Azarga's Largest Shareholder Enters Into Debt Settlement Agreement

GREENWOOD VILLAGE, COLORADO--(Marketwired - April 13, 2016) - AZARGA URANIUM CORP. (TSX:AZZ) (OTC PINK:PWURF) (FRANKFURT:P8AA) ("Azarga" or the "Company") has been notified that its largest shareholder, Powerlite Ventures Limited ("Powerlite"), a wholly-owned subsidiary of Blumont Group Ltd. ("Blumont") (SGX:A33), has entered into a settlement agreement with Wintercrest Advisors LLC ("Wintercrest"), a wholly owned subsidiary of Platinum Partners Value Arbitrage Fund L.P. to effect a full and final settlement of a loan facility agreement between Blumont and Wintercrest (the "Debt Restructuring").

The Debt Restructuring contemplates a number of transactions, in addition to, the transfer of Powerlite's 18,053,810 Azarga common shares (approximately 29.6% of the Company's outstanding common shares) to Wintercrest or its nominee. The Debt Restructuring is conditional upon Blumont obtaining various approvals, including; but not limited to, shareholder approvals, regulatory and other approvals, consents, waivers and a legal opinion. Please refer to Blumont's press release titled "USD 23,500,000 Loan Facility From Wintercrest Advisors LLC - Settlement Agreement" for additional details of the Debt Restructuring on Blumont's website at: http://www.blumontgroup.com/newsroom.html.

Platinum Partners is a New York based investment management group with assets under management in excess of US$1 billion. Platinum Partners manages multiple funds in a variety of uncorrelated strategies and sectors seeking to achieve risk-adjusted returns. Platinum Partners is an experienced provider of growth capital and the Company welcomes their potential acquisition of a substantial shareholding.

About Azarga Uranium Corp.

Azarga 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, together with investment holdings in Uranium Resources, Inc. and Western Uranium Corporation. The Dewey Burdock 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 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.

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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 Company's largest shareholder, Powerlite, entering into the Debt Restructuring and the Company's continued efforts to obtain all major regulatory permit approvals necessary for operation 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 Debt Restructuring is not completed (2) the risk that the Company does not obtain all major regulatory permit approvals necessary for operation of the Project (3) the risk that such statements may prove to be inaccurate and (4) 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 that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements 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.

Azarga does not accept responsibility for the adequacy or accuracy of the content of Blumont's Press Release.