Uranerz Reports Production Well and Development Update

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/28/12 -- Uranerz Energy Corporation ("Uranerz" or the "Company") (TSX: URZ)(NYSE MKT: URZ)(NYSE Amez: URZ)(FRANKFURT: U9E) is pleased to report the receipt of further good uranium grades in wells drilled during the Nichols Ranch production well-field installation. As of August 15, 2012 the Company has drilled and cased 205 recovery and injection production wells in Production Area #1 of the Nichols Ranch ISR Mine, located in the Powder River Basin of Wyoming. To date, 22.5% of the installed production wells have resulted in a grade thickness ("GT") near or above 2. This is the third news release issued this year on the continued receipt of good uranium grades as development at Nichols Ranch continues.

Examples of some of the best drilling results from the wells drilled since April 1, 2012 are provided below:

               Thickness       Grade
Well Number        (feet)        %(i)  GT(ii)
B69                 9.00       0.523    4.71
B27                17.00       0.252    4.28
A111               12.00       0.338    4.06
B44                19.00       0.194    3.69
B67                 7.50       0.469    3.52
B71                17.00       0.196    3.33
B64                 9.50       0.326    3.10
B35                17.50       0.177    3.10
A95                 9.00       0.334    3.01
B58                13.00       0.220    2.86
A76                 8.00       0.341    2.73

(i) All well pilot holes are electric logged with a standard suite of logs
including resistivity, self-potential, and natural gamma expressed as eU3O8.
eU3O8 is the equivalent (e) to chemical U3O8 when the ratio of uranium to
its decay daughter products is equal to 1. The gamma detection instruments
are calibrated in the Casper, Wyoming, US Department of Energy test pits
every 60 days.

(ii) GT represents grade multiplied by the thickness and is calculated by
multiplying eU3O8 grade (in percent) by gamma anomaly thickness (in feet)
as determined from down-hole radiometric probing. For example, a drill hole
that has 10 feet of 0.10% uranium mineralization has a GT of 1.0.

"A hole with a GT of 1 is usually considered good in the ISR uranium mining industry thus we are very encouraged to see that we have been receiving GT's as high as 4.7 in these most recent drill results," stated Kurtis Brown, Senior Vice President, Geology & Development.

Construction of the central processing plant and installation of the environmental monitor and production wells for ISR mining are proceeding. Concurrently, the Company is pursuing the final authorizations required for commencement of uranium production, including the permits for waste water disposal facilities.

Mr. Kurtis Brown, the Company's Senior Vice President, Geology and Development, is a "qualified person" as defined by Canadian National Instrument 43-101 and oversees the Company's well installation programs. He has reviewed the technical disclosure related to the Company's results that are provided in this news release.

About Uranerz

Uranerz is a U.S. mining company focused on near-term commercial in-situ recovery ("ISR") uranium production, and is currently constructing its first ISR mine in Wyoming. ISR is a mining process that uses a "leaching solution" to extract uranium from sandstone uranium deposits; it is the generally accepted extraction technology used in the Powder River Basin area of Wyoming. The Company controls a large strategic land position in the central Powder River Basin of Wyoming. 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 Exelon and one other of the largest nuclear utilities in the country.

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 its exploration and development drilling programs or outcomes, statements with respect to its exploration and construction plans, and all statements setting out projections or estimates or describing future plans or 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 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.

Uranerz Energy Corporation
Derek Iwanaka
Manager of Investor Relations

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