Azimut Exploration Inc.

Nunavik

COPPER-GOLD-REE

URANIUM

GOLD

North Rae

Aqpig Zone, North Rae property

Key Ungava Bay uranium property

The North Rae property (1,536 claims, 684.0 km²), owned 100% by Azimut, is located about 20 km east of Ungava Bay in Nunavik, northern Quebec.

The nearest village is the Inuit coastal community of Kangiqsualujjuaq, equipped with an airport and port facilities. The property is about 160 km northeast of Kuujjuaq, the largest Inuit village in Nunavik and its administrative capital.

Discovery of a new uranium province

The discovery by Azimut and AREVA of several hundred uranium prospects has revealed the Ungava Bay region to be a new Canadian uranium province.

North Rae is adjacent to adjacent to the Daniel Lake, Kangiq and Burrel Lake properties, also 100% owned by Azimut, and together they form a block of properties about 70 km long by up to 50 km wide that constitutes the Company’s dominant land position in the region.

The North Rae and Daniel Lake mineralized zones show an excellent spatial correlation with uranium anomalies identified by geophysical surveys flown over the two properties, and it is this large-scale footprint that was revealed by the Company’s uranium potential assessment of more than 650,000 km² of land in northern Quebec in 2005.

Mineralization at North Rae

50,000 counts per
second mineralized
outcrop – Jonas Zone

In 2006, preliminary field work confirmed the presence of an extensive uranium mineralized system on the North Rae and Daniel Lake properties. Results of subsequent field programs and geophysical surveying led to the discovery of twelve (12) mineralized zones at surface on the two properties, with a cumulative length of 17 km and grades up to 3.3% U₃O₈.

Drilling rig

Most of these mineralized zones occur on the North Rae property, including the Aqpiq Zone (min. 1,100 x 350 metre surface footprint), Jonas (min. 600 x 400 m) and Amittuujaq (> 2 km long). Channel sample results indicate reasonable grade continuity and the presence of lateral extensions for several of the mineralized zones. All targets remain open and many have yet to be field-tested.

Mineralization is Rössing-type, related to an extensive shallow-dipping pegmatitic sill system at or near the contact between Archean gneisses and Proterozoic metasedimentary rocks. Azimut controls over 70 km of this highly prospective geological contact (see below).

Regional control on mineralization

Exploration results from Azimut's main Ungava Bay properties indicate three main types of regional-scale geological features controlling the distribution of uranium mineralization in the area:

The geological contact between Archean basement and Proterozoic metasedimentary rocks. Azimut's main property block formed by the North Rae, Daniel Lake, Kangiq and Burrel Lake properties covers this favourable geological contact along a 70 km continuous strike length. This type of setting is considered highly prospective for uranium on a worldwide basis.

Regional-scale late northwest-trending faults hosted in Archean basement.

Favourable lithologies within the Proterozoic metasedimentary package of the Lake Harbour Group. Reduced facies and carbonates represent high priority targets that have been subject to very limited exploration to date.

Strategic advantages

Field crew at work

Azimut’s North Rae and other Ungava Bay properties benefit from three strategic advantages:

The properties have the potential for a large resource base at shallow depth, amenable to open pit mining.

The properties are well positioned, only a short distance from port facilities on the Ungava Bay coast, near deep sea water, and close to a permanent airport and other infrastructure.

The province of Quebec is recognized around the world as a low-risk region for exploration and mining.