Uranium Resources, Inc. Completes Private Offering

Uranium Resources, Inc. Completes Private Offering

Uranium Resources, Inc., a uranium exploration, development, mining and production company, announced today the closing of a negotiated private placement transaction with institutional investors for shares of its common stock. The sale raised $14,304,300. The net proceeds of the offering are for the acquisition, permitting, exploration and development of additional properties in Texas and for general corporate purposes.

URI sold 3,295,920 shares of its common stock to a select group of institutional and accredited investors at a price of $4.34 per share which represented a 10 percent discount to the last sale price on May 13, 2008; and warrants to purchase 988,771 additional shares of common stock, at a price of $5.78, which represented a 20 percent premium to the last sale price of the Company’s common stock on May 13, 2008. These warrants expire 60 months after issuance and are exercisable immediately. In addition, ratchet warrants to purchase shares of common stock at $0.01 per share were issued as part of the private placement. The ratchet warrants are triggered and become immediately exercisable in the event that the Company should issue shares of Common Stock at a price below $4.34 per share. The number of shares that may be purchased upon the exercise of the ratchet warrants is determined by a formula that results in the effective price paid by the investors in this offering being equal to the price paid in a subsequent below $4.34 per share offering. The ratchet warrants expire on the earlier of 12 months following issuance, or ten days after the consummation of the sale of shares of the Company’s common stock which raises in one or more transactions at least $80 million in gross proceeds.

Oppenheimer & Co. acted as placement agent for Uranium Resources on this transaction. Pursuant to the agreement, Uranium Resources is required to file a registration statement with the U.S. Securities and Exchange Commission within ten business days covering the resale of the shares of common stock sold to the investors. Until they are registered, the securities offered in the private placement may not be offered or sold in the United States, absent an applicable exemption from registration under the Act.


Uranium Resources Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 7 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where the Company currently has ISR mining projects. URI also has 183,000 acres of uranium mineral holdings and 100 million pounds of uranium mineralized material in New Mexico. The Company acquired these properties over the past 20 years along with an extensive information database. URI’s strategy is to capitalize on the strong global market for uranium by fully exploiting its resource base in Texas and New Mexico, acquiring new assets and through joint ventures or partnerships.


Investors: Kei Advisors LLC Deborah K. Pawlowski, 716-843-3908 dpawlowski@keiadvisors.com or James M. Culligan, 716-843-3874 jculligan@keiadvisors.com or Uranium Resources, Inc. David N. Clark, 361-883-3990 President and CEO or Media: April Wade, 505-440-9441 Vice President of Communications and Government Relations


Source: Uranium Resources, Inc.

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