Share Structure

Drill Program

Arizona Mining has now completed twenty five (25) surface diamond drill holes targeting the carbonate replacement zinc-lead-silver sulfide mineral resource, now known as the Taylor Deposit. The Taylor Deposit is the down-dip sulfide extension of the Company’s silver-manganese Hermosa Central Manto Oxide Project.

Arizona Mining has significant zinc-lead-silver sulfide mineralization at the Taylor Deposit, with the intercepts from the drilling included in the drill table attached (all intervals reported are down-the-hole drill intervals and not represented as true thickness of the mineralized zones):

•Carbonate Replacement Zone is located down-dip and below the Manto Oxide Zone

•Focuses on zinc, lead, silver and copper potential

•Currently envisioned as an underground mine with froth flotation processing

•Opportunity to expand the resource down dip and along strike to the south, north and west

Management

Richard W. Warke - Chairman

Richard Warke is the Chairman for Arizona Mining. He has been responsible for the founding and success of several resource companies including: Arizona Mining, Augusta Resource Corporation, which was recently sold for $666 million, and the former Ventana Gold Corporation, which was sold in 2011 for $1.533 billion. Alongside Arizona Mining, Mr. Warke currently serves as President, Chief Executive Officer and Director for Catalyst Copper. He has more than 25 years of experience in corporate finance and marketing in the global resource industry, and has been involved in raising over $1 billion dollars in equity for resource companies. Although his endeavours have primarily involved mineral resource operations, he has also been involved with oil and gas, forestry, technology and manufacturing operations.

James Gowans

President & Chief Executive Officer

Mr. Gowans was formerly Co-President of Barrick Gold Corporation from July 2014 to August 2015 and Executive Vice President and Chief Operating Officer from January to July 2014. Recent prior roles include Managing Director of Debswana Diamond Company (Pty) Ltd., President and Chief Executive Officer of De Beers Canada Inc., Chief Operating Officer and Senior Vice President of International Nickel Indonesia tbk PT and Executive Vice President at Placer Dome Inc. Mr. Gowans has more than 30 years of experience in mineral exploration, mine feasibility studies, opening new mines, commissioning mine expansions and in the development of best practices in mine safety, mine operations and economic performance improvement. He is currently a director of Cameco Corp and was recently appointed a director of Gedex Inc., an innovative geophysics systems company, as well as Chairman of the Board of Dominion Diamond Corporation. He previously served as the President of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and as a Director of the Conference Board of Canada. Mr. Gowans is a Professional Engineer and received a bachelor of applied science degree in mineral engineering from the University of British Columbia and attended the Banff School of Advanced Management.

Donald R. Taylor

Chief Operating Officer

Mr. Taylor has more than 25 years of mineral exploration experience with precious and base metals on five continents, taking projects from exploration to mine development. He has worked extensively for large and small cap companies, including BHP Minerals, Bear Creek Mining, American Copper and Nickel, Doe Run Resources, and Westmont Mining Company. Mr. Taylor has a Bachelor of Science degree in Geology from Southeast Missouri State University and a Master of Science degree from University of Missouri at Rolla. He is a Licensed Professional Geologist in several eastern and western states and a qualified person as defined by National Instrument 43-101.

Paul J. Ireland

Chief Financial Officer

Mr. Ireland is a Chartered Accountant with extensive financial experience in the mining and forestry sectors. He is currently Chief Financial Officer for both Arizona Mining. and Catalyst Copper Corporation. Prior to joining Arizona Mining in December 2009, he was CFO and Corporate Secretary for Western Forest Products Inc. where he was responsible for finance, treasury, IT, procurement and public filings. He was also previously VP Finance at Diavik Diamond Mines Inc., a division of Rio Tinto, from 2002 to 2004 during the start-up of the Diavik diamond mine. Mr. Ireland has successfully negotiated significant debt refinancings and raised new equity capital. Mr. Ireland was also the CFO for Ventana Gold Corp. prior to its acquisition.

NEWS
June 04, 2015 – Wildcat Silver Corporation (TSX: WS) (“Wildcat” or the “Company”) announces it has changed its name to AZ Mining Inc. The name change to AZ Mining Inc. reflects both the Company’s focus on its Hermosa property located near Patagonia in southern Arizona and the poly-metallic nature of the mineralization on the two current projects. The Company’s shares will commence trading under the symbol AZ on the Toronto Stock Exchange on Friday June 5, 2015.

