Operational Update And Progress Report On R&D Activities In Wyoming

LITTLETON, CO - Ur-Energy Inc. reported on the ongoing drilling and construction program at Lost Creek and to report progress on research and development (R&D) activities. Well installation in Lost Creek's Header House (HH) 2-4 is expected to be complete this month. Crews are also performing post-well-installation activities within the HH2-4 production area including well mechanical integrity tests, completion zone development and backfilling/leveling of drill pits required during well installation. This phase is expected to be complete in mid-May 2022. Following completion of the well work for HH2-4, delineation (definition) drilling will resume for HHs 2-6, 2-7 and 2-8. Delineation drilling for HH2-5 is already complete.

Surface component fabrication for HH 2-4 is in progress. The building and metering piping has been fabricated. All materials for HH 2-4 are onsite with the exception of downhole pumps, which are scheduled to arrive prior to completion of the associated infrastructure. Surface construction will entail trenching and installation of pipelines, flowlines and electrical wiring followed by installation of HH2-4 with all its internal data, monitoring and safety systems. Finally, the pumps and insulating wellhead covers will be installed prior to groundcover seeding of the production area. HH 2-4 is expected to be ready for production in 2022 Q3. With advance preparations and the likelihood of supply chain delays in mind, the Company is pre-ordering and purchasing well installation materials for additional header houses. Construction materials have been ordered through HH 2-5 and long-lead items have been ordered for HH 2-6.

CEO, John Cash, said "Given recent geopolitical events as well as legislation proposed in Congress, uncertainty is increasing with respect to continued secure supplies of uranium. Although no contracts have been reached at this time, we are pursuing discussions with several domestic nuclear utilities concerning off-take sales arrangements. Particularly in light of the rapidly changing market, we are pleased to report the progress of our advance preparations at Lost Creek, which will accelerate our ability to quickly ramp-up. In addition to the wellfield drilling and construction begun in Q4, we have taken additional steps in Q1 to purchase materials for wellfield construction with a goal of having production-ready header houses when a ‘go' decision is made. We will continue to monitor supply chain issues and developments in the uranium market to remain ahead of possible production demands.

Wellfield construction and development is not the only ongoing work toward ramp-up. Staff are actively pursuing further innovations for Lost Creek and beyond. Ur-Energy prides itself in leading the industry on technical and permitting matters such as water treatment, engineering design of ion exchange vessels, well abandonment methods, and aquifer exemptions. By its nature, R&D is difficult and the results are never certain, but the Company believes we must continue to advance technology if we wish to become more cost competitive on a global scale, and we are advancing several such projects. To date, costs of the R&D efforts have not been significant. We are pleased to provide an update on two of the more advanced and promising R&D projects."