News

RNS Announcements

Tanzanian Uranium Exploration Update

21th August 2007

Highlights

• June 07 Drill Programme Confirms Widespread Sub-surface Uranium Over Two Kilometre Trend
• Latest results indicate sub-surface uranium mineralization exists one kilometre north and south of Henri Prospect where trench channel samples up to 2.7% U3O8 were collected during last years exploration.
• Drilling has recommenced and will continue throughout August
• Overall the June programme has achieved the objective of identifying sub-surface mineralisation including significant multiple thick high grade zones at the Henri Prospect:
  • 7 metres at 1,233 ppm U3O8 including 3 metres at 2,607 ppm U3O8
  • 7 metres at 549 ppm U3O8 including 4 metres at 843 ppm U3O8
  • 6 metres at 507 ppm U3O8 including 2 metres at 1,145 ppm U3O8
  • 7 metres at 400 ppm U3O8 including 3 metres at 770 ppm U3O8
  • 4 metres at 515 ppm U3O8 including 2 metres at 855 ppm U3O8

Uranium Resources, the AIM listed uranium exploration company, has received the final assay results from reconnaissance drilling at the Mtonya uranium exploration project in Tanzania. The results are from samples submitted from the 1,648 metre reverse circulation drilling programme conducted in June 2007.

The results from the broad-spaced drilling continue to support the widespread distribution of sub-surface sandstone-hosted uranium mineralisation over a 2 kilometre trend which forms part of a larger 14 square kilometre anomaly.

Uranium Resources director James Pratt said, "These are again highly favourable results. The initial first pass drilling programme has achieved its aim of identifying significant subsurface uranium mineralisation in our Mtonya licence areas. This coupled with the high grade trenching results provides us with great encouragement for our future exploration and development programmes. We believe that our area of operation in Tanzania is highly prospective and we hope that current and future exploration programmes will emphasise this going forward."

Shareholders are urged to read the announcement of the company's farm-in partner, Western Metals Ltd, at www.westernmetals.com.au which includes a number of diagrams that the directors consider important to gain a proper understanding of this announcement. The diagrams in this announcement will also shortly be available on the Company's website, www.uraniumresources.co.uk.

Drilling Results

Results to date have shown that strong subsurface mineralisation is present through the area with the potential for multiple horizons of high grade U3O8. The drilling has indicated multiple mineralised horizons preferentially hosted in sandstone units frequently at or near contact with mudstone units. This is typical for sandstone hosted roll front style uranium deposits such as the Kayelekera deposit in nearby Malawi.

The latest results show that subsurface mineralisation occurs over the entire zone from Para to Tahbilk. The peak intersection of 1 metre at 470ppm U3O8 from the broad spaced drilling at Para supports the potential for high grade mineralisation to exist over the entire trend. The Tahbilk anomaly has returned a peak value of 1 metre at 140 ppm U3O8 from two broad spaced holes potentially located off the main anomaly area.

Notes on Table 1:

Results announced on July 24th have a " * ".

Samples have been collected by riffle splitting dry intervals and representative tube sampling of wet intervals. Samples have been analysed by ICP using laboratory method ME-ICP61s by ALS Chemex laboratory Perth Australia. Certified reference standards and blanks have been included by Western Metals in addition to laboratory control standards. All results are in U3O8 ppm uranium with analysis method accuracy quoted at 10 ppm U3O8. Co-ordinates are WGS84 and have been measured by hand held GPS.

All intersection widths are estimated to be true width based on local geological observation.

Programme Strategy

Field work in 2006 highlighted many areas of potential with the Henri, Para, Tahbilk, Galway Moysten, and Grandfather anomalies providing initial targets. The June drilling programme tested Henri, Para and Tahbilk and follow-up programmes are planned on these and other known targets.

Diagram 1 in Western Metals' announcement shows airborne radiometric survey uranium data for the Mtonya area collected in April 2007. This shows multiple anomalies exist in the area with an exposed anomaly trend greater than 7 kilometres by 2 kilometres.

Programme Details

The drilling programme conducted in June totalled 1,648 metres of RC drilling comprising of 29 holes. The maximum hole depth was 98 metres with an average of 56 metres.

Twenty one drill holes were completed on the Henri anomaly where previous trenching work had yielded strong surface mineralisation. Two drill sections, approximately 200 metres apart, were completed in addition to some isolated holes off section.

At Para, approximately 800 metres south of Henri, two sections of drilling with holes spaced at 100 metres were completed. Each section comprised three drill holes.

Two drill holes were completed on the Tahbilk anomaly approximately 700 metres north of Henri.

All holes were geologically logged on site by Western Metals staff. Sampling was conducted on one metre intervals using representative sampling techniques. All completed holes have been cased to allow the geophysical surveys to be conducted.

Samples were submitted to the ALS Chemex laboratory in Tanzania for preparation and then dispatched to their Australian laboratory for analysis.

To date results from 11 of the Henri drill holes have been received, with results of the remaining 18 holes expected in the coming four weeks.

Diagram 2 of Western Metals' announcement shows the drill hole collar locations overlain on ground radiometric contour of >15 times background counts per second (cps).

Future Programme

Drilling recommenced in the area in early August with the program planned to further test the anomalies and follow up on the initial results. In addition to drilling, field crews will undertake extensive trenching, sampling and mapping on the Grandfather, Tahbilk, Para, and Henri anomalies. Ground scintillometer surveys will be focused on detailing targets within the 7 kilometre trend that have not been evaluated to date.

This information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled 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'. Dr Drake-Brockman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

James Pratt	Uranium Resources plc	Tel 07747 832 043
Ross Warner	Uranium Resources plc	Tel 07760 487 769
Hugh Warner	Uranium Resources plc	Tel +618 9217 3350
Hugh Oram	Nabarro Wells & Co. Limited	Tel 020 7710 7400
Hugo de Salis	St Brides Media & Finance Ltd	Tel 020 7242 4477