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AZR.V ·

Azarga Metals Completes Successful Ground Magnetic Survey at Unkur

Exploration Programs

AZARGA METALS CORP.

UNIT 1 – 15782 MARINE DRIVE, WHITE ROCK, B.C. V4B 1E6, CANADA

www.azargametals.com

FOR IMMEDIATE RELEASE

18 JANUARY 2017 TSX-V: AZR

AZARGA METALS COMPLETES SUCCESSFUL

GROUND MAGNETIC SURVEY AT UNKUR

AZARGA METALS CORP. (" Azarga Metals " or the “ Company”) (TSX-V:AZR)

announces it has completed a ground magnetic survey at its Unkur Copper-Silver

Project in the Zabaikalsky administrative r egion in eastern Russia, with successful

results.

The ground magnetic survey wa s a key part of the Company ’s first phase exploration

program at Unkur. Undertake n in parallel with the dril ling and trenching works, it

comprised approximately 130 line kilometers of detailed ground magnetics. While the

data is still being interpreted and correla ted with geology and drill results, the

geophysical data confirms that the silver-copper mineralization at Unkur has a strong

magnetic signature and that gr ound magnetics can be a useful targeting tool on the

project. Significantly, the ground magnetic survey data has:

 been useful in identifying ch anges in direction of the mineralized horizon, which

the Company believes are associated with increased thickness and grade; and

 identified targets for additional mineralization to the north of the first phase drilling

area. The magnetic signatures of these targets remain open to the northeast and

future surveys will aim to extend them.

Drilling results from Azarga Metals’ first phase exploration program at Unkur intersected

significant copper-silver mineralization over a strike length of approximately three

kilometers and the mineralized area remains in open in all directions as well as down

dip. The newly acquired ground magnetic survey data will be used to plan drilling in the

second phase exploration program with th e aim to expand the mineralized area and

target zones which are indicated to be thicker and higher grade.

“We are very excited with the efficacy of ground magnetics at Unkur as this provides a

fast and inexpensive tool to target drilling to expand the area of mineralization”, said

Dorian L. (Dusty) Nicol the Company’s Presi dent and CEO. “I’m particularly excited by

the ability of ground magnetics to identify changes in dire ction of the mineralized

horizon and the possibility this opens to ta rget thicker zones of high grade associated

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with attendant dilation zones because such zones are where our best drilling results so

far have been attained.”

See below image of ground magnetic survey results with some selected drill-holes

overlaid and highlighting on the map future targets from the mag data.

SHARES FOR SERVICES

On January 16, 2017, the Company issued a total of 107,934 common shares for

$22,666.66 services rendered to the Company by the non-executive directors for the

period October 1, 2016 to Decem ber 31, 2016. The shares were issued at the closing

price on December 31, 2016 of $0.21 per share and are subject to a four-month hold

period expiring on May 17, 2017.

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UNKUR COPPER-SILVER PROJECT

Azarga Metals owns 60% of the Unkur Coppe r-Silver Project along with the right to

acquire the remaining 40% in the future.

Sediment-hosted copper and s ilver mineralization has been identified across the 5,390

hectare project license area, in outcrops, tr enches and by historical diamond drilling.

The prior exploration outlined a large area of high-grade shallow stratiform sediment

hosted copper-silver 20 to 50 meters thick over an area four to six kilometers long.

Further details concerning Unkur Copper-Sil ver Project are contained in a technical

report filed by the Company as per its news release of 5 April 2016.

Qualified Person

The Company’s President and Chief Executiv e Officer, Dorian L. (Dusty) Nicol, B.Sc.

Geo, MA Geo, a Qualified Person as def ined by NI 43-101, has reviewed and approved

the exploration information disclosures contained in this Press Release.

About Azarga Metals Corp.

Azarga Metals is a mineral exploration and development company that owns 60% of the

Unkur Copper-Silver Project in the Zabaikalsky administrative region in eastern Russia.

AZARGA METALS CORP.

"Dusty Nicol"

Dorian L. (Dusty) Nicol, President and CEO

For further information please contact: Doris Meyer, at +1 604 536-2711 ext 6, or visit

www.azargametals.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is

defined in the policies of t he TSX Venture Exchange) acc epts responsibility for the

adequacy or accuracy of this release.

Cautionary Statement:

This news release contains forward-looking statem ents that are based on the Corporation's current

expectations and estimates. Forward-looking statement s are frequently characterized by words such as

"plan", "expect", "project", "intend", "believe", "ant icipate", "estimate", "suggest", "indicate" and other

similar words or statements that ce rtain events or conditions "may" or "will" occur. Such forward-looking

statements involve known and unknown risks, uncertainties and other fa ctors that could cause actual

events or results to differ materially from estimated or anticipated events or re sults implied or expressed

in such forward-looking statements. Such factors in clude, among others: the ac tual results of current

planned exploration activities; conclusions of economi c evaluations; changes in project parameters as

plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour

disputes and other risks of the mini ng industry; delays in obtaining governmental approvals or financing;

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and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be

as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which

it is made and, except as may be required by applic able securities laws, the Corporation disclaims any

intent or obligation to update any forward-looking st atement, whether as a result of new information,

future events or results or otherwise. Forward- looking statements are not guarantees of future

performance and accordingly undue reliance should not be put on such statements due to the inherent

uncertainty therein.