SAMPLE NUMBER

SAMPLE TYPE

SAMPLE LENGTH

(m)

EAST (mE)

NORTH (mN)

ELEVATION (mASL)

GRADE Ag (g/t)

ALR-1695

Chip-Channel

4.5

571871

3415277

1594

32.5

ALR-1696

Chip-Channel

3.4

571883

3415308

1585

33.6

ALR-1697

Chip-Channel

3.4

571938

3415301

1577

40.8

ALR-1698

Chip-Channel

3.6

571844

3415288

1595

59.8

ALR-1699

Chip-Channel

4.0

571812

3415321

1587

16.0

ALR-1700

Chip-Channel

4.5

571769

3415322

1579

12.4

ALR-1701

Chip-Channel

3.9

571778

3415295

1584

108.6

ALR-1702

Chip-Channel

5.0

571774

3415358

1575

35.0

ALR-1703

Chip-Channel

4.8

571827

3415400

1571

48.8

ALR-1704

Chip-Channel

4.3

571866

3415456

1558

11.5

ALR-1705

Chip-Channel

4.0

571854

3415351

1577

22.6

ALR-1706

Chip-Channel

5.7

572106

3415129

1582

20.0

ALR-1707

Chip-Channel

3.6

572071

3415136

1586

11.3

ALR-1708

Chip-Channel

3.3

572071

3415170

1575

105.7

ALR-1709

Chip-Channel

2.3

572083

3415232

1557

5.7

ALR-1710

Chip-Channel

3.3

572034

3415312

1564

8.7

ALR-1711

Chip-Channel

3.8

571931

3415435

1538

46.0

ALR-1712

Chip-Channel

1.3

571964

3415406

1550

42.4

ALR-1713

Chip-Channel

3.6

571919

3415383

1555

12.1

ALR-1714

Chip-Channel

3.5

571980

3415401

1554

2.3

ALR-1715

Chip-Channel

4.0

572011

3415343

1559

8.8

ALR-1716

Chip-Channel

2.0

571966

3415352

1562

19.2

ALR-1717

Chip-Channel

3.0

571940

3415342

1566

18.0

ALR-1718

Chip-Channel

3.7

571771

3415416

1567

41.5

ALR-1719

Chip-Channel

3.8

571735

3415470

1563

137.2

ALR-1720

Chip-Channel

4.5

571694

3415536

1567

152.4

ALR-1721

Chip-Channel

4.1

571739

3415576

1553

3.1

ALR-1722

Chip-Channel

3.2

571713

3415607

1560

489.0

Criteria

JORC Code explanation

Commentary

Sampling

techniques

Nature and quality of sampling (eg cut channels, random

chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain

1 m samples from which 3 kg was pulverised to produce a

30 g charge for fire assay'). In other cases more explanation may be required, such as where there is

coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine

nodules) may warrant disclosure of detailed information.

Type of samples collected were:

1. Chip samples from outcropping rock material.

2. Continuous chip sampling along a marked channel over a defined length.

Sample locations were determined by hand-held GPS.

Sample preparation was undertaken at Acme Laboratories (a Bureau Veritas Group company) in Hermosillo, Sonora,, Mexico. Samples were weighed, assigned a unique bar code and logged into the Acme tracking system. Samples were dried and each sample was fine crushed to >70% passing a 2 mm screen. A 250g split was pulverised using a ring and puck system to >85% passing 75 micron screen.

Envelopes containing the 250g sample pulps were sent via courier to the Acme laboratory in Vancouver, Canada for analysis.

The analytical techniques for all elements (other than gold) initially involved a four-acid digest followed

by multi-element ICP-MS analysis. This technique is considered a total digest for all relevant minerals.

Following the four-acid digest, the analytical method

used was MA300 (for silver and base metals by ICP- MS).

Fire Assay method FA430 was used for gold.

