Ur-Energy Inc.

Ur-Energy Inc.

August 14, 2006 18:35 ET

Ur-Energy Inc. Announces Filing of Final Prospectus for $16,500,000 "Bought Deal" Financing


Ur-Energy Inc.(TSX:URE)(Ur-Energy) announced today that it has filed a final short form prospectus with the securities commissions in British Columbia, Alberta, Saskatchewan and Ontario relating to the previously announced proposed common share bought deal. A syndicate of underwriters led by GMP Securities L.P. and including Dundee Securities Corporation and Raymond James Ltd. have agreed to purchase, on a bought deal basis, 7,500,000 common shares of Ur-Energy, at a price of $2.20 per share, for gross proceeds of $16,500,000. The underwriters 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 on the same terms and conditions for market stabilization and over-allotment purposes. This transaction is anticipated to close on or about August 30, 2006.

The net proceeds of the offering will be used to fund existing uranium projects in Wyoming, USA, possible acquisitions of new uranium properties and for general working capital. Ur-Energy currently has 58,986,926 common shares issued and outstanding.

The common shares have not been, and will not be registered under the United States Securities Act of 1933, as amended, (the "Act") and may not be sold or offered for sale in the United States or otherwise distributed in the United States unless they are registered under the Act or an exemption therefrom is available.

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

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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