Richard Warke, the Company’s Chairman and CEO commented, “The recently released drill results from the first five holes on our Hermosa North West drill program confirm we have the makings of a potentially significant zinc/lead/silver deposit on our hands. As a consequence, we felt this was the right time to re-brand the Company given its current focus on North West and our history and commitment to mineral exploration in Arizona.”

 

November 5, 2015 – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce that Mr. James (Jim) K. Gowans will be appointed as President and Chief Executive Officer and a Director of the Company effective January 1, 2016. The Company also announces a financing by way of a non-brokered private placement and a loan for a total of $2.7 million. 
Mr. Gowans was formerly Co-President of Barrick Gold Corporation from July 2014 to August 2015 and Executive Vice President and Chief Operating Officer from January to July 2014. Recent prior roles include Managing Director of Debswana Diamond Company (Pty) Ltd., President and Chief Executive Officer of De Beers Canada Inc., Chief Operating Officer and Senior Vice President of International Nickel Indonesia tbk PT and Executive Vice President at Placer Dome Inc. Mr. Gowans has more than 30 years of experience in mineral exploration, mine feasibility studies, opening new mines, commissioning mine expansions and in the development of best practices in mine safety, mine operations and economic performance improvement. Mr. Gowans is currently a director of Cameco Corp and was recently appointed a director of Gedex Inc., an innovative geophysics systems company. He previously served as the President of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and as a Director of the Conference Board of Canada. Mr. Gowans is a Professional Engineer and received a bachelor of applied science degree in mineral engineering from the University of British Columbia and attended the Banff School of Advanced Management. 

Following Mr. Gowans appointment, Mr. Warke will become Executive Chairman of the Company.

Richard Warke, Chairman and CEO of the Company, commented, ”We are very excited to have a mining executive of the reputation and calibre of Jim Gowans join our team at this critical time in our exploration program. His commitment to be part of the new Hermosa North West Project further confirms what the results from the seven holes recently drilled already clearly indicate - we have the makings of a significant zinc/lead/silver deposit on our hands. In addition to bringing his management, base metals and project development expertise to the Company, having Jim onboard will also enable Don Taylor, who discovered the Hermosa North West mineralization, to fully focus on and direct the exploration effort as we move the project forward. To that end, Don will continue in his role as Chief Operating Officer and remain a Director of the Company.”

The financing comprises a private placement of 2,000,000 units at a price of $0.35 per unit with each unit consisting of one common share and one common share purchase warrant for total proceeds of $700,000. Each common share purchase warrant is convertible into one common share of the Company at a price of $0.45 for a period of five years from closing. Insiders of the Company will be subscribing for 1,300,000 units of the private placement. In addition, the Company has secured a further loan from its Chairman and CEO for $2,044,000 in addition to the $2.0 million advanced since June, 2015. The new loan will be unsecured, bear interest at 10% compounded monthly and will be repayable on the earlier of the Company completing a private placement of $2,044,000 or more and one year. Proceeds from the financing are expected to be used for general working capital purposes and to further the Hermosa North West Project. Closing of the private placement and the loan are subject to regulatory approval.

In other corporate developments, effective October 26, 2015 the Company expanded its name from AZ Mining Inc. to Arizona Mining Inc.

January 26, 2016 – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce it has closed the acquisition of approximately 300 acres of patented mining claims that was previously announced on July 24, 2015. The addition of the land package, which is adjacent to the Company’s Hermosa Taylor Deposit, will greatly enhance Arizona Mining’s surface lands available for further exploration of the Taylor Deposit and any future mining operations.

As consideration for the acquisition, the Company has assumed the environmental liabilities relating to the site that resulted from historic mining activity. The Company submitted a remediation work plan that addresses the environmental liabilities, which has been approved by the Arizona Department of Environmental Quality. In accordance with the plan, the Company will construct a passive water treatment system estimated to cost US$2.9 million of which the Company’s share is US$1.9 million with the US$1.0 balance contributed by a former owner of the claims. In addition, the Company has posted two bonds totaling US$1.97 million to secure the future operating performance of the passive water treatment system. The Company has posted US$0.86 million with the bond surety company as collateral for the bonds.

In connection with the acquisition, the Company has borrowed $4.0 million from a company controlled by Richard Warke, a Director of the Company and the Company’s Executive Chairman. The loan is unsecured, repayable on the earlier of: one year from the date of advance; the date of any change of control of the Company; or the date the Company completes a financing of $10,000,000 or more by way of sale of securities from treasury or through the issuance of debt or other form of financing. The loan bears interest at 16% per annum, compounded monthly and is subject to a cash fee of 1% with an additional 1% fee payable after three months if the loan remains outstanding. In addition, 1,000,000 warrants have been issued to the lender with each warrant exercisable for an additional common share of the Company at a price of $0.30 per common share for a period of five years from the date of issue.

