Uranium Resources, Inc. Reports First Quarter 2009 Results

LEWISVILLE, Texas--(Business Wire)--
Uranium Resources, Inc. (NASDAQ: URRE) (URI), announced today its financial
results for the first quarter of 2009, which ended March 31, 2009.

Revenue for the first quarter of 2009 was $1.4 million, a $4.3 million decrease
compared with $5.7 million during the first quarter of 2008. Lower revenue was
the result of the Company`s decision to wind down production as a result of
lower market prices. The net loss for the first quarter of 2009 was $1.6
million, or $0.03 per diluted share, compared with a net loss of $1.8 million,
or $0.04 per diluted share, in the 2008 quarter, primarily due to the revenue
decline.

During the quarter, URI sold 27,600 pounds of uranium, a 66.0% decrease from the
81,100 pounds of uranium sold in last year`s first quarter. URI received an
average sales price per pound of $51.51 in the first quarter of 2009, down
significantly from an average per pound price of $70.66 in the 2008 quarter. The
average direct cost of pounds sold in the 2009 first quarter was $39.88 compared
with an average cost of $50.02 in last year`s first quarter. The direct cost of
uranium sold includes operating expense and depreciation, depletion and
amortization (DD&A), but excludes royalties and commissions.

First Quarter Production

URI produced 31,600 pounds of uranium, including positive inventory adjustments
of 1,800 pounds during the first quarter of 2009 compared with 83,400 pounds
produced during the 2008 first quarter and 41,200 pounds produced during the
trailing fourth quarter of 2008. The Company began to wind down production
operations in Texas during the fourth quarter of 2008 as a result of the
declining price of uranium and the rising cost of production. Production costs
for the quarter were $25.23 per pound compared with $49.78 pound in the same
quarter of 2008 and $32.69 in the trailing fourth quarter of 2008.

All production for the first quarter of 2009 was from two wellfields at
Kingsville Dome that are being produced out. In last year`s first quarter, 4,300
pounds were produced at Vasquez and 79,100 were produced at Kingsville Dome. At
the end of the quarter the Company held 40,200 pounds of uranium inventory.

Dave Clark, President and CEO, commented, "Our last two wellfields have
surprisingly continued to produce at a slow steady profitable pace. We expect to
produce an additional 5,000 to 10,000 pounds before these wellfields are
depleted by the end of the second quarter.

Production & Sales Summary Q1 2009 Q4 2008 Q3 2008 Q2 2008 Q1 2008

Pounds U3O8 produced 31,600 41,200 62,700 113,500 83,400
Production cost per pound $ 25.23 $ 32.69 $ 68.52 $ 40.03 $ 49.78

Pounds U3O8 sold 27,600 38,700 66,300 99,400 81,100
Direct cost of sales per pound $ 39.88 $ 53.32 $ 54.69 $ 41.52 $ 50.02

Average selling price per pound $ 51.51 $ 56.76 $ 60.71 $ 66.41 $ 70.66

Significant operating cost reductions made beginning in the fourth quarter of
2008, along with the impact of the write-down to fair market value of URI`s
uranium assets in 2008 and 2009, resulted in the lower production costs per
pound in the first quarter of 2009. The uranium asset write-down reduced the
amount of capital costs attributable to the Company`s uranium properties and
resulted in lower depreciation and depletion in the current period.

Mr. Clark noted, "We have not yet seen the improvement in market prices we would
need to invest in new wellfields. As such, we continue to focus on the
restoration of depleted wellfields at Kingsville Dome, Rosita and Vasquez.
However, we might have the opportunity to produce sellable pounds by processing
by-product material from previous processing activities at Kingsville Dome.
Otherwise, we continue to scale back our Texas operations and evaluate the value
of our processing assets."

Cash Management Update and Outlook

Cash at the end of the quarter was $10.1 million compared with $12.0 million at
the end of 2008 and $5.2 million at March 31, 2008. A significant portion of the
cash on hand at March 31, 2009, and December 31, 2008, was generated from the
$12.8 million in net proceeds received from the sale of common stock and
warrants in a private placement in May 2008.

