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Ur-Energy February 2013 Corporate Presentation

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Ur-Energy February 2013 Corporate Presentation

  1. 1. NYSE MKT: URG • TSX: URE
  2. 2. Corporate Presentation February 2013 Ur Energy Ur-Energy is an advanced pre production junior mining pre-production company focused on development of low-cost uranium production properties in the United States. Corporate Objectives  Lost Creek Development  Resource Growth  Strategic OpportunitiesNYSE MKT: URG • TSX: URE 2
  3. 3. Disclaimer 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 timeframe for events leading to and culminating in the commencement of production at Lost Creek (including procurement, construction and commissioning); the timing and outcome of the challenge to the BLM Record of Decision, including petitioner’s motion for preliminary injunction, the technical and economic viability of Lost Creek (including the projections contained in the preliminary analysis of economics of the Lost Creek Property); ability and timing of the Company to secure project financing including the state bond process; timing and completion of closing of the Pathfinder transaction; the ability to complete additional favorable uranium sales agreements and ability to reduce exposure to volatile market; the potential of exploration targets throughout the Lost Creek Property (including the ability to expand resources); the further exploration, development and permitting of exploration projects including Lost Soldier, the Nebraska properties, Screech Lake and, following a closing, at PMC projects; the long term effects on the uranium market of events in Japan in 2011 including supply and demand projections; and whether a re-rating of the Company will occur as production nears. These statements are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Numerous factors could cause actual events to differ materially 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 market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demand for nuclear power; weather and other natural phenomena; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; and other exploration, development, operating, financial market and regulatory risks. Although Ur-Energy Inc. believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this presentation. Ur-Energy Inc. disclaims any intention or obligation to update or revise any forward- looking statement, whether as a result of new information, 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, p y g p j y g y p j g 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 be no 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 Information Form and Annual Report on Form 40-F, dated March 2, 2012, which are filed, respectively, with the regulatory authorities in Canada on SEDAR and with the U.S. Securities and Exchange Commission on EDGAR. (www.sedar.com and http://www.sec.gov/edgar.shtml) Cautionary Ca tionar Note to U S In estors Concerning Estimates of Meas red Indicated or Inferred Reso rces the information presented uses the terms "meas red" U.S. Investors Measured, Resources: ses "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. John Cooper, Ur-Energy Project Geologist, P.Geo. and SME Registered Member, and Qualified Person as defined by National Instrument 43-101, and Catherine Bull, Ur-Energy Project Engineer, Wyoming P.E., and Qualified Person as defined by the NI 43-101, reviewed and approved the technical information contained in this presentation presentation.NYSE MKT: URG • TSX: URE 3
  4. 4. Ur-Energy at a Glance  Advanced pre-production project at Lost Creek, Wyoming  Completed licensing activities in October 2012  Initiated site construction in October 2012  First production forecast for mid 2013  Expanding resources through acquisition and exploration  Definitive agreement to acquire Pathfinder Mines Corporation  Continued expansion at the Lost Creek Property  Secured revenue stream through long term sales agreements  Exclusive marketing agreement with NuCore  Maintaining a strong balance sheet  $17 million top-up financing in February 2012  Advancing application for $34 million Wyoming Industrial Revenue BondSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 4
  5. 5. Ur-Energy’s Market Position Share Capital & Cash Position NYSE MKT: URG As of 09/30/12 g Shares Outstanding 121.1M Stock Options & RSUs 7.3M Fully Diluted 128.4M Market Cap (02/07/13) C$107.81M Cash (09/30/12) C$29.2M Cash per Share (09/30/12) ~C$0.241 Share Price (02/07/13) C$0.89 52 Week Range C$.64 - $1.34 TSX: URE Avg. Avg Daily Volume ~125,000 125 000 (3-mo URG & URE 02/07/13) Member of S&P/TSX SmallCap Index Geographical Distribution as of 6/30/12 United States ~46% Canada ~40% Other ~14%See Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 5
  6. 6. Analyst Coverage United States Roth Capital Partners Michael Legg (New York, NY) 1.646.358.1917 Canada Dundee Securities David A. Talbot (Toronto, ON) 1.416.350.3082 Haywood Securities Colin Healey (Vancouver, BC) 1.604.697.7400 Raymond James David Sadowski (Vancouver, BC) 1.604.659.8255 RBC Capital Adam Schatzker (Toronto, ON) 1.416.842.7850 Ur-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 or recommendations regarding Ur-Energy Inc. performance made by these analysts are theirs alone and do not represent opinions, 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 such information, conclusions or recommendations.NYSE MKT: URG • TSX: URE 6
