Uranerz Energy Corporation
FRANKFURT : U9E
AMEX : URZ

Uranerz Energy Corporation

October 20, 2006 08:30 ET

Uranerz Energy Corporate Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2006) - Uranerz Energy Corporation (AMEX:URZ)(FWB:U9E) wishes to announce that permitting activities continue on both the Hank and Nichols Ranch projects, Wyoming. Uranerz Energy has completed installing hydrologic test wells at these two uranium properties in the Powder River Basin. These test wells were installed for upcoming pumping tests and core samples of the deposit were taken for the radiation environmental data requirements. The pump tests are used to demonstrate that the aquifers are confined, and to test the permeability of the mineralized sandstone unit for both feasibility and permitting purposes.

The Wyoming Department of Environmental Quality has approved the Company's plans for the hydrologic testing of the uranium-mineralized confined aquifers. The hydrologic test wells were installed in accordance with the plan. Uranerz Energy will also be collecting ground water samples in the near term at water wells in the region, and has reached an agreement with Cameco Corporation's wholly owned US subsidiary, Power Resources Inc., to sample some of their monitor wells located on adjacent uranium properties.

At both the Hank and Nichols Ranch projects the vegetation and wildlife surveys have been completed and the data are being incorporated into the mine permit application as appendices, as required by the Wyoming Department of Environmental Quality. Soil surveys are currently ongoing. The mine plan chapter of the application is scheduled for management review and incorporation into this application. At this time, the submittal of the application covering both projects is still on schedule for the second half of 2007.

Corporate Update

As of the close of business on October 17, 2006, Uranerz Energy had received notice for the exercise of a total of 2,490,000 warrants to purchase shares of the Company. Upon the completion of the exercise of these warrants there will be 34,293,498 shares of common stock issued and outstanding. These "warrant shares" are "restricted securities" as defined in Rule 144 of the Securities Act of 1933, as amended. The Company now has approximately $12.5 million in treasury, and no debt.

On October 17, 2006, 5,245,000 shares of common stock became eligible to be resold pursuant to Rule 144 of the Securities Act.

Uranerz Energy Corporation is the only pure uranium company listed on the American Stock Exchange. The Company is engaged in the acquisition, exploration and development of properties in the uranium sector. The Company's goal is to become a producer of uranium which will be utilized as fuel in the world's nuclear electrical generating facilities. The Company has an experienced team of mining personnel, many of whom are former officers, senior management and employees of the original Uranerz Exploration and Mining Limited and related companies (the "Uranerz Group"). This team has direct experience in licensing, designing, constructing and operating underground, open-pit and in-situ recovery uranium production facilities. The Company also has an advisory board that consists entirely of ex-Uranerz Group professionals. The Uranerz Group was acquired in 1998 by Cameco, the world's largest primary uranium producer.

Uranerz Energy Corporation has expertise in in-situ recovery mining and holds projects in Wyoming with uranium-mineralized sandstone. These Powder River Basin uranium properties are advanced, and the Company has initiated environmental licensing and mine planning for the development of two of these projects.

Uranerz also has uranium properties in Saskatchewan (Canada), Mongolia and the Great Divide Basin of Wyoming. The Canadian, Mongolian and Great Divide Basin uranium properties are in the exploration stage and Uranerz has joint ventured these projects to other companies as a means of reducing its exploration risk. These projects are operated and funded by our joint venture partners.

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;

(iv) the lack of presence of commercial mineralization on its properties; and

(v) the inability of the Company to establish commercial deposits or reserves of uranium 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
    Dennis Higgs
    Investor Relations
    1-800-689-1659
    Website: www.uranerz.com