Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Uranerz Energy Corporation - Exhibit 10.8

Uranerz Energy Corporation 
Suite 1410, 800 West Pender
Street 
Vancouver, B.C.
V6C 2V6 
604-689-1659

February 17, 2006

Mr. Michael Collins 
President 
Bluerock Resources Ltd.,

890 – 885 Dunsmuir Street 
Vancouver, B.C.
V6C 1N5

Re: Joint Venture of Mongolian Uranium
Projects

Dear Mr. Collins:

The purpose of this letter ("Letter Agreement") is to set forth
binding contract terms between Uranerz Energy Corporation, a Nevada corporation
("Uranerz") and Bluerock Resources Ltd., a British Columbia corporation ("BRD").
The properties subject to this Letter Agreement are ownership interests in
Exploration Licenses, which have received approval with the Office of Geology
and Mining Cadastre (OGMC), a department of the Mineral Resource Authority of
Mongolia (MRAM) located in Mongolia, known collectively as the Mongolian
Projects, all as described more specifically in Attachment 1 hereto (the
“Projects” or "Properties").

1.      Grant of Exclusive Right to
Acquire Interest in Properties and Enter into Joint Venture Agreement. Uranerz
hereby grants to BRD the exclusive right to acquire an undivided 55% interest in
the Properties, subject to the terms and conditions of this Letter Agreement and
a Joint Venture Agreement, which shall be based upon the Rocky Mountain Mineral
Law Foundation's Model Exploration, Development and Mine Operating Agreement,
1996 Edition ("Form 5A"), as more specifically described in paragraph 4 below.
The “Manager” shall be as defined in Form 5A. Until the formation of the Joint
Venture, the manager of the work program shall be BRD.

To earn a 55% interest in the Properties and the Joint Venture,
BRD must make the payments set forth in section 2, and make the payments and
incur the expenditures referred to in section 3.

1

2.      BRD will make a $5,000 (US)
payment to Uranerz on signing this Letter of Agreement with Uranerz. BRD will
make a $30,000 (US) payment to Uranerz and issue 150,000 shares of BRD to
Uranerz at the later date of the following; a 30 day due diligence period, or 10
days after the review of the report currently being written on the green fields
projects, or acceptance for filing by the TSX Venture Exchange. Provided Uranerz
can show it holds good title to the Properties, the payment of $30,000 (US) and
the issuance of 150,000 shares of BRD to Uranerz must be made by March 31, 2006
or this agreement becomes null and void and BRD forfeits the payment of $5000
(US). If Uranerz cannot show it holds good title to the Properties by March 31,
2006, the US$5,000 deposit will be paid back to BRD.

3.      BRD Payments and Work
Expenditures. In order to maintain this Letter Agreement in effect, BRD must
make the payments and incur the work expenditures described in paragraphs 3.A
and 3.B below, respectively. If BRD fails in either case to do so, the sole
effect shall be termination of this Letter Agreement as of the applicable
deadline, except for the taxes and any government maintenance fees due within
120 days of signing this Letter Agreement for the projects within the
Properties, except for the first annual payment due to Uranerz by October 18,
2006 and except for the first $400,000 work expenditure, as provided in
paragraph 3.B below. By signing this Letter Agreement BRD guarantees that it
will pay the taxes and any government maintenance fees due within 120 days of
signing this Letter Agreement for the projects within the Properties and will
pay to Uranerz the first lease payment by October 18, 2006 and will complete the
first $400,000 work expenditure by October 18, 2006. Uranerz will produce a
table outlining the taxes and lease fees and payment dates due over the first 3
years of the proposed option period

A.      Payments: The following
payments to Uranerz shall be due on or before the following dates:

	Due Date 	 	Amount 	 
	October 18, 2006 	$	30,000 	 
	October 18, 2007 	$	40,000 	 
	October 18, 2008 	$	50,000 	 
	October 18, 2009 	$	50,000 	 

          Uranerz
shall designate an account to which such payments may be made by wire transfer.
A payment shall be deemed to have been made timely by BRD if its wire transfer
is initiated or its cheque is transmitted by express courier on or before the
applicable due date. Until the parties enter into a Joint Venture Agreement
pursuant to paragraph 4 below, BRD shall have sole liability for, and the
Manager shall have responsibility for, the annual taxes and government
maintenance fees that may become due to the various levels of government
regarding the Properties. BRD’s liability share be capped to $32,000 for 2006
and 

2

$47,000 for 2007 unless the increase is related to an increase
in the government mandated fees. Uranerz will be liable for any other amount in
excess of the yearly cap.

B.      Work Expenditures: BRD shall
expend the following amounts by each of the following dates on Exploration (as
defined in Form 5A) operations on or for the benefit of the Properties:

	Deadline 	 	Amount 	 
	 	 	  	 
	October 18, 2006 	$	400,000 	 
	October 18, 2007 	$	500,000 	 
	October 18, 2008 	$	900,000 	 
	October 18, 2009 	$	1,200,000 	 

          Excess
amounts expended in any year shall credit against subsequent years' requirements
only until such time as BRD has expended $3,000,000 and earned a 55.0 percent
Participating Interest in the Joint Venture. Failure to meet the work
commitments in any year causes forfeiture of a 100% interest in the project back
to Uranerz. Once BRD has expended $3,000,000 and earned a 55% Participating
Interest in the Joint Venture, Uranerz may elect to spend $300,000 to earn back
a 6% interest in the project for a 51% Participating Interest in the Joint
Venture. Failure by BRD to meet the work commitments in any year causes
forfeiture of a 100% interest in the project back to Uranerz.

          After
the second anniversary BRD can elect to remove Properties from this Agreement.
BRD is required to give 60 days notice of intent to do so. Properties may be
removed from this Agreement at any time if there is mutual agreement to do so.
All payments and work requirements will remain the same regardless of the
addition or subtraction of projects from this Agreement.

           If
this Letter Agreement terminates within 60 days of the due dates for any taxes
or other contractual payments related to the Properties or within 90 days of the
deadline for any maintenance fees for Exploration Licenses within the
Properties, BRD shall be obligated to make those payments or pay those taxes, as
applicable. No Properties shall be allowed to lapse while this Letter Agreement
remains in effect, unless both BRD and Uranerz approve of same in writing. For
purposes of determining what charges and costs will credit against the above
expenditure requirements, the parties shall utilize the Accounting Procedures
attached as Exhibit B to Form 5A, with the exception that the charge under
Subsection 2.13(a)(i) of those accounting procedures for BRD’s office and
general and administrative expenses shall be a flat fee of 10.0% of all
Allowable Costs (as defined in those Accounting Procedures).

