AMERICA’S NEXT URANIUM DEVELOPER Investor Presentation – 1 January 2016

TSX: AZZ / FRA: P8AA / OTCMKTS: PWURF

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DISCLAIMER / SAFE HARBOR STATEMENT

Certain statements in this presentation are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative and grammatical variations) of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause Azarga Uranium Corp.’s (“Azarga” or the "Company”) actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking 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 its actual results to differ materially from those expressed or implied by the forward looking statements, including, but not limited to: global economic conditions; uranium price fluctuations; public acceptance of nuclear energy and competition from other energy sources; the Company will require significant amounts of additional capital in the future; competition for properties and experienced employees; uranium industry competition and international trade restrictions; possible loss of interests in exploration and development properties; mining and mineral exploration is inherently dangerous and subject to factors beyond the Company’s control; the Company’s mineral resources are estimates; the nature of exploration and development projects; environmental regulatory requirements and risks; currency fluctuations; government regulation and policy risks; public involvement in the permitting process; Native American involvement in the permitting process; political risk; the Company has no history of mining operations; property title rights; dependence on key personnel and qualified and experienced employees; delineation of mineral reserves and additional mineral resources; insurance coverage; dilution from further equity financing and outstanding stock options and warrants; the market price of the Company’s shares; the Company has never paid dividends and may not do so in the foreseeable future; litigation and other legal proceedings; technical innovation and obsolescence; disclosure and internal controls; conflicts of interest; exposure to emerging markets and the resolution of contentions pertaining to the Dewey Burdock United States Nuclear Regulatory Commission license. Undue reliance should not be placed on forward-looking statements because they involve unknown and known risks, uncertainties and other factors that are in many cases beyond the Company’s control. Forward-looking statements are not guarantees of future performance and the Company’s actual results of operations, financial condition and liquidity, and the development of the industry in which it operates, may differ materially from statements made or incorporated by reference in this presentation. The Company undertakes no obligation to update forward-looking statements if management’s beliefs, estimates and opinions or the Company’s circumstances as at the date hereof should change. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether, as a result of new information, future events or otherwise. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian security regulators. Certain technical data in this presentation was taken from the technical report entitled “NI 43-101 Technical Report Preliminary Economic Assessment Dewey-Burdock Uranium ISR Project, South Dakota, USA” dated 29 January 2015, prepared by Douglass H. Graves of TREC Inc. and Steve E. Cutler of Roughstock Mining Services (the “Technical Report and PEA”) and is subject to the assumptions, qualifications and procedures described therein. The Technical Report and PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would categorize them as Mineral Reserves. There is no certainty that the results of the Technical Report and PEA will be realized. Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mr. John Mays, P.E. is the Qualified Person who supervised the preparation of the exploration technical data in this presentation. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securities.

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ARE EXPERIENCED MINE DEVELOPERS BELIEVE IN URANIUM UPSIDE OWN THE HIGHEST GRADE UNDEVELOPED ISR URANIUM PROJECT, DEWEY BURDOCK, AMONG PEER GROUP1 ARE PROGRESSING A PIPELINE OF PROJECTS ARE TSX MAIN BOARD LISTED AND RESOURCED TO SUCCEED

WE…

Notes: 1. Various company announcements and research notes; refer to slide 12 for additional details.

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MINE DEVELOPERS

Richard Clement Chairman Professional Geologist with 35-years+ experience in uranium, 9-years with Azarga Uranium Corp.

John Mays Chief Operating Officer 20-years+ experience in design, construction and operation of ISR uranium mines and formerly Chief Engineer, UrAsia Energy

Blake Steele President and Chief Financial Officer Former SouthGobi Resources Finance Director and previously with Deloitte in Audit and Financial Advisory practices

Curtis Church Vice President and Director 18-years mining and exploration experience, 8-years based in Central Asia

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URANIUM UPSIDE Analysts’ forecast a recovery in Uranium price

US$/lb

Source: TradeTech for historical spot. Analysts’ forecast is based on median of 10 analyst forecasts (analysts include: Bank of America, BMO, Cantor Fitzgerald, Credit Suisse, Dundee, Raymond James, Royal Bank of Canada, Salman Partners, TD Bank, Macquarie).

