Technical Report on the Great Divide Basin Uranium Properties, Wyoming

TECHNICAL REPORT ON THE GREAT DIVIDE BASIN URANIUM PROPERTIES, WYOMING

PREPARED FOR UR-ENERGY INC.

RPA ROSCOE POSTLE ASSOCIATES INC. TECHNICAL REPORT ON THE GREAT DIVIDE BASIN PROPERTIES, WYOMING

PREPARED FOR UR-ENERGY INC.

Report for NI 43-101

Author: Stewart Wallis, P. Geo.

JUNE 15, 2005 Revised October 20, 2005

RPA ROSCOE POSTLE ASSOCIATES INC. Toronto, Ontario. Vancouver, B.C. ROSCOE POSTLE ASSOCIATES INC.

TABLE OF CONTENTS

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SUMMARY...... 1 General...... 1 Lost Soldier Property ...... 2 Lost Creek Property ...... 3 Radon Springs Property...... 3 North Hadsell Property ...... 4 Historical Resources ...... 4 Conclusions And Recommendations ...... 6 INTRODUCTION AND TERMS OF REFERENCE ...... 8 DISCLAIMER ...... 10 PROPERTY DESCRIPTION AND LOCATION...... 10 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY...... 12 REGIONAL HISTORY...... 20 REGIONAL GEOLOGY...... 21 MINERALIZATION ...... 22 DEPOSIT TYPES...... 24 LOST SOLDIER PROPERTY ...... 33 History...... 33 Property Geology...... 34 Mineralization...... 35 Historical Resources ...... 38 LOST CREEK PROPERTY...... 40 History...... 40 Property Geology...... 41 Mineralization...... 41 Historical Resources ...... 42 RADON SPRINGS PROPERTY ...... 45 History...... 45 Property Geology...... 46 Mineralization...... 46 Historical Resources ...... 47

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NORTH HADSELL PROPERTY ...... 50 History...... 50 Property Geology...... 50 Mineralization...... 51 EXPLORATION...... 52 DRILLING...... 52 SAMPLING METHOD AND APPROACH...... 52 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 52 DATA VERIFICATION ...... 54 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 54 ENVIRONMENTAL...... 55 INTERPRETATION AND CONCLUSIONS...... 55 RECOMMENDATIONS...... 56 REFERENCES ...... 59 SIGNATURE PAGE ...... 62 CERTIFICATE OF QUALIFICATIONS...... 63 APPENDIX 1...... 65 Claim List...... 65

LIST OF TABLES

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TABLE 1 HISTORICAL MINERAL RESOURCE ESTIMATES...... 5 TABLE 2 PROPOSED BUDGET...... 7 TABLE 3 LIST OF ABBREVIATIONS...... 9 TABLE 4 DRILLING LOST SOLDIER PROPERTY ...... 34 TABLE 5 DRILLING LOST CREEK PROPERTY ...... 41 TABLE 6 DRILLING RADON SPRINGS PROPERTY...... 45 TABLE 7 HISTORICAL MINERAL RESOURCE ESTIMATES...... 55 TABLE 8 PROPOSED BUDGET...... 57

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LIST OF FIGURES

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FIGURE 1 LOCATION MAP-UR–ENERGY WYOMING PROPERTIES ...... 14 FIGURE 2 PROPERTY MAP GREAT DIVIDE BASIN PROPERTIES ...... 15 FIGURE 3 CLAIM MAP-LOST SOLDIER ...... 16 FIGURE 4 CLAIM MAP LOST CREEK ...... 17 FIGURE 5 CLAIM MAP RADON SPRINGS...... 18 FIGURE 6 CLAIM MAP NORTH HADSELL...... 19 FIGURE 7 STRATIGRAPHIC SECTION...... 23 FIGURE 8 GENERALIZED STRUCTURE MAP OF WYOMING...... 26 FIGURE 9 GEOMETRY AND MINERALOGICAL MODEL OF A ROLL FRONT ... 27 FIGURE 10 ALTERATION TYPES FOR ROLL FRONTS...... 28 FIGURE 11 IDEALIZED MODEL OF URANIUM EMPLACEMENT...... 29 FIGURE 12 IN-SITU LEACHING ...... 32 FIGURE 13 LOST SOLDIER CROSS SECTION, SECTION 7...... 36 FIGURE 14 LOST SOLDIER MINERALIZED AREAS...... 37 FIGURE 15 LOST CREEK DRILL HOLES AND MINERALIZED AREAS ...... 44 FIGURE 16 RADON SPRINGS MINERALIZED AREAS...... 49

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SUMMARY

GENERAL

Roscoe Postle Associates Inc. (RPA) has been requested by Ur-Energy Inc. (Ur) to prepare an Independent Technical Report compliant with National Instrument 43-101 on four uranium projects located in the Great Divide Basin in Wyoming. Stewart Wallis, P.Geo., Consulting Geologist with RPA, visited the properties and reviewed the relevant reports and data during the period May 9 to May 14, 2005.

The Great Divide Basin Properties include the Lost Soldier, Lost Creek, Radon Springs and North Hadsell properties. The Radon Springs property consists of 225 claims totalling 4,500 acres owned by Ur-Energy (USA) Inc., a wholly owned subsidiary of Ur. Ur has Letter of Intent dated February 3, 2005 to purchase seven claims from Dalco Inc. (Dalco) which form the core of the Radon Springs Property.

The Lost Soldier, Lost Creek and North Hadsell properties consist of 364 unpatented 20-acre Federal Lode claims and one 640–acre State Lease, totalling 7,840 acres located in Wyoming owned by New Frontiers Uranium LLC (NFU). Effective June 30, 2005, Ur- Energy entered into the Membership Interest Purchase Agreement where under it agreed to purchase all of the issued and outstanding membership interests in NFU for US$20 million as part of a package that includes an extensive database.

The Great Divide Basin properties are readily accessible year round by an extensive system of gravel and dirt roads which extend from Jeffrey City which is about 90 miles southwest of Casper.

Uranium was discovered in 1936 and exploration activity increased in the early 1950s after the Gas Hills District discoveries. Exploration in the Great Divide Basin continued to increase in the1960s, with the discovery of numerous occurrences of uranium.

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The project area is situated in the eastern and central part of the Great Divide Basin which is underlain by up to 25,000 ft. of Cretaceous to Recent sedimentary rocks. Uranium deposits occur principally in the Eocene Battle Spring Formation, which underlies the properties at shallow depths (10 to 1,000 ft.), consists of at least 4,000 feet of alluvial-fluvial fan deposits of a west- to southwest-flowing paleodrainage. The most common rock type is arkosic sandstone, interbedded with intermittent fine- to coarse- grained claystone.

Two general types of uranium deposits occur in the basin: low-grade tabular deposits, and narrow, higher-grade C-shaped roll front deposits. Generally, the richer deposits occur at the basin margin, with lower-grade deposits in the center of the basin.

LOST SOLDIER PROPERTY

Through to 1967, Kerr-McGee Corp. (Kermac) carried out reconnaissance exploration and drilling that showed potential for low-grade mineralization in the Lost Soldier area. Kermac continued drilling off the area on 100-ft. centers through May, 1974 but let the property expire in 1986.

Several individuals restaked the property and from 1992 to 1994, Cameco re- evaluated the property. Cameco completed seven core holes to provide samples for porosity and permeability tests. It is reported that there was excellent permeability in the mineralized sands and low permeability in the confining zones. The leach tests confirmed that the mineralization was amenable to leaching with bicarbonate lixiviant.

Cameco transferred the property to its subsidiary Power Resources in January 1997 and the property was returned to the original owners in 2000. In 2003 New Frontiers consolidated the 53 claim property. Ur acquired these claims and staked an additional 14 claims.

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More than 5,900 exploration, development, and core holes, totalling over 3.3 million ft. have been drilled in the area, half of which were drilled on 50 ft. to 100 ft. spacing. Mineralized intervals are found at depths ranging from 75 ft. to 500 ft. The main mineralized area in the Lost Soldier deposit is the 800-acre core area centered on Section 7. New Frontiers completed a Mineral Resource estimate in 1991 (Table 1).

LOST CREEK PROPERTY

Climax-Amax acquired the property in 1968 and discovered low-grade mineralization in the Battle Springs formation. Texasgulf acquired the property in 1976 and in 1978 optioned the adjoining Conoco ground and continued drilling with the discovery of the continuation of the Main Mineral Trend (MMT) eastward from the Lost Creek property. Leach tests using bicarbonate lixiviant resulted in uranium extraction ranging from 60% to 80%. In 1982 Texasgulf completed a Mineral Resource estimate using polygonal methods (Table 1). Texasgulf dropped the project in 1983 due to economic conditions.

From 1986 to 1988, Power Nuclear Corporation (PNC) Exploration of Japan acquired 100% interest in the project from Cherokee Exploration Inc. and conducted geologic and in-situ leach evaluations. In 2000, New Frontiers Uranium acquired the property and the database from PNC.

About 3,000 rotary drill holes totalling some 1.36 million ft. have been completed on the property with the MMT being drilled off at 200 ft. centres with some infill at closer spacing.

RADON SPRINGS PROPERTY

Exploration in the area began in the 1950s and in 1970 Geomet Exploration (Geomet) drilled radon gas anomalies resulting in the discovery of uranium mineralization over a large area in six sandstone units, 50 ft. to 450 ft. deep.

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Texasgulf entered into an agreement with Geomet in 1974 and carried out drilling on 200 ft. to 250 ft. grids, followed-up with 100 ft. centers by 1977. In 1979, Texasgulf returned the property to Geomet, which later dropped the property. Dalco Inc. (Dalco) restaked the property in the 1980s and, in 1994, optioned it to Cameco which carried out drilling in 1995-1996 but dropped the property in1997. A number of resource estimates have been reported for the Radon Springs deposits. The most recent Mineral Resource estimate was completed for Dalco in 1997 (Table 1). Total drilling amounted to over 2,300 holes totalling 885,000 ft.

