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20110207 ure corporate presentation (february 2011)


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20110207 ure corporate presentation (february 2011)

  1. 1. N YSE Am ex : UR G TSX : UR E Ur-Energy is a dynamic junior mining company focusing on exploration and development of uranium properties in the United States and in Canada. Corporate Objectives: •Be a Low Cost Uranium Producer •Evaluate Strategic Opportunities •Build Shareholder Value •Create Value From Historic DatabasesCorporate P resentationFebruary 3, 2011This presentation and related information does notconstitute an offer to sell or a solicitation of anoffer to buy the Common Shares of Ur-Energy. Confidential
  2. 2. DisclaimerThis presentation contains “forward-looking statements,” within the meaning of applicable securities laws, regarding events or conditions that mayoccur in the future. Such statements include without limitation the Company’s timeframe for events leading to and culminating in thecommencement of production at Lost Creek including sufficiency of cash to fund capital requirements, receipt of (and related timing of) the NRCSource Material License, WDEQ Permit to Mine, BLM Plan of Operations, and all other necessary permits related to Lost Creek, and procurementand construction plans; specifics of drilling for Lost Creek; production rates and sustainability, timetables and methods at Lost Creek; permittingand licensing for Lost Soldier; and timing and relative results of exploration programs, including without limitation those at LC North and LC South,Hauber Project, the Bootheel Project and in Nebraska. With regard to discussion of the potential of exploration targets, it should be noted thatpotential quantity and grade ranges are conceptual in nature; there has been insufficient exploration yet to define a mineral resource at the twonew exploration targets. Further, it is uncertain if additional exploration will result in the exploration targets being delineated as a mineralresource.These statements are based on current expectations that, while considered reasonable by management at this time, inherently involve a numberof significant business, economic and competitive risks, uncertainties and contingencies. Numerous factors could cause actual events to differmaterially from those in the forward-looking statements. Factors that could cause such differences, without limiting the generality of the following,include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium; volatility and sensitivity to capital marketfluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resourceand reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; apossible deterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies;demand for nuclear power; delay in obtaining or failure to obtain necessary permits and approvals from government authorities; weather andother natural phenomena; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; and otherexploration, development, operating, financial market and regulatory risks. Although Ur-Energy Inc. believes that the assumptions inherent in theforward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of thispresentation. Ur-Energy Inc. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of newinformation, future events or otherwise.Cautionary Note Regarding Projections: Similarly, this presentation also may contain projections relating to an extended future period and,accordingly, the estimates and assumptions underlying the projections are inherently highly uncertain, based on events that have not taken place,and are subject to significant economic, financial, regulatory, competitive and other uncertainties and contingencies beyond the control of Ur-Energy Inc. Further, given the nature of the Companys business and industry that is subject to a number of significant risk factors, there can beno assurance that the projections can be or will be realized. It is probable that the actual results and outcomes will differ, possibly materially,from those projected.The attention of investors is drawn to the Risk Factors set out in the Companys Annual Report on Form 20-F (Annual Information Form) for thefiscal year ended December 31, 2009 filed with the regulatory authorities in Canada on SEDAR on March 11, 2010 and with the U.S. Securities andExchange Commission on EDGAR on March 12, 2010.Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources: the information presenteduses the terms "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms arerecognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. UnitedStates investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineralreserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically orlegally minable. Confidential 2 N YSE Am ex : UR G TSX : UR E
