Mr. Gordon Tainton reports

AZARGA METALS COMPLETES BALANCE SHEET RE-STRUCTURE

Azarga Metals Corp. has settled the final $560,857 shareholder loan by the issuance of 3,739,049 common shares at a deemed price of 15 cents. The shares issued are subject to a four-month-and-one-day hold period from the date of issuance.

This completes the restructuring of the company's balance sheet, as was previously announced (see news releases dated June 5, 2023, June 27, 2023, and July 18, 2023). As a result, the board of directors believes that the company will have greater flexibility in developing plans for its 100-per-cent-owned Marg project, a high-grade copper-rich volcanogenic massive sulphide (VMS) deposit located in the Keno Hill silver district in Yukon.

On May 23, 2023, the company announced the results of its induced polarization (IP) survey, completed by Abitibi Geophysics. The results of the IP work continue to suggest that significant exploration potential remains on the property.

Mineralization on the Marg project remains open at depth to the east and along strike to the west, and there is evident potential downdip for further high-grade mineralization, possibly in another synclinal fold hinge. In addition to this, further opportunities exist to expand the scale of the Marg project:

• VTEM (versatile time domain electromagnetic) plus or minus geochemical data and geologic mapping have not yet been fully incorporated into the exploration model, presenting opportunities for new exploration ideas and potential discoveries.
• Historical work suggests the potential for another Marg-style deposit at the Jane zone, which is located approximately six kilometres to the southwest along trend:
  • The Jane zone soil geochemical anomaly is similar in scale and magnitude to that associated with the Marg deposit.
  • Intermittent VTEM anomalies can be traced along the trend between the Jane zone and Marg deposit area.

Gordon Tainton, president and chief executive officer of Azarga Metals, stated: "The company is very excited by the prospectivity of the Marg project. With the balance sheet restructuring completed, we can now focus on continuing to move our business forward, specifically on the Marg project, and work to create value for our shareholders. Based on the exploration work to date, we believe the size of the mineralized zone at the Marg project has the potential to more than double."

The next steps for the Marg project include:

• Further review of the historical geophysical and geochemical database (including reinterpretation of underutilized VTEM data);
• Extension of the IP survey at the Marg project and potentially the Jane zone with a deeper penetrating array during the summer/fall season;
• Drill test the Marg target extensions and the highly prospective Jane zone geophysical target.

The most recent National Instrument 43-101 mineral resource estimate for the Marg project (see the attached table) was completed by Mining Plus Canada Consulting Ltd. in 2016 and was incorporated into a preliminary economic assessment (PEA) for the project (note that the PEA is titled, "Revere Development Corp., Marg Project Preliminary Economic Assessment, Technical Report, Yukon, Canada," and is dated Aug. 31, 2016).

The mineral resource estimate in the 2016 PEA was prepared in accordance with NI 43-101 standards and is considered by Azarga Metals management to be reliable. However, the resource has not been verified by Azarga Metals and is considered historical in nature. A qualified person representing Azarga Metals has not done sufficient work to classify the historical estimate as a current mineral resource and Azarga Metals is not treating it as a current mineral resource.

Qualified person

The technical content of this news release has been reviewed and approved by Charles J. Greig, PGeo, a consultant to Azarga Metals and a qualified person as defined by NI 43-101.

We seek Safe Harbor.