----

----

----

----

| Ur-Energy Inc.                        |
|---------------------------------------|
| (an Exploration Stage Company)   |
| Consolidated Balance Sheets           |
|                                  |
| (expressed in Canadian dollars)  |

|                                              |   | December 31, 2010 |        |   | December 31, 2009 |   |
|---------------------------------------------------|--------|-------------------|-------------|--------|-------------------|--------|
|                                              |   | $                 |        |   | $                 |   |
|                                              |   |              |        |   |              |   |   |   |
| Assets                                            |   |              |        |   |              |   |   |   |
|                                              |   |              |        |   |              |   |   |   |
| Current assets                                    |   |              |        |   |              |   |   |   |
| Cash and cash equivalents (note 3)                |   |              | 28,718,815  |   |              |   | 32,457,323 |   |
| Short-term investments (note 3)                   |   |              | 5,122,289   |   |              |   | 10,932,101 |   |
| Marketable securities                             |   |              | 93,375      |   |              |   | 29,250 |   |
| Amounts receivable                                |   |              | 19,025      |   |              |   | 19,509 |   |
| Prepaid expenses                                  |   |              | 99,927      |   |              |   | 101,653 |   |
|                                              |   |              |        |   |              |   |   |   |
|                                              |   |              | 34,053,431  |   |              |   | 43,539,836 |   |
|                                              |   |              |        |   |              |   |   |   |
| Bonding and other deposits (note 4)               |   |              | 3,845,050   |   |              |   | 2,920,835 |   |
| Mineral properties (note 5)                       |   |              | 30,112,784  |   |              |   | 29,733,296 |   |
| Capital assets (note 6)                           |   |              | 3,209,627   |   |              |   | 2,739,121 |   |
| Equity investments (note 7)                       |   |              | 2,769,117   |   |              |   | 2,769,117 |   |
|                                              |   |              |        |   |              |   |   |   |
|                                              |   |              | 39,936,578  |   |              |   | 38,162,369 |   |
|                                              |   |              |        |   |              |   |   |   |
|                                              |   |              | 73,990,009  |   |              |   | 81,702,205 |   |
|                                              |   |              |        |   |              |   |   |   |
| Liabilities and shareholders’ equity        |   |              |        |   |              |   |   |   |
|                                              |   |              |        |   |              |   |   |   |
| Current liabilities                               |   |              |        |   |              |   |   |   |
| Accounts payable and accrued liabilities (note 8) |   |              | 831,297     |   |              |   | 1,046,963 |   |
| Asset retirement obligation (note 9)              |   |              | 503,101     |   |              |   | 503,712 |   |
|                                              |   |              |        |   |              |   |   |   |
|                                              |   |              | 1,334,398   |   |              |   | 1,550,675 |   |
|                                              |   |              |        |   |              |   |   |   |
| Shareholders’ equity (note 10)              |   |              |        |   |              |   |   |   |
| Capital stock                                     |   |              | 154,154,429 |   |              |   | 144,053,337 |   |
| Warrants                                          |   |              | 44,271      |   |              |   | — |   |
| Contributed surplus                               |   |              | 12,448,505  |   |              |   | 13,671,699 |   |
| Deficit                                           |   |              | (93,991,594 | )      |              |   | (77,573,506 | ) |
|                                              |   |              |        |   |              |   |   |   |
|                                              |   |              | 72,655,611  |   |              |   | 80,151,530 |   |
|                                              |   |              |        |   |              |   |   |   |
|                                              |   |              | 73,990,009  |   |              |   | 81,702,205 |   |

| (signed)  /s/ Jeffery T. Klenda, Director | (signed) /s/ Thomas Parker, Director |
|-----------------------------------------------------|--------------------------------------|

----

| Ur-Energy Inc.                                                       |
|----------------------------------------------------------------------|
| (an Exploration Stage Company)                                  |
| Consolidated Statements of Operation, Comprehensive Loss and Deficit |
|                                                                 |
| (expressed in Canadian dollars)                                 |

|                                                  |   |         |        |   |         |   |        |         |   |   | Cumulative     |   |
|-------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|-------------|--------------|--------|--------|----------------|--------|
|                                                  |   |         |        |   |         |   |        |         |   |   | from           |   |
|                                                  |   | Year         |        |   | Year         |   |        | Year         |   |   | March 22, 2004 |   |
|                                                  |   | Ended        |        |   | Ended        |   |        | Ended        |   |   | Through        |   |
|                                                  |   | December 31, |        |   | December 31, |   |        | December 31, |   |   | December 31,   |   |
|                                                  |   | 2010         |        |   | 2009         |   |        | 2008         |   |   | 2010           |   |
|                                                  |   | $            |        |   | $            |   |        | $            |   |   | $              |   |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Expenses                                              |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| General and administrative                            |   |         | 4,883,212   |   |         |   | 5,430,480   |         |   |   | 6,904,564      |   |   |   | 32,236,741 |   |
| Exploration and evaluation                            |   |         | 4,716,218   |   |         |   | 4,944,227   |         |   |   | 9,922,798      |   |   |   | 49,442,998 |   |
| Development                                           |   |         | 5,258,072   |   |         |   | 6,931,303   |         |   |   | 8,854,536      |   |   |   | 21,043,911 |   |
| Write-off of mineral properties                       |   |         | 381,252     |   |         |   | 102,439     |         |   |   | 285,813        |   |   |   | 803,336 |   |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
|                                                  |   |         | (15,238,754 | )      |         |   | (17,408,449 | )            |   |   | (25,967,711    | )      |   |   | (103,526,986 | ) |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Interest income                                       |   |         | 351,995     |   |         |   | 890,915     |         |   |   | 2,494,445      |   |   |   | 7,321,349 |   |
| Loss on equity investments (note 7)                   |   |         | (29,432     | )      |         |   | (17,855     | )            |   |   | —        |   |   |   | (47,287 | ) |
| Foreign exchange gain (loss)                          |   |         | (1,558,108  | )      |         |   | (3,506,111  | )            |   |   | 5,656,319      |   |   |   | 504,020 |   |
| Other income (loss)                                   |   |         | 56,211      |   |         |   | 940,237     |         |   |   | (36,638        | )      |   |   | 959,810 |   |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Loss before income taxes                              |   |         | (16,418,088 | )      |         |   | (19,101,263 | )            |   |   | (17,853,585    | )      |   |   | (94,789,094 | ) |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Recovery of future income taxes                       |   |         | —     |   |         |   | 368,445     |         |   |   | —        |   |   |   | 797,500 |   |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Net loss and comprehensive loss for the period        |   |         | (16,418,088 | )      |         |   | (18,732,818 | )            |   |   | (17,853,585    | )      |   |   | (93,991,594 | ) |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Deficit - Beginning of period                         |   |         | (77,573,506 | )      |         |   | (58,840,688 | )            |   |   | (40,987,103    | )      |   |   | — |   |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Deficit - End of period                               |   |         | (93,991,594 | )      |         |   | (77,573,506 | )            |   |   | (58,840,688    | )      |   |   | (93,991,594 | ) |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Weighted average number of common shares outstanding: |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Basic and diluted                                     |   |         | 97,341,702  |   |         |   | 93,857,257  |         |   |   | 92,996,339     |   |   |   |   |   |
|                                                  |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Loss per common share:                                |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Basic and diluted                                     |   |         | (0.17       | )      |         |   | (0.20       | )            |   |   | (0.19          | )      |   |   |   |   |

