Exhibit 99.1
 
 
 
 
 
 
 

Ur-Energy Inc.
(a Development Stage Company)

Unaudited Consolidated Financial Statements

March 31, 2009

(expressed in Canadian dollars)
 
 
 
 
 
 
 
 
 
Ur-Energy Inc.
(a Development Stage Company)
Unaudited Consolidated Balance Sheets
(expressed in Canadian dollars)


   
March 31,
2009
    
December 31,
2008
  
   
$
    
$
  
                 
                 
Assets
                
                 
Current assets
                
Cash and cash equivalents (note 3)
     21,978,755       25,799,735  
Short-term investments (note 3)
     37,156,808       39,174,200  
Marketable securities
     22,500       7,500  
Amounts receivable
     68,532       132,710  
Prepaid expenses
     119,485       77,777  
                 
      59,346,080       65,191,922  
                 
Bonding and other deposits (note 4)
     3,891,753       2,578,825  
Mineral properties (note 5)
     32,237,403       31,808,821  
Capital assets (note 6)
     1,549,070       1,631,304  
Construction in progress (note 7)
     380,912       323,093  
                 
      38,059,138       36,342,043  
                 
      97,405,218       101,533,965  
                 
                 
Liabilities and shareholders’ equity
                
                 
Current liabilities
                
Accounts payable and accrued liabilities
     1,352,519       2,265,058  
                 
Future income tax liability
     478,000       478,000  
Asset retirement obligation (note 8)
     602,307       513,576  
                 
      2,432,826       3,256,634  
                 
                 
Shareholders’ equity (note 9)
                
Capital stock
     144,805,960       144,396,460  
Contributed surplus
     13,002,048       12,721,559  
Deficit
     (62,835,616 )     (58,840,688 )
                 
      94,972,392       98,277,331  
                 
      97,405,218       101,533,965  

The accompanying notes are an integral part of these consolidated financial statements

Approved by the Board of Directors
 
(signed)  /s/ Jeffery T. Klenda        
 
Director(signed)   /s/ Thomas Parker Director
 
Page 1
 
Ur-Energy Inc.
(a Development Stage Company)
Unaudited Consolidated Statements of Operations, Comprehensive Loss and Deficit
(expressed in Canadian dollars)
 
   
Three
Months
ended
March 31,
2009
    
Three
Months
ended
March 31,
2008
    
Cumulative
From
March 22,
2004 to
March 31,
2009
  
   
$
     $     $  
           
(as restated –
see Note 2
 )        
                         
Expenses
                        
General and administrative
     1,360,188       1,836,285       23,283,237  
Exploration and evaluation
     1,236,265       1,494,930       41,018,818  
Development expense
     2,376,488       -       11,231,024  
Write-off of mineral properties
     63,561       -       383,206  
                         
      (5,036,502 )     (3,331,215 )     (75,916,285 )
                         
Interest income
     400,743       789,280       6,479,182  
Foreign exchange gain
     634,331       652,446       6,202,570  
Other income (loss)
     6,500       (11,685 )     (30,138 )
                         
      1,041,574       1,430,041       12,651,614  
                         
Loss before income taxes
     (3,994,928 )     (1,901,174 )     (63,264,671 )
                         
Recovery of future income taxes
     -       -       429,055  
                         
Net loss and comprehensive loss for the period
     (3,994,928 )     (1,901,174 )     (62,835,616 )
                         
Deficit - Beginning of period
                        
As previously reported
     (58,840,688 )     (13,080,150 )     -  
Change in policy for accounting for exploration and development costs (note 2)
     -       (27,906,953 )     -  
                         
As restated
     (58,840,688 )     (40,987,103 )     -  
                         
Deficit - End of period
     (62,835,616 )     (42,888,277 )     (62,835,616 )
                         
                         
Weighted average number of shares outstanding,
                        
basic and diluted
     93,684,163       92,269,816          
                         
Loss per common share, basic and diluted
     (0.04 )     (0.02 )        

The accompanying notes are an integral part of these consolidated financial statements

 
 
Page 2
 

Ur-Energy Inc.
(a Development Stage Company)
Unaudited Consolidated Statements of Cash Flow
(expressed in Canadian dollars)
 
