Exhibit
99.2
Ur-Energy
Inc.
(a
Development Stage Company)
Headquartered
in Littleton, Colorado
Management’s
Discussion and Analysis
March 31,
2010
(expressed
in Canadian dollars)
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Introduction
The
Company was incorporated on March 22, 2004 and completed its first year-end on
December 31, 2004. The Company is headquartered in Littleton, CO with
assets predominantly located in the United States. The consolidated
financial statements 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; 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 “Ur-Energy” or the “Company”.
The
following provides management’s discussion and analysis of results of operations
and financial condition for the three months ended March 31,
2010. Management’s Discussion and Analysis (“MD&A”) was prepared
by Company management and approved by the board of directors on April 28,
2010. This discussion and analysis should be read in conjunction with
the Company’s audited consolidated financial statements for the years ended
December 31, 2009 and 2008. All figures are presented in Canadian
dollars, unless otherwise oted, and are in accordance with Canadian generally
accepted accounting principles.
Forward-Looking
Information
This
MD&A contains "forward-looking statements" within the meaning of applicable
United States and Canadian securities laws. Shareholders can identify these
forward-looking statements by the use of words such as "expect", "anticipate",
"estimate", "believe", "may", "potential", "intends", "plans" and other similar
expressions or statements that an action, event or result "may", "could" or
"should" be taken, occur or be achieved, or the negative thereof or other
similar statements. These statements are only predictions and involve known and
unknown risks, uncertainties and other factors which may cause the Company’s
actual results, performance or achievements, or industry results, to be
materially different from any future results, performance, or achievements
expressed or implied by these forward-looking statements. Such statements
include, but are not limited to: (i) the Company’s belief that it will have
sufficient cash to fund its capital requirements; (ii) receipt of (and related
timing of) a United States Nuclear
Regulatory Commission Source and Byproduct Material License; Wyoming Department of
Environmental Quality Permit and License to Mine; recorded decision
on the United States Bureau of Land Management Plan of Operations and all other
necessary permits related to Lost Creek; (iii) Lost Creek will
advance to production and the production timeline at Lost Creek scheduled for
early 2011; (iv)
production rates, timetables and methods at Lost Creek; (v) the Company’s
procurement and construction plans at Lost Creek; (vi) the completion and timing
of various exploration programs, including without limitation, those at LC North
and LC South; (vii) the potential of new exploration targets in the area of Lost
Creek, including those at LC North and LC South, to contain 24 – 28 million
pounds of U3O8 (not NI
43-101 compliant); and (viii) timing, completion, and funding for and results of
further exploration programs at the Bootheel Project and Hauber
Project. These other factors include, among others, the following:
future estimates for production, production start-up and operations (including
any difficulties with start-up), capital expenditures, operating
costs, mineral resources, recovery rates, grades and prices; business strategies
and measures to implement such strategies; competitive strengths; estimated
goals; expansion and growth of the business and operations; plans and references
to the Company’s future successes; the Company’s history of operating losses and
uncertainty of future profitability; the Company’s status as an exploration and
development stage Company; the Company’s lack of mineral reserves; the hazards
associated with mining construction and production; compliance with
environmental laws and regulations; risks associated with obtaining permits in
Canada and the United States; risks associated with current variable economic
conditions; the possible impact of future financings; uncertainty regarding the
pricing and collection of accounts; risks associated with dependence on sales in
foreign countries; the possibility for adverse results in potential litigation;
fluctuations in foreign exchange rates; uncertainties associated with changes in
government policy and regulation; uncertainties associated with the Canadian
Revenue Agency’s audit of any of the Company’s cross border transactions;
adverse changes in general business conditions in any of the countries in which
the Company does business; changes in the Company’s size and structure; the
effectiveness of the Company’s management and its strategic relationships; risks
associated with the Company’s ability to attract and retain key personnel;
uncertainties regarding the Company’s need for additional capital; uncertainty
regarding the fluctuations of the Company’s quarterly results; uncertainties
relating to the Company’s status as a non-U.S. corporation; uncertainties
related to the volatility of the Company’s share price and trading volumes;
foreign currency exchange risks; ability to enforce civil liabilities under U.S.
securities laws outside the United States; ability to maintain the Company’s
listing on the NYSE Amex (the “NYSE Amex”) and Toronto Stock Exchange (the
“TSX”); risks associated with the Company’s possible status as a "passive
foreign investment corporation" or a "controlled foreign corporation" under the
applicable provisions of the U.S. Internal Revenue Code of 1986, as amended;
risks associated with the Company’s investments and other risks and
uncertainties described under the heading “Risk Factors” of the Company’s Annual
Report on Form 20-F (“Annual Information Form”) dated March 5, 2010 which is
filed on SEDAR at www.sedar.com (March
11, 2010) and with the U.S. Securities and Exchange Commission at www.sec.gov (March 12,
2010).
The
potential quantity and grade ranges set forth in regards to exploration targets
at Lost Creek, LC North and LC South are conceptual in nature only. There has
been insufficient exploration to define a mineral resource at the new
exploration targets at Lost Creek and the targets at LC North and LC
South. It is uncertain if further exploration will result in the target(s)
being delineated as a mineral resource.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Nature
of Operations and Description of Business
The
Company is a development stage junior mining company engaged in the
identification, acquisition, evaluation, exploration and development of uranium
mineral properties in the United States and Canada. The Company is
primarily focused on exploration within the geological uranium province centered
around Wyoming, USA. Two of the Company’s Wyoming properties, Lost
Creek and Lost Soldier, contain defined resources that the Company expects to
advance to production. Lost Creek is progressing through the
regulatory process and is expected to have all necessary licenses and permits in
coming months, with production expected to commence in early
2011. Among its other properties in North America, the Company
continues to hold its Screech Lake property in the Thelon Basin, Northwest
Territories, Canada.
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 National
Instrument 43-101 (“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.