Ur signed a Letter of Intent to purchase the Dalco claims covering the main deposit area in 2005 and staked additional claims to the north.

NORTH HADSELL PROPERTY

Kermac and others worked the properties in the 1970s and found uranium

mineralization reported to grade 0.14% U3O8. In the mid 1970s Pioneer Nuclear and

Wyoming Minerals intersected mineralization grading higher than 0.03% U3O8. The intervals reported range in depth from 526 ft. to 745 ft. with grades and thicknesses

ranging from 0.05% U3O8 over 11 ft. to 0.14% U3O8 over 14 ft.

In the late 1990s Cameco carried out drilling on the southern group of claims and is reported to have intersected mineralization although details are not currently available.

There are currently no mineral resources estimated for the North Hadsell ground.

HISTORICAL RESOURCES

Numerous companies who worked on the Great Divide Basin properties from the early 1970s through the mid 1990s carried out resource estimations. The majority of the estimations were completed before computerization and polygonal methods or a variation of them were commonly used. Some of the later estimates were reported to be “ISL

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addressable” a term used to indicate that the mineralization might be amenable to ISL extraction and those individual mineralized units had been combined into one unit for the purpose of the resource estimate. RPA located a number of estimates for each property in previous reports and Table 1 reports the historical resources for each property that in RPA’s opinion are relevant. RPA notes that the classifications used are not in agreement with the CIM definitions as required by NI 43-101 and they are reported herein only for informational purposes.

TABLE 1 HISTORICAL MINERAL RESOURCE ESTIMATES Ur–Energy Great Divide Basin Project Wyoming

Property Company Year Classification Tons Grade % Million lbs eU3O8 U3O8 Lost Soldier New Frontiers 1991 demonstrated 2,100,000 0.151 6.2 inferred 1,200,000 0.16 3.8 Lost Creek TG 1982 all 4,600,000 0.0622 5.7 Radon Springs Dalco 1997 demonstrated 1,400,000 0.0843 2.3

Note: RPA has rounded the numbers and the totals may vary. Historic resources did not always record tons and RPA has back-calculated tons from the information provided.

RPA notes that all references to % U3O8 refer to % equivalent U3O8 (% eU3O8) as determined by gamma-ray logging. This method of measuring the amount of uranium present in a drill hole is standard industry practice. However, the actual amount of uranium present in the rocks is dependent on the equilibrium factor and can vary by plus or minus 0% to 25%. Chemical analysis is required to determine the equilibrium factor.

The resources in Table 1 are historical in nature and were compiled before the implementation of National Instrument 43-101 reporting standards. Recent independent verification of the data has not been performed and Ur has not completed sufficient exploration work to verify the historical resource estimates. The historical resources were prepared to industry standards in place at the time and are considered relevant today. Ur is not treating the historical estimates as NI 43-101 defined resources or

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reserves verified by a qualified person and the historical estimates should not be relied upon. .

CONCLUSIONS AND RECOMMENDATIONS

Based on the extensive drilling and historical resource estimates, RPA is of the opinion that the Great Divide Properties have the potential to host 14 to 70 million tons

(mt) grading 0.04% to 0.16% U3O8 containing 20 to 60 million lbs of uranium. The potential quantity and grade of these exploration targets are conceptual in nature at the present time and there is no assurance that they will be defined by further exploration drilling.

RPA is also of the opinion that for those properties that have complete drill data carried out by the previous operators, an estimate of Mineral Resources compliant with the CIM definitions and NI 43-101 could be completed if a statistical significant number of twin holes are drilled to confirm the tenure of the mineralization.

Ur has proposed an exploration and development budget amounting to US$5.3 million that includes data acquisition and evaluation, drilling, and evaluation of the in- situ-leaching potential, which will require permitting and reclamation (Table 2).

RPA is of the opinion that the properties are of merit and warrant the proposed programs and budgets.

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TABLE 2 PROPOSED BUDGET Ur–Energy Great Divide Basin Project Wyoming

Task Total

Field Office Rent, equipment, supplies, expenses 155,000 Property legal and holding costs 150,000 Vehicles -5 210,000 Geophysical down-hole logging equipment 320,000 Sub Total 835,000 Lost Creek Property Geophysics, Down-hole logging 84,000 Data digitization 10,000 Technical staff, expenses 865,000 Rotary , core drilling 688,000 Chemical/metallurgical, hydrological testing 600,000 Permitting, environmental studies 410,000 Surveying, reclamation 75,000

Sub Total 2,732,000 Lost Soldier Property Data acquisition, digitization evaluation 525,000 Technical staff, 720,000 Rotary core drilling 96,000 Down-hole logging 5,000 Surveying, reclamation 100,000 Chemical/metallurgical testing 35,000 Permitting, environmental studies 75,000 Sub Total 1,556,000 Radon Springs Property Data acquisition digitization, evaluation 65,000 North Hadsell Property Data acquisition digitization, evaluation 57,000 subtotal 142,000 TOTAL 5,245,000

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INTRODUCTION AND TERMS OF REFERENCE

Roscoe Postle Associates Inc. (RPA) has been requested by Ur-Energy Inc. (Ur) to prepare an Independent Technical Report compliant with National Instrument 43-101 on four Great Divide Basin properties in Wyoming. The report has been prepared to meet the requirements of NI 43-101 and Form 43-101F1.

RPA understands that this report will be in support of an Initial Public Offering and a listing on the TSX Exchange.

Stewart Wallis P.Geo., Consulting Geologist with RPA visited the property and reviewed the relevant reports and data during the period May 9 to May 14, 2005. No independent samples were taken since there was no core available and the mineralized bodies of interest are below surface. Current claim posts were checked on the properties and old drill hole collars were found on a number of the claims in areas of reported mineralization. From the air, the numerous drill holes were easily observed. Discussions were held on site and in the Denver office with Bill Boberg, Vice President of U.S. Projects, Harold Backer, Exploration Manager, and other consultants compiling data on the properties. The various maps and technical reports provided by Ur, in addition to the public documents that were reviewed, are listed in the References section.

Currencies are United States Dollars unless otherwise stated. Measurements are generally Imperial unless otherwise stated. A list of abbreviations is shown in Table 3.

Grades of uranium are expressed in pounds or percent % U3O8. However, the symbol

U3O8 as used in this report does not always mean uranium oxide but rather should read

(eU3O8) which means equivalent uranium oxide as calculated from gamma ray logs by standard industry methods used at that time. The actual amount of contained uranium may vary depending on the equilibrium factors which are discussed later in this report.

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TABLE 3 LIST OF ABBREVIATIONS µ micron km2 square kilometre °C degree Celsius kPa kilopascal °F degree Fahrenheit kVA kilovolt-amperes µg microgram kW kilowatt A. acre kWh kilowatt-hour A annum lbs pounds m3/h cubic metres per hour l/s litres per second CFM cubic metres per minute m metre Bbl barrels M mega (million) Btu British thermal units m2 square metre C$ Canadian dollars m3 cubic metre Cal calorie mi. miles Cm centimetre masl metres above sea level cm2 square centimetre mo month D day mt Million tons dia. diameter MVA megavolt-amperes Dmt dry metric tonne MW megawatt Dwt dead-weight ton MWh megawatt-hour ft. foot m3/h cubic metres per hour ft./s foot per second oz/ton ounce per short ton ft.2 square foot oz troy ounce (31.1035g) ft.3 cubic foot oz/dmt ounce per dry metric tonne G gram ppm part per million G giga (billion) psia pound per square inch absolute Gal Imperial gallon psig pound per square inch gauge g/l gram per litre s second g/t gram per tonne stpa short ton per year Gpm Imperial gallons per minute stpd short ton per day gr/ft.3 grain per cubic foot ton short ton gr/m3 grain per cubic metre t metric tonne Hr hour tpa metric tonne per year Ha hectare tpd metric tonne per day Hp horsepower US$ United States dollar in. inch USg United States gallon in2 square inch USgpm US gallon per minute J joule v volt K kilo (thousand) w watt kcal kilocalorie wmt wet metric tonne Kg kilogram yd3 cubic yard Km kilometre yr year km/h kilometre per hour

All monetary units in this report are US$ unless otherwise specified.

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DISCLAIMER

This report has been prepared by RPA for Ur. The information, conclusions, opinions, and estimates contained herein are based upon: o Information available to RPA at the time of preparation of this report, o Assumptions, conditions, and qualifications as set forth in this report, o Data, reports, and opinions supplied by Ur and other third party sources listed as references, and, o Equivalent uranium assays from the original gamma ray logs and reports as no independent sampling has been completed.

RPA relied on Ur for information regarding the current status of legal title, property agreements, and any outstanding environmental orders. RPA has not investigated legal title of the mining claims. RPA has not investigated the permitting and reclamation status of the property.

PROPERTY DESCRIPTION AND LOCATION

The Great Divide Basin Properties include the Lost Soldier, Lost Creek, Radon Springs and North Hadsell properties.

The properties consist of 589, unpatented 20-acre Federal Lode claims and one 640- acre State Lease, totalling 12,340 acres. located in Wyoming (Figure 1, 2) and listed in Appendix 1. Surface ownership on the claims is federal, managed by the Bureau of Land Management (BLM). Permitting of drill sites and access roads will be through the BLM and disturbances over 5 acres will require bonding. Effective July 2005, the yearly rental is US$125, payable to the BLM, due each year on September 1 to maintain the unpatented claims. Lease rental is paid annually in advance on the anniversary date of the lease (October 2, 2001). The rental is US$1.00 per acre for the first 5 years, $2 per

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acre for years 6 to 20, $3 per acre for years 21 to 30 and $4 per acre thereafter. If the property is not in production within two years of the lease being granted, the State has the option of increasing the rental to a “fair and equitable amount”. The State retains a 5% gross royalty on the value of uranium produced.