   
Three
Months
ended
March 31,
2009
    
Three
Months
ended
March 31,
2008
    
Cumulative
From
March 22,
2004 to
March 31,
2009
  
    $     $     $  
           
(as restated –
see Note 2
 )        
                         
Cash provided by (used in)
                        
                         
Operating activities
                        
Net loss for the period
     (3,994,928 )     (1,901,174 )     (62,835,616 )
Items not affecting cash:
                        
Stock based compensation
     280,489       853,144       15,042,686  
Amortization of capital assets
     153,129       88,187       779,193  
Provision for reclamation
     88,731       -       602,307  
Write-off of mineral properties
     63,561       -       383,206  
Foreign exchange gain
     -       16,597       (2,297,981 )
Gain on sale of assets
     -       -       (5,361 )
Non-cash exploration costs (credits)
     -       -       2,726,280  
Other loss (income)
     (6,500 )     15,000       8,498  
Future income taxes
     -       -       (429,055 )
Change in non-cash working capital items:
                        
Amounts receivable
     64,178       677,989       (68,532 )
Prepaid expenses
     (41,708 )     (18,823 )     (119,485 )
Accounts payable and accrued liabilities
     (912,539 )     (839,517 )     1,352,519  
                         
      (4,305,587 )     (1,108,597 )     (44,861,341 )
                         
Investing activities
                        
Mineral properties
     (91,143 )     (143,070 )     (10,551,955 )
Construction in progress
     (57,819 )     -       (380,912 )
Purchase of short- term investments
     (481,808 )     -       (217,437,819 )
Sale of short-term investments
     2,499,200       49,989,021       180,281,011  
Increase in bonding and other deposits
     (1,312,928 )     10,832       (3,891,753 )
Proceeds from sale of assets
     -       -       26,344  
Purchase of capital assets
     (70,895 )     (308,712 )     (2,306,654 )
                         
      484,607       49,548,071       (54,261,738 )
                         
Financing Activities
                        
Issuance of common shares and warrants
     -       2,750,000       122,668,053  
Share issue costs
     -       (110,000 )     (2,569,025 )
Proceeds from exercise of warrants, compensation options and stock options
     -       46,250       18,567,931  
Payment of New Frontiers obligation
     -       -       (17,565,125 )
                         
      -       2,686,250       121,101,834  
                         
Net change in cash and cash equivalents
     (3,820,980 )     51,125,724       21,978,755  
                         
Cash and cash equivalents - Beginning of period
     25,799,735       26,312,757       -  
                         
Cash and cash equivalents- End of period
     21,978,755       77,438,481       21,978,755  
                         
 
Non-cash financing and investing activities:
Common shares issued for properties
    
409,500
                  
 
 
The accompanying notes are an integral part of these consolidated financial statements

 
 
Page 3
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Consolidated Financial Statements
March 31, 2009
(expressed in Canadian dollars)
 
1.  
Nature of operations

Ur-Energy Inc. (the "Company") is a development stage junior mining company engaged in the identification, acquisition, evaluation, exploration and development of uranium mineral properties in Canada and the United States.  The Company has not determined whether the properties contain mineral reserves.  The recoverability of amounts recorded for mineral properties is dependent upon the discovery of economically recoverable resources, the ability of the Company to obtain the necessary financing to develop the properties and upon attaining future profitable production from the properties or sufficient proceeds from disposition of the properties.  The Company is currently in the process of permitting its Lost Creek property.

2.  
Significant accounting policies

Basis of presentation

Ur-Energy Inc. was incorporated on March 22, 2004 under the laws of the Province of Ontario.  The Company continued under the Canada Business Corporation Act on August 7, 2006.  These financial statements have been prepared by management in accordance with accounting principles generally accepted in Canada and include all of the assets, liabilities and expenses of the Company and its wholly-owned subsidiaries Ur-Energy USA Inc., NFU Wyoming, LLC, Lost Creek ISR, LLC, The Bootheel Project, LLC, NFUR Bootheel, LLC, Hauber Project LLC, NFUR Hauber, LLC, ISL Resources Corporation, ISL Wyoming, Inc. and CBM-Energy Inc.  All inter-company balances and transactions have been eliminated upon consolidation. Ur-Energy Inc. and its wholly-owned subsidiaries are collectively referred to herein as the “Company”.