  3. 3. Ur-Energy At A GlanceShare Capital & Cash Position Cash per share as of 09/30/10 ~C$0.32As of 11/23/10 Share price as of 02/02/11 C$3.20Shares Outstanding 101.6M 52 Week Range C$.76 - C$3.35Stock Options 6.1M Avg. Daily Volume ~2,212,000Fully Diluted 107.7M (3-mo URE & URG) Geographical Distribution as of 6/30/10Market Cap (02/02/11) $310.4M United States ~40.5%Cash (09/30/10) C$34.7M Canada ~32.8%+Cash from expiring Stock Options (12/1/10) C$3.0M Other ~26.6%Debt $0NYSE Amex: URG TSX: URE Confidential 3 N YSE Am ex : UR G TSX : UR E
  4. 4. Analyst CoverageUnited StatesGVC Capital Mike Shonstrom (Denver, CO) 1 303-321-2392Rodman & Renshaw Alka Singh (New York) 1 212-430-1760CanadaCanaccord Adams (Vancouver, BC) 1 604-699-0829Dundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082Haywood Securities Geordie Mark (Vancouver, BC) 1 604-697-6112Macquarie Capital Duncan McKeen (Montreal, QC) 1 514-925-2856Raymond James Bart Jaworski (Vancouver, BC) 1 604-659-8282RBC Capital Adam Schatzker (Toronto, ON) 1 416-842-7850AustraliaResource Capital Research* Trent Allen (Sydney, NSW) 61 2-9252-9405*paid researchUr-Energy Inc is followed by the analysts listed above. This list, including the firms and individual analysts at these firms,is subject to change at any time without notice. Please note that any opinions, estimates, forecasts, conclusions orrecommendations regarding Ur-Energy Incs performance made by these analysts are theirs alone and do not representopinions, estimates, forecasts, conclusions, recommendations or predictions of Ur-Energy Inc or its management. Ur-Energy Inc does not by its reference above or in any other manner imply its endorsement of or concurrence with suchinformation, conclusions or recommendations. Confidential 4 N YSE Am ex : UR G TSX : UR E
  5. 5. Experienced Management Team Board of Directors Ex ecutive Directors W. William Boberg*, President, Chief Executive Officer (Professional Geologist) Jeffrey T. Klenda*, Board Chairman, Executive Director (Mining Finance) I ndependent Directors James M. Franklin*, Chair-Technical Committee (Professional Geologist) Paul Macdonell*, Chair-Compensation, Corp. Governance & Nominating Committees (Senior Federal Mediator) Thomas H. Parker, Chair-Audit Committee (Professional Engineer) Officers Harold A. Backer, Executive VP Geology & Exploration (Geologist) Wayne W. Heili, VP Mining & Engineering (Metallurgical Engineer) Paul W. Pitman, VP Canadian Exploration (Professional Geologist) Roger L. Smith, Chief Financial Officer, VP Finance, IT & Administration (CPA & MBA) Paul G. Goss, Corporate Secretary & General Counsel (JD & MBA)* Founding Directors Confidential 5 N YSE Am ex : UR G TSX : UR E
  6. 6. Our People Define Us481 Years total resource industry experience300 Years of Uranium Industry ExperienceHighly experienced technical professionalemployees (4 Engineers, 17 Geologists and 3 Landmen)120 Years of direct extensive uraniumproduction experience ISR operating experience – Nebraska, Texas & Wyoming22 Management, Professionals and SupportStaffContractors and consultants have extensiveuranium exploration, development andproduction experience As of: 01/18/11 Confidential 6 N YSE Am ex : UR G TSX : UR E
  7. 7. US Infrastructure Isolated from Resources Christensen / Irigaray (650,000 pounds) Uranium One / ISR (Standby) Sweetwater Mill (1 million pounds) Rio Tinto / Conventional (Standby) Smith Ranch / Highland (5.5 million pounds) CAMECO / ISR (Producing) Crow Butte (1 million pounds) CAMECO / ISR (Producing)Shootaring Canyon Mill (1 million pounds)Uranium One / Conventional (Standby) Cañon City Mill (1 million pounds) Cotter Corp. / Conventional (Standby) White Mesa Mill (8 million pounds) Denison / Conventional (Producing) Hobson (1 million pounds) Uranium Energy / ISR (Producing) Rosita(1 million pounds) URI / ISR (Standby) Alta Mesa (1 million pounds) Kingsville Dome (1 million pounds) Mesteña / ISR (Producing) URI / ISR (Standby) Confidential 7 N YSE Am ex : UR G TSX : UR E