C.      Responsibility for Reclamation
and Environmental Conditions: Unless and until the parties enter into a Joint
Venture Agreement pursuant to paragraph 4

3

below, the Manager shall have sole responsibility for
reclamation of disturbances of the Properties caused by its Exploration
operations pursuant to paragraph 3.B above. As project manager, BRD will post a
$10,000 bond with a mutually agree third party as a guarantee of the reclamation
and remediation of any work done by the Manager or its representatives. If this
option agreement is terminated prior to the formation of a Joint Venture the
bond shall be made available for pay of remediation work for a period of one
calendar year from the termination of the agreement. Any remaining moneys shall
be returned to BRD at the end of the one year period. If and at such time as the
parties enter into the Joint Venture Agreement pursuant to paragraph 4 below,
the responsibility for the environmental conditions of the Properties,
regardless of when created, shall be borne by the Joint Venture, unless BRD
continues to work towards a larger Participating Interest, in which case the
Manager shall continue to have sole responsibility for reclamation of
disturbances of the Properties caused by its Exploration operations until such
time as the parties enter into the Joint Venture Agreement with determined
Participating Interests.

4.      Conditions for Entering into
Joint Venture Agreement and BRD's Retention of 55% Interest. At such time as BRD
has expended $3,000,000 on or before October 18, 2009 and Uranerz has elected
not to expend $300,000 on the Property on or before July 31, 2010, or waives its
right to do so:

A.      The parties shall enter into a
Joint Venture Agreement, based upon Form 5A, which shall be modified so as to be
consistent with the provisions of this Letter Agreement and to incorporate the
terms contained in Attachment 2 hereto;

B.      BRD shall contribute as its
Initial Contribution pursuant to Section 5.1 of Form 5A its undivided 55%
interest in the Properties;

C.      Uranerz shall contribute as
its Initial Contribution pursuant to Section 5.1 of Form 5A its undivided 45%
interest in the Properties; and

D.      This Letter Agreement shall
terminate, and all subsequent operations on and for the benefit of the
Properties shall be governed by the Joint Venture Agreement.

          If BRD
fails to expend at least $3,000,000 by October 18, 2009, this Letter Agreement
shall terminate as of that date.

5.      Following BRD’s earning a 55%
interesting in the project, Uranerz may elect to expend $300,000 on or before
July 31, 2010, to earn back an additional 6% interest, (for a total 51%
interest).

A.      The parties shall enter into a
Joint Venture Agreement, based upon Form 5A, which shall be modified so as to be
consistent with the provisions of this Letter Agreement and to incorporate the
terms contained in Attachment 2 hereto;

4

B.      BRD shall contribute as its
Initial Contribution pursuant to Section 5.1 of Form 5A its undivided 49%
interest in the Properties;

C.      Uranerz shall contribute as
its Initial Contribution pursuant to Section 5.1 of Form 5A its undivided 51%
interest in the Properties; and

D.      This Letter Agreement shall
terminate, and all subsequent operations on and for the benefit of the
Properties shall be governed by the Joint Venture Agreement.

6.      Underlying Royalty. BRD and
Uranerz understand that some or all of the Properties may be burdened by a
royalty, pursuant to the rules and mining laws of Mongolia. The Joint Venture
shall make the necessary deductions for these royalty payments in proportion to
their respective Participating Interests before any distributions to the
parties.

7.      Representations and
Warranties.

A.      Uranerz and BRD hereby
incorporate by reference the Participants' representations and warranties
contained in Section 3.1 of Form 5A.

B.      Uranerz and BRD hereby
represent and warrant that they have received and reviewed full and complete
copies of Form 5A, including all Exhibits thereto.

8.      Insurance and Indemnity.

A.      Liability Insurance. The
Manager shall, at BRD’s sole cost, keep in force during this Letter Agreement
term a policy of commercial general liability insurance covering property damage
and liability for personal injury occurring on or about the Property, with
limits in the amount of at least One Million Dollars ($1,000,000) per occurrence
for injuries to or death of person, and Five Hundred Thousand Dollars ($
500,000) per occurrence for property damage.

B.      Form and Certificates. The
policy of insurance required to be carried by the Manager pursuant to this
Section shall be with a company of comparable size and capabilities commensurate
with industry standards for insuring similar operations within the country of
Mongolia. Such policy shall name Uranerz as an additional insured and contain a
cross liability and severability endorsement. The Manager’s insurance policy
shall also be primary insurance without right of contribution from any policy
carried by Uranerz.

C.      Waiver of Subrogation. BRD and
Uranerz each waives any and all rights of recovery against the other, and
against the partners, members, officers, employees, agents and representatives
of the other, for loss of or damage to the 

5

Properties or injury to person to the extent such damage or
injury is covered by proceeds received under any insurance policy carried by
Uranerz or BRD and in force at the time of such loss or damage.

D.      Waiver and Indemnification.
Uranerz shall not be liable to BRD and BRD waives all claims against Uranerz for
any injury to or death of any person or damage to or destruction of any personal
property or equipment or theft of property occurring on or about the Property or
arising from or relating to business conducted on the Property.

9.      After Acquired Properties

          "After
Acquired Properties" means any and all mineral interests located, granted or
acquired by or on behalf of either of the parties hereto during the currency of
this Agreement which are located within 3 km of Properties currently held within
the option agreement with the exception of License 10241X.

          The
parties covenant and agree, each with the other, that any and all After Acquired
Properties shall be subject to the terms and conditions of this Agreement and
shall be added to and deemed, for the purposes hereof, to be included in the
Property. 

10.     Liens and Notices of Non
Responsibility. The Manager agrees to keep the Property at all times free and
clear of all liens, charges and encumbrances of any and every nature and
description done made or caused by the Manager.

11.     "Dollars" and "$". All
references to "Dollars" and "$" are to United States Dollars.

12.     Force Majeure. The provisions
of Section 19.7 of Form 5A are incorporated herein by reference with respect to
obligations of BRD and time periods for work expenditures under paragraph 3.B
above. The blank in Section 19.7 of Form 5A, for purposes of this Letter
Agreement, shall be "two (2)" months. 

13.     Uranerz’s Right to Data and
Confidentiality. During the term of this Letter Agreement, Uranerz and BRD shall
have the right to review the accounts and all data and information obtained by
the Manager regarding the Properties, provided that they provide the Manager
with reasonable advance notice of their desire to inspect same and provided
further that such information shall be provided to the parties without any
representations or warranties by the Manager as to the accuracy or completeness
of same. The Manager shall prepare and deliver to the parties reports of its
progress and findings as soon as reasonably possible, if that information is
reasonably determined by BRD or Uranerz to be material for disclosure purposes,
and in any event shall be delivered to the parties on at least an annual basis.
All such information shall be kept confidential by the 

6

parties and shall not be disclosed except as may be necessary
to comply with rules or regulations of any governmental agency or stock
exchange. Each party shall have the right, subject to reasonable advance notice
to the other party, to prepare and disseminate news releases on the results and
progress of Exploration operations on the Properties.

