Uranium Resources, Inc. Provides Second Quarter 2012 Update

Uranium Resources, Inc. (NASDAQ: URRE) ('URI? or the 'Company?), today
provided an update on the Company′s activities, its liquidity position
and its strategy and outlook for 2012.

Access Agreement with Navajo Nation

On July 31, 2012, URI announced that its wholly-owned subsidiary Hydro
Resources, Inc. ('HRI?) came to an agreement with the Navajo Nation
regarding temporary access for its Churchrock Section 8 ('Section 8?)
property via Sections 9 and 17. The agreement is intended by both
parties to settle the alleged trespass issue related to the Notice of
Violation and Order to Comply with the Navajo Nation Civil Trespass Act
received by the Company on April 5, 2012. Additionally, it provides
access for regulatory requirements including on site visits with the
Nuclear Regulatory Commission, but does not allow for any construction
activities or earth disturbances.

Under the terms and for the duration of this agreement, HRI has agreed
to the jurisdiction of the Navajo Nation. HRI has also offered to
complete remediation of any radioactive contamination on Sections 17 or
8 prior to commencing in situ leach recovery operations on Section 8.

Don Ewigleben, President and CEO of URI, commented, 'We believe this
initial agreement is a significant step forward toward the advancement
of our economically viable Churchrock Section 8 project. We are actively
in discussions with the Navajo Nation on a comprehensive agreement and
are in the process of developing specific cost and timelines for the
remediation work.?

Advancement of Churchrock Section 8 Continues to be a Priority

The Churchrock Section 8 area contains 6.5 million pounds of in-place
non-reserve mineralized uranium material. Section 8 falls within the
Company′s underground injection control permit and NRC licenses, both of
which are in timely renewal and in the process of being renewed. The NRC
license addresses in total 27.4 million pounds of in-place, non-reserve,
mineralized uranium material for the Company′s Churchrock/Crownpoint
Project.

The Section 8 project capital requirements are expected to be
approximately $50 million for well field development, with staggered
production expanding to a total of seven well fields for an estimated
one million pounds of annual production. At peak production, URI expects
there will be approximately 60 employees in New Mexico and another 35 in
Texas, excluding independent contractors. The Company is in discussion
with certain royalty owners on the project that, if successful, may
provide an increased rate of return on the project.

Given the recent agreement with the Navajo Nation and the need to
develop a remediation plan, the Company is reevaluating its production
schedule.

Mr. Ewigleben noted, 'Given indications by various investors, we have a
great deal of confidence in finding supporting funds for this project,
but are still evaluating the best approach. The results of the
feasibility study have confirmed that development of the project is
technically and economically viable. We do not believe that the
remediation work will be a deterrent to the project, although we are
reviewing our production timeline.?

URI continues to refine the feasibility study performed on Section 8 and
is utilizing the study in confidential negotiations with various
parties. The Company is developing a plan for confirmation drilling to
provide additional support for parties requiring validation of
historical data, including potential lenders.

In June 2011, URI received confirmation from the New Mexico Environment
Department ('NMED?) that its discharge plan is in timely renewal and
that the NMED is currently conducting technical review of its renewal
application. A Complaint for Declaratory and Injunctive Relief and a
Motion for Preliminary Injunction was filed by a petitioner against the
timely renewal. URI′s motion questioning the standing of the plaintiff
to bring the action is set for hearing on August 20, 2012.

