Dr. Jean-Marc Lulin reports

AZIMUT AND SOQUEM REPORT EXCELLENT LITHIUM RECOVERIES AND GRADES FOR METALLURGICAL TEST SAMPLES, GALINEE PROPERTY, QUEBEC

Azimut Exploration Inc. has released excellent preliminary metallurgical test results for three representative samples of spodumene-bearing pegmatite from the Galinee property in the Eeyou Istchee James Bay region of Quebec, Canada. The property is a joint venture project between Azimut and SOQUEM Inc., with Azimut acting as the operator.

The test program conducted by SGS Canada Inc. included chemical and mineralogical characterization and metallurgical testing. The objective was to obtain baseline recovery data for a dense media separation (DMS) and magnetic separation flow sheet.

Highlights:

• The test program demonstrates excellent lithium recovery through combined DMS and magnetic separation for the three composites (Comp 1 to Comp 3). Lithium recoveries for the three samples are 68 per cent, 79 per cent and 86 per cent, respectively, with spodumene concentrates grading 6.93 per cent Li2O (lithium oxide) for Comp 1 and 7.10 per cent Li2O for Comp 2 and Comp 3.
• The production of high-grade spodumene concentrates (over 6.90 per cent Li2O) in the 2.95 sink fraction by heavy liquid separation for all samples significantly exceeds the chemical-grade quality required for hydrometallurgical processing.

Test work summary

SGS Canada conducted the tests in its Quebec City laboratory using three representative composite drill core samples of spodumene-bearing pegmatite. The Li2O composition in the material is 1.16 per cent, 2.07 per cent and 4.52 per cent for Comp 1, Comp 2 and Comp 3, respectively. Each composite was stage crushed to P100 passing 9.5 millimetres, blended, and submitted for chemical and mineralogical analysis. The remaining material from each composite was screened to 850 micrometres and riffled into charges for metallurgical test work.

Head characterization

The program's primary objective was to characterize the composite samples, with a particular emphasis on lithium mineral characterization. This included (see attached table):

• Head analysis;
• Mineralogical analysis;
• Identification of key impurities;
• Mineralogical analysis on Comp 2 using Tescan Integrated Mineral Analyzer (TIMA-X).

These steps are crucial for developing the metallurgical process as they significantly influence the operating conditions and approach.

Head analysis: Representative 75-micron pulverized samples were submitted for an ICP (inductively coupled plasma) scan analysis. The three samples (Comp 1, Comp 2 and Comp 3) were found to contain silica (69.2 per cent to 80.8 per cent), aluminum oxide (12.7 per cent to 21.7 per cent), iron oxide (0.86 per cent to 1.93 per cent) and lithium oxide (1.16 per cent to 4.52 per cent).

Mineralogical analysis: Quartz, spodumene, albite/plagioclase and elbaite are the main mineralogical phases. XRD (X-ray diffraction) analysis revealed that Comp 3 had the highest spodumene content at 56.2 per cent. Hornblende was low in Comp 1 (2.8 per cent) and absent in both Comp 2 and Comp 3.

Detailed mineralogical analyses (TIMA-X) performed on Comp 2 indicate excellent spodumene liberation reaching 97.8 per cent. Impurities such as quartz and feldspar also showed high levels of liberation, exceeding 95 per cent.

Metallurgical testing

Bulk density tests: Average density measurements were conducted on five core samples for each composite. The results showed average densities of 2.78 grams per cubic metre, 2.79 grams per cubic metre and 2.82 grams per cubic metre for Comp 1, Comp 2 and Comp 3, respectively.

