Azure Minerals : Andover Ni-Cu Project Drilling Update

ASX RELEASE

16 FEBRUARY 2021

ANDOVER Ni-Cu PROJECT DRILLING UPDATE

Azure Minerals Limited (ASX: AZS) ("Azure" or "the Company") is pleased to provide an update on the Company's ongoing drilling campaign at the VC-07 prospect ("VC-07") at the Andover Ni-Cu Project (60%

Azure / 40% Creasy Group), located in the West Pilbara region of Western Australia.

Drilling since the Christmas break has further extended the along-strike and down-dip mineralised limits of the nickel-copper ("Ni-Cu") sulphide mineralisation associated with VC-07. In addition, assay results from VC-07 have been received for drill hole ANDD0007 (refer ASX 21 December 2020)

The work program at Andover continues with two rigs drilling on VC-07, while a third rig has completed the eighth and final hole of the initial reconnaissance drilling on the shallow and potentially extensive Ni-Cu sulphide mineralisation recently discovered at the VC-23 prospect (refer ASX 22 January 2021 and 08

February 2021) (see Figure 1). Downhole and surface geophysical surveys are underway at VC-07 and VC-23 to better define additional drill targets.

VC-07 HIGHLIGHTS:

• • Three new drill holes (ANDD0008, ANDD0014 and ANDD0015) completed with ANDD0014 and ANDD0015 intersecting significant Ni-Cu sulphide mineralisation.

• • Assay results returned from ANDD0007 (refer ASX 21 December 2020) include:

  •  1.5m @ 2.07% Nickel and 1.39% Copper from 261.2m;

  •  8.5m @ 1.33% Nickel and 0.42% Copper from 406.0m; which includes:

    •  2.7m @ 2.47% Nickel and 0.67% Copper from 408.0m;

  •  0.5m @ 3.07% Nickel and 0.13% Copper from 429.0m.

  •  The overall mineralised interval in ANDD0007 returned a broad 27.6m @ 0.80% nickel and 0.32% copper from 402.0m.

• • ANDD0014 intersected a 21.5m-wide mineralised interval containing multiple zones of Ni-Cu sulphide mineralisation from 455.3m down hole including:

  •  1.1m of massive and semi-massive Ni-Cu sulphides from 455.3m;

  •  1.1m of semi-massive Ni-Cu sulphides from 457.8m;

  •  1.5m of heavily disseminated and matrix Ni-Cu sulphides from 466.0m; and

  •  2.9m of semi-massive Ni-Cu sulphides from 473.9m.

• • ANDD0015 intersected two separate zones of Ni-Cu sulphide mineralisation including:

  •  2.9m of massive, matrix and disseminated Ni-Cu sulphides from 369.6m;

  •  18.5m of semi-massive, matrix and heavily disseminated Ni-Cu sulphides from 432.7m; and

  •  2.8m of matrix Ni-Cu sulphides from 462.6m.

• • Drilling confirms strong Ni-Cu sulphide mineralisation over a strike length of >200m of the 1,050m-long EM anomaly, with two rigs continuing to drill along-strike and down-dip extensions.

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

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Photo 1: ANDD0014 drill core Massive Ni-Cu sulphides @ 456.1-456.3m downhole

Photo 2: ANDD0015 drill core Semi-massive Ni-Cu sulphides @ 369.8-370.1m downhole

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

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

ANDOVER - VC-07 PROSPECT

Azure has completed ten diamond drill holes for a total of 4,266m at the VC-07 prospect (see Figure 2), identifying a body of mineralisation which remains open along-strike and at depth.

Recent drilling has intersected significant Ni-Cu sulphide mineralisation which extends the known limits of the mineralised zone along-strike to the west and down-dip, with the mineralisation remaining open in those directions. In addition, assay results have been received for hole ANDD0007 (refer ASX 21 December 2020).

Figure 2: Target VC-07 showing EM conductor plates, drill holes and cross sections

Three new drill holes, ANDD0008, ANDD0014 and ANDD0015, have been completed at VC-07 since drilling re-started following the Christmas break. ANDD0008 and ANDD0014 targeted the VC-07 conductor plates approximately 100m along-strike to the west-northwest of ANDD0007, while ANDD0015 targeted the mineralised zone below holes ANDD0004, ANDD0005 and ANDD0006 (see Figures 3 and 4).

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

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Both ANDD0014 and ANDD0015 intersected significant intervals of massive, semi-massive, matrix and disseminated Ni-Cu sulphides, while ANDD0008 has possibly drilled over the top of the targeted conductor plate intersecting a narrow zone of weakly disseminated Ni-Cu sulphide mineralisation.

Figure 3: VC-07 B-BB cross section with mineralised intersections and EM conductor plates

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

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