Uranium Resources Plc Regulatory News (URA)

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

Uranium Resources plc

("Uranium Resources" or the "Company")

Half-Year Results

Uranium Resources plc, the AIM listed uranium exploration company operating in Tanzania, announces its results for the six month period ended 31 December 2014.

Highlights

· The Company has developed an updated exploration programme which aims to expand the maiden resource at its wholly owned Mtonya project in the Republic of Tanzaina;

· Mtonya deposit is expected to be amenable to in-situ recovery ("ISR"), the most cost-effective and environmentally benign method of uranium extraction; and

· The Company remains optimistic about Mtonya's significant potential.

Post Period End Highlights

· Entered into an additional US$200,000 loan facility agreement with our strategic cornerstone investor Estes Limited ("Estes");

· Appointment of Mark Purits as UK based Non-executive Chairman; and

· The new exploration programme at Mtonya is anticipated to commence in June 2015.

Managing Director's Report

Mtonya is the first uranium deposit in Africa that is thought to be amenable to ISR and its discovery signalled the opening of an emerging ISR basin. With its maiden uranium resource of 2013, Mtonya remains open along strike and at depth and has the potential to become a significant uranium deposit.

The Company is currently operating in a stagnating uranium market which has adversely affected the rate of exploration and overall progress at Mtonya. The board remains optimistic about the potential of Mtonya and the nuclear fuel market in general as the fundamentals of the market suggest that there is currently an annual demand for approximately 155 million pounds of uranium. The market awaits a catalyst such as the re-start of the Fukushima reactors in Japan or the commissioning of new nuclear power plants.

Further to developing a maiden resource at Mtonya, the Company entered into an additional loan agreement with Estes, its cornerstone investor and strategic supporter of the project. This agreement provides the Company with up to US$200,000 of bridge funding as we pursue opportunities to progress the next stage of expansion drilling at Mtonya.

Additionally, in line with our strategy to build a leading uranium exploration and development company focused on projects which are amendable to ISR, we continue to identify and assess new resource opportunities which meet our investment criteria.

Finally, in March 2015 Mark Purits joined the board as Non-executive Chairman. I am confident that his experience in capital markets and the resources industry will be a valuable addition to our board of directors as we move forward with the development of the Company.

Exploration Update

Mtonya

We have continued to review the Mtonya data to ascertain the success of the expansion drilling programme. The previous drilling programme defined significant laterally-extensive roll-front uranium mineralisation, once again confirming our proprietary exploration model and exploration methodology. Importantly, this roll-front uranium mineralisation is expected to be amenable to ISR, the most cost-effective and environmentally acceptable method of uranium extraction.

The completion of the 26,485m resource-definition drilling programme in 2012 allowed the Company to delineate a maiden CIM-compliant Inferred Resource of 2.014 Mlb U3O8 grading 255 ppm U3O8. On a 250x50m grid the resource drilling remains fairly coarse and significant upside potential remains untested along strike of the roll-front feature and at depth. Volumetrically, only 1/6 of prospective lithologies have been systematically drilled at Mtonya.

The project shall benefit from step-out drilling to ensure a significant increase in its resource.

Other projects

The Company continues to be a uranium-focused exploration company and we currently view Mtonya as our priority project.

Financial results

I am reporting a pre-tax loss for the six months ended 31 December 2014 of US$307,000 (6 months ended 31 December 2013 US$170,000; year ended 30 June 2014: US$387,000). The loss for the six month ended includes an impairment charge of US$Nil (6 months ended 31 December 2013 US$Nil).

Outlook

Uranium Resources has developed a credible exploration model which led to the discovery of the Mtonya uranium deposit that is thought to be amenable to ISR. The Company is looking forward to achieving a substantial increase in the resource and demonstrating its suitability for ISR.

With the Mtonya outlook, a clear strategy, proven potential for the entire basin and well-developed and effective exploration methodology, along with Estes Limited, our highly-supportive cornerstone investor, I believe we have the foundations in place to deliver growth and create significant shareholder value in the future.

Alex Gostevskikh

23 March 2015

Competent Persons declaration

The information in this statement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information reviewed by Alex Gostevskikh, Managing Director of Uranium Resources plc, 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:

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

NOTES TO THE UNAUDITED HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

1. General information

Uranium Resources Plc ('the Company') is domiciled in England. The condensed consolidated half-year accounts of the Company for the six months ended 31 December 2014 comprise the Company and its subsidiaries (together referred to as 'the Group').

