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21 FEBRUARY 2021

HIGH-GRADE RESULTS CONTINUE FROM ANDOVER (VC-07 EAST) Ni-Cu DEPOSIT

Final Assays Received for Mineral Resource Estimate

  • Final assays for the maiden Mineral Resource Estimate for Andover nickel- copper sulphide deposit (formerly VC-07 East) received, delivering excellent results including:
    • ANDD0112 (western infill):
      • 3.7m @ 2.73% Ni, 0.42% Cu & 0.12% Co from 258.1m downhole
    • ANDD0116 (western extension):
      • 17.9m @ 1.57% Ni, 0.79% Cu & 0.08% Co from 266.8m downhole; including o 4.5m @ 2.42% Ni, 0.59% Cu & 0.11% Co from 266.8m downhole; and o 3.9m @ 2.04% Ni, 0.52% Cu & 0.11% Co from 277.8m downhole
    • ANDD0122 (upper western extension):
      • 3.7m @ 1.54% Ni, 0.40% Cu & 0.06% Co from 171.7m downhole; including:
    • ANDD0124 (depth extension):
      • 7.0m @ 1.23% Ni, 0.41% Cu & 0.06% Co from 565.4m downhole; including: o 2.7m @ 2.19% Ni, 0.20% Cu & 0.10% Co from 566.5m downhole; and
      • 3.7m @ 1.59% Ni, 0.49% Cu & 0.08% Co from 621.6m downhole; including: o 1.7m @ 2.61% Ni, 0.34% Cu & 0.12% Co from 623.0m downhole
  • Confirmation of strong continuity of internal mineralised widths and grades in the deposit
  • Maiden Andover Mineral Resource Estimate expected in late March 2022
  • Drilling continuing at Ridgeline (formerly VC-07 West)
  • First-passdrill testing of regional targets Pipeline (formerly VC-18 West), VC-18 East and VC-41 completed
  • Advanced metallurgical testwork commenced on Andover mineralisation
  1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T +61 8 9481 2555 | F +61 8 9485 1290

ABN 46 106 346 918 | ASX AZS

www.azureminerals.com.au

For personal use only

Azure Minerals Limited (ASX: AZS) ("Azure" or "the Company") is pleased to announce receipt of assay results from the final 14 drill holes completed as part of the mineral resource drill-out of the Andover nickel-copper(Ni-Cu) sulphide deposit on the Andover Project (60% Azure / 40% Creasy Group), located in the West Pilbara region of Western Australia.

All assay results are now finalised and have been provided to Azure's consultants CSA Global Pty Ltd, who are completing the maiden Mineral Resource Estimate (MRE) for Andover, which is expected to be released in late March 2022.

Assay results remain pending for a further 22 holes that have been drilled at Ridgeline (formerly VC- 07 West) and other regional targets, with laboratory turnaround times currently averaging around eight weeks.

In addition to resource definition and exploration drilling, Azure has commenced advanced-stage metallurgical test work on samples collected from different zones within the Andover deposit. Sulphide flotation tests are being carried out on multiple composite samples to assess the variability of metallurgical characteristics across the deposit and to optimise the process flowsheet.

Azure has renamed some of the prospects hosted within the Andover project area, as not all targets the Company is exploring have been identified by the airborne electromagnetic (VTEM) survey, which originated the VC-xx naming convention (see Figure 1 below).

Figure 1: Andover project area showing Andover Ni-Cu deposit and other targets

  1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T +61 8 9481 2555 | F +61 8 9485 1290

ABN 46 106 346 918 | ASX AZS

2

For personal use only

ANDOVER Ni-Cu SULPHIDE DEPOSIT

The Andover deposit has been defined by a total of 102 diamond holes for 43,995m.

A 50m x 50m drill intersection spacing was achieved over an east-west strike length of ~400m and a continuous vertical extent exceeding 550m and the deposit remains open in multiple directions (see Figures 2 and 3).

Figure 2: Long section A-AA through Andover Ni-Cu deposit and Ridgeline prospect

Assay results have now been received for all holes drilled into the Andover deposit. Data has been delivered to CSA Global, who will estimate and classify the MRE in accordance with the guidelines of the JORC Code (2012), with delivery expected in late March 2022.

Azure is very pleased with results from the recent drilling, with infill drilling of the deposit confirming excellent continuity of mineralised widths and grades and extensional drilling indicating the mineralisation remains open for further expansion to the east, west and at depth.

