UR-ENERGY INC

Previous wording

The following discussion and analysis by management is designed to provide information that we believe is necessary for an understanding of our financial condition, changes in financial condition, and results of our operations and should be read in conjunction with the audited financial statements and MD&A contained in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

The following discussion and analysis by management is designed to provide information that we believe is necessary for an understanding of our financial condition, changes in financial condition, and results of our operations and should be read in conjunction with the audited financial statements and MD&A contained in our Annual Report.

Previous wording

Incorporated on March 22, 2004, Ur-Energy is an exploration stage issuer, as that term is defined by the U.S. Securities and Exchange Commission (“SEC”). We are engaged in uranium recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the U.S. We are operating our Lost Creek Project, our flagship in situ recovery (“ISR”) mining facility, and have commenced initial operations at our Shirley Basin Project, our second ISR uranium mine. Ur-Energy is a corporation continued under the Canada Business Corporations Act on August 8, 2006. Our common shares are listed on the TSX under the symbol “URE” and on the NYSE American under the symbol “URG.”

Current wording

Incorporated on March 22, 2004, Ur-Energy is an exploration stage issuer, as that term is defined by the U.S. Securities and Exchange Commission (“SEC”). We are engaged in uranium recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the U.S. We are operating our Lost Creek Project, our flagship in situ recovery (“ISR”) mining facility, and our Shirley Basin Project, our second ISR uranium mine. When sold and further processed, our uranium production fuels nuclear power, which is a cost-effective, safe, and reliable source of electrical power that provides an estimated 55% of the carbon-free electricity in the U.S.

Previous wording

We utilize ISR to recover uranium at our Lost Creek Property and Shirley Basin Project, which are both located in Wyoming, and will do so at other projects where possible. The ISR technique is employed in uranium extraction because it allows for an effective recovery of roll front uranium mineralization at a low cost.

Current wording

We utilize ISR to recover uranium at our Lost Creek Property and Shirley Basin Project, which are both located in Wyoming and are the only two mineral properties that we currently deem to be individually material. The ISR technique is employed in uranium extraction because it allows for an effective recovery of roll front uranium mineralization at a low cost.

Previous wording

At Lost Creek, we extract and process uranium oxide (“U 3 O 8”) at the Lost Creek processing facility, which includes all circuits for the production, drying, and drumming (packaging) of U 3 O 8. After processing, drying, and drumming, U 3 O 8 is shipped from Lost Creek to a third-party conversion facility to be weighed, assayed, and stored until sold. When sold and further processed, our uranium production fuels nuclear power, which is a cost-effective, safe, and reliable source of electrical power that provides an estimated 55% of the carbon-free electricity in the U.S.

Current wording

At Lost Creek, we extract and process uranium oxide (“U 3 O 8”) at the Lost Creek processing facility, which includes all circuits for production, drying, and drumming. After processing, U 3 O 8 is shipped to a third-party conversion facility to be weighed, assayed, and stored until sold.

Previous wording

In April 2026, we commenced initial operations to extract and capture U 3 O 8 at Shirley Basin. The Shirley Basin Project is designed as a satellite facility. The Lost Creek processing facility will be utilized to process U 3 O 8 that is extracted and captured on resin (plastic beads that attract and bind uranium ions) in ion exchange (“IX”) columns at the Shirley Basin Project. We expect to begin transporting U 3 O 8-loaded resin from Shirley Basin to Lost Creek in summer 2026, subject to the receipt of additional regulatory approvals.

Current wording

As described in our Annual Report, Shirley Basin is designed as a satellite facility, with U 3 O 8 extracted and captured there transported to Lost Creek for processing. We commenced initial operations to extract and capture U 3 O 8 at Shirley Basin in April 2026. We received final authorization for full ISR operations at Shirley Basin in late June 2026, and expect to begin transporting U 3 O 8 to Lost Creek later this summer. We have the licensed capacity at Shirley Basin to construct a full processing facility to process U 3 O 8 that we extract and capture or to toll process for other producers as may be dictated by future market conditions.

