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Uranium Resources, Inc. Moves Forward With New Mexico Properties

Posted on: Tuesday, 27 May 2008, 12:00 CDT

Uranium Resources, Inc. (NASDAQ: URRE) (URI), a uranium exploration, development, mining and production company, today announced that it has submitted applications to the New Mexico Mining and Minerals Division of the Energy, Minerals and Natural Resources Department and the New Mexico Office of the State Engineer for a permit to conduct exploratory drilling in the Ambrosia Lake area.

"Our strategy has been to advance to production in New Mexico while continuing to produce in Texas. With slightly over 100 million pounds of in-place mineralized uranium material, we are working several tactics to get to production. This area in the Ambrosia Lake district, on which we have identified approximately 2.4 million pounds of mineralized uranium material combined on several sections, may be amenable to in-situ recovery mining (ISR). We have submitted the drilling request for Section 13 specifically in order to test the amenability of the uranium for ISR." said Richard Van Horn, URI executive vice-president and chief operating officer.

The applications are for ten uranium exploratory holes on land designated Section 13, which is west of the village of San Mateo. The mining area is removed from any commercial or residential structures and the impact to the land will be minimal as less than five acres are involved. It is expected that the permits will be received in the fall of this year. URI will retrieve ore samples to evaluate the properties of the ore and determine if the uranium can be extracted by ISR methods.

"This is a great opportunity for URI to establish an ISR project in New Mexico and demonstrate that this process is safe and responsible," said Mr. Van Horn. "URI has over thirty years of experience in ISR mining, and has proven with multiple wellfields that ISR meets all safety and environmental requirements of state and federal regulators."

He concluded, "We expect to have reportable results of our drilling by the end of this year after the permit has been issued. If the exploratory drilling proves successful, this size resource that we have identified could support an ISR operation of up to 500,000 pounds per year for a period of two to three years."

About Uranium Resources, Inc.

Uranium Resources Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 7 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where the Company currently has ISR mining projects. URI also has 183,000 acres of uranium mineral holdings and 101.4 million pounds of in-place mineralized uranium material in New Mexico. The Company acquired these properties over the past 20 years along with an extensive information database. URI's strategy is to capitalize on the strong global market for uranium by fully exploiting its resource base in Texas and New Mexico, acquiring new assets and through joint ventures or partnerships.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects,""estimates,""projects,""anticipates,""believes,""could," and other similar words. All statements addressing operating performance, events, or developments that the Company expects or anticipates will occur in the future, including but not limited to statements relating to the Company's mineralized uranium materials, timing of receipt of mining permits, production capacity of mining operations planned for properties in South Texas and New Mexico, planned dates for commencement of production at such properties, revenue, cash generation and profits are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, the spot price of uranium, weather conditions, operating conditions at the Company's mining projects, government regulation of the mining industry and the nuclear power industry, world-wide uranium supply and demand, availability of capital, timely receipt of mining and other permits from regulatory agents, the success of the acquisition of Rio Algom and other factors which are more fully described in the Company's documents filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company's forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

Source: Business Wire

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