Mr. Glenn Catchpole reports

URANERZ STARTS URANIUM MINING OPERATIONS AT NICHOLS RANCH

Uranerz Energy Corp. has commenced uranium mining operations at its wholly owned Nichols Ranch ISR uranium project located in the Powder River basin of Wyoming, U.S., after receiving final clearance from the Nuclear Regulatory Commission.

Construction and commissioning of the Nichols Ranch recovery plant and initial well field have been completed. Uranium mining operations have commenced by using the in situ recovery mining method wherein groundwater fortified with oxygen, sodium bicarbonate and carbon dioxide is circulated through the sandstone-hosted uranium deposit by means of injection and recovery wells. Uranium is extracted from the groundwater using ion-exchange technology. The uranium-loaded resin from the ion-exchange vessels at Nichols Ranch will be transported to Cameco Resources' Smith Ranch uranium processing facilities for final processing into dried and drummed uranium concentrates pursuant to a toll processing agreement between the two companies. Uranerz will arrange for shipments of its uranium from the Smith Ranch facility to a conversion facility where ownership will be transferred to its nuclear utility customers.

"The start of mining operations at Nichols Ranch represents the achievement of a major milestone for the company that was attained through the hard work and determination of Uranerz's highly motivated employees," stated chief executive officer Glenn Catchpole. "This is an exciting time for our entire team as Nichols Ranch becomes the newest uranium mine in North America."

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