MARCH M QUARTE ER 2012 OPERATTIONS REPORT

ASX / TSX & Media Releasee ASX A Code – AZM TSX Code – AZR 23rd April 2012

Resources Increaased New Minerralisation Discoveered A$20M Exp ploratio on Commitm ment  Increassed Measureed and Indiccated Resouurce by 57% % to 1,016,0000oz Au andd Inferred Resource R byy 27% to 6599,000oz Au  Confirm med that all key depositts include shhallow, higher grade mineraliisation to suupport annuaal productio n head graddes of +/Au 2.0g/t A

ww ww.azumahresources.com.au Investment Highlights:

 NI 43-1001 and JORC Coode reportable 1.02Mozz Measured & Inndicated and 0.66Mozz Inferred Mineraal Resource at Wa W Gold Project, NW Ghanna  100% off 3,100km2 licences hosting oveer 150km of o prospective B Birimian greenstone belt. Less tthan 10% effectiveely explored  Feasibillity Study nearlyy completed for multi-pitt, +1.0Mtpa, ~1000,000oz per yeaar mining and a gravity / CILL operation  Aggresssive $20M, 2012 drilling program mme focused onn resource discoveery and increasee  17% straategic investmeent in neighbourr, Castle Minerals M Limitedd  Board and a managemennt team of successsful explorers, m mining and corporaate professionalss Issued Capiital: 333.6M M ordinary shares 9.5M un nlisted options 2.0M peerformance rightss Directors & Management: Chairm man: Michael Atkins Managiing Director: Steephen Stone Non-Exxecutive Director: Geeoff M Jones Compaany Secretary: Deennis Wilkins Contact: Stepheen Stone Mb: +611 (0) 418 804 564 stone@ @azumahresourcees.com.au

 Successsfully testeed for mineraalisation at 11.5km Aduaane anomaloous gold trennd between the Kunchee and Bepkoong flagshipp deposits  Commeenced drillinng to investiggate mineraalisation beloow current Kunche and Bepkong resourcees  Advancced several new targetss towards drrill status  Committted $20M to t 2012 resoource discovvery and expansion focusedd explorationn programme  Installe d on-site saample prep laboratory too reduce assay turnarouund times  Advancced the Wa Gold Projecct Feasibilityy Study  Increassed strategicc shareholding in neighbbour, Castlee Minerals Limited,, to 17%  Compleeted C$20M M capital raissing  Cash annd listed invvestments att end of Quaarter of $30.2M A Ressources Limitted (ASX: AZ ZM West African gold explorer andd developer Azumah TSX: AZR) is pleaased to advisse that excelleent progress was made on o several keey frontss during the M March 2012 Quarter Q at itss Wa Gold Prroject, northw west Ghana. This included increeases in the quantum of and confidennce in JORC and NI 43-1001 comppliant gold Minneral Resourrces to over 1.0Moz Meassured and Indicated and 0.7Mooz Inferred, sstrong indicattions of the presence p of m mineralisationn between itss two adjacent flagsship depositss and several new targetss being advannced towardss drill sttatus. Reserves are scheeduled to be completed inn the June Q Quarter aheadd of the comppletion of Azuumah’s Feasibility Study for an initial ~~100,000oz per p year goldd operaation schedulled to be com mmissioned inn early 2014 . Azum mah has also installed andd is about to commission an on-site saample prepaaration facilityy that will subbstantially redduce assay tturnaround cyycles that lasst year caused c majoor delays in reesource finalisation, explooration progrress and feasibbility schedul es. Page 1 of 6

