Uranium Resources Announces Positive Results of Groundwater Study

  Uranium Resources Announces Positive Results of Groundwater Study

 Churchrock Project Will Have No Impact on Navajo-Gallup Water Supply Project

  *The study was developed jointly by the Navajo Nation, City of Gallup and
    URI
  *The study indicates that existing and future water wells will not be
    impacted by ISR activities

Business Wire

LEWISVILLE, Texas -- October 31, 2012

Uranium Resources, Inc. (NASDAQ: URRE) (“URI”), announced the positive
findings resulting from the Section 8 / Navajo-Gallup Groundwater Report and
Conjunctive Use Evaluation for its Churchrock Section 8 (“Section 8”) uranium
in-situ recovery (“ISR”) project.

The study results indicate that existing Gallup, Fort Wingate, Rehoboth and
Navajo Nation water wells will not be impacted by Section 8 ISR activities,
during mining operations or into the future. Moreover, the evaluation
concluded that there is no discernible risk that ISR activities would
adversely affect groundwater allocated for the Navajo-Gallup Water Supply
Project.

“This study was a collaborative effort with the Navajo Nation and the City of
Gallup,” stated Mark S. Pelizza, Senior Vice President of Health, Safety and
Environmental Affairs of URI. “The evaluation substantiates our belief that
ISR mining, specifically at our Churchrock project, is a safe,
environmentally-friendly way to extract uranium.”

Mr. Pelizza added, “We continue our discussions with members of the Navajo
Nation and its government and believe that this jointly developed study is a
solid step forward to help address their mining concerns.”

The report was prepared by Daniel B. Stephens and Associates, Inc., a
hydrology, engineering and geosciences consulting firm based in Albuquerque,
New Mexico. The firm was selected to conduct the study by the Navajo Nation
and the City of Gallup. The evaluation was conducted assuming parameters that
resulted in faster groundwater migration rates and placed all future supply
wells in locations closer to Section 8 than are projected. Additionally,
consideration was not given to geochemical processes, which lead to the
natural dilution and removal of elements over time.

About Uranium Resources, Inc.

Uranium Resources, Inc. explores for, develops and mines uranium. Since its
incorporation in 1977, URI has produced over 8 million pounds of uranium by
in-situ recovery (ISR) methods in the state of Texas. URI has over 206,600
acres of uranium mineral holdings and 152.9 million pounds of in-place
mineralized uranium material in New Mexico and an NRC license to produce up to
1 million pounds of uranium per year. URI has an additional 1.3 million pounds
of in-place mineralized uranium material in Texas and South Dakota. The
Company acquired these properties over the past 20 years along with an
extensive information database of historic drill hole logs, assay
certificates, maps and technical reports. None of URI’s properties is
currently in production.

URI’s strategy is to fully develop its resource base in New Mexico and Texas,
expand its asset base both within and outside of New Mexico and Texas, and
partner with larger mining companies that have undeveloped uranium assets or
with junior mining companies that do not have the mining experience of URI, as
well as provide restoration expertise to those that require the capability or
lack the proficiency.

Uranium Resources routinely posts news and other information about the Company
on its website at www.uraniumresources.com.

Safe Harbor Statement

This news 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 and
long-term contract 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 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 news release.

Contact:

Investor Contact:
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com
or
Media Contact:
Uranium Resources, Inc.
Mat Lueras
Vice President, Corporate Development
505-269-8317
mlueras@uraniumresources.com
 
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