----

| Ur-Energy Inc.                        |
|---------------------------------------|
| (an Exploration Stage Company)   |
| Consolidated Statements of Cash Flow  |
|                                  |
| (expressed in Canadian dollars)  |

|                                                 |   |         |        |   |         |   |        |         |   |   | Cumulative     |   |
|------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|-------------|--------------|--------|--------|----------------|--------|
|                                                 |   |         |        |   |         |   |        |         |   |   | from           |   |
|                                                 |   | Year         |        |   | Year         |   |        | Year         |   |   | March 22, 2004 |   |
|                                                 |   | Ended        |        |   | Ended        |   |        | Ended        |   |   | Through        |   |
|                                                 |   | December 31, |        |   | December 31, |   |        | December 31, |   |   | December 31,   |   |
|                                                 |   | 2010         |        |   | 2009         |   |        | 2008         |   |   | 2010           |   |
|                                                 |   | $            |        |   | $            |   |        | $            |   |   | $              |   |
| Cash provided by (used in)                           |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Operating activities                                 |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Net loss for the period                              |   |         | (16,418,088 | )      |         |   | (18,732,818 | )            |   |   | (17,853,585    | )      |   |   | (93,991,594 | ) |
| Items not affecting cash:                            |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Stock based compensation                             |   |         | 702,762     |   |         |   | 950,874     |         |   |   | 4,567,206      |   |   |   | 16,415,833 |   |
| Amortization of capital assets                       |   |         | 526,041     |   |         |   | 526,551     |         |   |   | 515,138        |   |   |   | 1,678,656 |   |
| Provision for reclamation                            |   |         | 26,578      |   |         |   | 75,526      |         |   |   | 260,924        |   |   |   | 544,700 |   |
| Write-off of mineral properties                      |   |         | 381,252     |   |         |   | 102,439     |         |   |   | 285,813        |   |   |   | 803,336 |   |
| Foreign exchange loss (gain)                         |   |         | 1,554,906   |   |         |   | 3,506,180   |         |   |   | (5,656,319     | )      |   |   | (507,153 | ) |
| Gain on sale of assets                               |   |         | 7,915       |   |         |   | (1,073,635  | )            |   |   | (5,361         | )      |   |   | (1,071,081 | ) |
| Non-cash exploration costs (credits)                 |   |         | —     |   |         |   | (907,055    | )            |   |   | —        |   |   |   | 1,819,225 |   |
| Other loss (income)                                  |   |         | (64,125     | )      |         |   | (13,250     | )            |   |   | 51,998         |   |   |   | (62,377 | ) |
| Future income taxes                                  |   |         | —     |   |         |   | (368,445    | )            |   |   | —        |   |   |   | (797,500 | ) |
| Change in non-cash working capital items:            |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Amounts receivable                                   |   |         | (255        | )      |         |   | 107,230     |         |   |   | 760,809        |   |   |   | (8,590 | ) |
| Prepaid expenses                                     |   |         | (2,902      | )      |         |   | (46,734     | )            |   |   | 557            |   |   |   | (110,567 | ) |
| Accounts payable and accrued liabilities             |   |         | (189,803    | )      |         |   | (1,090,163  | )            |   |   | 535,491        |   |   |   | 688,149 |   |
|                                                 |   |         | (13,475,719 | )      |         |   | (16,963,300 | )            |   |   | (16,537,329    | )      |   |   | (74,598,963 | ) |
|                                                 |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Investing activities                                 |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Mineral property costs                               |   |         | (755,329    | )      |         |   | (497,761    | )            |   |   | (874,762       | )      |   |   | (11,713,902 | ) |
| Purchase of short-term investments                   |   |         | (18,930,806 | )      |         |   | (37,206,445 | )            |   |   | (64,851,470    | )      |   |   | (183,817,742 | ) |
| Sale of short-term investments                       |   |         | 24,609,301  |   |         |   | 64,971,242  |         |   |   | 77,781,918     |   |   |   | 180,202,461 |   |
| Decrease (increase) in bonding and other deposits    |   |         | (1,103,629  | )      |         |   | (879,758    | )            |   |   | (602,778       | )      |   |   | (4,094,741 | ) |
| Payments from venture partner                        |   |         | —     |   |         |   | 146,806     |         |   |   | —        |   |   |   | 146,806 |   |
| Proceeds from sale of capital assets                 |   |         | 17,769      |   |         |   | 1,082,956   |         |   |   | 26,344         |   |   |   | 1,127,069 |   |
| Purchase of capital assets                           |   |         | (1,022,231  | )      |         |   | (1,317,221  | )            |   |   | (1,586,784     | )      |   |   | (4,898,304 | ) |
|                                                 |   |         | 2,815,075   |   |         |   | 26,299,819  |         |   |   | 9,892,468      |   |   |   | (23,048,353 | ) |
|                                                 |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Financing activities                                 |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Issuance of common shares and warrants for cash      |   |         | 5,000,000   |   |         |   | —     |         |   |   | 2,750,000      |   |   |   | 127,668,053 |   |
| Share issue costs                                    |   |         | (279,849    | )      |         |   | —     |         |   |   | (115,314       | )      |   |   | (2,848,874 | ) |
| Proceeds from exercise of warrants and stock options |   |         | 3,519,256   |   |         |   | 1,393       |         |   |   | 90,000         |   |   |   | 22,088,580 |   |
| Payment of New Frontiers obligation                  |   |         | —     |   |         |   | —     |         |   |   | —        |   |   |   | (17,565,125 | ) |
|                                                 |   |         | 8,239,407   |   |         |   | 1,393       |         |   |   | 2,724,686      |   |   |   | 129,342,634 |   |
|                                                 |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Effects of foreign exchange rate changes on cash     |   |         | (1,317,271  | )      |         |   | (2,680,324  | )            |   |   | 3,407,153      |   |   |   | (2,976,503 | ) |
|                                                 |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Net change in cash and cash equivalents              |   |         | (3,738,508  | )      |         |   | 6,657,588   |         |   |   | (513,022       | )      |   |   | 28,718,815 |   |
| Beginning cash and cash equivalents                  |   |         | 32,457,323  |   |         |   | 25,799,735  |         |   |   | 26,312,757     |   |   |   | — |   |
| Ending cash and cash equivalents                     |   |         | 28,718,815  |   |         |   | 32,457,323  |         |   |   | 25,799,735     |   |   |   | 28,718,815 |   |
| Non-cash financing and investing activities:         |   |         |        |   |         |   |        |         |   |   |           |   |   |   |   |   |
| Common shares issued for properties                  |   |         | —     |   |         |   | 452,250     |         |   |   | —        |   |   |   | 1,164,750 |   |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

