Azimut Exploration Inc.

Nunavik

POLYMETALLIC

1 Rex (Cu-Au-REE)

2 Duquet (Au-Ag-Cu)

3 Rex South (Cu-Au-W)

URANIUM

GOLD

REX SOUTH PROPERTY

General location map showing the main deposit types and prospects of the Rex South Property and other Azimut holdings in Nunavik, Northern Quebec. The Rex, Duquet, Rex South and NCG properties are positioned along the 300-kilometre-long Rex Trend.

Main mineralized zones and deposit types on the wholly-owned Rex South polymetallic (Cu-Au-W) property, one of four Azimut properties covering the Rex Trend in Northern Quebec.

Polymetallic (copper-gold-tungsten) property

The wholly-owned polymetallic Rex South Property (1,454 claims as at April 21, 2016; 633.0 km²) covers a largely outcropping 60-kilometre-long area located approximately 110 km east of Hudson Bay and the coastal community of Puvirnituq, in Nunavik, Northern Quebec.

Key Coverage of the Rex Trend

The Rex South Property occupies the middle segment of the Rex Trend, which management considers to be a new mineral province with the potential to host large-scale deposits, including iron oxide copper-gold (“IOCG”), intrusion-related polymetallic and sediment-hosted gold. The Rex Trend shares similarities with the Carajás Mineral Province in Brazil.

Exploration programs

In 2012, Azimut completed a self-financed $360,000 exploration program in Nunavik that included infill grab sampling on two large zones of the Rex South Property. In 2011, Azimut’s former partner Aurizon Mines Ltd operated a jointly designed comprehensive exploration program to follow up on the results of Azimut’s 2010 program comprising property-wide airborne geophysics (5,410 line-km), a detailed lake-bottom sediment geochemical survey (765 samples) and prospecting. The 2011 program consisted of ground-based geophysical surveys (53.9 linekm of IP and 149.5 km of magnetics), 257 infill lake-bottom sediment samples, 2,530 prospecting samples, 145.35 m of channel samples (149 samples from 16 channels) and 4,934 m of drilling in 53 holes on two zones (4,467 m of rotary and 467 m of RC; total of 3,171 samples).

Mineralized zones

The above work yielded more than 30 new mineralized zones and prospects on Rex South (see map). The most important are discussed below.

Augossan Zone
The Augossan Zone (gold-silver-copper-tungsten-tin) is the largest and represents the first reported occurrence of significant tungsten grades in the Nunavik region. Other commodities of interest are bismuth, tantalum, beryllium, rubidium, molybdenum, rhenium, tellurium and lithium.

The Augossan Zone represents a large polymetallic envelope at the contact between a fluorite-topaz-bearing granitic intrusion (the Qalluviartuuq Intrusive Complex) and volcano-sedimentary rocks. It is 7,000 m long and 100 to 350 m wide, as defined by drilling, channelling and prospecting data. It remains open in all directions, notably toward the intrusion.

The best grades among 78 grab samples collected in 2012, mostly from outcrops, are as follows:

Copper (%)	Tungsten (%)	Gold (g/t)	Silver (g/t)	Sample #
0.84	1.03	-	31.4	L253840
1.71	0.02	1.3	17.9	L253842
1.27	0.18	-	45.1	L253839
0.37	0.21	0.6	62.3	L253836
0.09	1.35	0.4	-	L253803
1.08	0.02	0.6	9.0	L253849

The results for the 788 grab samples collected from this zone from 2010 to 2012 can be summarized as follows:

Copper: 136 samples returned grades higher than 0.1% Cu,
including 25 samples with grades ranging from 0.5% to 2.56% Cu
Tungsten: 71 samples returned grades higher than 0.05% W,
including 49 samples with grades ranging from 0.1% to 4.62% W
Gold: 141 samples returned grades higher than 0.1 g/t Au,
including 28 samples with grades ranging from 1.0 g/t to 23.3 g/t Au
Silver: 209 samples returned grades higher than 1.0 g/t Ag,
including 49 samples with grades ranging from 10.0 g/t to 90.0 g/t Ag

Channel sampling highlights from 2011 included the following: 13.75 g/t Au, 15.8 g/t Ag and 0.23% Cu over 1.1 m; 3.15% W over 1 m; and 0.64% W over 3 m. Channels were cut at 90 degrees to the apparent orientation of mineralization.

Drilling highlights from 2011 include the following: 0.14% W over 15.24 m with an interval of 4.20 g/t Ag, 893 ppm Bi, 0.12% W, 0.35% Cu over 7.62 m; 1.28 g/t Au, 8.41 g/t Ag, 0.12% Cu over 6.1 m; 1.10 g/t Au, 2.60 g/t Ag over 9.14 m; 0.56% W, 2.84 g/t Ag, 0.11% Cu over 1.52 m. True widths of the drilling intervals were estimated to be approximately 75% to 100% of core length.

