Mr. Blake Steele reports

ASLB DECISION MOVES DEWEY BURDOCK CLOSER TO RESOLUTION OF FINAL NRC LICENSE CONTENTIONS

Azarga Uranium Corp. has received notice that the Atomic Safety and Licensing Board (the ASLB) has issued a memorandum and order pertaining to the United States Nuclear Regulatory Commission (the NRC) summary disposition motion to resolve the remaining two contentions from the ASLB's April 30, 2015, partial initial decision for the company's Dewey Burdock in-situ recovery uranium project NRC licence.

With respect to the outstanding contention requiring additional consultation between the NRC staff and the Oglala Sioux Tribe under the National Historic Preservation Act (NHPA), the ASLB granted the motion for summary disposition in favour of the NRC staff and the company. With respect to the outstanding contention pertaining to the identification and protection of historic and cultural resources for the purposes of compliance with the National Environmental Policy Act, the ASLB did not grant the motion for summary disposition; however, the ASLB did provide specific guidance and establish a schedule to address the only remaining contention. As a result, the company expects to have the final contention resolved by the second quarter of 2018. The company's NRC licence for the Dewey Burdock project continues to remain in good standing and the company will fully support the NRC staff in resolving the only remaining contention.

"The ASLB decision moves the company closer to having the final NRC licence contentions resolved for the Dewey Burdock project, while the NRC licence continues to remain in good standing. The decision resolved one outstanding contention in favour of the company and the NRC staff, completing the NHPA process, and provided a clear path towards resolving the only other remaining contention for the NRC licence. The company will continue to work with the NRC staff and other stakeholders to ensure that the only remaining contention is resolved in a timely manner," said Blake Steele, president of the company.

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, which is the company's initial development priority, has received its Nuclear Regulatory Commission licence 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.

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