The condensed half-year accounts for the period 1 July 2014 to 31 December 2014 are unaudited. In the opinion of the Directors the condensed half-year accounts for the period presents fairly the financial position, and results from operations and cash flows for the period in conformity with the generally accepted accounting principles consistently applied. The condensed half-year accounts incorporate unaudited comparative figures for the interim period 1 July 2013 to 31 December 2013 and the audited financial year to 30 June 2014.

The financial information contained in this half-year report does not constitute statutory accounts as defined by section 434 of the Companies Act 2006.

The comparatives for the full year ended 30 June 2014 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under section 498 (2) - (3) of the Companies Act 2006.

2. Accounting policies

The condensed half-year accounts have been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU. The condensed half-year accounts have been prepared using the accounting policies which are expected to be applied in the Group's statutory financial statements for the year ending 30 June 2015.

Basis of preparation and going concern

In March 2015 the company announced that it had increased its loan facilities with Estes by US$200,000 to a total facilities of US$1,490,000. The facilities, which are unsecured and bear interest at LIBOR, are for working capital. At 31 December 2014 the Company had drawn down $1,290,000 against the available facilities and had incurred accrued interest of US$3,927.27.

Estes continues to show its support in providing this flexible funding option to the Company. As stated above the Group plans to continue its work programme in June 2015, however the undrawn funds available from the loan facility, in conjunction with the Group's current cash resources, do not provide the Group with sufficient available resources to meet all of its commitments for the next twelve months; the Group will therefore need to raise additional funds.

The Directors remain confident that Mtonya's potential, together with the Group's historic track record of raising additional funds and the interest being shown from potential partners, will enable the Group to fully finance its obligations beyond a period of at least twelve months from the date of this report, including meeting future capital and working capital requirements and also settling the Estes loan facilities, which are due for repayment within the next 12 months, accordingly these condensed half-year accounts are prepared on a going concern basis.

Standards, amendments and interpretations effective in 2014:

The following new standards and amendments to standards are mandatory for the first time for the Group for the financial year beginning 1 July 2014. Except as noted, the implementation of these standards did not have a material effect on the Group:

No any pronouncements are expected to have a material impact on the Group's earnings or shareholders' funds.

3. Taxation

The Tanzanian Revenue Authority is undertaking a routine audit of the Group's Tanzanian tax compliance. As at 31 December 2014 no provision has been made (31 December 2013 and 30 June 2014:US$Nil).

4. Loss per share 

The basic loss per share has been calculated using the loss attributable to equity shareholders for the financial period of US$307,000 (six months ended 31 December 2013: US$170,000; year ended 30 June 2014: US$387,000) and the weighted average number of ordinary shares in issue of 745,493,750 (31 December 2013: 745,493,750; 30 June 2014:745,493,750). A separate diluted loss per share has not been calculated because any potentially dilutive shares would decrease the basic loss per share, thus being anti-dilutive.

5. Exploration and evaluation assets

In accordance with the Group's accounting policy, the Group's exploration and evaluation assets are reviewed for impairment when there have been circumstances suggesting that there has been the possibility of impairment. After a strategic review in the year ended 30 June 2014 the board elected to allow a number of unprospective licences to lapse and to revert to the government. Accordingly the directors reviewed the impairments required on each of the exploration and evaluation projects and the carried value for each of the condemned projects were impaired in full in the year ended 30 June 2014. The total impairment charge for the current half year period is $Nil (six months ended 31 December 2013: US$Nil and year ended 30 June 2014: US$18). The remaining carried value relates entirely to the Company's flagship project Mtonya.

6. Borrowings

On 15 March 2013 the Company entered into a US$1 million loan facility agreement with its major shareholder and strategic investor Estes Limited. The Loan facility, which is unsecured, has been fully utilised and was originally repayable on 15 September 2014. The Loan bears interest at LIBOR. On 10 September 2014 the Company entered into a supplementary agreement which extends the US$1 million loan facility agreement until 1 July 2015.

On 18 March 2014 the Company entered into a US$300,000 loan facility agreement with its major shareholder and strategic investor Estes Limited. The Loan, which is unsecured, is repayable on 17 September 2015 and bears interest at LIBOR. The facility was available until 1 January 2015. At 31 December 2014 the Company had drawn down US$290,000 against the available facility.

Note 7 describes the increase in loan facilities made available since the period end.

7. Subsequent events

On 19 March 2015 the Company entered into a further US$200,000 loan facility agreement ('the Loan') with its major shareholder and strategic investor Estes Limited. The Loan, which is unsecured, is available for the period to 1 January 2016 and bears interest at LIBOR, will be used to fund working capital requirements.

8. Related party transactions

During the period there were no related party transactions to disclose other than those mentioned above in Note 6. The only transactions with the Directors relate to their remuneration and interests in shares and share options.