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Tanzanian Uranium Project Update

06 December 2006

HIGHLIGHTS

  • Increased size and strike length of Henri Anomaly
  • 6 further anomalies identified at Henri
  • 3 additional anomalies identified at Mtonya Project
  • Numerous drill targets now identified at Mtonya
  • More high grade uranium results from trench sampling
  • Best trench results from channel samples
    • 22,950 ppm (2.29%)U*
    • 20,820 ppm (2.08%) U*

* For conversion to U3O8 the uranium ppm values should be multiplied by 1.18.

INTRODUCTION

Uranium Resources plc is pleased to advise that the November exploration field program on the Mtonya Uranium Prospect in Tanzania has been successfully completed.

The Company also advises that it has received the final assay results of field work conducted during the August field program in the area.

The work was undertaken by the Company's farm-in partner, Western Metals Ltd (ASX:WMT; www.westernmetals.com.au).

NOVEMBER FIELD PROGRAM

The field program was completed successfully on 2 December 2006 with a further 7 trenches excavated and sampled, bringing the total number of trenches at Mtonya to 13, as well as radiometric surveys completed in detail at Henri. Radiometric surveys were also completed at the previously identified Para and Tabilk anomalies.

Further a field, reconnaissance surveys were conducted over a 5 km trend to the north east of Henri, identifying several new anomalies at Galway, Moysten and Grandfather.

Exploration activities undertaken were:

  • Excavating, sampling and geological mapping of a further 7 trenches at the Henri, Para and Tabilk anomalies;
  • Detailed radiometric surveys over the Henri anomaly area including extensions to the north and south;
  • Increased radiometric survey coverage over the Para and Tabilk anomalies; and
  • Reconnaissance radiometric surveys over a further strike extent of 5 kilometres to the north east of Henri.

Uranium Resources director James Pratt said, 'The data collected by Dr Drake-Brockman on the recent field trip further enhances the Company's belief that the Mtonya system has the potential to host a significant ore body and provides the Company with further immediate drill targets for our planned drilling program in June 2007 post the upcoming wet season.'.

The Henri detailed radiometric survey has provided greater definition over the known anomaly and identified a further six >200 cps anomalies within 250 metres of the Henri discovery anomaly.

The surveys of the Para and Tabilk anomalies have increased the extents of the anomalies with trenching completed on these areas to determine the distribution of uranium near surface.

500 cps at surface with some areas exceeding 1000 cps. These results provide targets for further detailed work to determine further drill targets.

The radiometric data in conjunction with the known assay values indicate many drill targets exist in the work area tested to date.

For diagrams of the anomalies, refer to Western Metals announcement on their web site at www.westernmetals.com.au.

FUTURE WORK AT MTONYA

The next phase of exploration to be undertaken at Mtonya will follow the end of the wet season in April/May 2007. Activities to be conducted include:

  • Drilling program over identified anomalies; and
  • Airborne radiometric survey over tenement area.

AUGUST 2006 FIELD WORK FINAL RESULTS

All results from the August field program have now been received. Initial results from the August field work were reported on 21 November and this report finalises all the results from that exploration program.

Trenching work conducted at Mtonya in August included excavating, sampling and mapping 5 trenches at the Henri anomaly area and collecting surface samples from sites of elevated radiometric response. Trench 6 was excavated during August but not sampled. This work has now been completed in the November field program with results pending.

Trenches were dug to a depth of 1 to 1.5 metres. Channel samples and selective grab samples were collected and the trenches were geologically mapped. Channel samples were collected at 1 to 2 metre intervals along the length of the trenches. Sample lengths were based on geological boundaries and collected perpendicular to the generally sub-horizontal dip of the host geology.

Trench 1 and Trench 2 at the Henri anomaly showed visible yellow secondary uranium mineralisation. Photographs of the project including the visible uranium mineralisation are available shortly on the Western Metals web page www.westernmetals.com.au.

The assays received from the trenches showed high grade uranium was present in Trench 1 and Trench 2 with lower results from Trenches 3, 4 and 5. The results from Trenches 4 and 5 are interpreted to be from beneath the redox boundary front. The assays remain elevated indicating they are within the mineralized system.

Trench 1 and Trench 2 show continuous zones of uranium mineralisation. Of significance is that both trenches remain strongly mineralized at the eastern and western extremities and in the bases of each trench indicating that the mineralisation is more extensive than these exposures.

Samples were also collected from the surface or shallow trenches (<0.3m) in areas where radiometric responses exceeded 200 counts per second (cps) on the other anomalies in the area. Five anomalies were identified over a 2 kilometre strike length of prospective stratigraphy.

The results of these samples indicated elevated uranium often in excess of 100ppm U in all areas indicating the scintillometer anomalies are related to the presence of elevated uranium and warrant further trenching and drilling.