Previous wording

We currently have multi-year sales agreements with eight global nuclear energy companies with projected delivery commitments of approximately 5.75 million pounds U 3 O 8 from 2026 through 2033, including 1.3 million pounds in 2026.

Current wording

Our combined licensed capacity at Lost Creek and Shirley Basin totals 4.2 million pounds of U₃O₈ per year. We currently have multi-year sales agreements with 10 global nuclear energy and trading companies with projected delivery commitments of approximately 5.75 million pounds of U 3 O 8 from 2026 through 2033, including pounds that we delivered in the first half of 2026.

Previous wording

During 2026 Q1, we operated a total of 15 header houses (“HHs”) at Lost Creek, including 13 in our second mine unit (“MU2”) and two brought online during 2026 Q1 in the second phase of our first mine unit (“MU1 Phase 2”). An additional HH in MU1 Phase 2 was recirculating fluid at quarter-end and is expected to be brought online in the coming days.

Current wording

During the quarter, we operated a total of 16 header houses (“HHs”) at Lost Creek, including 12 HHs in our second mine unit (“MU2”) and four HHs in the second phase of our first mine unit (“MU1 Phase 2”). Four of these HHs were brought online in MU1 Phase 2 during 2026 H1, including two in the first quarter and two in the second quarter. During 2026 Q2, production flow averaged approximately 2,519 gpm and production grade averaged approximately 38 mg/L.

Previous wording

Wellfield development and surface construction at Lost Creek during 2026 Q1 were focused on MU1 Phase 2 and remain on schedule for our 2026 operating plans. MU1 Phase 2 is planned to include 10 HHs, several of which we plan to bring online during 2026 Q2. During the quarter, we advanced installation of the remaining production and injection wells planned for MU1 Phase 2, all of which have been drilled and cased. Including HHs already in operation, our Casper shop has completed construction of seven of the 10 HHs planned for MU1 Phase 2 and made progress on components for the remaining three.

Current wording

Wellfield development and surface construction in 2026 Q2 continued to focus on MU1 Phase 2 and remains on schedule for our 2026 operating plans. MU1 Phase 2 is planned to include 10 HHs. During the quarter, we continued to advance installation of the 376 production and injection wells currently planned for the remaining six HHs in MU1 Phase 2. At June 30, 2026, approximately 99.5% of these wells had been drilled and cased and approximately 72% had been completed, and we had 17 drill rigs on site performing open hole drilling, casing, and completion work.

Previous wording

We also continued with wellfield delineation and development in MU4 and MU5 and began pattern planning for MU5. During 2026 Q1, we received approval of an amended aquifer exemption for Lost Creek that covered MU5 and substantially expanded the scope of the exemption. At March 31, 2026, we had 15 drill rigs operating at Lost Creek, which we expect will be sufficient for our 2026 drill programs.

Current wording

We also continued with wellfield delineation and development in our fourth mine unit (“MU4”) and our fifth mine unit (“MU5”) and pattern planning for MU5. As previously disclosed, during 2026 Q1, we received approval of an amended aquifer exemption for Lost Creek that covered MU5 and substantially expanded the scope of the exemption.

Previous wording

Since year-end 2025, the Wyoming Department of Environmental Quality completed its pre-operational inspections for the facility, and in April 2026, we brought HH 1-1 online and commenced initial operations to extract and capture U 3 O 8.

Current wording

As previously disclosed, we brought HH 1-1 online and commenced initial operations to extract and capture U 3 O 8 at Shirley Basin in April 2026. In late June 2026, we received final authorization (the “Authorization”) from the Wyoming Department of Environmental Quality, Uranium Recovery Program (“URP”) to begin full production operations at Shirley Basin, including the transportation of U 3 O 8 captured in the Shirley Basin satellite plant to Lost Creek for drying, packaging, and delivery to the conversion facility for sale to customers.

Previous wording

Our Casper, Wyoming construction shop supplies header houses to both our Lost Creek Project and our Shirley Basin Project. All our header houses are fabricated and built in Casper, allowing for efficiency, cost savings, and greater safety due to minimized travel requirements. During 2026 Q1, our construction team delivered two HHs to Lost Creek and three HHs to Shirley Basin, and advanced construction of five additional header houses.

