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Uranium Resources, Inc. Reports 2010 First Quarter Results

LEWISVILLE, Texas, May 10, 2010 (BUSINESS WIRE) -- Uranium Resources, Inc.

(NASDAQ: URRE) (URI), today provided an update on the Company's financial position for the first quarter of 2010, which ended March 31, 2010, and on its outlook and strategies for the future.

Liquidity Update Cash at March 31, 2010 was $3.8 million compared with $6.1 million at the end of 2009. The Company used $2.0 million in cash in operations during the first quarter of 2010 compared with $1.8 million used in operations in the trailing fourth quarter of 2009. This increase in cash used in operations was the result increased legal costs and the lack of revenue as a result of the decision to wind down operations in South Texas due to the decline in the price of uranium.

Mr. Ewigleben commented, "Conserving cash is and has been our number one priority since we began to wind down production in 2008. We have targeted a core cash burn rate of $500,000 per month, or $6 million annually, however legal expenses and project-related costs in South Texas have been higher than anticipated. We estimate that annual expenditures associated with restoration are $1.3 million. We will continue to pursue our target monthly burn rate, but recognize that although it may be attainable, it may not be sustainable in light of these unavoidable non-recurring expenses." He continued, "We are currently in the final stages of evaluating several options to enhance our cash position and expect to make that decision in the very near future. Last week, we filed a shelf registration in order to provide us the flexibility to move quickly should the opportunity arise to raise funds to return to production in South Texas when the uranium price recovers. Proceeds would also be used to continue the exploration and development of our New Mexico properties. However, should we be unable to raise additional capital in the near term, we are prepared to take appropriate measures to ensure we are liquid through 2010." En Banc Review Update URI hopes to receive in the near future a decision from the en banc Tenth Circuit Court of Appeals regarding jurisdiction over the issuance of the underground injection permit (UIC) required for the Company's Churchrock and Crownpoint projects. Should the court determine that the state of New Mexico has jurisdiction, URI would be able to move forward with its development plans at these projects, where the Company holds over 33 million pounds of non-reserve mineralized material. Should the panel rule that the United States EPA has permitting authority, URI could move forward by requesting a UIC permit from the USEPA. In either event, the non-prevailing party has the option of petitioning the United States Supreme Court to hear the case.

Mr. Ewigleben continued, "We were very encouraged earlier this year by the Tenth Circuit's decision affirming the validity of our NRC license in New Mexico. With our valid license, we can now move forward with a feasibility study which is required to secure financing for the Churchrock and Crownpoint projects. We are the only uranium company with a valid NRC license in New Mexico, which puts us years ahead of our competition." Q1 2010 Operations Review The table below highlights financial results for the 2010 first quarter.