14.     Reports. On or before April 1
following each year during which this Agreement is effective, the Manager shall
deliver to the other party a copy of all data and maps, and a report of all of
its activities conducted on the Properties for the previous calendar year.

15.     Inspection. BRD or BRD’s duly
authorized representatives shall be permitted to enter on the Property and the
Manager’s workings at all reasonable times for the purpose of inspection, but
they shall enter on the Property at their own risk and in such a manner which
does not unreasonably hinder, delay or interfere with the Manager’s
operations.

16.     Relationship of Parties. This
Letter Agreement (or the Joint Venture Agreement when concluded) is not a
partnership. Nothing contained in this Joint Venture shall be deemed to
constitute one party being a partner of the other party. It is not the intention
of the parties to create nor shall this Letter Agreement be construed to create
any mining, commercial or other partnership.

17.     Severability. If any provision of
this Letter Agreement is or shall become illegal, invalid or unenforceable, in
whole or in part, the remaining provisions shall nevertheless be and remain
valid and enforceable and the said remaining provisions shall be construed as if
this Letter Agreement had been executed without the illegal, invalid or
unenforceable portion.

18.     Reassignment, transfer and related
Matters. Either party of the Letter Agreement (or the Joint Venture Agreement
when concluded) may transfer or assign its interest in whole or in part of this
Letter Agreement to a responsible transferee provided first right of refusal at
the same terms as is given to the transferee is first given to the remaining
Joint Venture party so that the remaining Joint Venture party has the option but
not the obligation to own the entire project.

19.     Notices. All notices, payments and
other required communications (“Notice” or “Notices”) to the parties shall be in
writing, and shall be given (i) by personal delivery to each party, or (ii) by
electronic communication, with a confirmation sent by registered or certified
mail, return receipt requested, or (iii) by registered or certified mail, return
receipt requested. All Notices shall be effective and shall be deemed delivered
(i) if by personal delivery on the date of delivery, (ii) if by electronic
communication on the date of receipt of the electronic communication, and (iii)
if solely by mail on the day delivered as shown on the actual receipt. A party
may change its address from time-to-time by Notice to the other party.

7

Notice to BRD shall be sent to:

Mr. Michael Collins 
President 
Bluerock Resources Ltd.,

890 – 885 Dunsmuir Street 
Vancouver, B.C.
V6C 1N5
Fax:
604-669-3357

	Notice to UEC shall be sent to: 	with a copy to: 
	  	  
	Dennis Higgs 	Glenn Catchpole 
	Uranerz Energy Corporation 	Uranerz Energy Corporation 
	Suite 1410 - 800 West Pender Street 	222 Carriage Circle 
	Vancouver, B.C. 	Cheyenne, Wyoming 82009 
	V6C 2V6 	USA 
	  	  
	Fax: 604.689.1722 	  
	  	Fax: 307.778.0540 

20.     Governing Law; Jurisdiction and
Venue. This Letter Agreement shall be governed by Nevada law. In the event of
disputes, controversies or claims arising from an alleged breach of this Letter
Agreement (or the Joint Venture Agreement when concluded), or disputes arising
out of or related to this Letter Agreement (or the Joint Venture Agreement when
concluded) over substantial factual issues concerning technical mining or
metallurgical matters, the parties agree to be bound by binding arbitration to
be conducted in Reno, Nevada in accordance with the Commercial Arbitration Rules
of the American Arbitration Association. All disputes arising out of or related
to this Letter Agreement (or Joint Venture Agreement when concluded) over issues
concerning technical mining or metallurgical matters shall be resolved by
arbitrators who are experts in the relevant fields. The applicable substantive
law shall be the law of the State of Nevada and discovery shall be conducted
pursuant to the Nevada Rules of Civil Procedure, and the Nevada Rules of
Evidence shall apply.

8

IN WITNESS WHEREOF, the parties hereto have executed
this Letter Agreement as of the date first written above.

 

URANERZ ENERGY CORPORATION, a Nevada corporation

 

By: 
Title:
Date of Execution:

 

 

Bluerock Resources Ltd., a British Columbia corporation

 

By: 
Title:
Date of Execution:

9

ATTACHMENT 1 
to 
Letter Agreement 
Between
Bluerock
Resources Ltd. and Uranerz Energy Corporation

1.      Leases and
Agreements
[Describe by title, parties and date and list patented and
unpatented mining claims (with information described in 2 and 3 below) and other
properties subject thereto]

2.      Owned Patented Mining
Claims
[Describe by claim name and patent and mineral survey numbers]

3.      Owned Unpatented Mining
Claims
[Describe by claim name and county recordation and BLM filing
numbers]

4.      Other Properties
[Provide
legal descriptions]

10

LICENCES

	No . 	License 
No
	Name 
Of licence 	Coordinates 	Aimag* 
and Soum
      
(Province) 	Area
(Hectares) 
	1 	8560X 	Ulaankhush 
uu
      
(Khavtsal) 	109 01 20 
10911 20 
109 11 20 
109
      01 20 	45 34 10 
45 34 10 
45 27 30 
45 27
      30 	
DG
      
(Airag) 
	16091 
	2 	10166X 	Ovor bel 	116 01 00 
116 19 00 
116 19 00 
116
      01 00 	47 20 10 
47 20 10
46 50 30 
46 50
      30 	DO 
Matad	124527 
	3 	10167X 	Tasarkhai 	115 30 00 
116 00 00 
116 00 00 
115
      30 00 	47 00 00 
47 00 00 
46 54 00 
46 54
      00 	DO 
Matad
    
	42325 
	4 	10165X 	Khudgiin us 	109 20 00 
109 29 50 
109 29 50 
109
      20 00 	45 42 40 
45 42 40 
45 40 00 
45 40
      00 	DG 
Airag 	6308
	5 	10168X 	Khartolgoi 	105 05 00 
105 25 00 
105 25 00 
105
      05 00 	45 00 00 
45 00 00 
44 51 30 
44 51
      30 	DU 
Khuld,
      
Delger 
khangai 	41430 
	6 	10169X 	Chuluut
    	105 55 00 
106 08
      00 
106 08 00 
106 05 40
106 05 40 
106 08 00 
106 08 00
      
105 55 00 	45 00 00 
45 00 00
      
44 58 50 
44 58 50
44 56 40 
44 56 40 
44 47 00 
44 47
      00 	DU 
Khuld, 
Olziit 
	39987
      

	7 	10241X 	Chuluut 	100 27 00 
100 30 00 
100 30
      00 
100 36 00 
100 36 00 
100 27 00 	48 17 00 
48 17 00 
48 17 10
      
48 17 10 
48 11 30 
48 11 30 	
AR
      
Ondor 
ulaan, 
Tariat 
	11589

	8 	10315X 	Tolgod 	109 00 00 
109 05 20 
109 05
      20 
109 00 00 	45 54 00 
45 54 00 
45 52 00
      
45 52 00 	DG
      
Dalan 
jargalan 	2558 

* DO- Dornogobi, DU- Dundgobi, AR- Arkhangai, DO- Dornogobi

11

ATTACHMENT 2 
to 
Letter Agreement

Between
Bluerock Resources Ltd. and Uranerz Energy Corporation

Set forth below are provisions to be inserted in the Sections
set forth below of Form 5A:

Items marked * represent the most substantive provisions.