Current wording

Our Casper, Wyoming construction shop supplies HHs to both Lost Creek and Shirley Basin. All our HHs are fabricated and built in Casper, allowing for efficiency, cost savings, and greater safety due to minimized travel requirements. During 2026 Q2, our construction shop completed the fabrication of two HHs for Lost Creek and one HH for Shirley Basin and advanced components for two additional HHs for Lost Creek and two additional HHs for Shirley Basin. Including HHs already in operation, at June 30, 2026, the shop had completed the fabrication of nine of the 10 HHs planned for MU1 Phase 2 at Lost Creek and the first six HHs planned for Shirley Basin.

Previous wording

Our Casper chemistry lab continues to support mine unit analysis at both Lost Creek and Shirley Basin through uranium analysis, product quality testing, and water sampling analysis. The lab staff also support ongoing research and development programs.

Current wording

Our Casper chemistry lab continued to support mine unit analysis at both Lost Creek and Shirley Basin through uranium analysis, product quality testing, and water sampling analysis. The lab staff also support ongoing research and development programs.

Previous wording

In 2025, we renewed exploration activities in the Great Divide Basin (“GDB”), Wyoming. Work began at our Lost Soldier Project located northeast of Lost Creek in 2025 Q3. The program at Lost Soldier included the installation of a series of aquifer test wells to facilitate a better understanding of the local hydrogeology. While the geology of the project is largely understood with the benefit of data from approximately 4,000 historical drill holes, additional hydrogeologic data and characterization will enable our professional staff to better plan for potential permitting and development of the site. We commenced aquifer testing in April 2026 and plan to initiate baseline environmental studies in 2026 in anticipation of possible permitting to advance the project. We also anticipate preparing a technical report for Lost Soldier in 2026. Located approximately 17 road miles to the Lost Creek plant, Lost Soldier has the potential to be developed as a satellite operation.

Current wording

We renewed exploration activities in the Great Divide Basin (“GDB”), Wyoming in 2025 Q3, beginning with our Lost Solider Project. Located approximately 17 road miles northeast of Lost Creek, Lost Soldier has the potential to be developed as a satellite operation. Although the geology of the project is largely understood with the benefit of data from approximately 4,000 historical drill holes, additional hydrogeologic data gathering and characterization are underway to enable us to better plan for potential permitting and development of the site.

Previous wording

North Hadsell and LC South Projects

Current wording

North Hadsell and LC South

Previous wording

As work concluded at Lost Soldier in 2025, the drill rigs and related teams began exploration drilling at our North Hadsell Project, also in the GDB north of Lost Creek. Through mid-March 2026, when seasonal sage grouse restrictions began, we had drilled 33 wide-spaced framework holes, each approximately 1,000 feet deep, for a total of 33,815 feet. Seven of these initial drill holes have returned significant mineralization, indicating the presence of a stacked roll-front system containing 13 individual intercepts exceeding 0.20 GT (Grade (%eU 3 O 8) times Thickness (ft)). These grades and thicknesses closely resemble the mineralization at Lost Creek, where the Company applies a 0.20 GT cut-off in evaluating economic mineral resources. Preliminary interpretation suggests the potential for up to eight individual roll fronts within a depth range of approximately 300 to 800 feet below surface, ideal for ISR mining, with indications of additional mineralized horizons at depth.

Current wording

In 2025 Q4, we began exploration drilling at our North Hadsell Project, also in the GDB north of Lost Creek. Through mid-March 2026, when seasonal sage grouse restrictions began, we had drilled 33 wide-spaced framework holes, each approximately 1,000 feet deep, for a total of 33,815 feet. Seven of these initial drill holes returned significant mineralization, indicating the presence of a stacked roll-front system containing 13 individual intercepts exceeding 0.20 GT (Grade (%eU 3 O 8) times Thickness (ft)). These grades and thicknesses closely resemble the mineralization at Lost Creek, where the Company applies a 0.20 GT cut-off in evaluating economic mineral resources. Preliminary interpretation suggested the potential for up to eight individual roll fronts within a depth range of approximately 300 to 800 feet below surface, ideal for ISR mining, with indications of additional mineralized horizons at depth.