  7. 7. Experienced Management Team Board of DirectorsExecutive Directors Wayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer) Jeffrey T. Klenda,* Board Chairman, Executive Director (Mining Finance)Non-Executive Directors W. William Boberg,* Former President & CEO (Professional Geologist) James M. Franklin,* Chair-Technical Committee (Professional Geologist) Paul Macdonell,* Chair-Compensation and Corp. Governance & Nominating Committees (Se o ede a ed ato ) (Senior Federal Mediator) Thomas H. Parker, Chair-Audit Committee (Professional Engineer)Officers Roger L. Smith, Chief Financial Officer & Chief Administrative Officer (CPA & MBA) StSteven M. Hatten, VP Operations (Mining E i M H tt O ti (Mi i Engineer) ) John W. Cash, VP Regulatory Affairs, Exploration & Geology (Geologist & Geophysicist) Penne A. Goplerud, Corporate Secretary & General Counsel (JD)* Founding DirectorsNYSE MKT: URG • TSX: URE 7
  8. 8. Industry Leading Professionals Highly experienced technical and management team 150 years of direct uranium production experience  ISR operations experience – Nebraska, Texas, Wyoming & KazakhstanNYSE MKT: URG • TSX: URE 8
  9. 9. Nuclear Fuel Demand is Growing  435 operable reactors world wide with 374 GWe capacity  US NRC approved four new reactor licenses in 2012  First nuclear power plant licenses in 30+ years  Seven new reactor construction starts in 2012  Russia - 1, China - 4, UAE - 1, South Korea - 1  Saudi Arabia & the United Kingdom combined have announced plans to build 24 new reactors  Renewed prospect of restarting Japans reactor fleet with election of new pro nuclear government late in 2012 pro-nuclearSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 9
  10. 10. Global Supply Picture is Dynamic  HEU agreement to expire this year  Provides 13% of world and 45% of US annual supply  Today’s capital markets present a significant obstacle to development of new large scale mining centers  Current uranium market price does not incentivize new supply development or sustain high cost conventional producers  Large scale production growth is being curtailed for the foreseeable future  New production will only come from a limited number of low cost cost, scalable projectsSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 10
  11. 11. The US Uranium Market  US demand is not met by US production  US mines produce ~ 4M lbs of uranium/yr1  US utilities consume ~55M lbs of uranium/yr1 55M  Ur-Energy is well positioned to capitalize on this opportunity1 U.S. Energy Information Administration gySee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 11
  12. 12. Sound Marketing Strategy  Balancing strategic and economic benefits of the spot/term price ratio  De-risking by securing future revenue stream in an uncertain market  Securing pricing that supports development plans for the Lost Creek project  Four term contracts secured with North American utilities  Exclusive representation by NuCore Energy LLC in off take Energy, off-take purchase agreement negotiationsSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 12
  13. 13. Ur-Energy’s US ProjectsNYSE MKT: URG • TSX: URE 13
  14. 14. Lost Creek ISR Project  Ur-Energy’s flagship property  8 to 10 year projected mine life  Low projected operating costs  Fully licensed for production  BLM approval subject of judicial review  U d construction Under t ti  First production anticipated in mid-2013  Growing resourcesSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 14
  15. 15. The Lost Creek Property Upgrade to the NI 43-101 mineral resource estimate on the Lost Creek property (as of April 30, 2012 PEA) Measured: 4.20 Mlbs eU3O8 (in 3.85 Mt @ 0.055%) Indicated: 4.15 Mlbs eU3O8 (in 3.96 Mt @ 0.053%) Inferred: 2.87 Mlbs eU3O8 (in 2.99 Mt @ 0.049%) * Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3 g  Updated technical report includes land added in 2012 and upgraded resources  Exploration targets within the Lost Creek project and adjoining projects provide potential of additional resources U3O8  Lost Creek Project – 4,254 permit acres Adjoining projects – ~38 000 acres 38,000Many of these exploration targets remain conceptual in nature.There has been insufficient exploration to define mineral resourceestimates at all such exploration targets. It is uncertain if furtherexploration will result in the additional target areas beingdelineated as further mineral resource.See Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 15
  16. 16. Preliminary Economic Assessment April 30, 2012 PEA* updates resources and economics  Extended life of mine to 8 – 10 years E t d d lif f i t  Mineral resource increase from February 2012 PEA  45% Increase in measured and indicated resources  42% Increase in inferred resources  Estimates operating costs at US $16.12/lb  Lowest quartile of all uranium producers  Project internal rate of return (IRR) at 87%  Capital requirement of only US $31.6M  Lowest quartile of all developing uranium production facilities*Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming Prepared by Ur-Energy Inc. – April 30, 2012(posted on SEDAR and EDGAR)Cautionary Statement: This PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologicallyto have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The estimated mineralrecovery used in this PEA is based on both site-specific laboratory recovery data as well as URE personnel and industry experience at similarfacilities. There can be no assurance that recovery at this level will be achieved.See Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 16
