Ur-Energy May 2013 Corporate Presentation

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Ur-Energy May 2013 Corporate Presentation

  1. 1. May 2013NYSE MKT: URG • TSX: URE
  2. 2. DisclaimerThis presentation contains “forward-looking statements,” within the meaning of applicable securities laws, regarding events or conditions that may occur in the future. Suchstatements include without limitation the Company’s timeframe for events leading to and culminating in the commencement of production at Lost Creek (including construction,commissioning and start up); the ability and timing of the Company to close on project financing including the state bond process and the RMBAH secured facility; the technicaland economic viability of Lost Creek (including the production and cost projections contained in the preliminary analysis of economics of the Lost Creek Property); timing andcompletion of closing of the Pathfinder transaction; the ability to complete additional favorable uranium sales agreements and ability to reduce exposure to volatile market; thepotential of exploration targets throughout the Lost Creek Property (including the ability to expand resources); the further exploration development and permitting of explorationpotential of exploration targets throughout the Lost Creek Property (including the ability to expand resources); the further exploration, development and permitting of explorationprojects including, following a closing, at PMC projects and production projections for PMC projects; the long term effects on the uranium market of events in Japan in 2011including 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, whileconsidered 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 thegenerality 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 resource and reserve estimates;environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclearenergy; changes in government regulations and policies including trade laws and policies; demand for nuclear power; weather and other natural phenomena; delays in obtainingenergy; changes in government regulations and policies, including trade laws and policies; demand for nuclear power; weather and other natural phenomena; delays in obtainingor 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 ofnew 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 andassumptions 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 ap g y gy , g p y y jnumber 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, possiblymaterially, 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 February 27, 2013 which arefiled, respectively, with the regulatory authorities in Canada on SEDAR and with the U.S. Securities and Exchange Commission on EDGAR. (www.sedar.com andhttp://www.sec.gov/edgar.shtml)Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources: the information presented uses the terms "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 Securitiesand 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 resourceswill 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 economicallyor legally minable.John Cooper, Ur-Energy Project Geologist, P.Geo., SME Registered Member and Qualified Person as defined by National Instrument 43-101, and Catherine Bull,Ur-Energy Project Engineer, Wyoming P.E., SME Registered Member and Qualified Person as defined by National Instrument 43-101, reviewed and approved thetechnical information contained in this presentation.NYSE MKT: URG • TSX: URE2
  3. 3. Ur-Energy at a GlanceAdvanced pre-production project at Lost Creek,WyomingFully licensed and under constructionFirst production forecast for third quarter 2013First production forecast for third quarter 2013Expanding resources through acquisition andexplorationDefinitive agreement to acquire Pathfinder Minesg qCorporationContinued expansion at the Lost Creek PropertySecured revenue stream through long term sales agreementsV l dd d i fi iValue added construction financing$27.25 million in 2012-2013$17.0 million top-up financing 02-12$5.1 million raised 03-13$5 0 illi b id l 05 13$5.0 million bridge loan 05-13Advancing application for $34 million Wyoming Industrial Revenue Bond$20.0 million RMBAH Secured Loan FacilityNYSE MKT: URG • TSX: URESee Disclaimer re Forward-looking Statements and Projections (slide 2)3
