Uranium Resources Plc Regulatory News (URA)

18 Mar 2008 13:32

Uranium Resources PLC18 March 2008 Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration 18 March 2008 Uranium Resources plc ("Uranium Resources" or "the Company") Interim Results Uranium Resources plc, the AIM quoted uranium exploration and developmentcompany operating in Southern Africa, announces its results for the six monthperiod ended 31 December 2007. Overview • Subsurface high grade uranium has now been identified over a strike length of 4km in drilling at the Mtonya Project • Ruvuma Project - first pass regional reconnaissance has yielded high grade grab samples from two new uranium prospects, Foxy and Eland • Exploration programme scheduled for 2008 to advance 13,500 sq km Tanzanian uranium prospective landholding • Minimum 10,000m of drilling commencing in May with programmes scheduled for Grandfather, Foxy and Eland Prospects and the greater Mtonya trend • Healthy cash position in excess of £1.8 million in the bank, which will satisfy ongoing exploration commitments Directors Report The focus has primarily been on developing the Company's portfolio of uraniumlicences in the uranium prospective Karoo Basin in Southern Tanzania, where itcurrently has a land package in excess of 13,500 sq km. Uranium Resources hasidentified three primary projects, Mtonya, Ruvuma and Ruhuhu. The Company ispursuing an aggressive exploration programme with its joint venture and farm-inpartner, ASX listed Western Metals Limited ("WMT"), which has resulted in theMtonya project identifying subsurface uranium over a strike length of 4km withthe largest prospect, Grandfather, yet to be drilled. Recent results, including the discovery of two new uranium prospects yieldinghigh grades from first pass reconnaissance, have enhanced the Company's beliefin the economic potential of the region. Tanzanian Exploration Regional helicopter reconnaissance has discovered two new uranium prospects atthe Ruvuma Project (URA 50:50 WMT): • The sandstone hosted Foxy Prospect returned a grab sample assay result of 13,400ppm U3O8 (1.34%); and • The leuco gneiss hosted Eland Prospect returned grab sample assay results of 1,080ppm U3O8 (0.108%), 440ppm U3O8 (0.044%) and 141ppm U3O8 (0.014%). These results represent a new style of uranium mineralisation in southern Tanzania and were attained from a very limited reconnaissance, which covered only a small area of a much larger anomaly. The Board believes that the success of this brief reconnaissance warrants the re-evaluation of a number of highly significant airborne anomalies that have previously been assigned lower priorities due to being basement hosted. Subsurface uranium has now been identified in drilling over a strike length of4km at the Mtonya Project (URA 60:40 WMT). October reverse circulation drillingdelivered significant intercepts including: • 4 metres at 737ppm U3O8 (0.074%) from 44 metres; • 1 metre at 1140ppm U3O8 (0.114%) from 25 metres; • 2 metres at 970ppm U3O8 (0.097%) from 20 metres; and • 3 metres at 216ppm U3O8 (0.022%) from 61 metres. Channel sampling results from trenches at the Company's (URA 60:40 WMT)Grandfather Prospect confirm earlier high grade surface scintillometer readingsand anomalous surface grab samples (4.64% U3O8, 0.20% U3O8). Peak channelsample assay results from trenching included: • 1.2 metres at 7,723 ppm U3O8 (0.77%) including 0.4 metres at 2.13% U3O8; • 1.2 metres at 4,773ppm U3O8 (0.477%); and • 1.2 metres at 2,393 ppm U3O8 (1.239%). Tanzanian Land Acquisition In November 2007 the Company was awarded three Prospecting Licences ('PLs') atthe Mtonya Project by way of renewal of expiring Prospecting Licences withreconnaissance period ('PLRs'). The new PLs give Uranium Resources the right toexplore for an additional three years and the option to extend them for afurther two periods of two years each. Corporate Previously, Uranium Resources stated that it was exploring a stock exchangelisting on the ASX. At this stage, the Company's current share capitalstructure does not meet the listing requirements of ASX. The 2008 Tanzanian Exploration Programme During 2008 our aim is to advance existing projects and identify further licenceareas to expand our asset base. In line with this, we are preparing for theTanzanian field season (the dry season) which we anticipate will run from Aprilto October 2008. We hope to begin drilling in May 2008 with the aim ofcompleting a minimum of 10,000m. Exploration will include: • Drilling at the Grandfather Prospect (Mtonya Project); • Further drilling of selected targets on the Mtonya trend; • Trenching of