1.      Section 2.2: Name under which
the Assets are to be managed and operated by the Participants. “Mongolia New
Co”

*2.    Section 2.5: Maximum number of
consecutive days that production in commercial quantities can be halted, but
that Products still be deemed to be produced on a "continuous basis" for
purposes of extending the Agreement's term. (one year)

3.      Sections 3.2(d) and (e):
Assessment year through which the Participant that is the owner of the
unpatented claims represents taxes and maintenance fees have been timely paid.
per license annual renewal date

*4.    Section 3.7(a)(v): The aggregate dollar
amount that will be deemed to constitute a "Material Loss" for indemnification
purposes. ($20,000)

*5.    Sections 5.1(a) and (b): Dollar amounts
to be credited to the Participants' respective Equity Accounts as their Initial
Contributions. In the case of the Participant that is not contributing the
Properties, this dollar amount is the earn-in funding requirement.

From the text of Form
5A
“(a)           URANERZ,
as its Initial Contribution, hereby contributes the Assets described in
Exhibit A to the purposes of this Agreement. The amount of two million
four hundred fifty four thousand and five hundred Dollars ($2,454,500) shall be
credited to URANERZ's Equity Account on the Effective Date with respect to
URANERZ's Initial Contribution. If URANERZ elects to spend an additional three
hundred thousand dollars, the amount of three million one hundred twenty two
thousand and five hundred Dollars, ($3,122,500) shall be credited to URANERZ's
Equity Account on the Effective Date with respect to URANERZ's Initial
Contribution.

           (b)     
Subject to BRD's right of withdrawal as set forth in Section 5.2, BRD, as
its Initial Contribution, shall fund Operations under Subsection 5.1(c)
totaling three million Dollars ($3,000,000) on or before the Fourth 

12

(4)      anniversary of the Effective
Date. In determining whether such funding obligation has been met, only costs
that are properly chargeable to the Business Account under Exhibit B
shall be included ("Qualifying Expenses"); provided, however, BRD
shall not be entitled to an Administrative Charge during the time it is making
Qualifying Expenses. Upon completion of such funding, this amount shall be
credited to BRD's Equity Account.

6.      Section 5.2(b): Time period
during which the Participant that is not contributing the Properties may
withdraw if it determines that conditions may exist on the Properties that, in
its judgment, may result in violation of Environmental Laws. ninety (90) or is
extended by mutual agreement

*7.    Section 6.3(a): Participating Interest
percentage at which a Participant shall be deemed to have withdrawn from the
Business and be required to relinquish its Participating Interest. 10% Also,
percentages of Net Proceeds 1.5% and of the Reduced Participant's Equity Account
balance as a ceiling on dollar amount of Net Proceeds to be paid to that
Participant no cap

*8.    Section 6.3(b): Percentage thresholds for
recalculations of adjustments in Participating Interest percentages if money
spent by the Non-Reduced Participant varies from original budgeted amount.

From Form 5A, Section 6.6(b)

(b)           The
relinquishment, withdrawal and entitlements for which this Section provides
shall be effective as of the effective date of the recalculation under
Sections 9.5 or 10.5. However, if the final adjustment provided
under Section 9.6 for any recalculation under Section 9.5 results
in a Recalculated Participating Interest of twelve percent (12%) or more: (i)
the Recalculated Participating Interest shall be deemed, effective retroactively
as of the first day of the Program Period, to have automatically revested; (ii)
the Reduced Participant shall be reinstated as a Participant, with all of the
rights and obligations pertaining thereto; (iii) the right to Net Proceeds under
Subsection 6.3(a) shall terminate; and (iv) the Manager, on behalf of the
Participants, shall make any necessary reimbursements, reallocations of
Products, contributions and other adjustments as provided in Subsection
9.6(d) . Similarly, if such final adjustment under Section 9.6
results in a Recalculated Participating Interest for either Participant of less
than ten percent (10%) for a Program Period as to which the provisional
calculation under Section 9.5 had not resulted in a Participating
Interest of less than ten percent (10%), then such Participant, at its election
within thirty (30) days after notice of the final adjustment, may contribute an
amount resulting in a revised final adjustment and resultant Recalculated
Participating Interest of fifteen percent (15%). If no such election is made,
such Participant shall be deemed to have withdrawn under the terms of
Subsection 6.3(a) as of the beginning of such Program Period, and the
Manager, on behalf of the Participants, shall make any necessary reimbursements,
reallocations of 

13

Products, contributions and other adjustments as provided in
Subsection 9.6(d) , including of any Net Proceeds to which such
Participant may be entitled for such Program Period. 

9.      Section 7.1: Numbers of
members on Management Committee and members representing each party. one (1)
member(s) appointed by URANERZ and one (1) member(s) appointed by BRD, advisors
may attend

*10.  Section 7.2: The Participating Interest
percentage that will determine the decisions of the Management Committee. over
fifty percent (50%)

11.   Section 7.3(a): Location of Management
Committee meetings and number of days of advance notice of same that Manager is
to provide to the Participants. Vancouver or another location as is mutually
agreeable, 14 days

12.   Section 7.3(b): The number of days advance
notice either Participant may call a meeting if a prior meeting did not have a
quorum. 14 days

13.   Section 7.3(c): The number of days advance
notice for putting items on the agenda and number of days for Manager to prepare
and distribute minutes of meetings. 2 and 14 days respectively

14.   Section 8.1: Name of Manager. [BRD, until the
Joint Venture is formed and then the partner who holds greatest percentage
interest in the Joint Venture]

*15. Section 8.2(g): Dollar threshold of Manager's expenditures
that requires prior approval of non-managing Participant. Expenditure that
exceeds 10% of budget

*16. Section 8.2(i): Maximum dollar value of Assets that can be
disposed of by Manager without non-manager's consent. $10,000

17.   Section 8.2(o): Time period after completion of
each Program and Budget in which Manager must submit a detailed final report. 90
days

18.   Section 8.4: Number of months prior notice the
Manager must provide on resignation and number of days in which the other
Participant shall have the right to elect to become the Manager. 2 months, 60
days

