under the applicable provisions of the U.S. Internal Revenue Code of 1986, as amended; risks associated with our investments and other risks and uncertainties described under the heading “Risk Factors” in our Annual Report on Form 10-K, dated ~~March 3, 2017.~~February 28, 2020.

Cautionary Note to U.S. Investors Concerning Disclosure of Mineral Resources

Unless otherwise indicated, all resource estimates included in this Form 10-Q have been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (“CIM Definition Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. NI 43-101 permits the reporting of an historical estimate made prior to the adoption of NI 43-101 that does not comply with NI 43-101 to be disclosed using the historical terminology if the disclosure: (a) identifies the source and date of the historical estimate; (b) comments on the relevance and reliability of the historical estimate; (c) to the extent known, provides the key assumptions, parameters and methods used to prepare the historical estimate; (d) states whether the historical estimate uses categories other than those prescribed by NI 43-101; and (e) includes any more recent estimates or data available.

Canadian standards, including NI 43-101, differ significantly from the requirements of the U.S. Securities and Exchange Commission (“SEC”), and resource information contained in this Form ~~10-K~~10-Q may not be comparable to similar information disclosed by U.S. companies. In particular, the term “resource” does not equate to the term ~~“‘reserves.~~“reserves.” Under SEC Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. SEC Industry Guide 7 does not define and the SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources,” “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal 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, estimated “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. Accordingly, information concerning mineral deposits set forth herein may not be comparable to information made public by companies that report in accordance with ~~U. S.~~U.S. standards.

NI 43-101 Review of Technical Information: ~~James A. Bonner,~~ Michael Mellin, Ur-Energy ~~Vice President Geology,~~/ Lost Creek Mine Geologist, P.Geo. and Qualified Person as defined by NI 43-101, reviewed and approved the technical information contained in this Form 10-Q.

Table of Contents

PART I

Item 1. FINANCIAL ~~STATEMENTS~~STATEMENTS

Ur-Energy Inc.

Unaudited Interim Consolidated Balance Sheets

(expressed in thousands of U.S. dollars)


	June 30,	December 31,
	2020	2019
Assets
Current assets
Cash and cash equivalents (note 4)	5,567	7,752
Accounts receivable	7	22
Inventory (note 5)	7,485	-
Prepaid expenses	969	885
	14,028	8,659
Inventory (note 5)	-	7,426
Restricted cash (note 6)	7,463	7,463
Mineral properties (note 7)	41,958	43,212
Capital assets (note 8)	22,812	23,630
	72,233	81,731
	86,261	90,390
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities (note 9)	2,255	2,211
Current portion of long term debt (note 10)	1,683	-
Environmental remediation accrual	75	72
	4,013	2,283
Notes payable (note 10)	11,460	12,215
Lease liability	70	12
Asset retirement obligations (note 11)	31,260	30,972
Other liabilities - warrants (note 12)	498	575
	43,288	43,774
	47,301	46,057
Shareholders' equity (note 13)
Share Capital
Class A preferred shares, without par value, unlimited shares authorized; 0 shares issued and outstanding	-	-
Common shares, without par value, unlimited shares authorized; shares issued and outstanding: 160,478,059 at June 30, 2020 and 160,478,059 at December 31, 2019	185,754	185,754
Contributed surplus	20,781	20,317
Accumulated other comprehensive income	3,685	3,654
Deficit	(171,260)	(165,392)
	38,960	44,333
	86,261	90,390

September 30,

December 31,

2017

2016
Assets

Current assets

Cash and cash equivalents (note 3)
2,146

1,552
Accounts receivable (note 4)
7,897

16
Inventory (note 5)
1,720

4,109
Prepaid expenses
812

829

12,575

6,506
Restricted cash (note 6)
7,557

7,557
Mineral properties (note 7)
45,271

47,029
Capital assets (note 8)
27,428

28,848

80,256

83,434

92,831

89,940
Liabilities and shareholders' equity

Current liabilities

Accounts payable and accrued liabilities (note 9)
3,391

3,625
Current portion of notes payable (note 10)
4,704

4,502
Environmental remediation accrual
79

85

8,174

8,212
Notes payable (note 10)
15,881

19,435
Asset retirement obligations (note 11)
26,910

26,061

50,965

53,708
Shareholders' equity (note 12)

Share Capital

Class A preferred shares, without par value, unlimited shares authorized; no shares issued and outstanding
-

-
Common shares, without par value, unlimited shares authorized; shares issued and outstanding: 146,009,205 at September 30, 2017, 2017 and 143,676,384 at December 31, 2016
176,653

174,902
Warrants
4,109

4,109
Contributed surplus
15,516

15,201
Accumulated other comprehensive income
3,670

3,604
Deficit
(158,082)

(161,584)

41,866

36,232

92,831

89,940

The accompanying notes are an integral part of these interim consolidated financial statements.

Approved by the Board of Directors

/s/ Jeffrey T. Klenda, Chairman of the Board/s/ Thomas Parker, Director

Table of Contents

Ur-Energy Inc.

Unaudited Interim Consolidated Statements of Operations and Comprehensive Loss

(expressed in thousands of U.S. dollars except for share data)

Three months ended September 30,

Nine months ended September 30,

2017

2016

2017

2016

Sales (note 13)
11,693

12,068

38,342

21,529
Cost of sales
(11,157)

(5,818)

(24,025)

(12,767)
Gross profit
536

6,250

14,317

8,762

Operating Expenses

Exploration and evaluation
(560)

(828)

(2,162)

(2,370)
Development
(1,454)

(1,108)

(3,499)

(2,384)
General and administrative
(1,070)

(972)

(3,748)

(3,796)
Accretion of asset retirement obligations (note 11)
(135)

(134)

(401)

(399)
Write-off of mineral properties (note 7)
-

-

-

(62)
Income (loss) from operations
(2,683)

3,208

4,507

(249)
Interest expense (net)
(332)

(474)

(1,063)

(1,543)
Warrant mark to market adjustment
-

5

-

36
Loss on equity investment
(5)

(3)

(5)

(5)
Write-off of equity investments
-

(900)

-

(1,089)
Foreign exchange loss
(40)

(6)

(57)

(279)
Other income (expense)
57

(27)

120

15
Net income (loss) for the period
(3,003)

1,803

3,502

(3,114)

Income (loss) per common share

Basic
(0.02)

0.01

0.02

(0.02)
Diluted
(0.02)

0.01

0.02

(0.02)
Weighted average number of common shares outstanding

Basic
145,918,020

143,605,552

145,707,532

141,324,039
Diluted
145,918,020

144,258,513

146,617,488

141,324,039

COMPREHENSIVE INCOME (LOSS)

Net income (loss) for the period
(3,003)

1,803

3,502

(3,114)
Other Comprehensive income (loss), net of tax

Translation adjustment on foreign operations
48

2

66

251
Comprehensive income (loss) for the period
(2,955)

1,805

3,568

(2,863)


	Three months ended June 30,		Six months ended June 30,
	2020	2019	2020	2019

Sales (note 14)	6,934	11,479	8,304	16,291
Cost of sales	(6,517)	(11,163)	(9,622)	(16,309)

Gross profit (loss)	417	316	(1,318)	(18)

Operating Expenses

Exploration and evaluation	(554)	(490)	(945)	(1,264)
Development	(343)	(292)	(616)	(458)
General and administrative	(1,187)	(1,153)	(2,440)	(3,291)
Accretion of asset retirement obligations (note 11)	(143)	(144)	(288)	(287)

Loss from operations	(1,810)	(1,763)	(5,607)	(5,318)

Net interest expense	(195)	(168)	(327)	(364)
Warrant mark to market adjustment	(231)	(105)	42	(638)
Foreign exchange gain (loss)	(8)	(10)	7	(28)
Other income	17	15	17	15

Net loss for the period	(2,227)	(2,031)	(5,868)	(6,333)

Loss per common share
Basic and diluted	(0.01)	(0.01)	(0.04)	(0.04)
Weighted average number of common shares outstanding
Basic and diluted	160,478,059	159,820,583	160,478,059	159,775,245

COMPREHENSIVE LOSS
Net loss for the period	(2,227)	(2,031)	(5,868)	(6,333)
Other Comprehensive loss, net of tax
Translation adjustment on foreign operations	4	(24)	31	(23)
Comprehensive loss for the period	(2,223)	(2,055)	(5,837)	(6,356)

The accompanying notes are an integral part of these interim consolidated financial statements.

Table of Contents

Ur-Energy Inc.

Unaudited Interim Consolidated Statement of Shareholders’ Equity

(expressed in thousands of U.S. dollars except for share data)

Accumulated

Other

Capital Stock

Contributed

Comprehensive

Shareholders'

Shares

Amount

Warrants

Surplus

Income

Deficit

Equity

#

$

$

$

$

$

$
Balance, December 31, 2016
143,676,384

174,902

4,109

15,201

3,604

(161,584)

36,232

Exercise of stock options
549,952

518

-

(169)

-

-

349
Common shares issued for cash, net

of $88 of issue costs
1,536,169

1,081

-

-

-

-

1,081
Redemption of vested RSUs
246,700

152

-

(221)

-

-

(69)
Non-cash stock compensation
-

-

-

705

-

-

705
Net income (loss) and comprehensive income (loss)
-

-

-

-

66

3,502

3,568

Balance, September 30, 2017
146,009,205

176,653

4,109

15,516

3,670

(158,082)

41,866


				Accumulated
				Other
	Capital Stock		Contributed	Comprehensive		Shareholders'
	Shares	Amount	Surplus	Income	Deficit	Equity
	#	$	$	$	$	$
Balance, December 31, 2018	159,729,403	185,221	19,930	3,670	(156,974)	51,847

Redemption of vested RSUs	-	-	(6)	-	-	(6)
Non-cash stock compensation	-	-	188	-	-	188
Net loss and comprehensive loss	-	-	-	1	(4,302)	(4,301)

Balance, March 31, 2019	159,729,403	185,221	20,112	3,671	(161,276)	47,728

Exercise of stock options	206,160	190	(56)	-	-	134
Redemption of vested RSUs	-	-	(1)	-	-	(1)
Non-cash stock compensation	-	-	182			182
Net loss and comprehensive loss	-	-	-	(24)	(2,031)	(2,055)

Balance, June 30, 2019	159,935,563	185,411	20,237	3,647	(163,307)	45,988


Balance, December 31, 2019	160,478,059	185,754	20,317	3,654	(165,392)	44,333

Non-cash stock compensation	-	-	234	-	-	234
Net loss and comprehensive loss	-	-	-	27	(3,641)	(3,614)

Balance, March 31, 2020	160,478,059	185,754	20,551	3,681	(169,033)	40,953

Non-cash stock compensation	-	-	230	-	-	230
Net loss and comprehensive loss	-	-	-	4	(2,227)	(2,223)

Balance, June 30, 2020	160,478,059	185,754	20,781	3,685	(171,260)	38,960

The accompanying notes are an integral part of these interim consolidated financial statements.

Table of Contents

Ur-Energy Inc.

Unaudited Interim Consolidated Statements of Cash Flow

(expressed in thousands of U.S. dollars)


	Six months ended June 30,
	2020	2019
Cash provided by
Operating activities
Net loss for the period	(5,868)	(6,333)
Items not affecting cash:
Stock based expense	464	370
Loss from net realizable value adjustments	4,456	4,103
Depreciation and amortization	2,164	2,201
Accretion of asset retirement obligations and reclamation	288	287
Amortization of deferred loan costs	35	60
Warrants mark to market gain (loss)	(42)	638
Gain on disposition of assets	(16)	-
Gain on foreign exchange	(7)	(28)
Other loss (gain)	3	(2)
Change in non-cash working capital items:
Accounts receivable	14	4
Inventory	(4,515)	1,462
Prepaid expenses	(67)	(174)
Accounts payable and accrued liabilities	36	76
	(3,055)	2,664

Investing activities
Mineral property costs	-	(8)
Increase in other deposits	(5)	-
Proceeds from sale of property and equipment	18	-
Purchase of capital assets	(34)	(125)
	(21)	(133)

Financing activities
Proceeds from exercise of stock options	-	134
RSUs redeemed to pay withholding or paid in cash	-	(7)
Proceeds from debt financing	893	-
Repayment of debt	-	(2,555)
	893	(2,428)

Effects of foreign exchange rate changes on cash	(2)	64

Net change in cash, cash equivalents and restricted cash	(2,185)	167
Beginning cash, cash equivalents and restricted cash	15,215	13,830
Ending cash, cash equivalents and restricted cash (note 15)	13,030	13,997

Nine months ended September 30,

2017

2016

(Restated -
note 2)
Cash provided by (used in)

Operating activities

Net income (loss) for the period
3,502

(3,114)
Items not affecting cash:

Stock based expense
705

603
Depreciation and amortization
3,810

3,852
Accretion of asset retirement obligations
401

399
Amortization of deferred loan costs
91

114
Provision for reclamation
(6)

(1)
Write off of equity investments
-

1,089
Write-off of mineral properties
-

62
Warrants mark to market gain
-

(36)
Gain on disposition of assets
-

(14)
Loss on foreign exchange
59

281
Recognition of gain on deferred contract
-

(2,588)
Other loss
5

5
RSUs redeemed to pay withholding or paid in cash
(68)

(9)
Proceeds from assignment of sales contract
-

5,085
Change in non-cash working capital items:

Accounts receivable
(7,881)

(3,289)
Inventory
2,389

(60)
Prepaid expenses
120

(86)
Accounts payable and accrued liabilities
(361)

273

2,766

2,566

Investing activities

Mineral property costs
(10)

-
Funding of equity investment
(5)

(5)
Proceeds from sale of property and equipment
-

91
Purchase of capital assets
(173)

(281)

(188)

(195)

Financing activities

Issuance of common shares for cash
1,169

6,568
Share issue costs
(60)

(880)
Proceeds from exercise of stock options
349

9
Repayment of debt
(3,443)

(6,486)

(1,985)

(789)

Effects of foreign exchange rate changes on cash
1

(64)

Net change in cash, cash equivalents and restricted cash
594

1,518
Beginning cash, cash equivalents and restricted cash
9,109

9,000
Ending cash, cash equivalents and restricted cash (note 14)
9,703

10,518

The accompanying notes are an integral part of these interim consolidated financial statements.

Table of Contents

Ur-Energy Inc.

Condensed Notes to Unaudited Interim Consolidated Financial Statements

June 30, ~~2017~~2020

(expressed in thousands of U.S. dollars unless otherwise indicated)

1.	Nature of Operations

~~1.Nature of Operations~~

Ur-Energy Inc. (the “Company”) was incorporated on March 22, 2004 under the laws of the Province of Ontario. The Company was continued under the Canada Business Corporations Act on August 8, 2006. Headquartered in Littleton, Colorado, the Company is an exploration stage mining company, as defined by U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7. The Company is engaged in uranium mining and recovery operations, with activities including the acquisition, exploration, development and production of uranium mineral resources located in Wyoming. ~~As of~~In August 2013, the Company commenced uranium production at its Lost Creek Project in Wyoming.

Due to the nature of the uranium mining methods used by the Company on the Lost Creek Property, and the definition of “mineral reserves” under National Instrument 43-101 (“NI 43-101”), which uses the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards, the Company has not determined whether the ~~properties contain~~property contains mineral reserves. However, the Company’s “AmendedPreliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming,” February 8, 2016 (“Lost Creek PEA”), outlines the potential viability of the Lost Creek Property. The recoverability of amounts recorded for mineral properties is dependent upon the discovery of economic resources, the ability of the Company to obtain the necessary financing to develop the properties and upon attaining future profitable production from the properties or sufficient proceeds from disposition of the properties.

2.	Liquidity Risk

~~2.Summary~~Our operations are based on a small number of ~~Significant Accounting Policies~~large sales. As a result, our cash flow and therefore our current assets and working capital may vary widely during the year based on the timing of those sales. Virtually all our past sales were under term contracts which specify delivery quantities, sales prices and payment dates. As a result, we performed cash management functions over the course of an entire year and were less reliant on current commodity prices and market conditions. As our remaining term contracts were completed in 2020 Q2, we have become more dependent on current commodity prices until we are able to enter into new term contracts.

As at June 30, 2020, the Company’s financial liabilities consisted of trade accounts payable and accrued trade and payroll liabilities of $0.7 million which are due within normal trade terms of generally 30 to 60 days, notes payable of $13.3 million, and asset retirement obligations with estimated settlement dates until 2033.