regional prospects, including Foxy and Eland; • Drilling of regional prospects, including Foxy and Eland; • Ground radiometric surveys of regional targets; • Airborne radiometric surveys of regional targets; and • Soil sampling. It is expected that WMT will earn an additional 20% interest in the Farm-inAreas including Mtonya during 2008 (see project ownership table below), byspending A$2 million in advancing the Company's exploration ground. Once WMT hasearned its additional 20% interest, Uranium Resources will be required tocontribute 40% of the costs of exploration over the Farm-in Areas. UraniumResources will continue to contribute its equal share with WMT on the remainingtenements, which include the latest Foxy and Eland discoveries, and represent byland area the majority of ground. The Company has been advised by WMT that itsshare of expenditure for 2008 will be approximately £650,000. The Company'scash position remains healthy with in excess of £1.8 million in the bank, whichwill satisfy its current exploration commitments. Outlook The past six months have seen many positive developments for Uranium Resources,with a successful 2007 exploration programme returning positive results. With asolid portfolio of projects and an established joint venture partner in the formof WMT, I am confident that our success will continue and that the future growthprospects of your Company are bright. I look forward to reporting furtherprogress on a regular basis throughout the rest of the year. Finally, being at the exploration stage, we are not producing revenue and assuch I am reporting a pre-tax loss of £150,228 for the six months ended 31December 2007. Project Ownership Summary JV Description JV Partners & Ownership Approx. Gross WMT URA Local Partner Land Area (sqkm) Farm-in Areas 40% 60% - 2,980*42.5% JV Areas 42.5% 42.5% 15% 10,364 (Ruvumu) 45% JV Areas 45% 45% 10% 211 (Ruhuhu) Rest of URA and WMT consider Tanzania to be an area of mutual interest so each of URA & WMT will Country Tanzania offer the other an equal share in any future uranium opportunity in Tanzania. wide Key:* 2,492 sqkm is under application for renewal+ By way of a farm-in agreement WMT has earned an initial 40% interest in thefarm-in areas by spending A$2million and has the right to earn an additional 20%interest by spending a further A$2million. Hugh Warner Director 17 March 2008 UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 Six months ended Six months ended Year ended 31 December 2007 31 December 2006 30 June 2007 (Unaudited) (Unaudited) (Unaudited) £ £ £ Note Administrative expenses (205,080) (169,618) (484,192)Share-based payments charge - (234,000) (1,149,879) Group operating loss (205,080) (403,618) (1,634,071)Interest receivable 54,852 11,680 43,840 Loss before taxation (150,228) (391,938) (1,590,231)Taxation - - - Loss for the period (150,228) (391,938) (1,590,231) Loss per share (pence)Basic 4 (0.05p) (0.19p) (0.64p)Diluted 4 (0.05p) (0.19p) (0.64p) UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 Share Share Own Share based Retained Total capital premium shares payments losses equity reserve reserve £ £ £ £ £ £Six months ended31 December 2007 At 1 July 2007 291,000 3,094,360 - 1,149,879 (1,976,366) 2,558,873Loss for the period - - - - (150,228) (150,228) At 31 December 2007 291,000 3,094,360 - 1,149,879 (2,126,594) 2,408,645 Six months ended31 December 2006 At 1 July 2006 211,000 1,174,360 - - (386,135) 999,225Applications for shares - - 50,245 - - 50,245Share-based payments cost - - - 234,000 - 234,000Loss for the period - - - - (391,938) (391,938) At 31 December 2006 211,000 1,174,360 50,245 234,000 (778,073) 891,532 Year ended 30 June 2007 At 1 July 2006 211,000 1,174,360 - - (386,135) 999,225Issue of shares 80,000 1,920,000 - - - 2,000,000Share-based payments cost - - - 1,149,879 - 1,149,879Loss for the year - - - - (1,590,231) (1,590,231) At 30 June 2007 291,000 3,094,360 - 1,149,879 (1,976,366) 2,558,873 UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2007 31 December 2007 31 December 2006 30 June 2007 (Unaudited) (Unaudited) (Unaudited) Note £ £ £Assets Non-current assetsIntangible assets 5 518,711 445,295 509,671 Current assetsReceivables 3,366 15,802 3,366Cash and cash equivalents 1,939,257 484,448 2,071,367 1,942,623 500,250 2,074,733 Total Assets 2,461,334 945,545 2,584,404 LiabilitiesCurrent liabilitiesPayables (52,689) (54,013) (25,531) Total Liabilities (52,689) (54,013) (25,531) Net Assets 2,408,645 891,532 2,558,873 EquityCalled up share capital 291,000 211,000 291,000Share premium account 3,094,360 1,174,360 3,094,360Own shares reserve - 50,245 -Share-based payments reserve 1,149,879 234,000 1,149,879Retained losses (2,126,594) (778,073) (1,976,366) Total Equity 2,408,645 891,532 2,558,873 UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 Six months ended Six months ended Year ended 31 December 2007 31 December 2006 30 June 2007 (Unaudited) (Unaudited) (Unaudited) £ £ £Net cash outflow from operatingactivities (177,922) (179,284) (472,334) Investing activitiesInterest received 54,852 11,680 43,840Funds used for exploration (9,040) (16,547) (118,493)Net cash from/(used in)investing activities 45,812 (4,867) (74,653) Financing activitiesProceeds from issue of shares - 50,245 2,000,000 Net cash from financing - 50,245 2,000,000 (Decrease)/increase in cash and (132,110) (133,906) 1,453,013cash equivalents Cash and cash equivalents atbeginning of the period 2,071,367 618,354 618,354Cash and cash equivalents atthe end of the period 1,939,257 484,448 2,071,367 NOTES TO THE UNAUDITED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 1. Introduction In the year ended 30 June 2007, Uranium Resources plc ("the Company") and itssubsidiaries (together "Uranium") prepared its consolidated financial statementsunder UK generally accepted accounting principles ("UK GAAP"). With effect from1 July 2007, the Company is required by the AIM Rules to prepare itsconsolidated financial statements in accordance with International FinancialReporting Standards ("IFRS"). Uranium will therefore prepare both itsconsolidated financial statements and its parent company financial statementsfor the year ending 30 June 2008 in compliance with IFRS. Uranium will presentone year of comparative IFRS information for the year ended 30 June 2007, andconsequently the date of transition is 1 July 2006 ("transition date"), beingthe first day of the comparative period. The first published results to beprepared on an IFRS basis are these results for the six months ended 31 December2007, which include comparative IFRS financial statements for the six monthsended 31 December 2006. The comparative figures for the year ended 30 June 2007 prepared under IFRS arenot Uranium's statutory accounts for that financial year. Those accounts, whichwere prepared under UK GAAP, have been reported on by Uranium's auditors anddelivered to the Registrar of Companies. The report of the auditors was (i)unqualified, (ii) did not include a reference to any matters to which theauditors drew attention by way of emphasis without qualifying their report, and(iii) did not contain a statement under section 237(2) or (3) of the CompaniesAct 1985. The financial information for the six months ended 31 December 2007and 31 December 2006 is unaudited and does not constitute statutory accounts asdefined in section 240 of the Companies Act 1985. Information required by AIM Rule 26 is available in the investor relationssection of Uranium's website at www.uraniumresources.co.uk. The Company is listed on AIM, the Alternative Investment Market of the LondonStock Exchange. This Interim Report, including Uranium's consolidated financial information, wasauthorised for issue by the board of directors on 17 March 2008. 2 Summary of significant accounting policies The principal accounting policies applied in the preparation of the consolidatedfinancial information, in accordance with IFRS, are set out below. Thesepolicies have been consistently applied to all the periods presented. 2.1 Basis of preparation This interim consolidated financial information of the Company and itssubsidiaries is for the six months ended 31 December 2007. This has beenprepared in accordance with IAS 34 'Interim Financial Reporting', and is coveredby IFRS 1 'First-time adoption of IFRS', because it is part of the periodcovered by Uranium's first IFRS financial statements for the year ending 30 June2008. This interim financial information has been prepared in accordance withthose IFRS standards effective as at the time of preparing this Interim Report.The IFRS standards that will be applicable at 30 June 2008 including those thatwill be applicable on an optional basis, are not known with certainty at thetime of preparing this Interim Report. UK GAAP differs in some areas from IFRS. In preparing this consolidated interimfinancial information, the directors have amended certain accounting, valuationand consolidation methods applied in the UK GAAP financial statements to complywith IFRS. The comparative figures have been restated to reflect theseadjustments. Reconciliations and descriptions of the effect of the transition from UK GAAP toIFRS on Uranium's equity, net assets, net income and cashflows are provided innote 10. The consolidated financial information has been prepared under the historicalcost convention, on a going concern basis and in accordance with InternationalFinancial Reporting Standards, as adopted by the European Union, including IFRS6'Exploration for and Evaluation of Mineral Resources' and in accordance with theCompanies Act 1985. 