Ur-Energy: Q1 Results Reflect Higher Pricing and Continued Operational Improvements at Lost Creek

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On May 8th, Ur-Energy (URG) announced its Q1/2026 financial and operational results. This was followed by a conference call and webcast on May 11. Operational improvements were seen during the quarter as 110,314 lbs U3O8 were captured at Lost Creek, following processing modifications and repairs performed in late 2025 at the CPP. The Q1/2026 figure represents an increase of 41% from Q1/2025. As anticipated during the quarter, 55,000 produced lbs were sold during the quarter at an average price of $70.98 per lb. Note that the majority 2026 contracted sales are back-end loaded.

On the operational front, 110,314 lbs U3O8 were captured at Lost Creek, as improved flow rates were achieved following plant modifications and repairs. That said, 95,599 lbs were packaged while 103,956 lbs were shipped. Also during the quarter, 15 header houses (HHs) were in operation, with 13 in MU2 and two brought online in MU1 Phase 2. Development at MU1 Phase 2 remains on schedule, with all planned wells drilled and cased and 7 of 10 planned HHs constructed. Delineation and development work continues in MU4 and MU5. Wellfield pattern planning for MU5 was recently initiated. At quarter-end, 15 drill rigs were actively supporting our Lost Creek drilling program.

Optimization efforts are underway to improve flow rates affected by fine particles from the host formation, including the installation of a sand filtration system, which is expected to be online later in Q2/2026. Work is also being conducted on developing a water treatment facility to further address fine particles and reduce wastewater.

SHIRLEY BASIN: OPERATIONS HAVE COMMENCED

Following completion of pre-operational inspections by the Wyoming Department of Environmental Quality, 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. 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.

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 during the 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 plant has a capacity for 1.0M lbs per year.

GREAT DIVIDE BASIN EXPLORATION ACTIVITIES

Exploration activities continued across the Great Divide Basin projects. At Lost Soldier, located 17 miles from the Lost Creek plant, aquifer testing commenced in April 2026 on test wells installed in 2025. Baseline environmental studies are planned this year to support potential permitting. With approximately 4,000 historic drill holes and proximity to Lost Creek, Lost Soldier has strong potential as a satellite operation. A technical report is underway with completion expected by year-end 2026. At North Hadsell, 33 framework drill holes totaling approximately 33,800 feet were completed prior to seasonal sage grouse restrictions in March 2026. Seven holes returned significant mineralization, including 13 intercepts exceeding 0.20 GT (Grade * Thickness), which closely resembles the mineralization found at Lost Creek.

SALES AND CONTRACTING

During the quarter, the company 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 (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

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 quarter with cash and equivalents totaling $122.8M (representing ~18% 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 44% upside from the recent May 8 close. Shares of Ur-Energy currently trade at a 0.91x NAV multiple.