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Thursday, September 11, 2008
Uranerz Announces Sale
of Mongolian Property Interests
Casper, Wyoming, September 11, 2008 --
Uranerz Energy Corporation ("Uranerz" or the "Company")
(AMEX: URZ; TSX: URZ; Frankfurt: U9E) is
pleased to announce that the Company and its joint venture partner,
Bluerock Resources Ltd. ("Bluerock"), have completed the sale of
100% of their Mongolian joint venture project (the "Mongolian
Project") to Jindal Steel & Power (Mauritius) Limited
("Jindal") for an aggregate gross sales price of U.S. $2.6 million
(the "Divestiture"). The Mongolian joint venture assets,
transferred by means of a subsidiary sale of the joint venture holding
vehicle, Rolling Hills Resources LLC ("RHR"), were previously
deemed by Uranerz to be non-core assets; the Company's primary goal remains
to carry forward its Powder
River Basin projects
into near-term commercial operations, subject to required regulatory
approvals.
For the past three years, Bluerock has been acting as the manager of the
Mongolian Project with primary responsibility over its day-to-day
operations. Pursuant to a joint venture agreement between the parties,
Bluerock held a 60% ownership interest in the Mongolian Project, with
Uranerz holding the remaining 40%. Bluerock made expenditures during the
2006 and 2007 seasons to explore the Mongolian Project area, which resulted
in Bluerock earning its 60% project interest.
The Divestiture included all Mongolian Project uranium exploration
licenses, equipment, receivables and other existing material assets
maintained in Mongolia, and was subject to the fulfillment of certain
conditions such as the completion of a satisfactory due diligence review by
Jindal and its representatives. Customary representations and warranties
relating to the assets were given by each of Uranerz and Bluerock. The
Divestiture provides Uranerz with an overall gain on the sale of
approximately U.S. $950,000. Uranerz no longer has any property interests
in Mongolia.
About Uranerz
Uranerz Energy Corporation is a pure-play uranium company listed on the
American Stock Exchange ("AMEX") and the Toronto Stock Exchange
("TSX") under the symbol "URZ", and has options traded
on the Chicago Board Options Exchange and the AMEX. Uranerz is also listed
on the Frankfurt Stock Exchange under the symbol "U9E".
Members of the Uranerz management team have specialized expertise in the
ISR uranium mining method, and the Company collectively owns or controls
(including through its interest in the Arkose Mining Venture) approximately
121,900 acres
(179 square miles) in the Pumpkin Buttes Uranium Mining District of the
central Powder River Basin of Wyoming, U.S.A., an area well-known for
hosting uranium-mineralized roll fronts often amenable to ISR mining
techniques. The Company is continuing with its previously announced exploration
drilling program in the Powder River Basin for 2008 (see Company news
release dated July 9, 2008) and is on target for a total of 800,000 feet of
drilling.
The Company has submitted federal and state mining applications to build
and operate the Nichols Ranch ISR Uranium Project, which, when licensed and
constructed, will consist of a central processing facility at the Nichols
Ranch property and a satellite facility at the Hank property. Commercial
ISR mining in the Powder River Basin has been ongoing since 1987, with
production coming from the Smith Ranch-Highland mine currently owned and
operated by Cameco Resources Inc. and from AREVA NC's Irigaray-Christensen
Ranch ISR mine located in the Pumpkin Buttes uranium mining district
(presently on stand-by, but re-start of operations has been announced). Commencement
of operations at the Nichols Ranch ISR Uranium Project is dependent on
receipt of required regulatory approvals, but is currently projected for
late 2010 or 2011.
Further Information
For further information, contact the Company's Investor Relations
department at 1-800-689-1659 or 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 the SEDAR website at www.sedar.com.
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 is not limited to, statements with respect to planned
development, capital and operating cost and other projections, resource
estimates, our planned exploration and drilling programs, the availability
of future financing for exploration, and other plans, estimates and
expectations. 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.
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