Executive Summary / Key Takeaways

• Ur-Energy ($URG) is strategically positioned to capitalize on the burgeoning demand for carbon-free nuclear energy, leveraging its established in-situ recovery (ISR) operations at Lost Creek and the imminent production at Shirley Basin. The company's focus on producible pounds and a robust contract book underpins its investment thesis.
• The company is actively ramping up production at Lost Creek, targeting increased output and operational efficiencies, while simultaneously advancing the construction of a satellite facility at the fully permitted Shirley Basin Project, aiming for initial production in Q1 2026.
• Despite recent quarterly losses driven by higher-cost non-produced uranium sales, Ur-Energy maintains a strong liquidity position, having become debt-free in Q1 2024, and is committed to disciplined capital allocation for growth and exploration.
• Ur-Energy's ISR technology provides a competitive advantage through lower operating costs, higher recovery rates, and a minimal environmental footprint, differentiating it from conventional miners and positioning it favorably amidst increasing demand for sustainably sourced uranium.
• The broader uranium market is experiencing significant tailwinds from global nuclear energy expansion, U.S. government support for domestic supply, and surging electricity demand from AI and big data, creating a compelling long-term outlook for uranium producers like Ur-Energy.

Setting the Scene: Industry Landscape and Ur-Energy's Foundational Strength

Ur-Energy Inc. (NYSE American:URG) stands as a key player in the revitalized U.S. uranium mining sector, a critical component of the global shift towards carbon-free energy. Incorporated in 2004 and commencing production at its flagship Lost Creek Project in Wyoming in 2013, Ur-Energy has carved out a niche as an in-situ recovery (ISR) uranium miner. This method, which involves extracting uranium through water wells without extensive excavation, offers significant advantages in terms of cost efficiency and environmental impact. The company's journey, marked by strategic acquisitions like NFU Wyoming, LLC (Lost Creek) in 2005 and Pathfinder Mines Corporation (Shirley Basin) in 2013, has consistently focused on developing high-quality, producible assets.

The global nuclear energy landscape is experiencing an unprecedented resurgence. Approximately 440 nuclear reactors are currently operational worldwide, with an additional 60 under construction, 92 on order, and 343 proposed. This expansion is driven by a dual imperative: the urgent need for carbon-free electricity to combat climate change and the growing demand for energy security in an increasingly volatile geopolitical environment. The World Nuclear Association projects global uranium demand to surge from 171 million pounds in 2023 to 338 million pounds by 2040, a massive increase that current mining supply is struggling to meet. Adding to this demand is the burgeoning electricity consumption from artificial intelligence and big data centers, which exhibit a strong preference for reliable, carbon-free nuclear power. Goldman Sachs (GS) estimates global data center demand will grow 160% by 2030, potentially accounting for 8% of total U.S. electricity demand.

Against this backdrop, the U.S. government has demonstrated robust, bipartisan support for the domestic nuclear industry. Recent initiatives include the Trump Administration's Executive Orders in May 2025 aimed at quadrupling U.S. nuclear energy capacity by 2050 and the Department of Energy's (DOE) programs favoring domestic low-enriched uranium (LEU) and high-assay, low-enriched uranium (HALEU) supply. Furthermore, a unanimous Congressional ban on Russian LEU imports, awaiting presidential signature, underscores the nation's commitment to reducing reliance on foreign adversaries for critical fuel. This policy shift, along with the ongoing Section 232 national security probe into uranium imports, is expected to create a more favorable environment for domestic producers like Ur-Energy.

Technological Differentiation and Competitive Moat

Ur-Energy's core competitive advantage lies in its in-situ recovery (ISR) technology. This method involves injecting a lixiviant (water with dissolved oxygen and carbon dioxide) into the uranium ore body, dissolving the uranium, and then pumping the uranium-rich solution to the surface for processing. This approach offers several tangible benefits over conventional mining:

• Lower Operating Costs: ISR eliminates the need for extensive earthmoving, significantly reducing labor, fuel, and equipment costs. Historically, Ur-Energy has achieved cash costs as low as $16.27 per pound in 2015 when operating at scale. The company anticipates maintaining relatively low all-in mine site costs of around $34 per pound as it ramps up production.
• Minimal Environmental Footprint: ISR operations result in minimal surface disturbance, with wellheads being the primary visible infrastructure. Post-mining, the land can be reclaimed for unrestricted use, a stark contrast to the long-term impacts of open-pit or underground mines. Ur-Energy is proud that its Lost Creek and Shirley Basin projects, when compared to coal-fired power, will offset approximately 312 million metric tons of CO2, equivalent to removing 67.5 million cars from the road annually.
• High Recovery Rates: Lost Creek has demonstrated exceptional average recovery rates of 90% over 10 years, significantly higher than the U.S. industry average of 60% to 80%. This efficiency translates directly to better resource utilization and improved economics.
• Reduced Royalty Burden: The royalty burden at both Lost Creek and Shirley Basin averages less than 1%, which is considerably lower than many other U.S. projects encumbered with royalties ranging from 3% to 8% or higher.

