Uranerz Energy Corporation: Corporate Update.

VANCOUVER, British Columbia -- Uranerz Energy Corporation ("Uranerz") (OTCBB:URNZ)(FWB:U9E) is pleased to provide updates on its projects in the Athabasca Basin area of northern Saskatchewan, and the Powder River and Great Divide Basins of Wyoming.

Cochrane River Properties, Saskatchewan

Uranerz has been informed that on January 17, 2006 Triex Minerals Corporation ("Triex") completed a detailed airborne geophysics survey on Uranerz Energy's Cochrane River properties in northeastern Saskatchewan. Fugro Airborne Surveys completed helicopter-borne DIGHEM V geophysical surveys (EM and magnetic) over four grids on the Cochrane River property for a total of 1,949 line kilometres. Total budget is approximately $200,000. All the grids were flown at 100 m line spacing to produce high resolution data. The grid areas covered major boundary zones on regional airborne magnetic maps, and on the location of known mineral occurrences, geochemical anomalies and previously defined conductors. The properties span the eastern margin of the Wollaston-Mudjatic Transition Zone along which several of the major uranium deposits occur in the Athabasca Basin, such as McArthur River and Eagle Point.

Immediate follow-up with ground geophysics will be considered for the end of this winter season pending complete processing and interpretation of data, and integration with regional data sets. A follow-up exploration program including prospecting, mapping and geochemistry, as well as ground-based geophysics, is anticipated for the summer field season.

The property is located approximately 80 kilometres northeast of Cameco Corporation's Eagle Point Mine at the northeastern edge of the Athabasca Basin. The Cochrane River Property comprises two permits which adjoin the southern boundary of the Wollaston NE Property and comprise a total of 67,480 hectares (166,747 acres). The Cochrane River property is strategically located along the Wollaston belt, on trend with the highest-grade deposits in the Basin. The Cochrane River property was likely overlain by Athabasca Group sandstones for a significant portion of its geological history. Unconformity-type uranium deposits could have formed within the property at that time. Although now eroded to below the level of Athabasca Group coverage, any underlying basement-hosted or root zones of mineralization should be preserved. These are the targets of the present exploration program at the Cochrane River property.

Triex can earn a 60% interest in the Cochrane River property by making payments to Uranerz of $75,000 and spending $1,500,000 on the property by May 1, 2008. After completing the 60% earn-in phase, Triex can elect to earn an additional 10% interest in the project by spending an additional $1,500,000 by November 1, 2009.

Powder River Basin Properties

Uranerz now has twelve projects in the Powder River and Great Divide Basins of Wyoming. Each of these projects has drill-indicated uranium present. Based on historical exploration information, including rotary drill and gamma logging information, Uranerz believes that it now has total potential uranium resources in Wyoming of over 30 million pounds measured as U3O8.

The uranium resources on properties located in the Powder River Basin occur in sands of the Eocene-age Wasatch Formation. The uranium resources occur in typical Powder River Basin-type multiple stacked geochemical roll fronts at the interface of reduced and oxidized areas of the host sandstone units. Evidence of mineralization was originally determined from electric logs from wide spaced drilling and cross sections correlated by previous geologists. The uranium resources on the Company's Powder River Basin properties are believed to be beneath the water table and can be mined by the low cost in-situ leach mining method.

Glenn Catchpole, the president and CEO of Uranerz, stated that, "Based on our management's in-situ leach mining experience in uranium production in the Powder River Basin of Wyoming, we feel that with addition of the Excalibur projects to our property portfolio in that region we now have sufficient critical mass in terms of mineable uranium resources to begin commercial environmental permitting and mine development planning. To this end, Uranerz plans to add a permitting specialist and another geologist to its staff in the near future to assist with the aforementioned activities."

General

Uranerz Energy Corporation is a natural resource company engaged in the acquisition, exploration and development of properties in the uranium sector. The Company has an experienced team of mining executives, many of whom are former senior management and employees of the original Uranerz Exploration and Mining group of companies. The Company also has an Advisory Board that consists entirely of ex-Uranerz Exploration and Mining professionals. Uranerz Exploration and Mining was acquired by Cameco in 1998.

Uranerz Energy continues to acquire quality uranium properties through acquisition, claim staking, leasing and joint venture methods.

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:

(i) the inability of the Company to complete the acquisition of any interest in any new mineral exploration properties;

(ii) the inability of the Company to achieve the financing required to pursue the acquisition of exploration of any new mineral properties;

(iii) the inability of the Company to raise the financing necessary to conduct exploration or development of its properties; and

(iv) the presence of commercial mineralization on its properties.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.

Uranerz Energy Corporation (OTC Bulletin Board:URNZ) (FRANKFURT:U9E)