~UranerzENERGY CORPORATION

October 16, 2013

Attn: Document Control DeskDirectorOffice of Federal and State Materials andEnvironmental Management ProgramsU.S. Nuclear Regulatory CommissionWashington, DC 20555-0001

Attn: Document Control DeskU.S. Nuclear Regulatory CommissionDeputy DirectorDecommissioning and Uranium Recovery Licensing DirectorateDivision of Waste Management and Environmental ProtectionOffice of Federal and State Materials and Environmental Management ProtectionMail Stop T-8F511545 Rockville PikeTwo White Flint NorthRockville, MD 20852-2738

Re: Uranerz Energy Corporation, Nichols Ranch Project, Source Materials License SUA-1597, DocketNo. 40-9067, License Condition 12.4

Dear Director and Deputy Director,

With the issuance of License Number SUA-1597 (Docket No. 040-09067) to Uranerz EnergyCorporation (Uranerz) by the Nuclear Regulatory Commission (NRC), the NRC has requestedthrough License Condition 12.4 that Uranerz submit an evaluation of any new ground waterwells within the license area and within 2 kilometers of any proposed production area since theapplication was submitted to the NRC.

A new ground water well was identified south of the Nichols Ranch ISR licensed area. SamsonResources installed the new well south of the Nichols Ranch Unit to provide drilling water fortheir deep oil/gas wells. Enclosed is information requested in License Condition 12.4 includingan evaluation of impacts.

If you have any questions regarding this matter, please contact me at 307.-265-8900 or by emailat mthomaskuranerz.com.

Page 2 of 4

Sincerely,

Mike ThomasVice President Regulatory AffairsUranerz Energy Corporation

MT/dk

cc: Ron Linton, NRC Project Manager (via email)Linda Gersey, NRC Region IV, (via email)

USA OPERATIONSP.O. Box 508501701 East E StreetCasper WY 82605-0850

T: 307 265 8900F: 307 265 8904

CANADA OPERATIONSSuite 1410 T: 604 689 1659800 West Pender Street F: 604 689 1722Vancouver BC V6C 2V6

NYSE Amex Exchange: URZToronto Stock Exchange: URZFrankfurt Stock Exchange: U9Ewww.uranerz.com

Page 3 of 4

( UranerzENERGY CORPORATION

New Ground Water Well EvaluationDry Fork Samson #1

General

Samson Resources drilled and installed a groundwater well outside of the Nichols Ranch ISRProject licensed area, July 18, 2013. The well, identified as Dry Fork Samson #1, is locatedsouth of the Nichols Ranch Unit (Figure 1).

The specifics of the well, as required by License Condition 12.4, are provided in the table below.The water well is 1,260 feet deep and was completed with 10 perforated intervals. The uppermost interval is screened from 684-692 feet, and the lower most interval is screened from 1,173-1,233 feet Per Samson Resources, the well produced 15 gallons per minute (gpm) initially;however, the flow rate has decreased substantially.

Hydologic Setting

The Nichols Ranch Unit is located in the geologic outcrop of the Wasatch Formation. Thestratigraphy of the Wasatch at the site consists of alternating layers of sand and shale. Themineable ore exists in the A Sand at the Nichols Ranch Unit. The A Sand is separated byadjacent aquitards (Uranerz License Application, Appendix D6 Section D6.2.1) which preventfluid migration between upper and lower aquifers.

The hydrologic setting of the new ground water well is similar in nature. The Dry Fork Samson#1 ground water well upper most screen interval is 684-942 feet which is separated by a 45 feetbarrier from the A Sand ore zone. The barrier consists primarily of shales and sandy shalescreating an aquitard between the Nichols Ranch Unit A Sand ore zone and the Dry ForkSamson #1 well perforated intervals.

Ground Water Impacts

Given the hydrologic setting, the potential impact to ground water is minimal. The well producesrather poorly and may be abandoned in the future.

