Mr. Jean-Marc Lulin reports

AZIMUT AND KGHM ANNOUNCE A HIGH-GRADE NICKEL DISCOVERY ON THE KUKAMAS PROPERTY, JAMES BAY REGION, QUEBEC

Azimut Exploration Inc. has discovered a high-grade nickel zone (Perseus) on the Kukamas property in the Eeyou Istchee James Bay region of Quebec. The prospecting discovery, which includes significant copper and platinum group element (PGE) grades, is still at an early stage but provides an exciting outlook for the project. Additional work is continuing to further delineate the zone, including a magnetic and electromagnetic (EM) ground survey. Budgeting and planning are under way to initiate a maiden drilling program.

The Perseus zone is associated with an ultramafic volcanic unit and its features indicate a highly fertile system, underscoring the property's excellent prospectivity:

• Best grades reach up to 9.35 per cent nickel (Ni), 3.04 per cent copper (Cu), 3.78 grams per tonne (g/t) platinum (Pt) and 8.99 g/t palladium (Pd) from different sawed samples.
• Perseus is spatially linked to a north-trending string of strong EM conductors, two kilometres (km) long, which correlates well with a strong nickel-copper-cobalt footprint in lake sediments.
• Another nickel showing discovered in 2023 on the property is also associated with a one-kilometre-long strong EM conductor (see news release of April 2, 2024).
• Other significant ultramafic bodies remain underexplored on the 41-kilometre-long property.

Since signing a joint venture option agreement with KGHM International Ltd., Azimut has carried out significant exploration activities on Kukamas and is the operator of the partner-financed program (see news release of Dec. 8, 2022). The summer work program to date comprised a prospecting phase (303 grab samples and 40 channel samples) and an infill lake sediment sampling survey (215 samples). Most results are still pending and will be disclosed once they become available.

Highlights:

• High-grade mineralization defines a curvilinear steeply dipping, north- to southwest-trending outcropping zone, measuring approximately 56 metres long by up to nine metres wide. Perseus appears open along strike and to the east. Thick overburden surrounding the mineralized zone limited the extent of the sampling coverage;
• The rock samples collected from the discovery outcrop comprise 24 one-metre-long channel samples from two channels, each 12 metres long, and 20 grab samples cut with a saw. Channels were cut perpendicularly to the orientation of the mineralized zone. Note that grab samples are selective by nature and unlikely to represent average grades;
• Channel No. 1: oriented N90, total horizontal length of 12.0 metres, including two offset samples taken 4.9 metres (m) south of the main channel due to a local outcrop discontinuity along the main channel:
  • 2.98 per cent Ni, 0.32 per cent Cu and 2.25 g/t PGE over 8.0 m (sample G435436 to sample G435431), including 3.74 per cent Ni, 0.41 per cent Cu and 2.82 g/t PGE over 6.0 m;
• Channel No. 2: oriented N150, total horizontal length of 12.0 m:
  • 1.10 per cent Ni, 0.15 per cent Cu and 1.02 g/t PGE over 9.0 m (sample G435426 to sample G435417), including 1.42 per cent Ni, 0.19 per cent Cu and 1.36 g/t PGE over 6.0 m.

Four samples were analyzed for other PGE metals (rhodium, iridium, osmium and ruthenium).

Six samples outside the mineralized zone yielded nickel grades of 0.24 per cent, 0.26 per cent, 0.24 per cent, 0.21 per cent, 0.20 per cent and 0.20 per cent (samples G435371, G435372, G435373, G435374, G435441 and G435442, respectively).

Highlights continued:

