12.

Warrant Liability

In September 2018, we issued 13,062,878 warrants as part of an underwritten public offering with two warrants redeemable for one Common Share of the Company’s stock at a price of $1.00 per full share. The remaining, unexercised warrants expired in September 2021.

In August 2020, we issued 9,000,000 warrants as part of a registered direct offering with two warrants redeemable for one Common Share of the Company’s stock at a price of $0.75 per full share. Any remaining, unexercised warrants will expire in August 2022.

In February 2021, we issued 16,930,530 warrants as part of an underwritten public offering with two warrants redeemable for one Common Share of the Company’s stock at a price of $1.35 per full share. Any remaining, unexercised warrants will expire in February 2024.

Because the warrants are priced in U.S. dollars and the functional currency of Ur-Energy Inc. is Canadian dollars, a derivative financial liability was created. The liability created, and adjusted monthly, is calculated using the Black-Scholes model described below as there is no active market for the warrants. Any gain or loss from the adjustment of the liability is reflected in net income for the period.

The Company’s warrant liabilities consist of the following:

 Warrant Liability Activity

December 31, 2020

Warrants issued

Warrants exercised

Mark to market revaluation loss (gain)

Effects for foreign exchange rate changes

September 30, 2021

 Warrant Liability Duration

Current portion of warrant liability

Warrant liability

September 30, 2021

The fair value of the warrant liabilities on September 30, 2021, was determined using the Black-Scholes model with the following assumptions:

Black-Scholes Assumptions at September 30, 2021

Expected forfeiture rate

Expected life (years)

Expected volatility

Risk free rate

Expected dividend rate

Exercise price

Market price