Exhibit 99.1
 
 
 
 
 
 
 
 

 


Ur-Energy Inc.
(a Development Stage Company)

Unaudited Interim Consolidated Financial Statements

June 30, 2009
(expressed in Canadian dollars)
 
 
 
 
 
 
 
 
 
 

 Ur-Energy Inc.
          
 (a Development Stage Company)
          
 Consolidated Balance Sheets
          
           
 (expressed in Canadian dollars)
          
           
 
June 30, 2009
    
December 31, 2008
  
   
$
      
$
  
 Assets
              
               
 Current assets
              
 Cash and cash equivalents (note 4)
   27,205,124       25,799,735  
 Short-term investments (note 4)
   25,917,345       39,174,200  
 Marketable securities
   33,000       7,500  
 Amounts receivable
   70,143       132,710  
 Prepaid expenses
   185,729       77,777  
               
    53,411,341       65,191,922  
               
 Bonding and other deposits (note 5)
   3,584,025       2,578,825  
 Mineral properties (note 6)
   32,314,197       31,808,821  
 Capital assets (note 7)
   1,463,917       1,631,304  
 Construction in progress (note 8)
   727,636       323,093  
               
    38,089,775       36,342,043  
               
    91,501,116       101,533,965  
               
 Liabilities and shareholders' equity
              
               
 Current liabilities
              
 Accounts payable and accrued liabilities
   746,825       2,265,058  
    746,825       2,265,058  
               
 Future income tax liability
   478,000       478,000  
 Asset retirement obligation (note 9)
   557,192       513,576  
               
    1,782,017       3,256,634  
               
 Shareholders' equity (note 10)
              
 Capital stock
   144,805,960       144,396,460  
 Warrants
   -       -  
 Contributed surplus
   13,196,533       12,721,559  
 Deficit
   (68,283,394 )     (58,840,688 )
               
    89,719,099       98,277,331  
               
    91,501,116       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)
                            
Consolidated Statements of Operations, Comprehensive Loss and Deficit
                    
                             
(expressed in Canadian dollars, except for share data)
                            
                         
Cumulative
  
                         
from
  
 
Three Months
    
Three Months
    
Six Months
    
Six Months
    
March 22, 2004
  
 
Ended
    
Ended
    
Ended
    
Ended
    
Through
  
 
June 30, 2009
    
June 30, 2008
    
June 30, 2009
    
June 30, 2008
    
June 30, 2009
  
   
$
      
$
      
$
      
$
      
$
  
           
(as restated -
 see Note 3) 
              
(as restated -
 see Note 3) 
          
Expenses
                                      
General and administrative
   1,400,320       1,768,229       2,760,508       3,604,514       24,683,557  
Exploration and evaluation
   1,274,631       2,395,510       2,510,896       3,890,440       42,293,449  
Development
   897,580       1,338,567       3,274,068       1,338,567       12,128,604  
Write-off of mineral properties
   43,501       -       107,062       -       426,707  
                                       
    (3,616,032 )     (5,502,306 )     (8,652,534 )     (8,833,521 )     (79,532,317 )
                                       
Interest income
   218,637       600,409       619,380       1,389,689       6,697,819  
Foreign exchange gain (loss)
   (1,933,051 )     (156,296 )     (1,298,720 )     496,150       4,269,519  
Other income (loss)
   (117,332 )     3,000       (110,832 )     (8,685 )     (147,470 )
                                       
    (1,831,746 )     447,113       (790,172 )     1,877,154       10,819,868  
                                       
Loss before income taxes
   (5,447,778 )     (5,055,193 )     (9,442,706 )     (6,956,367 )     (68,712,449 )
                                       
Recovery of future income taxes
   -       -       -       -       429,055  
                                       
Net loss and comprehensive loss for the period
   (5,447,778 )     (5,055,193 )     (9,442,706 )     (6,956,367 )     (68,283,394 )
                                       
Deficit - Beginning of period
                                      
As previously reported
   (62,835,616 )     (14,289,211 )     (58,840,688 )     (13,080,150 )     -  
Change in policy for accounting for exploration and
development costs (note 3)
   -       (28,599,066 )     -       (27,906,953 )     -  
                                       
As restated
   (62,835,616 )     (42,888,277 )     (58,840,688 )     (40,987,103 )     -  
                                       
Deficit - End of period
   (68,283,394 )     (47,943,470 )     (68,283,394 )     (47,943,470 )     (68,283,394 )
                                       
Weighted average number of common shares outstanding:
                                  
Basic and diluted
   93,893,607       93,222,893       93,789,463       92,746,354          
                                       
Loss per common share:
                                      
Basic and diluted
   (0.06 )     (0.06 )     (0.10 )     (0.08 )        
 
The accompanying notes are an integral part of these consolidated financial statements

 
Page 2
 
 
 
Ur-Energy Inc.
                            