19.   Section 8.4(a): The Participating Interest
percentage threshold below which the Manager shall be deemed to have withdrawn.
50% or less

20.   Section 9.3: The number of months prior to the
expiration of a Program and Budget that a new proposed Program and Budget for
the succeeding year 

14

must be prepared by the Manager and submitted to the Management
Committee for review and consideration. 4 months or as mutually agreed

21.   Section 9.4: Time period after submission of
the proposed Program and Budget in which Participant must make its election in
writing to approve, modify or reject the proposed Program and Budget. 60 days or
as mutually agreed

22.   Section 9.6(a): Time period after conclusion of
a Program and Budget in which the Manager must report the amount of money spent
under that Budget to a Participant who had elected not to participate in that
Budget. 60 days

*23. Section 9.6(c): Percentages and time periods for a Reduced
Participant to reinstate its Participating Interest if the Manager expends a
certain amount less than the Adopted Budget. 80% and 60 days

24.   Section 9.7(a): Time period for Manager to
submit a Pre-Feasibility Study Program and Budget to the Management Committee
after the Committee adopts a proposal for same. 90 days

25.   Section 9.8(f): Time period after receipt of a
Pre-Feasibility Study in which Management Committee must convene a meeting for
purposes of reviewing same. 30 days

*26. Section 9.9: Time period after selection of an Approved
Alternative in which Manager must submit a Program and Budget to the Management
Committee for preparation of a Feasibility Study. 90 days or as is mutually
acceptable

27.   Section 9.10(a): Amount of time Manager must
wait after receipt of a Feasibility Study before submitting a Program and Budget
that includes Development to the Management Committee. 90 days

28.   Section 9.10(b): Time period for Manager to
submit a Bid Report to the Management Committee and the percentage limitation on
Development costs over adopted Program and Budget. 120 days and 10%

29.   Section 9.11: Time deadline for Manager's
submission of Program and Budget for Expansion or Modification after its receipt
of a Feasibility Study for same. 60 days

30.   Section 9.12: Percentage limitation on Budget
overruns. 10%

31.   Section 10.2: Number of days working capital to
be maintained by Manager. 60 days

15

32.   Section 10.3: Interest rate to be applied to
delinquent cash call payments. [London interbank offered rate plus 5%]

*33. Sections 10.5(b)(i)(A) and (B): Default percentages for
calculating dilution. [N/A]

*34. Section 10.5(b)(ii): Percentages of Net Proceeds to be
received by the defaulting Participant in the event of its default relating to a
Program and Budget cash call. [N/A]

*35. Section 10.5(c): Number of days a default must run before
a non-defaulting Participant shall have the right to elect to purchase the
defaulting Participant's Participating Interest, and the percentage of fair
market value for which that interest may be purchased. [N/A]

36.   Section 10.6(a): Number of days after the end
of each calendar year in which an audit must be completed. 90 days

37.   Section 12.2: Length of time that must run
before the Agreement is terminated due to deadlock because of the Management
Committee's failure to adopt a Program and Budget. [N/A]

*38. Section 12.6: Number of months in which a withdrawing
Participant must not acquire any properties within the Area of Interest. 1
year

39.   Sections 13.2, 13.3 and 13.4: Time periods for
notice and exercise of option with respect to acquisitions within Area of
Interest. 60 and 30 days

40.   Sections 16.2(g)(ii): Time period within which
a public auction of an encumbered Participating Interest must be held. 60
days

41.   Section 17.1: Governing law. [Nevada]

42.   Section 17.2: Specification of forum? [Nevada-
Reno, Nevada in accordance with the Commercial Arbitration Rules of the American
Arbitration Association.]

43.   Section 17.3: Arbitration? [Nevada- Reno,
Nevada in accordance with the Commercial Arbitration Rules of the American
Arbitration Association.]

44.   Section 19.1: Addresses for notices.

45.   Section 19.7: Time period that must run before
a delay caused by governmental approvals can constitute Force Majeure. 2
months

16

46.   Exhibit B – Accounting Procedures, Section
2.13(a): Percentages for Management Fees during Exploration, Development and
Major Construction and Mining Phases. 10%

47.   Exhibit D – Definitions – "Expansion" or
"Modification": Percentage by which anticipated costs of expansion or
modification exceed original capital costs of Development, in order to be deemed
to be "material". 15%

*48. Exhibit F – Insurance: The minimum levels of different
insurances. As above

49.   Exhibit H – Preemptive Rights: Time periods for
election to purchase and percentage thresholds for the transferring Participants
and transferee's Net Worth. 30 day offer, 9 months

17Filed by Automated Filing Services Inc. (604) 609-0244 - Uranerz Energy Corporation - Exhibit 10.9

Option and Purchase Agreement

	BETWEEN: 	Excalibur Industries 
	  	1800 Lake View Drive 
	  	Post Office Box 3551 
	  	Duluth, Minnesota 55803 
	  	USA 
	  	  
	  	Fax: (218) 724-5609 
	  	  
	  	(hereafter the “Seller”) 
	  	  
	  	  
	AND: 	Uranerz Energy Corporation 
	  	Suite 1410 – 800 West Pender Street 
	  	Vancouver, BC V6C 2V6 
	  	CANADA 
	  	  
	  	Fax: 604-689-1722 
	  	  
	  	(hereafter the “Buyer”) 

WHEREAS the Seller attests, affirms and warrants that it is the
owner of forty-five (45) federal unpatented lode mining claims located in the
Power River Basin of Wyoming, USA, more particularly described in Exhibit “A”
attached to and by this reference incorporated into this Option and Purchase
Agreement (the “Agreement”); and

WHEREAS the Seller further attests and affirms that its
ownership of the aforementioned forty-five mining claims is free and clear of
any liens or other encumbrances; and

WHEREAS these forty-five mining claims are distributed among
six (6) locations also identified in Exhibit “A” by location name (collectively
referred to as the “Properties” or individually, a “Property”); and

WHEREAS the Buyer is desirous of exploiting and extracting the
uranium and other valuable solid mineral contained within the unpatented lode
mining claims identified in Exhibit “A”, and selling the extracted uranium or
other valuable solid mineral in the market place for its own account; and 

WHEREAS it is for the mutual benefit of the Seller and Buyer
(the “Parties”) that this Agreement be executed.

NOW THEREFORE, for and in consideration of the sum of Ten
dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the Seller, and in further
consideration of the terms and conditions hereinafter contained to be faithfully
kept, observed, and performed by the Seller and Buyer, the Parties hereto agree
as follows:

1

	1. 	
      Definitions

	 	 
	1.1 	
      Dollars – All mention of dollars or currency or price in
      this agreement shall be in United States Dollars.

