Adriatic Metal. Regulatory News (ADT1)

Rupice Mineral Resource estimate, 21 July 2023

Deposit(s)

Resource Classification

Tonnes (Mt)

Grades

Contained metal

Domains

Ag

Zn

Pb

Au

Cu

Sb

BaSO4

Ag

Zn

Pb

Au

Cu

Sb

BaSO4

g/t

%

%

g/t

%

%

%

Moz

Kt

Kt

Koz

Kt

kt

Kt

Rupice +

RNW

All

Indicated

Inferred

18.3

2.8

168

75

4.6

2.4

2.9

1.6

1.3

0.5

0.4

0.2

0.2

0.1

30

13

98.6

6.8

844

69

535

46

742

47

81

7

36

4

5,426

353

Total

Indicated + Inferred

21.1

156

4.3

2.8

1.2

0.4

0.2

27

105.4

913

581

789

88

39

5,779

Rupice Mineral Resource estimates, 21 July 2023

Deposit(s)

Resource Classification

Tonnes (Mt)

Grades

Contained metal

Domains

Ag

Zn

Pb

Au

Cu

Sb

BaSO4

Ag

Zn

Pb

Au

Cu

Sb

BaSO4

g/t

%

%

g/t

%

%

%

Moz

Kt

Kt

Koz

Kt

kt

Kt

Rupice

All

Indicated

Inferred

Total

11.0

1.7

12.8

169

52

153

4.0

1.1

3.6

2.6

0.8

2.3

1.4

0.3

1.3

0.4

0.2

0.4

0.2

0.1

0.2

27

9

25

60.1

2.9

62.9

443

19

462

285

13

298

503

17

520

46

3

48

25

2

27

3,020

154

3,174

RNW

All

Indicated

Inferred

Total

7.2

1.1

8.3

166

111

159

5.6

4.6

5.4

3.5

3.0

3.4

1.0

0.9

1.0

0.5

0.4

0.5

0.2

0.1

0.2

33

18

31

38.5

3.9

42.5

401

50

452

250

32

283

239

30

269

35

4

39

11

1

13

2,406

199

2,605

Total

Indicated

Inferred

18.3

2.8

168

75

4.6

2.4

2.9

1.6

1.3

0.5

0.4

0.2

0.2

0.1

30

13

98.6

6.8

844

69

535

46

742

47

81

7

36

4

5,426

353

Rupice Mineral Resource estimates, 21 July 2023

Deposit(s)

Resource Classification

Tonnes (Mt)

Grades

Contained metal

Domains

Ag

Zn

Pb

Au

Cu

Sb

BaSO4

Ag

Zn

Pb

Au

Cu

Sb

BaSO4

g/t

%

%

g/t

%

%

%

Moz

Kt

Kt

Koz

Kt

kt

Kt

Rupice

Upper

Indicated

Inferred

Total

0.4

0.2

0.6

55

74

62

1.0

1.3

1.1

1.0

1.0

1.0

0.4

0.3

0.3

0.2

0.2

0.2

0.1

0.2

0.1

6

10

7

0.7

0.6

1.3

4

3

7

4

2

6

5

2

7

1

0.5

1

1

0

1

21

24

46

Rupice

Main

Indicated

Inferred

Total

10.2

1.0

11.2

180

50

168

4.3

1.1

4.0

2.7

0.7

2.6

1.5

0.3

1.4

0.4

0.1

0.4

0.2

0.1

0.2

29

11

28

58.8

1.7

60.5

436

12

448

278

8

286

495

12

506

44

2

46

23

1

25

2,984

112

3,097

Rupice

Lower

Indicated

Inferred

Total

0.5

0.4

0.9

35

44

39

0.7

0.9

0.8

0.5

0.8

0.6

0.2

0.2

0.2

0.1

0.1

0.1

0.1

0.1

0.1

3

4

3

0.6

0.6

1.2

3

4

7

2

3

6

4

3

7

1

0.4

1

1

0

1

14

17

31

RNW

Upper

Indicated

Inferred

Total

1.3

0.2

1.5

75

65

74

1.5

1.0

1.4

0.8

1.4

0.9

0.2

0.2

0.2

0.1

0.2

0.1

0.2

0.1

0.2

13

10

12

3.1

0.5

3.6

19

2

21

11

3

14

9

2

11

1

0.4

2

3

0.3

3

161

23

184

RNW

Main

Indicated

Inferred

Total

4.5

0.4

4.9

214

145

209

7.4

7.9

7.5

4.7

4.9

4.7

1.4

1.5

1.4

0.6

0.5

0.6

0.20.1

0.1

47

36

46

30.8

1.9

32.7

332

33

365

211

20

231

199

20

219

26

2

29

7

0.5

7

2,113

148

2,261

RNW

Lower

Indicated

Inferred

Total

1.5

0.4

1.9

98

105

100

3.4

3.4

3.4

1.9

2.1

2.0

0.7

0.5

0.6

0.5

0.4

0.4

0.1

0.1

0.1

9

6

8

4.7

1.5

6.2

55

15

66

29

9

38

31

8

39

7

1.6

9

2

1

2

2,406

199

2,605

Total

Indicated +

Inferred

21.1

156

4.3

2.8

1.2

0.4

0.2

27

105.4

913

581

789

88

39

5,779

Adriatic Metals PLC

Paul Cronin / Klara Kaczmarek

Via Buchanan

Buchanan

Tel: +44 (0) 20 7466 5000

Bobby Morse / Oonagh Reidy

adriatic@buchanan.uk.com 

RBC Capital Markets (Joint Corporate Broker)

James Agnew / Jamil Miah

Tel: +44 (0) 20 7653 4000

Stifel Nicolaus Europe Limited (Joint Corporate Broker)

Ashton Clanfield / Callum Stewart

Tel: +44 (0) 20 7710 7600

Citadel Magnus

Cameron Gilenko

Tel: +61 2 8234 0100

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Drill core samples were collected from half cut PQ3 and HQ3 diameter core, where the core was sawn exactly in half along a pre-defined cutting line.

