Ur-Energy Inc. Announces Positive Geophysical Results Thelon Basin Properties, NWT.

DENVER -- Ur-Energy Inc. (TSX:URE) announced today results from Airborne Magnetic and MEGATEM surveys carried out by Fugro Airborne Surveys (Fugro) over the Screech, Gravel Hill, and Eyeberry properties in the southwestern Thelon Basin, Northwest Territories. The surveys consisted of deep-penetrating, high-resolution EM and magnetic components utilizing Fugro's MEGATEM II proprietary system. The surveys covered the Screech and Gravel Hill properties and the southern portion of the Eyeberry property. The surveys were flown in July 2005. Interpretation was not available at the time of filing of the Company's prospectus, dated November 17, 2005.

URE acquired three claim groups totalling 67,223.14 ha along the southwestern limb of the Thelon Basin in late 2004 to explore for Athabasca-style unconformity uranium deposits. The Thelon Basin is host to COGEMA Resources Inc. Kiggavik uranium deposits which together, contain significant uranium resources (greater than 110 million pounds of U308 in mineralization grading from 0.28% to 0.44% U308 ref: INAC Presentation, Nov.15, 2005). There are also a number of important prospects and radioactive boulder trains in other areas of the basin. Compared to the Athabasca Basin the Thelon is relatively under-explored and has not been subject to recent advances in airborne technology, structural interpretation, and developments in the importance of clay mineralogy.

The objectives of the airborne surveys included: (i) identification of sub-Thelon Formation basement conductors; (ii) identification of basin sandstone conductive zones indicative of clay alteration and; (iii) magnetic mapping of basement structure and stratigraphic contacts. The data generated from the surveys is very positive with identification of exploration indicators and structural traps for buried uranium mineralization.

The highest priority exploration target occurs on the Screech Property and is interpreted to be a northeast-southwest trending conductive zone. This zone is continuous with basement EM conductors that were outlined by past exploration on the adjacent Boomerang Lake Property now held by Uravan Minerals Inc. The conductors are indicative of graphitic horizons within a broad northeast striking formation of Paleoproterozoic basement metapelites. This graphitic horizon hosts the Boomerang Lake uranium-gold prospect, located 10 kilometres to the southwest of the Screech Property and continues onto URE's Screech claims.

A broad, diffuse and deep-sourced conductive zone occurs over the Screech Lake area in the centre of the property and over a second area to the southeast of Screech Lake. These resistivity lows are interpreted by URE consultants to be reflective of clay mineral alteration deep in the Thelon sandstones but above the unconformity contact. Such alteration is a characteristic feature of unconformity-associated uranium deposits in the Athabasca Basin and a positive indicator of past hydrothermal activity.This interpretation is supported by the presence of highly anomalous surface radon measurements. Further work is on-going using a Denver based geophysical consulting firm to conduct specialized interpretation of the MEGATEM data.

On the other properties, a strong bedrock conductor occurs in the southwestern part of the Eyeberry claim group. This is in an area covered by Thelon sandstones near the flank of a north-south trending basement horst of Paleoproterozoic Hurwitz Group quartzites. URE consultants interpret a northeast-trending metasedimentary belt underlying the sandstones in this part of the Eyeberry Property. Ground follow-up is highly recommended.

Four (4) small conductive zones are indicated on the Gravel Hill Property near the southern end of Gravel Hill Lake. The anomalies are located on a lobe of Thelon sandstone overlying older Paleoproterozoic and Archean basement rocks. A structural interpretation of the Fugro results by URE consultants shows that the uranium showings found by Urangeselshaft in 1978-79 occur at the intersections of northeasterly structures with older east-west faulting. Prospecting of radioactive occurrences and radon anomalies will be undertaken in 2006 field season.

Ground Geophysical Results - Screech Lake Property

URE also announces results from recently completed ground geophysical surveys covering a part of the Screech Lake Property adjacent to and underlying Screech Lake. Aurora Geosciences Ltd. of Yellowknife, NT conducted the time domain electromagnetic (PROTEM), magnetic, and VLF-EM surveys. Interpretation and results of these surveys were received by Ur-Energy in late 2005.

The PROTEM survey outlined a thick "blanket" zone displaying the geophysical characteristics of weathered conductive regolith at depths of 500 to 700 metres below surface over the entire surveyed area. A strong magnetic high underlies much of Screech Lake and surrounding area. Geophysical parameters and source modeling suggest the magnetic anomaly represents a granitic intrusive feature. Magnetics also indicate linear northwest and east-west trending zones underlying the Screech Lake area which likely represent cross-faults or fracture systems, a very favourable structural setting for Athabasca-style uranium mineralization.

An 800 metre long conductor and coincident zone of low resistivity were outlined just northwest of Screech Lake. The zone strikes southwest and coincides with a discontinuity in basement topography. This interpreted late fault appears to have a calculated vertical displacement of 40 to 60 metres which affects both basement rocks and the overlying Thelon sandstones.

A broad zone of very low resisitivity is situated in the western half of Screech Lake. This zone is perched 100 metres above the interpreted Thelon sandstone/basement unconformity and plunges shallowly southwest, merging with the basement regolith just southwest of Screech Lake. These two zones of low resistivity, occurring above the unconformity within the sandstones, are interpreted to result from extensive, locally intense, clay alteration in the Thelon sandstones. This type and extent of alteration typically overlies high grade, unconformity-associated uranium deposits in the Athabasca Basin.

Screech Lake is the site of highly anomalous radon gas emissions, as well as other products of radioactive decay. These emissions filter into the lake through lake bottom fissures and result in highly ionized lake waters. They are direct indicators of buried uranium mineralization and have made the Screech Lake area the focus of exploration for URE in the Thelon Basin.

The Screech, Gravel Hill and Eyeberry properties (collectively, the Thelon Project), are described in a NI 43-101 technical report dated October 20, 2005, by J. D. Charlton, P. Geol. The Qualified Persons for Ur-Energy Inc. with respect to the Company's Canadian holdings are Paul W. Pitman, P. Geo., VP Canadian Exploration and J. D. Charlton, P. Geol., Senior Consulting Geologist.

Ur-Energy is a dynamic junior mining company engaged in the identification, acquisition and exploration of uranium properties in Canada and in the United States. Shares of the Corporation trade on the Toronto Stock Exchange under the symbol URE. Ur-Energy has its registered corporate office in Ottawa, Canada.The Company's website is at www.ur-energy.com

This release contains forward-looking statements regarding capital and processing cost estimates, production rates, amounts, timetables and methods, mining methods, metallurgical recovery rates, government permitting timetables and strategic plans and are based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and other costs varying significantly from estimates, production rates, methods and amounts varying from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in development and other factor). Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward looking statements. The forward-looking statements contained herein are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances.

UR-ENERGY INC. (TSX:URE)