uranerz drilling results

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Drilling Results; Permit Application Update
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Exploration Results

Uranerz Energy Corporation is pleased to announce the results of the
2006 drilling program in the Powder River Basin area of Wyoming. A
total of 78 rotary drill holes were drilled on the Hank, Nichols Ranch,
and Doughstick projects, with 46 holes demonstrating uranium
mineralization. The Company also logged and collected data from some
of the existing holes. This program was conducted to both confirm
known resources, as indicated in the Company's extensive historical
data set that includes electric logs and drill hole maps, as well as to
evaluate numerous mineralized trends. A number of interesting
mineralization intercepts were obtained, as reported below:


Project Exploration Thickness Average GT
Hole of Intercept Grade (Grade X Thickness)
Number (Feet) % U3O8

Hank UO6-55 11.5 0.08 0.93

Hank UO6 WW-1 15 0.09 1.35


Nichols Ranch UO6 -74 5 0.12 0.60

Nichols Ranch U06-MN-1 15.5 0.10 1.49

Doughstick U06-35 6.5 0.10 0.65

Doughstick U06-36 4 0.13 .54

Doughstick UO6-94 13 0.08 1.05

As a result of the exploration program, a total of 141 additional
federal lode mining claims have been added to Uranerz Energy's land
position (which includes the 82 claims staked and reported in the
September 20, 2006 news release).

The drilling effort is now focusing on the Great Divide Basin by moving
the drilling equipment to the Eagle project where a similar program is
planned to be completed before the end of the year by our joint venture
partner Black Range Minerals of Perth, Australia. Nine holes of this
program have been completed to date. Depending on results of this
drilling effort and weather permitting, another drilling program is
planned to be conducted on the Cyclone Rim Project area. Black Range
Minerals has 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. At the completion of
the Great Divide Basin program the equipment is then scheduled to
return back to the Powder River Basin to continue the drilling program
there.

Environmental Permitting Update
Environmental permitting activities also continue at the Hank and
Nichols Ranch projects with the completion of a total of five
hydrogeologic test wells, and the drilling of six core holes. The core
will be submitted for laboratory testing to support radiation
permitting requirements as well as to define resource disequilibrium
attributes.

Nine atmospheric radiation stations have also been installed at these
two advanced projects to provide radiation base line data. A total of
18 groundwater well sample locations are also being outfitted with
pumps and water level measuring equipment to provide quarterly samples
to satisfy base line data requirements for the permit applications.
The submittal of the application covering both projects is still on
schedule for the second half of 2007.

Uranerz Energy Corporation is the only pure-play uranium company listed
on the American Stock Exchange. The Company 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 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 recovery 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.

Uranerz Energy Corporation has expertise in in-situ recovery mining and
holds projects in Wyoming with uranium-mineralized sandstone. These
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 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.

To obtain more information, contact investor relations at Uranerz,
telephone 1-800-689-1659, or visit our web site at www.uranerz.com .

ON BEHALF OF THE BOARD

"Glenn Catchpole"

Glenn Catchpole
President and CEO