Wavefront Technology Solutions Inc. - Interim / Quarterly Report 2022

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MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three-month period ended November 30, 2021

SCOPE OF MANAGEMENT’S FINANCIAL ANALYSIS .................................................................................... 2 CORPORATE PROFILE AND MISSION ............................................................................................................... 2 OVERALL PERFORMANCE .................................................................................................................................. 3 ENVIRONMENTAL, SOCIAL AND GOVERNANCE .......................................................................................... 3 EXPLORATION AND EVALUATION ASSETS ................................................................................................... 4 JAMES BAY REGION ............................................................................................................................................. 8 NUNAVIK REGION ............................................................................................................................................... 34 OUTLOOK .............................................................................................................................................................. 42 SELECTED FINANCIAL INFORMATION .......................................................................................................... 44 RESULTS OF OPERATIONS ................................................................................................................................ 44 OTHER INFORMATION ....................................................................................................................................... 45 CASH FLOWS, LIQUIDITY AND CAPITAL RESOURCES .............................................................................. 45 QUARTERLY INFORMATION ............................................................................................................................ 46 CONTRACTUAL OBLIGATIONS ........................................................................................................................ 46 OFF-BALANCE SHEET ARRANGEMENTS ....................................................................................................... 46 CARRYING AMOUNT OF EXPLORATION AND EVALUATION ASSETS ................................................... 46 RELATED PARTY TRANSACTIONS .................................................................................................................. 46 SUBSEQUENT EVENT ......................................................................................................................................... 47 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ............................................................................... 47 NEW ACCOUNTING STANDARDS OR AMENDMENTS ................................................................................ 47 CRITICAL ACCOUNTING POLICIES AND ESTIMATES................................................................................. 47 INFORMATION REGARDING OUTSTANDING SHARES ............................................................................... 47 ADDITIONAL INFORMATION AND CONTINUOUS DISCLOSURE ............................................................. 48 CAUTION REGARDING FORWARD-LOOKING INFORMATION .................................................................. 48 CORPORATE INFORMATION ............................................................................................................................. 49

SCOPE OF MANAGEMENT’S FINANCIAL ANALYSIS

This management discussion and analysis (“MD&A”) report represents a complementary addition to the unaudited condensed interim financial statements of Azimut Exploration Inc. (“Azimut” or the “Company”) by providing additional contextual and prospective information on the Company’s financial position and operating performance for the three-month period ended November 30, 2021 (“Q1 2022”). This report should be read in conjunction with the Company’s unaudited condensed interim financial statements for Q1 2022, and the audited annual financial statements for the year ended August 31, 2021 (“Fiscal 2021”), prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). All figures are in Canadian dollars, unless otherwise noted, which is the functional currency and the presentation currency of the Company.

CORPORATE PROFILE AND MISSION

Azimut is a publicly traded Canadian exploration-stage company with a solid reputation for target generation and partnership development. It is listed on the TSX Venture Exchange (“TSXV”) under the symbol AZM. The Company is actively advancing its wholly owned flagship Elmer project in the James Bay region to the resource stage.

Azimut uses a pioneering approach to big data analytics (the proprietary AZtechMine[TM] expert system) to maximize the probability of discovery, enhanced by extensive exploration know-how. Azimut’s competitive edge is based on systematic regional-scale data analysis and concurrently active projects. The Company holds one of the largest mineral property portfolios in Quebec, recognized as a leading mining jurisdiction in the world. Azimut maintains rigorous financial discipline and a strong balance sheet, and has 81.8 million shares issued and outstanding as at January 27, 2022.

As at January 27, 2022, the Company holds an exploration portfolio of 12,477 claims in Quebec (12,586 claims – November 30, 2021) representing twenty-nine (29) exploration properties ( Figure 1 ). The portfolio is subdivided below by region and commodity of interest:

James Bay:

19 gold or gold-copper properties
5 in the Elmer Discovery Sector (Elmer, Elmer South, Pilipas, Wapatik, Munischiwan)
8 in the Trans-Taiga Road Sector (Corvet, Dalmas, Galinée, Kaanaayaa, Kukamas, Pikwa, Pontois and Desceliers)
4 in the Eleonore Gold Camp (Eleonore South, Opinaca A, Opinaca B and Opinaca D)
1 in the Eastmain Reservoir Sector (Wabamisk)
1 in Eastern James Bay (Valore)
2 base metal properties (Corne and Mercator)
1 chromium property (Chromaska)
1 nickel project (James Bay Nickel or “JBN”)

Nunavik:

3 gold-polymetallic properties (Rex-Duquet, Rex South and Nantais)
1 copper property (Doran)
1 uranium property (North Rae)
1 diamond property (Diamrex)

Azimut owns a 100% interest in nineteen (19) of the properties and partial interests in ten (10) others representing joint venture projects: 23.77% in Eleonore South, 49% in Wabamisk, 25% in Opinaca B, and 50% in each of Opinaca A, Dalmas, Galinée, Munischiwan, Pikwa, Pontois and Desceliers.

Jean-Marc Lulin, P.Geo., Azimut’s President, CEO and Director, is a qualified person under National Instrument 43-101 (“NI 43-101”) and has reviewed the technical disclosures presented in subsequent sections. All claim totals, surface areas and property descriptions are effective as at January 27, 2022.

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OVERALL PERFORMANCE

Summary of exploration activities for the current quarter and subsequent activities:

Azimut mandated InnovExplo Inc. (“InnovExplo”), a geological and mine engineering consulting firm based in Vald’Or (Quebec), to prepare a maiden resource estimate for the Patwon Gold Zone on its flagship Elmer project in the James Bay region (press release (“PR”) of January 27, 2022). The Company also retained the services of Lise Chénard, P.Eng., to act as the Company’s senior advisor in mining geology.
Azimut and Mont Royal Resources Ltd (“Mont Royal”) reported encouraging prospecting results from their initial exploration program on the Wapatik Property in the James Bay region, with the discovery of a nickel-copper ultramafic intrusion (PRs of October 25 and December 7, 2021).
Azimut announced a major nickel position in the James Bay region after acquiring a new portfolio of 57 attractive nickel targets (PR of November 30, 2021).
Azimut reported positive initial metallurgical results (gold recoveries up to 94%) for gold-mineralized material from the Patwon Zone (PR of November 22, 2021).
After announcing the commencement of a 20,000-metre drilling program to advance the Elmer Property toward a maiden resource estimate (PR of October 18, 2021), Azimut strengthened the high-grade core of the Patwon Zone with 25 drill hole intercepts that yielded an average true width of 45 metres grading 2.86 g/t Au (PR of November 4, 2021), and also obtained excellent results within a 2-kilometre-long target parallel to Patwon, including 122 g/t Au, 160 g/t Ag and 307 g/t Te over 0.5 m (PR of November 11, 2021).
Azimut and SOQUEM drilled eight (8) targets on the district-scale Rex and Rex South copper-gold properties in the Nunavik region of Quebec; assay results are pending (PR of September 15, 2021).

Financial and corporate highlights for Q1 2022:

In December 2021, Mathieu Landry left the position of VP Technology Business Development to become a senior consultant to the Company (PR of December 7, 2021). In January 2022, Glenn Mullan was appointed as Chair of the Board (PR of January 24, 2022).
Azimut ended Q1 2022 with working capital of $23.1 million[1] ($7.1 million – Q1 2021). Management believes it has sufficient funds to pay its ongoing general and administration (“G&A”) expenses and to meet its liabilities, obligations and existing commitments for at least twelve (12) months after Q1 2022.
Azimut incurred $2.3 million in exploration and evaluation (“E&E”) expenditures during Q1 2022.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

Azimut is dedicated to conducting exploration activities safely while minimizing environmental impacts and respecting local communities. Efforts are deployed to maintain and continuously improve internal management systems.

As part of its environmental, social and governance (“ESG”) commitments, Azimut has taken the following actions to ensure the Company follows best practices for sustainable development, responsible investment and compliance with industry health & safety practices and applicable regulations.

ECOLOGO certification

The Company has initiated the process to obtain the UL ECOLOGO® certification. The objective of this program is to promote the widespread application of environmental, social and economic best practices in the mineral exploration industry.

Health and safety

All of the Company’s field work activities adhere to required operational rules relating to the COVID-19 pandemic.
The Company upgraded its standards regarding personal protective equipment to address the cold working conditions encountered during winter drilling programs.

1 For ease of reading and comparison, dollar amounts in the text of this MD&A, other than equity and exercise prices, are rounded to one decimal place for amounts over $1,000,000, to the nearest thousand between $1,000 and $1,000,000, and to the nearest hundred if less than $1,000. For the exact amounts, refer to the tables in this MD&A and to the accompanying financial statements.

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Environment stewardship

The Company routinely obtains all required permits before carrying out its field work activities to ensure compliance with environmental laws.
After completing exploration programs in Nunavik, the Company ships out scrap metal for recycling.

Community relations

Azimut sends letters to communities to inform them of the Company’s exploration activities, in compliance with provincial law.
The Company engages the services of a local Inuit business to provide logistical support for the Nunavik exploration programs.

EXPLORATION AND EVALUATION ASSETS

In Q1 2022, Azimut incurred E&E expenditures of $2.3 million ($2.2 million – Q1 2021). The majority were incurred in the James Bay region on the Elmer Property (100% Azimut) and acquiring the JBN nickel project by staking.

Table 1 and Table 2 detail the type of work done and paid for by the Company on its E&E assets for Q1 2022 and Q1 2021, respectively. All properties are located in the province of Quebec, Canada.

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Figure 1: Map of Azimut’s exploration property portfolio in Quebec.

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Table 1: Change in E&E assets – Q1 2022

Net book value as at August 31, 2021 $ 10,460,788 2,251,179 54,434 111,326 1,632,245 16,836 8,442 14,680 31,491 73,791 94,191 55,957 35,874 155,276 23,496	Acquisition costs	Exploration costs Geochem. surveys Geol. surveys Geophys. surveys Drilling Stripping Admin. and others Depreciation of property and equipment Costs incurred during the period Option payment Impairment Net book value as at November 30, 2021 $ $ $ $ $ $ $ $ $ $ $ (886) 338,822 656 1,598,544 3,727 7,688 - 1,959,758 - - 12,420,547 321 8,167 - 2,344 - - - 19,087 - - 2,270,262 - - - - - - - - - - 54,434 - 199 - - - - - 199 - - 111,526 - 400 - 800 - 1,848 - 3,048 - - 1,635,292 - - - - - - - - - - 16,836 - - - - - - - - - - 8,442 - 44 - - - - - 44 - - 14,725 - - 400 - - - - 400 - - 31,891 - 5,888 - - - - - 7,136 - - 80,927 - 6,300 - - - - - 11,148 - - 105,338 - - - - - - - - (20,000) - 35,957 - 5,700 - - - - - 5,700 - - 41,574 27,691 5,800 - - - - - 33,491 - - 188,768 (3,120) - - - - - - - - - 23,496
	Claims & permits $ 11,208 8,256 - - - - - - - 1,248 4,848 - - - 3,120
15,020,006	28,680	24,005 371,320 1,0561,601,687 3,727 9,536 - 2,040,012 (20,000) - 17,040,017
63,348 37,663 - 3,624	- - 152,422 -	- 9,150 - - - - - 9,150 - - 72,499 - 9,150 - - - - - 9,150 - - 46,813 - - - - - - - 152,422 - - 152,422 - - - - - - - - - - 3,624
104,635	152,422	- 18,300 - - - - - 170,722 - - 275,358
15,124,641	181,102	24,005 389,620 1,056 1,601,687 3,727 9,536 - 2,210,734 (20,000) - 17,315,374
1,182,722 649,719 197,289	- - -	- - - - - 1,288 13,224 14,512 - - 1,197,235 - - - - - 1,288 31,464 32,752 - - 682,470 - - - - - - - - - - 197,289
2,029,730	-	- - - - - 2,575 44,688 47,263 - - 2,076,994
68,638	-	- 5,700 - - - - - 5,700 - - 74,338
68,638	-	- 5,700 - - - - - 5,700 - - 74,338
-	139	- - - - - - - 139 - - 139
-	139	- - - - - - - 139 - - 139
-	52,948	13,893 - - - - - - 66,841 - - 66,841
-	52,948	13,893 - - - - - - 66,841 - - 66,841
2,098,368	53,087	13,893 5,700 - - - 2,575 44,688 119,944 - - 2,218,312
17,223,009	234,189	37,899 395,320 1,056 1,601,687 3,727 12,111 44,688 2,330,677 (20,000) - 19,533,687

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Table 2: Change in E&E assets – Q1 2021

Mineral property James Bay Elmer Duxbury SOQUEM Dalmas Galinée Eleonore South Opinaca A Opinaca B Opinaca D Wabamisk Corvet Kukamas Wapatik Pilipas Kaanaayaa Others Total – Gold Chromaska Total – Chromium-PGE Mercator Corne Doran Other Total – Base Metals Total – James Bay Nunavik Rex Duquet Rex South Nantais NCG Total – Gold North Rae Total - Uranium Total – Nunavik Total – E&E assets	Net book value as at August 31, 2020 $ 4,467,334 202,074 1,205,857 48,503 76,578 1,625,627 69,489 6,547 304,129 30,806 72,314 92,162 44,934 21,730 71,702 16,225	Acquisition costs	Geochem. surveys Geol. surveys Geophys. surveys Drilling Stripping Admin. and others Depreciation of property and equipment Costs incurred during the period Credit on duties refundable for loss and refundable tax credit for resources Impair- ment Net book value as at November 30, 2020 $ $ $ $ $ $ $ $ $ $ $ 14,887 337,957 115,019 685,963 380 11,990 150,300 1,316,496 - - 5,783,830 - 4,320 - - - - - 4,320 - - 206,394 6,737 10,714 18,636 774,673 - - - 810,760 - - 2,016,617 - 18 - - - - - 18 - - 48,521 1,149 22,200 - - - - - 23,349 - - 99,927 - 525 - - - - - 525 - - 1,626,152 - - - - - - - - - - 69,489 - - - - - - - - - - 6,547 - 21 - - - - - 21 - - 304,150 - 415 - - - - - 415 - - 31,221 - 56 - - - - - 56 - - 72,370 - - - - - - - - - - 92,162 - - - - - 11,027 - 11,027 - - 55,961 - 4,940 - - - - - 4,940 - - 26,670 - 2,800 - - - - - 2,800 - - 74,502 - - - - - - - - - - 16,225 22,773 383,966 133,655 1,460,636 380 23,017 150,300 2,174,727 - - 10,530,738 - 350 616 - - - - 966 - - 966 - 350 616 - - - - 966 - - 966 - 2,800 - - - - - 2,800 - - 62,192 - 2,160 - - - - - 2,160 - - 36,613 - 1,280 - - - - - 61,012 - - 61,012 - - - - - - - - - - 4,446 - 6,240 - - - - - 65,972 - - 164,263 22,773 390,556 134,271 1,460,636 380 23,017 150,300 2,241,665 - - 10,695,967 - - - - - - - - - - 1,124,470 - - - - - - - - - - 16,057 - - - - - - 19 19 - - 552,496 - - - - - - - - - - 196,162 - - - - - - - - - - - - - - - - - 19 19 - - 1,889,185 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 19 - - 1,889,185 22,773 390,556 134,271 1,460,636 380 23,017 150,319 2,241,684 - - 12,585,152
		Claims & permits $ - - - - - - - - - - - - - - - -
	8,356,011	-
	-	-
	-	-
	59,392 34,453 - 4,446	- - 59,732 -
	98,291	59,732
	8,454,302	59,732
	1,124,470 16,057 552,477 196,162 -	- - - - -
	1,889,166	-
	-	-
	-	-
	1,889,166	-
	10,343,468	59,732

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JAMES BAY REGION

The Eeyou Istchee James Bay territory (the “James Bay region”) has been one of the most active gold exploration areas in Canada since early 2000. It has major infrastructure, including paved access roads, a hydroelectric power grid, airports, and several operating mines or mine development projects. Azimut performed its initial mineral potential modelling of the entire region in 2003, and it continues to be a strategic priority for the Company. Azimut’s current James Bay portfolio ( Figure 2 ) comprises twelve (12) wholly-owned properties and ten (10) JV projects, in addition to the wholly-owned JBN nickel project comprising 57 blocks of claims across the region. The list below breaks down the portfolio by location, commodity of interest and ownership.

