Ur-Energy Issues 2012 Year-End Letter to Shareholders

LITTLETON, Colo., March 28, 2013 /CNW/ - Ur-Energy Inc. (TSX:URE, NYSE 
MKT:URG)  ("Ur-Energy" or the "Company") issued the following letter to 
shareholders from President and CEO, Wayne W. Heili. 
(Logo: http://photos.prnewswire.com/prnh/20110913/LA67628LOGO) 
Dear Fellow Shareholder, 
I am pleased to present to you this 2012 year-end report for Ur-Energy.  The 
Board of Directors and our management team truly appreciate our shareholders' 
continued support and confidence in the Company. 
In 2012, the Company achieved significant growth in identified resources 
available for recovery at our flagship Lost Creek Property.  We also realized 
the completion of the permitting and regulatory approval process which allowed 
us to initiate construction of the project facilities.  Along the way, we 
entered into several product sales agreements which should secure a strong 
rate of return for our investment in the Lost Creek Property.  All the while, 
we maintained a watchful eye on spending and exercised concerted budgetary 
constraints. Nevertheless, the success and strengthening fundamentals of the 
Corporation went largely overlooked by the equity market as macro-economic 
concerns kept investors on the sidelines. 
This year, Ur-Energy management will continue to focus on advancing our core 
business objectives.  Growth is planned through the commencement of production 
operations at Lost Creek and through acquisition.  At this time, facility 
construction is moving at a rapid pace with the expectation that we will be 
able to achieve first production at Lost Creek this summer.  We also expect to 
close the announced acquisition of the Pathfinder Mines assets during the 
second quarter of 2013.  Following our strategic planning, we will move 
quickly to demonstrate the inherent value of these substantial assets. 
Ur-Energy concluded 2012 as a strong company with an exciting future, well 
positioned to capitalize on the strengthening nuclear fuel markets. I am 
excited to share with you the highlights of our corporate accomplishments from 
2012 and those ongoing in the first quarter of 2013.  On the strength of those 
accomplishments, I am looking forward to continued success and the completion 
of several major milestones in 2013. 
Accomplishments in 2012 and Early 2013 
The year 2012 was filled with significant growth developments for Ur-Energy.  
The Company acquired substantial property interests and mineral rights 
adjacent to our Lost Creek Property.  Our talented technical team produced 
significant expansions of the compliant resource estimate for our flagship 
property.  The Company took measures to fortify our balance sheet during a 
period of strength in a generally soft market, and we implemented a marketing 
strategy that secures a meaningful future revenue stream in an uncertain 
market.  Finally, we realized a long anticipated objective with the completion 
of the final regulatory approval necessary to commence construction at Lost 
Creek. 
Lost Creek Property 
Regulatory Achievements: The principal focus of the Company continues to be 
the advancement of the Lost Creek Project to production.  We were pleased to 
announce the receipt of the US Bureau of Land Management (BLM) Final 
Environmental Impact Statement in August and the Record of Decision early in 
October, 2012.  The BLM approval was the final major regulatory authorization 
necessary to allow construction and production at the site. 
Uranium Resource Base Increases:  Lost Creek Property expansion efforts 
resulted in a 58% aggregate growth of the Lost Creek Property Measured and 
Indicated resources from 5.3 Mlbs U(3)O(8) to 8.35 Mlbs U(3)O(8).  We also 
added over 2.0 Mlbs U(3)O(8) to our Inferred resource inventory in 2012.  Our 
ongoing work leads us to project that there is significant potential for the 
definition of additional resources through exploration and expansion of the 
Lost Creek Property.  Resource growth in 2012 was realized through our 
two-pronged approach: 


    --  Resource Drilling: In February 2012, we completed an update to
        the NI 43-101 Preliminary Economic Assessment (PEA) of the Lost
        Creek Property, primarily based upon the 2011 drill program.
        The PEA expanded the Lost Creek Property Measured and Indicated
        Resource by 11%. For the first time, we reported resources
        within our Lost Creek Property holdings but outside of the Lost
        Creek Project area. The Inferred Resource at the Lost Creek
        Property was increased significantly with the inclusion of
        Inferred Resources on our LC North and LC South Projects.
    --  Property Expansion: In February 2012, the Company acquired
        property interests adjacent to the Lost Creek Project in an
        asset exchange with Uranium One Americas. The acquired property
        and other newly staked federal mining claims were incorporated
        into the Lost Creek Property, primarily as our new LC East and
        LC West Projects. The Company's historic database contained
        over 1,100 drill holes located on these new project areas. The
        database was utilized to estimate the mineral resources for LC
        East and LC West. In April 2012, the Company reported a 45%
        increase (from the February 2012 PEA) in Measured and Indicated
        Resources along with a 42% increase in Inferred Resources for
        the Lost Creek Property. A limited drill program was conducted
        on the LC East project area in 2012, resulting in an
        approximate nine percent increase in the Inferred Mineral
        resource for the project. Reported mineral resources in the
        Measured and Indicated categories did not change from the April
        2012 PEA figures for LC East.

