839470--3/11/2009--URANIUM_RESOURCES_INC

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We expect to cease our uranium production by the end of March 2009. If we cannot add additional reserves to replace production in the future, monetize certain existing Company assets and/or have the ability to access additional sources of private or public capital we may not be able to remain in business. Our ability to function as an operating mining company will be dependent on our ability to mine our properties at a profit sufficient to finance further mining activities and for the acquisition and development of additional properties. The volatility of uranium prices makes long-range planning uncertain and raising capital difficult. We face risks related to exploration and development, if warranted, on our properties. The only market for uranium is nuclear power plants world wide, and there are a limited number of customers. The price of alternative energy sources affects the demand for and price of uranium. Public acceptance of nuclear energy is uncertain. The Navajo Nation ban on uranium mining in Indian Country encompasses approximately 84% of our in-place mineralized uranium material on our properties in New Mexico and will adversely affect our ability to mine unless the ban is overturned. We may not be able to mine a substantial portion of our uranium in New Mexico until a mill is built in New Mexico. Itochu has made a negative Preliminary Investment Decision resulting in the termination of our Joint Venture with them for the development of the Church Rock Property and we do not have a committed source of financing for the development of our Church Rock Property. Our operations are subject to environmental risks. Because mineral exploration and development activities are inherently risky, we may be exposed to environmental liabilities and other dangers. If we are unable to maintain adequate insurance, or liabilities exceed the limits of our insurance policies, we may be unable to continue operations, which may result in a loss of an investors' investment. Our inability to obtain financial surety would threaten our ability to continue in business. Competition from better-capitalized companies affects prices and our ability to acquire properties and personnel. Because we have limited capital, inherent mining risks pose a significant threat to us compared with our larger competitors. We may need to obtain additional financing in order to implement our business plan, and the inability to obtain it could cause our business plan to fail. Our business could be harmed if we lose the services of our key personnel. Over 29.8% of our Common Stock is controlled by 2 record owners and management. The availability for sale of a large amount of shares may depress the market price of our Common Stock. Terms of subsequent financings may adversely impact an investor's investment. Shareholders could be diluted if we were to use Common Stock to raise capital.

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839470--3/11/2009--URANIUM_RESOURCES_INC_/DE/