Azure Minerals Ltd – Exploration Drilling Update

Mexican-focused Azure Minerals Limited (ASX: AZS) (Azure or the Company) is pleased to provide an update on the drilling programs currently underway at its Cascada and La Tortuga projects.

Key Points:

· Drilling progressing well at Cascada copper-gold-silver project with seven holes completed

· Visual inspection of Cascada core indicates the presence of sulphide mineralisation and sampling is in progress

· First set of Cascada assay results expected within four weeks

· La Tortuga drill hole is advancing within post-mineralisation cover rocks

· Further updates of developments from both projects anticipated in the coming weeks

Azures Managing Director, Tony Rovira, commented:

So far the Cascada drill program is progressing well. Whilst its only early days and being careful not to draw unrealistic conclusions from visual observations of the drill core, were pleased with what were seeing. Obviously we need to wait for the assays before final judgement is made and we will update shareholders accordingly.

CASCADA

The drilling program at Cascada is progressing well, with good daily production being recorded by the drilling contractor. Drilling is ongoing and to date, seven holes (APRDD-088 to APR-DD-094) have been completed for 1,081 metres.

The drill program, as currently planned, comprises 21 holes for approximately 2,800 metres, with 17 holes testing the Cascada zone on six, 20-metre spaced section lines. An additional four holes will test two extra targets identified to the northeast and northwest of Cascada. Planned locations and orientations for all drill holes are continually being reviewed and if considered necessary, modified.

Zones of sulphide mineralisation have been observed in each of the completed holes and geological logging and sampling of the core are underway. The first batch of samples will be despatched to the laboratory shortly and assay results are expected within the next four weeks.

The Cascada target is a zone of vuggy silica outcropping in a small valley. Surface sampling has revealed that this zone is anomalous in gold, however it contains low levels of copper. Previous drilling by Azure of hole APR-DD-087 indicates there is a zone of copper depletion extending from surface to a depth of approximately 30-40 metres where the copper sulphide mineralisation starts. Visually, this appears to

continue to be the case in recently completed the holes.

LA TORTUGA

Diamond drilling of the deep hole at La Tortuga is progressing, albeit slowly, in the overlying, post-mineralisation cover rocks, with the hole currently at a depth of 270 metres. Near surface, the cover rocks were fractured and required careful stabilisation as drilling proceeded through the zone. Ground conditions have improved with depth and the production rate is now averaging 60 metres per day.

The hole is targeting a strong gravity anomaly which may represent a deeply buried porphyry copper or IOCG (Iron Oxide Copper Gold) mineralised body. Based upon three dimensional modelling of the gravity data, Azure expects that the hole will drill through approximately 500 metres of post-mineral cover rocks before reaching the target zone hosted in basement rocks. A hole depth of 1,000 metres is targeted.

Azures 100%-owned La Tortuga project is being explored in joint venture (JV) with Japanese government corporation JOGMEC (Japan Oil, Gas and Metals National Corporation). Under the terms of the JV, JOGMEC has the right to earn a 51% in La Tortuga by spending US$3.0 million. Total expenditure to date is approximately US$2.8 million. Azure is the operator and manager of the JV.

For further information, please contact:

Tony Rovira

Managing Director

Azure Minerals Limited

Ph: +61 8 9481 2555

Press / Investor Relations

Hannah Ritchie / Victoria Thomas

Six Degrees Investor Relations

Ph:+61 3 9645 7567

or visit www.azureminerals.com.au

About the Company:

Azure Minerals Limited is an Australian mineral exploration company focused on developing mining projects in the richly mineralised Sierra Madre Occidental mining province in northern Mexico. Azures key projects are the high grade Promontorio and Cascada copper-gold-silver deposits and the La Tortuga copper project.

Competent Person Statement:

Information in this document that relates to Exploration Results 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 documents of the matters based on his information in the form and context in which it appears.

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