Uranerz Energy Corporation
OTC Bulletin Board : URNZ

Uranerz Energy Corporation

October 18, 2005 17:39 ET

Uranerz Energy Corporation: Closing of Private Placement; Corporate Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2005) - Uranerz Energy Corporation (OTCBB:URNZ)(FWB:U9E)(WKN:A0F5XB) is pleased to announce that it has closed its private placement of 5,245,000 units at a price of $0.40 per unit for total gross proceeds of $2,098,000. Each unit will be comprised of one share of the Corporation's common stock and one-half share purchase warrant with one full warrant exercisable to purchase one additional common share at $0.60 for a period of one year. The Corporation will pay a commission equal to 6% of some of the funds raised from the sale of the units. There are now 21,620,000 shares issued and outstanding.

Uranerz Energy also wishes to announce that the Company's shares are now quoted on the Frankfurt Stock Exchange under the trading symbol "U9E" and the securities number (WKN) "A0F5XB". The Frankfurt Deutsche Borse is one of the largest stock exchanges in the world, and the Xetra trading platform has made it the second-largest fully electronic cash market in the world. Listing on the Frankfurt Exchange will allow European investors easier access to trade the Company's shares and should improve liquidity.

Uranerz Energy Corporation ("Uranerz") is a natural resource company engaged in the acquisition, exploration and development of properties in the uranium sector. Uranerz has acquired an interest in several uranium properties located in Mongolia, Wyoming, and Saskatchewan represented by the following:

Mongolia

Uranerz Energy now has eight exploration licenses in Mongolia. The Company has been granted seven exploration licenses through an agency of the Mineral Resource Authority of Mongolia. These seven license areas are located in geologically favourable areas and cover approximately 268,724 hectares of land surface.

Glenn Catchpole, Uranerz Energy's president, has also acquired a 100% interest to the Khavtsal property on behalf of the Company. The Khavtsal property covers 16,091 hectares located 321 kilometers south-southeast of Ulaan Baatar, the capital city of Mongolia in the Dornogovi province and Airag sub province.

The Khavtsal property can be considered in a stage of advanced exploration based on historic work completed and reported on by the Russian-Mongolian Survey in 1987. A Russian exploration summary report for the Khavtsal occurrence estimates a "probable resource" (this wording translated from Russian) of 2000 tons (5.19 million pounds) of uranium based on 3046 cubic meters of surface trenching and 1808 meters of drilling (44 drill holes averaging 41 meter depths). This "resource" has an average grade of 0.038% uranium, using a 0.010% cutoff and a tonnage factor of 2t/m3, an average thickness of 1.8 meters, and has a surface projection of 1.46 square kilometers.

The same report quoted above estimates an exploration potential for the larger area of the Ulaan Nuur depression, in which the Khavtsal occurrence is located, at 4000 tons (10.39 million lbs) of uranium. This estimate is characterized in the report as "P2" category, a term conventionally used for "speculative undiscovered resources". These results will need to be confirmed with additional trenching and drilling. At this point, Uranerz Energy takes the report as indicating favorable exploration potential.

Wyoming Properties

Uranerz Energy has obtained sixteen (16) mineral leases comprising thirty-one (31) parcels of land from the state of Wyoming. These leases cover a surface area of approximately 5747 hectares (14,200 acres). Twelve (12) of these leases are located in the Powder River Basin and Nineteen (19) of these leases are located in the northern part of an area generally referred to as the Great Divide Basin (or Red Desert). Applications for additional state mineral leases will most likely be made as the company's exploration and acquisition efforts continue.

The company also currently owns 140 federal lode mining claims in Wyoming and claim staking activity is continuing at this time. A lode mining claim typically covers approximately 20 acres (8 hectares). The areas in Wyoming being claim staked may have drill indicated resources. An independent uranium geologist is in the process of evaluating the available data. Part of the company's Wyoming geologic data base was acquired from a long time Wyoming uranium exploration geologist.

The state mineral leases and federal mining claims that Uranerz has in Wyoming are all located in sandstone basins of Cretaceous or Tertiary age and thus have the potential for the economic in-situ leach solution mining of uranium. The Uranerz management team has extensive operational experience in this method of uranium mining.

Cochrane River Property, Saskatchewan

The Cochrane River property consists of two Mineral Prospecting Permits (MPP 1237 and MPP 1238) with a combined total area extent of 67,480 ha (166,747 acres). The property is located in northern Saskatchewan, northeast of the Athabasca Basin.

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.

A compilation and analysis of prior work is presently under way on behalf of Uranerz Energy by Robertshaw Geophysics Ltd. of Saskatoon, Saskatchewan. The Company may consider joint venturing this project.

URANERZ ENERGY CORP.

Glenn Catchpole, President

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
    (307) 634-8278