The payment schedule for the $12.4 million State Bond Loan was modified on October 1, 2019 to defer principal payments for eighteen months (see note 10). As at July 31, 2020, quarterly principal payments are scheduled to resume on April 1, 2021, with 2 payments falling due within the 12 months from the as at date.

On April 16, 2020, we received $0.9 million under the U.S. Small Business Administration (“SBA”) Payroll Protection Program (“PPP”), which was created under the Coronavirus Aid, Relief and Economic Security

Table of Contents

Ur-Energy Inc.

Condensed Notes to Unaudited Interim Consolidated Financial Statements

June 30, 2020

(expressed in thousands of U.S. dollars unless otherwise indicated)

Act (the “CARES Act”). We anticipate the loans will meet the requirements for forgiveness under this program (see note 10).

On July 31, 2020, the Company announced a $4.68 million registered direct offering of 9,000,000 common shares and accompanying one-half common share warrants to purchase up to 4,500,000 common shares, at a combined public offering price of $0.52 per common share and accompanying warrant, with gross proceeds to the Company of $4.68 million. After estimated fees and expenses of approximately $0.4 million, net proceeds to the Company are expected to be $4.3 million, which are expected to be received on or about August 4, 2020. See note 17 – Subsequent Event for discussion of the offering.

In addition to our cash position and expected registered direct offering net proceeds, our finished, ready-to-sell, conversion facility inventory is immediately realizable, if necessary. While our current cash position should be sufficient to cover our expected expenditures for the remainder of the year, we anticipate selling a significant portion of our existing finished-product inventory in 2021 at market prices in effect at that time, unless market conditions change, or we choose to obtain additional financing.

3.	Summary of Significant Accounting Policies

Basis of presentation

These unaudited interim consolidated financial statements do not conform in all respects to the requirements of ~~United States~~U.S. generally accepted accounting principles (“US GAAP”) for annual financial statements. The unaudited interim consolidated financial statements reflect all normal adjustments which in the opinion of management are necessary for a fair ~~statement~~presentation of the results for the periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements for the year ended December 31, ~~2016.~~2019. We apply the same accounting policies as in the prior year. The year-end balance sheet data were derived from the audited financial statements and certain information and footnote disclosures required by US GAAP have been condensed or omitted.

~~Earnings and loss per share calculations~~

Diluted earnings per common share are calculated by including all options which are in-the-money based on the average stock price for the period as well as RSUs which were outstanding at the end of the quarter. The treasury stock method was applied to determine the dilutive number of options. Warrants are included only if the exercise price is less than the average stock price for the quarter. In periods of loss, the diluted loss per common share is equal to the basic loss per common share due to the anti-dilutive effect of all convertible securities.

~~Table of Contents~~

~~Ur-Energy Inc.~~

~~Condensed Notes to Unaudited Interim Consolidated Financial Statements~~

~~June 30, 2017~~

~~(expressed in thousands of U.S. dollars unless otherwise indicated)~~

~~New accounting pronouncements which may affect future reporting~~

~~In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)~~.” The amendments in ASU 2014-09 affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards (~~e.g.,~~ insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606, Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of the promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. We have reviewed our contracts as well as our procedures and do not anticipate any changes in the manner or timing with which we reflect our revenues.

~~In January 2016, the FASB issued ASU 2016-1,~~ ~~Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825)~~. The amendments in this ASU supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments also require enhanced disclosures about those investments. The amendments improve financial reporting by providing relevant information about an entity’s equity investments and reducing the number of items that are recognized in other comprehensive income. This guidance is effective for annual reporting beginning after December 15, 2017, including interim periods within the year of adoption, and calls for prospective application, with early application permitted. Accordingly, the standard is effective for us beginning in the first quarter of fiscal 2018. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~Leases (Topic 842)~~, which requires lessees to recognize all leases, including operating leases, unless the lease is a short-term lease. ASU 2016-02 also requires additional disclosures regarding leasing arrangements. ASU 2016-02 is effective for interim periods and fiscal years beginning after December 15, 2018, and early application is permitted. Now, the only leases we hold are for vehicles, equipment, and office space in one location. The office lease is the only one which will be in effect as of the date of implementation of the standard. We have gathered the necessary information for proper disclosure of that lease once the ASU is effective. We will continue to monitor any new leases to ensure that we have all the information necessary to handle the transition to the new standard and properly report the transactions. We do not anticipate the new standard will affect our net income materially, but will result in additional fixed assets and the related lease liabilities.

~~Table of Contents~~

~~Ur-Energy Inc.~~

~~Condensed Notes to Unaudited Interim Consolidated Financial Statements~~

~~June 30, 2017~~

~~(expressed in thousands of U.S. dollars unless otherwise indicated)~~

~~New accounting pronouncements which were implemented this year~~

~~In July 2015, the FASB issued ASU No. 2015-11,Inventory~~ ~~(Topic 330): Simplifying the Measurement of Inventory~~. ASU 2015-11 requires that inventory within the scope of this ASU be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments apply to all inventory, measured using average cost which is how the Company measures inventory. For all entities, the guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. This is consistent with our past policies and had no financial or reporting impact when implemented during the first quarter.

~~In March 2016, the FASB issued ASU No. 2016-09,~~ ~~Compensation-Stock Compensation - Improvements to Employee Share-Based Payment Accounting (Topic 718)~~, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. Regarding forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period. We currently recognize no income tax expense or benefit due to significant income tax credits and net operating losses which are fully reserved under a valuation allowance. There was therefore no effect on our accounting or reporting at the time of implementation earlier this year. We have made the election to continue to recognize losses from forfeitures at inception rather than when they vest or occur.

~~In November 2016, the FASB issued ASU No. 2016-18,~~ ~~Statement of Cash Flows – Restricted Cash a consensus of the FASB Emerging Task Force (Topic 230)~~, which addresses the presentation of restricted cash in the statement of cash flows. Under the new standard, restricted cash will be presented with cash and cash equivalents in the statement of cash flows instead of being reflected as non-cash investing or financing activities. A reconciliation of the make-up of the ending cash, cash equivalent and restricted cash balance will be required for entities who reflect restricted cash as separate items on the statement of financial position. In addition, a description of the restrictions on the cash will be required. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period, however early adoption is permitted. We elected to adopt this standard as of the first quarter. Accordingly, the cash balances reflected in the Statement of Cash Flows have been increased by $7.6 million which has been the restricted cash balance since December 31, 2015. In addition, we have added note 14 – Supplemental Information to the Statement of Cash Flows which reconciles the cash balances shown on the Statement of Cash Flows with the appropriate balances on the Balance Sheet.

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~~Ur-Energy Inc.~~

~~Condensed Notes to Unaudited Interim Consolidated Financial Statements~~

~~June 30, 2017~~

~~(expressed in thousands of U.S. dollars unless otherwise indicated)~~

~~3.Cash and Cash Equivalents~~
4.
Cash and Cash Equivalents

The Company’s cash and cash equivalents consist of the following:


	As at
	September 30, 2017	December 31, 2016
	$	$

			As at
			June 30, 2020	December 31, 2019
			$	$
Cash on deposit at banks	1,704	580	1,518	1,755
Money market funds	442	972	4,049	5,997

	2,146	1,552

			5,567	7,752

~~4.Accounts Receivable~~

~~The Company’s accounts receivable consist of the following:~~

As at

September 30, 2017

December 31, 2016

$

$
Trade accounts receivable

Company A
7,821

-
Other Companies
64

9
Total trade receivables
7,885

9
Other receivables
12

7

Total accounts receivable
7,897

16

~~The names of the individual companies have not been disclosed for reasons of confidentiality.~~

~~5. Inventory~~

~~The Company’s inventory consists of the following:~~

As at

September 30, 2017

December 31, 2016

$

$
In-process inventory
221

897
Plant inventory
824

461
Conversion facility inventory
675

2,751

1,720

4,109

108

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Ur-Energy Inc.

Condensed Notes to Unaudited Interim Consolidated Financial Statements

June 30, ~~2017~~2020

(expressed in thousands of U.S. dollars unless otherwise indicated)

5. Inventory

The Company’s inventory consists of the following:


	As at
	June 30, 2020	December 31, 2019
	$	$
In-process inventory	-	-
Plant inventory	138	-
Conversion facility inventory	7,347	7,426
	7,485	7,426
Inventory to be sold within 12 months	7,485	-
Total Inventory	-	7,426

In conjunction with our lower of cost or net realizable value (“NRV”) calculations, the Company reduced the inventory valuation by ~~$1,326~~$4,456 and $10,263 for the ~~quarter and $2,219 for the nine~~six months ended ~~September~~June 30, ~~2017.~~2020 and year ended December 31, 2019, respectively.

6.Restricted Cash

The Company’s restricted cash consists of ~~the following:~~money market accounts and short-term government bonds.

As at

September 30, 2017

December 31, 2016

$

$

Money market account
7,457

7,457
Certificates of deposit
100

100

7,557

7,557

The bonding requirements for reclamation obligations on various properties have been agreed to by the Wyoming Department of Environmental Quality (“WDEQ”), the Wyoming Uranium Recovery Program (“URP”) and the Bureau of Land Management (“BLM”~~) and the Nuclear Regulatory Commission (“NRC”~~) as applicable. The restricted money market accounts are pledged as collateral against performance surety bonds which are used to secure the potential costs of reclamation related to those properties. Surety bonds providing ~~$27.1~~$29.9 million of coverage towards specific reclamation obligations are collateralized by ~~$7.5 million of~~ the restricted cash at ~~September~~June 30, ~~2017.~~2020.

7. ~~Mineral Properties~~

~~The Company’s mineral properties consist of the following:~~

Lost Creek

Pathfinder

Other US

Property

Mines

Properties

Total

$

$

$

$
Balance, December 31, 2016
14,016

19,866

13,147

47,029

Acquisition costs
-

-

10

10
Change in estimated reclamation costs (note 11)
613

(165)

-

448
Amortization
(2,216)

-

-

(2,216)

Balance, September 30, 2017
12,413

19,701

13,157

45,271

119

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Ur-Energy Inc.

Condensed Notes to Unaudited Interim Consolidated Financial Statements

June 30, ~~2017~~2020

(expressed in thousands of U.S. dollars unless otherwise indicated)

7. Mineral Properties

The Company’s mineral properties consist of the following:


	Lost Creek	Pathfinder	Other U.S.
	Property	Mines	Properties	Total
	$	$	$	$

Balance, December 31, 2019	10,184	19,850	13,178	43,212

Amortization	(1,254)	-	-	(1,254)

Balance, June 30, 2020	8,930	19,850	13,178	41,958

Lost Creek Property

The Company acquired certain Wyoming properties in 2005 when Ur-Energy USA Inc. purchased 100% of NFU Wyoming, LLC. Assets acquired in this transaction include the Lost Creek Project, other Wyoming properties and development databases. NFU Wyoming, LLC was acquired for aggregate consideration of $20 million plus interest. Since 2005, the Company has increased its holdings adjacent to the initial Lost Creek acquisition through staking additional claims and additional property purchases and leases.

There is a royalty on each of the State of Wyoming sections under lease at the Lost Creek, LC West and EN Projects, as required by law. Other royalties exist on certain mining claims at the LC South, LC East and EN Projects. Currently, there are no royalties on the mining claims in the Lost Creek, LC North or LC West Projects.

Pathfinder Mines

The Company acquired additional Wyoming properties when Ur-Energy USA Inc. closed a Share Purchase Agreement (“SPA”) with an AREVA Mining affiliate in December 2013. Under the terms of the SPA, the Company purchased Pathfinder Mines Corporation (“Pathfinder”) to acquire additional mineral properties. Assets acquired in this transaction include the Shirley Basin mine, portions of the Lucky Mc mine, machinery and equipment, vehicles, office equipment and development databases. Pathfinder was acquired for aggregate consideration of $6.7 million, ~~a 5% production royalty under certain circumstances and~~ the assumption of $5.7 million in estimated asset reclamation obligations and other consideration. ~~At June 30, 2016, the royalty expired and was terminated.~~

~~8.Capital Assets~~

~~The Company’s capital assets consist of the following:~~

As of

As of

September 30, 2017

December 31, 2016

Accumulated

Net Book

Accumulated

Net Book

Cost

Depreciation

Value

Cost

Depreciation

Value

$

$

$

$

$

$

Rolling stock
3,420

3,195

225

3,251

2,966

285
Enclosures
32,991

6,467

26,524

32,991

5,229

27,762
Machinery and equipment
1,262

669

593

1,262

599

663
Furniture, fixtures and leasehold improvements
119

103

16

119

98

21
Information technology
1,157

1,087

70

1,153

1,036

117

38,949

11,521

27,428

38,776

9,928

28,848

1210

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Ur-Energy Inc.

Condensed Notes to Unaudited Interim Consolidated Financial Statements

June 30, ~~2017~~2020

(expressed in thousands of U.S. dollars unless otherwise indicated)

Capital Assets

~~9.Accounts Payable and Accrued Liabilities~~The Company’s capital assets consist of the following:


	As of			As of
	June 30, 2020			December 31, 2019
		Accumulated	Net Book		Accumulated	Net Book
	Cost	Depreciation	Value	Cost	Depreciation	Value
	$	$	$	$	$	$

Rolling stock	3,450	3,340	110	3,452	3,311	141
Enclosures	33,008	11,008	22,000	33,008	10,181	22,827
Machinery and equipment	1,439	847	592	1,426	808	618
Furniture, fixtures and leasehold improvements	119	117	2	119	115	4
Information technology	1,123	1,085	38	1,100	1,072	28
ROU Assets	92	22	70	83	71	12

	39,231	16,419	22,812	39,188	15,558	23,630

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following:



	As at
	September 30, 2017	December 31, 2016
	$	$


			As at
			June 30, 2020	December 31, 2019
			$	$
Accounts payable	862	725	598	523
Payroll and other taxes			1,563	1,483
Severance and ad valorem tax payable	1,328	1,649	94	205
Payroll and other taxes	1,201	1,251

	3,391	3,625

			2,255	2,211

10.

Notes Payable

~~10.Notes Payable~~

On October 15, 2013, the Sweetwater County Commissioners approved the issuance of a ~~$34.0~~$34.0 million Sweetwater County, State of Wyoming, Taxable Industrial Development Revenue Bond (Lost Creek Project), Series 2013 (the “Sweetwater IDR Bond”) to the State of Wyoming, acting by and through the Wyoming State Treasurer, as purchaser. On October 23, 2013, the Sweetwater IDR Bond was issued and the proceeds were in turn loaned by Sweetwater County to Lost Creek ISR, LLC pursuant to a financing agreement dated October 23, 2013 (the “State Bond Loan”). The State Bond Loan calls for payments of interest at a fixed rate of 5.75% per annum on a quarterly basis commencing January 1, 2014. The principal ~~is payable~~was to be paid in 28 quarterly installments commencing January 1, ~~2015 and continuing through~~2015.

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Ur-Energy Inc.

Condensed Notes to Unaudited Interim Consolidated Financial Statements

June 30, 2020

(expressed in thousands of U.S. dollars unless otherwise indicated)

days, two notes payable due within approximately two years and a note payable which will be payable over a period of ~~four years.~~approximately three years (see note 10).

On May 15, 2020, we filed a universal shelf registration statement on Form S-3 with the SEC in order that we may offer and sell, from time to time, in one or more offerings, at prices and terms to be determined, up to $100 million of our Common Shares, warrants to purchase our Common Shares, our senior and subordinated debt securities, and rights to purchase our Common Shares and/or senior and subordinated debt securities. The registration statement became effective May 27, ~~2016,~~2020 for a three-year period. Subsequent to June 30, 2020, we utilized the registration statement for a $4.68 million registered direct offering. See note 17 – Subsequent Event.

On May 29, 2020, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with ~~MLV & Co. LLC and~~B. Riley FBR, ~~Capital Markets & Co.~~Inc., ~~as amended August 2017,~~ under which we may, from time to time, issue and sell ~~Common Shares~~common shares at market prices on the NYSE American ~~or other U.S. market~~LLC through the ~~distribution agents~~Agent for aggregate sales proceeds of up to $10,000,000. ~~During 2017, we~~The Sales Agreement replaces the prior At Market Issuance Sales Agreement entered into by the Company on May 27, 2016, as amended. We have ~~sold 1,536,169 Common Shares under~~not used the ~~sales agreement at an average price of $0.76 per share for gross proceeds of $1.2 million. After deducting transaction fees and commissions we received net proceeds of $1.1 million.~~facility in 2020.

