Uranerz Reports Independent NI 43-101 Uranium Resources on Hank Property

Market Wire, May, 2008

Uranerz Energy Corporation ("Uranerz" or the "Company") (TSX: URZ)(AMEX: URZ)(FRANKFURT: U9E) is pleased to announce that it has received an independent National Instrument 43-101 ("NI 43-101") technical report for the Hank property confirming a "measured and indicated" mineral resource of 2,236,050 pounds of U308 at an average grade of 0.123% and an "inferred" mineral resource of 246,753 pounds of U308 at an average grade of 0.087%. These mineral resource estimates were calculated in accordance with the requirements of NI 43-101 and the Canadian Institute of Mining Metallurgy and Petroleum Definitions Standards incorporated by reference therein using a GT(i) cut-off of 0.20. The uranium mineral resources at the Hank property, located in the Pumpkin Buttes Uranium Mining District of the central Powder River Basin of Wyoming, U.S.A., are comprised of sandstone-hosted "roll front" uranium deposits that are typical to the area and often amenable to in-situ recovery ("ISR") mining techniques.

In December 2007, the Company submitted federal and state mining license and permit applications to build and operate the Nichols Ranch ISR Complex, including a uranium ISR wellfield, an ion-exchange plant and a central processing facility (complete with drying and packaging circuits for finished yellowcake product) at the Nichols Ranch property and a satellite facility with a uranium ISR wellfield and ion-exchange plant at the Hank property. On April 23, 2008, the Company announced that the U.S. Nuclear Regulatory Commission has deemed the Company's federal license application acceptable to advance to the next formal review phase of undergoing a detailed technical and environmental review. The Company plans to continue its mine permitting activities and is currently assessing its other projects to select properties for further applications to license additional satellite facilities to feed the central processing facility designed for Nichols Ranch.

The Company has retained TREC, Inc. to conduct an economic evaluation of the Nichols Ranch ISR Complex based on the measured and indicated resources set out in the Company's Hank and Nichols Ranch NI 43-101 mineral resource estimate technical reports.

The NI 43-101 technical report on the Hank property 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 NI 43-101 technical report has been filed by the Company and will soon be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com .

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 114,900 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 has implemented an aggressive drill program for 2008 utilizing up to five drill rigs and two electric log probing units, with a potential total of 1,500 holes drilled.

The Company has submitted federal and state mining applications to build and operate the Nichols Ranch ISR Complex, 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 Complex 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 visit the Company's profile on the SEDAR website at www.sedar.com .

(i) GT represents grade times thickness and is calculated by multiplying U3O8 grade (in percent) by gamma anomaly thickness (in feet) as determined from downhole radiometric probing.

All mineral resources disclosed in this press release and in the NI 43-101 technical report referenced herein have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as "NI 43-101". As a company listed on the TSX, we are required by Canadian law to provide disclosure in accordance with NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the Industry Guide 7 ("Guide 7") of the U.S. Securities and Exchange Commission (the "SEC"). NI 43-101 and Guide 7 standards are substantially different. The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI 43-101. These definitions differ from the definitions in Guide 7. Under Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.