Neutron Acquisition Expected to Close on August 31 Pending
Shareholder Approvals

On March 1, 2012, the Company announced the signing of a definitive
agreement to acquire 100% of the equity of Neutron Energy, Inc. in a
stock-for-stock transaction. The value of the acquisition for URI
includes:

• 
  Synergistic mid-term and long-term uranium assets located in the
  Grants Mineral Belt of New Mexico, including the Cebolleta and Juan
  Tafoya projects
  
• 
  Over 52 million pounds of in-place, non-reserve, mineralized uranium
  material
  
• 
  A previously permitted uranium mill site on the east side of Mt.
  Taylor that had housed a never used conventional mill since torn down
  
• 
  Combined, the companies will have over 206,000 acres of uranium
  holdings in New Mexico
  
• 
  Positions URI as one of the largest U.S. uranium development companies
  

Assuming shareholder approvals are received, the transaction is expected
to close on or about August 31, 2012. Mr. Ewigleben stated, 'This
acquisition will represent a significant consolidation of uranium
properties in New Mexico and will position URI as one of the largest
U.S.-based uranium development companies. It also provides the combined
company with significant scale, strategic resource development synergies
in the Ambrosia Lake region and a previously permitted conventional mill
site.?

Texas Los Finados Exploration Continuing; Kingsville Dome Pond
Activities Progressing Well

• 
  Phase II work on the joint Los Finados exploration project with Cameco
  is scheduled to be completed in November 2012. Under Phase II thus
  far, 32 holes have been drilled at an average depth of 1,170 feet with
  an additional 15 holes planned. Of the total $1.5 million that was
  committed by URI to complete Phase II, $1 million is being funded by
  Cameco, who currently has earned a 40% interest in the project and
  will have 50% interest after Phase II completion. URI has until
  November 30, 2012 to make a decision regarding moving on to Phase III.
  
• 
  In order to accommodate production in New Mexico and be in a position
  to return to production in Texas, URI is in the process of
  refurbishing the Kingsville Dome holding ponds. Total capital and
  operating costs for the refurbishment project is estimated at $2.9
  million. URI expects to generate up to 40,000 to 50,000 pounds of U₃O₈
  as a by-product of this activity.
  
• 
  Continued restoration activities at the Company′s three most recent
  South Texas projects included approximately 4.5 billion gallons of
  water processed to date. Restoration activities continue at KVD PA3
  and Vasquez PA1 and PA2. Groundwater restoration has been completed at
  the Rosita PA1 and PA2 well fields, which are currently being
  monitored for stability. Final closure on these areas is expected by
  the third quarter of 2012.
  

Liquidity Position

Cash at June 30, 2012 was $2.8 million compared with $2.9 million at
December 31, 2011. As part of the merger agreement, URI has supplied
Neutron with $3.2 million in cash for their budget to date and an
additional $0.2 million for an asset purchase in the first quarter of
2012. As of August 3, 2012, URI had $2.0 million in cash. URI, at its
option, can receive $5 million through the sale of additional shares to
Resource Capital Fund V L.P. ('RCF?) at the closing of the Neutron
merger. The share price will be based off the lower of $0.97 or the
volume weighted average trading price of URI common stock on the NASDAQ
exchange of the previous 20 trading days prior to the closing of the
merger.

During the second quarter, no common stock was sold under the Company′s
existing At-The-Market Sales Agreement ('ATM?) with BTIG, LLC. In late
July, the Company sold 2.66 million shares under the ATM program,
raising net proceeds of $1.455 million. URI has a total of $11.4 million
in share value available for future sales under the ATM.

URI incurred cash expenditures from its operating and investing
activities during the first six months of $11.5 million. With current
cash on hand, the RCF option and the ATM agreement, the Company expects
it has sufficient funding for approximately twelve months of operations.

Outlook

Mr. Ewigleben concluded, 'While the uranium market faces uncertainty and
weakness in the near term, the long-term fundamentals are strong. Two
reactors were put back in operation at the Ohi plant in Japan, which is
expected to potentially open the door for additional restarts. China′s
aggressive plan to continually bring new reactors online to meet its
growing energy needs also creates new demand for uranium. This
expansion, combined with additional emerging markets facing growing
energy requirements and the expiration of the HEU agreement with Russia
at the end of 2013, we expect will drive uranium prices in the long
term. It is our intention to capitalize on the supply-demand imbalance
by maintaining our strategic focus and getting back to production.?