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~~Ur-Energy Inc.~~

~~Condensed Notes to Unaudited Interim Consolidated Financial Statements~~

~~June 30, 2017~~

~~(expressed in thousands of U.S. dollars unless otherwise indicated)~~

Sensitivity analysis

The Company has completed a sensitivity analysis to estimate the impact that a change in interest rates would have on the net loss of the Company. This sensitivity analysis shows that a change of +/- 100 basis points in interest rate would have a negligible effect on either the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2020 or the comparable ~~nine~~six months in ~~2016.~~2019. The financial position of the Company may vary at the time that a change in interest rates occurs causing the impact on the Company’s results to differ from that shown above.

17.

Subsequent Event

On July 31, 2020, the Company announced a $4.68 million registered direct offering of 9,000,000 common shares and accompanying one-half common share warrants to purchase up to 4,500,000 common shares, at a combined public offering price of $0.52 per common share and accompanying warrant, with gross proceeds to the Company of $4.68 million. After estimated fees and expenses of approximately $0.4 million, net proceeds to the Company are expected to be $4.3 million. The common share warrants will expire two years from the date of issuance and will allow the holders to purchase our common shares at an exercise price of $0.75 per whole common share. Closing of the offering is expected to occur on or about August 4, 2020.

2220

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Ur-Energy Inc.

Condensed Notes to Unaudited Interim Consolidated Financial Statements

June 30, 2020

(expressed in thousands of U.S. dollars unless otherwise indicated)

As the warrants are priced in US$ and the functional currency of Ur-Energy Inc. is Cdn$, this will create a derivative financial liability. The fair value of the liability will be created and adjusted quarterly using the Black-Scholes technique described herein as there is no active market for the warrants. Any income or loss will be reflected in net income for the period. We anticipate that the public offering proceeds will be used to sustain operations, and for working capital and general corporate purposes.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Business Overview

The following discussion is designed to provide information that we believe is necessary for an understanding of our financial condition, changes in financial condition and results of our ~~operations.~~operations, and provides information through July 31, 2020. The following discussion and analysis should be read in conjunction with the MD&A contained in our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2019.

Incorporated on March 22, 2004, Ur-Energy is an exploration stage mining company, as that term is defined in SEC Industry Guide 7. We are engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development and operation of uraniummineral properties in the ~~United States.~~U.S. We are operating our first in situ recovery uranium mine at our Lost Creek Project in Wyoming. Ur-Energy is a corporation continued under the Canada Business Corporations Act on August 8, 2006. Our Common Shares are listed on the TSX under the symbol “URE” and on the NYSE American under the symbol “URG.”

Ur-Energy has one wholly-owned subsidiary: Ur-Energy USA Inc., incorporated under the laws of the State of Colorado. Ur-Energy USA Inc. has three wholly-owned subsidiaries: NFU Wyoming, LLC, a limited liability company formed under the laws of the State of Wyoming which acts as our land holding and exploration entity; Lost Creek ISR, LLC, a limited liability company formed under the laws of the State of Wyoming to operate our Lost Creek Project and hold our Lost Creek properties and assets; and Pathfinder Mines Corporation (“Pathfinder”), incorporated under the laws of the State of Delaware, which holds, among other assets, the Shirley Basin and Lucky Mc properties in Wyoming. Our material U.S. subsidiaries remain unchanged since the filing of our Annual Report on Form 10-K, dated ~~March 3, 2017.~~February 28, 2020.

We utilize in situ recovery (“ISR”) of the uranium at our flagship project, Lost Creek, and will do so at other projects where possible. The ISR technique is employed in uranium extraction because it allows for an effective recovery of roll front uranium mineralization at a lower cost. At Lost Creek, we extract and process uranium oxide (“U₃O₈”)for shipping to a third-party conversion facility ~~for further processing, storage~~to be weighed, assayed and ~~sales.~~stored until sold.

Our Lost Creek processing facility, which includes all circuits for the production, drying and packaging of uranium for delivery into sales, is designed and anticipated under current licensing to process up to one million pounds of U₃O₈ annually from the Lost Creek mine. The processing facility has the physical design capacity to process two million pounds of U₃O₈ annually, which provides additional capacity to process material from other sources. We expect that the Lost Creek processing facility may be utilized to process captured U₃O₈ from our Shirley Basin Project. However, the Shirley Basin permit application contemplates the construction of a full processing facility, providing greater construction and operating flexibility as may be dictated by market conditions.

We ~~have multiple~~were contractually committed to sell 200,000 pounds of U₃O₈~~sales agreements in place with various U.S. utilities for the sale of U~~₃O₈ during H1 2020, at ~~mid- and long-term contract pricing.~~an average price of approximately $42 per pound. We entered into purchase agreements for delivery of purchased product into those contractual commitments. The ~~multi-year sales agreements represent~~average cost of the purchases was approximately $26 per pound. We delivered a portion of those 2020 contractual commitments (33,000 pounds) in Q1, and delivered the remaining amount (167,000 pounds) early in Q2. The Q2 sale completed our ~~anticipated~~remaining term commitment obligations.

COVID-19 (Coronavirus)

During the quarter, gathering and other restrictions continued at various levels in Wyoming and Colorado. As certain COVID-19 (Coronavirus) restrictions have changed, we have adapted accordingly. We continue to

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monitor and adhere to State, Federal and public health guidance as it evolves. Our staff continues, thus far, to remain healthy. As previously noted, due to the persistently depressed uranium market, our staff at Lost Creek has been reduced by 67 percent through the reductions in force we have implemented since 2016. This does not include the complete elimination of contract work performed at the site. For our remaining employees at Lost Creek, we have altered certain work and commuting arrangements, implemented physical distancing procedures and other suggested precautions, and continue to assess the developing situation. Similarly, our production at Lost Creek has been intentionally reduced by more than 97 percent since the beginning of 2016. The COVID-19 situation has not yet altered our planned production guidance for 2020 at Lost Creek, which remains at minimal levels, and did not impede our 2020 Q2 sale. Because our existing finished inventory is stored and accounted for at the conversion facility, current COVID-19 restrictions are not expected to impede any future product sales or transfers.

SBA Paycheck Protection Program

In response to the COVID-19 (Coronavirus) pandemic, Congress enacted the CARES Act on March 27, 2020. Among other provisions, it created the Paycheck Protection Program (“PPP”) through ~~2021. These agreements individually do not represent a substantial portion~~the SBA. As an eligible borrower under the program, we worked solely with our primary bank in Littleton, BOKF, to apply for two loans (one for each of our ~~annual projected production,~~subsidiaries with U.S. payroll obligations) to support continuing operations and payroll obligations, and in efforts to avoid further reductions in force or furloughs. Following review of our ~~business is therefore not substantially dependent upon any one~~applications by our lender and the SBA, and having met program requirements, we were approved for both loans by the SBA. The combined loan amount we qualified for under the program was $0.9 million, which we received on April 16, 2020. The Flexibility Act, which became law on June 5, 2020, changes key provisions of the ~~agreements.~~PPP, including maturity of the loans, deferral of loan payments, and forgiveness of PPP loans, with revisions being retroactive to the date of the CARES Act. As well, throughout Q2, the SBA and Department of Treasury (“Treasury”) published additional guidance and rules related to the PPP, which included modifications and clarifications affecting the term of the loans, and the forgiveness process (portion of payroll expenses, allowable non-payroll expenses and application process). Under the current provisions of the program, we anticipate the loans will meet the requirements for forgiveness. See note 10 to the Unaudited Interim Consolidated Financial Statements and discussion under Liquidity Outlook.

U.S. Nuclear Fuel Working Group and Recent Market Changes

On July 12, 2019, the White House issued a “Memorandum on the Effect of Uranium Imports on the National Security and Establishment of the United States Nuclear Fuel Working Group,” through which it established the United States Nuclear Fuel Working Group (the “Working Group”) to develop recommendations for reviving and expanding domestic uranium production. On April 23, 2020, the Working Group, through the Department of Energy (“DOE”), released its report, “Restoring America’s Competitive Nuclear Energy Advantage – A strategy to assure U.S. national security.” Relevant to uranium miners, the recommendations included, first, that the U.S. government make direct purchases of 17 to 19 million total pounds of U₃O₈ proposed to commence in 2020 to replenish the American Assured Fuel Supply uranium reserve. Additionally, it is recommended that a new national uranium reserve be established through DOE’s proposed budgeted purchases for 10 years, beginning in FY2021. If budget appropriations are secured and the program implemented, these purchases would provide direct support to the front end of the fuel cycle and help re-establish our nation’s critical capabilities. As included in the President’s FY2021 Budget Request, during the first year, it is expected that the reserve would directly support the operation of at least two U.S. uranium mines and the sole U.S. conversion facility. The ~~balance~~10-year budget item is for $150 million per year. In July, however, the U.S. House Committee on Appropriations decided not to fund the budget item without obtaining further information from DOE. The Committee directed DOE to submit a plan for the proposed establishment of ~~our Lost Creek production will be sold through spot sales and through additional multi-year agreements.~~

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uranium reserve within six months. There are alternative avenues to appropriations, including through the Senate process; it is not known at this time, however, the actions DOE will pursue.

~~Changes~~

Additionally, the report calls for support of the Department of Commerce (“DOC”) efforts to ~~Board~~extend the Russian Suspension Agreement to protect against future uranium dumping. A lower cap on Russian imports should be considered. Consistent with many of ~~Directors~~the conclusions in the report finding myriad national security concerns, another of the recommendations is that the NRC be permitted to deny imports of nuclear fuel fabricated in Russia or China for national security purposes. In its ground-up approach, the report then recommends a restart of the sole U.S. conversion plant beginning no later than 2022 and produce 6,000 to 7,500 tons of UF6 and thereafter to restart domestic enrichment in or about 2023, with at least 25 percent of material being unobligated. By law, unobligated material must be sourced domestically. At this time, no specific actions as a result of the report have been taken and there can be no certainty of the outcome of the Working Group’s findings and recommendations in terms of how and when the recommendations will be implemented. See additional discussion under Looking Ahead.

~~During~~In the ~~quarter,~~first half of the year, several announcements had an impact on the global uranium market. In March, Cameco announced a temporary suspension of production at its Cigar Lake uranium mine due to concerns over the COVID-19 pandemic. At the same time, processing at the related McClean Lake Mill was suspended. The Cigar Lake suspension has meant that there is no uranium production in Canada. On July 29, Cameco announced its intention to restart production operations at Cigar Lake beginning in September, while acknowledging it will not be able to make up the four months of lost production. In April, Kazatomprom announced its plan to reduce onsite staff to minimum numbers and reduce its production plans for 2020 by approximately 10.4 million pounds U₃O₈. That reduction in operational activities was extended, with a plan subsequently announced to gradually increase mine site staff beginning in August, if safety considerations permit. Also due to the pandemic, Cameco suspended processing at its Port Hope UF₆ conversion facility in April and re-opened the facility in May.

Equity Financing

On July 31, 2020, we announced a $4.68 million registered direct offering of 9,000,000 common shares and accompanying one-half common share warrants to purchase up to 4,500,000 common shares, at a combined public offering price of $0.52 per common share and accompanying warrant, with gross proceeds to the ~~appointment~~Company of ~~Kathy E. Walker~~$4.68 million. After estimated fees and expenses of approximately $0.4 million, net proceeds to ~~our Board of Directors (the “Board”). The appointment was effective September 7, 2017, and expands~~ the ~~size of the Board~~Company are expected to ~~seven.~~ Ms. Walker is the president and chief executive officer of Elm Street Resources Inc., an energy marketing company based in Paintsville, Kentucky. She brings more than 30 years’ experience in various energy-related business endeavorsbe $4.3 million, which are expected to our Board. Ms. Walker holds an MBA from Xavier University. Prior to starting Elm Street Resources, she served as secretary and controller of Agip Coal, USA, a subsidiary of the Italian National Energy Agency ENI. She is currently a member of the National Coal Council and board member of the Kentucky Coal Association; a member of the Kentucky Judicial Campaign Conduct Committee; and a member of the Morehead State University Board of Regents. Previously, Ms. Walker served as the chair of the Energy and Environment transition team for Kentucky Governor Matt Bevin; was a founder and board member of First Security Bank, Lexington, Kentucky and of Great Nations Bank, Norman, Oklahoma.be received on or about August 4, 2020.

Mineral Rights and Properties

We have 12 U.S. uranium properties. Ten of our ~~U.S.~~uranium properties are located in the Great Divide Basin, Wyoming, including Lost Creek. Currently, we control nearly 1,900 unpatented mining claims and three State of Wyoming mineral leases for a total of approximately 37,500 acres ~~(15,530 hectares)~~ in the area of the Lost Creek Property, including the Lost Creek permit area (the “Lost Creek Project” or “Project”), and certain adjoining properties referred to as LC East, LC West, LC North, LC South and EN Project areas (collectively, with the Lost Creek Project, the “Lost Creek Property”). ~~Additionally, in~~In the Shirley Basin, Wyoming, our Shirley Basin Project comprises more than ~~3,500~~3,700 Company-controlled acres. Our Lucky Mc Project holds 1,800 acres in Fremont County, Wyoming. Our Excel gold project holds approximately 2,100 acres of mining claims in Nevada.

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Lost Creek Property

For the ~~nine~~three months ended ~~September~~June 30, ~~2017, contract sales from~~2020, 4,119 pounds of U₃O₈ ~~produced at~~were captured within the Lost Creek ~~totaled 261,000 pounds. The Company also sold 519,000~~plant and 2,892 pounds of ~~purchased~~ U₃O₈_.~~In total, 780,000 pounds~~ were packaged in drums. Our inventory at ~~an average price of $49.09 were sold for revenues of $38.3 million.~~the converter totaled approximately 268,552 at June 30, 2020. The Results of Operations are detailed further below.

~~Development and Operations at Lost Creek~~

Production rates at Lost Creek during the quarter were short of the projected level of 60,000 to 70,000 dried and drummed pounds, however year-to-date production is on track to meet the projected level of 250,000 to 300,000 pounds for the year. We continued to operate Mine Unit 1 (“MU1”) header houses throughout the quarter, and brought online the first of the header houses in Mine Unit 2 (“MU2”), HH2-2, during the quarter. Our limited development plan for 2017 continues with construction work ongoing to develop the first three header houses in MU2. We expect to bring the second MU2 header house online in 2017 Q4, with the third house coming online early in 2018.

~~Regulatory Update~~

Applications for amendment to the Lost Creek licenses and permits were submitted in 2014. The amendments ~~are intended~~seek to include recovery from ~~the KM horizon and to include recovery of~~ the uranium resource in the LC East ~~project~~Project immediately adjacent to the Lost Creek ~~project.~~Project. Reviews by ~~both the NRC~~WDEQ continue to progress. The BLM has completed its review and ~~WDEQ were commenced~~granted approval. We anticipate that all permits and ~~in September 2015, the BLM issued a Notice of Intent to prepare an environmental impact statement~~authorizations for the ~~amendments. We are responding to additional comments from the agencies, as part~~modification of the ~~review process.~~Lost Creek licenses and permits to recover uranium in the LC East Project will be completed in 2020.

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Shirley Basin Project

WDEQ continues with its ~~technical~~ review of our ~~application~~applications for a permit to mine ~~at Shirley Basin, which was submitted in December 2015.~~ Work is well underway on other applications for all necessary authorizations to mine at Shirley Basin. We have monitored the development of the Wyoming “agreement state” program, by which the NRC will delegate its authority for source material licensure and other radiation safety issues to the WDEQ. We understand that the development of the Uranium Recovery Program (“URP”) remains on schedule for full implementation and transition likely occurring in 2018. Based upon that timing, we currently anticipate submitting our application for a source material license for our Shirley Basin toProject. We anticipate the State ~~URP.~~processes to be complete, with necessary permits and authorizations received, in 2020. The BLM has completed its review and granted approval of the project. Additionally, work is well underway on initial engineering evaluations, designs and studies for the development of Shirley Basin operations.

