Uranerz Energy Corporation
OTC Bulletin Board : URNZ
FRANKFURT : U9E

Uranerz Energy Corporation

November 10, 2005 09:00 ET

Triex Minerals Joint Ventures Uranerz Energy's Cochrane River Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 10, 2005) - Uranerz Energy Corporation ("Uranerz") (OTCBB:URNZ)(FWB:U9E) is pleased to announce that it has signed an agreement to joint venture its Cochrane River property located in northern Saskatchewan, Canada, with Triex Minerals Corporation ("Triex").

The Cochrane River property consists of two Mineral Prospecting Permits with a combined total area of 67,480 ha (166,747 acres) located in northern Saskatchewan, northeast of the Athabasca Basin. The Athabasca Basin is considered one of the most favourable places in the world for exploring and mining uranium. It extends for some 425 kilometers east-west x 220 kilometers north-south, and hosts several world class uranium deposits (McArthur River, Cigar Lake, Eagle Point, and others). These deposits are typically very high grade, with average grades exceeding 1% U3O8 in most of the deposits. In some notable cases such as at McArthur River and Cigar Lake the deposits may average up to 23% U3O8, with grades occasionally exceeding 50% U3O8. These deposits occur at and around the contact between western Wollaston Group metasediments and overlying Athabasca Group sandstone units, and are generally termed unconformity-type deposits. Although much of the uranium ore is generally hosted by the overlying Athabasca Group sandstones, significant uranium mineralization commonly extends vertically beneath into the Wollaston Group rocks. This is particularly evident at the McArthur River deposit, where the majority of the uranium ore and the highest grades of mineralization occur in the underlying basement rocks.

The Cochrane River property is strategically located along the Wollaston belt, on trend with the highest-grade deposits in the Basin. Cameco Corporation's Eagle Point Mine is located approximately 80 kilometres to the southeast. The Cochrane River property was likely overlain by Athabasca Group sandstones for a significant portion of its geological history. Unconformity-type uranium deposits could have formed within the property at that time. Although now eroded to below the level of Athabasca Group coverage, any underlying basement-hosted or root zones of mineralization should be preserved. These are the targets of the present exploration program at the Cochrane River property.

The strengthening of uranium prices since early 2004 has renewed interest in the Athabasca Basin and the surrounding region. The spot price for Uranium (U3O8) has steadily increased from its low of US$7.10 per pound at the end of 2000 to its current price of US$33.25 per pound, an increase of over 360%. Industry experts are forecasting a global uranium shortage of 45,000 tonnes over the next decade.

A compilation and analysis of prior work has been prepared by Robertshaw Geophysics Ltd. of Saskatoon, Saskatchewan. Previous exploration on the Cochrane River property has identified several electromagnetic conductors. Triex has initiated a detailed, helicopter-borne DIGHEM V geophysical survey to include four grid areas on the Cochrane River permits. This survey will be flown over grid areas selected from previous exploration results based on the location of known mineral occurrences, geochemical anomalies and previously defined conductors, as well as the location of major structural zones from recent airborne magnetic surveys. There are numerous reported uranium occurrences within the project area. Follow-up ground geophysics is proposed to be conducted during the first quarter of 2006, with follow-up prospecting, mapping and geochemistry to be conducted during the summer of 2006.

Triex can earn a 60% interest in the Cochrane River property by making payments to Uranerz of $75,000 and spending $1,500,000 on the property by May 1, 2008. After completing the 60% earn-in phase, Triex can elect to earn an additional 10% interest in the project by spending an additional $1,500,000 by November 1, 2009.

Uranerz Energy Corporation is a natural resource company engaged in the acquisition, exploration and development of properties in the uranium sector. The Company has an experienced team of mining executives to drive its success, many of whom are former senior management and employees of the original Uranerz Exploration and Mining group of companies. The Company also has an Advisory Board that consists entirely of ex-Uranerz Exploration and Mining professionals. Uranerz Exploration and Mining was acquired by Cameco in 1998.

Glenn Catchpole, the president of Uranerz, stated that "the joint venturing of the exploration on the Cochrane River project will allow Uranerz to focus on its more advanced projects, many of which have known uranium resources and have the potential of being mined by the low cost in-situ leach mining method."

ON BEHALF OF THE BOARD

Glenn Catchpole, President and CEO

This Press Release may contain, in addition, to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements are:

(i) the inability of the Company to complete the acquisition of any interest in any new mineral exploration properties;

(ii) the inability of the Company to achieve the financing required to pursue the acquisition of exploration of any new mineral properties;

(iii) the inability of the Company to raise the financing necessary to conduct exploration or development of its properties; and

(iv) the presence of commercial mineralization on its properties.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.

Contact Information

  • Uranerz Energy Corporation
    Investor Relations
    (604) 689-1659 or Toll Free: 1-877-662-8308
    (604) 689-1722 (FAX)
    www.uranerz.com