Uranerz Signs Processing Agreement with Cameco

Tallahassee, FL 11/30/11 (StreetBeat) --Uranerz Energy Corporation (AMEX: URZ.TO) is pleased to announce that it has signed a processing agreement with Cameco Resources, a wholly-owned Wyoming subsidiary of Cameco Corporation, the world's largest publicly-traded uranium company.

Under the agreement, Uranerz will deliver uranium-loaded resin produced from the Company's Nichols Ranch in-situ recovery mining operations to Cameco's Smith Ranch Highland uranium mine for final processing into dried uranium concentrate packaged for shipping to a converter. The processing of Uranerz' loaded resin at Cameco's facility will not change the Company's production plans. "Uranerz will retain the regulatory and physical flexibility to install a full processing plant at the Nichols Ranch ISR mine at a later date if it chooses to do so," explains Uranerz Executive Vice President and Chief Operating Officer, George Hartman.

In August 2011, Uranerz commenced construction of its Nichols Ranch ISR Uranium Project located in the central Powder River Basin of Wyoming, U.S.A. Construction is well underway and is currently on schedule. As a result of this agreement, Uranerz will only install the ion-exchange circuit and the well-field makeup circuit at this time at the Nichols Ranch central processing plant, thus reducing capital costs. The Nichols Ranch ISR Uranium Project is licensed for a production level of up to two million pounds of uranium (as U3O8) per year with initial production targeted for 600,000 to 800,000 pounds per year after ramp-up.

Uranerz is well financed for its current capital needs, with over $37 million in its treasury.

Cameco's Smith Ranch Highland mine is located in the Powder River Basin approximately 45 air miles south of Uranerz' Nichols Ranch ISR uranium mining project.

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