Uranium Resources Inc. Royalty Portfolio

In December 2006, the Company acquired a portfolio of uranium royalties in the Grants Mineral District of New Mexico, USA from United Nuclear Corporation, a wholly owned indirect subsidiary of General Electric Company. The royalty portfolio covers several separate parcels of mineral leases (Section 8, a portion of Section 17, and the Mancos area, which comprises all of Section 13 and portions of Section 12 and 7) in the ChurchRock area of McKinley County which is located 20 miles northeast of Gallup, New Mexico (the “ChurchRock Properties”). The ChurchRock Properties are presently owned by a subsidiary of Uranium Resources, Inc. (“URI”), a U.S. publicly traded uranium producer, which acquired them from United Nuclear in a series of transactions between 1986 and 1991.

SLIDING SCALE ROYALTY STRUCTURE

The royalty is a gross revenue based sliding scale royalty, ranging from 5-25% based on term uranium prices, but is also indexed to inflation based on the Producer Price Index – All Commodities (“PPI”) index. At the last calculation date, and using the April 2012 PPI value, the Royalty will be based on gross sales prices of U₃O₈ with a royalty of 15.9% on a current term price of US$61.50/lb, with a maximum royalty of 25% when sales prices reach US$87.58/lb or higher update.

Laramide paid United Nuclear US$9.25 million in cash, of which $4.1 million (US$3.5 million) has already been paid at closing, with the remaining payments subject to permitting and production milestones as described in the Company’s MD&A.

URI’s most current guidance for ChurchRock is a feasibility study in mid-2012, followed by construction in 2012, and initial production in late 2013 at a rate of one million pounds per annum starting in Section 8.

KEY ATTRIBUTES

• Royalty covers several separate parcels of mineral leases including Uranium Resource Inc.’s (URI) Section 8 lease in the Churchrock area (6.5 million lbs U₃O₈)
• URI’s total Churchrock Resource (historic non-NI 43-101 compliant resource):

            Churchrock: 7.8 million tons @ 0.12% U₃O₈ = 18.6 million lbs U₃O₈

            Mancos: 5.2 million tons @ 0.11% U₃O₈ = 11.3 million lbs U₃O₈

FUTURE OUTLOOK

NRC reactivated ISR licence in 2011

Feasibility Study expected in Q3 2012

Financing and Construction planned in second half 2012 and first half of 2013

Production in late 2013

URI entered into project consolidation and financing transaction with Resource Capital Funds.