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AZR.V ·

High Recoveries & Product Grades from Unkur Metallurgical Testing

Metallurgy & Processing

AZARGA METALS CORP.

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

www.azargametals.com

FOR IMMEDIATE RELEASE

AUGUST 04, 2020 TSX-V: AZR

HIGH RECOVERIES & PRODUCT GRADES FROM UNKUR METALLURGICAL

TESTING

Highlights:

• Sulphide material: recoveries up to 89.1% copper and 82.7% silver using

conventional flotation methods producing commercially attractive ~30%

copper & ~2,000 g/t silver concentrate

• Oxide material: recoveries up to 96.4% copper with acid leach and 96.7%

silver recoveries with cyanide leach

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

that final results have been received from metallurgical test work on samples taken from

the recently completed drilling program on the Unkur Copper -Silver Project in Eastern

Russia.

Michael Hopley, President and CEO said: “These final results are very encouraging

and show that both copper and silver from the deeper sul phide material and the upper

oxide material can be recovered efficiently by conventional methods. Being able to

produce a very saleable concentrate consisting of approximately 30% copper and 1,600

– 2,000g/t silver is very positive for the project”.

The metallurgical tests were completed by “The Eastern Mining and Metallurgical

Research Institute for Non- Ferrous Metals ” (VNIITsvetMet). They r eported that the

chemical analyses of the cupriferous quartz -feldspar sandstone drill core samples sent

for metallurgical tests were as follows:

Metal Oxide Sulphide

Copper % 0.56 0.56

Silver g/t 30.8 38.0

Gold g/t 0.07 0.05

These results are positive because they represent close to the anticipated average

grades of the Unkur deposit when mined and show no elevated values of deleterious

components, such as arsenic, were identified in mineralized material.

Page 2

AZARGA METALS CORP.

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

www.azargametals.com

Metallurgical Recovery Tests – Sulphide

The best results were from sulphide drill core ground to ±80% -0.071 mm. Using various

optimized two-stage cleaning locked cycle standard flotation tests on this material showed

87.8 to 89.1% recovery of copper p roducing a 25.78% to 30.9% copper concentrate. In

this same test , silver showed a n 81.6% to 82.7% recovery with concentrate grades

ranging from 1633.6 g/t to 2034 g/t – see details in Table 1 below:

Table 1 - Sulphide Test Results

Product Yield, % Copper, % Silver, g/t Percent

Recovery

Copper

Percent

Recovery

Silver

Concentrate 1.93 25.78 1633.6 89.1 82.7

Tailings 1 88.10 0.053 5.7 8.4 13.2

Tailings 2 9.97 0.14 15.6 2.5 4.1

Total Tailings 98.07 0.062 6.7 10.9 17.3

Mineralized

material

100.00 0.558 38.1 100.00 100.00

Product Yield, % Copper, % Silver, g/t Percent

Recovery

Copper

Percent

Recovery

Silver

Concentrate 1.59 30.9 2034 87.8 81.6

Tailings 1 87.96 0.053 6.0 8.3 13.3

Tailings 2 10.45 0.21 19.4 3.9 5.1

Total Tailings 98.41 0.070 7.42 12.2 18.4

Mineralized

material

100.00 0.56 39.65 100.00 100.00

Metallurgical Recovery Tests – Oxide

Tests were run on various size fractions: -20 mm, -10 mm, and - 0.071 mm. The best

recoveries were achieved by using the finest (-0.071 mm) fraction size. On this material,

the best s ulphuric acid leach test results achieved were 73.6 to 96.4% recoveries of

copper. On the same fraction size, a cyanide leach over a 2-day period showed a 55.6%

recovery for copper and a 96.7% for silver – see details in Table 2 below.

Table 2 - Oxide Test Results

Leach Tests Sulphuric Acid Cyanide Leach

Copper recovery 73.6 – 96.4% 55.6%

Silver recovery Not applicable 96.7%

Page 3

AZARGA METALS CORP.

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

www.azargametals.com

The laboratory work also included a phase analysis of copper minerals identified in the

oxide and unoxidized phase of mineralization, which confirms observations of the drill

core, summarized as follows:

Copper Minerals Oxide % Sulphide%

Chalcanthite 12.5 3.4

Malachite, azurite,

chrysocolla, cuprite,

tenorite

83.9 0.2

Bornite, chalcocite,

covellite

1.8 42.8

Chalcopyrite 1.8 53.6

Totals 100.0 100.0

The proportion of acid soluble copper in the oxide material is 96.4%. The proportion of

copper sulphides in the sulphide sample is 96.4%.

For the program being reported today, both sulphide material was taken from recent drill

holes from deeper parts of the Unkur mineralization. Oxide material was collected from

an outcrop.

Qualified Person

Azarga Metals’ President and CEO Michael Hopley, a Qualified Person as defined by NI

43-101, verified the data disclosed and has reviewed and approved the disclosure

contained in this Press Release.

About Azarga Metals Corp.

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

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

On completion of a first phase physical exploration program in 2016-2018, the Company

estimated an Inferred Resource of 62 million tonnes at 0.53% copper and 38.6g/t silver

for the project in the report entitled “ Technical Report and Preliminary Economic

Assessment for the Unkur Copper -Silver Project, Kodar -Udokan, Russian Federation”

dated effective 30, August 2018 authored by Tetra Tech Mining & Minerals. The Resource

remains open in both directions along strike and down-dip.

Page 4

AZARGA METALS CORP.

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

www.azargametals.com

AZARGA METALS CORP.

"Michael Hopley"

Michael Hopley,

President and Chief Executive Officer

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

www.azargametals.com or follow us on Twitter @AzargaMetals. 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 ter m 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 express ed 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 variati ons in mineralization grade or recovery rates; accidents, labor disputes and other

risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in

metal prices. There may be other factors that cause actions, event s 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.