2018 Trading Symbols

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NEWS RELEASE

December 18 th , 2018

Trading Symbols:

TSX-V: AMZ; OTCQX: AXDDF

www.azucarminerals.com

AZUCAR HITS 70.20 M of 1.07 G/T AU and 0.35% CU AT THE NORTE TARGET, EL COBRE

PROJECT, MEXICO

VANCOUVER, B.C. Azucar Minerals Ltd. ("Azucar" or the "Company") (TSX-V: AMZ; OTCQX: AXDDF) is pleased to

announce results from its ongoing drilling program at the El Cobre porphyry copper-gold project in Veracruz State,

Mexico. Drilling is currently underway at the Villa Rica target, the Norte zone and Porvenir zone using three rigs.

Interpretation of the results to date from the Norte zone provide the following observations:

 Mineralisation appears to trend in a northeast/southwest direction;

 A late-mineral and barren to weakly mineralised intrusive occurs in the middle of the Norte zone

mineralisation but “tops out” about 400 metres below the current surface. Mineralisation therefore occurs

above and on either side of the late intrusive, in effect mantling it. The late intrusion likely displaced

mineralisation laterally when it was emplaced and mineralisation may be preserved along its flanks;

 The mineralisation is currently interpreted to remain open to depth, on either side of the late intrusion and

along strike to the northeast.

The results from the Norte zone drilling reported today include the following highlights:

Hole EC-18-053 NORTE TARGET, 325 Az, -65 dip

From 375.00 to 606.50, 231.50 metres @ 0.45 g/t gold and 0.17% copper

Including 377.00 to 509.00, 132.00 metres @ 0.68 g/t gold and 0.24% copper

And 394.80 to 465.00, 70.20 metres @ 1.07 g/t gold and 0.35% copper

And 394.80 to 428.00, 33.20 metres @ 1.54 g/t gold and 0.49% copper

Hole EC-18-055 NORTE TARGET, 310 Az, -60 dip

From 370.50 to 616.00, 245.50 metres @ 0.39 g/t gold and 0.17% copper

Including 372.50 to 521.00, 148.50 metres @ 0.54 g/t gold and 0.22% copper

And 414.30 to 473.35, 59.05 metres @ 0.87 g/t gold and 0.32% copper

And 426.10 to 459.40, 33.30 metres @ 1.10 g/t gold and 0.39% copper

Hole EC-18-058 NORTE TARGET, 360 Az, -65 dip

From 360.60 to 609.50, 248.90 metres @ 0.39 g/t gold and 0.19% copper

Including 519.00 to 593.50, 74.50 metres @ 0.67 g/t gold and 0.33% copper

And 569.60 to 591.50, 21.90 metres @ 1.22 g/t gold and 0.55% copper

J. Duane Poliquin, Chairman of Azucar commented, “We continue to advance our understanding of the Norte zone

with the ongoing drill program. With our current understanding we have been able to plan holes to test for deep high

grade mineralisation and to step out beyond the current known mineralisation. We look forward to reporting results as

the program continues.”

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About the El Cobre Project

The El Cobre Project has a total area of approximately 7,000 hectares and is located adjacent to the Gulf of Mexico,

about 75 kilometres northwest of the major port city of Veracruz, Mexico in an area of excellent infrastructure. The

project is situated 200 metres above sea level with extensive road access and is located less than 10 kilometres from

a power plant, highway, gas line and other major infrastructure. Major power lines cross the property area.

The four copper-gold porphyry targets currently known within the El Cobre Project, Encinal, El Porvenir, Norte and

Villa Rica are defined by distinct Cu-Au soil anomalies, discrete, positive magnetic features and a large IP

chargeability anomaly. The largest target area is the Villa Rica Zone which has only seen limited initial exploration

drilling. An overview of the targets’ results to date are summarised below and a map is attached.

El Porvenir Zone: Drilling has demonstrated that the system persists at least to 400 m depth. Significant

copper and gold grades were intersected such as 0.16% Cu and 0.39 g/t Au over 290 m in hole DDH04CB1.

In addition, hole EC-13-004 intersected 0.23% Cu and 0.36 g/t Au over 106 m, to a depth of 504 m, again

indicating potentially significant mineralisation at depth. Results from minimal drilling in 2017 include hole

EC-17-040 which intersected 108.00 metres grading 0.88 g/t Au and 0.29% Cu, and hole EC-17-044 which

intersected 40.25 metres grading 0.50 g/t Au and 0.25% Cu.

Encinal Zone: Hole CB5 intersected a highly altered breccia pipe containing fragments of stockwork veining

and porphyry mineralisation across which 18.28 metres returned 1.42 g/t Au and 0.10% Cu. The breccia

pipe occurs in a large alteration zone, IP chargeability high and magnetics low which has not been tested to

depth. On June 19, 2017 Azucar announced that a new area of exposed stockwork quartz veining and gold

mineralisation had been identified in the Encinal Zone. On June 29, 2017 Azucar announced the results of

initial drilling on this exposed stockwork (Hole EC-17-025) which returned results including 34.47 metres

grading 0.73 g/t Au and 0.20% Cu.