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Results of Operations

U₃O₈ ~~Production~~The following tables provide detailed financial information on our sales, cost of sales, gross profit and ~~Sales~~

~~During the three months ended September 30, 2017, a total of 52,812 pounds of U~~₃O₈ ~~were captured within the Lost Creek plant. 48,336 pounds were packaged in drums and 36,797 pounds of the drummed inventory were shipped to the conversion facility. We sold 289,000 pounds of U~~₃O₈ ~~during the period of which 109,000 pounds were purchased. Inventory,~~ production and ~~sales figures for the Lost Creek Project are presented~~ending inventory as they relate to U₃O₈ pounds.

Reconciliation of Non-GAAP measures with US GAAP financial statement presentation

The U₃O₈ and cost per pound measures included in the following ~~tables. We are presenting the data in the~~ tables for the last four quarters because the nature of our operations is not regularly based on the calendar year. We therefore feel that presenting the last four quarters is a more meaningful representation of operations than comparing comparable periods in the previous year and enables the reader to better perform trend analysis.

~~The cash cost per pound and non-cash cost per pound for produced uranium presented in the following Production Costs and U~~₃O₈ ~~Sales and Cost of Sales tables are non-US GAAP measures. These measures~~ do not have a standardized meaning within US GAAP or a defined basis of calculation. These measures are used by management to assess business performance and determine production and pricing strategies. They may also be used by certain investors to evaluate performance. ~~Please see the tables, below, for reconciliations of these measures to the US GAAP compliant financial measures. Production figures for the Lost Creek Project are as follows:~~

Production and Production Costs

Unit

2017 Q3

2017 Q2

2017 Q1

2016 Q4

2017 YTD

Pounds captured

lb

52,812

65,257

79,340

103,558

197,409

Ad valorem and severance tax

$000

$
119

$
227

$
241

$
247

$
587

Wellfield cash cost (1)

$000

$
743

$
599

$
889

$
864

$
2,231

Wellfield non-cash cost (2)

$000

$
730

$
780

$
776

$
777

$
2,286

Ad valorem and severance tax per pound captured

$/lb

$
2.25

$
3.48

$
3.04

$
2.39

$
2.97

Cash cost per pound captured

$/lb

$
14.07

$
9.18

$
11.20

$
8.34

$
11.31

Non-cash cost per pound captured

$/lb

$
13.82

$
11.95

$
9.78

$
7.50

$
11.55

Pounds drummed

lb

48,336

70,833

74,382

111,049

193,551

Plant cash cost (3)

$000

$
1,120

$
1,270

$
1,488

$
1,336

$
3,878

Plant non-cash cost (2)

$000

$
493

$
491

$
491

$
493

$
1,475

Cash cost per pound drummed

$/lb

$
23.17

$
17.93

$
20.00

$
12.03

$
20.04

Non-cash cost per pound drummed

$/lb

$
10.20

$
6.93

$
6.61

$
4.44

$
7.63

Pounds shipped to conversion facility

lb

36,797

74,406

72,643

98,775

183,846

Distribution cash cost (4)

$000

$
24

$
26

$
47

$
68

$
97

Cash cost per pound shipped

$/lb

$
0.65

$
0.35

$
0.65

$
0.69

$
0.53

Pounds purchased

lb

109,000

210,000

200,000

-

519,000

Purchase costs

$000

$
2,196

$
4,870

$
4,015

$
-

$
11,081

Cash cost per pound purchased

$/lb

$
20.15

$
23.19

$
20.08

$
-

$
21.35

~~Table of Contents~~

~~Notes:~~

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.

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.

~~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 U~~₃O₈ ~~prior to sale.~~

Production levels during the current quarter continued to decline, reflecting our deliberate restriction of production in light of the persistently weak uranium market. Total production costs, which have remained relatively consistent in the past, decreased nearly five percent in 2017 Q3 compared to Q2 and 18% compared to Q1. The decrease resulted from a combination of certain non-recurring charges not being repeated and the previously announced cost reduction efforts.

Pounds captured decreased 12,445 pounds from 2017 Q2 as the first header house in MU2 started up during the period and did not significantly impact the total production for the quarter. Total wellfield costs decreased $14 thousand during the quarter. Ad valorem and severance taxes decreased due to lower production rates and year-to-date tax adjustments. Non-cash costs decreased due to certain reclamation assets becoming fully depreciated during the quarter. Wellfield cash costs increased during the quarter due to higher labor costs as several positions in wellfield operations that had been open for some time were filled and because Q2 included one-time health insurance premium credits. In addition, wellfield personnel were working additional hours to complete the scheduled work on Mine Unit 2, which contributed to the increase. Because of the decrease in production, the wellfield cash cost per pound captured increased $4.89 per pound in 2017 Q3. Wellfield non-cash costs are generally fixed. Although wellfield non-cash costs decreased during the quarter, the related wellfield non-cash cost per pound captured still increased $1.87 per pound because of the decrease in pounds captured.

Pounds drummed decreased 22,497 pounds in 2017 Q3. Total plant costs decreased $148 thousand during the quarter. All of the decrease was in plant cash costs. Plant cash costs were lower in Q3 because of lower consumables costs and a major repair cost in Q2. Because of the significant decrease in pounds drummed, the plant cash cost per pound drummed increased $5.24 per pound during the quarter. Plant non-cash costs are fixed so the related plant non-cash cost per pound drummed increased $3.27 per pound because of the decrease in pounds drummed.

Pounds shipped decreased 37,609 pounds in 2017 Q3, which included one shipment. There were two shipments in Q2. Distribution costs in 2017 Q3 were slightly lower than the previous quarter with lower shipping costs partially offset by higher conversion facility fees . The distribution cash cost per pound increased $0.30 per pound shipped during the quarter due to shipping fewer pounds.

~~Table of Contents~~

Sales and cost of sales

Unit

2017 Q3

2017 Q2

2017 Q1

2016 Q4

2017 YTD

Pounds sold

lb

289,000

241,000

250,000

100,000

780,000

U3O8 sales

$000

$
11,674

$
11,797

$
14,819

$
3,270

$
38,290

Average contract price

$/lb

$
40.39

$
48.95

$
59.28

$
32.70

$
49.09

Average price per pound sold

$/lb

$
40.39

$
48.95

$
59.28

$
32.70

$
49.09

U3O8 cost of sales (1)

$000

$
11,157

$
6,573

$
6,295

$
3,082

$
24,025

Ad valorem and severance tax cost per pound sold

$/lb

$
3.15

$
4.26

$
4.00

$
2.98

$
3.44

Cash cost per pound sold

$/lb

$
29.11

$
31.54

$
26.12

$
18.27

$
28.82

Non-cash cost per pound sold

$/lb

$
17.52

$
19.13

$
15.48

$
9.57

$
17.33

Cost per pound sold - produced

$/lb

$
49.78

$
54.93

$
45.60

$
30.82

49.59

Cost per pound sold - purchased

$/lb

$
20.15

$
23.19

$
20.08

$
-

21.35

Average cost per pound sold

$/lb

$
38.61

$
27.26

$
25.18

$
30.82

$
30.80

U3O8 gross profit

$000

$
517

$
5,224

$
8,524

$
188

14,265

Gross profit per pound sold

$/lb

$
1.78

$
21.68

$
34.10

$
1.88

18.29

Gross profit margin

%

4.4%

44.3%

57.5%

5.7%

37.3%

Ending Inventory Balances

Pounds

In-process inventory

lb

22,306

19,010

28,164

29,891

Plant inventory

lb

21,948

10,446

14,019

12,274

Conversion facility inventory

lb

17,813

160,094

113,528

84,689

Total inventory

lb

62,067

189,550

155,711

126,854

Total cost

In-process inventory

$000

$
221

$
352

$
712

$
897

Plant inventory

$000

$
824

$
479

$
670

$
461

Conversion facility inventory

$000

$
675

$
6,620

$
4,379

$
2,751

Total inventory

$000

$
1,720

$
7,451

$
5,761

$
4,109

Cost per pound

In-process inventory

$/lb

$
9.92

$
18.46

$
25.28

$
30.01

Plant inventory

$/lb

$
37.53

$
45.85

$
47.79

$
37.56

Conversion facility inventory

$/lb

$
37.89

$
41.35

$
38.57

$
32.48

~~Notes:~~

~~Cost of sales include all production costs (notes 1, 2, 3 and 4 in the previous Production and Production Cost table) adjusted for changes in inventory values.~~

U₃O₈ sales of $11.7 million for 2017 Q3 were based on selling 289,000 pounds at an average price of $40.39. We did not make any spot sales during the quarter. Of the 289,000 pounds sold, 180,000 were from produced inventory and 109,000 were from purchased U₃O₈~~. For the quarter, our cost of sales totaled $11.1 million at an average cost of $38.61 per pound.~~

On a cash basis, the average cost per pound sold was $27.69, which yielded average cash margins of $12.70 per pound and generated cash gross profits of $3.7 million during the quarter. The average cash cost per pound

~~Table of Contents~~

sold was composed of produced and purchased pounds. The cash cost per produced pound sold was $32.26, including ad valorem and severance taxes, and the cash cost per purchased pound sold was $20.15.

Due to our low production volumes, we have been experiencing lower of cost or net realizable value adjustments, which totaled $1.3 million for the quarter. These costs are included in our cost of sales for the period and reduced the reported gross profit for the period. Total gross profit was $0.5 million, or approximately 4%.

~~At the end of the quarter, we had approximately 17,813 pounds of U~~₃O₈ at the conversion facility at an average cost per pound of $37.89, which reflects the net realizable value of the product at that location. We intend to sell this product into our lowest priced, 2018 term contract in January. While this assumption did increase the non-cash, net realizable value adjustment for the quarter, it will also lower the actual cash paid out for 2018 severance and ad valorem taxes, which are based on the sales value of the product.

~~The following table shows the average cost per pound of the conversion facility pounds.~~

Ending Conversion Facility Inventory
Cost Per Pound Summary

Unit
30-Sep-17

30-Jun-17

31-Mar-17

31-Dec-16
Ad valorem and severance tax cost per pound

$/lb

$
2.41

$
2.82

$
2.74

$
2.72
Cash cost per pound

$/lb

$
22.47

$
24.62

$
23.48

$
19.44
Non-cash cost per pound

$/lb

$
13.01

$
13.91

$
12.35

$
10.32
Total cost per pound

$/lb

$
37.89

$
41.35

$
38.57

$
32.48

Generally, the cost per pound in ending inventory at the conversion facility increased during recent quarters. The increase was directly related to the lower production rates as production costs were relatively consistent during the periods and decreased in the most recent quarter. The increase also relects our deliberate restriction of production considering the persistently weak uranium market. While the cost per pound is higher than the current spot market price, it is projected to be sold into existing term contracts at prices greater than the current carrying amount. The cost per pound declined this quarter because the estimated sales price used in the net realizable value calculation was based on selling the 17,813 pounds into an upcoming lower-priced sales contract.

~~Reconciliation of Non-GAAP sales and inventory presentation with US GAAP statement presentation~~

As discussed above, the cash costs, non-cash costs and per pound calculations are non-US GAAP measures we use to assess business performance. To facilitate a better understanding of these measures, the tables below present aWhere applicable, reconciliation of these measures to US GAAP financial statement presentation are included within the ~~financial results as presented in our financial statements.~~respective table.

~~Table of Contents~~

Average Price Per Pound Sold Reconciliation

Unit

2017 Q3

2017 Q2

2017 Q1

2016 Q4

2017 YTD

Sales per financial statements

$000

$
11,693

$
11,821

$
14,828

$
5,776

$
38,342
Less disposal fees

$000

$
(18)

$
(24)

$
(9)

$
(8)

$
(51)
Less revenue from sale of deliveries under contract

$000

$
-

$
-

$
-

$
(2,498)

$
-
U₃O₈ sales

$000

$
11,675

$
11,797

$
14,819

$
3,270

$
38,291

Pounds sold - produced

lb

180,000

31,000

50,000

100,000

261,000
Pounds sold - purchased

lb

109,000

210,000

200,000

-

519,000
Total pounds sold

lb

289,000

241,000

250,000

100,000

780,000

Average price per pound sold

$/lb

$
40.40

$
48.95

$
59.28

$
32.70

$
48.09

Sales


	Unit	2020 Q2		2020 Q1		2019 Q4		2019 Q3		YTD 2020

U₃O₈ Sales Reconciliation ⁽¹⁾

Sales per financial statements	$000	$	6,934	$	1,370	$	10,849	$	5,115	$	8,304
Less disposal fees	$000	$	(4)	$	-	$	(1)	$	-	$	(4)
U₃O₈ sales	$000	$	6,930	$	1,370	$	10,848	$	5,115	$	8,300
U₃O₈ pounds sold	lb		167,000		33,000		180,000		122,500		200,000
U₃O₈ price per pound sold	$/lb	$	41.50	$	41.52	$	60.26	$	41.76	$	41.50

U₃O₈ Sales by Product

U₃O₈ Sales
Produced	$000	$	-	$	-	$	-	$	-	$	-
Purchased	$000	$	6,930	$	1,370	$	10,848	$	5,115	$	8,300
	$000	$	6,930	$	1,370	$	10,848	$	5,115	$	8,300

U₃O₈ Pounds Sold
Produced	lb		-		-		-		-		-
Purchased	lb		167,000		33,000		180,000		122,500		200,000
	lb		167,000		33,000		180,000		122,500		200,000

U₃O₈ Price per Pounds Sold
Produced	$/lb	$	-	$	-	$	-	$	-	$	-
Purchased	$/lb	$	41.50	$	41.52	$	60.26	$	41.76	$	41.50
	$/lb	$	41.50	$	41.52	$	60.26	$	41.76	$	41.50

Note:

Sales per the financial statements include revenues from disposal fees received at Shirley Basin. The disposal fees do not relate to U₃O₈ pounds sold and are excluded from the U₃O₈sales and U₃O₈price per pound sold figures.

The Company delivers U₃O₈ to a conversion facility and receives credit for a specified quantity measured in pounds once the product is confirmed to meet the required specifications. When a delivery is approved, the Company notifies the conversion facility with instructions for a title transfer to the customer. Revenue is recognized once a title transfer of the U₃O₈ is confirmed by the conversion facility.

In March 2016, the Company assigned its 2016 contractual delivery obligations under two of its sales contracts to a natural resources trading company in exchange for a cash payment of $5.1 million. The first delivery occurred in 2016 Q3 while the second occurred in 2016 Q4. The Company reflects the payment as revenue when the related deliveries under the contracts are settled. Accordingly, the Company recognized the revenue in the respective quarters as shown above.

3026

Table of Contents

Total Cost Per Pound Sold
Reconciliation 1

Unit

2017 Q3

2017 Q2

2017 Q1

2016 Q4

2017 YTD

Ad valorem & severance taxes

$000

$
119

$
227

$
241

$
247

$
587
Wellfield costs

$000

$
1,473

$
1,379

$
1,665

$
1,641

$
4,517
Plant and site costs

$000

$
1,614

$
1,761

$
1,979

$
1,829

$
5,354
Distribution costs

$000

$
24

$
26

$
47

$
68

97
Inventory change

$000

$
5,731

$
(1,690)

$
(1,652)

$
(703)

$
2,389
Cost of sales - produced

$000

$
8,961

$
1,703

$
2,280

$
3,082

$
12,944
Cost of sales - purchased

$000

$
2,196

$
4,870

$
4,015

$
—

11,081
Total cost of sales

$000

$
11,157

$
6,573

$
6,295

$
3,082

24,025

Pounds sold produced

lb

180,000

31,000

50,000

100,000

261,000
Pounds sold purchased

lb

109,000

210,000

200,000

—

519,000
Total pounds sold

lb

289,000

241,000

250,000

100,000

780,000

Average cost per pound sold - produced (1)

$/lb

$
49.78

$
54.93

$
45.60

$
30.82

$
49.59
Average cost per pound sold - purchased

$/lb

$
20.15

$
23.19

$
20.08

$
-

$
21.35
Total average cost per pound sold

$/lb

$
38.61

$
27.27

$
25.18

$
30.82

$
30.80

In 2020 Q2, we sold 167,000 purchased pounds under a term contract at an average price of $41.50 per pound. There were no sales of produced inventory in the first six months and we do not anticipate any sales of produced inventory in 2020.

