Ur-energy Inc. · TSX:URE
Ur-energy — Corporate Update (August 2018)
23 slides from Ur-energy's corporate update, Aug 7, 2018
Slide 1: Five Years at Lost Creek
NYSE American: URG • TSX: URE Five Years at Lost Creek Ur - Energy Webcast August 7, 2018
Slide 2: Forward-looking statements disclaimer
NYSE American: URG • TSX: URE 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 maintaining controlled - level production
Slide 3: Lost Creek ISR Uranium Facility overview
NYSE American: URG • TSX: URE 3 See Disclaimer re Forward - looking Statements and Projections (slide 2) ▪ Lost Creek ISR Uranium Facility • 5 years of consistent production Initiated MU2 production in 2017 Q3 • Controlled production at market - appropriate levels • Produced ~2.55M lbs. U 3 0 8 thro
Slide 4: Nuclear and uranium demand outlook
NYSE American: URG • TSX: URE ▪ U.S. nuclear: 20% of nation’s electrical energy; 62% carbon - free electricity ▪ Worldwide: 11% electrical energy; ~1/3 carbon - free electricity ▪ 452 operable reactors; 52 under construction ▪ Global U 3 O 8 demand projected to increase 3.1% annually through 2025 ▪
Slide 5: Supply reductions and projected closures
NYSE American: URG • TSX: URE 5 See Disclaimer re Forward - looking Statements and Projections (slide 2) Further Reductions ? □ Kazatomprom (anticipated IPO)? □ Cameco: McArthur River closed “ indefinitely ” □ Rio Tinto ? □ Paladin Projected Closures x Paladin (August 2018) x Ranger (2020) x Rossing
Slide 6: Five-year accomplishments at Lost Creek
NYSE American: URG • TSX: URE 6 ▪ Improved safety record year over year ▪ Produced, packaged and shipped > 2.4M lbs U 3 O 8 ▪ Built solid contract book for a period of nine years (2013 - 2021) ▪ Significantly grew Lost Creek Property NI 43 - 101 resource ▪ First ISR facility to reduce/recycle waste
Slide 7: Wellfield and processing plant status
NYSE American: URG • TSX: URE 7 Wellfield ▪ MU1: ▪ Recovered approximately 92% of under - pattern resources through Q2 2018 ▪ All 13 header houses remain in operation ▪ Planning for capture of remaining pounds not currently under pattern ▪ MU2: ▪ Exceptional recoveries on patterns installed to date
Slide 8: Lost Creek resources increase since Fukushima
NYSE American: URG • TSX: URE 8 See Disclaimer re Forward - looking Statements and Projections (slide 2) 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
Slide 9: Uranium production, cost and revenues from sales
NYSE American: URG • TSX: URE 9 2013 2014 2015 2016 2017 2018 thru Q2 Captured 190K lbs 596K lbs 784K lbs 538K lbs 265K lbs 173K lbs Drummed 131K lbs 548K lbs 727K lbs 561K lbs 254K lbs 154K lbs Cash Cost* $21.98/lb $19.73/lb $16.27/lb $17.15/lb $24.41/lb $25.37/lb Uranium Production and Cost 2013 2
Slide 10: Operational leverage: ready to ramp up
NYSE American: URG • TSX: URE 10 ▪ Staffing Levels ▪ Reduced manpower to operating staff only ▪ Retained key staff to facilitate ramp up when time is right ▪ Efficiencies ▪ Optimized Class V waste water recycling ▪ Installing / testing disposal well mods ▪ Modified production systems to enhance and
Slide 11: Shirley Basin project
NYSE American: URG • TSX: URE ▪ 8.8 million pound, shallow, drilled - out, high grade deposit ▪ Uranium production costs estimated at $14.54/lb ▪ Capital requirement of $30.6M (with nominal holding costs until buildout) ▪ Primarily on patented mining claims – we own the ground ▪ Filed application fo
Slide 12: See Disclaimer re
NYSE American: URG • TSX: URE 12 See Disclaimer re Forward - looking Statements and Projections (slide 2)
Slide 13: See Disclaimer re
NYSE American: URG • TSX: URE 13 See Disclaimer re Forward - looking Statements and Projections (slide 2)
Slide 14: U.S. demand dependent on foreign imports
NYSE American: URG • TSX: URE ▪ U.S. demand is dependent on foreign imports Imports of 50MLbs annually for seven of last eight years • U.S. domestic production ~1.2M lbs U3O8, 2017 – 55% less than 2016 ▪ Ur - Energy is well positioned to capitalize on this opportunity 14 See Disclaimer re Forward
Slide 15: Subsidized imports and declining domestic production
NYSE American: URG • TSX: URE State - owned and subsidized enterprises within Russian geopolitical influence are expanding and have filled 32 - 38% of recent U.S. demand, while U.S. production is declining and is expected to fill less than 2% of 2018 demand 15 Russian Suspension Agreement ends Decem
Slide 16: National security and domestic supply
NYSE American: URG • TSX: URE ▪ Military needs, by treaty, must be filled with domestic supply yet our inventory is, in the words of DOE, “finite and diminishing . ” x Tritium x Naval Propulsion x Weapons x Priority Missions ▪ National economic security is also an integral part of the statute . U .
Slide 17: New nuclear reactors worldwide
NYSE American: URG • TSX: URE 17 Source: WNA, “Plans For New Nuclear Reactors Worldwide,” updated July 2018
Slide 18: Section 232 petition
NYSE American: URG • TSX: URE ▪ The Petition was filed by Ur - Energy USA Inc. and Energy Fuels Resources (USA) Inc. and covers uranium mining only ▪ The 700+ page exhaustive Petition discusses x the decline of the domestic uranium mining industry, x the cause of the decline, x the nexus to national
Slide 19: Section 232 investigation timeline
NYSE American: URG • TSX: URE ▪ Petition filed January 16, 2018 ▪ Commerce initiated the investigation on July 18, 2018 ▪ Public comment period ends September 10, 2018 ▪ Comments can be submitted to uranium232@bis.doc.gov ▪ Commerce must complete its investigation within 270 days and make recommenda
Slide 20: Fewer uranium companies remain
NYSE American: URG • TSX: URE ▪ Very few remaining uranium companies (~40 worldwide / down from 585 in 2007) ▪ Even fewer who are producers or reasonably can be expected to be near - term producers ▪ Renewed emphasis on production and operational leverage ▪ Market conditions beginning to resemble 20
Slide 21: Market drivers and catalysts
NYSE American: URG • TSX: URE ▪ Supply / Demand: Growth Rate is Real • > 1Billion pound uncontracted requirement in next decade • New players entering uranium market • Real production cuts needed from Kazakhstan - plus Cameco’s announcements ▪ Current Market Forces • Kazatomprom’s planned IPO – 2018
Slide 22: Q&A Session
NYSE American: URG • TSX: URE Q&A Session Your questions, please 22
Slide 23: Contact information
NYSE American: URG • TSX: URE For more information, please contact: Jeff Klenda , Chairman, President & CEO By Mail: Ur - Energy Inc. 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 - energ