The Lost Soldier, Lost Creek and North Hadsell properties consist of 364 unpatented 20-acre Federal Lode claims and one 640–acre State Lease, totalling 7,840 acres located in Wyoming owned by New Frontiers Uranium LLC (NFU). Effective June 30, 2005, Ur- Energy entered into the Membership Interest Purchase Agreement whereunder it agreed to purchase all of the issued and outstanding membership interests in NFU for US$20 million as part of a package that includes an extensive database. Additional claims staked by Ur will fall into the area of interest.

The Lost Soldier Project consists of 70 unpatented claims totalling 1,400 acres located in Sweetwater County on the northeastern edge of the Great Divide Basin, centered approximately 42O 14’ N Latitude, 107O 35’ W Longitude in Townships (T) 26N, Range (R) 90W and T26N, R91W (Figure 3). The claims are 90 miles southwest of Casper and 20 miles southeast of Jeffrey City which is located on WY Highway 287. The property is on trend with and 14 miles southeast of the Crooks Gap Mining District, nine miles southeast of the former Big Eagle pit, and seven miles southeast of the Round Park/Jackpot deposit owned by Kennecott Corp.

The Lost Creek Project consists of 177 unpatented claims and one lease totalling 4,140 acres located in Sweetwater County on the northeastern edge of the Great Divide Basin, centered approximately 42O 08’ N Latitude, 107O 51’ W Longitude in T25N, R92W and T25N, 93W (Figure 4). The claims are 90 miles southwest of Casper and 25 miles south of Jeffrey City which is located on WY Highway 287. The claims are 5 mi northeast of the Kennecott Sweetwater uranium mill.

The North Hadsell Project consists of 117 unpatented claims totalling 2,300 acres located in Freemont County on the northeastern edge of the Great Divide Basin, centered

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approximately 42O 17’ N Latitude, 107O 45’ W Longitude in T27N, R91W, T27N, R92W and T26N, R91W (Figure 6). The claims are 90 miles southwest of Casper and 16 miles southeast of Jeffrey City which is located on WY Highway 287.

The Radon Springs Property consists of 218 claims owned by Ur-Energy (USA) Inc., a wholly owned subsidiary of Ur and seven claims optioned from Dalco Inc. (Dalco), totalling 4,500 acres. Ur can earn a 100% interest in the Dalco claims subject to a 3% royalty on the project by completing expenditures totalling $500,000 and making payments totalling $325,000 and delivering 325,000 treasury shares over a three year period. Ur has the option to buyback up to 2% of the royalty for $250,000 and 250,000 treasury shares.

The Radon Springs’ claims are located in Freemont County on the northeastern edge of the Great Divide Basin, centered approximately 42O 20’ N Latitude, 107O 53’ W Longitude in T27N, R92W, T27N, R93W and T28N, R93W (Figure 5). The claims are 90 miles southwest of Casper and 11 miles south of Jeffrey City which is located on WY Highway 287.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Great Divide Basin is broadly bounded by mountains and hills on all sides: the Wind River and Granite Mountains to the north, the Rawlins Uplift to the east, the Wamsutter Arch to the south, and the Rock Springs Uplift to the west. The basin occurs between two bifurcating branches of the North American continental divide, which separate south of the basin and rejoin north of it. The basin covers approximately 3,500 square miles.

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The Great Divide Basin properties are readily accessible year round by an extensive system of gravel and dirt roads which extend from Jeffrey City which is located on highway #287. During the winter months, blowing snow may locally obstruct access for several days until it is removed.

The properties exhibit moderate relief with rolling topography, ranging in elevation from 6,800 ft. to 7,500 ft. above sea level (ASL). Local relief on the property rarely exceeds 50 ft. Vegetation is sparse and consists of local grasses, sagebrush and wild flowers. Cottonwood trees grow along the river bottoms and scattered pines are found along the ridge tops at the higher elevations. Pre-Oligocene formations contain water under artesian pressure, with depth to the water table generally less than about 200 ft.

The climate is semi-arid with warm summers and harsh winters accompanied by strong constant winds. The average high temperature is 84OF in July with an average low of 7.5OF in January. Yearly precipitation averages 11 in which includes 55 in of snow falling between November and April. Snow cover is not extensive as the constant winds blow much of the snow into localized drifts.

There is no mining related infrastructure on the claims. All properties are close to the major Interstate highways, the railroad, power, and gas lines. Oil and gas pipelines pass close to or cross the properties and there is active exploration for oil in the area. Labour, materials and mining supplies are readily available in Casper, Rawlins and Cheyenne.

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YELLOWSTONE-ABSAROKA U.S.A.

VOLCANIC POWDER 90 REGION INDEX MAP RIVER

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Granite Mountains RADON SPRINGS SHIRLEY BASIN IDAHO NORTH HADSELL CHALK HILLS 25 GREEN ! ! !! BUCK POINT GREAT DIVIDE ! ! RIVER BASIN ! LOST SOLDIER LOST CREEK BOOTHEEL BASIN RAWLINS 80 ROCK SPRINGS

LARAMIE

CHEYENNE

UTAH COLORADO UR-Energy Inc. LOCATION MAP UR Energy WYOMING PROPERTIES 0 50 Figure 1 miles Roscoe Postle Associates Inc. : June 2005 UR-Energy Inc. PROPERTY MAP GREAT DIVIDE BASIN PROPERTIES Figure 2 Roscoe Postle Associates Inc. : June 2005 HADSELL CLAIMS

UR-Energy Inc. CLAIM MAP LOST SOLDIER PROPERTY Figure 3 Roscoe Postle Associates Inc. : June 2005 Sweetwater County, Wyoming T25N

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LET 103 FREMONT CO. T27N LET 101 T27N FREMONT CO. SWEETWATER CO. T26N T26N SWEETWATER CO.

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LET 73 7 8 UR-Energy Inc. CLAIM MAP NORTH HADSELL PROPERTY

R91W

R92W Figure 6 Roscoe Postle Associates Inc. : June 2005 ROSCOE POSTLE ASSOCIATES INC.

REGIONAL HISTORY

Uranium was first discovered about 11 miles northwest of Lost Creek in 1936 in the form of schroeckingite, a hydrated fluor-carbonate-sulfate of sodium, calcium and uranium, in a surficial caliche-type showing. Prospecting for uranium commenced in the mid-1940s.

Exploration activity increased in the early 1950s after the Gas Hills district discoveries. In 1954, commercial deposits were discovered in the Crooks Gap district by Western Nuclear. Production began from small shallow workings, with continued and deeper exploration leading to the finding of ore-grade uranium deposits at Crooks Gap and underground mine operations commenced by 1957.

Exploration in the Great Divide Basin continued to increase in the 1960s, with the discovery of many occurrences of mineralization. Some 30 to 35 companies were attracted to the area in the 1970s and by the end of 1972; 6.8 million ft. of drilling had been completed. Minerals Exploration Co, a subsidiary of Union Oil Company, conducted exploration drilling from 1969 at the Sweetwater deposit now owned by Kennecott Corporation. Approximately 6,000 holes were drilled, and stripping operations and mill construction were initiated. In-situ leach tests were also conducted on several deposits in the basin. Production operations at Sweetwater were begun in October 1980.

By 1980, there were two open-pit mines and six operating underground mines in the Crooks Gap with two more under development by Western Nuclear. Through the end of 1980, more than 18 million ft. of drilling had been completed and at least 28 low-grade deposits had been identified. Many of the deposits were within 200 to 400 ft. of the surface, suitable for open-pit and in-situ leach development.

20 ROSCOE POSTLE ASSOCIATES INC.

REGIONAL GEOLOGY

The project area is situated in the eastern and central part of the Great Divide Basin. The Great Divide Basin and the Washakie Basin to the southwest together comprise the greater Green River Basin, which occupies much of southwestern Wyoming. These basins contain up to 25,000 ft. of Cretaceous to Recent sedimentary rocks. They are bounded by structural uplifts of Precambrian, largely granitic rocks, such that the Great Divide Basin now has internal drainage and an independent hydrologic system.

Within the Great Divide Basin, fluvial to barrier bar and deltaic sediments of the Upper Cretaceous Lance Formation reflect Late Cretaceous withdrawal of the Lewis sea, and are unconformably overlain by fluvial to lacustrine sediments of the Paleocene Fort Union Formation (Figure 7). Eocene sediments were deposited conformably on the Fort Union Formation in the center of the basin, and unconformably to the north and east. The Eocene stratigraphy of the Great Divide Basin reflects the presence of Eocene Lake Gosiute, with associated swamps and alluvial plain, and fluvial fans at the margins of the uplifted Granite Mountains to the north. Southwest of the project area, the center of the basin is occupied by the largely lacustrine Eocene Green River Formation. The lower- energy fluvial Wasatch Formation consists of claystone and siltstone, fine- to medium- grained calcareous sandstone, carbonaceous shale, oil shale, and coal. These formations correlate and interfinger with the high-energy fluvial facies, Lower to Middle Eocene Battle Spring Formation at the central and eastern margin of the basin.

Uranium deposits occur principally in the Battle Spring Formation, which consists of at least 4,000 ft. of alluvial-fluvial fan deposits of a west- to southwest-flowing paleodrainage. The most common rock type is arkosic sandstone, with intermittent fine- to coarse-grained claystone. Conglomeratic horizons and boulders occur at the edge of the basin, near Green Mountain, and reflect uplift of the Granite Mountains. One drill hole intersected 6,006 ft. of Battle Spring Formation, with 50% of the material reported as fine- to coarse-grained sandstone.

