Quarterly Activities Report

Quarter Ending 31 March 2016

HIGHLIGHTS:

Corporate

·

Closing on the sale of Churchrock to Laramide Forecasted for Q2

·

Aspire $12M Financing Finalized April 8

·

Stockholder Meeting Scheduled June 7th

·

Reverse Stock Split Executed March 8th

·

Cash as at 31 March 2016 of US$0.1 million

·

Further $1.25M Financing Executed April 4

Temrezli PFS

·

Advancement of engineering designs and studies for the update to the Pre-Feasibility Study

·

Refinement of In-Situ Recovery well field designs

·

Continued optimization of an updated mineral resource estimate and preparation of a JORC compliant resource report

·

Studies begun of development options and development of a detailed economic model

·

Development of a design for a more advanced hydrologic testing program

1

Discussion

Land and Property Status

The Company did not undertake any drilling activities at any of its properties during the Quarter. Land status for all projects remained constant.  There were no joint ventures executed between the Company and other parties, nor were there any “farm-in” or “farm-out” agreements undertaken.

Temrezli Project, Yozgat Province, Republic of Turkey

The principal focus of the Company’s environmental, engineering and geological activities during the Quarter were directed toward the continued progression of the Temrezli project, including engineering, geological, and permitting efforts in support of the evaluation of development and operational options for the project.  

Engineering Activities

Refinement and optimization studies of the current well field designs and production profiles for the Temrezli deposit continued during the Quarter. The Company’s experienced engineering staff, based in Kingsville, Texas, USA, and technical staff in the Denver, Colorado USA office are collaborating in this effort. The optimization of the current well field design, which is essentially a mine planning exercise, is based upon the currently available hydrological characteristics of the deposit and the most recent mineral resource estimate.

A detailed economic model, including estimated capital and operating costs, for the proposed development of the Temrezli deposit was prepared during the Quarter. This model is based upon the updated mineral resource for the deposit and the internally-generated mine plan/well field design.

2

A review of the previously completed hydrological tests for Temrezli was completed during the Quarter, and a program to acquire additional hydrological performance data was designed. The principal objective of the forthcoming testing program will be to evaluate the hydrological performance of wells.  

Environmental and Community Interaction Activities

·

Meetings continue this Quarter with residents of villages near the Temrezli Project.

Geological Activities

Geological activities this Quarter continued to be focused upon the refinement of the new geological model of the Temrezli deposit and the updated mineral resource estimate, which incorporates additional geological information and recent drilling results. Some re-logging of core was carried out and work continued on the detailed mineral resource report.

Studies of the aquifer characteristics of the Temrezli deposit, as they relate to the development of the proposed ISR (in-situ recovery) well field design, process plant through-put and post-recovery groundwater characteristics continued during the Quarter.

3

US Project Activities

Location Map: Texas, USA Projects.

MAP NOTE:  Alta Mesa Este terminated in December 2015

4

Butler Ranch Project, Karnes County, Texas USA

A limited review of the exploration potential of the Karnes County uranium district, site of our Butler Ranch project, continued during the Quarter. Our evaluation of recently acquired historical geological data and gamma-ray logs and information derived from our Q1 2015 exploration drilling program were assessed. No field work was undertaken at Butler Ranch during Q1 2016.

Location Map: Portion of the Butler Ranch Project.

Kingsville Dome Project, Kleberg County, Texas USA

Plant and well field maintenance continued throughout the Quarter.

Proceedings for the contested case hearing of the TCEQ (Texas Commission on Environmental Quality) permit URO2827 began. All parties to the hearing have been established. The schedule has been set and is expected to conclude by 4^th quarter 2016.  Discovery of data has begun.

TCEQ Permits WDW-247 and WDW-248 were deemed administratively complete.  TCEQ technical review is underway.  The public comment period began for this renewal.

5

Rosita Project, Texas USA

Reclamation of surface disturbances and removal of material from the ISR well fields continued during the Quarter. Maintenance to the liner of a process pond continued throughout the Quarter.