The Company used $1.6 million cash in operations during the first quarter of
2009 compared with $0.2 million in the trailing fourth quarter of 2008. General
and administrative expenses for the quarter were $1.4 million, compared with
$2.1 million in the fourth quarter of 2008 and $2.7 million in last year`s first
quarter. The decrease reflected reductions in payroll, office, consulting and
travel expenses related to the Company`s cash conservation program.

Mr. Clark stated, "We continue to cut costs in ways that will not hinder the
advancement toward our strategic goals. Focusing on restoration activities in
Texas allows us to complete these activities in the most efficient cost
effective manner while we await higher prices to gain the most from our
remaining production potential. In New Mexico, we are seeing substantial renewed
interest in uranium mining as a result of the economic downturn. We believe
there is a positive momentum building as more organizations are working together
to evaluate the soundness of the science and safety of uranium mining. More
importantly, we believe significantly more progress can be made by working with
the Navajo Nation."

On Friday, April 17, 2009, the United States Court of Appeals for the Tenth
Circuit issued its 2 to 1 decision ruling that Section 8 of URI's Churchrock
property in New Mexico is Indian country. This ruling means that the United
States Environmental Protection Agency (USEPA), and not the State of New Mexico,
has the jurisdiction to administer the Underground Injection Control (UIC)
program permit which URI requires for in situ recovery (ISR) mining of that
property.

Mr. Clark commented, "We have until June 1, 2009 to decide whether to challenge
the ruling with an en banc review by the 10th Circuit Court. Of course, our
preferred solution would be to come to mutually agreeable terms with the Navajo
Nation. In either event, we will proceed in a manner that will allow us to
obtain the UIC permit."

Teleconference and Webcast

The Company is hosting a teleconference and webcast at 1:30 p.m. ET on May 11,
2009. During the teleconference, Dave Clark, President and Chief Executive
Officer, will review the financial and operating results for the first quarter
of 2009 year and discuss URI`s corporate strategy and outlook. A
question-and-answer session will follow. The URI conference call can be accessed
by calling (201) 689-8562 approximately 10 minutes prior to the call.
Alternatively, it can be listened to at the Company`s website at
www.uraniumresources.com. Participants should go to the website 10 - 15 minutes
prior to the scheduled conference in order to register and download any
necessary audio software.

An archive of the teleconference can also be heard by calling (201) 612-7415 and
entering account number 3055 along with conference ID number 321732. The
telephonic replay will be available from 4:30 p.m. ET the day of the
teleconference until 11:59 p.m. Monday, May 18, 2009. The archived webcast will
be at www.uraniumresources.com. A transcript of the call will also be posted,
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 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.
The Company acquired these properties over the past 20 years along with an
extensive information database. URI`s strategy is to capitalize on the strong
global market for uranium by fully exploiting its resource base in Texas and New
Mexico, acquiring new assets and through joint ventures or partnerships. Uranium
Resources routinely posts news and other information about the Company on its
web site at www.uraniumresources.com.

Safe Harbor Statement

This press 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 press
release.

URANIUM RESOURCES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2009 2008
Current assets:
Cash and cash equivalents $ 10,137,032 $ 12,041,592
Receivables, net 4,149 40,360
Uranium inventory 909,635 1,213,927
Prepaid and other current assets 333,520 513,489
Total current assets 11,384,336 13,809,368

Property, plant and equipment, at cost:
Uranium properties 85,172,046 85,095,067
Other property, plant and equipment 899,560 898,933
Less-accumulated depreciation, depletion and impairment (63,489,488 ) (63,215,677 )
Net property, plant and equipment 22,582,118 22,778,323

Long-term investment:
Certificates of deposit, restricted 6,679,782 6,636,715
$ 40,646,236 $ 43,224,406

March 31, December 31,
2009 2008

Current liabilities:
Accounts and short term notes payable $ 761,394 1,169,293
Current portion of restoration reserve 1,411,008 1,660,422
Royalties and commissions payable 668,841 719,542
Accrued interest and other accrued liabilities 375,249 607,975
Current portion of capital leases 150,606 158,068
Total current liabilities 3,367,098 4,315,300

