October 2011 Ur-Energy Corporate Presentation

Ur-Energy is an Advanced Pre-Production Junior Mining Company

Focused on development of low-cost uranium production properties in the

United States.

Corporate Objectives:· Low Cost U.S. Uranium

Production· Resource Growth· Strategic Opportunities

NYSE Amex: URG TSX: URE

Corporate PresentationOctober 2011

NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE

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 long term effects on the uranium market of events in Japan in 2011 including supply and demand projection; the Company’s timeframe for events leading to and culminating in the commencement of production at Lost Creek; the technical and economic viability of the Lost Creek Project (including the projections contained in the preliminary analysis of economics of the Lost Creek Project); receipt of (and related timing of), Record of Decision from the U.S. Bureau of Land Management, and all other necessary permits related to the Lost Creek Project; the Lost Creek Project will advance to production and the production timeline; production rates, timetables and methods of recovery at the Lost Creek Project; the Company’s procurement and construction plans at the Lost Creek Project; the ability to complete additional favorable uranium sales agreements; the potential of exploration targets on the LC North and LC South and on the Lost Creek Project area outside the current Lost Creek resource area; and the further exploration, development and permitting of exploration projects including Lost Soldier, the exploration properties in Nebraska, and Screech Lake. With regard to discussion of the potential of exploration targets, at LC North, LC South and on the Lost Creek Project outside the current resource area, it should be noted that there has been insufficient exploration yet to define a mineral resource at these exploration targets. Further, it is uncertain if additional exploration will result in the exploration targets being delineated as a mineral resource. 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, regulatory, competitive and other uncertainties and contingencies beyond the control of Ur-Energy Inc. Further, given the nature of the Company's 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 Company's Annual Information Form and Annual Report on Form 40-F, dated March 17, 2011, 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 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 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, SME Registered Member, a Professional Geologist, and Qualified Person as defined by National Instrument 43-101, reviewed the technical information contained in this presentation.

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http://www.sedar.com/

http://www.sec.gov/edgar.shtml


Ur-Energy At A Glance

Advanced Pre-Production Project at Lost Creek, Wyoming

4-Years invested in the regulatory processOne approval remaining

Low-Cost Uranium Production Center that will be Cash-Flow Positive in Current Market

Expanding Resources through Exploration and Acquisition

Low Technical, Political and Regulatory Risk Strategy

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See Disclaimer re Forward-looking Statements and Projections (slide 2)


Ur-Energy’s Market PositionShare Capital & Cash Position

As of 07/27/11Shares Outstanding 103.6MStock Options & RSUs 5.8MFully Diluted 109.4M

Market Cap (10/19/11) $105.69M

Cash (06/30/11) C$31.4MDebt $0

Cash per share as of 06/30/11 ~C$0.30 Share price as of 10/19/11 $1.0252 Week Range $.75 - $3.37Avg. Daily Volume ~760,000(3-mo URE & URG as of 10/19/11)

Geographical Distribution as of 6/30/11

United States ~48% Canada ~38%Other ~14%

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NYSE Amex: URG


Analyst Coverage

United States GVC Capital Mike Shonstrom (Denver, CO) 1 303-321-2392 Rodman & Renshaw Wayne Atwell (New York, NY) 1 212-356-0513

Canada Dundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082 Haywood Securities Geordie Mark (Vancouver, BC) 1 604-697-6112 Jennings Capital Alka Singh (Toronto, ON) 1 416-304-3964 Macquarie Capital 1 514-925-2856 Raymond James Bart Jaworski (Vancouver, BC) 1 604-659-8282 RBC Capital Adam Schatzker (Toronto, ON) 1 416-842-7850

Australia Resource Capital Research Trent Allen (Sydney, NSW) 61 2-9252-9405

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's 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.

