Azumah Resources : 40,000m multi-target drilling campaign underway

40,000m, A$4 million, Multi-Target Drilling

Campaigns Underway

• • New drill season focused on rapidly increasing Mineral Resources and Ore Reserves to underpin development decision for Wa Gold Project

• • 7,000m of RC/Diamond drilling:

  • • to test for open-ended depth extensions to bottom-of-pit high-grade mineralisation at Kunche, Bepkong and Julie deposits;

  • • to expand Mineral Resources; and

  • • for new prospect development

• • 3,000m of RC drilling to upgrade in-pit inferred Mineral Resources to indicated status for inclusion in pit optimisations

• • 8,000m of RC drilling to target and delineate new shallow resources across the Project

• • 7,000m of aircore drilling to test and expand multiple existing auger and VTEM generated targets and prospects

• • Up to 15,000m of auger drilling to better define and infill existing anomalies and to identify new ones

• • Up to 5,000m of trenching to test the Eve, Laudetta, Danyawu SW and Kjersti prospect areas

OTHER KEY POINTS:

• • Strong drill results news flow well into 2019

• • Ore Reserves and Feasibility Study progress update is on-track for end-2018 delivery

• • Azumah and joint venture partner Ibaera Capital are attending and presenting at the 121 Mining Investment London conference on 20/21 and the Mines and Money London conference on 26-29 November

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Fig 1: Wa Gold Project: Deposits, Prospects, Mineral Resources and Ore Reserves

West African gold explorer and developer Azumah Resources Limited (ASX: AZM) ("Azumah") advises that it has commenced a 40,000m, A$4 million multi-target drilling campaign aimed at lifting Mineral Resources and Ore Reserves at its Wa Gold Project in Ghana, West Africa ('Project') where the primary objective is to deliver an economically attractive, development-ready Project by Q3 2019 (Fig 1).

Azumah Managing Director, Stephen Stone, said "We have a multitude of stand-out targets across our vast and highly prospective Wa Gold Project tenure that we are confident will deliver increases in Mineral Resources and Ore Reserves.

"Shareholders can look forward to a steady flow of project news including progress updates to the Feasibility Study and Ore Reserves by the end of 2018, as well as numerous drilling results well into 2019.

"Our exploration strategy has been developed by renowned orogenic gold specialist, Dr Jon Hronsky, who is a founding partner of our joint venture partner, Ibaera Capital, which is sole-funding and managing the 40,000m drilling campaign."

Paul L'Herpiniere, who is also a founding partner of and General Partner - Exploration and Evaluation at Ibaera

Capital said: "The entire team is eager to commence what will be an exciting exploration campaign at the

Wa Gold Project, following on the back of last season's increase in Mineral Resources to 2.5Moz which was largely achieved through focused drilling at previously defined prospects.

"A particular focus for us this season is to evaluate the depth extent of mineralisation at our flagship Kunche, Bepkong and Julie deposits, as that could provide us with the option of adding underground production to the life-of-mine development strategy."

RC/DDH (7,000m) and RC (11,000m) holes

The first phase of the drilling programme will include at least an additional two RC/DDH core holes targeting depth extensions to the broad zone of high-grade mineralisation intersected in KRC831 (44m at 5.37g/t Au from 99m) that was drilled into the Kunche deposit's central saddle zone (ASX release 8 May 2018) (Figs 2 and 3).

Holes with similar objectives will be drilled below the base of current designed pit bottoms at the Bepkong and Julie deposits.

A number of RC holes have been planned at the Kunche and Julie deposits and at the Kunche NW, Manwe, Josephine, Alpha and Bravo prospects so that some current in-pit inferred Mineral Resources can be upgraded into the measured and indicated categories and then included in pit optimisations.

Aircore (7,000m), auger (up to 15,000m) and trenching (up to 5,000m)

The majority of aircore drilling, which is aimed at upgrading many targets to RC drill-ready status, will be undertaken in the Wa Lawra region where numerous high-tenor auger geochemical anomalies were generated last season and which are viewed as 'low-hanging fruit' for the discovery of new shallow Mineral Resources.

At Wa East, of specific interest will be the programme designed to test the newly identified, 5km-long Eve VTEM geophysical anomaly which displays similar scale and geophysical properties to the main Julie deposit minerals system. This new focus area, including the spatially associated 2km-long Eve geochemical anomaly, will be further explored through an expanded soil geochemical survey and trenching while several other recently generated geochemical targets, including Danyawu SW, Laudetta and Kjersti South will also be tested by trenching in coming weeks (ASX release 27 August 2018)(Figs 4 and 5).

Throughout the 2,400km2 Project area, there are a series of high-priority areas upon which to conduct first-pass auger drilling and, where there has then been confirmed strong anomalism, infill auger programmes.

Geochemical sampling by auger drilling is the primary method by which new structurally favourable settings are tested for anomalism and hence new prospects identified and readied for RC drilling. Having progressively refined auger geochemical sampling methodology, considerable confidence is now placed on its ability to generate reliable anomalies.

It is expected that many of these new and earlier stage targets will be drill-tested during the second phase of RC drilling in 2019.

Fig 2: Kunche deposit cross-section 1149000mN showing planned RC / DDH hole

Fig 3: Kunche deposit long-section showing hole pierce points and planned holes

Fig 4: Wa East: Julie NW and and Eve VTEM anomalies