These unaudited interim consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. Except as set out below, the accounting policies used in the preparation of the interim consolidated financial statements conform to those used in the Company’s annual financial statements for the year ended December 31, 2008 and reflect all normal and recurring adjustments considered necessary to fairly state the results for the periods presented.

These unaudited interim consolidated financial statements do not conform in all respects to the requirements of generally accepted accounting principles for annual financial statements.  These unaudited interim consolidated financial statements should be read in conjunction with the most recent audited annual consolidated financial statements for the year ended December 31, 2008.

Exploration accounting policy change

In December 2008, the Company changed its policy for accounting for exploration and development expenditures.  In prior years, the Company capitalized all direct exploration and development expenditures.  Under its new policy, exploration, evaluation and development expenditures, including annual exploration license and maintenance fees, are charged to earnings as incurred until the mineral property becomes commercially mineable.

Management considers that a mineral property will become commercially mineable when it can be legally mined, as indicated by the receipt of key permits.  Development expenditures incurred subsequent to the receipt of key permits will be capitalized and amortized on the unit-of-production method based upon the estimated recoverable resource of the mineral property.  Management believes that this treatment provides a more relevant and reliable depiction of the Company’s asset base and more appropriately aligns the Company’s policies with those of comparable companies in the mining industry at a similar stage.

The Company has accounted for this change in accounting policy on a retroactive basis.  The comparative operating results for the three months ended March 31, 2008 were  restated as follows:  expenses increased by $0.7 million, net loss increased by $0.7 million, and loss per common share increased by $0.01.

The Company will continue to capitalize the acquisition costs of mineral properties and capital assets.


 
 
Page 4
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Consolidated Financial Statements
March 31, 2009
(expressed in Canadian dollars)
 
Adoption of new accounting pronouncement
Sections 3064 – Goodwill and Intangible Assets

Effective January 1, 2009 the Company adopted new CICA Handbook Section 3064, “Goodwill and Intangible Assets”, which will replaces Section 3062, “Goodwill and Intangible Assets”. The new standard establishes revised standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets. The new standard also provides guidance for the treatment of preproduction and start-up costs and requires that these costs be expensed as incurred.  The adoption of this standard did not have a material impact on the these consolidated financial statements.

3.  
Cash and cash equivalents and short-term investments

The Company’s cash and cash equivalents are comprised of:

Cash and cash equivalents
  
As at
March 31,
2009
    
As at
December 31,
2008
  
   
$
     $  
Cash on deposit at banks
     306,653       392,170  
Guaranteed investment certificates
     8,037,500       9,087,500  
Money market
     7,383,350       1,031,882  
Certificates of deposit
     6,251,252       15,288,183  
                 
      21,978,755       25,799,735  

The Company’s cash equivalents and short-term investments consist of Canadian dollar and US dollar denominated guaranteed investment certificates, money market funds and certificates of deposits.  They bear interest at annual rates ranging from 0.30% to 3.25% and mature at various dates up to May 5, 2009.  These instruments are maintained at financial institutions in Canada and the United States.  Of these amounts, approximately $0.4 million is covered by either the Canada Deposit Insurance Corporation or the Federal Deposit Insurance Corporation, leaving approximately $58.7 million at risk should the financial institutions with which these amounts are invested cease trading.  As at March 31, 2009, the Company does not consider any of its financial assets to be impaired.

4.  
Bonding and other deposits

Bonding and other deposits include $3,869,260 (December 31, 2008 – $2,556,815) of reclamation bonds deposited with United States financial institutions as collateral to cover potential costs of reclamation related to properties. Once the reclamation is complete, the bonding deposits will be returned to the Company.

5.  
Mineral properties
 
   
Canada
    
USA
    
Total
  
                         
 
Canadian
Properties
$
    
Lost Creek/
Lost Soldier
$
    
Other
US
Properties
$
     $  
                           
Balance
December 31, 2008
     617,160       24,316,716       6,874,945       31,808,821  
                                 
Acquisition costs
     -       -       475,051       475,051  
Staking and claim costs
     (30,021 )     893       8,835       (20,293 )
Labor costs
     -       2,770       32,907       35,677  
Outside service costs
     -       -       1,629       1,629  
Other costs
     -       -       79       79  
Write-off
     (63,561 )     -       -       (63,561 )
                                 
Balance
 
March 31, 2009
     523,578       24,320,379       7,393,446       32,237,403  

 
 
Page 5
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Consolidated Financial Statements
March 31, 2009
(expressed in Canadian dollars)

Canada

The Company's Canadian properties include Screech Lake, which is located in the Thelon Basin, Northwest Territories and Bugs, which is located in the Kivalliq region of the Baker Lake Basin, Nunavut.  During the three months ended March 31, 2009, the Company wrote off mineral property costs associated with the Eyeberry claims.

