Azul Ventures Inc.

June 19, 2012 06:30 ET

Azul Negotiates Deferral of the June/July 2012 La Higuera and Caballo Blanco Property Option Payments

TORONTO, ONTARIO--(Marketwire - June 19, 2012) - Azul Ventures Inc. ("Azul", or the "Company") (TSX VENTURE:AZL) is pleased to announce that it has negotiated deferrals to the La Higuera and Caballo Blanco property option payments that were originally scheduled to be paid in June and July 2012. With the exception of a $30,000 payment made on June 15, 2012 and $100,000 to be paid on June 28, 2012, option payments totaling $690,000, originally due between June 15, 2012 and July 22, 2012, have been deferred until December 15, 2012. In exchange, the Company has agreed to increase the amount paid by $46,000. A table outlining the revised payment schedule is provided below. The timing and amount of all other remaining option payments, including the issuance of common shares, remains unchanged.

David O'Connor, President and CEO, said, "The deferral of the option payments by approximately six months were negotiated as a consequence of frustrating delays in receiving analytical results and will give the Company time to optimize funding requirements for ongoing exploration. The results from its recently completed 4,000 metre drill program and underground channel sampling, discussed in our previous two press releases, support management's belief that the main zone of disseminated and stockwork copper (chalcopyrite) mineralization associated with massive magnetite is continuous over a length in excess of one kilometre and down to depths of several hundred metres. These results will be the basis for planning the second phase of exploration on La Higuera property."

Property Original Revised
Date Amount Date Amount
La Higuera
1. San Antonio June 15, 2012 $ 50,000 December 15, 2012 $ 55,000
2. Mina Sol 1-9 June 15, 2012 150,000 June 15, 2012 30,000
December 15, 2012 132,000
3. La Sin Nombre 1-10 June 15, 2012 40,000 December 15, 2012 44,000
4. Hogar et al. June 15, 2012 150,000 December 15, 2012 165,000
5. Avril et al. * July 4, 2012 150,000 June 28, 2012 75,000
January 4, 2013 75,000
6. Benja I and II * July 22, 2012 100,000 December 15, 2012 110,000
Caballo Blanco * July 1, 2012 50,000 June 28, 2012 25,000
January 1, 2013 25,000
Total $ 690,000 $ 736,000
* Property option payment extensions on Avril et al., Benja I and II and Caballo Blanco are still subject to the filing and registration of documentation with regulatory authorities in Chile.

About Azul Ventures Inc.

Azul Ventures Inc. is a mineral exploration company with the rights, through its wholly owned subsidiary Minera Azul Ventures Limitada, to acquire a 100% interest in a prospective copper -iron property in La Higuera, Chile (the "La Higuera Property"). The La Higuera Property, which is located approximately 600 km north of Santiago, was assembled as a result of the first -time consolidation of mining rights in a historical I.O.G.C. mining center and is located in a prolific I.O.C.G. belt surrounded by excellent infrastructure in a mining friendly jurisdiction.

The La Higuera Property covers a historic copper mining district with mining activity dating back to at least the late 18th century; however, there has been no known modern exploration conducted on the property. Since the consolidation of the mining rights in June of 2011, Azul has initiated a rock sampling program, completed geophysical work which has generated intense magnetic and chargeability anomalies coincident with existing copper workings, finalized a 4,088 m drill program, and commenced an underground mapping and sampling program.

Azul also hold the rights to acquire a 100% interest in the Caballo Blanco Property, a prospective copper-iron property located approximately 6 km southwest of the La Higuera Property.

Cautionary Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; market conditions; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the "Risk Factors" section of the Company's Filing Statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Azul undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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