Ur-Energy: Final WDEQ Authorization Received for Uranium Recovery and Resin Transport from Shirley Basin

DISCLAIMER: Any written content contained herein should be viewed strictly as analysis & opinion and not in any way as investment advice. No compensation was received for this report. Visitors to this site are encouraged to conduct their own due diligence.

Earlier today, Ur-Energy (URE, URG) announced that it had received final authorization from the Wyoming Department of Environmental Quality (WDEQ) Uranium Recovery Program (URP) to advance from limited operations to full-scale uranium ISR operations. This authorization includes the allowance for transport of uranium loaded resins from the Shirley Basin ISR mine to the company’s Lost Creek processing facility.

The milestone WDEQ authorization allows for full leveraging of the Lost Creek facility given that uranium loaded resin can now be transported from the Shirley Basin to the facility located ~100 miles away. Shipments of loaded resin to Lost Creek will commence in the coming weeks as wellfield flow rates are steadily increased to full commercial levels. Processing at the Lost Creek facility will allow for both drying and packaging.

Recall that HH 1-1 at the Shirley Basin was brought online this past April, marking the start of initial operations. Captured on ion exchange resin, uranium concentrations in the recovered solutions are expected to increase over time as the wellfield is further conditioned and all production circuits are brought online. With a Measured & Indicated resource of 8.8M lbs U3O8, Shirley Basin's estimated LOM is 9 years, spread over three shallow mine units. The Lost Creek facility’s annual capacity totals 2.2M lbs

SHIRLEY BASIN: OPERATIONS COMMENCED LAST APRIL

Recall that HH 1-1 was brought online in April 2026, marking the start of initial operations. Captured on ion exchange resin, uranium concentrations in the recovered solutions are expected to increase over time as the wellfield is further conditioned and all production circuits are brought online. The installation of HH 1-2 has progressed, with the main pipeline completed for the first four header houses. Wellfield development continued across HH 1-3 through HH 1-8. As of March 31, 2026, 540 wells have been pilot drilled, 312 of those wells had been cased, and 8 drill rigs were active. Five HHs have been constructed, with additional units underway. Construction progressed last quarter across all major workstreams, with key infrastructure substantially complete, including roads, power, support facilities, evaporation ponds, and the plant structure. Ion exchange columns and most tanks have been installed, with ongoing work focused on piping, electrical systems, and interior plant construction. The site is fully staffed, supported by a phased hiring and training program aligned with operational ramp-up.

Since the Shirley Basin ISR Project was initially acquired in 2013 (via the Pathfinder Mines acquisition), the announced production milestone marks Ur-Energy's second successful ISR mine brought online from early development. With a Measured & Indicated resource of 8.8M lbs U3O8, Shirley Basin's estimated LOM is 9 years (spread over three shallow mine units) while the facility has a capacity for 2.2M lbs per year.

SALES AND CONTRACTING

During the Q1/2026 period, Ur-Energy sold 55,000 lbs of U3O8 at an average price of $70.98 per pound, generating $3.9M in revenue. The majority of the FY/2026 deliveries are scheduled for the latter part of the year to complement the ramp-up and start-up schedules of both Lost Creek and Shirley Basin. Recall that 1.3M lbs U3O8 are contracted for FY/2026. Over the long term extending until 2033, agreements in place total approximately 5.75M lbs, spread over eight agreements featuring a mix of escalated fixed pricing and market-related pricing with floors and ceilings.

PRODUCTION AND ESTIMATES

Company-wide, Shirley Basin adds another functioning ISR operation to Ur-Energy's portfolio. With sales agreements for 5.75M extending from 2026-2033, the addition of a second meaningful operating mine site will provide the company with the flexibility needed for delivery. Overall, our estimates for both Lost Creek and Shirley Basin are as follow:

CONCLUSION & VALUATION

As production continues to improve at Lost Creek, the recent production start at Shirley Basin adds another functioning ISR operation to Ur-Energy's portfolio. With sales agreements for 5.75M extending from 2026-2033 (eight agreements, featuring a mix of escalated fixed pricing and market-related pricing with floors and ceilings), the addition of a second meaningful operating mine will provide the company with the flexibility needed for delivery and for the potential signing of additional LT contracts.

The company ended the Q1 quarter with cash and equivalents totaling $122.8M (representing ~17% of current mcap). Finished inventory held at the conversion facility increased to 417,231 lbs at quarter end. While maintaining our $100 per lb LT uranium price, we also maintain our 1.3x NAV8% valuation methodology. As such, our 12-month price objective is maintained at $2.50 per share (rounded) representing +30% upside from the recent June 26 close. Shares of Ur-Energy currently trade at a 1.01x NAV multiple.