February 22, 2016 – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce a non-brokered private placement for a total of 6.7 million units at a price of $0.42 per unit for gross proceeds of $2.8 million. Each unit consists of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant is convertible into one common share of the Company at a price of $0.60 for a period of 18 months from closing. 

Proceeds from the financing will be used to initiate an aggressive drill campaign to expand the Taylor Deposit including the 300 acres of newly acquired patented mining claims and targets on the unpatented mining claims and for general working capital purposes. Closing of the private placement is subject to regulatory approval. 

Jim Gowans, Arizona Mining’s President and CEO commented “This funding will enable the Company to immediately begin drilling on its patented mining claims to test the expansion potential of the Taylor Deposit. The unexplored potential strike length to the north-west is over two times that of the existing resource. The next few quarters will undoubtedly be a very exciting time for the Company and our shareholders.”

February 24, 2016 – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce that further to its February 22, 2016 announcement of a $2.8 million private placement, it has commenced its new drill program on the Taylor Deposit. The program will start with approximately 6-8 widely spaced drill holes with the focus on extending the current resource onto the newly acquired Trench patented mining claims which are to the northwest of the existing resource. The Company will also test the extension of the resource to the south. The results from these initial holes will assist in designing the program for future holes.

February 26, 2016 – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce it has entered into a letter of intent with a private company (“Seller”) to acquire the 20% interest in the common shares of Arizona Minerals Inc. (“AMI”) that the Company does not currently own. AMI owns 100% of the Hermosa Project, which includes the Taylor Deposit, in Arizona, USA, subject to a 2% NSR. The Company will issue 40 million common shares and 5 million common share purchase warrants to Seller as consideration for the acquisition. Each share purchase warrant is convertible into one common share of the Company at a price of $0.50 for a period of three years from closing. The common shares to be issued represent approximately 19.8% of the Company’s common shares on a post issuance basis or 21.7% assuming the exercise of the share purchase warrants.

Jim Gowans, Arizona Mining’s President and CEO commented “we are very excited about the prospects for the Taylor Deposit and think increasing our ownership to 100% of the project at this time will serve our shareholders well over the long-run. Owning the project outright should also help with marketing, logistics and financing as we move the project forward.” 

Seller is controlled by Richard W. Warke, a Director and Chairman of the Company. The acquisition is subject to, among other things, execution of a definitive purchase agreement, the approval of the Toronto Stock Exchange and the approval of a majority of the votes cast by the shareholders of the Company, excluding votes cast by Seller and Richard Warke, and their related parties and joint actors. Further information on the proposed acquisition will be provided to shareholders in the Information Circular for the shareholders meeting, which is expected to be held in the second quarter of 2016.
 

March 2, 2016 – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce it has closed 6.07 million units of the previously announced non-brokered private placement at a price of $0.42 per unit for gross proceeds of $2.55 million. The balance of the private placement of 0.65 million units for gross proceeds of $0.27 million was placed with directors and/or officers of the Company and will close following shareholder approval at the Company’s upcoming annual shareholders’ meeting being held on April 22, 2016. Each unit consists of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant is convertible into one common share of the Company at a price of $0.60 for a period of 18 months. 

Proceeds from the financing will be used to begin an aggressive drill campaign, which has already started, to expand the Taylor Deposit including the 300 acres of newly acquired patented mining claims and targets on the unpatented mining claims and for general working capital purposes. 

As required under securities regulations, the securities issued through this transaction are subject to a hold period expiring July 3, 2016.
April 25, 2016 – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce that it has closed on the previously announced financings for a total of $15.6 million. Osisko Gold Royalties Ltd. (“Osisko”) has acquired a 1% net smelter royalty on all sulfide ores of lead and zinc (and any copper, silver or gold recovered from the concentrate from such ores) mined from the Hermosa Project for proceeds of $10.0 million. Osisko has also subscribed for a total of 8.93 million units (each a “Unit”) at a price of $0.56 per Unit, for gross proceeds of $5.00 million and others have subscribed for 1.06 million Units for a further $0.59 million. Each Unit consists of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant is convertible into one common share of the Company at a price of $0.75 for a period of 18 months from closing. 

Proceeds from the financings are being primarily used for an aggressive drill campaign on the Taylor Deposit and for general working capital purposes.