Uranerz Announces Second Quarter Financial Results

Uranerz Energy Corporation ("Uranerz" or the "Company") (NYSE Amex and TSX: URZ; Frankfurt: U9E) has released its financial results for the second quarter ended June 30, 2011 as filed with the United States Securities and Exchange Commission ("SEC") and in Canada with the Canadian securities administrators ("SEDAR").

Uranerz recently commenced construction of its first uranium mine, the Nichols Ranch ISR Uranium Project, and is continuing to expand its resource base through exploration programs in the Powder River Basin of Wyoming.

Second Quarter Highlights:

During the second quarter of 2011 the Company:

• Had cash of $44,852,760 and working capital of $44,754,877;
• Commenced its 2011 exploration program: drilled a total of 135 holes for a total of 96,000 feet with three drill rigs;
• Began drilling mineral delineation holes on the west flank (Mining Area 2) of Nichols Ranch;
• Completed planning for the construction of the Nichols Ranch production facility;
• Drilled and successfully installed a water-well at Nichols Ranch. The well is for obtaining water to be used for exploration drilling and during installation of monitor and production wells at Nichols Ranch;
• Finalized plans for the installation of the monitor and production wells at Nichols Ranch;
• Hired a new employee for well field development at Nichols Ranch;
• Continued preparation of permit applications for a third mining unit;
• Issued 414,500 shares of common stock pursuant to the exercise of stock options, for proceeds of $485,825;
• Extended its stock option plan by ten years and twenty million shares of common stock; and
• Approved an increase of its authorized common shares from 200 million to 750 million.

Recent Highlights:

Subsequent to the end of the second quarter, the Company received its Materials License from the Nuclear Regulatory Commission. As of July 20, 2011 the Company has received all authorizations required to allow the Company to begin construction of its Nichols Ranch ISR Uranium Project. At this Project the Company expects to take its Nichols Ranch and Hank units into production of uranium concentrate (yellowcake), which can be sold directly to utilities for processing into fuel used in nuclear electrical generating facilities.

Uranerz has completed the detailed engineering and design of its processing facility and first production well fields for the Nichols Ranch ISR Uranium Project and, in July, commenced construction of the facility and related infrastructure.

The Company is continuing preparation of the environmental permit and license applications for a third unit, Jane Dough, which is adjacent to the area currently being developed at the Nichols Ranch unit and which will share its infrastructure. Jane Dough includes the Doughstick, South Doughstick and North Jane properties. Additional units may be added as the Company assesses its geological data.

Financial Results:

The financial information presented is in accordance with U.S. generally accepted accounting principles. To review Uranerz' quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2011, including its management discussion and analysis, visit the SEC, SEDAR or Uranerz websites.

About Uranerz
Uranerz is a U.S.-based uranium company focused on achieving near-term commercial in-situ recovery ("ISR") uranium production. ISR is a mining process that uses a "leaching solution" to extract uranium from underground ore bodies; it is the generally accepted extraction technology used in the Powder River Basin area of Wyoming (ISR comprised 41% of world uranium production in 2010). The Company controls a large strategic land position in the Pumpkin Buttes Uranium Mining District of the central Powder River Basin of Wyoming, U.S.A. Uranerz' management team has specialized expertise in the ISR uranium mining method, and a record of licensing, constructing, and operating ISR uranium projects. The Company has entered into long-term uranium sales contracts for a portion of its planned production with two of the largest nuclear utilities in the U.S., including Exelon.

Further Information
For further information, please contact Derek Iwanaka, Manager of Investor Relations at 1-800-689-1659 or by email at investor@uranerz.com. Alternatively, 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.

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, all statements setting out projections relating to construction activities, statements with respect to our planned exploration and drilling programs, expected resources, and statements setting out our plans or projections as to details of construction of our Nichols Ranch ISR Uranium Project and all other statements containing 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, except as required by law.