| 1. | Nature of operations |
|----|----------------------|

| 2. | Significant accounting policies |
|----|---------------------------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|   | ● | Cash and cash equivalents are classified as “held for trading” and are measured at fair value at the end of each period with any resulting gains and losses recognized in operations. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Short term investments are classified as “held-to-maturity” and carried at cost plus accrued interest using the effective interest rate method, with interest income and exchange gains and losses included in operations. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Marketable securities are classified as “held for trading” and are measured at fair value at the end of each period with any resulting gains and losses recognized in operations. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Amounts receivable, bonding and other deposits are classified as “Loans and receivables” and are recorded at amortized cost.  Interest income is recorded using the effective interest rate method and is included in income for the period. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Accounts payable and accrued liabilities are classified as “Other financial liabilities” and are measured at amortized cost. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

| 3. | Cash and cash equivalents and short-term investments |
|----|------------------------------------------------------|

|                               |   | As at        |       |   | As at        |   |
|------------------------------------|--------|--------------|------------|--------|--------------|--------|
|                               |   | December 31, |       |   | December 31, |   |
|                               |   | 2010         |       |   | 2009         |   |
|                               |   | $            |       |   | $            |   |
|                               |   |         |       |   |         |   |   |   |
| Cash on deposit at banks           |   |         | 265,168    |   |         |   | 308,918 |   |
| Guaranteed investment certificates |   |         | 287,500    |   |         |   | 287,500 |   |
| Money market funds                 |   |         | 28,166,147 |   |         |   | 25,564,505 |   |
| Certificates of deposit            |   |         | —    |   |         |   | 6,296,400 |   |
|                               |   |         |       |   |         |   |   |   |
|                               |   |         | 28,718,815 |   |         |   | 32,457,323 |   |

|                               |   | As at        |      |   | As at        |   |
|------------------------------------|--------|--------------|-----------|--------|--------------|--------|
|                               |   | December 31, |      |   | December 31, |   |
|                               |   | 2010         |      |   | 2009         |   |
|                               |   | $            |      |   | $            |   |
|                               |   |         |      |   |         |   |   |   |
| Guaranteed investment certificates |   |         | 5,122,289 |   |         |   | 2,342,637 |   |
| Certificates of deposit            |   |         | —   |   |         |   | 8,589,464 |   |
|                               |   |         |      |   |         |   |   |   |
|                               |   |         | 5,122,289 |   |         |   | 10,932,101 |   |

| 4. | Bonding and other deposits |
|----|----------------------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)               |

| 5. | Mineral properties |
|----|--------------------|

|                                         |   | USA          |       |   | Canada     |   |       | Total      |   |
|----------------------------------------------|--------|--------------|------------|--------|------------|--------|------------|------------|--------|
|                                         |   |         |       |   |       |   |       |       |   |   |   |   |
|                                         |   | Lost Creek/  |       |   | Other US   |   |       | Canadian   |   |   |   |   |
|                                         |   | Lost Soldier |       |   | Properties |   |       | Properties |   |   |   |   |
|                                         |   | $            |       |   | $          |   |       | $          |   |   | $ |   |
|                                         |   |         |       |   |       |   |       |       |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                   |   |         | 24,316,716 |   |       |   | 6,874,945  |       |   |   | 617,160 |   |   |   | 31,808,821 |   |
|                                         |   |         |       |   |       |   |       |       |   |   |   |   |   |   |   |   |
| Acquisition costs                            |   |         | —    |   |       |   | 402,134    |       |   |   | — |   |   |   | 402,134 |   |
| Staking and claim costs                      |   |         | 7,940      |   |       |   | 419,322    |       |   |   | (29,932 | ) |   |   | 397,330 |   |
| Property write-offs                          |   |         | —    |   |       |   | (38,936    | )          |   |   | (63,561 | ) |   |   | (102,497 | ) |
| Assets sold                                  |   |         | —    |   |       |   | (3,375     | )          |   |   | — |   |   |   | (3,375 | ) |
| Property reclassified as investment (note 7) |   |         | —    |   |       |   | (2,769,117 | )          |   |   | — |   |   |   | (2,769,117 | ) |
|                                         |   |         |       |   |       |   |       |       |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                   |   |         | 24,324,656 |   |       |   | 4,884,973  |       |   |   | 523,667 |   |   |   | 29,733,296 |   |
|                                         |   |         |       |   |       |   |       |       |   |   |   |   |   |   |   |   |
| Acquisition costs                            |   |         | —    |   |       |   | 232,859    |       |   |   | — |   |   |   | 232,859 |   |
| Labor, outside services and other costs      |   |         | —    |   |       |   | 527,881    |       |   |   | — |   |   |   | 527,881 |   |
| Property write-offs                          |   |         | —    |   |       |   | (381,252   | )          |   |   | — |   |   |   | (381,252 | ) |
|                                         |   |         |       |   |       |   |       |       |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                   |   |         | 24,324,656 |   |       |   | 5,264,461  |       |   |   | 523,667 |   |   |   | 30,112,784 |   |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)               |