21 ROSCOE POSTLE ASSOCIATES INC.

Strata in the Great Divide Basin dip toward a curved synclinal axis that is east and north of the central part of the basin. Rocks dip about 20° to the west from the Rawlins uplift on the east side of the basin, and 3° to the east from the Rock Springs uplift on the west side. The throws of normal faults are up to 3,000 ft.; faults with throws less than100 ft. are likely anywhere in the basin and horizontal displacements on thrust faults are possibly greater than nine miles.

Folding during earliest Eocene accompanied thrusting. An anticlinal complex occurs in the northern part of the basin, with west-northwest trends: The Bison Basin anticline in the west, the East Antelope anticline, and the Bare Ring Butte anticline in the east. The Cyclone Rim syncline is a 25-mile long downwarp south of and parallel to the Flattop Fault.

MINERALIZATION

Two general types of uranium deposits occur in the basin: low-grade tabular deposits, and narrow, higher-grade C-shape deposits. The color of unaltered, reduced sandstone is light to dark grey, with carbon trash, dark accessories, and trace pyrite. Altered, oxidized sandstone contains iron oxide staining where former carbonaceous material was present, kaolinized feldspar, and a pink to tan-buff, greenish grey to bleached appearance. The age of mineralization at Crooks Gap, and by inference the project area, is considered to be between 35 and 26 Ma, occurring shortly after deposition of the fluvial fans, uplift of the Granite Mountains, and deposition of thick volcaniclastic deposits.

22 Statigraphic section in the Great Divide Basin area UR-Energy Inc.

STRATIGRAPHIC SECTION

Figure 7 Roscoe Postle Associates Inc. : June 2005 ROSCOE POSTLE ASSOCIATES INC.

DEPOSIT TYPES

The geology and genesis of roll front uranium deposits has been studied since the 1960s. The five major uranium districts in Wyoming are found in the Tertiary intermontaine basins (Figure 8) where the uranium occurs in the form of mineralized roll fronts emplaced at a redox interface in continental sandstones containing detrital carbonaceous material. The epigenetic deposits are formed by the down dip migration of the oxidizing solutions with the concentration of the uranium mineralization occurring in the solution front. Figure 9 illustrates the geometry and mineralogical model of a typical roll front uranium deposit. The highest grade portion of the front is the main part of the “C” shape with lesser grades found on the upper and lower limbs. The sandstone behind the front is altered but essentially barren. Alteration styles vary among the various basins (Figure 10).

The most favourable host rocks are friable fine- to coarse-grained arkosic sandstones containing pyrite and carbonaceous material. Interbedded mudstone, claystones, and siltstone interbeds are often present and sand and silt channels with crossbedding are common. Below the water table unaltered sandstones are light grey to greenish grey with abundant pyrite and carbonaceous material while the altered sandstones are reddish or greenish yellow coloured with no pyrite and little carbonaceous material. The alteration that marks the roll front penetrates the sandstone down-dip. The fronts range in size and shape and commonly have lateral extensions of several miles and thicknesses of several feet. Within any one formation there may be many individual beds that contain roll fronts (Figure 11).

Two general types of uranium deposits occur in the Great Divide Basin: low-grade tabular deposits, and narrow, higher-grade C-shape deposits. Generally, the richer deposits occur at the basin margin, with lower-grade discontinuous deposits in the center of the basin. The color of unaltered, reduced sandstone is light to dark grey, with carbon trash, dark accessories, and trace pyrite. Altered, oxidized sandstone contains iron oxide

24 ROSCOE POSTLE ASSOCIATES INC.

staining where former carbonaceous material was present, kaolinized feldspar, and a pink to tan-buff, greenish grey to bleached appearance. The age of mineralization at Crooks Gap, and by inference the project area, is considered to be between 35 and 26 Ma, shortly after deposition of the alluvial fans, uplift of the Granite Mountains, and deposition of thick volcaniclastic deposits. Early uranium in coals and carbonaceous mudstones also indicates mineralization shortly after deposition.

Increased radioactivity at sand-clay horizons indicates fixing of uranium at permeability and redox interfaces, and reflects basinward roll front alteration frontal systems. Carbonaceous material, psuedomorphs of pyrite stained by iron oxide, reduced claystones, and reduced calcareous nodules all indicate a primary diagenetic reduction of sediments, necessary to precipitate uranium from oxidizing fluids. The thick, permeable and porous sandstones of the Battle Spring Formation were amenable to fluid flow and effectively created a 4,000 ft. roll front geochemical cell. Where available, discrete mudstones focused fluid flow and produced small roll fronts. Vertical flow was also channelled through structural controls, producing altered zones and pockets of reduced rocks.

The principal source of the uranium is commonly considered to be the Granite Mountains north of the basin, which were brecciated and weathered, and which had undergone prior metamorphic events that preconcentrated the uranium. Surface water passing through overlying thick sequences of volcanic ash and volcaniclastic material, picked up metals including possibly uranium and, becoming acidic; these fluids then leached the granites of uranium. The fluids passed into the basin and precipitated uranium at reduction zones containing carbonaceous material, or at boundaries with reducing and less permeable mudstones and shales such as the Wasatch and Fort Union Formations in the basin.

25 UR-Energy Inc. GENERALIZED STRUCTURE MAP OF WYOMING Figure 8 Roscoe Postle Associates Inc. : June 2005 UR-Energy Inc. GEOMETRY & MINERALOGICAL MODEL OF A ROLLFRONT Figure 9 Roscoe Postle Associates Inc. : June 2005 UR-Energy Inc. ALTERATION TYPES FOR ROLL FRONT Simplified cross sections across the edges of altered sandstone tongues showing the most common types of alteration present in URANIUM DEPOSITS some uranium mining districts in Wyoming, Colorado and South Dakota. Figure 10 Roscoe Postle Associates Inc. : June 2005 (from IAEA - TECDOC - 328) UR-Energy Inc. IDEALIZED MODEL OF URANIUM EMPLACEMENT Figure 11 Roscoe Postle Associates Inc. : June 2005 ROSCOE POSTLE ASSOCIATES INC.

Gamma logs reflecting uranium concentrations show that the original, unaltered sediments have consistent, homogenous gamma distributions. Altered sediments with a more erratic array have spikes concentrated at reducing and mineralized areas. Higher gamma backgrounds occur where the rocks have been altered. Above the water table, uranium disequilibrium may result in uranium being chemically depleted relative to gamma log indications. Uranium may be mobilized down dip to accumulate at the water table, where local oxidized accumulations may exceed the gamma log indication. Below the water table, uranium may be chemically enriched relative to the gamma logs. Wide variations in the effects of the disequilibrium factor may occur without a pattern.

The principal ore minerals are pitchblende and coffinite often accompanied by selenium, molybdenum, arsenic and phosphorous. The two possible sources of the uranium are the uraniferous Archean granites and the uraniferous Oligocene tuffs which once covered the basins.

Currently, the only method for recovering uranium and vanadium in Wyoming is In- Situ Leaching, (ISL) being carried out by Cameco at the Smith Ranch-Highland Operations in the Powder River Basin (Figure 1). Total production in 2004 at the Cameco’s operations was 1.24 million lbs of uranium. Open pit or underground mining and conventional milling are not viable options due to the low uranium prices in the recent past and the depth of the resources.

A grid of injection and production wells is drilled over a portion of the deposit which might cover an area 200 ft. by 500 ft. (Figure 12). Because uranium is largely insoluble in the ground water, small amounts, of oxygen and carbon dioxide are added to the injection fluid to dissolve the uranium. The uranium bearing solution, less than 1/10 of 1% uranium, is then pumped from a production well to a satellite facility where the uranium is removed from solution using ion exchange resin which is then transported to the processing plant for elution, precipitation and drying to become the final product, yellowcake.

30 ROSCOE POSTLE ASSOCIATES INC.

This is a closed-loop recirculation system since the water from the production well is reintroduced in the injection wells. Slightly less water is injected than produced to ensure that fluids are confined to the ore zones intended for extraction. Naturally occurring impermeable mudstone beds prevent the solutions from migrating beyond the uraniferous bed and mixing with other aquifers. Monitor wells are installed above, below and around the target zones to ensure that mining fluids do not move outside a permitted mining area.

ISL techniques may be applicable for some of the deposits in the Great Divide Basin as the stratigraphy is similar to the Powder River Basin. Kennecott is reported to have carried out a pilot plant test on their Sweetwater deposit. The results are not publicly available. Other companies also have carried out pilot tests with reported success but no details are available. TGS has carried out pump tests, in addition to permeability, and porosity tests on core samples, all of which did not preclude the use of ISL as a mining method. Cameco has also carried out preliminary scoping studies on leaching the deposits at Lost Soldier.

31 UR-Energy Inc.

IN-SITU LEACHING

Figure 12 Roscoe Postle Associates Inc. : June 2005 ROSCOE POSTLE ASSOCIATES INC.

LOST SOLDIER PROPERTY

HISTORY

Through to 1967, Kerr-McGee Corp. (Kermac) acquired 28,000 acres of prospective ground and carried out reconnaissance exploration and drilling that showed potential for low-grade mineralization in the Lost Soldier area. In 1969, Royal Resources Corp. (RCC) acquired a 50% interest in 25,000 acres, and assigned its interest to its sister company, The Colorado Corporation (CC). Early drilling by CC revealed shallow mineralization ranging from 0.10 to 1.25% U3O8 at depths of 16 to 503 feet. Kermac continued drilling off the area on 100 ft. centres through May, 1974. In 1977 five energy and utility companies bought the CC interest and formed the Palo Verde Uranium Venture (PVUV) with Kermac to continue exploration in the area. The joint venture was dissolved in 1983 and following decline of the uranium industry in the mid 1980s, Kermac let the property expire in 1986.

Several individuals restaked the property and from 1992 to 1994, Cameco re- evaluated the property. Cameco completed seven core holes to provide samples for porosity and permeability tests. In addition, 14 agitation and three column leach test were completed. Cameco’s conclusions were that there was excellent permeability in the mineralized sands and low permeability in the confining zones.

