Ramp Up At Lost Creek Has Significant Increases In U3O8 Quantities

LITTLETON, CO – Ur-Energy Inc. President, Matthew Gili, said, “The ramp up at Lost Creek continues, with significant increases in the quantities of U3O8 both captured and drummed in the quarter. As mine construction at our Shirley Basin Project progresses, and we commence our 2025 exploration program in the Great Divide Basin, this year is laying the foundation for the next phase of growth for Ur-Energy.”
During Q2 2025, Ur-Energy dried and packaged 112,033 pounds and shipped 105,316 pounds U3O8 to the conversion facility. At quarter end, the in-process and drummed inventory was approximately 55,000 pounds, and our finished inventory at the conversion facility was 315,607 pounds. Subsequent to quarter end, the Company shipped an additional 34,964 pounds U3O8.
Total sales in 2025 are projected at 440,000 pounds of U3O8 at an average price per pound sold of $61.56 and we expect to realize revenues of $27.1 million. The deliveries are under contracts negotiated in 2022 and 2023, when the long-term price was between $43 and $57 per pound. Deliveries for 2025 are committed to two customers for a base amount of 400,000 pounds of U3O8. Under agreements, both buyers elected to flex up the annual base delivery quantity by 10%. Deliveries of 165,000 pounds were made in 2025 Q2 and deliveries of 110,000 pounds and 165,000 pounds are expected to be made in 2025 Q3 and Q4, respectively.
Ur-Energy now has eight multi-year sales agreements in place with major nuclear and utility companies, including Constellation Energy, a leading producer of reliable, emissions-free energy. The annual delivery base amount ranges from 440,000 to 1,300,000 pounds of U3O8 from 2025 through 2033, with potential additional deliveries of 100,000 pounds in 2032 and 2033. The eight agreements total sales of 6.0 million pounds of U₃O₈ with delivery timeline flexibility. The new sales agreement secures the annual sale and delivery of 100,000 pounds of U3O8 per year in 2028, 2029, and 2030. Pricing is set at an escalated fixed price, well above current spot and term prices. Ur-Energy has the sole option to sell up to an additional 100,000 pounds each year at a sales price equal to 99% of the average monthly spot price for the two months preceding the delivery date.
A significant portion of Ur-Energy’s licensed production capacity through 2033 is uncontracted, leaving ample room for additional contracts. The demand for uranium is strong as utilities and other fuel buyers continue to issue requests for proposal. The U.S. Department of Energy low enriched uranium and high-assay low enriched uranium programs present additional opportunities for uranium sales.
The Company continues to advance development and construction at Lost Creek and Shirley Basin projects, positioning for expanded, diversified uranium production and long-term growth. With additional staffing, increased contractors onsite and significant construction and operational activity underway at both mine sites.
At Lost Creek, there are 18 drill rigs operating, which is sufficient for present development requirements and our planned 2025 exploration program in the GDB. Bringing additional header houses online increases overall production capacity. Flow rates are being closely controlled to facilitate all processing activities throughout the mine and plant. It is anticipated that additional and sustained flow increases are coming soon as additional header houses and the operations team continues to enhance flow in existing wells through routine maintenance and improvements.
The Lost Creek processing plant is operating both dryers routinely, and recent circuit upgrades have improved reliability. Head grade remains above expectations. The Company anticipates initiating production from Mine Unit 1, Phase 2 in Q4 2025.
At Shirley Basin, advancement of construction and development activities toward commencement of operations and initiation of ramp-up of production in 2026. Historical buildings have been refurbished and are being used as construction, maintenance and drill casing facilities. Five drill rigs are actively installing production wells in the first Mine Unit. The contractor for the processing plant foundation is onsite and has initiated construction activities.
The team at Casper, Wyoming construction shop is operating efficiently, supporting ongoing header house development for both Lost Creek and Shirley Basin. Construction of the first header house for Shirley Basin is underway with moving towards production.