Uranium Resources, Inc. Provides First Quarter 2012 Update

Uranium Resources, Inc. (NASDAQ: URRE) ('URI? or the 'Company?), today
provided an update on the Company′s activities, its liquidity position
and its strategy and outlook for 2012.

Don Ewigleben, President and CEO of URI, commented, 'We had quite an
eventful first quarter as we entered into a merger agreement to acquire
Neutron Energy, Inc. ('Neutron?) in a stock-for-stock transaction,
announced a financing agreement that infused $10 million into URI and
kicked off a number of ongoing development activities that will position
the Company for future production.

'Our near-term priorities are focused on the advancement of Churchrock
Section 8, including the evaluation of the financing component for our
construction activities and continued discussions with the royalty
holders on our Section 8 land.?

Texas Exploration Continuing, Reclamation Stabilization in
Progress, and Pond Activities Progressing

• 
  Phase II work on the joint Los Finados exploration project with Cameco
  started in December 2011 and is scheduled to be completed in November
  2012. Under Phase II, 9 holes have been drilled at an average depth of
  1,300 feet, as well as 6 shallow offset holes. The plan in Phase II is
  to drill 10 deep holes as well as 34 shallow offset holes. Of the
  total $1.5 million that was committed by URI to complete Phase II, $1
  million is being funded by Cameco who currently has earned a 40%
  interest in the project and will have 50% interest after Phase II
  completion.
  
• 
  URI initiated refurbishment of existing equipment on its Kingsville
  Dome holding ponds to restore full operating activity and extend the
  operational lifetime. To date, completed work includes the
  installation of a filter press, installation and testing of process
  pumps and various structural updates including electrical and steel
  work, installation of chemical lines and tanks and bringing the dryer
  up to full operational capacity. The pond efforts are expected to cost
  approximately $2.9 million and continue through the end of the year.
  URI believes it may able to generate up to 40,000 to 50,000 pounds of U₃O₈
  as a by-product of this activity.
  
• 
  URI has processed approximately 4.3 billion gallons of water
  associated with the restoration activities at its three most recent
  South Texas projects through the end of the first quarter. The first
  round of stability water sample testing occurred during the first
  quarter at Kingsville Dome (KVD) production areas PA1 and PA2.
  Groundwater restoration has been completed at the Rosita PA1 and PA2
  well fields which are currently being monitored for stability. Final
  closure on these areas is expected by the third quarter of 2012.
  Restoration activities continue at KVD PA3 and Vasquez PA1 and PA2.
  

Churchrock Section 8 Feasibility Study Finalized; Neutron
Acquisition Announced

• 
  One of URI′s primary focuses in New Mexico continues to be the
  advancement of its Churchrock Section 8 deposit toward production in
  the latter part of 2013. This area contains 6.5 million pounds of
  in-place non-reserve mineralized uranium material and is covered by
  the Company′s underground injection control permit and reactivated NRC
  license which covers 27.4 million pounds of in-place mineralized
  uranium material for the Company′s Churchrock/Crownpoint Project.
  

URI commissioned an independent engineering firm to validate the
economic viability of the property and create future plans of moving
this property into production.

The third-party engineering firm concluded that it is an economically
viable project requiring an estimated $50 million in capital
expenditures to commence production. The Company is currently evaluating
the best approach to raising the needed capital for the total project,
preparing equipment orders, evaluating construction plans and preparing
bids for construction activities.

Once access has been resolved, current plans are to begin infrastructure
construction the second half of 2012. After production commences, loaded
resin will be transported to either URI′s Kingsville Dome or Rosita
processing facility in Texas. This is to accelerate production, utilize
existing URI infrastructure, reduce additional capital costs and advance
cash flow from the Churchrock Section 8 project.

The total project involves seven well fields that will have in aggregate
approximately 1,000 wells including monitoring wells. The well fields
will be brought on in phases as they are depleted to provide for
continuous uranium production. Of significance is the first wellfield,
which will be the first to move to the restoration process.
Demonstration of commercial restoration is required for URI to expand
its production authorization under its NRC license from 1 million pounds
per year to 3 million pounds per year.

• 
  On April 5, 2012, URI′s wholly-owned subsidiary, Hydro Resources,
  Inc., received a Notice of Violation and Order to comply with the
  Navajo Nation Civil Trespass Act (the 'Order?) from the Navajo Nation
  Division of Natural Resources. The Order assessed a $50 civil
  assessment for alleged trespasses on Section 9 and asserts that the
  Company′s Section 8 Churchrock property cannot be reached without
  crossing either Section 9 or Section 17, both of which are Trust
  Lands. The Company has entered into a Tolling Agreement that provides
  for extended discussions with Navajo officials.
  
• 
  URI has discussed a proposal for construction of a highway turnout
  providing safe access to the Section 8 project with the New Mexico
  Department of Transportation. The proposal will also require being
  submitted and approved by the Navajo Nation, after which construction
  may begin.
  
• 
  In June 2011, URI received confirmation from the New Mexico
  Environment Department ('NMED?) that its discharge plan is in timely
  renewal and that the NMED is currently conducting technical review of
  its renewal application. A Complaint for Declaratory and Injunctive
  Relief and a Motion for Preliminary Injunction that was filed by a
  petitioner against the timely renewal confirmation has been postponed
  by the courts with no future date yet set.
  

