Significant New Uranium Discovery at Big Lake Uranium Project, South Australia

“We proceed to think about methods to broaden our home manufacturing to answer rising demand from utilities and lively efforts by the Division of Power to accumulate each Excessive Assay Low Enriched Uranium (“HALEU”) and Low Enriched Uranium (“LEU”) with a desire for home feed inventory. We imagine we’re uniquely positioned within the U.S. by means of our robust money place and our rising expert work pressure to fill our present contract e-book and capitalize on future alternatives to broaden manufacturing capability.”

Misplaced Creek Operations

Misplaced Creek manufacturing is advancing with three header homes having come on-line in 2024 H1. Header Home (HH) 2-9 got here on-line mid-July and HH 2-10 is scheduled to come back on-line mid-August.

Throughout Q2 we captured roughly 70,679 kilos, dried and packaged 64,170 kilos and shipped 70,390 kilos U₃O_8. These figures signify a rise in every of those manufacturing numbers as in comparison with 2024 Q1.

At quarter finish, our in-process stock was roughly 86,204 kilos, our drummed stock at Misplaced Creek was 21,570 kilos, and our completed stock on the conversion facility was 74,625 kilos U₃O₈ . We shipped 35,199 kilos U₃O₈ to the conversion facility on July 25, 2024.

Gross sales and Gross sales Agreements

We offered 75,000 kilos U₃O₈ in Q2 at a median worth of $61.65 per pound for proceeds of $4.6 million. Along with the 75,000 kilos offered in Q2, we now have obtained binding notices from our clients for the supply of 495,000 kilos within the second half of this 12 months for whole gross sales of 570,000 kilos U₃O₈ in 2024. Together with the income obtained through the quarter, we count on to appreciate revenues of $33.1 million from our 2024 U₃O₈ gross sales.

Subsequent to quarter-end we supplied discover to one in every of our purchasers of a supply of 100,000 kilos U₃O₈ which was transferred and offered on August 8, 2024.

Monetary Outcomes

As of June 30, 2024, we had money assets of $61.3 million, which was a rise of $1.6 million from the $59.7 million stability on December 31, 2023. In the course of the six months ended June 30, 2024, we spent $25.6 million on working actions, used $1.9 million for investing actions, and generated $31.4 million from financing actions.

U₃O₈Gross sales, Price of Gross sales, and Gross Revenue¹

The next desk gives info on our U₃O₈ gross sales, value of gross sales, and gross revenue.

¹ The U₃O₈ and price per pound measures included within the above desk do not need a standardized that means inside US GAAP or an outlined foundation of calculation. These measures are utilized by administration to evaluate enterprise efficiency and decide manufacturing and pricing methods. They could even be utilized by sure buyers to judge efficiency.

We offered 75,000 kilos of U₃O₈ within the six months ended June 30, 2024 at a median worth per pound offered of $61.65.

In 2023 Q3 and 2023 This autumn, we delivered a complete of 180,000 produced kilos of U₃O₈ into time period contracts at a median worth per pound offered of $60.45.

Our gross sales in 2024 are projected at 570,000 kilos of U₃O₈ at a median worth per pound offered of $58.15 and we count on to appreciate revenues of $33.1 million. The deliveries are underneath contracts negotiated in 2022, when the long-term worth was between $43 and $52 per pound.

U₃O₈Manufacturing and Ending Stock

The next desk gives info on our manufacturing and ending stock of U₃O₈ kilos.

Fairness Financing

On July 29, 2024, we closed an underwritten public providing of 57,150,000 widespread shares at a worth of $1.05 per widespread share. The gross proceeds to the Firm from the providing had been roughly $60.0 million, earlier than deducting the underwriting reductions and commissions and different providing bills payable by the Firm.

The Firm additionally granted the underwriters a 30-day choice to buy as much as 8,572,500 further widespread shares on the identical phrases. On July 30, 2024, the underwriters exercised in full their choice to buy the choice shares. The train closed on July 31, 2024. The gross proceeds to the Firm from the train of the underwriters’ choice had been roughly $9.0 million, earlier than deducting underwriting reductions and commissions and different estimated providing bills payable by the Firm. Within the combination, we issued a complete of 65,722,500 widespread shares. The gross proceeds to Ur-Power from this providing and the choice had been roughly $69.0 million.

