Azure Minerals : Makes New Discovery at Andover

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ASX RELEASE

9 DECEMBER 2021

NEW MINERALISED ZONE DISCOVERED AT ANDOVER

DISCOVERY: Ni-Cu sulphides intersected at new Skyline prospect VC-07 WEST: More intersections of massive Ni-Cu sulphides

SKYLINE:

First three drill holes intersect nickel and copper sulphide-rich mineralisation coincident with electromagnetic (EM) conductors

• ANDD0129:
• • 7.4m of disseminated Ni-Cu sulphides from 55.5m
  • 6.4m of disseminated Ni-Cu sulphides from 64.2m
  • 6.7m of disseminated Ni-Cu sulphides from 81.4m
• ANDD0131:
• • 2.9m of disseminated Ni-Cu sulphides from 70.0m
  • 1.8m of disseminated Ni-Cu sulphides from 73.8m
• ANDD0132:
• • 2.6m of disseminated Ni-Cu sulphides from 106.8m
  • 13.7m of blebby and disseminated Ni-Cu sulphides from 115.2m

VC-07 WEST:

Significant intersections of Ni-Cu sulphide mineralisation with portable XRF confirming massive sulphide zones contain high grades of nickel and copper

Sulphide-rich zones coincide with strong and extensive downhole EM conductors Drilling is continuing to test mineralised extensions and EM conductors

• ANDD0128:
• • 2.0m massive to disseminated Ni-Cu sulphides from 245.8m
  • 6.2m of massive and semi-massiveNi-Cu sulphides from 539.5m (see Images 1 and 2)
  • 4.8m of semi-massive to heavily disseminated Ni-Cu sulphides from 546.7m
• ANDD0127:
• • 0.9m of massive to matrix Ni-Cu sulphides from 356.6m
  • 3.2m of disseminated Ni-Cu sulphides from 357.5m
  • 4.9m of disseminated Ni-Cu sulphides from 371.0m
• ANDD0126:
• • 0.8m of matrix and heavily disseminated Ni-Cu sulphides from 389.3m
  • 21.9m of cloud Ni-Cu sulphides from 390.1m
  • 0.3m of matrix Ni-Cu sulphides from 412.0m

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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Azure Minerals Limited (ASX: AZS) ("Azure" or "the Company") is pleased to announce that the Company's ongoing diamond drilling program has discovered a new zone of Ni-Cu sulphide mineralisation at the Skyline prospect located approximately 300m to the west of the VC-23 prospect, whilst also intersecting substantial massive nickel and copper sulphide mineralisation in the VC-07 West mineralised system; as part of the Andover Project (60% Azure / 40% Creasy Group) located in the West Pilbara region of Western Australia.

Image 1: Enriched copper sulphide interval (chalcopyrite - golden colour) hosted within 6.2m-wide zone

of massive and semi-massive nickel and copper sulphides in hole ANDD0128 at VC-07 West

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

ABN 46 106 346 918 | ASX AZS

2

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Commenting on Azure's latest exploration successes at Andover, Managing Director, Mr. Tony Rovira said: "We're very pleased that our regional exploration drilling has got off to such a great start with a new Ni-Cusulphide discovery made at the Skyline prospect. The first three holes all intersected Ni-Cusulphide mineralisation coinciding with EM conductors, confirming that on the Andover Project, electrical conductance continues to be associated with sulphide mineralisation.

"Meanwhile our drilling continues to intersect substantial Ni-Cu sulphide mineralisation within the VC-07 mineralised corridor, with the latest massive sulphide intersections at VC-07 West also coinciding with electromagnetic conductors. With multiple mineralised drill hits and extensions of the EM conductors that have yet to be drilled, VC-07 West looks promising for hosting significant Ni-Cu sulphide mineralisation."

Image 2: Massive nickel-copper sulphide mineralisation in hole ANDD0128 at VC-07 West

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 DIAMOND DRILLING PROGRAM

To date, 133 diamond drill holes have been completed on the Andover Project for a total of 58,808m, with 102 holes drilled at VC-07 East, 20 holes at VC-07 West, 8 holes at VC-23 and 3 holes at Skyline (see Figure 1 for prospect locations).

Two diamond drill rigs are currently drilling on VC-07 West while a third rig, having completed drilling the three holes at Skyline, is now drilling on the VC-18 East EM anomaly.

Figure 1: Andover geological plan showing locations of VC-07 East Ni-Cu deposit and other targets

SKYLINE DRILLING

The Skyline target is represented by two shallow (<100m below surface), overlapping EM conductor plates identified by surface fixed loop EM surveying. Geophysical modelling indicates the plates are of moderate conductance, with dimensions of approximately 200m (north-south) x 50m (east-west), are sub-horizontal with a shallow southerly dip, and are potentially open to the southwest.

Azure's initial drilling program at Skyline comprised three diamond drill holes (see Figure 2) for a total of 595.5m. The holes targeted the EM conductor plates and all three holes intersected intervals of nickel and copper sulphide mineralisation at the modelled depths.

The holes have been sampled and assays are awaited.

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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For personal use only

Figure 2: Drill holes and EM targets at Skyline and VC-23Ni-Cu prospects ANDD0129 intersected:

1. 7.4m of disseminated Ni-Cu sulphides from 55.5m; and o 6.4m of disseminated Ni-Cu sulphides from 64.2m; and o 6.7m of disseminated Ni-Cu sulphides from 81.4m

ANDD0131 intersected:

1. 2.9m of disseminated Ni-Cu sulphides from 70.0m o 1.8m of disseminated Ni-Cu sulphides from 73.8m

ANDD0132 intersected:

1. 2.6m of disseminated Ni-Cu sulphides from 106.8m; and

1. 13.7m of blebby and disseminated Ni-Cu sulphides from 115.2m

These mineralised intervals coincide with the EM conductors identified by the surface EM surveys, once again confirming that the presence of EM conductance is a very strong indicator for the presence of nickel and copper sulphide mineralisation in the Andover intrusive complex.

Downhole EM surveying in these three holes will be undertaken to better define the extent and substance of the conductor plates and the mineralised system, which will guide the next phase of drilling at Skyline.

Geological mapping of the surface outcrop above the Skyline EM conductor indicates it is situated in a mixed sequence of mafic and ultramafic rocks, which are similar to the rocks that host the VC-23Ni-Cu sulphide mineralisation located approximately 300m to the east.

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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