URNZ

VANCOUVER, BRITISH COLUMBIA - Uranerz Energy Corporation ("Uranerz") (OTCBB:URNZ)(FWB:U9E) is pleased to announce that it has purchased from a private party several contiguous federal mining claims located in the Powder River Basin of Wyoming, USA. Uranerz has previously staked several other contiguous federal mining claims in the Powder River Basin and the Company now has approximately 1,980 acres of federal mining claims in this area. This new acquisition has known uranium resources and has the potential of being mined by the low cost in-situ leach mining method.

This property is a portion of one of six projects Uranerz Energy has in the Powder River and Great Divide Basins of Wyoming. Uranerz owns a total of some 4,300 acres of mining claims in these two basins. Each of these six 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. Uranerz Energy continues to acquire quality uranium properties through acquisition, claim staking and leasing.

These uranium resources on properties located in the Powder River Basin occur in sands of the Eocene-age Wasatch Formation. The uranium resources occur in typical Powder River Basin-type geochemical roll fronts at the interface of reduced and oxidized areas of the host sandstone units. Evidence of mineralization was originally from electric logs and cross sections correlated by previous geologists.

George Hartman, the Vice-President of Mining for Uranerz, stated that "the Powder River Basin has some of the highest uranium grade deposits in Wyoming that are amenable to in-situ leach mining methods. We are excited about the potential of our projects to generate near-term uranium production." Other companies active in the Basin include Power Resources Inc., a wholly-owned subsidiary of Cameco, the largest producer of primary uranium in the world, and Cogema, the second-largest producer of uranium in the world.

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 CORPORATION

"Glenn Catchpole"

Glenn Catchpole

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:

1. the inability of the Company to complete the acquisition of any interest in any new mineral exploration properties;
2. the inability of the Company to achieve the financing required to pursue the acquisition of exploration of any new mineral properties;
3. the inability of the Company to raise the financing necessary to conduct exploration or development of its properties; and
4. 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.