Uranium Resources Expands and Extends Joint Venture with Cameco

Uranium Resources, Inc. (NASDAQ: URRE) (URI) today announced the
expansion and extension of its South Texas exploration agreement with
Cameco Texas, Inc. (Cameco), a subsidiary of Power Resources, Inc.,
which is a subsidiary of Cameco Corporation (NYSE: CCJ). Additionally,
the Company signed an amendment to its uranium mining lease option in
Kenedy County, Texas for the Tecolote tract, approximately 22,700 net
acres that will be a part of the exploration program.

'The amendment of our exploration joint venture into Tecolote is
significant for many reasons,? stated Terence J. Cryan, Interim
President and CEO of URI. 'Cameco′s commitment to a 70% interest in the
program with the addition of the new property underlies our belief of
its stronger potential and our commitment to developing uranium in South
Texas. We remain encouraged by the opportunities in the area and believe
Tecolote will provide us a platform to grow our assets in South Texas
and capitalize on our two processing plants in the region.?

Under the terms of the amended exploration agreement, both parties have
agreed to extend the exploration agreement to a five-phase, five-year
exploration program to include Tecolote. Cameco has committed $4.3
million to increase its interest to 70% in the expanded program. Cameco
will fund and be the exploration operator for Phase III.

In addition to adding the 22,700 acres of Tecolote, the lease option
amendment extended the original lease to 60 months with the election
date to lease the acreage for production now being November 30, 2015. It
requires a minimum exploration obligation of $1.0 million, or 100
exploration wells during Phase III. Phase IV and Phase V require $1.5
million, or 150 exploration wells, and $2.0 million, or 200 exploration
wells, respectively. Investment or drilling in excess of the minimum
requirement in any year counts toward the following year′s requirements.

Tecolote is located within the prolific South Texas uranium district
which has been a major producer of uranium for half a century. Situated
near uranium mining operations which produce from the Goliad Formation,
the property also hosts several oil and gas fields and is bisected by a
major depositional channel system. These provide the geologic,
stratigraphic, and geochemical components for uranium deposition and
water-saturated host sand with good rock permeability.

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 has
over 206,600 acres of uranium mineral holdings and 152.9 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. URI has
an additional 1.3 million pounds of in-place mineralized uranium
material in Texas and South Dakota. 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.

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, and 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.

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
estimated mineralized uranium material, the attractive aspects of the
Tecolote tract, the prospects of the exploration joint venture with
Cameco and the strategy of the Company and significant growth potential
for shareholders 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, the outcome of negotiations with the Navajo Nation, the
Company′s ability to reach agreements with current royalty holders,
weather conditions, operating conditions at the Company′s mining
projects, government and tribal 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.

Investors:

Kei Advisors LLC

Deborah K. Pawlowski,
716-843-3908

dpawlowski@keiadvisors.com

or

Media:

Uranium
Resources Inc.

Mat Lueras, Vice President, Corporate Development,
505-269-8317

mlueras@uraniumresources.com