The half core samples, typically weighing between 4-12kg, were placed into labelled and tagged sample bags prior to dispatch to the SGS Ankara laboratory in Turkey.

Sample intervals were determined by the geologist, routinely at nominal 1m intervals unless selectively sampled on narrower intervals where geological boundaries exist to a minimum length of 0.2 m. A maximum sample size of 1.2 m is used when sampling to geological contacts.

Portable XRF is used to confirm sulphides and barite quantities in core. pXRF results are used for indicative purposes only and not as final assay.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Sample intervals were selected by the logging geologist based on geological criteria or using a nominal 1m sample length in homogenous massive sulphide ore. A minimum sample length of 0.2 m is employed where necessary. Sampling is based on visually mineralized intervals, with a calibrated portable XRF device used only as a guide. pXRF is calibrated using standards daily when in use.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g., 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

For drill hole analyses, diamond drilling was used to obtain 4 to 12kg samples, crushed, pulverized and split for Fire Assay (30g charge), ICP-AES and ICP-MS, AAS, XRF and 4-acid digest using external laboratories and certified laboratory methods.

Prior to October 2022, samples were dispatched by dedicated road transport to ALS Bor in Serbia for sample prep, splitting and analysis across several ALS labs (Ireland and Romania).

From October 2022 core samples were sent to SGS Ankara, Turkey by truck for sample preparation (SGS Code PRP89), gold analysis by 30-gram fire assay with AA finish (SGS code FAA303), base and precious metal as well as multi-element analyses using a 4-Acid Digest with ICP-AES finish (code ICM40B). AAS was used for over-detection limit analysis of base metals.

Barite was assayed using lithium borate fusion prior to acid dissolution and ICP-MS analysis (SGS code ICP95A). Overlimit Barium (>10%) results were analysed using portable pXRF (SGS code pXRF73C27) and the results above detection limit (50%) sent to SGS Lakefield, Canada by air freight for whole-rock XRF analysis (SGS Code GC_XR76V).

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

All drill holes were drilled using PQ3 and HQ3 diameter core.

All drill holes were drilled by drilling contractor Drillex BH d.o.o., a division of Drillex International.

PQ3 and HQ3 core was held in a core barrel by a stainless steel "split" inner tube. The use of the inner tube ensured that all core maintained its orientation prior to removal into the core trays. Drill core was stored in suitable core boxes and stacked on the premises of the secure exploration facility in Vares.

All drill holes were surveyed at 9 m and every 30 m thereafter by a Reflex "Ezy-Track" digital down-hole survey tool to end of 2022. As of 2023, all holes have been surveyed using the Reflex 'Sprint IQ' and 'Omni' on the fly north seeking non-magnetic gyroscopic tools at 5 m intervals in and 10 m out of holes. No significant deviation or drilling problems have been identified.

Representatives from Reflex have been to drill rigs to calibrate, check and train on correct usage of tools.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

All core was geotechnically logged to verify drillers blocks, record run length, recovered length, core recovery (%) and RQD.

There is no observed relationship between sample recovery and grade, and no significant loss of core. No sample bias has been identified. Core recoveries are generally >90%

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Diamond drill core samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Not all drill holes penetrated the massive sulphide mineralization, but all were used to guide the geological interpretations supporting the Mineral Resource estimates.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

All core is photographed. Core logging is both qualitative and quantitative. Logging records lithology, alteration, structures, veining, sulphide minerals and percentages.

The total length and percentage of the relevant intersections logged.

100% of drill core is logged.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Drill core was cut in half using an Almonte automatic diamond core saw. Nominally 1 in 30 samples were cut in quarters, and both halves analysed (for purposes of field duplicates).

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

Not applicable, as all samples are core.

For all sample types, the nature, quality, and appropriateness of the sample preparation technique.

Collection of around 4-12kg of HQ and PQ half core material with subsequent pulverisation of the total charge provided an appropriate and representative sample for analysis. Generally 4-6kg for HQ core and 6-12kg for PQ.

Prior to October 2022, sample preparation was undertaken at the ALS laboratory in Bor, Serbia to industry best practice.

From October 2022, sample preparation was undertaken at the SGS Laboratory in Ankara, Turkey to industry best practice.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Whole rock blanks and certified standards (~1 in 15) were introduced to the sample stream as a QAQC check on laboratory processes. Industry best practice was adopted by ALS and SGS for laboratory sub-sampling and the avoidance of any cross contamination. ALS + SGS inserted internal controls and cleaned all sampling equipment with a barren quartz rock every 20 samples. All sample preparation stations and equipment were compressed air cleaned after every sample. A QAQC inspection of ALS (Bor) and SGS (Ankara) facilities was completed in October 2022 by Adriatic Metals (S. Smolonogov) with practices found to be in line with industry best practice.

Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

The half-core sampling is considered a reasonable representation of the in-situ material. Nominally 1 in 30 samples were cut in quarters, and both halves analysed (for purposes of field duplicates). All field duplicate, coarse duplicate and pulp duplicates are reviewed and compared. Standards and Blanks are investigated if over 2SD (2 Standard Deviations) from certified mean and re-assay initiated if over 3SD or as required when over 2SD to validate materials either side of poorly performing blanks or standards. QAQC outcomes are checked on assay receipt by Adriatic Metals and before acceptance into the Database. A dedicated Data Geologist with support from consultants gDAT monitor all received QAQC data as it arrives.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Sample size of around 4-12kg is appropriate and found to reasonably represent the material being tested. There is acceptable repeatability of multiple economic elements. 4-6kg for HQ and 6-12kg for PQ.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Prior to October 2022, primary analysis was completed through ALS Laboratories. With Sample preparation as ALS Bor, Serbia with splitting and sending pulps to Loughrea, Ireland and Rosa Montana, Romania.

From October 2022, primary sample preparation and analysis was completed by SGS Laboratory in Ankara, Turkey

All facilities are industry best practice and ISO certified. Multi elements were assayed by an ICP-AES technique following a four-acid digest. Gold was determined using a fire assay on nominal 30g charges. Barite was determined from a lithium meta-borate fusion followed by dissolution and ICP-AES analysis. Total carbon and sulphur were determined by a Leco analyser.

All techniques were appropriate for the elements being determined. Use of a 4-Acid digest is a near-total digestion of all minerals present.

Additional pXRF and whole rock XRF analysis is required to determine accurate concentrations of barium as part of reported assays. Whole rock XRF analysis is completed at Lakefield Canada.

Initiation of a gravimetric finish was initiated at start of Q2 2023. Gold results >3.00 g/t are re-assayed by fire assay with gravimetric finish at SGS Ankara laboratory.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

There was no reliance on determination of analysis by geophysical tools. All analyses as reported and used in any calculations are by ISO certified laboratories, (ALS - Bor, Loughrea, Rosa Montana; SGS Ankara), using calibrated, industry standard and recognized methods, QAQC and equipment.

A Hitachi X-Met 8000 hand-held pXRF analyser is used to rapidly define metal and barite abundance during logging, field mapping and sampling. Results are not used in resource estimates or publicly reported.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Certified Reference Materials ("CRM's"), certified blanks, quarter core replicates were used and considered to be appropriate for the elements being analysed. CRM's, blanks, and replicates were added at a rate better than 1 in 15. All results reported by SGS on the CRMs and blanks were within 3 standard deviations (3SD). Where deviations greater than 2SD where noted, investigations were completed and where necessary samples above and below queried Standards and Blanks were re-assayed. To date returned results are considered to be representative of material sampled. A program of 5% of assay pulps are submitted for Umpire lab re-assay. The program is continuous and ongoing as part of QAQC controls in addition to measures already in place.

ACME Laboratory (Bureau Veritas) in Ankara, Turkey is used as the current independent Umpire Laboratory replicating 5% of pulp duplicate results for QAQC. ACME commenced QAQC work on exploration drilling samples as of 2023. Prior to 2023, the SGS Bor, Serbia assay laboratory has been used as the independent Umpire laboratory for primary samples returned from ALS Bor, Serbia. ALS previously completed primary analysis using multiple facilities with sample preparation at ALS Bor, Serbia; base metals analysis at ALS Loughrea Ireland; gold at ALS Rosa Montana Romania.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

Significant mineralization is reviewed internally by multiple Senior geological staff, the Vares Project Exploration Manager, and Head of Exploration. Significant intercepts are visually verified daily as core is brought in for logging, included in summary logs, and then cross-checked during detailed logging. Tenor and confirmation of mineralization and barite content is checked by portable XRF (Hitachi X-Met 8000).

Mineralized intervals are regularly viewed and verified by geosciences qualified and certified investors and analysts. Recent drill core is presented in fully marked-out core boxes and with full assay data provided for correlation with drilled intercepts.

Independent relogging of select mineralized and non-mineralized drill core has been completed by multiple consultants involved in technical studies including Elizabeth Thompson (Structural Consultant - Transition Elements), Joe Crummy (ARD Consultant - JC Consulting), Joe Burke (Geotechnical Consultant - Avoca Geotechnical) and others.

The use of twinned holes.

Several twinned holes have been completed, with separation between holes reduced to within 15 m.

Several cross-holes have also been drilled from adjacent drill platforms, passing through the trace of previous holes and at near right angle cutting previously intercepted mineralization. Confirming position, grade, and thickness.

