Ur-Energy Provides Production and Construction Updates for 2025 Q1

Rhea-AI Summary

Ur-Energy (URG) has released its Q1 2025 operational updates for Lost Creek and Shirley Basin projects. At Lost Creek, the company achieved production of 83,066 pounds U3O8 and shipped 106,301 pounds. Current inventory includes 29,700 pounds in-process, 10,772 pounds drummed at site, and 368,540 pounds at conversion facility.

Wellfield flow rates increased 44% since March 2025, now exceeding 2,700 gallons per minute with 19 contract drill rigs. The annualized production rate averaged over 400,000 pounds, approaching the 2025 customer commitment of 440,000 pounds plus a 250,000-pound loan repayment.

At Shirley Basin, construction remains on schedule for early 2026 startup. Key completed milestones include road upgrades, monitor well installation, building refurbishment, and infrastructure development. The company has hired senior management and construction staff, with additional recruiting ongoing.

A recent Executive Order by President Trump has initiated a Section 232 investigation into critical minerals and uranium imports, with potential implications for domestic producers like Ur-Energy.

Positive

• 44% increase in wellfield flow rate since March 2025
• Recovery rates at processing plant reached design levels
• Improved safety performance with zero recordable incidents in 2025
• Shirley Basin construction on schedule and under budget through building refurbishment
• Strong inventory position with 368,540 pounds at conversion facility

Negative

• Current production rate still below 2025 delivery commitments
• 250,000-pound uranium loan repayment obligation pending
• Plant equipment still requires upgrades for optimal performance

Insights

Mining Operations Analyst

Ur-Energy shows strong operational progress with 44% flow rate increase, improving safety records, and on-track Shirley Basin development for 2026 production.

Ur-Energy's Q1 2025 update reveals substantial operational improvements at its Lost Creek facility, with wellfield flow rates increasing 44% since early March to over 2,700 gallons per minute. This is translating directly to production, with recent annualized rates exceeding 400,000 pounds of U3O8 and continuing to trend upward. The company shipped 106,301 pounds during Q1 while maintaining significant inventory positions both at Lost Creek and their conversion facility.

The technical improvements in recovery rates are particularly noteworthy. The elution circuit optimizations have reduced tail grades to below three milligrams per liter, while both filter presses and rotary vacuum dryers are now operating at design specifications. These operational enhancements reflect growing workforce expertise and improved employee retention – critical factors in the specialized uranium mining sector.

Production capacity appears well-aligned with the company's 2025 delivery commitments of 440,000 pounds plus potential repayment of a 250,000-pound loan. The recent production metrics suggest Ur-Energy is positioning to meet these obligations, representing approximately $52.3 million in potential revenue at current spot prices.

The safety performance improvements (zero recordable incidents in 2025) shouldn't be overlooked, as they typically correlate with operational stability and reduced regulatory scrutiny – both essential for consistent production in this highly regulated industry.

This update represents significant progress in Ur-Energy's transformation from development-stage to established producer in the domestic uranium sector, with steady production improvements indicating they've overcome the initial operational challenges that often plague ISR uranium facilities during ramp-up.

Energy Market Strategist

Ur-Energy's increasing production and Shirley Basin development position it strategically amid heightened uranium market demand and potential Section 232 protections.

Ur-Energy's operational updates reveal a strategically timed expansion in domestic uranium production capacity. The company is executing a two-pronged approach: optimizing the existing Lost Creek operation while simultaneously developing Shirley Basin for 2026 production. This positions Ur-Energy to capitalize on growing nuclear fuel demand amid global energy security concerns.

The Shirley Basin development timeline aligns perfectly with anticipated supply shortfalls in the uranium market. By refurbishing existing infrastructure rather than building new facilities, Ur-Energy has achieved multi-million dollar capital savings while maintaining their development schedule – a prudent approach in the capital-intensive uranium sector.

What's particularly significant is the potential impact of the recently announced Section 232 investigation into uranium imports. As one of the few active U.S. uranium producers, Ur-Energy would be exceptionally well-positioned if this investigation leads to protective measures for domestic production. Historical precedent suggests Section 232 investigations can result in quotas, tariffs, or other market interventions that typically benefit domestic producers substantially.