United States

Lost Creek and Lost Soldier

The Company acquired certain of its Wyoming properties when Ur-Energy USA entered into the Membership Interest Purchase Agreement (“MIPA”) with New Frontiers Uranium, LLC on June 30, 2005.  Under the terms of the MIPA, the Company purchased 100% of the issued and outstanding membership interests in NFU Wyoming, LLC.  Assets acquired in this transaction include the extensively explored and drilled Lost Creek and Lost Soldier projects, and a development database including more than 10,000 electric well logs, over 100 geologic reports and over 1,000 geologic and uranium maps covering large areas of Wyoming, Montana and South Dakota.  The 100% interest in NFU Wyoming was purchased for an aggregate consideration of $24,515,832 (US$20,000,000).  A royalty on future production of 1.67% is in place with respect to 20 claims comprising a small portion of the Lost Creek project claims.

Other US Properties

The Company’s other US properties include EN, RS, and Bootheel and Buck Point, which are located in Wyoming.

In January 2009, the Company entered into certain agreements for the transfer of certain land claims, royalties and other property rights for an aggregate consideration of 650,000 common shares and US$64,000.  The acquisition primarily related to additions to the Company’s EN claim group.

6.  
Capital assets
 
     
March 31, 2009
      
December 31, 2008
  
                                                 
Capital assets:
    
Cost
$
      
Accumulated Amortization
$
      
Net Book Value
$
      
Cost
$ 
      
Accumulated Amortization
$
      
Net Book Value
$
  
                                                 
Light vehicles
     661,743       254,751       406,992       656,184       215,238       440,946  
Heavy mobile equipment
     424,559       133,975       290,584       424,559       103,903       320,656  
Machinery and equipment
     780,085       282,438       497,647       780,085       232,390       547,695  
Furniture and fixtures
     191,530       57,204       134,326       189,987       48,829       141,158  
Computer equipment
     209,483       77,797       131,686       178,633       66,672       111,961  
Software
     158,354       70,519       87,835       125,411       56,523       68,888  
                                                 
      2,425,754       876,684       1,549,070       2,354,859       723,555       1,631,304  
 
 
 
Page 6
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Consolidated Financial Statements
March 31, 2009
(expressed in Canadian dollars)


7.  
Construction in progress

   
USA
          
Total
  
Construction in progress:
  
Lost Creek
              
   
$
            
$
  
                       
Balance
December 31, 2008
     323,093               323,093  
                         
Plant design costs
     57,819               57,819  
                         
Balance
March 31, 2009
     380,912               380,912  

8.  
Asset retirement obligation

The Company has recorded $602,307 for asset retirement obligations (December 31, 2008 – $513,576) which represents an estimate of costs that would be incurred to remediate the exploration and development properties.  The retirement obligations recorded relate entirely to exploration and development drill holes on the Company's Wyoming properties.


9.  
Shareholders’ equity and capital stock

Authorized

The Company is authorized to issue an unlimited number of common shares and an unlimited number of Class A preference shares with the rights, privileges and restrictions as determined by the Board of Directors at the time of issuance.

No class A preference shares have been issued

   
Capital Stock
    
Contributed
    
Accumulated
    
Shareholders’
  
   
Shares
#
    
Amount
$
    
Surplus
$
    
Deficit
$
 
  
Equity
$
  
                               
Balance
December 31, 2008
     93,243,607       144,396,460       12,721,559       (58,840,688 )     98,277,331  
                                         
Common shares issued for properties
     650,000       409,500       -       -       409,500  
Non-cash stock compensation
     -       -       280,489       -       280,489  
Net loss and comprehensive loss
     -       -       -       (3,994,928 )     (3,994,928 )
                                         
Balance
March 31, 2009
     93,893,607       144,805,960       13,002,048       (62,835,616 )     94,972,392  

2009  issuances

In January 2009, the Company entered into certain agreements for the transfer of certain land claims, royalties and other property rights for an aggregate consideration of 650,000 common shares and US$64,000.  The acquisition primarily related to additions to the Company’s EN claim group.

