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Unkur

The Unkur Copper-Silver Project is a sediment-hosted stratiform copper-silver deposit. The copper-silver bearing horizon has been traced, from historic drill holes, trenches and outcrop, for a length of about 5 kilometers northwest-southeast in the southwest limb of the Unkur Syncline.

Unkur was initially explored during the 1960s through 1980s.Various non-NI 43-101 resource estimates were prepared during that time. A ‘prognostic’ resource estimate was 143 million tonnes at 0.77% copper and 68.3 g/t silver.Historic resource estimates were prepared before the Company acquired an interest in the project.They have not been reviewed by a Qualified Person in the context of NI 43-101 and so cannot be considered as a current Mineral Resource.

Azarga Metals Corp. acquired Unkur Copper-Silver Project in 2016 and commenced an exploration program shortly thereafter. To date, work has comprised surface geologic mapping and geochemical sampling, approximately 130 line-kilometers of ground magnetics geophysics, 4,580 meters of diamond drilling (16 drill-holes) and 186 meters of channel sampling from four trenches.

in 2017, the initial results of Azarga Metals’ program led to a maiden NI 43-101 Resource estimate.The estimate was an Inferred Mineral Resource of 42 million tonnes at 0.52% copper and 38g/t silver, containing 220,000 tonnes (ie, 480 million pounds) of copper and 52 million ounces of silver. The Mineral Resource estimate was independently prepared by SRK Consulting (Russia) Ltd. ("SRK"), in accordance with NI 43-101. In 2018, the maiden Resource estimate was subsequently replaced by an updated Inferred Mineral Resource estimate of 62 million tonnes at 0.53% copper and 38.6 g/t silver, containing 328,600 (724 million pounds) of copper and 76.8 million troy ounces of silver. This equates to a copper equivalent grade of 0.90%, assuming a copper price of US$3.00/lb, silver price of US$20/ounce and 100% recovery for copper and silver.The updated Mineral Resource estimate was prepared by Tetra Tech, Inc.

The Resource as defined by the current estimate remains open in both directions along strike and down dip.The Company considers that Unkur has exceptional upside exploration potential and has designed a geophysical survey and drilling program that has the objective of at least doubling the current Resource.As the Company believes that it now understands the geological controls on high-grade mineralization, an objective of the next phase of physical exploration will be to increase the grade as well as to increase the tonnage of the Resource.

Metallurgical testing results of a single 350kg sample of the oxide copper-bearing ore of the Unkur deposit taken in December 2014 indicate that copper and silver can be recovered. Preliminary tests indicate recoveries up to 96% of both copper and silver.

Azarga Metals has engaged Tetra Tech Mining and Minerals (“Tetra Tech”) to complete a NI 43-101 compliant Preliminary Economic Assessment (“PEA”) on the Unkur Project.The PEA will be based on the updated Resource estimate.The PEA will be completed by Tetra Tech's office in Swindon, United Kingdom.Publication of this PEA is expected mid- 2018.