The company's primary focus over the past year has been on construction of the processing facility and installation of the monitor, injection and recovery wells for in-situ recovery, or ISR, operations at its Nichols Ranch ISR Uranium Project, located in the Powder River Basin of Wyoming, U.S.A. Uranerz has completed drilling the first of two deep disposal wells which are required to be operational prior to commencement of uranium recovery operations. The first well has been drilled to a depth of 8,860 feet and the casing and cementing operations have been completed. The drilling rig will now be moved to the second deep disposal well site to start drilling operations there. A completion rig will begin the hole completion work on the first deep disposal well, followed by construction of supporting infrastructure. It is expected to take approximately five months to complete both wells, including the installation of necessary infrastructure and related testing. The deep disposal wells will be used to remove non-hazardous byproduct solutions from the ISR process. The company expects to start operations at the Nichols Ranch facility and commence uranium production later this year or early 2014, after the two deep disposal wells are completed.