Selected
Information
The
following table contains selected financial information as at March 31, 2010 and
December 31, 2009.
|
|
|
As
at
March
31,
2010
$
|
|
|
As
at
December
31, 2009
$
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
77,068,961 |
|
|
|
81,702,205 |
|
|
Liabilities
|
|
|
(1,421,477 |
) |
|
|
(1,550,675 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
assets
|
|
|
75,647,484 |
|
|
|
80,151,530 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
stock and contributed surplus
|
|
|
157,911,258 |
|
|
|
157,725,036 |
|
|
Deficit
|
|
|
(82,263,774 |
) |
|
|
(77,573,506 |
) |
|
|
|
|
|
|
|
|
|
|
The
following table contains selected financial information for the three months
ended March 31, 2010 and 2009 and cumulative information from inception of the
Company on March 22, 2004 to March 31, 2010.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
|
|
|
Three
Months
Ended
March
31, 2010
$
|
|
|
Three
Months
Ended
March
31, 2009
$
|
|
|
Cumulative
from
March
22, 2004
through
March
31, 2010
$
|
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Total
expenses (1)
|
|
|
(3,804,192 |
) |
|
|
(5,036,502 |
) |
|
|
(92,092,424 |
) |
|
Interest
income
|
|
|
105,265 |
|
|
|
400,743 |
|
|
|
7,074,619 |
|
|
Loss
from equity investment
|
|
|
(2,626 |
) |
|
Nil
|
|
|
|
(20,481 |
) |
|
Foreign
exchange gain (loss)
|
|
|
(987,965 |
) |
|
|
634,331 |
|
|
|
1,074,163 |
|
|
Other
income (loss)
|
|
|
(750 |
) |
|
|
6,500 |
|
|
|
902,849 |
|
|
Loss
before income taxes
|
|
|
(4,690,268 |
) |
|
|
(3,994,928 |
) |
|
|
(83,061,274 |
) |
|
Recovery
of future income taxes
|
|
Nil
|
|
|
Nil
|
|
|
|
797,500 |
|
|
Net
loss for the period
|
|
|
(4,690,268 |
) |
|
|
(3,994,928 |
) |
|
|
(82,263,774 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Stock based compensation included in total expenses
|
|
|
186,222 |
|
|
|
280,489 |
|
|
|
15,899,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per common share:
Basic
and diluted
|
|
|
(0.05 |
) |
|
|
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends per common share
|
|
Nil
|
|
|
Nil
|
|
|
|
|
|
The
Company has not generated any revenue from its operating activities to
date. The Company’s expenses include general and administrative
(“G&A”) expense, exploration and evaluation expense, development expense and
write-off of mineral property costs. Acquisition costs of mineral
properties are capitalized.
No cash
dividends have been paid by the Company. The Company has no present
intention of paying cash dividends on its common shares as it anticipates that
all presently available funds will be invested to finance new and existing
exploration and development activities.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Summary of Quarterly
Financial Information
The
following table contains summary quarterly financial information for each of the
eight most recently completed quarters.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
Mar.
31
|
|
|
Dec.
31
|
|
|
Sep.
30
|
|
|
Jun.
30
|
|
|
Mar.
31
|
|
|
Dec.
31
|
|
|
Sep.
30
|
|
|
Jun.
30
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2009
|
|
|
2009
|
|
|
2009
|
|
|
2008
|
|
|
2008
|
|
|
2008
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Total
expenses
|
|
|
(3,804,192 |
) |
|
|
(3,419,379 |
) |
|
|
(5,336,536 |
) |
|
|
(3,616,032 |
) |
|
|
(5,036,502 |
) |
|
|
(7,947,470 |
) |
|
|
(9,186,720 |
) |
|
|
(5,502,306 |
) |
|
Interest
income
|
|
|
105,265 |
|
|
|
141,016 |
|
|
|
130,519 |
|
|
|
218,637 |
|
|
|
400,743 |
|
|
|
531,148 |
|
|
|
573,608 |
|
|
|
600,409 |
|
|
Loss
from equity investment
|
|
|
(2,626 |
) |
|
|
(4,365 |
) |
|
|
(13,490 |
) |
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Foreign
exchange gain (loss)
|
|
|
(987,965 |
) |
|
|
(1,393,136 |
) |
|
|
(814,255 |
) |
|
|
(1,933,051 |
) |
|
|
634,331 |
|
|
|
5,585,970 |
|
|
|
(425,801 |
) |
|
|
(156,296 |
) |
|
Other
income (loss)
|
|
|
(750 |
) |
|
|
(34,878 |
) |
|
|
1,085,947 |
|
|
|
(117,332 |
) |
|
|
6,500 |
|
|
Nil
|
|
|
|
(18,203 |
) |
|
|
3,000 |
|
|
Loss
before income taxes
|
|
|
(4,690,268 |
) |
|
|
(4,710,742 |
) |
|
|
(4,947,815 |
) |
|
|
(5,447,778 |
) |
|
|
(3,994,928 |
) |
|
|
(1,830,352 |
) |
|
|
(9,057,116 |
) |
|
|
(5,055,193 |
) |
|
Recovery
of future income taxes
|
|
Nil
|
|
|
|
(429,055 |
) |
|
|
797,500 |
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Net
loss for the period
|
|
|
(4,690,268 |
) |
|
|
(5,139,797 |
) |
|
|
(4,150,315 |
) |
|
|
(5,447,778 |
) |
|
|
(3,994,928 |
) |
|
|
(1,830,352 |
) |
|
|
(9,057,116 |
) |
|
|
(5,055,193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per share – basic and diluted
|
|
|
(0.05 |
) |
|
|
(0.06 |
) |
|
|
(0.04 |
) |
|
|
(0.06 |
) |
|
|
(0.04 |
) |
|
|
(0.02 |
) |
|
|
(0.09 |
) |
|
|
(0.06 |
) |
Overall Performance and
Results of Operations
From
inception to March 31, 2010, the Company has raised net cash proceeds from the
issuance of common shares and warrants and from the exercise of warrants and
stock options of $138.7 million. As at March 31, 2010, the Company
held cash and cash equivalents, and short-term investments of $38.5
million. The Company's cash resources are invested with banks in
Canada and the United States in deposit accounts, guaranteed investment
certificates, certificates of deposit, and money market
accounts.