Analysts’ forecast

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018 LT

43

50

55

65

Fukushima incident

Uranium at eight-year low

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!  2017 nuclear power generation is forecast to pass its pre-Fukushima high !  65 reactors under construction – 54% of them in Asia

URANIUM UPSIDE Strong demand growth is now expected at a time when supply has been cut back

NUCLEAR MAKES SENSE !  Unlike solar or wind, nuclear supplies reliable base load power !  Unlike coal, oil or natural gas, nuclear is carbon free

URANIUM DEMAND IS GROWING1

SUPPLY HAS BEEN CUT BACK !  Supply reduced 11% in 20142

!  Mined supply cut back in price downturn – Kaylekera and Honeymoon shutdown, Areva and Cameco on growth moratoria3

!  Secondary supply from historical deal between Russia and America to down blend Russian highly enriched uranium eliminated

Notes: 1. World Nuclear Association 30 November 2015. 2. Cantor Fitzgerald Commodity Price Update 29 October 2015 . 3. Company announcements.

0 20 40 60 80

100

Spot Long-term contract

Long-term equilibrium

34 44

80

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URANIUM UPSIDE A 40% increase in mined supply is needed by 20201 and prices need to move to achieve that

HIGHER PRICES ARE NEEDED2

FUEL CYCLE IS LONG SO MARKETS REACT EARLY

!  A Cantor Fitzgerald analysis dated 29 October 2015 estimates long-term all-in sustaining costs of US$80/lb

US$/lb

Mining / milling UF6 conversion U-235 enrichment Fuel fabrication Fuel loading

12-18 months Note 1: RBC Metal Prospects: Uranium Market Outlook-Third Quarter 2015 Note 2: TradeTech for Spot and Long-term contract price!

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DEWEY BURDOCK SOUTH DAKOTA, USA

HIGHEST GRADE UNDEVELOPED ISR PROJECT

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HIGHEST GRADE UNDEVELOPED ISR PROJECT What is in-situ recovery (ISR) mining?

Source: United States Nuclear Regulatory Commission (www.nrc.gov)

!  Produces >51% of global uranium1 !  Injection wells add oxygen and carbon

dioxide to groundwater creating a lixiviant solution in the layer of earth containing the uranium ore

!  Uranium dissolves into the solution !  Recovery wells pump the solution back

to the surface to a processing facility and then returned to injection wells after removal of uranium

!  Monitoring wells are checked regularly to ensure uranium and lixiviant is not escaping the uranium deposit

Note 1: World Nuclear Association – World Mining Uranium Production (22 May 2015)

!

ISR VS CONVENTIONAL – GRADE AND CASH COST COMPARISON USING CAMECO AS A GUIDE

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!  No movement of rock, no dust or tailings

!  Average global cash costs for ISR are 16% cheaper than conventional open pit and 24% cheaper than underground mines1

!  Lower capital costs per lb of production compared to non-ISR

!  Only sandstone hosted deposits with the right hydrological and geological conditions are amenable to ISR

0

10

20

0

10

20

30

McArthur River &

Key Lake

Cigar Lake Inkai

Nebraska &

Wyoming

Conventional ISR

Reserves grade (% U3O8)

Cash cost (US$/lb)

Ave = 17.3%

Ave = 0.1%

Ave = US$23/lb Ave = US$21/lb

Grades of Athabasca assets average 200x more than ISR… BUT ISR has 10% lower cash cost!

Notes: Data sourced from Dundee’s Cameco research note of 29 October 2014. Cash cost numbers are 2016’F to take into account when all comparable assets are in steady state production.

HIGHEST GRADE UNDEVELOPED ISR PROJECT Why we like ISR so much?... It’s cheaper and more reliable

Note 1: Dundee Capital Markets Sector Outlook – Uranium Sector: Stocks Rising Steadily as Uranium Prices Firm (2 March 2015)

!!

