Azumah Resources : to raise $1.5 million

Azumah To Raise $1.5M as Wa Gold Project Drilling Intensifies

• • Binding commitments for $1.5M received from new and existing international and Australian institutional and sophisticated investors

• • 22-hole RC drilling programme just completed at Kunche deposit

• • Drill results to be released once full programme assays are available and interpreted

• • RC rig now drilling at the nearby Bepkong and Aduane deposits with Yagha, Manwe and Josephine targets also on the agenda

• • Four auger rigs now drilling new and existing targets to identify and better define zones of gold anomalism

West African gold explorer and developer, Azumah Resources Ltd (ASX:AZM), advises it has received binding commitments to raise $1.5 million in a private placement of approximately 69.6M fully paid ordinary shares at $0.022 per share.

The issue, to existing international and Australian institutions and sophisticated investors, will enable Azumah to finalise a number of minor commitments at its Wa Gold Project, Ghana, and the imminent completion of the purchase of the Julie West Licence from Castle Minerals Limited.

A 22-hole RC drilling programme has just been completed at the Company's Kunche deposit under the management of farm-in partner, Ibaera Capital, which this year has budgeted $6M for the Project as part of its overall $17M possible spend over two years.

This drilling programme was designed to identify opportunities to increase the size of the existing Kunche open pit design and, in particular its possible deepening. Azumah will report these results once the full programme assays are available and have been interpreted.

Azumah Managing Director Stephen Stone said: "The joint venture is very focused on achieving its objective of delivering a one-million-ounce Ore Reserve for the Wa Gold Project.

"As part of our $6 million, 27,000m drilling programme this year, we have several months of almost constant auger, air core, RC and diamond drilling ahead of us.

"We welcome to the register our new international and local investors just as we ramp up drilling and accelerate the project towards a development decision".

The RC rig is now drilling at the nearby Bepkong and Aduane deposits, will move north to the Yagha prospect and then over to Wa East where it will be joined by a second RC rig to drill the Manwe, Josephine and several other existing prospects and new targets.

Four auger rigs are now drilling new and existing targets to identify and better define zones of gold anomalism to ensure that there is a growing pipeline of enticing prospects available for subsequent aircore and RC testing.

The Placement will be completed under the Company's capacity to issue new shares pursuant to ASX Listing Rule 7.1.

For further information please contact:

Stephen Stone

Managing Director Tel. 61 (0) 418 804 564stone@azumahresources.com.au

Wa Gold Project: Priority targets and planned drilling in 2018

About Azumah

Azumah Resources Limited is an ASX-listed (ASX: AZM) company focused on exploring and developing its regional scale Wa Gold Project in the Upper West Region of Ghana, West Africa.

Three main deposits have been discovered and extensively drilled at Kunche and Bepkong, adjacent to the Black Volta River and Ghana's border with Burkina Faso, and at Julie ~80km to the east. Several satellite deposits, including Aduane and Collette, have also been delineated.

To date, the Company has delineated a JORC 2012 Mineral Resource of 2.1Moz of gold grading 1.5g/t Au, including 1.4Moz Measured and Indicated grading 1.7g/t Au, with these evenly distributed between Kunche-Bepkong and Wa East (Julie deposit). Within this a JORC 2012 Ore Reserve of 624,000oz Au (9.1Mt at 2.14g/t Au) has been defined.

Extensive metallurgical test work has confirmed a high average overall gold recovery of ~92% for the combined Kunche, Bepkong and Julie deposits.

Mineral Resources have been progressively grown through a focused, systematic approach to exploration of the Company's 2,400km2 licence holdings, which encompass large tracts of prospective Birimian terrain, the rocks that host the majority of West Africa's gold mines. Much of this is covered in soil, alluvium or laterite so most discoveries have been 'blind'. Azumah anticipates Mineral Resources will grow substantially as it continues to test its large pipeline of target areas and specific prospects.

Azumah's exploration strategy is primarily driven by its need to boost Mineral Resources to increase the existing Ore Reserve base from 624,000oz towards 1.0Moz. This would more solidly underpin a development decision and improve funding capability.

Azumah has two 15-year Mining Leases over its key deposits (Ghana government holds a 10% free carried interest in their 'rights and obligations' and is also entitled to a 5% gross gold royalty).

No technical, social or environmental impediments to development have been identified, no communities need to be relocated and rehoused and there is strong support from key stakeholders for the Project. The Project benefits from excellent regional infrastructure including grid power to site, good quality bituminised and non-bituminised roads, easy access to water, a 2km sealed airstrip at the regional centre of Wa and good general communications.

Ibaera Funding Transaction

On 1 September 2017 Azumah executed a transformative Earn-In and Shareholders Agreement (EISA) with private equity group, Ibaera Capital, whereby Ibaera can earn in two stages over two years up to a 47.5% direct interest in Azumah's Wa Gold Project for an expenditure of US$13.5 million (~A$17M). The terms of the EISA set out the basis for the parties to boost Mineral Resources, Ore Reserves and to deliver a study supporting a decision to proceed to production within the next two years (refer ASX release dated 2 September 2017. Ibaera's investment in the Project was preceded by a review of some two hundred other international resource projects and a very thorough due diligence on the Project itself over several months. Ibaera does not presently hold, and will not earn, any equity in Azumah Resources Limited.

References

All references to Mineral Resources and Ore Reserves pertain to ASX releases dated 2 September 2014, 23 March 2015 and 12 October 2016 respectively. Also refer to Tables 1 and 2 herein. The Company confirms that all material assumptions underpinning the production targets and forecast information continue to apply and have not materially changed other than a positive material reduction in capital costs (refer ASX release dated 9 May 2016). For further information on Azumah Resources Limited and its Wa Gold Project please visit its website atwww.azumahresources.com.auwhich contains copies of all continuous disclosure documents to ASX, Competent Persons' Statements and Corporate Governance Statement and Policies.

Competent Persons' Statements

The scientific and technical information in this report that relates to the geology of the deposits and exploration results is based on information compiled by Mr Stephen Stone, who is an executive employee of Azumah Resources Limited. Mr Stone is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral

Resources and Ore Reserves'. Mr Stone is the Qualified Person overseeing Azumah's exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the geology of the deposits and exploration results.

Table 1: Ore Reserves Summary - JORC Code 2012

Values have been rounded.

Table 2: Mineral Resource Estimate - JORC Code 2012 - Updated October 2016

Note: Values have been rounded. A lower cut-off of 0.5g/t Au was used for Kunche, Bepkong, Aduane, Julie and Collette, and a lower cut-off of 1.0g/t Au was used for Julie West and Danyawu.

Statements of Competent Persons for the various Mineral Resource Estimates, Ore Reserve Estimates and Process Metallurgy can all be found on the Company's website at:http://www.azumahresource.com.au/projects-competent_persons.php

Forward-Looking Statement

All statements other than statements of historical fact included on this website including, without limitation, statements regarding future plans and objectives of Azumah, are forward-looking statements. Forward-looking statements can be identified by words such as 'anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Azumah that could cause Azumah's actual results to differ materially from the results expressed or anticipated in these statements.

The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained on this website will actually occur and investors are cautioned not to place any reliance on these forward-looking statements. Azumah does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained on this website, except where required by applicable law and stock exchange listing requirements.