,000 lbs. produced from MU1 We are aggressively growing resources, not just replacing pounds produced *Amended Preliminary Economic Assessment for the Lost Creek Property, Sweetwater County, Wyoming, February 8, 2016. (filed on SEDAR) 14

Estimates additional 13.8 million pounds recoverable over life of mine (1.4 M pounds produced as of 9/30/15) Project Economics Gross future sales of US$919 M Net pre-tax cash flow US$511 M Lowest quartile Uranium Production Costs Life of mine operating costs at US$14.58/lb. Total pre-tax cost at US$29.29/lb. Average annual production of 0.86 M pounds U 3 O 8 at 37.4 mg/l Lost Creek Processing Plant *Amended Preliminary Economic Assessment for the Lost Creek Property, Sweetwater County, Wyoming prepared by TREC Inc. February 8, 2016 (posted on SEDAR). Cautionary statement: This Amended Preliminary Economic Assessment is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is increased risk and uncertainty to commencing and conducting production without established mineral reserves that may result in economic and technical failure which may adversely impact future profitability. The estimated mineral recovery used in this Amended Preliminary Economic Assessment is based on recovery data from wellfield operations to date, as well as Ur-Energy personnel and industry experience at similar facilities. There can be no assurance that recovery at this level will be achieved. 15

PPM A Construction and Operational Success Operations commenced and all production circuits commissioned in 2013 Surpassing production targets Peak production grade 3X-4X 2013 pre-operational projections Mine Unit 1 Lost Creek Head Grades vs. Projection 250 211 200 179 150 152 135 123 110 108 Interior of Header House 100 86 85 82 50 42 0 Pre-Ops Proj Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Finished Yellowcake Product 16

Uranium production 2013 YTD 2014 YTD 2015 YTD 2016 Q1 190K lbs captured 596K lbs captured 784K lbs captured 159K lbs captured 131K lbs drummed 548K lbs drummed 727K lbs drummed 174K lbs drummed $21.98/lb cash cost* $19.73/lb cash cost* $16.27/lb cash cost* Falling Costs Year on Year Down 17.5% Revenues from operations $15.41/lb cash cost* 2015 Avg Contract Sales Price $49.42/lb 2013 YTD 2014 YTD 2015 YTD 2016 Q1 $5.7 million $26.5 million $42.0 million $2.7 million 90K lbs at $62.92/lb sold 518K lbs at $51.22/lb sold 925K lbs at $45.20/lb sold 75K lbs at $36.12/lb sold Ur-Energy has emerged as the lowest cost producer of all publicly traded companies worldwide *Excludes severance and ad valorem taxes, which for 2014 averaged $2.48 per pound and for 2015 averaged $3.14 per pound 17

Purchase closed in December 2013 On patented mining claims we own the ground 8.8 million pounds, shallow, high grade roll front deposit ISR amenable mineralization Application for permit to mine submitted in December 2015. Work on other applications is underway. Mineral Resource Estimate Summary July 2014 MEASURED INDICATED RESOURCE SHORT AVG GRADE SHORT TONS POUNDS AVG GRADE POUNDS AREA TONS % eu 3 O 8 (X 1000) (X 1000) % eu 3 O 8 (X 1000) (X 1000) FAB TREND 0.280 1,172 6,574 0.119 456 1,081 AREA 5 0.243 195 947 0.115 93 214 TOTAL 0.275 1,367 7,521 0.118 549 1,295 MEASURED & INDICATED 0.230 1,915 8,816 1. Sum of Measured and Indicated tons and pounds may not add to the reported total due to rounding. 2. Based on grade cutoff of 0.02 percent eu 3 O 8 and a grade x thickness cutoff of 0.25 GT. 3. Measured and Indicated Mineral Resources as defined in Section 1.2 of NI 43-101 (the CIM Definition Standards (CIM Council, 2014)). 4. All reported resources occur below the historic pre-mining static water table. *Preliminary Economic Assessment Shirley Basin Uranium Project, Carbon County, Wyoming prepared by Western Water Consultants, Inc., d/b/a WWC Engineering January 27, 2015 (posted on SEDAR). 18

January 27, 2015 PEA* Estimates 6.3 million pounds will be produced from the Project Project Economics Gross revenues of US$230.1M LOM Net cash flow US$215.9M Internal rate of return (IRR) at 117.0% Uranium Production Costs Estimates direct operating costs at US$14.54/lb. Total cost of production including severance taxes and operational and capital spending is estimated at US$31.26/lb. Capital requirement of US$30.6M (with nominal annual budgets until buildout) *Preliminary Economic Assessment Shirley Basin Uranium Project, Carbon County, Wyoming prepared by Western Water Consultants, Inc., d/b/a WWC Engineering January 27, 2015 (posted on SEDAR). Cautionary Statement: This Preliminary Economic Assessment is preliminary in nature and includes mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is increased risk and uncertainty to commencing production without established mineral reserves that may result in economic and technical failure which may adversely impact future profitability. The estimated mineral recovery used in this Preliminary Economic Assessment is based on site-specific laboratory recovery data as well as URE personnel and industry experience at similar facilities. There can be no assurance that recovery of mineral resources at this level will be achieved. There is no certainty that the preliminary economic assessment will be realized. 19

Lucky Mc Gas Hills Historic estimate of resources: 4.7 Mlbs U 3 O 8 * Strategic opportunities with nearby developers ISR by-product disposal facility Revenue generating asset Fully licensed for operation Multiple disposal agreements in place Scarce asset 1 of 4 commercial facilities of this type in the US Historical US uranium exploration database Hundreds of project descriptions located in twenty-three states More than 15,000 drill logs; technical and economic evaluations Strong addition to Ur-Energy s existing project database *Ur-Energy is not treating the historic reports as current mineral resources or mineral reserves, because a Qualified Person has not yet conducted sufficient work to classify the estimates as such. Lucky Mc resource estimate is based on an internal 1996 PMC polygonal method estimation. 20

Continued focus to attain company-wide cost savings Recently reduced labor cost budget by 15% Long-term sales agreements Multiple contracts through 2021 Very selective as to pricing that we will accept Demonstrated Production Profile Growth (2 updates 2015) Lost Creek resources increased by 53% M&I and 36% Inferred in 2015 M & A activities 2016 corporate priorities Lost Creek: continue at steady-state; greater efficiencies Complete Shirley Basin applications for permits / licenses 21

For more information, please contact: Jeff Klenda, Chairman & Executive Director By Mail: Ur-Energy Corporate Office 10758 W. Centennial Rd., Suite 200 Littleton, CO 80127 USA By Phone: Office 720.981.4588 Toll-Free 866.981.4588 Fax 720.981.5643 By E-mail: jeff.klenda@ur-energy.com 22