Previous wording

We sold 55,000 pounds of U 3 O 8 at an average price of $70.98 per pound during 2026 Q1, generating revenue of $3.9 million. During the quarter, we dried and packaged 95,599 pounds of U 3 O 8 and shipped 103,956 pounds of U 3 O 8 to the conversion facility. At March 31, 2026, our finished inventory at the third-party conversion facility totaled 417,231 pounds of U 3 O 8.

Current wording

During 2026 Q2, we sold 215,000 pounds of U 3 O 8 at an average price of $66.85 per pound, generating revenue of $14.37 million. At June 30, 2026, our finished inventory at the third-party conversion facility totaled 348,292 pounds of U 3 O 8.

Previous wording

We currently have multi-year sales agreements with eight global nuclear energy companies. Our agreements call for base annual deliveries of 1.3 million pounds of U 3 O 8 in 2026, 1.15 million pounds in 2027, 1.4 million pounds in 2028, 900 thousand pounds in 2029, 800 thousand pounds in 2030, 100 thousand pounds in 2032, and 100 thousand pounds in 2033, with additional deliveries at our election of up to 100,000 pounds in 2028, 2029, and 2030. Combined base deliveries from 2026 through 2033 total 5.75 million pounds of U 3 O 8.

Current wording

We currently have sales agreements with ten global nuclear energy and uranium trading companies. After the deferral described below under “Looking Ahead,” our agreements call for base annual deliveries of 1.0 million pounds of U 3 O 8 in 2026, including pounds that we delivered in the first half of 2026, and for base annual deliveries of 1.3 million pounds in 2027, 1.4 million pounds in 2028, 1.05 million pounds in 2029, 800 thousand pounds in 2030, 100 thousand pounds in 2032, and 100 thousand pounds in 2033, with additional deliveries at our election of up to 100,000 pounds in 2028, 2029, and 2030. Combined base deliveries from 2026 through 2033 total 5.75 million pounds of U 3 O 8.

Previous wording

In 2026 Q1, we sold 55,000 pounds of U 3 O 8 at an average price of $70.98 per pound for revenues of $3.9 million. The deliveries were made under contracts negotiated in 2024 that included a combination of base-escalated and market-based pricing, which led to the higher price received in 2026 Q1 as compared to the 2025 pricing.

Current wording

In 2026 Q2, we sold 215,000 pounds of U 3 O 8 at an average price of $66.85 per pound for revenues of $14.4 million. In the six months ended June 30, 2026, we sold 270,000 pounds of U 3 O 8 at an average price of $67.69 per pound for revenues of $18.3 million The deliveries were made under contracts negotiated in 2024 that included a combination of base-escalated and market-based pricing, which led to the higher price received in 2026 as compared to the 2025 pricing.

Previous wording

In 2026, we expect to sell 1,300,000 pounds of U 3 O 8 at an average price per pound sold of approximately $63 for revenues of approximately $82 million. Of the 1,300,000 pounds, only 210,000 pounds were contracted in 2024 with a combination of base-escalated and market-based pricing. The remaining 1,090,000 pounds were negotiated as base-escalated contracts in 2022 and 2023, when the long-term price was between $43 and $57, which will lead to the lower average estimated price in 2026 as compared to the 2026 average actual Q1 price.

Current wording

In 2026, we expect to sell a total of 1,000,000 pounds of U 3 O 8 at an average price per pound sold of approximately $64 for revenues of approximately $64 million. Of the 1,000,000 pounds, only 210,000 pounds were contracted in 2024 with a combination of base-escalated and market-based pricing. The remaining 790,000 pounds were negotiated as base-escalated contracts in 2022 and 2023 when the long-term price was between $43 and $57, which will lead to the lower average estimated price for the year ending December 31, 2026, as compared to the June 30, 2026 year-to-date average actual price.

