Azucar Hits 118.0 M of 0.70 G/T Au and 0.23% Cu at Norte Zone, Provides Drilling

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NEWS RELEASE

September 27 th , 2018

Trading Symbols:

TSX-V: AMZ; OTCQX: AXDDF

www.azucarminerals.com

AZUCAR HITS 118.0 M of 0.70 g/t Au and 0.23% Cu AT NORTE ZONE,

PROVIDES DRILLING UPDATE FOR 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 Norte zone and at the very north end of the Villa Rica target which is

located south of the Norte zone. Results received to date from the ongoing drilling program include the following

highlights:

Hole EC-18-049 NORTE ZONE, 180 Az, -45 dip

From 243.50 to 593.00, 349.50 metres @ 0.22 g/t gold and 0.15% copper

Including 315.50 to 359.50, 44.00 metres @ 0.47 g/t gold and 0.32% copper

And 317.50 to 327.50, 10.00 metres @ 0.88 g/t gold and 0.47% copper

And 341.50 to 351.50, 10.00 metres @ 0.52 g/t gold and 0.39% copper

Hole EC-18-051 NORTE ZONE, 325 Az, -55 dip

From 314.00 to 541.00, 227.00 metres @ 0.37 g/t gold and 0.14% copper

Including 332.00 to 344.00, 12.00 metres @ 0.80 g/t gold and 0.32% copper

And 387.50 to 463.00, 75.50 metres @ 0.61 g/t gold and 0.19% copper

And 396.00 to 408.50, 12.50 metres @ 1.17 g/t gold and 0.33% copper

From 603.00 to 721.00, 118.00 metres @ 0.70 g/t gold and 0.23% copper

Including 643.00 to 663.00, 20.00 metres @ 0.96 g/t gold and 0.31% copper

And 703.00 to 709.00, 6.00 metres @ 1.09 g/t gold and 0.34% copper

An extensive geologic review of drill and exploration data has resulted in several key interpretations including the

following:

 The porphyry systems identified to date at the El Cobre project are all shallowly eroded, with the depth

potential intact. At the Porvenir and Norte zones erosion is deepest and has exposed the very top of the

mineralised part of these systems including, at Norte, the tops of high-grade zones open to depth. The Villa

Rica system is less eroded and only the top of the mineralised system and intrusive complex has been cut in

drilling to date.

 At the Norte zone statistical analysis of the metal distribution shows that the mineralisation is trending NE-

SW, a different orientation to that thought and planned for with previous drilling.

 The enriched chalcocite zone intercepted in previous Villa Rica drilling (hole EC-17-041, 94.00 m of 1.36%

Cu and 0.07 g/t Au) does not appear to relate to hypogene mineralisation intersected to date at Villa Rica

and most likely has been transported from an unidentified hypogene source.

Step out and infill drilling at Norte has been modified based on these observations. At Norte several potential high

grade zones have been mapped in past drilling and current drilling is now underway to intersect these zones at depth

with holes also planned to define the limits of mineralisation along the new trend identified. The Company anticipates

drilling to be underway with one or more rigs throughout the course of 2018 to test all targets currently defined.

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J. Duane Poliquin, Chairman of Azucar commented, “We are very excited to commence what we anticipate being a

comprehensive two year intensive drill program at the El Cobre project. The results over the past two years have

shown the potential for multiple porphyry centres over a five kilometre strike. We look forward to reporting drill results

as we move forward.”

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 and apart from preliminary work in 2017 has

never been drill tested in past programs. 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 mineralization 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. Azucar is currently following up these results with some additional drilling

at Encinal.

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

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

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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 .

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 active drill campaigns in 2018 and 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/