Ur-Energy is also actively engaged in research and development to further enhance its technological edge. The company has R&D programs for a new well casing and installation technique, with Phase 1 field testing demonstrating a 75% reduction in drill rig time for injection wells. Additionally, an advanced water treatment and filtration system is under development, aiming to reduce wastewater generation and further lighten the environmental footprint. These innovations, while temporarily delayed due to ramp-up activities, are strategically important for reducing future costs, improving operational efficiency, and strengthening the company's competitive moat.

Competitive Landscape and Strategic Positioning

Ur-Energy operates in a uranium market characterized by a limited number of commercial producers and significant geopolitical influences. The company positions itself as a specialized, U.S.-focused producer, a mid-tier player with a strong emphasis on operational execution and cost control.

Compared to larger global players like Cameco Corporation (CCJ), Ur-Energy's U.S.-centric approach offers a focused operational model and potentially faster regulatory navigation within its home market. While Cameco benefits from greater scale, diversified global operations, and established market positioning, Ur-Energy's ISR technology provides a cost-effective alternative, particularly in the U.S. where domestic supply is increasingly valued. Ur-Energy's gross profit margin of -69.89% (TTM) and net profit margin of -201.41% (TTM) reflect its current ramp-up phase and reliance on purchased pounds, contrasting with Cameco's more robust financial performance, which benefits from its larger, more mature operations.

Against U.S.-focused peers like Uranium Energy Corp (UEC) and Energy Fuels (UUUU), Ur-Energy shares the advantage of in-situ recovery methods and a commitment to domestic supply. However, Energy Fuels' diversification into other minerals like rare earth elements may offer greater revenue resilience and potentially more stable cash flow. Ur-Energy's strength lies in its concentrated asset base and proven operational history at Lost Creek, which could allow for more efficient scaling in its core uranium business. UEC's P/E ratio of -62.45 (TTM) and UUUU's P/E ratio of -37.33 (TTM) indicate that these companies, like URG (P/E of -6.06 TTM), are currently unprofitable, highlighting the broader challenges in the uranium mining sector, but also the potential for significant upside as market conditions improve.

The broader industry faces significant supply chain risks, exacerbated by geopolitical tensions. Kazakhstan, a major uranium supplier, and Russia, a dominant processor, exert considerable influence, leading to concerns about a bifurcated East vs. West nuclear supply chain. Ur-Energy's U.S. production offers a critical solution to this supply uncertainty, providing a secure and reliable source for Western utilities. The company's low royalty burden and high recovery rates at Lost Creek further enhance its cost competitiveness, distinguishing it from many projects with higher operational hurdles.

Operational Excellence and Strategic Expansion

Ur-Energy's operational strategy is centered on maximizing output from its Lost Creek Project while bringing the Shirley Basin Project online to diversify production.

At Lost Creek, the company is actively ramping up production, with four new header houses brought online in Mine Unit 2 during 2025, and additional houses expected in Q4 2025 and Q1 2026. Production flow from Mine Unit 2 averaged approximately 2,100 gpm in Q3 2025, with an average production grade of 66 ppm for the quarter and 58 ppm year-to-date. The company processed and dried 93,523 pounds of U3O8 in Q3 2025. Challenges related to incidental wellfield solids, plant systems maintenance, and new staff training have impacted consistency, but management is addressing these through planned wastewater treatment facility installation and enhanced staff training. The company's Casper construction shop is efficiently fabricating header houses for both Lost Creek and Shirley Basin, contributing to cost savings and improved safety.

The Shirley Basin Project, fully permitted and licensed, is gaining momentum with construction activities. Foundation work for the processing building began in August 2025, with nearly 900 of 1,100 total cubic yards of concrete poured. All 11 production ion exchange (IX) columns were delivered in September 2025, and the metal building components for the processing facility are on-site. Installation of production and injection wells in Mine Unit 1 (SBMU1) is ongoing, with monitor wells completed and hydrologic testing underway. The first header house for SBMU1 has been fabricated, and main pipeline construction is progressing on schedule. Ur-Energy anticipates initial production flow and commissioning of the first IX columns in Q1 2026, with ramp-up continuing throughout the year. The company has completed recruitment and hiring for all operational positions at Shirley Basin, with training underway.

Exploration programs are also a key strategic initiative. In Q3 2025, Ur-Energy began exploration at its Lost Soldier project in the Great Divide Basin (GDB), including aquifer test wells to understand local hydrogeology. Following Lost Soldier, drilling will commence at North Hadsell (approximately 50 holes) and then at LC South (120-drill hole program in Q1 2026), aiming to expand the company's mineral resource base.

