Azure Minerals : Exploration Commences for 2022

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ASX RELEASE

20 JANUARY 2022

EXPLORATION UPDATE

BARTON GOLD PROJECT (100% Azure)

• Initial 3,000m Reverse Circulation drilling program is underway
• Target is gold mineralisation at Daisy Corner, immediately adjacent to Genesis Minerals' new Puzzle North gold discovery
• Reconnaissance aircore drilling program to follow up untested, soil- covered structurally-controlled gold targets

ANDOVER NICKEL-COPPER PROJECT (60% Azure / 40% Creasy Group)

• Diamond drilling has recommenced focused on defining the nickel- copper (Ni-Cu) sulphide mineralisation at VC-07 West
• Additional drilling at Skyline and VC-23 will delineate Ni-Cu sulphide zones and test other regional targets such as VC-18 and VC-41

Azure Minerals Limited (ASX: AZS) ("Azure" or "the Company") is pleased to announce that the Company has commenced its maiden drilling program at the Barton Gold Project, located in the world- class Leonora-Laverton gold province of Western Australia's Eastern Goldfields. The initial 3,000m Reverse Circulation (RC) drilling program will target extensions of Genesis Minerals' new gold discovery at Puzzle North.

Azure is also pleased to announce that diamond drilling has restarted on its flagship Andover Nickel- Copper Project, located in the West Pilbara region of WA, following the Christmas break.

BARTON GOLD PROJECT

Azure holds 100% ownership of a large strategic landholding (see Figure 1) in the gold-rich Kookynie Gold District (ASX: 4 October 2021 for details). This sizeable land package hosts numerous prospective, yet under-explored mineralised trends covering greenstone belts, adjacent granite margins and favourable structural settings that are considered highly prospective for hosting significant gold mineralisation.

Barton is adjacent to several growing gold deposits and significant gold projects, including:

• Genesis Minerals Ltd (ASX: GMD): Ulysses Gold Project (1,608,000oz gold resource);
• Genesis' Puzzle North gold discovery which adjoins Azure's southern tenement boundary; and
• Saturn Metals Ltd (ASX: STN): Apollo Hill Gold Project (944,000oz gold resource).

Azure's first drill program at Barton has started with 3,000m of RC drilling following up historical gold intersections at Daisy Corner and testing for northern extensions of the gold mineralisation drilled by Genesis Minerals at Puzzle North (see Figure 2).

1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T [phone] | F [phone]

ABN 46 106 346 918 | ASX AZS

www.azureminerals.com.au

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Figure 1: Barton Project with underlying geology and gold occurrences

As reported by Genesis Minerals (ASX: Quarterly Report dated 26 October 2021), gold mineralisation at Puzzle North is hosted by granite immediately adjacent to an east-dippinggranite-greenstone contact. The mineralisation is associated with quartz veining within hematite-sericite altered granite in a zone 40m to 100m wide which dips east parallel to the granite-greenstone contact and extends for over 600m in a northerly direction towards Azure's tenement.

Multiple holes drilled by previous explorers at Daisy Corner intersected anomalous gold mineralisation in mafic rocks to the east of the granite-greenstone contact, with a best result of 7m @ 1.26g/t Au from 42m in hole YAB13 (ASX: 4 September 2020). This drilling was restricted to the mafic rocks with no drill holes testing the potentially mineralised granite to the west of the granite-greenstone contact (see Figure 3).

1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T [phone] | F [phone]

ABN 46 106 346 918 | ASX AZS

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Azure's initial 20 hole / 3,000m RC drilling program is focused on testing along-strike extensions of the Puzzle North granite-hosted gold mineralisation, with the first holes collared immediately to the north of the Azure-Genesis tenement boundary (see Figure 3).

Figure 2: Barton Project showing areas of gold prospectivity on E40/393

1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T [phone] | F [phone]

ABN 46 106 346 918 | ASX AZS

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Figure 3: Area of initial gold drilling at Daisy Corner

Following the initial RC drilling at Daisy Corner, Azure will then undertake an aircore drilling program on E40/393 to test under the extensive soil cover for structurally-controlled,bedrock-hosted gold mineralisation associated with cross-cutting shears and fault zones identified by the aeromagnetic survey (see Figure 2). Importantly, extensions of some of these structures host significant gold mineralisation on neighbouring properties, which augurs well for Azure's exploration.

1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T [phone] | F [phone]

ABN 46 106 346 918 | ASX AZS

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ANDOVER NICKEL-COPPER PROJECT

As the Company previously announced (ASX: 9 December 2021), drilling at the VC-07 West mineralised system has intersected several zones containing nickel and copper sulphide mineralisation. Importantly, these mineralised zones coincide with the modelled locations of electromagnetic (EM) conductors identified by surface fixed-loop and downhole EM surveys.

To date, two separate zones of massive, semi-massive and matrix Ni-Cu sulphides have been identified at VC-07 West, with several recent holes intersecting significant visible mineralisation. Assays for these holes are awaited however an earlier hole, ANDD0045, returned high grades of nickel and copper mineralisation in both zones (ASX: 2 August 2021), including:

ANDD0045:	4.5m	@ 3.95% Ni, 0.80% Cu and 0.16% Co from 486.6m downhole; and
	3.4m	@ 2.01% Ni, 0.43% Cu and 0.09% Co from 605.2m downhole;

Drilling is continuing at VC-07 West to define these mineralised zones and potentially move into a mineral resource drill-out phase.

Figure 4: Locations of VC-07 West drilling and VC-07 East Ni-Cu Sulphide Deposit

1. Level 1, 34 Colin Street, West Perth, Western Australia, 6005 T [phone] | F [phone]

ABN 46 106 346 918 | ASX AZS

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