| 6. | Capital assets |
|----|----------------|

|                                           |   | December 31, 2010 |      |   | December 31, 2009 |   |
|------------------------------------------------|--------|-------------------|-----------|--------|-------------------|--------|
|                                           |   |              |      |   | Accumulated       |   |   | Net Book |   |   |   |   |   | Accumulated |   |   | Net Book |   |
|                                           |   | Cost              |      |   | Amortization      |   |   | Value |   |   | Cost |   |   | Amortization |   |   | Value |   |
|                                           |   | $                 |      |   | $                 |   |   | $ |   |   | $ |   |   | $ |   |   | $ |   |
|                                           |   |              |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rolling stock                                  |   |              | 1,922,483 |   |              |   | 1,129,598 |   |   |   | 792,885 |   |   |   | 1,646,607 |   |   |   | 792,538 |   |   |   | 854,069 |   |
| Machinery and equipment                        |   |              | 296,233   |   |              |   | 212,475 |   |   |   | 83,758 |   |   |   | 277,552 |   |   |   | 160,212 |   |   |   | 117,340 |   |
| Furniture, fixtures and leasehold improvements |   |              | 74,992    |   |              |   | 37,958 |   |   |   | 37,034 |   |   |   | 72,687 |   |   |   | 29,167 |   |   |   | 43,520 |   |
| IT                                             |   |              | 557,998   |   |              |   | 358,810 |   |   |   | 199,188 |   |   |   | 523,997 |   |   |   | 246,211 |   |   |   | 277,786 |   |
| Pre-construction costs                         |   |              | 2,096,762 |   |              |   | — |   |   |   | 2,096,762 |   |   |   | 1,446,406 |   |   |   | — |   |   |   | 1,446,406 |   |
|                                           |   |              |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |              | 4,948,468 |   |              |   | 1,738,841 |   |   |   | 3,209,627 |   |   |   | 3,967,249 |   |   |   | 1,228,128 |   |   |   | 2,739,121 |   |

| 7. | Equity investments |
|----|--------------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)               |

| 8. | Accounts payable and accrued liabilities |
|----|------------------------------------------|

|                          |   | As at             |    |   | As at             |   |
|-------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                          |   | December 31, 2010 |    |   | December 31, 2009 |   |
|                          |   |              |    |   |              |   |
|  Accounts payable        |   |              | 580,145 |   |              |   | 758,639 |   |
|  Vacation pay payable    |   |              | 182,404 |   |              |   | 187,840 |   |
|  Payroll and other taxes |   |              | 68,748  |   |              |   | 100,484 |   |
|                          |   |              |    |   |              |   |   |   |
|                          |   |              | 831,297 |   |              |   | 1,046,963 |   |