Table 1 Assay Results August Field Program (Results not previously reported in
bold text)

Sample           Co-ordinates (WGS84)        Uranium *   Comments
Number                                          ppm
            Longitude (E)    Latitude (S)

    A0-017         36.52169       -10.54750       18,800 Sandstone, trench 1 hand picked high grade visible U
    A0-018         36.52169       -10.54750       55,600 Sandstone, trench 1 hand picked high grade visible U
    A0-019         36.52164       -10.54739       35,880 Sandstone, trench 1 hand picked high grade visible U
    A0-020         36.52245       -10.54922        2,965 Soil sample, hand picked visible U from shallow hole
    A0-021         36.52245       -10.54916        9,600 Soil sample, hand picked visible U from shallow hole
    A0-022         36.52319       -10.54875           39 Sandstone and soil grab sample from shallow hole
    A0-023         36.52231       -10.55140           80 Sandstone and soil grab sample from shallow hole
    A0-024         36.52218       -10.55136           42 Sandstone grab sample from shallow hole
    A0-025         36.52244       -10.54917          160 Sandstone grab sample from shallow hole
    A0-026         36.52880       -10.55508           23 Sandstone grab sample from shallow hole
    A0-027         36.52622       -10.55876           42 Sandstone grab sample from shallow hole
    A0-028         36.52617       -10.55883           30 Sandstone grab sample from shallow hole
    A0-029         36.52622       -10.55901           90 Sandstone/mudstone grab sample from shallow hole
    A0-030         36.52630       -10.55856           30 Sandstone grab sample from shallow hole
    A0-031         36.52783       -10.55699           63 Sandstone grab sample from shallow hole
    A0-032         36.52774       -10.55683           53 Sandstone grab sample from shallow hole
    A0-033         36.52817       -10.55590          296 Sandstone grab sample from shallow hole
    A0-034         36.52817       -10.55591           1 Fossil wood, grab from shallow hole
    A0-035         36.52169       -10.54750          178 Sandstone, channel sample, trench 1
    A0-036         36.52169       -10.54750        2,650 Sandstone, channel sample, trench 1
    A0-037         36.52169       -10.54750        4,600 Sandstone, channel sample, trench 1
    A0-038         36.52169       -10.54750          562 Sandstone, channel sample, trench 1
    A0-039         36.52169       -10.54750          550 Sandstone, channel sample, trench 1
    A0-040         36.52169       -10.54750       16,345 Miscellaneous mineralised bulk sample trench 1
    A0-041         36.52169       -10.54750          364 Sandstone, channel sample, trench 1
    A0-042         36.52169       -10.54750        3,228 Sandstone, channel sample, trench 1
    A0-043         36.52169       -10.54750        1,080 Sandstone, channel sample, trench 1
    A0-044         36.52169       -10.54750          107 Sandstone, channel sample, trench 1
    A0-045         36.52169       -10.54750        7,030 Sandstone, channel sample, trench 1
    A0-046         36.52169       -10.54750        3,002 Sandstone, channel sample, trench 1
    A0-047         36.52169       -10.54750          150 Sandstone, channel sample, trench 1
    A0-048         36.52169       -10.54750          148 Sandstone, channel sample, trench 1
    A0-049         36.52169       -10.54750        7,232 Sandstone, channel sample, trench 1
    A0-051         36.52169       -10.54750          145 Sandstone, channel sample, trench 1
    A0-052         36.52169       -10.54750        2,630 Sandstone, channel sample, trench 1
    A0-053         36.52169       -10.54750        3,510 Sandstone, channel sample, trench 1
    A0-054         36.52164       -10.54739          190 Sandstone, channel sample, trench 2
    A0-055         36.52164       -10.54739       22,950 Sandstone, channel sample, trench 2
    A0-056         36.52164       -10.54739       20,820 Sandstone, channel sample, trench 2
    A0-057         36.52164       -10.54739        2,045 Sandstone, channel sample, trench 2
    A0-058         36.52164       -10.54739        1,155 Sandstone, channel sample, trench 2
    A0-059         36.52164       -10.54739        5,350 Sandstone, channel sample, trench 2
    A0-061         36.52164       -10.54739        7,450 Sandstone, channel sample, trench 2
    A0-062         36.52164       -10.54739        3,291 Sandstone, channel sample, trench 2
    A0-063         36.52164       -10.54739        1,350 Sandstone, channel sample, trench 2
    A0-064         36.52239       -10.54700          180 Sandstone, channel sample, trench 3
    A0-065         36.52239       -10.54700           70 Sandstone, channel sample, trench 3
    A0-066         36.52239       -10.54700          130 Sandstone, channel sample, trench 3
    A0-067         36.52239       -10.54700           41 Sandstone, channel sample, trench 3
    A0-069         36.52239       -10.54700           54 Sandstone, channel sample, trench 3
    A0-070         36.52169       -10.54750       14,181 Miscellaneous mineralised bulk sample trench 1
    A0-071         36.52239       -10.54700          119 Sandstone, channel sample, trench 3
    A0-072         36.52239       -10.54700          152 Sandstone, channel sample, trench 3