  4. 4. Ur-Energy’s Market PositionShare Capital & Cash PositionAs of 5/14/13Shares Outstanding 122.37MS k O i & RSU 9 06MNYSE MKT: URGStock Options & RSUs 9.06MWarrants .15MFully Diluted 131.58MMarket Cap (5/15/13) C$108.02MCash (3/31/13) C$7 3MCash (3/31/13) C$7.3MFunds Raised (5/14/13) US$5.0MCash per Share (3/31/13) ~C$0.06Share Price (5/15/13) C$0.9052 Week Range C$ 64 - $1 21 TSX: URE52 Week Range C$.64 $1.21Avg. Daily Volume ~141,700(3-mo URG & URE 5/15/13)Member of S&P/TSX SmallCap IndexTSX: UREGeographical Distribution as of 6/30/12United States ~46%Canada ~40%Other ~14%NYSE MKT: URG • TSX: URE4See Disclaimer re Forward-looking Statements and Projections (slide 2)
  5. 5. Analyst CoverageUnited StatesRoth Capital Partners Brian Post (New York, NY) 1.949.720.7178CanadaCanadaDundee Securities David A. Talbot (Toronto, ON) 1.416.350.3082Haywood Securities Colin Healey (Vancouver, BC) 1.604.697.7400Ur-Energy Inc is followed by the analysts listed above This list including the firms and individual analysts at these firms is subject to change atRaymond James David Sadowski (Vancouver, BC) 1.604.659.8255RBC Capital Adam Schatzker (Toronto, ON) 1.416.842.7850Ur Energy Inc. is followed by the analysts listed above. This list, including the firms and individual analysts at these firms, is subject to change atany 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 orpredictions of Ur-Energy Inc. or its management. Ur-Energy Inc. does not by its reference above or in any other manner imply its endorsementof or concurrence with such information, conclusions or recommendations.NYSE MKT: URG • TSX: URE5See Disclaimer re Forward-looking Statements and Projections (slide 2)
  6. 6. Experienced Management TeamBoard of DirectorsExecutive DirectorsWayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer)Jeffrey T. Klenda,* Board Chairman, Executive Director (Mining Finance)Non-Executive DirectorsW William Boberg * Former President & CEO (Professional Geologist)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(Senior Federal Mediator)Thomas H Parker Chair Audit Committee (Professional Engineer)Thomas H. Parker, Chair-Audit Committee (Professional Engineer)OfficersRoger L. Smith, Chief Financial Officer & Chief Administrative Officer (CPA & MBA)Steven M. Hatten, VP Operations (Mining Engineer)John W. Cash, VP Regulatory Affairs, Exploration & Geology (Geologist & Geophysicist)Penne A. Goplerud, Corporate Secretary & General Counsel (JD)* Founding DirectorsNYSE MKT: URG • TSX: URE6
  7. 7. Industry Leading ProfessionalsHighly experienced technical and management team160 years of direct uranium production experiencey p pISR operations experience – Nebraska, Texas, Wyoming & KazakhstanNYSE MKT: URG • TSX: URE7
  8. 8. Nuclear Fuel Demand is Growing435 operable reactors world widewith 374 GWe capacityActual production demandIn 2012 world nuclear industryconsumption was ~180 million lbs. andproduction was only ~152 million lbsproduction was only 152 million lbs.Under construction and plannedToday there are approximately 66nuclear plants under construction innuclear plants under construction in13 countries, 160 planned and 319proposedSaudi Arabia & the United Kingdom combined have announced plans to*Source: UxC Uranium Market Outlookbuild 24 new reactorsRenewed prospect of restarting Japans reactor fleet with election of newpro-nuclear government late in 2012NYSE MKT: URG • TSX: URE8See Disclaimer re Forward-looking Statements and Projections (slide 2)
  9. 9. Global Supply Picture is DynamicHEU agreement to expire this yearProvides 13% of world and 45% of US annual supplyToday’s capital markets present a significant obstacle todevelopment of new large scale mining centersC rrent rani m market price does not incenti i e ne s pplCurrent uranium market price does not incentivize new supplydevelopment or sustain high cost conventional producersLarge scale production growth is being curtailed for the foreseeablefutureSix largest conventional projects between 2013-2020 cancelled orshelved = 60 million lbs. supply lost*New production will only come from a limited number of low cost,scalable projects*February 2013 Dundee Supply ReportNYSE MKT: URG • TSX: URE9See Disclaimer re Forward-looking Statements and Projections (slide 2)
  10. 10. The US Uranium MarketUS demand is not met by US productionUS mines produce ~ 4M lbs of uranium/yr1US utilities consume ~55M lbs of uranium/yr1US utilities consume ~55M lbs of uranium/yr1Ur-Energy is well positioned to capitalize on this opportunity1 U.S. Energy Information AdministrationNYSE MKT: URG • TSX: UREgy10See Disclaimer re Forward-looking Statements and Projections (slide 2)