(a Development Stage Company)
                            
Consolidated Statements of Cash Flow
                            
                             
(expressed in Canadian dollars)
                            
                         
Cumulative
  
                         
from
  
 
Three Months
    
Three Months
    
Six Months
    
Six Months
    
March 22, 2004
  
 
Ended
    
Ended
    
Ended
    
Ended
    
Through
  
 
June 30, 2009
    
June 30, 2008
    
June 30, 2009
    
June 30, 2008
    
June 30, 2009
  
   
$
      
$
      
$
    
 
$
      
$
  
           
(as restated -
 see Note 3) 
              
(as restated -
 see Note 3) 
          
Cash provided by (used in)
                                      
                                       
Operating activities
                                      
Net loss for the period
   (5,447,778 )     (5,055,193 )     (9,442,706 )     (6,956,367 )     (68,283,394 )
Items not affecting cash:
                                      
Stock based compensation
   194,485       1,195,742       474,974       2,048,886       15,237,171  
Amortization of capital assets
   135,925       142,047       289,054       230,234       915,118  
Provision for reclamation
   -       2,625       76,966       (4,975 )     519,562  
Write-off of mineral properties
   43,501       -       107,062       -       426,707  
Foreign exchange loss (gain)
   1,933,051       156,296       1,298,720       (496,150 )     (4,269,519 )
Gain on sale of assets
   -       -       -       -       (5,361 )
Non-cash exploration costs (credits)
   -       -       -       -       2,726,280  
Other loss (income)
   (10,500 )     (3,000 )     (17,000 )     12,000       (2,002 )
Future income taxes
   -       -       -       -       (429,055 )
Change in non-cash working capital items:
                                      
Amounts receivable
   (5,841 )     61,391       59,847       740,190       (55,718 )
Prepaid expenses
   (74,927 )     (64,694 )     (115,167 )     (82,092 )     (176,098 )
Accounts payable and accrued liabilities
   (562,625 )     758,049       (1,515,464 )     (100,162 )     452,651  
                                       
    (3,794,709 )     (2,806,737 )     (8,783,714 )     (4,608,436 )     (52,943,658 )
                                       
Investing activities
                                      
Mineral property costs
   (74,055 )     (109,543 )     (165,198 )     (252,613 )     (10,626,010 )
Construction in progress
   (346,724 )     -       (404,543 )     -       (727,636 )
Purchase of short-term investments
   (25,674,968 )     (51,787,722 )     (26,111,693 )     (51,787,722 )     (153,792,184 )
Sale of short-term investments
   36,228,213       -       38,961,264       49,989,021       129,583,182  
Decrease (increase) in bonding and other deposits
   16,465       (242,778 )     (1,231,688 )     (170,137 )     (3,343,042 )
Proceeds from sale of capital assets
   -       -       -       -       26,344  
Purchase of capital assets
   (50,772 )     (655,444 )     (121,667 )     (964,156 )     (2,357,426 )
                                       
    10,098,159       (52,795,487 )     10,926,475       (3,185,607 )     (41,236,772 )
                                       
Financing activities
                                      
Issuance of common shares and warrants for cash
   -       -       -       2,750,000       122,668,053  
Share issue costs
   -       (5,314 )     -       (115,314 )     (2,569,025 )
Proceeds from exercise of warrants, compensation
                                      
options and stock options
   -       43,750       -       90,000       18,567,931  
Payment of New Frontiers obligation
   -       -       -       -       (17,565,125 )
                                       
    -       38,436       -       2,724,686       121,101,834  
                                       
                                       
Effects of foreign exchange rate changes on cash
   (1,077,081 )     (148,817 )     (737,372 )     482,476       283,720  
                                       
Net change in cash and cash equivalents
   5,226,369       (55,712,605 )     1,405,389       (4,586,881 )     27,205,124  
                                       
Cash and cash equivalents - Beginning of period
   21,978,755       77,438,481       25,799,735       26,312,757       -  
                                       
Cash and cash equivalents - End of period
   27,205,124       21,725,876       27,205,124       21,725,876       27,205,124  
                                       
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 Interim Consolidated Financial Statements
June 30, 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.  Due to the nature of the uranium mining methods to be used by the Company on the Lost Creek property, and the definition of “mineral reserves” under NI 43-101, which uses the CIM Definition Standards, the Company has not determined whether the properties contain mineral reserves.  However, the Company’s April 2008 “NI 43-101 Preliminary Assessment for the Lost Creek Project Sweetwater County, Wyoming” outlines the economic viability of the Lost Creek project, which is currently in the permitting process with state and federal regulators.  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.

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”.

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 unaudited 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 audited annual consolidated financial statements for the year ended December 31, 2008.

Certain comparative figures have been reclassified to conform to the presentation adopted for the current period.


