Uranerz Commences ISR Uranium Mine Construction

CASPER, WYOMING -- (Marketwire) -- 08/01/11 -- Uranerz Energy Corporation ('Uranerz' or the 'Company') (TSX: URZ)(NYSE Amex: URZ)(FRANKFURT: U9E) is pleased to announce that it has commenced on-site construction of the Company's Nichols Ranch ISR Uranium Project located in the Central Powder River Basin of Wyoming, U.S.A. Uranerz held a ground-breaking ceremony last week to mark the start of construction of its first in-situ recovery ('ISR') uranium mine. The Company is poised to become one of the first to open a new ISR uranium mine in Wyoming in over a decade.

Construction activities will consist of two main functions: building the central processing plant, including office, laboratory, and maintenance buildings; and installing the first well-fields. Site preparation for the central processing plant commenced last week. The locations for 75 environmental monitor wells are being staked and installing these wells will begin soon. Drilling rigs for installing the monitor wells and production wells have been contracted and are now being mobilized so that they can start operating later this week. Contracts for improving the roads leading into the site and contracts for the well-field header houses are also being finalized with material purchases underway. In addition, a 550-barrel cement silo is in the final fabrication process and should be delivered to the site in mid-August.

'We are excited to be in the construction phase after some four years of license application preparation and approval, plant and well-field design, and employee training,' stated Uranerz General Manager for Production Glenda Thomas. 'The Company is now hiring additional personnel to work at the site during construction and operation, and our team is focused on achieving commercial production as soon as practical.'

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. The Company has already entered into long-term uranium sales contracts with two of the largest nuclear utilities in the U.S., including Exelon.

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 refer to the Company's website at www.uranerz.com, review the Company's filings with the Securities and Exchange Commission at www.sec.gov, or visit the Company's profile on SEDAR at www.sedar.com.

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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 the anticipated duration and costs of construction of the Nichols Ranch ISR Uranium Project and all statements setting out projections relating to construction activities. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the 'SEC') (available at www.sec.gov) and with Canadian securities administrators (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 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