In general, holes completed are part of tight 'drill fans' with separation of holes between fans of 25 m to 30 m with respect to targeted ore zones. Separation distances are

In 2023 in areas referred to as the Rupice Northwest Western Zone, and Rupice Northwest Lower Zone, hole spacings have been reduced to nominally

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Data are stored in a Cloud Server with server back-ups at various locations including Vares, Bosnia & Herzegovina and Cheltenham, UK. The data and databases are managed by consultants gDat Data Solutions in an acQuire database. The acQuire database is regularly backed-up. There is a dedicated Data Geologist and a Junior Data Geologist within Exploration managing and ensuring the QAQC of all daily geological inputs and outputs from the database and various software (downhole survey, surface survey, audits, drilling data, logging, sampling, sample dispatch, assaying and assay QAQC). gDat interfaces daily with the site Data Geologists.

Discuss any adjustment to assay data.

No adjustments were necessary.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Sampling sites were surveyed using Total Station to better than 0.05 m accuracy in the local BiH coordinate system.

A Reflex TN4 north seeking, gyroscopic rig alignment tool was used as of 2023 for precision alignment of holes at the collar. The TN14 is mounted on the rod string with preset mast dip and hole azimuth referenced to grid north converted from UTM. Mast and rig are moved till TN14 reads that the rod string is aligned to set dip and direction. The TN14 can also be used in place of the Total Station or as a check of the Total Station collar set-up survey accuracy.

Specification of the grid system used.

The grid system used MGI 1901 / Balkans Zone 6.

Quality and adequacy of topographic control.

The topographic surface of the immediate area was generated from a LiDAR survey to an accuracy of approximately 0.05 m. It is considered sufficiently accurate for the Company's current activities. All drill collars have been compared to the LiDAR surface and physically validated where discrepancies in elevation or position where noted. Validation has been periodically required in mountainous terrain where holes post-date LiDAR and earthworks have been completed to establish drill pads.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Drill hole spacing does not exceed 50 m which is considered acceptable for reporting exploration results. The nominal drill spacing is on 40 m spaced sections. The primary method of drilling is to complete holes from a single drill platform in mountainous terrain. Holes are drilled as part of a 'fan' of holes. Design of holes aims to achieve a nominal 25 m to 30 m separation between mineralized zones to achieve either an Inferred or Indicated level of exploration confidence.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Drill hole spacing is deemed sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource classification to be applied. The data spacing is suitable for a stratabound, continuous style of polymetallic mineralization with minimal structural disturbance or remobilisation.

Where structural complexity is noted (RNW Western and Lower Zones), drill hole spacing is reduced to <20 m.

Whether sample compositing has been applied.

Sample compositing was not applied. Currently reported results are on a nominal 1m spacing unless samples have been character sampled or extended to visual contacts. Minimum sample size is 0.2 m and maximum is 1.2 m unless there has been low sample recovery. 

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

Drill holes have been drilled at dips of between -45 to -90° from surface. The mineralized body is generally shallow dipping to the NE and plunging to the NW at angles of 30 to 40 degrees. Current drilling intersects mineralization at generally a high oblique angle.

New drilling in the RNW Lower Zone has seen mineralization approach subvertical angles. Drilling in these areas has been at right angles to steep mineralization and from 45 to 60 degrees allowing multiple holes to transect steeper mineralization over a vertical elevation spread of holes.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

It is not considered that the drilling orientation has introduced a sampling bias, as the drilling is considered to be orthogonal to the stratabound mineralization, or close to it.

Sample security

The measures taken to ensure sample security.

Chain of Custody of digital data is managed by the Company. Physical material was stored on site and, when necessary, delivered to the assay laboratory. Thereafter laboratory samples were controlled by the nominated laboratory. All sample collection was controlled by digital sample control file(s) and hard-copy ticket books.

Transfer of samples to laboratories is by a dedicated enclosed commercial truck. No other freight is included with shipments. Weigh-bills are used as are multiple customs declarations. Dispatched samples have sample tickets included, are referenced to a pre-dispatch sample submission sheet, and are cross-checked on receipt at laboratory. To date no discrepancies, sample loss or tampering with samples has been recorded.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

Laboratory reviews of SGS Ankara, Turkey; ALS Bor Serbia; SGS Bor, Serbia; ACME (Bureau Veritas) Ankara, Turkey were completed by Sergei Smolonogov (MAIG, RPGEO), Head of Exploration of Adriatic Metals, in October 2022 and SGS + ACME Lab in Ankara in February 2023. There were no material issues found. Items for laboratory improvement were noted but were not considered material to sample QAQC outcomes.

As a result of Adriatic Metals audit, SGS Ankara has renovated and installed vacuum dust extraction enclosed workstations (crushers, pulverisers, splitters) to reduce sample contamination risks in sample preparation. Changes effective as of February 2023.

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The Rupice deposit is located within the Company's 100% owned Concession, No. 04-18-21389-1/13, located 13km west of Vares in Bosnia. There are no known material issues with any third-party other than normal royalties due to the State.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The Concession is in good standing with the governing authority and there is no known impediment to the Concession remaining in force until 2038 (25 years), subject to meeting all necessary reporting requirements.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Modern exploration commenced with the work of Energoinvest in the late 1960s. During 1968-1969 underground development of 455 m of drives and cross cuts were made, and 11 surface trenches dug for a total length of 93.5 m. Between 1980 and 1989, 49 holes were drilled for a total of 5,690.8 m. Sample material from all these programs was routinely analysed for lead, zinc, and barite, and on occasion silver and gold. The deposit was the subject of several reserve estimates in the 1980s. This work is documented in many reports which are certified by those geoscientists and Institutes that undertook the work. The work is considered of a standard equal to that found within today's exploration industry.