2.2 Basis of consolidation The consolidated financial statements incorporate the accounts of the Companyand its subsidiaries and have been prepared by using the principles ofacquisition accounting ("the purchase method") which includes the results of thesubsidiaries from their date of acquisition. Intra-group sales, profits andbalances are eliminated fully on consolidation. 2.3 Exploration and Evaluation Expenditure All licence acquisitions and exploration and evaluation costs incurred oracquired on the acquisition of subsidiary undertaking are accumulated in respectof each identifiable project area. These costs, which are classified asintangible fixed assets are only carried forward to the extent that they areexpected to be recouped through the successful development of the areas or whereactivities in the areas have not yet reached a stage which permits reasonableassessment of the existence of economically recoverable reserves (successfulefforts). Pre-licence costs are written off immediately. Other costs are alsowritten off unless commercial reserves have been established or thedetermination process has not been completed. Accumulated costs in relation toan abandoned area are written off in full against profit in the year in whichthe decision to abandon the area is made. When production commences the accumulated costs for the relevant area ofinterest are transferred from intangible assets to tangible assets as "DevelopedUranium Assets" and amortised over the estimated life of the commercial reserveson a unit of production basis. 2.4 Impairment of Exploration and Evaluation Expenditure The carrying value of unevaluated areas is assessed on at least an annual basisor when there has been an indication that impairment in value may have occurred. The impairment of unevaluated prospects is assessed as based on the Directors'intention with regard to future exploration and development of individualsignificant areas and the ability to obtain funds to finance such explorationand development. 2.5 Impairment of Developed Uranium Assets When events or changes in circumstances indicate that the carrying amount ofdeveloped uranium assets included within tangible assets may not be recoverablefrom future net revenues from uranium reserves attributable to that asset, acomparison between the net book value of the asset and the discounted futurecash flows from the estimated recoverable uranium reserves is undertaken. To theextent that the carrying amount exceeds the recoverable amount, the asset iswritten down to its recoverable amount, with the write off charged to the profitand loss account. 2.6 Amortisation of Developed Uranium Assets Developed uranium assets are amortised on a unit of production basis using theratio of uranium production in the period to the estimated quantity ofcommercial reserves at the end of the period plus production in the period.Changes in estimates of commercial reserves or future development costs aredealt with prospectively. 2.7 Decommissioning costs Where a material liability for the removal of production facilities and siterestoration at the end of the field life exists, a provision for decommissioningis recognised. The amount recognised is the present value of estimated futureexpenditure determined in accordance with local conditions and requirements. Anasset of an amount equivalent to the provision is also created and depreciatedon a unit of production basis. Changes in estimates are recognisedprospectively, with corresponding adjustments to the provision and theassociated asset. 2.8 Share based payments The Company made share-based payments to certain directors and employees by wayof share options. The fair value of these payments is calculated by the Companyusing the Black Scholes option pricing model. The expense is recognised on astraight line basis over the period from the date of award to the date ofvesting, based on the Company's best estimate of shares that will eventuallyvest. 