Uranerz Energy Corporation

Uranerz Energy Corporation

June 07, 2013 08:45 ET

Uranerz Completes US$6 Million Short-Term Note Financing

CASPER, WYOMING--(Marketwired - June 7, 2013) - Uranerz Energy Corporation ("Uranerz" or the "Company") (TSX:URZ)(NYSE MKT:URZ)(FRANKFURT:U9E) announces that it has closed a short-term note ("Note") financing with a select group of investors in the aggregate amount of US$6,000,000. The Note financing proceeds will be utilized to fund ongoing construction of the Company's Nichols Ranch ISR Uranium Project.

As previously announced, Uranerz has received approval in principle for its application for a loan of $20 million (the "Bond") under the State of Wyoming's Industrial Development Revenue Bond program. The Company is currently working with the State administrators to complete the documentation for the Bond. Uranerz intends to repay the Notes in full upon closing of the Bond loan.

The Company intends to use the proceeds from the financing to commence drilling of deep disposal wells at Nichols Ranch, to continue the construction of the Company's Nichols Ranch ISR Facility and for general corporate and administrative purposes.

The Notes will mature on the earlier of: (i) 30 days from the execution and delivery of documentation in connection with the Bond financing, and (ii) December 31, 2013. The Notes will bear interest at 6.0% per annum, increasing to 10.0% per annum if the Notes are not repaid in full prior to August 15, 2013. The Notes are secured by certain assets of the Company. Uranerz has also issued to the Noteholders 1,600,000 warrants at an exercise price of US$1.60 and a term of 30 months, subject to earlier acceleration, of which 1,200,000 warrants are currently exercisable and 400,000 additional warrants will only be exercisable if the Notes remain outstanding after August 15, 2013. Uranerz may accelerate the expiry of the warrants, upon notice to the holders, if its common shares close at a price greater than US$2.75 per share for a period of 20 consecutive trading days. The Company has granted registration rights to the holders of the warrants with respect to shares issuable upon exercise of the warrants.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended, or any applicable securities laws of any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from such registration requirements.

About Uranerz

The Nichols Ranch ISR Uranium Project is Uranerz' first ISR mine and is currently under construction. ISR, or in-situ recovery, is a mining process that uses a leaching solution to extract uranium from sandstone-hosted uranium deposits; it is the generally accepted extraction technology used in the Powder River Basin area of Wyoming. Uranerz controls a large strategic land position in the central Powder River Basin. The Company's management team has specialized expertise in the ISR uranium mining method and a record of licensing, constructing, and operating ISR uranium projects. The Company has entered into long-term uranium sales contracts for a portion of its planned production with Exelon and one other of the largest nuclear utilities in the country.

Forward-looking Statements

This press release may contain or refer to "forward-looking information" and "forward-looking statements" within the meaning of applicable United States and Canadian securities laws, which may include, but are not limited to, statements with respect to the Company's intentions to use the financing proceeds to commence drilling deep disposal wells at its Nichols Ranch Project and to continue construction of the Company's Nichols Ranch ISR Facility and all other statements which describe future activities or express intentions or expectations or which are in the future tense. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the SEC (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com), including our latest annual report on Form 10-K/A as filed with the SEC on May 9, 2013. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We do not undertake to update forward-looking statements, except as required by law.

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