Uranerz Energy Corporation: Joint Venture of Two Projects

Market Wire, June, 2006

Uranerz Energy Corporation ("Uranerz") (OTCBB: URNZ)(FWB: U9E) is pleased to announce that it has signed an agreement with Black Range Minerals Limited ("Black Range") of West Perth, Australia, to joint venture its Cyclone Rim and Eagle projects located within the Red Desert area of southwest Wyoming.

The Cyclone Rim project consists of 23 federal mining claims and an adjacent 640-acre Wyoming state lease with the uranium mineralization clearly extending into the lease area. This property is located in Sweetwater County, Wyoming. The Eagle property consists of 28 federal mining claims and is also located in Sweetwater County. Both properties have historical exploration drilling from the 1970s, and Uranerz is in possession of some of these data in the form of electric and lithologic drill logs, together with drill hole maps depicting location, depth, grade and thickness of the mineralized roll fronts. A third-party registered geologist under contract to Uranerz has reported resources of 1,307,877 pounds in the inferred and indicated categories plus 1,600,000 potential pounds for the Cyclone Rim property, and 1,154,000 inferred pounds and 762,000 prognosticated pounds for the Eagle project, all as U3O8.

Under the terms of the joint venture Black Range shall have the right to earn a 50% equity interest in the joint venture by managing and meeting the first US$750,000 in exploration expenditures on the projects, at no cost to Uranerz, including land holding costs such as BLM maintenance fees, lease costs etc. Black Range is obliged to spend at least US$100,000 per year on exploration on the projects and to spend the first US$750,000 on exploration within three (3) years of inception of the joint venture agreement. Once Black Range has spent US$750,000 on the projects its interest shall increase to 50%.

On completion of the first phase of the exploration program, should either party elect not to contribute to the costs of the second phase of expenditure on a pro-rata basis, then the other party shall have the right to earn a further 1% interest in the joint venture for every US$25,000 spent on the Projects to earn a maximum interest in the joint venture of 70% (by spending US$500,000).

On completion of the second phase of expenditure, should either party elect not to contribute to all further expenditure on a pro-rata basis, then the other party shall have the right to earn a further 1% interest in the joint venture for every US$25,000 spent on the projects to a maximum interest in the joint venture of 100% (by spending US$750,000). The non-contributing party will be awarded a 6% royalty for their contribution up to that point.

Uranerz is also pleased to announce the recent hiring of Mr. Ben Vrbas as a geologist to work in the Uranerz Casper office. Ben graduated from the University of Kansas ("KU") with a bachelor of science degree in geology. KU is well known for its excellent program in sedimentary geology which relates well to Uranerz' focus on sandstone, roll front uranium deposits. Ben will be working under the direction and guidance of Uranerz Energy's senior contract geologist, Kurt Brown. As part of his duties, Mr. Vrbas will be in the field this summer overseeing our exploration drilling program and associated electric logging activities in the Powder River Basin of Wyoming. In addition to his geology skills, Ben's experience with GIS geologic mapping systems will be a valuable asset for the company.

Uranerz Energy Corporation is engaged in the acquisition, exploration and development of properties in the uranium sector. The Company's goal is to produce uranium. Most members of the management team at Uranerz Energy are former employees of the original Uranerz group of companies that was bought out by Cameco Corporation in 1998. This team has direct experience in licensing, designing, constructing and operating five separate in-situ leach uranium mines, and one borate in-situ leach mine in the United States.

Currently, Uranerz has uranium properties in Wyoming (USA), Saskatchewan (Canada) and Mongolia. The Canadian and Mongolian uranium properties are in the exploration stage, and Uranerz has joint ventured these projects to other companies to minimize Uranerz Energy's exploration risk. The Powder River Basin Wyoming uranium properties are advanced, and the Company has initiated environmental licensing and mine planning for the development of two of these projects, with the possibility of adding a third property in the near future.

For more information contact the Company at 604-689-1659. The Company has a web site at www.uranerz.com .

ON BEHALF OF THE BOARD

Glenn Catchpole, President and CEO

This Press Release may contain, in addition, to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements are: