Ur-Energy to build out Shirley Basin Mine

Ur-Energy announces the decision to build out the wholly owned, fully permitted and licensed Shirley Basin Project in Carbon County, Wyoming. This decision was based on our growing uranium sales contract book, a strong uranium market price, and an expectation of growing demand for uranium as nations increasingly move toward clean nuclear power. The satellite plant will be designed with a flow rate of up to 6,000 gallons per minute and capacity to produce up to 1.0 million pounds of U3O8 per year. Ur-Energy’s permits and license allow for the construction of the elution, precipitation and drying circuits should it become economically advantageous. No amendments to the existing permits or licenses would be required. The satellite plant will be a relatively low-cost facility consisting of ion exchange, wastewater and groundwater restoration circuits. The ion exchange resin at Shirley Basin will be loaded with uranium from the mine and shipped to the Company’s operating Lost Creek ISR Facility for processing before being recycled back into operations at Shirley Basin. This satellite approach will help minimize initial facility capital costs to approximately $24.4 million and pre-operational wellfield development costs to $16.3 million. Sustaining capital expenditures over the life of the project are estimated to be $9.2 million. Operating expenditures before taxes and royalties are estimated to be $24.40 per pound. The royalty burden is minimal and is estimated to be $0.05 per pound U3O8. A detailed economic analysis can be found in the Technical Report Summary “Shirley Basin ISR Uranium Project, Carbon County, Wyoming, USA” as amended, March 11, 2024, that was filed with the Company’s 10-K/A Annual Report for 2023, March 12, 2024. The estimated time to finalize designs, order materials and construct the satellite plant and initial wellfield is approximately 24 months. Work has already been initiated on long-lead items and, as a result, the ion exchange vessels have been designed and ordered as our Board approved their purchase.