The company's increasing inventory position (368,540 pounds at conversion facilities) gives them optionality in a rising price environment. They can fulfill delivery commitments while potentially selling excess production into what many analysts predict will be a strengthening spot market.

The integration of drilling, construction, and processing improvements demonstrates sophisticated operational management. The increased wellfield flow rates coupled with improved recovery rates indicates the company has successfully navigated the technical challenges that often plague in-situ recovery operations during their initial production phases.

Overall, Ur-Energy appears well-positioned in an increasingly favorable market environment for U.S. uranium producers.

LITTLETON, CO / ACCESS Newswire / April 17, 2025 / Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") is pleased to provide the following updates for 2025Q1 from Lost Creek and Shirley Basin.

Lost Creek Production

During 2025 Q1, we dried and packaged 83,066 pounds and shipped 106,301 pounds U₃O₈. At quarter end, our in-process inventory at Lost Creek was approximately 29,700 pounds, our drummed inventory at Lost Creek was 10,772 pounds, and our finished inventory at the conversion facility was 368,540 pounds. Our next shipment of product is scheduled for next week and we currently have 57 drums of product on the ground at Lost Creek.

We are pleased to report that the wellfield flow rate has increased by 44% since the beginning of March 2025 and is now routinely over 2,700 gallons per minute. Additional flow increases are expected throughout the summer as our current fleet of 19 contract drill rigs and Company construction staff bring on additional header houses and enhance flow in existing wells through routine maintenance and improvements. Head grade remains on target and our annualized production rate over the past week averaged over 400,000 pounds and remains on a positive trend. For context, our 2025 delivery commitment to our customers is 440,000 pounds of U₃O₈ and the repayment of a 250,000-pound U₃O₈ loan in the form of physical pounds, although repayment of this loan may be deferred upon agreement with the lender. We expect production rates to steadily increase throughout the summer.

The recovery rate in the processing plant has reached design levels as management of the elution circuit has improved, resulting in tail grade on the ion exchange columns commonly being less than three milligrams per liter. The elution and precipitation circuits are now functioning as designed. Both filter presses are operational, and we plan to upgrade the auger in each of the presses in early May, which should further improve throughput. Both rotary vacuum dryers are now operating and performing as designed.

Our safety performance has improved over the past several months with no recordable injury or illness incidents occurring in 2025. Implementation of a behavioral based safety program to proactively address and track potential safety issues has resulted in an improved safety culture and has increased employee participation in Company safety initiatives.

The recent improvements in performance and safety are attributable to several factors of which we believe the most important are growing employee skills and confidence and achieving higher employee retention rates. Our increased number of drill rigs together with mild winter conditions have also contributed to increased output.

Our objectives for Lost Creek for the remainder of 2025 are to continue to safely ramp up the wellfield flow rate and improve plant efficiencies by focusing on training, employee retention, and improved maintenance.

Shirley Basin Construction

Construction at our fully permitted Shirley Basin Project is on target and we continue to estimate mine startup by early 2026. We have hired many of our senior site management and 10 construction staff, who are already directly involved with facility construction. Training of new staff is ongoing, including certain training being conducted at Lost Creek. We have hired several additional professional staff who will join the Shirley Basin team in Q2. Recruiting for operational staff, including remaining managers, will be ongoing through the summer.

To date, the following construction activities have been completed:

• Upgraded the existing road to an all-weather surface;

• Installed and completed ~125 monitor wells for Mine Unit 1;

• Refurbished the existing warehouse, construction bay and maintenance bay. We originally planned to construct new buildings but saved several million dollars by refurbishing existing buildings;

• Installed and furnished modular offices for these buildings;

• Installed power between the Company substation and the site for the satellite plant enclosure;

• Initiated dirt work for the satellite plant foundation;

• Installed communications and security systems;

• Installed the septic system for the satellite plant enclosure; and

• Advanced the construction of the ion exchange vessels, which is well underway in Casper with delivery expected this fall.

