Ur-Energy Announces Closing of US$120 Million Offering of 4.75% Convertible Senior Notes Due 2031, Including Full Exercise of Initial Purchasers' Option to Purchase Additional Notes

On December 15, 2025, Ur-Energy announced the closing of an upsized US$120 million offering of 4.75% convertible senior notes due in 2031. The offering, initially proposed at US$100 million on December 10, was oversubscribed and included the full exercise of the initial purchasers' US$15 million option. The notes have an interest rate of 4.75% per annum and a conversion price of approximately US$1.73 per share, representing a 27.5% premium to the reference share price on December 10, 2025. The company also entered into capped call transactions to mitigate potential shareholder dilution. The net proceeds will be used to strengthen the balance sheet, fund the production ramp-up at the Lost Creek mine, finalize construction at the Shirley Basin project, and support exploration and development.

This financing is a material positive event that significantly de-risks the company's strategic plan. The analysis of historical news and financial statements reveals a company in a capital-intensive phase, simultaneously ramping up one mine (Lost Creek) and constructing another (Shirley Basin).

• Context of Need: The Q3 2025 financial statements (filed November 3, 2025) highlighted the clear need for this capital. The company's cash position had declined to US$52 million from US$76 million at the start of the year. The cash flow statement for the first nine months of 2025 showed a combined cash burn of over US$38 million from operations and investing activities. At this rate, the company's treasury would be under significant pressure in 2026, precisely when capital expenditures for Shirley Basin would be peaking. This financing removes that funding overhang entirely.

• Strength of Offering: The offering was initially announced at US$100 million on December 10 and was subsequently upsized to US$120 million due to strong demand, including from new institutional investors. An oversubscribed offering is a strong vote of confidence from the market in the company's strategy and management.

• Financing Terms:

  • The 4.75% coupon is an attractive rate for the company, though it does introduce an annual interest expense of US$5.7 million.
  • The conversion price of US$1.73 represents a reasonable premium.
  • Crucially, the use of "capped call transactions" is a shareholder-friendly move. As stated by the CEO, this mitigates dilution until the share price significantly increases (potentially doubles from the reference price), allowing the company to fund growth while protecting existing shareholder value up to a specified cap.

• Use of Proceeds: The funds are earmarked for the company's two key value-driving projects: achieving steady-state production at Lost Creek and completing construction at Shirley Basin. This provides a clear, fully-funded path to becoming a two-mine producer.

In summary, the news is not just routine financing; it's a strategic capital raise that secures the company's growth trajectory for the next 2-3 years. It addresses the primary risk identified from their financial statements (cash burn) and was executed from a position of strength.

Ur-Energy Inc. is a U.S.-based uranium mining company focused on in-situ recovery (ISR) operations in Wyoming. - Flagship Project (Producing): The Lost Creek ISR Uranium Facility. It has been in operation intermittently and is currently in a ramp-up phase to return to commercial production levels. The company has been working through 2025 to increase wellfield flow rates and plant efficiency. - Development Project: The Shirley Basin ISR Uranium Project. This is a fully permitted project currently under construction. Ur-Energy is targeting initial production in early 2026. Once operational, it will make Ur-Energy a multi-asset producer and is expected to nearly double the company's production capacity to a licensed total of 2.2 million pounds U3O8 annually.