Mineral
Properties
The
Company holds mineral properties in the United States and Canada totaling
approximately 220,000 acres (approximately 89,000
hectares).
Lost Creek Project – Great
Divide Basin, Wyoming
The Lost
Creek uranium deposit is located in the Great Divide Basin, Wyoming. The deposit
is approximately three miles (4.8 kilometers) long and the mineralization occurs
in four main sandstone horizons between 315 feet (96 meters) and 700 feet (213
meters) in depth. As identified in the June 2006 Technical Report on Lost Creek,
NI 43-101 compliant resources are 9.8 million pounds of U3O8 at
0.058 % as an indicated resource and an additional 1.1 million pounds of
U3O8 at
0.076 % as an inferred resource.
Lost
Creek was acquired in 2005 as part of the purchase of all of the membership
interests in NFU Wyoming, LLC (“NFU Wyoming”). In addition to Lost Creek,
other assets acquired include the Lost Soldier project, other properties, 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), plus
capitalized interest.
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.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Lost Creek
Regulatory
Ur-Energy
believes it is nearing completion of the regulatory process required to obtain
all necessary authorizations to mine, including those from the U.S. Nuclear
Regulatory Commission (“NRC”), the U.S. Bureau of Land Management (“BLM”), and
the Wyoming Department of Environmental Quality (“WDEQ”). Based upon
current regulatory guidance, the Company expects all such permits and licenses
to be granted in coming months, with production at Lost Creek to commence in
early 2011.
The NRC
is required to complete two reports, the Safety and Environmental Report (“SER”)
and the Supplemental Environmental Impact Statement (“SEIS”), prior to issuing
an NRC Source Material and Byproduct License. NRC staff informed the
Company that a draft of the SER is complete, and efforts continue to finalize
the SER. The Draft SEIS was issued for the Lost Creek Project in
December 2009. The Company submitted its comments to the Lost Creek
Draft SEIS in February 2010. The NRC is currently processing the
comments received from the public and other regulatory
agencies. Based upon guidance from the NRC, Ur-Energy anticipates the
issuance of its NRC License in the third quarter
2010.
In April
2010, the NRC granted an exemption request to authorize certain construction
activities at the Lost Creek site in advance of the pending licensing
decision. Under NRC regulations, commencement of construction (with
some limited exceptions) prior to license issuance is not permitted unless an
exemption is granted. The authorization from the NRC will provide
Ur-Energy the flexibility to proceed with the preparation and construction of
site infrastructure and support facilities prior to the issuance of the primary
NRC license needed for construction and operation of an ISR
facility. The Company is coordinating with other regulatory agencies
to obtain additional approvals necessary to commence
construction.
The BLM
determined that its project environmental review and approval will be
independent of the environmental review process carried out by the NRC. In
response, the Company submitted a Plan of Operations to the BLM in November
2009. The review process, including public comment and selection of a contractor
for the environmental review, has commenced.
The
permitting process with the WDEQ for the Permit to Mine is also proceeding
through the final aspects of technical review. The data package for
Mine Unit #1 was submitted to the WDEQ in December 2009 and technical review of
that submission is underway. Issuance of the WDEQ Permit to Mine is
expected in third quarter 2010. The WDEQ-Air Quality Division
issued the Lost Creek Air Quality Permit in January 2010. In March
2010, WDEQ-Water Quality Division issued a Draft Class I Underground Injection
Control (“UIC”) Permit. Once final, the UIC Permit will authorize
Ur-Energy to drill, complete and operate a sufficient number of Class I
non-hazardous waste disposal wells at Lost Creek to meet the anticipated
disposal requirements for the life of the Lost Creek project. The
process which leads to the issuance of the final UIC Permit is expected to be
completed in second quarter 2010.
As a part
of its WDEQ application, the Company submitted a Wildlife Protection Plan
regarding, among other issues, the greater sage grouse. The Company continues to
conduct meetings with the WDEQ and Wyoming Department of Game and Fish to
facilitate the processing and acceptance of the mitigation plan as a part of the
WDEQ Permit. On March 5, 2010, the U.S. Fish and Wildlife Service
“USFWS”), in compliance with a federal court order, submitted a finding of
“warranted for listing but precluded by higher priorities” with regard to the
greater sage grouse – whose habitat includes Wyoming. A finding that
listing is “warranted but precluded” results in recognition of the greater sage
grouse as a candidate for listing. This finding is reconsidered annually, taking
into account changes in the status of the species. The greater sage
grouse, therefore, remains under state management. Company personnel
continue to work closely with the State and various state agencies, industry and
other stakeholders as plans are developed for such
management.
The Lost
Creek Project Development Plan was approved by Sweetwater County in December
2009. Additional permit applications are under review by various
agencies, with approvals expected in advance of the NRC
License.
Lost Creek Development
Program – Drilling, Planning and Procurement
The
Company established a framework to demonstrate the economic viability of the
Lost Creek project. In April 2008, the Company released an
independent technical report under NI 43-101 prepared by Lyntek Inc. (“Lyntek”),
entitled Preliminary Assessment for the Lost Creek Project Sweetwater County,
Wyoming (“Preliminary Assessment”). The Preliminary Assessment
provides an analysis of the economic viability of the mineral resource of the
Lost Creek project. The base case in the Preliminary Assessment
demonstrates that the project will be economic at prices above US$40 per pound
U3O8. Lyntek
also concluded that the uranium is leachable with a reasonable solution of
bicarbonate and peroxide (and by extension, oxygen), and that an overall
recovery of uranium in the range of 85% appears reasonable. The
Preliminary Assessment is available for review on the Company’s profile on www.sedar.com.