Previous wording

Deliveries for 2026 are committed to six customers with a substantial majority of deliveries occurring in the latter part of the year. Our current expectation is to deliver 55,000 pounds in 2026 Q1, 215,000 pounds in 2026 Q2, 190,000 pounds in 2026 Q3, and 840,000 pounds in 2026 Q4, for a total of 1,300,000 pounds of U 3 O 8 in 2026. The deliveries were scheduled in this fashion to complement the ramp up and start up schedules of Lost Creek and Shirley Basin.

Current wording

Deliveries for 2026 are committed to six customers with a substantial majority of deliveries occurring in the latter part of the year. In addition to the 55,000 pounds that we delivered in 2026 Q1 and the 215,000 pounds that we delivered in 2026 Q2, we expect to deliver 190,000 pounds in 2026 Q3 and 540,000 pounds in 2026 Q4, for a total of 1,000,000 pounds of U 3 O 8 in 2026. The deliveries were scheduled in this fashion to complement the ramp-up and start-up schedules of Lost Creek and Shirley Basin.

Previous wording

In 2026 Q1, we delivered 55,000 produced pounds at an average cost per pound sold of $48.85. The increased production rates in 2025 discussed above, and the resulting lower cost per pound in ending inventory, led to the lower average cost per pound sold in 2026 Q1 as compared to 2025.

Current wording

In 2026 Q2, we delivered 165,000 produced pounds at an average cost per pound sold of $52.96. In the six months ended June 30, 2026, we delivered 220,000 produced pounds at an average cost per pound sold of $51.93. The increased production rates in 2025 and the first six months of 2026 led to the lower average cost per pound sold in the six months ended June 30, 2026 as compared to 2025.

Previous wording

In 2026, we expect to sell 1,300,000 pounds of U 3 O 8. The sales will be made from a combination of produced and purchased pounds. As of March 31, 2026, we had a total of 417,231 pounds of U 3 O 8 at the conversion facility, including 240,000 purchased pounds. Production at Lost Creek is expected to continue to increase in 2026 and we expect to initiate production at Shirley Basin in summer 2026. Uranium bearing solution is now being captured at Shirley Basin and uranium concentrations are expected to increase over time as we expand the wellfield and bring additional production circuits online. As production at Lost Creek increases, we expect to see further decreases in the cost per pound produced. However, initial production at Shirley Basin will likely have higher production costs per pound until production rates increase over time as expected.

Current wording

In 2026, we expect to sell 1,000,000 pounds of U 3 O 8 from a combination of produced and purchased pounds. Production at Lost Creek is expected to continue to increase in 2026 and we expect to initiate production at Shirley Basin in summer 2026. As production increases, we expect further decreases in the cost per pound produced at Lost Creek, although initial production at Shirley Basin will likely have higher costs until production rates increase.

Previous wording

In 2026 Q1, we sold 55,000 produced pounds at an average price per pound sold of $70.98 and the average cost per pound sold was $48.85, which resulted in an average profit per pound sold of $22.13 and an average profit margin per pound sold of about 31%. On a cash cost basis, the average profit per pound sold was $37.31 and the profit margin per pound sold was about 53%. The improvement in 2026 Q1 as compared to 2025 was due to the higher sales price received in combination with a lower cost per pound sold.

Current wording

In 2026 Q2, we sold 165,000 produced pounds at an average price per pound sold of $64.80 and an average cost per pound sold of $52.95, which resulted in an average profit per pound sold of $11.85 and an average profit margin per pound sold of about 18%. In the six months ended June 30, 2026, we sold 220,000 produced pounds at an average price per pound sold of $66.35 and an average cost per pound sold of $51.93, which resulted in an average profit per pound sold of $14.42 and an average profit margin per pound sold of about 22%. On a cash cost basis, the average profit per pound sold was $31.11 and the profit margin per pound sold was about 47%. The improvement in average profit per pound sold and profit margin per pound sold in the first six months of 2026 as compared to 2025 was due to the higher sales price received in combination with a lower cost per pound sold.

Previous wording

In 2026, profit margins from Lost Creek should be better than in 2025 with a slightly higher average sales price and production cost per pound sold. As Shirley Basin comes online, the initial cost per pound produced will be higher until production rates increase over time as expected, which will result in lower initial profit margins.

