Uranium Resources, Inc. Settles 2-Year Old Law Suit on Lease Agreement in Texas

Uranium Resources, Inc. (NASDAQ:  URRE) ('URI?) announced today that the
counsel for Uranium Resources, Inc. and the plaintiffs signed a
settlement agreement in the matter entitled Saenzv. URI Inc.pendingin the 105^th Judicial District
Court, Kleberg County, Texas. The matter, as disclosed previously by the
Company, was commenced in 2008 by the owners of the mineral estate of
property leased to the Company, seeking to invalidate the lease.

While the Company believes that its defense in this matter is valid,
counsel to the Company is unable to predict the outcome of the
litigation and a reasonable cost for completion. Also, if a
determination was made that invalidated the leases on which the Company
has previously produced uranium, the outcome could have had material
adverse affect on the Company′s financial condition. As a result, the
Company believed it was in its best interest to settle the matter.

Don Ewigleben, President and CEO of URI, commented, 'We are pleased to
have come to an agreement on the lease regarding these properties in
Texas. In addition to eliminating the cost associated with the law suit,
we can now better focus our efforts on building our opportunities in
Texas. Importantly, with this agreement, we can now broach additional
discussions with the mineral rights owners. There′s an estimated 250,000
pounds of uranium within nearby acreage that could potentially be
leased. Although this additional acreage would require permitting, it
also makes mining the remaining 50,000 pounds of in place mineralized
uranium material in our currently permitted area feasible.?

He concluded, 'As we have discussed, Texas is an important component of
our strategy and being able to move forward with opportunities without
being encumbered with legal issues is critical to our success.? The
Company produced approximately 338,000 pounds of uranium in 2007 and
2008 from wellfields 13 and 14 that were on the subject properties.
These were among the best performing wellfields the Company operated.

Under the Settlement, the Plaintiffs will ratify, confirm and recognize
the validity in all respects of the leases, agree to cooperate with the
Company and execute a stipulation of interest with regard to their
respective interests and agree to support and not interfere, either
directly or indirectly, with the Company′s efforts to obtain permits,
licenses or other authorizations from the different regulatory and
governmental agencies with regard to any mining or other operations. The
Company will pay to Plaintiffs $1.375 million in cash which includes
amounts for prior royalties that the plaintiffs had previously refused
to accept. In addition the royalty for future production from the leases
will be amended from a 6.25% royalty rate to a sliding scale royalty.
The Settlement, which was agreed to on September 29, 2010, is subject to
execution of amendments to the leases to reflect the foregoing and to
documentation of other aspects of the settlement and dismissal of the
suit.

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
are 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

Craig
Mychajluk, 716-843-3832

cmychajluk@keiadvisors.com

or

Media:

Uranium
Resources, Inc.

April Wade, 505-440-9441

awade@uraniumresources.com

or

Company:

Uranium
Resources, Inc.

Don Ewigleben, 972-219-3330

President and
Chief Executive Officer