Economic Assessment: Our April 2012 update to the PEA for the Lost Creek 
Property continues to demonstrate the technical viability and possible 
economics of Lost Creek.  The PEA estimates direct operating costs which place 
Lost Creek in the lowest quartile of all uranium production facilities 
worldwide at under $16.50 per pound.(1)

Project Construction:  Project construction commenced in early October 2012.  
Our technical team and selected contractors have demonstrated their 
proficiency by moving the project forward as scheduled. Many aspects of 
construction are now completed with the major efforts advancing as expected 
for an on-time completion in June of this year.

Company Finance

In February 2012 we closed a private placement financing in which we raised 
C$17 million.  At year's end the Company had a cash position of approximately 
C$18 million to continue to advance our Company growth objectives.  Our 
internal finance team has created exceptional opportunity for funding future 
growth in the Company by initiating an application to the State of Wyoming for 
state funded industrial development bonds. Our application for US$34 million 
of funding out of this seldom-utilized program is a demonstration of the 
creativity that characterizes the Company in all of our business dealings.  
Ur-Energy has enjoyed the strong support of the State of Wyoming as we work 
through the application process and we look forward to finalization of the 
bond terms and approvals, followed by the availability of this funding, in the 
coming weeks.

Acquisitions

The Company's approach to growth through acquisition can be defined by the 
expectation that any investment will only be committed to target projects that 
have technical and economic viability for production in the near term.  Simply 
put, we hold numerous high quality exploration projects in our portfolio today 
and we will invest our treasury "at home" unless a valid opportunity for 
near-term production growth is available.  One such opportunity was identified 
and, in mid-2012, the Company entered into an agreement with AREVA to acquire 
AREVA's wholly-owned Pathfinder Mines Corporation. This transaction represents 
an exceptional opportunity for Ur-Energy. Pathfinder's Wyoming based uranium 
projects and extensive historical exploration databases are expected to 
provide near term and long term growth opportunities for the Company.  Today, 
both parties await approval and license transfer by the US Nuclear Regulatory 
Commission before the final steps to closing the transaction can be completed.

Uranium Markets and Contract Sales

In two years following the events at Fukushima in Japan, the global uranium 
market has endured the impact of the temporary suspension of nuclear reactor 
operations in that country and other reactionary responses around the world.  
While a greater understanding of the root causes of the event were gained, the 
nuclear energy industry demonstrated its resiliency, and growth in the usage 
of nuclear energy worldwide has resumed. New reactor development continues to 
outpace the retirement of the oldest reactors in the global fleet and the best 
estimates indicate a growth in demand for Ur-Energy's product now and in the 
decades to come.

The market price of uranium has remained soft during this period with a 
resulting significant negative impact on the supply side of the uranium 
market.  I believe that new growth by the small universe of uranium producing 
companies will be limited in the near term to the few projects which are 
expected to generate low production costs from the outset.  Our Lost Creek 
project is counted among the few in this elite group.

In the latter part of 2011, Ur-Energy developed a strategic marketing 
initiative designed to reduce the Company's exposure to future negative turns 
in uranium pricing due to unforeseen events like Fukushima.  By January 2012, 
Ur-Energy had secured several multi-year sales agreements with major North 
American nuclear utilities.  These contracts feature fixed pricing that will 
readily support ongoing production at the Company's Lost Creek Property.  The 
very nature of these contracts has made them a substantial asset for the 
Company moving forward in a low spot market price environment.  The Company 
expects to continue to expand its portfolio of supply contracts when the 
proper opportunities are presented.

A Look Ahead: 2013

We expect that this year will hold several major milestones for the Company.  
The completion of construction and the advancement of our flagship project to 
production will take center stage.   It is rare when a junior exploration 
company successfully emerges as a producer, even more so when the commodity is 
one as challenging as uranium. The employees and management team at Ur?Energy 
appreciate the long and challenging path we have travelled together in 
arriving at this point and we fully respect the opportunities that lay ahead.  
I personally believe that the true strength of this Company will be 
demonstrated in the months ahead as our production team is handed the torch 
and is allowed to advance the Company objectives.

Our objectives for 2013 are similar to those we set out and accomplished in 
2012.  As we transition to first production, the Company looks to continue its 
efforts to systematically expand the minable resources that will be accessible 
to the Lost Creek processing plant.  This objective will be achieved through 
implementation of our continued exploration drilling and property acquisition 
strategies.  Ur?Energy will also continue to target growth in our production 
profile through strategic acquisitions and exploration on the significant land 
and resource positions held outside of the Lost Creek Property.

