Welcome to the Ur-Energy First Quarter 2016 Webcast and Teleconference. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this conference is being recorded. I would now like to turn the conference over to Rich Boberg, Senior Director, Investor Public Relations. Mr. Boberg, please go ahead.

Thank you for joining us today for our first quarter 2016 webcast and teleconference. We are required to draw the attention of all of our listeners to the legal disclaimers contained in this morning's slide presentation, which apply equally to our oral presentation today. At slide 2, you will find legal disclaimers with regard to forward-looking statements, risk factors and projections, as well as other cautionary notes to U.S. investors. We ask that you read and consider these disclaimers carefully before investing in our shares. As well, risk factors inherent in forward-looking statements and projections are set forth and discussed in the Company's Annual Report on Form 10-K, filed February 26, 2016, with the U.S. Securities and Exchange on EDGAR and with securities regulatory authorities in Canada on SEDAR. I would now like to introduce and turn the webcast presentation over to our Chair and Executive Director, Jeff Klenda.

Great, thank you very much Rich and good morning, everyone, and thank you for joining us today. We are still on the disclaimer page and so I will make just a brief note that I will tend to make forward-looking statements must to the [indiscernible] of our legal counsel but as usually the case I will attempt to identify them as such when I make them. If we go ahead and get started today we’ll move on to slide number 3, and here we have our areas of primary emphasis as a company and what we’ll try and do is cover these today in this order and that’ll be done by myself along with Steve Hatten our VP of Operations, Roger Smith our CFO and then of course, we’ll open it up to Q&A. But if you look at the slide here, the first bullet point, our resource growth, during the first quarter, of course this has continued to be in area of [indiscernible] for us and we were able to complete an updated PEA in February. We feel that it is very high priority to demonstrate organic growth as a company and we actually had a very good year along these lines last year. Second bullet point, realizing better sales through long term sales agreements, has long been a high priority for this company. And the simple fact of the matter is, is that we’re only as good as our contracts. The reality is, is that we find ourselves in a very difficult business right now. The first quarter as much as I would like say that it was uneventful, the simple fact is that in the Uranium space is simply was not, we continue to find ourselves characterized by elevated inventories, limited demand and over supply. And as…

All right, thanks Jeff. As you’ve heard me say in previous webcast and many times before, as we’ve talked, the well installations in mining at one had been complete for some time with one rankle this time. We have recently modified the completions in our Header House to see if we can enhance the injectivity for being greater well performance. This Header House, Header House 13 is slated to come online this month. Development work in the second mine unit continues to be limited as mine unit one has met our product needs to date. However, we have installed wells in the first three Header Houses of the second mine unit, that’s mine unit two, and started the installation of production support system such as power lines and pipelines on a limited basis. Many of you by now have noticed that the dialog for development work has changed very little over the last few webcast, this can primarily be attributed to the ongoing excellent recoveries in the first mine unit. As a matter of fact, it’s been approximately seven months since our last Header House was started and yet we’ve been able to maintain production at desired levels. In short, Lost Creek continues to impress. On the next slide, Lost Creek production results, we’re going to continue to build on the theme from the last slide. You can see from the data that we’ve been able to maintain the average grade in the first mine unit with it only declining 24% over the last four quarters. Again this is true, even though the last Header House, Header House number 12 in mine unit one was started seven months ago. Another take away is the consistency of pounds drummed and shipped, by allowing for us to continue to build inventory at…

Great, thank you Steve. And I’m going to make just a couple of other ancillary comments. I’m a little more [indiscernible] than Steve. The fact is, is that Lost Creek has proven to be a truly unique property. And one of the things that we’ve seen is that as most of you are well aware, we started out with head grades that were multiples of what were anticipated and while we’ve seen a normal decline curve in those head grades we are still well above what any of our projections were before we started production. And what that has allowed us to do is that because of that excellent longevity in mine unit number one which is truly extraordinary that’s allowed us to postpone the expenditure of necessary CapEx we thought that we would be well into mine unit number two. So Lost Creek not only has proven to be an exceptional property but it’s kept us in very good stead and continues to do so and has resulted in our company and join the solid fundamentals that we do with the present. With the report on that, I will now turn it over to Ur-Energy’s Chief Financial Officer and Chief Administrative Officer, Roger Smith. Roger?

