Azure Minerals : Delivers Maiden Mineral Resource for Andover

ASX ANNOUNCEMENT

ASX:AZS

30 March 2022

For personal use only

AZURE DELIVERS MAIDEN MINERAL RESOURCE

ESTIMATE FOR ANDOVER Ni-Cu DEPOSIT

Australia's Newest Nickel-Copper Sulphide Deposit

HIGHLIGHTS

• • 4.6Mt @ 1.11% Ni, 0.47% Cu and 0.05% Co (1.41% NiEq) Mineral Resource Estimate for 75,000 tonnes of contained metal; further growth anticipated

• • High grade component of 2.0Mt @ 1.41% Ni, 0.49% Cu and 0.06% Co (1.78% NiEq)

• • A robust resource with over 80% of the Mineral Resource Estimate tonnes classified in the Indicated category

Azure Minerals Limited (ASX: AZS) ("Azure" or "the Company") is pleased to deliver the maiden Mineral Resource Estimate ("MRE") for the Andover Deposit ("Andover"), the first prospect drilled in the Andover Project ("Project") (60% Azure / 40% Creasy Group) located in the West Pilbara region of Western Australia.

The Andover Deposit is estimated to contain 4.6Mt @ 1.11% Ni, 0.47% Cu and 0.05% Co for 51.7kt of contained Nickel, 21.7kt of contained Copper and 2.29kt of contained Cobalt at a cut-off grade of 0.5% Ni (JORC 2012).

This includes a high grade resource component of 2.0Mt @ 1.41% Ni, 0.49% Cu and 0.06% Co at a cut-off grade of 0.9% Ni (see Table 1).

Azure's Managing Director, Tony Rovira, commented: "I'm very pleased to present this maiden Mineral Resource for the Andover Deposit, thereby achieving a key milestone in advancing the overall Andover Project. This highlights the extraordinary potential that we have always recognised within the Project and is just the beginning of a very exciting journey.

"The exploration team have excelled to have delivered the first resource only 18 months after starting exploration, while also discovering and now drilling significant nickel and copper sulphide mineralisation at several other prospects within the project area.

For example, it's likely that additional mineral resources will be defined at the nearby Ridgeway (6.3m @ 3.59% Ni in ANDD0134, 4.9m @ 3.5% Ni in ANDD0128, and 4.5m @ 3.95% Ni in ANDD0045; refer ASX 15 March 2022), Seaview (7.0m @ 1.35% Ni; refer ASX 7 April 2021) and Skyline (results to be announced) prospects.

"With these plus other excellent targets like Atrium and Woodbrook that have yet to be drilled, I'm confident this is only the start of mineral resource definition at the Andover Project."

Level 1, 34 Colin Street, West Perth, Western Australia, 6005

1

ASX ANNOUNCEMENT

ASX:AZS

Table 1: Andover Mineral Resource Estimate by classification reported above a 0.5% Ni cut-off

For personal use only

Classification	Tonnes Mt	Ni %	Cu %	Co %	S %	NiEq %	Ni Metal kt	Cu Metal kt	Co Metal kt
Indicated	3.8	1.16	0.47	0.05	8.23	1.51	44.0	17.9	2.06
Inferred	0.9	0.89	0.44	0.04	6.33	1.20	7.7	3.8	0.37
Total	4.6	1.11	0.47	0.05	7.87	1.41	51.7	21.7	2.29
High-grade resource component reported above a 0.9% Ni cut-off
High Grade	2.0	1.41	0.49	0.06	9.85	1.78	28.8	10.0	1.28

ANDOVER PROJECT

The Project is located 35km southeast of Karratha and immediately south of the town of Roebourne (See Figure 1). Excellent infrastructure such as airports, port access, railway, grid power, sealed highway and support services are readily available in the local district. The Andover Deposit is within Exploration Licence E47/2481, which is a joint venture between Azure (60%) and the Creasy Group (40%).

Figure 1: Andover Project location map

Level 1, 34 Colin Street, West Perth, Western Australia, 6005

ASX ANNOUNCEMENT

ASX:AZS

OVERVIEW

For personal use only

The following subsections are provided consistent with ASX Listing Rule 5.8.1, with further information provided in the JORC Code (2012) - Table 1, which is attached to this announcement.

The MRE was completed by CSA Global Pty Ltd ("CSA Global") based on 104 holes drilled between 2018 and 2021, consisting of 102 diamond (DD) and 2 reverse circulation (RC) holes for 44,267m. All holes were assayed where they intersected mineralisation lodes, and for any internal waste and external lengths for several metres outside the lodes. Drillholes were nominally spaced 50m by 50m, typically oriented within 020° of orthogonal to the interpreted dip and strike of mineralisation. However, several holes were drilled at less optimal azimuths due to site access constraints or to test for alternative mineralisation orientations. No relationships between hole angles and grade or true thickness of the mineralisation were established.