	 	 
	1.2 	
      Extensions - An "Extension" shall be any uranium bearing
      geochemical roll front, cell, or envelope that is clearly identifiable and
      traceable from drill hole cuttings, electric logs, or chemical assay, and
      extends to an adjacent property that is identifiable by the same means and
      methods.

	 	 
	1.3 	
      Effective Date – The date stated on the signature page of
      this Agreement shall be the “Effective Date.”

	 	 
	1.4 	
      Minimum Expenditure – The requirement for Buyer to spend
      $750,000 within three years or less from the Effective Date on field
      activities as further defined in Article 2.2.

	 	 
	1.5 	
      Option Period – That period of time starting with the
      Effective Date and lasting three (3) years or less during which time the
      Buyer must meet the Minimum Expenditure requirement, and as further
      defined in Article 2.2.

	 	 
	2. 	
      Specific Terms and Conditions

	 	 
	2.1 	
      Review of Information

The Seller hereby grants the Buyer a thirty (30) day period
(the “Review Period”) in which to visit the facility in Moab, Utah where the
Seller has its geologic and other technical files placed in storage, and Seller
allows the Buyer’s staff to examine said files and make copies of any
information that pertains to the Properties. The cost of staff time, travel
expenses, copy work, etc. is all at the cost of the Buyer. The thirty day period
starts on December 15, 2005 and ends at 11.59 p.m. on January 15, 2006.

	2.2 	
      Option Period

Seller hereby grants Buyer an Option Period up to three (3)
years in length from the date of signing of this Agreement on condition that the
Buyer makes minimum field expenditures on the Properties of Seven Hundred and
Fifty Thousand Dollars and No Cents ($750,000.00) by the end of the three-year
Option Period. Field expenditures may include the following:

	 	a) 	
      all drilling, logging, coring, and analysis conducted on
      the Properties;

	 	 	 
	 	b) 	
      all surveying and mapping conducted within the area
      containing the Properties;

	 	 	 
	 	c) 	
      all payments to owners of the surface within the area
      containing the Properties;

	 	 	 
	 	d) 	
      any permitting related costs on the Properties such as
      baseline studies, hydrologic testing, prorated environmental staff time,
      etc.;

	 	 	 
	 	e) 	
      travel expenses of staff in connection with their work on
      the Properties;

	 	 	 
	 	f) 	
      prorated cost of any purchased field equipment related to
      Buyer’s Wyoming activities;

2

	 	g) 	
      costs related to commercial development of the Properties
      including feasibility study, project design, construction (wellfields and
      plant), and purchase of commercial mining equipment;

	 	 	 
	 	h) 	
      any government fees for permit and license applications
      and the processing of same related to the Properties;

	 	 	 
	 	i) 	
      the prorated cost of the Buyer’s Casper office expenses
      including rent, insurance, utilities, office supplies and office equipment
      (limited to no more than 50% of these costs);

	 	 	 
	 	j) 	
      project geologist (or prorated cost if not 100%
      assigned); and

	 	 	 
	 	k) 	
      the prorated cost of senior management time (limited to
      no more than 25% of management’s time in any
month).

At any time prior to the Buyer satisfying the $750,000 minimum
field expenditure requirement and by giving sixty (60) days written notice, the
Buyer may terminate its involvement with the Properties and may terminate this
Agreement subject to the fulfillment of the requirements of Article 2.13. The
Buyer, at its sole discretion, may at any time during the Option Period place an
amount of money in an escrow account equal to the difference between $750,000
and dollar amount of field expenditures actually made to that point in time, and
thereby complete all requirements of the Option Period. The money placed in
escrow can subsequently be withdrawn by the Buyer under the provision that the
money withdrawn may only be spent on the development of the Properties.

	2.3 	
      Ownership Transfer

Seller grants to Buyer the exclusive right to acquire the
Properties, subject to Buyer meeting the $750,000 Minimum Expenditure
requirement and paying the $250,000 Advanced Royalty to the Seller, and subject
to the Royalty on production requirement. Upon the Buyer meeting the
requirements of the Option Period, the Seller shall Quitclaim Deed the ownership
of the Properties (45 mining claims) to the Buyer. Once the Buyer obtains
ownership of the Properties, it may, at its sole discretion, exchange any one or
more of the six Properties for other uranium mineral properties owned by a third
party (or parties).

	2.4 	
      Extensions (mineral)

The Terms and Conditions of this Agreement shall also apply to
all Extensions for a straight-line distance of one (1) statute mile from the
external boundary, as of the Effective Date, of any of the six Properties
provided that the Buyer either owns, or at some point in the future owns, the
uranium mineral on the lands covered by any Extension.

	2.5 	
      Advanced Royalty

An advanced royalty in the amount of two-hundred and fifty
thousand dollars and no cents ($250,000.00) (the “Advanced Royalty”) shall be
payable to the Seller by the Buyer upon the execution of this Agreement and
after the Review Period. The Advanced Royalty payment of $250,000 will be
deducted during the first production until the sum of the Advanced Royalty is
exhausted.

	2.6 	
      Royalty

The Buyer will pay the Seller a royalty on uranium yellowcake
(U3O8) production based on the spot selling price of
yellowcake (U3O8)Royalty will be paid on a calendar
quarter basis with 

3

payment made no later than the last day of the month following
the end of the calendar quarter. For example, the royalty payment for the first
calendar quarter of any year will be received by the Seller by no later than
April 30th. The spot price for any calendar quarter, for the purpose
of calculating the royalty payment, will be the average of the spot price
reported by Ux (or other mutually agreeable reporting service) during that
calendar quarter. Calendar quarter yellowcake production quantity will be based
on accepted engineering procedures. Buyer shall keep true and accurate written
records of all of its operations and activities under this Agreement, and during
March of each year the Buyer will determine actual production from the
Properties for the previous calendar year based on yellowcake
(U3O8) quantities received by the conversion facility.
Written accounting documentation of the quantity of yellowcake
(U3O8) accepted by the conversion facility will be
provided to the Seller. The April royalty check will be adjusted for any over or
under royalty payment made during the previous calendar year.

The royalty rate shall be as follows:

If the average spot price of uranium for any calendar quarter
is $45.00 or less the royalty rate shall be six percent (6%), and if the average
spot price of uranium for any calendar quarter is $45.01 or higher the royalty
rate shall be eight percent (8%). Royalty payments are limited to production
from the Properties and their Extensions.

	2.7 	
      Term of the Royalty

The term of the Royalty hereby created shall be perpetual, it
being the intent of the Parties hereto that, to the extent allowed by law, the
Royalty constitutes a vested interest in and a covenant running with the land
and affecting the Properties and all successions thereof whether created
privately or through governmental action. In the event a court of competent
jurisdiction determines that the term of this Agreement violates the Rule
Against Perpetuities, then the term of this Agreement shall automatically be
revised and reformed to coincide with the maximum term permitted by the Rule
Against Perpetuities, and this Agreement shall not be terminated solely as
result of a violation of the Rule Against Perpetuities.