Elmer Discovery Sector

Elmer (gold-polymetallic) 100% Azimut Elmer South (gold) 100% Azimut Munischiwan (gold-polymetallic) 50% Azimut; JV with SOQUEM Pilipas (gold) 100% Azimut Wapatik (gold) 100% Azimut; under option to Mont Royal

Trans-Taiga Road Sector

Corvet (gold-copper) 100% Azimut Dalmas (gold) 50% Azimut; JV with SOQUEM Kaanaayaa (copper-gold) 100% Azimut Kukamas (copper-gold) 100% Azimut Pikwa (gold-polymetallic) 50% Azimut; JV with SOQUEM Pontois (gold) 50% Azimut; JV with SOQUEM Eleonore South (gold) 23.77% Azimut; JV with Fury Gold Mines Ltd (“Fury Gold”) and Les Mines Opinaca Ltée, a wholly-owned subsidiary of Newmont Corporation (“Newmont) Opinaca A (gold) 50% Azimut; JV with Everton Resources Inc. (“Everton”) Opinaca B (gold) 25% Azimut; JV with Everton and Hecla Québec Inc. (“Hecla”) Opinaca D (gold) 100% Azimut

Eleonore Gold Camp

Eastmain Reservoir Sector

Chromaska (Cr-PGE-Ni) 100% Azimut Wabamisk (gold) 49% Azimut; JV with Newmont

Route 167 Sector

Galinée (gold) 50% Azimut; JV with SOQUEM Corne (copper-gold) 100% Azimut Desceliers (gold-copper) 50% Azimut; JV with SOQUEM Mercator (copper-polymetallic) 100% Azimut Valore (gold) 100% Azimut

Route 389 Sector

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Figure 2: The Company’s project portfolio in the James Bay region showing key results.

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AZIMUT-SOQUEM JAMES BAY ALLIANCE

On September 26, 2016, Azimut announced a four-year strategic alliance with SOQUEM covering 176,300-km[2] in the James Bay region (the “James Bay Alliance”). The objective was to identify gold targets and explore the most prospective targets after converting them into properties. Under the terms of the agreement, SOQUEM could select targets among those identified in a target report provided by Azimut to convert into properties at SOQUEM’s cost, with initial 50/50 ownership. SOQUEM could then acquire Azimut’s interest in each of these properties by fulfilling certain terms and conditions over a four-year period. Azimut would have the right to explore any targets not retained by SOQUEM alone or with third parties.

SOQUEM selected four (4) targets identified in the report to convert into properties at SOQUEM’s cost for an initial 50% ownership (Munischiwan, Pikwa, Pontois and Desceliers; collectively the “SOQUEM” entry in Table 1 and Table 2 ). After SOQUEM had acquired Azimut’s interest in these properties by investing a total of $3 million in exploration work over four (4) years, including diamond drilling, the parties amended the agreement on May 15, 2019, to include a 50% back-in option for Azimut to regain a 50% interest in the properties by conducting $3.3 million in exploration work over three (3) years. On May 31, 2021, Azimut regained its 50% in Munischiwan, Pikwa, Pontois and Desceliers properties by cumulatively investing $3.3 million in work expenditures. Consequently, these properties became 50/50 JV projects with SOQUEM.

In 2018, Azimut and SOQUEM agreed to add the Dalmas and Galinée targets as JV projects under the James Bay Alliance, with Azimut as the operator (PR of October 3, 2018). Furthermore, the amended agreement of 2019 also stipulates that SOQUEM had relinquished its exclusive rights to acquire an interest in four other targets that had become wholly-owned Azimut properties, of which the Company still holds three (Corvet, Duxbury and Kukamas).

ELMER DISCOVERY SECTOR

Azimut’s portfolio includes several properties in the Elmer Discovery sector. This area became a strategic priority for the Company after it announced a significant drilling discovery on the Elmer Property (PR of January 14, 2020). The infrastructure in the area includes permanent roads, power grids and airport facilities. The Billy-Diamond Highway (formerly the James Bay Road), which passes through or near the Company’s projects in this area, is a paved 620-kilometre all-season highway running between the mining town of Matagami in the south and Radisson in the north. Azimut holds four wholly-owned projects in the Elmer Discovery sector (Elmer, Elmer South, Pilipas and Wapatik), one JV property (Munischiwan), and one of the claim blocks of the wholly-owned JBN Project.

Elmer Property

The wholly-owned Elmer Property (515 claims, 271.3 km[2] ) ( Figure 3 ) is a gold-polymetallic (Au-Ag-Cu-Zn) project located 5 kilometres west of the Billy-Diamond Highway. The property is 60 kilometres from the Cree community of Eastmain on the east coast of James Bay. It provides a controlling position over a 35-kilometre-long gold corridor known as the Elmer Trend in the underexplored Lower Eastmain greenstone belt of the La Grande Subprovince, roughly 10 kilometres north of the boundary with the Opinaca Subprovince. Through its exploration programs on the Elmer and Wapatik properties, Azimut is covering 60 kilometres of favourable geological strike in the Lower Eastmain greenstone belt (PR of June 28, 2021). The belt is considered highly prospective for shear-zone hosted and intrusion-related gold deposits.

On January 14, 2020, Azimut announced the substantial drilling discovery of the Patwon Zone ( Figure 4 ) during the Company’s maiden 2019 diamond drilling program on the property (996 m in 7 holes), with a highlight of 102.5 metres grading 3.15 g/t Au, including 10.1 g/t Au over 20.5 metres. Subsequent drilling programs have since expanded the zone and confirmed its robustness as well as the potential for other significant mineralization on the property. Management considers Patwon to be one of the largest gold discoveries in the James Bay region since the discovery of the Éléonore deposit in 2004.

On January 27, 2022, the Company announced it had retained InnovExplo to prepare the maiden mineral resource estimate for the zone and a supporting NI 43-101 compliant report. The results from the current drilling program will be included in the resource estimate. Azimut also retained the services of Lise Chénard, P.Eng. as the Company’s senior advisor in mining geology to support the progress of the Elmer Project.

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Figure 3: Magnetic map of the Elmer Property showing the location of the Patwon Zone in the priority exploration corridor, along with salient historical and recent exploration results as at November 11, 2021.

Key features of the Patwon Zone (PRs of November 22, November 4, October 18, July 20, June 22, June 2 and May 19, 2021)

Patwon is a consistent, steeply dipping gold-bearing zone that has been traced over a strike length of 520 metres ( Figure 4 ) and to a minimum depth of 450 metres where the system remains open.
It appears geometrically simple, with no internal complexity due to folding and no crosscutting barren dykes potentially creating internal dilution. It is spatially correlated with a vertically dipping felsic intrusion, indicating an excellent possibility for a kilometre-scale vertical extent.
The central core appears to widen to the west with increasing depth. Based on the results disclosed to date and using true estimated widths, the core zone is defined thus far by 25 drill hole intercepts with grade x thickness (“GT”) factors[2] ranging from 50 GT to 412 GT ( Figure 5 ), including 11 intercepts above 100 GT. These 25 drill hole intercepts display an average true width of 45 metres, with an average grade of 2.86 g/t Au.
The mineralization is mainly related to three quartz-vein networks and their wall rock alteration haloes, with pyrite as the dominant sulphide, occurring as fine to coarse disseminations, cross-cutting stringers and semi-massive to massive lenses. Visible gold is frequent. Traces of galena, chalcopyrite and molybdenite are also present. Alteration comprises pervasive silica along with sericite, carbonate, chlorite, feldspar and tourmaline, accompanied by occasional fluorite.
The intensity of quartz veining may be partly controlled by rheologic contrasts between host lithologies (felsic intrusives, felsic volcanics and mafic rocks) within an extensive shear zone.
Preliminary metallurgical tests indicate non-refractory free-milling gold mineralization with potentially excellent gold recoveries up to 94% through a gravity circuit and cyanide leaching. Patwon is a gold-only system with no deleterious elements, such as arsenic or bismuth.
The preliminary geometry supports the concept of an initial open pit mining operation. The consistent high-grade component in most holes also suggests the potential for an underground mining component.

2 The grade x thickness factor (example: 5.0 g/t Au x 10 m = 50 GT) is commonly used in the mining industry to rank and compare mineralized intercepts.

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Patwon is an orogenic gold-bearing system in a 3-kilometre-thick sequence of felsic volcanics with porphyritic intrusions, mafic volcanics, polymictic conglomerates and gabbroic sills. This deposit type classically has the potential for kilometre-scale vertical extension. One of the possible geologic analogs is the Goldex mine, owned and operated by Agnico Eagle (see below for details).

Diamond drilling program details

The maiden 2019 drilling program yielded wide gold-bearing intervals with high-grade sections in all seven (7) holes on the Patwon Zone (996 m of oriented core) (PR of January 14, 2020). The highlight was an interval of 102.5 metres grading 3.15 g/t Au, including 10.1 g/t Au over 20.5 m (hole ELM19-002). The results from subsequent drilling campaigns in 2020 supported the initial discovery and were reported in the PRs of July 27, September 15 and November 30, 2020, and significant assays are included in Table 3 .

The January-June 2021 drilling program (62 holes for 15,157 m) concentrated on a 3-kilometre by 8-kilometre priority exploration corridor (PR of January 27, 2021) to expand the Patwon Zone and test nearby targets. The targets had been defined by combining IP data (105 line-km; PR of March 18, 2021), high-resolution heliborne magnetics, detailed prospecting and till results (PR of January 19, 2021), and property-scale structural interpretations. Delineation drilling on the Patwon Zone was done on systematic 50-metre centres to expand the zone. Drilling results were reported in the PRs of May 19, June 2, June 22 and July 20, 2021 and significant assays are included in Table 3 .

On October 18, 2021, Azimut announced the commencement of the current 20,000-metre drilling phase, which aims to expand the size of the mineralized body in the Patwon Zone, prepare for a maiden resource estimate, and drill-test other promising exploration targets on strike from Patwon and in subparallel shear zones. The delineation drilling on the Patwon Zone involves a minimum of 14,000 metres of diamond drilling from surface down to 800 metres (50-m centres from surface to 500 m, and a grid of 50 m along strike by 100 m vertically from 500 m to 800 m). The remaining minimum of 6,000 metres will follow up on several exploration targets elsewhere on the property that were previously drill-tested in 2021. In addition, reverse circulation (“RC”) drilling this winter will test the bedrock surface in non-outcropping sectors along favourable interpreted shear zones. Assay results for the diamond drilling program, received as at the date of this report, are included in Table 3 .

Significant drilling results (PRs of November 11, November 4, October 18, July 20, June 22, June 2, and May 19, 2021)

Patwon Zone:

The figures below show the traces of all holes drilled to date along the priority corridor ( Figure 4 ), a longitudinal section through the mineralized zone showing gold grade-thickness ( Figure 5 ), two sample cross-sections ( Figure 6 and Figure 7 ), and photographs of drill core ( Figure 8 ). Table 3 presents significant intervals from the Company’s diamond drilling programs to date, with estimated true widths. Grades are not capped and intervals are presented as core lengths.

Exploration Targets:

Drilling in a 2-kilometre-long target zone, 200 metres south of Patwon and subparallel to it, yielded a high-grade gold-silvertellurium drill intercept of 122 g/t Au, 160 g/t Ag and 307 g/t Te over 0.5m (hole ELM21-088). Tellurium is considered by the Quebec and Canadian governments as a critical commodity, essential to the country’s economic security and required for the transition to a low-carbon economy. The mineralized intercept is from sheared gabbro containing centimetric quartz veinlets with visible gold, pyrite and tourmaline. At a distance of 1.2 kilometres to the west along the same shear corridor as this highgrade intercept, the Gabbro Prospect (up to 77.8 g/t Au, 167 g/t Ag and 124 g/t Te in grab samples[3] ) underscores the potential for strike continuity in this target zone. Assay results are still pending for three other holes near ELM21-088.

3 Note that grab samples are selective by nature and unlikely to represent average grades.

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Figure 4: Close-up of the priority corridor on the Elmer Property showing drill hole traces, significant exploration results, the surface projection of the Patwon Zone, and the locations of the longitudinal section and cross-sections in the following figures.

