Mr. Dorian Nicol reports

AZARGA METALS SIGNS MOU FOR ADDITIONAL COPPER-SILVER GROWTH OPPORTUNITIES IN CHARA-ALDAN AREA, RUSSIA

Azarga Metals Corp. has signed an exclusive memorandum of understanding (MOU) with the main vendors of the Unkur copper-silver project for co-operation with respect to additional corporate development growth opportunities pertaining to copper and silver rich sediment-hosted projects in the broader Chara-Aldan area of eastern Russia where the company's existing Unkur copper-silver project is located.

Commenting on the MOU, Dorian L. (Dusty) Nicol, the company's president and chief executive officer, said, "The USGS estimates there could be in excess of 20 million tonnes of undiscovered copper in the region and our quick success at Unkur confirms the area's overall prospectivity."

He then went on to say, "The MOU provides Azarga Metals with exclusive access to the database of probably the most active early stage prospecting group within the Chara-Aldan area."

About the MOU

The MOU has been signed between Azarga Metals and certain Azarga Resources partners, OC Management Group Ltd. and Insignia Partners Ltd., with each acting in its individual capacities (the Chara-Aldan Consortium). Together, the Chara-Aldan Consortium was the main vendor of the Unkur copper-silver project, which has become the company's main asset and which the company currently proposes to consolidate the remaining 40 per cent not currently owned by it. Furthermore, members of the Chara-Aldan Consortium all remain significant shareholders of the company.

Since 2012, members of the Chara-Aldan Consortium have been gathering data (including numerous field visits), exchanging information and undertaking reviews of various existing and potential copper and silver rich sediment-hosted projects in the broader region covering the areas of Chara and Aldan, mainly in the Zabaikalsky province of eastern Russia.

Key terms of the MOU include:

• Exclusive co-operation -- The parties will work together exclusively with respect to sediment-hosted copper and silver projects in the Chara-Aldan area.
• Data and knowledge sharing -- The Chara-Aldan Consortium will make its databases (and non-database knowledge) available to the company.
• Co-operative working -- Individual members of the Chara-Aldan Consortium will provide assistance to Azarga Metals to assist its own internal evaluation of data and opportunities. The Chara-Aldan Consortium will not be further compensated for access to its database or for providing assistance to Azarga Metals.
• Azarga Metals discretion -- Azarga Metals will consider whether to pursue projects at its own discretion.
• Term -- Initial renewable term of 24 months.

The Chara-Aldan area

The Chara-Aldan area is mostly situated in the Zabaikalsky province in eastern Russia and is highly prospective for stratabound sediment-hosted copper and silver mineralization. The approximately 320,000-square-kilometre area is situated to the north of China east of Mongolia, where Russia and China share a direct land border. In broad terms the Chara-Aldan area is similar in size to the Katanga basin straddling Democratic Republic of the Congo and Zambia, which is known to host similar styles of copper mineralization.

Geological prospectivity

Baikal Mining Company (BMC), a Russian corporation, reports that its Udokan copper project, located in the Chara-Aldan region, is the world's third-largest undeveloped copper deposit contains a JORC resource of 26.7 million tonnes of contained copper metal.

Azarga Metals' Unkur copper-silver project is also within the Chara-Aldan region, approximately 30 kilometres away from Udokan. Its maiden inferred resource was estimated in 2017 to contain 220,000 tonnes of copper within 42 million tonnes at 0.52 per cent copper and 52 million ounces of silver within 38 grams per tonne silver (see technical report for the Unkur copper-silver deposit, Kodar-Udokan area, Russian Federation, dated March 31, 2017, available on the company's profile at SEDAR).

According to the U.S. Geological Survey (USGS), there are likely six known permissive tracts in the Chara-Aldan area likely to host undiscovered sediment-hosted copper deposits. Furthermore, the USGS estimates the as yet undiscovered deposits in the area to contain in excess of 20 million tonnes of copper metal, with such estimate based on statistical analysis of existing deposits in the area and assessment by a panel of independent geologists (1).

Infrastructure

The Chara-Aldan region has world-class infrastructure. The Baikal-Amur Mainline (BAM) railway cuts through the region east to west and connects to Russia's far eastern ports. The BAM railway also connects with the Trans-Siberian railway for connection to China. Parallel to the railways are all-weather roads and both Chara and Aldan are connected with Russia's federal highway system.

The towns of Chara and Aldan are both connected to the Russian federal electricity grid with 220-kilovolt substations and overhead power lines cross a number of the known permissive tracts for mineralization in the region. Aldan itself hosts Russia's largest hydroelectric power plant complex (3,300 megawatts).

With BMC's Udokan project in the predevelopment phase, significant construction works took place in Chara in 2017 including an airport upgrade, and completion of a new hotel and housing facilities. It is anticipated the development of Udokan will involve the influx of in excess of 2,000 people. BMC reports that full construction of Udokan is expected to commence in 2019.

About Azarga Metals Corp.

Azarga Metals is a mineral exploration and development company that currently owns 60 per cent of the Unkur copper-silver project in the Zabaikalsky province in eastern Russia. The company has exercised its option to acquire the remaining 40 per cent of the project subject to the company's disinterested shareholder approval on Feb. 14, 2018, and the TSX Venture Exchange.

(1) M.L. Zientek, V.S. Chechetkin, H.L. Parks, S.E. Box, D.A. Briggs, P.M. Cossette, A. Dolgopolova, T.S. Hayes, R. Seltmann, B. Syusyura, C.D. Taylor and N.E. Wintzer, 2014, Assessment of undiscovered sandstone copper deposits of the Kodar-Udokan Area, Russia: U.S. Geological Survey Scientific Investigations Report 2010-5090-M, 129 p. and spatial data.

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