During
2009 and early 2010, the Company conducted a drill program of 298 holes of
delineation and monitor well drilling (213,040 feet (64,935 meters)) to obtain
geologic data necessary for mine planning within the HJ horizon in Mine Unit #2.
A secondary objective of the program was to continue to collect data from the
underlying mineralized horizons (KM and N) for future production
planning. In 2010,
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
the Company anticipates submitting an application for amendment to
its licenses and permits, once received, to allow for mineral recovery from the
underlying KM horizon at Lost Creek. The planned 2010 drill program
will include additional delineation and site exploration drilling at Lost
Creek. As well, following receipt of all necessary authorization,
development drilling of Mine Unit #1 will commence.
Delineation of Mine Unit #1, in 2008,
consisted of 459 drill holes, totaling approximately 303,040 feet (92,367
meters). To date, Ur-Energy has completed 1,048 drill holes totaling
approximately 690,000 feet (approximately 210,000 meters) on the Lost Creek
property.
During
2009, the Company completed detailed designs and specifications for the Lost
Creek plant and selected Fagen, Inc. as general contractor of the Lost Creek
plant construction project. Procurement of equipment for the plant
remains on schedule. Design work continues on pipelines, power lines,
header house internals, instrumentation and wellheads for the Lost Creek
project. Refinement of the automation and programming systems for the
plant and well fields is ongoing. Detailed design and pricing of the
internals for the prototype header house, received by the Company in first
quarter 2010, were prepared and the construction of the internals
commenced.
Company Projects Adjacent to
Lost Creek
Having
expanded its land position around Lost Creek in 2009, the Company currently
controls 1,753 unpatented mining claims and two State of Wyoming uranium leases
for a total of almost 34,000 mineral acres including the Lost Creek permit area,
LC North, LC South, EN and Toby project areas.
In August
2009, the Company announced the results of in-house geologic evaluations of the
Lost Creek permit area and adjacent properties held by the Company which contain
multiple exploration targets demonstrating the potential to contain 24 to 28
million pounds U3O8 (not NI
43-101 compliant). These potential quantity ranges are conceptual in
nature, only, as there has been insufficient exploration to define a mineral
resource as to all of these exploration targets. It is uncertain if
further exploration will result in the target(s) being delineated as a mineral
resource. Company geologists, using Ur-Energy drilling and historic data, have
identified a minimum of an additional 120 compiled linear miles (193 kilometers)
of new redox fronts with potential for resource development on these properties.
This is in addition to the approximately 36 miles (58 kilometers) of redox
fronts containing the current Lost Creek deposit. The new exploration
targets on LC North and LC South properties (adjacent to the Lost Creek permit
area) consist of at least 10 individual sinuous redox fronts within four major
stratigraphic horizons. The newly identified fronts occur within the same
stratigraphic horizons that are present in the area of the Lost Creek
deposit. Estimation of the potential of the new fronts is based on the
observed similarity of alteration characteristics, grade and thickness of
mineralization to that currently identified in the Lost Creek
deposit.
The
Company announced plans for a 200-hole drill program, to commence in July 2010,
to further explore certain of these new exploration targets located on the LC
South property. Initial planning of the program is in process and
baseline studies and other work leading to necessary permits are
underway. It is estimated that as many as 2,000 to 3,000 drill holes
will be required over the course of several years to fully evaluate the various
new exploration targets in LC South, as well as LC North and areas within the
Lost Creek Permit Area. Ur-Energy also announced it will commission
an independent NI 43-101 study to further evaluate a portion of the roll fronts
and exploration targets identified within the LC South property with the
objective to report on inferred resources within selected portions of the
exploration targets. The NI 43-101 report will be based upon existing
data from approximately 60 mineralized drill holes on the LC South
property.
Hauber Project LLC –
Northeastern Wyoming
The
Company’s subsidiary Hauber Project LLC (“Hauber Project”) maintains properties
in Crook County, Wyoming, which comprise 205 unpatented lode mining claims and
one state uranium lease totaling approximately 4,570 mineral
acres. Effective December 1, 2009, NCA Nuclear, Inc. (“NCA Nuclear”),
a subsidiary of Bayswater Uranium Corporation, entered the Hauber Project as a
Member, entitled to earn in to 75% interest through the expenditure of
US$1,000,000 in qualified exploration costs over a four-year
period. NCA Nuclear will also act as Manager of Hauber
Project.
In
January 2010, NCA Nuclear completed an independent NI 43-101 mineral resource
estimate of the properties at the Hauber Project, authored by Thomas C. Pool,
P.E., of International Nuclear, Inc. The resource estimate concludes the Hauber
Project properties hold approximately 1.45 million pounds of equivalent U3O8 (eU3O8) (Indicated
Resources) in 423,000 tons at an average grade of 0.17% eU3O8. Bayswater
has filed the NI 43-101 report on www.sedar.com.
As a part
of its 2010 obligations under the venture agreement, NCA Nuclear will drill at
least two drill holes for the purpose of testing in situ recovery amenability of
the uranium mineralization.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
The Bootheel Project, LLC –
Shirley Basin, Wyoming
After
Crosshair Exploration & Mining Corp (“Crosshair”) completed its earn-in of a
75% interest in the Company’s subsidiary, The Bootheel Project, LLC (“Bootheel
Project”) in 2009, the Company now has a 25% interest in the Bootheel Project.
Crosshair’s 75% interest was acquired by spending US$3.0 million in qualified
exploration costs, and issuing 150,000 common shares to the
Company.
Under the
terms of the 2007 venture agreement, Ur-Energy contributed its Bootheel and Buck
Point properties to the Bootheel Project. Those properties cover an
area of known uranium occurrences within the Shirley Basin,
Wyoming. Crosshair completed agreements in 2008 for additional rights
and leased lands in the Bootheel property area, such that the Bootheel Project
now covers total defined areas of approximately 8,524, and 7,895 net, mineral
acres.