 
Page 4
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Interim Consolidated Financial Statements
June 30, 2009

(expressed in Canadian dollars)

 
Adoption of new accounting pronouncement

Sections 3064 – Goodwill and Intangible Assets

Effective January 1, 2009, the Company adopted CICA Handbook Section 3064, “Goodwill and Intangible Assets”, which 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 consolidated financial statements.

3.
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 management has determined it is economically viable and 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 and six months ended June 30, 2008 were restated as follows:  expenses increased by $2.5 million and $3.2 million, net loss increased by $2.5 million and $3.2 million, and loss per common share increased by $0.03 and $0.04, respectively.

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

4.
Cash and cash equivalents and short-term investments

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

 
As at
    
As at
  
 
June 30,
    
December 31,
  
 
2009
    
2008
  
   
$ 
      
$ 
  
Cash on dep osit at banks
   407,661       392,170  
Guaranteed investment certificates
   7,537,500       9,087,500  
M oney market funds
   5,387,963       1,031,882  
Certificates of dep osit
   13,872,000       15,288,183  
               
    27,205,124       25,799,735  

 
Page 5
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Interim Consolidated Financial Statements
June 30, 2009

(expressed in Canadian dollars)



The Company’s cash and cash equivalents of $27.2 million and short-term investments of $25.9 million 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 0.05% to 2.0% and mature at various dates up to April 30, 2010.  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 $52.7 million at risk should the financial institutions with which these amounts are invested be rendered insolvent.  As at June 30, 2009, the Company does not consider any of its financial assets to be impaired.

5.
Bonding and other deposits

Bonding and other deposits include $3,563,217 (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.

6.
Mineral properties
 
 
Canada
    
USA
    
Total
  
                       
 
Canadian
    
Lost Creek/
    
Other US
        
 
Properties
    
Lost Soldier
    
Properties
        
   
$
      
$
      
$
      
$
  
                               
Balance, December 31, 2008
   617,160       24,316,716       6,874,945       31,808,821  
                               
Acquisiton costs
   -       -       478,466       478,466  
Staking and claim costs
   (30,021 )     4,922       8,784       (16,315 )
Labor costs
   90       2,851       96,185       99,126  
Material and supply costs
   -               400       400  
Outside service costs
   -       -       50,682       50,682  
Other costs
   -       -       79       79  
Write-off
   (63,561 )     -       (43,501 )     (107,062 )
                               
                               
Balance, June 30, 2009
   523,668       24,324,489       7,466,040       32,314,197  
 
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 six months ended June 30, 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 effective 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

 
Page 6
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Interim Consolidated Financial Statements
June 30, 2009

(expressed in Canadian dollars)


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, LC North and LC South, RS, and Bootheel and Buck Point, which are located in Wyoming.  During the second quarter of 2009, the Company wrote-off its Muggins’ Mountain claims in Arizona.

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 acquisitions were primarily related to additions to the Company’s EN claim group.

7.
Capital assets

 
June 30, 2009
    
December 31, 2008
  
       
Accumulated
    
Net Book
          
Accumulated
    
Net Book
  
 
Cost
    
Amortization
    
Value
    
Cost
    
Amortization
    
Value
  
 
$
      
$
      
$
      
$
      
$
      
$
  
                                               
Light vehicles
   661,743       289,250       372,493       656,184       215,238       440,946  
Heavy mobile equipment
   429,991       160,269       269,722       424,559       103,903       320,656  
Machinery and equipment
   780,085       325,977       454,108       780,085       232,390       547,695  
Furniture and fixtures
   224,380       65,279       159,101       189,987       48,829       141,158  
Computer equipment
   216,749       88,959       127,790       178,633       66,672       111,961  
Software
   163,578       82,875       80,703       125,411       56,523       68,888  
                                               
    2,476,526       1,012,609       1,463,917       2,354,859       723,555       1,631,304  
 
8.
Construction in progress
 
 
USA
  
     
 
Lost
  
 
Creek
  
   
$
  
       
Balance, December 31, 2008
   323,093  
       
Plant design costs
   102,406  
Plant equipment costs
   302,137  
       
Balance, June 30, 2009
   727,636  


 
Page 7
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Interim Consolidated Financial Statements
June 30, 2009

(expressed in Canadian dollars)



9.
Asset retirement obligation

The Company has recorded $557,192 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.

