Uranerz Initiates 2011 Powder River Basin Drilling Program

CASPER, WYOMING -- (Marketwire) -- 05/10/11 -- Uranerz Energy Corporation ('Uranerz' or the 'Company') (TSX: URZ)(NYSE Amex: URZ)(FRANKFURT: U9E) announces the initiation of the 2011 exploration drilling program with three rotary rigs now turning at its advanced-stage uranium projects in the central Powder River Basin ('PRB') of Wyoming, U.S.A. This year's program will focus on identifying new uranium mineralization trends based on information from the extensive drill hole data library acquired by the Company last year. The scope of the 2011 program is planned to comprise some 500 exploration drill holes with depths averaging approximately 700 feet.

Uranium mineralization in the PRB occurs along alteration-reduction trends and is frequently composed of multiple, stacked roll fronts that often contain associated uranium mineralization amenable to in-situ recovery ('ISR') mining techniques. Thus far, Uranerz has identified over 300 miles (483 kilometers) of alteration-reduction trends on its project areas which cover approximately 93,000 acres (38,000 hectares) of mineral interest holdings. Uranerz has explored approximately 15% of those identified trends. The Company is using one rig for detailed delineation drilling on the Nichols Ranch uranium deposit in anticipation of developing its first ISR wellfields later this year. It is planned that the other two drill rigs will continue exploration on the Arkose Mining Venture project areas, as well as in a new area recently staked based on information interpreted from the extensive drill data library.

'We have put considerable effort into reviewing the new log library data over the winter months and believe an excellent plan has been developed to assist us with expanding our uranium resources in the Powder River Basin,' stated Kurt Brown, Uranerz Senior VP of Exploration.

About Uranerz

Uranerz Energy Corporation is a U.S.-based uranium company focused on achieving near-term commercial in-situ recovery ('ISR') uranium production in Wyoming, the largest producer of uranium of any U.S. state. The Uranerz management team has specialized expertise in the ISR uranium mining method, and has a record of licensing, constructing and operating commercial ISR uranium projects.

Uranerz Energy Corporation is listed on the NYSE Amex and the Toronto Stock Exchange under the symbol 'URZ', and listed on the Frankfurt Stock Exchange under the symbol 'U9E'.

Further Information

For further information, please contact Derek Iwanaka, Manager of Investor Relations at 1-800-689-1659 or by email at info@uranerz.com. Alternatively, please refer to the Company's website at www.uranerz.com, review the Company's filings with the SEC at www.sec.gov, or visit the Company's profile on SEDAR at www.sedar.com.

Forward-looking Statements

This press release may contain or refer to 'forward-looking information' and 'forward-looking statements' within the meaning of applicable United States and Canadian securities laws, which may include, but are not limited to, statements with respect to our planned exploration and drilling programs, expected resources, and statements setting out its plans or projections as to commencement of construction of its Nichols Ranch ISR Uranium Project and all other statements containing estimates and expectations. Such forward-looking statements reflect the Company's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties outlined in the Company's most recent financial statements and reports and registration statement filed with the SEC (available at www.sec.gov) and with Canadian securities regulators (available at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We do not undertake to update forward-looking information or forward-looking statements, except as required by law.

Contacts:

Uranerz Energy Corporation

Derek Iwanaka

Manager of Investor Relations

1-800-689-1659
info@uranerz.com
www.uranerz.com