Metallurgical test results

A test program carried out by SGS Canada Inc. (“SGS”) included chemical and metallurgical characterization, comminution, and metallurgical testing on two representative samples from the Patwon Zone (PR of November 27, 2021). This work followed the initial metallurgical tests performed by AGAT Laboratories (“AGAT”) on coarse rejects from diamond drill holes (PR of May 4, 2021). The objective was to obtain baseline grindability and recovery data for a gravity separation and gravity tailings cyanidation flowsheet. The positive findings from SGS are coherent with those of AGAT and support the positive indications that Patwon’s mineralized material is amenable to cost-efficient gold extraction. More testwork will be undertaken to improve the 24- to 48-hour gold recoveries and optimize the leach residence time. Cyanide and lime consumptions are reasonable but could likely be reduced with further optimization.

The highlights from the SGS report are summarized below:

The preliminary metallurgical tests for the Patwon gold zone indicate non-refractory free-milling gold mineralization that is potentially easily recoverable by a combination of gravity circuit and conventional cyanide leaching.
Combined gold recoveries for gravity and cyanidation reached 94% and 93% for two samples grading 3.92 g/t Au and 2.95 g/t Au, respectively.
Gravity tests resulted in a gold recovery of 27% and 37%. These excellent recoveries indicate the potential to include a gravity circuit in a process flowsheet.
Whole-gold extractions from cyanide leaching range from 88% to 93% and from 91% to 95%.
Very low graphitic carbon values (below the assay detection limit of 0.05%) suggest that a carbon-in-pulp process might be preferable to carbon-in-leach for downstream gold recovery.
Comminution tests (ball mill grindability) returned average Bond Work Index (BWI) values that categorize MET-1 as medium and MET-2 as moderately soft.

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==> picture [530 x 406] intentionally omitted <==

Figure 5 : Longitudinal section of the Patwon Zone showing gold grade-thickness contours in the mineralized envelope.

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Figure 6 : Cross section L250E through the Patwon Zone (looking NE).

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Figure 7 : Cross section L315E through the Patwon Zone (looking NE).

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Figure 8 : Photograph of drill core from hole ELM21-086: interval grading 38.7 g/t Au over 9.0 m (from 256 m to 265 m) within an interval of 24.04 g/t Au over 18.0 m (from 254 m to 272 m) (PR of June 22, 2021).

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Table 3 : Significant gold assays from Azimut’s diamond drilling programs on the Elmer Property (compilation tables in PRs of October 18 and July 20, 2021).

Drill hole		Grade	Intersection(m)	Intersection(m)	Intersection(m)	True thickness(3)	Grade thickness (g/t x m)
		Au(g/t) (1)	Length(2)	From	To
ELM19-001		6.39	1.20	13.50	14.70	0.70	4.47
		0.78	32.00	27.40	59.40	19.16	14.94
	incl.	1.68	2.90	27.40	30.30	1.74	2.92
		1.00	4.00	39.50	43.50	2.39	2.39
		2.28	4.20	51.30	55.40	2.45	5.59
		2.45	8.00	85.00	93.00	4.64	11.37
	incl.	18.40	0.80	86.80	87.60	0.46	8.54
		1.99	1.50	105.50	107.00	0.89	1.77
		1.70	2.80	112.00	114.80	1.66	2.82
	incl.	3.60	0.80	112.00	112.80	0.47	1.70
ELM19-002		5.15	9.00	33.50	42.50	5.36	27.61
	incl.	6.71	4.00	34.00	38.00	2.38	15.99
		19.15	0.50	39.60	40.10	0.30	5.70
		9.57	0.50	41.00	41.50	0.30	2.85
		1.10	28.50	58.70	87.20	16.82	18.50
	incl.	3.54	1.00	62.00	63.00	0.60	2.11
		2.00	2.00	72.50	74.50	1.18	2.36
		2.01	8.70	77.50	86.20	5.31	10.68
		10.10	20.50	96.50	117.00	12.44	125.63
	incl.	12.43	6.00	99.50	105.50	3.51	43.59
		12.82	10.00	107.00	117.00	6.07	77.79
		107.00	1.00	116.00	117.00	0.60	63.67
		3.22	11.00	125.00	136.00	6.66	21.45
	incl.	7.95	4.20	125.80	130.00	2.54	20.22
ELM19-003		27.36	4.70	34.30	39.00	2.81	76.90
	incl.	254.00	0.50	34.30	34.80	0.30	75.95
		4.65	29.00	65.50	94.50	17.00	79.06
	incl.	11.90	1.00	68.00	69.00	0.60	7.12
		16.00	6.50	78.00	84.50	3.81	60.97
		2.20	7.60	109.30	116.90	4.37	9.62
	incl.	4.07	3.40	113.50	116.90	1.97	8.01
		1.66	6.00	121.00	127.00	3.47	5.76
	incl.	5.23	1.50	124.00	125.50	0.87	4.54
		1.08	11.00	131.50	142.50	6.41	6.93
	incl.	2.78	2.70	139.90	142.50	1.57	4.38
ELM19-004		4.16	15.50	5.00	20.50	9.37	38.99
	incl.	11.61	2.60	6.50	9.10	1.57	18.25
		8.99	3.20	15.80	19.00	1.93	17.39
		7.85	5.50	25.50	31.00	3.33	26.11
	incl.	80.00	0.50	25.50	26.00	0.30	24.19
		0.86	2.50	36.50	39.00	1.51	1.30
		3.78	11.00	44.50	55.50	6.56	24.79
	incl.	5.48	7.20	44.50	51.70	4.29	23.52
		59.50	0.50	51.20	51.70	0.30	17.74
		1.03	1.50	81.00	82.50	0.89	0.92
		1.94	1.50	100.50	102.00	0.88	1.70
ELM19005		29.80	0.50	28.40	28.90	0.31	9.13
		1.33	51.00	31.50	82.50	31.33	41.66
		2.53	13.50	50.00	63.50	8.29	20.98
-		10.30	1.50	53.00	54.50	0.94	9.66

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Drill hole		Grade	Intersection(m)	Intersection(m)	Intersection(m)	True thickness(3)	Grade thickness (g/t x m)
		Au(g/t) (1)	Length(2)	From	To
	incl.	2.68	1.00	68.30	69.30	0.61	1.63
		3.91	5.60	74.80	80.40	3.39	13.27
		37.00	0.50	79.90	80.40	0.30	11.21
ELM19-006		1.35	1.50	5.00	6.50	0.88	1.19
		1.07	5.50	31.50	37.00	3.26	3.49
		0.54	3.50	54.00	57.50	2.00	1.08
		3.38	25.30	69.20	94.50	14.46	48.86
	incl.	11.92	5.80	70.20	76.00	3.30	39.31
		121.00	0.50	70.20	70.70	0.28	34.40
		1.49	33.50	100.50	134.00	19.14	28.52
	incl.	7.56	5.00	102.00	107.00	2.82	21.29
		64.90	0.50	104.60	105.10	0.28	18.28
		3.88	0.50	131.20	131.70	0.27	1.06
ELM19-007		3.46	44.10	30.00	74.10	34.07	117.90
	incl.	13.09	6.60	34.40	41.00	4.91	64.30
		93.60	0.50	37.50	38.00	0.37	34.83
		25.35	1.90	45.40	47.30	1.47	37.22
		2.33	1.50	57.50	59.00	1.15	2.67
		1.68	1.50	101.50	103.00	1.18	1.97
ELM20‐008		1.40	14.50	77.20	91.70	11.47	16.06
	incl.	2.43	1.50	77.20	78.70	0.94	2.29
		2.84	4.00	86.90	90.90	2.34	6.64
		1.04	25.00	111.00	136.00	19.51	20.29
	incl.	9.91	1.10	113.20	114.30	0.89	8.78
ELM20‐009		1.14	103.10	121.15	224.30	60.20	68.63
	incl.	2.05	45.90	121.15	167.05	26.34	54.00
		4.15	12.00	136.50	148.50	9.38	38.92
		8.36	1.50	159.40	160.90	1.17	9.79
		16.30	0.70	194.30	195.00	0.53	8.70
ELM20‐010		1.14	1.20	56.80	58.00	0.71	0.81
		0.71	78.00	78.00	156.00	45.60	32.38
	incl.	4.12	0.50	79.05	79.55	0.29	1.21
		1.72	1.20	88.70	89.90	0.70	1.21
		0.89	58.00	112.10	170.10	33.28	29.62
	incl.	6.12	1.30	115.70	117.00	0.76	4.65
		2.55	7.50	125.80	133.30	4.34	11.08
		8.23	1.10	129.20	130.30	0.64	5.24
		8.68	1.50	140.80	142.30	0.86	7.47
ELM20‐011		3.66	22.75	45.75	68.50	18.26	66.84
	incl.	7.21	10.65	50.35	61.00	8.55	61.64
		40.90	0.55	52.85	53.40	0.44	18.05
ELM20-012		1.23	15.40	77.40	92.80	12.49	15.37
	incl.	5.82	1.45	91.35	92.80	1.18	6.85
		0.90	3.00	130.50	133.50	2.39	2.15
ELM20‐013		1.65	18.55	56.45	75.00	15.55	25.66
	incl.	7.60	1.40	67.10	68.50	1.17	8.92
		4.62	1.25	70.55	71.80	1.05	4.84
ELM20-014		1.02	1.50	9.00	10.50	NA	NA
ELM20-018		0.96	1.50	112.50	114.00	NA	NA
ELM20-019		1.10	1.50	28.50	30.00	NA	NA
ELM20-020		1.89	1.60	67.00	68.60	1.35	2.56
		3.72	8.70	154.80	163.50	7.11	26.43
	incl.	16.80	1.70	154.80	156.50	1.39	23.33

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Drill hole		Grade	Intersection(m)	Intersection(m)	Intersection(m)	True thickness(3)	Grade thickness (g/t x m)
		Au(g/t) (1)	Length(2)	From	To
ELM20-021		2.80	0.60	28.00	28.60	NA	NA
		0.96	0.80	46.20	47.00	NA	NA
ELM20-022		3.38	2.40	50.65	53.05	NA	NA
ELM20-023		1.43	1.00	82.00	83.00	0.94	1.34
		0.58	13.00	97.00	110.00	12.15	7.05
	incl.	3.16	1.00	109.00	110.00	0.93	2.95
		0.52	32.45	158.00	189.45	29.94	15.57
	incl.	3.73	2.80	158.00	160.80	2.58	9.63
		1.10	1.45	188.00	189.45	1.32	1.46
ELM20-025		0.53	6.00	11.00	17.00	NA	NA
	incl.	1.05	1.50	11.00	12.50	NA	NA
		1.21	1.00	16.00	17.00	NA	NA
ELM20‐026		2.61	72.15	122.20	194.35	58.61	152.98
	incl.	3.59	51.85	142.50	194.35	42.14	151.27
		12.45	0.70	144.55	145.25	0.57	7.09
		41.62	3.40	154.75	158.15	2.76	114.96
		29.24	4.95	154.75	159.70	4.02	117.58
		9.56	0.50	184.00	184.50	0.40	3.85
ELM20‐028		1.44	58.20	156.30	214.50	54.11	77.92
	incl.	3.60	13.45	156.30	169.75	12.48	44.94
		6.00	7.15	156.30	163.45	6.64	39.81
		17.82	2.00	158.80	160.80	1.86	33.08
		3.07	1.50	181.50	183.00	1.40	4.29
		2.83	1.50	190.50	192.00	1.39	3.95
		1.46	15.50	199.00	214.50	14.43	21.06
		6.93	0.50	200.00	200.50	0.46	3.22
		8.37	1.50	213.00	214.50	1.40	11.69
ELM20-029		1.50	30.50	96.00	126.50	25.18	37.77
	incl.	4.15	1.50	96.00	97.50	1.24	5.13
		8.59	2.10	103.90	106.00	1.73	14.87
		7.20	1.00	113.50	114.50	0.83	5.94
ELM20-030		0.61	46.20	150.00	196.20	43.46	26.51
	incl.	1.03	19.55	150.00	169.55	18.55	19.11
		10.65	0.50	195.70	196.20	0.47	5.05
ELM20-031		2.47	36.10	175.00	208.60	29.22	72.18
	incl.	9.63	6.60	176.00	182.60	5.36	51.65
		56.10	0.60	180.00	180.60	0.49	27.35
ELM20-032		0.94	30.35	191.65	222.00	27.12	25.50
	incl.	1.89	13.50	208.50	222.00	12.03	22.74
		2.83	6.35	213.00	219.35	5.66	16.01
ELM20-033		1.01	1.50	113.40	114.90	1.25	1.26
		6.17	1.30	126.00	127.30	1.06	6.57
		0.75	42.45	175.35	217.80	34.29	25.72
	incl.	1.30	15.70	202.10	217.80	12.64	16.44
		12.55	0.95	216.85	217.80	0.76	9.59
ELM20‐034		3.01	90.20	151.30	241.50	82.71	248.97
	incl.	12.28	14.20	151.30	165.50	13.11	161.04
		23.26	5.85	151.30	157.15	5.43	126.35
		10.95	3.35	162.15	165.50	3.09	33.88
		5.35	2.90	202.60	205.50	2.66	14.23
		25.20	0.50	202.60	203.10	0.46	11.55
		3.95	9.95	221.55	231.50	9.09	35.92
ELM20‐035		1.24	34.75	127.25	162.00	28.83	35.75