Over-limit assays were re-analysed by MA370 (by ICP-ES for base metals grading >1%) and FA530 (by fire assay with gravimetric finish for silver grading

>200ppm).

Drilling

techniques

Drill type (eg core, reverse circulation, open-hole

hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of Diamond tails, face-sampling bit or other type, whether

core is oriented and if so, by what method, etc).

This release has no reference to drilling.

Drill sample

recovery

Method of recording and assessing core and chip sample

recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

This release has no reference to drilling.

Logging

Whether core and chip samples have been geologically

and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

This release has no reference to drilling.

Samples were collected and described by geological personnel.

Photographs were taken of samples and sample sites.

Sub-sampling

techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or

all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling

No samples were collected from drilling.

The sample preparation followed industry best practice. Samples were prepared at the Acme laboratories in Hermosillo, Sonora, Mexico. Samples were weighed, assigned a unique bar code and

logged into the Acme tracking system.

The sample was dried and the entire sample was fine crushed to >70% passing a 2 mm screen. A 250g

split was pulverised using a ring and puck system to

stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

>85% passing 75 micron screen. Envelopes

containing the 250g pulps were sent via courier to the

Acme laboratory in Vancouver.

No duplicate, standard or blank check samples were submitted.

The sample sizes are considered appropriate to the grain size of the material being sampled.

Quality of assay

data and laboratory tests

The nature, quality and appropriateness of the assaying

and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

The analytical techniques for all elements (other than

gold) involved a four-acid digest followed by multi- element ICP-ES analysis. This technique is considered a total digest for all relevant minerals. Following the four-acid digest, the analytical method used was MA300 (for silver and base metals by ICP- MS).

Fire Assay method FA430 was used for gold.

Over-limit assays were re-analysed by MA370 (by ICP-ES for base metals grading >1%) and FA530 (by fire assay with gravimetric finish for silver grading

>200ppm).

Internal laboratory control procedures comprised duplicate sampling of randomly selected assay pulps, as well as internal laboratory standards and blanks.

Verification of

sampling and assaying

The verification of significant intersections by either

independent or alternative company personnel. The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Senior technical personnel from the Company

(Project Geologists and Exploration Manager)

inspected the samples.

No drilling was undertaken.

Primary data was collected by employees of the Company at the project site. All measurements and observations were recorded onto hard copy templates and later transcribed into the Company's digital database.

Digital data storage, verification and validation are managed by an independent data management company.

No adjustments or calibrations have been made to any assay data.

Location of data

points

Accuracy and quality of surveys used to locate drill holes

(collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Sample locations were determined by hand-held

GPS.

The grid system used is NAD27 Mexico UTM Zone

12 for easting, northing and RL.

Data spacing and

distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

Grab samples were collected on the basis of visual

recognition of alteration or mineralisation. Sample spacing was not relevant as this was a reconnaissance program.

Channel samples were collected by continuous chip sampling perpendicular across the strike of the observed mineralised zone in outcrop.

Data spacing and distribution is insufficient to establish the degree of geological and grade continuity appropriate for Mineral Resource and Ore Reserve estimation procedures.

No composite samples were collected.

Orientation of

data in relation to geological structure

Whether the orientation of sampling achieves unbiased

sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Geological controls and orientations of the

mineralised zone are unknown at this time and it is not possible to determination potential sampling bias.

Sample security

The measures taken to ensure sample security.

Assay samples were placed in poly sample bags,

each with a uniquely numbered ticket stub from a

sample ticket book. Sample bags were marked with

the same sample number and sealed with a plastic cable tie. Samples were placed in woven polypropylene "rice bags" and a numbered tamper- proof plastic cable tie was used to close each bag. The rice bags were delivered by company personnel directly to the Acme laboratory for sample preparation. The numbers on the seals were recorded for each shipment. Acme audited the arriving samples and reported any discrepancies back to the Company. No such discrepancies occurred.

Audits or reviews

The results of any audits or reviews of sampling

techniques and data.

