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AZR.V ·

Azarga Metals Issues Shares to Baker Steel Semi-Annual Interest

Share Capital & Compensation

AZARGA METALS CORP.

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

www.azargametals.com

FOR IMMEDIATE RELEASE

22 October 2021 TSX-V: AZR

AZARGA METALS ISSUES SHARES TO BAKER STEEL SEMI-ANNUAL INTEREST

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

announced on 14 October 2021, the Company has issued to Baker Steel Resources Trust Limited

(“BSRT”) a total of 3,743,755 common shares to settle its semi -annual interest payment of

C$187,188 on a US$3.5 million convertible loan (the “Loan”).

BSRT Early Warning Disclosure

Pursuant to the conversion of C$187,188 in interest owing to BSRT by Azarga Metals pursuant

to the Loan, BSRT acquired 3,743,755 common shares of Azarga Metals (the “ Interest

Conversion”), at a conversion price per share of C$0.05. Prior to the Interest Conversion, BSRT

owned 7,858,031 common shares of Azarga Metals, representing 6.5% of the issued and

outstanding common shares of Azarga Metals. Following the Interest Conversion, BSRT will own

11,601,786 common shares of Azarga Metals, representing 9.3% of the issued and outstanding

common shares of Azarga, reflecting an increase of 2.8% of the enlarged number of Azarga

Metal’s issued and outstanding common shares.

In addition to the common shares owned by BSRT following the Interest Conversion, pursuant to

the Loan and 20,440,914 warrants previously issued to BSRT, assuming BSRT (i) converted the

principal amount of US$3.5 million under the Loan at the conversion price of C$0.10 per common

share at maturity (December 31, 2022) at the agreed fixed exchange rate resulting in the issue of

46,925,500 shares; (ii) exercised all of the 20,440,914 warrants at an exercise price of C$0.10;

(iii) applied the agreed fixed exchange rate to the US$ Loan principal; and (iv) used the conversion

price for all interest accruing after the date hereof until maturity of C$0.05, BSRT would

beneficially own and control an aggregate of 88,204,166 common shares of Azarga Metals,

representing an aggregate beneficial ownership interest of approximately 44.8% of the issued

and outstanding common shares of Azarga Metals(post -issuance of the common shares and

including the 7,858,031 common shares Azarga Metals that BSRT currently owns).

BSRT, Arnold House, St Julians Avenue, Guernsey, GY1 1WA holds the common shares for

investment purposes. Depending on market conditions and other factors, BSRT may from time to

time acquire and/or dispose of securities of Azarga or continue to hold its current position.

A copy of the early warning report required to be filed with the applicable Canadian securities

commissions in connection the transaction will be available under the Company’s profile on

SEDAR at www.sedar.com and can be obtained by contacting Tino Isnardi at +44 (0) 20 7389

0009.

Page 2

AZARGA METALS CORP.

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

www.azargametals.com

About Azarga Metals Corp.

Azarga Metals is a mineral exploration and development company that owns 100% of the

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

On 14 July 2021 the Company announced i t had signed a term sheet to undertake due

diligence and negotiate formal agreements to pursue an acquisition of the Marg copper -

rich VMS project, located in Central Yukon. Due diligence continues.

AZARGA METALS CORP.

"Gordon Tainton"

Gordon Tainton,

President and CEO

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

www.azargametals.com. The address of the head office of Azarga Metals is Unit 1 -

15782 Marine Drive, White Rock, BC V4B 1E6, British Columbia, Canada.

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

defined in the policies of the TSX Venture Exchange) accepts responsibility for the

adequacy or accuracy of this release.

Cautionary Statement:

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

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

"plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar

words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements

involve known and unknown risks, uncertainties and other factors that could cause actual events or results

to differ materially from estimated or anticipated events or results implied or expressed in such forward-

looking statements. Such factors include, among others: the actual results of current planned exploration

activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be

refined; possible variations in mineralization grade or recovery rates; accidents, labor disputes and other

risks of the mining industry; delays in obtaining governmental approvals or f inancing; 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 applicable securities laws, the Company disclaims any intent or obligation to

update any forward-looking statement, whether as a result of new information, future events or results or

otherwise. Forward-looking statements are not a guarantee of future performance and accordingly undue

reliance should not be put on such statements due to the inherent uncertainty therein.