| 9. | Asset retirement obligation |
|----|-----------------------------|

| 10. | Shareholders’ equity and capital stock |
|-----|----------------------------------------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|                                              |   | Capital Stock |        |   |   |   |        |     |   |   | Contributed |   |   | Accumulated |       |
|---------------------------------------------------|--------|---------------|-------------|--------|--------|--------|-------------|----------|--------|--------|-------------|--------|--------|-------------|------------|
|                                              |   | Shares        |        |   | Amount |   |        | Warrants |   |   | Surplus     |   |   | Deficit     |       |   | Equity |   |
|                                              |   | #             |        |   | $      |   |        | $        |   |   | $           |   |   | $           |       |   | $ |   |
| Balance, December 31, 2007                        |   |          | 92,171,607  |   |   |   | 141,623,534 |     |   |   | —     |   |   |        | 8,202,595  |   |   |   | (40,987,103 | ) |   |   | 108,839,026 |   |
|                                              |   |          |        |   |   |   |        |     |   |   |        |   |   |        |       |   |   |   |   |   |   |   |   |   |
| Common shares issued for cash, net of issue costs |   |          | 1,000,000   |   |   |   | 2,634,686   |     |   |   | —     |   |   |        | —    |   |   |   | — |   |   |   | 2,634,686 |   |
| Exercise of stock options                         |   |          | 72,000      |   |   |   | 138,240     |     |   |   | —     |   |   |        | (48,240    | ) |   |   | — |   |   |   | 90,000 |   |
| Non-cash stock compensation                       |   |          | —     |   |   |   | —     |     |   |   | —     |   |   |        | —    |   |   |   | — |   |   |   | 4,567,204 |   |
| Net loss and comprehensive loss                   |   |          | —     |   |   |   | —     |     |   |   | —     |   |   |        | —    |   |   |   | (17,853,585 | ) |   |   | (17,853,585 | ) |
|                                              |   |          |        |   |   |   |        |     |   |   |        |   |   |        |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                        |   |          | 93,243,607  |   |   |   | 144,396,460 |     |   |   |        |   |   |        | 12,721,559 |   |   |   | (58,840,688 | ) |   |   | 98,277,331 |   |
|                                              |   |          |        |   |   |   |        |     |   |   |        |   |   |        |       |   |   |   |   |   |   |   |   |   |
| Common shares issued for properties               |   |          | 695,000     |   |   |   | 452,250     |     |   |   | —     |   |   |        | —    |   |   |   | — |   |   |   | 452,250 |   |
| Exercise of stock options                         |   |          | 1,961       |   |   |   | 2,127       |     |   |   | —     |   |   |        | (734       | ) |   |   | — |   |   |   | 1,393 |   |
| Tax effect of renunciation of flow-through shares |   |          | —     |   |   |   | (797,500    | )        |   |   | —     |   |   |        | —    |   |   |   | — |   |   |   | (797,500 | ) |
| Non-cash stock compensation                       |   |          | —     |   |   |   | —     |     |   |   | —     |   |   |        | —    |   |   |   | — |   |   |   | 950,874 |   |
| Net loss and comprehensive loss                   |   |          | —     |   |   |   | —     |     |   |   | —     |   |   |        | —    |   |   |   | (18,732,818 | ) |   |   | (18,732,818 | ) |
|                                              |   |          |        |   |   |   |        |     |   |   |        |   |   |        |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                        |   |          | 93,940,568  |   |   |   | 144,053,337 |     |   |   | —     |   |   |        | 13,671,699 |   |   |   | (77,573,506 | ) |   |   | 80,151,530 |   |
|                                              |   |          |        |   |   |   |        |     |   |   |        |   |   |        |       |   |   |   |   |   |   |   |   |   |
| Exercise of stock options                         |   |          | 3,057,444   |   |   |   | 5,400,941   |     |   |   | —     |   |   |        | (1,881,685 | ) |   |   | — |   |   |   | 3,519,256 |   |
| Common shares issued for cash, net of issue costs |   |          | 5,000,000   |   |   |   | 4,700,151   |     |   |   | —     |   |   |        | —    |   |   |   | — |   |   |   | 4,700,151 |   |
| Non-cash warrant costs                            |   |          | —     |   |   |   | —     |     |   |   | 44,271      |   |   |        | —    |   |   |   | — |   |   |   | 44,271 |   |
| Non-cash stock compensation                       |   |          | —     |   |   |   | —     |     |   |   | —     |   |   |        | 658,491    |   |   |   | — |   |   |   | 658,491 |   |
| Net loss and comprehensive loss                   |   |          | —     |   |   |   | —     |     |   |   | —     |   |   |        | —    |   |   |   | (16,418,088 | ) |   |   | (16,418,088 | ) |
|                                              |   |          |        |   |   |   |        |     |   |   |        |   |   |        |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                        |   |          | 101,998,012 |   |   |   | 154,154,429 |     |   |   | 44,271      |   |   |        | 12,448,505 |   |   |   | (93,991,594 | ) |   |   | 72,655,611 |   |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|                           |   |    |       |   |           |   |
|--------------------------------|--------|---------|------------|--------|----------------|--------|
|                           |   |    |       |   | Weighted       |   |
|                           |   |    |       |   | average        |   |
|                           |   | Options |       |   | exercise price |   |
|                           |   | #       |       |   | $              |   |
| Outstanding, December 31, 2007 |   |    | 8,010,700  |   |           |   | 2.89 |   |
|                           |   |    |       |   |           |   |   |   |
| Granted                        |   |    | 1,075,000  |   |           |   | 1.66 |   |
| Exercised                      |   |    | (72,000    | )      |           |   | 1.25 |   |
| Forfeited                      |   |    | (295,000   | )      |           |   | 2.50 |   |
| Voluntarily returned           |   |    | (2,490,000 | )      |           |   | 4.85 |   |
|                           |   |    |       |   |           |   |   |   |
| Outstanding, December 31, 2008 |   |    | 6,228,700  |   |           |   | 1.46 |   |
|                           |   |    |       |   |           |   |   |   |
| Granted                        |   |    | 2,204,264  |   |           |   | 0.80 |   |
| Exercised                      |   |    | (1,961     | )      |           |   | 0.71 |   |
| Forfeited                      |   |    | (58,351    | )      |           |   | 2.07 |   |
| Expired                        |   |    | (11,200    | )      |           |   | 1.65 |   |
|                           |   |    |       |   |           |   |   |   |
| Outstanding, December 31, 2009 |   |    | 8,361,452  |   |           |   | 1.65 |   |
| Granted                        |   |    | 798,537    |   |           |   | 0.81 |   |
| Exercised                      |   |    | (3,057,444 | )      |           |   | 1.15 |   |
| Forfeited                      |   |    | (75,470    | )      |           |   | 0.84 |   |
| Expired                        |   |    | (361,507   | )      |           |   | 2.06 |   |
|                           |   |    |       |   |           |   |   |   |
| Outstanding, December 31, 2010 |   |    | 5,665,568  |   |           |   | 1.79 |   |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|     |   |   |       |                |      |         |                |   |      |      |   |
|----------|--------|--------|------------|---------------------|-----------|--------------|---------------------|--------|-----------|-----------|--------|
|     |   |   |       | Options outstanding |      |         | Options exercisable |   |      |      |   |
|     |   |   |       |                |      |         | Weighted-           |   |      |      |   |   |   |   |   | Weighted- |   |   |   |   |   |   |   |
|     |   |   |       |                |      |         | average             |   |      | Aggregate |   |   |   |   |   | average |   |   | Aggregate |   |   |   |   |
| Exercise |   |   |       |                |      | remaining    |                |   | Intrinsic |      |   |   |   |   | remaining |   |   | Intrinsic |   |   |   |   |
| price    |   |   | Number     |                |      | contractual  |                |   | Value     |      |   | Number |   |   | contractual |   |   | Value |   |   |   |   |
| $        |   |   | of options |                |      | life (years) |                |   | $         |      |   | of options |   |   | life (years) |   |   | $ |   |   | Expiry |   |
|     |   |   |       |                |      |         |                |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     | 2.35   |   |       |                | 1,400,000 |         |                |   | 0.3       |      |   |   | 882,000 |   |   |   | 1,400,000 |   |   |   | 0.3 |   |   |   | 882,000 |   |   | April 21, 2011 |   |
|     | 2.75   |   |       |                | 320,000   |         |                |   | 0.7       |      |   |   | 73,600 |   |   |   | 320,000 |   |   |   | 0.7 |   |   |   | 73,600 |   |   | September 26, 2011 |   |
|     | 4.75   |   |       |                | 30,000    |         |                |   | 1.4       |      |   |   | — |   |   |   | 30,000 |   |   |   | 1.4 |   |   |   | — |   |   | May 15, 2012 |   |
|     | 3.67   |   |       |                | 200,000   |         |                |   | 1.5       |      |   |   | — |   |   |   | 200,000 |   |   |   | 1.5 |   |   |   | — |   |   | July 15, 2012 |   |
|     | 3.00   |   |       |                | 437,500   |         |                |   | 1.6       |      |   |   | — |   |   |   | 437,500 |   |   |   | 1.6 |   |   |   | — |   |   | August 9, 2012 |   |
|     | 3.16   |   |       |                | 50,000    |         |                |   | 1.7       |      |   |   | — |   |   |   | 50,000 |   |   |   | 1.7 |   |   |   | — |   |   | September 17, 2012 |   |
|     | 2.98   |   |       |                | 50,000    |         |                |   | 1.8       |      |   |   | — |   |   |   | 50,000 |   |   |   | 1.8 |   |   |   | — |   |   | October 5, 2012 |   |
|     | 4.07   |   |       |                | 30,000    |         |                |   | 1.9       |      |   |   | — |   |   |   | 30,000 |   |   |   | 1.9 |   |   |   | — |   |   | November 7, 2012 |   |
|     | 1.65   |   |       |                | 860,000   |         |                |   | 2.4       |      |   |   | 1,143,800 |   |   |   | 860,000 |   |   |   | 2.4 |   |   |   | 1,143,800 |   |   | May 8, 2013 |   |
|     | 1.72   |   |       |                | 25,000    |         |                |   | 2.6       |      |   |   | 31,500 |   |   |   | 25,000 |   |   |   | 2.6 |   |   |   | 31,500 |   |   | August 6, 2013 |   |
|     | 0.71   |   |       |                | 534,019   |         |                |   | 3.1       |      |   |   | 1,212,223 |   |   |   | 534,019 |   |   |   | 3.1 |   |   |   | 1,212,223 |   |   | February 9, 2014 |   |
|     | 0.90   |   |       |                | 1,041,928 |         |                |   | 3.7       |      |   |   | 2,167,210 |   |   |   | 781,273 |   |   |   | 3.7 |   |   |   | 1,625,048 |   |   | September 2, 2014 |   |
|     | 0.81   |   |       |                | 687,121   |         |                |   | 4.2       |      |   |   | 1,491,053 |   |   |   | 356,050 |   |   |   | 4.2 |   |   |   | 772,629 |   |   | March 5, 2015 |   |
|     |   |   |       |                |      |         |                |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     | 1.79   |   |       |                | 5,665,568 |         |                |   | 2.2       |      |   |   | 7,001,386 |   |   |   | 5,073,842 |   |   |   | 2.0 |   |   |   | 5,740,800 |   |   |   |   |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|                          |   |        |   |   |        |   |   |        |   |
|-------------------------------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|
|                          |   | 2010        |   |   | 2009        |   |   | 2008        |   |
|                          |   |        |   |   |        |   |   |        |   |
| Expected warrant life (years) |   | 2.75        |   |   | —     |   |   | —     |   |
| Expected option life (years)  |   | 3.12 - 3.14 |   |   | 2.85 - 3.01 |   |   | 4.0         |   |
| Expected volatility           |   | 81-82%      |   |   | 82 - 83%    |   |   | 65%         |   |
| Risk-free interest rate       |   | 1.7-1.9%    |   |   | 1.4 - 1.9%  |   |   | 3.0% - 3.4% |   |
| Forfeiture rate               |   | 4.3%        |   |   | 4.4 - 4.6%  |   |   | —     |   |
| Expected dividend rate        |   | 0%          |   |   | 0%          |   |   | 0%          |   |

