Uranium Resources, Inc. to Begin Drilling in Historic Grants Mineral Belt

Thursday, Aug 26, 2010

Uranium Resources, Inc. (NASDAQ: URRE) (“URI”) announced today that the Company expects to begin drilling on its Section 13 property in Ambrosia Lake in early September. Stewart Brothers Drilling Company of Milan, New Mexico, has been contracted by URI to conduct the drilling. The objective of the drilling activity is to evaluate the suitability of the property for in-situ recovery (“ISR”) mining.

“As part of our commitment to New Mexico, we intend to hire local businesses whenever possible. Stewart Brothers has expertise in the region’s geology, a reputation for quality work and experience in the Grants Mineral Belt”

“As part of our commitment to New Mexico, we intend to hire local businesses whenever possible. Stewart Brothers has expertise in the region’s geology, a reputation for quality work and experience in the Grants Mineral Belt,” said Don Ewigleben, President and Chief Executive Officer of URI.

URI received an exploration permit from the New Mexico Mining and Minerals Division in November 2008 to drill on Section 13. The permit, which was renewed in July 2010, allows URI to drill up to ten holes for the purpose of extracting core samples until November 2011.

“This drilling project is part of our strategy to advance to production in New Mexico where we have over 100 million pounds of in-place, mineralized uranium material. This project, combined with two recent rulings by the Tenth Circuit Court, represent considerable steps toward a strong future in uranium production for us, as well as the resurgence of the uranium industry in New Mexico,” commented Mr. Ewigleben.

In recent months the Tenth Circuit reached decisions that upheld URI’s Nuclear Regulatory Commission license and found the Company’s Section 8 property in Churchrock is not Indian Country. The opposing parties have the right to petition the Supreme Court for review on both decisions by mid-September.

In a region known as Ambrosia Lake, URI’s Section 13 property is located in McKinley County, approximately ten miles northeast of Grants. URI has approximately 2.4 million pounds of in-place, mineralized uranium material in the Ambrosia Lake district.

Source: Business Wire