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, 2024

10. Warrant Liability

In February 2021, the Company issued 16,930,530 warrants to purchase 8,465,265 common shares at $1.35 per whole common share for a term of three years.

In February 2023, the Company issued 39,100,000 warrants to purchase 19,550,000 common shares at $1.50 per whole common share for a term of three years.

Because the warrants are priced in U.S. dollars and the functional currency of Ur-Energy Inc., the parent entity, is Canadian dollars, a derivative financial liability was created. Using Level 2 inputs of the fair value hierarchy under US GAAP, the liability created is measured and recorded at fair value, and adjusted monthly, 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 (loss) for the period.

The Company’s warrant liabilities consist of the following. The Company has no current warrant liability.

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

December 31, 2023		1,743			11,549			13,292

Warrants exercised		(4,770	)		(21	)		(4,791	)
Warrant liability revaluation loss (gain)		3,072			(7,514	)		(4,442	)
Effects of foreign exchange rate changes		(45	)		(368	)		(413	)

September 30, 2024		-			3,646			3,646

The fair value of the warrant liabilities on September 30, 2024, was determined using the Black-Scholes model with the following assumptions:

	Feb-2023
Black-Scholes Assumptions as of September 30, 2024	Warrants

Expected forfeiture rate		0.0	%
Expected life (years)		1.4
Expected volatility rate		48.5	%
Risk free rate		2.9	%
Expected dividend rate		0.0	%
Exercise price	$	1.50
Market price	$	1.19