Uranerz Energy Corporation
OTC Bulletin Board : URNZ

Uranerz Energy Corporation

August 03, 2006 09:30 ET

Uranerz Energy Corporation: New Uranium Horizon Discovered in Powder River Basin Drilling

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 3, 2006) - Uranerz Energy Corporation ("Uranerz") (OTCBB:URNZ)(FWB:U9E) is pleased to announce that it has encountered an additional uranium-mineralized trend in a separate sand horizon, locally called the "F" sand, overlying the historically known uranium mineralization in the lower "A" sand on the Company's Nichols Ranch property. This new "F" sand uranium discovery has the potential to significantly increase the known uranium resources on the Nichols Ranch property.

Uranerz is continuing its 2006 exploration drilling program in the Powder River Basin of northeast Wyoming, U.S.A. Initial drilling on the Hank and Nichols Ranch properties is complete. The logging of the holes on the Hank and Nichols Ranch properties has also been completed, however Uranerz has not yet had the logs converted to uranium grades. The drilling program this season is being conducted to both confirm known resources, as indicated in the Company's extensive historical data set that includes electric and detailed lithology logs and drill hole maps, as well as to evaluate numerous known mineralized trends with the intent of delineating additional resources by drilling on oxidation-reduction fronts known to the Company.

Exploration drilling on the Nichols Ranch project has confirmed the presence of an historically known uranium resource along some 8,500 feet of strike length. Uranerz was pleased to encounter in its drilling program the additional mineralized "F" sand trend in a separate sand horizon overlying the historically known uranium mineralization in a lower sand horizon locally called the "A" sand. Thirty-nine exploration holes were drilled and logged on the Nichols Ranch property with 17 of these holes encountering uranium mineralization. The positive results from the drilling program on this property spurred the staking of 54 additional federal mining claims in the immediate area.

A total of thirteen holes were drilled on the Hank property with nine holes encountering uranium mineralization. These results prompted the staking of 34 additional federal mining claims (about 680 acres), and the leasing of private mineral rights on 160 acres, all near the Hank property. The mineralization front at the Hank property was extended another 10,500 feet as a result of the drilling. Future drilling at this property should provide additional definition of the extended front. Drilling at the Hank property also confirmed the results of the historical drilling data in Uranerz's possession, which shows excellent uranium mineralization along some 5,000-plus feet of strike length.

The drilling effort is now moving south to the Doughstick property in an effort to further delineate the historically known mineralized zones in this area. It is planned that once sufficient data has been collected, the drilling equipment will be moved to the Collins Draw project area for fill-in drilling between two historically known uranium resource trends. Some amount of confirmation drilling and logging will also take place at Collins Draw.

Three hydrogeologic test wells are planed to be installed on the Hank property and two on the Nichols Ranch property. Once these test wells are installed and developed, hydrogeologic testing will be performed which is a requirement for the environmental permitting process currently underway on both properties.

After the Uranerz exploration drilling has been completed in the Powder River Basin for the present campaign, it is planned that the equipment will be moved to the Great Divide Basin to confirm historically known resources, and possibly extend the mineralized trends at Uranerz's Eagle and Cyclone Rim projects. Black Range Minerals recently 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. Black Range is obliged to spend at least US$100,000 per year on exploration on these projects and to spend the first US$750,000 on exploration within the next three years.

Uranerz Energy Corporation 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 western 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 leach 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.

Currently, Uranerz Energy Corporation has uranium properties in Saskatchewan (Canada), Mongolia and Wyoming (U.S.A.). The Canadian and Mongolian 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. Our Powder River Basin Wyoming uranium properties are advanced, and the Company has initiated environmental licensing and mine planning for the development of two of these projects, with the possibility of adding a third property in the near future.


Glenn Catchpole, President and CEO

Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures which the Company has filed with SEC, which may be secured from us, or from the SEC's website at: http://sec.gov/edgar.shtml.

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 lack of 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.

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