Ur-Energy has an impressive historical resource base of more than 88 million pounds of uranium (U3O8), and, with its venture partners, Ur-Energy is actively exploring prospective properties in the heart of Canada’s world class uranium districts and in the US.
       Ur-Energy’s focus in Canada has been unconformity deposits in Proterozoic Basins. Unconformity uranium deposits are the most attractive exploration targets on the planet. The Athabasca Basin contains 65% of known future capacity of global uranium production. The Hornby Bay, Thelon & Baker Lake Basins are equally prospective. Ur-Energy has holdings in the Thelon Basin awaiting review by the Minister but the Baker Lake Basin’s 2007 geophysics and prospecting revealed very positive results. Ur-Energy will maintain a 5% overriding royalty on the project in Hornby Bay ventured with Triex Minerals.
       In the US, Ur-Energy’s 14 uranium properties in the state of Wyoming cover more than 60,000 acres in an area where mining companies – Cameco and Areva – have operated successfully for years.
       Uranium was first discovered in Wyoming in 1918 and historically has produced over 200 million pounds of uranium. Today, the state hosts the largest uranium resource in the US and is the nation’s leading producer of uranium ore. Only 8% of US requirements are met by domestic production while 104 US nuclear power plants supply 20% of the national electricity demand, requiring 50 million pounds of uranium each year.
       Wyoming, one of the most pro-mining jurisdictions in the US, is a leader in the use of in-situ recovery (ISR) mining techniques. ISR is considered the safest and most environmentally friendly method to extract uranium from sandstone rock. The technique, also widely used in Australia and Kazakhstan, involves injection of oxygenated and carbonated water into the ground to dissolve the uranium into a solution that can then be pumped back to the surface for processing..

       Uranium, held in suspension in naturally flowing groundwater, is deposited in the sandstone when oxygen is depleted through natural chemical reactions with surrounding minerals and organic materials. ISR simply reverses this natural process and, after mining is completed, returns the aquifer to its pre-mining state, if not better.
       ISR production wellfields are installed within an ore deposit in a series of patterns comprised of a central production well surrounded by injection wells. The production wells pump at a flow rate greater than the injection wells to control fluid flow. Groundwater contained originally in the orebody is produced from the deposit and is oxygenated prior to being re-injected into the deposit. The continuously re-injected oxygenated groundwater dissolves the uranium in the deposit and the production wells pump the uranium-bearing solution out of the ground and to a processing facility where the uranium is removed from the solution in an ion exchange column. When the resin beads in the ion exchange column are loaded with uranium they are stripped putting the uranium back into solution which is then treated to precipitate the uranium as yellowcake slurry which is then dried to become uranium “yellowcake” suitable for sale.
       “The sandstone deposits in the Wyoming region are very suitable for alkaline-type in-situ mining, and it is a lot easier to clean up and restore the aquifer afterwards. ISR mining is basically a water plant. You are dealing with pipes, water, oxygen, bicarbonate of soda and reverse osmosis.” says President and Chief Executive Officer Bill Boberg.

       Uranium was discovered at Lost Creek in Wyoming’s Great Divide Basin in the 1970s. Detailed evaluation of the extensive historic database led to NI 43-101 compliant measured and indicated resources of 9.8 million pounds of U3O8 and inferred resources of 1.1 million pounds of U3O8. The company believes there is the clear potential to further increase resource levels with additional exploration.
       During 2007 Ur-Energy completed environmental baseline studies and drilled 255 holes at Lost Creek totaling 156,422 feet; of which, 195 were delineation holes which successfully defined most of the first production unit. The remaining portion will be delineated in the first stages of the 2008 drilling program. In the interim, preliminary design of the first production wellfield will be initiated. Along with the delineation holes, 58 pump-test and baseline monitor wells were installed within the mineral trend. These wells will monitor the deposit throughout the life of the mine.
       Permit applications were submitted to the Nuclear Regulatory Commission and Wyoming Department of Environmental Quality in October and December respectively of this year. Once the permit is received from the NRC, the wellfield installation will proceed with the drilling of 12 to 15 5-spot patterns each month. A total of 150 to 180 5-spot patterns will be in each individual mine unit. The processing plant will be built out in tandem with the wellfield installation. Parts will be ordered during 2008 prior to receipt of the license. The plant will be constructed in two phases at a buildout cost of approximately US$35 million and when completed will have the capacity to produce 2 million pounds of uranium a year at an operating cost of approximately US$25 a pound.
       Once Lost Creek is in operation, Ur-Energy will look towards developing production at its nearby Lost Soldier property which has NI 43-101 compliant measured and indicated resources of 12.2 million pounds U3O8 with additional inferred resources of 1.9 million pounds U3O8. .

       The reasons behind Ur-Energy’s evident success are not hard to understand. Yes, the company is swiftly approaching the ranks of uranium producers. It also has an impressive portfolio of exploration properties such that it has developed a long-term production strategy and intends to bring new properties into production every 2-3 years.
       But even more importantly, Ur-Energy is led by a team of highly experienced managers. This is truly a world-class team that has quickly established Ur-Energy as a junior mining company with virtually unmatched technical depth, exploration potential and near-term production revenues. As a low-cost uranium producer, Ur-Energy’s downside exposure to spot uranium prices will be minimal. Uranium market fundamentals offer Ur-Energy investors a bright outlook. Worldwide, there are 439 operable nuclear plants in 30 countries, with 33 more under construction and an additional 316 either planned or proposed. Global annual uranium production is less than 110 million pounds while annual requirements are now more than 170 million pounds. Reactor demand for uranium is expected to grow 21%–41% by 2020. At the same time, uranium yellowcake production has declined for the last three years with production at the top 12 mines down by 9% and worldwide production by 5%.
       All of this bodes well for Ur-Energy, as it nears production in Wyoming and is poised to begin aggressive exploration on its promising properties in Canada.
       “The global market is robust,” says President and CEO Bill Boberg, who anticipates a market re-rating of the company’s stock. “We believe Ur-Energy is well positioned to benefit from these market conditions. The true value of Ur-Energy is becoming more apparent to everyone as we move closer to production.”