	2.8 	
      Commingling

Uranium, in any form, and at any stage of processing, that
originates from a location other than the Properties may be commingled, mixed,
or blended with the uranium from any of Properties after the quantities have
been first determined by accepted engineering practices. Royalties will be
allocated by the Buyer to the respective originating source(s) and reflected in
royalty settlements. 

	2.9 	
      Information, Data and Reports

The Buyer will provide the Seller with copies of all data
obtained by the Buyer during the Option Period related to the Properties and
their Extensions including e-logs, lithologic logs, geologic/reserve maps &
reports, hydrologic reports, water quality data, environmental data &
reports, and permit applications. Such data will be forwarded by the Buyer to
the Seller during the Option Period on a periodic basis.

	2.10 	
      Maintenance of Mining Claims
  (Properties)

4

The Seller will maintain the Properties (45 mining claims) in
accordance with county, state and federal requirements including timely filings
during the Option Period, and will be responsible for making any and all
required payments including Bureau of Land Management Maintenance Fees. Seller
will provide Buyer with copies of all documents related to the maintenance of
the mining claims at the same time that the documents are submitted to the
government agencies, and the documents with payment shall be submitted to the
Bureau of Land Management Wyoming State Office at least thirty (30) days before
the due date. Seller’s failure to legally maintain the Properties resulting in
the forfeiture of any or all of the 45 mining claims will, at the option of the
Buyer, result in the termination of this Agreement and the refund of the
$250,000 Advanced Royalty payment.

	2.11 	
      Surface Use and Other Agreements

The Buyer shall be responsible for obtaining and maintaining
any required agreements with the surface land owners relative to the use of the
land by the Buyer in connection with its activities on the Properties. The Buyer
shall also be responsible for obtaining any required permits or licenses
required for exploration and development activities such as state DEQ License to
Explore, State Engineer water well permits, etc. The cost of acquiring and
maintaining these agreements and permits will be the responsibility of the
Buyer, and will accrue to the Minimum Expenditure account.

	2.12 	
      Indemnification

Seller shall not be liable to Buyer and Buyer waives all claims
against Seller for any injury to or death of any person or damage to or
destruction of any personal property or equipment or theft of property occurring
on or about the Properties or arising from or relating to the Buyer’s business
conducted on the Properties. The Buyer shall defend, indemnify and hold harmless
the Seller and its members, officers, directors, agents and employees from and
against any and all claims, judgments, damage, demands, losses, expenses, costs
or liability arising in connection with injury to person or property from any
activity, work, or things done, permitted or suffered by the Buyer or Buyer’s
agents, partners, servants, employees, invitees or contractors on or about the
Properties, or from any breach or default by Buyer in the performance of any
obligation on the part of Buyer to be performed under the terms of this
Agreement (all of the foregoing collectively referred to as “General Indemnity
Claims”). The Buyer agrees to defend all General Indemnity Claims on behalf of
Seller.

	2.13 	
      Environment

The Buyer is responsible for the clean-up or reclamation of any
disturbances caused by its activities on the Properties that are in violation of
any county, state or federal laws or regulations. This responsibility extents to
final reclamation and decommission of the Properties at the conclusion of all
mining activities. The Buyer shall promptly reimburse, defend, indemnify and
hold harmless the Seller, its employees, directors, assigns,
successors-in-interest, agents and representatives from any and all claims,
liabilities, obligations, losses, causes of action, demands, governmental
proceedings or directives, fines, penalties, expenses, costs (including but not
limited to reasonable attorney’s fees, consultant’s fees and other expert’s fees
and costs), and damages, relating to contamination, breach of any obligation or
any non-compliance with applicable environmental laws resulting from the Buyer’s
use of the Properties. The Buyer shall not be liable for any disturbances,
property damage, or surface or subsurface contamination that occurred or exists
on the Properties prior to the Effective Date of this Agreement.

5

	2.14 	
      Termination by Seller

During the Option Period, any failure by the Buyer to perform
any of its covenants, liabilities, obligations or responsibilities under this
Agreement shall be a default. The Seller must give the Buyer written notice of a
default. If the default is not remedied within thirty (30) days after receipt of
the notice, provided the default can reasonably be cured within that time, or,
if not, if the Buyer has not within that time commenced action to cure the same
or does not after such commencement diligently prosecute such action to
completion, the Seller may terminate this Agreement by delivering notice to
Buyer of the Seller’s termination of this Agreement.

	2.15 	
      Termination by Buyer

During the Option Period, the Buyer may at any time terminate
this Agreement by giving written thirty (30) days advance notice to Seller. If
the Buyer terminates this Agreement, the Buyer shall perform all obligations
including any required reclamation or decommissioning to the satisfaction the
government agencies having jurisdiction as specified in Article 2.13. Upon the
Buyer’s termination of this Agreement, within ten (10) days after termination,
the Buyer shall execute and deliver to Seller a release and termination of this
Agreement in a form acceptable for recording. The Advanced Royalty payable to
the Seller by the Buyer is not refundable in the case of a Termination covered
by this Article.

	2.16 	
      Abandonment or Surrender

Should Buyer at any time after acquiring ownership of the
Properties desire to surrender or abandon any of the 45 mining claims comprising
the Properties, it shall give written notice to the Seller at least sixty (60)
days prior to the contemplated date of surrender or abandonment of such mining
claim or claims. Unless Seller shall within forty-five (45) days after receipt
of such written notice, notify Buyer of their consent to such surrender or
abandonment, Buyer shall immediately, upon termination of said forty-five (45)
days, assign and transfer to Seller all of Buyer’s interest in and to the mining
claim or claims concerned and all appurtenances thereto, free and clear of all
clouds or encumbrances caused, suffered or created by, through or under Buyer
including completion of all governmental environmental reclamation requirements
as specified in Article 2.13. Thereupon, Buyer shall be relieved from all
obligations thereafter accruing under this Agreement or otherwise with respect
to the claim or claims covered by such assignment.

	3. 	
      General Terms

	 	 
	3.1 	
      Relationship of the Parties

This Agreement is not a partnership. Nothing contained in this
Agreement shall be deemed to constitute one party being a partner of the other
party. It is not the intention of the Parties to create nor shall this Agreement
be construed to create any mining, commercial or other partnership.

	3.2 	
      Assignments

Neither the Seller nor Buyer may assign or transfer this
Agreement or any rights hereunder or in the Properties without the prior written
consent of the other, such consent not to be unreasonably withheld.

