Uranerz Energy Corporation
OTC Bulletin Board : URNZ

Uranerz Energy Corporation

January 12, 2006 13:15 ET

Uranerz Energy Corporation: Acquisition of Excalibur Wyoming Uranium Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 12, 2006) - Uranerz Energy Corporation ("Uranerz") (OTCBB:URNZ)(FWB:U9E) is pleased to announce that it has entered into an Option and Purchase Agreement with Excalibur Industries ("Excalibur") on six mineral properties located in the Powder River Basin of Northeast Wyoming. The six mineral properties are comprised of forty-four (44) unpatented lode mining claims containing significant drill-indicated uranium resources.

Excalibur is a United States public company (corporation) on inactive status. In its annual report for the fiscal year ended May 31, 2005 Excalibur reported total indicated uranium resource estimates for the six properties as 5,921,000 pounds, with potential uranium resources for the six properties as 16,600,000 pounds.

Uranerz has a three-year Option Period on these properties. In addition to a royalty on uranium production, the Agreement requires that Uranerz make an advance royalty payment to Excalibur, which Uranerz has already done, and commit to make certain minimum project development expenditures during the Option Period. Uranerz can terminate the Agreement at any time during the Option Period. At such time that Uranerz has spent the required amount of development expenditures, Uranerz can conclude the Option Period and 100% ownership of the six properties will be transferred to Uranerz. The information for these properties in the form of drill hole logs and constructed cross sections is available to Uranerz with these property transactions. Uranerz may also have access to similar information of over 12,000 electric and lithologic drill hole logs from 6.4 million feet of drilling on uranium properties throughout the Powder River Basin.

During the Option Period Uranerz is to perform additional exploration to verify the quantity of uranium resources. Detailed evaluation on these properties has already been initiated and preliminary development activity in the form of environmental licensing and permitting of one or more of the properties is planned to start in early 2006.

Uranerz has previously staked several groups of contiguous federal mining claims and now has twelve projects in the Powder River and Great Divide Basins of Wyoming. Each of these projects has drill-indicated uranium present. In addition to these unpatented lode mining claim properties, the company has Wyoming state mineral leases on an additional 14,200 acres in the Powder River and Great Divide Basins. At least two of these state mineral leases are known to contain uranium. Based on historical exploration information, including rotary drill and gamma logging information, Uranerz believes that it now has total potential uranium resources in Wyoming of over 30 million pounds measured as U3O8.

Glenn Catchpole, the president and CEO of Uranerz, stated that, "Our company is delighted to have concluded this agreement with Excalibur Industries. It is a win-win situation for both companies that provides a substantial increase in Uranerz' uranium resource base in Wyoming. Additionally, the access to the Excalibur data base and their company's brain trust dating back to uranium exploration in Wyoming in the 1950's, 60's and 70's will be invaluable to our orebody delineation and commercial development activities in the Powder River Basin."

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, 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.

Uranerz Energy continues to acquire quality uranium properties through acquisition, claim staking, leasing and joint venture methods.


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
    Glenn Catchpole
    President and CEO
    (604) 689-1659
    (604) 689-1722 (FAX)