Current wording

In 2026, profit margins from Lost Creek should be better than in 2025 with a slightly higher average sales price and lower average production cost per pound sold. As Shirley Basin comes online, the initial cost per pound produced will likely be higher until production rates increase over time, which will result in lower initial profit margins.

Previous wording

In 2025, we captured 370,893 pounds, drummed 410,440 pounds and shipped 420,144 pounds as mining activities continued to accelerate.

Current wording

In 2025, we captured 370,893 pounds, drummed 410,440 pounds, and shipped 420,144 pounds.

Previous wording

However, fine particles from the host formation carried in solution continue to inhibit our ability to increase flow rates into the plant. To address the issue, we are currently installing a sand filtration system to further optimize production and processing by selectively removing fine particles before they enter the plant. The installation of the sand filters is in process and expected to be completed in 2026 Q2.

Current wording

In 2026 Q2, we captured 105,016 pounds, and in the six months ended June 30, 2026, we captured 215,330 pounds or about 58% of the total captured in 2025. Pounds captured in 2026 Q2 included 10,633 pounds from Shirley Basin as operations were initiated during the quarter. Flow rates at Lost Creek were intentionally lowered in late 2025 to allow the plant to make processing modifications and perform additional equipment repairs. The work related to plant systems was mostly completed in 2025 Q4, which allowed us to maintain better average flow rates in the first six months of 2026. Fine particles from the host formation carried in solution inhibited our ability to further increase flow rates into the plant during the first six months of 2026. To address this issue, in 2026 Q2 we installed a sand filtration system to further optimize production and processing by selectively removing fine particles before they enter the plant. Although testing and other commissioning work of the sand filtration system extended past 2026 Q2, operation of the system commenced in July 2026, which should allow us to further increase flow rates during the last six months of 2026.

Previous wording

Conversion facility inventories increased during the current quarter, from approximately 365,000 pounds at December 31, 2025 to approximately 417,000 pounds at March 31, 2026. The increase was due to shipping more pounds to the conversion facility than we sold during the quarter. The ending produced inventory cost per pound increased from $46.36 to $51.53 during the quarter, reflecting higher average production costs per pound drummed that resulted from drumming fewer pounds during the quarter.

Current wording

Conversion facility inventories decreased during the current quarter to 348,292 pounds at June 30, 2026. The decrease was due to selling more pounds than were shipped to the conversion facility during the quarter. The ending produced inventory cost per pound increased from $51.53 to $55.01 during the quarter, reflecting higher average production costs per pound shipped to the facility in combination with the sale of lower cost pounds earlier in the quarter.

Previous wording

Three months ended March 31, 2026 compared to the three months ended March 31, 2025

Current wording

Three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025

Previous wording

The following table summarizes the results of operations for the three months ended March 31, 2026 and 2025:

Current wording

The following table summarizes the results of operations for the three and six months ended June 30, 2026 and 2025:

Previous wording

We also had two transactions totaling $27 thousand in disposal fee revenue in the three months ended March 31, 2026. We had no disposal fee revenues in 2025 Q1. Our disposal income is dependent on the reclamation programs of other companies and varies based on their level of activity.

Current wording

We also had two transactions totaling $27 thousand in disposal fee revenue in the six months ended June 30, 2026, and $7 thousand in disposal fee revenues in the same period in 2025. Our disposal income is dependent on the operating and reclamation programs of other companies and varies based on their level of activity.

Previous wording

The NRV adjustments for the three months ended March 31, 2025 predominantly related to a decline in the market price of U 3 O 8 which reduced the value of the non-produced inventory that had been acquired in 2024.

Current wording

The $0.2 million in NRV adjustments for the six months ended June 30, 2026, primarily related to expected future sales of non-produced inventory at a sales price below carrying cost, while NRV adjustments for the six months ended June 30, 2025, predominantly related to a decline in the market price of U 3 O 8, which reduced the value of the non-produced inventory that had been acquired in 2024 and 2025.

