Azumah Resources Limited: 5,500m Drilling Campaign Commences

Ghana focused gold explorer and developer Azumah Resources Ltd. (ASX:AZM) (OTCMKTS:AZUMF) ("Azumah" or "the Company") advises that a 5,500m combined aircore and reverse circulation (RC) drilling campaign has commenced to test several high-priority targets at its Wa Gold Project, north-west Ghana ("Project").

- Existing and new targets to be tested at several high-priority locations

- Includes new target at Kjersti East where recent trenching returned up to 4m at 7.64g/t Au

- Combined Aircore and RC programme to be completed by end-September with results expected in October

Wa East

RC drilling will test multiple targets at Manwe (Josephine prospecting licence) for depth and strike extensions to high-grade mineralisation discovered earlier in the year (intersections obtained included 12m at 5.28g/t Au from 49m, 32m at 2.10g/t Au from surface and 4m at 2.67g/t Au from 4m), in the vicinity of artisanal miner workings and at an area of exceptionally high-grade auger assays of up to 2.4g/t Au (refer ASX release dated 29th February and 25th July 2016).

At Josephine East drilling will test a new area of anomalism where high-value rock chip samples were obtained from a small area of outcrop. RC drilling will also test for depth and strike extensions to mineralisation at the main Josephine area of workings.

At Madam's Farm, 4km northwest of the main Julie deposit, RC drilling will test a new area of auger and rock chip anomalism trending parallel to the Julie mineralisation. It is located on an east-west thrust fault that is a splay off the major Baayiri Fault system. Rock chips from active artisanal workings returned up to 91.1g/t Au from a series of quartz stringers in an intensely sheared basalt. Visible gold has been observed. Panning of both host rock and quartz vein samples produced an encouraging gold tail. A just completed 124-hole auger sampling programme has better defined the target anomaly ahead of drilling.

RC drilling at Julie Far East will test for eastern extensions offset to the main Julie deposits and mineralised trend.

The planned RC drilling at Kjersti East has been designed to follow-up high-grade anomalism identified in recent trenching that returned up to 4m at 7.64g/t Au adjacent to artisanal workings where several rock chip samples including 2.45g/t Au, 2.40g/t Au and 2.32g/t Au were also obtained. The target mineralisation trends northwest along the same structure that hosts the 79,000oz Collette Deposit, 10km to the east.

Wa-Lawra Trend

RC drilling at Bepkong North (~700m northwest of the Bepkong deposit) is targeting a left-step offset of the mineralisation trend to the north-northwest along a 'resistivity ridge', as interpreted from an induced polarisation geophysical survey. Aircore drilling to the north of Bepkong will also test some recently generated auger geochemical anomalies.

At Yagha, 10km north of Kunche, aircore drilling will test recently defined auger anomalies.

Julie West

Azumah has completed the task of integrating into its own database various datasets inherited with this recently acquired project (refer ASX release dated 27th April 2016). Field evaluation in the vicinity of the existing resources and at a number of other possible targets has been undertaken and some specific areas are now being assessed in more detail including with auger sampling.

Multiple Auger Campaigns Continue To Identify New Anomalies

Azumah continues its non-stop multiple auger campaigns across its licence holdings to generate new and refine existing targets ahead of follow-up aircore and RC drilling where warranted.

Extensive tracts of Azumah's Project tenure have yet to be systematically evaluated. Given the region's high prospectivity and the Company's track record of discovery, there remains considerable opportunity to increase the existing 2.0Moz Au Mineral Resources and 624,000oz Au Ore Reserves already delineated.

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About Azumah Resources Limited:

Azumah Resources Ltd. is a Perth-based, ASX-listed (ASX:AZM) (OTCMKTS:AZUMF) exploration company focused on a new and highly prospective gold province in the Upper West Region of Ghana, West Africa.

- Its focus is to develop the Wa Gold Project and to continue to expand resources and reserves through exploration.

- Licences cover 2,800km2 and encompass >150km strike of prospective Birimian terrain, the rocks that host the majority of West Africa's major gold mines.

- Systematic exploration has identified three flagship deposits: Kunche, Bepkong and Julie plus several satellite deposits.

- JORC Mineral Resource of 2.0Moz of gold grading 1.5g/t Au (1.3Moz Measured and Indicated).

- Feasibility Study completed in February 2015. Open pit mining inventory of over 650,000oz including a JORC Ore Reserve of 624,000oz Au (9.1Mt at 2.14g/t Au). Study based on +1.2Mtpa plant producing approx. 90,000oz Au per year over 7-year mine life.

- Grid power, high quality roads, good access to water and sealed airstrip at Wa.

- Mining Leases granted. Environmental permitting underway.

- Strong community and government support.

- 19.99% strategic investment in neighbour, Castle Minerals Limited (ASX:CDT) (~10,000km2 under licence).

- Ghana is 2nd largest African gold producer. Safe and stable jurisdiction, English legal system.

- Drilling programme commenced.



Contact:

Azumah Resources Ltd.
Stephen Stone, Managing Director
T: +61-418-804-564
E: stone@azumahresources.com.au