Key Points:

• Four diamond core holes completed at Loma Bonita ad Puerto del Oro, with assay results currently awaited
• Silicification, brecciation, alteration and sulphide mineralisation identified
• Drilling is continuing

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to advise that drilling at the Company’s Alacrán Project is progressing well, with four holes completed for 1,177m of a planned 2,500m in this phase of drilling.

The four holes are situated along the Loma Bonita ridge (as shown in Figure 1) and were designed to follow-up geophysical and geochemical anomalies previously identified by Azure’s exploration. Sampling and assaying of these holes is in progress and an initial summary of each hole is given below:

Drill Hole MDPD-006: located between Loma Bonita and Puerto del Oro and designed to test coincident chargeability and resistivity anomalies identified in Azure’s Induced Polarisation (IP) survey (ASX: 2 July 2015). The hole was drilled to 231m by Reverse Circulation (RC) drilling and then re-entered and extended to 539m by diamond core drilling. The hole was drilled in silicified dacite (a volcanic rock) and hydrothermal breccias. Variable, and in some locations, significant quantities of disseminated pyrite are contained in the breccia matrix, which may explain the geophysical anomalies.

Drill Hole MDPD-007: a vertical hole mid-way along the Loma Bonita ridgeline to test outcropping silicified volcanic rocks and vuggy silica which returned strongly anomalous gold and silver grades, up to 2.4g/t gold and 100g/t Ag from rock chip and soil sampling (ASX: 16 & 21 October 2015). Near-surface, the hole drilled through approximately 15-20m of silica-rich rocks before passing into an intermixed zone of iron-rich, silicified dacite and breccias. Variable amounts of pyrite and iron oxides after sulphides were noted in the breccia matrix and in the clasts.

Drill Holes MDPD-008 & 009: two angled holes located at the northern end of the Loma Bonita ridge designed to test outcropping vuggy silica that occurs as both shallow east-dipping strata and steeply dipping, north-easterly trending “ribs”. Outcrop sampling in this area returned grades up to 369g/t silver and 1.2g/t gold from the vuggy silica. Both holes drilled through siliceous rocks in the near-surface zone, and then into hydrothermal breccia.

Samples from these holes are being collected and dispatched to the laboratory, and assay results will be released when they become available.