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AZARGA METALS CORP. ("Azarga Metals" or the “Company”) (TSX-V:AZR) announces the commencement of drilling at its Unkur Copper-Silver Project in the Zabaikalsky administrative region of eastern Russia.

Azarga Metals’ president and CEO Dorian L. (Dusty) Nicol commented "I’m happy drilling commenced on time and excited to see what the assays bring in the later part of the fourth quarter."

DRILLING COMMENCEMENT

Two diamond core drill rigs and associated ancillary equipment arrived by train in the town of Novaya Chara on 25 July 2016 and were subsequently transported the short distance (approximately 15 kilometers) to the Unkur Copper-Silver Project where Azarga Metals has now established an exploration camp. The two rigs were moved into position at proposed drill hole locations AM-001 and AM-005 over last Sunday and Monday, and drilling has now commenced.

The photos below show recent activities at Unkur Copper-Silver Project.

Exploration camp and gear	Drill rig moving to drill-hole location
Source: Azarga Metals.	Source: Azarga Metals.

FIRST PHASE DRILLING PROGRAM

The Company aims to drill between eight and ten diamond drill holes totaling approximately 3,000 cumulative linear meters. The two drill rigs are expected to operate through the end of November. Assaying will be conducted by SGS Minerals Services in Chita, with results expected in the October to December period.

Further details of the first phase drilling program at Unkur were contained in the Company’s news release of 2 June 2016.

UNKUR COPPER-SILVER PROJECT

Azarga Metals owns 60% of the Unkur Copper-Silver Project along with the right to acquire the remaining 40% in the future.

Sediment-hosted copper and silver mineralization has been identified across the 5,390 hectare project license area, in outcrops, trenches and by historical diamond drilling. The prior exploration outlined a large area of high-grade shallow stratiform sediment hosted copper-silver 20 to 50 meters thick over an area four to six kilometers long.

Further details concerning Unkur Copper-Silver Project are contained in a technical report filed by the Company as per its news release of 5 April 2016.

Qualified Person

The Company’s President and Chief Executive Officer, Dorian L. (Dusty) Nicol, B.Sc. Geo, MA Geo, a Qualified Person as defined by NI 43-101, has reviewed and approved the exploration information disclosures contained in this Press Release.

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.

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 ore grade or recovery rates; accidents, labour 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, 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 Corporation 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 guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.