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Azimut and Partners strengthen the large- scale intrusion-hosted gold system on the Eleonore South Property Symbol: AZM.TSX Venture

Corporate Updates

Azimut and Partners strengthen the large-

scale intrusion-hosted gold system on the

Eleonore South Property

Symbol: AZM.TSX Venture

LONGUEUIL, QC

,

July 18, 2018

/CNW Telbec/ -

Azimut Exploration Inc.

(

"Azimut"

or the

"Company"

) (

TSXV: AZM

) is pleased to report the results of thirty-two (32) diamond drill holes

totalling 5,448.6 metres on the Eleonore South Property (Azimut-Goldcorp-Eastmain JV). This phase

completes the 2017-2018 diamond drilling program of fifty (50) holes for 9,891.6 metres. Located in

the

James Bay

region of

Quebec

, Eleonore South is adjacent to the property that hosts the major

Eleonore gold mine owned and operated by Goldcorp (see Figure 1). A new work program is being

prepared and will soon be announced.

From 2016 to 2018, Azimut has been the operator of surface exploration work and diamond drilling

programs (76 holes totalling

15,134 m

) that revealed a

large tonalite-hosted gold-bearing system

with the following key features:

A gold corridor at least 2 kilometres long by 600 to 700 metres wide largely constrained within

the tonalite intrusion but close to its contact with the surrounding metasedimentary rocks;

Consistent anomalous gold values (>0.5 g/t Au) within the mineralized corridor, along with

several networks of quartz veins and veinlets, strong sodic alteration, very low sulphide

concentrations (<0.5%) and frequent native gold grains;

Several higher-grade zones within the mineralized envelope, characterized by: a) clusters of

quartz-albite-biotite stockworks accompanied by arsenopyrite, pyrrhotite, pyrite, scheelite and

native gold (principally along the "

Contact Trend

"); and b) a quartz-feldspar pegmatitic vein

system with native gold (principally along the "

Moni Trend

").

In addition, gold zones in the metasediments around the intrusion, such as the JT Prospect, define a

semi-circular area approximately 5.5 kilometres across with considerable exploration upside (see

Figures 2 and 3).

http://www.azimut-exploration.com/en/presentations/PR_20180718_Figures.pdf

http://www.azimut-exploration.com/en/presentations/PR_20180718_Table1.pdf

New Drilling Highlights

Hole ES18-92a:

5.7 g/t Au over 2.9 m

Hole ES18-93:

3.8 g/t Au over 4.2 m

including

20.1 g/t Au over 0.7 m

Hole ES18-95:

13.58 g/t Au over 2.5 m

including

33.0 g/t Au over 1.0 m

Hole ES18-98:

8.56 g/t Au over 8.4 m

including

71.4 g/t Au over 1.0 m

and

18.01 g/t Au over 3.9 m

Hole ES18-99:

2.58 g/t Au over 7.8 m

including

17.4 g/t Au over 0.9 m

Hole ES18-100:

42.37 g/t Au over 7.0 m

including

294.0 g/t Au over 1.0 m

Hole ES18-101:

6.06 g/t Au over 3.5 m

including

13.6 g/t Au over 1.5 m

Hole ES18-102:

1.68 g/t Au over 5.0 m

15.7 g/t Au over 0.6 m

Hole ES18-108a:

1.12 g/t Au over 33.6 m

including

18.5 g/t Au over 1.5 m

0.69 g/t Au over 84.8 m

including

1.17 g/t Au over 10.9 m

and

1.23 g/t Au over 16.1 m

Hole ES18-109:

1.69 g/t Au over 3.6 m

0.65 g/t Au over 30.0 m

Hole ES18-111:

1.41 g/t Au over 9.4 m

including

5.64 g/t Au over 1.0 m

and

2.18 g/t Au over 5.6 m

Hole ES18-51ext:

0.57 g/t Au over 143.1 m

including

5.0 g/t Au over 4.0 m

,

14.05 g/t Au over 1.0 m

,

0.81 g/t Au over 28.5 m

, and

1.16 g/t Au over 6.7 m

Hole ES18-112:

0.71 g/t Au over 43.4 m

including

1.17 g/t Au over 19.3 m

and

10.2 g/t Au over 1.0 m

Hole ES18-113:

2.18 g/t Au over 3.0 m

1.13 g/t Au over 9.9 m

including

5.92 g/t Au over 1.0 m

0.62 g/t Au over 16.0 m

Hole ES18-118:

0.64 g/t Au over 25.1 m

Hole ES18-119:

10.4 g/t Au over 1.5 m

Native gold has been identified in 18 of the 32 drill holes (see Figure 4).

Technical Comments

The objectives of this diamond drilling phase were to (see press release of

February 27, 2018

):

a) Test the

Moni Trend

, particularly through closely spaced holes along the high-grade

Moni Prospect

; and

b) Assess the grade and geometric continuity of the

Contact Trend

in greater detail.