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Drill hole		Grade	Intersection(m)	Intersection(m)	Intersection(m)	True thickness(3)	Grade thickness (g/t x m)
		Au(g/t) (1)	Length(2)	From	To
	incl.	6.39	4.00	152.00	156.00	3.31	21.16
		1.16	1.00	191.50	192.50	0.82	0.95
ELM20‐036		2.46	5.10	206.90	212.00	4.09	10.07
	incl.	7.30	0.60	209.60	210.20	0.48	3.52
ELM20-038		4.55	8.00	186.00	194.00	6.37	28.98
	incl.	10.12	2.95	189.55	192.50	2.35	23.77
ELM20-039		6.87	0.50	155.65	156.15	0.46	3.17
		1.29	1.60	181.80	183.40	1.48	1.90
		0.49	31.50	219.50	251.00	28.52	13.97
	incl.	1.20	8.50	242.50	251.00	7.68	9.22
ELM20-040		3.93	4.55	239.00	243.55	3.60	14.14
	incl.	8.04	2.05	241.50	243.55	1.62	13.03
ELM20-041		1.04	1.35	169.30	170.65	1.23	1.28
		0.77	2.00	281.50	283.50	1.72	1.33
ELM20-042		0.82	1.10	7.10	8.20	NA	NA
ELM20-043		1.90	1.70	80.30	82.00	NA	NA
ELM20-045		0.52	1.50	94.50	96.00	NA	NA
ELM20-048		1.20	11.00	48.00	59.00	9.17	11.00
	incl.	3.61	2.00	57.00	59.00	1.66	5.99
ELM20-049		0.75	4.15	51.00	55.15	3.72	2.79
		0.47	6.30	74.50	80.80	5.58	2.62
		1.05	10.90	103.10	114.00	9.62	10.10
	incl.	4.94	0.90	103.10	104.00	0.79	3.93
ELM20-050		5.86	9.75	95.25	105.00	8.51	49.89
	incl.	59.00	0.80	104.20	105.00	0.70	41.21
		4.44	3.15	158.95	162.10	2.73	12.14
ELM20-051A		3.85	22.35	198.15	220.50	20.26	77.98
	incl.	19.34	3.05	199.15	202.20	2.76	53.29
		3.72	1.20	213.60	214.80	1.09	4.05
		10.30	1.00	219.50	220.50	0.90	9.23
ELM20-052		1.38	48.05	230.80	278.85	45.89	63.33
	incl.	6.18	3.00	233.00	236.00	2.87	17.71
ELM20-053		1.41	0.50	65.75	66.25	0.42	0.60
		3.36	6.75	129.00	135.75	5.60	18.81
ELM20-054		1.39	1.00	81.80	82.80	0.83	1.16
ELM20‐055		5.50	3.55	11.80	15.35	3.00	16.53
		1.21	1.50	28.50	30.00	1.27	1.54
ELM20‐056		1.31	39.65	247.55	287.20	35.45	46.44
	incl.	6.50	4.75	282.45	287.20	4.24	27.57
ELM20‐057		2.41	7.00	92.00	99.00	5.82	14.03
ELM20‐058		5.70	8.30	68.20	76.50	6.92	39.43
	incl.	18.60	2.25	68.20	70.45	1.88	34.88
ELM21-063		0.44	2.75	79.85	82.60	2.29	1.01
ELM21-064		0.66	1.10	27.30	28.40	0.93	0.61
ELM21-065		0.24	1.35	32.95	34.30	1.24	0.30
ELM21-066		7.84	9.80	142.80	152.60	8.06	63.19
	incl.	39.81	1.80	149.90	151.70	1.48	58.93
ELM21-067		0.20	3.50	160.00	163.50	3.23	0.65
ELM21-068		NSR	NSR	NSR	NSR	NSR	NSR
ELM21-069		NSR	NSR	NSR	NSR	NSR	NSR
ELM21-070		4.43	46.05	265.25	310.50	42.62	188.81
	incl.	21.60	6.00	266.30	272.30	5.56	120.05
	incl.	55.10	1.20	267.40	268.60	1.11	61.25

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Drill hole		Grade	Intersection(m)	Intersection(m)	Intersection(m)	True thickness(3)	Grade thickness (g/t x m)
		Au(g/t) (1)	Length(2)	From	To
ELM21-071A		5.47	33.60	329.40	363.00	32.05	175.30
	incl.	25.91	5.35	352.50	357.85	5.11	132.33
	incl.	46.60	0.90	352.50	353.40	0.86	40.00
		1.33	3.00	378.00	381.00	2.86	3.80
		4.08	18.60	410.50	429.10	17.82	72.71
	incl.	12.70	0.65	410.50	411.15	0.62	7.89
	incl.	14.20	1.05	416.70	417.75	1.01	14.28
	incl.	13.22	2.15	426.95	429.10	2.03	26.84
		1.01	6.05	441.20	447.25	5.83	5.89
ELM21-072		6.43	40.60	287.90	328.50	38.24	245.91
		12.98	15.20	287.90	303.10	14.32	185.85
		37.50	0.90	291.00	291.90	0.85	31.79
ELM21-073		4.50	1.00	236.00	237.00	1.00	4.48
		1.44	66.00	407.30	473.30	65.61	94.48
	incl.	3.09	10.50	431.40	441.90	10.44	32.26
		1.25	6.40	488.00	494.40	6.36	7.94
		5.00	1.10	522.90	524.00	1.09	5.46
ELM21-074		0.54	19.20	312.50	331.70	18.07	9.76
		3.61	5.00	389.50	394.50	4.68	16.90
ELM21-075		0.76	7.50	27.00	34.50	6.81	5.18
	incl.	3.30	1.20	29.50	30.70	1.09	3.60
		1.49	2.40	280.50	282.90	2.13	3.17
		1.96	1.50	337.50	339.00	1.33	2.61
ELM21-076		1.43	1.90	285.50	287.40	1.77	2.53
		2.80	4.00	368.00	372.00	3.72	10.42
	incl.	4.45	2.00	369.00	371.00	1.86	8.28
ELM21-077		0.98	0.60	259.20	259.80	0.54	0.53
		2.74	5.00	322.50	327.50	4.45	12.19
	incl.	6.80	1.10	323.50	324.60	0.98	6.67
		1.25	6.40	488.00	494.40	5.71	7.14
ELM21‐079		0.81	0.50	326.20	326.70	0.46	0.38
		2.75	0.80	416.20	417.00	0.74	2.03
ELM21-084A		0.46	1.50	111.00	112.50	1.39	0.64
		0.62	1.20	162.60	163.80	1.11	0.69
		0.47	2.05	259.70	260.85	1.89	0.89
		0.88	1.50	322.50	324.00	1.34	1.18
ELM21-090		0.81	7.00	179.00	186.00	6.51	5.27
	incl.	2.23	1.00	185.00	186.00	0.93	2.08
		0.54	19.50	205.50	225.00	18.16	9.81
	incl.	2.05	1.50	205.50	207.00	1.40	2.88
	incl.	1.82	2.00	221.00	223.00	1.86	3.39
		0.65	8.00	243.00	251.00	7.43	4.83
ELM21-093		8.19	2.40	150.40	152.80	2.18	17.82
		11.58	2.45	162.35	164.80	2.22	25.71
		0.47	9.40	211.80	221.20	8.44	3.97
	incl.	2.25	1.10	217.70	218.80	0.98	2.21
ELM21-094		9.92	2.30	229.70	232.00	2.17	21.48
	incl.	22.40	0.90	230.40	231.30	0.85	18.98
		0.57	2.00	258.80	260.80	1.89	1.07
		0.71	3.00	279.50	282.50	2.84	2.02
		2.17	19.00	324.50	343.50	17.97	38.99
	incl.	6.07	2.10	324.50	326.60	1.99	12.06
	incl.	12.00	1.50	342.00	343.50	1.42	17.02

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Drill hole		Grade	Intersection(m)	Intersection(m)	Intersection(m)	True thickness(3)	Grade thickness (g/t x m)
		Au(g/t) (1)	Length(2)	From	To
		12.20	1.25	358.35	359.60	1.18	14.42
		3.43	1.20	387.30	388.50	1.13	3.87
ELM21-095C		1.22	4.9	190.2	195.1	4.71	5.75
	incl.	2.88	1.50	190.20	191.70	1.44	4.15
		1.39	27	225.6	252.6	25.01	34.77
	incl.	4.56	4.25	239.65	243.90	3.94	17.95
ELM21-096		0.89	1.10	39.90	41.00	0.98	0.87
		1.55	1.50	204.70	206.20	1.28	1.99
		1.08	28.50	255.00	283.50	24.77	26.76
	incl.	2.28	5.40	265.00	270.40	4.69	10.70
	incl.	1.69	4.90	278.60	283.50	4.24	7.17
		0.66	4.35	310.90	315.25	3.75	2.47
ELM21-097		1.1	57.9	295.6	353.5	54.66	60.12
	incl.	2.52	8.00	295.00	303.00	7.55	19.03
	incl.	4.14	3.75	347.45	351.2	3.55	14.68
		0.99	0.7	368.3	369	0.66	0.66
		3.08	1.45	381.30	382.75	1.37	4.22
ELM21-102		1.80	1.94	219.90	221.70	1.86	3.34
		1.44	60.80	228.50	289.30	58.06	83.61
	incl.	18.10	2.75	231.85	234.60	2.62	47.45
	incl.	2.55	6.90	272.65	279.55	6.62	16.88
	incl.	4.80	0.75	288.55	289.30	0.72	3.45
		1.70	1.50	300.00	301.50	1.44	2.44
ELM21-114		2.58	4.10	111.85	115.10	3.99	10.28
		2.81	3.70	329.30	333.00	3.54	9.94
	incl.	5.31	1.40	329.30	330.70	1.34	7.11
		1.27	6.50	350.50	357.00	6.20	7.87
	incl.	2.15	3.10	350.50	353.60	2.96	6.35
	incl.	1.86	1.10	361.15	362.25	1.05	1.95
		0.58	6.35	373.00	379.35	6.04	3.50

Notes:

(1) Assays are not capped.

(2) Intervals are presented as core lengths.

(3) Grade x thickness is based on true widths. Holes ELM-089 and ELM091: no significant values.

Possible analog and potential of the Elmer Trend

Comparing already known deposits with the features of a new discovery is a key step in supporting the exploration hypothesis and envisioning the upside potential of the discovery, even if each deposit is ultimately different. Key features of the Goldex deposit (Agnico Eagle Ltd) are presented for comparison with Patwon. Goldex is a multi-million-ounce gold mine to the west of Val-d’Or in the Abitibi region of Quebec. As at December 31, 2020, proven and probable reserves were 1.1 Moz (22.1 Mt at 1.57 g/t Au), measured and indicated resources were 1.7 Moz (31.6 Mt at 1.66 g/t Au) and inferred resources stood at 1.2 Moz (24.8 Mt at 1.5 g/t Au)). The steeply dipping mineralized body, hosted by a large tabular felsic intrusion surrounded by volcanic rocks, has a strike length of about 450 metres and is known down to 1.8 kilometres. The orebody is defined by the intensity of stockwork veins and gold grades rather than individual veins. Most of the gold occurs as microscopic particles associated with pyrite, while the rest occurs as coarse native gold grains. Several zones contain gold-bearing quartz-tourmalinepyrite veins and veinlets.

Elmer South Property

The wholly-owned Elmer South Property (39 claims, 20.6 km[2] ) is a gold project located 15 kilometres north of Eastmain Road and 45 kilometres west of the Billy-Diamond Highway. The property represents a small block of claims that was partitioned off from the Elmer Property in July 2021. The property is 35 kilometres from the Cree community of Eastmain on the east

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coast of James Bay. It covers part of the boundary between the La Grande and Opinaca geological subprovinces. The property’s gold potential is related to this major lithostructural transition.

Munischiwan Property

The Munischiwan Property (167 claims, 87.6 km[2] ) is a gold-polymetallic (Au-Ag-Cu) 50/50 JV project with SOQUEM. Munischiwan lies about 85 kilometres from the Cree community of Eastmain on the east coast of James Bay. The BillyDiamond Highway passes through the property. The project partly covers a well-defined As-Ag-Bi-Cu-Sb anomaly in lakebottom sediments (“LBS”) within the Lower Eastmain greenstone belt of the La Grande Subprovince. The LBS anomaly is accompanied by favourable geophysical, geological and structural criteria. Target deposit types are intrusion-related and shear zone-hosted. There were no known showings on Munischiwan before Azimut began exploring the property.

Exploration highlights

The main showing on the Munischiwan Property is the kilometre-scale Insight Prospect , an outcropping Au-Cu-Ag zone roughly 600 metres by 150 metres at surface, with a best grab sample grade of 100.5 g/t Au, 151.0 g/t Ag, 156.0 g/t Te and 0.14% Cu. The zone dips about 30° to the east, is open in all directions, and is coincident with a 300-metre by 1,000-metre IP anomaly striking NNW-SSE. Mineralization consists of disseminated chalcopyrite and quartz veins or veinlets hosted in foliated metasediments affected by strong biotite alteration. An additional gold showing 600 metres to the south (2.42 g/t Au) could be an extension.

Pilipas Property

The wholly-owned Pilipas Property (135 claims, 70.7 km[2] ) is a gold project that covers the immediate potential extension of the kilometre-scale Insight Prospect (Au-Ag-Cu) on the adjacent Munischiwan Property, based on structural and IP data. Like Munischiwan, Pilipas is underlain by volcano-sedimentary rocks of the Lower Eastmain greenstone belt. The main targets are intrusion-related systems, VMS, iron formation-hosted mineralization and gold-bearing shear zones. The property is in structural continuity with the Insight Prospect. The Billy-Diamond Highway passes through the centre of Pilipas.

Wapatik Property

The wholly-owned, 25-kilometre-long Wapatik Property (220 claims, 115.7 km[2] ) is a gold-copper-nickel project under option to Mont Royal (PR of September 22, 2020). The Billy-Diamond Highway crosses the western end of the property and the road to Newmont’s Eleonore mine passes through the eastern limit. Three powerlines also cross the property. Wapatik is located in a largely underexplored part of the same Archean greenstone belt hosting the Elmer gold discovery. Collectively, Azimut’s exploration work on the Wapatik and Elmer properties covers 60 kilometres of favourable geological strike in the belt. The main gold targets are sheared iron formations and volcanics associated with gold-in-till anomalies. The main base metal–PGE target is a previously unrecognized kilometre-scale ultramafic intrusion.

Exploration highlights

The partner-funded $600,000 exploration program of 2020-2021 (PRs of November 18, 2020, October 25, 2021 and December 7, 2021) yielded five highly prospective multi-kilometre-scale target areas that produced encouraging results, notably the discovery of a previously unrecognized ultramafic intrusion (~1,000 metres by 400 metres) containing copper and nickel sulphide mineralization. The most significant grab sample grades are reported in Table 4 . The volcanosedimentary country rocks consist of iron formations and pyrite-rich metasediments and mafic volcanics. This lithological context is considered as highly favourable for massive to semi-massive nickel-copper sulphide mineralization, which is often positioned along the basal contact of an intrusive body. The mineralized facies carry chalcopyrite, pyrrhotite and possibly pentlandite, occurring as veinlets and disseminated or interstitial sulphides within coarse-grained pyroxenite and gabbro. The magnetic anomaly outlined by the heliborne survey appears to be composed of three (3) contiguous magnetic lobes that may correspond to different magmatic pulses. A 3D magnetic inversion of the data suggests a basin-shaped geometry for part of the intrusion, which may constitute a very favourable setting for sulphide accumulation ( Figure 9 ).

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Table 4: Significant grab sample grades from the ultramafic intrusion on the Wapatik Property (PR of December 7, 2021).

