Ur-Energy: Operations Commence at the Shirley Basin ISR Project

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On April 23, Ur-Energy (URG) announced that operations have started at the Shirley Basin Project. This milestone announcement was made following the completion of significant construction, wellfield installation, and permitting. Uranium bearing solution is now being captured from Mine Unit 1.

Captured on ion exchange resin, the 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. Subject to additional regulatory inspection and approval, we expect the uranium loaded resin to be transported to Lost Creek (~100 miles away) later this summer for processing, drying and packaging.

SECOND SUCCESSFUL ISR MINE BROUGHT ONLINE

Since the Shirley Basin ISR Project was initially acquired in 2013 (via the Pathfinder Mines acquisition), today's announced 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 plant has a capacity for 1.0M lbs per year.

PRODUCTION 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 (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 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

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 equates to $2.50 per share (rounded) representing 37% upside from the recent April 22 close. Shares of Ur-Energy currently trade at a 0.95x NAV multiple.