Ur-Energy Inc.
TSX : URE

Ur-Energy Inc.

August 01, 2006 10:06 ET

Ur-Energy Inc. Announces an Increase to $16,500,000 in its "Bought Deal" Financing

TORONTO, CANADA--(CCNMatthews - Aug. 1, 2006) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ur-Energy Inc. (TSX:URE) is pleased to announce that due to significant interest in the offering, Ur-Energy has entered into a revised agreement with a syndicate of underwriters led by GMP Securities L.P. and including Dundee Securities Corp. and Raymond James Ltd. who have agreed to increase their purchase, on a bought deal basis, to 7,500,000 Common Shares of the Company at a purchase price of $2.20 per Common Share, for aggregate gross proceeds of approximately $16,500,000 instead of $15,000,000 announced yesterday. The underwriters will continue to have an over-allotment option, exercisable for a period of 30 days following the closing date, to purchase up to an additional 1,022,727 Common Shares of the Company on the same terms and conditions for market stabilization and over-allotment purposes. The Company intends to use the net proceeds to advance its uranium projects, for potential acquisitions and for general working capital purposes.

The Common Shares to be issued under this offering will be offered by way of a short form prospectus in all provinces in Canada, other than Quebec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on or about August 30, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

Ur-Energy is involved in uranium exploration and development. Its portfolio is comprised of two uranium development and eight exploration projects in Wyoming, one exploration project in the Northwest Territories and one exploration project in Nunavut. It has four wholly owned subsidiaries: Ur-Energy USA Inc., NFU Wyoming, LLC, ISL Resources Corporation and CBM-Energy Inc.

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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