Geology

Deposit type, geological setting and style of mineralisation.

The host rocks at Rupice comprise Middle Triassic limestone, dolostone, calcareous and dolomitic marl, and a range of mostly fine-grained siliciclastic rocks including cherty mudstone, mudstone, siltstone, and fine-grained sandstone. The main mineralized horizon is a brecciated dolomitic unit that dips at around 50o to the northeast and has been preferentially mineralized with base, precious and transitional metals. The Triassic and Jurassic sequences have been deformed by early-stage ductile shearing and late-stage brittle faulting.

The Rupice polymetallic mineralization consists of sphalerite, galena, barite and chalcopyrite with gold, silver, tetrahedrite, boulangerite and bournonite, with pyrite. Most of the high-grade mineralization is hosted within a brecciated dolomitic unit, which is interpreted to be cross-cut by northwest striking, westerly dipping syn-post mineral faulting. Thickening of the central portion of the deposit occurs in an area of structural complexity. Mineralized widths of up to 65 m true thickness are seen in the central portion of the deposit.

To date, the massive sulphide mineralization at Rupice has a defined strike length of 650 m, with an average true-width thickness of around 20 m. However, recent drilling northwest of Rupice has intercepted a massive sulphide body referred to as Rupice Northwest (RNW). RNW is not connected to Rupice mineralization. RNW is at a stratigraphically lower level (footwall of Lower GYD unit) than Rupice (hanging-wall of Lower GYD unit) and is interpreted to overlap but not connect with Rupice through the area referred to as the 'Gap'.

RNW currently has a strike extent of approximately 250 m with mineralization remaining open in most directions. The RNW mineralization appears mostly not impacted by deformation at the scale of drilling and compared to Rupice is a continuous tabular stratabound mineralized body. Multiple mineralized intercepts at RNW have true thicknesses of over 40 m along the centre axis of mineralization. Mineralization away from the central NW-SE strike axis tapers away at the margins to

Rupice NW mineralization is strongly associated with barite occurring as a matrix to sulphides. Barite can be up 80% of mineralized zones. Galena, sphalerite, pyrite and chalcopyrite are the most visible and identifiable sulphides during logging. The footwall zone below massive and semi-massive sulphides is pervasively silica-sericite altered with fine disseminated sulphides throughout and crosscut by base metal stringer zones and mineralized faults / shears. This alteration zone can extend 20 m to 30 m below massive and semi-massive sulphides. Overall, the footwall zone appears enriched in zinc.

On the hanging wall of Rupice NW there is a pyrite rich, low barite, high base metal content horizon of mineralization referred to as the Upper Zone. It is approximately 90 m to 100 m vertically above Rupice NW. It appears to be a mineralized zone occurring as matrix within a dolomite breccia. The mineralized Upper Zone marks the transition from Jurassic into mineralized Triassic sediments and generally occurs at the base of a major thrust zone and what is referred to as the Upper GYD unit.

Drill hole information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

· easting and northing of the drill hole collar

· elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

· dip and azimuth of the hole

· downhole length and interception depth

· hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

For the 2023 MRE (Rupice and RNW), a total of 287 diamond drill holes for a total of 76,935 m define the current limits of the known mineralization. Up to mid-2022, the deposit was drilled and sampled using diamond drill holes on a nominal 20 m by 20 m spacing. As of mid-2022 to May 2023, the drill hole spacing was widened to a 40 m x 30 m spacing across RNW reflecting the robust continuity of the stratabound mineralization along and across strike. Drilling defined a combined Rupice and RNW mineralized system having a strike length of >900 m and an across-strike width of >350 m.

The Rupice portion of the 2023 Mineral Resource estimate includes a total of 207 diamond drill holes comprising holes drilled prior to Adriatic Metals (49), and the Company's drilling programs in 2017, 2018, 2019, 2020, 2021, and 2022 for a total of 51,228 m to define the current limits of known Rupice mineralization. The deposit was drilled and sampled using diamond drill holes on a nominal 20 m by 20 m spacing up to the end of 2022. Drilling defined the Rupice deposit to have a strike length of >600 m and an across-strike width of >350 m.

The RNW portion of the 2023 MRE includes a total of 80 diamond drill holes from the Company's drilling programs in 2021, 2022, and 2023 for a total of 25,708 m to define the current limits of the known RNW mineralization. Up to Mid-2022, the deposit was drilled and sampled using diamond drill holes on a nominal spacing of 40 m by 20 m. From mid-2022 to end of May 2023 the drill hole spacing was widened to a 40 m by 30 m spacing. The widening of the drill spacing was in response to the RNW deposit being spatially continuous over its >300 m strike length and having a >260 m across-strike width.

Since the last resource estimation in September 2020, the drilling program added 120 new drill holes and 38,800 m.

No drilling details or assays are presented in this release as all have been publicly reported to date. The last drill hole completed and included in the 2023 July Resource is BR-29A-23.

 Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated.

No data aggregation methods were applied.

Reported Mineral Resource Estimates are calculated by applying a lower cut-off grade of 50 g/t AgEq (see notes below Tables 1 to 3 in body of announcement for assumptions for AgEq calculations).

There is no individual element high-grade capping.

