Uranerz Energy Corporation
FRANKFURT : U9E
AMEX : URZ

Uranerz Energy Corporation

November 02, 2006 09:55 ET

Uranerz Energy Corporation: Drilling Results; Permit Application Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2006) -

Exploration Results

Uranerz Energy Corporation (AMEX:URZ)(FWB:U9E) is pleased to announce the results of the 2006 drilling program in the Powder River Basin area of Wyoming. A total of 78 rotary drill holes were drilled on the Hank, Nichols Ranch, and Doughstick projects, with 46 holes demonstrating uranium mineralization. The Company also logged and collected data from some of the existing holes. This program was conducted to both confirm known resources, as indicated in the Company's extensive historical data set that includes electric logs and drill hole maps, as well as to evaluate numerous mineralized trends. A number of interesting mineralization intercepts were obtained, as reported below:



Project Exploration Thickness Average GT
Hole of Intercept Grade (Grade X Thickness)
Number (Feet) % U3O8

Hank UO6-55 11.5 0.08 0.93

Hank UO6 WW-1 15 0.09 1.35

Nichols Ranch UO6 -74 5 0.12 0.60

Nichols Ranch U06-MN-1 15.5 0.10 1.49

Doughstick U06-35 6.5 0.10 0.65

Doughstick U06-36 4 0.13 .54

Doughstick UO6-94 13 0.08 1.05


As a result of the exploration program, a total of 141 additional federal lode mining claims have been added to Uranerz Energy's land position (which includes the 82 claims staked and reported in the September 20, 2006 news release).

The drilling effort is now focusing on the Great Divide Basin by moving the drilling equipment to the Eagle project where a similar program is planned to be completed before the end of the year by our joint venture partner Black Range Minerals of Perth, Australia. Nine holes of this program have been completed to date. Depending on results of this drilling effort and weather permitting, another drilling program is planned to be conducted on the Cyclone Rim Project area. Black Range Minerals has signed a joint venture agreement to earn into these projects and will be responsible for managing and funding the Great Divide Basin part of the exploration program. At the completion of the Great Divide Basin program the equipment is then scheduled to return back to the Powder River Basin to continue the drilling program there.

Environmental Permitting Update

Environmental permitting activities also continue at the Hank and Nichols Ranch projects with the completion of a total of five hydrogeologic test wells, and the drilling of six core holes. The core will be submitted for laboratory testing to support radiation permitting requirements as well as to define resource disequilibrium attributes.

Nine atmospheric radiation stations have also been installed at these two advanced projects to provide radiation base line data. A total of 18 groundwater well sample locations are also being outfitted with pumps and water level measuring equipment to provide quarterly samples to satisfy base line data requirements for the permit applications. The submittal of the application covering both projects is still on schedule for the second half of 2007.

Uranerz Energy Corporation is the only pure-play 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 statementts made in this Press Release.

Contact Information

  • Uranerz Energy Corporation
    Dennis Higgs
    Investor Relations
    (604) 689-1659 or 1-800-689-1659
    (604) 689-1722 (FAX)
    Website: www.uranerz.com