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!  Edgemont uranium district in south west South Dakota, approximately 60 miles from Cameco’s Crow Butte mine in Nebraska

!  Mineral rights and surface rights covering approximately 17,900 acres and 13,880 acres, respectively

!  Well served for infrastructure

Source: Technical Report and PEA.

Dewey Burdock: Location and infrastructure

Sixteen miles from Edgemont, serviced by two lane, all weather gravel road Residential / light use power already at site will supply first two years, then 15 miles of 69kV line to be built to substation to provide upgraded power for central processing plant in third year Two 3,000 foot wells to be drilled on site to pump water from the Madison Formation

HIGHEST GRADE UNDEVELOPED ISR PROJECT

10#miles#

!  Measured & Indicated: 8,582,000 lbs at average grade of 0.25%

!  Inferred: 3,528,000 lbs at average grade of 0.05%

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Source: Technical Report and PEA. Only includes ISR amendable resources. Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Effective date of resource estimate – 29 January 2015.

Dewey Burdock: Highest grade among peers

NI 43-101 COMPLIANT RESOURCE

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0 5 10 15 20 25 30

DEWEY BURDOCK2

HIGHEST GRADE AMONG PEERS1

Life of mine project size (lbs)

Gra

de (U

3O8%

) CENTENNIAL3

Notes: 1. Peers include: Uranium Energy Corp.’s Golliad, Uranerz’s Nichols Ranch, UR-Energy’s Lost Creek and Shirley Basin, and Peninsula Energy’s Lance. Peer data is sourced from latest NI 43-101 for Measured plus Indicated Resources for all except Lance, where data is published according to the Australian JORC Code for Measured plus Indicated Resources plus some Inferred Resources based on the company’s production plan (see Peninsula Energy’s press release on 27 March 2014). Life of Mine project size data comes from the latest published stated life of mine production from each project. 2. Source: Technical Report and PEA; includes some Inferred Resources in production. 3. Source: NI 43-101 Preliminary Assessment Powertech Uranium Corp. Centennial Uranium Project Weld County, Colorado, SRK, 2 June 2010; includes some Inferred Resources in production.

HIGHEST GRADE UNDEVELOPED ISR PROJECT

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1.0m lbs Annual U3O8 production

11 years Mine life (incl. two year ramp-up)

9.7m lbs Total LOM production

US$27.0m or US$2.80/lb Initial capital expenditure

US$18.86/lb US$8.50/lb US$1.25/lb US$2.06/lb US$7.05/lb

Cash operating costs - Plant and well field operating - Restoration / de-commissioning - Site management / overhead - Production taxes and royalties

US$284.2m / US$220.9m Free cash flow pre-tax / post-tax

US$149.4m / US$113.8m NPV (8% disc) pre-tax / post-tax

67% / 57% IRR pre-tax / post tax Notes: 1. Source: Technical Report and PEA, which is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would categorize them as Mineral Reserves. There is no certainty that the results of the Technical Report and PEA will be realized. Mineral Resources that are not mineral reserves do not have demonstrated economic viability.

!  Initial capital of US$27m is ‘sector leading’ for a project of this size

!  Cash costs below peers’ projections from Peninsula Energy, Uranerz and Uranium Energy Corp.

!  Pre-tax IRR of 67% at US$65/lb long-term uranium price (note: post-Federal tax IRR of 57%)

!  At US$44/lb uranium, which is current long-term price, pre-tax IRR is 30%

!  Vanadium has not been incorporated but assays and historical data indicate significant vanadium is present

Dewey Burdock: 2015 PEA demonstrating robust economics

ROBUST PROJECT ECONOMICS1

HIGHEST GRADE UNDEVELOPED ISR PROJECT

US$14.00/lb

Sustaining capital costs

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Final Source and Byproduct Materials License

!  Issued April 2014 !  ASLB partially dismissed the contentions on NRC

license 30 April 2015 !  Remaining contentions concerning protection of

cultural resources have a clear process to completion

UIC Class III

UIC Class V

!  Expected publication of draft permits on completion of ASLB contentions process

Ground Water Disposal Plan

Water Rights

Permit

Large Scale Mine Plan Permit

!  Applications complete and recommended for approval

!  Preliminary decision in late-2013 contending that under SD Law, SD will issue permits after federal regulators approve

