LITTLETON, Colo., July 27, 2018 /PRNewswire/ -- Ur-Energy Inc. (NYSE American:URG TSX:URE) ("Ur-Energy" or the "Company") has filed the Company's Form 10-Q for the quarter ended June 30, 2018, with the U.S. Securities and Exchange Commission at www.sec.gov/edgar.shtml and Canadian securities authorities on SEDAR at www.sedar.com.

Ur-Energy Chair and CEO, Jeffrey Klenda said, "In May, our third header house in mine unit two came on line. Initial production results are encouraging and indicate that the new mine unit appears to have similar performance characteristics to our prolific first mine unit. Additionally, we are pleased that the trade action investigation was initiated following the end of the quarter. We look forward to a prompt resolution."

Lost Creek Uranium Production and Sales
Inventory, production and sales figures for the Lost Creek Project are presented in the following tables:




















Production and Production Costs

Unit

2018 Q2

2018 Q1

2017 Q4

2017 Q3

2018 YTD



















Pounds captured

lb

89,209

84,047

67,982

52,812

173,256

Ad valorem and severance tax

$000

$

133

$

179

$

160

$

119

$

312

Wellfield cash cost (1)

$000

$

516

$

671

$

686

$

743

$

1,187

Wellfield non-cash cost (2)

$000

$

400

$

403

$

575

$

730

$

803

Ad valorem and severance tax per pound captured

$/lb

$

1.49

$

2.13

$

2.35

$

2.25

$

1.80

Cash cost per pound captured

$/lb

$

5.78

$

7.98

$

10.09

$

14.07

$

6.85

Non-cash cost per pound captured

$/lb

$

4.48

$

4.79

$

8.44

$

13.82

$

4.63



















Pounds drummed

lb

74,302

79,961

60,461

48,336

154,263

Plant cash cost (3)

$000

$

1,230

$

1,226

$

1,210

$

1,120

$

2,456

Plant non-cash cost (2)

$000

$

493

$

492

$

493

$

494

$

985

Cash cost per pound drummed

$/lb

$

16.57

$

15.33

$

20.01

$

23.17

$

15.92

Non-cash cost per pound drummed

$/lb

$

6.64

$

6.15

$

8.15

$

10.20

$

6.39



















Pounds shipped to conversion facility

lb

74,416

73,515

73,367

36,797

147,931

Distribution cash cost (4)

$000

$

34

$

19

$

48

$

24

$

53

Cash cost per pound shipped

$/lb

$

0.46

$

0.26

$

0.65

$

0.65

$

0.36



















Pounds purchased

lb

100,000

370,000

-

109,000

470,000

Purchase costs

$000

$

2,225

$

9,251

$

-

$

2,196

$

11,476

Cash cost per pound purchased

$/lb

$

22.25

$

25.00

$

-

$

20.15

$

24.42



















Notes:

1

Wellfield cash costs include all wellfield operating costs. Wellfield construction and development costs, which include wellfield drilling, header houses, pipelines, power lines, roads, fences and disposal wells, are treated as development expense and are not included in wellfield operating costs.

2 

Non-cash costs include the amortization of the investment in the mineral property acquisition costs and the depreciation of plant equipment, and the depreciation of their related asset retirement obligation costs. The expenses are calculated on a straight line basis so the expenses are typically constant for each quarter. The cost per pound from these costs will therefore typically vary based on production levels only.

3 

Plant cash costs include all plant operating costs and site overhead costs.

4 

Distribution cash costs include all shipping costs and costs charged by the conversion facility for weighing, sampling, assaying and storing the U3O8 prior to sale.

During the three months ended June 30, 2018, a total of 89,209 pounds of U3O8 were captured within the Lost Creek plant. 74,302 pounds were packaged in drums and 74,416 pounds of the drummed inventory were shipped to the conversion facility. We sold 100,000 pounds of purchased U3O8 during the period.

















Sales and cost of sales

Unit

2018 Q2

2018 Q1

2017 Q4

2017 Q3

2018 YTD



















Pounds sold

lb

100,000

380,000

-

289,000

480,000

U3O8 sales

$000

$

3,790

$

19,663

$

-

$

11,674

$

23,453

Average contract price

$/lb

$

37.90

$

52.50

$

-

$

40.39

$

49.39

Average spot price

$/lb

$

-

$

23.75

$

-

$

-

$

23.75

Average price per pound sold

$/lb

$

37.90

$

51.74

$

-

$

40.39

$

48.86



















U3O8 cost of sales (1)

$000

$

2,225

$

9,758

$

376

$

11,157

$

11,983

Ad valorem and severance tax cost per pound sold

$/lb

$

-

$

2.30

$

-

$

3.15

$

2.30

Cash cost per pound sold

$/lb

$

-

$

31.20

$

-

$

29.11

$

31.20

Non-cash cost per pound sold

$/lb

$

-

$

17.20

$

-

$

17.52

$

17.20

Cost per pound sold - produced

$/lb

$

-

$

50.70

$

-

$

49.78

$

50.70

Cost per pound sold - purchased

$/lb

$

22.25

$

25.00

$

-

$

20.15

$

24.42

  Average cost per pound sold

$/lb

$

22.25

$

25.68

$

-

$

38.61

$

24.96



















U3O8 gross profit

$000

$

1,565

$

9,905

$

(376)

$

517

$

11,470

Gross profit per pound sold

$/lb

$

15.65

$

26.06

$

-

$

1.78

$

23.90

Gross profit margin

%

41.3%

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