Grade recoveries of 90% and commodity prices as used for the Rupice MRE from September 2020 were applied. Metallurgical test work has been completed on the Rupice deposit and test work is in progress for the RNW deposit.

Given the style of mineralization, mineralogy, and grade of mineralization at RNW is similar to Rupice, the same metallurgical assumptions are applied till results are returned from RNW test work.

A maximum internal dilution of 5 m is allowed within mineralized wireframes. A top-cut was not applied.

Previously reported significant intercepts were reported as weighted averages.

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

Where significant assays have been previously reported, short intervals of significant high-grade are defined where results report as >600 g/t AgEq. This applies down to a minimum 1 m interval. Where there are significant intercepts >5 m, a maximum internal dilution of 5 m can be applied.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Metal equivalent explanations are described in the body of the text.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

Exploration results used in the 2023 July Rupice Resource update have previously been reported. Drill holes have generally intercepted flat to shallow dipping mineralization orthogonally. Drill holes have had dips ranging from 450 to 900.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

The majority of the high-grade Rupice mineralization is hosted within a brecciated dolomitic unit. Thickening of the central portion of the deposit occurs in an area of interpreted local folding and deformation. Mineralized widths up to 65 m true thickness are seen in the central portion of the deposit.

To date, the massive sulphide mineralization at Rupice has a defined strike length of 650 m with an average true-width thickness of around 20 m. However, mineralization at Rupice still remains open along strike to the NW, SE, up-dip, and down-dip.

Recent drilling by Adriatic Metals BH was mostly inclined at between -55o and -67o to the southwest, perpendicular to the deposit strike, and intersected the mineralization at near orthogonal.

Similarly for RNW, drilling at -45 to -90 degrees has intersected mineralization at a high angle to mineralization dipping to the NE and plunging to the NW from 30 to 40 degrees.

If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (e.g. 'downhole length, true width not known').

Only downhole lengths have been reported in previous Exploration releases from 2022 and 2023.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Relevant maps and diagrams are included in the body of the report.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high-grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Not applicable. All mineralized incepts are being reported as part of 2023 July Rupice MRE Update.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

No substantive exploration data not already mentioned in the report has been used in the preparation of the Mineral Resource estimate.

Further work

The nature and scale of planned further work (e.g., tests for lateral extensions or depth extensions or large-scale step-out drilling).

Further drilling will be undertaken in 2023 for mineralization along strike, and up and down dip. dependent on exploration success and funding.

Adriatic Metals has committed to fully defining RNW within its exploration tenement to maintain an updated Rupice MRE with continued growth of RNW included. Drilling will continue on a 40 m section spacing, with mineralization pierce points nominally 30 m between hole intercepts. Fan drilling from a single drill platform per section will be used to intersect the majority of mineralization on sections. Additional drill platforms will be constructed where a single fan cannot fully drill out a section.

Further work on RNW will focus on completing infill drilling to an Indicated level of resource risk, extending mineralization south-westward, south-eastward and once land access is secured, to the northwest beyond the current Rupice Exploitation License.

Drilling at Rupice will also continue to step-out from mineralized areas left open by previous drilling. This is dominantly in the southwestern up-dip direction along the strike extent of Rupice.

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Diagrams have been included in the body of this report. Specific diagrams highlighting areas of future Rupice and RNW growth potential are included in Adriatic Metals Exploration Update Announcements from January, February, April, June, and July 2023.

Database integrity

Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

Data used in the MRE was provided from a validated Micromine database, which in turn was sourced from a validated acQuire database prepared by Adriatic Metals and hosted on the company SQL server. QAQC routines were employed to confirm the validity of data. Data entry was also checked using set procedures e.g., drill hole ID verification, overlapping intervals, overlength of intervals. All files (collar, survey, geology, assay, recovery, geotechnical, density, logging) were validated to ensure they were populated with the correct original data.

Assay data QAQC included checking every field in the data table for agreement between received data and sample submission sheets. Strict control of incoming data formats for compliance with SQL data requirements was in place.

Using the acQuire Data Management system, there is a strict prescriptive workflow process requiring only registered users to be able to enter data in preset formats. All data is validated by the user before being able to be checked in. No non-conforming data passes validation. acQuire restricts the ability to change / modify data by user level / authority. Changes to the database at SQL level is restricted to Database management staff.

All logging data is directly entered into specific logging laptops. All drill hole metadata e.g. collar, downhole survey, orientation, and logging data are stored in the virtual server cloud distributed between servers located in Vares, BiH and Cheltenham, UK.

The Database is managed by the Adriatic Metals dedicated Data Geologist. A position dedicated to Data Management within the Exploration Department. The Data Geologist works with the Adriatic Metals IT department to ensure security and accessibility to server-based data. gDat Data Solutions consultants are retained to assist in managing and maintaining the acQuire database. The Database is updated as new data becomes available. Back-ups are generated daily and kept on BiH and UK cloud servers.

Data validation procedures used.

Data validation starts with the use of templates for logging core to ensure the correct capture of data. There is flexibility to adapt and change the data entry templates. Change can only be made by an authorized level acQuire user.

Data is transferred directly to the SQL server in real-time as being inputted. Data is checked for double entry across columns, logged intervals against final depth, correct EOH depth, correct downhole survey coordinates, correct collar survey coordinates, no overlapping logged or surveyed intervals, no sampling or logging intervals exceed the actual EOH depth.

