Azarga Uranium Data Analysis Identifies Uranium Mineralization at Dewey Terrace

GREENWOOD VILLAGE, COLORADO--(Marketwired - Oct. 31, 2017) - AZARGA URANIUM CORP. (TSX:AZZ)(FRANKFURT:P8AA)(OTC PINK:PWURF) ("Azarga Uranium" or the "Company") has identified uranium mineralization at the Company's Dewey Terrace Project through the analysis of historical data owned by the Company (the "Data Set"). The Dewey Terrace Project is located in Wyoming, adjacent to the Company's NRC licensed Dewey Burdock in-situ recovery uranium Project (the "Dewey Burdock Project").

Highlights of the analysis at Dewey Terrace include:

• 91 mineralized drill holes with 129 intercepts equal to or exceeding a 0.2 grade-thickness (GT) cutoff using a .02% grade cutoff with an average eU₃0₈ grade of 0.062% and an average thickness of 7.4 feet
• Uranium mineralization covering seven (7) separate mineralized zones over a trend of approximately 2.5 miles
• Mineralization within the same ore bearing sandstone as the Dewey Burdock Project and conditions that indicate possible in-situ recovery ("ISR") amenability

"We are very pleased to see that our initial analysis indicates uranium resource potential at the Dewey Terrace Project. The Data Set confirms that within the same Inyan Kara sands as the Dewey Burdock Project, uranium mineralization, potentially suitable for ISR, exists. This uranium mineralization indicates possibilities for further discoveries in the vicinity of the Company's Dewey Terrace and Dewey Burdock Projects. We believe that further analysis of the Data Set will allow expansion of our uranium resources and the location of the identified uranium mineralization at the Dewey Terrace Project presents an opportunity for a nearby satellite project, within 10 miles of the Dewey Burdock Project, the Company's initial development priority," said John Mays, Chief Operating Officer.

The Data Set identified 259 mineralized drill holes indicating significant potential for a new resource area at the Dewey Terrace Project. Further, deposition is consistent with sand channel systems categorized within the Dewey Burdock Project. Several drill holes encountered multiple intercepts demonstrating a vertically stacked group of separate mineralized zones similar to those at the Dewey Burdock Project. The objective of the Data Set analysis is to identify uranium mineralization in a cost effective manner in the vicinity of the Company's Dewey Terrace and Dewey Burdock Projects. The Company is continuing its review of the Data Set for further uranium mineralization with the objective of identifying additional uranium resources.

The following table provides a detailed summary of the results for the 91 mineralized drill holes with 129 intercepts that equal or exceed a 0.2 GT cutoff using a .02% grade cutoff:

The Company also identified 93 drill holes with 112 intercepts that had GT values ranging from 0.1 to 0.2 GT based on review of the Data Set. These intercepts had an average thickness of 4.1 feet with an average grade of 0.041% eU3O8. The remaining 187 drill holes reviewed to date range from barren to an average GT of 0.1.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 ("NI 43-101") and was reviewed by John Mays, P.E., Chief Operating Officer for the Company and a Qualified Person under NI 43-101.

The Data Set includes historical drilling information that has been reviewed by the Company's geological team, as well as 20 exploratory drill holes completed by the Company in a previous exploration campaign. The exploratory drill holes completed by the Company confirm the presence of uranium mineralization at the Dewey Terrace Project. The Company's review of the records and information within the Data Set reasonably substantiate the validity of this information; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors not to place undue weight on these results.

About Azarga Uranium Corp.

Azarga Uranium is an integrated uranium exploration and 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. The Dewey Burdock in-situ recovery uranium project in South Dakota (the "Dewey Burdock Project"), which is the Company's initial development priority, has received its Nuclear Regulatory Commission License and draft Class III and Class V Underground Injection Control ("UIC") permits from the Environmental Protection Agency ("EPA") and the Company is in the process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA.

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 efforts to obtain all major regulatory permit approvals necessary for the construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA, the Company's belief that mineralization conditions at the Dewey Terrace Project indicate possible ISR amenability, that the Company's initial analysis indicates uranium resource potential at the Dewey Terrace Project, that uranium mineralization identified in the Data Set indicates possibilities for further discoveries in the vicinity of the Company's Dewey Terrace and Dewey Burdock Projects, the Company's belief that further analysis of the Data Set will allow expansion of our uranium resources and the location of the identified uranium mineralization at the Dewey Terrace Project presents an opportunity for a nearby satellite project, that the identified mineralization from the Data Set indicates significant potential for a new resource area at the Dewey Terrace Project, that the objective of the Data Set analysis is to identify uranium mineralization in a cost effective manner in the vicinity of the Company's Dewey Terrace and Dewey Burdock Projects and that the Company's is continuing its review of the Data Set for further uranium mineralization with the objective of identifying additional uranium resources. 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 does not obtain all major regulatory permit approvals necessary for construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA, (2) the risk that mineralization conditions at the Dewey Terrace Project are not amenable to ISR, (3) the risk that the Company's initial analysis indicating uranium resource potential at the Dewey Terrace Project is not correct, (4) the risk that uranium mineralization identified in the Data Set does not indicate possibilities for further discoveries in the vicinity of the Company's Dewey Terrace and Dewey Burdock Projects, (5) the risk that further analysis of the Data Set does not allow expansion of the Company's uranium resources and the location of the identified uranium mineralization at the Dewey Terrace Project does not present an opportunity for a nearby satellite project, (6) the risk that the identified mineralization from the Data Set does not indicate significant potential for a new resource area at the Dewey Terrace Project, (7) the risk that the Data Set analysis does not identify uranium mineralization in a cost effective manner in the vicinity of the Company's Dewey Terrace and Dewey Burdock Projects, (8) the risk that the Company's review of the Data Set does not identify further uranium mineralization and additional uranium resources are not identified, (9) the risk that such statements may prove to be inaccurate and (10) 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.

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