Azarga Uranium : Management’s Discussion and Analysis dated November 16, 2020

Azarga Uranium Corp.

MANAGEMENT'S DISCUSSION AND ANALYSIS

For the nine months ended September 30, 2020

(Expressed in U.S. Dollars)

AZARGA URANIUM CORP.

ForManagement'sthe nine monthsDiscussionended Septemberand Analysis30, 2020

The following is management's discussion and analysis ("MD&A") of the results of operations and financial condition of Azarga Uranium Corp. ("Azarga Uranium"), together with its subsidiaries (collectively referred to as the "Company"), for the nine months ended September 30, 2020 and up to the date of this MD&A. This MD&A has been prepared to provide material updates to the business operations, financial condition, liquidity and capital resources of the Company since its last management's discussion and analysis for the fiscal year ended December 31, 2019 (the "Annual MD&A").

This MD&A should be read in conjunction with the Annual MD&A and the audited consolidated financial statements for the year ended December 31, 2019, together with the notes thereto, and the accompanying unaudited condensed consolidated interim financial statements and related notes thereto for the nine months ended September 30, 2020.

All financial information in this MD&A is derived from the Company's condensed consolidated interim financial statements for the nine months ended September 30, 2020 prepared in accordance with International Financial Reporting Standards ("IFRS"). All references to $ in this MD&A refer to the United States dollar and all references to C$ refer to the Canadian dollar.

Additional information relating to the Company, including the Annual Information Form, is available under the Company's profile on SEDAR at www.sedar.com

The effective date of this MD&A is November 12, 2020.

DESCRIPTION OF THE BUSINESS

Azarga Uranium was incorporated on February 10, 1984 under the laws of the Province of British Columbia, Canada. Azarga Uranium's common shares are publicly traded on the Toronto Stock Exchange ("TSX") (Symbol: AZZ), the Frankfurt Stock Exchange (Symbol: P8AA), and the OTCQB Venture Market (Symbol: AZZUF). The Company is an integrated uranium exploration and development company.

The Company controls uranium properties in the United States of America (the "USA"), located in South Dakota, Wyoming, Utah and Colorado, with a primary focus of developing in-situ recovery ("ISR") uranium projects. The Dewey Burdock ISR uranium project in South Dakota, USA (the "Dewey Burdock Project") is the Company's initial development priority and has received its Nuclear Regulatory Commission ("NRC") license and draft Class III and Class V Underground Injection Control ("UIC") permits from the Environmental Protection Agency (the "EPA"). The Company also owns the Gas Hills, Juniper Ridge, Dewey Terrace and Aladdin Projects in Wyoming, the Centennial Project in Colorado, and uranium exploration properties in Wyoming, Utah, and Colorado.

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AZARGA URANIUM CORP.

ForManagement'sthe nine monthsDiscussionended Septemberand Analysis30, 2020

OPERATIONAL HIGHLIGHTS

The Company's significant events and highlights for the nine months ended September

•
30, 2020 and to the date of this MD&A are as follows:
	Dewey Burdock Project - In January 2020, the Company filed a National
	Instrument 43-101 ("NI 43-101") Technical Report and Preliminary Economic
	Assessment ("PEA") for the Dewey Burdock Project. The base case economic
	assessment resulted in a pre-income tax internal rate of return ("IRR") of 55% and
	a pre-income tax net present value ("NPV") of $171.3 million when applying an
	eight percent discount rate. Using the same discount rate, the post-income tax IRR
	is 50% and the post-income tax NPV is $147.5 million.
	In the third quarter of 2020, the Company funded financial assurance bonds for
	its Class III and Class V UIC permits for the Dewey Burdock Project. Funding the
	financial assurance bonds is required before the EPA can issue the final permits.
	In order to fund the financial assurance bonds, the Company received loans
	totaling $1,100,000 from two minority shareholders that bear interest at 12% per
•	annum, are unsecured, and mature February 5, 2021.
	Private Placement - In April 2020, the Company closed a non-brokered private
	placement for gross proceeds of $1,165,998 (C$1,640,000) through the issuance
	of 10,933,333 units at a price of C$0.15 per unit. Each unit consists of one
	common share and one-half of one share purchase warrant. Each whole warrant
	entitles the holder thereof to purchase one common share at a price of C$0.20 per
•	share until April 17, 2023.
	"GasHills Project - In April and June 2020, the Company announced additional
	uranium mineralization at its Gas Hills Uranium Project in Wyoming, USA (the
	Hills Project"). The Company identified this additional uranium
	mineralization through the analysis of historical data procured by the Company.
	In April 2020, the analysis identified 147 mineralized drill holes with 173

intercepts equal to or exceeding a 0.2 grade-thickness cutoff using a 0.02% grade cutoff with an average U308 grade of 0.137% and an average thickness of 5.3 feet. In June 2020, the analysis further identified 82 mineralized drill holes equal to or exceeding a 0.2 grade-thickness cutoff using a 0.02% grade cutoff with an average U308 grade of 0.205% and an average thickness of 4.0 feet. The analysis has expanded the envelope of uranium mineralization, indicating the potential to supplement the existing Gas Hills Project resource estimate. The Company is currently working on an updated resource estimate at the Gas Hills Project, which has the potential to become a significant satellite project to the Dewey Burdock Project.

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AZARGA URANIUM CORP.

ForManagement'sthe nine monthsDiscussionended Septemberand Analysis30, 2020

COVID-19

In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, has adversely affected workforces, economies, and financial markets globally. To date, this pandemic has had a limited impact on the Company's operations as the Company has continued to advance permitting on its Dewey Burdock project and raise capital. However, it is not possible for the Company to ultimately predict the duration or magnitude of the adverse impacts of the outbreak and its effects on the Company's business or ability to raise funds.

INDUSTRY TRENDS AND OUTLOOK
Although uranium prices have recovered from their lows, the Company believes that the
following key elements will contribute to further improvements in the uranium sector:
	Gl bal reactor pipeline indicates growth - the global reactor pipeline consists
•	of 9251	nuclear reactors that are operable, under construction, planned or
proposed. Of the 925 nuclear reactors, 442 reactors are operable . A total of 158
			1	1
	nuclear reactors are under construction or planned, which represents
	approximately 36% of the current operating fleet. China and India lead the world
	in terms of the number of nuclear power plants under construction, with fourteen
	and seven, respectively . China continues to accelerate their nuclear growth plans
•	and intends to have 120-150 GWe of installed capacity by 20302	(currently 46
GWe ).
	1
	2020, expected uranium demand is 177 million pounds, whereas, expected
•	Nuclearproductionactor requirem nts significantly3	exceed primary p oduction - in
primary	is 120 million pounds.
		3

- in February 2020, President Trump'sUnited Statesfiscal 2021NuclearbudgetFuelproposalW rkingrequestedGroup an annual allocation of US$150 million for a 10-year period, totaling US$1.5 billion, to establish a United States uranium reserve. Subsequently, in April 2020, the United States Nuclear Fuel Working Group ("NFWG") released its report detailing the Strategy to Restore American Nuclear Energy Leadership. This strategy is designed to restore America's competitive nuclear advantages and proposes, among other items, that the U.S. Government "take immediate and bold action to revive and strengthen the uranium mining industry". The strategic objectives will "restore the viability of the entire front-end of the nuclear fuel cycle". A summary of the other most relevant points included in the NFWG report pertaining to the U.S. uranium mining industry include:

1. World Nuclear Association - World Nuclear Power Reactors & Uranium Requirements (October 2020)
2. World Nuclear Association - Nuclear Power in China (January 2020)
3. TD Securities Inc. (November 2020)

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