6

	3.3 	
      Inspection

The Seller or Seller’s duly authorized representatives shall be
permitted to enter on the Properties and the Buyer’s workings at all reasonable
times during normal business hours for the purpose of inspection, but they shall
enter on the Properties at their own risk and in such a manner which does not
unreasonably hinder, delay or interfere with Buyer’s operations. The Seller
shall have access at all reasonable times during normal business hours to the
Buyer’s yellowcake production records upon at least ten (10) days prior written
notice.

	3.4 	
      Memorandum Agreement

The parties shall execute and deliver a memorandum of this
Agreement suitable for recording. The execution of the memorandum shall not
limit, increase or in any manner affect any of the terms of this Agreement or
any rights, interests or obligations of the Parties. The memorandum of this
Agreement shall not contain the salient particulars of this document. 

	3.5 	
      Force Majeure

The Option Period will be suspended to the extent and for the
period that activities on the Properties by the Buyer are prevented or delayed
for any cause, whether foreseeable or unforeseeable, beyond its reasonable
control, including, without limitation, labor disputes, acts of God, delays in
obtaining any required government approvals, shortage of contractors or
materials, interruption of energy supplies, actions of citizens groups or NGO’s,
including native rights groups. Immediately upon the cessation of Force Majeure
the Buyer will notify the Seller in writing and shall take steps to recommence
or continue activities as soon as reasonably practical.

	3.6 	
      Confidentiality

All matters concerning the execution and contents of this
Agreement, and the Properties shall be treated as and kept confidential by the
Parties and there shall be no public release of any information concerning the
Properties without the prior written consent of the other party, such consent
not to be unreasonably withheld; except as required by applicable securities
laws, the rules of any stock exchange on which a party’s shares are listed or
other applicable laws or regulations. Notwithstanding the foregoing the
Parties are entitled to disclose confidential information to prospective
investors or lenders, who shall be required to keep all such confidential
information confidential.

	3.7 	
      Governing Law and Forum Selection

This Agreement shall be construed and enforced in accordance
with the laws of the State of Wyoming.

	3.8 	
      Dispute Resolution

In the event of disputes, controversies or claims arising from
an alleged breach of this Agreement, or disputes arising out of or related to
this Agreement over substantial factual issues concerning technical mining or
metallurgical matters, the Parties agree to be bound by binding arbitration to
be conducted in Casper, Wyoming in accordance with the Commercial Arbitration
Rules of the American Arbitration Association. All disputes arising out of or
related to

7

this Agreement over issues concerning technical mining or
matters shall be resolved by arbitrators who are experts in the relevant fields.
The applicable substantive law shall be the law of the State of Wyoming and
discover shall be conducted pursuant to the Wyoming Rules of Civil Procedure,
and the Wyoming Rules of Evidence shall apply.

	3.9 	
      Notices

Any notices required or authorized to be given by this
Agreement shall be in writing and shall be sent either by commercial courier,
facsimile, or by certified U.S. mail, addressed to the proper party at the
address stated below or such address as the party shall have designated to the
other parties in accordance with this Section. Such notice shall be effective on
the date of receipt by the addressee party, except that any facsimiles received
after 5:00 p.m. of the addressee’s local time shall be deemed delivered the next
day.

	 	If to Seller: 	Excalibur Industries 
	 	  	1800 Lake View Drive 
	 	  	Post Office Box 3551 
	 	  	Duluth, Minnesota 55803 
	 	  	USA 
	 	  	  
	 	  	Fax: (218) 724-5609 
	 	  	E-mail: mhubert@msn.com 
	 	  	  
	 	  	  
	 	  	  
	 	If to Buyer: 	Uranerz Energy Corporation 
	 	  	Suite 1410 – 800 West Pender Street 
	 	  	Vancouver, BC V6C 2V6 
	 	 	CANADA 
	 	  	  
	 	  	  
	 	  	Fax: 604-689-1722 
	 	  	E-mail: dennis@senategroup.com 
	 	  	  
	 	  	  
	 	With a copy to: 	Glenn Catchpole 
	 	  	Uranerz Energy Corporation 
	 	  	222 Carriage Circle 
	 	  	Cheyenne, WY 82009 
	 	  	USA 
	 	  	  
	 	  	Fax: 307-778-0540 
	 	  	E-mail: gjcwyo@aol.com 

	3.10 	
      Binding Effect of Obligations

This Agreement shall be binding upon and inure to the benefit
of the respective parties and their successors in interest, legal
representatives and/or assigns of the respective parties hereto. These covenants
run with the land.

8

	3.11 	
      Entire Agreement

The parties agree that the entire agreement between them is
written in this Agreement. There are no terms or conditions, express or implied,
other than expressly stated in this Agreement. This Agreement may be amended or
modified only by a written instrument signed by the parties with the same
formality as this Agreement. 

	3.12 	
      Amendments

No amendment, supplement or restatement of any term of this
Agreement is binding unless it is in writing and signed by both Parties.

	3.13 	
      Multiple Counterparts

This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, but all of which shall
constitute the same Agreement.

	3.14 	
      Recovery of Costs

In any action to construe or enforce the provisions of this
Agreement, the prevailing party shall be entitled to recover such party’s
reasonable attorney's fees (including, expressly, costs of services of
paralegals) and all court costs and other expenses incurred in connection to
such construction or enforcement action.

	3.15 	
      Time of the Essence

Time is of the essence in the performance of the Parties’
obligations under this Agreement.

The Parties have executed this Agreement effective the _____day
of December 2005.

	 	 	Excalibur Industries 
	 	 	  
	 	 	“ Joseph P. Hubert” 
	 	By 	 
	 	 	Joseph P. Hubert, President 
	 	 	  
	 	 	  
	 	 	Uranerz Energy Corporation 
	 	 	  
	 	 	“Glenn Catchpole” 
	 	By 	 
	 	 	Glenn Catchpole, President & CEO
  

9

	ACKNOWLEDGEMENT 	  
	  	  
	STATE OF WYOMING 	) 
	  	) 
	COUNTY OF ______________________	) 

On this _______________ day of December A.D. 2005 before me
personally appeared Glenn J. Catchpole to me known to be the person described in
and who execute the foregoing instrument, and acknowledged that he executed the
same as his free act and deed.

My commission expires ____________________

______________________________
NOTARY PUBLIC

 

 

	ACKNOWLEDGEMENT 	  
	  	  
	STATE OF Minnesota 	) 
	  	) 
	COUNTY OF ______________________	) 

On this _______________ day of December A.D. 2005 before me
personally appeared Joseph P. Hubert to me known to be the person described in
and who execute the foregoing instrument, and acknowledged that he executed the
same as his free act and deed.

My commission expires ____________________

___________________________
NOTARY PUBLIC

10

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