Closing Thoughts

Ur-Energy has all of the fundamental building blocks of growth in place.  I 
believe that the Company will be producing a steady stream of positive news in 
2013.  The robust Lost Creek Property combined with fundamentally sound 
product marketing strategies, superb technical and support staff, our solid 
financial base and funding opportunities, and the ability to expand our 
mineral resources will enable us to continue moving steadily ahead with the 
growth of the Company.

Finally, I would like to thank all of Ur-Energy's employees for their 
continued dedication in building this thriving uranium company.  It is their 
abilities and hard work that have sustained our pace of activities in 2012.  
It will only be with their constant effort that we will reach the goal of 
generating revenues from uranium production in 2013.

Enclosed are our Management Proxy Circular and other documents relating to the 
Ur-Energy Inc. Annual and Special Meeting of Shareholders scheduled for April 
25, 2013.  These documents are also available on our website, 
www.ur-energy.com.

As always, we appreciate the support of our existing shareholders and invite 
new investors to take a look at Ur-Energy.  Building shareholder value is our 
highest priority.  Stay informed, and view the latest photos of our Lost Creek 
construction activities by visiting our website at www.ur-energy.com. Contact 
us by emailing info@ur-energy.com or calling +1-866-981-4588.

On Behalf of the Board,

/s/ Wayne W. Heili

Wayne W. Heili

President and Chief Executive Officer, Director

About Ur-Energy  Ur-Energy is a junior uranium mining company currently 
constructing its first in-situ recovery (ISR) uranium mine in south- central 
Wyoming at its fully licensed and permitted Lost Creek project.  The Lost 
Creek processing facility will have two million pounds per year capacity and 
is anticipated to be in production mid-year 2013.  Ur-Energy engages in the 
identification, acquisition, exploration and development of uranium projects 
in the United States and Canada.  Shares of Ur-Energy trade on the Toronto 
Stock Exchange under the symbol "URE" and on the NYSE MKT under the symbol 
"URG". Ur-Energy's corporate office is located in Littleton, Colorado; its 
registered office is in Ottawa, Ontario.  Ur-Energy's website is 
www.ur-energy.com.

 
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|FOR FURTHER INFORMATION, PLEASE CONTACT                                                                        |       


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|Rich Boberg, Director, IR/PR                                                                                   |Wayne 
Heili, President and CEO                                                                                 |
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|303-269-7707                                                                                                   |307-265-2373                                                                                                   |
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|866-981-4588                                                                                                   |866-981-4588                                                                                                   |
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|rich.boberg@ur-energyusa.com|wayne.heili@ur-energyusa.com|
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 Cautionary Note to U.S. Investors Concerning Resource Estimates This document 
uses the terms "measured mineral resource," "indicated mineral resource" and 
"inferred mineral resource."  The Company advises US investors that while 
these terms are recognized and required by Canadian regulations, the United 
States Securities and Exchange Commission (SEC) does not recognize them.  US 
investors are cautioned not to assume that any part or all of the mineral 
deposits in these categories will ever be converted into mineral reserves.  
"Inferred mineral resources" have a great amount of uncertainty as to their 
existence, and great uncertainty as to their legal and economic feasibility.  
It cannot be assumed that all or any part of an inferred mineral resource will 
ever be upgraded to a higher category.  Under Canadian rules, estimates of 
inferred mineral resources may not form the basis of feasibility or 
pre-feasibility studies, except in rare cases. US Investors are cautioned not 
to assume that all or any part of an inferred mineral resource exists or is 
economically minable. 
Cautionary Note Regarding Forward-Looking Information This document contains 
"forward-looking statements" within the meaning of applicable securities laws 
regarding events or conditions that may occur in the future (e.g., timeframe 
culminating in the commencement of production at Lost Creek (including 
procurement, construction and commissioning); ability and timing of the 
Company to secure project financing including the state bond process; 
technical and economic viability of Lost Creek (including the projections 
contained in the preliminary analysis of economics of the property); ability 
to complete the acquisition of Pathfinder Mines Corporation, timing for 
closing the transaction and whether the projects will become near term 
producers; ability to complete additional favorable uranium sales agreements 
and the ability to reduce exposure to volatile market conditions; the ability 
to expand resources throughout the Lost Creek Property), 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. 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. 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. 
(1 )Cautionary statement pursuant to NI 43-101: the Preliminary Economic 
Assessment is preliminary in nature, and includes inferred mineral resources 
that are considered too speculative geologically to have the economic 
considerations applied to them that would enable them to be categorized as 
mineral reserves. The estimated mineral recovery used in this PEA is based on 
site-specific laboratory recovery data as well as Company personnel and 
industry experience at similar facilities.  There can be no assurance that 
recovery at this level will be achieved. 
http://www.ur-energy.com 
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SOURCE: Ur-Energy Inc. 
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CO: Ur-Energy Inc.
ST: Colorado
NI: UTI OIL MNG TNM MNA  
-0- Mar/28/2013 15:13 GMT
 
 
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