URNZ

Uranerz Energy Corporation (“Uranerz”) is pleased to announce that it has signed an agreement to joint venture its eight Mongolian exploration licenses with Bluerock Resources Ltd. (“Bluerock”).

These eight license areas are located in geologically favourable areas and cover approximately 284,815 hectares of land surface. One of the eight exploration licenses, the Khavtsal property, can be considered at 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” 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" was assigned 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. This same report 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.

The other seven license areas have prospective characteristics that indicate favorability for hosting sediment-hosted (roll front), near-surface uranium deposits including a proximity to known sandstone-hosted uranium occurrences as identified by Russian-Mongolian survey work, radiometric anomalies and/or favorable geology.

Bluerock expects to focus an aggressive drilling and trenching campaign on the Khavtsal Property, while conducting more reconnaissance level work on the other seven licenses. It is hoped that the drilling and trenching campaign will validate the historical work and give a clearer view of the economic potential of the Khavtsal project. The exploration team will consist of both Bluerock and Uranerz employees and consultants, combining the strengths of both companies to deliver an effective and efficient exploration program.

Under the terms of the agreement, which is subject to regulatory approval, Bluerock is to issue 150,000 Bluerock Resources Ltd. shares to Uranerz and make cash payments of US $205,000 over the four-year earn-in period. Bluerock has the option to earn a 55% interest in these projects by spending US $3,000,000 on the properties over four years. The work program during this period will be managed by Bluerock. Uranerz retains the right to earn back 6% of the joint venture by spending US $300,000, at which time a Joint Venture would be formed with Uranerz holding 51% and Bluerock holding 49%.

The joint venturing of the exploration of these Mongolian projects will allow Uranerz to focus on its more advanced Wyoming projects, many of which have known uranium resources and have the potential of being mined by the low cost in-situ leach mining method.

Uranerz is also pleased to announce that it has signed an agreement with the Nerd Gas Company for the lease of office space at their main office building in Casper, Wyoming. Currently the office space is being renovated and should be ready for occupancy by April 1, 2006. The Nerd Gas Company is a well known, highly successful private oil & gas company operating mainly in Wyoming.

The Casper office will be Uranerz’ main base for its U.S. activities, and will also serve as the field office for Wyoming operations. Initially, Uranerz will lease a little over 1,000 square feet of working floor space, and have access to the common areas including a large conference room. As currently configured, the office will be able to accommodate a staff of up to five people. There is adjacent space within the building to expand the office area as needed. The process of hiring staff to work out of the Casper office is underway.

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.

For more information contact the Company at 604-689-1659 or 877-662-8308 or visit the Company’s web site at www.uranerz.com

ON BEHALF OF THE BOARD

"Glenn Catchpole"

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:

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.