Uranium Resources, Inc. Provides Third Quarter 2012 Update

  Uranium Resources, Inc. Provides Third Quarter 2012 Update

  *Search for CEO ongoing
  *Deferring construction plans on Churchrock Section 8
  *Positive groundwater study results support safety of in situ mining

Business Wire

LEWISVILLE, Texas -- November 09, 2012

Uranium Resources, Inc. (NASDAQ: URRE) (“URI” or the “Company”), today
provided an update on the Company’s activities, its liquidity position for the
third quarter of 2012 and its strategy and outlook.

Terence J. Cryan, Interim President and CEO of URI, commented on the search
for a permanent CEO, “We are actively searching and considering potential
candidates to lead Uranium Resources into the future, but at this time have
not yet selected that person. In the meantime, we are making the decisions
needed to advance our valuable uranium assets in a prudent manner and
consistent with the present market environment.”

Strategic Direction

Mr. Cryan noted, “The long-term opportunities for uranium remain as robust as
ever with demand well outstripping supply in the latter part of the decade and
we believe the extensive uranium assets that we hold in New Mexico will be a
major part of the needed supply. Nonetheless, the current state has been a
challenging market environment for uranium. Uranium prices have been steadily
declining since June of this year, and may remain weak through 2013. We do
expect that there could be a rapid surge in prices when the clarity of the
market imbalance is realized.

“At this time, we are deferring our construction plans for our Churchrock
Section 8 project. In addition to reducing our near-term capital requirements,
it will enable us to focus on those efforts that will de-risk the project,
improve its economics and facilitate future development options.”

The Company’s primary areas of focus are as follows:

  *Contain costs to minimize the cash burn to only that needed to achieve our
    priorities
  *Complete the feasibility study on Churchrock Section 8
  *Continue to advance negotiations with the Navajo Nation and its government
    regarding access to Section 8, as well as garner a comprehensive
    understanding of the environmental and safety focus of our production and
    restoration plans
  *Attempt to reach agreements with royalty holders of Section 8, Section 17
    and Mancos properties
  *Complete groundwater restoration of its Texas properties
  *Evaluate opportunities with the joint venture with Cameco in Texas

Advancements in New Mexico

URI’s primary focus in New Mexico is its Churchrock Section 8 property, which
contains 6.5 million pounds of in-place non-reserve mineralized uranium
material. Section 8 is in the area covered by the Company’s underground
injection control permit and NRC license. Both licenses are in timely renewal
and allow for uranium production by in situ recovery. The NRC license
addresses in total 27.4 million pounds of in-place, non-reserve, mineralized
uranium material for the Company’s Churchrock/Crownpoint Project.

URI developed, in conjunction with the Navajo Nation and the City of Gallup,
the Section 8 / Navajo-Gallup Groundwater Report and Conjunctive Use
Evaluation for its Section 8 uranium in-situ recovery (“ISR”) project. The
study results indicate that existing area water wells will not be impacted by
Section 8 ISR activities, during mining operations or into the future.
Additionally, the study demonstrated that there is no discernible risk that
ISR activities would adversely affect groundwater available for the City of
Gallup and the Navajo Nation’s coordinated water supply project.

On July 31, 2012, URI was granted temporary access to Sections 8, 9 and 17 for
regulatory visits and to support license or permit requirements. As part of
the agreement, Hydro Resources, Inc., a wholly-owned subsidiary of URI,
offered to complete remediation of legacy mining activities at the Sections 17
or 8 properties prior to commencing in situ leach recovery on Section 8.
Discussions continue with the Navajo Nation, with the objective to reach a
comprehensive agreement, mutually beneficial to both parties, regarding the
production of uranium in New Mexico. The groundwater report developed in
conjunction with the Navajo Nation supports the safety of ISR mining in New
Mexico.

The Company continues to refine the feasibility study performed on Section 8
and expects to release a summary of the study in December 2012. Royalty
discussions are also ongoing, which are intended to improve the economic
viability of the project.

On August 31, 2012, URI successfully completed a stock-for-stock transaction
to acquire 100% of the equity of Neutron Energy, Inc, resulting in the
addition of over 50 million pounds of in-place mineralized uranium material.
With this acquisition, URI gained operational synergies for the development of
its assets in New Mexico, as well as added a previously permitted conventional
mill site to its asset base.

Texas Activities Progressing

Groundwater restoration has been completed and is currently being monitored
for stability at Kingsville Dome Production Area (PA)1 and PA2, in addition to
Rosita PA1 and PA2. Final closure of these production areas is targeted for
mid- to late-2013. The Company continues restoration activities with
stabilization targeted for the third quarter of 2013 at Kingsville Dome PA3
and fourth quarter of 2013 for Vasquez PA1 and PA2.