  8. 8. US Produces Only 7% of Uranium Consumed US uranium concentrate production totaled 3,749,550 pounds U3O8 in 2009. This amount is 17% lower than the 4,533,578 pounds produced in 2007 The US produces only 7% of the uranium it consumes! In 2009, the 10-year forward cumulative unfilled uranium requirement of US utilities was 260,982,000 lbs There will be a premium paid for domestically produced uranium Confidential 8 N YSE Am ex : UR G TSX : UR E
  9. 9. Future Demand to Outpace Supply Continuing challenges in Kazakhstan China expected to install at least 75 GWe of nuclear capacity by 2020 (McKinsey&Company) HEU Program expires at the end of 2013 and will not be renewed Rosatom head Sergei Kiriyenko has reportedly told US utilities there will be no HEU-2 deal Costs of new global uranium supply expected to rise sharply with positive impact on prices See Disclaimer re Forward-looking Statements and Projections (slide 2) Confidential 9 N YSE Am ex : UR G TSX : UR E
  10. 10. In-Situ Recovery (ISR) Uranium Mining Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costsSee Disclaimer re Forward-looking Statements and Projections (slide 2) Confidential 10 N YSE Am ex : UR G TSX : UR E
  11. 11. ISR – Low Impact Mining CAMECO Smith Ranch ISR Mine Powder River Basin, Wyoming Confidential 11 N YSE Am ex : UR G TSX : UR E
  12. 12. Wyoming ProjectsConfidential 12 N YSE Am ex : UR G TSX : UR E
  13. 13. Lost Creek Site Kennecott / Rio Tinto Sweetwater Mill – 3 miles south (NRC Licensed Facility on Standby)• 201 federal mining claims and 1 state lease • Processing plant – Up to 2M lbs per year• 5% Royalty on State Lease – No Federal • Plant build-out costs projected at <US$30M• Approx. 5% local severance taxes • No Community Opposition Confidential NYSE Amex: URG TSX: URE
  14. 14. 2010 & 2011 AchievementsAcquired Exploration Properties in NebraskaDraft NRC License Received Added C$3M From Exercise of Expiring Employee Stock Options(C$1.25)State Engineer Holding Permit ReceivedBlackRock Financing Completed, C$5M @ C$1WDEQ Final Class I UIC Permit (water disposal well) Received –Only WY Company to have secured permitHauber Project Manager/Member Bayswater Issues NI 43-101WDEQ-Air Quality Permit ReceivedNRC Pre-License Exemption for Limited Construction GrantedWY Game & Fish Dept. Approved Wildlife Management Plan Meets all the protection measures for the Greater Sage Grouse Species Confidential 14 N YSE Am ex : UR G TSX : UR E
  15. 15. Lost Creek – 9.8M Indicated lbs of U3O8 540 drill holes defined 1970’s discovery 1,097 drill holes drilled by Ur- Energy since 2005 2 Mine Units now fully delineated Mine Unit #3 planned for delineation in 2011 NI 43-101 Compliant Resource Leach Efficiency - 80% Indicated – 8.5 million tons @ 0.058% (9.8 million lbs U3O8) Industry Avg. - ~70% Avg 425 ft deep,19.5 ft @ 0.058% U3O8 (Recovery Rate) Inferred – 0.7 million tons @0.076% (1.1 million lbs U3O8) Pump Test Results - >30-50gpm Technical Report on the Lost Creek P roject, W yom ing, C. Stew art W allis, Roscoe P ostle Associates I nc., June 15, 2006 Industry Avg. - 15gpm (posted on SEDAR) (Good Porosity = Cost Savings) See Disclaimer (slide 2) Confidential 15 N YSE Am ex : UR G TSX : UR E
  16. 16. Lost Creek Preliminary Assessment Study indicates favorable economics Greatest sensitivity – uranium pricing & recovery efficiency Economic at uranium prices above $40 per pound U3O8 Summary Highlights for m inim um Life of Mine (LOM) Model based on 6 mine units totaling 8.1 million pounds U3O8 Total Production – 6.5 million pounds U3O8 (80% recovery efficiency) Model very conservative Does not include all NI 43-101 resources or prospect of resource expansion Base Case includes 20% contingency to both operating and capital Operating Cash Costs (base case including all restoration) = $23.36/pound $35 - $38/pound all-in costs, including capital recovery Capital Costs (through production of first M ine Unit) Projected Cost of 2 Million Pound per Year ISR Plant = $30 million (current estim ate is ~$26 m illion) Projected Costs of drilling, environmental, engineering, etc = $32.5 million Capital Cost Requirements already spent down by ~$24 million Technical R eport by Lyntek Inc., April 2008 – P osted on SEDAR See Disclaimer (slide 2) Italicized item s are Ur-Energy estim ates as of April 2010 Confidential 16 N YSE Am ex : UR G TSX : UR E