Copper(%)	Nickel(%)	Cobalt(ppm)	PGE(Pt+Pd) (ppb)	Silver(g/t)	MgO (%)	Sample #
1.035	0.384	316	28	5.42	15.09	E6320167
0.814	0.267	223	44	1.91	15.38	E6320152
0.731	0.061	112	176	7.09	14.72	E6320221
0.653	0.085	127	153	5.92	15.30	E6320154
0.098	0.129	132	7	0.64	26.61	E6320155
0.072	0.171	161	Not analyzed	0.27	26.42	E6320234

==> picture [549 x 417] intentionally omitted <==

Figure 9: Magnetic map of the Wapatik Property showing structures and the locations of known mineralization.

As at November 30, 2021, the Company cumulatively incurred $400,000 ($Nil – Q1 2021) in exploration expenditures on behalf of Mont Royal, all of which was charged back to Mont Royal in full. Mont Royal is renewing its option on the property for the second year. The Company received $20,000 for payment of option. The next phase of the exploration work is an $800,000 partner-funded program planned for early 2022, which will consist of ground geophysics over the ultramafic intrusion, possibly followed by a maiden core drilling program.

TRANS-TAIGA ROAD SECTOR

Azimut’s portfolio includes a group of properties near the Trans-Taiga Road in the northern part of the James Bay region. The infrastructure in the area includes permanent roads, power grids and airport facilities. The Trans-Taiga Road is a 582-kilometre gravel highway that extends eastward from the Billy-Diamond Highway. It was built as an access to Hydro-Québec’s hydroelectric generating stations along the La Grande and Caniapiscau rivers. Azimut has three wholly-owned properties in

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the sector (Corvet, Kaanaayaa and Kukamas) and three JV projects (Dalmas, Pikwa and Pontois), in addition to several of the claim blocks forming the wholly-owned JBN Project.

Corvet Property

The wholly-owned Corvet Property (340 claims, 174.8 km[2] ) lies south of the Pikwa Property, to the west of Lac de la Corvette. This gold-copper project is located 55 kilometres southwest of the La Grande-4 airstrip next to the Trans-Taiga Road and 225 kilometres east-southeast of Radisson. The property straddles the La Grande–Opinaca boundary and displays a strong multi-element (Ag-As-Bi-Cu-Sb) spatial association in LBS.

Dalmas Property

The Dalmas Property (88 claims, 44.9 km[2] ) is a 50/50 JV gold project with SOQUEM, located 25 kilometres south of the Trans-Taiga Road. The property covers a sheared greenstone belt in the La Grande Subprovince with a strong arsenic-bismuthcopper-antimony footprint in LBS. Azimut has collected more than 250 grab samples and more than 80 till samples to date. The target deposit type is shear zone-hosted gold.

As at November 30, 2021, the JV partners have cumulatively invested $210,000 ($195,000 – November 30, 2020) in work expenditures, of which Azimut’s share is $105,000 ($97,000 – November 30, 2020).

Kaanaayaa Property

The wholly-owned Kaanaayaa Property (390 claims, 200.5 km[2] ) is a copper-gold and copper-nickel project situated 35 kilometres south of Trans-Taiga Road and a Hydro-Québec powerline, and 42 kilometres south of the LG-4 airport. Kaanaayaa is attractive for its strong regional-scale LBS footprint (bismuth, silver, molybdenum, copper and tungsten) and favourable geology marked by metasediments and mafic to intermediate volcanics crosscut by several small but potentially fertile granitic intrusions. The property’s polymetallic footprint is comparable to that of the Copperfield Trend on the Pikwa Property, 15 km to the northwest. Historical exploration on Kaanaayaa is limited, but an adjacent property, jointly held by Osisko Exploration James Bay Inc. (“Osisko Exploration”) and Newmont, hosts several significant gold prospects about 5 kilometres southwest of Kaanaayaa, including the Marco Prospect (1.07 g/t Au over 27.0 m and 10.1 g/t Au over 5.2 m) and the Contact West Zone (11.82 g/t Au over 4.7 m).

Kukamas Property

The wholly-owned Kukamas Property (409 claims in 2 blocks, 207.5 km[2] ) is a copper-gold project located 4 kilometres north of the Trans-Taiga Road and LG-3 airstrip (Km 100), along an access road leading to the LG-3 hydroelectric generating station just north of the property. The nearest town is Radisson, 80 kilometres to the north-northwest. The project includes one of the strongest geochemical footprints for copper-gold systems in the James Bay region, characterized by regional-scale silver, arsenic, copper and antimony LBS signatures. The geology is characterized by sheared metasediments of La Grande Subprovince, including iron formations and metavolcanics surrounding granitic intrusions. Numerous prospects sit on or adjacent to the property. Grab samples collected on the project graded up to 3.46 g/t Au and 20.7 % Cu. Historical work includes 27 drill holes and roughly 360 grab samples. Most of this work took place between 1995 and 2013.

Pikwa Property

The Pikwa Property (509 claims, 260.9 km[2] ) is a gold-polymetallic (Au-Cu-Co-Mo) 50/50 JV project with SOQUEM. Pikwa is located 2 kilometres south of the Trans-Taiga Road, 40 kilometres east of the LG-3 hydroelectric generating station, and roughly 300 kilometres east of the Cree community of Wemindji. Geologically, it is situated in the La Grande Subprovince. The main target of interest is the 20-kilometre-long Copperfield Trend , a copper-gold target characterized by a regional LBS anomaly (arsenic-bismuth-copper) and an extensive magnetic high. Based on publicly available information, a copper-goldmolybdenum-silver mineralized system on the adjacent Mythril Property (Midland Exploration Inc.) appears to be on strike with the Copperfield Trend.

Exploration highlights

The Copperfield Trend is characterized by several spatially correlated features, notably a continuous IP corridor 10 kilometres long by up to 400 metres wide, coincident magnetic highs, EM conductors, a strong polymetallic (copper-gold-silvermolybdenum) soil anomaly, and mineralized outcrops and an extensive mineralized boulder field in the easternmost part where the overburden is the thinnest. The results to date, including a maiden drilling program in 2020 (11 holes for 2,085 m), point to a major copper-gold system centred on the 10-kilometre-long Copperfield East target ( Figure 10 and Figure 11 ) . Collectively, the IP anomalies, copper-in-soil footprint and mineralized boulder field are best explained by a major Cu-AuAg-Mo porphyry system (already partly identified in mineralized outcrops) emplaced along the margins of an intrusion and subsequently sheared during regional-scale tectonic events. The main host rock is biotite-rich gneiss (presumably altered

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metadiorite or granodiorite).The dominant copper mineral is chalcopyrite (disseminations or semi-massive veins and veinlets) accompanied by frequent bornite and chalcocite and lesser amounts of malachite and occasional azurite. Other sulphides include molybdenite and, less frequently, pyrite and pyrrhotite. Alteration in the host rocks is expressed by varying degrees of potassic alteration (biotite and potassium feldspar), sericite, epidote, chlorite and magnetite. Mineralization generally occurs along foliation planes, often associated with quartz veinlets. Foliation strikes ENE-WSW and dips on average 50° to 60° to the south.

Data compilation is currently underway to reassess the property’s potential. Several features of the Copperfield Trend suggest it may represent an Archean analogue to Sweden’s giant Paleoproterozoic Aitik porphyry deposit (Cu-Au-Ag-Mo) (see PR of October 16, 2019, for details). The Aitik mine provides valuable parameters regarding geometry, size and grades that could optimize the exploration strategy at Copperfield.

==> picture [554 x 421] intentionally omitted <==

Figure 10 : Geophysical signature of the Copperfield Trend on the Pikwa Property.

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==> picture [563 x 433] intentionally omitted <==

Figure 11: IP-chargeability footprint of the Copperfield East Target on the Pikwa Property.

Pontois Property

The Pontois Property (226 claims, 115.1 km[2] ) is a gold 50/50 JV project with SOQUEM. The property is situated several kilometres south of the LG-4 hydroelectric generating station and is crossed by the Trans-Taiga Road (Km 316). It covers part of an underexplored sheared greenstone belt and corresponds to a strong As-Sb-W signature in LBS . The volcano-sedimentary rocks and iron formations of the La Grande greenstone belt, the bounding tonalitic intrusions, and the distribution of several regional faults and shear zones collectively provide a favourable geological and structural setting. No historical showings are known on the property but Azimut’s prospecting work from 2017 to 2019 led to the discovery of the Black Hole Prospect (6.02 g/t Au, 2.56 g/t Au and 0.90 g/t Au). Other anomalous metals included silver and tellurium. Gold is hosted in mafic metavolcanics and intrusive dykes carrying quartz veins, near a sheared contact with metasediments. The intrusive facies contains disseminated fine pyrite. The 40- by 20-metre prospect is open along strike in both directions.

ELEONORE GOLD CAMP

Azimut’s portfolio in the Eleonore gold camp includes three JV projects (Eleonore South, Opinaca A and Opinaca B) and one wholly-owned property (Opinaca D). The Company acquired extensive holdings both before and after the Eleonore gold discovery in 2004 based on the targeting results of its regional-scale gold potential modelling. As a result, Azimut gained one of the leading property positions in the area. The Eleonore mine, owned by Newmont, is one of the largest gold mines in Quebec and is considered a world-class state-of-the-art facility. As at December 31, 2020, annual gold production is 270,000 attributable ounces and proven and probable reserves stand at 7.80 Mt at 5.00 g/t Au for 1.26 Moz of gold, measured and

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indicated resources at 3.00 Mt at 4.51 g/t Au for 0.44 Moz of gold and inferred resources at 2.50 Mt at 5.65 g/t Au for 0.46 Moz of gold (NI 43-101 compliant estimate as of December 31, 2020; Newmont PR of February 10, 2021).

Eleonore South Property

The Eleonore South gold property (282 claims in 2 blocks, 147.6 km[2] ) is located in a highly prospective part of the Eleonore gold camp, only 10 kilometres south of Newmont’s Eleonore mine. The project is subject to a three-party agreement between Azimut, Les Mines Opinaca Ltée (a wholly-owned subsidiary of Newmont) and Fury Gold (formerly Eastmain Resources Inc.). An NSR royalty applies to 116 claims (60.3 km[2] ), payable to Newmont, Les Mines Opinaca Ltée and Osisko Exploration. The ownership of the Eleonore South Property is Azimut 23.77%, Newmont 38.11% and Fury Gold 38.12% following Azimut’s decision not to contribute to the 2019 winter program. Fury Gold is the JV manager.

Exploration highlights

The property has been the subject of three major joint exploration programs, including diamond drilling, that focused primarily on a large gold-bearing system in the eastern part of the property. This gold corridor is at least 2 kilometres long by 600 to 700 metres wide in the Cheechoo tonalite intrusion and up to its contact with the metasedimentary country rocks. Highlights include 7.44 g/t Au over 9.7 m (including 63.3 g/t Au over 0.8 m) and 1.02 g/t Au over 92.0 m (including 7.36 g/t Au over 8.2 m). Mineralization remains open to the southwest but extends northeastward towards a discovery by Sirios Resources Ltd (“Sirios”) on the adjacent Cheechoo Property (in-pit inferred resources of 93 Mt at 0.65 g/t Au for 1.96 M oz using a 0.25 g/t Au cut-off; Sirios PR dated November 17, 2020). Some of the holes drilled by Sirios were collared as close as 12 metres from Azimut’s property boundary.

The corridor is characterized by consistent anomalous gold values (>0.5 g/t Au), several networks of quartz veins and veinlets, strong sodic alteration, very low sulphide concentrations (<0.5%) and frequent native gold grains. The two main higher-grade trends in the corridor, the Moni Trend and the Contact Trend , are described in detail below. The metasedimentary-hosted JT Prospect , 2.5 kilometres to the west, is also near the intrusive-metasedimentary contact. The sedimentary sequences in this area display comparable characteristics with the stratigraphy hosting the Eleonore gold mine 12 kilometres to the northwest. Previous drilling results indicate that the Cheechoo tonalite is also mineralized in this area, suggesting a potential extension of the Contact Trend to form a semi-ring shape approximately 5.5 kilometres long.

The map in Figure 12 shows the salient drilling, prospecting and channelling results from the Contact and Moni trends, and Figure 13 shows a cross-section of mineralized drill holes.

Moni Trend

This 1.8-kilometre-long NE-striking trend is about 500 metres from the metasedimentary contact and includes the Moni, 101 and Trench prospects . It is characterized by a system of pegmatitic quartz-feldspar veins and quartz-dominant veins carrying native gold and very low sulphide contents. The vein systems within the trend remain open at depth and laterally.

Moni Prospect

This outcropping high-grade vein system is hosted in strongly altered tonalite and has been drill-tested to a vertical depth of 40 metres along a 60-metre strike length. Mineralized facies vary laterally from grey or black quartz veins to a quartzofeldspathic pegmatite carrying traces to 1-2% of sulphide minerals (mostly arsenopyrite with lesser pyrite, pyrrhotite) and small amounts of tourmaline and scheelite. To date, 345 native gold grains have been observed in 42 channel samples and more than 20 drill holes. The tonalite is pervasively altered (albite, silica) and displays a network of regularly spaced quartz veins and veinlets of variable widths, with feldspathic selvages (sheeted veins). The system is oriented NE-SW, shows evidence of folding, and is roughly parallel to the trend of steeply dipping foliation.

101 Prospect

In 2017, a prospecting program yielded high-grade grab samples grading up to 101 g/t Au) from an outcrop on strike with the Moni Prospect. Grab samples are selective by nature and unlikely to represent average grades.

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==> picture [520 x 398] intentionally omitted <==

Figure 12: Details of the Moni and Contact trends along the tonalite-metasedimentary contact showing selected drill, channel and prospecting results.

Trench Prospect

The Trench Prospect is 250 m southwest of the 101 Prospect. Very high-grade samples (up to 1,500 g/t Au) were collected from angular boulders of quartz-feldspar-(biotite) pegmatitic veins carrying native gold. It is believed these boulders come from a nearby source.

Contact Trend

This mineralized and altered envelope in tonalite ranges from several tens of metres to over 100 metres thick in core length, with continuous intervals of anomalous gold values. Drilling confirms consistent gold mineralization along a zone at least 1.4 kilometres long and 150 to 300 metres wide, adjacent to the contact with the surrounding metasedimentary rocks. Results show reasonably good geometric continuity and zones remain open down dip and along strike. Mineralization is characterized by clusters of quartz-albite-biotite stockworks accompanied by arsenopyrite, pyrrhotite, pyrite, scheelite and native gold.

