Azure Minerals : Hits More Nickel and Copper Sulphides at Andover

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ASX RELEASE

21 DECEMBER 2021

ANDOVER DRILLING CONTINUES TO DELIVER MORE NICKEL & COPPER HITS

• Results continue to confirm strong internal continuity and extensions of high grade Ni-Cu mineralisation at VC-07 East deposit
• Shallow Ni-Cu sulphide mineralisation intersected to within 25m of surface
• Mineralisation still open along strike and to depths of >550m

• ANDD0091 (depth extension):
• • 5.0m @ 2.34% Ni, 0.39% Cu & 0.12% Co from 583.3m downhole
• ANDD0096 (near-surface infill):
• • 3.8m @ 2.84% Ni, 0.41% Cu & 0.12% Co from 94.7m downhole
  • 3.4m @ 2.98% Ni, 0.85% Cu & 0.12% Co from 101.7m downhole
• ANDD0099 (near-surface infill):
• • 22.1m @ 1.22% Ni, 0.83% Cu & 0.05% Co from 97.4m downhole; including:
  • 6.0m @ 3.05% Ni, 1.02% Cu & 0.11% Co from 97.4m downhole
• ANDD0101 (eastern extension):
• • 17.2m @ 1.97% Ni, 0.53% Cu & 0.09% Co from 278.8m downhole; including:
  • 4.9m @ 3.80% Ni, 0.53% Cu & 0.17% Co from 278.8m downhole; and
  • 3.6m @ 2.26% Ni, 0.41% Cu & 0.12% Co from 287.6m downhole
• ANDD0108 (near-surface infill):
• • 5.7m @ 2.04% Ni, 0.69% Cu & 0.09% Co from 50.0m downhole
• ANDD0109 (western extension):
• • 20.3m @ 1.51% Ni, 0.65% Cu & 0.07% Co from 267.9m downhole; including:
  • 7.5m @ 2.58% Ni, 0.50% Cu & 0.12% Co from 268.0m downhole
• ANDD0111 (depth extension):
• • 9.2m @ 1.37% Ni, 0.57% Cu & 0.06% Co from 524.4m downhole; including:
  • 2.4m @ 2.01% Ni, 0.57% Cu & 0.09% Co from 527.9m downhole

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 receipt of assay results from 21 drill holes completed as part of the mineral resource drill-out of the VC-07 East nickel- copper (Ni-Cu) sulphide deposit on the Andover Project (60% Azure / 40% Creasy Group), located in the West Pilbara region of Western Australia.

Since the discovery of VC-07 East just over 12 months ago, a total of 102 diamond holes have been drilled for 43,995m on the deposit. An additional 37 diamond holes have been drilled at other prospects on the greater Andover project area.

Analytical results have now been received for 92 holes at VC-07 East, up to and including hole ANDD0111, with assays for the remaining 10 holes scheduled to be delivered within the next month.

The maiden Mineral Resource Estimate for the VC-07 East deposit is expected to be delivered late in the first quarter of 2022.

Drilling has now been suspended for the Christmas - New Year period and is expected to resume on or about 10th January 2022.

Commenting on the Company's progress at Andover, Azure's Managing Director, Mr. Tony Rovira said: "It's very pleasing to report that our drilling continues to deliver strong and high-grademineralised intersections which reinforce the good internal continuity of Ni-Cusulphide mineralisation within the VC-07East deposit. Additionally, some of the holes drilled to define the boundaries of the mineralisation have returned good nickel and copper grades over significant widths, indicating the potential to further increase the overall dimensions of the deposit along strike and to greater depths.

"I thank the entire Azure team for their hard work and commitment in 2021, which has seen the Company undertake a large amount of exploration across the Andover Project and importantly, deliver significant success highlighted by multiple nickel-copper sulphide discoveries. We finish the year in a strong position, which includes a very healthy cash balance, and look forward to continue progressing Andover through the exploration, discovery, mineral resource and development study stages."

VC-07 EAST Ni-Cu SULPHIDE DEPOSIT

The VC-07 East deposit has been well defined, with an internal mineralised intersection spacing of approximately 50m x 50m over a continuous strike length of more than 300m and a continuous vertical extent exceeding 550m. Drilling confirmed excellent continuity of mineralisation within the deposit with a large proportion of the upcoming Mineral Resource Estimate expected to report to the Indicated Resource category which will enhance the robustness of the resource.

Assay results from the recent in-fill drilling returned widths and grades of Ni-Cu sulphide mineralisation in line with, or exceeding, expectations and confirmed excellent internal continuity of mineralised thicknesses and grades.

The extensional drilling was designed to identify external boundaries of the mineralised zones but, with several holes intersecting strong mineralisation around the edges, the VC-07 deposit remains open for further expansion to the east, west and at depth.

Encouragingly, shallow drilling at the eastern end of the deposit intersected Ni-Cu sulphide mineralisation within 25m of surface, beneath an extensive outcrop of nickel and copper-rich gossan which extends for several hundred metres further to the east and remains undrilled in this direction.

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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Figure 1: VC-07 East Ni-Cu deposit, VC-07 West target zones and locations of cross sections

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

ABN 46 106 346 918 | ASX AZS

3

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Figure 2: Stacked cross sections through VC-07 East Ni-Cu sulphide deposit looking from west (A-AA) through to east (D-DD)

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LOOKING FORWARD AT ANDOVER

The current drill program at the VC-07 East Ni-Cu sulphide deposit is complete and most assays have been received, with the remainder due by early January and modelling of the mineralised zones has started.

Azure's ongoing regional exploration program at Andover, comprising geological mapping, geochemical sampling, surface EM surveying and drilling, which is showing very promising results, will continue in 2022.

As recently announced (ASX: 9 December 2021), drilling at the VC-07 West mineralised system has returned multiple intersections of massive, semi-massive and matrix Ni-Cu sulphides. These mineralised zones coincide with the modelled locations of EM conductors identified by surface fixed- loop and downhole EM surveys. Drilling will continue at VC-07 West to define these mineralised zones and potentially move into a resource drill-out phase.

Numerous bedrock-hosted EM conductors representing high-priority drill targets have been identified by the regional program, including:

• Skyline, where Azure recently intersected multiple zones of Ni-Cu sulphide mineralisation in all three holes drilled (ASX: 9 December 2021);
• VC-23, where Azure has drilled eight diamond core holes, five of which intersected significant nickel and copper sulphide mineralisation (ASX: 22 January, 8 March and 7 April 2021);
• VC-18, which is represented by a 3.5 kilometre-long,bedrock-hosted EM conductor; and
• VC-41, which is an attractive geophysical target represented by two strong EM conductors. Drilling of these targets, and others on the property, will continue in 2022.

	-ENDS-
Authorised for release by the Board of Directors of Azure Minerals Limited.
	For enquiries, please contact:
Tony Rovira	Media & Investor Relations
Managing Director	Michael Weir / Cameron Gilenko
Azure Minerals Limited	Citadel-MAGNUS
Ph: [phone]	Ph: [phone]

or visitwww.azureminerals.com.au

COMPETENT PERSON STATEMENT

Information in this report that relates to Exploration Results for the Andover Project is based on information compiled by Graham Leaver, who is a Member of The Australasian Institute of Geoscientists and fairly represents this information. Mr Leaver has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Leaver is a full-time employee of Azure Minerals Limited and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Information in this report that relates to previously reported Exploration Results has been crossed-referenced in this report to the date that it was reported to ASX. Azure Minerals Limited confirms that it is not aware of any new information or data that materially affects information included in the relevant market announcements.

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