Azarga's Investee Company Black Range Minerals Receives Takeover Proposal

GREENWOOD VILLAGE, COLORADO--(Marketwired - Jan 30, 2015) - Azarga Uranium Corp. (TSX:AZZ)(OTC PINK:PWURD)(FRANKFURT:P8AA) ("Azarga" or the "Company") notes that one of its investee companies, Black Range Minerals Limited ("Black Range"), has today received a takeover proposal from Western Uranium Corporation ("Western Uranium").

Black Range is listed on the Australian Stock Exchange under the ticker BLR. Its primary assets are the Hansen/Taylor Ranch uranium project in Colorado and a 50% interest in a uranium ore processing technology venture, Ablation Technologies. With a current interest of 17.3%, Azarga is Black Range's largest shareholder.

Based on the terms in Black Range's press release, the takeover proposal would value Azarga's shareholding in Black Range at approximately US$2.4 million. Azarga also has a loan extended to Black Range in the amount of approximately US$0.5 million (the "Azarga Loan"). As part of the proposed takeover, Western Uranium is providing Black Range with a loan facility, a portion of which will be used on closing to pay back half of the Azarga Loan.

Azarga recognizes the potential benefits of a combination between Black Range and Western Uranium and is broadly supportive of the proposal. As a result, the Company will engage with both Western Uranium and Black Range to understand the terms of the proposal in more detail.

About Azarga Uranium Corp.

Azarga Uranium is a mineral development company that owns six uranium projects, deposits and prospects in the USA (South Dakota, Wyoming and Colorado) and Kyrgyzstan together with investment holdings in Anatolia Energy Ltd. (ASX:AEK - 11%) and Black Range Minerals Limited (ASX:BLR - 17%). The Dewey Burdock Project in South Dakota is the main initial development priority, which has received its final NRC License.

For more information please visit www.azargauranium.com.

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Azarga Uranium Corp.

Richard F. Clement Jr.,

President & CEO

Disclaimer for Forward-Looking Information

Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding the Black Range takeover proposal. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements may include, but are not limited to, statements with respect to the future financial or operating performance of the Company and its mineral projects, the estimation of mineral resources, the timing and amount of estimated future production and capital, operating and exploration expenditures. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect, including the Black Range takeover proposal. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including without limitation: (1) the Black Range takeover proposal results in Azarga's investment being valued at US$2.4 million, (2) any change in the law, regulatory or political environment which would negatively affect the Company's operations or its ability to obtain all necessary environmental and regulatory approvals, licenses and permits, and (3) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's most recent MD&A filed with Canadian security regulators.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.