Uranerz Initiates Drilling on Arkose Property

Market Wire, March, 2008

Uranerz Energy Corporation ("Uranerz" or the "Company") (TSX: URZ)(AMEX: URZ)(FRANKFURT: U9E) is pleased to announce the initiation of drilling on the Arkose Mining Venture Property ("Arkose Property") in the central Powder River Basin of Wyoming, U.S.A. Three drill rigs and one electric log probing unit moved to the Arkose Property in early March and began drilling operations on March 6, 2008. Currently Uranerz is drilling on Arkose Property targets just south of the Company's 100%-owned Collins Draw property. It is anticipated that each drill rig can drill between one and two 600-foot holes per day, with results logged electronically.

As manager/operator of the Arkose Property, the Company has developed an aggressive exploration drilling program to delineate and define National Instrument 43-101 ("NI 43-101") categorized mineral resources on the Arkose Property. The focus of the drilling will be on exploration targets identified in the NI 43-101 Technical Report dated February 27, 2008 available on the System for Electronic Document Analysis and Retrieval ("SEDAR"). Based on a conceptual model developed by the authors of the NI 43-101 Technical Report, the potential exploration target of uranium mineralized alteration-reduction fronts is approximately 105 miles and, in aggregate, has the potential to contain from 41 million to 79 million pounds of U308 at a potential grade ranging from 0.059% to 0.114%. Alteration-reduction trends in the Powder River Basin of Wyoming are frequently composed of multiple, stacked roll fronts that often contain associated uranium mineralization amenable to in-situ recovery ("ISR") mining techniques.

The filed NI 43-101 Technical Report presents an estimate of the potential uranium exploration target on the Arkose Property pursuant to NI 43-101, Section 2.3(2), which states that, subject to the provisions thereof, an issuer may disclose the potential quantity and grade, expressed as ranges, of a potential mineral deposit that is to be the target of further exploration by the issuer. Investors are cautioned that the potential quantity and grade described in the NI 43-101 Technical Report is conceptual in nature and does not meet the NI 43-101 classification of "measured", "indicated" or "inferred" mineral resources as defined by NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definitions Standards incorporated by reference therein, and that the potential quantity and grades presented are based on a lower level of certainty than the "inferred" mineral resource category of NI 43-101. There has been insufficient exploration to define a NI 43-101 categorized "inferred", "indicated" or "measured" mineral resource on the Arkose Property, and it is uncertain if further exploration will result in the target being delineated as such a categorized mineral resource. Further, no economic evaluation of the potential uranium exploration target for the Arkose Property was completed by the authors. U.S. investors are referred to the cautionary statement below for further cautionary information regarding mineral "reserves" as defined under United States securities laws.

The NI 43-101 Technical Report was authored by Mr. Douglass Graves, P.E. of TREC, Inc. and Mr. Don Woody, P.G. of Woody Enterprises, each an independent "qualified person" as defined by NI 43-101 who have reviewed and verified the technical disclosure provided in this news release.

The 2008 exploration program strategy concentrates on four target areas on the Arkose Property with the intent of identifying mineralization for qualification in NI 43-101 resource technical reports. The four areas include targets in the northeast, northwest, South Collins Draw area, and South Doughstick area of the Arkose Property. Uranerz plans to operate up to five drill rigs and two electric log probing units on the Arkose Property and anticipates a total of approximately 1,500 holes during the year, or 900,000 feet of total exploration drilling. The Arkose Mining Venture technical committee has approved this 2008 program.

About Uranerz and the Arkose Mining Venture

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 (derivatives on the common stock: puts and calls) traded on the Chicago Board Options Exchange and the AMEX. The Company is also listed on the Frankfurt Stock Exchange under the symbol "U9E".

Certain members of the Uranerz management team have considerable specialized expertise in the ISR uranium mining method, and the Company collectively owns or controls (through its interest in the Arkose Mining Venture) approximately 114,900 acres (46,499 hectares or approximately 179 square miles) in the Powder River Basin of Wyoming, U.S.A., an area well known for hosting uranium-mineralized roll fronts that are amenable to ISR mining techniques.

Uranerz is the operator/manager of the Arkose Mining Venture, pursuant to which Uranerz holds an undivided eighty-one percent (81%) interest in the Arkose Property and United Nuclear, LLC, a limited liability company owned by the vendors of the Arkose properties, holds (and contributes capital in proportion to) its nineteen percent (19%) working interest in the Arkose Property. Collectively, the Arkose Property is 82,200 acres (33,266 hectares) located in close proximity to the Company's 100%-owned properties in the Powder River Basin, including adjacent Collins Draw, Doughstick and other nearby properties that have been the subject of the Company's recent exploration efforts.