Texas Properties

Uranium Resources currently controls three major properties in the state of Texas. Kingsville Dome, Rosita and Vasquez (Figure No. 2.1). In addition, the Company controls the Mosser and Marshall properties which are currently being evaluated for their mining potential. URI began operations in 1977 in the Texas gulf coast uranium region, which is rich in uranium ore. The Company has successfully completed several projects in the region and has produced over seven million pounds of uranium to date. URI routinely evaluates other properties in the region to discover future potential opportunities.

The Kingsville Dome property consists of mineral leases from private landowners on about 2,354 gross and net acres located in central Kleberg County, Texas. The leases provide for royalties based upon a percentage of uranium sales of 6.25%. The leases have expiration dates ranging from 2000 to 2007. We hold most of these leases by production; and with a few minor exceptions, all the leases contain clauses that permit us to extend the leases not held by production by payment of a per acre royalty ranging from $10 to $30. We have paid such royalties on all material acreage. Mineralization is found in the Goliad formation at depths of 600 to 750 feet.

Initial production commenced in May 1988 and continued until July 1999, when depressed uranium prices led to the suspension of production until April 2006. The Company believes there is a significant quantity of uranium remaining at Kingsville Dome.

A radioactive material license and underground injection control permit have been issued. As new areas are proposed for production, additional authorizations under the area permit are required. Approval of our Production Area Authorization #3 was received in February 2006 which allowed for the start-up of production at Kingsville Dome in April 2006. Restoration activities are being conducted as required by the permits and licenses on this project.

Kingsville Map

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The Property:
URI has a mineral lease on 872 gross and net acres located in southwestern Duval County, in South Texas. The primary term expires in February 2008; however, we hold the lease by production. The lease provides for royalties based upon 6.25% of uranium sales below $25 per pound and royalty rate increases on a sliding scale up to 10.25% for uranium sales occurring at or above $40 per pound. Mineralization is found in the Oakville formation at depths of 200 to 250 feet.

Vasquez commenced production in October 2004 and the Company continues to conduct restoration and reclamation operations on the property. All of the required permits for this property have been received.

Permitting Status:
All of the required permits for this property have been received.

Vazquez Map

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The Property:
The Rosita and Rosita South properties consist of mineral leases from private landowners on about 2075 gross and net acres (775 acres in Rosita and 1300 acres in Rosita South) located in north-central Duval County, Texas. The leases provide for sliding scale royalties based on a percentage of uranium sales. Royalty percentages on average increase from 6.25% up to 18.25% when uranium prices reach $80.00 per pound. The leases have expiration dates ranging from 2012 to 2015. We are holding these leases by payment of rentals ranging from $10 to $30 per acre. Initial production at Rosita commenced in 1990 and continued until July 1999, when depressed uranium prices led to the suspension of production. The Company expects to begin producing at Rosita again in the first half of 2008. and is conducting restoration and reclamation activities at the site. Mineralization is found in the Goliad Formation at depths of 125 to 350 feet.

A radioactive material license and an underground injection control permit have been issued for the Rosita property. The underground injection control permit is being amended to include the Rosita South property. Production is expected to resume in areas already included in existing Production Area Authorizations. As new areas are proposed for production, additional authorizations under the permit will be required.

ROSITA MAP

Mosser Exploration Property
The Mosser property is a Goliad prospect consisting of three parcels: Hope Garden, which has 1500 gross and 825 net acres; Orange Grove, which has 1547 gross and 851 net acres; and Ben Bolt, which has 2350 gross and net acres. They are all located in Jim Wells County, Texas

Marshall Exploration Property
The Marshall property is a Goliad and Oakville prospect consisting of 1953 gross and net acres. It is located in Duval and McMullen counties, Texas.



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