  11. 11. Sound Marketing StrategyBalancing strategic and economicbenefits of the spot/term price ratiobenefits of the spot/term price ratioDe-risking by securing futurerevenue stream in an uncertainmarketmarketSecuring pricing that supportsdevelopment plans for the LostCreek projectFour term contracts secured withNorth American utilitiesExclusive representation by NuCore Energy, LLC in off-takepurchase agreement negotiationsNorth American utilitiesNYSE MKT: URG • TSX: URE11See Disclaimer re Forward-looking Statements and Projections (slide 2)
  12. 12. Ur-Energy’s US ProjectsNYSE MKT: URG • TSX: URE12
  13. 13. In-Situ Recovery (ISR) Uranium MiningEnvironmentally sound production methodWell understood by Wyoming state regulatorsCost effective low capital costsNYSE MKT: URG • TSX: URE13Cost effective, low capital costs
  14. 14. The Lost Creek PropertyUpgrade to the NI 43-101 mineral resource estimate on theLost 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%)* B d d t ff f 0 02% U O d GT t ff f 0 3Updated technical report includes landadded in 2012 and upgraded resources* Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3Exploration targets within the Lost CreekProject and adjoining projects providepotential of additional resources U3O8Lost Creek Project – 4,254 permit acresAdjoining projects – ~38,000 acresMany 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.NYSE MKT: URG • TSX: URE14See Disclaimer re Forward-looking Statements and Projections (slide 2)
  15. 15. Preliminary Economic AssessmentApril 30, 2012 PEA* updates resources and economicsExtended life of mine to 8 – 10 yearsMineral resource increase from February 2012 PEA45% Increase in measured and indicated resources42% Increase in inferred resourcesEstimates operating costs at US $16.12/lbLowest quartile of all uranium producersSustaining capital approximately US$23.00/lbFull capital cost recovery US$36.52/lbProject internal rate of return (IRR) at 87%Capital requirement in lowest quartile of all developing uranium productionfacilities*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 geologically to have theeconomic considerations applied to them that would enable them to be categorized as mineral reserves. The estimated mineral recovery used in this PEA is based onboth site-specific laboratory recovery data as well as URE personnel and industry experience at similar facilities. There can be no assurance that recovery at this levelwill be achieved.NYSE MKT: URG • TSX: URE15See Disclaimer re Forward-looking Statements and Projections (slide 2)
  16. 16. Under ConstructionConstruction initiated October 2012Wyoming based contractor hiredNine month estimated build outNine month estimated build-outCommissioning inspection scheduledCapital Requirement (PEA April 2012)Process plant: $18 8MProcess plant: $18.8MInitial production area: $4.7MDisposal well installation: $6.4MInfrastructure: $1.7MDeep Disposal WellStaffed for operationManagement personnelOperations and maintenance personnelConstruction personnelInterior of Ur-Energy’s Header HouseNYSE MKT: URG • TSX: URE16See Disclaimer re Forward-looking Statements and Projections (slide 2)
  17. 17. Lost Creek Construction HighlightsLost Creek Processing Plant Under Construction Installed Vessels and Tanks for Uranium RecoveryD illi A ti iti t Mi U it 1NYSE MKT: URG • TSX: UREDrilling Activities at Mine Unit 117Processing Plant Interior Construction
  18. 18. Pathfinder Mines CorporationDefinitive purchase agreementPMC holds Ur-Energy’s next production centerPATHFINDERPATHFINDER p gwith AREVA signed in July 2012Three major assets1 Projects: Shirley Basin &PATHFINDERPATHFINDER1. Projects: Shirley Basin &Lucky Mc2. PMC’s extensive uraniumexploration database3. Licensed ISR by-productdisposal facilityPurchase price: US $13.25 million, 10% down payment, balancePurchase price: US $13.25 million, 10% down payment, balancedue on closing, no other monetary obligations prior to closingTransaction expected to close in first half of 2013NYSE MKT: URG • TSX: URE18See Disclaimer re Forward-looking Statements and Projections (slide 2)
  19. 19. Pathfinder ProjectsBrownfield properties, existing infrastructure, permits & licensesAwaiting WDEQ and NRC license transfersLow holding costsResources located on patented mining claims and state leasesShirley BasinyHistoric estimate of resources: >10 million lbs U3O8*High grade roll front deposit: average 0.21% U3O8Uranium resources can be converted to NI 43-101 compliantShallow ISR amenable mineralizationShallow, ISR amenable mineralizationLucky Mc – Gas HillsHistoric estimate of resources: 4.7 million lbs U3O8*Uranium resources can be converted to NI 43 101 compliantUranium resources can be converted to NI 43-101 compliantStrategic opportunities with nearby developers*Ur-Energy is not treating the historic reports as current mineral resources or mineral reserves, because a Qualified Person has not yet conducted sufficient work toclassify the estimates as such.NYSE MKT: URG • TSX: URE19See Disclaimer re Forward-looking Statements and Projections (slide 2)
