Azarga Metals Shares FOR Debt

AZARGA METALS CORP.

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

www.azargametals.com

FOR IMMEDIATE RELEASE

1 June 2017 TSX-V: AZR

AZARGA METALS SHARES FOR DEBT

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

that the Company has reached certain settlement agreements with the minority

shareholders of the Company’s 60% owned subsidiary, Azarga Metals Limited (“Azarga

BVI”) to accept common shares of the Company in settlement of amounts owing.

On acquiring Azarga BVI on May 31, 2016 (see Ma rch 1, 2016 news release), the

Company assumed the obligation to repay existing loans of US$766,709 (the “Loan”).

The Loan bears interest at the rate of 12% per annum payable annually on each

anniversary date. Accordingly , interest of US$92,005 has accru ed on the Loan to May

31, 2017 and is now due . The Company has reached settlement agreements with the

lenders to accept a total of 709,751 common shares of the Company in settlement of

the interest owing on the Loan based on the closing share price of the Company at

close of trading on May 31, 2017 and the noon day exchange rate on that same day.

Also, on the acquisition of Azarga BVI, the Company agreed to, among other things,

pay the minority shareholders of Azarga BVI US$80,000 by June 1, 2017 (the “Deferred

Payment”). The Company has reached settlement agreements with the minority

shareholders of Azarga BVI to accept a total of 514,283 common shares of the

Company in settlement of the Deferred Payment based on the closing share price of the

Company at close of trading on June 1, 2017 and the noon day exchange rate on that

same day.

The issue of all shares is subject to the approval of the TSX Venture Exchange.

The minority shareholders of Azarga BVI include Alexander Molyneux, Blake Steele and

OC Management Group Limited, a company managed by Vladimir Pakhomov, all three

of whom are now directors of the Company . Mr. Molyneux will be issued 341,026

shares to bring his total holding to 4,826,487 shares (10.04%), Mr. Steele will be issued

75,824 shares to bring his total holding to 1,167,368 shares ( 2.43%) and OC

Management Group Ltd. will be issued 230,527 shares to bring its total to 4,233,293

shares (8.81%).

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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 province 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 the TSX Venture Exchange) accepts responsibility for the

adequacy or accuracy of this release.