Ur-Energy Inc.
TSX : URE

Ur-Energy Inc.

December 11, 2006 09:00 ET

Radon and TEM Results Vector in on Drill Targets for Ur-Energy Inc. Screech Property, NT

DENVER, COLORADO--(CCNMatthews - Dec. 11, 2006) - Ur-Energy Inc. (TSX:URE)("Ur-Energy" or the "Company") is pleased to provide an update on results of radon in soil sampling and ground geophysical surveys on the Screech Property in 2006. The surveys were a follow up of programs that commenced in 2005 and were successful in better defining anomalous features outlined by the earlier work. Several highly prospective anomalies have been delineated and will be targeted for drill testing during the 2007 field season.

Screech Lake is located in the southwestern part of the Thelon Sandstone Basin in the Northwest Territories and was the setting for exploration by Urangesellschaft Canada Ltd. (UG) during the 1970s. UG focused on an area with very high levels of radon and radiogenic helium around Screech Lake. The source of the radon and helium was determined to be fissures emitting radioactive waters into the bottom of the lake and springs emanating ground water and gas bubbles around the southwestern shore of the lake. In 2005, Ur-Energy carried out a radon survey that confirmed and refined the UG results and detected a new area with high radon concentrations to the northeast of the lake.

In 2006, the radon sampling grids were extended and measurements have now been collected from over 1,500 sites. Results show that the area with high radon levels at Screech Lake has a length in excess of three kilometres, continuing along the entire north shore of the lake and eastward. The coincidence of consistently high to extremely high radon with interpreted deep structural displacement and conductivity make the North Screech Radon Trend a primary target for drill evaluation.

The 2006 radon work also delineated significant new anomalies in the west-central, south-central and southeastern parts of the property. The BT Trend lies to the west of Screech Lake and was identified by a 2005 airborne MegaTEM™ survey. It is a SW-NE striking formational zone of basement conductivity interpreted to correspond to graphitic metasediments. Radon measurements show a strong anomaly near the eastern end of the conductive zone where it appears to be truncated by fault displacement. The concurrence of very high surface radon, basement formational graphite and interpreted sub-vertical structural displacement make the BT Anomaly a high priority target. Southeast of the eastern end of Screech Lake, the South SL Radon Trend lies sub-parallel to the North Screech Radon Trend and coincides with a zone of deep conductivity interpreted to be caused by basement structures. The SE-A1 Trend is located in the southeastern part of the Screech Lake Property. It is an east-west striking radon anomaly and coincides with a zone of strong conductivity, as indicated by the MegaTEM™ survey.

Ground geophysical work on the Screech Property in 2006 comprised transient electromagnetic (TEM), total magnetic field, and VLF-EM surveys over the Screech Lake grid and the SE Anomaly. The work was done in April and May by Aurora Geosciences Ltd and final results were received in late October. Several TEM anomalies were detected. The strongest coincides with the extremely high radon readings in the western part of Screech Lake. It is interpreted by Aurora's geophysicist to be "a target of merit possibly originating at the top of an alteration zone associated with uranium mineralization".

On the SE Anomaly, a weak, steeply dipping tabular conductor intersects a significant change in apparent regolith thickness at depth and is interpreted as a subvertical fault. The surface expression of this target coincides with the SE-A1 radon anomaly.

Additionally, the TEM profiles provide key information on the depth to the unconformity, regolith thicknesses, and vertical fault displacement of the basement. In conjunction with the radon survey results, this information will be critical to targeting drill holes for unconformity-type uranium deposits.

Ur-Energy is currently in the process of acquiring a Land Use Permit for the Screech Property. Once granted, the Company will proceed with drill testing of the high priority targets. An initial drill program comprising a minimum of 3,500 metres in five holes is recommended by J. D. Charlton, P. Geo., project manager for the Screech Property.

Ur-Energy is a dynamic junior mining company focused on development of uranium production from 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. The Company has its registered corporate office in Ottawa, Canada and its headquarters in Littleton, Colorado. The website is at www.ur-energy.com.

The Qualified Persons for Ur-Energy Inc. with respect to the Company's Canadian properties, as defined by National Instrument 43-101, are Paul W. Pitman, P.Geo, Vice President Canadian Exploration, and J.D. Charlton, P.Geo., Senior Consultant and Project Manager.

This release may contain 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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