All digital data is subject to audit by the independent

data manager.

Criteria

JORC Code explanation

Commentary

Mineral tenement

and land tenure status

Type, reference name/number, location and ownership

including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The Alacrán Project comprises 22 mineral concessions

100% owned by Minera Teck SA de CV, a subsidiary of Teck Resources Limited.

Azure Minerals has an Option to acquire 100% ownership of these concessions by spending US$5 million over four years, subject to Teck having a one- off right to back-in up to 65% ownership.

A 2% Net Smelter Royalty is held by Grupo Mexico. The tenements are secure and are in good standing.

There are no known impediments to obtaining a licence to operate in the area.

Exploration done

by other parties

Acknowledgment and appraisal of exploration by other

parties.

The project area has a history of industrial-scale

commercial mining and small-scale artisanal mining dating back to the early 20th century, which ended shortly after the start of the Mexican Revolution in

1910. After the Revolution ended in the 1920's, the property was explored intermittently.

The Anaconda Copper Mining Company is known to have done some exploration, including drilling, on the property prior to the late 1960's. Data relating to this work has been located but has yet to be reviewed.

Between 1969 and the early 1980's, the Consejo de Recursos Minerales (Mexican Geological Survey) carried out occasional exploration programs, including drilling 6 holes in 1970 and undertaking geophysical

surveys over the Palo Seco and La Morita prospects in

1981.

Grupo Mexico acquired the project after the CRM completed their drilling. Grupo Mexico drilled an additional 26 holes on the project in two phases. The first phase was done in 1991 (24 holes) and the second phase was done in 1997 and 1998 (two holes).

Minera Teck S.A. de C.V., a Mexican subsidiary of Teck Resources Limited acquired the property in 2013 and undertook limited surface exploration.

Azure Minerals acquired the rights to the project in December 2014 through its fully owned Mexican subsidiary company Minera Piedra Azul SA de CV.

Geology

Deposit type, geological setting and style of mineralisation.

Various styles of mineralisation occur on the property.

Intermediate sulphidation epithermal veins and stockworks host silver, lead, zinc, copper and gold in volcaniclastic rocks (Mesa de Plata, San Simon, Palo Seco and Alacrán).

Secondary copper oxide and chalcocite mineralisation occur in volcanic rocks (La Morita and Cerro Alacrán).

Primary copper mineralization is hosted in porphyry rocks.

Drill hole

information

A summary of all information material to the

understanding of the exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar

• elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

This release has no reference to drilling.

Data aggregation

methods

In reporting Exploration Results, weighting averaging

techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

The continuous channel sampling results were calculated

by length weighted averaging.

No maximum and/or minimum grade truncations (eg cutting of high grades) or cut-off grades were applied.

No metal equivalents were reported.

Relationship

between mineralisation widths and

intercept lengths

These relationships are particularly important in the

reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only

the down hole lengths are reported, there should be a clear

statement to this effect (e.g. 'down hole length, true width not known').

Geological mapping and logging of cuttings from RC

drill holes indicate that the silver mineralisation is hosted in a horizontal layer of vuggy silica rock that forms the capping on the ridge.

Previously reported RC drill holes were drilled with a vertical dip.

Diagrams

Appropriate maps and sections (with scales) and

tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar

locations and appropriate sectional views.

Refer to Figures in attached report

Balanced

reporting

Where comprehensive reporting of all Exploration Results

is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

The Company believes that the ASX announcement is a

balanced report with all material results reported.

Other substantive

exploration data

Other exploration data, if meaningful and material, should

be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

This announcement refers to previous exploration

results including geophysics, geochemistry and geology.

Further work

The nature and scale of planned further work (e.g. tests for

lateral extensions or depth extensions or large-scale step- out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive

Further work to better understand the mineralisation

systems in the project area will comprise additional geological mapping and sampling, geophysical surveys (IP and magnetics) and drilling.