Cost of Sales


	Unit	2020 Q2		2020 Q1		2019 Q4		2019 Q3		YTD 2020

U₃O₈ Cost of Sales Reconciliation ⁽¹⁾

Cost of sales per financial statements	$000	$	6,517	$	3,105	$	6,451	$	7,515	$	9,622
Lower of cost or NRV adjustment	$000	$	(2,174)	$	(2,282)	$	(2,074)	$	(4,087)	$	(4,456)
U₃O₈ cost of sales	$000	$	4,343	$	823	$	4,377	$	3,428	$	5,166
U₃O₈ pounds sold	lb		167,000		33,000		180,000		122,500		200,000
U₃O₈ cost per pound sold	$/lb	$	26.01	$	24.94	$	24.31	$	27.98	$	25.83

U₃O₈ Cost of Sales by Product

U₃O₈ Cost of Sales
Ad valorem and severance taxes	$000	$	6	$	3	$	22	$	(14)	$	9
Wellfield cash costs	$000	$	154	$	128	$	158	$	210	$	282
Wellfield non-cash costs	$000	$	557	$	618	$	611	$	611	$	1,175
Plant cash costs	$000	$	1,064	$	910	$	898	$	1,045	$	1,974
Plant non-cash costs	$000	$	490	$	490	$	494	$	490	$	980
Distribution costs	$000	$	(3)	$	-	$	26	$	12	$	(3)
Inventory change	$000	$	(2,268)	$	(2,149)	$	(2,209)	$	(2,354)	$	(4,417)
Produced	$000	$	-	$	-	$	-	$	-	$	-
Purchased	$000	$	4,343	$	823	$	4,377	$	3,428	$	5,166
	$000	$	4,343	$	823	$	4,377	$	3,428	$	5,166

U₃O₈ Pounds Sold
Produced	lb		-		-		-		-		-
Purchased	lb		167,000		33,000		180,000		122,500		200,000
	lb		167,000		33,000		180,000		122,500		200,000

U₃O₈ Cost per Pound Sold
Produced	$/lb	$	-	$	-	$	-	$	-	$	-
Purchased	$/lb	$	26.01	$	24.94	$	24.31	$	27.98	$	25.83
	$/lb	$	26.01	$	24.94	$	24.31	$	27.98	$	25.83

Note:

Cost of sales per the financial statements include lower of cost or net realizable value (“NRV”) adjustments. The NRV adjustments do not relate to U₃O₈ pounds sold and are excluded from the U₃O₈ cost of sales and U₃O₈ cost per pound sold reflects both cash and non-cash costs, which are combined as cost of sales in the statement of operations included in this filing. The cash and non-cash cost components are identified in the above inventory, production and sales table.

figures.

~~The cost~~Cost of sales per the financial statements includes ad valorem and severance taxes related to the extraction of uranium, all costs of wellfield ~~plant~~ and ~~site~~plant operations including the related depreciation and amortization of capitalized assets, reclamation and mineral property costs, plus product distribution costs. These costs are also used to value ~~inventory and the~~inventory. The resulting inventoried cost per pound is compared to the ~~estimated sales prices~~NRV of the product, which is based on the ~~contracts or spot~~estimated sales ~~anticipated for the distribution~~price of the product, net of any necessary costs to finish the product. Any ~~costs~~

Table of Contents

inventory value in excess of the ~~calculated market value are~~NRV is charged to cost of ~~sales.~~sales per the financial statements. These NRV adjustments are excluded from the U₃O₈ cost of sales and U₃O₈ cost per pound sold figures because they relate to the pounds of U₃O₈ in ending inventory and do not relate to the pounds of U₃O₈ sold during the period.

Production costs attributed to inventory increased six percent from the previous quarter. Following another particularly harsh winter limiting access to the site, seasonal field and maintenance projects were undertaken at Lost Creek in Q2. As a result, labor and related costs increased during the quarter. Ad valorem and severance taxes increased due to higher dryer volumes. Wellfield cash costs increased 20 percent from 2020 Q1 due to increases in labor and supply costs while wellfield non-cash costs decreased slightly from 2020 Q1 due to assets becoming fully depreciated. Plant cash costs increased due to the higher labor and road maintenance costs. Plant non-cash costs were unchanged.

In 2020 Q2, we sold 167,000 pounds of purchased inventory. The 167,000 pounds were purchased at a weighted average cost of $26.01 per pound. There were no sales of produced inventory in the first six months, and therefore, no cost of sales from produced inventory. We do not anticipate any sales of produced inventory in 2020, unless it is advantageous or necessary to do so.

Table of Contents

Gross Profit


	Unit	2020 Q2		2020 Q1		2019 Q4		2019 Q3		YTD 2020

U₃O₈ Gross Profit by Product

U₃O₈ Sales (see Sales Table)
Produced	$000	$	-	$	-	$	-	$	-	$	-
Purchased	$000	$	6,930	$	1,370	$	10,848	$	5,115	$	8,300
	$000	$	6,930	$	1,370	$	10,848	$	5,115	$	8,300

U₃O₈ Cost of Sales (see Cost of Sales Table)
Produced	$000	$	-	$	-	$	-	$	-	$	-
Purchased	$000	$	4,343	$	823	$	4,377	$	3,428	$	5,166
	$000	$	4,343	$	823	$	4,377	$	3,428	$	5,166

U₃O₈ Gross Profit
Produced	$000	$	-	$	-	$	-	$	-	$	-
Purchased	$000	$	2,587	$	547	$	6,471	$	1,687	$	3,134
	$000	$	2,587	$	547	$	6,471	$	1,687	$	3,134

U₃O₈ Pounds Sold
Produced	lb		-		-		-		-		-
Purchased	lb		167,000		33,000		180,000		122,500		200,000
	lb		167,000		33,000		180,000		122,500		200,000

U₃O₈ Gross Profit per Pound Sold
Produced	$/lb	$	-	$	-	$	-	$	-	$	-
Purchased	$/lb	$	15.49	$	16.58	$	35.95	$	13.78	$	15.67
	$/lb	$	15.49	$	16.58	$	35.95	$	13.78	$	15.67

U₃O₈ Gross Profit Margin
Produced	%		-		-		-		-		-
Purchased	%		37.3%		39.9%		59.7%		32.9%		37.8%
	%		37.3%		39.9%		59.7%		32.9%		37.8%

The last produced inventory was sold in 2019 Q2. Since then, all sales have been from purchased inventory. In 2020 Q2, we sold 167,000 pounds of purchased inventory for $41.50 per pound. The pounds were purchased for a weighted average cost of $26.01 per pound. The resulting gross profit was $15.49 per pound.

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U₃O₈ Production


	Unit	2020 Q2		2020 Q1		2019 Q4		2019 Q3		YTD 2020

U₃O₈ Production

Pounds captured	lb		4,119		4,113		5,004		7,256		8,232
Pounds drummed	lb		2,892		1,433		7,116		9,367		4,325
Pounds shipped	lb		-		-		20,643		37,710		-
Pounds purchased	lb		167,000		33,000		180,000		122,500		200,000

Production rates were better than guidance for the quarter. However, we continue to restrict our production in light of the persistently weak uranium market. Pounds captured remained consistent with 2020 Q1. To minimize drying costs, we only dry and package when we have captured enough material for a complete load. As a result, pounds drummed may lag longer and vary from pounds captured more than usual. Pounds drummed increased 1,459 pounds from 2020 Q1. There were no shipments in the quarter as we shipped all available product to the conversion facility in December 2019 and have not drummed enough product in 2020 to justify a shipment.

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Ending Inventory


	Unit	30-Jun-20		31-Mar-20		31-Dec-19		30-Sep-19
U₃O₈ Ending Inventory

Pounds
In-process inventory	lb		9,267		8,304		5,396		8,074
Plant inventory	lb		4,326		1,433		-		13,526
Conversion inventory - produced	lb		219,802		219,802		220,053		199,411
Conversion inventory - purchased	lb		48,750		48,750		48,750		48,750


Value
In-process inventory	$000	$	-	$	-	$	-	$	-
Plant inventory	$000	$	138	$	42	$	-	$	384
Conversion inventory - produced	$000	$	6,079	$	6,082	$	6,250	$	5,721
Conversion inventory - purchased	$000	$	1,268	$	1,209	$	1,176	$	1,252


Cost per Pound
In-process inventory	$/lb	$	-	$	-	$	-	$	-
Plant inventory	$/lb	$	31.90	$	29.31	$	-	$	28.39
Conversion inventory - produced	$/lb	$	27.66	$	27.67	$	28.40	$	28.69
Conversion inventory - purchased	$/lb	$	26.01	$	24.80	$	24.12	$	25.68

Produced conversion inventory detail:
Ad valorem and severance tax	$/lb	$	0.75	$	0.75	$	0.77	$	0.91
Cash cost	$/lb	$	17.48	$	17.49	$	17.95	$	18.28
Non-cash cost	$/lb	$	9.43	$	9.43	$	9.68	$	9.50
	$/lb	$	27.66	$	27.67	$	28.40	$	28.69

At the end of the quarter, we had approximately 268,552 pounds of U₃O₈ at the conversion facility including 219,802 produced pounds at an average cost per pound of $27.66, and 48,750 purchased pounds at an average cost of $26.01 per pound.

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Three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2020 compared to the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2019

The following ~~tables~~table summarize the results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2020 and ~~2016~~2019 (in thousands of U.S. dollars):


	Three months ended September 30,
	2017	2016
	$	$

			Three months ended June 30,
			2020	2019
			$	$
Sales	11,693	12,068	6,934	11,479
Cost of sales	(11,157)	(5,818)	(6,517)	(11,163)
Gross profit	536	6,250	417	316
Exploration and evaluation expense	(560)	(828)	(554)	(490)
Development expense	(1,454)	(1,108)	(343)	(292)
General and administrative expense	(1,070)	(972)	(1,187)	(1,153)
Accretion	(135)	(134)	(143)	(144)
Net profit (loss) from operations	(2,683)	3,208
Net loss from operations			(1,810)	(1,763)
Interest expense (net)	(332)	(474)	(195)	(168)
Warrant mark to market gain	-	5
Loss from equity investment	(5)	(3)
Write-off of equity investment	-	(900)
Warrant mark to market loss			(231)	(105)
Foreign exchange loss	(40)	(6)	(8)	(10)
Other income	57	(27)	17	15
Net income (loss)	(3,003)	1,803

Net loss			(2,227)	(2,031)

Loss per share – basic and diluted	(0.02)	0.01	(0.01)	(0.01)

Revenue per pound sold	40.39	47.36

Total cost per pound sold	38.61	29.09

Gross profit per pound sold	1.78	18.27

U₃O₈ price per pound sold			41.50	43.31

U₃O₈ cost per pound sold			26.01	34.06

U₃O₈ gross profit per pound sold			15.49	9.25

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Nine months ended September 30,

2017

2016

$

$

Sales
38,342

21,529
Cost of sales
(24,025)

(12,767)
Gross profit
14,317

8,762
Exploration and evaluation expense
(2,162)

(2,370)
Development expense
(3,499)

(2,384)
General and administrative expense
(3,748)

(3,796)
Accretion expense
(401)

(399)
Write-off of mineral properties
-

(62)
Net profit (loss) from operations
4,507

(249)
Interest expense (net)
(1,063)

(1,543)
Warrant mark to market gain
-

36
Loss from equity investment
(5)

(5)
Write-off of equity investments
-

(1,089)
Foreign exchange loss
(57)

(279)
Other income
120

15
Net income (loss)
3,502

(3,114)

Income (loss) per share – basic
0.02

(0.02)

Income (loss) per share – diluted
0.02

-

Revenue per pound sold
49.09

40.95

Total cost per pound sold
30.80

27.63

Gross profit per pound sold
18.29

13.32


	Six months ended June 30,
	2020	2019
	$	$

Sales	8,304	16,291
Cost of sales	(9,622)	(16,309)
Gross profit (loss)	(1,318)	(18)
Exploration and evaluation expense	(945)	(1,264)
Development expense	(616)	(458)
General and administrative expense	(2,440)	(3,292)
Accretion expense	(288)	(286)
Net loss from operations	(5,607)	(5,318)
Net interest expense	(327)	(364)
Warrant mark to market gain (loss)	42	(638)
Foreign exchange gain (loss)	7	(28)
Other income	17	15
Net loss	(5,868)	(6,333)

Income per share – basic and diluted	(0.04)	(0.04)

U₃O₈ price per pound sold	41.50	44.94

U₃O₈ cost per pound sold	25.83	33.67

U₃O₈ gross profit per pound sold	15.67	11.27

Sales

We sold 167,000 and 200,000 pounds of U₃O₈ during the three and six months ended June 30, 2020, respectively for an average price of $41.50 per pound. We sold a total of ~~289,000~~265,000 and ~~780,000~~362,500 pounds of U₃O₈ during the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2019 for an average price of ~~$40.39~~$43.31 and ~~$49.09, respectively per pound and 200,000 and 462,000 pounds of U~~₃O₈ ~~during the three and nine months ended September 30, 2016 for an average price of $47.36 and $40.95,~~$44.94, respectively, per pound. The ~~2017~~ sales were all from term ~~contracts~~contracts.

Cost of Sales

Cost of sales per the financial statements includes ad valorem and ~~included 180,000~~severance taxes related to the extraction of uranium, all costs of wellfield and ~~261,000~~plant operations including the related depreciation and amortization of capitalized assets, reclamation and mineral property costs, plus product distribution costs. These costs are also used to value inventory. The resulting inventoried cost per pound is compared to the NRV of the product, which is based on the estimated sales price of the product, net of any necessary costs to finish the product. Any inventory value in excess of the NRV is charged to cost of sales per the financial statements. These NRV adjustments are excluded from the U₃O₈ cost of sales and U₃O₈ cost per pound sold figures because they relate to the pounds of ~~produced~~U₃O₈ in ending inventory and ~~109,000 and 519,000~~do not relate to the pounds of U₃O₈ sold during the period.

All sales in 2020 were from purchased ~~uranium~~product. The weighted average purchase price was $26.01 and $25.83 for the three and ~~nine~~six months, respectively, per pound. In the six months ended ~~September~~June 30, ~~2017, respectively.~~2019, 41 percent of the product sold was from purchased inventory and 59 percent was from produced inventory. The ~~2016 sales consisted~~cost per pound

Table of ~~200,000 and 362,000 pounds delivered under term contracts at $47.36 and $43.77 per pound, respectively, and 100,000 pounds for~~Contents

of the ~~nine month period sold on~~produced inventory was higher than the ~~spot market at $30.75 per pound.~~

~~Cost of Sales~~

~~For~~purchased inventory, which led to the ~~three and nine months ended September 30, 2017, our~~higher average cost per pound sold ~~for produced inventory increased $20.69~~in 2019 of $34.06 and ~~$21.96 compared to the same periods in 2016. These increases are a function of the reduced production volumes discussed above. In 2017, we purchased 109,000 and 519,000 pounds of uranium~~$33.67 per pound for the three and ~~nine month periods at average cost of $20.15 and $21.35 per pound, respectively. Our average~~

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~~cost per pound was $38.61 for the quarter and $30.80 for the nine~~six months ~~ended September 30, 2017, which represents an increase of $9.52 and $3.17 per pound,~~ as compared to 2020.

In the three and ~~nine month periods~~six months ended June 30, 2020, cost of sales per the financial statements included $2.2 million and $4.5 million, respectively, in ~~2016.~~lower of cost or NRV adjustments compared to $2.0 and $4.0 million in the comparable period in 2019.

Gross Profit

~~Our~~The gross profit ~~from~~(loss) per the ~~sale~~financial statements for the three and six months ended June 30, 2020 was a profit of ~~uranium totaled $0.5~~$0.4 million and ~~$14.3~~a loss of $1.3 million, respectively. Excluding the lower of cost or NRV adjustments, the U₃O₈ gross profit was $2.6 million and $0.5 million for the three and ~~nine~~six months, ~~ended September 30, 2017 and represented gross profits of $1.78 and $18.29 per pound, or 4% and 37%~~respectively, which represents gross profit margins ~~respectively. This compares to Q3 2016 where our gross~~of approximately 37 percent and 40 percent. Gross profits ~~totaled $3.7~~exclusive of NRV adjustments of $2.1 million and ~~$6.2~~$4.1 million ~~for~~in the three and ~~nine~~six months ~~and represented gross profits of $18.27 and $13.32 per pound, or 39% and 33%~~ended June 30, 2019, respectively represents gross profit margins ~~respectively.~~

~~We have limited our development activities~~of approximately 21 percent and thereby reduced production in light of the current depressed spot market as discussed in previous filings. While we have taken measures to reduce operating costs, most of our costs are relatively fixed at all production levels, so the reduced production directly relates to the increase in our cost per pound for produced product. One of the largest costs we cannot reduce is our non-cash costs for depreciation and amortization. As we do not have reserves and are therefore an exploration company under the guidelines of the U.S. Securities and Exchange Commission, we cannot use production or mineralization as a basis for calculating depreciation or amortization. As a result, our expense for those items are the same now as they were when our production rate was significantly higher. Currently, these non-cash costs total $1.3 million25 percent. The primary reason for the ~~quarter and $3.8 million for~~lower gross profit margin in 2019 was because it included sales of higher cost produced pounds, which increased the ~~nine months ended September 30, 2017.~~

Because of the fixed nature of our costs, our inventory cost exceeded the net realizable value of the inventory. Accordingly, we reduced the inventory cost by $1.3 million for the quarter and $2.2 million for the nine months. These costs are added to the cost of sales calculations for our produced product for the quarter. Because we only sold 180,000 pounds and 261,000 pounds of produced product for the quarter and nine months ended September 30, 2017, this increased our cost per pound sold ~~of produced uranium by $7.37 for the quarter and $8.50 for the nine months.~~in that year.

