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Overview

To date there has been little uranium exploration conducted in Tanzania, despite favourable geology for uranium deposits, a stable multi party democracy, which supports foreign direct investment and an internationally recognised mining code in place. In recent years resource companies have begun to recognise the economic potential of the area, with majors such as Anglo Gold Ashanti as well as mid-caps including Barrick Mining and Resolute Mining are now operating in Tanzania.

Uranium Resources was established to explore and develop uranium assets focussed in Tanzania. The Company has built a land position of 12,591.6 sq km of uranium licences with 2,001 sq km under application within the highly prospective Karoo basin in southern Tanzania, which comprises of three primary projects namely the Mtonya, Ruhuhu and Ruvuma developments.

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Mtonya

The Company's flagship project is Mtonya located 100 km east of the district capital of Songea, where eight anomalies have already been identified over a six kilometre trend. The Mtonya project covers 7 leases, which span over the Usagaren basement to the west and the Karoo Luwegu Basin to the east. The Usagaren basement is interpreted to be the source of the uranium mineralisation with the porous sandstone units of the Karroo formation hosting redox style mineral enrichments.

Initial assay results from reconnaissance drilling have been promising and have indicated the presence of significant subsurface uranium mineralisation in these licence areas. The initial drilling programme achieved its aim of identifying highly anomalous areas and has provided us with great encouragement for future exploration and development programmes.

Ruhuhu

Additionally Uranium Resources acquired the Ruhuhu project located in south west Tanzania, which spans the upper Karoo sequence of the Ngaka Sub-basin in the Ruhuhu Basin, approximately 70 kilometres north west of Songea. Previous reconnaissance work completed in the 1980's indicated a prospective sandstone/siltstone outcrop within the tenement. In addition several untested airborne radiometric anomalies have been identified from historic geosurvey data.

Ruvuma

The Company has acquired 6,498 square kilometres of prospecting licences in the Ruvuma area. The Ruvuma project is located in southern Tanzania, predominantly spanning over areas of the Karoo Basin, sediments, host sediments of the Company's Mtonya Project as well as Paladin's Kayelekera Operation 300km to the west in Malawi.

Western Metals JV

Uranium Resources is entering a very exciting phase of exploration. With its partner Western Metals Ltd it has established a new Tanzanian office with an operations team to support exploration and development. In addition the Joint Venture has appointed a Country Manager, Senior Exploration Geologist, two Junior Geologists, Field Supervisor and Administration Manager to support Uranium Resources' Board in expanding the Company's operations.

Strategy

It is Uranium Resources near term objective to make investments in uranium assets and increase its exploration portfolio. The Company will do this through the identification and acquisition of prospective land packages which compliment its existing exploration portfolio in Tanzania, in conjunction with its Joint Venture partner Western Metals Ltd.