Incoming assay data is checked for correct format before importing. Checks include usage of acceptable and agreed characters, headers, and columns. Initial imports are in text and csv formats. Checks are made before importing data that there is no risk of overwriting or duplication of sample and assay data. Additional checks are performed to ensure that automatic calculation fields are not corrupted and are correctly translating results e.g., ppm in %, conversion of BaO to BaSO4%.

The database is updated in a streaming format as the work is completed. The method allows for checking of the data transfer process and detection / avoidance of bulk load errors.

The following specific error checks are carried out:

• Missing collar coordinates.

• Missing values in fields FROM and TO.

• Cases when FROM values equal or exceed TO ones (FROM≥TO).

• Data availability. The data availability is checked for each drill hole in the tables to spot

missing: collar coordinates, sampling data, downhole survey data, lithological characteristics.

• Duplicate drill hole numbers in the table of the drill hole collar coordinates.

• Duplicate sampling intervals.

• Duplicate downhole measurement data.

• Duplicate intervals of the lithological column.

• Sample "overlapping" (when the sample TO value exceeds FROM value of the next sample).

• Negative-grade samples.

Drill hole data is always verified against source documentation.

Surveyed drill holes are verified visually for consistency.

Survey data is checked visually for deviations in drilling angles and direction.

The Competent Person is satisfied that database integrity is appropriate to support Mineral Resource estimation.

Site visits

Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

Sergei Smolonogov (RPGeo) is based on-site in Vares and is responsible for planning and implementation of the recent drilling programs, overseeing the preparation of the samples and their dispatch to the various laboratories. Mr. Smolonogov assumes responsibility for the data components, QAQC and geological interpretation. Dmitry Pertel (AMC Consultants Pty Ltd) assumes responsibility for the grade interpolation and reporting of the Mineral Resource estimate and has previously completed a site visit.

If no site visits have been undertaken, indicate why this is the case.

A site visit has been undertaken by Dmitry Pertel in July 2019.

Geological interpretation

Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

Sufficient drilling has been conducted to reasonably interpret the geology and the polymetallic mineralization. The mineralization is traceable between numerous drill holes and drill sections.

Specialists in structural geology (site visit), litho-geochemistry (remote), regional geology (site visit), ARD (site visit) and geotechnical (site visit) have been involved in reviewing and assessing collected data either through site visits or through remote review of digital data, database, assay, and core photos. Check mapping has been completed by specialists and drilled collar locations verified.

Interpretation of the deposit was based on the current understanding of the deposit geology and distribution of mineralization grade domains. Each cross section generally spaced 20-30 m apart was displayed in Micromine software together with drill hole traces color-coded according to grade values. The interpretation honoured the interpretation of the main geological elements. The mineralization for Rupice and RNW was interpreted and modelled using core logging data, and with reference to geological data. Construction of a 3D geological model and a 3D sulphide model in Micromine assisted in both confirming and bringing together the geological information into a coherent and realistic interpretation tied to observed fact from mapping, drill core and assay.

High-Grade and Low-Grade geological cut-off grades for 3D solid modelling were established using classical statistical analysis (table below). All the major economic elements were wireframed independently - Ag, Au, Pb, Zn, Cu, BaSO4.

RNW Deposit

Rupice Deposit

Nature of the data used and of any assumptions made.

Geological logging in conjunction with assays and dynamic 3D modelling has been used to interpret mineralization. Sample lengths of 0.2 m to 1.2 m were allowed to honour discrete coherent geological / mineralization intervals. This assisted in establishing precise geological and grade boundaries.

The average length of sampled intervals within all interpreted mineralized intervals in the final estimation is 1.01m for RNW and 1.5 m for Rupice Main (considering historical data). The Rupice deposit was historically sampled in 2 m intervals, selectively, and generally only where there was visible sulphide mineralization and 10 m above and below the main mineralized zone regardless of visible sulphides. This methodology was updated as of 2022 to nominal 1m sampling of all cores once through the Jurassic cover sequence and into the Triassic mineralization host sequence. The average sample interval for Rupice reflects the historical wider 2 m sampling.

RNW has been sampled in 2022 and 2023 in 1m intervals through the complete mineralized Triassic sequence. As a result, there has been a gain in hanging-wall and footwall mineralization to the main RNW deposit as reported in the 2023 July Resource estimate.

Note: Most of the Jurassic cover sequence over Rupice and RNW has not been sampled as early assayed drilling identified the Jurassic cover sequence as being unmineralized. There are no visible sulphides in the Jurassic cover sequence lithologies.

The effect, if any, of alternative interpretations on Mineral Resource estimation.

Alternative interpretations are likely to materially impact on the MRE on a local, but not global basis.

The 2020 Rupice MRE invoked two major steep faults with major offsets to explain the thicker mineralization at Rupice. Additional drilling, geotechnical assessments, review of core and development of two underground portal declines did not identify the interpreted structures. Review of drilling data (core and core photos) linked with 3D modelling and knowledge of the developing structural architecture controlling mineralization at RNW indicated that mineralization thickening and continuity is more likely influenced by flatter thrust related structures. This has resulted in a more continuous and simplified Rupice mineralization model without major global impact on the resource.