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The US Uranium MarketThe US produces ~ 4M lbs of uranium/yr1

The US consumes 55M lbs of uranium/yr1 contributing 20% of US electricity

In 2010, the 10-year forward cumulative unfilled uranium requirement of US utilities was 274M lbs2

Ur-Energy is well positioned to capitalize on this opportunity

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1 – Northwest Mining Association2 – U.S. Energy Information Administration

Chart from U.S . Energy Information Administration


Post-Fukushima Nuclear Remains Positive*

HEU Agreement to expire 2013Provides 13% of world and 45% of US annual supply

63 reactors remain under constructionSix planned to start operation in 201114 planned to start operation in 2012

Russia, China and India represent 50% of new builds and have reaffirmed support for nuclear power

Saudi Arabia & the United Kingdom have announced plans to build 24 new reactors combined

The United States and France are investing billions in nuclear power

October 2011 Nuclear Energy Institute survey shows two-thirds of Americans support nuclear energy

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*According to World Nuclear Association



Growth of Nuclear Will Continue

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Nu

mb

er

of

Reacto

rs

Three Mile Island

Chernobyl

Fukushima13 years, 11.3reactors per year

10 years, 10.2 reactors per year

8 years, 21.9 reactors per year

22 years, 4 reactors per year

Source: World Nuclear Association


Historically, growth of nuclear power continued despite major accidents

Growth expected to continue beyond Fukushima at 10 reactors per year


Supply/Demand Imbalance GrowsHow will supply be able to expand to the extent necessary to meet growing demand

levels in the post Fukushima environment of uncertainty and low prices?

More damage done to uranium supply than uranium demand

HEU Program expires in 2013 with no extension being considered

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Source: UxC Uranium Market Outlook


Experienced Management Team

Board of Directors

Executive 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

(Senior Federal Mediator)

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, Geology & Exploration (Geologist & Geophysicist)Penne A. Goplerud, Corporate Secretary & General Counsel (JD)

* Founding Directors

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Industry Leading TeamHighly Experienced Technical and Management Professionals

93 Years of Direct Uranium Production ExperienceISR operations experience – Nebraska, Texas & Wyoming

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ISR – Low Impact Mining

CAMECO Smith Ranch ISR MinePowder River Basin, Wyoming

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In-Situ Recovery (ISR) Uranium Mining

Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costs

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Ur-Energy’s Wyoming Projects

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Lost Creek Property

Exploration targets within the Lost Creek Project and adjoining projects provide potential of additional resources U3O8

Lost Creek Project – 4,254 acresAdjoining Projects – 29,540 acres

Historic DrillingMultiple roll fronts defined by over 500 drill holes50-60 mineralized holes on LC property with grades similar to Lost Creek resource

Additional drilling of 2000-3000 holes recommended at a cost of US$15M - 20M (~US$7,500/hole)

These exploration targets are conceptual in nature. There has been insufficient exploration to define a mineral resource outside the current Lost Creek resource. It is uncertain if further exploration will result in the new target areas outside the Lost Creek resource being delineated as a mineral resource.

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Lost Creek

Rio Tinto Sweetwater Mill – 3 miles south (NRC Licensed Conventional Uranium Mill on Standby)

NYSE Amex: URG TSX: UREJK


Lost Creek Project – Moving Towards Production

Discovered in the1970s 563 drill holes

Ur- Energy: 2005-present 1,096 drill holes 728,757 ft (222,125 meters) 2011 drilling program not included

NI 43-101 Resource from Preliminary Assessment Lost Creek Property Sweetwater County Wyoming – TREC & Behre Dolbear (March 16, 2011) (posted on SEDAR)

Measured – 2.54 Mt @ 0.052% (2.7 Mlbs eU3O8) Indicated – 2.2 Mt @ 0.060% (2.6 Mlbs eU3O8)Inferred – 0.77 Mt @0.051% (0.8 Mlbs eU3O8)

* Based on grade cutoff of 0.02 percent eU3O8 and a grade x thickness cutoff of 0.3 GT.

Leach Efficiency - 80%Industry Avg. - ~70%(Recovery Rate)

Pump Test Results - >30-50gpmIndustry Avg. - 15gpm(Good Porosity = Cost Savings)

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See Disclaimers (slide 2)


Lost Creek Preliminary Assessment

2011 PA* Confirms Robust Economics

Estimates Operating Costs less than US$20 /lbLowest Quartile of all Uranium Producers

Production Rate: 1M lbs U3O8 per year

Estimates Total Production Cost at US$42.65/lb Includes capital recovery

Project Internal Rate of Return (IRR) at 91%

Pre-Production Capital Costs of Only US$35M Remaining

Lowest Quartile of all developing uranium production facilitiesIncludes 1M lb/yr plant, 2 disposal wells, initial wellfield and 10% contingencyTotal project Capital Cost of US$59M

* NI 43-101 Preliminary Assessment Lost Creek Property Sweetwater County Wyoming – TREC & Behre Dolbear (March 16, 2011)(posted on SEDAR)

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Cautionary Statement: This PA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The estimated mineral recovery used in this PA is based on both 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 level will be achieved.


