Some news for the interested- 22nd December 2006 Uranium...

Some news for the interested-



22nd December 2006



Uranium Resources plc

(‘Uranium Resources’ or ‘the Company’)



Raises £1.85 million to advance uranium exploration in Tanzania



Uranium Resources plc, the AIM traded uranium exploration and development company, has received binding commitments to raise £1.85 million through the issue of 73,900,000 new ordinary shares at 2.5p per share. The Company expects to announce shortly that is has received binding commitments in respect of a further 6,100,000 new ordinary shares on the same terms. The proceeds of the placing, conducted with new institutional and private investors and the directors of the Company, will be utilised to advance its existing portfolio of uranium assets in Tanzania and for working capital. The new investors include Geiger Counter Ltd.



Uranium Resources is primarily focused in the Karoo Basin in Southern Tanzania, where it currently has prospecting licences and applications spanning circa 7,000 sq km, making it one of the largest exploration land holders in this area. To develop these areas it has signed a farm in agreement with Western Metals Ltd (ASX:WMT), in respect of five licences where Uranium Resources is free carried. The Company also has a joint venture agreement with WMT in respect of an additional three licences acquired earlier this month.



The Company is currently preparing for the Tanzanian field season in April 2007, which will include further trenching, ground radiometric surveys, airborne radiometrics and drill access preparation for drilling. Subject to completion of negotiations with a drilling contractor, we are currently aiming to commence drilling in June 2007.



Uranium Resources director Ross Warner said: “We were very pleased with the demand for the placing which will enable us to advance what we believe to be an exciting portfolio of exploration assets, in a prospective area for uranium. We are at an early stage of development, however we feel there is a huge opportunity for the Company to build upon its portfolio of uranium assets and capitalise on the rising demand for uranium investment opportunities.



“Initial trenching results from our Mtonya licences look promising, confirming high grade uranium mineralisation in channel samples. It is our aim to advance our licences in the Karoo Basin and continue reviewing other potential projects in known uranium districts in Tanzania and other parts of the world. Through expanding our operations in Africa, we hope to strengthen our relationships with uranium industry specialists and become a significant player in the uranium market.



“The Company will now develop plans to potentially list on the Australian Stock Exchange. The Board believes that such a move will alleviate the liquidity issues that our shareholders face on AIM and reduce or eliminate the disparity in valuations between the Company and Western Metals.”



The Company proposes to issue the new shares on 15 January 2007. Application will be made for the admission of the new ordinary shares to trade on the AIM market. The new ordinary shares will rank pari passu with the existing ordinary shares of 0.1p each in the Company and dealings in these new ordinary shares are expected to commence on 15 January 2007.



Each of the directors has participated in the fundraising as follows:



New Shares Total Shares Total shareholding

Hugh Warner 3,000,000 24,706,666 8.49%*

James Pratt 3,000,000 4,000,000 1.37%*

Ross Warner 2,000,000 3,000,000 1.03%*



* The director’s total shareholding as a percentage of the expanded ordinary share capital of the Company.



The total number of ordinary shares on issue following this issue will be 284,900,000.

Latest London trades--
3.00 4.50 1,705,838 4.25 3.30 3.63 on 22-Dec-2006
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Last 5 trades
Time/Date Price Volume Trade value Type
12:36:19 22-Dec-2006 4.05 245,378 9,937.81 Ordinary Trade
12:25:13 22-Dec-2006 3.50 100,000 3,500.00 Single protected transaction
12:21:45 22-Dec-2006 4.05 70,000 2,835.00 Ordinary Trade
12:00:28 22-Dec-2006 4.15 7,500 311.25 Ordinary Trade
11:39:24 22-Dec-2006 4.06 200,000 8,125.00 Single protected transaction