The leach tests confirmed the mineralization was amenable to leaching with bicarbonate lixiviant solution with six-day test results being consistent with similar geological environments and nine-day tests being somewhat above average.

Cameco transferred the property to its subsidiary Power Resources in January, 1997 and the property was returned to the original owners in 2000. In 2003, New Frontiers consolidated the 53 claim property. Ur acquired these claims and staked an additional 17 claims.

33 ROSCOE POSTLE ASSOCIATES INC.

More than 5,000 exploration, development, and core holes have been drilled in the area, half of which were drilled on 50 ft. to 100 ft. spacing (Table 4).

TABLE 4 DRILLING LOST SOLDIER PROPERTY Ur–Energy Great Divide Basin Project Wyoming

Company Years Location Type Number of Feet Drillholes Kermac 1960s rotary ? unknown Colorado Corp. 1969-70 rotary 775 400,000 Colorado Corp. 1969-1970 Sect 7 core 11 unknown Kermac 1970s Sect 7 core 16 unknown Kermac infill 1971-1974 rotary 350 175,000 unknown 1,792 Kermac PVUV JV 1977-1983 rotary 2,800,862 Sect 7 3,000 Cameco 1993-1994 core 10 4,520 TOTALS 5,954 3,380,382

PROPERTY GEOLOGY

The Lost Soldier deposit occurs in the eastern part of the Great Divide Basin in arkosic sandstones of the Eocene Battle Spring Formation. Pliocene pediment and gravel deposits cover the sedimentary rocks and average four feet thick. The Battle Spring Formation is 900 ft. thick locally and dips 1.5° to 10° west-northwest reflecting the Lost Soldier anticline. Individual sandstone beds up to 120 ft. thick contain uranium mineralization and have been divided into several horizons (Figure 12). Siltstone and mudstone intervals up to 30 ft. thick correlate across the area and separate the upper and lower sandstones. East-trending normal faults, such as the fault that parallels Lost Soldier Creek, have moderate (50 ft. to 100 ft.) displacement. Alteration in barren zones within the geochemical cell shows limonite and hematite staining, kaolinization of feldspar, bleaching, and greenish coloration by chlorite. The area has a static water table 30 ft. to 70 ft. deep, averaging 50 ft.

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MINERALIZATION

Mineralized intervals are found at depths ranging from less than 75 ft. to 500 ft. The main mineralized area in the Lost Soldier deposit is the 800 acre core area centered on Section 7 (Figure 2). Several mineralized fronts extend beyond the core area, providing possible extensions to the deposit to the west-northwest and south.

Uranium occurs as uraninite and coffinite, in roll fronts and in stacked tabular bodies in arkosic sandstones. Some of the mineralization is also related to post-mineral faulting and remobilization. Mineralization occurs in ten or more sandstone horizons, generally 7 to 16 ft. thick (Figure 13, 14). Grade ranges from 0.04% to 0.20% U3O8, with an average of intercepts in the mineralized zone of 0.15% U3O8. Medium- to coarse-grained grey arkosic sands exhibit, moderate kaolinization of feldspar, trace amounts of carbon trash, and rare pyrite. Mineralized zones occur in loosely consolidated sands, whereas adjacent sandstones are moderately cemented with clay and CaCO3.

An upper sandstone unit about 100 ft. thick contains most of the uranium mineralization. This unit includes beds and seams of low permeability silts and clays, which confine the mineralization observed in many holes. The upper sandstone has been subdivided into three subunits that are correlatable. Uranium mineralization occurs in permeable sands as well as in low-permeability fine-grained sands, silts, and clays; although some described clays may in fact be fine accumulations of pyrite and carbon with uranium. Some mineral intercepts are lens-like or tabular, not like typical roll front configurations. The lower sand has weak mineralization in well developed sand intervals.

35 UR-Energy Inc. LOST SOLDIER CROSS SECTION SECTION 7 Figure 13

(from Cameco 1994) Roscoe Postle Associates Inc. : June 2005 2 1 6 5

T26N

R91W

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LEGEND W E Mineralized Zone Cross Section Figure 13 Trace of Mineralized Front

0 4000 feet

UR-Energy Inc. 14 LOST SOLDIER 13 18 MINERALIZED AREAS Figure 14 Roscoe Postle Associates Inc. : June 2005 Sweetwater County, Wyoming ROSCOE POSTLE ASSOCIATES INC.

HISTORICAL RESOURCES

Numerous in-house estimates have been compiled on the Lost Soldier deposit. Estimates since the 1980s include the section 7 area which has been drilled on 50 ft. centres. The only data available to RPA are the geological reports and Kermac surface maps which show the drill holes and intercepts. Only a few drill logs are currently available.

Various independent geologists are reported to have audited the Kermac database for PVUV. Their work included an examination of the logs and data sheets and re- estimation of thicknesses and grade x thickness (GT) products for 161 holes, about 15% of the mineralized holes. It is reported that the GT results were within 1% of the original Kermac data (Fruchey, 2001).

The early estimates were based on limited drilling while the estimates after 1980 used drill hole spacing at 50 ft. centres over the main deposit area.

RPA reviewed the methodology of the various estimates where available. RPA notes that several of the estimates upgraded the contained pounds of uranium using positive disequilibrium factors. Although there are reports of core holes and chemical analysis, RPA is of the opinion that the use of upgrading factors is inappropriate.

Ur is in the process of acquiring the drill logs and other data in order to evaluate the previous work.

Fruchey (1991) reports the following resources:

Demonstrated: 2.1 million tons at 0.15% U3O8 containing 6.2 million lbs of

U3O8

Inferred: 1.2 million tons at 0.16% U3O8 containing 3.8 million lbs of U3O8

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RPA notes that the classifications used are not in agreement with the CIM definitions as required by NI 43-101 and they are reported herein only for informational purposes.

The resources stated above are historical in nature and were compiled before the implementation of National Instrument 43-101 reporting standards. Recent independent verification of the data has not been performed and Ur has not completed sufficient exploration to verify the historical resource estimates. The historical resources were prepared to industry standards in place at the time and are considered relevant today. Ur is not treating the historical estimates as NI 43-101 defined resources or reserves verified by a qualified person and the historical estimates should not be relied upon.

Based on the extensive drilling and historic resource estimates RPA is of the opinion that the property has the potential to host 2 to 8 million tons grading 0.09% to 0.16%

U3O8 containing 10 to 15 million lbs of uranium. The potential quantity and grade of this exploration target is conceptual in nature at the present time and there is no assurance that it will be defined by further exploration drilling.

39 ROSCOE POSTLE ASSOCIATES INC.

LOST CREEK PROPERTY

HISTORY

American Metals Climax Inc. (Amax) acquired the property in 1968 and discovered low-grade mineralization. Kerr-McGee Corp (Kermac) in 1974, Valley Development Inc. in 1975, and Texasgulf Inc. (Texasgulf) in 1976 continued to drill out mineralization. Conoco Inc. acquired the adjoining ground to the east in 1969 carried out a major drilling program. Texasgulf optioned the Conoco property in 1978 and continued drilling with the discovery of the continuation of the Main Mineral Trend (MMT) from the Lost Creek property.

Texasgulf carried out pump tests in 1982 that indicated (Ludeman 1995) the hydrological characteristics are suitable for ISL recovery methods. Leach tests using bicarbonate lixiviant resulted in extractions ranging from 60% to 80% but as the tests were related to hours of leaching rather than pore volumes, the tests are of little use in predicting volumes required for total extraction. Morzenti, 1997 reports that the water quality was reported to be rated class 1 which may make it difficult to achieve restoration after in-situ leaching. A review of the Hydro-Search Inc. report (1982) indicated the radium-226 concentration was above DEQ standards in eight out of ten samples for all water use classifications. Texasgulf dropped the project in 1983 due to the economic conditions at that time.

From 1986 to 1988, Power Nuclear Corporation (PNC) Exploration of Japan acquired 100% interest in the project from Cherokee Exploration Inc. (Cherokee), and conducted geologic and in-situ leach evaluations. Testwork indicated recoveries in the order of 70% to 89% using bicarbonate lixiviant.

In 2000, New Frontiers Uranium acquired the property and the database from PNC.

40 ROSCOE POSTLE ASSOCIATES INC.

Totals for the various drilling programs are listed in Table 5. The MMT has been drilled off at 200 ft. centres with some infill at closer spacing. Drilling includes at least eight core holes.

TABLE 5 DRILLING LOST CREEK PROPERTY Ur–Energy Great Divide Basin Project Wyoming

Company Years Location Type Number of Feet Drillholes Conoco (Block A) 1969-78 Block A rotary 2,097 836,630 Climax-Amax 1968-73 Lost Creek rotary 46 37,195 Kerr-McGee 1974 Lost Creek rotary 15 12,510 Valley Development 1975 Lost Creek rotary 2 1,630 Texasgulf 1976-82 MMT Rotary/core 779 446,979 PNC Exploration 1987-92 MMT rotary 57 28,120 All companies MMT rotary 2,996 1,363,064

PROPERTY GEOLOGY

Mineralization is not exposed on surface. Mineralized intervals are found at depths ranging from 150 ft. to 1,150 ft. The Lost Creek mineralization occurs in fluvial arkosic sandstones of the Eocene Battle Spring Formation that dip from 3° northwest to 3° southwest. Thick-bedded (up to 50 ft. thick), medium- to coarse-grained sandstones make up about 60% of the section at Lost Creek and host the uranium deposits. Siltstone, shale, and claystone are interbedded with the sandstones. Plant materials, minor dark accessory minerals, and some pyrite are locally present. The altered sandstone is buff, tan, or slightly greenish-grey. Faults and fractures with 10 ft. to 70 ft. displacement trend east and both predate and postdate mineralization. One significant east-northeast- trending fault has a south-side down displacement of 40 ft. to 60 ft. and was reactivated post mineralization

MINERALIZATION

The main zone of mineralization at Lost Creek strikes east-west for at least four miles (half of which is well defined), and is up to 2,000 ft. wide with intercepts ranging from

41 ROSCOE POSTLE ASSOCIATES INC.

350 ft. to 700 ft. deep. Mineralization is in the form of fine-grained intergrowths of coffinite with pyrite, as coatings, fracture fillings, and rimming voids. Grade ranges from

0.03% to 0.20% U3O8, with an average of intercepts in the mineralized envelope of the

Main Mineral Trend at 0.04% U3O8. The thickness of individual mineralized beds at Lost Creek locally ranges from 5 ft. to 28 ft., and averages 16 ft. It appears that there are no high-grade intercepts greater than 0.5% U3O8. Generally, the deposit has uniformly low-grade intercepts in thick mineralized horizons, with continued alteration to the north.