Phase II of the joint Los Finados exploration project with Cameco started in
December 2011. Drilling activities concluded in August and both parties have
agreed to delay a decision to proceed with Phase III until December 31, 2012.
Under Phase II, 40 holes were drilled at an average depth of 1,327 feet and,
while there have been no significant findings, the geologic opportunities in
the area are still encouraging. Cameco currently has earned a 50% interest in
the project and can earn a 70% interest with the completion of Phase III.

URI is in the process of refurbishing the Kingsville Dome holding ponds and
expects this project to complete in mid-2013.

Liquidity Position

Cash at September 30, 2012 was $4.0 million compared with $2.9 million at
December 31, 2011 and reflects the $5 million option with Resource Capital
Fund V L.P. that closed on September 5, 2012 through the sale of 9,691,801
shares of URI common stock at a price of $0.5159 per share. As of October 31,
2012, URI had $3.0 million in cash.

During the third quarter, the Company sold 5.6 million shares of common stock,
raising net proceeds of $2.9 million under the existing At-The-Market Sales
Agreement (“ATM”) with BTIG, LLC. In October 2012, the Company sold an
additional 2.2 million shares under the ATM program, raising net proceeds of
$937,000. At October 31, 2012, URI has a total of $9.0 million in share value
available for future sales under the ATM.

URI incurred cash expenditures from its operating and investing activities
during the first nine months of $18.2 million.

Teleconference and Webcast

URI will host a conference call and webcast on November 9, 2012 at 11:00 a.m.
ET. During the call, management will provide an update on URI’s strategies,
outlook, and progress in advancing its Texas and New Mexico properties. A
question-and-answer session will follow.

The URI conference call can be accessed by dialing (201) 689-8471. The live
listen-only audio webcast can be monitored on the Company’s website at
www.uraniumresources.com, where it will be archived afterwards.

A telephonic replay will be available from 2:00 p.m. ET the day of the
teleconference until Friday, November 16, 2012. To listen to the archived
call, dial (858) 384-5517 and enter replay pin number 401283. A transcript
will also be placed on the Company’s website, once available.

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, access to properties,
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,
receiving shareholder approval of the Neutron transaction, realizing the
benefits of the merger and resource development synergies, the exploration
upside of the acquired properties, the Company’s ability to acquire other
properties, the benefit of permitting on private lands, the effect of
additional major investors with mining investment experience, 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.

                                                         
URANIUM RESOURCES,INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)
                                             September 30,       December 31,

                                             2012                2011
Current assets:
Cash and cash equivalents                    $  3,978,348        $  2,890,263
Receivables, net                             268,564             123,336
Prepaid and other current assets             307,907             165,509
Total current assets                         4,554,819           3,179,108
                                                                 
Property, plant and equipment, at
cost:
Uranium properties                           107,074,892         82,768,867
Other property, plant and equipment          1,359,626           868,454
Less-accumulated depreciation,
depletion and                                (65,185,316)        (64,791,294)

impairment
Net property, plant and equipment            43,249,202          18,846,027
                                                                 
Long-term investment:
Certificates of deposit, restricted          9,485,844           9,379,794
                                             $  57,289,865       $  31,404,929
Current liabilities:
Accounts payable                             $  2,116,976        $  1,148,812
Current portion of asset retirement          1,245,667           1,227,125
obligations
Royalties and commissions payable            665,745             665,745
Accrued interest and other accrued           859,206             374,088
liabilities
Current portion of capital leases            142,004             65,161
Total current liabilities                    5,029,598           3,480,931
                                                                 
Asset retirement obligations, less           3,153,759           3,508,634
current portion
Other long-term deferred credits             500,000             500,000
Long term capital leases, less               26,607              54,071
current portion
Long-term debt, less current portion         450,000             450,000
Commitments and contingencies                                   
Total Liabilities:                           9,159,964           7,993,636
Shareholders’ equity:
Common stock, $.001 par value,
shares
authorized: 200,000,000; shares
issued and
outstanding (net of treasury                 158,835             94,043
shares): 2012 -
158,746,746; 2011 - 94,005,006
Paid-in capital                              206,046,082         169,904,203
Accumulated deficit                          (158,065,598)       (146,577,535)
Less: Treasury stock (38,125                 (9,418)             (9,418)
shares), at cost
Total shareholders’ equity                   48,129,901          23,411,293
                                             $  57,289,865       $  31,404,929
                                                                    