!  State hearings could be convened once EPA permit is published

Dewey Burdock: Status of key permits HIGHEST GRADE UNDEVELOPED ISR PROJECT

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PIPELINE OF PROJECTS Summary of projects

USA ASIA Kyzyl Ompul (Kyrgyz)

Dewey Burdock

(SD)

Centennial (CO)

Dewey Terrace

(WY)

Aladdin (WY)

Savageton (WY)

Development projects with NI 43-101 Resources and PEAs

Exploration projects with NI 43-101 Resources

Green fields exploration

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0.7m lbs Annual U3O8 production

9.5m lbs Total LOM production

US$71.1m or US$7.5/lb Initial capital expenditure

US$34.95/lb Cash operating costs2

US$51.8m Pre-tax NPV (8% discount)3

Notes: 1. Source: NI 43-101 Preliminary Assessment Powertech Uranium Corp. Centennial Uranium Project Weld County, Colorado, SRK, 2 June 2010, which is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would categorize them as Mineral Reserves. There is no certainty that these results will be realized. Mineral Resources that are not mineral reserves do not have demonstrated economic viability. 2.Includes US$10.63/lb of satellite/well-field development costs. 3. At US$65/lb uranium price and including a 20% contingency on costs and capital expenditure.

PIPELINE OF PROJECTS Centennial: Second project for development

NI 43-101 COMPLIANT RESOURCE !  Indicated: 10,371,571 lbs at average

grade of 0.09% !  Inferred: 2,325,514 lbs at average grade

of 0.09% Source: NI 43-101 Preliminary Assessment Powertech Uranium Corp. Centennial Uranium Project Weld County, Colorado, SRK, 2 June 2010

PROJECT ECONOMICS1

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US$4.2m Cash and listed securities1

Notes: 1. As at 31 December 2015. 2. Based on 1 CAD = 0.72 USD exchange rate.

RESOURCED TO SUCCEED Financial resources and capital structure

FINANCIAL RESOURCES

Note: 1. As at 30 September 2015 (last quarterly filing). Includes cash of US$0.5m plus: Western Uranium Corporation (CSE: WUC) shares at US$2.1m; and Uranium Resources, Inc. shares ((NASDAQ: URRE) at US$1.5m. For accounting purposes, the shareholdings in Western Uranium Corporation and Uranium Resources, Inc. are considered non current assets.

60.3m Shares outstanding1

CAPITAL STRUCTURE

C$0.29/share Share price (TSX: AZZ)1

C$17.5m Market cap (CAD)

US$12.6m Market cap (USD)2

SHARE PERFORMANCE

0.45

0.40

0.35

0.30

C$/share

31 Dec 2014

31 Dec 2015

Source: Quotemedia.

0.25

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RESOURCED TO SUCCEED Investment summary

!  Highest grade undeveloped ISR uranium project among peer group2 !  Robust economics at low uranium prices

DEVELOPMENT ASSETS WITH COMBINED PRE-TAX NPV >US$200m1

CLASS LEADING ‘FLAGSHIP’ DEWEY BURDOCK

!  Two economically assessed development projects, two exploration projects with established NI 43-101 resources and two green fields exploration projects

PORTFOLIO OF PROJECTS AT VARIOUS DEVELOPMENT STAGES

!  Progression of Dewey Burdock permitting !  Off-take or sales agreements over future uranium production !  Results of geological work on exploration assets !  Dewey Burdock moving to the construction phase

VARIETY OF POTENTIAL UPCOMING CATALYSTS

Notes: 1. Sum of pre-tax NPV’s for Dewey Burdock and Centennial 2. Various company announcements and research notes; refer to slide 12 for additional details.

Corporate office Powertech (USA) Inc. Suite #140, 5575 DTC Parkway Greenwood Village, Colorado USA 80111 International operations Azarga Uranium Corp. Level 5-1, Suite 9, Sun’s Group Centre 200 Gloucester Road Wanchai Hong Kong SAR Email: info@azargauranium.com Web: www.azargauranium.com Twitter: @AzargaUranium

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