  20. 20. Pathfinder AssetsHistoric US uranium exploration databaseHundreds of project descriptions located in twenty three statesHundreds of project descriptions located in twenty-three statesExploration reports dating back as far back as the 1960sMore than 15,000 drill logsTechnical and economic evaluationsTechnical and economic evaluationsISR by-product disposal facilityFully licensed for operationMultiple contracts in placeMultiple contracts in-placeCash generating – money savingScarce asset – 1 of 4 commercial facilities in the USNYSE MKT: URG • TSX: URE20See Disclaimer re Forward-looking Statements and Projections (slide 2)
  21. 21. Lost Soldier – 12.2M M&I lbs U3O8Can be licensed with NRC as amendment to Lost Creek licenseNI 43-101 resource | July 2006Measured & Indicated: 12.2 Mlbs eU3O8(in 9.4 Mt @ 0.065%)I f d 1 8 Mlb U OM&I resource average GT of1 1 (17 2 ft @ 0 065% U O )Inferred: 1.8 Mlbs eU3O8(in1.6 Mt @ 0.055%)1.1 (17.2 ft @ 0.065% U3O8)Shallow: 240 feet deepOver 3 700 drill holes defineOver 3,700 drill holes definedeposit(Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, 2006 - Posted on SEDAR)NYSE MKT: URG • TSX: URE21See Disclaimer re Forward-looking Statements and Projections (slide 2)
  22. 22. Screech Lake, Thelon Basin, NWTMegaTEM SurveyScreechLake0 4KilometersCompleted audio-magnetotelluric geophysical survey, and soil gashydrocarbon and enzyme leach soil geochemistry analyses to betterdefine drill targetsNYSE MKT: URG • TSX: URE22See Disclaimer re Forward-looking Statements and Projections (slide 2)
  23. 23. Ur-Energy – Right Now!Fully licensed pre-production project at Lost CreekLow-cost uranium production centerProduction commencing in third quarter 2013Production commencing in third quarter 2013Growth oriented technical & management teamAgreement to acquire Pathfinder MinesAgreement to acquire Pathfinder MinesApprox.15M lbs of estimated historic resources*Multiple long-term uranium sales agreementsReducing Company exposure to volatile marketplaceReducing Company exposure to volatile marketplaceUS$10.1 million raised for ongoing Lost Creek ConstructionSale of contracted future product deliveries 3-25-13Bridge loan 5-13-13Bridge loan 5 13 13Re-rating likely as Ur-Energy nears production*Ur-Energy is not treating the historic reports as current mineral resources or mineral reserves, because a Qualified Person has not yet conducted sufficient work toclassify the estimates as such.NYSE MKT: URG • TSX: URE23See Disclaimer re Forward-looking Statements and Projections (slide 2)
  24. 24. Re-Rating PotentialStage EV/LbProducers $4.10URG $1.72Source: Dundee (May 2, 2013)As Ur-Energyd tiURG Upside vs. Producersnears production,re-rating is likely2X (+$2.40/Lb)NYSE MKT: URG • TSX: URE24See Disclaimer re Forward-looking Statements and Projections (slide 2)
  25. 25. Ur-Energy’s Production StrategyUr-Energy’s strategyProduction potential resourcesEconomically recoverable resourcesNot simply “Pounds in the Ground”US mines produce~4M lbs of uranium/yrUS utilities consumeUr-EnergyUS utilities consume~55M lbs of uranium/yrUS estimated 2014 production1.002.00Lbs/yearUr EnergyEstimated ProductionShirley Basin~5M lbs/yrURG estimated 2014 ~1M lbs/yr20% of US market share0.002013 2014 2015 2016 2017MillionYearLost CreekNYSE MKT: URG • TSX: URE25See Disclaimer re Forward-looking Statements and Projections (slide 2)
  26. 26. 2013 Objectives & News Flow1. Advance Lost Creek to productionComplete constructionExpand NI 43-101 compliant resources2. Pathfinder MinesClose transactionTransition to operating and regulatory activitiesBring resources to NI 43-101 compliance3. Corporate finance – positive cash positionAnticipated issuance of Wyoming Industrial Revenue BondUS$20.0 million RMBAH Secured Loan Facility4. Growth in production profileIdentify project prioritiesAct on prioritiesNYSE MKT: URG • TSX: URE26See Disclaimer re Forward-looking Statements and Projections (slide 2)
  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 OfficeUr Energy Corporate Office10758 W. Centennial Rd., Suite 200Littleton, CO 80127 USABy Phone:Office 720.981.4588Toll-Free 866.981.4588Fax 720.981.5643By E-mail:By E mail:wayne.heili@ur-energy.comjeff.klenda@ur-energy.comrich.boberg@ur-energy.comNYSE MKT: URG • TSX: URE27

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