| 11. | Income taxes |
|-----|--------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|                                                     |   | Year         |        |   | Year         |   |        | Year         |   |
|----------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|-------------|--------------|--------|
|                                                     |   | ended        |        |   | ended        |   |        | ended        |   |
|                                                     |   | December 31, |        |   | December 31, |   |        | December 31, |   |
|                                                     |   | 2010         |        |   | 2009         |   |        | 2008         |   |
|                                                     |   | $            |        |   | $            |   |        | $            |   |
|                                                     |   |         |        |   |         |   |        |         |   |   |   |   |
| Loss before income taxes                                 |   |         | (16,418,088 | )      |         |   | (19,101,263 | )            |   |   | (17,853,585 | ) |
|                                                     |   |         |        |   |         |   |        |         |   |   |   |   |
| Statutory rate                                           |   |         | 31.0        | %      |         |   | 33.0        | %            |   |   | 33.5 | % |
| Expected recovery of income tax                          |   |         | (5,089,465  | )      |         |   | (6,303,349  | )            |   |   | (5,980,951 | ) |
| Effect of foreign tax rate differences                   |   |         | (885,716    | )      |         |   | (604,323    | )            |   |   | (731,366 | ) |
| Non-deductable amounts                                   |   |         | 531,119     |   |         |   | 1,222,519   |         |   |   | 1,530,012 |   |
| Effect of changes in future tax rates                    |   |         | 124,105     |   |         |   | 766,407     |         |   |   | (43,662 | ) |
| Effect of change in foreign exchange rates               |   |         | 973,249     |   |         |   | 2,672,559   |         |   |   | (3,370,258 | ) |
| ISL change in basis                                      |   |         | —     |   |         |   | 429,055     |         |   |   | — |   |
| Effect of  renouncement of flow through shares |   |         | —     |   |         |   | (797,500    | )            |   |   | — |   |
| Effect of non-deductible exploration expenditures        |   |         | —     |   |         |   | 280,040     |         |   |   | — |   |
| Effect of 2009 tax provision to tax return true-up items |   |         | 2,103       |   |         |   | —     |         |   |   | — |   |
| Change in valuation allowance                            |   |         | 4,344,605   |   |         |   | 1,966,147   |         |   |   | 8,596,225 |   |
|                                                     |   |         |        |   |         |   |        |         |   |   |   |   |
| Recovery of future income taxes                          |   |         | —     |   |         |   | (368,445    | )            |   |   | — |   |

