Ur-Energy Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Warrant Liability

Warrant Liability

12 Months Ended

Dec. 31, 2023

11. Warrant Liability

In September 2018, the Company issued 13,062,878 warrants to purchase 6,531,439 common shares at $1.00 per whole common share for a term of three years.

In August 2020, the Company issued 9,000,000 warrants to purchase 4,500,000 common shares at $0.75 per whole common share for a term of two years.

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 company 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 for the period.

Activity with respect to the warrant liabilities is presented in the following tables.

Warrant Liability Activity	Sep. 2018 Warrants			Aug. 2020 Warrants			Feb. 2021 Warrants			Feb. 2023 Warrants			Total

December 31, 2020		729			1,415			-			-			2,144

Warrants issued		-			-			2,604			-			2,604
Warrants exercised		(3,961	)		(388	)		(97	)		-			(4,446	)
Mark to market revaluation loss		3,227			1,020			1,751			-			5,998
Effects for foreign exchange rate changes		5			(20	)		(22	)		-			(37	)

December 31, 2021		-			2,027			4,236			-			6,263

Warrants exercised		-			(1,790	)		-			-			(1,790	)
Mark to market revaluation gain		-			(215	)		(1,620	)		-			(1,835	)
Effects for foreign exchange rate changes		-			(22	)		(234	)		-			(256	)

December 31, 2022		-			-			2,382			-			2,382

Warrants issued		-			-			-			9,109			9,109
Warrants exercised					-			(55	)		(3	)		(58	)
Mark to market revaluation loss (gain)		-			-			(626	)		2,212			1,586
Effects for foreign exchange rate changes		-			-			42			231			273

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

Warrant Liability Duration	February 2021 Warrants		February 2023 Warrants		Total

Current portion of warrant liability		1,743		-		1,743
Long-term warrant liability		-		11,549		11,549
		1,743		11,549		13,292

The fair value of the warrant liabilities on December 31, 2023, was determined using the Black-Scholes model with the following assumptions:

Black-Scholes Assumptions as of December 31, 2023	February 2021 Warrants			February 2023 Warrants

Expected forfeiture rate		0.0	%		0.0	%
Expected life (years)		0.1			2.1
Expected volatility		45.8	%		61.6	%
Risk free rate		3.8	%		3.8	%
Expected dividend rate		0.0	%		0.0	%
Exercise price	$	1.35		$	1.50
Market price	$	1.54		$	1.54