NASDAQ Extension

URI was granted an additional 180-day grace period until January 14,
2013 to regain compliance with NASDAQ′s minimum $1.00 bid price per
share rule. Under NASDAQ listing rules, the Company was granted this
extension because it met the continued listing requirement for market
value of publicly held shares and all other applicable NASDAQ listing
requirements, except the bid price requirement, and the Company provided
written notice to NASDAQ of its intention to cure the bid price
deficiency during the second compliance period. The Company will regain
compliance with the minimum bid requirement if, at any time prior to
January 14, 2013, the bid price for the Company's common stock closes at
$1.00 per share or above for a minimum of 10 consecutive business days.

Teleconference and Webcast

URI will host a conference call and webcast on August 10, 2012 at 11:30
a.m. ET. During the call, management will provide an update on URI′s
strategies, outlook, and progress in advancing its Texas and New Mexico
properties. A question-and-answer session will follow.

The URI conference call can be accessed by dialing (201) 689-8471. The
live listen-only audio webcast can be monitored on the Company′s website
at www.uraniumresources.com,
where it will be archived afterwards.

A telephonic replay will be available from 2:30 p.m. ET the day of the
teleconference until Friday, August 17, 2012. To listen to the archived
call, dial (858) 384-5517 and enter replay pin number 396245. A
transcript will also be placed on the Company′s website, 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. 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 an 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 drill hole logs, assay
certificates, maps and technical reports. None of URI′s properties is
currently in production.

URI′s strategy is to fully develop 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 assets 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 website at www.uraniumresources.com.

Additional Information

Uranium Resources, Inc., a Delaware corporation ('URI?) entered into,
among other transaction documents, a definitive merger agreement on
March 1, 2012, by and among URI, URI Merger Corporation, a Nevada
corporation and an indirect wholly-owned subsidiary of URI ('Merger
Sub?), and Neutron Energy, Inc., a Nevada corporation ('Neutron?) under
which Merger Sub will be merged with and into Neutron, with Neutron
continuing as the surviving corporation and becoming an indirect
wholly-owned subsidiary of URI (the 'Transaction?). In connection with
the proposed Transaction, URI has filed a registration statement on Form
S-4, including a joint proxy statement/prospectus and other relevant
documents with the Securities and Exchange Commission (the 'SEC?) and
has mailed the joint proxy statement/prospectus to stockholders.
Stockholders are urged to read the registration statement and joint
proxy statement/prospectus, and any other relevant documents filed with
the SEC, as well as any amendments or supplements to those documents,
because they will contain important information. The registration
statement and joint proxy statement/prospectus as well as other filings
containing information about URI and Neutron, can be obtained without
charge at the Company′s website or by directing a request to URI: Regan
& Associates, Inc., 1.800.737.3426.

URI and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the stockholders of URI
in connection with the proposed Transaction. Information about the
directors and executive officers of URI is set forth in the proxy
statement for URI′s 2012 annual meeting of stockholders, as filed with
the SEC on April 30, 2012. Additional information regarding the
interests of those participants and other persons who may be deemed
participants in the proposed Transaction may be obtained by reading the
joint proxy statement/prospectus regarding the proposed Transaction.
Investors may obtain free copies of these documents as described above.

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, access to properties, 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, receiving shareholder approval of the Neutron transaction,
realizing the benefits of the merger and resource development synergies,
the exploration upside of the acquired properties, the Company′s ability
to acquire other properties, the benefit of permitting on private lands,
the effect of additional major investors with mining investment
experience, 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.

TABLES FOLLOW.

Investors:

Kei Advisors LLC

Deborah K. Pawlowski,
716-843-3908

dpawlowski@keiadvisors.com

or

Media:

Uranium
Resources, Inc.

Mat Lueras, 505-269-8317

Vice President,
Corporate Development

mlueras@uraniumresources.com

or

Company:

Uranium
Resources, Inc.

Don Ewigleben, 972-219-3330

President & Chief
Executive Officer