The

Moni Trend

has now been drilled with twenty (20) holes totalling 2,351.2 metres, including

twelve (12) holes totalling 754.8 metres focused on the Moni Prospect. This includes the extension

of hole ES16-48 by 107.2 metres (final depth of 258 m for ES18-48ext). One hole was abandoned

(ES18-92 at 14.6 m). The northeast-striking Moni Trend is in the tonalite intrusion, about 500 metres

from the metasedimentary contact.

The results of the closely spaced holes on the Moni Prospect indicate good geometric continuity for

the northeast-striking quartz-feldspar pegmatitic vein, which starts at surface and has been tested to

a vertical depth of 40 metres along a 60-metre strike length (see Figures 5 and 6). The best results

include

42.37 g/t Au over

7.0 m

(hole ES18-100),

8.56 g/t Au over

8.4 m

(hole ES18-98) and

13.58 g/t Au over

2.5 m

(hole ES18-95). These drilling results correlate well with channel results

returning up to

79.5 g/t Au over

5.87 m

and

79.6 g/t Au over

4.25 m

(see press release of

October 17, 2017

).

The veining encountered during this detailed drilling phase shows variable width. Several holes

testing the Moni Prospect intersect a brittle post-mineralization fault causing strong fragmentation

and local core loss within some of the gold-bearing pegmatitic veins.

Gold values obtained in these veins are generally related to the presence of visible gold. The dense

drilling test below known surface mineralization was a useful tool for establishing the potential for

continuity of gold mineralization in a Moni Type vein system. The results increase the confidence for

successful drilling of similar veins.

Other drill intercepts along the Moni Trend returned encouraging values that may indicate multiple

subparallel high-grade veins within a 200-metre-wide corridor:

6.05 g/t Au over

3.5 m

(hole ES18-101)

15.7 g/t Au over

0.55 m

(hole ES18-102)

10.4 g/t Au over

1.5 m

(hole ES18-119)

The vein systems at the Moni Prospect and within the currently defined Moni Trend remain open at

depth and laterally, warranting additional trenching and drilling.

The

Contact Trend

has been drilled with twelve (12) holes totalling 3,097.4 metres. This includes

the extension of hole ES16-51 by 116.7 metres (final depth of 366 m for ES18-51ext). One hole was

abandoned (ES18-108 at

57.0 m

). Drilling confirms the presence of consistent gold mineralization

along a zone at least 1.2 kilometres long and 150 to 300 metres wide, adjacent to the contact with

the surrounding metasedimentary rocks.

The recent drilling phase shows a reasonably good geometric continuity of gold mineralization

identified in 2017 in three drill hole clusters (see Figures 3, 7 and 8). These zones remain open down

dip and along strike. From northeast to southwest, the clusters yielded the following results:

1.12 g/t Au over

33.6 m

and

0.69 g/t Au over

84.8 m

, including

1.17 g/t Au over

10.9 m

and

1.23 g/t Au over

16.1 m

(hole ES18-108a).

Hole ES18-108a represents the downdip extension of the following previously reported results:

1.46 g/t Au over 45.5 m, 0.53 g/t Au over

106.0 m

(hole ES17-77); and

0.65 g/t Au over

144.0 m

including

1.9 g/t Au over

22.5 m

,

4.74 g/t over

6.0 m

(hole ES17-

60).

This cluster trends northeast and is

200 m

long by

100 m

wide with a dip of 50 to 60 degrees to

the southeast.

1.41 g/t Au over

9.4 m

including

5.64 g/t Au over

1.0 m

and

2.18 g/t Au over

5.6 m

(hole

ES18-111); and

0.57 g/t Au over

143.1 m

including

5.0 g/t Au over

4.0 m

,

14.05 g/t Au over

1.0 m

,

0.81 g/t Au over

28.5 m

and

1.16 g/t Au over

6.7 m

(hole ES18-51ext).

Both holes represent the extension of the following previously reported results:

3.06 g/t Au over 77.3

m including

4.9 g/t Au over

45.0 m

(hole ES17-64)

1.58 g/t Au over

12.0 m

and

0.59 g/t Au over

28.5 m

(hole ES16-55)

0.45 g/t Au over

87.0 m

(hole ES17-74)

This cluster measures at least 300 metres by 50 metres and trends northeast with a possible

subhorizontal to shallow dip to the southeast.

2.18 g/t Au over

3.0 m

,

1.13 g/t Au over

9.9 m

and

0.62 g/t Au over

16.0 m

(hole ES18-

113).

This hole represents the extension of the following previously reported significant results:

0.49 g/t Au over

76.5 m

(hole ES17-87)

0.62 g/t Au over

147.5 m

including

1.11 g/t Au over

6.0 m

,

5.76 g/t Au over

9.0 m

(hole

ES17-80)

1.53 g/t Au over

6.0 m

and

3.15 g/t Au over

24.0 m

(hole ES17-88)

0.50 g/t Au over

123.5 m

including

4.45 g/t Au over

4.5 m

,

12.35 g/t Au over

1.5 m

and

1.04 g/t Au over

6.0 m

(hole ES17-90).