Anorthosite Zone
The gold-copper-tungsten Anorthosite Zone was discovered in 2010 several km south of the Augossan Zone. A few reconnaissance holes and prospecting data outlined a preliminary envelope 4 km long by 200 m wide with Au, Ag, Cu, W and Te mineralization.

Copperton Zone
The Copperton Zone, discovered about 5 km southeast of the Anorthosite Zone, is 3,500 m long by 20 to 100 m wide. The zone’s characteristic chalcopyrite and pyrite mineralization occurs as disseminations, veinlets and massive sulphide lenses hosted in a variably sheared, steeply dipping feldspathic intrusion, as well as amphibolites and gneissic metasediments. Results from the 2012 infill sampling program revealed consistent copper-gold-silver grades within the known envelope. The best grades among the 218 grab samples are as follows:

Copper (%)	Gold (g/t)	Silver (g/t)	Sample #
7.37	3.86	56.9	L253563
2.17	9.56	31.4	L253585
1.19	1.96	11.5	L253742
0.74	4.62	4.46	L253549

The results for all 273 samples collected from Copperton Zone in 2011 and 2012 can be summarized as follows: Copper: 91 samples returned grades higher than 0.1% Cu, including 32 samples ranging from 0.5% to 9.28% Cu Gold: 89 samples returned grades higher than 0.1 g/t Au, including 19 samples ranging from 1.0 g/t to 9.56 g/t Au Silver: 77 samples returned grades higher than 1.0 g/t Ag, including 14 samples ranging from10.0 g/t to 82.7 g/t Ag Several samples returned significant tellurium (up to 38.4 g/t Te) and cobalt values (up to 500 ppm Co).

Aura-Pegor Zone
The Aura–Pegor Zone, 2 km long, is characterized by disseminated pyrite and strong alteration, including tourmaline in veinlets or stockworks accompanied by silica and albite. Grab sample assays include 15 samples with grades ranging from 0.5 g/t Au to 11.75 g/t Au. In addition, this zone presents anomalous values in copper (up to 0.37% Cu), tungsten (up to 0.06% W), bismuth (up to 0.14% Bi) and tellurium (up to 34 g/t Te).

Jemima Zone
The Jemima Zone forms a mineralized corridor 2 km long by 30 to 100 m wide, characterized by disseminated to semi-massive chalcopyrite and bornite associated with hematite-magnetite in veins, veinlets or as breccia cement, accompanied by strong pervasive potassic alteration, silica, chlorite and epidote. Mineralization and associated alteration are related to a brittle structure that clearly crosscuts the Archean gneissic country rocks. Assays for 15 grab samples ranged from 0.5% to 2.86% copper, up to 0.17% molybdenum and up to 0.422 g/t rhenium.

Evidence of large-scale systems and comparison to other mineral provinces

Overall, the Rex South Property demonstrates evidence for two types of district-scale mineralized systems:

A system mainly emplaced around the ovoid-shaped, fluorite-topaz-bearing Qalluviartuuq Intrusive Complex measuring 15 km by 5 km. This includes the Augossan, Anorthosite and Copperton zones, and the Pegor, Ferrus, Dragon and Le Breuil prospects. Considerable additional exploration potential exists along the 30kilometre contact between the intrusion and the volcano-sedimentary host rocks, as well as within the intrusion itself. This 30-kilometre prospective trend is marked by a linear magnetic anomaly around the intrusion. The Aura-Pegor and Le Breuil zones, both characterized by abundant tourmaline and lesser fluorite, may represent a less eroded part of the system (possible roof zones) along the NW and SE extensions of the Augossan trend.
IOCG mineralization associated with brittle structures and characterized by copper-dominant values accompanied by hematite and pervasive potassic alteration, represented by the Jemima Trend and the Sombrero and Impact prospects. The Larissa, Agaku-1, Agaku-2, Agaku-4 prospects may also represent IOCG mineralization.

A comparison can be made between the context of the Rex Trend (i.e., the Rex, Duquet, Rex South and NCG properties) and the world-class Carajás Mineral Province in Brazil. The latter hosts several large IOCG deposits (Sossego, Salobo, Alemao, Gameleira and Cristalino) and intrusion-related Cu-Au-(W-Bi-Sn) and W deposits (Breves, Aguas Claras) associated with anorogenic granite intrusions. The ages for the Carajás IOCG deposits range from Archean (2.77 Ga) to Paleoproterozoic (1.73 Ga), and the intrusion-related Breves deposit is Paleoproterozoic (1.88 Ga). The Breves deposit (50 Mt @ 1.22% Cu, 0.75 g/t Au, 2.4 g/t Ag, 0.12% W, 70 ppm Sn, 175 ppm Mo, and 75 ppm Bi) has a number of features in common with the Qalluviartuuq mineralized system at Rex South, particularly the presence of fluorite, tourmaline, chalcopyrite, pyrite, arsenopyrite, wolframite, cassiterite, bismuthinite and native bismuth.