Previous wording

The following table summarizes operating costs for the three months ended March 31, 2026 and 2025:

Current wording

The following table summarizes operating costs for the three and six months ended June 30, 2026 and 2025:

Previous wording

Exploration and evaluation expense consists of labor and the associated costs of the exploration, evaluation, and regulatory departments, as well as land holding and exploration costs on properties that have not reached the development or operations stage. For 2026 Q1, costs increased $1.2 million over 2025 Q1. Labor costs accounted for $0.7 million of the increases in 2026 compared to 2025, due to increases in staffing levels and bonus accruals. In addition, exploration drilling on properties other than Lost Creek and Shirley Basin amounted to $0.4 million for the period.

Current wording

Exploration and evaluation expense consists of labor and the associated costs of the exploration, evaluation, and regulatory departments, as well as land holding and exploration costs on properties that have not reached the development or operations stage. For the six months ended June 30, 2026, these costs increased $1.3 million over the same period in 2025. Labor costs accounted for $0.7 million of the increase, due to increases in staffing levels and increased exploration and evaluation activity, including exploration drilling on properties other than Lost Creek and Shirley Basin.

Previous wording

Development expense, a component of operating costs, increased $5.2 million in 2026 Q1 as compared to 2025 Q1. The following table summarizes the development costs included in operating costs for the three months ended March 31, 2026, and 2025:

Current wording

Development expense, a component of operating costs, increased $1.9 million and $7.1 million in the three and six months ended June 30, 2026, as compared to 2025, respectively. The following table summarizes the development costs included in operating costs for the three and six months ended June 30, 2026, and 2025:

Previous wording

The Company is considered an exploration stage issuer and expenses its pre-production development costs. These development costs are incurred in advance of production from the related mining areas. Development expense includes costs incurred at the Lost Creek Project not directly attributable to current production activities, including wellfield construction, drilling, and development costs. It also includes costs incurred at the Shirley Basin Project not directly attributable to the construction of the capitalizable assets of the project, including the installation of the first mine unit, which is in progress.

Current wording

The Company is considered an exploration stage issuer and expenses its pre-production development costs. These development costs are incurred in advance of production from the related mining areas. Development expense includes costs incurred at Lost Creek not directly attributable to current production activities, including wellfield construction, drilling, and development costs. It also includes costs incurred at Shirley Basin not directly attributable to the construction of the capitalizable assets of the project, including the installation of the first mine unit, which is in progress.

Previous wording

Production stage issuers, as defined by the SEC, having established proven and probable reserves, typically capitalize expenditures relating to ongoing development activities, with corresponding depletion calculated over proven and probable reserves using the units-of-production method. Depletion is then allocated to inventory and as the inventory is sold, to cost of sales. We are an exploration stage issuer which has resulted in the Company reporting larger losses than if we were a production stage issuer, due to the expensing, instead of capitalization, of expenditures relating to ongoing mine development activities. Additionally, there would be no corresponding depletion allocated to future periods of the Company since those costs had been expensed previously, resulting in both lower inventory costs and cost of sales, and results of operations with higher gross profit and lower gross loss than if we would have been in the production stage. As a result, our consolidated financial statements may not be directly comparable to the financial statements of production stage issuers.

Current wording

Production stage issuers, as defined by the SEC, having established proven and probable reserves, typically capitalize expenditures relating to ongoing development activities with corresponding depletion calculated over proven and probable reserves using the units-of-production method. Depletion is then allocated to inventory, and as the inventory is sold, to cost of sales. We are an exploration stage issuer, which has resulted in the Company reporting larger losses than if it was a production stage issuer due to the expensing, instead of capitalization, of expenditures relating to ongoing mine development activities. Correspondingly, there will be no depletion allocated to future periods of the Company since those costs were expensed previously, resulting in both lower inventory costs and cost of sales, and results of operations with higher gross profit and lower gross loss than if we would have been in the production stage. As a result, our consolidated financial statements may not be directly comparable to the financial statements of production stage issuers.