Three main mineralized horizons, 200 ft. to 600 ft. deep were identified by Conoco. The thickest and most continuous ore zones are in a sandstone unit that is 100 ft. to 160 ft. thick, 300 ft. to 400 ft. deep, and bounded by shales. A supergene horizon, which has been partially leached of uranium, overlies the middle and lower zones that are either in chemical and radiometric balance or are slightly enriched. Texasgulf divided the deposit into nine mineralized horizons that consist of coalescing sandstones up to 50 ft. thick that exhibit oxidation tongues and east-trending redox-mineralization fronts. Oxidation also coincides with the main fault through the area. Texasgulf focused on roll front geometry in their exploration program, and identified a single east-trending unit that contained half of their estimated resources. Partial leaching and remobilization of uranium occurred through uplift and in faults and fractures, creating tabular deposits with moderate continuity. Cherokee, in 1995, interpreted the mineralization to be more tabular than roll front. There is insufficient drilling to verify either interpretation at this time although Cherokee re-evaluated the chemical assays and concluded the deposit was in equilibrium which is not usually the case for roll front deposits. RPA has not verified the chemical assay data.

HISTORICAL RESOURCES

There have been a number of resource estimates completed by the various owners since 1978. Texasgulf in 1982 reported a total resource of 5.7 million lbs of contained

U3O8 in 4.6 mt at an average grade of 0.062% U3O8 using a polygonal method with varying cut-offs.

42 ROSCOE POSTLE ASSOCIATES INC.

RPA notes that the classification used is not in agreement with the CIM definitions as required by NI 43-101 and the resources are reported herein only for informational purposes.

Based on the extensive drilling and historic resource estimates, RPA is of the opinion

that the property has the potential to host 8 to 38 mt grading 0.04% to 0.05% U3O8 containing 8 to 31 million lbs of uranium. The potential quantity and grade of this exploration target is conceptual in nature at the present time and there is no assurance that it will be defined by further exploration drilling.

43 PROPERTY BOUNDARY

LEGEND Sweetwater County, Wyoming UR-Energy Inc. LOST CREEK DRILL HOLES and MINERALIZED AREAS Figure 15 Roscoe Postle Associates Inc. : June 2005 ROSCOE POSTLE ASSOCIATES INC.

RADON SPRINGS PROPERTY

HISTORY

Exploration in the area began in the 1950s. Teton Exploration Co. (Teton) and Western Nuclear Inc. conducted the first reconnaissance drilling. Teton’s holes were wide spaced and shallow, and Western Nuclear’s holes were up to 2,400 ft. deep, east and north of the Radon Springs mineralized area. Geomet Exploration Inc. (Geomet) discovered radon gas anomalies in the Radon Springs area in 1970. Drilling (Table 6) revealed mineralization over a large area in six sandstone units, 50 ft. to 450 ft. deep. In its initial 1971 program, Geomet drilled 77 holes (24,040 ft.) 120 ft. to 650 ft. deep. Of these, 56 had intercepts of 0.02% U3O8 or more.

Texasgulf entered into an agreement with Geomet in 1974 and carried out drilling on 200 ft. to 250 ft. grids, followed-up with 100 ft. centres in 1977.

In 1979, Texasgulf returned the property to Geomet, which later dropped the property. Dalco Inc. (Dalco) restaked the property in the 1980s and in 1994, optioned it to Cameco who carried out evaluation and drilling in 1995 and 1996 but dropped the property in 1997. Ur Energy optioned the Dalco claims covering the main deposit area in 2005 and staked additional claims to the north.

TABLE 6 DRILLING RADON SPRINGS PROPERTY Ur–Energy Great Divide Basin Project Wyoming

Company Years Location Type Number of Feet Drillholes Geomet Exploration 1971-73 rotary 194 67,405

Texasgulf 1974-1978 Rotary/core 2,086 798,080 Cameco 1995-1996 Rotary 39 19,164 TOTAL 2,319 884,649

45 ROSCOE POSTLE ASSOCIATES INC.

PROPERTY GEOLOGY

Mineralization is not exposed on surface. Mineralized intervals are found at depths ranging from 125 ft. to 600 ft. The deposits occur in the 3,000 ft. thick Eocene Battle Spring Formation fluvial arkosic sandstones interbedded with siltstones, mudstones, and clays. Carbonaceous trash, fine- to coarse-grained pyrite, and chlorite, muscovite, and kaolinite clay are present locally. The Upper Radon Springs deposit consists of multiple braided paleostream channels 125 ft. to 175 ft. below surface, and overlies the Lower Radon Springs deposit, at 450 ft. to 550 ft. below surface. Strata dip 2° to 5° to the northeast. The water table is approximately 70 ft. to 100 ft. deep.

MINERALIZATION

The Radon Springs deposit has a northwest trend on the eastern part of the property, with northeast trends locally. Better mineralization generally occurs in thicker horizons, and units pinch out but are somewhat continuous along trend. The mineralization is largely controlled by paleochannels and solution fronts, with indications of fault-related

or tectonic control of linear zones. Grade ranges from 0.03% to 0.20% U3O8, with an

average of intercepts in the mineralized zone of 0.04% U3O8. Mineralization commonly occurs where minor northeast-trending paleochannels join with major northwest-trending paleochannels. Geomet initially described mineralization in terms of six intervals, 100 ft. to 450 ft. deep, with better grades between 100 and 120 ft. deep but with additional drilling interpreted the mineralization to consist of three zones totalling 120 ft. thick and less than 600 ft. deep. Several geochemical fronts have been identified in the area, and the deposit is considered to be open-ended to the north and south.

Uranium deposition occurred at sites of carbonaceous and humic material, generally along flanks of channels near clayey material. The best mineralization appears to be between the barren interior of a channel and its barren clayey flanks. The main zone of mineralization is 125 ft. to 275 ft. deep, and occurs as stacked systems at the Upper Radon Springs deposit. A narrower and higher-grade sinuous zone (greater than 0.10%

46 ROSCOE POSTLE ASSOCIATES INC.

U3O8) can be traced across the deposit as it crosses stratigraphy. Average thickness of the individual mineralized units is 6.0 ft. to 7.4 ft.

There is a second zone of mineralization below the Upper Radon which has been intersected in a few holes at depths between 450 ft. and 550 ft. Where it has been hit, the

grade of the lower horizon is 0.10% to 0.20% U3O8.

To the west and north of the main body of mineralization, a number of holes have intersected mineralization at depths of 380 ft. to 550 ft., overlain by several hundreds of feet of the Crooks Gap boulder conglomerate containing boulders up to 12 ft. across. Mineralization occurs in the upper Battle Spring Formation along channel flanks and in coarse gravels that contain highly pyritic zones with fragmental and sooty carbon. Further south, the mineralization has been encountered between 25 ft. and 350 ft. below surface. Grades reach a maximum of 0.48% U3O8 in a zone averaging 3 ft. of 0.25%

U3O8.

HISTORICAL RESOURCES

A number of resource estimates have been reported for the Radon Springs deposits. The most recent work was completed for Dalco in 1997 which reported a demonstrated resource of 1.4 million tons grading 0.084% containing 2.3 million lbs of uranium. The

resource estimate was based on the previous drilling. Cut-offs used were 0.025% U3O8 and 0.25 GT. Maximum distance between two mineralized holes was 300 ft. for demonstrated resources. RPA notes that the classification used is not in agreement with the CIM definitions as required by NI 43-101 and the resources are reported herein only for informational purposes.

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prepared to industry standards in place at the time and are considered relevant today. Ur is not treating the historical estimates as NI 43-101 defined resources or reserves verified by a qualified person and the historical estimates should not be relied upon.

Based on the extensive drilling and historic resource estimates RPA is of the opinion

that the property has the potential to host 2 to 16 mt grading 0.04% to 0.1% U3O8 containing 4 to 14 million lbs of uranium. The potential quantity and grade of this exploration target is conceptual in nature at the present time and there is no assurance that it will be defined by further exploration drilling.

48 LEGEND

UR-Energy Inc. RADON SPRINGS MINERALIZED AREAS Figure 16 Roscoe Postle Associates Inc. : June 2005 ROSCOE POSTLE ASSOCIATES INC.

NORTH HADSELL PROPERTY

HISTORY

Kermac and others worked the properties in the 1970s and found uranium mineralization on the eastern part of the claims. The “Alfred” mineralization is reported to grade 0.14% U3O8. In the mid 1970s Pioneer Nuclear and Wyoming Minerals drilled 24 holes on the western part of the current property on 400 foot spacing with 20 of the

holes intersecting mineralization grading better than 0.03% U3O8. The intervals reported range in depth from 526 ft. to 745 ft. with grades and thicknesses ranging from 0.05%

U3O8 over 11 ft. to 0.14% U3O8 over 14 ft. The mineralization is believed to be continuous with that found on the North Hadsell area which was explored by a joint venture consisting of Kermac and PVUV. Mineralization was reported between 150 ft.

and 600 ft. depths at an average grade of 0.10% U3O8. This area is not part of the current land package.

