News

RNS Announcements

Award of Options

17 April 2007

Uranium Resources plc, the AIM listed uranium exploration and development company, is pleased to announce that the following options over shares in the Company have been awarded to Dr Joseph Drake-Brockman, the Company's consulting geologist.

The Directors consider Dr Drake-Brockman's uranium exploration expertise to be comparatively rare and important for the development of the Company's project. Consequently, the Directors believe that his services will be increasingly in demand as activity in the uranium exploration sector continues to escalate. Accordingly, the Directors consider it appropriate and necessary to provide him with additional incentives in the form of the award of options in order to retain his services into the future.

Dr Drake-Brockman has been instrumental in the development of the Company's flagship uranium project in Tanzania. His association with the project began in the 1970's when he first worked as part of the team that identified the uranium anomalies in Southern Tanzania and continues to the present day when Dr Drake-Brockman carried out the Company's first field programme generating first assay results of 0.1% uranium oxide.

As previously announced on 30 March 2006, the 2006 exploration programmes carried out under the management of Dr Drake-Brockman generated the following:

- Best trench results from channel samples include:

•	22,950 ppm (2.29%) U,or 27,081 ppm (2.71%) U308; and
•	20,820 ppm (2.08%) U or 24,567 ppm (2.46%) U308.

• Increased size and strike length of the 'Henri Anomaly' with a further 6 ground radiometric anomalies of >200cps defined within 250m of the Henri discovery trench
  
  
• Including Henri, a total of 8 anomalies have now been identified along a 6km trend at the Mtonya Project and numerous drill targets have now been generated
  
  
• More high grade uranium results have been received from systematic
  channel sampling of trenches at Mtonya
  

Uranium Resources is primarily focused in the Karoo Basin in Southern Tanzania, with prospecting licences and applications spanning circa 7,600 sq km, making it one of the largest exploration land holders in this area.

To develop these areas it has signed a farm in agreement with Western Metals Ltd (ASX:WMT), in respect of five licences. Under the farm-in agreement, WMT must spend an initial A$2m to earn a 40% interest in the joint venture and has the option spend a further A$2m to earn an additional 20%. The Company anticipates that WMT will earn its initial 40% interest in tenements by the completion of the 2007 exploration programme.

The Company has also entered into a second joint venture on a 50:50 basis with WMT. This second joint venture is in respect of new licences applied for or acquired in Tanzania after the date of the farm-in agreement. These licences will be shared equally between the Company and WMT.

WMT has recently announced an approximate A$25m fund raising which when completed will give WMT cash reserves approaching A$29m and a market
capitalisation of approximately A$180m. The Directors believe that the above farm-in between the Company and WMT is WMT's most advanced project. The Directors further believe that WMT has the financial capacity and critical mass of technical and commercial personnel to rapidly explore and evaluate the Company's uranium exploration tenements in Southern Tanzania. Dr Drake-Brockman is also a consulting geologist to WMT.

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For further information please visit www.uraniumresources.com or contact:

 

Hugh Warner	Uranium Resources plc	Tel	+61 413 621 652
James Pratt	Uranium Resources plc	Tel	07747 832 043
Ross Warner	Uranium Resources plc	Tel	07760 487 769
Hugh Oram	Nabarro Wells & Co. Limited	Tel	020 7710 7400
Hugo de Salis	St Brides Media & Finance Ltd	Tel	020 7242 4477