Uranium Resources Plc Regulatory News (URA)

Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration

20 October 2011

Uranium Resources plc ('Uranium Resources') or ('the Company')

2011 Drilling Programme at Mtonya Uranium Project Continues

Highlights:

·; Completed 4,580m (15 holes) of the 6,850m 2011 diamond drilling programme at the Mtonya project in southern Tanzania

·; Complete assays have been received for 7 holes out of the 15 completed

·; First assay results include significant intercepts as follows:

·; The drilling results from holes 14, 23 and 35 prove the Company's exploration model and confirm the occurrence of multiple uranium roll-fronts at depth

·; The 2011 drilling programme continues on a wide-spaced grid with a focus on establishing the magnitude and geometry of roll-fronts while generating targets for resource-definition aircore drilling

Mtonya 2011 Drilling Programme

The Company has completed 4,580m (15 holes) of its 6,850m diamond drilling programme at Mtonya.

The 2011 programme is designed to test the Company's proprietary model of extensive roll-front mineralisation at depth, identify a significant sandstone-hosted roll-front uranium deposit amenable to in-situ recovery and extend the near-surface uranium mineralisation.

2011 drilling is being carried out on 300m centres with select infill holes on 50-150m centres over an area approximately 1,500 x 1,500m that represents less than 0.5% of the entire prospective Mtonya license.

Following the successful confirmation of the Company's model by the 2010 drilling programme, which verified the broad development of redox processes at depth and occurrence of favourablelithologies and enabled the deep targeting, a discovery-focussed programme was developed.

The main objective of this year's drilling campaign is establishing the magnitude and tenor of the deep mineralisation and building the foundation for the subsequent resource-definition programme. The 2011 scout drilling programme draws on the Company's deep knowledge and expertise of the Selous-Luwegu basin architecture and has been successful in identifying deep uranium mineralisation amenable to in-situ recovery. The remaining drill holes in the 2011 programme are designed to increase the extent of deep mineralisation and improve its grade and thickness.

The execution of the programme has been subject to lower than planned drilling rates by our drilling contractor as well as longer than expected assay turnarounds. The Company is seeking to engage additional rigs and is planning to extend the drilling well into the wet season.

Results

The first batches of some 2,300 assays including samples from holes 14, 15, 23, 26, 29, 34, 35 and 36 have been received.

The first three holes (14, 23 and 35) of the ongoing programme have produced uranium intercepts providing a strong validation for the Company's proprietary exploration model based on interpretation of the regional geology and structural fabric. Holes 14, 23 and 35 are 300m apart. Interpretation of the drill core, uranium assays, and geochemical analyses for pathfinder elements suggests that holes 14, 23, and 35 intersected fringes of 2 continuous roll-fronts approximately 40m apart vertically. The results also indicate that the inferred roll-fronts are at least 600m long.

These results provide evidence for multiple uranium roll-fronts occurring at Mtonya. Their lithological composition and geochemical signature demonstrate compelling similarities with the well-known roll-front uranium deposits of Kazakhstan and Wyoming.

Holes 15 and 34 produced significant intercepts further extending the near-surface mineralisation. The near-surface mineralisation amenable to truck and shovel mining remains a valid exploration target at Mtonya and the Company's core drilling on these targets has significantly advanced our understanding of this mineralisation. This data set forth a foundation for a potential fast-track exploration programme in the future.

The significant intercepts in the assays received to date are as follows:

Holes 26, 29 and 36 produced no significant intercepts.

The core produced by the ongoing drilling programme provides further evidence for extensive development of redox processes and presence of favourable conditions for uranium mineralisation that could be extracted with the use of in-situ recovery. The Company observes widespread occurrence of highly permeable, coarse-grained, carbonate-poor arkose sandstones that commonly have thicknesses of 6 to 12m. The intercepted roll-fronts occur deep below the active water table and are confined between 3-12m thick beds of impermeable mudstone.

Assaying and QA/QC

The Company adheres to the most reliable methods of quantifying uranium mineralisation by sampling half-core and subjecting the samples to the ME-MS41 and ME-ICP61 analytical methods at the ALS laboratory in Vancouver, BC, Canada.

In accordance with industry standards, the assayed samples include certified standards and duplicates. Analytical results are routinely subjected to statistical review.

In addition to core sampling and assaying, the Company has commenced the use of a Mount Sopris Matrix gamma-logging system to ensure proper instrument calibration and establish the framework for disequilibrium adjustments. The disequilibrium factor (DEF) is used to adjust the grade obtained from measurements by a gamma-ray probe (eU3O8) and to provide rapid estimates for the uranium content in the rock.

Managing Director's Comments

Commenting on the first assay results from this year's programme at Mtonya, Managing Director Alex Gostevskikh said:

"We are excited about Mtonya's potential and we are very pleased with the results that are coming from our drilling programme. By confirming mineralised roll-fronts at depth, we have achieved one of the most important milestones in our exploration at Mtonya. Deep-seated sandstone-hosted targets, such as in Kazakhstan, present significant exploration challenges but also yield world-class deposits amenable to in-situ recovery - the most economically effective and environmentally benign method of uranium extraction.

"We are observing evidence that suggests the presence of stacked roll-fronts in rock formations that appear to be suitable for in-situ recovery. We are particularly impressed with significant continuities of the identified roll-fronts and we are looking forward to improving their grade and thickness. The geochemical data that has begun arriving from our latest drilling continues to confirm and enhance our proprietary model and substantially improves our drill targeting.

"We expect that the completion of the 2011 drilling programme will lead to resource-definition drilling at Mtonya. We continue drilling very wide-spaced holes intended to establish the magnitude of mineralised roll-fronts and generate targets for aircore drilling."

Competent Person

The information in this statement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information assessed by Alex Gostevskikh, Managing Director of Uranium Resources, who is a Member of the Mining and Metallurgical Society of America. Mr Gostevskikh has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr Gostevskikh consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

**ENDS**

For further information please visit www.uraniumresources.co.uk or contact:

About Uranium Resources

Uranium Resources plc is an AIM listed exploration and development company. It is the Company's strategy to advance its existing assets and strengthen its portfolio via opportunistic acquisition. Uranium Resources has uranium licences in the highly prospective Karoo Basin in Southern Tanzania.