In the late 1990s Cameco carried out drilling on the southern group of claims and is reported to have intersected mineralization (Fruchey 2004).

PROPERTY GEOLOGY

There is little outcrop exposed on surface. The property is underlain by a thick sequence of fluvial sands, siltstones and mudstones belonging to the Battle Spring Formation. The arkosic sands which host the mineralization are fine to coarse grained, sub-angular and loosely consolidated. Individual sands vary in thickness from 5 ft. to 70 ft.

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MINERALIZATION

Mineralization found to date is reported to be similar to that found on the nearby Radon Springs and Lost Soldier properties. Reported grades and thicknesses range from

0.04% to 0.17 % U3O8 and 6 ft. to 30 ft. respectively. RPA has not seen any drill hole data to confirm the grades and thicknesses of the mineralization.

Based on the reported drilling and mineralization found to date, RPA is of the opinion that the property has the potential to host 2 to 6 million tons grading 0.04% to 0.10%

U3O8 containing 2 to 4 million lbs of uranium. The potential quantity and grade of this exploration target is conceptual in nature at the present time and there is no assurance that it will be defined by further exploration drilling.

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EXPLORATION

UR has not carried out any exploration on the properties and their work to date has consisted of ground acquisition and data compilation.

DRILLING

Drilling by previous operators is described above. UR has recently commenced drilling on the Lost Soldier Property but results are not yet available.

SAMPLING METHOD AND APPROACH

Typically the drill holes are not physically sampled but are logged by a continuously reading down-hole probe

Various property reports refer to core holes but details on the individual holes, locations and sample intervals are unknown. Typically the core samples would have been tested for permeability, density, porosity and chemical analysis in order to determine the disequilibrium factor. RPA is unaware of the procedure or sample intervals but has no reason not to believe that standard industry practices were used.

SAMPLE PREPARATION, ANALYSES AND SECURITY

Typically drilling was carried out by mud rotary drilling which is an inexpensive method to drill an open hole. The holes are then probed by an electric log system which records single-point resistivity, self potential and gamma ray counts. All of the collars were surveyed and tied into the section corners. TGS surveyed only a few holes for

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downhole drift and found major deviation for holes drilled below 400 ft. depth. From the drill plans, it appears that the Kermac holes were surveyed for down-hole deviation.

The gamma ray counts can be used to calculate the U3O8 content, which as discussed

previously, is actually eU3O8. Disequilibrium refers to chemical imbalance that is the

ratio between U235 and radioactive daughter products which are not in equilibrium. This imbalance results in the difference between assayed chemical uranium and equivalent uranium based on gamma ray logging. The difference may have a positive or negative effect on the actual uranium content. Diamond drill core holes were drilled to provide samples for chemical analysis. It was standard industry practice in the 1970s to use a disequilibrium factor in determining pounds of recoverable uranium. In general, the higher grade front generally has a favourable disequilibrium (higher chemical assay) while the tails or limbs and protore sections may have an unfavourable disequilibrium.

Chemical assays involve the solvent extraction of uranium from an aluminium nitrate solution using a tributyl phosphate iso-octane mixture as an extractant. Dibenzolmethone is used as the chromogenic (colouring) agent for AA analysis. Typically accuracy is ±

5% to 10% of contained uranium. This assay can be compared to the eU3O8 assays as determined by the downhole logging to produce a disequilibrium factor used to predict the in-situ amount of uranium from the gamma logs.

In 1976 TGS acquired their own gamma logging system. It is not known whether this system was used on all the TGS properties but Arnex (1980) carried out an evaluation of TGS methodologies for the Radon Springs property and reported that TGS did not rerun anomalous intervals (off scale) as was standard practice by the commercial operators. The “K factor” for the probe was not always monitored or recalibrated as required. There was also a problem with their computer program which was used to convert the counts

per second (cps) into eU3O8%. Some of the geophysical logs were sent to outside contractors for interpretation and Arnex refers to the potential problems related to the accuracy of the data input, digitization and calculation of eU3O8. Ur is in the process of reviewing the TGS data and preparing a new resource estimate.

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RPA is unaware of any particular security provisions that may have been in effect relating to the sampling and geophysical down-hole logging.

DATA VERIFICATION

RPA has not verified the data used to estimate the historical resources. However, RPA has reviewed some of the original electric and gamma ray logs plans and sections for the Lost Creek and Radon Springs, which Ur has in its possession. Selected logs were compared with the plan maps which show drill hole locations and down-hole intercepts. The information on the maps corresponds with the data in the logs. For the Lost Soldier Property, only a few drill logs are available but complete drill plans which indicate depths, intervals and grade are available. RPA notes that the maps and logs refer to the percent equivalent uranium. Although chemical assays are reported to be available in some cases, RPA has not seen the assay data.

Independent sampling was not carried out during the site visits as the significant mineralization is not exposed on the surface. RPA has no reason to believe that the equivalent uranium values reported are not consistent with the mineralization in general, although, because of the nature of the mineralization and disequilibrium, local variations will be observed. RPA is also of the opinion that the historical work was carried out under industry standards prevalent at that time with the exceptions as noted above regarding the Radon Springs property.

MINERAL PROCESSING AND METALLURGICAL TESTING

Ur has not carried out any metallurgical testing. Previous testwork has been discussed in the History sections.

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ENVIRONMENTAL

There were no obvious environmental liabilities seen during the site visit. Former drill sites are visible from the air but they are revegetated. As there are current ISL operations in Wyoming, permitting should proceed on a timely basis barring unforeseen difficulties.

INTERPRETATION AND CONCLUSIONS

RPA located reports listing various resource estimates on the Great Divide properties and is of the opinion that the historic resources listed in Table 7 are relevant to the properties.

TABLE 7 HISTORICAL MINERAL RESOURCE ESTIMATES Ur–Energy Great Divide Basin Project Wyoming

Property Company Year Classification Tons Grade % Million lbs eU3O8 U3O8 Lost Soldier New Frontiers 1991 demonstrated 2,000,000 0.151 6.3 inferred 1,200,000 0.16 3.8 Lost Creek TG 1982 all 4,600,000 0.0622 5.7 Radon Springs Dalco 1997 demonstrated 1,400,000 0.0843 2.3

Notes: RPA has rounded the numbers and totals may vary. Historic resources did not always record tons and RPA has back-calculated tons from the information provided.

RPA notes that all reference to % U3O8 refers to % equivalent U3O8 (% eU3O8) as determined by gamma-ray logging. This method of measuring the amount of uranium present in a drill hole is standard industry practice. However, the actual amount of uranium present in the rocks is dependent on the equilibrium factor and can vary by plus or minus 0% to 25%. Chemical analysis is required to determine the equilibrium factor.

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RPA notes that the classifications used are not in agreement with the CIM definitions as required by NI 43-101 and they are reported herein only for informational purposes.

These resources are historical in nature and were compiled before the implementation of National Instrument 43-101 reporting standards. Recent independent verification of the data has not been performed and Ur has not completed sufficient exploration to verify the historical resource estimates. The historical resources were estimated by employees of the various companies referred to in the table, were prepared to industry standards in place at the time and are considered relevant today. Ur is not treating the historical estimates as National Instrument defined resources or reserves verified by a qualified person and the historical estimates should not be relied upon.

RPA is also of the opinion that, for those properties that have complete drill data carried out by the previous operators, an estimate of Mineral Resources compliant with the CIM definitions and NI 43-101 could be completed if a statistical significant number of twin holes are drilled to confirm the tenure of the mineralization.

Based on the extensive drilling and historic resource estimates RPA is of the opinion that the Great Divide Properties have the potential to host 14 to 70 mt grading 0.04% to

0.16% U3O8 containing 20 to 60 million lbs of uranium. The potential quantity and grade of these exploration targets are conceptual in nature at the present time and there is no assurance that they will be defined by further exploration drilling.

RECOMMENDATIONS

Ur has proposed an exploration and development budget amounting to US$5.3 million that includes additional data acquisition and evaluation, rotary and core drilling, and evaluation of the in-situ-leaching potential which will require permitting and reclamation (Table 8).

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RPA is of the opinion that the properties are of merit and warrant the proposed programs and budgets.

TABLE 8 PROPOSED BUDGET Ur–Energy Great Divide Basin Project Wyoming

Task Unit Costs Total

Field Office Rent, office equipment, supplies 66,000 Travel, field expenses 30,000 Property legal, holding costs 150,000 Utilities, communication 15,000 Vehicles -5 210,000 Geophysical logging equipment 320,000 Computers, scintillometer 44,000 Sub Total 835,000 Lost Creek Property Ground geophysics 10 mi. @ $1,000 10,000 Data digitization 36,000 Technical staff 140 man mo.@$6,000 840,000 Rotary drilling 38,000 ft.@$8.00 304,000 Core drilling 4,800 ft.@$80 384,000 Chemical/metallurgical testing 225,000 Down-hole logging 48,000 Hydrological testing 375,000 Permitting, environmental studies 410,000 Surveying 25,000 Reclamation 50,000 Field Expenses, supplies 25,000

Sub Total 2,732,000

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TABLE 8 PROPOSED BUDGET (CONT) Task Unit Costs Total

Lost Soldier Property Data acquisition 450,000 Data digitization evaluation 75,000 Technical staff 120 man mo@$6,000 720,000 Rotary drilling 2,000 ft. @ $8 16,000 Core drilling 1,000 ft. @ $80 80,000 Down-hole logging 5,000 Surveying 50,000 Reclamation 50,000 Chemical/metallurgical testing 35,000 Permitting, environmental studies 75,000 Sub Total 1,556,000 Radon Springs Property Data acquisition 15,000 Data digitization, evaluation 25,000 Technical staff 25,000 Subtotal 65,000 North Hadsell Property Data acquisition 12,000 Data digitization, evaluation 25,000 Technical staff 20,000 Subtotal 57,000

TOTAL 5,245,000

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REFERENCES

REGIONAL

Boberg, W.W., (1980): Applied Exploration Geology and Uranium Resources of the Great Divide Basin: Wyoming; Draft manuscript, 31 pp.

