Azarga Enters Into Agreements to Issue Shares at Significant Premium to Settle Interest on Loan

GREENWOOD VILLAGE, COLORADO--(Marketwired - May 19, 2016) - Azarga Uranium Corp. (TSX:AZZ)(OTC PINK:PWURF)(FRANKFURT:P8AA) ("Azarga" or the "Company") has entered into shares for debt settlement agreements totaling US$532,800 to settle interest on the Company's US$1.8 million convertible loan agreement (the "Loan Agreement") with certain shareholders. The price of the share issuance will be calculated using the five-day volume weighted average price of the Company's common shares (the "Shares") for the five-day period immediately preceding the share issuance, subject to a floor of C$0.60 per Share. Assuming the Shares are issued at the floor price of C$0.60 per Share, the price of the share issuance represents a 67% premium to Azarga's May 18, 2016 closing share price.

The Company continues to execute initiatives to shore up its working capital position and conserve cash. Blake Steele, President of Azarga, said, "The continued support from the Company's shareholders reaffirms the Company's strategy of conserving financial resources while focusing on advancing the Dewey Burdock Project." He further noted that, "The Company continues to work with the United States Environmental Protection Agency and Nuclear Regulatory Commission to advance the permitting process at Dewey Burdock."

The shares for debt settlement agreements could result in the issuance of up to 1,140,626 Shares. The issuance of the Shares is subject to approval from the Toronto Stock Exchange. Two of the three shareholders who executed the settlement agreements are insiders of the Company, while the other shareholder has an arm's length relationship with the Company.

About Azarga Uranium Corp.

Azarga is a mineral development company that controls six uranium projects, deposits and prospects in the United States of America (South Dakota, Wyoming and Colorado) and the Kyrgyz Republic, together with investment holdings in Uranium Resources Inc. and Western Uranium Corp.. The Dewey Burdock Project in South Dakota (the "Project"), which is the Company's initial development priority, has received its Nuclear Regulatory Commission License and the Company is in the process of completing all other major regulatory permit approvals necessary for operation of the Project, including those from the Environmental Protection Agency and the South Dakota Department of Natural Resources.

For more information please visit www.azargauranium.com.

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Disclaimer for Forward-Looking Information

Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding its disclosure and amendments thereto. 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 Company's continued execution of initiatives to shore up its working capital position and conserve cash, the continued support from the Company's shareholders reaffirms the Company's strategy of conserving financial resources while focusing on advancing the Project, the Company continues to work with the United States Environmental Protection Agency and Nuclear Regulatory Commission to advance the permitting process at the Project, the shares for debt settlement agreements could result in the issuance of up to 1,140,626 Shares and the Company's efforts to obtain all major regulatory permit approvals necessary for operation of the Project.
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. 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 risk that the Company is unable to execute initiatives to shore up its working capital position and conserve cash (2) the risk that shareholders fail to support the Company's strategy (3) the risk that the Company is unable to work with the United States Environmental Protection Agency and Nuclear Regulatory Commission to advance the permitting process at the Project (4) the risk that the Company does not receive approval from the Toronto Stock Exchange to issue the Shares to settle the interest on the Loan Agreement (5) the risk that the Company does not obtain all major regulatory permit approvals necessary for operation of the Project (6) the risk that such statements may prove to be inaccurate and (7) 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 that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements 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.

Contact

Azarga Uranium Corp.
John Mays
Chief Operating Officer
+1 303 790-7528
Azarga Uranium Corp.
Mark Hollenbeck
Dewey Burdock Project Manager
+1 605 685-3376
info@azargauranium.com
www.azargauranium.com