Ground Water Monitoring

A Wyoming Department of Environmental Quality - Land Quality Division Guideline 8 wateranalysis suite was collected on July 29, 2013. The laboratory report, dated August 26, 2013, isattached. Quarterly water quality samples will be collected over the next three quarter periods ifthe well remains viable and is accessible.

USA OPERATIONS CANADA OPERATIONS NYSE Amex Exchange: URZP.O. Box 50850 T: 307 265 8900 Suite 1410 T: 604 689 1659 Toronto Stock Exchange: URZ1701 East E Street F: 307 265 8904 800 West Pander Street F: 604 689 1722 Frankfurt Stock Exchange: U9ECasper WY 82605-0850 Vancouver BC V6C 2V6 www.uranerz.com

Page 4 of 4

Well Casing Estimated

Installation Depth Diameter Screen PumpingWell Name Date Location (ft.) (In.) Interval (ft) Rate (gpm)

684-692,694-698,775-825,825-835,

Dry Fork Samson #1 7/12/2013 SENW Section 29 43N76W 1260 7 890-900, 15986-1004,1034-1052,1058-1070,1123-1153,1173-1233

USA OPERATIONSP.O. Box 508501701 East E StreetCasper WY 82605-0850

T: 307 265 8900F: 307 265 8904

CANADA OPERATIONSSuite 1410 T: 604 689 1659800 West Pender Street F: 604 689 1722Vancouver BC V6C 2V6

NYSE Amex Exchange: URZToronto Stock Exchange: URZFrankfurt Stock Exchange: U9Ewww.uranerz.com

I ENERGYJ Fl-h U~a~U-354U* c0squ^011111U43I115

Client:Project:Lab ID:Client Sample ID

LABORATORY ANALYTICAL REPORTPrepared by Casper, WY Branch

Uranerz Energy CorporationNichols Ranch ISRC13071073-001Dry Fork Samson #1

Report Date:Collection Date:

DateRecelved:

08/26/1307/29/13 10:4007/30/13

Matrix: Aqueous

MCL/Analyses Result Units Qualifiers RL QCL Method Analysis Date / By

MAJOR IONSAlkalinity, Total as CaCO3Carbonate as C03Bicarbonate as HCO3CalciumChlorideFluorideMagnesiumNitrogen, Ammonia as NNitrogen, Nitrate+Nitrite as NPotassiumSilicaSodiumSulfate

36910

4319

120.8

20.32

ND5

8.815619

mg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/LmgILmg/L

555

110.1

0.050.11

0.21

D 2

5H 0.01

100.050.080.040.1

PHYSICAL PROPERTIESConductivity @ 25 CpHSolids, Total Dissolved TDS @ 180 CCalcium, SARMagnesium, SARSodium, SARSodium Adsorption Ratio (SAR)

METALS - DISSOLVEDAluminumArsenicBariumBoronCadmiumChromiumCopperIronLeadManganeseMercuryMolybdenumNickelSeleniumUraniumVanadiumZinc

7348.52458

0.450.186.8012.2

NDND0.1NDNDND

0.030.04

0.0030.05NDNDNDNDNDNDND

umhos/cmS.U.mg/Lmeq/Lmeq/Lmeq/Lunitless

A2320 BA2320 BA2320 BE200.7E300.0A4500-F CE200.7A4500-NH3 GE353.2E200.7E200.7E200.7E300.0

A2510 BA4500-H BA2540 CE200.7E200.7E200.7USDA20B

E200.7E200.8E200.7E200.7E200.7E200.7E200.7E200.7E200.8E200.7E200.8E200.7E200.7E200.8E200.8E200.7E200.7

07/30/13 16:27 / jba07/30/13 16:27 / jba07/30/13 16:27 / jba08/13/13 21:00 / sf07/31/13 16:15/wc08/01/13 13:05 / jba08/13/13 21:00 / sf08/02/13 15:40 /Ir07/31/13 12:38 /Ir08/13/13 21:00 / sf08/13/13 21:00 / sf08/13/13 21:00 /sf07/31/13 16:15 /wc

