Uranium Resources, Inc. Enters Into Exploration Agreement with Cameco Texas, Inc.

Uranium Resources, Inc. (NASDAQ: URRE) ('URI?) announced today that its
subsidiary, URI, Inc., has entered into an exploration agreement with
Cameco Texas, Inc. (?CTI?), a subsidiary of Power Resources, Inc., which
is a subsidiary of Cameco (NYSE: CCJ). The exploration agreement
provides for a three-phase, three-year exploration program on a large
south Texas property on which URI obtained the previously announced
exploration rights and lease option. CTI will fund the majority of the
exploration costs. At the conclusion of the exploration program, the
parties may enter into an operating joint venture to develop and produce
any discovered uranium resources and reserves. The uranium would be
processed at URI′s Kingsville Dome or Rosita processing facility, with
CTI′s share of production being processed under a toll processing
agreement with URI.

The initial area targeted for exploration, which will be known as the
"Los Finados Project,′ consists of three priority parcels located within
the large (53,500 acre) property in Kenedy County, Texas.

Don Ewigleben, President and CEO of URI, commented, 'Texas is a key
component of our strategy to grow value and this relationship with
Cameco demonstrates our intent to grow our assets in the region and
capitalize on our two processing facilities. The initial target area is
considered highly prospective for uranium mineralization based on
earlier water sampling tests. Having Cameco involved in the project not
only confirms our expectations and our capabilities as an operator, but
also provides us an excellent resource to rely upon in our exploration
efforts.?

Under the terms of the exploration agreement, CTI can earn up to a 70%
interest in the property in consideration for a $3.5 million investment
in exploration and development expenses over the three-phase project.

During phases One and Two, URI and CTI would have joint decision-making
authority and URI would serve as the exploration operator to execute the
jointly-designed exploration program.

Mr. Ewigleben added, 'We expect to begin our exploration drilling for
Phase One this summer once the drilling plans and objectives are agreed
upon by both parties.?

URI has the right of first refusal for a five-year period to participate
with CTI in future property acquisitions in South Texas. In addition,
both parties have first right of refusal should the other wish to convey
their interests under the exploration agreement.

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 has digitized
over 18,800 drill logs representing nearly 23 million feet of hole
drilled with an estimated replacement cost of $700 million. 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.

Investor Contact:

Kei Advisors LLC

Deborah K.
Pawlowski, 716-843-3908

dpawlowski@keiadvisors.com

or

Media
Contact:

Uranium Resources, Inc.

Mat Lueras, 505-269-8317

Vice
President, Corporate Development

mlueras@uraniumresources.com

or

Company
Contact:

Uranium Resources, Inc.

Don Ewigleben,
972-219-3330

President & Chief Executive Officer