The net result is that while our overall production cost per pound has increased, much of that increase is due fixed nature of our costs such as the non-cash amortization of plant and mineral assets, and the inability to adjust the amortization to reflect current production.

Operating Expenses

Total operating expense for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017 were $3.2~~2020 was $2.2 million and ~~$9.8~~$4.3 million, respectively. Operating expenses include exploration and evaluation expense, development expense, ~~and~~ G&A ~~expense.~~expense and accretion. These expenses ~~increased by $0.2~~compare to the three and ~~$0.8~~six month periods ended June 30, 2019, which were $2.1 million and $5.3 million, respectively. The increase for the quarter primarily related to the timing variance of maintenance payments for certain of our federal mining claims, which were paid in the second quarter of this year as compared to being paid in Q3 of last year. Lower labor costs accounted for most of the ~~same periods~~favorable difference for the six month periods. In Q1, after considering uranium market conditions, and other factors including worldwide economic conditions and market reactions to COVID-19, our Board chose to not pay bonus awards for 2019 performance. Our Board may, in ~~2016.~~the future, consider the feasibility of making some payout of the bonus amounts.

Exploration and evaluation expense consists of labor and associated costs of the exploration and evaluation departments as well as land holding and costs including drilling and analysis on properties which have not reached the ~~permitting~~development or operations stage. These expenses were ~~$0.6~~$0.4 million and ~~$2.2~~$0.8 million for the three and ~~nine~~six month periods ended ~~September~~June 30, ~~2017,~~2020, respectively and ~~$0.8~~$0.5 million and ~~$2.4~~$1.3 million for the ~~same~~comparable periods in ~~2016.~~2019. All costs associated with the geology, regulatory compliance and ~~geological information systems~~evaluation departments, as well as the costs incurred on exploration-stage projects as described above, are reflected in this category. The quarterly increase and year-to-date decrease in 2020 are primarily due to the claim maintenance timing difference and the decision to not pay the bonus awards, respectively, as discussed above.

Development expense includes costs incurred at the Lost Creek Project not directly attributable to production activities, including wellfield construction, drilling and development costs. It also includes costs associated with the Shirley Basin ~~and Lucky Mc properties as they are~~which is in a more advanced ~~stage.~~stage and Lucky Mc, which is near the end of reclamation at the historic mine site. Development expenses increased by ~~$0.3~~$0.1 million and ~~$1.1~~$0.2 million during the three and ~~nine~~six months ended June 30, 2020, compared to the same periods in 2019. The increases related to the timing of the claim payments as discussed above and costs associated with completing the licensing of LC East and Shirley Basin.

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~~2016. The increase was primarily related to the limited development activities at MU2, including the drilling and construction activities associated with the first three header houses.~~

G&A expense relates to the administration, finance, investor relations, land and legal functions of the Company and consists principally of personnel, facility and support costs. Total G&A expense decreased $0.9 million for the six months ended June 30, 2020 compared to 2019 but was ~~little changed~~comparable for the three month periods ended June 30. The year-to-date decrease was mainly attributable to the decision to not pay the bonus awards, and ~~nine months ended September 30, 2017 compared to 2016.~~ a reduction in legal and related fees associated with the Section 232 trade action incurred in 2019.

Other Income and Expenses

Net interest expense ~~declined $0.1 and $0.5 million~~remained consistent during the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2020 compared to the prior year. ~~The expense decline was directly attributable to~~In October 2019, the State granted a six-quarter deferral of principal payments ~~reducing~~on the ~~outstanding note balances~~State Bond Loan, so the principal balance did not change significantly.

As a part of the ~~Wyoming state loan~~September 2018 public offering, we sold 13,062,878 warrants priced at $0.01 per warrant. As the warrants are priced in US$ and the ~~payoff in 2016~~functional currency of the ~~RMB loan.~~

~~In 2016,~~Ur-Energy Inc. is Cdn$, this created a derivative financial liability. The fair value of the ~~Company performed~~liability is adjusted quarterly ~~impairment analyses based on~~using the ~~mineralization at~~Black-Scholes technique as there is no active market for the ~~Bootheel property and~~warrants. Any income or loss is reflected in net income for the ~~then current spot price. It determined that impairments reflecting the then current spot price were warranted, which~~period. The revaluation as of June 30, 2020 resulted in a ~~charge~~loss of ~~$0.9~~$0.2 million for the quarter and ~~$1.1~~a gain of less than $0.1 million for the ~~nine months. Upon further analysis, it was determined that the deteriorating market conditions have made the investment not currently economically viable. Therefore,~~six month period ended June 30, 2020, while the ~~ownership interest will continue to be carried by~~revaluation in 2019 resulted in losses for the ~~Company~~three and ~~the related resources retained, the Company wrote off the remaining basis in the investment as~~six month periods ended June 30, 2019 of ~~December 31, 2016.~~$0.1 million and $0.6 million, respectively.

Earnings ~~and Loss~~(loss) per Common Share

The basic ~~earnings (loss)~~and diluted losses per common share for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2020 were ~~($0.02)~~$0.01 and ~~$0.02,~~$0.04, respectively, ~~and~~compared to basic and diluted ~~earnings (loss)~~losses of $0.01 and ~~($0.02) for 2016. The diluted loss~~$0.04 per ~~common~~ share for the ~~three months ended September 30 2017 and the nine months ended September 30, 2016~~same periods in 2019. The diluted losses per common share were equal to the basic ~~loss~~losses per common share ~~due to the anti-dilutive effect of all convertible securities outstanding given that~~as there is no dilution for options, warrants and RSUs when net losses ~~were~~are experienced. For the nine months ended September 30, 2017, there were 909,956 RSUs included in the diluted earnings per share calculations. For the three months ended September 30, 2016, there were 652,961 RSUs included in the diluted earnings. The result was diluted earnings per share of $0.2 and $0.1 for the respective periods. Dilution from options and warrants were not included as the strike price exceeded the then current market price of the Common Shares.

Liquidity and Capital Resources

As of ~~September~~June 30, ~~2017,~~2020, we had cash resources consisting of cash and cash equivalents of ~~$2.1~~$5.6 million, ~~an increase~~a decrease of ~~$0.6~~$2.2 million from the December 31, ~~2016~~2019 balance of ~~$1.5~~$7.8 million. The cash resources consist of Canadian and U.S. dollar denominated deposit accounts and money market funds. We ~~generated $2.8~~used $3.0 million ~~from~~for operating activities during the ~~nine~~six months ended ~~September~~June 30, ~~2017.~~2020. During the same period, we used ~~$0.2~~less than $0.1 million for investing activities, and ~~$2.1~~generated $0.9 million ~~for~~from financing activities.

On October 23, 2013, we closed a $34.0 million Sweetwater County, State of Wyoming, Taxable Industrial Development Revenue Bond financing program (“State Bond Loan”). The State Bond Loan calls for payments of interest at a fixed rate of 5.75% per annum on a quarterly basis which commenced January 1, 2014. The principal iswas to be payable in 28 quarterly installments which commenced January 1, ~~2015 and continue through October 1, 2021.~~2015. The State Bond Loan is secured by all of the assets at the Lost Creek Project. As of ~~September~~June 30, ~~2017,~~2020, the balance of the State Bond Loan was ~~$21.0~~$12.4 million. On October 1, 2019, the Sweetwater County Board of Commissioners and the State of Wyoming approved a six-quarter deferral of principal payments beginning October 1, 2019. As at July 31, 2020, quarterly principal payments are scheduled to resume on April 1, 2021, with two payments falling due within the 12 months from the as at date.

On April 16, 2020, we obtained two SBA PPP loans (one for each of our subsidiaries with U.S. payroll obligations) through the BOKF. The program was a part of the CARES Act enacted by Congress on March 27, 2020 in response to the COVID-19 (Coronavirus) pandemic. The combined loan amount we qualified for was $0.9 million.

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The Flexibility Act, which became law on June 5, 2020, changes key provisions of the PPP, including maturity of the loans, deferral of loan payments, and the forgiveness of the PPP loans, with revisions being retroactive to the date of the CARES Act.

Under the program, as modified by the Flexibility Act and SBA and Treasury rulemakings, the repayment of our loans, including interest, may be forgiven based on eligible payroll, payroll-related, and other allowable costs incurred in a twenty-four-week period following the funding of the loans. To have the full amount of the loans forgiven, the following requirements must be met within that period, and be sufficiently documented in the application for forgiveness:

(1)Spend not less than 60% (previously 75%) of loan proceeds on eligible payroll costs.

(2)Spend the remaining loan proceeds on

(a)additional eligible payroll costs above 60%;

(b)payments of interest on mortgage obligations incurred before February 15, 2020;

(c)rent payments on leases dated before February 15, 2020; and/or

(d)utility payments under service agreements dated before February 15, 2020.

(3)Maintain employee compensation levels (subject to specific program requirements).

For any portion of the loans that is not forgiven, the program provides for an initial deferral of payments based upon the timing of a borrower’s application for forgiveness and SBA’s action on the application up to a maximum of ten months after the use and forgiveness covered period ends (July 30, 2021). Any remaining amount owing on the loan has a two-year maturity (April 16, 2022), unless renegotiated with the lender for up to a five-year term, with an interest rate of one percent per annum. We anticipate the loans will meet the requirements for forgiveness under this program, but at this time we have not yet applied for or received loan forgiveness.

On ~~August 19, 2014,~~May 15, 2020, we filed a universal shelf registration statement on Form S-3 with the SEC in order that we may offer and sell, from time to time, in one or more offerings, at prices and terms to be determined, up to $100 million of our ~~common shares,~~Common Shares, warrants to purchase our Common Shares, our senior and subordinated debt securities, and rights to purchase our Common Shares and/or ~~our~~ senior and subordinated debt securities. The registration statement became effective ~~September 12, 2014.~~May 27, 2020 for a three-year period. Subsequent to June 30, 2020, we utilized the registration statement for a $4.68 million registered direct offering. See note 17 to the Unaudited Interim Consolidated Financial Statements – Subsequent Event, for the details of the offering.

On May ~~27, 2016,~~29, 2020, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with ~~MLV & Co. LLC and~~B. Riley FBR, ~~Capital Markets & Co.~~Inc., ~~as amended August 2017,~~ under which we may, from time to time, issue and sell Common Shares at market prices on the NYSE American or other U.S. market through the ~~distribution agents~~agent for aggregate sales proceeds of up to $10,000,000. ~~During 2017, we~~The Sales Agreement replaces the prior At Market Issuance Sales Agreement entered into by the Company on May 27, 2016, as amended. We have ~~sold 1,536,169 Common Shares under~~not used the ~~sales agreement~~facility in 2020.

On July 31, 2020, the Company announced a $4.68 million registered direct offering of 9,000,000 common shares and accompanying one-half common share warrants to purchase up to 4,500,000 common shares, at ~~an average~~a combined public offering price of ~~$0.76~~$0.52 per common share ~~for~~and accompanying warrant, with gross proceeds to the Company of ~~$1.2~~$4.68 million. After ~~deducting transaction~~estimated fees and ~~commissions we received~~expenses of approximately $0.4 million, net proceeds ~~of $1.1~~to the Company are expected to be $4.3 million.

~~During 2017, a total of 549,952 stock options have been exercised, which has generated $0.3~~Collections from U₃O₈ sales for the six months ended June 30, 2020 totaled $8.3 million.

~~Collections for the nine months from U~~₃O₈ ~~sales totaled $30.5 million.~~

Operating activities ~~generated~~used cash of ~~$2.8~~$3.0 million during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2020 as compared to ~~$5.6~~generating $2.7 million during the same period in ~~2016.~~2019. The ~~net income~~primary reason for the ~~nine months ended September 30, 2017 was $6.6 million greater than~~variance is that 2019

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included sales of existing inventory and 2020 did not. In 2019, we sold 213,750 pounds from inventory that we produced and paid for in 2018. As a result, all 2019 sales proceeds related to the ~~corresponding loss in 2016. At~~produced pounds contributed to cash provided by operating activities for the ~~end~~year. In 2020, all sales were from purchased product and the cost of the ~~third quarter we sold $7.8 million~~purchased pounds reduced the amount of ~~produced uranium, but~~cash provided by operating activities for the ~~proceeds were not received until early October. In 2016, we generated $5.1 million from the assignment of deliveries scheduled for later in 2016 to a uranium trader.~~year.

During the first nine months of 2017, the Company used $3.4 million for principal payments on the Sweetwater debt. This was partially offset by the $1.1 million (net) from the sales of shares under the At Market Issuance Sales Agreement and $0.3 million from the exercise of stock options.

Liquidity Outlook

As at ~~October 25, 2017,~~July 31, 2020, our unrestricted cash position was ~~$9.1~~$4.1 million. ~~In September 2017, we sold 180,000 pounds~~

On July 31, 2020, the Company announced a $4.68 million registered direct offering of ~~uranium for~~9,000,000 common shares and accompanying one-half common share warrants to purchase up to 4,500,000 common shares, at a combined public offering price of $0.52 per common share and accompanying warrant, with gross proceeds to the Company of ~~$7.8~~$4.68 million. After estimated fees and expenses of approximately $0.4 million, net proceeds to the Company are expected to be $4.3 million, which ~~were~~are expected to be received on or about August 4, 2020.

In addition to our cash position and expected registered direct offering net proceeds, our finished, ready-to-sell, conversion facility inventory is immediately realizable, if necessary. While our current cash position should be sufficient to cover our expected expenditures for the remainder of the year, we anticipate selling a significant portion of our existing finished-product inventory in ~~early October. Our next contract sales are scheduled~~2021 at market prices in effect at that time, unless market conditions change, or we choose to ~~take place in early January 2018.~~obtain additional financing.

We expect that any major capital projects will be funded by operating cash flow, cash on hand, sales of existing inventories, and/or additional financing as required. If these cash sources are not sufficient, certain capital projects could be delayed, or alternatively we may need to pursue additional debt or equity financing to which there is no assurance that such financing will be available at all or on terms acceptable to us. We have no immediate plans to issue additional securities or obtain ~~funding other than that which may be required due to the uneven nature of cash flows generated from operations;~~funding; however, we may issue additional debt or equity securities at any time.

Looking ~~ahead~~Ahead

Following multiple announcements of industry production suspensions and reductions earlier this year, U₃O₈ spot prices increased nearly 33 percent to $33 per pound in June. U₃O₈ spot prices have traded between $32 and $34 per pound since April. The production cuts amount to as much as 46 million pounds of primary production on an annualized basis and are expected to widen the supply deficit as global demand continues to grow.

On April 23, 2020, the ~~end~~Working Group released its Plan to Revitalize the Domestic Uranium Mining Industry, which details the steps required to revitalize the domestic uranium mining and broader nuclear industries. As set forth above, the most relevant recommendation for the uranium mining sector is that the U.S. government should make direct purchases of 17 to 19 million total pounds of U₃O₈ to replenish the American Assured Fuel Supply uranium reserve. Additionally, the report recommends the establishment of a national uranium reserve, which is included in the President’s Fiscal Year 2021 Budget Request; during the first year, it is expected that the reserve would directly support the operation of at least two U.S. uranium mines. The budget item is for $150 million per year from FY2021 to FY2030. However, in July the U.S. House Committee on Appropriations decided not to fund the budget item without further information from DOE, for which they directed DOE to submit a plan for the proposed establishment of a uranium reserve within six months of the ~~third quarter~~appropriation bill’s enactment.