Financial Performance and Liquidity

Ur-Energy's financial performance in the nine months ended September 30, 2025, reflects its ramp-up phase and strategic decisions regarding inventory management. The company reported U3O8 sales of $16.75 million, a significant increase from $10.79 million in the same period of 2024. Pounds sold also increased to 275,000 from 175,000. However, the U3O8 cost per pound sold rose to $56.22 from $45.82, primarily due to the sale of higher-cost non-produced pounds to fulfill certain orders. This resulted in a U3O8 product profit of $1.29 million for the nine months ended September 30, 2025, down from $2.74 million in the prior year.

The company experienced a gross loss of $1.40 million for the nine months ended September 30, 2025, compared to a profit of $1 million in the same period of 2024. Operating costs increased by $9.48 million to $50.01 million, driven by increased development activities, particularly at Shirley Basin, and higher staffing levels. Net income for the nine months ended September 30, 2025, was $59.32 million, a substantial increase from $33.13 million in 2024, largely influenced by mark-to-market gains on inventory derivative obligations and warrant liabilities.

From a liquidity perspective, Ur-Energy maintains a solid position. As of September 30, 2025, cash and cash equivalents stood at $52.03 million, with total current assets of $76.61 million against current liabilities of $9.76 million, resulting in a strong current ratio of 7.85 (TTM).

The company utilized $24.30 million in operating activities and $14.20 million in investing activities during the nine months ended September 30, 2025, while generating $14.90 million from financing activities, primarily through the sale of 9.98 million common shares for $14.80 million net. Notably, Ur-Energy became debt-free on March 27, 2024, after repaying a $34 million loan from the state of Wyoming.

The company subsequently extended an existing inventory loan and secured a new facility for an additional 150,000 pounds of U3O8 in October 2025, demonstrating active inventory management.

Outlook and Guidance

Ur-Energy's outlook is characterized by a clear roadmap for increased production and strategic market engagement. For 2025, the company projects sales deliveries of 440,000 pounds of U3O8 at an average price of $61.77 per pound, expecting to realize revenues of $27.20 million. These deliveries are under contracts negotiated in 2022 and 2023 when long-term prices were between $43 and $57 per pound.

The Shirley Basin Project is a cornerstone of future growth. Ur-Energy anticipates an additional $19.50 million in construction and capital equipment purchases for the remainder of 2025, bringing the total for the year to approximately $35.60 million. Development costs are projected to reach $13.40 million for 2025, including initial wellfield, plant, and site administration costs. Operations, production ramp-up, and construction of a water treatment system at Shirley Basin are slated to commence in 2026, with initial production flow and commissioning of the first IX columns expected in Q1 2026.

At Lost Creek, management anticipates increasing production rates as operational challenges are resolved, with additional flow increases expected in Mine Unit 2 and new header houses coming online in Q4 2025 and Q1 2026. The company's contracting philosophy prioritizes long-term agreements, increasingly seeking market-related pricing components with strong floors and ceilings to capture upside in a rising market while protecting profitability. With eight multi-year sales agreements anticipating approximately 6 million pounds of U3O8 sales between 2025 and 2033, and significant uncontracted capacity, Ur-Energy is well-positioned to benefit from sustained higher uranium prices.

Risks and Challenges

Despite the compelling outlook, Ur-Energy faces several risks inherent in the uranium mining industry. Commodity price risk remains significant, as uranium prices are subject to fluctuations influenced by global demand, geopolitical events, and regulatory changes. Operational consistency at Lost Creek has been impacted by wellfield solids, plant maintenance, and new staff training, which could affect production targets. Supply chain delays, particularly for industrial instrumentation and electrical equipment, pose a risk to the timely completion and commissioning of Shirley Basin. While manpower issues at Lost Creek are largely overcome, the need for ongoing training for a "very green" workforce presents a continuous management challenge. Furthermore, approximately $62.80 million of the company's cash and cash equivalents were at risk as of September 30, 2025, due to potential financial institution insolvency, highlighting credit risk. Geopolitical events, such as the risk of a bifurcated East vs. West nuclear supply chain, could also introduce volatility and uncertainty.

Conclusion

Ur-Energy stands at a pivotal juncture, poised to significantly expand its role in the domestic uranium supply chain amidst a powerful resurgence in global nuclear energy demand. The company's disciplined approach to ISR mining, proven operational capabilities at Lost Creek, and strategic development of Shirley Basin underscore a compelling investment thesis. With a robust balance sheet, a debt-free status, and a growing portfolio of long-term contracts, Ur-Energy is well-capitalized to execute its growth strategy.

The company's technological advantages in ISR, coupled with its commitment to operational efficiency and strategic exploration, provide a strong competitive foundation. As global energy security concerns intensify and the demand for carbon-free power from sectors like AI accelerates, Ur-Energy's position as a reliable U.S. uranium producer becomes increasingly critical. While operational challenges and market volatility persist, Ur-Energy's clear strategic vision, experienced leadership, and focus on expanding its "pounds in the can" story position it favorably to deliver substantial value to investors in the evolving uranium market.