NI-43-101 Preliminary Economic Assessment Shirley Basin Uranium Project Carbon County, Wyoming

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NI-43-101 Preliminary Economic Assessment Shirley Basin Uranium Project Carbon County, Wyoming Preliminary Economic Assessment Shirley Basin Uranium Project Carbon County, Wyoming, USA Report for NI 43-101 Effective Date: January 27, 2015 Report Prepared for: 10758 W. Centennial Road Suite 200 Littleton, CO 80127 Prepared under the Supervision of: Benjamin J. Schiffer, P.G. and Ray Moores, P.E. WWC Engineering 1849 Terra Avenue Sheridan, WY 82801 USA Signed by Qualified Persons (QPs): Benjamin J. Schiffer, P.G. Ray Moores, P.E. This NI 43-101 Preliminary Economic Assessment titled “PRELIMINARY ECONOMIC ASSESSMENT, SHIRLEY BASIN URANIUM PROJECT, CARBON COUNTY, WYOMING, USA”, dated January 27, 2015, has been prepared under the supervision of, and signed by, the following Qualified Persons: /s/ Benjamin J. Schiffer, P.G. SME Register Member, Registration Number 4170811 Professional Geologist, Wyoming (No. 3446) Dated at Sheridan, Wyoming January 27, 2015 /s/ Ray B. Moores, P.E. Professional Engineer, Wyoming (No. 10702) Dated at Sheridan, Wyoming January 27, 2015 Table of Contents 1.0 Summary ............................................................................................................. 1 2.0 Introduction ......................................................................................................... 7 3.0 Reliance on Other Experts ............................................................................... 10 4.0 Property Description and Location ................................................................. 11 4.1 Location and Size ............................................................................................. 11 4.2 Mineral Tenure ................................................................................................. 11 4.3 Title to Property ................................................................................................ 12 4.4 Royalties, Taxes and Fees ............................................................................... 14 4.5 Environmental Liabilities .................................................................................. 15 4.6 Permitting ......................................................................................................... 15 4.7 Other Significant Factors and Risks ................................................................. 17 5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography .................................................................................................... 18 5.1 Topography, Elevation and Vegetation ............................................................ 18 5.2 Access ............................................................................................................. 18 5.3 Proximity to Population Centers ....................................................................... 19 5.4 Climate and Operating Season ........................................................................ 19 5.5 Surface Rights and Property Infrastructure ...................................................... 19 6.0 History ............................................................................................................... 21 6.1 Prior Ownership and Ownership Changes ....................................................... 21 6.2 Exploration and Development by Previous Owners and Operators ................. 22 6.3 Significant Historical Mineral Resource and Mineral Reserve Estimates ......... 22 6.4 Production ........................................................................................................ 24 7.0 Geological Setting and Mineralization ............................................................ 26 7.1 Regional Geological Setting ............................................................................. 26 7.2 Shirley Basin Stratigraphy ................................................................................ 26 7.3 Project Geology ................................................................................................ 28 7.4 Significant Mineralization ................................................................................. 33 8.0 Deposit Type ..................................................................................................... 36 9.0 Exploration ........................................................................................................ 40 10.0 Drilling ............................................................................................................... 41 11.0 Sample Preparation, Analysis and Security ................................................... 44 Ur-Energy – Shirley Basin Uranium Project Preliminary Economic Assessment – January 27, 2015 Page i 11.1 Down-hole Geophysical Logging .................................................................. 44 11.2 Coring ........................................................................................................... 45 11.3 Drill Cuttings ................................................................................................. 46 11.4 Analyses and Security .................................................................................. 47 11.5 Quality Control Summary .............................................................................. 48 11.6 Opinion on Adequacy .................................................................................... 48 12.0 Data Verification ............................................................................................... 49 13.0 Mineral Processing and Metallurgical Testing ............................................... 50 14.0 Mineral Resource Estimate .............................................................................. 56 14.1 Assumptions ................................................................................................. 56 14.2 Cutoff Selection............................................................................................. 56 14.3 Resource Classification ................................................................................ 57 14.4 Methodology ................................................................................................. 58 14.5 Resource Estimation Auditing ....................................................................... 60 14.6 Summary of Resources ................................................................................ 61 14.7 Mineral Resource Estimate Risk ................................................................... 66 15.0 Mineral Reserves .............................................................................................. 67 16.0 Mining Methods ................................................................................................ 68 16.1 Mineral Deposit Amenability ......................................................................... 68 16.2 Hydrology ...................................................................................................... 69 16.2.1 Hydrogeology ......................................................................................... 69 16.2.2 Main Sand Hydraulic Properties ............................................................. 70 16.2.3 Historical Drill Holes ............................................................................... 71 16.3 Conceptual Wellfield Design ......................................................................... 71 16.3.1 Revised Resources ................................................................................ 71 16.3.2 Wellfield Patterns ................................................................................... 72 16.3.3 Monitor Wells.......................................................................................... 76 16.3.4 Mining Schedule ..................................................................................... 77 16.4 Piping ............................................................................................................ 77 16.5 Header Houses ............................................................................................. 77 16.6 Wellfield Reagents and Electricity ................................................................. 78 16.7 Mining Fleet Equipment and Machinery ........................................................ 78 17.0 Recovery Methods ............................................................................................ 79 17.1 Satellite Operations ....................................................................................... 79 Ur-Energy – Shirley Basin Uranium Project Preliminary Economic Assessment – January 27, 2015 Page ii 17.2 Transportation ............................................................................................... 79 17.3 Plant Processing (Lost Creek Mine) .............................................................. 81 17.4 Energy, Water and Process Materials ........................................................... 82 17.5 Liquid Disposal.............................................................................................. 82 17.6 Solid Waste Disposal .................................................................................... 83 18.0 Project Infrastructure ....................................................................................... 84 18.1 Roads ........................................................................................................... 84 18.2 Electricity ...................................................................................................... 84 18.3 Holding Ponds..............................................................................................
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