Uranium Resources : Annual Report & Accounts, 30 June 2016 and Notice of AGM

21 November 2016

Uranium Resources Plc / Market: AIM / Epic: URA / Sector: Exploration

Uranium Resources plc ("Uranium Resources" or the "Company") Final Results and Notice of AGM

Uranium Resources plc, the AIM listed uranium exploration company operating in Tanzania, announces its results for the year ended 30 June 2016.

The Annual Report for the year ended 30 June 2016 will be posted to shareholders shortly along with a notice of the Company's Annual General Meeting ("AGM").

The AGM will be held at the offices of Shakespeare Martineau LLP, 6th Floor, 60 Gracechurch Street, London EC3V 0HR on Wednesday 21st December 2016 at 11.00 am

The Annual Report and Notice of AGM can also be viewed on the Company's website at http://www.uraniumresources.co.uk/index.php?cid=0065.

For further information please visit www.uraniumresources.co.uk or contact:

Alex Gostevskikh Uranium Resources plc Tel: [phone]

Matthew Johnson/ David Hignell

Northland Capital Partners Ltd Tel: [phone]

Notes to editors

Uranium Resources plc is an AIM listed exploration and development company. It is the Company's strategy to advance its existing assets and strengthen its portfolio via opportunistic acquisition. Uranium Resources has uranium licences in the highly prospective Karoo Basin in Southern Tanzania.

1

URANIUM RESOURCES PLC MANAGING DIRECTOR'S STATEMENT FOR THE YEAR ENDED 30 JUNE 2016

The Company is a uranium explorer with its principal focus on the Mtonya Project and various exploration prospects within the Project area ('Mtonya' or 'the 'Project') in the United Republic of Tanzania. The Mtonya Project area hosts roll-front uranium mineralisation and is expected to be amenable to in-situ recovery ('ISR'), the most cost-effective and environmentally safe method of uranium extraction.

In May 2013, the Company announced a maiden uranium resource for its flagship Mtonya project. The Project achieved this major milestone in one of the most challenging times for the uranium industry as uncertainty the uranium market continues to persist amidst the declining prices.

During the reporting period, the Mtonya Project remained on care and maintenance although the Company continued to review its exploration and development strategy, including the possibility of corporate transactions, to advance and unlock Mtonya's potential.

The Company's Board believes that Mtonya has the potential to become a world-class uranium deposit and that the Company will benefit from increased global demand for uranium in the future as any profound solution to climate change is not possible without a prominent role for nuclear power generation. Mtonya's ISR potential could become even more attractive as the uranium industry attempts lower production costs and seeks targets for ISR.

Following the definition of Mtonya's maiden resource, the Company reached a loan agreement with Estes Limited ('Estes'), its cornerstone investor and strong supporter of the Project. As at the date of the signing Financial Statements, the Estes loan agreements of 15 March 2013 and 18 March 2014 were fully drawn and amounted to a total of US$1,300,000 excluding the interest and were extended to 31 December 2016. On 30 September 2016 the Company announced that the bridging loan facility had been increased to US$500,000 and extended to 31 January 2017, thus reaffirming Estes' ongoing support for the Company as management explore opportunities to finance a new drilling programme with the objective of expanding Mtonya's footprint.

Uranium Resources remains committed to developing Mtonya and advancing it to the development stage with a focus on ISR projects. The Company also continues to identify and assess new resource opportunities which complement its existing assets.

Mtonya

The Company's 100%-owned flagship Mtonya project is located approximately 60 km south of the significant Mkuju River deposit, which is owned by ARMZ and operated by Uranium One, and has an indicated and measured resource of 93.3 Mlb U3O8 grading 257 ppm U3O8.

The Company's exploration model is based on the premise that the neighbouring Mkuju River project to the north of Mtonya is a small segment of a regional mineralised roll-front feature, most of which has no surface exposure.

The Company believes that the Mkuju River is an uplifted and eroded part of a regional roll-front roughly following a regional normal fault, forming narrow, thin, and disconnected pods and lenses of uranium ore that are dominated by secondary uranium minerals such as metaautunite and metauranocircite. The near- surface uranium mineralisation at Mtonya remains a valid exploration target, but its significance is viewed as a lesser priority in contrast with deeper mineralisation that may yield a high class uranium deposit, which is amenable to ISR.

The completion of the 26,485 m resource-definition drilling programme in 2012 allowed the Company to delineate a maiden CIM-compliant Inferred Resource of 2.014 Mlb U3O8 grading 255 ppm U3O8. On a

250x50 m grid the resource drilling remains fairly coarse and significant upside potential remains untested along strike of the roll-front feature and at depth. Volumetrically, only 1/6 of prospective lithologies have been systematically drilled at Mtonya.

