Azarga's Investee Company Anatolia Energy Receives Takeover Offer

GREENWOOD VILLAGE, COLORADO--(Marketwired - June 3, 2015) - AZARGA URANIUM CORP. (TSX:AZZ)(OTC PINK:PWURF)(FRANKFURT:P8AA) ("Azarga" or the "Company") notes that one of its investee companies, Anatolia Energy Limited ("Anatolia Energy"), has today announced a proposed takeover by Uranium Resources Inc. ("URI"), which values Azarga's investment at US$3.2 million.

Anatolia Energy is listed on the Australian Stock Exchange under the ticker AEK. Its primary asset is the Temrezli in-situ recovery uranium project in Turkey. With a current interest of 11.8%, Azarga is the largest shareholder.

Uranium Resources Inc. is listed on the NASDAQ under the ticker URRE. It owns a diverse portfolio of uranium mineral holdings in New Mexico and Texas, USA.

Each Anatolia Energy shareholder will be offered one URI share for every 15.2 Anatolia Energy shares. Based on an offer price of A$0.1154 per Anatolia Energy share, the offer values Azarga's 36.4 million Anatolia Energy shares at US$3.2 million. This represents an approximately 39% premium to the market value of the Company's Anatolia Energy shareholding as at 31 March 2015.

Azarga understands that the previously announced Western Uranium Corporation offer for Black Range Minerals Limited ("Black Range"), another investee company in which Azarga is the largest shareholder, remains on foot.

The combined value of Azarga's Anatolia Energy and Black Range shareholdings based on the value implied by their respective takeovers is US$6.0 million, an approximately 73% uplift from the combined market value noted in the Company's Management Discussion and Analysis of 15 May 2015.

Alexander Molyneux, Chairman and CEO of Azarga stated, "based on the two takeovers, the combined value of our Anatolia Energy and Black Range shareholdings is worth around one-third of our current market capitalization, which is a lot considering they're often overshadowed by our controlled uranium projects." He went on to add, "it's pleasing to see Anatolia Energy attract a very well qualified bidder at a valuation well above its current carrying value and well above our average entry price."

Azarga has entered into a support agreement pursuant to the proposed URI takeover of Anatolia Energy whereby it has committed to vote in favor of the proposal in the absence of a superior offer.

About Azarga Uranium Corp.

Azarga Uranium is a mineral development company that owns six uranium projects, deposits and prospects in the USA (South Dakota, Wyoming and Colorado) and Kyrgyzstan together with investment holdings in Anatolia Energy Limited (ASX:AEK - 12% legal ownership) and Black Range Minerals Limited (ASX:BLR - 19% legal ownership). The Dewey Burdock Project in South Dakota is the main initial development priority, which has received its Nuclear Regulatory Commission License and is in the process of completing all other major regulatory permit approvals necessary for operation of the project including those from the Environmental Protection Agency and the South Dakota Department of Natural Resources.

For more information please visit www.azargauranium.com.

Follow us on Twitter at @AzargaUranium.

AZARGA URANIUM CORP.

Alexander Molyneux, CEO

Disclaimer for Forward-Looking Information

Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding the Anatolia Energy takeover offer and the Black Range takeover offer. 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 expectations of management for the Anatolia Energy and Black Range takeover offers and the development of the Dewey Burdock 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, including the Anatolia Energy and Black Range takeover offers. 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 Anatolia Energy and Black Range takeover offers result in Azarga's investment being valued at US$6.0 million (2) that the risk that such statements may prove to be inaccurate and (3) 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.