2.9 Foreign currency translation (i) Functional and presentational currency Items included in the Group's financial statements are measured using thecurrency of the primary economic environment in which the Group operates ("thefunctional currency"). The financial statements are presented in PoundsSterling ("£"), which is the group's functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency usingthe exchange rates prevailing at the dates of the transactions. Foreign exchangegains and losses resulting from the settlement of such transactions and from thetranslation at year end exchange rates of monetary assets and liabilitiesdenominated in foreign currencies are recognised in the income statement. Transactions in the accounts of individual Group companies are recorded at therate of exchange ruling on the date of the transaction. Monetary assets andliabilities denominated in foreign currencies are translated at the rates rulingat the balance sheet date. All differences are taken to the income statement. (iii) Group companies On consolidation, exchange differences arising from the translation of the netinvestment in foreign operations are taken to shareholders' equity as a movementof reserves. 2.10 Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost and comprisecash in hand, cash at bank, deposits held at call with banks, other short-termhighly liquid investments with original maturities of three months or less. Bankoverdrafts are included within borrowings in current liabilities on the balancesheet. For the purposes of the cash flow statement, cash and cash equivalentsalso include the bank overdrafts. 2.11 Critical accounting judgements and estimates The preparation of financial statements in conformity with InternationalFinancial Reporting Standards requires the use of accounting estimates andassumptions that affect the reported amounts of assets and liabilities at thedate of the financial statements and the reported amounts of income and expensesduring the reporting period. Although these estimates are based on management'sbest knowledge of current events and actions, actual results ultimately maydiffer from those estimates. IFRS also require management to exercise itsjudgement in the process of applying the Group's accounting policies. The prime area involving a higher degree of judgement or complexity, whereassumptions and estimates are significant to the financial statements, is asfollows: Impairment of intangible assets Determining whether intangible assets are impaired requires an estimation ofwhether there are any indications that its carrying value is not recoverable. 3 Segmental reporting For the purposes of segmental information, the operations of the Group arefocused on Africa and comprise one class of business: the exploration andevaluation for uranium. The Company acts as a holding Company. The Group's operating loss arose from its operations in Africa. In addition, allthe Group's assets (except for current assets which are based in Europe) arebased in Africa. 4. Loss per share The basic loss per share has been considered using the loss attributable toequity shareholders for the financial period of £150,228 (December 2006:£391,938; 30 June 2007: £1,590,231) and the weighted average number of ordinaryshares in issue of 291,000,000 (31 December 2006: 211,000,000; 30 June 2007:247,848,219). The diluted loss per share has been considered using a weighted average numberof shares in issue and to be issued of 317,125,761 (30 June 2007: 260,552,740,31 December 2006: 211,000,000). The diluted loss per share has been kept thesame as the basic loss per share as the conversion of share options decreasesthe basic loss per share, thus being anti-dilutive. 5. Intangible assets The Group's intangible asset consists entirely of exploration and evaluationexpenditure capitalised. The exploration and evaluation ("E&E") asset representscosts incurred in relation to the Group's Tanzanian licences. These amounts havenot been written off to the income statement as exploration expenses, ascommercial reserves have not yet been established or the determination processhave not been completed, and there are no indicators of impairment. The outcomeof ongoing exploration and evaluation, and therefore whether the carrying valueof E&E assets will ultimately be recovered, is inherently uncertain. TheDirectors have assessed the value of the uranium exploration and evaluationexpenditure carried as intangible assets and in their opinion no provision forimpairment is currently necessary. 6. Subsidiary undertakings Name of company Proportion held Principal activity Deep Yellow Tanzania Limited 100% Uranium exploration URA (St Henri) Limited 100% Applied for exploration licences 7. Decommissioning expenditure The Directors have considered the need for any necessary provision for the costof rectifying any environmental damage, as might be required under locallegislation and the Group's licence obligations. In their view, no provision isnecessary at 31 December 2007, for any future costs of decommissioning or anyenvironmental damage. 