Before we initiate production at Shirley Basin, the Wyoming Uranium Recovery Program will perform a pre-operations inspection. To improve the efficiency of the inspection and operational approvals, we have begun to assemble Standard Operating Procedures and permitting documents for agency review.

In 2025, we plan to:

• Complete the upgrade the Company-owned electrical substation;

• Install the first header house in Mine Unit 1. Two drill rigs were mobilized to the project on April 14 from Lost Creek. We plan to add four more rigs in Q2. Relatively few drill rigs are required for Shirley Basin because dense historic drilling largely diminishes the need for additional exploration or delineation drilling;

• Build the relatively small satellite plant enclosure, which will house the ion exchange and wastewater management systems;

• Construct additional header houses in our Casper shop;

• Install and furnish modular offices for the satellite plant enclosure; and

• Install two evaporation ponds.

We are excited to bring Shirley Basin, a prolific historic uranium district and the birthplace of in situ uranium mining in 1963, back into production.

Finally, we want to briefly mention President Trump's recent Executive Order that directed the U.S. Department of Commerce to start a national security probe under Section 232 of the Trade Expansion Act of 1962 into the impact of imports of critical minerals and uranium. The investigation is ordered to be completed within 180 days when a final report with recommendations is submitted to the President. The impact of the investigation and subsequent corrective actions, if any, are unknown at this time but could have a positive impact on Ur-Energy as one of the largest domestic uranium producers in the U.S.

About Ur-Energy

Ur-Energy is a uranium mining company operating the Lost Creek in situ recovery uranium facility in south-central Wyoming. We have produced and packaged approximately 2.9 million pounds U₃O₈ from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, the Company's second in situ recovery uranium facility in Wyoming and is advancing Shirley Basin construction and development following the March 2024 ‘go' decision for the mine. We await the remaining regulatory authorization for the expansion of Lost Creek. Ur‑Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States. The primary trading market for Ur‑Energy's common shares is on the NYSE American under the symbol "URG." Ur‑Energy's common shares also trade on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado and its registered office is in Ottawa, Ontario.

FOR FURTHER INFORMATION, PLEASE CONTACT

John W. Cash, Chairman, CEO & President
720-981-4588, ext. 303
John.Cash@Ur-Energy.com

Cautionary Note Regarding Forward-Looking Information

This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., ability to continue to ramp-up production at Lost Creek, including addressing remaining and/or future operational, maintenance, and staffing issues; our ability to maintain the improved production rates recently achieved, and continue to grow our production rates; our ability to deliver into our contractual commitments in 2025 including the repayment of the physical inventory loan; whether our improved safety records will be sustained; timing and ability to complete build out of Shirley Basin as currently projected, including planned wellfield development, site construction, and purchasing as well as site staff and management hiring and training; our ability to facilitate an efficient and effective operations inspection and approval by regulators to commence operations at Shirley Basin; and how the Section 232 investigation and other plans of the Trump administration, if and when concluded, may affect our industry and our business) and 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. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "estimates," "intends," "anticipates," "does not anticipate," or "believes," or variations of the foregoing, or statements that certain actions, events or results "may," "could," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of ore which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described in the public filings made by the Company at www.sedarplus.ca and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.

SOURCE: Ur-Energy Inc.

View the original press release on ACCESS Newswire

FAQ

What is Ur-Energy's (URG) current uranium production rate at Lost Creek?

Lost Creek's annualized production rate averaged over 400,000 pounds U3O8 in the past week, with wellfield flow rates exceeding 2,700 gallons per minute.

How much uranium inventory does URG currently hold?

URG holds 29,700 pounds in-process inventory, 10,772 pounds drummed at Lost Creek, and 368,540 pounds at the conversion facility.

When will URG's Shirley Basin uranium project begin production?

Shirley Basin is scheduled to begin production by early 2026, with construction currently on target.

What are URG's uranium delivery commitments for 2025?

URG has commitments to deliver 440,000 pounds of U3O8 to customers and repay a 250,000-pound U3O8 loan in 2025.

How will the Section 232 investigation affect URG's uranium operations?

The impact is unknown, but as one of the largest domestic uranium producers, URG could benefit from any measures supporting U.S. uranium production.