Mr. Jean-Marc Lulin reports

AZIMUT ANNOUNCES $8 MILLION BOUGHT DEAL PRIVATE PLACEMENT FINANCING

Azimut Exploration Inc. has entered into an agreement with Paradigm Capital Inc., on behalf of a syndicate of underwriters, including Red Cloud Securities Inc., in connection with a bought-deal private placement financing for total proceeds of $8-million, consisting of 2,442,100 common shares of the company that qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act (Quebec)) at a price of $2.0475 per premium FT share, 550,600 common shares of the company that qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act (Quebec)) at a price of $1.8165 per FT share, and 1,904,800 common shares of the company at a price of $1.05 per hard dollar share.

In addition, the company has granted the underwriters an option to sell that number of additional hard dollar shares at the hard dollar issue price for additional aggregate gross proceeds of up to $2-million, exercisable 48 hours prior to the closing date (as defined below). The term offering includes the additional hard dollar shares that may be issued on the exercise of the underwriters' option, if any.

Pursuant to an investor rights agreement between the company and Agnico Eagle Mines Ltd. dated Feb. 26, 2020, as amended, Agnico has indicated that it intends to increase its interest in the company from a current 10.06-per-cent ownership to a pro forma ownership of approximately 12 per cent on a postoffering basis.

The company will use an amount equal to the gross proceeds received by the company from the sale of the FT shares, pursuant to the provisions in the Income Tax Act (Canada) and the Taxation Act (Quebec), to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures, as both terms are defined in the Income Tax Act (Canada). The company will use an amount equal to the gross proceeds received by the company from the sale of the premium FT shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures, as such terms are defined in the Income Tax Act (Canada). The company will incur the qualifying expenditures and the critical minerals qualifying expenditures on or before Dec. 31, 2024, and will renounce all such expenditures in favour of the subscribers of the premium FT shares and FT shares, as applicable, effective Dec. 31, 2023. In addition, with respect to Quebec resident subscribers of the premium FT shares and FT shares who are eligible individuals under the Taxation Act (Quebec), the Canadian exploration expenses will also qualify for inclusion in the exploration base relating to certain Quebec exploration expenses, within the meaning of Section 726.4.10 of the Taxation Act (Quebec), and for inclusion in the exploration base relating to certain Quebec surface mining expenses or oil and gas exploration expenses, within the meaning of Section 726.4.17.2 of the Taxation Act (Quebec). The proceeds from the sale of the hard dollar shares will be used for exploration and for general corporate purposes.

Closing is expected to occur on or about Sept. 28, 2023, or other such dates as the company and the underwriters may agree. The offering is subject to regulatory approval, and all securities issued pursuant to the offering will have a hold period of four months and one day.

About Azimut Exploration Inc.

Azimut is a leading mineral exploration company with a solid reputation for target generation and partnership development. The company holds the largest mineral exploration portfolio in Quebec. Its wholly owned flagship Elmer gold project is advancing to the initial resource stage in the James Bay region. Azimut also controls a strategic land position for copper-gold, nickel and lithium.

Azimut uses a pioneering approach to big data analytics (the proprietary AZtechMine expert system) enhanced by extensive exploration know-how. The company's competitive edge is based on systematic regional-scale data analysis and concurrently active projects. The company maintains rigorous financial discipline and a strong balance sheet, with 79.9 million shares issued and outstanding (prior to the offering).

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