AZURE MINERALS LIMITED

ABN 46 106 346 918

Level 1, 34 Colin Street West Perth, WA, Australia, 6005‌

PO Box 493

West Perth, WA, Australia 6872

T: 08 9481 2555

F: 08 9485 1290

E: [email protected]

W: www.azureminerals.com.au

ASX: AZS 14 September 2016

SILVER INTERSECTED AT MESA DE PLATA NORTE

Azure Minerals Limited (ASX: AZS) ("Azure" or "the Company") is pleased to report that the Company has received positive silver assays from diamond drilling at Mesa de Plata Norte, part of Azure's flagship Alacrán Project.

Highlights:

• Drill holes previously assessed visually to have limited potential have returned assays identifying surface silver mineralisation at Mesa de Plata Norte

• Assays of mineralised drill intercepts1returned:

  • MDPD-023: 6.2m @ 162g/t Ag from surface

  • MDPD-024: 4.5m @ 52g/t Ag from surface

  • MDPD-026: 6.4m @ 65g/t Ag from surface

  • MDPD-027: 3.8m @ 92g/t Ag from surface

  • MDPD-028: Assays pending

  • MDPD-030: Assays pending

• Additional drilling will test potential mineralised extensions to the south of Mesa de Plata Norte

Azure's Managing Director, Tony Rovira said: "Early visual inspection of drill core from Mesa de Plata Norte led us to believe there was limited potential for this area to host significant silver mineralisation. However, it is pleasing to see that these assay results now indicate potential for additional silver mineralisation north of the existing Mesa de Plata mineral resource.

"Although we don't expect this new area to form a significant new body of mineralisation in its own right, the grades are reasonable and the mineralisation is situated at surface, indicating it could form a nice addition to the existing resource.

1 Mineralised drill intercepts for Mesa de Plata Norte calculated using a 20g/t Ag lower grade cut-off, the same as for the Mesa de Plata Mineral Resource (ASX: 9 May 2016)

"Further drilling will be undertaken in the 300m gap between the northern resource boundary of the Mesa de Plata deposit and these Mesa de Plata Norte drill holes to determine the extent of the mineralisation."

DETAILS OF MESA DE PLATA DRILLING

Six holes (MDPD-023, 024, 026, 027, 028 & 030) were drilled at Mesa de Plata Norte (see Figure 1) for a total of 300m. As reported previously (ASX: 25 August 2016), the first two holes drilled through approximately four to six metres of vuggy silica similar to that which occurs at Mesa de Plata before passing into the footwall unit of andesite volcanic rock. The final four holes intersected only the andesite.

Unexpectedly, the upper part of the andesite footwall unit is moderately enriched in silver, possibly as a result of weathering processes and consequent remobilisation of the silver from the overlying, strongly mineralised vuggy silica.

Although Azure believes there is limited potential for a silver deposit of significant size at Mesa de Plata Norte, these results indicate potential for silver mineralisation that could be additional to the existing Mesa de Plata mineral resource, especially as the mineralisation occurs at surface. Further drilling will test the area to the south of holes MDPD-023 and 024, towards the northern resource boundary of the Mesa de Plata deposit.

Table 1: Significant silver intercepts from diamond drilling at Mesa de Plata Norte2

2 See attached JORC Table 1 for calculation and reporting of mineralised intervals

Figure 1: Drill hole location plan

BACKGROUND

The Mesa de Plata Silver Deposit and the Mesa de Plata Norte prospect are located on the Company's Alacrán Project, 10 kilometres to the southeast of the Cananea Copper Mine in Sonora, Mexico. The Loma Bonita Gold Prospect is located 200 metres to the east of the Mesa de Plata Silver Deposit.

Azure acquired the rights to the Alacrán Project in December 2014 through its fully owned Mexican subsidiary Minera Piedra Azul S.A. de C.V. Azure signed an Agreement with Minera Teck S.A. de C.V. ("Teck"), the Mexican subsidiary of Teck Resources Limited to acquire 100% of the property, subject to an underlying back-in right retained by Teck and a 2% NSR retained by Grupo Mexico. Teck Resources Limited is Canada's largest diversified resource company. Grupo Mexico is Mexico's largest and one of the world's largest copper producers.

-ENDS-

For further information, please contact:

or visit www.azureminerals.com.au

Information in this report 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 and Managing Director of Azure Minerals Limited. Mr Rovira has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 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.

Information in this report that relates to previously reported Exploration Results has been crossed- referenced in this report to the date that it was reported to ASX. Azure Minerals Limited confirms that it is not aware of any new information or data that materially affects information included in the relevant market announcements.