Ur-Energy Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Warrant Liability

Warrant Liability

9 Months Ended

Sep. 30, 2023

12. Warrant Liability

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. The warrants will expire in February 2024.

In February 2023, we issued 39,100,000 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 $1.50 per full share. The warrants will expire in February 2026.

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	Feb-2021 Warrants		Feb-2023 Warrants			Total

December 31, 2022		2,382		-			2,382

Warrants issued		-		9,109			9,109
Mark to market revaluation loss (gain)		154		4,000			4,154
Effects for foreign exchange rate changes		3		(34	)		(31	)

September 30, 2023		2,539		13,075			15,614

Warrant Liability Duration	Feb-2021 Warrants		Feb-2023 Warrants		Total

Current portion of warrant liability		2,539		-		2,539
Long-term warrant liability		-		13,075		13,075
		2,539		13,075		15,614

The fair value of the warrant liabilities on September 30, 2023, was determined using the Black-Scholes model with the following assumptions:

	Feb-2021			Feb-2023
Black-Scholes Assumptions as of September 30, 2023	Warrants			Warrants

Expected forfeiture rate		0.0	%		0.0	%
Expected life (years)		0.3			2.4
Expected volatility rate		52.9	%		66.2	%
Risk free rate		4.8	%		4.7	%
Expected dividend rate		0.0	%		0.0	%
Exercise price	$	1.35		$	1.50
Market price	$	1.54		$	1.54