Azure Minerals : Andover Continues to Grow with VC-23 Ni-Cu Mineralisation

ASX RELEASE

7 APRIL 2021

ANDOVER CONTINUES TO GROW

Significant Nickel-Copper Mineralisation

Confirmed at VC-23 Prospect

• Massive, semi-massive and matrix nickel-copper(Ni-Cu) sulphides intersected in multiple holes:
• • 5.8m @ 1.12% Ni and 0.71% Cu from 69.6m in ANDD0009
  • 4.0m @ 1.69% Ni and 0.21% Cu from 32.7m in ANDD0011, including:

1.3m @ 3.51% Ni and 0.21% Cu from 32.7m

• • 7.0m @ 1.35% Ni and 0.45% Cu from 95.0m in ANDD0012, including: 2.7m @ 2.29% Ni and 0.48% Cu from 96.0m
  • 4.4m @ 1.17% Ni and 0.61% Cu from 84.6m in ANDD0013
  • 4.0m @ 1.02% Ni and 0.49% Cu from 92.3m in ANDD0016
  • 0.6m @ 1.30% Ni and 0.37% Cu from 85.1m in ANDD0017
• Good continuity of nickel and copper sulphide mineralisation demonstrated over >200m x 100m with mineralisation open in all directions
• Further drilling planned at VC-23 when heritage clearances granted
• Two diamond rigs continue drilling at VC-07, returning multiple visual Ni-Cu sulphide intersections; assays pending for a further 18 completed drill holes

Azure Minerals Limited (ASX: AZS) ("Azure" or "the Company") is pleased to confirm that sulphide

mineralisation observed in diamond drilling at the VC-23 target (refer ASX: 22 January and 8 February 2021) in the Andover Ni-Cu Project (60% Azure / 40% Creasy Group) returned significant nickel and copper assays.

Azure Managing Director, Mr. Tony Rovira said: "We've started 2021 at Andover with strong momentum on several fronts. Drilling continues to expand the substantial body of Ni-Cu sulphide mineralisation at VC-07, while our first reconnaissance drilling on another high priority target has resulted in a new discovery of significant nickel and copper sulphides at VC-23. Furthermore, the Company's ongoing geophysical exploration continues to identify more prospective targets for drilling, demonstrating the highly prospective character of the entire Andover project.

"The new VC-23 discovery is wide-open for further expansion with the mineralisation remaining open in all directions. The downhole electromagnetic (DHTEM) surveying identified multiple off-hole EM conductors that will be a major focus for the next round of drilling. With the sulphide mineralisation being remobilised from a primary source, we believe that VC-23 could potentially host a mineralised system similar to that at VC-07."

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

VC-23 PROSPECT

Ten high priority surface fixed-loop electromagnetic (FLTEM) and DHTEM conductor anomalies have been identified within the Andover Project (see Figure 1). VC-23 is the second of these targets to be drill tested as part of Azure's ongoing nickel exploration program, following on from the very successful discovery of a substantial body of Ni-Cu sulphide mineralisation at VC-07.

Figure 1: Andover Ni-Cu Project - plan showing identified geophysical (FLTEM / DHTEM) targets

Eight diamond drill holes (ANDD0009 to 0013, 0016 to 0018) were completed at VC-23 for 1,105.9m (see Figure 2). All holes targeted modelled locations of EM conductor plates or interpreted down-dip extensions of those conductor plates.

Five drillholes (ANDD0009, 0011, 0013, 0016 and 0017) have defined a vertical section through the sulphide mineralisation highlighting multiple Ni-Cu sulphide lenses extending at a shallow dip to the east (Figures 2 and 3). Individual intervals of massive sulphide mineralisation returned peak results of 3.51% Ni and 2.69% Cu in ANDD0011, confirming the high tenor nature of the sulphide mineralisation.

Drilling on this section returned significant mineralised intersections, including:

• ANDD0009: 5.8m @ 1.12% Ni and 0.71% Cu from 69.6m downhole
• ANDD0011: 4.0m @ 1.69% Ni and 0.21% Cu from 32.7m downhole
• ANDD0013: 4.4m @ 1.17% Ni and 0.61% Cu from 84.6m downhole
• ANDD0016: 4.0m @ 1.02% Ni and 0.49% Cu from 92.3m downhole
• ANDD0017: 0.6m @ 1.30% Ni and 0.37% Cu from 85.1m downhole

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 2: VC-23 showing drill holes, accumulation of EM conductor plates and A-AA cross section

Figure 3: A-AA cross section showing drill holes and interpreted mineralised zone

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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ANDD0012 targeted an off-hole EM conductor plate located southeast of VC-23 that was modelled from a DHTEM survey in a historical hole that failed to intersect mineralisation. Azure's drill hole intersected significant quantities of Ni-Cu sulphides coincident with the modelled location of the conductor plate, returning an overall mineralised intersection of 7.0m @ 1.35% Ni and 0.45% Cu from 95.0m downhole. Within this is a zone of continuous massive and semi-massive sulphides returning 2.7m @ 2.29% Ni and 0.48% Cu.