07/30/13 12:40 / tmm07/30/13 12:40 / tmm07/30/13 15:55 / alp08/13/13 21:00 / sf08/13/13 21:00 / sf08/13/13 21:00 / sf08/13/13 21:00 / kbh

08/13/13 21:00 / sf08/15/13 20:22 / clm08/13/13 21:00 / sf08/13/13 21:00 / sf08/13/13 21:00 / sf08/1 3/13 21:00 / sf08/13/13 21:00 / sf08/13/13 21:00 / sf08/15/13 20:22 / clm08/13/13 21:00 / sf08/15/13 20:22 / cdm08/13/13 21:00 / sf08/13/13 21:00 / sf08/15/13 20:22 / clm08/15/13 20:22 / clm08/13/13 21:00 / sf08/13/13 21:00 / sf

mg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/L

0.10.001

0.10.1

0.0050.050.010.03

0.0010.01

0.0010.1

0.050.001

0.00030.1

0.01

ReportDefinitions:

RL - Analyte reporting limit.

QCL - Quality control limit.D - RL increased due to sample matrix.

MCL - Maximum contaminant level.ND - Not detected at the reporting limit.

H - Analysis performed past recommended holding time.

Page 2 of 21

ENERGY I-N'I m-611111111 aw lw

2-Sill WiaptST-U 'Cap.w vN-23S-U15I "lCRksollSS-SI-1U *'C06plswthe,1XN -Uls4

LABORATORY ANALYTICAL REPORTPrepared by Casper, WY Branch

Client:Project:Lab ID:Client Sample ID

Uranerz Energy CorporationNichols Ranch ISR

C13071073-001Dry Fork Samson #1

Report Date:Collection Date:

DateReceived:Matrix:

08/26/1307/29/13 10:4007/30/13Aqueous

MCIJAnalyses Result Units Qualifiers RL QOCL Method Analysis Date / By

METALS - TOTALIronManganese

3.44 mg/L0.09 mg/L

0.030.01

RADIONUCLIDES - TOTALGross AlphaGross Alpha precision (+)Gross Alpha MDCGross BetaGross Beta precision (+)Gross Beta MDCRadium 226Radium 226 precision (+)Radium 226 MDCRadium 228Radium 228 precision (+)Radium 228 MDC

DATA QUALITYA/C Balance (± 5)AnionsCationsSolids, Total Dissolved CalculatedTDS Balance (0.80 - 1.20)

1.81.52.55.71.72.7

0.360.180.221.31.32.1

-3.728.177.584401.05

pCVLpCVLpCVL-pCVI/pCVLpCVI/pCVLPCi/LpCVLpCi/LPCV/LpCVL

meq/Lmeq/Lmg/L

U

E200.7E200.7

E900.0E900.0E900.0E900.0E900.0E900.0E903.0

E903.0E903.0RA-05RA-05RA-05

Al 030 EA1030 EA1030 EA1030 EA1030 E

08/13/13 20:09 / sf08/13/13 20:09 / sf

08/09/13 17:39 / Ibb08/09/13 17:39 / Ibb08/09/13 17:39 / Ibb08/09/13 17:39 / Ibb08/09/13 17:39 / Ibb08/09/13 17:39 / lbb08/19/13 16:59 / Imc08/19/13 16:59 / Imc08/19/13 16:59 / Imc08/14/13 15:54 / plJ08/14/13 15:54 / plJ08/14/13 15:54 / plJ

08/14/13 10:45 / kbh08/14/13 10:45 / kbh08/14/13 10:45 / kbh08/14/13 10:45 / kbh08/14/13 10:45 / kbh

U

Report RL - Analyte reporling limit.Report RL - Analyte reporting limit.Definitions: QCL - Quality control limit.

MDC - Minimum detectable concentration

MCL - Maximum contaminant level.ND - Not detected at the reporting limit.

U - Not detected at minimum detectable concentration

Page 3 of 21