Other long-term liabilities and deferred credits 6,350,282 6,531,378

Long term capital leases, less current portion 285,165 320,108
Long-term debt, less current portion 450,000 450,000
Commitments and contingencies (Notes 1, 2 and 5)
Shareholders` equity:
Common stock, $.001 par value 56,136 55,994
Paid-in capital 146,678,347 146,518,753
Accumulated deficit (116,531,374 ) (114,957,709 )
Less: Treasury stock (38,125 shares), at cost (9,418 ) (9,418 )
Total shareholders` equity 30,193,691 31,607,570

$ 40,646,236 $ 43,224,406

URANIUM RESOURCES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended
March 31,
2009 2008
Revenue:
Uranium sales $ 1,422,390 $ 5,731,538
Total revenue 1,422,390 5,731,538
Costs and expenses:
Cost of uranium sales-
Royalties and commissions 138,715 560,402
Operating expenses 869,949 2,127,139
Accretion/amortization of restoration reserve 144,002 206,988
Depreciation and depletion 231,294 1,930,581
Impairment of uranium properties 182,374 135,842
Exploration expenses 773 8,547
Total cost of uranium sales 1,567,107 4,969,499
Earnings (loss) from operations before corporate expenses (114,717 ) 762,039

Corporate expenses-
General and administrative 1,441,295 2,701,807
Depreciation 35,137 34,213
Total corporate expenses 1,476,432 2,736,020
Loss from operations (1,621,149 ) (1,973,981 )

Other income (expense):
Interest expense (11,228 ) (11,429 )
Interest and other income, net 58,712 147,986

Net loss $ (1,573,665 ) $ (1,837,424 )

Net loss per common share:
Basic $ (0.03 ) $ (0.04 )
Diluted $ (0.03 ) $ (0.04 )

Weighted average common shares and common equivalent shares per share data:
Basic 56,096,644 52,305,129
Diluted 56,096,644 52,305,129

URANIUM RESOURCES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(Unaudited)

Three Months Ended
March 31,
2009 2008
Net loss $ (1,573,665 ) $ (1,837,424 )
Reconciliation of net earnings to cash provided by operations
Accretion/amortization of restoration reserve 144,002 206,988
Depreciation and depletion 266,431 1,964,794
Impairment of uranium properties 182,374 135,842
Decrease in restoration and reclamation accrual (586,437 ) (250,986 )
Stock compensation expense 159,736 654,427
Other non-cash items, net - 23,212
Effect of changes in operating working capital items-
Decrease in receivables 36,211 338,451
Decrease in inventories 234,714 277,400
(Increase) decrease in prepaid and other current assets 179,969 (187,152 )
Decrease in payables, accrued liabilities and deferred credits (691,326 ) (517,627 )
Net cash provided by (used in) operations (1,647,991 ) 807,925

Investing activities:
Increase in certificates of deposit, restricted (43,067 ) (325,054 )
Additions to property, plant and equipment-
Kingsville Dome (68,015 ) (2,159,188 )
Vasquez (71,288 ) (152,520 )
Rosita (14,503 ) (1,801,713 )
Churchrock (7,261 ) (75,064 )
Crownpoint - (30,523 )
Other property (10,030 ) (226,858 )
Net cash used in investing activities (214,164 ) (4,770,920 )

Financing activities:
Payments on borrowings (42,405 ) (82,718 )
Net cash used in financing activities (42,405 ) (82,718 )
Net decrease in cash and cash equivalents (1,904,560 ) (4,045,713 )
Cash and cash equivalents, beginning of period 12,041,592 9,284,270
Cash and cash equivalents, end of period $ 10,137,032 $ 5,238,557

Uranium Resources, Inc.
David N. Clark, 972-219-3330
President and CEO
or
Media
April Wade, 505-440-9441
awade@uraniumresources.com
or
Investors:
Kei Advisors LLC
Deborah K. Pawlowski/James M. Culligan
716-843-3908/716-843-3874
dpawlowski@keiadvisors.com/jculligan@keiadvisors.com

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