• Mineralization consists of semi-massive to disseminated sulphides, mostly pentlandite, pyrrhotite and chalcopyrite, hosted in ultramafic rocks, likely komatiitic volcanics and peridotite. The sulphide-rich mineralization occurs as a matrix in brecciated rocks and occasionally as veinlets. The breccia seems bounded to the west by net-textured disseminated mineralization, suggesting a west-facing sequence, which matches the stratigraphic findings from mapping work. The breccia may correspond with an autoclastic basal breccia. The volcanic nature of the host rocks is indicated by the fine-grained to aphanitic textures, possible pillow lavas and an interflow contact positioned several metres west of the mineralized zone. The curvilinear shape of the Perseus zone may correspond with an embayment at the base of the ultramafic flow, a shape often observed in komatiitic nickel deposits.
• The geological and mineralization features, along with geochemical data, suggest similarities with Archean Kambalda-type komatiitic nickel deposits (examplified by the Kambalda district, Western Australia). At Perseus, the geochemical criteria notably include:
  • High MgO contents (from 24.5 per cent to 37.8 per cent) in the rocks proximal to mineralization;
  • Based on 38 samples with nickel grades ranging from 0.3 per cent Ni to 9.35 per cent Ni:
    • High Ni/Cu ratios (from 1.4 to 68.7; 10.3 on average);
    • High Pd/Pt ratios (from 1.10 to 11.82; 3.36 on average).
• Exploration impact of the Perseus discovery at the property scale:
  • The Perseus zone correlates well with a strong, north-trending string of EM conductors, two kilometres long, highlighting the project's significant exploration upside. This entire area is marked by a strong lake sediment footprint characterized by nickel (up to 188 parts per million (ppm)), copper (up to 114 ppm) and cobalt (up to 28.2 ppm). Ultramafic units have been mapped in this part of the property but are still poorly defined and underexplored. About 130 metres south of the zone, a grab sample in an ultramafic unit on strike with Perseus returned 0.44 per cent Ni.
  • A nickel showing (up to 1.36 per cent Ni, 0.12 per cent Cu and 0.89 g/t PGE in grabs), discovered 3.8 kilometres south of Perseus in 2023, correlates with a strong, east-west-striking, one-kilometre-long EM conductor.
  • Other ultramafic bodies still need to be assessed on the east and west blocks. On the east block, at least five distinct ultramafic units have been mapped with a cumulative length of seven kilometres within an area measuring 3.5 kilometres by 4.0 kilometres.
• Steps leading to the discovery:
  • 2019: Azimut acquired Kukamas following the company's predictive mineral potential modeling for copper at the James Bay-scale (over 176,300 square kilometres). The property displayed one of the strongest footprints for copper in the region.
  • 2022: Azimut's potential modelling for nickel, also at the scale of the James Bay region, identified multiple nickel targets on the property. The company signed an option agreement with KGHM.
  • 2023: A heliborne high-resolution magnetic and VTEM Plus survey was flown over the entire project (3,199 line kilometres). Specific nickel targets were delineated by combining EM, magnetic and lake sediment geochemical footprints. A follow-up prospecting phase resulted in the discovery of a nickel-copper-PGE showing in the southern part of the east block.
  • 2024: A new prospecting phase led to the discovery of the Perseus zone.

Geophysics contract, analytical protocols

Geophysique TMC, of Val d'Or, Que., was contracted to perform a ground DeepEM survey using the Fluxgate method to cover the Perseus zone and its potential extensions. This approach can detect EM conductors to a depth of 300 to 400 metres. A ground magnetic survey will cover the same area.

Rock samples were sent to ALS Laboratories in Val d'Or. Samples were analyzed for a 48-element suite by four-acid digestion and ICP-MS (inductively coupled plasma mass spectrometry) finish, and fire assay and ICP-AES (inductively coupled plasma atomic emission spectroscopy) finish for gold, platinum and palladium. Overlimit nickel and copper assays (10,000 ppm) were reanalyzed using four-acid digestion and ICP-AES finish. Four selected samples were analyzed for the full suite of platinum group elements (Pt, Pd, iridium (Ir), osmium (Os), rhodium (Rh) and ruthenium (Ru)) using fire assay with an ICP-MS finish.

About the Kukamas property

The property covers a 41-kilometre cumulative strike length and comprises 537 mining claims in two claim blocks covering 272.5 square kilometres. The project benefits from major infrastructure, including high-voltage power lines, and its location four kilometres north of the all-weather Trans-Taiga Road and the La Grande-3 airstrip (near the La Grande-3 hydroelectric generating station). The closest town is Radisson, 80 kilometres to the west-northwest.

James Bay-scale predictive modelling for nickel

The Perseus discovery at Kukamas and the W1 discovery on the Wapatik property (see news release of April 24, 2023) help validate Azimut's regional-scale predictive modelling for nickel. Both discoveries correspond to areas of interest identified by the modelling work. This approach was also used to identify numerous new targets elsewhere in the region, which were collectively grouped under the company's wholly owned James Bay nickel project (3,608 claims, 109 claim blocks, about 200 distinct targets).

Qualified person

Dr. Jean-Marc Lulin, PGeo, prepared this news release as Azimut's qualified person within the meaning of National Instrument 43-101. Rock Lefrancois, PGeo, vice-president of exploration, also reviewed the content of this news release.

KGHM is a subsidiary of KGHM Polska Miedz S.A., a Polish corporation that has been a major copper and silver producer for more than 60 years, with mining projects in Europe, North America and South America. Under the option agreement, KGHM can acquire an initial 50-per-cent interest in the property from Azimut by financing work expenditures for a total of $5.0-million over four years. KGHM has a second option to earn an additional 20-per-cent interest according to certain terms and conditions, which include delivering a preliminary economic analysis and incurring work expenditures of at least $4.2-million over three years (see news release of Dec. 8, 2022).

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 project, the Elmer gold project, is at the resource stage (311,200 ounces (oz) indicated; 513,900 oz inferred*) and has a strong exploration upside. Azimut is also advancing a significant lithium discovery on the Galinee property (a joint venture with SOQUEM). The company controls strategic land positions in the province 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. Azimut maintains rigorous financial discipline and a strong balance sheet, with 85.6 million shares issued and outstanding.

* "Technical Report and Initial Mineral Resource Estimate for the Patwon Deposit, Elmer Property, Quebec, Canada," prepared by Martin Perron, PEng, Chafana Hamed Sako, PGeo, Vincent Nadeau-Benoit, PGeo, and Simon Boudreau, PEng, of InnovExplo Inc., and dated Jan. 4, 2024.

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