The Company's Board has spent much of the last two years refining plans for an extensive in-fill and step- out drilling programme for Mtonya to test the deeper redox tiers and extend the known uranium mineralization along strike. The Company intends to undertake this drilling programme at Mtonya when it has raised sufficient funds in order to complete the programme and the uranium market fundamentals have improved to the extent that the potential of the Project can be recognised by the wider market.

Some of the Company's licences will have reached the end of their term within 12 months of the date of the group financial statements. This includes the main Mtonya licence. In such cases license renewal, extension, or conversion of the licence has been or will be applied for. While management currently expect that each renewal, extension or conversion will be granted this cannot be guaranteed. Interests in exploration and mining tenements in Tanzania are governed by Tanzanian legislation and are evidenced by the granting of leases or licences. Each lease or licence is for a specific term and carries with it work commitments and reporting conditions as well as other conditions requiring compliance. These conditions include the requirement, for exploration licences, for reduction in the area held under licence from time to time unless it is considered that special circumstances apply. They also include that at the end of the exploration licence period application be made for extension of the exploration licence or for conversion to a mining licence.

With respect to the pending application for extension of one of the Company's key licenses, the Directors note that delays in processing such applications are not unusual in Tanzania and that this is reflected in the fact that the Tanzanian government continues to allow the company to enjoy full access to the site.

Financial Results

Uranium Resources is at the exploration stage of its development. It is not producing revenue and as such the Company is reporting a loss of US$15,447,000 for the year ended 30 June 2016 mainly due to the impairment of the Exploration and evaluation assets (2015: loss US$393,000).

Funding and going concern

In March 2013, March 2014 and February 2015 (with Supplementary agreement dated April 19, 2016) the Company entered into a US$1 million, US$300,000 and US$500,000 loan facility agreements ('the Loans') respectively with its major shareholder and strategic investor Estes Limited ('Estes'). The Loans are unsecured and bear interest at LIBOR.

At 30 June 2016, the Company had drawn down US$1,689,610 (excluding interest) against these facilities. Estes continues to show its support in providing this flexible funding option to the Company. The Group plans to continue its work programme in the next twelve months and beyond as it develops and evaluates its Uranium project pipeline. The undrawn funds available from the loan facility, in conjunction with the Group's current cash resources, do not provide the Group with sufficient available resources to meet all of its commitments for the next twelve months; the Group will therefore need to raise additional funds. The Company has received a confirmation of interest from Estes Limited in providing additional finance. Consequently the directors consider it appropriate to prepare the financial statements on a going concern basis.

Pursuant to the requirements of IFRS 6 and IFRS 13, the Directors assessed the Company's assets for impairment in the current market for exploration uranium properties. The Directors, drawing on their skills, knowledge, and experience and taking into account external geological consultants reports, aggregate past expenditures on the project, its state of development, its rarity and large potential size, lack of active market for exploration uranium properties, as well as the range of prices that would be considered in a non- distressed sale in the current market, have determined the fair market value of the Company's E&EA in the

amount of USD 2,800,000 thus resulting in impairment charge of after recognition of an impairment charge of US$14,901,000 to the evaluation and exploration assets.

The Directors remain confident that Mtonya's potential, together with the Group's historic track record of raising additional funds and the interest being shown from potential partners, will enable the Group to fully finance its obligations beyond a period of at least twelve months from the date of this report, including meeting future capital and working capital requirements and also settling the Estes loan facilities, which are due for repayment in full on 31 January 2017. Estes remains very supportive of the Company and acknowledges the challenges that continue to impact the market for uranium exploration and may consider extending its outstanding loans on an ongoing basis while the Company continues its discussions with potential strategic partners and seeks additional sources of finance.

Outlook

Negative conditions continue to persist in the uranium market and they adversely affect the Company's ability to fund further exploration and development at Mtonya. The Company is currently reviewing a number of strategic alternatives including, but not limited to, joint ventures, strategic partnerships, and mergers or other corporate transactions to enhance shareholder value.

Major shareholder Estes continues to be supportive of the Company and, at this stage, has indicated it intends to invest alongside a suitable strategic investor.

Despite the challenging conditions the Company is currently facing, management believe the uranium market has the potential to make a sustained recovery. The recent announcement by Mantra Tanzania Limited, a subsidiary of Uranium One Holdings, regarding a new mining programme at the Mkuju River Project, has given the Board grounds for some cautious optimism as we look ahead to 2017.

Alex Gostevskikh Managing Director 21 November 2016