Thank you, Jeff. This slide, slide 11 shows our cost per pound sold per quarter and also shows the average sales price that we received is compared to the average spot price during the period. During the quarter we sold £75,000 including loan contract sales £25,000 at $39.35 per pound and one spot sale of £50,000 at $34.50 per pound. This generated uranium sales revenue of $2.7 million at an average price of $36.12 per pound, as compared to the average spot price during the period which was $31.85 per pound. The average cost per pound sold decreased to $24.73 per pound during the quarter. As a result, our gross profit was $11.39 per pound which represents a gross profit margin of about 32%. On a cash cost basis, our gross profit was $20.71 per pound or 57% on a gross profit margin basis. While our average cost per pound sold decreased in Q1, we do not expect it to decrease in Q2. Once again we have intentionally throughout our back our production to meet our contract sales requirements. And as you’ll see on the next slide, our cost per pound in the inventory increased slightly which will lead to a slightly higher cost per pound sold in Q2. These slide shows the number of pounds held in the various stages of our inventory in the related total cost per pound of the finished product at the conversion facility. During the quarter we built our drummed inventory at the plant in conversion facility going from £94,000 to £195,000. This is a direct result in drumming and shipping a consistent amount of pounds during the quarter, but only selling £75,000. Indian inventory consisted of £72,000 in process, £22,000 of dried and drummed pounds at the plant and £173,000 of finished product…

Great, thank you Roger. I think that’s – as you just head from Roger, this is a high priority for us, we will continue to monitor the company’s expenditures. We have already seen dramatic, I think cost reductions, we continue to see our cost fall and our inventories rise. And I think that it’s important and one of the takeaways from what Roger just mentioned was the fact that because we are intentionally throttling back our production we do expect that we will see a slight rise in cost of those and they’ll continue to be industry leading cost structures. We think that it’s prudent at this point in time and of course, we’ll continue to react as to the market depending on the prices that we see out there in the market place. Boberg, if you would please, we’ll close out the part of the webcast this morning with just a brief discussion on Pathfinder and Shirley Basin. As I mentioned, we continue to advance permitting and licensing on Shirley Basin. It costs us very little to do this, we are able to do this with our existing staff. We have not incurred a great deal of expense, we do not anticipate a great deal of expense in advancing this year but it’s very important that we continue to move it forward and be prepared to ramp production when we finally get those signals from the market that it’s in appropriate time to do so. Until then, we will continue to focus on as a company, continuing to lower our costs across the board, we like to think that we’re a pretty lean, clean efficient machine right now but there is always room to improve. Secondly, with respect to our long-term sales agreements as of course we’ve already discussed,…

We’ll now begin the question-and-answer session. [Operator Instructions] Our first question comes from Heiko Ihle with H.C. Wainwright. Please go ahead.

Hey Jeff, thanks for taking my questions and congratulations on the hedging program which works out quite well yet again for the quarter.

You bet, good morning Heiko.

Hey, can you give me an estimate as well to cash cost versus non-cash cost, frankly I think I’m guilty of not having paid enough attention out in the past, but I noticed over the past four quarters cash costs has gone up 25%, non-cash cost have gone down by 45% in the same period. Does that make a trend, is this just a fluke, I mean you talked about a lot of cash cost reductions in the earlier parts of this call. Can you just sort of walk me through how that is, why that is?

It’s Roger Smith here. What you’ve noticed is probably there are cash cost at the well field remained relatively consistent over the past few quarters which they are, because majority of our cost are fixed in nature. Well field cash cost for instance in 2015 Q4 were just over $1.17 million and in 2016 Q1 $1.13 million, so very little change. Meanwhile there are our pounds captured at the well field decreased during the quarter and that’s what [indiscernible] to the increased in the cash cost per pound. On a non-cash cost basis, our non-cash cost are also largely fixed, so you see that same increase because that’s directly related to the change in the pounds. And that’s what I alluded to in our presentation is that because we capture fewer pounds during the quarter, those higher cost per pounds captured will eventually make the way through the inventory in Q2 and end up as to cost per pound sold, so we do anticipate slightly higher cost per pound sold. I do expect our cash cost to remain in line, they don’t change a lot in Q2. I don’t have any reason to think they’re going to be change dramatically, so what it will come down to in Q2 is what our production levels are in that quarter as to where we see our cost profile at the end of the quarter.