Table of ~~2017,~~Contents

Additionally, the ~~average spot price~~report calls for support of U₃O₈,the DOC efforts to extend the Russian Suspension Agreement to protect against future uranium dumping through implementation of a lower cap on Russian imports. Consistent with many of the conclusions in the report finding myriad national security concerns, another of the recommendations is that NRC be permitted to deny imports of nuclear fuel fabricated in Russia or China for national security purposes. In its ground-up approach, the report then recommended a restart of the U.S.’s sole conversion plant and thereafter the restart of domestic enrichment, with reserved amounts for unobligated material, which is material used for national defense needs. By law, unobligated material must be sourced domestically.

In July 2020, Energy Secretary Brouillette told the House Energy and Commerce Subcommittee on Energy that DOE is working to end U.S. reliance on Russia for nuclear fuel. DOE wants to process American-sourced uranium into high-grade fuel at the DOE facility in Portsmouth, Ohio next year. Centrifuges have been moved from DOE’s Oak Ridge laboratories to Portsmouth. Additionally, DOE is working with lawmakers to authorize the creation of the uranium reserve.

On July 30, 2020, U.S. Senator Barrasso, Chairman of the Senate Committee on Environment and Public Works, introduced draft legislation designed to revitalize the country’s nuclear infrastructure. The American Nuclear Infrastructure Act of 2020, as ~~reported~~it is known, includes the authorization for a uranium reserve to fuel America’s nuclear reactors with domestic fuel, among other items to preserve America’s uranium industry. Similar legislation was introduced in the House of Representatives by ~~Ux Consulting Company, LLC~~Representatives Cheney and ~~TradeTech, LLC, was approximately $20.33 per pound. Market fundamentals~~Latta on July 29. The Senate draft legislation is scheduled for a legislative hearing on August 5.

Still, no specific action or remedies have ~~not changed sufficiently~~resulted from the Working Group’s plan at this time and, while the report is strong in its recommendations, there can be no certainty of the final outcome of the Working Group’s findings and recommendations, or the timing and impact of any actions taken in response to ~~warrant~~those findings and recommendations. This includes both the ~~accelerated development~~Congressional budget appropriations process and recently proposed legislation related to the national uranium reserves. The outcome of ~~MU2.~~ these continuing processes and its effects on the U.S. uranium market, therefore, remains uncertain.

We continue to maintain operational readiness at our fully permitted Lost Creek Mine with experienced technical and operational staff and a well-maintained plant. After nearly seven years of production at Lost Creek, we are ~~developing MU2 at a controlled rate as approved by our Board of Directors~~still producing in the first ~~quarter,~~mine unit and the initial three header houses of the second mine unit. Ur-Energy is prepared to rapidly expand uranium production at Lost Creek, to an annualized run rate of one million pounds.

The Lost Creek facility has the constructed and licensed capacity to process up to two million pounds of U₃O₈ per year and the previously reported mineral resources to feed the processing plant for many years to come. A ramp-up of production at Lost Creek will continue with further development in the first two mine units, followed by the ten additional mining areas as defined in the Lost Creek Property Preliminary Economic Assessment, as amended. With future development and construction in mind, our current staff members were retained as having the greatest level of experience and adaptability allowing for an easier transition back to full operations. Lost Creek operations can increase to full production rates in as little as six months following a go decision, simply by developing additional header houses within the fully permitted MU2. Development expenses during this six-month ramp up period are estimated to be approximately $14 million and are almost entirely related to MU2 drilling and header house construction costs.

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We will continue to closely monitor the uranium market and any actions or remedies resulting from the Working Group’s report, DOE’s and DOC’s efforts, or legislative actions which will ~~allow us~~positively impact the uranium production industry. Until such time, we will continue to ~~produce at a level that will satisfy a portion of our term contracts.~~

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~~In March, we implemented a limited reduction in labor force, which will serve~~minimize costs and maximize ‘runway’ to ~~further streamline our~~maintain current operations and ~~is expected~~avoid unnecessary dilution while maintaining the operational readiness needed to ~~reduce our labor costs by approximately $0.8 million per year.~~ramp-up production when called upon.

~~Through September 30, 2017, we sold 780,000 pounds of U~~₃O₈ under contract at an average price of approximately $49 per pound. We purchased 519,000 pounds at an average cost of $21 per pound. The remaining 261,000 pounds were delivered from our produced inventory. We do not anticipate any further sales this year.

~~We expect to bring the second MU2 header house on line in 2017 Q4 and the 2017 Q4 production target for Lost Creek is between 65,000 and 75,000 pounds U~~₃O₈ dried and drummed. Full year 2017 production guidance is unchanged at between 250,000 and 300,000 pounds, but our production rate may be adjusted based on operational matters and other indicators in the market.

~~As at October 25, 2017, our unrestricted cash position was $9.1 million.~~

Transactions with Related Parties

There were no transactions with related parties during the quarter.

Proposed Transactions

As is typical of the mineral exploration, development and mining industry, we will consider and review potential merger, acquisition, investment and venture transactions and opportunities that could enhance shareholder value. Timely disclosure of such transactions is made as soon as reportable events arise.

Critical Accounting Policies and Estimates

We have established the existence of uranium resources at the Lost Creek Property, but because of the unique nature of in situ recovery mines, we have not established, and have no plans to establish, the existence of proven and probable reserves at this project. Accordingly, we have adopted an accounting policy with respect to the nature of items that qualify for capitalization for in situ U₃O₈ mining operations to align our policy to the accounting treatment that has been established as best practice for these types of mining operations.

The development of the wellfield includes injection, production and monitor well drilling and completion, piping within the wellfield and to the processing facility, header houses used to monitor production and disposal wells associated with the operation of the mine. These costs are expensed when incurred.

Mineral Properties

Acquisition costs of mineral properties are capitalized. When production is attained at a property, these costs will be amortized over a period of estimated benefit.

As of ~~September~~June 30, ~~2017,~~2020, the average current spot and ~~long term~~long-term prices of U₃O₈ were ~~$20.33~~$35.50 and ~~$30.50,~~$32.80 respectively. This compares to prices of ~~$20.25~~$24.93 and ~~$30.00~~$32.50 as of December 31, ~~2016. As~~2019. The prices have ~~remained relatively steady~~declined slightly since ~~December 31, 2016 and no other factors~~May primarily based on a lack of volume. The long-term prices have not yet responded to the trend as there have been ~~identified, management has not done any additional impairment testing.~~virtually no transactions in this category.

Development costs including, but not limited to, production wells, header houses, piping and power will be expensed as incurred as we have no proven and probable reserves.

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Inventory and Cost of Sales

Our inventories are valued at the lower of cost and net realizable value based on projected revenues from the sale of that product. We are allocating all costs of operations of the Lost Creek facility to the inventory valuation at various stages of production with the exception of wellfield and disposal well costs which are treated as development expenses when incurred. Depreciation of facility enclosures, equipment and asset retirement obligations as well as amortization of the acquisition cost of the related property is also included in the inventory valuation. We do not allocate any administrative or other overhead to the cost of the product.

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Share-Based Expense

We are required to initially record all equity instruments including warrants, restricted share units and stock options at fair value in the financial statements.

Management utilizes the Black-Scholes model to calculate the fair value of the warrants and stock options at the time they are issued. In addition, the fair value of derivative warrants is recalculated quarterly using the Black-Scholes model with any gain or loss being reflected in the net income for the period. Use of the Black-Scholes model requires management to make estimates regarding the expected volatility of the Company’s stock over the future life of the equity instrument, the estimate of the expected life of the equity instrument and the number of options that are expected to be forfeited. Determination of these estimates requires significant judgment and requires management to formulate estimates of future events based on a limited history of actual results.

~~New accounting pronouncements which may affect future reporting~~

~~In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)~~.” The amendments in ASU 2014-09 affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (~~e.g.,~~ insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606 Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of the promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. We have reviewed our contracts as well as our procedures and do not anticipate any changes in the manner or timing with which we reflect our revenues.

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~~for us beginning in the first quarter of fiscal 2018. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.~~

~~New accounting pronouncements which were implemented this year~~

~~In November 2016, the FASB issued ASU No. 2016-18,~~ ~~Statement of Cash Flows – Restricted Cash a consensus of the FASB Emerging Task Force (Topic 230)~~, which addresses the presentation of restricted cash in the statement of cash flows. Under the new standard, restricted cash will be presented with cash and cash equivalents in the statement of cash flows instead of being reflect as non-cash investing or financing activities. A reconciliation of the make-up of the end ending cash, cash equivalent and restricted cash balance will be required for entities who reflect restricted cash as separate items on the statement of financial position. In addition, a description of the restrictions on the cash will be required. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period, however early adoption is permitted. We elected to adopt this standard as of the first quarter. Accordingly, the cash balances reflected in the Statement of Cash Flows have been increased by $7.6 million which has been the restricted cash balance since December 31, 2015. In addition, we have added note 14 – Supplemental Information to the

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~~Statement of Cash Flows which reconciles the cash balances shown on the Statement of Cash Flows with the appropriate balances on the Balance Sheet.~~

Off Balance Sheet Arrangements

We have not entered into any material ~~off-balance~~off balance sheet arrangements such as guaranteed contracts, contingent interests in assets transferred to unconsolidated entities, derivative instrument obligations, or with respect to any obligations under a variable interest entity arrangement.

Outstanding Share Data

As of ~~October 25, 2017,~~July 31, 2020, we had outstanding ~~146,009,205~~160,478,059 Common Shares and ~~8,330,085~~10,824,785 options to acquire Common Shares.

Item 3. ~~QUANTITAVE~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk

Market risk is the risk to the Company of adverse financial impact due to changes in the fair value or future cash flows of financial instruments as a result of fluctuations in interest rates and foreign currency exchange rates.

Interest rate risk

Financial instruments that expose the Company to interest rate risk are its cash equivalents, deposits, restricted cash and debt ~~financings.~~financing. Our objectives for managing our cash and cash equivalents are to maintain sufficient funds on hand at all times to meet day-to-day requirements and to place any amounts which are considered in excess of day-to-day requirements on short-term deposit with the Company's financial institutions so that they earn interest.

Currency risk

At ~~September~~June 30, ~~2017,~~2020, we maintained a balance of approximately ~~$0.2~~$0.3 million in foreign currency resulting in a low currency risk which is our typical balance.

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Commodity Price Risk

The Company is subject to market risk related to the market price of U₃O₈. We have U₃O₈ supply contracts with pricing fixed or based on inflation factors applied to a fixed base. Additional future sales would be impacted by both spot and long-term U₃O₈ price fluctuations. Historically, U₃O₈ prices have been subject to fluctuation, and the price of U₃O₈ has been and will continue to be affected by numerous factors beyond our control, including the demand for nuclear power, political and economic conditions, and governmental legislation in U₃O₈ producing and consuming countries and production levels and costs of production of other producing companies. The spot market price for U₃O₈ has demonstrated a large range since January 2001. Prices have risen from $7.10 per pound at January 2001 to a high of $136.00 per pound as of September 2007. The spot market price was ~~$20.25~~$32.45 per pound as of ~~October 25, 2017~~July 31, 2020 as reported by ~~TradeTech.~~TradeTech, LLC and UxC, LLC.

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Item 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this MD&A, under the supervision of the Chief Executive Officer and the Chief Financial Officer, the Company evaluated the effectiveness of its disclosure controls and procedures, as such term is defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective to ensure that information the Company is required to disclose in reports that are filed or submitted under the Exchange Act: (1) is recorded, processed and summarized effectively and reported within the time periods specified in SEC rules and forms, and (2) is accumulated and communicated to Company management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. The Company’s disclosure controls and procedures include components of internal control over financial reporting. No matter how well designed and operated, internal controls over financial reporting can provide only reasonable, but not absolute, assurance that the control system's objectives will be met.

(b) Changes inInternal Controls over Financial Reporting

No changes in our internal control over financial reporting occurred during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 1. LEGAL ~~PROCEEDINGS~~PROCEEDINGS

No new legal proceedings or material developments in pending proceedings.

Item 1A. RISK ~~FACTORS~~FACTORS

~~There have been no material changes for the nine months ended September 30, 2017 from those~~In addition to our previously stated risk factors, set forth in our Annual Report on Form ~~10-K.~~10-K, we add the following with respect to COVID-19 (Coronavirus).

COVID-19 (Coronavirus), declared a pandemic in March 2020, has had a significant negative impact on the global economy and commodity and equity markets, and the outlook remains uncertain. Although none of our staff has yet been directly affected, falling ill, the pandemic situation poses risk to our business and operations,

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and could adversely impact our operations, business and financial condition if our employees, regulators, suppliers or other business partners are prevented from conducting routine operations for periods of time. While we are monitoring these conditions including government restrictions on movement and operations, it is impossible to predict the extent of any such impact or the levels of success of responsive actions to impacts, as the circumstances continue to evolve, including in unforeseeable ways. We are a highly-regulated industry and while the regulators are standing by to address operational impacts from illness, governmental restrictions and other effects, it remains uncertain whether all impacts can be timely addressed with our operations and with the regulators. We are and will remain fully engaged with our employees in our efforts to protect their health and safety.

To the extent the COVID-19 (Coronavirus) pandemic may adversely affect our business and financial results as discussed above, it may also have the effect of heightening many of the other risks described under the caption “Risk Factors” in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2019 such as those relating to our ability to access additional capital, which could negatively affect our business. Because of the highly uncertain and dynamic nature of events relating to the COVID-19 pandemic, it is not currently possible to estimate the impact of the pandemic on our business. However, these effects could have a material impact on our operations, and we will continue to monitor the COVID-19 situation closely.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF ~~PROCEEDS~~PROCEEDS

None

Item 3. DEFAULTS UPON SENIOR ~~SECURITIES~~SECURITIES

None

Item 4. MINE SAFETY ~~DISCLOSURE~~DISCLOSURE

Our operations and exploration activities at Lost Creek are not subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977.

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Item 5. OTHER INFORMATION

None

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Item 6. ~~EXHIBITS~~EXHIBITS


		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	Date of Report	Exhibit	Filed Herewith

31.1	Certification of CEO Pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X

31.2	Certification of CFO Pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X

32.1	Certification of CEO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X

32.2	Certification of CFO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X

101.INS*101.INS	Inline XBRL Instance Document				X

101.SCH*101.SCH	Inline XBRL Schema Document				X

101.CAL*101.CAL	Inline XBRL Calculation Linkbase Document				X

101.DEF*101.DEF	Inline XBRL Definition Linkbase Document				X

101.LAB*101.LAB	Inline XBRL Labels Linkbase Document				X

101.PRE*101.PRE	Inline XBRL Presentation Linkbase Document				X

104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)				X

In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act, is deemed not filed for purposes of section 18 of the Exchange Act, and otherwise is not subject to liability under these sections.

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SIGNATURES

~~SIGNATURES~~

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


			UR -ENERGY INC.
	~~UR -ENERGY INC.~~

Date: ~~October 27, 2017~~August 5, 2020	By:	/s/ Jeffrey T. Klenda
		Jeffrey T. Klenda
		Chief Executive Officer
		(Principal Executive Officer)


Date: ~~October 27, 2017~~August 5, 2020	By:	/s/ Roger L. Smith
		Roger L. Smith
		Chief Financial Officer
		(Principal Financial Officer and
		Principal Accounting Officer)


Canada	Not Applicable
State or other jurisdiction of incorporation or organization	(I.R.S. Employer Identification No.)