Encouragingly, shallow drilling at the eastern end of the deposit intersected Ni-Cu sulphide mineralisation within 20m of surface, beneath an extensive outcrop of nickel and copper-rich gossan, which extends for several hundred metres further to the east. This potential eastern mineralised extension remains undrilled and Azure will undertake additional drilling in this direction once heritage approvals have been received.

  1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T +61 8 9481 2555 | F +61 8 9485 1290

ABN 46 106 346 918 | ASX AZS

3

For personal use only

Figure 3: Andover Ni-Cu deposit, Ridgeline targets and long section A-AA location

LOOKING FORWARD AT ANDOVER

With the resource drill-out of the Andover deposit completed, Azure's focus has moved to exploring other targets where Ni-Cu sulphide mineralisation has already been drilled, such as the Ridgeline, Seaview (formerly VC-23) and Skyline prospects (see Figure 1).

In addition, Azure's ongoing regional exploration program at Andover, comprising geological mapping, geochemical sampling, surface and downhole EM surveying and drilling, continues to show very promising results. Targets such as Pipeline, VC-18 East and VC-41 have undergone initial drill-testing and observations of the drill core will be released when finalised.

Drilling of these and other targets on the property is expected to continue through 2022.

Meanwhile development studies focused on a standalone mining and processing operation are continuing. Advanced-stage metallurgical testwork and processing optimisation studies are underway, mine design and operational studies are being undertaken in conjunction with the resource modelling, tailings storage studies have commenced and infrastructure assessments are in progress.

  1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T +61 8 9481 2555 | F +61 8 9485 1290

ABN 46 106 346 918 | ASX AZS

4

Table 1: Significant assay results returned from drill holes ANDD0112 to ANDD0124

only

HOLE No

DEPTH (m)

INTERCEPT

ESTIMATED

GRADE

FROM

TO

LENGTH (m)

TRUE WIDTH (m)

Ni (%)

Cu (%)

Co (%)

ANDD0112

258.1

261.8

3.7

2.4

2.73

0.42

0.12

ANDD0113

569.6

573.4

3.8

3.1

0.91

0.50

0.05

Incl

570.0

571.2

1.2

1.0

1.95

0.63

0.10

ANDD0114

378.5

379.7

1.2

1.0

1.51

0.40

0.07

And

381.3

385.2

3.4

3.2

1.29

0.55

0.06

use

ANDD0115

No Significant Mineralised Intersections

ANDD0116

266.8

284.7

17.9

10.9

1.57

0.79

0.08

Incl

266.8

271.3

4.5

2.7

2.42

0.59

0.11

And

277.8

281.7

3.9

2.4

2.04

0.52

0.11

ANDD0117

271.4

281.3

9.9

8.1

0.80

0.84

0.04

Incl

272.1

275.1

3.0

2.4

1.55

1.39

0.08

personal

ANDD0118

659.0

660.2

1.2

0.9

1.18

0.15

0.06

Incl

623.0

624.7

1.7

0.9

2.61

0.34

0.12

ANDD0119

473.6

474.8

1.2

0.6

2.48

0.91

0.12

And

556.6

557.1

1.1

0.2

1.08

0.93

0.05

ANDD0120

No Significant Mineralised Intersections

ANDD0121

328.7

340.5

11.8

6.6

0.53

0.28

0.03

Incl

334.7

335.4

0.7

0.4

1.27

0.09

0.07

ANDD0122

171.7

175.4

3.7

3.0

1.54

0.40

0.06

Incl

173.6

175.4

1.8

1.5

2.95

0.65

0.12

ANDD0123

339.7

343.4

3.7

3.4

0.99

0.48

0.05

Incl

339.7

340.9

1.2

1.1

1.63

0.40

0.10

And

342.3

343.4

1.1

1.0

1.38

0.01

0.06

ANDD0124

565.4

572.4

7.0

3.9

1.23

0.41

0.06

Incl

566.5

569.2

2.7

1.5

2.19

0.20

0.10

And

621.60

625.3

3.7

2.0

1.59

0.49

0.08

For

Mineralised intersections calculated

using a 0.4% Ni grade cut-off for overall zones and 1.0% Ni for included

high grade zones.

  1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T +61 8 9481 2555 | F +61 8 9485 1290

ABN 46 106 346 918 | ASX AZS

5

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Azure Minerals Limited published this content on 20 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 February 2022 22:40:04 UTC.