Shirley Basin

Shirley Basin Mine Site
Shirley Basin, Wyoming

As a part of the Pathfinder acquisition, we now own the Shirley Basin and Lucky Mc mine sites in the Shirley Basin and Gas Hills mining districts of Wyoming, respectively, from which Pathfinder and its predecessors historically produced more than seventy-one million pounds of uranium, primarily from the 1960s through the 1990s. The Shirley Basin project is located in Carbon County, Wyoming, approximately 40 miles south of Casper, Wyoming. Conventional mine operations were suspended by Pathfinder in the 1990s due to low uranium pricing.

Acquired Historic Geologic, Engineering and Operational Data Allowing for Easier Transition to NI 43-101 PEA, Permitting and Operations

Together with property holdings of patented lands, unpatented mining claims, and private leases totaling nearly 3,700 acres (~1,500 hectares) at Shirley Basin, we also acquired all historic geologic, engineering and operational data related to the mine area.

The Company completed its Preliminary Economic Assessment on Shirley Basin January 27, 2015 (the “PEA”). The PEA estimates 8.8 million pounds  Measured and Indicated Uranium Resources. It is estimated that a total of 6.3 million pounds of U3O8 may be produced from the project.

The application for the State permit to mine was filed in 2015, and other applications have been submitted since. All permits, licenses and authorizations are expected to be complete in 2021 H2. Additionally, we have engineering evaluations, designs and studies underway in preparation of the construction and operations at Shirley Basin.

The tailings facility at the Shirley Basin site is one of the few remaining facilities in the United States that is licensed to receive and dispose of byproduct waste material from other in situ uranium mines. We assumed the operation of the byproduct disposal site and have accepted deliveries since 2014 under several contracts.

Cautionary Statement: This Preliminary Economic Assessment is preliminary in nature and includes mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is increased risk and uncertainty to commencing and conducting production without established mineral reserves that may result in economic and technical failure which may adversely impact future profitability. The estimated mineral recovery used in this Preliminary Economic Assessment is based on site-specific laboratory recovery data as well as Ur-Energy personnel and industry experience at similar facilities. There can be no assurance that recovery of mineral resources at this level will be achieved. There is no certainty that the preliminary economic assessment will be realized.

Cautionary Note to U.S. Investors:

The terms “mineral resource,” “measured mineral resource,” and “indicated mineral resource,” as used on this webpage are Canadian mining terms that are defined in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). These Canadian terms are not defined terms under United States Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC by U.S. registered companies. The SEC permits U.S. companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Accordingly, note that information contained on this webpage describing the Company’s “mineral resources” is not directly comparable to information made public by U.S. companies subject to reporting requirements under U.S. securities laws. U.S. investors are urged to consider closely the disclosure in our Annual Report on Form 10-K which may be secured from us, or online at https://www.sec.gov/edgar.shtml.

Mr. John K. Cooper, Ur-Energy Senior Geologist, P.Geo., A qualified person as defined by NI 43-101, has reviewed and approved the technical disclosure contained on this webpage.