OREANDA-NEWS. Uranium Resources, Inc., an energy metals exploration and development company, announced today its results for the third quarter of 2016, as well as reviewed its business outlook and its lithium business development in 2017.

Christopher M. Jones, President and Chief Executive Officer, said, "We continue to make our business leaner and achieve lower costs, while developing a new lithium business and maintaining our optionality on the future rising uranium price.  We are not just waiting for change, we are making change."

Business Highlights for 3Q-2016 and to Date
* The Company's expansion into lithium development included the acquisition of dominant land positions in two prospective basins for lithium brines in the western United States - the Columbus Basin Project in Nevada and the Sal Rica Project in Utah. The Company first announced that it had initiated a lithium exploration and development business on August 24, 2016.
* The Company subsequently staked approximately 24,140 acres (9,769 hectares) of mining claims at the two project areas, increasing the size of both projects.
* Surface sampling was completed at the Columbus Basin Project in October, and assay results are pending.
* Subject to the availability of financing, the Company has earmarked $1.6 million for exploration activities on these two projects during 2017, including drilling, with the objective to produce a JORC compliant resource at one of the two lithium projects in 1H 2018.
* The Company extended its Share Purchase Agreement with Laramide Resources Ltd. (Laramide) to November 30, 2016, which upon closing will transfer URI's ownership of the Churchrock and Crownpoint uranium projects in New Mexico in exchange for $12.5 million in total proceeds, including a payment of $5.25 million in cash at closing.  The extension included a non-refundable payment of $250,000 that was received in October 2016.
* The Company successfully raised net proceeds of $7.4 million during the quarter through a combination of the Company's At-The-Market Sales Agreement and the previously announced Aspire Common Stock Purchase Agreement.
* Continued working capital improvements resulted in an improved cash balance of $3.4 million at November 9, 2016, and a reduction in accounts payable from $3.05 million at December 31, 2015 to $1.0 million at September 30, 2016.
* Third quarter operating expenses, including general and administrative, were reduced 23% from 3Q 2015, and nine-month operating expenses were further reduced by 14% from the corresponding period in 2015, reflecting the then ongoing merger with Anatolia Energy in 3Q-2015 and structural reductions in general and administrative costs.

Financial Overview

Mineral and property expenses were $1.0 million in 3Q-2016, $0.1 million or 13% higher than 3Q-2015, primarily due to property costs associated with the acquisition of the new lithium projects.  For the nine-months ended September 30, 2016, mineral and property expenses were $2.9 million compared to $3.0 million for the corresponding period in 2015 and the $0.1 million decrease was due mainly to lower exploration and evaluation costs. General and administrative expenses, excluding non-cash stock compensation, were $1.8 million in 3Q-2016, a 33% decrease from the year ago period as a result of reduced consulting and professional costs related to the completion of the Company's merger with Anatolia Energy. For the nine months ended September 30, 2016, general and administrative expenses, excluding non-cash stock compensation, were $5.5 million, 17% lower than the year ago period due to reduced costs related to merger activities.

Net loss for the three months ended September 30, 2016 was $3.7 million or $0.38 per share as compared with $0.3 million or $0.14 per share for the corresponding period in 2015.  The net loss for the nine months ended September 30, 2016 was $12.6 million, or $1.81 per share, as compared with $8.7 million, or $3.61 per share, for the corresponding period in 2015.  For both periods ended September 30, 2016, the increase in consolidated net loss was primarily the result of a gain of $4.3 million recorded for the sale of the Roca Honda assets to Energy Fuels in July 2015.  Also contributing to the increase in the Company's net loss for the nine-month period ended September 30, 2016 was an impairment charge of $0.5 million for termination of the Sejita Dome Project in Texas, a commitment fee of $0.3 million paid to Aspire Capital in accordance with the terms of the Option Agreement (see URI's news release of April 11, 2016), and a $0.1 million loss on the sale of available-for-sale securities.  The higher net losses for both periods were partially offset by reductions in expenditures for general and administrative costs of $1.0 million and $1.3 million, respectively, and mineral property costs of $0.2 million and $0.4 million, respectively.

Net cash used in operating activities was $9.9 million for the nine months ended September 30, 2016, as compared with $8.5 million for the same period in 2015. During the period the Company paid $1.4 million to reduce accounts payables, which was partially offset by an aggregate decrease in cash expenditures related mainly to lower general and administrative and mineral property expenses of $1.3 million.

As of November 9, 2016, the Company held cash and cash equivalents totaling approximately $3.4 million, and total shares outstanding were 13,383,372.