Norte Zone: All five holes drilled in the Norte Zone prior to 2016 intersected porphyry-style mineralisation.

Hole 08-CBCN-022, one of the deepest holes drilled at Norte in 2008, returned values of 0.14% Cu with 0.19

g/t Au over 259 m and 08-CBCN-19 intersected 41.15 metres averaging 0.42 g/t gold and 0.27% copper to

the end of the hole at 187.45 metres. Drilling at the Norte Zone in 2016 and 2017 has resulted in the highest

grade intersections to date at the El Cobre project, including 114.60 metres grading 1.33 g/t Au and 0.48%

Cu (Hole EC-17-018, see press release of April 5, 2017), 80.50 metres grading 1.34 g/t Au and 0.46% Cu

(Hole EC-16-012, see press release of October 24, 2016), 70.45 metres grading 2.32 g/t Au and 0.59% Cu

(Hole EC-17-026, see press release of July 25, 2017), and 534.90 metres grading 0.90 g/t Au and 0.30% Cu

(Hole EC-17-029, see press release of August 15, 2017). Since the Norte Zone discovery, Azucar has been

carrying out a systematic drill campaign to define this target. Future Norte drilling will focus on step-out and

infill drilling, in addition to testing the system to depth.

Villa Rica Zone

The Villa Rica Zone is a roughly 2.5 kilometre by 1 kilometre area of hydrothermal alteration defined also by

a strong north-northwest trending magnetic-chargeability high and associated copper-gold soil geochemical

anomalies. Past mapping and sampling defined several areas of exposed porphyry mineralisation within the

Villa Rica target area including the Raya Tembrillo Zone and the Naranjo zone, both at the north end of the

Villa Rica zone. Initial drilling in 2017 on the Raya Tembrillo zone intersected two styles of mineralisation;

hypogene copper-gold porphyry mineralisation (115.00 metres of 0.57 g/t gold and 0.27% copper, see press

release of November 28, 2017) and near surface exotic enriched copper mineralisation with an apparent

tabular distribution (94.00 metres of 1.36% copper; see press release of December 13, 2017).

More information on El Cobre is available on the Azucar website at http://www.azucarminerals.com .

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Azucar also announces that, pursuant to its Stock Option Plan, it has granted stock options to certain directors and

officers of the Company to purchase an aggregate 330,000 common shares in the capital of the Company at an

exercise price of $0.39 per share which expire on December 15, 2020.

Larry Segerstrom, M.Sc. (Geology), P.Geo., A Director of the Company, is a Qualified Person as defined by National

Instrument 43-101 ("NI 43-101") and has reviewed and approved the contents of this news release. The porphyry

mineralisation reported in this news release is associated with broad areas of alteration and stockwork veining. True

widths cannot be determined at this time. The analyses reported were carried out at ALS Chemex Laboratories of

North Vancouver using industry standard analytical techniques. For gold, samples are first analysed by fire assay and

atomic absorption spectroscopy (“AAS”). Samples that return values greater than 10 g/t gold using this technique are

then re-analysed by fire assay but with a gravimetric finish. For copper, samples are first analysed by Inductively

Coupled Plasma – Atomic Emission Spectroscopy (“ICP-AES”), with four acid digestion. Samples that return values

greater than 10000 g/t copper using this technique are then re-analysed by HF-HNO3-HCLO4 digestion with HCL

leach and ICP-AES finish. Blanks, field duplicates and certified standards were inserted into the sample stream as

part of Azucar’s quality assurance and control program which complies with National Instrument 43-101

requirements. A NI 43-101 compliant technical report on the El Cobre project entitled, "Technical Report on the El

Cobre Property” was filed in May 2015 and can be obtained from www.sedar.com.

About Azucar

Azucar is an exploration company with a mandate to thoroughly explore the El Cobre project in Veracruz, Mexico, an

~7,000 Ha property which covers multiple gold-rich porphyry targets, as demonstrated by recent drilling. Azucar is

permitted and funded for an active drill campaign in 2019. Azucar holds a 100% interest in the El Cobre project,

subject to net smelter returns (“NSR”) royalty interests, assuming production from the property exceeds 10,001

tonnes per day of ore, totaling 2.25% which can be reduced to 2.0% though the payment of US$3.0 million.

On behalf of the Board of Directors,

“Morgan Poliquin”

Morgan J. Poliquin, Ph.D., P.Eng.

President, CEO and Director

Azucar Minerals Ltd.

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

Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within it, other than

statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in

such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance

and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual

results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes,

continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances

that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties.

We do not assume any obligation to update any forward-looking statements, other than as required pursuant to applicable securities

laws.

Contact Information:

Azucar Minerals Ltd.

Tel. 604.689.7644

Email: [email protected]

http://www.azucarminerals.com/