Uranium Resources, Inc. Begins Drilling at Its Los Finados Project in South Texas

Uranium Resources, Inc. (NASDAQ: URRE) ('URI?) announced today that it
began exploratory drilling on the 54,847 acres in Kenedy County, Texas,
known as the "Los Finados Project.′ The first phase of the drilling
program began on June 21 and is expected to be completed by the end of
September at a cost of approximately $1 million. This phase of the
exploratory core drilling will be done using a widely and evenly spaced
program covering a grid designed to test the potential for uranium
mineralization over the entire area. Specifically, the objective is to
identify oxidation-reduction interfaces within the wide-spaced drilling.

Don Ewigleben, President and CEO of URI, commented, 'The Los Finados
project allows URI to explore for uranium in one of the largest
contiguous untested land blocks in the prolific south Texas uranium
district. URI′s water sampling results from our earlier testing, our
analysis of local geologic trends, and the history of uranium production
in the district suggest that the Los Finados property is highly
prospective for the occurrence of one or more uranium deposits that can
be produced by commercially viable ISR technology. Our three phase
exploratory drilling will confirm what, if any, resources are present on
this particular parcel in the district.?

In May, URI 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 the 54,847 acre south
Texas property on which URI obtained the 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 is the "Los Finados Project.′

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 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
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 news release.

Investors:

Kei Advisors LLC

Deborah K. Pawlowski,
716-843-3908

dpawlowski@keiadvisors.com

or

Company:

Uranium
Resources, Inc.

Don Ewigleben, 972-219-3330

President & Chief
Executive Officer

or

Media:

Mat Lueras,
505-269-8317

Vice President, Corporate Development

mlueras@uraniumresources.com