Heavy liquid separation (HLS) and magnetic separation: DMS concentration tests, coupled with magnetic separation of the DMS concentrate, produced excellent results for all three composite samples:

• A single step of magnetic separation performed at 10,000 Gauss effectively removed the amphibole present in the DMS concentrate for the three composites tested, particularly for Comp 1.
• At a particle size of 9.50 millimetres, HLS produced high-grade spodumene concentrates (over 6.90 per cent Li2O) in the 2.95 sink fraction for all samples, meeting the chemical-grade quality required for hydrometallurgical processing. Lithium recoveries were excellent, at 68 per cent, 79 per cent and 86 per cent for Comp 1, Comp 2 and Comp 3, respectively.
• The concentrates are notably distinguished by their very low impurity levels, with Fe2O3 contents below 1.2 per cent and Cr2O3 (chromium oxide) contents below 0.01 per cent.
• For Comp 1, magnetic separation was necessary due to the presence of hornblende. Two tests were conducted using the 2.70 and 2.95 sink fractions. In the test performed with the 2.70 sink fraction, the Li2O concentrate reached a grade of 5.51 per cent, with a lithium recovery of 82.1 per cent. For the 2.95 sink fraction, the Li2O concentrate reached a grade of 6.93 per cent, but with a lower lithium recovery of 68 per cent.
• For Comp 2 and Comp 3, which contain very little amphibole, a simple DMS separation at a density of 2.70, even without a magnetic separation step, could yield Li2O concentrates with purities of 5.99 per cent and 6.76 per cent, with recoveries of 89 per cent and 91 per cent, respectively. This is exceptional and demonstrates the excellent liberation and purity of the lithium-bearing phases of the Galinee mineralized zone.

Description of the composites

The three drill core composites sent to SGS for metallurgical testing are described as follows:

• Comp 1: 22.1 metres of half-core spodumene pegmatite (from 339.9 metres to 362.0 metres) from hole GAL24-025, including a 1.0-metre amphibolite interval (from 347.0 metres to 348.0 metres); weight of 37.76 kilograms;
• Comp 2: 17.1 metres of half-core spodumene pegmatite (from 171.6 metres to 188.7 metres) from hole GAL24-018; weight of 27.04 kilograms;
• Comp 3: 16.5 metres of half-core spodumene pegmatite (from 109.5 metres to 126.0 metres) from hole GAL24-020; weight of 25.59 kilograms.

About the Galinee property

Galinee (649 claims; 335 square kilometres) is a 50/50 joint venture project between Azimut and SOQUEM. The 36-kilometre-long property lies about 50 kilometres north-northwest of the Renard diamond mine (Stornoway Diamonds (Canada) Inc.) and 60 kilometres south of the Trans-Taiga Road, an all-season regional highway. The region is widely considered an emerging lithium district.

The winter 2023 and spring 2024 drilling program yielded wide intervals of high-grade mineralization in the northernmost part of the property, notably including (see press release dated June 19, 2024):

• 1.62 per cent Li2O over 158.0 metres (hole GAL24-025);
• 2.48 per cent Li2O over 72.7 metres (hole GAL23-001);
• 2.68 per cent Li2O over 54.6 metres (hole GAL24-020);
• 2.13 per cent Li2O over 44.1 metres (hole GAL23-009);
• 1.66 per cent Li2O over 40.4 metres (hole GAL24-018);
• 2.53 per cent Li2O over 25.0 metres (hole GAL24-022);
• 2.02 per cent Li2O over 32.2 metres (hole GAL24-023);
• 1.71 per cent Li2O over 37.0 metres (hole GAL23-011).

In addition, the summer 2024 program further underscored the project's strong exploration potential. Extensive lithium targets with a cumulative length of about 18 kilometres have been identified based on systematic till sampling and prospecting. One of the most promising areas, returning up to 2.85 per cent Li2O in boulders, lies within a 10-kilometre zone in the northwestern part of the property (see press release dated Oct. 10, 2024).

Qualified persons

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

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, controlling strategic land positions for copper/gold, nickel and lithium. Its wholly owned flagship project, the Elmer gold project, is at the resource stage (311,200 ounces indicated; 513,900 ounces inferred) and has a strong exploration upside. Azimut is also advancing the Galinee lithium discovery with SOQUEM.

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.

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