Azumah Resources Limited – March Quarter 2012 Operations Report

Resource increase at Wa Gold Project The Mineral Resource update was the culmination of an extensive infill drilling programme in 2011 undertaken to provide greater confidence and understanding of material within and adjacent to planned pits. The new resource provides a strong foundation for the estimation of reserves as part of the Feasibility Study for the Wa Gold Project. The Mineral Resource increase (refer ASX release dated 12th March 2012)(Table 1) was due partly to exploration success during infill drilling that identified additional subsidiary lodes representing genuine new discoveries at all three key deposits, extensions to existing lodes and improved continuity. The increase was also partly due to a reduction in cut-off grade to 0.5g/t Au. The previous cut-off grade was 1.0g/t Au for Kunche and Julie, and 0.8g/t Au for Bepkong. 2012 Resource Expansion Focus Azumah has only effectively explored approximately 10% of its 3,100km² licence holdings that encompass over 150km of prospective Birimian greenstone terrain. The opportunity to increase resources is therefore considerable. With completion of the infill drilling programme in late 2011, the focus of 2012 drilling has shifted almost entirely towards generating, defining and testing new resource targets and extending existing deposits. The Company has committed $20 million to this new exploration focus and presently has five drill rigs in operation, including three multipurpose (diamond and RC) rigs that operate 24 hours a day. These are managed by 18 site geologists supported by over 100 technicians and other personnel operating from a fully serviced exploration headquarters established at Kalsegra plus satellite bases at Julie and Lawra. Results from drilling testing a 1.5km gold-in-soil anomaly along the Aduane trend between the flagship Kunche and Bepkong deposits, that presently host 630,000oz gold (Measured and Indicated) and 395,000oz gold (Inferred), support the likelihood of Azumah delineating additional shallow, open-pitable resources close to the proposed location of the Wa Gold Project processing plant adjacent to Kunche (Refer ASX release dated 28th February 2012). The current interpretation is that these deposits are most likely part of a larger system of interconnected mineralised structures. Intersections reported included:        

3m @ 9.17g/t Au from 27m (BRC321) 10m @ 4.43g/t Au from 140m (BRC315) 4m @ 4.43g/t Au from 43m (BRC317) 8m @ 4.18g/t Au from 40m (BRC329)* 6m @ 2.78g/t Au from 23m (BRC361) 4m @ 10.33g/t Au from 47m (KRC593) 14m @ 2.15g/t Au from 62m (KRC600) 4m @ 9.34g/t Au from 20m (KRC648)* (*4m composited samples)

A new phase of RC and diamond core drilling has commenced to evaluate the continuity of the mineralisation along the main ‘Aduane trend’. A series of deeper holes to ~200m vertical depth at Kunche and Bepkong and to 100m depth at Julie has just been completed. These were aimed at testing depth extensions of each deposit and to better understand the mineralisation geometry of high grade zones. Subject to results, an increase to the recent Mineral Resource update is considered likely. Results are awaited.

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Azumah Resources Limited – March Quarter 2012 Operations Report

The shallow dipping Julie deposit has only been drill tested to an average depth of 55m with many areas of the 6km east-west trending Julie mineralised structure yet to be evaluated. Drilling has commenced to test for extensions of the deposit along strike and down dip. Other targets being advanced for drill testing in the 100km north-south trending “Kunche Corridor” include Basabli, Duri, Atikpi and Yagha (North and South). At Wa East targets at Collette, Kjersti and Josephine are being reviewed. During the Quarter, the company completed 70,437m (1,128 holes) of drilling, including 22,829 m (280 holes) of RC, 4,851 m (20 holes) of diamond/RC core and 42,757 m (828 holes) of air core. A total of 23,481 samples were collected/prepared for assay submission and as at the end of the reporting period, a total of 10,611 assays remained outstanding. Mineral Reserves, Feasibility Study and Project Development Azumah continues to fast track the development of the Wa Gold Project that it is currently scheduling to come on stream in early 2014. During the March Quarter, the Feasibility Study for the development and financing of the Wa Gold Project was advanced in several key areas. Its completion will follow finalisation of the Mineral Reserves and several other inputs. Coffey Mining Pty Ltd, Perth, was appointed to undertake Mineral Reserve estimates based on the new resources model and Mineral Resource update released in March. The estimate of Mineral Reserves is expected to be completed in the June Quarter 2012. Progress was also made in negotiations for the supply and installation of high voltage power lines to the vicinity of the project site. Azumah has also commenced processes for the granting of mining licences and environmental approvals. A number of alternatives for financing the project are being evaluated and preliminary discussions with several groups providing a range of facilities have commenced. Completion of C$20m capital raising Azumah is well positioned to meet its funding commitments with cash and listed investments of $30.2M as at the end of the Quarter. This includes the proceeds from an offering of 50,405,000 ordinary shares at a price per share of C$0.40 to raise a total of C$20,162,000. The offering was conducted in Canada and attracted a number of new North American institutions as well as some prominent North American distribution groups and existing institutional shareholders. Casimir Capital Ltd and RBC Dominion Securities Inc. acted as joint lead managers and Argonaut Securities (Australia) and Canaccord BGF (Australia) as co-managers (Refer ASX release dated 27th March 2012). At the end of the March Quarter Azumah had 333,614,095 ordinary shares on issue, 9,500,000 unlisted options and 2,000,000 performance rights. Increases interest in Castle Minerals Limited Azumah has investments in two listed entities. It holds 19,315,812 shares in Ghana neighbour, Castle Minerals Limited (ASX: CDT), and during the Quarter increased its stake from 14.743% to 16.986% through the acquisition of 2,581,947 shares (refer ASX release dated 2nd March 2012). The additional shares were acquired through an issue of 1,188,739 Azumah shares.