|                                                 |   | Year         |        |   | Year         |    |        | Year         |   |
|------------------------------------------------------|--------|--------------|-------------|--------|--------------|---------|-------------|--------------|--------|
|                                                 |   | ended        |        |   | ended        |    |        | ended        |   |
|                                                 |   | December 31, |        |   | December 31, |    |        | December 31, |   |
|                                                 |   | 2010         |        |   | 2009         |    |        | 2008         |   |
|                                                 |   | $            |        |   | $            |    |        | $            |   |
|                                                 |   |         |        |   |         |    |        |         |   |   |   |   |
| Future income tax assets                             |   |         |        |   |         |    |        |         |   |   |   |   |
| Net tax on deferred expenses                         |   |         | 12,586,000  |   |         |    | 12,406,000  |         |   |   | 18,104,000 |   |
| Net operating loss carry forwards                    |   |         | 16,688,000  |   |         |    | 12,521,000  |         |   |   | 2,389,000 |   |
| Less:  valuation allowance                 |   |         | (29,274,000 | )      |         |    | (24,927,000 | )            |   |   | (20,493,000 | ) |
|                                                 |   |         |        |   |         |    |        |         |   |   |   |   |
|                                                 |   |         | —     |   |         |    | —     |         |   |   | — |   |
|                                                 |   |         |        |   |         |    |        |         |   |   |   |   |
| Future income tax liabilities                        |   |         |        |   |         |    |        |         |   |   |   |   |
| Asset basis differences                              |   |         | —     |   |         |    | —     |         |   |   | (478,000 | ) |
|                                                 |   |         |        |   |         |    |        |         |   |   |   |   |
| Net deferred tax asset (future income tax liability) |   | —      |        |   |         | — |        |         |   | (478,000 | ) |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

| 12. | Financial instruments |
|-----|-----------------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|                                   |   | Fair Value at December 31, 2010 |       |
|----------------------------------------|--------|---------------------------------|------------|
|                                   |   | Total                           |       |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|                                   |   | $                               |       |   | $ |   |   | $ |   |   | $ |   |
| Assets:                                |   |                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market investments (1)           |   |                            | 28,166,147 |   |   |   | 28,166,147 |   |   |   | — |   |   |   | — |   |
| Guaranteed investment certificates (2) |   |                            | 5,409,789  |   |   |   | 3,522,289 |   |   |   | 1,887,500 |   |   |   | — |   |
| Marketable equity securities (3)       |   |                            | 93,375     |   |   |   | 93,375 |   |   |   | — |   |   |   | — |   |
|                                   |   |                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                            | 33,669,311 |   |   |   | 31,781,811 |   |   |   | 1,887,500 |   |   |   | — |   |

| (1) | Included inCash and cash equivalents in the Company’s consolidated balance sheets. |
|-----|------------------------------------------------------------------------------------------|

| (2) | Included inCash and equivalents or Short-term investments in the Company’s consolidated balance sheets depending on the original term of the Certificate. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Included in Marketable securities in the Company’s consolidated balance sheets. |
|-----|---------------------------------------------------------------------------------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

| 13. | Segmented information |
|-----|-----------------------|

|                       |   | December 31, 2010 |       |
|----------------------------|--------|-------------------|------------|
|                       |   | United States     |       |   | Canada |   |   | Total |   |
|                       |   | $                 |       |   | $ |   |   | $ |   |
|                       |   |              |       |   |   |   |   |   |   |   |   |   |
| Bonding and other deposits |   |              | 3,845,050  |   |   |   | — |   |   |   | 3,845,050 |   |
| Mineral properties         |   |              | 29,589,117 |   |   |   | 523,667 |   |   |   | 30,112,784 |   |
| Capital assets             |   |              | 3,209,627  |   |   |   | — |   |   |   | 3,209,627 |   |
| Investments                |   |              | 2,769,117  |   |   |   | — |   |   |   | 2,769,117 |   |
|                       |   |              |       |   |   |   |   |   |   |   |   |   |
|                       |   |              | 39,412,911 |   |   |   | 523,667 |   |   |   | 39,936,578 |   |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|                           |   | December 31, 2009 |       |
|--------------------------------|--------|-------------------|------------|
|                           |   | United States     |       |   | Canada |   |   | Total |   |
|                           |   | $                 |       |   | $ |   |   | $ |   |
|                           |   |              |       |   |   |   |   |   |   |   |   |   |
| Bonding and other deposits     |   |              | 2,920,835  |   |   |   | — |   |   |   | 2,920,835 |   |
| Mineral exploration properties |   |              | 29,209,629 |   |   |   | 523,667 |   |   |   | 29,733,296 |   |
| Capital assets                 |   |              | 2,736,940  |   |   |   | 2,181 |   |   |   | 2,739,121 |   |
| Investments                    |   |              | 2,769,117  |   |   |   | — |   |   |   | 2,769,117 |   |
|                           |   |              |       |   |   |   |   |   |   |   |   |   |
|                           |   |              | 37,636,521 |   |   |   | 525,848 |   |   |   | 38,162,369 |   |

| 14. | Commitments |
|-----|-------------|

| Year ended December 31,       |   |   | Amount |    |
|-------------------------------|--------|--------|--------|---------|
|                          |   |   | $      |    |
| 2011                          |   |   |   | 156,074 |   |
| 2012                          |   |   |   | 96,428  |   |
| 2013                          |   |   |   | — |   |
|  2014 and thereafter     |   |   |   | — |   |
|                          |   |   |   |    |   |
|  Year ended December 31, |   |   |   | 252,502 |   |

| 15. | Capital structure |
|-----|-------------------|

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

| 16. | Differences between Canadian and United States generally accepted accounting principles |
|-----|-----------------------------------------------------------------------------------------|

