Uranium Resources Announces Start of Phase II Drilling at Los Finados Project

Uranium Resources, Inc. (NASDAQ: URRE) (URI), announced today that
Cameco Resources ('Cameco?) has elected to move forward with Phase II of
the three phase exploratory program on the 54,847 acres in Kenedy
County, Texas, known as the 'Los Finados Project.? The second phase of
drilling will begin in December 2011 and is expected to be completed by
the end of November 2012. URI has decided to commit an additional $1.5
million in exploration activities during the twelve-month period ended
November 30, 2012, in order to maintain the option to lease the
property. Under Phase II of the agreement with URI, Cameco will fund
$1.0 million toward those exploration activities and will earn an
additional 10% interest in Los Finados, raising its interest in the
project to 50%. Cameco may elect to fund the entire $1.5 million by
moving into Phase III of the program.

Don Ewigleben, President and CEO of URI, commented, 'One of our stated
goals in Texas is to develop a larger reserve base, and ultimately
maximize production in South Texas. Having Cameco opt into the next
phase of work strengthens our expectations regarding the potential of
commercially viable resources in the district.?

In May 2011, URI entered into a joint venture agreement with Cameco for
a three-phase, three-year exploration program on the Los Finados
property. The first phase of the drilling program began on June 21 and
will be completed by November 30 at a cost of approximately $1 million.
A total of 19 holes totaling 24,560 feet have been drilled. Phase I
exploratory work used a widely spaced drilling program covering a grid
designed to test the potential for uranium mineralization over the
54,847 acre area.

Under the terms of the exploration agreement, Cameco can earn an
additional 20% interest in the property in consideration for an
additional $1.5 million investment in exploration and development
expenses associated with the third and final phase of the project. At
the conclusion of the exploration program, the parties may enter into an
operating joint venture to develop and produce any discovered uranium
resources and reserves. The uranium would be processed at URI′s
Kingsville Dome or Rosita processing facility, with Cameco′s share of
production being processed under a toll processing agreement with URI.

About Cameco Resources

Cameco Resources of Cheyenne is America′s largest uranium producer and
comprises the US operations of Cameco Corporation of Saskatoon,
Saskatchewan, Canada (NYSE:CCJ), which is one of the world′s largest
uranium producers. Cameco Resources has about 350 employees and
full-time contractors at its Wyoming and Nebraska mines, its exploration
and development office in Casper, and its headquarters in Cheyenne.

About Uranium Resources, Inc.

Uranium Resources Inc. explores for, develops and mines uranium. Since
its incorporation in 1977, URI has produced more than 8 million pounds
of uranium by in-situ recovery (ISR) methods in the state of Texas where
the Company currently has ISR mining projects. URI also has 183,000
acres of uranium mineral holdings and 101.4 million pounds of in-place
mineralized uranium material in New Mexico and a NRC license to produce
up to 1 million pounds of uranium per year. The Company acquired these
properties over the past 20 years along with an extensive information
database of historic mining logs and analysis. None of URI′s properties
is currently in production.

URI′s strategy is to fully exploit its resource base in New Mexico and
Texas, expand its asset base both within and outside of New Mexico and
Texas, partner with larger mining companies that have undeveloped
uranium or with junior mining companies that do not have the mining
experience of URI, as well as provide restoration expertise to those
that require the capability or lack the proficiency.

Uranium Resources routinely posts news and other information about the
Company on its Web site at www.uraniumresources.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to risks, uncertainties and assumptions and are
identified by words such as 'expects,? 'estimates,? 'projects,?
'anticipates,? 'believes,? 'could,? and other similar words. All
statements addressing operating performance, events, or developments
that the Company expects or anticipates will occur in the future,
including but not limited to statements relating to the Company′s
mineralized uranium materials, timing of receipt of mining permits,
production capacity of mining operations planned for properties in South
Texas and New Mexico, planned dates for commencement of production at
such properties, revenue, cash generation and profits are
forward-looking statements. Because they are forward-looking, they
should be evaluated in light of important risk factors and
uncertainties. These risk factors and uncertainties include, but are not
limited to, the spot price and long-term contract price of uranium,
weather conditions, operating conditions at the Company′s mining
projects, government regulation of the mining industry and the nuclear
power industry, world-wide uranium supply and demand, availability of
capital, timely receipt of mining and other permits from regulatory
agents and other factors which are more fully described in the Company′s
documents filed with the Securities and Exchange Commission. Should one
or more of these risks or uncertainties materialize, or should any of
the Company′s underlying assumptions prove incorrect, actual results may
vary materially from those currently anticipated. In addition, undue
reliance should not be placed on the Company′s forward-looking
statements. Except as required by law, the Company disclaims any
obligation to update or publicly announce any revisions to any of the
forward-looking statements contained in this news release.

Kei Advisors LLC

Investors:

Deborah K. Pawlowski,
716.843.3908

dpawlowski@keiadvisors.com

or

Media:

Mat
Lueras, 505.269.8317

Vice President, Corporate Development

mlueras@uraniumresources.com

or

Company:

Don
Ewigleben, 972.219.3330

President & Chief Executive Officer