                                                             
URANIUM RESOURCES,INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
                                                                                                    
                             Three Months Ended                    Nine months ended
                             September 30,                         September 30,
                             2012             2011               2012              2011
Revenues:
Uranium sales                $ —                $ —                $ —                 $ —
Total revenue                —                  —                  —                   —
Costs and expenses:
Cost of uranium sales
Operating expenses           776,764            133,753            1,920,601           498,862
Accretion/amortization                                                              
of asset retirement
obligations                  22,673             26,543             69,416              95,562
Depreciation and             91,319             145,193            318,637             476,375
depletion
Impairment of uranium        296,628            493,568            1,048,400           1,081,666
properties
Exploration expenses         12,402             (25,816      )     69,861              82,871
Total cost of uranium        1,199,786          773,241            3,426,915           2,235,336
sales
Loss from operations
before corporate             (1,199,786   )     (773,241     )     (3,426,915    )     (2,235,336   )
expenses
Corporate expenses—
General and                  2,994,663          2,022,139          8,191,352           6,289,557
administrative
Depreciation                 40,911             31,717             104,751             100,383
Total corporate              3,035,574          2,053,856          8,296,103           6,389,940
expenses
Loss from operations         (4,235,360   )     (2,827,097   )     (11,723,018   )     (8,625,276   )
Other income
(expense):
Interest expense             (6,055       )     (4,395       )     (12,723       )     (15,000      )
Interest and other           20,501             44,246             247,678             133,856
income, net
Net loss                     $ (4,220,914 )     $ (2,787,246 )     $ (11,488,063 )     $ (8,506,420 )
Net loss per common
share:
Basic                        $ (0.03      )     $ (0.03      )     $ (0.10       )     $ (0.09      )
Diluted                      $ (0.03      )     $ (0.03      )     $ (0.10       )     $ (0.09      )
Weighted average
common shares and
common
equivalent shares:
Basic                        124,134,763        93,528,362         109,534,070         93,407,739
Diluted                      124,134,763        93,528,362         109,534,070         93,407,739
                                                                                                    

                                       
URANIUM RESOURCES,INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)
                                           Nine months ended
                                            September 30,
                                            2012              2011
Operating activities:
Net loss                                    $ (11,488,063 )     $ (8,506,420 )
Reconciliation of net loss to cash
used in operations—
Accretion/amortization of asset             69,416              95,562
retirement obligations
Depreciation and depletion                  423,388             576,758
Impairment of uranium properties            1,048,400           1,081,666
Decrease in restoration and                 (1,299,806    )     (1,170,956   )
reclamation accrual
Stock compensation expense                  373,838             737,300
Other non-cash items, net                   73,932              2,289
Effect of changes in operating
working capital items—
Increase in receivables                     (140,228      )     (246,821     )
Increase in prepaid and other               (125,058      )     (81,445      )
current assets
Increase (decrease) in payables,
accrued liabilities and deferred            668,089             (773,860     )
credits
Net cash used in operations                 (10,396,092   )     (8,285,927   )
                                                                             
Investing activities:
(Increase) decrease in certificates         167,855             (1,525,125   )
of deposit, restricted
Additions to property, plant and
equipment—
Kingsville Dome                             (667,920      )     (110,063     )
Vasquez                                     (10,274       )     (15,100      )
Rosita/Rosita South                         (46,213       )     (118,732     )
Los Finados                                 (5,950        )     (88,236      )
Churchrock                                  (2,649,359    )     (30,057      )
Crownpoint/Section 13                       (280,529      )     (17,805      )
Other property                              (617,885      )     (34,785      )
Acquisition of Neutron Energy Inc.          (3,677,133    )     —
Proceeds from joint venture                 —                   300,000
agreement
Net cash used in investing                  (7,787,408    )     (1,639,903   )
activities
Financing activities:
Payments on borrowings                      (56,775       )     (67,261      )
Issuance of common stock, net               19,328,360          21,345
Net cash provided by (used in)              19,271,585          (45,916      )
financing activities
Net increase (decrease) in cash and         1,088,085           (9,971,746   )
cash equivalents
Cash and cash equivalents,                  2,890,263           15,386,472
beginning of period
Cash and cash equivalents, end of           $ 3,978,348         $ 5,414,726
period
Non-cash transactions:
Issuance of common stock to acquire         $ 16,650,000        $
Neutron Energy, Inc.
Issuance of common stock in                 $ —                 $ 697,027
settlement of deferred compensation
Issuance of restricted stock to             $ 391               $ 176
employees and directors
Capital lease obligations                   $ 106,154           $ —
                                                                             

Contact:

Investors:
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com
or
Media:
Uranium Resources, Inc.
Mat Lueras, 505-269-8317
Vice President, Corporate Development
mlueras@uraniumresources.com
 
Press spacebar to pause and continue. Press esc to stop.