|                                                           |   | As at        |       |   | As at        |       |
|----------------------------------------------------------------|--------|--------------|------------|--------|--------------|------------|
|                                                           |   | December 31, |       |   | December 31, |       |
|                                                           |   | 2010         |       |   | 2009         |       |
|                                                           |   | $            |       |   | $            |       |
|                                                           |   |         |       |   |         |       |   |   |
| Total assets                                                   |   |         |       |   |         |       |   |   |
|                                                           |   |         |       |   |         |       |   |   |
| Total assets under Canadian GAAP                               |   |         | 73,990,009 |   |         |       | 81,702,205 |   |
| Adjustments made under US GAAP:                                |   |         |       |   |         |       |   |   |
| Adjustment for New Frontiers settlement (a)                    |   |         | 2,016,156  |   |         |       | 2,016,156 |   |
|                                                           |   |         |       |   |         |       |   |   |
| Total assets under  US GAAP                          |   |         | 76,006,165 |   |         |       | 83,718,361 |   |
|                                                           |   |         |       |   |         |       |   |   |
| Total liabilities and shareholders’ equity               |   |         |       |   |         |       |   |   |
|                                                           |   |         |       |   |         |       |   |   |
| Total liabilities under Canadian GAAP                          |   |         | 1,334,398  |   |         |       | 1,550,675 |   |
| Adjustments made under US GAAP:                                |   |         |       |   |         |       |   |   |
|                                                           |   |         |       |   |         |       |   |   |
| Total liabilities under US GAAP                                |   |         | 1,334,398  |   |         |       | 1,550,675 |   |
|                                                           |   |         |       |   |         |       |   |   |
| Total shareholders’ equity under Canadian GAAP           |   |         | 72,655,611 |   |         |       | 80,151,530 |   |
| Adjustments made under US GAAP:                                |   |         |       |   |         |       |   |   |
| Prior year income adjustments                                  |   |         |       |   |         |       |   |   |
| Gain on settlement of New Frontiers obligation (a)             |   |         | 2,016,156  |   |         |       | 2,016,156 |   |
|                                                           |   |         |       |   |         |       |   |   |
| Total shareholders’ equity under US GAAP                 |   |         | 74,671,767 |   |         |       | 82,167,686 |   |
|                                                           |   |         |       |   |         |       |   |   |
| Total liabilities and shareholders’ equity under US GAAP |   | 76,006,165   |       |   |         | 83,718,361 |   |

|                                                             |   |         |        |   |         |   |        |         |   |   | Cumulative   |   |
|------------------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|-------------|--------------|--------|--------|--------------|--------|
|                                                             |   |         |        |   |         |   |        |         |   |   | from         |   |
|                                                             |   | Year         |        |   | Year         |   |        | Year         |   |   | March-04     |   |
|                                                             |   | ended        |        |   | ended        |   |        | ended        |   |   | Through      |
|                                                             |   | December 31, |        |   | December 31, |   |        | December 31, |   |   | December 31, |   |
|                                                             |   | 2010         |        |   | 2009         |   |        | 2008         |   |   | 2010         |   |
|                                                             |   | $            |        |   | $            |   |        | $            |   |   | $            |   |
| Net loss                                                         |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
|                                                             |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Net loss under Canadian GAAP                                     |   |         | (16,418,088 | )      |         |   | (18,732,818 | )            |   |   | (17,853,585  | )      |   |   | (93,991,594 | ) |
| Adjustments made under US GAAP:                                  |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Gain on settlement of New Frontiers obligation (a)               |   |         | —     |   |         |   | —     |         |   |   | —      |   |   |   | 2,016,156 |   |
| Deferred tax adjustment ( c)                                     |   |         | —     |   |         |   | (478,000    | )            |   |   | —      |   |   |   | — |   |
| Income tax adjustment on renouncement of flow through shares (b) |   |         | —     |   |         |   | 32,500      |         |   |   | —      |   |   |   | (1,093,040 | ) |
|                                                             |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Net loss under US GAAP, being comprehensive loss                 |   |         | (16,418,088 | )      |         |   | (19,178,318 | )            |   |   | (17,853,585  | )      |   |   | (93,068,478 | ) |
|                                                             |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Basic and diluted loss per share under US GAAP                   |   |         | (0.17       | )      |         |   | (0.20       | )            |   |   | (0.19        | )      |   |   |   |   |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

|                                                                       |   |         |        |   |         |   |        |         |   |   | Cumulative   |   |
|----------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|-------------|--------------|--------|--------|--------------|--------|
|                                                                       |   |         |        |   |         |   |        |         |   |   | from         |   |
|                                                                       |   | Year         |        |   | Year         |   |        | Year         |   |   | March-04     |   |
|                                                                       |   | ended        |        |   | ended        |   |        | ended        |   |   | Through      |   |
|                                                                       |   | December 31, |        |   | December 31, |   |        | December 31, |   |   | December 31, |   |
|                                                                       |   | 2010         |        |   | 2009         |   |        | 2008         |   |   | 2010         |   |
|                                                                       |   | $            |        |   | $            |   |        | $            |   |   | $            |   |
| Operating activities                                                       |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Cash flows used in operating activities under Canadian & US GAAP       |   |         | (13,475,719 | )      |         |   | (16,963,300 | )            |   |   | (16,537,329  | )      |   |   | (74,598,963 | ) |
|                                                                       |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Investing activities                                                       |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Cash flows provided by (used in ) investing activities under Canadian GAAP |   |         | 2,815,075   |   |         |   | 26,299,819  |         |   |   | 9,892,468    |   |   |   | (23,048,353 | ) |
| Adjustments made under US GAAP:                                            |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Flow-through cash categorized as restricted cash (b)                       |   |         | —     |   |         |   | 848,607     |         |   |   | (848,607     | )      |   |   | — |   |
|                                                                       |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Cash flows used in investing activities under US GAAP                      |   |         | 2,815,075   |   |         |   | 27,148,426  |         |   |   | 9,043,861    |   |   |   | (23,048,353 | ) |
|                                                                       |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Financing activities                                                       |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Cash flows used in operating activities under Canadian & US GAAP       |   |         | 8,239,407   |   |         |   | 1,393       |         |   |   | 2,724,686    |   |   |   | 129,342,634 |   |
|                                                                       |   |         |        |   |         |   |        |         |   |   |         |   |   |   |   |   |
| Ending cash and cash equivalents under US GAAP                             |   |         | 28,718,815  |   |         |   | 32,457,323  |         |   |   | 24,951,128   |   |   |   | 28,718,815 |   |

----

| Ur-Energy Inc.                                     |
|----------------------------------------------------|
| (an Exploration Stage Company)                |
| Notes to Audited Consolidated Financial Statements |
| December 31, 2010                                  |
|                                               |
| (expressed in Canadian dollars)                    |

----