an update about our jv partner

Uranerz seems to mean business and have achieved a lot in 1 year. Looks like BLR and URZ are like minded companies, eager to perform.
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USA OPERATIONS CANADA OPERATIONS American Stock Exchange: URZ
P.O. Box 50850 T: 307 265 8900 Suite 1410 T: 604 689 1659 Frankfurt Exchange: U9E
1710 East E Street F: 307 265 8904 800 West Pender Street F: 604 689 1722 www.uranerz.com
Casper WY 82605-0850 Vancouver BC V6C 2V6
October 2006
American Stock Exchange: URZ
Frankfurt Exchange: U9E
www.uranerz.com


Dear Shareholder:
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 world's nuclear electrical generating facilities. The price of
uranium has increased dramatically in the last few years from a low of under $8.00 per pound to
the current price of over $55.00 per pound. It is believed that the price of uranium has the
potential to continue to rise substantially, as the nuclear power market is not uranium price
sensitive and demand for new nuclear power plants is rapidly expanding.

“Uranerz” means uranium ore. Uranerz Energy Corporation 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").
The Company also has an advisory board that consists entirely of ex-Uranerz Group
professionals. The Uranerz Group was the third largest uranium producer in the World when it
was acquired in 1998 by Cameco, the largest primary uranium producer. Our Uranerz team
includes Glenn Catchpole, our President, and George Hartman our Chief Operating Officer.
They have direct experience in licensing, designing, constructing and operating five separate insitu
leach uranium mines, and one borate in-situ leach mine in the United States.
Currently, Uranerz Energy Corporation has uranium properties in Saskatchewan (Canada),
Mongolia and Wyoming (U.S.A.) The Company’s Powder River Basin, Wyoming uranium
properties are advanced, and based on our management’s in-situ leach mining experience, the
Company believes that it now has sufficient critical mass in terms of mineable uranium
resources. Uranerz Energy has begun commercial environmental permitting and mine
development planning for the development of two of these projects.

The Canadian, Mongolian and Wyoming Red Desert uranium properties are in the exploration
stage and Uranerz has joint ventured these projects to other companies as a means of reducing
our exploration risk. These projects are operated and funded by our joint venture partners.

There have been several significant events for Uranerz Energy Corporation in the last few
months including:
♦ closing of over US$ 10 million in new financings;
♦ acquisition of nine uranium properties in the Powder River Basin of Wyoming;
♦ opening of an exploration and operations office in Casper Wyoming;
♦ hiring of a Manager for Environment and Safety;
♦ initiating of environmental licensing and mine planning;
♦ initiation of Uranerz’s 2006 drilling program;
♦ appointment of a new Chief Financial Officer;
♦ appointment of three independent directors to the Board;
♦ joint venturing of Uranerz’s Cochrane River project in the Athabasca Basin;
♦ joint venturing of Uranerz’s eight uranium projects in Mongolia;
♦ joint venturing of Uranerz’s Cyclone Rim and Eagle (Red Desert) projects; and
♦ listing of the Company’s shares on the American Stock Exchange (Symbol: URZ).
Uranerz Energy Corporation is growing and expanding rapidly. It has been a little over one year
since management was able to get its corporate name changed to "Uranerz", a corporate
identity most of them had worked with before. This management team has the experience, the
contacts, the ability, the competency and the desire to build Uranerz into a significant producer
of uranium.
Enclosed is a corporate brochure. The Company would like to send news by email to its list of
shareholders and interested investors. If you haven't done so already, please send an email
to [email protected] if you wish to receive news and information directly from Uranerz
Energy Corporation.
We welcome you as shareholders to participate in the potential rewards of building a successful
uranium company. Buy American. In a May, 2006 interview with StockInterview.com, Jeff
Combs, President of The Ux Consulting Company, urges U.S. utilities to "support the expansion
of production in the United States." Uranerz Energy is a United States company domiciled in
Nevada, with operations in Wyoming. An American company listed on a national American
stock exchange producing American uranium for American nuclear facilities should command a
premium in its market capitalization. Uranerz Energy Corporation is the only pure uranium
company listed on the American Stock Exchange.
For more information, I invite you to call my office at 1-800-689-1659, or visit our web site at:
www.uranerz.com
Sincerely,
URANERZ ENERGY CORPORATION
“Dennis L. Higgs”
Dennis L. Higgs, B.Comm
Chairman