    A0-073         36.52239       -10.54700           25 Sandstone, channel sample, trench 3
    A0-074         36.52239       -10.54700           71 Sandstone, channel sample, trench 3
    A0-075         36.52138       -10.54962           37 Sandstone, channel sample, trench 4
    A0-076         36.52138       -10.54962           20 Sandstone, channel sample, trench 4
    A0-077         36.52138       -10.54962           40 Sandstone, channel sample, trench 4
    A0-078         36.52138       -10.54962           17 Sandstone, channel sample, trench 4
    A0-079         36.52138       -10.54962          120 Sandstone, channel sample, trench 4
    A0-080         36.52138       -10.54962          1  Sandstone, channel sample, trench 4
    A0-081         36.52138       -10.54962           80 Sandstone, channel sample, trench 4
    A0-082         36.52138       -10.54962           82 Sandstone, channel sample, trench 4
    A0-083         36.52138       -10.54962           56 Sandstone, channel sample, trench 4
    A0-084         36.52138       -10.54962           67 Sandstone, channel sample, trench 4
    A0-085         36.52138       -10.54962           43 Sandstone, channel sample, trench 4
    A0-086         36.52138       -10.54962           65 Mudstone, channel sample, trench 4
    A0-087         36.52138       -10.54962           90 Sandstone, channel sample, trench 4
    A0-088         36.52232       -10.54852           97 Sandstone, channel sample, trench 5
    A0-089         36.52232       -10.54852          166 Sandstone, channel sample, trench 5
    A0-090         36.52169       -10.54750       15,490 Miscellaneous mineralised bulk sample, trench 1
    A0-091         36.52232       -10.54852          210 Sandstone, channel sample, trench 5
    A0-092         36.52232       -10.54852          209 Sandstone, channel sample, trench 5
    A0-093         36.52232       -10.54852          180 Sandstone, channel sample, trench 5
    A0-094         36.52232       -10.54852          330 Sandstone, channel sample, trench 5
    A0-095         36.52232       -10.54852           75 Sandstone, channel sample, trench 5
    A0-096         36.52232       -10.54852          102 Sandstone, channel sample, trench 5
    A0-097         36.52232       -10.54852           80 Sandstone, channel sample, trench 5
    A0-098         36.52232       -10.54852          40  Sandstone, channel sample, trench 5
    A0-131         36.01992       -10.48097            3 Qtz, laterite chips, grab from shallow hole
    A0-132         36.52349       -10.54558           15 Sandstone/mudstone grab sample from shallow hole
    A0-133         36.52361       -10.54580           25 Sandstone grab sample from shallow hole
    A0-134         36.52387       -10.54556           50 Sandstone grab sample from shallow hole
    A0-135         36.52803       -10.54728           80 Sandstone grab sample from shallow hole
    A0-136         36.52895       -10.54778           30 Sandstone grab sample from shallow hole
    A0-137         36.53086       -10.54771          104 Sandstone grab sample from shallow hole
    A0-138         36.53429       -10.54967           23 Sandstone grab sample from shallow hole
    A0-139         36.53459       -10.54969          104 Sandstone grab sample from shallow hole
    A0-140         36.53516       -10.54864          143 Mudstone, grab from exposure in creek bank
    A0-141         36.52313       -10.54862           43 Sandstone grab sample from shallow hole
    A0-142         36.52214       -10.54093           26 Sandstone grab sample from shallow hole
    A0-143         36.52274       -10.54112          108 Sandstone grab sample from shallow hole
    A0-144         36.52276       -10.54121           89 Sandstone grab sample from shallow hole
    A0-145         36.52289       -10.54147          145 Sandstone grab sample from shallow hole
    A0-146         36.52312       -10.54164          313 Sandstone grab sample from shallow hole
    A0-148         36.52380       -10.54114           17 Sandstone grab sample from shallow hole


Notes on Table 1:

Samples have been analysed by pressed powder XRF method by SEAMIC laboratory Dar Es Salaam Tanzania. Certified reference standards and blanks have been included by Western Metals in addition to laboratory control standards.

All results are in ppm uranium with analysis method accuracy quoted at + 10 ppm U.

* For conversion to U3O8the uranium ppm values should be multiplied by 1.18.

Co-ordinates are WGS84 and have been measured by hand held GPS.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled and/or assessed by Dr Joseph Drake-Brockman who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Drake-Brockman is employed by Drake- Brockman Geoinfo Pty Ltd. Dr Drake-Brockman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and a Qualified Person as defined in the March 2006 edition of the AIM Guidance Note for Mining, Oil and Gas Companies. Dr Drake-Brockman consents to the inclusion in the report of the matters based on his assessment of the available information in the form and context in which it appears.

**ENDS**

Contacts:
Ross Warner Uranium Resources plc Tel: 07760 487 769
James Pratt Uranium Resources plc Tel: 07747 832 043
Hugh Warner Uranium Resources plc Tel: +618 9388 3006
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477
Hugh Oram Nabarro Wells & Co. Limited Tel: 020 7710 7400