ASX: AZS 17 DECEMBER 2013 MORE COPPER SULPHIDE MINERALISATION INTERSECTED AT CASCADA HIGHLIGHTS

• Drilling extends the Cascada mineralised zone

• Four drill holes completed (1,052m)

• Significant amounts of copper sulphide mineralisation visually identified in all holes

• High-grade strike length extended to over 140m and down dip to over 150m – remains open to the west and at depth

• First assay results expected in early 2014

• Copper porphyry potential still yet to be tested in this program

Mexican-focused Azure Minerals Limited (“Azure” or “the Company”) is pleased to provide an update on the diamond drilling program underway on the Promontorio Copper Project located in the state of Chihuahua, Mexico.
To date, drill holes have been completed to the north, west and south of the Cascada deposit (see Figure 1). Each hole intersected significant visible copper sulphide mineralisation over widths similar to earlier Cascada intercepts. This has extended the central high grade zone of the deposit along strike to the west and down dip to the north.

size.”

The current drill program has been designed to test:

• around and beneath the Cascada copper deposit with the aim of expanding the mineralised zone and enabling a Mineral Resource to be estimated;

• an interpreted porphyry copper body beneath Cascada and Promontorio; and

• interpreted feeder zones connecting the buried porphyry body and the near- surface Cascada and Promontorio deposits.

The first two holes (APR-DD-106 & 107) successfully intersected the western strike extension of the strongly mineralised, central part of the deposit. The third hole, APR- DD-108, intersected the down-dip extension of the same zone. Drilling has now extended the strike length of the Cascada high grade mineralisation to over 140 metres and down dip to over 150 metres. Importantly, the high grade zone remains open to the west and down dip, providing potential for further extensions of the mineralisation in this area.
The fourth hole (APR-DD-109) reached 300m of the planned 500m total depth, and has been temporarily suspended until drilling recommences in the New Year. This hole is designed to test for southern extensions of the Cascada deposit and also the deeply buried porphyry copper target. Weak to strong copper sulphide mineralisation similar to Cascada has been visually identified in the upper part of this hole.
Geological logging and sampling of drill core from these holes is in progress with first assay results expected early in 2014.
As is customary in Mexico, drilling personnel have demobilised from Promontorio for the Christmas – New Year period. Drilling will recommence in early January with a further four to six holes planned to complete the current phase of this drilling program.

The Promontorio and Cascada copper-gold-silver deposits form separate parts of a high-sulphidation, epithermal system comprising massive, semi-massive and disseminated copper sulphides hosted in vuggy silica and silicified host rocks.
High sulphidation epithermal deposits form above porphyry copper bodies with feeder zones connecting the porphyry and the overlying epithermal system. These types of deposits are common in northern Mexico and south-western US.
Azure believes that beneath Cascada and Promontorio is a porphyry copper body which was the source of the copper, gold and silver mineralisation and is likely to be mineralised in its own right. This makes the Promontorio Project an exciting porphyry copper exploration target in addition to the high grade epithermal mineralisation already identified.
The Promontorio deposit contains a JORC-compliant (2004 Code) Mineral
Resource1 (see Table 1) of:

1 Details of the resources classification and estimation methodologies are contained in Azure’s ASX announcement, released on 10th May 2013.

TABLE 1: Promontorio Mineral Resource

For further information, please contact:

-ENDS-

Victoria Thomas

Six Degrees Investor Relations

Ph:+61 3 9645 7567

or visit www.azureminerals.com.au

Figure 1: Drill hole locations at Cascada

2 See Copper Equivalency Statement in Appendix to this report.

APPENDIX

TABLE 2: Drill Hole Information

Copper Equivalency Statement:

• Copper Equivalent (CuEq) was based on the following assumed metal prices that were guided by the three year averages at the data cut-off date: US$3.25/lb for Cu, US$1,450/oz for Au and US$27.50/oz for Ag.

• The CuEq grade accounts for the following metal recoveries, which were based on metallurgical testwork completed by independent metallurgical laboratories AMDEL and Ammtec, under the supervision of Coffey Mining Pty Ltd: 97.9% for Cu, 93.4% for Au, and 97% for Ag.

• The following formula was used to calculate the equivalent grade: CuEq (%) = (Cu%

x 0.979) + (Au (g/t) x 0.6077) + (Ag (g/t) x 0.0120)

• It is Azure’s belief that all elements included in the metal equivalent calculation have a reasonable potential to be recovered.

Competent Person Statement

The information in this report that relates to Exploration Results and Mineral Resources was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported, and is based on information compiled by Mr Tony Rovira, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Rovira is a full- time employee of Azure Minerals Limited. Mr Rovira has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004

Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Rovira consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.