8. Exploration expenditure commitments In order to maintain an interest in the uranium permits in which the Group isinvolved, the Group is committed to meet the conditions under which the permitswere granted. The timing and amount of exploration expenditure commitments andobligations of the Group are subject to the work programme required as per thepermit commitments and may vary significantly from the forecast based upon theresults of the work performed. Exploration results in any of the projects mayalso result in variation of the forecast programmes and resultant expenditure.Such activity may lead to accelerated or decreased expenditure. It is theGroup's policy to seek joint operating partners at an early stage so as toreduce its commitments. 31 December 2007 £The Group's exploration commitments are:Within one year 662,681Between one and two years 883,291 1,545,972 9. Material events subsequent to the end of the interim period There has been no matter or circumstance that has arisen, since the 31 December2007 and up to the date of this report, that has significantly affected, or maysignificantly affect: a) the Group's operations in future financial years, or b) the results of those operations in future financial years, or c) the Group's state of affairs in future financial years. 10. Transition from UK GAAP to IFRS Uranium's first published results, which have been prepared on an IFRS basis,are these results for the six months ended 31 December 2007, which includecomparative IFRS financial information for the six months ended 31 December2006 and the year ended 30 June 2007. Set out below are extracts from Uranium's consolidated financial statements forthe year ended 30 June 2007 and the consolidated financial information for thesix months ended 31 December 2006 restated in accordance with IFRS including theincome statements and balance sheets showing in each case the equivalentstatement under UK GAAP and reconciliations between UK GAAP and IFRS. Thesestatements constitute preliminary comparative IFRS financial information in thecontext of the financial information for the six months ended 31 December 2007.This note also includes Uranium's balance sheet under IFRS at the transitiondate (1 July 2006), together with a reconciliation to the originally publishedUK GAAP balance sheet at that date. Cash flow statements have not been preparedas there are no adjustments. There are no changes to the parent company's financial information resultingfrom the transition from UK GAAP to IFRS at the transition date of 1 July 2006and for the six months ended 31 December 2006 and the year ended 30 June 2007,therefore, no financial information is shown below for the company. The changes on the transition to IFRS arise from the following principalfactors: (i) Presentation of financial information Presentation has been changed to be in compliance with IAS 1 "Presentation ofFinancial Statements" and terminology has also been changed to reflect headingsused in IFRS. The cash flow statements are presented in accordance with IAS 7 "Cash FlowStatements". Cash flows have been grouped under three main headings, cash flowsfrom operating, investing and financing activities; these headings differ fromthose presented under UK GAAP. (ii) IFRS 3 "Business Combinations" Under IFRS, goodwill arising on acquisition is capitalised and subject to anannual impairment review. Under UK GAAP, goodwill was amortised over itsestimated useful life. Consequently under IFRS, this amortisation charge hasbeen reversed from the consolidated income statement and added back to the netbook value of goodwill. IFRS 1 "First-time Adoption of International Financial Reporting Standards"permits companies adopting IFRS for the first time to take certain exemptionsfrom the full requirements of IFRS in the transition period. The interimfinancial information has been prepared on the basis of the following materialexemptions: Net book value as deemed cost IFRS 1 does not require a company to recreate cost information for property,plant and equipment and goodwill. The group's net book value of goodwill at 1July 2006 is the deemed cost under IFRS going forward. Accounting estimates IFRS 1 prohibits the use of hindsight to correct estimates made under previousUK GAAP unless there is objective evidence of error. The group used the sameestimates made under UK GAAP for the opening IFRS balance sheet at 1 July 2006. Statement of directors' responsibilities The directors