Boberg, W.W., (1981): Some Speculations on the Development of Central Wyoming as a Uranium Province: Wyoming Geological Association Guidebook, 32nd Annual Field Conference, pp. 161-180.

Cameco (2005): 2004 Annual Report: filed on Sedar.

Fruchey, Dick, (2004): Project Summary, Great Divide Basin Uranium Project, Fremont & Sweetwater Counties, Wyoming: Report for New Frontiers Uranium L.L.C., 4 pp.

Great Divide Basin, Wyoming; in: NUEXCO (1981): No. 154, pp. 10-15.

International Atomic Energy Agency, (1985): Geological Environments of Sandstone- Type Uranium Deposits; Technical Document 328, 391 pp

Sherborne, J.E., Jr., Pavlak, S.J., Peterson, C.H., and Buckovic, W.A., (1979): Uranium Deposits of the Sweetwater Mine Area, Great Divide Basin Wyoming: Third Annual Uranium Seminar, AIME, pp. 27-37.

Welder, George E. and McGreevy, Laurence J., (1966): Ground-water Reconnaissance of the Great Divide and Washakie Basins and Some Adjacent Areas, Southwestern Wyoming: USGS Hydrologic Investigations Atlas, HA-219.

LOST SOLDIER PROPERTY

Carlson, Bill, (2005): Summary of Activities, Lost Soldier Uranium Project: Private Report for Ur- Energy Inc. 2 pp.

Ferris, Nick, (2005): Report of Activities, Lost Soldier Uranium project: Private Report for Ur-Energy Inc. 4 pp.

Fruchey, Dick, (2001): Lost Soldier Uranium Deposit, Wyoming: Report for New Frontiers Uranium, LLC, 31 pp.

Fruchey, Richard, (2004): Project Summary, Lost Soldier Uranium Project, Red Desert Basin, Sweetwater County, Wyoming: Report for New Frontiers Uranium, LLC, 5 pp.

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LOST CREEK PROPERTY

Cherokee Exploration, (1995): Phase One Report, Red Desert Evaluation, Sweetwater County, Wyoming: Private Report for PNC Exploration (USA) Inc. 10 pp.

Fruchey, Dick, and Groth, Fred, (2004): Project Summary, Lost Creek Uranium Project, Red Desert Basin, Sweetwater County, Wyoming: Report for New Frontiers Uranium, LLC, 9 pp.

Halliwell, Douglas, (1988): PNC Exploration (USA), Inc., Red Desert Project: Private Report, pp. 12-31.

Hydro-Search, Inc., (1982): 1982 Hydrogeology Program for the Conoco/Lost Creek Uranium Project: Private report for Texasgulf, Inc.

Ludeman, Frank, (1995): Preliminary In-situ Leach Analysis of the Lost Creek Uranium Deposit, Sweetwater County, Wyoming: Private Report for Cherokee Exploration Inc. 12 pp.

Morzenti, S.P., SKM Associates, (1997): Red Desert Project Scoping Evaluation: Private Report for Strathmore Resources, 21 pp.

Mouillac, J., and Stewart, M., (1982): Geology and Control of the Uranium Mineralization on the “Main Mineral Trend,” Conoco-Texasgulf Uranium Prospect, Red Desert, (Sweetwater County-Wyoming): Report for Texas Gulf Minerals and Metals Inc. pp. 1-26.

Texasgulf Minerals and Metals, Inc., (1984): Lost Creek and Conoco Uranium Projects, Sweetwater County, Wyoming: Private Report 33 pp.

RADON SPRINGS PROPERTY

Arnex Corporation, (1980): Preliminary Review and Evaluation of the Radon Springs Project, Fremont County, Wyoming: Private Report for Geomet Exploration Inc. 8 pp.

Culver, Glen, (1974): North Great Divide Basin Project, Fremont County, Wyoming: Private Report for Texasgulf Inc.

Culver, Glen, (1997): Evaluation of the Uranium Reserves, Radon Springs Property, Fremont county, Wyoming: Private Report for Dalco Inc.

Geomet, Inc, (1972): Crooks Gap Uranium Property: May 5, Private Report, pp. 1-13.

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Geomet Exploration, Inc., 1979(?), Property Description, Geomet Uranium Property, Containing the Upper Radon Springs, Lower Radon Springs, and the Bob Deposits: Private Report, 14 pp.

Hester, Brian W., and Polk, G. Kenneth, (Feb, 1977): Radon Springs Project, Wyoming, Status Report: Private Report for Texasgulf, Inc., 36 pp.

Hester, Brian W., and Polk, G. Kenneth, (Dec, 1977): Radon Springs Project, Wyoming, Status Report and Reserve Estimates: Private Report for Texasgulf, Inc., 33 pp.

Lane, Charles, (1978): Radon Springs, Progress Report for 1978: Private Report for Texasgulf Inc., 9 pp.

Moldzio, Guenter, (1976): Computer Evaluation of Uranium Exploration Data, Radon Springs Project: Private Report for Texasgulf Inc.

NORTH HADSELL PROPERTY Fruchey, Dick, (2004): North Hadsell Area, Great Divide Basin Project: Report for New Frontiers Uranium, L.L.C., 5 pp.

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SIGNATURE PAGE

This report titled Technical Report on the Great Divide Basin Uranium Properties, Wyoming, dated June 15, 2005 and revised October 20, 2005 was prepared by and signed by the following author:

______Dated at Vancouver British Columbia C. Stewart Wallis P. Geo. October 20, 2005 Consulting Geologist

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CERTIFICATE OF QUALIFICATIONS

I, C. Stewart Wallis P.Geo. do hereby certify that:

1. I am an independent consulting geologist employed by: Roscoe Postle Associates Inc. Suite 304, 595 Howe Street Vancouver, British Columbia, Canada V6C 2T5.

2. I graduated with a B.Sc. degree in Geology from McMaster University in 1967.

3. I am a member of the Association of Professional Engineers and Geoscientists of British Columbia and Saskatchewan, a Professional Geologist registered in the State of Wyoming, a Fellow of the Geological Association of Canada, a member of the CIM and SME, a Certified Professional Geologist as recognized by the American Institute of Professional Geologists.

4. I have worked as a geologist for a total of 36 years since my graduation from university.

5. I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI 43-101") and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience in uranium, I fulfill the requirements to be a "qualified person" for the purposes of NI 43 -101.

6. I am responsible for the overall preparation of the report of the technical report titled Technical Report on Great Divide Basin Uranium Properties, dated June 15, 2005 and revised October 20, 2005 (the "Technical Report"). I visited the properties on May 14, 2005.

7. I have had no prior involvement with the properties that are the subject of the Technical Report

8. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

9. I am independent of the issuer applying all of the tests in section 1.5 of National Instrument 43-101.

10. I have read National Instrument 43-101 and Form 43-101FI, and the Technical Report has been prepared in compliance with that instrument and form.

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11. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated this 20th day of October 2005

C. Stewart Wallis P. Geo.

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APPENDIX 1

CLAIM LIST

Unpatented Lode Mining Claims NEW FRONTIERS URANIUM LLC Lost Creek Project Area

# Location Claim Blocks of Sect Twp Rng Claims

DAR 1-5 5 19 25 92 DAR 6-15, DAR 34-51, DAR 72-75 32 24 25 93 DAR 16-31, DAR 52-71, DAR 76-79 40 25 25 93 DAR 32-33, DAR 104-123 22 13 25 93 DAR 80-97 18 17 25 92 DAR 98-101, DAR 124-135 16 18 25 92 SAGE 1-18 18 17 25 92 SAGE 19,21,23 3 18 25 92 SAGE 20,22,24 3 19 25 92 TONY 69-78 10 19 25 92 TONY 131-140 10 24 25 93

TOTAL 177

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Unpatented Lode Mining Claims NEW FRONTIERS URANIUM LLC Lost Soldier Project Area

# Location Claim Blocks of Claims Sect Twp Rng LS 35, 36 2 14 26 91 LS 37-50 14 6 26 90 LS 51 1 18 26 90 DEER 20, 22, 31-36, 38, 43, 45, 47, 49 13 7 26 90 EGO 31, 33, 35, 70-77, 79 12 7 26 90 EGO 81, 83 2 12 26 91 EGO 101-110 10 18 26 90 EGO111-120, 122, 124, 126 13 13 26 91 HADSELL 222, 224, 226 3 14 26 91

TOTAL 70

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Unpatented Lode Mining Claims NEW FRONTIERS URANIUM LLC North Hadsell Project Area

# Location Claim Blocks of Claims Sect Twp Rng LET 1-36 36 5 26 91 LET 37-54 18 4 26 91 LET 73-81 9 8 26 91 LET 82-99, LET 116-124 27 31 27 91 LET 100-115, LET 125-128 20 32 27 91 LET 129-135 7 25 27 92

TOTAL 117

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Unpatented Lode Mining Claims UR-ENERGY USA INC. Radon Springs Project Area

# Location Claim Blocks of Claims Sect Twp Rng RS 100-111, RS 128-135 20 6 27 92 RS 136-171 36 1 27 93 RS 172-176, RS 284-287, RS 357-360 13 12 27 93 RS 177-184 8 7 27 92 RS 185-220 36 26 28 93 RS 221-256 36 2 27 93 RS 257-283 27 11 27 93 RS 288-323 36 35 28 93 RS 349-354 6 23 28 93 MET #2 1 7 27 92 TYE #5 & #7 2 7 27 92 WEST FORK 20A & 45 2 7 27 92 WEST FORK 18A & 19A 2 12 27 93

TOTAL 225