This cluster has a northeast trend with a minimum extent of 300 metres by 100 metres and a

possible subhorizontal dip.

Drilling also investigated an untested area between two drill hole clusters centred on ES18-111 and

ES18-113, respectively. Three holes have been drilled within a 500-metre interval. Salient results

are:

0.71 g/t Au over

43.4 m

including 10.2 g/t Au over

1.0 m

(hole ES18-112) and

0.48 g/t Au

over 15.4 m

(hole ES18-117).

Exploration Model and Upside

Several key factors point toward a

reduced intrusion-related deposit type

for the gold-bearing

system identified at Eleonore South (see press release of

February 27, 2018

). The Fort Knox

mine in

Alaska

(Kinross Gold Corporation) and the Côté Lake Project in

Ontario

(IAMGOLD)

are useful examples of large-scale intrusion-related gold deposits.

In this scenario, assessing the geometry of the intrusion and the surrounding metasedimentary

rocks is critical given that the tops of intrusions are typically viewed as highly prospective.

Subject to further validation, the intrusion appears to be a thick planar body (

450 m

to

500 m

thick) with a moderate to shallow dip to the south or southeast along its southern boundary, and

a dip to the west along its western boundary (JT Prospect area). In this geometric context, the

upper contact of the uneroded intrusion is overlain by metasediments.

Decompression along the upper contact of the tonalite intrusion may have been the main control

for mineralization along the

Contact Trend

, with decompression-related fracturing acting as a

conduit and trap for late-stage magmatic-hydrothermal fluids. The main features in this zone

include networks of veins and veinlets, stockworks, and quartz-feldspar pegmatites, all of which

are associated with large alteration zones (

200 m

to

400 m

thick).

Additional significant exploration upside exists within the portions of the tonalite that extend

below the metasediments, as shown by the results obtained in holes ES18-108a and ES18-113.

The same configuration exists at the JT Prospect where historical hole ES08-12 returned 2.15

g/t Au over

14 m

.

The metasedimentary rocks overlying the tonalite also appear to be highly prospective, as

illustrated by sediment-hosted gold mineralization at the JT Prospect; these warrant further

evaluation.

Future exploration at Eleonore South will focus on two main target types: the network of high-

grade veins along the

Moni Trend,

and the wide low-grade (0.5 g/t to 1.0 g/t Au) gold-bearing

system along the

Contact Trend

.

Drilling Contract and Analytical Protocol

The drilling contract was awarded to Chibougamau Drilling Ltd based in

Chibougamau, Quebec

. The

hole diameter is BTW. Drill core samples were sent to ALS Minerals in

Val-d'Or, Quebec

. Gold was

analyzed by fire assay with atomic absorption and gravimetric finish for grades above 3.0 g/t Au.

Samples were also analyzed for a 48-element suite using ICP. Azimut applied industry-standard

QA/QC procedures to the program. Certified reference materials, blanks and field duplicates were

inserted in all batches of drill core sent to the laboratory.

About the Eleonore South Joint Venture Property

The Eleonore South Property is a three-way joint venture between Azimut, Eastmain Resources Inc.

(TSX: ER) and Les Mines Opinaca Ltée ("Opinaca"), a wholly-owned subsidiary of Goldcorp Inc.

(TSX: G; NYSE: GG). Ownership in the Property is as follows: Azimut 26.6%,

Eastmain

36.7% and

Goldcorp 36.7%.

The 2017-2018 program is operated by Azimut under the supervision of Dr.

Jean-Marc Lulin

and the

field direction of François Bissonnette, both professional geologists. This press release was

prepared by

Jean-Marc Lulin

, acting as Azimut's qualified person under National Instrument 43-101.

About Azimut Exploration

Azimut is a mineral exploration company whose core business is centred on target generation and

concurrent partnership development. Targeting is performed using a pioneering proprietary approach

to Big Data analytics, enhanced by extensive exploration knowledge. The Company maintains

rigorous financial discipline and has 48.5 million shares outstanding.

Azimut holds a strategic position for gold and base metals in

Quebec

, including one of the largest

exploration portfolios in the

James Bay

region (21 properties covering 4,421 claims or 2,297 km

2

).

www.azimut-exploration.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

SOURCE

Azimut Exploration Inc.

View original content: http://www.newswire.ca/en/releases/archive/July2018/18/c1416.html

%SEDAR: 00003284E

For further information:

Jean-Marc Lulin, President and CEO, Tel.: (450) 646-3015, Fax: (450)

646-3045, [email protected]

CO: Azimut Exploration Inc.

CNW 10:00e 18-JUL-18