Previous wording

As noted, development expenses increased approximately $5.2 million during the three months ended March 31, 2026, compared to 2025. Development activities at Shirley Basin accounted for increase, which was partially offset by a decrease in development costs at Lost Creek. The Company reached full staffing levels for the development and operations at Shirley Basin and has nearly completed plant construction, but as it has not started production, all wellfield, plant, and site administration costs are treated as development costs. Drilling costs, supplies, and related services as well as repairs, fuel, and overhead, such as insurance and bonding costs, related to these heightened efforts are being expensed to development costs.

Current wording

As noted, development expenses increased approximately $1.9 million and $7.1 million during the three and six months ended June 30, 2026, compared to 2025, respectively. Development activities at Shirley Basin accounted for the majority of the increase, which was partially offset by a decrease in development costs at Lost Creek. The Company reached full staffing levels for the development and operations at Shirley Basin and has substantially completed initial plant construction and commenced capturing U 3 O 8, but because Shirley Basin has not commenced commercial production operations, all wellfield, plant, and site administration costs are treated as development costs. Drilling costs, supplies, and related services as well as repairs, fuel, and overhead, such as insurance and bonding costs, related to these heightened efforts are being expensed to development costs.

Previous wording

General and administration expenses relate to the administration, finance, investor relations, land, and legal functions, and consist principally of personnel, facility, and support costs. For the three months ended March 31, 2026, these expenses increased $1.8 million, compared to 2025. The increase was driven by labor, which increased $1.0 million due to executive staff increases, which took place after 2025 Q1, as well as the 2026 Q1 bonus costs. Stock based compensation also increased by $0.7 million as more personnel qualified for stock-based awards as compared to 2025 Q1 and due to changes in the stock price.

Current wording

General and administration expenses relate to administration, finance, investor relations, land, and legal functions, and consist principally of personnel, facility, and support costs. For the three and six months ended June 30, 2026, these expenses increased $0.5 million and $2.3 million, compared to their respective 2025 periods. The increase was primarily driven by labor, which increased $0.4 million and $1.4 million, respectively, due to continued increases in executive staff, as well as higher 2026 Q1 bonus costs due to higher employee headcount and increased stock-based compensation.

Previous wording

Interest income was slightly lower for the three months ended March 31, 2026, as compared to the same period in 2025. The decrease was primarily driven by lower interest rates. Interest expense increased due to the sale of our Convertible Notes in December 2025, which includes a full quarter of its 4.75% coupon interest expense and the related amortization of debt discounts, including debt issuance costs, during 2026 Q1.

Current wording

Interest income was $0.3 million and $0.2 million higher for the three and six months ended June 30, 2026, as compared to the same periods in 2025, respectively. The increases were primarily driven by higher invested cash balances in 2026 relative to 2025, due to the net proceeds received in connection with our 4.75% Convertible Senior Notes due 2031 (the “Convertible Notes”) issued in December 2025. Interest expense significantly increased in 2026, due to the sale of our Convertible Notes in December 2025. The coupon interest expense and the related amortization of debt discounts, including debt issuance costs, for the Convertible Notes in 2026 were not present during the comparable 2025 periods.

Previous wording

The 2025 mark to market gain included adjustments to the warrant liability and the inventory derivative obligation. The warrants are now fully exercised or forfeited, but the mark to market for 2026 Q1 included final adjustments to the warrant liability during the quarter prior to their expiration and ongoing adjustments to the inventory derivative obligation. In addition, the 2026 Q1 mark to market adjustments also include changes in the derivative values associated with the Convertible Notes sold in 2025 Q4 and changes in the market value of marketable securities that we received in connection with the sale of drilling data in 2026 Q1, as described below.

Current wording

The mark to market adjustments in the three and six months periods ended June 30, 2026, include changes in the values of the capped call and conversion option derivative instruments associated with the Convertible Notes, and changes in the market value of marketable securities that we received in connection with the sale of drilling data in 2026 Q1, as described below. They also include mark to market adjustments to the warrant liability during 2026 Q1, prior to their exercise and expiration, as well as the inventory derivative obligation. The comparable 2025 periods’ mark to market losses include adjustments to the warrant liability and the inventory derivative obligation.