Azarga Uranium Corp.
TSX : AZZ
OTC PINK : PWURF
FRANKFURT : P8AA

Azarga Uranium Corp.

December 28, 2016 09:02 ET

Azarga Uranium Receives Decision from NRC Commission

GREENWOOD VILLAGE, COLORADO--(Marketwired - Dec. 28, 2016) - AZARGA URANIUM CORP.'S (TSX:AZZ)(FRANKFURT:P8AA)(OTC PINK:PWURF) ("Azarga Uranium" or the "Company") wholly owned subsidiary, Powertech (USA) Inc. ("Powertech"), has received a decision from the Commission of the United States Nuclear Regulatory Commission (the "NRC") with respect to the petitions for review filed by Powertech, the NRC Staff, the Consolidated Intervenors and the Oglala Sioux Tribe related to the 30 April 2015 partial initial decision of the Atomic Safety and Licensing Board (the "ASLB").

The ASLB partial initial decision included seven admissible contentions raised by the Consolidated Intervenors and the Oglala Sioux Tribe (collectively, the "Intervenors") regarding the NRC Final Source and Byproduct Materials License ("NRC License") issued to the Company for the Dewey Burdock Uranium Project. For five contentions, including those related to groundwater usage, groundwater quality, ability to contain fluid migration, mitigation measures, and connected actions, the ASLB ruled in favor of the NRC Staff and the Company. For the remaining two contentions, which relate to identification and protection of historic and cultural resources, the ASLB requested additional consultation between the NRC Staff and the Oglala Sioux Tribe. In their decision, the ASLB also ruled inadmissible two new contentions that were filed by the Intervenors after the evidentiary hearing.

Subsequent to the ASLB partial initial decision on 30 April 2015, the Company and the NRC Staff filed petitions for review of the ASLB decision to the NRC Commission with respect to their ruling that additional consultation efforts were required between the Oglala Sioux Tribe and the NRC Staff regarding the two contentions relating to the identification and protection of historic and cultural resources. The Intervenors filed petitions for review of the ASLB decision to the NRC Commission covering most of the contentions heard by the ASLB. Upon consideration of the information presented, the NRC Commission denied the party's petitions for review of the ASLB decision, with the exception of 1) the NRC Staff's and Powertech's petition for review with respect to the ASLB's direction to NRC Staff regarding the resolution of the outstanding two contentions relating to the identification and protection of historic and cultural resources, in which the NRC Commission ultimately affirmed the ASLB's decision and 2) a petition for review filed by the Oglala Sioux Tribe claiming that the Draft Supplemental Environmental Impact Statement had been issued without the requisite scoping process, in which the NRC Commission affirmed the ASLB's decision and dismissed the contention.

Though the decision of the NRC Commission does not immediately resolve the outstanding two contentions from the ASLB partial initial decision pertaining to the identification and protection of historic and cultural resources, the NRC Staff, in parallel with filing the petitions for review to the NRC Commission, has continued their consultation efforts with the Oglala Sioux Tribe in accordance with the ASLB directive on these contentions and the NRC Commission decision provides additional regulatory guidance so that these contentions may be resolved in a timely manner. Based on publicly available information, the Company understands that the NRC Staff continues to comply with the ASLB's directive to submit monthly status reports on the consultation process. The Company continues to facilitate this process to the fullest extent possible in conjunction with the ongoing efforts of the NRC Staff. As noted above, the decision of the NRC Commission denied all petitions for review filed by the Intervenors, with the exception of one contention that was ultimately dismissed by the NRC Commission. The NRC License for the Dewey Burdock Uranium Project continues to remain in good standing while the Company continues to work with its stakeholders to resolve the outstanding two contentions.

Powertech, the NRC Staff and the Intervenors have the right to appeal the decision of the NRC Commission to the United States Court of Appeals for the District of Columbia or the Ninth Circuit court.

"The Company will continue to support the consultation efforts of the NRC Staff and the Oglala Sioux Tribe to remedy the outstanding contentions in the most efficient manner possible. We are pleased that the Company's NRC License remains in good standing and that the petitions for review of the ASLB decision lodged by the Intervenors were dismissed by the NRC Commission. The NRC Commission's decision continues to support the technical merits of the Dewey Burdock Uranium Project and helps provide additional clarity on the path forward to resolve the outstanding contentions," said Blake Steele, President of the Company.

About Azarga Uranium Corp.

Azarga Uranium 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. The Dewey Burdock Uranium 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 other major regulatory permit approvals necessary for development of the Project, including those from the Environmental Protection Agency.

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 NRC Commission decision providing additional regulatory guidance so that the outstanding two contentions may be resolved in a timely manner, ongoing consultation efforts between the Oglala Sioux Tribe and the NRC Staff will lead to a resolution of the outstanding two contentions, the Company will continue to support the consultation efforts of the Oglala Sioux Tribe and the NRC Staff and the Company's continued efforts to obtain major regulatory permit approvals necessary for development 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 outstanding two contentions are not resolved in a timely manner, (2) the risk that the outstanding two contentions are not resolved, (3) the risk that the Company cannot continue to support the consultation efforts of the Oglala Sioux Tribe and the NRC staff, (4) the risk that such statements may prove to be inaccurate and (5) 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.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

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