Uranerz Energy Corporation

Uranerz Energy Corporation

January 03, 2007 16:05 ET

Uranerz Energy Corporation: Powder River Basin Property Acquisitions

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 3, 2007) - Uranerz Energy Corporation (AMEX:URZ)(FWB:U9E) is pleased to announce the signing of a binding Letter of Intent to acquire three separate uranium projects located in northeast Wyoming in the central portion of the Powder River Basin. The three projects are named West Flank, North Rolling Pin and C-line. The locations of these three properties are adjacent to, or nearby, mining claims already owned by Uranerz Energy, including our West North Butte, Nichols Ranch, Hank, and Doughstick properties, thus providing synergistic opportunities for potential in-situ recovery mine development. The surface area covered by these acquisitions is on land already covered by Uranerz Energy's surface use agreement with the rancher.

All three of these properties were originally staked in the late 1960s and considerable exploration was performed on them during the late 1970s and early 1980s by Cleveland-Cliffs Inc. Uranerz Energy has much of this data, which leads us to believe significant value is present on these properties. It is known that uranium mineralization is present in at least four different stratagraphic zones on the West Flank property. Geologic study will be initiated immediately on these properties and confirmation drilling may commence during the late 2007 drilling season.

The total purchase price for the acquisition of the three projects will be $3,120,000. The Letter of Intent provides for a 35-day due diligence period during which time additional drill hole data and historical reports will be reviewed, and a title search will be performed. Uranerz Energy may elect, at its sole discretion, to cancel the Letter of Intent and not close on the transaction if the Company is not satisfied with the results of the due diligence.

Uranerz Energy Corporation is engaged in the acquisition, exploration and development of properties in the uranium sector, with the goal of becoming a mid-tier producer of uranium. The Company has an experienced team of ten mining personnel who were former officers, senior management and employees of the original Uranerz Exploration and Mining Limited and related companies (the "Uranerz Group"). The Uranerz Group was acquired in 1998 by Cameco, the world's largest primary uranium producer.

Uranerz Energy Corporation's management team has expertise in the in-situ recovery mining method and has direct experience in licensing, designing, constructing or operating seven separate in-situ recovery uranium mines located in Wyoming, Texas, Nebraska and Kazakhstan. The Company's 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 Energy Corporation 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.


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 or 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
    (604) 689-1659 or 1-800-689-1659
    (604) 689-1722 (FAX)
    Website: www.uranerz.com