In 2009,
Crosshair released an independent NI 43-101 resource estimate on the Bootheel
property, which reports the Bootheel property contains an indicated resource of
1.09 million pounds U3O8 (indicated
resource) in 1.4 million short tons, at a grade of 0.038% U3O8, and an
inferred resource of 3.25 million pounds U3O8 (in 4.4
million short tons) at an average grade of 0.037% U3O8. This
NI 43-101 report was filed by Crosshair on www.sedar.com.
In 2010,
Crosshair continues its work, with project contractor AATA International, to
conduct wildlife surveys and other baseline monitoring, and to obtain an NRC
docket number for Bootheel Project.
Additional Exploration
Activities and Company Databases
In first
quarter 2010, the Company continued to acquire rights in additional lands,
including within grassroots regional exploration projects. The Company
continues to actively explore within the multi-state geological uranium province
centered around Wyoming. The Company currently is planning for its 2010
exploration programs, including drilling, to further an understanding of
regional geologic trends. Ongoing evaluation also continues of the various
historic exploration databases owned by the Company which include data acquired
throughout the geologic province.
Three
Months Ended March 31, 2010 Compared to Three Months Ended March 31,
2009
The
following table summarizes the results of operations for the three months ended
March 31, 2010 and 2009.
|
|
|
Three
Months Ended March 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
Change
|
|
|
Change
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
$ |
|
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
General
and administrative
|
|
|
(1,319,540 |
) |
|
|
(1,360,188 |
) |
|
|
40,648 |
|
|
|
-3 |
% |
|
Exploration
and evaluation expense
|
|
|
(922,259 |
) |
|
|
(1,236,265 |
) |
|
|
314,006 |
|
|
|
-25 |
% |
|
Development
expense
|
|
|
(1,562,393 |
) |
|
|
(2,376,488 |
) |
|
|
814,095 |
|
|
|
-34 |
% |
|
Write-off
of mineral properties
|
|
Nil
|
|
|
|
(63,561 |
) |
|
|
63,561 |
|
|
NA
|
|
|
Total
expenses
|
|
|
(3,804,192 |
) |
|
|
(5,036,502 |
) |
|
|
1,232,310 |
|
|
|
-24 |
% |
|
Interest
income
|
|
|
105,265 |
|
|
|
400,743 |
|
|
|
(295,478 |
) |
|
|
-74 |
% |
|
Loss
from equity investment
|
|
|
(2,626 |
) |
|
Nil
|
|
|
|
(2,626 |
) |
|
NA
|
|
|
Foreign
exchange gain (loss)
|
|
|
(987,965 |
) |
|
|
634,331 |
|
|
|
(1,622,296 |
) |
|
|
-256 |
% |
|
Other
income (loss)
|
|
|
(750 |
) |
|
|
6,500 |
|
|
|
(7,250 |
) |
|
|
-112 |
% |
|
Loss
before income taxes
|
|
|
(4,690,268 |
) |
|
|
(3,994,928 |
) |
|
|
(695,340 |
) |
|
|
17 |
% |
|
Recovery
of future income taxes
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Nil
|
|
|
Net
loss for the period
|
|
|
(4,690,268 |
) |
|
|
(3,994,928 |
) |
|
|
(695,340 |
) |
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per share – basic and diluted
|
|
|
(0.05 |
) |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
25 |
% |
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Expenses
Total
expenses for the three months ended March 31, 2010 were $3.8 million which
include G&A expense, exploration and evaluation expense and development
expenses. These expenses decreased by $1.2 million from a total of
$5.0 million for the same period in 2009. This decrease was driven in
large part by the cost of a deep test well which was completed in
2009.
G&A
expense relates to the Company’s administration, finance, investor relations,
land and legal functions and consists principally of personnel and facility
costs. There were no increases or decreases in any expense type in
excess of $0.1 million between the three months ended March 31, 2010 and the
comparable period in 2009. There were also no unusual expenditures or
significant trends identified during those periods.
As the
Company has become more focused on the development and the construction of the
Lost Creek project, overall exploration and evaluation costs have
declined. There were no increases or decreases in any expense type in
excess of $0.1 between the three months ended March 31, 2010 and the comparable
period in 2009. There were also no unusual expenditures or
significant trends identified during those periods.
Development
expense relates entirely to the Company’s Lost Creek
property. Overall expenses declined by $0.8 million from 2009 to
2010. The main reason for this was drilling and piping costs in
excess of $1.2 million related to the completion of a deep test well in
2009. Also during 2009, the Company recognized a $0.1 million expense
for additional estimated reclamation costs. Offsetting this was an
increase in costs related to delineation and monitor well drilling of $0.2
million including internal labor costs due to an expanded drilling program
completed prior to March 1, 2010.
During
the three months ended March 31, 2009, the Company wrote off the Eyeberry
mineral property reflecting a $0.1 million expense. There are no
mineral property write offs to date in 2010.
Other income and
expenses
The
Company's cash resources are invested with banks in deposit accounts, guaranteed
investment certificates, certificates of deposit, and money market
accounts. The decrease in interest income was driven by lower average
cash resources and lower average interest rates in 2010 as compared to those in
2009.
The net
foreign exchange loss for the three months ended March 31, 2010 arose primarily
due to cash resources held in U.S. dollar accounts as the U.S. dollar weakened
relative to the Canadian dollar during the period.
Loss per Common
Share
Both
basic and diluted loss per common share for the three months ended March 31,
2010 were $0.05 (2009 – $0.04). The diluted loss per common share is
equal to the basic loss per common share due to the anti-dilutive effect of all
convertible securities outstanding given that net losses were
experienced.
