Successful Resource Drill-Out Campaign Nearing Completion

HIGHLIGHTS:

• Wide zones of high-grade zinc & lead mineralisation intersected, including:
  • OPDH-004 6.9m @ 13.1% Zn+Pb from 42.2m
  • OPDH-007 4.3m @ 11.4% Zn+Pb from 25.2m
  • OPDH-008 16.6m @ 18.2% Zn+Pb from 21.2m
  • OPDH-012 5.4m @ 12.9% Zn+Pb from 2.6m
  • OPDH-015 6.4m @ 16.3% Zn+Pb from 1.5m
  • OPDH-019 3.9m @ 14.7% Zn+Pb from 15.7m
• Width and grade of mineralised zone is meeting Management’s expectations and mineralisation remains open
• 62 holes drilled for 3,661m – second half of resource drill-out program progressing well
• Samples for 43 holes have been submitted for analysis, with assays received for 19 of these holes – further results are expected shortly
• Azure remains on track to deliver high grade zinc-lead maiden mineral resource estimate by March-April 2018

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to report that diamond drilling is intersecting significant widths of high grade zinc and lead mineralisation on its flagship Oposura Project (“Oposura”), located in the northern Mexican state of Sonora (see Figure 1).

Commenting on the drilling campaign, Azure’s Managing Director, Mr Tony Rovira said, “The mineralised intercepts we are seeing are confirming the overall size potential and the internal continuity of the Oposura deposit. Particularly pleasing is that where we intersect massive sulphides, the high tenor of those sulphides is returning very high grades of zinc and lead, and with many of the holes intersecting large mineralised widths, the results are demonstrating positive signs for the mining studies currently underway.

“Drilling is proceeding smoothly and is on time to be completed in February next year, enabling a maiden mineral resource estimate to be released around March to April next year.”

DRILLING DETAILS

To date, 62 diamond drill holes have been completed for 3,661m. The drilling campaign to facilitate an initial JORC mineral resource estimate for Oposura is now more than half complete. Samples from 43 holes have been submitted to Bureau Veritas Laboratories in Vancouver, Canada for analysis, and assay results have been received for the first 19 holes.

Historically, more than 100 diamond drill holes were drilled by previous explorers at Oposura, with the majority intersecting significant zinc and lead mineralisation. Azure’s resource drill-out coincides with the previously drilled mineralised zone. Many of the Company’s holes are either “twinning” or are being drilled close to historical holes. To date, Azure has observed that its drill holes closely replicate the sulphide intercepts achieved in the historical holes, which provides confidence that a substantial resource will be confirmed.

Most of Azure’s holes along the easternmost part of the deposit have intersected fresh massive sulphides within 10 metres of surface. This is consistent with sampling of near surface mineralisation in the historical underground workings and augurs well for an initial open pit mining operation in this area.

The Company is aiming to conclude the resource drill-out in February 2018 and to complete the Company’s maiden mineral resource estimate by March-April 2018. Once the current resource drill-out program is complete, drilling will continue to expand the area of currently defined mineralisation and, ultimately, the resource, and to explore for repetitions and extensions of the mineralised zones elsewhere within the property.