Stock options

On November 17, 2005, the Company’s Board of Directors approved the adoption of the Company's stock option plan (the “Plan”).  Eligible participants under the Plan include directors, officers and employees of the Company and consultants to the Company.  Under the terms of the Plan, options generally vest with Plan participants as follows: 10% at the date of grant; 22% four and one-half months after grant; 22% nine months after grant; 22% thirteen and one-half months after grant; and, the balance of 24% eighteen months after the date of grant.
 
 
 
Page 7
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Consolidated Financial Statements
March 31, 2009
(expressed in Canadian dollars)
 
Activity with respect to stock options is summarized as follows:
   
Number
    
Weighted-average
exercise price
$
  
             
Outstanding
December 31, 2008
     6,228,700       1.95  
                 
Granted
     1,075,473       0.66  
Exercised
     -       -  
Forfeited
     (3,400 )     1.65  
Expired
     (11,200 )     1.65  
                 
Outstanding
March 31, 2009
     7,289,573       1.76  

As at March 31, 2009, outstanding stock options are as follows:
 
 
 
Options outstanding
    
Options exercisable
    
             
Exercise price
$
  
Number of
options
    
Weighted-
average
remaining
contractual
life (years)
    
Number of
options
    
Weighted-
average
remaining
contractual
life (years)
  
Expiry
                           
1.25
     2,440,800       1.6       2,440,800       1.6  
November, 17, 2010
2.01
     75,000       2.0       75,000       2.0  
March 25, 2011
2.35
     1,450,000       2.1       1,450,000       2.1  
April 21, 2011
2.75
     399,200       2.5       399,200       2.5  
September 26, 2011
4.75
     45,000       3.1       45,000       3.1  
May 15, 2012
3.67
     200,000       3.3       200,000       3.3  
July 15, 2012
3.00
     437,500       3.4       437,500       3.4  
August 9, 2012
3.16
     50,000       3.5       50,000       3.5  
September 17, 2012
2.98
     50,000       3.5       38,000       3.5  
October 5, 2012
4.07
     30,000       3.6       22,800       3.6  
November 7, 2012
2.11
     25,000       4.0       13,500       4.0  
March 19, 2013
1.65
     986,600       4.1       533,500       4.1  
May 8, 2013
1.72
     25,000       4.4       8,000       4.4  
August 6, 2013
0.71
     1,000,473       4.9       100,048       4.9  
February 9, 2014
0.64
     75,000       4.9       7,500       4.9  
March 11, 2014
                                   
1.76
     7,289,573       2.8       5,820,848       2.3    

During the three months ended March 31, 2009, the Company recorded a total of $280,489 related to stock option compensation (2008 – $853,144).  This amount is included in shareholders’ equity as contributed surplus and is recorded as an expense.  The fair value of options granted during the three months ended March 31, 2009 and 2008 was determined using the Black-Scholes option pricing model with the following assumptions:

   
2009
    
2008
  
             
Expected option life (years)
     2.9       4.0  
Expected volatility
     83 %     65 %
Risk-free interest rate
     1.4 %     3.0% - 3.4 %
Pre-vest forfeiture rate
     4.6 %     -  
Expected dividend rate
  
nil
    
nil
  


 
 
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Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Consolidated Financial Statements
March 31, 2009
(expressed in Canadian dollars)
 
10.  
Segmented information

The Company’s operations comprise one reportable segment being the exploration and development of uranium resource properties.  The Company operates in Canada and the United States.  Capital assets segmented by geographic area are as follows:

 
   
March 31, 2009
  
   
Canada
$
    
United States
$
    
Total
$
  
                   
Bonding and other deposits
     -       3,891,753       3,891,753  
Mineral properties
     523,579       31,713,824       32,237,403  
Capital assets
     7,341       1,541,729       1,549,070  
Construction in progress
     -       380,912       380,912  

 
   
December 31, 2008
  
   
Canada
$
    
United States
$
    
Total
$
  
                   
Bonding and other deposits
     -       2,578,825       2,578,825  
Mineral properties
     617,160       31,191,661       31,808,821  
Capital assets
     7,847       1,623,457       1,631,304  
Construction in progress
     -       323,093       323,093  


 
 
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