Uranium Resources, Inc. to Begin Drilling in Historic Grants Mineral Belt

Uranium Resources, Inc. (NASDAQ: URRE) ('URI?) announced today that the
Company expects to begin drilling on its Section 13 property in Ambrosia
Lake in early September. Stewart Brothers Drilling Company of Milan, New
Mexico, has been contracted by URI to conduct the drilling. The
objective of the drilling activity is to evaluate the suitability of the
property for in-situ recovery ('ISR?) mining.

'As part of our commitment to New Mexico, we intend to hire local
businesses whenever possible. Stewart Brothers has expertise in the
region′s geology, a reputation for quality work and experience in the
Grants Mineral Belt,? said Don Ewigleben, President and Chief Executive
Officer of URI.

URI received an exploration permit from the New Mexico Mining and
Minerals Division in November 2008 to drill on Section 13. The permit,
which was renewed in July 2010, allows URI to drill up to ten holes for
the purpose of extracting core samples until November 2011.

'This drilling project is part of our strategy to advance to production
in New Mexico where we have over 100 million pounds of in-place,
mineralized uranium material. This project, combined with two recent
rulings by the Tenth Circuit Court, represent considerable steps toward
a strong future in uranium production for us, as well as the resurgence
of the uranium industry in New Mexico,? commented Mr. Ewigleben.

In recent months the Tenth Circuit reached decisions that upheld URI′s
Nuclear Regulatory Commission license and found the Company′s Section 8
property in Churchrock is not Indian Country. The opposing parties have
the right to petition the Supreme Court for review on both decisions by
mid-September.

In a region known as Ambrosia Lake, URI′s Section 13 property is located
in McKinley County, approximately ten miles northeast of Grants. URI has
approximately 2.4 million pounds of in-place, mineralized uranium
material in the Ambrosia Lake district.

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 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 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.

Investors:

Kei Advisors LLC

Deborah K. Pawlowski,
716-843-3908

dpawlowski@keiadvisors.com

or

James
M. Culligan, 716-843-3874

jculligan@keiadvisors.com

or

Uranium
Resources, Inc.

Media Contact:

April Wade,
505-440-9441

awade@uraniumresources.com

or

Company
Contact:

Don Ewigleben, 972-219-3330

President and Chief
Executive Officer