Location Map: Rosita, Texas Project.

Vasquez Project, Duval County, Texas USA

Restoration of the surface of the Vasquez project site continued this Quarter. Work focused upon the collection and removal of ISR well field equipment and infrastructure and restoration of minor surface disturbances associated with ongoing site activities.

An amendment to the Vasquez permit was submitted to the TCEQ to modify the range table in order to proceed with restoration approval.  This amendment was received and determined to be administratively complete.  Technical review by the TCEQ is underway and the public comment period commenced.

Location Map: Vasquez, Texas Project.

6

Location Map: New Mexico, USA Projects.

Cebolleta Project, Cibola County, New Mexico USA

The application for renewal of the Company’s drilling permit continues to be reviewed this Quarter by the Mining and Minerals Division of the State of New Mexico. No work was carried out on the project during the Quarter.

Location Map: Cebolleta, New Mexico Project.

7

Juan Tafoya Project, Cibola, McKinley and Sandoval Counties, New Mexico, USA

An application for renewal of the Company’s exploration drilling permit was completed this Quarter and submitted to the Mining and Minerals Division of the State of New Mexico for review. This review is pending.

Location Map: Juan Tafoya, New Mexico Project.

8

Churchrock and Crownpoint Projects, McKinley County, New Mexico USA

The Company signed definitive documents with Laramide Resources to sell its subsidiary Hydro Resources, Inc. holding the Churchrock and Crownpoint projects, for US$12.5M, comprised of US$5.25 in cash at closing and a promissory note in the amount of US$7.25M, as well as an option to purchase the La Sal property located in Utah, USA.  Closing is anticipated in the second quarter of CY2016.

Location Map: Church Rock, New Mexico Project.

Location Map: Crownpoint, New Mexico Project:

9

Corporate

Registered Direct Offerings

On April 4, 2016, URI completed a registered direct offering for gross proceeds of $1.25 million.  URI sold 375,000 shares of common stock at a price of $2.17 and 200,000 pre-funded warrants at a price of $2.16, which was paid at closing.  The warrants have an exercise price of $0.01 and a term of three years.

On February 4, 2016, URI completed a registered direct offering for gross proceeds of $0.8 million.  Net proceeds to URI, after deducting offering expenses, were approximately $0.8 million.  URI sold 296,667 shares of common stock at a price of $2.82 per share.

Common Stock Purchase Agreement with Aspire Capital

On April 8, 2016, URI and Aspire Capital entered into a common stock purchase agreement (“Purchase Agreement”) which provides for Aspire Capital to purchase up to $12 million of URI’s common stock (or such lesser amount as URI may determine) on an ongoing basis when required by URI.  The term of the Purchase Agreement is 30 months.  No shares shall be issued under the Purchase Agreement until the stockholders of the Company approve the transaction. The Company plans to seek stockholder approval of the transaction at its AGM scheduled for June 7, 2016.

Reverse Stock Split

On March 7, 2016, following the close of trading, URI effected a one-for-twelve reverse split of its common shares.  The consolidated common shares began trading on a split-adjusted basis on March 8, 2016.  The primary purpose of the reverse split was to bring URI into compliance with Nasdaq’s $1.00 minimum bid price requirement to maintain URI’s stock listing on Nasdaq.

In addition, effective upon the reverse stock split, the number of authorized shares of URI’s common stock was reduced from 200 million to 100 million.  No fractional shares were issued as a result of the reverse stock split.  Any fractional shares that would have resulted were settled in cash.

Cash Position

The Company’s cash position at March 31, 2016 was $0.1 million.  The cash position at April 29, 2016 was $0.5 million.  Sources of funding for Uranium Resources’ business plan during the 2^nd quarter include the Company’s ATM facility, the Aspire Capital Purchase Agreement (subject to approval by shareholders at the AGM scheduled for June 7, 2016) and the Laramide transaction.

10

Uranium Resources Mineral Properties

As of 31 March 2016

11

12

13

14

15

16

17

18