US$24M in CapEx Completed

Mine Units 1 & 2 DelineatedMU #1 Monitor Well Ring Completed

Plant Engineering Completed

Drilled and Tested Class I UIC Well

Ordered Key Plant EquipmentIon Exchange ColumnsElution columnsFilter presses

Design/Build of Header House Building

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Ur-Energy’s Ion Exchange Columns

Interior of Ur-Energy’s prototype Header House


Lost Creek Infrastructure Advantage

Lost Creek Processing Plant Model = Cost Savings

Expandable Resource BaseNo need for Satellite facilities

Hub & Spoke (multi-Satellite) Model Not Preferred

Permitting IntensiveCapital IntensiveHigher Operating CostsRequires Large Resource BaseAdditional Transportation Cost

Lost Creek Processing Plant

Portion of Lost Creek Wellfield

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See Disclaimer (slide 2)

Common Development RequirementsProduction PermitsOn-site Recovery PlantWastewater Disposal Capacity


Lost Creek Path to Production

Site Permitting Started in 2006

One Remaining Regulatory Approval NeededUS Bureau of Land Management Plan of OperationsEnvironmental review process underwayRecord of Decision anticipated to be complete early summer 2012

Construction 6 – 9 month build-out

First ProductionPlanned for second quarter 2013

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Lost Soldier – 12.2M M&I lbs U3O8

Can be licensed with NRC as amendment to Lost Creek license

M & I resource average 17.2 ft @ 0.065% U3O8

Average 240 feet deep

Leach efficiency 49% - 84%

Over 3700 drill holes define deposit17 monitor/pump test wells installed

NI 43-101 Compliant ResourceMeasured & Indicated (M & I) – 9.4 Mt @ 0.065% (12.2 Mlbs U3O8)Inferred – 1.6 Mt @0.055% (1.8 Mlbs U3O8)

(From Figure 16-2, Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, RPA, July 10, 2006 - posted on SEDAR)

(Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, 2006 - Posted on SEDAR)

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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

MegaTEM Survey

0 4Kilometers

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Screech Lake



Ur-Energy’s Recent Achievements

Granted Licenses and Permits for Lost CreekWyoming DEQ Permit to MineUS NRC LicenseWDEQ Class I UIC Permit (water disposal well)EPA Aquifer ExemptionCounty Development Plan

Signed Initial Long Term Uranium Sales Agreement

Acquisition of Additional Exploration Properties in Western Nebraska

Inclusion in the Russell 3000 and 2000 Indexes

Inclusion in the S&P/TSX SmallCap Index

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Ur-Energy’s Strong Position

Advanced Development ProjectLost Creek Permitting Process Nearing Completion

Low Cost Production = Strong Cash Flow~US$20/lb direct operating costUranium Term Market is above $60/lb

Uranium Friendly Mining Jurisdictions

Experienced Technical & Managerial Team

Strong Balance Sheet C$31.4 Million (06/30/11)

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Future Growth Opportunities

Resource Expansion through ongoing exploration efforts

Increase Minable Resources that will be Accessible to the Lost Creek Processing Plant

Growth in the Production ProfileDevelopment of Currently Held PropertiesAcquisitions of New Properties Strategic Alliances

Monetizing Historic Databases

Re-Rating Likely as Ur-Energy nears Production

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Ur-Energy – Right Now!

Advanced Pre-Production Project at Lost CreekLow-Cost Uranium Production Center that will be Cash-Flow Positive in Today’s MarketInitial Production Rate of 1M lbs/year

Technical, Political and Regulatory Certainty

Expanding Resources through Exploration and Acquisition

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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 Public Relations

By Mail: Ur-Energy Corporate Office10758 W. Centennial Rd., Ste. 200Littleton, CO 80127 USA

By Phone: Office (720) 981-4588Toll-Free (866) 981-4588Fax (720) 981-5643

By E-mail: [email protected] [email protected]

[email protected]

NYSE Amex: URG TSX: URE28

October 2011 Ur-Energy Corporate Presentation

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Transcript of October 2011 Ur-Energy Corporate Presentation