  17. 17. US$24M in CapEx CompletedMine Units 1 & 2 Delineated MU #1 Monitor Well Ring CompletedPlant Engineering CompletedDrilled and Tested Class I UIC WellOrdered Key Plant Equipment 10 Ion Exchange Columns 2 Ion Exchange polishing columns 2 Restoration columns 2 Elution columns 2 Filter presses Ur-Energy’s Ion Exchange ColumnsAcquired Operational Support Equipment forCurrent Work & Mine Unit Operations Major Rolling Equipment Required Operational Equipment Training & Developing Operational StaffAcquired Initial Mine Unit Header House Prototype Completed for OperationsSelected General Contractor – Fagen, Inc. Interior of Ur-Energy’s prototype Header House Confidential 17 N YSE Am ex : UR G TSX : UR E
  18. 18. Lost Creek On-Site Processing Plant Corp. Decision: Spoke & Hub Model Not Viable Option Central Processing Plant located adjacent to Lost Creek deposit Production Life: Seven years Capital Cost: $26M-$30M Operating Cost: $23/lb of U3O8; $35 - $38/lb all-in cost Adjacent properties have potential for additional resources: 20.7 to 24.1 million tons with an average grade of 0.028% U3O8 (not an NI 43- 101 compliant resource) Cost Savings No satellite facilities No additional transportation costs Satellite Facility Requirements Permitting, engineering, bonding, deep disposal w ell , etc. Nearly full requirements as an On-Site plant (~75%-80% of full plant) Imagine repeating this process for each facility for few additional pounds See Disclaimer (slide 2) Confidential 18 N YSE Am ex : UR G TSX : UR E
  19. 19. Exploration Targets on Adjacent Properties Potential of Additional Resources U3O8 to be added to Lost Creek Project Area and Adjacent Lands Multiple roll fronts in four stratigraphic horizons defined by ~500+ drill holes ~50-60 historic holes mineralized with grades similar to Lost Creek resource Potential for additional resources: 20.7 to 24.1 million tons with an average grade of 0.028% U3O8 (not an NI 43-101 compliant resource) 2010 exploration drill program (159 holes 101,270 ft (30,867 m)) defined numerous individual uranium roll frontAssumptions based on knowledge as of September 1, 2009. systemsThese potential quantity and grade ranges are conceptual in nature. Therehas been insufficient exploration to define a mineral resource outside the Additional drilling of 2000-3000 holes at a cost of $15 M - $22.5Mcurrent Lost Creek resource. It is uncertain if further exploration will resultin the new target areas outside the Lost Creek resource being delineated asa mineral resource.See Disclaimer re Forward-looking Statements and Projections (slide 2) (~$7,500/hole) Confidential 19 N YSE Am ex : UR G TSX : UR E
  20. 20. Lost Creek Regulatory Achievements Sweetwater County: Development Plan Approved by County Com m issioners, Decem ber 2009 Wyoming DEQ – Air Quality Division: Operational Permit Final P erm it I ssued, January 2010 Wyoming DEQ – Water Quality Division: Class I UIC Permit (water disposal well) Final P erm it I ssued, M ay 2010 Wyoming State Engineer: Holding Ponds Permit Final P erm it I ssued, June 2010 Nuclear Regulatory Commission Source Material License – Draft Issued January 2011 Supplemental Environmental Impact Statement (SEIS): Nearing Completion Draft SEIS : Issued December 2009 Public Comment Period Ended March 3, 2010 Safety Evaluation Report (SER): Nearing Completion Limited Construction Prior to License Issuance: Exemption Granted April 2010 Wyoming DEQ – Land Quality Division: Permit to Mine Includes Application for First Mine Unit Permit Addresses Sage Grouse Impacts Nearing Completion U.S. Bureau of Land Management Plan of Operations: Environmental Review Process Underway See Disclaimer re Forward-looking Statements and Projections (slide 2) Confidential 20 N YSE Am ex : UR G TSX : UR E
