Azimut Exploration Inc.

James Bay Region

GOLD

CHROMIUM-PGE

OPINACA B GOLD PROPERTY

Surface trenching and sampling at the Opinaca Project

Location of the Opinaca B Property in relation to the Eleonore gold mine (Goldcorp) and the adjacent Cheechoo Property (Sirios Resources/Golden Valley Mines)

Close-up of the Opinaca B Property showing the main prospects to date and the target zones for the summer 2016 exploration program

Strategic position near Eleonore Gold Mine
The Opinaca B Property lies 8 km east of Goldcorp’s Éléonore gold mine property and is adjacent to the Cheechoo Property held by Sirios Resources Inc. It is located approximately 850 km north of Montreal, and consists of 235 claims in 2 blocks for a total surface area of 122.9 km² (as at April 21, 2016).

Hecla option
Azimut’s partner Everton Resources Inc. has a 50% interest on the Opinaca B property since April 2010. In September 2010, the property became subject to a three-way agreement between Azimut, Everton and Hecla Mining through its wholly owned subsidiary Hecla Québec (see below for terms of the agreement).

Stronger discovery potential
Recently released results for the adjacent Cheechoo Property held by Sirios (see map) strengthen the discovery potential of the Opinaca B Property. The results include 15.61 g/t Au over 9.70 m and 15.04 g/t Au over 12.35 m (see Sirios press release of March 29, 2016). Azimut recently added 42 new claims (22 km²) to Opinaca B to provide better control on the possible extensions of the exploration targets on the property.

Hecla-funded 2016 drilling program
A diamond drilling program by Hecla will test several high priority targets in the summer of 2016 (see map). The comprehensive $756,000 exploration program will also include prospecting, extensive mechanized trenching and the collection of about 2,000 rock samples. The program is supported by encouraging drilling and till results as discussed below.

D8 Prospect
The results of the 2015 program funded by Hecla outlined a package of IP anomalies, 150 to 200 m wide, carrying anomalous gold values in bedrock (up to 0.11 g/t Au in a trench). The best prospecting result was 3.0 g/t Au from a boulder of chloritized wacke with quartz-feldspar-tourmaline veinlets. In 2012, the area produced positive channel sample results, including 2.3 g/t Au over 1.0 m and 0.55 g/t Au over 4.0 m. The area is also characterized by gold anomalies in soil and till.

The D8 Prospect lies along an east-west structure at the boundary between the Opinaca and La Grande geological subprovinces, and shares geological similarities with the Éléonore gold deposit. The prospect is characterized by a 20-m-wide sheared and altered sedimentary unit with amphibolite and quartz-tourmaline veinlets.

Penelope Prospect
The Penelope Prospect, about 2 km west of the D8 Prospect, yielded 10 bedrock samples with values above 0.1 g/t Au including four with values above 0.5 g/t Au, and a maximum grade of 4.26 g/t Au. Mineralization is associated with quartz-tourmaline veins and veinlets.

Dominic Prospect
Several kilometres north of the Penelope Prospect, diamond drilling on the Dominic Prospect in 2008 yielded 0.6 g/t Au over 1.2 m. This prospect falls within a wide exploration target defined for the 2016 exploration program.

Claude Prospect
In 2007, drilling by partner Everton on the Claude Prospect, in the centre of the property, yielded 0.22 g/t Au over 187 m, including 1.0 g/t Au over 21.5 m. This prospect lies within with one of the targets to be investigated by the summer 2016 program.

Original option agreement with Hecla
In September 2010, the Opinaca A and B properties became subject to a three-way agreement between Azimut, Everton and Hecla Québec Inc. According to the terms of that original agreement, Hecla has the option to acquire a 50% interest in each of the two properties by making cumulative cash payments of $580,000 and incurring a total of $6.0 million in exploration work over 4 years. Hecla may earn an additional interest of 10%, for a total interest of 60%, by making cumulative cash payments of $300,000 and incurring at least $3 million in exploration expenditures over 3 years from the election date, and by delivering an independent pre-feasibility study on or before the fourth anniversary. Azimut will receive cash payments of $290,000 on the first option and $150,000 on the second option, and its resulting interest will be 20%. In the event that mineral resources of at least 2 million ounces of gold at an average grade of at least 6 g/t Au are discovered before the end of the eighth year of the initial option agreement, Hecla shall make a payment of $1.5 million in Hecla common shares, subject to regulatory approval. Azimut will receive 50% of these issued shares.

Amendments to the agreement and renewal

On November 15, 2013, an amendment was made to extend the work schedule by two (2) additional years.
On November 14, 2014, a second amendment was made to exclude all claims comprising the Opinaca A property from the agreement. All other terms remain unchanged.
On November 25, 2015, the Company announced that Hecla had renewed its option to acquire a 60% interest in the Opinaca B property.