Ur-Energy Inc.

Ur-Energy Inc.

October 24, 2006 09:15 ET

Mine Permitting of Ur-Energy Wyoming Uranium Properties on Schedule

DENVER, COLORADO--(CCNMatthews - Oct. 24, 2006) - Ur-Energy Inc. (TSX:URE) (Ur-Energy) announced today that it continues to be on schedule with its mine permitting program for both the Lost Creek and Lost Soldier uranium deposits in the Great Divide Basin in Wyoming.

Harold Backer, VP of Operations for Ur-Energy, USA reports that "significant field work leading to characterization of the uranium deposits has been completed. Thirty-four wells, seventeen on each project, were drilled for subsurface water quality, baseline and pump test studies. A first round of water quality sampling has already been completed and pump testing by Hydro-Engineering, LLC to determine the hydrologic characterization of the mineralized uranium sandstone units for in-situ mining will begin later this month."

This field season AATA International, Inc. completed extensive baseline data collection surveys within the 9.1 square mile (2363 hectare) area of both projects. This work consisted of examining soils and vegetation, archaeological examinations and wetland area, wildlife, threatened & endangered species, and aquatic ecology surveys. Currently, AATA is finalizing background radiological gamma surveys for both properties. Monitoring programs for air quality and surface water quality have been ongoing since earlier this year in conjunction with a dedicated installed on-site meteorological station which has been providing continuous meteorological data. A socioeconomic/socio-cultural program designed specifically for the permitting program is now being implemented according to schedule.

Lyntek Incorporated, an experienced planning and engineering consulting company is completing a study for potential plant sites along with utilities and access roads. Bids for a mining feasibility study for both projects will be solicited as early as this November.

Agency liaison with the Wyoming Department of Environmental Quality, the U.S. Bureau of Land Management and the U.S. Nuclear Regulatory Commission (NRC) has been ongoing and Ur-Energy hosted several agency field visits on both projects during the past quarter. The NRC has issued a Docket Number and a Technical Assignment Control (TAC) Number for the projects. The target for successful permitting of the project is by the end of 2008, and all components are currently on schedule.

Bill Boberg, President and CEO, states "All work on both projects has been continuing to progress on schedule and within budget. I am proud of our dedicated technical team and our outstanding contractors for their attention to detail and willingness to maintain the focus on our projects to assure that our production goal, starting in late 2008, will be reached. The Company intends to ramp up to full production by late 2009."

Ur-Energy is a dynamic junior mining company focused on production of uranium for properties in the United States and exploration for uranium deposits in both the United States and Canada. Shares of the corporation trade on the Toronto Stock Exchange under the symbol URE. Ur-Energy has a registered corporate office in Ottawa, Canada and its headquarters in Littleton, Colorado. The company's website is at www.ur-energy.com.

The Qualified Person for Ur-Energy Inc., as defined by National Instrument 43-101, is W. William Boberg, President and CEO.

This release contains forward-looking statements regarding capital and processing cost estimates, production rates, amounts, timetables and methods, mining methods, metallurgical recovery rates, government permitting timetables and strategic plans and are based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and other costs varying significantly from estimates, production rates, methods and amounts varying from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in development and other factors. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward looking statements. The forward-looking statements contained herein are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances.

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