(In millions, except per share amounts) Q1 2010 Q1 2009 I P nc. ercent (Dec.) Change ------------------- ------------------- --------- --------- Total revenue $ - $ 1.4 $ (1.4 ) -100.0 % Cost of uranium sales 0.6 1.6 (1.0 ) -62.5 % Corporate expenses 1.8 1.5 0.3 20.0 % Net loss (2.3 ) (1.6 ) (0.7 ) 43.8 % Net loss per diluted share (0.04 ) (0.03 ) (0.01 ) 33.3 % U RANIUM RESOURCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) M D arch 31, ecember 31, 2010 2009 ----------------- ----------------- (Unaudited) Current assets: Cash and cash equivalents $ 3,845,435 $ 6,092,068 Receivables, net 3,369 63,890 Prepaid and other current assets 208,412 125,400 ------------ ------------ Total current assets 4,057,216 6,281,358 ------------ ------------ Property, plant and equipment, at cost: Uranium properties 81,536,814 82,212,719 Other property, plant and equipment 926,790 886,992 Less-accumulated depreciation, depletion and impairment (63,654,968 ) (64,155,311 ) ------------ ------------ Net property, plant and equipment 18,808,636 18,944,400 Long-term investment: Certificates of deposit, restricted 6,802,344 6,786,000 ------------ ------------ $ 29,668,196 $ 32,011,758 ===== ============ ===== ============ Current liabilities: Accounts and short term notes payable $ 592,436 $ 641,727 Current portion of restoration reserve 1,249,200 1,236,588 Royalties and commissions payable 666,058 693,303 Deferred compensation 697,028 - Accrued interest and other accrued liabilities 313,099 321,235 Current portion of capital leases 99,373 112,559 ------------ ------------ Total current liabilities 3,617,194 3,005,412 ------------ ------------ Other long-term liabilities and deferred credits 4,626,682 5,487,389 Long term capital leases, less current portion 185,926 207,922 Long-term debt, less current portion 450,000 450,000 Commitments and contingencies Shareholders' equity: Common stock, $.001 par value, shares authorized: 200,000,000; 56,886 5 shares issued and outstanding (net of treasury shares): 6,820 2010--56,847,612; 2009--56,781,792 Paid-in capital 148,112,647 147,837,204 Accumulated deficit (127,371,721 ) (125,023,571 ) Less: Treasury stock (38,125 shares), at cost (9,418 ) (9,418 ) ------------ ------------ Total shareholders' equity 20,788,394 22,861,035 ------------ ------------ $ 29,668,196 $ 32,011,758 ===== ============ ===== ============ U RANIUM RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, --------------------------------- 2010 2009 ----------------- ----------------- Revenues: Uranium sales $ -- $ 1,422,390 ----- ---------- ----- ---------- Total revenue -- 1,422,390 Costs and expenses: Cost of uranium sales-- Royalties and commissions -- 138,715 Operating expenses 141,858 869,949 Accretion/amortization of restoration reserve 37,407 144,002 Depreciation and depletion 197,487 231,294 Impairment of uranium properties 210,447 182,374 Exploration expenses -- 773 ----------------- ----------------- Total cost of uranium sales 587,199 1,567,107 ----------------- ----------------- Loss from operations before corporate expenses (587,199 ) (144,717 ) Corporate expenses-- General and administrative 1,723,233 1,441,295 Depreciation 35,016 35,137 ----------------- ----------------- Total corporate expenses 1,758,249 1,476,432 ----------------- ----------------- Loss from operations (2,345,448 ) (1,621,149 ) Other income (expense): Interest expense (7,923 ) (11,228 ) Interest and other income, net 5,221 58,712 ----------------- ----------------- Net loss $ (2,348,150 ) $ (1,573,665 ) ===== ========== ===== ========== Net loss per common share: Basic $ (0.04 ) $ (0.03 ) ===== ========== ===== ========== Diluted $ (0.04 ) $ (0.03 ) ===== ========== ===== ========== Weighted average common shares and common equivalent shares: Basic 56,845,418 56,096,644 ================= ================= Diluted 56,845,418 56,096,644 ================= ================= U RANIUM RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, --------------------------------- 2010 2009 ----------------- ----------------- Net loss $ (2,348,150 ) $ (1,573,665 ) Reconciliation of net earnings to cash used in operations-- Accretion/amortization of restoration reserve 37,407 144,002 Depreciation and depletion 232,503 266,431 Impairment of uranium properties 210,447 182,374 Decrease in restoration and reclamation accrual (349,549 ) (586,437 ) Stock compensation expense 275,509 159,736 Other non-cash items, net 14,283 -- Effect of changes in operating working capital items-- Decrease in receivables 60,521 36,211 Decrease in inventories -- 234,714 (Increase) decrease in prepaid and other current assets (83,012 ) 179,969 Decrease in payables, accrued liabilities and deferred credits (84,672 ) (691,326 ) ----------------- ----------------- Net cash used in operations (2,034,713 ) (1,647,991 ) Investing activities: Increase in certificates of deposit, restricted (16,344 ) (43,067 ) Additions to property, plant and equipment-- Kingsville Dome (84,141 ) (68,015 ) Vasquez -- (71,288 ) Rosita (5,945 ) (14,503 ) Churchrock (70,200 ) (7,261 ) Other property (108 ) (10,030 ) ----------------- ----------------- Net cash used in investing activities (176,738 ) (214,164 ) Financing activities: Payments on borrowings (35,182 ) (42,405 ) ----------------- ----------------- Net cash used in financing activities (35,182 ) (42,405 ) ----------------- ----------------- Net decrease in cash and cash equivalents (2,246,633 ) (1,904,560 ) Cash and cash equivalents, beginning of period 6,092,068 12,041,592 ----------------- ----------------- Cash and cash equivalents, end of period $ 3,845,435 $ 10,137,032 ===== ========== ===== ========== SOURCE: Uranium Resources, Inc.

CONTACT: Investor Contact: Kei Advisors LLC Deborah K. Pawlowski/James M. Culligan 716-843-3908/ 716-843-3874 dpawlowski@keiadvisors.com/jculligan@keiadvisors.com or Uranium Resources, Inc. Media Contact: April Wade, 505-440-9441 awade@uraniumresources.com Company Contact: Don Ewigleben, President & Chief Executive Officer 972-219-3330 Copyright Business Wire 2010 -0- KEYWORD: United States

North America

Texas INDUSTRY KEYWORD: Natural Resources

Mining/Minerals SUBJECT CODE: Earnings

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