Fair answer, fair answer. Thank you guys, I’ll get back in queue.

Okay, thanks Heiko.

Our next question comes from Joseph Reagor with Roth Capital Partners. Please go ahead.

Good morning guys, thanks for taking the questions. I guess the first thing I noticed was the mark of this year contract sale which created the differed revenue account. Can you give us a little bit more idea of how large, how many of that pounds were in that and what’s the timing of that delivery would be so that we can kind of model appropriately?

Sure. Well I think with – first of all with the assignment it was £200,000 and that was the delivery to that utility. And that was the – by the way the postponed delivery from Q1. So that would have normally occurred, I think we had the model for the first quarter, so then that was pushed to the second half of the year. And as I mentioned, we’re very strong with our contract but we weren’t strong enough to withstand a $12.5 million postponed on a transaction. So we did book buy those pounds in the market place and what you saw was – what was press release was the amounted to the margin between what our contract price was and what we were able to purchase them for in the market place.

Right. And in terms of how the line, the delivery is that we’re delayed to the second half of the year and that differed revenue that you see on the books were unwind as those deliveries takes place in the third and fourth quarters of this year, roughly half in each quarter.

Okay, that would give my next question half and half. Okay, and then looking at – taking that out of the equation and since that’s essentially being covered, how many total pounds you guys now looking at selling this year and how many pounds are you looking at producing?

Well we – the sales as it was on one of the prior slides is going to be £662,000 under contract this year. Anything beyond that will be discretionary sales into the spot market. And so we’ll continue to monitor that – I think that it’s a fair question and let’s put something into perspective here. And that is that, for any one of us as company we have to take a look current market and ask ourselves where is the threshold below which it makes more sense for us to simply buy the pounds in the market place rather than produce them. You notice that even with KAMICO’s announcements from a couple of weeks ago that they are purchasing upwards of £9 million this year, we’ll engage in that to a much smaller degree of course, but it only makes sense that we have to recognize what those thresholds are at these lower prices in spot and react and respond to them accordingly.

Okay. And then does that £662,000 include the £200,000 differed revenue sale or is that exclude that?

No that’s included in the £662,000, so what we’ll have outside of that is £462,000 and we’ll remain to be delivered into that contract.

Okay. All right, I’ll turn it back over. Thank you.

Great.

Thank you.

Thank you, Joe.

[Operator Instructions] This time, I’m showing no further questions, I would like to turn the conference back over to Jeff Klenda for any closing remarks.

Great. Thank you very much. Look, ladies and gentlemen, once again we appreciate your support and joining us today on the call. I think that we all recognize that not just in uranium but in many of the other extractive resources and industries. It’s a very challenge time but as you’ll see we’ll go and secure for low prices as low prices. I don’t know how much longer that we will see this continue but these times do serve a purpose and that is that they can cleanse and they can clarify, and I think that what you’ll see over the months and quarters ahead is that the strongest companies that are well positioned right now with long-term sales agreements are going to continue to thrive and others are going to have defend for themselves and we’re going to see changes in this space. As a result of it, again I think that this conserve as a cleansing period. Those that of us that have contracts we feel very fortunate that our management and our board had the foresight to put these contracts into place. You simply cannot go out and get them now, so you either have them or you don’t. So I do believe still as many of the analysts are projecting that when the turnaround does come I think that it’s going to happen very quickly, and I think that it could be as potential of being a very viable and turnaround in nature. And I’d like to think that if you’re going to position in this space or you want to be positioned for when that turnaround comes, a company that is well structured and well protected as ours makes a great place to be. So, I’ll leave you with that thought and thank you very much again for your attendance and we’ll talk to you next quarter. Bye for now.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.