The 100m-wide area between the massive and semi-massiveNi-Cu sulphides intersected in ANDD0012 and the continuous horizon of sulphide mineralisation intersected in holes ANDD0009, 0010, 0011, 0013, 0016 and 0017 (see Figure 2) remains undrilled. The relationship of these two mineralised zones is yet to be determined, however DHTEM modelling indicates significant EM conductance, suggesting the presence of one or more sulphide mineralised zones in this central area.

All eight holes drilled to date at VC-23 intersected visual Ni-Cu sulphide mineralisation, including six holes returning significant mineralised intersections, defining an interpreted east-westdown-dip mineralised extent in excess of 200m, with mineralisation remaining open in all directions.

Follow-up DHTEM surveys have been completed in all holes drilled at VC-23.In-hole EM conductors are present in each hole in association with the intersected sulphide mineralisation. Additional strong off-hole conductors have been identified down-dip to the northeast, east and southeast from the mineralised intersections, confirming excellent potential for the next phase of exploration drilling to significantly expand the VC-23 mineralisation.

MOVING FORWARD

Textural characteristics of the sulphide mineralisation at VC-23, including the linear orientation of the sulphide grains, the presence of cross-cutting chalcopyrite veinlets, and the sheared outer contacts of the mineralised zones, indicate that the VC-23 sulphides have been remobilised from a primary source to the current near-surface location. This is a similar situation to VC-07 where drilling has demonstrated that near- surface sulphides have been remobilised from a deep primary source.

To assist with further drill targeting at VC-23, Azure is undertaking geochemical studies, geophysical surveying, and modelling of the electromagnetic conductors to assist with tracing this remobilised mineralisation back to the original source deposit.

While downhole EM surveys are an excellent targeting tool for individual drill holes, they have limited spatial reach and often don't present the "big picture" potential.

In order to provide prospect-wide EM coverage at VC-23, an extensive, deep-seeking surface FLTEM survey utilising large (600m x 600m) loops will be undertaken as soon as practicable to cover the drilled area and further to the east to define conductors representing along-strike and down-dip mineralised extensions. Additional diamond drilling will then be undertaken to test these conductor targets.

Elsewhere on Andover, Azure's regional exploration program will continue through 2021, comprising surface, downhole and airborne geophysical surveys, with follow-up diamond core and Reverse Circulation (RC) drilling undertaken when heritage clearances of those sites have been finalised.

Meanwhile, diamond drilling continues at VC-07 with two rigs actively exploring the down-dip and western strike extensions of the Ni-Cu mineralised system, and a third rig scheduled to commence in April. An update on drilling progress at VC-07 is expected shortly.

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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Table 1: Significant mineralised intersections at VC-23

				DEPTH (m)			INTERCEPT						GRADE
	HOLE No							ESTIMATED TRUE
			FROM	TO		LENGTH (m)			WIDTH (m)			Ni (%)	Cu (%)	Co (%)
	ANDD0009	42.1	42.8		0.7		0.5		1.00	0.66	0.06
			46.4	47.4		1.0		0.7		0.49	0.31	0.03
			65.8	67.1		1.3		0.9		1.17	0.29	0.07
			69.6	75.4		5.8		4.2		1.12	0.71	0.06
	incl	73.1	73.8		0.7		0.5		2.65	0.07	0.14
	ANDD0010							No Significant Assays
	ANDD0011	4.0	8.6		4.6		4.6		1.12	0.46	0.06
	incl	7.6	8.6		1.0		1.0		2.30	0.22	0.11
			32.7	36.7		4.0		4.0		1.69	0.21	0.08
	incl	32.7	34.0		1.3		1.3		3.51	0.21	0.16
			39.7	40.0		0.3		0.3		1.79	0.55	0.09
			40.9	41.3		0.4		0.4		1.14	1.82	0.06
			51.6	52.0		0.4		0.4		1.47	0.42	0.08
			57.6	58.1		0.5		0.5		1.08	0.23	0.07
	ANDD0012	87.6	88.0		0.4		0.3		1.08	0.26	0.06
			92.2	92.5		0.3		0.25		1.02	0.07	0.06
			95.0	102.0		7.0		6.0		1.35	0.45	0.08
	incl	96.0	98.7		2.7		2.3		2.29	0.48	0.13
	or	95.7	100.3		4.6		3.9		1.82	0.43	0.10
	ANDD0013	84.6	89.0		4.4		4.4		1.17	0.61	0.06
	incl	85.9	88.2		2.3		2.3		1.60	0.75	0.09
	ANDD0016	60.6	61.5		0.9		0.8		0.87	0.08	0.04
	incl	61.0	61.3		0.3		0.3		1.53	0.06	0.07
			92.3	96.3		4.0		3.6		1.02	0.49	0.06
	incl	92.3	93.8		1.5		1.4		1.66	0.54	0.09
	ANDD0017	84.1	88.3		4.2		2.7		0.60	0.35	0.02
	incl	85.1	85.7		0.6		0.4		1.30	0.37	0.05
	ANDD0018	110.5	111		0.5		0.4		1.00	1.13	0.05

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 [phone] | F [phone]

ABN 46 106 346 918 | ASX AZS

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