On March 1, 2012, the Company announced the signing of a definitive
agreement to acquire 100% of the equity of Neutron Energy, Inc. in a
stock-for-stock transaction. It also executed a financing agreement with
Resource Capital Fund V L.P. ('RCF?) in conjunction with the
transaction. The acquisition requires URI′s and Neutron′s shareholder
approval and, assuming all closing conditions are met, is expected to
close in the third quarter of 2012.

• 
  This transaction would position URI as one of the largest uranium
  development companies in the U.S. The acquisition includes assets
  located in the Grants Mineral Belt of New Mexico including the
  Cebolleta and Juan Tafoya projects and brings over 18 million tons of
  non-reserve mineralized material at a weighted average grade of 0.15%.
  Combined, the companies will have over 206,000 acres of uranium
  holdings in New Mexico.
  
• 
  URI intends to file a Form S-4 registration statement including a
  joint proxy statement and prospectus with the SEC in connection with
  the Neutron acquisition.
  

Liquidity Position Strengthened

Cash at March 31, 2012, was $9.9 million compared with $2.9 million at
December 31, 2011. The increase was primarily due to the $10 million in
cash associated with the sale of shares of the Company′s common stock to
RCF in a financing transaction in March. URI, at its option, can receive
an additional $5 million through the sale of additional shares to RCF at
the closing of the Neutron merger.

As part of the merger agreement, URI supplied Neutron with $0.9 million
in cash for their first quarter budget, ended March 31, 2012, and
expects it will fund an additional $2.2 million for the second quarter
of 2012. As of April 30, 2012, URI had $7.0 million in cash.

During January 2012, 1,815,073 shares of common stock were sold for
approximately $1.5 million under the Company′s existing At-The-Market
Sales Agreement ('ATM?) with BTIG, LLC. URI has a total of $12.9 million
available for future sales under the ATM.

Teleconference and Webcast

URI will host a conference call and webcast on May 11, 2012 at 11:00
a.m. ET. During the call, management will provide an update on URI′s
strategies, outlook, and progress in advancing its Texas and New Mexico
properties. A question-and-answer session will follow.

The URI conference call can be accessed by dialling (201) 689-8471. The
live listen-only audio webcast can be monitored on the Company′s website
at www.uraniumresources.com,
where it will be archived afterwards.

A telephonic replay will be available from 2:00 p.m. ET the day of the
teleconference until Friday, May 18, 2012. To listen to the archived
call, dial (858) 384-5517 and enter replay pin number 392801. A
transcript will also be placed on the Company′s website, once available.

About Uranium Resources, Inc.

Uranium Resources Inc. explores for, develops and mines uranium. Since
its incorporation in 1977, URI has produced over 8 million pounds of
uranium by in-situ recovery (ISR) methods in the state of Texas. 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 an 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 drill hole logs, assay
certificates, maps and technical reports. None of URI′s properties is
currently in production.

URI′s strategy is to fully develop 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 assets 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 website at www.uraniumresources.com.

Additional Information

Uranium Resources, Inc., a Delaware corporation ('URI?) entered into,
among other transaction documents, a definitive merger agreement on
March 1, 2012, by and among URI, URI Merger Corporation, a Nevada
corporation and an indirect wholly-owned subsidiary of URI ('Merger
Sub?), and Neutron Energy, Inc., a Nevada corporation ('Neutron?) under
which Merger Sub will be merged with and into Neutron, with Neutron
continuing as the surviving corporation and becoming an indirect
wholly-owned subsidiary of URI (the 'Transaction?). In connection with
the proposed Transaction, URI will file a registration statement on Form
S-4, a joint proxy statement/prospectus and other relevant documents
with the Securities and Exchange Commission (the 'SEC?). Stockholders
are urged to read the registration statement and joint proxy
statement/prospectus when they become available, and any other relevant
documents filed with the SEC, as well as any amendments or supplements
to those documents, because they will contain important information. The
registration statement and joint proxy statement/prospectus, once
available, as well as other filings containing information about URI and
Neutron, can be obtained without charge at the SEC′s website (http://www.sec.gov)
or by directing a request to URI: Deborah K. Pawlowski, 716.843.3908, dpawlowski@keiadvisors.com.

URI and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the stockholders of URI
in connection with the proposed Transaction. Information about the
directors and executive officers of URI is set forth in the proxy
statement for URI′s 2012 annual meeting of stockholders, as filed with
the SEC on April 30, 2012. Additional information regarding the
interests of those participants and other persons who may be deemed
participants in the proposed Transaction may be obtained by reading the
joint proxy statement/prospectus regarding the proposed Transaction when
it becomes available. Investors may obtain free copies of these
documents as described above.

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, access to properties, 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, receiving shareholder approval of the Neutron transaction,
realizing the benefits of the merger and resource development synergies,
the exploration upside of the acquired properties, the Company′s ability
to acquire other properties, the benefit of permitting on private lands,
the effect of additional major investors with mining investment
experience, 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.

TABLES FOLLOW.

Investors:

Kei Advisors LLC

Deborah K. Pawlowski,
716-843-3908

dpawlowski@keiadvisors.com

or

Media:

Uranium
Resources, Inc.

Mat Lueras, 505-269-8317

Vice President,
Corporate Development

mlueras@uraniumresources.com

or

Company:

Uranium
Resources, Inc.

Don Ewigleben, 972-219-3330

President & Chief
Executive Officer