Azimut Further Defines Extensive High-Grade Lithium Pegmatite Field at Wabamisk East, James Bay Region, Quebec

The most recent news release (December 23, 2025) provides a dual-edged update on the Wabamisk East lithium property. Azimut reported visual results from a 5-hole, 615-meter diamond drilling program. Highlights include hole WL25-02, which intersected coarse-grained spodumene pegmatite with estimated spodumene content of 35% to 40% over various intervals. However, the critical component of the release is the announcement that Rio Tinto Exploration Canada Inc. (RTEC) has indicated its intent to terminate the Option to Joint Venture Agreement on the Corvet, Kaanaayaa, and Wabamisk East properties effective December 31, 2025.

The impact of this news is material and negative. While Azimut attempts to highlight the "high-grade" visual nature of the spodumene discovery, the exit of a Tier-1 partner like Rio Tinto is a significant vote of non-confidence in the project's ability to meet the internal economic hurdles of a major mining company. - Loss of Funding: Under the previous agreement, Rio Tinto was committed to spending up to $25 million in Phase 1 to earn 50%. By terminating, Azimut loses a massive capital cushion and must now fund 100% of the "aggressive" drilling programs it previously proposed to Rio. - Operational Shift: Azimut was the operator under the initial phase, but the plan was for Rio to take over operations in Phase 2. Azimut now retains 100% ownership but bears 100% of the risk. - Market Perception: Majors typically do not walk away from Tier-1 discoveries. The termination suggests that despite high-grade surface samples (up to 7.42% Li2O), the scale, continuity, or metallurgical characteristics may not have met Rio Tinto's requirements.

Azimut Exploration is a Quebec-based explorer using big-data analytics to target mineral discoveries. Its portfolio is diversified across Gold, Lithium, Copper, and Nickel. - Flagship Project: Traditionally the Elmer Gold Project (Patwon Zone), which holds an indicated resource of 311,200 oz Au and an inferred resource of 513,900 oz Au. - Emerging Projects: The Wabamisk property has become a major focus due to the Fortin Antimony-Gold discovery and the Wabamisk East Lithium field. - Strategy: Azimut typically uses a "partner-funded" model to minimize dilution, making the Rio Tinto exit a pivot away from its core business strategy for these specific assets.