consider, in preparing the preliminary comparative IFRS financialinformation, that the company and the group have used appropriate accountingpolicies, consistently applied and supported by reasonable and supportablejudgements and estimates; and these accounting principles include theassumptions the directors have made about the standards and interpretationsexpected to be effective, and the policies expected to be adopted, when theyprepare the first complete set of IFRS financial statements for the year ending30 June 2008. All accounting standards which the directors consider to beapplicable have therefore been followed including the preparation of thepreliminary comparative IFRS financial information. Balance sheet at 1 July 2006 (date of transition) UK GAAP Effect of IFRS transition to IFRS £ £ £AssetsNon-current assetsIntangible assets 363,470 27,708 391,178 Current assetsTrade and other receivables 2,182 - 2,182Cash and cash equivalents 618,354 - 618,354 620,536 - 620,536Total assets 984,006 27,708 1,011,714 LiabilitiesCurrent liabilitiesTrade and other payables (12,489) - (12,489) Total liabilities (12,489) - (12,499)Net assets 971,517 27,708 999,225 EquityShare capital 211,000 - 211,000Share premium account 1,174,360 - 1,174,360Retained losses (413,843) 27,708 (386,135)Total equity and reserves 971,517 27,708 999,225 The above adjustment relates to the reversal of amortisation of goodwill. Balance sheet at 31 December 2006 (comparative interim date) UK GAAP Effect of IFRS transition to IFRS £ £ £AssetsNon-current assetsIntangible assets 400,087 45,208 445,295 Current assetsTrade and other receivables 15,502 - 15,502Cash and cash equivalents 484,448 - 484,448 500,250 - 500,250Total assets 900,337 45,208 945,545 Liabilities Current liabilitiesTrade and other payables (54,013) - (54,013) Non-current liabilitiesProvisions for liabilities and charges (24,000) - (24,000) Total liabilities (78,013) - (78,013)Net assets 822,324 45,208 867,532 EquityShare capital 211,000 - 211,000Share premium account 1,174,360 - 1,174,360Own shares reserve 50,245 - 50,245Share based payments reserve 234,000 - 234,000Retained losses (847,281) 45,208 (802,073)Total equity and reserves 822,324 45,208 867,532 The above adjustment relates to the reversal of the amortisation of goodwill. Balance sheet at 30 June 2007 (comparative year end date) UK GAAP Effect of IFRS transition to IFRS £ £ £AssetsNon-current assetsIntangible assets 509,671 - 509,671 Current assetsTrade and other receivables 3,366 - 3,366Cash and cash equivalents 2,071,367 - 2,071,367 2,074,733 - 2,074,733Total assets 2,584,404 - 2,584,404 LiabilitiesCurrent liabilitiesTrade and other payables (25,531) - (25,531)Total liabilities (25,531) - (25,531)Net assets 2,558,873 - 2,558,873 EquityShare capital 291,000 - 291,000Share premium account 3,094,360 - 3,094,360Share-based payments reserve 1,149,879 - 1,149,879Retained losses (1,976,366) - (1,976,366)Total equity and reserves 2,558,873 - 2,558,873 Income statement for the six months ended 31 December 2006 (comparative interimperiod) UK GAAP Effect of IFRS transition to IFRS £ £ £Revenue - - -Cost of sales - - -Gross profit - - -Administrative expenses (169,618) - (169,618)Amortisation of goodwill (17,500) 17,500 -Share-based payments charge (258,000) - (258,000)Operating loss (445,118) 17,500 (427,618)Interest receivable 11,680 - 11,680Loss before tax (435,438) 17,500 (415,938)Tax - - -Loss for the period (433,438) 17,500 (415,938) Income statement for the year ended 30 June 2007 (comparative annual period) UK GAAP Effect of IFRS transition to IFRS £ £ £Revenue - - -Cost of sales - - -Gross profit - - -Administrative expenses (456,484) (27,708) (484,192)Share-based payments charge (1,149,879) - (1,149,879)Operating loss (1,606,363) (27,708) (1,634,071)Interest receivable 43,840 - 43,840Loss before tax (1,562,523) - (1,590,231)Tax - - -Loss for the period (1,562,523) (27,708) (1,590,231) 11. Further copies of the interim report Further copies of this interim report are available at the Uranium Resources plcregistered office at One America Square, Crosswall, London EC3N 2SG. **ENDS** For further information please visit www.uraniumresources.co.uk or contact: James Pratt Uranium Resources plc Tel: 07747 832 043 Ross Warner Uranium Resources plc Tel: 07760 487 769 Hugh Warner Uranium Resources plc Tel: +33 677 797 372 Hugh Oram Nabarro Wells & Co Ltd Tel: 020 7710 7400 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177 Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7236 1177 This information is provided by RNS The company news service from the London Stock Exchange