AMERICA S NEXT URANIUM DEVELOPER

AMERICA S NEXT URANIUM DEVELOPER Investor Presentation 1 January 2016 TSX: AZZ / FRA: P8AA / OTCMKTS: PWURF

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. 2

WE ARE EXPERIENCED MINE DEVELOPERS BELIEVE IN URANIUM UPSIDE OWN THE HIGHEST GRADE UNDEVELOPED ISR URANIUM PROJECT, DEWEY BURDOCK, AMONG PEER GROUP 1 ARE PROGRESSING A PIPELINE OF PROJECTS ARE TSX MAIN BOARD LISTED AND RESOURCED TO SUCCEED Notes: 1. Various company announcements and research notes; refer to slide 12 for additional details. 3

MINE DEVELOPERS Richard Clement Chairman Professional Geologist with 35-years+ experience in uranium, 9-years with Azarga Uranium Corp. Blake Steele President and Chief Financial Officer Former SouthGobi Resources Finance Director and previously with Deloitte in Audit and Financial Advisory practices John Mays Chief Operating Officer 20-years+ experience in design, construction and operation of ISR uranium mines and formerly Chief Engineer, UrAsia Energy Curtis Church Vice President and Director 18-years mining and exploration experience, 8-years based in Central Asia 4

URANIUM UPSIDE Analysts forecast a recovery in Uranium price US$/lb 80 Analysts forecast 70 Fukushima incident 65 60 55 50 40 43 50 30 Uranium at eight-year low 20 2011 2012 2013 2014 2015 2016 2017 2018 LT 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). 5

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 GROWING 1! 2017 nuclear power generation is forecast to pass its pre-fukushima high! 65 reactors under construction 54% of them in Asia SUPPLY HAS BEEN CUT BACK! Supply reduced 11% in 2014 2! Mined supply cut back in price downturn Kaylekera and Honeymoon shutdown, Areva and Cameco on growth moratoria 3! 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. 6

URANIUM UPSIDE A 40% increase in mined supply is needed by 2020 1 and prices need to move to achieve that HIGHER PRICES ARE NEEDED 2 US$/lb 100 80 60 40 20 0 34 Spot 44 Long-term contract 80 Long-term equilibrium! A Cantor Fitzgerald analysis dated 29 October 2015 estimates long-term all-in sustaining costs of US$80/lb FUEL CYCLE IS LONG SO MARKETS REACT EARLY Mining / milling UF 6 conversion U-235 enrichment Fuel fabrication Fuel loading Note 1: RBC Metal Prospects: Uranium Market Outlook-Third Quarter 2015 Note 2: TradeTech for Spot and Long-term contract price! 12-18 months 7

HIGHEST GRADE UNDEVELOPED ISR PROJECT DEWEY BURDOCK SOUTH DAKOTA, USA 8

HIGHEST GRADE UNDEVELOPED ISR PROJECT What is in-situ recovery (ISR) mining?! Produces >51% of global uranium 1! 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 Source: United States Nuclear Regulatory Commission (www.nrc.gov) Note 1: World Nuclear Association World Mining Uranium Production (22 May 2015)! 9

HIGHEST GRADE UNDEVELOPED ISR PROJECT Why we like ISR so much?... It s cheaper and more reliable! 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 mines 1! 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 Note 1: Dundee Capital Markets Sector Outlook Uranium Sector: Stocks Rising Steadily as Uranium Prices Firm (2 March 2015)!! ISR VS CONVENTIONAL GRADE AND CASH COST COMPARISON USING CAMECO AS A GUIDE Reserves grade (% U 3 O 8 ) Cash cost (US$/lb) 20 10 0 30 20 10 0 Conventional McArthur River & Key Lake Ave = 17.3% Cigar Lake Ave = US$23/lb Inkai ISR Ave = 0.1% Nebraska & Wyoming 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. 10

HIGHEST GRADE UNDEVELOPED ISR PROJECT Dewey Burdock: Location and infrastructure! 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 Sixteen miles from Edgemont, serviced by two lane, all weather gravel road 10#miles# 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 Source: Technical Report and PEA. 11

HIGHEST GRADE UNDEVELOPED ISR PROJECT Dewey Burdock: Highest grade among peers NI 43-101 COMPLIANT RESOURCE! Measured & Indicated: 8,582,000 lbs at average grade of 0.25%! Inferred: 3,528,000 lbs at average grade of 0.05% 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. HIGHEST GRADE AMONG PEERS 1 Grade (U 3 O 8 %) 0.30 0.25 0.20 0.15 0.10 0.05 0.00 DEWEY BURDOCK 2 CENTENNIAL 3 0 5 10 15 20 25 30 Life of mine project size (lbs) 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 12 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 Dewey Burdock: 2015 PEA demonstrating robust economics ROBUST PROJECT ECONOMICS 1 Annual U 3 O 8 production Mine life (incl. two year ramp-up) Total LOM production Initial capital expenditure Cash operating costs - Plant and well field operating - Restoration / de-commissioning - Site management / overhead - Production taxes and royalties Sustaining capital costs 1.0m lbs 11 years 9.7m lbs US$27.0m or US $2.80/lb US$18.86/lb US$8.50/lb US$1.25/lb US$2.06/lb US$7.05/lb US$14.00/lb US$284.2m / Free cash flow pre-tax / post-tax US$220.9m US$149.4m / NPV (8% disc) pre-tax / post-tax US$113.8m! 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 longterm 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 IRR pre-tax / post tax 67% / 57% 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. 13

HIGHEST GRADE UNDEVELOPED ISR PROJECT Dewey Burdock: Status of key permits Final Source and Byproduct Materials License UIC Class III! 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! Expected publication of draft permits on completion of ASLB contentions process UIC Class V 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 14

PIPELINE OF PROJECTS Summary of projects USA ASIA Dewey Terrace (WY) Dewey Burdock (SD) Kyzyl Ompul (Kyrgyz) Savageton (WY) Aladdin (WY) Centennial (CO) Development projects with NI 43-101 Resources and PEAs Exploration projects with NI 43-101 Resources Green fields exploration 15

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 ECONOMICS 1 Annual U 3 O 8 production Total LOM production Initial capital expenditure Cash operating costs 2 Pre-tax NPV (8% discount) 3 0.7m lbs 9.5m lbs US$71.1m or US$7.5/lb US$34.95/lb US$51.8m 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. 16

RESOURCED TO SUCCEED Financial resources and capital structure FINANCIAL RESOURCES SHARE PERFORMANCE C$/share Cash and listed securities 1 US$4.2m 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. 0.45 CAPITAL STRUCTURE 0.40 Shares outstanding 1 Share price (TSX: AZZ) 1 Market cap (CAD) Market cap (USD) 2 60.3m C$0.29/share C$17.5m US$12.6m 0.35 0.30 Notes: 1. As at 31 December 2015. 2. Based on 1 CAD = 0.72 USD exchange rate. 0.25 31 Dec 2014 Source: Quotemedia. 31 Dec 2015 17

RESOURCED TO SUCCEED Investment summary DEVELOPMENT ASSETS WITH COMBINED PRE-TAX NPV >US$200m 1 CLASS LEADING FLAGSHIP DEWEY BURDOCK! Highest grade undeveloped ISR uranium project among peer group 2! Robust economics at low uranium prices PORTFOLIO OF PROJECTS AT VARIOUS DEVELOPMENT STAGES! Two economically assessed development projects, two exploration projects with established NI 43-101 resources and two green fields exploration projects VARIETY OF POTENTIAL UPCOMING CATALYSTS! 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 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. 18

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 19!