Title of each class:	Trading Symbol	Name of each exchange on which registered:
Common stock	URG (NYSE American); URE (TSX)	NYSE American; TSX


	As at
	June 30, 2020	December 31, 2019
	$	$
Current debt
SBA - Payroll Protection Program Loan	395	-
State Bond Loan	1,305	-
Less deferred financing costs	(17)	-
	1,683	-

Long term debt
SBA - Payroll Protection Program Loan	498	-
State Bond Loan	11,136	12,441
Less deferred financing costs	(174)	(226)
	11,460	12,215


	As at
	September 30, 2017	December 31, 2016
	$	$
Current debt
Sweetwater County Loan	4,826	4,623
Less deferred financing costs	(122)	(121)
	4,704	4,502

Long term debt
Sweetwater County Loan	16,245	19,891
Less deferred financing costs	(364)	(456)
	15,881	19,435


Debt	Total	2017	2018	2019	2020	2021	Maturity
	$	$	$	$	$	$
Sweetwater County Loan

								Total	2020	2021	2022	2023	Final payment
								$	$	$	$	$
SBA - Payroll Protection Program Loan
Principal	21,071	1,180	4,895	5,183	5,487	4,326	01-Oct-21	893	98	596	199	-	16-Apr-22
Interest	2,666	303	1,039	752	447	125		14	9	5	-	-

State Bond Loan
Principal								12,441	-	3,971	5,566	2,904	01-Apr-23
Interest								1,269	179	659	368	63

Total	23,737	1,483	5,934	5,935	5,934	4,451		14,617	286	5,231	6,133	2,967

Lost Creek Property‌24 Transactions with Related Parties‌37 Critical Accounting Policies and Estimates‌3739 Outstanding Share Data‌40
		Page
		~~Page~~

	PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23 22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	40
Item 4.	Controls and Procedures	41


	PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41 42
Item 3.	Defaults Upon Senior Securities	41
~~Item 4.~~	~~Mine Safety Disclosures~~	41
~~Item 5.~~	~~Other Information~~	42
~~Item 6.~~	~~Exhibits~~	43

~~SIGNATURES~~Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	43

SIGNATURES		44


	September 30,	December 31,
	2017	2016
Assets
Current assets
Cash and cash equivalents (note 3)	2,146	1,552
Accounts receivable (note 4)	7,897	16
Inventory (note 5)	1,720	4,109
Prepaid expenses	812	829
	12,575	6,506
Restricted cash (note 6)	7,557	7,557
Mineral properties (note 7)	45,271	47,029
Capital assets (note 8)	27,428	28,848
	80,256	83,434
	92,831	89,940
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities (note 9)	3,391	3,625
Current portion of notes payable (note 10)	4,704	4,502
Environmental remediation accrual	79	85
	8,174	8,212
Notes payable (note 10)	15,881	19,435
Asset retirement obligations (note 11)	26,910	26,061
	50,965	53,708
Shareholders' equity (note 12)
Share Capital
Class A preferred shares, without par value, unlimited shares authorized; no shares issued and outstanding	-	-
Common shares, without par value, unlimited shares authorized; shares issued and outstanding: 146,009,205 at September 30, 2017, 2017 and 143,676,384 at December 31, 2016	176,653	174,902
Warrants	4,109	4,109
Contributed surplus	15,516	15,201
Accumulated other comprehensive income	3,670	3,604
Deficit	(158,082)	(161,584)
	41,866	36,232
	92,831	89,940


	Three months ended September 30,		Nine months ended September 30,
	2017	2016	2017	2016

Sales (note 13)	11,693	12,068	38,342	21,529
Cost of sales	(11,157)	(5,818)	(24,025)	(12,767)
Gross profit	536	6,250	14,317	8,762

Operating Expenses
Exploration and evaluation	(560)	(828)	(2,162)	(2,370)
Development	(1,454)	(1,108)	(3,499)	(2,384)
General and administrative	(1,070)	(972)	(3,748)	(3,796)
Accretion of asset retirement obligations (note 11)	(135)	(134)	(401)	(399)
Write-off of mineral properties (note 7)	-	-	-	(62)
Income (loss) from operations	(2,683)	3,208	4,507	(249)
Interest expense (net)	(332)	(474)	(1,063)	(1,543)
Warrant mark to market adjustment	-	5	-	36
Loss on equity investment	(5)	(3)	(5)	(5)
Write-off of equity investments	-	(900)	-	(1,089)
Foreign exchange loss	(40)	(6)	(57)	(279)
Other income (expense)	57	(27)	120	15
Net income (loss) for the period	(3,003)	1,803	3,502	(3,114)

Income (loss) per common share
Basic	(0.02)	0.01	0.02	(0.02)
Diluted	(0.02)	0.01	0.02	(0.02)
Weighted average number of common shares outstanding
Basic	145,918,020	143,605,552	145,707,532	141,324,039
Diluted	145,918,020	144,258,513	146,617,488	141,324,039

COMPREHENSIVE INCOME (LOSS)
Net income (loss) for the period	(3,003)	1,803	3,502	(3,114)
Other Comprehensive income (loss), net of tax
Translation adjustment on foreign operations	48	2	66	251
Comprehensive income (loss) for the period	(2,955)	1,805	3,568	(2,863)


					Accumulated
					Other
	Capital Stock			Contributed	Comprehensive		Shareholders'
	Shares	Amount	Warrants	Surplus	Income	Deficit	Equity

	#	$	$	$	$	$	$
Balance, December 31, 2016	143,676,384	174,902	4,109	15,201	3,604	(161,584)	36,232

Exercise of stock options	549,952	518	-	(169)	-	-	349
Common shares issued for cash, net
of $88 of issue costs	1,536,169	1,081	-	-	-	-	1,081
Redemption of vested RSUs	246,700	152	-	(221)	-	-	(69)
Non-cash stock compensation	-	-	-	705	-	-	705
Net income (loss) and comprehensive income (loss)	-	-	-	-	66	3,502	3,568

Balance, September 30, 2017	146,009,205	176,653	4,109	15,516	3,670	(158,082)	41,866


	Lost Creek	Pathfinder	Other US
	Property	Mines	Properties	Total
	$	$	$	$
Balance, December 31, 2016	14,016	19,866	13,147	47,029

Acquisition costs	-	-	10	10
Change in estimated reclamation costs (note 11)	613	(165)	-	448
Amortization	(2,216)	-	-	(2,216)

Balance, September 30, 2017	12,413	19,701	13,157	45,271


	As of			As of
	September 30, 2017			December 31, 2016
		Accumulated	Net Book		Accumulated	Net Book
	Cost	Depreciation	Value	Cost	Depreciation	Value
	$	$	$	$	$	$

Rolling stock	3,420	3,195	225	3,251	2,966	285
Enclosures	32,991	6,467	26,524	32,991	5,229	27,762
Machinery and equipment	1,262	669	593	1,262	599	663
Furniture, fixtures and leasehold improvements	119	103	16	119	98	21
Information technology	1,157	1,087	70	1,153	1,036	117

	38,949	11,521	27,428	38,776	9,928	28,848


	For the period ended
	September 30, 2017	December 31, 2016

	$	$
Beginning of period	26,061	26,061
Change in estimated liability	448	(534)
Accretion expense	401	534

End of period	26,910	26,061


	For the period ended
	June 30, 2020	December 31, 2019

	$	$
Beginning of period	30,972	30,384
Change in estimated liability	-	11
Accretion expense	288	577

End of period	31,260	30,972


		Weighted-
		average
	Options	exercise price
	#	$

Balance, December 31, 2016	9,748,934	0.63

Granted	500,000	0.69
Exercised	(549,952)	0.64
Forfeited	(485,698)	0.64
Expired	(870,434)	0.81

Outstanding, September 30, 2017	8,342,850	0.69


		Weighted-
		average
	Options	exercise price
	#	$

Balance, December 31, 2019	11,076,583	0.64

Forfeited	(51,798)	0.59
Expired	(200,000)	0.84

Outstanding, June 30, 2020	10,824,785	0.61


	Options outstanding			Options exercisable
		Weighted-			Weighted-
		average			average
		remaining	Aggregate		remaining	Aggregate
Exercise	Number	contractual	Intrinsic	Number	contractual	Intrinsic
price	of options	life (years)	Value	of options	life (years)	Value	Expiry
$			$			$

0.61	885,071	0.2	-	885,071	0.2	-	07-Dec-17
0.62	466,441	0.6	-	466,441	0.6	-	25-Apr-18
0.99	100,000	0.8	-	100,000	0.8	-	01-Aug-18
0.96	739,976	1.2	-	739,976	1.2	-	27-Dec-18
1.35	100,000	1.5	-	100,000	1.5	-	31-Mar-19
0.82	777,896	2.2	-	777,896	2.2	-	12-Dec-19
0.91	200,000	2.7	-	200,000	2.7	-	29-May-20
0.69	640,969	2.9	-	640,969	2.9	-	17-Aug-20
0.64	1,088,327	3.2	-	1,088,327	3.2	-	11-Dec-20
0.58	2,844,170	4.2	-	1,534,590	4.2	-	16-Dec-21
0.82	300,000	4.4		96,000	4.4		02-Mar-22
0.58	200,000	4.9	-	0	0.0	-	07-Sep-22

0.69	8,342,850	3.0	-	6,629,270	2.5	-


	Options outstanding			Options exercisable
		Weighted-			Weighted-
		average			average
		remaining	Aggregate		remaining	Aggregate
Exercise	Number	contractual	intrinsic	Number	contractual	intrinsic
price	of options	life (years)	value	of options	life (years)	value	Expiry
$			$			$

0.63	516,902	0.1	-	516,902	0.1	-	17-Aug-20
0.59	897,508	0.4	-	897,508	0.4	-	11-Dec-20
0.54	2,337,434	1.5	-	2,337,434	1.5	-	16-Dec-21
0.75	300,000	1.7	-	300,000	1.7	-	02-Mar-22
0.54	200,000	2.2	-	132,000	2.2	-	07-Sep-22
0.66	1,769,411	2.5	-	1,187,174	2.5	-	15-Dec-22
0.57	200,000	2.7	-	133,333	2.7	-	30-Mar-23
0.68	976,259	3.1	-	339,859	3.1	-	20-Aug-23
0.67	822,768	3.5	-	278,351	3.5	-	14-Dec-23
0.58	2,804,503	4.4	-	-	-	-	05-Nov-24


0.64	10,824,785	2.6	-	6,122,561	2.1	-


	Number	Weighted
	of	average grant
	RSUs	date fair value
		$
Unvested, December 31, 2016	1,273,990	0.60

Vested	(337,380)	0.74
Forfeited	(26,654)	0.58

Unvested, September 30, 2017	909,956	0.60


	Number	Weighted
	of	average grant
	RSUs	date fair value
Balance, December 31, 2019	1,155,928	0.65

Forfeited	(13,433)	0.59

Outstanding, June 30, 2020	1,142,495	0.62


	Number of	Remaining	Aggregate
	unvested	life	Intrinsic
Grant date	RSUs	(years)	Value
			$
December 11, 2015	248,226	0.20	144
December 16, 2016	661,730	1.21	384

	909,956	1.03	528


	Number of	Remaining	Aggregate
	outstanding	life	intrinsic
Grant date	RSUs	(years)	value
			$
August 20, 2018	225,774	0.15	115
December 14, 2018	215,587	0.46	110
November 5, 2019	701,134	1.35	358

	1,142,495	0.94	583


	Number	Number of
	of	shares to be issued	Per share
	warrants	upon exercise	exercise price
Outstanding, December 31, 2019	13,062,878	6,531,439	1.00

Outstanding, June 30, 2020	13,062,878	6,531,439	1.00


	~~Nine months ended September 30,~~
	~~2017~~
~~Expected option life (years)~~	~~3.72-3.74~~
~~Expected volatility~~	~~57%~~
~~Risk-free interest rate~~	~~1.0%-1.6%~~
~~Expected dividend rate~~	0%
~~Forfeiture rate~~	~~5.3%-5.9%~~


	As at
	September 30, 2017	September 30, 2016
	$	$

			As at
			June 30, 2020	June 30, 2019
			$	$
Cash and cash equivalents	2,146	2,961	5,567	6,536
Restricted cash	7,557	7,557	7,463	7,461

	9,703	10,518

			13,030	13,997


Production and Production Costs	Unit	2017 Q3		2017 Q2		2017 Q1		2016 Q4		2017 YTD

Pounds captured	lb		52,812		65,257		79,340		103,558		197,409
Ad valorem and severance tax	$000	$	119	$	227	$	241	$	247	$	587
Wellfield cash cost (1)	$000	$	743	$	599	$	889	$	864	$	2,231
Wellfield non-cash cost (2)	$000	$	730	$	780	$	776	$	777	$	2,286
Ad valorem and severance tax per pound captured	$/lb	$	2.25	$	3.48	$	3.04	$	2.39	$	2.97
Cash cost per pound captured	$/lb	$	14.07	$	9.18	$	11.20	$	8.34	$	11.31
Non-cash cost per pound captured	$/lb	$	13.82	$	11.95	$	9.78	$	7.50	$	11.55

Pounds drummed	lb		48,336		70,833		74,382		111,049		193,551
Plant cash cost (3)	$000	$	1,120	$	1,270	$	1,488	$	1,336	$	3,878
Plant non-cash cost (2)	$000	$	493	$	491	$	491	$	493	$	1,475
Cash cost per pound drummed	$/lb	$	23.17	$	17.93	$	20.00	$	12.03	$	20.04
Non-cash cost per pound drummed	$/lb	$	10.20	$	6.93	$	6.61	$	4.44	$	7.63

Pounds shipped to conversion facility	lb		36,797		74,406		72,643		98,775		183,846
Distribution cash cost (4)	$000	$	24	$	26	$	47	$	68	$	97
Cash cost per pound shipped	$/lb	$	0.65	$	0.35	$	0.65	$	0.69	$	0.53

Pounds purchased	lb		109,000		210,000		200,000		-		519,000
Purchase costs	$000	$	2,196	$	4,870	$	4,015	$	-	$	11,081
Cash cost per pound purchased	$/lb	$	20.15	$	23.19	$	20.08	$	-	$	21.35


Sales and cost of sales	Unit	2017 Q3		2017 Q2		2017 Q1		2016 Q4		2017 YTD

Pounds sold	lb		289,000		241,000		250,000		100,000		780,000
U3O8 sales	$000	$	11,674	$	11,797	$	14,819	$	3,270	$	38,290
Average contract price	$/lb	$	40.39	$	48.95	$	59.28	$	32.70	$	49.09
Average price per pound sold	$/lb	$	40.39	$	48.95	$	59.28	$	32.70	$	49.09

U3O8 cost of sales (1)	$000	$	11,157	$	6,573	$	6,295	$	3,082	$	24,025
Ad valorem and severance tax cost per pound sold	$/lb	$	3.15	$	4.26	$	4.00	$	2.98	$	3.44
Cash cost per pound sold	$/lb	$	29.11	$	31.54	$	26.12	$	18.27	$	28.82
Non-cash cost per pound sold	$/lb	$	17.52	$	19.13	$	15.48	$	9.57	$	17.33
Cost per pound sold - produced	$/lb	$	49.78	$	54.93	$	45.60	$	30.82		49.59
Cost per pound sold - purchased	$/lb	$	20.15	$	23.19	$	20.08	$	-		21.35
Average cost per pound sold	$/lb	$	38.61	$	27.26	$	25.18	$	30.82	$	30.80

U3O8 gross profit	$000	$	517	$	5,224	$	8,524	$	188		14,265
Gross profit per pound sold	$/lb	$	1.78	$	21.68	$	34.10	$	1.88		18.29
Gross profit margin	%		4.4%		44.3%		57.5%		5.7%		37.3%

Ending Inventory Balances
Pounds
In-process inventory	lb		22,306		19,010		28,164		29,891
Plant inventory	lb		21,948		10,446		14,019		12,274
Conversion facility inventory	lb		17,813		160,094		113,528		84,689
Total inventory	lb		62,067		189,550		155,711		126,854

Total cost
In-process inventory	$000	$	221	$	352	$	712	$	897
Plant inventory	$000	$	824	$	479	$	670	$	461
Conversion facility inventory	$000	$	675	$	6,620	$	4,379	$	2,751
Total inventory	$000	$	1,720	$	7,451	$	5,761	$	4,109

Cost per pound
In-process inventory	$/lb	$	9.92	$	18.46	$	25.28	$	30.01
Plant inventory	$/lb	$	37.53	$	45.85	$	47.79	$	37.56
Conversion facility inventory	$/lb	$	37.89	$	41.35	$	38.57	$	32.48


Ending Conversion Facility Inventory Cost Per Pound Summary	Unit	30-Sep-17			30-Jun-17			31-Mar-17		31-Dec-16
Ad valorem and severance tax cost per pound	$/lb		$	2.41	$	2.82	$	2.74	$	2.72
Cash cost per pound	$/lb		$	22.47	$	24.62	$	23.48	$	19.44
Non-cash cost per pound	$/lb		$	13.01	$	13.91	$	12.35	$	10.32
Total cost per pound	$/lb		$	37.89	$	41.35	$	38.57	$	32.48