[cid:image002.gif@01CCEB03.6A79FAF0]
Metals & Mining
14 February 2012
Uranium Resources plc (URA) Price: 2p Recommendation: Speculative Buy Market Cap: �13.5m Drilling Commences at Mtonya Prospect in Tanzania Uranium Resources, the AIM-listed uranium exploration company, has announced the commencement of its 2012 drilling campaign at its 100%-owned Mtonya Project in southern Tanzania. As previously set out in its announcement of 12 December 2011, URA has identified three tiers of reduction-alteration at Mtonya.

The programme is designed to comprise 20,000m of open-hole and diamond-core drilling.

It will pursue the following objectives: * further test the roll-fronts identified in tier 2 at depths of 240-260m; * identify and establish geometries for roll-fronts in tier 1 at depths of 170-200m; and * test for uranium mineralisation in tier 3 at depths of 300-320m. Drilling is currently underway by a single rig, with further rigs to be deployed during the course of the campaign.

The 2012 programme will be executed by several drill rigs simultaneously, with part of the fleet to target tight-spaced drilling with a view to establishing a maiden resource estimate, while the other rigs will be extending the already known roll-fronts laterally. The 2011 drilling and results of the recent mineralogical studies suggest similarities with the well-known sandstone-hosted roll-front uranium deposits of Kazakhstan and the US. Comment The current drilling programme represents a follow-up to the 2011 drilling programme that failed to intersect significant uranium mineralisation, but defined strong geological and geochemical evidence for roll-front uranium mineralisation.

We look forward to the results of this drill programme, which we believe will prove or disprove the geological model at Mtonya. The company intends to define uranium deposits that are amenable to in-situ leach mining.

In-situ recovery techniques are common in Kazakhstan and North America; they involve pumping a weakly acidic solution down into the uranium host unit, where the uranium will dissolve into the solution.

The pregnant solution is then pumped back to surface.

In order for this process to work, the host should ideally be a porous sandstone that is sealed by an impermeable base and ceiling so the porous host acts as a conduit for the solution to flow through.

Initial indications are that the Mtonya geology looks set to support this process. Recommendation We continue to rate Uranium Resources as a SPECULATIVE BUY.

We are optimistic that further targeted drilling, based on the knowledge gained from the recently completed drilling, will return economic grades and widths of uranium in an area with strong potential for in-situ uranium extraction. Ambrian acts as Nomad and Broker to this company ________________________________ Metals & Mining Research
Duncan Hughes Adam Kiley Jessica Mauss Nick Mellor
+44 (0)20 7634 4775 +44 (0)20 7634 4777 +44 (0)20 7634 4757 +44 (0)20 7634 4762
[cid:image003.jpg@01CCEB03.6A79FAF0] Ambrian Partners Mining Research team has been in the Top 2 within the Extel UK Small-Cap Metals & Mining Sector for the last three years, and ranked #1 in the Hemscott Rankings Stockbroker and Nomad to AIM Basic Materials Sector for 2Q11 [cid:image004.jpg@01CCEB03.6A79FAF0]
________________________________ This document has been approved under section 21(1) of the FMSA 2000 by Ambrian Partners Limited ("Ambrian") for communication only to eligible counterparties and professional clients as those terms are defined by the rules of the Financial Services Authority.

Its contents are not directed at retail clients as Ambrian does not provide investment advisory services to retail clients. Ambrian publishes this document as non-independent research which is a marketing communication under FSA Conduct of Business rules.

It has not been prepared in accordance with the regulatory rules relating to independent research, nor is it subject to the prohibition on dealing ahead of the dissemination of investment research.

It does not constitute a personal recommendation and does not constitute an offer or a solicitation to buy or sell any security.

Neither Ambrian nor any of its directors, officers, employees or agents shall have any liability, howsoever arising, for any error or incompleteness of fact or opinion in it or lack of care in its preparation or publication; provided that this shall not exclude liability to the extent that this is impermissible under the law relating to financial services.

All statements and opinions are made as of the date on the face of this document and are not held out as applicable thereafter.

This document is intended for distribution only in those jurisdictions where Ambrian is permitted to distribute its research.

In particular, it is not intended for distribution in and is not directed as persons in the United States. On the date of this document, Ambrian, Ambrians holding company, persons connected with it and their respective directors may have a long or short position in any of the investments mentioned in this document. Ambrian is a member of the London Stock Exchange and is regulated and authorised by the Financial Services Authority.

Ambrian is registered in England and Wales no.

4236075.

Its registered office is Old Change House, 128 Queen Victoria Street, London EC4V 4BJ.

Ambrian is a wholly owned subsidiary of Ambrian Capital plc. ________________________________ AMBRIAN Old Change House, 128 Queen Victoria Street, London EC4V 4BJ Tel: +44 (0) 20 7634 4700 Fax: +44 (0) 20 7634 4701 www.ambrian.com
The information in this e-mail message is confidential and may also be privileged.

It is only intended for the above named addressee/s.

If you are not a named addressee, you must not disclose, copy or take any action in reliance on this e-mail and should delete it from your system.

If you have received this e-mail in error please contact the sender by return e-mail or by telephone +44 (0)20 7634 4700.

We believe, but do not warrant that this e-mail and any attachments are virus free.

You should take full responsibility for virus checking.