For the needs of the TSX approval, Ur-Power relied on the exemption set forth in Part 602.1 of the TSX Firm Handbook, which gives that the TSX is not going to apply its requirements to sure transactions involving eligible inter-listed issuers on a acknowledged trade, equivalent to NYSE American.

2024 Persevering with Steerage

Header Home (HH) 2-10 is scheduled to come back on-line mid-August. Our development crew is now on monitor to fulfill its purpose of routinely finishing a brand new header home roughly each thirty days. All through Q2 we had 12 drill rigs working at Misplaced Creek; we anticipate further drill rigs will mobilize to Misplaced Creek within the subsequent two months. Fabrication of HHs 2-11 by means of 2-14 is in progress in our Casper development store and onsite development associated to those subsequent header homes is properly superior.

Though we proceed to expertise gear and operational challenges, we’re seeing month-over-month will increase in manufacturing, drying and packaging. At August 4, 2024, we drummed and packaged an estimated 25,800 kilos U₃O₈ since quarter finish. We proceed to see very constructive grades and manufacturing from the newest header homes introduced on-line.

However the advances we now have made, we’re guiding to the decrease aspect of our earlier 2024 manufacturing steering of 550,000 and 650,000 kilos U₃O₈ captured at Misplaced Creek. We now have made 4 shipments of U₃O₈ to the converter in 2024 and anticipate routine shipments all through the rest of the 12 months.

We now have commitments underneath contracts negotiated in 2022, when the long-term worth was between $43 and $52 per pound, for deliveries of 570,000 kilos U₃O₈ in 2024 and count on to appreciate revenues of $33.1 million.

Deliveries for 2025 are dedicated to 3 of our clients for a base quantity of 700,000 kilos U₃O₈ . We now have obtained discover from one in every of our purchasers of its election to flex up its 2025 purchases by 10%, such that we now anticipate we might ship 730,000 kilos U₃O₈ into our time period gross sales agreements in 2025.

Uranium spot costs remained robust and comparatively secure in 2024 Q2, with pricing averaging roughly $88 per pound U₃O₈ through the quarter. Nuclear utilities and different purchasers are again out there, which has sustained time period pricing, which averaged $78 per pound U₃O₈ on the finish of 2024 Q1 and $80 per pound U₃O₈ on the finish of 2024 Q2.

We proceed to obtain requests for proposals (“RFPs”) from utilities and different world gasoline patrons. We now have responded to the RFPs with costs commensurate with rising market situations together with elevated demand for domestically produced uranium. We accomplished three further uranium gross sales agreements throughout 2024 H1. Our contract e-book now stands at a complete of roughly 5.7 million kilos U₃O₈ with deliveries occurring in 2024 by means of 2030. Gross sales costs are anticipated to be worthwhile on an all-in manufacturing value foundation and escalate yearly from preliminary pricing, together with some market-based pricing options.

With our expanded gross sales contract e-book, and inspiring market situations, we now have determined to proceed with the buildout of a satellite tv for pc facility at our wholly owned, absolutely permitted and licensed Shirley Basin Undertaking in Carbon County, Wyoming. The buildout will practically double our annual permitted mine manufacturing to 2.2 million kilos U₃O₈ .

Development and drilling on the website have proceeded since climate and situations on the bottom permitted in late spring. Set up of the monitor properly ring for the primary mine unit stays on schedule to be full this 12 months. Highway development and the refurbishment of current and set up of latest electrical infrastructure are all advancing. Main development actions at Shirley Basin are anticipated to start in 2025 and preliminary manufacturing is anticipated to start in early 2026.

Following our latest public providing, we had $121.3 in money assets as of August 6, 2024. With this robust treasury, we’re properly funded for upcoming development at Shirley Basin and for strategic alternatives for accretive enlargement by means of natural or inorganic development.

We’re happy to be one of many few publicly traded firms that’s commercially recovering uranium and increasing our manufacturing capability to promote right into a strengthening uranium market. As mentioned, stronger costs have already enabled us to safe multi-year gross sales agreements with main nuclear firms, which in flip allowed us to renew business manufacturing at Misplaced Creek and provoke development and growth actions at Shirley Basin.

