Uranium Resources Plc Regulatory News (URA)

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

20 December 2011

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

Confirms REE Potential of Eland Project in Tanzania

Uranium Resources plc, the AIM quoted uranium exploration and development company, has confirmed the Rare Earth Elements ('REEs') potential of its Gundua prospect within the Eland Project Area in Tanzania. The results from the Company's recently completed 2011 field programme have confirmed management's model of the prospect as a REE-mineralised carbonatite target. 

Surface sampling undertaken during the programme demonstrated elevated REE values throughout the project area and one grab sample showed over 4.28% REE (over 4.22% Light REE and 0.06% Heavy REE).

URA's 2011 field programme at Gundua followed an extensive data compilation exercise and generation of a geological model. The programme consisted of geological mapping and rock/grab sampling followed by mineralogical studies of rock samples. Geological mapping confirmed the presence of a 4 km by 3 km alkaline complex with associated strontium-rich carbonatite dykes bearing widespread bastnaesite, synchysite, and monazite mineralisation. The scanning electron microscope mineralogical analysis of the samples demonstrated significant similarities between Gundua and Wigu Hill, a carbonatite REE target in Tanzania currently being developed by Montero Mining and Exploration Ltd. 

The Company plans to carry out an in-depth interpretation of the 2011 results and conduct a more detailed field study at Gundua in early 2012 with a view to localising mineralisation and generating drill targets.

Managing Director Alex Gostevskikh commented; "We are pleased to confirm the prospectivity of Gundua for REEs and look forward to executing the 2012 field programme. At this early stage, it appears that Gundua resembles both the Wigu Hill REE project in Tanzania and Lynas Corp's Kangankunde project in Malawi. These similarities make Gundua a very interesting exploration target. We have done very methodical and comprehensive homework and executed this programme with specific objectives in mind and it is satisfying to see that our exploration methodology works.

"Whilst Gundua provides a target of merit for further field work, we remain focussed on developing our flagship Mtonya roll-front uranium project and the Lukimwa and Foxy uranium prospects."

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 URA, 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:

Notes

Uranium Resources plc is an AIM listed exploration and development company, focussed on advancing its existing assets and strengthening its portfolio via opportunistic acquisition. It has uranium licences in the highly prospective Karoo Basin in Southern Tanzania.