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Azumah Resources Limited – March Quarter 2012 Operations Report

Azumah also has a holding of 2,547,615 shares in Endeavour Mining Corporation (ASX: EVR TSX: EDV). The Endeavour Mining shares are not a long term strategic holding. Change of principal place of business During the March Quarter, Azumah’s principal place of business changed to Unit 2, 11 Ventnor Avenue, West Perth. The company also relocated its Ghana office to 5 Kinshasa Street, East Legon, Accra. June 2012 Quarter During the June Quarter 2012, the Company expects to: -

Complete Maiden Mineral Reserves estimates for the Wa Gold Project

-

Receive results from deeper drilling at Kunche, Bepkong and Julie

-

Complete another phase of infill drilling at the Aduane - Bepkong South geochemical anomaly

-

Advance and test targets at several other prospects

-

Commission its on-site sample preparation facility

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Appoint an engineering group to commence front-end engineering and design work for the Wa Gold Project

-

Progress infrastructure arrangements including power and water supply

Full details of the ASX releases on which the above summary is based (inclusive of associated figures and drilling results) are available from the ASX at www.asx.com.au, on the Sedar website at www.sedar.com, or from Azumah’s website at www.azumahresources.com.au. For further information on Azumah Resources Limited and its projects please visit the Canadian SEDAR website and Azumah’s own website at www.azumahresources.com.au

Stephen Stone Managing Director Tel: +61 (0)418 804 564 [email protected]

Nicole Harrison – Australia NWR Communications +61 (0) 451 184 148 [email protected]

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Joanna Longo – North America Terre Partners +1 416 238 1414 [email protected]

Azumah Resources Limited – March Quarter 2012 Operations Report

Table 1 – Summary of Wa Gold Project Mineral Resources – JORC & NI 43-101 Compliant

Competent Person’s Statement The information in this report that relates to Exploration Results is based on information compiled by Mr Nick Franey, who a full-time employee (General Manager Geology) of Azumah Resources Ltd. Mr Franey is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and to qualify as a “Qualified Person” as defined in National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators. Mr Franey consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. For a description of Azumah’s standard data verification processes, quality assurance and quality control measures, and details of the key assumptions, parameters and methods used to estimate the Mineral Resources set out in this report and the extent to which the estimate of previously declared Mineral Resources set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or relevant issues, readers are directed to the technical report entitled “NI 43-101 Azumah Resources Limited Wa Gold Project, North West Ghana”, dated April 14, 2011. An updated NI43-101 technical report is in preparation. For further information on the Wa Gold Project in general please refer to the Company’s website at www.azumahresources.com.au and sedar.com Forward-Looking Statement This release contains forward looking information. Such forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could”, or “might” occur or to be achieved and any other similar expressions. In providing the forward-looking information in this news release, the Company has made numerous assumptions regarding: (i) the accuracy of exploration results received to date; (ii) anticipated costs and expenses; (iii) that the results of the feasibility study continue to be positive; and (iv) that future exploration results are as anticipated. Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Some of these risks, uncertainties and other factors are described under the heading “Risks Factors” in the Company’s annual information form available on www.sedar.com. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, Azumah does not undertake any obligation to update forward-looking information even if circumstances or management’s estimates or opinions should change. Readers should not place under reliance on forward-looking information and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company’s continuous disclosure filings as found at the (Canadian) SEDAR website.

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Azumah Resources Limited – March Quarter 2012 Operations Report

Figure 1: Wa Gold Project – Key Deposits and Prospects



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