Exploration model

Several key factors point toward a reduced intrusion-related deposit for the gold-bearing system on the Eleonore South Property. 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 such settings, the tops of the intrusions are typically viewed as highly prospective. Therefore, determing the geometry of the 2.61 Ga Cheechoo intrusion and surrounding metasedimentary rocks is a critical step in assessing the property’s potential. Late in the geological sequence, the tonalite is interpreted to be a mushroom-shaped intrusion with a roughly tabular top (450 to 500 m thick), a shallow to moderate southward dip along its southern contact and a moderate westward dip along its western contact (JT Prospect area). The current interpretation suggests it has not been overturned and that the Contact Trend is a decompression stockwork zone close to the top of the intrusion.

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Azimut has performed a rigorous interpretation and comparison of the geochemical footprints for Eleonore South and Newmont’s Eleonore gold mine, revealing comparable features. The Eleonore mine footprint suggests little to no displacement of the Eleonore South gold-arsenic soil anomalies from their bedrock sources. Consequently, the areas on the Eleonore South Property with unexplored strong geochemical anomalies are considered quality targets for potential near-surface discoveries.

==> picture [519 x 395] intentionally omitted <==

Figure 13: Example of a cross-section of diamond drill holes on the Eleonore South Property.

Opinaca A Property

The Opinaca A Property (43 claims, 22.4 km[2] ) is a 50/50 JV gold project with Everton. It is adjacent to Newmont’s Eleonore mine property and the access road to the mine runs through Opinaca A.

Work programs have identified three main target areas: the Charles Prospect (2.7 g/t Au over 2.0 m in DDH and up to 42.34 g/t Au in grabs) hosted in biotite-rich paragneiss with quartz veins and up to 15% sulphides (pyrite, pyrrhotite); the Inex Prospect (9.03 g/t Au over 0.6 m in DDH and up to 50.9 g/t Au in grabs) associated with a garnet-biotite-amphibole-silicarich rock hosted in paragneiss; and the Smiley Prospect (4.24 g/t Au over 1.0 m in hole OS-08-04-A) characterized by a major gold anomaly in till coupled with a gold-arsenic anomaly in soil and by locally intense alteration in greywackes and paragneiss.

Opinaca B Property

The Opinaca B Property (248 claims, 129.7 km[2] ) is a JV gold project with Everton and Hecla. Azimut owns a 25% interest in the property. It is adjacent to the Cheechoo gold project held by Sirios, approximately 16 kilometres to the east of Newmont’s Eleonore mine. The discovery potential of the property has been strengthened by Sirios’ mineral resource estimate for Cheechoo (see the section on the Eleonore South Property).

Exploration highlights

The most significant results were from the Dominic Prospect (drill interval of 0.61 g/t Au over 30.7 m, starting in mineralization), which corresponds to a folded epidote-amphibole-quartz-feldspar vein in metasediments close to a felsic

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intrusion. Other notable mineral occurrences include the Fishhook Prospect , a magnetic anomaly related to an iron-rich sedimentary unit (1.06 g/t Au over 1.5 m in a fault zone); the D8 Prospect , a 20-metre-wide altered arsenopyrite-tourmalinerich shear zone in metasediments (0.55 g/t Au over 4.0 m in a trench) and amphibolite-hosted quartz veins (2.3 g/t Au over 1.0 m in a channel); and the Claude Prospect , characterized by quartz-tourmaline veins and veinlets in a drill interval grading 2 g/t Au over 187 m (including 1.0 g/t Au over 21.5 m).

Opinaca D Property

The wholly-owned Opinaca D Property (31 claims, 16.2 km[2] ) is a gold project about 15 kilometres northwest of Newmont’s Eleonore mine. The access road to the mine runs through the property. Soil geochemistry surveys have confirmed a broad trend of strong gold, arsenic and antimony anomalies. Numerous VTEM anomalies are also present.

EASTMAIN RESERVOIR SECTOR

Azimut has two properties in the Eastmain Reservoir sector, Chromaska (chromium) and Wabamisk (gold), along with several claim blocks belonging to the wholly-owned JBN nickel project. The area is roughly 260 kilometres northwest of Chibougamau and 60 kilometres southeast of Newmont’s Eleonore mine. The area is notable for the Eau Claire gold deposit (Clearwater Property) of Fury Gold and the Whabouchi deposit of Nemaska Lithium Inc. (“Nemaska”). The Eau Claire deposit consists of open pit and underground components containing NI 43-101 compliant measured and indicated resources of 4.294 Mt at 6.18 g/t Au for 853,000 oz Au and inferred resources of 2.382 Mt at 6.53 g/t Au for 500,000 oz Au (Fury Gold PR of July 4, 2018).

Chromaska Property

The wholly-owned Chromaska Property (28 claims, 14.8 km[2] ) is a Cr-PGE-Ni project located in a highly accessible region with major infrastructure (permanent roads, power lines, airports), 35 kilometres north of Nemaska’s Whabouchi mining project and the nearby community of Nemiscau.

Through drilling, channeling and geophysical work, Azimut has determined that mineralization occurs as massive to semimassive chromite layers and chromite-rich dykes or sills in a well-defined prospective horizon within a 4-kilometre-long ultramafic intrusion (best channel interval of 17.21% Cr2O3 over 7.54 m). Preliminary mineralogical studies have indicated that a primary grind should be sufficient to easily liberate the chromite from the silicate gangue and that chromite grains have a Cr2O3 content of 44.5% and Cr/Fe ratios ranging from 1.63 to 2.4. The property shares several attractive geological and geophysical similarities with the Black Thor Intrusive Complex in the Ring of Fire district (Ontario), including the very close ages of the intrusive complexes (Black Thor: 2,734 Ma; Chromaska: 2,739 Ma).

Wabamisk Property

The Wabamisk Property (450 claims, 238.2 km[2] ) is a gold project held 49% by Azimut and 51% by Newmont. It is located about 70 kilometres south of Newmont’s Eleonore gold mine and has a comparable geological context and geochemical signature. Eight (8) of the claims are subject to a 2.1% NSR payable to Virginia Mines (1.4%; now Osisko Exploration) and SOQUEM (0.7%), with a buy-back of 1.05% for $350,000.

Exploration highlights

Diamond drilling and other exploration work (soil sampling, geophysics, and prospecting) have identified several gold target areas, including the 3.5-kilometre-long GH Prospect (best drill interval of 2.3 g/t Au over 4.3 m within an envelope defined by 19 m grading 0.7 g/t Au, 0.39% Sb and 0.20% As) and the 1.7-kilometre-long Dome-ML Prospect , which yielded several historical high-grade gold values (up to 80.7 g/t Au) in grab samples.

ROUTE 167 SECTOR

Route 167 is a permanent all-season road that connects the provincial highway network to the Renard diamond mine of Stornoway Diamonds (Canada) Inc. (“Stornoway”) via the communities of Mistissini and Chibougamau (see Figure 2 ). The government has proposed a second phase that would extend Route 167 northward to connect with the Trans-Taiga Road, over an approximate distance of 125 km. Azimut’s holdings in the Route 167 sector comprise the wholly-owned Corne Property, the Galinée JV project, and the majority of the claim blocks belonging to the wholly-owned JBN Project.

Galinée Property

The 36-kilometre-long Galinée Property (588 claims, 303.5 km[2] ) is a 50/50 JV gold project with SOQUEM, located about 50 kilometres north-northwest of Stornoway’s Renard mine and 60 kilometres south of the Trans-Taiga Road. The property is underlain by the La Grande Subprovince, about 15 kilometres north of the contact with the Opinaca Subprovince. The property

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provides a controlling position over an extensive LBS anomaly marked by a strong arsenic-bismuth-antimony footprint, accompanied by favourable geophysical, geological and structural criteria. Target deposit types are shear zone-hosted and intrusion-related. No historical showings are known on the property but Azimut’s prospecting led to the discovery of the subcropping, tonalite-hosted Gamora Prospect (up to 2.17 g/t Au). About 5 kilometres to the west, a gold grain dispersal train in till yielded a sample containing 52 delicate gold grains, suggesting a proximal common source.

Corne Property

The wholly-owned Corne Property (177 claims, 93.6 km[2] ) is a copper-gold project about 25 kilometres west of Route 167. It covers a 17-kilometre strike over a well-marked copper-bismuth-arsenic LBS anomaly. The property is located within the metasedimentary Opinaca Subprovince, close to the boundary with the Opatica Subprovince, and has seen very limited exploration. A small copper-molybdenum-silver intrusion-related deposit is located about 20 kilometres to the northwest (MacLeod, Pointe Richard).

JBN Project

In November 2021, Azimut acquired a new portfolio of 57 attractive nickel targets (1,128 claims or 590.2 km[2] ) by map designation, collectively forming the James Bay Nickel (“JBN”) Project (PR of November 30, 2021). The targets are widely dispersed throughout the James Bay region, but the majority lie between Route 167 and the Eastmain Reservoir. They also present a significant potential for copper, cobalt and PGE, which are commonly associated with nickel deposits. All the commodities of interest are expected to be in high demand in the long term, given the current global energy transition period. Most of the targets correspond to kilometre-scale mafic to ultramafic intrusions, likely representing subvolcanic conduits, dykes, and sills in volcano-sedimentary sequences. The majority have little or no past exploration history. Azimut considers the James Bay region to be underexplored for this discrete but potentially highly valuable target type. The exploration concept supporting this claim position is based on a specific high-grade nickel deposit model, best illustrated by the Eagle’s Nest deposit belonging to Noront Resources Ltd in the Ring of Fire (Ontario) and the Eagle deposit of Lundin Mining Corporation in Michigan (USA). Azimut is implementing efficient in-house exploration protocols to rapidly validate and advance these targets to the drilling stage.

ROUTE 389 SECTOR

The main infrastructure in the far eastern part of the James Bay region is Route 389, a 570-kilometre-long highway between the city of Baie-Comeau in Quebec and the Newfoundland-Labrador border. A joint 10-year federal-provincial improvement program currently underway will improve access to lands north of the 49[th] parallel in this area. Azimut holds two whollyowned properties in the sector (Mercator and Valore) and a JV project (Desceliers).

Desceliers Property

The Desceliers Property (279 claims, 144.9 km[2] ) is a gold-copper JV 50/50 project with SOQUEM. The property is located roughly 150 kilometres west of Route 389. It is underlain by Archean rocks of the Opinaca Subprovince and is characterized by a strong geochemical signature of Au-As-Cu-W in LBS, accompanied by favourable geophysical criteria. This area has seen minimal historical exploration and very little is known about its geology. The property is attractive for the nature and size of its geochemical footprint (an especially strong Au-Cu association) and the untested potential of the area. Work to date (Azimut and SOQUEM) has defined several robust targets, namely for iron oxide copper-gold (“IOCG”) and magmatic Ni-Cu deposits.

Mercator Property

The wholly-owned Mercator Property (351 claims, 182.1 km[2] ) is a copper-polymetallic (Cu-Ni-Co) project measuring 22 kilometres long by 16 kilometres wide. It is located roughly 100 kilometres west of Route 389. Geologically, it lies in the Opinaca Subprovince at the boundary with the Ashuanipi Subprovince. The property displays strong geochemical signatures in LBS, including copper, bismuth and molybdenum, as well as, more locally, nickel and cobalt. This area has no record of past exploration.

Valore Property

The wholly-owned Valore Property (20 claims, 10.4 km2) is a gold project located roughly 100 kilometres northwest of Route 389 and 185 kilometres east of Stornoway’s Renard mine. Located in an area of the Opatica Subprovince with poor geological coverage, the property has seen little historical exploration. Azimut has identified several strong gold LBS anomalies of up to 2.13 g/t Au. The claims are still in good standing as at January 27, 2022, but Azimut has elected to no longer pursue its assessment of the project due to other regional priorities.

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NUNAVIK REGION

Azimut holds six (6) properties in Nunavik, the region in Northern Quebec above the 55[th] parallel ( Figure 14 ). Management believes the region offers significant potential for commodities deemed critical or strategic by the Quebec and Canadian governments, specifically copper, tellurium, bismuth, tungsten, tin, molybdenum, rhenium, indium and rare earth elements (“REE”). The Company also recognizes the region’s potential for uranium and diamonds. The Company’s current holdings are primarily the result of copper-gold predictive modelling using Azimut’s proprietary AZtechMine[TM] expert system over an area covering 1,247,900 km[2] .

AZIMUT-SOQUEM NUNAVIK ALLIANCE

On May 15, 2019, Azimut announced that it had signed an agreement with SOQUEM to form a new alliance in Nunavik (the “Nunavik Alliance”) comprising two option phases representing a total investment of up to $40 million. Under the first option, SOQUEM has the option to earn an initial 50% interest in the Rex-Duquet, Rex South and Nantais properties by investing $16 million in exploration work over four (4) years, the first two (2) years being a firm commitment of $4 million each year. Under the second option, SOQUEM may earn an additional 10% interest in each designated property (for a total 60% interest in each such property) by investing $8 million per designated property over two (2) years and delivering a preliminary economic assessment. Azimut is the operator of the Nunavik Alliance. The current $4-million Nunavik Alliance exploration program follows the initial $4-million program that was completed in spring 2020.

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Figure 14: Map of Azimut’s Nunavik property portfolio.

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NUNAVIK – GOLD-COPPER POLYMETALLIC

Through its Rex-Duquet and Rex South properties, the Company has acquired a controlling land position over a vast underexplored region of Nunavik considered by management to be a new mineral province with the potential to host largescale deposits. The area, known as the Rex Trend , is characterized by a strong 300-kilometre-long copper anomaly in LBS, coupled with a strong 100-kilometre-long REE anomaly. The Alliance aims to unlock the mineral potential of this largely underexplored region. The main targets are IOCG deposits, reduced intrusion-related gold-polymetallic systems, copper-gold mineralization in shear zones, and volcanogenic massive sulphides.

Rex-Duquet Property

The wholly-owned Rex-Duquet Property (2,041 claims, 871.9 km[2] ) is a copper-gold project occupying the northern segment of the Rex Trend. The project is also of interest for a suite of other commodities, notably silver, tellurium, tungsten, REE and molybdenum. The claim blocks are spread over a distance of 80 kilometres and were two properties before becoming amalgamated under the Nunavik Alliance. All the rights, titles and interests in the former Duquet Property were transferred to Azimut in consideration of an aggregate 2.25% NSR on those claims, with a 0.75% NSR payable to each of the three previous joint owners (Osisko Exploration, Newmont Northern Mining ULC and SOQUEM).