Liquidity
and Capital Resources
As at
March 31, 2010, the Company had cash resources, consisting of cash and cash
equivalents and short-term investments, of $38.5 million, a decrease of $4.9
million from the December 31, 2009 balance of $43.4 million. The
Company's cash resources consist of Canadian and U.S. dollar denominated deposit
accounts, guaranteed investment certificates, money market funds and
certificates of deposit. During the three months ended March 31,
2010, the Company used $3.6 million of its cash resources to fund operating
activities and $0.3 million for investing activities (excluding short term
investment transactions), with the remaining $1.0 million decrease being related
to the effects of foreign exchange rate changes on cash resources including
short term investments.
The
Company has financed its operations from its inception primarily through the
issuance of equity securities and has no source of cash flow from
operations. The Company does not expect to generate any cash
resources from operations until it is successful in commencing production from
its properties. Operating activities used $3.6 million of cash
resources during the three months ended March 31, 2010, as compared to $5.0
million for the same period in 2009. This is the result of an overall
reduction in cash expenses for the period as discussed above combined with less
cash being required to pay liabilities recorded at December 31, 2009 compared to
the amount accrued at December 31, 2008 ($0.8 million
difference). The Company received less interest income in 2010 due to
lower average cash resource balances and lower interest
rates.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
During
the three months ended March 31, 2010, the Company invested cash resources of
$0.3 million in mineral properties, bonding deposits, capital assets and
pre-construction activities related to plant design and equipment purchases at
Lost Creek. The majority of these expenditures went toward the
acquisition of additional mineral rights ($0.2
million).
Financing
Transactions
The
Company maintains a shareholder rights plan (the “Rights Plan”) designed to
encourage the fair and equal treatment of shareholders in connection with any
take-over bid for the Company's outstanding securities. The Rights
Plan is intended to provide the Company’s board of directors with adequate time
to assess a take-over bid, to consider alternatives to a take-over bid as a
means of maximizing shareholder value, to allow competing bids to emerge, and to
provide the Company’s shareholders with adequate time to properly assess a
take-over bid without undue pressure.
Effective
January 1, 2010, the Rights Agent was changed to Computershare Investor Services
Inc., pursuant to a successor agreement to the Rights
Plan. Notice of the change of Rights Agent was provided to
shareholders of the Company.
The
Company has established a corporate credit card facility with a U.S. bank. This
facility has an aggregate borrowing limit of US$250,000 and is used for
corporate travel and incidental expenses. The Company has provided a
letter of credit and a guaranteed investment certificate in the amount of
$287,500 as collateral for this facility.
Outstanding
Share Data
Information
with respect to outstanding common shares, warrants, compensation options and
stock options as at March 31, 2010 and December 31, 2009 is as
follows:
|
|
|
March
31, 2010
|
|
|
December
31, 2009
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
|
93,940,568 |
|
|
|
93,940,568 |
|
|
Nil
|
|
|
Stock
options
|
|
|
9,035,639 |
|
|
|
8,361,452 |
|
|
|
674,187 |
|
|
Fully
diluted shares outstanding
|
|
|
102,976,207 |
|
|
|
102,302,020 |
|
|
|
674,187 |
|
Off-Balance
Sheet Arrangements
The
Company has not entered into any material off-balance sheet arrangements such as
guarantee contracts, contingent interests in assets transferred to
unconsolidated entities, derivative instrument obligations, or with respect to
any obligations under a variable interest entity
arrangement.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Financial
Instruments and Other Instruments
The
Company’s cash and cash equivalents are composed of:
|
|
|
As
at
|
|
|
As
at
|
|
|
|
|
March
31
|
|
|
December
31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
on deposit at banks
|
|
|
234,374 |
|
|
|
308,918 |
|
|
Guaranteed
investment certificates
|
|
|
- |
|
|
|
287,500 |
|
|
Money
market funds
|
|
|
25,442,640 |
|
|
|
25,564,505 |
|
|
Certificates
of deposit
|
|
|
4,841,200 |
|
|
|
6,296,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,518,214 |
|
|
|
32,457,323 |
|
The
Company’s short term investments are composed of:
|
|
|
As
at
|
|
|
As
at
|
|
|
|
|
March
31
|
|
|
December
31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed
investment certificates
|
|
|
2,233,219 |
|
|
|
2,342,637 |
|
|
Certificates
of deposit
|
|
|
5,792,626 |
|
|
|
8,589,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,025,845 |
|
|
|
10,932,101 |
|
Credit
risk
Financial
instruments that potentially subject the Company to concentrations of credit
risk consist of cash and cash equivalents, short term investments and bonding
deposits. The Company’s cash equivalents and short-term investments
consist of Canadian dollar and U.S. dollar denominated guaranteed investment
certificates and certificates of deposits. They bear interest at
annual rates ranging from 0.25% to 2.50% and mature at various dates up to
January 15, 2011. These instruments are maintained at financial
institutions in Canada and the United States. Of the amount held on
deposit, approximately $7.0 million is covered by either the Canada Deposit
Insurance Corporation or the Federal Deposit Insurance
Corporation. Another $1.3 million is guaranteed by a Canadian
provincial government, leaving approximately $30.2 million at risk should the
financial institutions with which these amounts are invested be rendered
insolvent. As at April 28, 2010, the Company does not consider any of
its financial assets to be impaired.
Liquidity
risk
Liquidity
risk is the risk that the Company will not be able to meet its financial
obligations as they come due.
The
Company manages liquidity risk through regular cash flow forecasting of cash
requirements to fund exploration and development projects and operating
costs.
As at
March 31, 2010 the Company’s liabilities consisted of trade accounts payable of
$925,128, all of which are due within normal trade terms of generally 30 to 60
days.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Market
risk
Market
risk is the risk to the Company of adverse financial impact due to changes in
the fair value or future cash flows of financial instruments as a result of
fluctuations in interest rates and foreign currency exchange
rates. Market risk arises as a result of the Company incurring a
significant portion of its expenditures and a significant portion of its cash
equivalents and short-term investments in U.S. dollars, and holding cash
equivalents and short term investments which earn
interest.