  17. 17. Under Construction  Groundbreaking October 2012  Wyoming based contractor hired  Nine month estimated build out build-out  Construction initiated  Processing plant  First mine unit  Auxiliary facilities Deep Disposal Well  Capital Requirement of $31.6M  Process plant: $18.8M $18 8M  Initial production area: $4.7M  Disposal well installation: $6.4M  Infrastructure: $1.7M  Staffed for construction  Management personnel Interior of Ur-Energy’s Prototype Header House  Field support crewSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 17
  18. 18. Lost Creek Construction Highlights Construction activities at the plant site Pipeline Pi li – plant to mine unit 1 l tt i it Pouring the plant foundation P i th l t f d ti Drilling activities at mine unit 1NYSE MKT: URG • TSX: URE 18
  19. 19. Pathfinder Mines Corporation PMC holds Ur-Energy’s next production center PATHFINDER  Definitive p g purchase agreement with AREVA signed in July 2012  Three major assets 1. 1 Projects: Shirley Basin & Lucky Mc 2. PMC’s extensive uranium exploration database p 3. Licensed ISR by-product disposal facility  Purchase price: US $13.25 million, 10% down payment, balance due on closing, no other monetary obligations prior to closing  Transaction expected to close in first half of 2013See Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 19
  20. 20. Pathfinder Projects  Brownfield properties, existing infrastructure, permits & licenses  Low holding costs g  Resources located on patented mining claims and state leases  Shirley Basin  Historic es a e o resources: >10 million lbs U3O8* s o c estimate of esou ces 0 o bs  High grade roll front deposit: average 0.21% U3O8  Uranium resources can be converted to NI 43-101 compliant  Shallow, ISR amenable mineralization  Lucky Mc – Gas Hills  Historic estimate of resources: 4.7 million lbs U3O8*  Uranium resources can be converted to NI 43-101 compliant  Strategic opportunities with nearby developers*Ur-Energy is not treating the historic reports as current mineral resources or mineralreserves, because a Qualified Person has not yet conducted sufficient work to classify theestimates as such.See Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 20
  21. 21. Pathfinder Assets  Historic US uranium exploration database  Hundreds of project descriptions located in twenty-three states H d d f j td i ti l t di t t th t t  Exploration reports dating back as far back as the 1960s  More than 15,000 drill logs  Technical d T h i l and economic evaluations i l ti  ISR by-product disposal facility  Fully licensed for operation  Multiple contracts in-place  Cash generating – money saving  Scarce asset – 1 of 4 commercial facilities in the USSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 21
  22. 22. Lost Soldier – 12.2M M&I lbs U3O8  Can be licensed with NRC as amendment to Lost Creek license NI 43-101 resource | July 2006 Measured & Indicated: 12.2 Mlbs eU3O8 (in 9.4 Mt @ 0.065%) Inferred: 1.8 Mlbs eU3O8 (in1.6 Mt @ 0.055%)  M&I resource average GT of 1.1 (17.2 (17 2 ft @ 0 065% U3O8) 0.065%  Shallow: 240 feet deep  Over 3,700 drill holes define deposit(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 3)NYSE MKT: URG • TSX: URE 22
  23. 23. Screech Lake, Thelon Basin, NWT MegaTEM Survey 0 4 Kilometers  Completed audio-magnetotelluric geophysical survey, and soil gas hydrocarbon and enzyme leach soil geochemistry analyses to better define drill targetsSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 23
  24. 24. Ur-Energy – Right Now!  Growth oriented technical & management team  Strong balance sheet  C $29.2 million (09/30/12)  Advanced pre-production project at Lost Creek  Low-cost uranium production center  Project construction began in October 2012  Signed multiple long-term uranium sales agreements  Reducing company exposure to volatile marketplace  Re-rating likely as Ur-Energy nears productionSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 24
  25. 25. Re-Rating Potential Stage EV/Lb Producers $4.31 URG $1.63 Source: Dundee (Jan 13, 2013) URG Upside vs. Producers As Ur-Energy  3X (+$2.49/Lb) (+$2 49/Lb) nears production production, re-rating is likelySee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 25
  26. 26. 2013 Objectives & News Flow 1. Advance Lost Creek to Production  Complete construction  Expand NI 43-101 compliant resources 2. Pathfinder Mines  Close transaction  Transition to operating and regulatory activities  Bring resources to NI 43-101 compliance 3. 3 Growth in production profile  Identify project priorities  Act on priorities 4. Corporate finance – positive cash position  Anticipated issuance of Wyoming Industrial Revenue Bond  Forecasting additional needsSee Disclaimer re Forward-looking Statements and Projections (slide 3)NYSE MKT: URG • TSX: URE 26
  27. 27. Ur-Energy–The Right People. The Right Projects. Right Now! For more information, please contact:Wayne Heili, President, Chief Executive Officer & DirectorJeff Klenda, Board Chairman & DirectorRich Boberg, Director of Investor and Public RelationsBy Mail:Ur-Energy Corporate OfficeU E C t Offi10758 W. Centennial Rd., Suite 200Littleton, CO 80127 USABy Phone:Office 720.981.4588Toll-Free 866.981.4588Fax 720.981.5643By E-mail:wayne.heili@ur-energy.comjeff.klenda@ur-energy.comrich.boberg@ur energy.comrich.boberg@ur-energy.comNYSE MKT: URG • TSX: URE 27

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