10.
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
   -       -       474,974       -       474,974  
 Net loss and comprehensive loss
   -       -       -       (9,442,706 )     (9,442,706 )
                                       
 Balance, June 30, 2009
   93,893,607       144,805,960       13,196,533       (68,283,394 )     89,719,099  

 
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 acquisitions were 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 8
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Interim Consolidated Financial Statements
June 30, 2009

(expressed in Canadian dollars)

 
Activity with respect to stock options is summarized as follows:
 
       
Weighted-
  
       
average
  
 
Options
    
exercise price
  
   
#
      
$
  
               
Outstanding, December 31, 2008
   6,228,700       1.95  
               
Granted
   1,075,473       0.66  
Exercised
   -       -  
Forfeit
   (30,368 )     1.20  
Expired
   (11,200 )     1.20  
               
Outstanding, June 30, 2009
   7,262,605       1.76  
 
As at June 30, 2009, outstanding stock options are as follows:

     
Options outstanding
    
Options exercisable
    
             
Weighted-
      
Weighted-
           
average
        
average
    
Exercise
          
remaining
    
remaining
price
    
Number
    
contractual
  
Number
    
contractual
 
 
$
    
of options
    
life (years)
  
of options
    
life (years)
  
Expiry
                               
 
1.25
       2,440,800      
1.4
       2,440,800      
1.4
  
November 17, 2010
 
2.01
       75,000      
1.7
 
     75,000      
1.7
  
March 25, 2011
 
2.35
       1,450,000      
1.8
       1,450,000      
1.8
  
April 21, 2011
 
2.75
       379,200      
2.2
       399,200      
2.2
  
September 26, 2011
 
4.75
       45,000      
2.9
 
     45,000      
2.9
  
May 15, 2012
 
3.67
       200,000      
3.0
       200,000    
 
3.0
  
July 15, 2012
 
3.00
       437,500      
3.1
       437,500      
3.1
  
August 9, 2012
 
3.16
       50,000      
3.2
       50,000      
3.2
  
September 17, 2012
 
2.98
       50,000      
3.3
       50,000      
3.3
  
October 5, 2012
 
4.07
       30,000      
3.4
       30,000      
3.4
  
November 7, 2012
 
2.11
       25,000      
3.7
       19,000      
3.7
  
March 19, 2013
 
1.65
       983,800      
3.9
       752,200      
3.9
  
May 8, 2013
 
1.72
       25,000      
4.1
       13,500      
4.1
  
August 6, 2013
 
0.71
       996,305      
4.6
       320,153      
4.6
  
February 9, 2014
 
0.64
       75,000      
4.7
       7,500      
4.7
  
March 11, 2014
                                       
 
1.76
       7,262,605      
2.5
       6,289,853      
2.2
    
 
During the six months ended June 30, 2009, the Company recorded a total of $474,974 related to stock option compensation (2008 – $2,048,886).  This amount is included in shareholders’ equity as contributed surplus and is recorded as an expense.  The fair value of options granted during the six months ended June 30, 2009 and 2008 was determined using the Black-Scholes option pricing model with the following assumptions:
 
 
Page 9
 
Ur-Energy Inc.
(a Development Stage Company)
Notes to Unaudited Interim Consolidated Financial Statements
June 30, 2009

(expressed in Canadian dollars)

 
 
2009
    
2008
  
           
Expected option life (years)
   2.85 - 2.87       4.0  
Expected volatility
   83 %     65 %
Risk-free interest rate
   1.4 %     3.0% - 3.4 %
Forfeiture rate
   4.6 %     -  
Expected divident rate
   0 %     0 %

11.
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:
 
       
June 30, 2009
        
 
Canada
    
United S tates
    
Total
  
    $       $       $  
                       
Bonding and other dep osits
   -       3,584,025       3,584,025  
M ineral properties
   523,666       31,790,531       32,314,197  
Cap ital assets
   6,868       1,457,049       1,463,917  
Construction in progress
   -       727,636       727,636  
                     
         
December 31, 2008
          
 
Canada
    
United S tates
    
Total
  
    $       $       $  
                       
Bonding and other dep osits
   -       2,578,825       2,578,825  
M ineral exploration p rop erties
   617,160       31,191,661       31,808,821  
Cap ital assets
   7,847       1,623,457       1,631,304  
Construction in progress
   -       323,093       323,093  
 

12.
Commitments

Although construction of the Lost Creek plant will not begin until receipt of the necessary permits, request for quotations for all major process equipment at the Lost Creek project were prepared and solicited from vendors and contractors.  Bids are currently being evaluated and procurement will be ongoing throughout 2009.

One purchase order totaling US$1,323,834 was issued during the second quarter of 2009 for ion exchange columns and other process equipment.  A US$246,000 down payment was made, with a further US$615,370 payment required in the third quarter of 2009 and the final payment due upon completion.  An additional purchase order for US$319,357 was issued during the second quarter in order to initiate the drawing and approval process for other plant equipment.  Progress payments will be required once the final drawings are approved, the final configuration is decided upon and the final price is determined.

As at June 30, 2009, the Company is committed to spend approximately $815,637 by December 31, 2009 for Canadian exploration in accordance with flow-through share agreements.

 
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