Interest
rate risk
Financial
instruments that expose the Company to interest rate risk are its cash
equivalents and short term investments. The Company’s objectives for managing
its cash and cash equivalents are to ensure sufficient funds are maintained on
hand at all times to meet day to day requirements and to place any amounts which
are considered in excess of day to day requirements on short-term deposit with
the Company's banks so that they earn interest. When placing amounts of cash and
cash equivalents on short-term deposit, the Company only uses high quality
commercial banks and ensures that access to the amounts placed can generally be
obtained on short notice.
Currency
risk
The
Company makes expenditures in both the United States and Canada and is therefore
exposed to risk from changes in these currency rates. In addition, the Company
holds financial assets and liabilities in Canadian and U.S. dollars. The Company
does not utilize any financial instruments or cash management policies to
mitigate the risks arising from changes in foreign currency
rates.
At March
31, 2010, the Company had cash and cash equivalents, short term investments and
bonding deposits of approximately US$33.0 million and had accounts payable of
US$0.8 million which were denominated in U.S.
dollars.
Sensitivity
analysis
The
Company has completed a sensitivity analysis to estimate the impact that a
change in foreign exchange rates would have on the net loss of the Company,
based on the Company’s net U.S. dollar denominated assets and liabilities at
March 31, 2010. This sensitivity analysis assumes that changes in market
interest rates do not cause a change in foreign exchange rates. This
sensitivity analysis shows that a change of +/- 10% in U.S. dollar foreign
exchange rate would have a +/- $3.3 million impact on net loss for the three
months ended March 31, 2010. This impact is primarily as a result of
the Company having cash and investment balances denominated in U.S. dollars and
U.S. dollar denominated trade accounts payables. The financial
position of the Company may vary at the time that a change in exchange rates
occurs causing the impact on the Company’s results to differ from that shown
above.
The
Company has also completed a sensitivity analysis to estimate the impact that a
change in interest rates would have on the net loss of the Company. This
sensitivity analysis assumes that changes in market foreign exchange rates do
not cause a change in interest rates. This sensitivity analysis shows
that a change of +/- 100 basis points in interest rate would have a +/- $0.1
million impact on net loss for the three months ended March 31,
2010. This impact is primarily as a result of the Company having cash
and short-term investments invested in interest bearing accounts. The
financial position of the Company may vary at the time that a change in interest
rates occurs causing the impact on the Company’s results to differ materially
from that shown above.
Transactions
with Related Parties
During
the three months ended March 31, 2010 and 2009, the Company did not participate
in any material transactions with related parties.
Proposed
Transactions
As is
typical of the mineral exploration and development industry, the Company is
continually reviewing potential merger, acquisition, investment and venture
transactions and opportunities that could enhance shareholder
value. Timely disclosure of such transactions is made as soon as
reportable events arise.
Critical
Accounting Policies and Estimates
Mineral
Properties
Acquisition
costs of mineral properties are capitalized. When production commences, these
costs will be amortized on the unit-of-production method based upon the
estimated recoverable resource of the mineral
property.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Management
did not identify impairment indicators for any of the Company’s mineral
properties during the three months ended March 31,
2010.
Stock Based
Compensation
The
Company is required to record all equity instruments including warrants,
compensation options and stock options at fair value in the financial
statements. Management utilizes the Black-Scholes model to calculate the fair
value of these equity instruments at the time they are issued. Use of
the Black-Scholes model requires management to make estimates regarding the
expected volatility of the Company’s stock over the future life of the equity
instrument, the estimate of the expected life of the equity instrument, the
expected volatility of the Company’s common shares, and the number of options
that are expected to be forfeited. Determination of these estimates
requires significant judgment and requires management to formulate estimates of
future events based on a limited history of actual results and by comparison to
other companies in the uranium exploration and development
segment.
Changes
in Accounting Policies Including Initial Adoption
International Financial
Reporting Standards / US GAAP
In
addition to the rules of the Ontario Securities Commission, the Company is
subject to the reporting requirements of the United States Securities and
Exchange Commission (“SEC”). Under those rules, companies are allowed
to submit their financial statements using a foreign GAAP (Canadian GAAP for
Ur-Energy) or International Financial Reporting Standards (“IFRS”) as long as
they are considered a foreign private issuer (“FPI”). For Ur-Energy,
the primary criterion to maintain its FPI status is the ownership of the
majority of the Company’s stock by non-United States investors. This
is verified with the transfer agency during the second quarter of each
year. If the Company loses its FPI status, it will have to file its
statements with the SEC using US GAAP.
Management
believes that it is likely that the Company will lose its FPI status at some
point in the next few years, potentially as soon as 2011. Since the
loss of FPI status would necessitate a change to US GAAP, management has
concluded that it will adopt US GAAP rather than IFRS effective January 1,
2011. Instead of Canadian GAAP or IFRS, Canadian public companies are
also permitted to prepare their financial statements in accordance with US
GAAP. Consequently, the Company has discontinued its IFRS conversion
project. The Company will therefore no longer report on the status of
changing our accounting to IFRS as required under Canadian securities
guidance.
Material
differences between Canadian GAAP and US GAAP to date are reported in note 15 to
our annual audited financial statements as filed on www.sedar.com. To
date, the only material differences between the Company’s Canadian GAAP
financial statements and US GAAP have been:
a) The
interest savings from the early extinguishment of our debt obligation on
acquiring the Lost Creek and Lost Soldier properties. Under Canadian GAAP, the
interest saving was recorded as a reduction in the carrying value of the mineral
properties. Under US GAAP, the accrued but unpaid interest was recorded as a
gain and included in income.
b) Under
Canadian income tax legislation, a company is permitted to issue shares whereby
the company agrees to incur qualifying expenditures and renounce the related
income tax deductions to the investors. Under Canadian GAAP, we recorded the
full amount of the proceeds received on issuance as capital stock in the balance
sheet. Upon renouncing the income tax deductions, capital stock
balance was reduced by the amount of the future income tax benefits recognized.
