<PAGE> 1
URANIUM RESOURCES, INC.
PRESS RELEASE FOR IMMEDIATE RELEASE
DALLAS, TEXAS OTCBB SYMBOL-URIX
AUGUST 21, 2000
URANIUM RESOURCES, INC. ANNOUNCES NEW SOURCES OF FINANCING
DALLAS, August 21, 2000 -- Uranium Resources, Inc. (the "Company")
announced that it has raised $730,000 of equity by the issuance of 7.3 million
shares of Common Stock at $0.10 per share to a group of private investors. The
investors were also issued five-year warrants to purchase an aggregate of
5,475,000 shares of Common Stock at an exercise price of $0.20 per share. The
Company also announced that it has signed a letter of intent with Texas
regulatory authorities and the Company's bonding company that, when finalized,
would provide the Company access to up to $2.3 million of Company funds pledged
to secure the Company's restoration bonds. Approximately $250,000 has been
released to the Company to date under the letter of intent. The funds are being
used by the Company to perform restoration at the Company's Kingsville Dome and
Rosita mine sites in South Texas. When finalized, the term of the agreement is
expected to run through the end of 2001. Discussions to finalize this agreement
are ongoing and are expected to be completed in August 2000.
The Company also stated that certain key employees will convert
approximately $186,756 of previously deferred compensation into shares of Common
Stock at $0.20 per share. These persons will also continue to defer a portion of
their compensation and will be entitled to convert that deferred compensation
into shares of Common Stock at $0.20 per share. The Company will also issue
certain key employees stock options to acquire a total of 2.25 million shares of
Common Stock at $0.20 per share, subject to stockholder approval. In addition,
the Company will allow holders of current outstanding options covering 903,632
shares of Common Stock at prices ranging from $0.25 per share to $17.00 per
share to surrender these options for new options with an option price of $0.20
per share.
The Company also announced today that it reached a compromise with its
regulatory counsel settling an outstanding indebtedness of approximately
$560,000 for a payment of $100,000 in cash, the assignment of certain claims,
the issuance of 720,000 shares of Common Stock and an agreement to issue an
additional 200,000 shares upon the occurrence of certain events.
Finally, the Company also announced that it has finalized its
previously announced settlement with the Liquidating Trustee in connection with
the bankruptcy of Oren Benton and certain of his affiliated companies. Under the
settlement, the Trustee released the Company from approximately $1.6 million in
claims in exchange for the Company releasing certain claims, assigning certain
claims to the Trustee and the issuance of the Company's $135,000 promissory note
that requires no payments until maturity on July 17, 2005 and is convertible by
the Trustee into shares of Common Stock at $0.75 per share. The note is secured
by a deed of trust covering the Company's Kingsville Dome and Rosita properties.
(more)
<PAGE> 2
Paul K. Willmott, Chairman and CEO stated "I am pleased that our
efforts over the last year to maintain the financial viability of URI are having
some success. The Company's near-term ability to survive the downturn in the
uranium market was dependent upon the completion of the equity offering and the
implementation of the agreement with the Texas agencies and our bonding company.
The agreements we have announced today should permit the Company to remain
operating for another five months. It will be necessary, however, to obtain
additional funds to permit us to survive thereafter, and our efforts will be
ongoing. Unless other funds become available from future sources and the
restoration agreement is finalized in a timely fashion, the Company would more
likely than not have to seek bankruptcy protection before the end of January
2001."
Except for historical information contained in this press release, the
matters discussed herein contain forward-looking statements. Readers are
cautioned not to place undue reliance on forward-looking statements. Such
forward-looking statements are inherently uncertain, and investors must
recognize that actual results may differ from management's expectations. Key
factors impacting current and future operations of the Company are discussed in
detail in the Company's reports filed under the Securities Exchange Act of 1934
and include, without limitation, the spot price of uranium, weather conditions,
operating conditions at the Company's mining projects, government regulation of
the mining industry and the nuclear power industry, the world-wide supply and
demand of uranium, availability of capital, timely receipt of mining and other
permits from regulatory agencies.
Uranium Resources, Inc. is a Dallas based uranium-mining company, whose
shares trade on the OTC Bulletin Board under the symbol URIX. The Company
specializes in in-situ solution mining and holds substantial uranium resources
in South Texas and New Mexico.
CONTACTS: Paul K. Willmott, President, or
Thomas H. Ehrlich, Vice President - CFO
Uranium Resources, Inc.
(972) 387-7777
(30)