In Q1 2022, on behalf of SOQUEM, the Company incurred $4,000 in claim renewals ($Nil – Q1 2021) and $145,000 ($72,000 – Q1 2021) in exploration expenditures, all of which was charged back to SOQUEM in full.

Exploration highlights

The Rex-Duquet component of the summer 2021 SOQUEM-funded Nunavik Alliance exploration program consisted of diamond drilling (2,152 m in 12 holes), geophysics (IP and magnetics) and channel sampling to accelerate the assessment of the best mineralized zones on the property (PR of September 15, 2021). Assay results are pending. The key features of the main drill-tested target zones ( Figure 15 ) are summarized below and all assays correspond to previously reported results.

RBL Zone

The RBL Zone is at least 3 kilometres long by 50 to 200 metres wide, with up to 11.3% Cu in grab samples. Mineralization primarily consists of chalcopyrite (lesser digenite, covellite) and pyrite. Copper mineralization is present as disseminations and in veinlets, stockworks, centimetric to decimetric massive sulphide blebs, semi-massive veins and breccia cement. RBL exhibits characteristics of a major IOCG-type hydrothermal-magmatic system with possible significant down-dip extensions. Other comparable zones in the Rex Trend appear to be related to brittle faults (the KAAM, Mousquetaires, CM, Jemima, Impact and Sombrero zones), highlighting the regional-scale potential for this type of deposit, likely related to deep-rooted crustal-scale structures.

Mousquetaires Zone

Mousquetaires is a target zone at least 1.5 kilometres long by 200 metres wide related to a copper-bearing brittle fault cutting a foliated iron formation. The zone returned grab sample grades ranging up to 13.65% Cu, 0.12% Mo, 25.9 g/t Te and 14.25 g/t Re. This zone may represent the strike extension of the RBL Zone located 10 kilometres to the NNW.

Subtle Zone

The Subtle target zone is recognized over an area 500 metres long by 150 metres wide, striking NNW with a subvertical dip and largely open along strike. It is interpreted as a shear-hosted mineralized system, returning high grades of 580 g/t Au, 915 g/t Ag and 7.87% Zn from grab samples, including up to 11.7 g/t Te, 0.5% W and 0.25% Mo.

PAK Zone and PAK North Zone

The PAK and PAK North zones lie on strike with the Subtle Zone. They form a group of 10 prospects distributed over a distance of 7 kilometres that yielded up to 133.5 g/t Au, 851 g/t Ag, 9.09% Zn, >500 g/t Te, 1.6% Cu and 0.87% W in grab samples and proximal boulders.

Rex South Property

The wholly-owned Rex South Property (2,301 claims, 1,002.2 km[2] ) is a copper-gold project occupying the southern segment of the Rex Trend. The project is also of interest for a suite of other commodities, notably silver, tungsten, bismuth, REE, tellurium, molybdenum and tin.

In Q1 2022, on behalf of SOQUEM, the Company incurred $7,000 in claim renewals ($Nil – Q1 2021) and $194,000 ($70,000 – Q1 2021) in exploration expenditures, all of which was charged back to SOQUEM in full.

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Exploration highlights

The Rex South component of the summer 2021 SOQUEM-funded Nunavik Alliance exploration program consisted of diamond drilling (738 m in 5 holes), geophysics (IP and magnetics) and channel sampling to accelerate the assessment of the best mineralized zones on the property (PR of September 15, 2021). Assay results are pending. The key features of the main drilltested target zones ( Figure 16 and Figure 17 ) are summarized below and all assays correspond to previously reported results.

Augossan Zone

The Augossan Zone represents a large polymetallic envelope (Au, Ag, Cu, W, Sn, Te, Bi, Rb, Mo) about 8 kilometres long by 100 to 350 metres wide at the contact between an oval fluorite-topaz-bearing A-type intrusive complex (the Qalluviartuuq Intrusive Complex: “QIC”) and volcano-sedimentary rocks. The zone remains open in all directions, notably toward the intrusion. Grab samples returned grades of up to 47.2 g/t Au, 90.0 g/t Ag, 2.56% Cu, 60.8 g/t Te, 4.62% W, 7.53% Sn, 0.36% Mo, 0.77% Bi, and 0.25% Rb in grab samples. Channel sampling yielded 7.53% Sn, 0.72% W and 0.14% Cu over 2.7 m. Highlights from a previous RC drilling program include: 0.14% W over 15.24 m, 0.12% W and 0.35% Cu over 7.62 m; 1.28 g/t Au, 8.41 g/t Ag and 0.12% Cu over 6.1 m; 1.10 g/t Au and 2.60 g/t Ag over 9.14 m.

Copperton Zone

The Copperton Zone, 3.5 kilometres long by 20 to 100 metres wide, is hosted in a variably sheared, steeply dipping feldspathic intrusion, and in amphibolites and gneissic metasediments. Mineralization is mainly disseminated to semi-massive chalcopyrite, pyrite and pyrrhotite. The best grades were 9.56 g/t Au, 82.7 g/t Ag, 9.56% Cu, 38.4 g/t Te and 0.23% W in various grab samples.

Dragon North Zone

The Dragon North target zone, 450 metres long by 90 metres wide, is hosted in foliated mafic and felsic volcanics striking NW and dipping to the NE. Mineralization is mainly chalcopyrite accompanied by lesser pyrite and magnetite, with the best grab samples grading 4.05% Cu, 0.6% Mo and 2.78% Cu, 0.13% Mo. Alteration is mainly silicification.

Dragon Zone

The Dragon Zone, roughly 2 kilometres in strike length, is hosted in felsic orthogneiss. Mineralization occurs as chalcopyrite in quartz veins and veinlets associated with tourmaline. Alteration is marked by epidote and hematite. The best grades from grab samples are 3.67% Cu, 11.2 g/t Au and 48.5 g/t Te.

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Figure 15: Map of the Rex-Duquet Property (A Block) showing the best grab and channel sample results to date.

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Figure 16 : Map of the Rex South Property showing some of the most significant zones and best grab samples to date (continued in next figure).

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Figure 17: Map of the Rex South Property showing the remaining zones and best results to date.

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Jemima Zone

The Jemima Zone, 2 kilometres long by 30 to 100 metres wide, is characterized by disseminated to semi-massive chalcopyrite and bornite associated with hematite-magnetite in veins, veinlets or breccia cement, accompanied by strong pervasive potassic alteration, silica, chlorite and epidote. Grab sample assays ranged from 0.5% to 2.86% Cu, with molybdenum and rhenium contents of up to 0.17% Mo and up to 0.422 g/t Re.

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

Overall, the Rex and Rex South properties demonstrate evidence for two types of district-scale mineralized systems:

An intrusion-related polymetallic system associated with the QIC on the Rex South Property. This includes the Augossan, Anorthosite, Copperton, Dragon, Lebreuil and Boreal zones, and the Pegor and Ferrus prospects. Considerable additional exploration potential exists along the 30-kilometre 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 northwest and southeast extensions of the Augossan trend.
IOCG mineralization associated with brittle structures and characterized by copper-dominant values accompanied by magnetite, hematite and pervasive potassic alteration, represented by the RBL, Mousquetaires and CM zones on the Rex Property, by the Jemima Zone, Sombrero and Impact prospects on the Rex South Property.

A comparison can be made between the Rex Trend context 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-BiSn) 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.

Nantais Property

The wholly-owned Nantais Property (541 claims, 226.6 km[2] ) is a Au-Ag-Cu-Zn project about 110 kilometres east of the Rex Trend, about 80 kilometres south of Glencore’s Raglan nickel mine and 115 kilometres southwest of the Inuit village of Kangiqsujuaq. The project covers 32 kilometres of an underexplored greenstone belt in the Nantais Complex of the Minto Block, a geological division of the Archean Superior Province. Three historical showings are present on the property. Target deposit types are gold-rich polymetallic VMS and shear zone-hosted.

In Q1 2022, on behalf of SOQUEM, the Company did not incur any claim renewal expenditures ($Nil – Q1 2021) and $100 ($600 – Q1 2021) in exploration expenditures, all of which was charged back to SOQUEM in full. Azimut and SOQUEM will continue the technical assessment of the property through the Nunavik Alliance program.

Exploration results

A SOQUEM-funded exploration program on selected target areas ( Figure 18 ) outlined a 1.6-kilometre-long gold-bearing area in which most grab samples are from angular boulders composed of sheared mafic volcanics with quartz veins and pyrite (best grade of 6.91 g/t Au, 16.4 g/t Ag and 0.22% Cu). Infill prospecting also improved the definition of a previously recognized polymetallic corridor, 3.1 kilometres long by up to 500 m wide, in the central part of the property. Mineralization (pyrrhotite, pyrite, chalcopyrite, arsenopyrite, sphalerite, galena) is hosted within a steeply dipping north-trending unit of mafic and felsic volcanic rocks (best grab sample grades of 17.4 g/t Au, 8.82 g/t Ag, 0.2% Cu and 245 g/t Ag, 1.62% Pb, 6.45% Zn).

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Figure 18: Map of the Nantais Property showing the main zones and best results to date.

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NUNAVIK – COPPER

Doran Property

The focus of the wholly-owned Doran Property (436 claims, 210.7 km[2] ) is its copper potential. A showing of chalcocite (a copper-bearing mineral) in a granite outcrop previously yielded >40% Cu and 12 g/t Ag. Abundant hematite veinlets, some silicification, and lesser amounts of disseminated pyrite and pyrrhotite were also observed. A major structure in the showing area correlates with a 25-kilometre copper anomaly in LBS (up to 316 ppm Cu).

NUNAVIK – DIAMONDS

Diamrex Property

The wholly-owned Diamrex Property (427 claims, 181.8 km[2] ) is a diamond project adjacent to the west side of the Rex-Duquet Property. The claim blocks are spread over a distance measuring 25 kilometres east-west and 15 kilometres north-south. Azimut has conducted a preliminary assessment of the potential for diamond targets related to the deep-seated structural corridor known as the Allemand-Tasiat Zone. This corridor has been recognized as prospective for diamonds by Quebec’s Ministry of Energy and Natural Resources. The Diamrex Property now covers several targets of interest generated by that work.

NUNAVIK – URANIUM

North Rae Property

Azimut’s sole uranium property is the wholly-owned North Rae Property (1 claim, 0.5 km[2] ). Azimut considers Nunavik to be highly prospective for large-tonnage uranium deposits related to intrusive rocks in high-grade metamorphic environments. Management considers the North Rae property area in the eastern Ungava Bay region to be a new uranium province.

OUTLOOK

In the next quarters, Azimut will continue advancing its flagship project, the Elmer Property, along with other wholly-owned properties in the James Bay region (Kaanaayaa, Corne, Corvet, Kukamas, Mercator and JBN) and three of the JV projects under the James Bay Alliance with SOQUEM (Pikwa, Munischiwan and Galinée), and it will continue to assess the technical progress made on the Eleonore South Property. Furthermore, Azimut will pursue its work with SOQUEM under the Nunavik Alliance to advance the Rex-Duquet and Rex South properties. The following tables present the status of the current work programs on the Company’s key properties and the planned exploration programs for the remainder of 2022.

Based on industry trends and demand, Azimut will also continue to model the mineral potential of several regions in Quebec to generate new projects and may consider opportunities for other commodities and in other regions. The Company will also continue to seek new partners for available properties to safeguard the value added to its projects. The Company may require financing for these purposes.

The COVID-19 pandemic may continue to create operational uncertainties.

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JAMES BAY REGION

JAMES BAY REGION	JAMES BAY REGION	JAMES BAY REGION
Property	Status	2022planned workprogram
Elmer (gold)	Targets identified	Diamond drilling, RC drilling, prospecting, mechanical stripping
Wapatik (gold, nickel-copper)	Targets identified	Ground geophysics, diamond drilling Partner-fundedprogram
Munischiwan (gold-copper)	Targets identified	Diamond drilling 50% funded
Pikwa (gold-copper)	Technical assessment underway	Compilation and interpretation 50% funded
Galinée (gold)	Targets identified	Prospecting, till sampling 50% funded
Opinaca B (gold)	Targets identified	Drilling stage Partner-fundedprogram to be defined
Eleonore South (gold)	Targets identified	Drilling stage, prospecting Partner-fundedprogram
Wabamisk (gold)	Technical assessment underway	Drilling stage Partner-fundedprogram to be defined
Corvet (gold-copper)	Reconnaissance	Helibornegeophysics
Kukamas (copper-gold)	Reconnaissance	Heliborne geophysics, detailed LBS geochemistry, prospecting
Mercator (copper-polymetallic)	Reconnaissance	Detailed LBSgeochemistry,prospecting
Corne (copper-gold)	Reconnaissance	Detailed LBSgeochemistry,prospecting
Kaanaayaa (gold-copper)	Technical assessment underway Reconnaissance	Prospecting
JBN	Technical assessment underway	Data compilation, dataprocessing


NUNAVIK REGION
Property	Status	2022planned workprogram
Rex-Duquet (gold-copper)	Priority targets identified	Ground geophysics, prospecting, drilling Partner-funded program
Rex South (gold-copper)	Priority targets identified
Nantais (gold, silver, copper, zinc)	Technical assessment underway	Data processing Partner-fundedprogram

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SELECTED FINANCIAL INFORMATION

ED FINANCIAL INFORMATION
	November 30,
	2021 ($)	2020 ($)
Revenue Operator income	25,811	18,101
Expenses G&A General exploration Interest income, net of finance costs	129,796 61,052 (23,067)	166,533 105,081 (7,815)
	167,781	263,799
Other loss (gain)	(4,594)	3,629
Deferred income tax recovery	(650,567)	(431,442)
Net income for the period	513,191	182,115
Basic and diluted loss per share	0.006	0.003

RESULTS OF OPERATIONS

Q1 2022 COMPARED TO Q1 2021

The Company reported a net income of $513,000 for Q1 2022 compared to $182,000 for Q1 2021. The variation is mainly due to the non-cash items consisting of deferred income tax recovery related to tax deductions renounced by the Company to flowthrough shareholders in the amount of $650,000 ($431,000 – Q1 2021). Other significant variations are detailed below.

Revenue

The Company reported revenue of $26,000 ($18,000 – Q1 2021) in operator income. The increase is mainly due to the greater volume of work performed on the Nunavik Alliance with SOQUEM and the Wapatik Property, of which the Company is the operator.