For US GAAP, the proceeds on issuance of these shares were allocated between the
offering of the shares and the sale of the tax benefit. The premium paid by the
investor in excess of the fair value of non flow-through shares (determined by
the exchange price at the close of day on the day before the issuance) was
recognized as a liability at the time the shares were issued and the fair value
of non flow-through shares (shares issued at the exchange price) recorded as
capital stock. Upon renouncing the income tax deductions, the premium liability
was re-characterized as deferred income taxes and the difference between the
full deferred income tax liability related to the renounced tax deductions and
the premium previously recognized was recorded as an income tax expense or
benefit.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Evaluation
of Disclosure Controls and Procedures
As of the
end of the period covered by this MD&A under the supervision of our Chief
Executive Officer and our Chief Financial Officer, we evaluated the
effectiveness of our disclosure controls and procedures, as such term is defined
in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act
of 1934 (the “Exchange Act”). Based on this evaluation, our Chief Executive
Officer and our Chief Financial Officer have concluded that the Company’s
disclosure controls and procedures are effective to ensure that information the
Company is required to disclose in reports that are filed or submitted under the
Exchange Act: (1) is recorded, processed and summarized effectively and
reported within the time periods specified in SEC rules and forms, and
(2) is accumulated and communicated to Company management, including our
Chief Executive Officer and our Chief Financial Officer, as appropriate to allow
timely decisions regarding required disclosure. The Company’s disclosure
controls and procedures include components of internal control over financial
reporting. Management's assessment of the effectiveness of the Company’s
internal control over financial reporting set forth below is expressed at the
level of reasonable assurance because a control system, no matter how well
designed and operated, can provide only reasonable, but not absolute, assurance
that the control system's objectives will be met.
Management’s
Report on Internal Control over Financial Reporting
Pursuant
to Section 404 of the Sarbanes-Oxley Act of 2002, the Company’s management
is responsible for establishing and maintaining adequate internal control over
financial reporting, as such term is defined in Exchange Act
Rules 13a-15(f) and 15d-15(f). The Company’s internal control
over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles.
All
internal control systems, no matter how well designed, have inherent
limitations. Therefore even those systems determined to be effective can provide
only reasonable assurance with respect to financial statement preparation and
presentation. Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements. Projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may
deteriorate.
Under the
supervision and with the participation of Company’s management, including our
Chief Executive Officer and Chief Financial Officer, an evaluation was conducted
of the effectiveness of the Company’s internal control over financial reporting
as of December 31, 2009 based on the framework set forth in Internal
Control — Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). Based on that evaluation,
Company management concluded that, as of December 31, 2009, the Company’s
internal control over financial reporting was
effective.
Changes
in Internal Control over Financial Reporting
There has
been no change in our internal control over financial reporting during the three
months ended March 31, 2010 that has materially affected, or is reasonably
likely to materially affect, our internal control over financial
reporting.
Risks
and Uncertainties
The
Company is subject to a number of risks and uncertainties due to the nature of
its business and the present stage of development of its
business. Investment in the natural resource industry in general, and
the exploration and development sector in particular, involves a great deal of
risk and uncertainty. Current and potential investors should give
special consideration to the risk factors involved. These factors are
discussed more fully in our Annual Report on Form 20-F (Annual Information Form)
dated March 5, 2010 which is filed on SEDAR at www.sedar.com (March
11, 2010) and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. (March
12, 2010).
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three Months Ended March 31, 2010
(Information
as at April 28, 2010 unless otherwise noted)
Other
Information
Other
information relating to the Company may be found on the SEDAR website at www.sedar.com or on the U.S. Securities
and Exchange Commission’s website at www.sec.gov.
Directors and
Officers
Jeffrey
T. Klenda, B.A. – Chairman and Executive Director
W.
William Boberg, M. Sc., P. Geo. – President, Chief Executive Officer and
Director
James M.
Franklin, PhD, FRSC, P. Geo. –Director and Technical Committee
Chair
Paul
Macdonell, Diploma Public Admin. – Director and Compensation Committee
Chair
Robert
Boaz, M. Econ., Hon. B.A. – Director and Corporate Governance and Nominating
Committee Chair
Thomas
Parker, M. Sc., P.E. – Director and Audit Committee
Chair
Harold A.
Backer, B. Sc. – Executive Vice President Geology and
Exploration
Wayne W.
Heili, B. Sc. – Vice President, Mining and
Engineering
Paul W.
Pitman, B. Sc. Hon. Geo., P. Geo. – Vice President, Canadian
Exploration
Roger L.
Smith, CPA, MBA – Chief Financial Officer and Vice President Finance, IT &
Administration
Paul G.
Goss, J.D., MBA – General Counsel and Corporate
Secretary
Corporate
Offices
|
Corporate
Headquarters:
10758
West Centennial Road, Suite 200
Littleton
(Denver), Colorado 80127
Phone:
(720) 981-4588
|
Canadian
Exploration Office:
341
Main Street North, Suite 206
Brampton,
Ontario L6X 3C7
Phone:
(905) 456-5436
|
|
Wyoming
Operations Office:
5880
Enterprise Drive, Suite 200
Casper,
Wyoming 82609
Phone:
(307) 265-2373
|
Registered
Canadian Office:
55
Metcalfe Street, Suite 1300
Attn:
Virginia K. Schweitzer
Ottawa,
Ontario K1P 6L5
Phone:
(613) 236-3882
|
Website
www.ur-energy.com
Trading
Symbols
NYSE
Amex: URG
TSX:
URE
Independent
Auditors
PricewaterhouseCoopers
LLP, Vancouver
Corporate Legal
Counsel
Fasken
Martineau DuMoulin LLP, Ottawa
Corporate
Banker
Royal
Bank of Canada, Ottawa
Transfer
Agent
Computershare
Trust Company N.A. (U.S. Co-Transfer Agent and Co-Registrar), Golden,
CO
Computershare
Investor Services Inc., Toronto