Ur-Energy Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Change in Accounting Policy

Change in Accounting Policy

12 Months Ended

Dec. 31, 2013

Adjustments And Restated Amounts [Abstract]

Change in Accounting Policy

During the year ended December 31, 2013, the Company constructed and commenced operations at its first in-situ recovery mine at the Lost Creek project in Wyoming. The Company has established the existence of mineralized materials at the Lost Creek project, but because of the unique nature of in-situ recovery mines, the Company has not established, and has no plans to establish the existence of proven and probable reserves at this project.

The Company has regularly monitored practices followed by peer companies in the industry. As a result of this, the Company has changed its accounting policy with respect to the nature of items that qualify for capitalization for in-situ uranium mining operations to align its policy to the accounting treatment that has been established as best practice for these types of mining operations.

The specific costs affected by this change are those associated with the development of the well field which, during 2012 and 2013, was being constructed as a part of the Lost Creek project. The development of this well field includes production and monitor well drilling and completion, piping within the well field and to the processing facility, header houses used to monitor production and disposal wells associated with the operation of the mine. These costs are now expensed when incurred.

During the year ended December 31, 2012, a total of $4.5 million of such expenditures were capitalized as part of construction in progress within capital assets. Accordingly, the comparative year financial statements have been restated to show the impact of this change in accounting policy and reflect this $4.5 million as development expense.

The following tables reflect the adjustments and restated amounts. The original balances have been restated from Canadian dollars to US$ as described in note 24.

Consolidated Balance Sheet

	December 31,2012
	As reported	Adjustment	As restated

Assets
Capital assets	16,244	(4,488)	11,756
Total assets	73,971	(4,488)	69,483

Shareholders' equity
Accumulated other comprehensive loss	9,682	(13)	9,669
Deficit	(114,202)	(4,475)	(118,677)
Total shareholders' equity	70,125	(4,488)	65,637
Total liabilities and shareholders' equity	73,971	(4,488)	69,483

Consolidated Statement of Operations and Other Comprehensive Loss

	December 31,2012
			As
	As reported	Adjustment	restated

Development expense	(4,504)	(4,475)	(8,979)
Net loss from operations	(13,896)	(4,475)	(18,371)
Net loss	(13,083)	(4,475)	(17,558)

Net loss	(13,083)	(4,475)	(17,558)
Cumulative Translation Adjustment	1,458	(13)	1,445
Other comprehensive loss	(11,625)	(4,488)	(16,113)

Consolidated Statement of Changes in Shareholders’ Equity

	December 31,2012
			As
	As reported	Adjustment	restated
Net loss and comprehensive loss	(11,625)	(4,488)	(16,113)
Balance, December 31, 2013	70,125	(4,488)	65,637

Consolidated Statement of Changes in Cash Flow

	December 31,2012
			As
	As reported	Adjustment	restated

Net loss for the year	(13,083)	(4,475)	(17,558)
Accounts payable and accrued liabilities	11	604	615
Cash used in operations	(10,851)	(3,871)	(14,722)

Purchase of capital assets	(10,842)	3,884	(6,958)
Cash used for investment	(9,893)	3,884	(6,009)