  21. 21. Lost Soldier – 12.2M M&I lbs U3O8 M & I resource average 17.2 ft @0.065% U3O8 Average 240 feet deep 2 primary zones Leach efficiency 49% - 84% Can be licensed as amendment to Lost Creek license Approximately 4000 drill holes define deposit 17 monitor/pump test wells installed (From Figure 16-2, Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, RPA, July 10, 2006 - posted on SEDAR) NI 43-101 Compliant Resource Measured & Indicated (M & I) – 9.4 million tons @ 0.065% (12.2 million lbs U3O8) Inferred – 1.6 million tons @0.055% (1.8 million lbs U3O8) (Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, 2006 - Posted on SEDAR) See Disclaimer re Forward-looking Statements and Projections (slide 2) Confidential 21 N YSE Am ex : UR G TSX : UR E
  22. 22. Screech Lake, Thelon Basin, NWT Completed Audio-Magnetotelluric Geophysical Survey, and Soil Gas Hydrocarbon and Enzyme Leach Soil Geochemistry Analyses to Better Define Drill Target Seeking Social License with First Nations MegaTEM Survey Screech Lake See Disclaimer re Forward-looking Statements and Projections (slide 2) 0 4 Kilometers Confidential 22 N YSE Am ex : UR G TSX : UR E
  23. 23. Ur-Energy Advantage over Peers Ur-Energy Uranium Energy Uranerz Corp (1) Current Share Price $3.23 $6.00 $5.36 (As of 02/02/11) Market Cap $316.3M $413.6 M $340.4 M (As of 02/02/11) Working Capital C$34.7 M C$35.0 M C$36 M (As of 09/30/10) (As of Jan 2011) (As of Jan 2011) Enterprise Value $281.6 M $378.6 M $304.4M (Market Cap – Cash) NI 43-101 lbs U 3 O 8 24.9 M lbs 10.4 M lbs 13.7 M lbs (M&I and Inferred) Value/lb $11.30/lb $36.40/lb $22.21/lb (1) Owns licensed Hobson plant and started production at La Palangana 4Q2010 Information obtained from public sources believed to be reliable. Ur-Energy cannot guarantee accuracy and is not responsible for errors or omissions Confidential 23 N YSE Am ex : UR G TSX : UR E
  24. 24. Today’s Reality Today’s Price Breakout Appears Sustainable Broad Based Support, Even Hedge Funds are Re-entering the Market China and Asian Countries Actively Acquiring Future Supplies, Constraining Available Supply ISR Junior Business Model Needs Re-Evaluation (satellite vs. on-site processing plant) Economically Recoverable Pounds Most Important Market Rewarding Companies With Production ProfileSee Disclaimer re Forward-looking Statements and Projections (slide 2) Confidential 24 N YSE Am ex : UR G TSX : UR E
  25. 25. Ur-Energy’s Strong Position Technical Team – Best Among North American Juniors Near-Term, Low-Cost Production (~$23.00/lb) Mining Jurisdiction - Uranium Friendly Economical On-Site Processing Plant Cash Resources, C$34.7 Million (as of 9/30/10 + C$3 Million added from exercise of expiring options) Permitting Process Nearing CompletionSee Disclaimer re Forward-looking Statements and Projections (slide 2) Confidential 25 N YSE Am ex : UR G TSX : UR E
  26. 26. Building Shareholder Value Ongoing Exploration – Increase Minable Resources that will be Accessible to the Lost Creek On-Site Processing Plant Acquisition of Additional Exploration Properties Monetizing Historic Databases Seeking Acquisitions and Strategic Alliances that will Positively Impact Production Profile Bottom Line Re-Rating Likely as Ur-Energy Nears ProductionSee Disclaimer re Forward-looking Statements and Projections (slide 2) Confidential 26 N YSE Am ex : UR G TSX : UR E
  27. 27. 2011 Is Our Year! Anticipated Issuance of NRC Source Material License Enter into Offtake Agreement for Future Uranium Delivery with US Utilities Issuance of WDEQ Permit to Mine Wellfield Injection Wells UIC Permit: Aquifer Ex em ption is P art of W DEQ M ine P erm it BLM Plan of Operations Approval Targeted Construction Start-up (Beginning of 6 – 9 Month Build-Out) Re-RatingSee Disclaimer re Forward-looking Statements and Projections (slide 2) Confidential 27 N YSE Am ex : UR G TSX : UR E
  28. 28. Ur-Energy - The Right People. The Right Projects. Right Now. For more information, please contact: Bill Boberg, President, Chief Executive Officer & Director Jeff Klenda, Board Chairman & Director Rich Boberg, Director, Public Relations  By Mail: Ur-Energy Corporate Office 10758 W. Centennial Rd., Ste. 200 Littleton, CO 80127 USA  By Phone: Office (720) 981-4588 Toll-Free (866) 981-4588 Fax (720) 981-5643  By E-mail: Confidential 28 NYSE Amex:: URG N YSE Am ex UR G TSX::URE TSX UR E