Operating expenses

G&A expenses amounted to $130,000 in Q1 2022 compared to $167,000 in Q1 2021. The variation is mainly due to the net effect of the following: (i) a decrease of $50,000 in salary and fringe benefits in Q1 2022 due mainly to the allocation of more personnel to E&E assets and the more active search for properties; (ii) a reduction in professional fees ($9,000 in Q1 2022 compared to $53,000 in Q1 2021) due to no special mandate; and (iii) an increase of $52,000 in business development and administration fees in Q1 2022 due mainly to costs incurred for OTC advisory services related to Azimut’s listing on the OTCQX market.

General exploration expenses were $61,000 in Q1 2022 compared to $105,000 in Q1 2021. The decrease is mainly due to stock-based compensation costs of $21,000 ($85,000 – Q1 2021), an expense that did not affect cash.

Other gains and losses

The Company reported other gains of $5,000 for Q1 2022, compared to $4,000 for Q1 2021. The increase was mainly due to the change in the fair value of the Company’s investment in Captor Capital Corp. and West African Resources.

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OTHER INFORMATION

	November 30,	August 31,
	2021	2021
Cash and cash equivalents	$26,830,882	$27,641,849
Total assets	$50,914,943	$51,860,897
Shareholders' equity	$44,863,958	$44,332,440
Number of shares outstanding	81,753,844	81,753,844
Number of stock options outstanding	5,075,000	5,085,000
Number of underwriter’s options outstanding	501,695	501,695

The Company has not declared cash dividends on its outstanding common shares since its incorporation. Any future dividend payment will depend on the Company’s financial needs for its exploration programs and future financial growth or any other factor that the Board of Directors deems necessary to consider under the circumstances. It is unlikely that dividends will be paid in the near future.

CASH FLOWS, LIQUIDITY AND CAPITAL RESOURCES

Azimut is currently in the exploration and evaluation stage and has not earned significant revenues.

Financial position

The Company’s working capital was $23.1 million as at November 30, 2021, compared to $25.0 million as at August 31, 2021. Management believes that the Company’s current cash position is sufficient to continue advancing its flagship project, the Elmer Property and to meet current commitments on a continuous basis for at least the next twelve (12) months. To pursue the Company’s exploration and evaluation programs and operations beyond November 30, 2023, it will be necessary to periodically raise additional funds through the issuance of new equity instruments and/or the exercise of stock options and warrants and/or the signing of option agreements with partners on the Company’s E&E assets. While the Company has been successful in doing so in the past, there can be no assurance it will be able to do so in the future or that these sources of funding or initiatives will be available to the Company, or that they will be available on terms that are acceptable to the Company.

Total assets amounted to $50.9 million as at November 30, 2021, compared to $51.9 million as at August 31, 2021, owing mainly to the net cash used to pay the August 31, 2021 payables and for operations. The decrease in amounts receivable was mainly due to $2.35 million receivable from partners related to the cash-call for work expenditures on the optioned properties of which the Company is the operator. The decrease in commodity taxes receivable was due to the amount received in full after the audit conducted by Revenu Quebec. The decrease in E&E costs was incurred mainly in the James Bay region on the Elmer Property and the acquisition of the JBN nickel project. The decrease in accounts payable and accrued liabilities is largely due to the completion of summer fieldwork in the Nunavik region. The only active fieldwork during Q1 2022 is in the James Bay region. The decrease in other liabilities is due to the flow-through shares premium liability of $2.7 million ($3.4 million – August 31, 2021) related to a tax recovery expense because the $2.0 million eligible expenditure was incurred during the period.

Operating activities

In Q1 2022, net cash flows from operating activities amounted to $310,000 compared to net cash flows of $694,000 used in operating activities in Q1 2021. The variation is mainly due to a decrease of $50,000 in salary and fringe benefits in Q1 2022 related to the allocation of more personnel to E&E assets. The net change in non-cash working capital amounted to $409,000 ($548,000 – Q1 2021), consisting of the variation in amounts receivable related to the commodity taxes received after an audit conducted by Revenu Québec and to the current input tax credit receivable. The net variation in accounts payable and accrued liabilities is mainly related to current expenses and annual audit fees.

Financing activities

The Company did not complete any non-brokered private placements in Q1 2022 compared to $6.0 million in Q1 2021.

Investing activities

Investing activities consisted mainly of additions to E&E assets. In Q1 2022, the net cash flows used in investing activities totalled $1.1 million compared to $1.6 million in Q1 2021. The variation is attributable to the net effect of the following:

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Additions to E&E assets amounting to $3.5 million ($1.9 million – Q1 2021). The Company incurred significant costs in the James Bay region on the Elmer Property and through its acquisition of the JBN nickel project by staking.
Advances received from partners in the amount of $2.3 million ($300,000 – Q1 2021) to conduct exploration work on the Rex-Duquet, Rex South, Nantais and Wapatik properties.

Advanced exploration work on the Company’s properties and ongoing work to identify major early-stage exploration targets are pursuits that require substantial financial resources. In the past, the Company has been able to rely on its ability to raise financing in privately negotiated equity offerings. There is no assurance that the Company will be successful in raising additional funds in the future.

QUARTERLY INFORMATION

The information presented below details the total income (expenses), net earnings (loss), and net earnings (loss) per share for the last eight quarters. The information is based on the Company’s financial statements prepared in accordance with IFRS.

Quarter ended	Income (expenses)	Net earnings (loss)	Net earnings (loss) per share	Net earnings (loss) per share
	$	$	Basic ($)	Diluted ($)
30-11-2021	30,405	*513,191	0.006	0.006
31-08-2021	142,465	*140,435	0.002	0.002
31-05-2021	129,451	**(1,055,182)	(0.015)	(0.015)
28-02-2021	53,549	*181,873	0.003	0.003
30-11-2020	14,472	*182,115	0.003	0.003
31-08-2020	(193,002)	35,787	0.000	0.000
31-05-2020	264,504	***(298,934)	(0.005)	(0.005)
29-02-2020	51,168	(26,022)	0.000	0.000

Deferred income tax recovery

** Impairment of E&E assets and stock-based compensation

*** Stock-based compensation

CONTRACTUAL OBLIGATIONS

As at November 30, 2021, the Company’s contractual obligation payments are as follows:

Accounts payable and accrued liabilities, advances received for exploration work Lease liabilities Total contractual obligations	Contractual cash flows $ 2,133,811 107,368 2,241,179	0 to 12 months $ 2,133,811 63,531 2,197,342	12 to 24 months $ - 43,837 43,837	More than 24 months $ - -
				-

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no off-balance sheet arrangements.

CARRYING AMOUNT OF EXPLORATION AND EVALUATION ASSETS

At the end of each quarter, management reviews the carrying value of its E&E assets to determine whether any write-offs or write-downs are necessary. Based on the impairment analysis performed in Q1 2022, no impairments were deemed necessary. The Company has sufficient funds to respect its short-term obligations. The estimation of impairment charges requires judgment from the management.

RELATED PARTY TRANSACTIONS

The related parties of the Company include key management and companies owned by the key management team. Key management includes directors, the chief executive officer (“CEO”), the Vice-President Technology and Business

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Development (“VP”), and the chief financial officer (“CFO”). The following transactions occurred during the normal course of business.

The table below summarizes the compensation paid or payable to key management for services:

Salaries Director fees	Three-month period ended November 30,	Three-month period ended November 30,
	2021 $ 160,781 11,500 172,281	2020 $ 155,617 11,500
		167,117

An amount for salaries of $65,300 ($71,000 – Q1 2021) was capitalized to E&E assets in Q1 2022.

As at November 30, 2021, accounts payable and accrued liabilities include an amount of $315,000 owed to key management ($147,000 as at November 30, 2020).

If termination of employment is for reasons other than gross negligence, the CEO and the CFO shall be entitled to receive an indemnity equal to twelve (12) months salary. The VP shall be entitled to receive an indemnity equal to twelve (12) weeks salary, which shall be increased by one (1) month for every additional year of employment. The indemnity paid must not represent more than 10% of the Company’s liquidities at such time and is subject to a maximum indemnity period of twelve (12) months. As at November 30, 2021, the entitled indemnity amounted to $453,000.

In the event of a change of control or the termination of employment following a change of control, the CEO shall be entitled to receive an indemnity of $525,000, equal to twenty-four (24) months salary, and the CFO an indemnity of $232,000 equal to eighteen (18) months salary.

SUBSEQUENT EVENT

No material subsequent event to report.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A detailed summary of the Company’s significant accounting policies is provided in Note 2 of the Fiscal 2021 annual financial statements.

NEW ACCOUNTING STANDARDS OR AMENDMENTS

The Company did not adopt any new accounting standards or amendments in Fiscal 2021 or the current period.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

A detailed summary of the Company’s critical accounting policies and estimates is provided in Note 3 of the Fiscal 2021 annual financial statements.

INFORMATION REGARDING OUTSTANDING SHARES

The Company can issue an unlimited number of common shares with no par value. As at January 27, 2022, there were 81,853,844 issued and outstanding shares, no shares held in escrow, no outstanding warrants and 501,695 underwriter compensation options, each exercisable for one common share of the Company at a price of $1.90 per share until January 16, 2023.

The Company maintained a stock option plan in which a maximum of 5,857,000 stock options may be granted. The exercise price of the options is set at the closing price of the Company’s shares on the TSXV the day before the grant date. The options have a maximum term of ten (10) years following the grant date. If a blackout period is in effect at the end of the term, the expiry date will be extended by ten (10) business days following the end of the blackout period. The options vest immediately unless otherwise approved by the Board of Directors. As at January 27, 2022, a total of 5,070,000 stock options were outstanding, and 4,908,000 were vested. Their exercise prices range from $0.19 to $1.76 and the expiry dates range from May 9, 2022 to December 13, 2031.

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ADDITIONAL INFORMATION AND CONTINUOUS DISCLOSURE

This MD&A report is dated January 27, 2022, the date on which it was approved by the Board of Directors. The Company regularly discloses additional information through press releases and its financial statements filed on SEDAR (www.sedar.com).

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This document contains forward-looking statements, which reflect the Company's current expectations regarding future events. To the extent that any statements in this document contain information that is not historical, they are essentially forwardlooking and often identified by words such as “anticipate”, “expect”, “estimate”, “intend”, “project”, “plan” and “believe”. These forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Many factors could cause such differences, particularly the impact of COVID-19, volatility in and sensitivity to market metal prices, the impact of change in foreign currency exchange rates and interest rates, imprecision in reserve estimates, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies, and failure to obtain necessary permits and approvals from government authorities, as well as other development and operating risks. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this document. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, other than as required to do so by applicable securities laws.

(s) Jean-Marc Lulin President and CEO	(s) Moniroth Lim
	CFO and Corporate Secretary

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CORPORATE INFORMATION

Azimut Exploration Inc.

Board of Directors

Michel Brunet, LL.B., Director (Montreal)[(1)] Jean-Marc Lulin, P.Geo., PhD, Director (Montreal) Angelina Mehta, Eng., MBA, LL.M., Director (Montreal)[(1) ] Krista Muhr, Director (Vancouver) Glenn Mullan, P.Geo., Chairman & Director (Val-d’Or)[(2) ] Jean-Charles Potvin, MBA, B.Sc., Director (Ottawa)[(2)] Jacques Simoneau, Eng., PhD, Director (Montreal)[(1)(2) ]

(1) Member of the Governance and Compensation Committee

(2) Member of the Audit Committee

Management

Jean-Marc Lulin, President and Chief Executive Officer Moniroth Lim, Chief Financial Officer and Corporate Secretary

Legal Counsel

Marc Pothier, Fasken (Montreal)

Auditors

PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l. (Montreal)

Transfer Agent

AST Trust Company Canada (formerly Canadian Stock Transfer Company Inc.) (Montreal)

Listing

TSX Venture Exchange (TSXV) Symbol: AZM

Contact Information

Head Office 110, De La Barre Street Suite 224 Longueuil, QC Canada J4K 1A3 Tel.: 1 450 646-3015 Fax: 1 450 646-3045 E-mail: [email protected] Website: www.azimut-exploration.com

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AI assistant

Wavefront Technology Solutions Inc. — Interim / Quarterly Report 2022

43988_rns_2022-01-28_47d30723-4854-415f-a0e5-66d23aad870c.pdf

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three-month period ended November 30, 2021

TABLE OF CONTENTS

CORPORATE PROFILE AND MISSION

OVERALL PERFORMANCE

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

ECOLOGO certification

Health and safety

Environment stewardship

Community relations

EXPLORATION AND EVALUATION ASSETS

Table 1: Change in E&E assets – Q1 2022

JAMES BAY REGION

Elmer Discovery Sector

Trans-Taiga Road Sector

Eleonore Gold Camp

Eastmain Reservoir Sector

Route 167 Sector

Route 389 Sector

AZIMUT-SOQUEM JAMES BAY ALLIANCE

ELMER DISCOVERY SECTOR

Elmer Property

Key features of the Patwon Zone (PRs of November 22, November 4, October 18, July 20, June 22, June 2 and May 19, 2021)

Diamond drilling program details

Significant drilling results (PRs of November 11, November 4, October 18, July 20, June 22, June 2, and May 19, 2021)

Patwon Zone:

Exploration Targets:

Metallurgical test results

Possible analog and potential of the Elmer Trend

Elmer South Property

Munischiwan Property

Exploration highlights

Pilipas Property

Wapatik Property

Exploration highlights

TRANS-TAIGA ROAD SECTOR

Corvet Property

Dalmas Property

Kaanaayaa Property

Kukamas Property

Pikwa Property

Exploration highlights

Pontois Property

ELEONORE GOLD CAMP

Eleonore South Property

Exploration highlights

Moni Trend

Moni Prospect

101 Prospect

Trench Prospect

Contact Trend

Exploration model

Opinaca A Property

Opinaca B Property

Exploration highlights

Opinaca D Property

EASTMAIN RESERVOIR SECTOR

Chromaska Property

Wabamisk Property

Exploration highlights

ROUTE 167 SECTOR

Galinée Property

Corne Property

JBN Project

ROUTE 389 SECTOR

Desceliers Property

Mercator Property

Valore Property

NUNAVIK REGION

AZIMUT-SOQUEM NUNAVIK ALLIANCE

NUNAVIK – GOLD-COPPER POLYMETALLIC

Rex-Duquet Property

Exploration highlights

RBL Zone

Mousquetaires Zone

Subtle Zone

PAK Zone and PAK North Zone

Wavefront Technology Solutions Inc. Interim / Quarterly Report 2022