GEOLOGY AND GEOLOGICAL INTERPRETATION

The mineralisation at the Andover Deposit (See Figures 2 and 3) is entirely hosted in a fractionated, low MgO gabbro with taxitic textures proximal to the mineralisation. The fractionated gabbro is hosted between massive norite in the hanging wall, and porphyritic gabbro in the footwall. The taxitic gabbro hosts high tenor disseminated to blebby sulphides with the proportion of sulphide increasing toward the matrix and massive sulphides constituting the higher-grade portions of the Andover Deposit. Ultramafic lithologies (websterite), locally containing blebby sulphides, are observed down plunge at the Andover Deposit, cross-cut by the taxitic gabbro with ultramafic xenoliths (+/- blebby sulphides) observed locally throughout. Small ultramafic clasts have been observed within the massive and semi-massive mineralisation within the Andover Deposit.

The nickel tenor of the sulphides within the ultramafic, taxitic gabbro and massive sulphide accumulations are similar throughout the Andover Deposit. Higher grade copper mineralisation is constrained to the mineralised horizon, though is not coincident with the highest nickel grades. Higher copper grades correspond with bands of chalcopyrite distributed within the massive sulphides, as well as chalcopyrite-rich veins and stringers at the base of the thickest accumulation of massive sulphides.

Level 1, 34 Colin Street, West Perth, Western Australia, 6005

ASX ANNOUNCEMENT

ASX:AZS

For personal use only

Figure 2: Andover Project - schematic geology

Figure 3: Geological map of the Andover Deposit and surroundings

Level 1, 34 Colin Street, West Perth, Western Australia, 6005

T [phone] | F [phone] | [e-mail] 46 106 346 918 | ASX AZS

ASX ANNOUNCEMENT

ASX:AZS

SAMPLING AND SUB-SAMPLING TECHNIQUES

For personal use only

Diamond drill core was sawn in half or quarter using a core saw. All samples were half or quarter core and were collected from the same side of the core using industry standard practices. Sample preparation, following standard industry practice, was undertaken at Bureau Veritas Minerals, Canning Vale laboratory, where the samples received were sorted and dried. Primary preparation crushed each whole sample to 10mm and then to 3mm. The samples were then split with a riffle splitter to obtain a sub-fraction which was pulverised via robotic pulveriser. The resultant pulverised material was placed in a barcoded sample packet for analysis. The barcoded packet is scanned when weighing samples for their respective analysis. Internal screen QA/QC is done at 90% passing 75um.

RC drill chip samples were collected by spear/tube techniques to achieve sample weights between three to five kilograms for laboratory submission. Sub-sampling of RC drill chips was undertaken using a riffle splitter to obtain samples for pulverisation.

The sample sizes are considered appropriate to the grain size of the material being sampled.

SAMPLE ANALYSIS METHODS

Diamond drill core samples underwent sample preparation and analysis by Bureau Veritas Minerals, Canning Vale laboratory in Perth. For drill holes up to and including ANDD0039 a 30-element suite, which is included in full in JORC 2012 - Table 1, was analysed by ICPES following a four-acid digest (Bureau Veritas methods ICP102/ ICP103). Additionally, 40g charge fire assays were included (Bureau Veritas method FA002) for Au, Pt, Pd.

Later holes were analysed for a 54-element suite, which is included in full in JORC 2012 - Table 1, by XRF fusion with pre-oxidation using 66:34 flux containing 10% LiNO3 added, followed by fused bead laser ablation ICPMS (Bureau Veritas methods XRF202 and LA101).

Certified analytical standards, blanks and duplicates were inserted at appropriate intervals for diamond drill samples with an insertion rate of >4%. All QA/QC samples displayed results within acceptable levels of accuracy and precision.

RC samples were submitted for sample preparation and analysis at MinAnalytical in Perth.

Samples were analysed for a 30 element suite by ICP/OES following a four acid digest and fire assay for precious metals (Au, Pt, Pd).

All these analysis techniques are considered a total digest for all relevant minerals.

ESTIMATION METHODOLOGY

The Mineral Resources were estimated by ordinary kriging (OK) within twenty estimation domains that represented disseminated, blebby, veinlet, matrix, and massive sulphide mineralisation. The primary sulphide mineralised zone was modelled in Leapfrog Geo using a nominal grade cut-off of 0.2% Ni+Cu and 1% S. The primary mineralised zone averages 30m wide and varies from 10m up to 50m in the thickest parts. The primary mineralisation zone was modelled to include upper, middle, and lower sulphide units using nominal grade cut-offs of 0.5% Ni and 3% S. The three sulphide units are separated by internal waste and low-grade disseminated mineralisation <0.5% Ni. High-grade subdomains were modelled using a nominal grade cut-off of 1.5% Ni and 10% S as several zones within the primary upper and lower sulphide

Level 1, 34 Colin Street, West Perth, Western Australia, 6005