We are going to proceed to carefully monitor the uranium markets, and different developments, which can have an effect on the uranium manufacturing trade and supply the chance to place in place further off-take gross sales contracts.

As all the time, we are going to give attention to sustaining secure and compliant operations.

About Ur-Power

Ur-Power is a uranium mining firm working the Misplaced Creek in-situ restoration uranium facility in south-central Wyoming. We now have produced and packaged roughly 2.7 million kilos U₃O₈ from Misplaced Creek for the reason that graduation of operations. Ur-Power has all main permits and authorizations to start development at Shirley Basin, the Firm’s second in situ restoration uranium facility in Wyoming and is advancing Shirley Basin development and growth following the March 2024 ‘go” choice for the mine. We await the remaining regulatory authorization for the enlargement of Misplaced Creek. Ur‑Power is engaged in uranium mining, restoration and processing actions, together with the acquisition, exploration, growth, and operation of uranium mineral properties in the US. The first buying and selling marketplace for Ur‑Power’s widespread shares is on the NYSE American underneath the image “URG.” Ur‑Power’s widespread shares additionally commerce on the Toronto Inventory Alternate underneath the image “URE.” Ur-Power’s company workplace is in Littleton, Colorado and its registered workplace is in Ottawa, Ontario.

FOR FURTHER INFORMATION, PLEASE CONTACT

John W. Money, Chairman, CEO and President
+1 720-981-4588, ext. 303
John.Money@Ur-Power.com

Cautionary Word Relating to Ahead-Wanting Info

This launch might include “forward-looking statements” throughout the that means of relevant securities legal guidelines relating to occasions or situations that will happen sooner or later ( e.g., our capability to take care of operations at Misplaced Creek in a secure and compliant style; our capability to proceed to extend manufacturing ranges in a well timed and cost-effective method, to fulfill our manufacturing projections and ship into our contract e-book; our capability to stay forward of provide chain challenges in our procurement of kit and provides for each Misplaced Creek and Shirley Basin; our capability to well timed ship into our gross sales contracts; the power to advance growth and development priorities at Misplaced Creek and Shirley Basin; the power to finish construct out of Shirley Basin as at the moment projected and budgeted; the power to finish further favorable uranium gross sales agreements, together with spot gross sales when warranted; what results the ban on Russian nuclear fuels may have on the uranium market; and whether or not we will broaden our manufacturing portfolio enterprise with natural or inorganic development) and are primarily based on present expectations that, whereas thought-about cheap by administration presently, inherently contain numerous important enterprise, financial and aggressive dangers, uncertainties and contingencies. Typically, forward-looking statements may be recognized by way of forward-looking terminology equivalent to “plans,” “expects,” “doesn’t count on,” “is anticipated,” “is probably going,” “estimates,” “intends,” “anticipates,” “doesn’t anticipate,” or “believes,” or variations of the foregoing, or statements that sure actions, occasions or outcomes “might,” “might,” “may” or “will likely be taken,” “happen,” “be achieved” or “have the potential to.” All statements, aside from statements of historic truth, are thought-about to be forward-looking statements. Ahead-looking statements contain recognized and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, efficiency or achievements of the Firm to be materially totally different from any future outcomes, efficiency or achievements categorical or implied by the forward-looking statements. Components that might trigger precise outcomes to vary materially from any forward-looking statements embody, however should not restricted to, capital and different prices various considerably from estimates; failure to determine estimated assets and reserves; the grade and restoration of ore which is mined various from estimates; manufacturing charges, strategies and quantities various from estimates; delays in acquiring or failures to acquire required governmental, environmental or different undertaking approvals; inflation; adjustments in trade charges; fluctuations in commodity costs; delays in growth and different elements described within the public filings made by the Firm at www.sedarplus.ca and www.sec.gov . Readers mustn’t place undue reliance on forward-looking statements. The forward-looking statements contained herein are primarily based on the beliefs, expectations and opinions of administration as of the date hereof and Ur-Power disclaims any intent or obligation to replace them or revise them to replicate any change in circumstances or in administration’s beliefs, expectations or opinions that happen sooner or later.

SOURCE: Ur-Power Inc.

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