Please see Optiva Securities research comment highlighting Uranium Resources as a BUY with a target price of 9.5p (459% increase on today’s sp of 1.7p) on the back of the Company defining a maiden resource of 3,583,000t at 255ppm containing 2.14Mlb U3O8 at its flagship Mtonya uranium discovery project in Tanzania, confirming the country as an emerging in-situ recovery uranium district (In-situ recovery is the lowest cost and most environmentally benign method of uranium extraction). The roll-front widths, thicknesses and grades seen at Mtonya are remarkably similar to other world-class roll-front deposits including those found in Wyomings Wind River Basin and Powder River Basin where Cameco and Uranium One operate successful ISR facilities, again highlighting the exciting potential of URA’s project. The maiden resource only covers an area of less than 70km2 out of the company’s 625km2 Mtonya group of tenements (less than 10%).

Further infill drilling within the resource area and lateral extension of known mineralisation expected to substantial increase resources in the future. Kindest regards Felicity
[cid:image004.png@01CE4BF8.149C8E20] INITIAL RESOURCE DEFINED Uranium Resources reached a landmark point last week following the announcement of a maiden resource on its flagship project in Tanzania.

Based on only a relatively limited drill programme of 159 holes (38,591m) between 2010 and 2012, an Inferred resource of 3.6m tonnes at a grade of 255 parts per million (ppm), containing 2.0m lbs of uranium to NI 43‐101 reporting standards has been estimated. As outlined further in this research note (figure 1), URA has essentially drilled only 10% of the projects prospective ground.

It needs to be appreciated that drilling has been relatively widely spaced out over a large area and it would seem statistically likely that higher grade uranium pockets have been by‐passed from drilling conducted to date within the current NI 43‐101 resource zone.

The resource itself has been defined from mineralisation drilled close to surface in Tier 1 on the Mtonya prospect.

Significant potential for the discovery of mineralisation appears to exist in both the deeper Tier 2 and Tier 3 levels.

Radiometric anomalies located southwest in the Mtonya Redox Corrider at Lukimwa and Nyoka provide further exploration targets. INVESTMENT RECOMMENDATION This initial resource moves the company one important step along the exploration cycle and should put it on the radar of both new investors and uranium industry players that only evaluate companies once a resource is defined.

In the near term, URA intends to conduct infill and step‐out drilling to expand the resource, along with executing a number of pump tests on the mineralisation.

With 100% ownership of the project, ‘proof of concept’ established of the management’s roll‐front geological model and an initial resource defined, URA is now favourably placed to attract a JV exploration partner to advance its project. The eventual target should be to attract the acquisition interest of a uranium miner, to emulate the successful A$1bn purchase of the Mkuju project in Tanzania two years ago by ARMZ.

The similar geological features present in both Mkuju and Mtonya provides us with continuing confidence that a sizeable resource can be found by URA.

The potential application of an In‐Situ Recovery mining technique at Mtonya should help to keep mining CAPEX low, whilst at the same time being environmentally acceptable.

With this in mind, should Mtonya’s resource be expanded, URA could achieve a similar acquisition price to Mkuju on a $ per defined uranium resource basis.

We therefore believe considerable exploration upside remains at Uranium Resources and accordingly calculate a target price per share of 9.5p (or £70.5m) based upon the risked exploration upside and exit consideration that could be obtained for the resource from a mining major.

Given that the geological model at Mtonya has already been established by the management, the exploration projection which we base our initial valuation on could well prove to be at the lower end of what is attainable. For the full note see attached.
IMPORTANT INFORMATION: This marketing communication has been produced by Optiva Securities Limited ("Optiva") which is authorised and regulated by the Financial Services Authority ("FSA").

This email also constitutes a financial promotion.

This email is not independent and should not be relied on as an impartial or objective assessment of its subject matter.

It is not investment research and it has not therefore been prepared in accordance with legal requirements designed to promoted the independence of investment research.

In particular, Optiva is not prohibited from dealing ahead of the distribution of this email, as it would have been were it independent investment research.

Please visit www.optivasecurities.com to see a summary of our conflicts policy and additional relevant information.

This is not an offer or a solicitation of an offer to buy or sell investments.

The information and opinions constitute a judgement as at the date of this email and are subject to change without notice.

No person other than the recipient may rely or act upon it.

Optiva accepts no responsibility or liability for any losses arising from this email.

We are not advising you on the merits of the investments discussed in this email and it is not based on a consideration of your circumstance.

We have not assessed the suitability of the investments for you.

*Optiva acts as Joint Broker to Uranium Resources PLC.

Some of Optiva’s private clients hold shares in Uranium Resources PLC. The document may not be distributed in the United States of America, Japan, Australia or Canada.

This report nor any copy hereof may be distributed in any jurisdiction outside of the UK where its distribution may be restricted by law.

Persons who recieve this report should make themselves aware of and adhere to any such restrictions. Copyright © 2013 Optiva Securities, all rights reserved. This e-mail communication and any attachments are intended for the use of the persons to whom it is addressed.

It may contain confidential information and may be legally privileged.

If you are not an intended recipient you must not disclose, distribute, copy or otherwise use the information contained in this e-mail and should ensure that it is deleted from your system.

If you have received this e-mail in error, please contact the sender by telephone on +44 (0)20 3137 1906.

Any views expressed in this message are those of the sender, except where the message states otherwise and the sender is authorised to state them.

Internet communications cannot be guaranteed to be secure or error free as information may be intercepted, corrupted, lost, arrive late or contain viruses.

Optiva Securities Limited does not accept liability for any errors, admission, damages or losses which arise from this internet transmission. [Description: flic]