RNW was treated as a separate geological entity. Geology and structure were developed in parallel. RNW was not part of the 2020 Rupice MRE. On the scale of drilling, there is lithological and mineralization continuity not seen at Rupice. No steep structures are defined within the areas included in the current 2023 July Rupice Resource in the areas of RNW. Structures are present and are interpreted to be flat, bedding sub-parallel and reflected as shearing about the mineralization hanging-wall and footwall contacts. It is interpreted that a steep late-stage structure is likely further west of the current resource model. This has not at the time of the 2023 July Rupice resource been substantiated with data available to the resource model.

Folding and low angle structures are considered mechanisms for localizing thicker areas of mineralization, versus steep fault offsets.

The use of geology in guiding and controlling Mineral Resource estimation.

Geological logging, 3D geological model and 3D massive sulphide model in conjunction with assays and results of the statistical analysis have been used to interpret the mineralization. Available historical maps and sections have been used to guide interpretation near surface.

Up to 5 m of internal waste is included into interpreted mineralized bodies of sufficient width to carry proportional amounts of internal waste. Where there is greater than 5 m of internal waste, a separate mineralization solid is created.

There is a high correlation between interpreted logged sulphide mineralization and mineralized zones defined by assay. There is a 98.7% correlation between logged sulphides and returned assays. Variation occurs in areas of low-grade generally on the hanging-wall and footwall of significantly mineralized zones. These are generally areas of strong alteration, disseminated and stringer sulphide occurrence. Accurate estimation of sulphide percent is linked to logger experience. Use of a pXRF has reduced the uncertainty.

The factors affecting continuity both of grade and geology.

Continuity is affected by the nature of the host rocks, interpreted deformation (faults and shears) and drill hole coverage.

As an example, the distribution of significant mineralization is localized either on the hanging-wall or the footwall of a thick hematite altered interbedded chert, sandstone and tuff rich unit logged as the GYD. The GYD itself is unmineralized. There is an Upper and Lower GYD unit. Mineralization rapidly lenses out in the absence of the GYD unit. The GYD is present at both Rupice and RNW.

The Competent Person is satisfied that the geological interpretation is appropriate to support Mineral Resource estimation.

Dimensions

The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

Drilling has defined a combined Rupice and RNW mineralized system having a strike length of >900 m and an across-strike width of >350 m.

The Rupice deposit has a strike length of >600 m and an across-strike width of 300 m to 350 m. The true thickness of mineralization is from a few metres to 65 m. Mineralization is from surface to a depth of 380 m below surface. The mineralization axis strikes to the Northwest and dips 350 to 450 to the Northeast.

RNW deposit being spatially continuous over its >300 m strike length and having a 260 m to 350 m across-strike width. The true thickness of mineralization is from a few metres to 55 m. Mineralization is from 78 m to a depth of 340 m below surface. The mineralization axis strikes to the Northwest and dips 350 to 400 to the Northeast.

The Competent Person is satisfied that the dimensions interpreted are appropriate to support Mineral Resource estimation.

Estimation and modelling techniques

The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

The Mineral Resource estimate was based on surface diamond drill core using ordinary kriging (OK) to form 5x5x5 m blocks. The block model was constrained by wireframes modelled based on geology using sectional interpretation. Additional wireframing for each element for the high-grade domains within these geological wireframes (except for As, S, Sb and Hg) was completed. Sulphur grades were domained at 10% S using grade indicators. The applied cut-off grades for high-grade domains were:

Micromine software was used to generate the wireframes and for block modelling.

Hard boundaries were used between mineralized lenses at each domain. The drill hole data were composited to a target length of 2 m at the Rupice Main zone and of 1m at Rupice Northwest zone based on the length analysis of raw intercepts.

Geostatistical analysis was completed for all elements, and averaged long ranges were employed to justify the search ellipse - 160m along strike, 122m down dip and 33m across dip.

Interpolation parameters were:

Search pass 1: 1/3 of the variogram log ranges (53m by 40m by 11m). Minimum samples number - 3, minimum holes - 2, maximum samples number - 16.

Search pass 2: 2/3 of the variogram log ranges (107m by 80m by 22m). Minimum samples number - 3, minimum holes - 2, maximum samples number - 16.

Search pass 3: Full semi-variogram ranges (160m by 120m by 33m). Minimum samples - 3, maximum samples - 16, minimum holes 2.

Search pass 4: Double the distances for full semi-variogram ranges with minimum samples - 3, maximum samples - 16, minimum holes 2.

Block discretisation 2 x 2 x 2.

The optimal parent cell size was selected during block modelling based of 20x20 m exploration drilling.

Classical statistical analysis was used to identify grade domains for all main modelled elements.

The Competent Person is satisfied that estimation and modelling techniques are appropriate to support Mineral Resource estimation.

The availability of check estimates, previous estimates and/or mine production records and whether the MRE takes appropriate account of such data.

Previous Mineral Resources estimates were reported July 2019 and in September 2020. The July 2023 MRE is approximately 75% higher in tonnage with almost the same global silver equivalent grades relative to the September 2020 MRE. The material change to the MRE has been the addition of the RNW deposit increasing MRE tonnages and grades.

Mining of Rupice from underground had not commenced at the time of the 2023 July MRE.

The assumptions made regarding recovery of by-products.

The Rupice deposit is a silver-gold-zinc-lead-barite deposit. Historical mining and beneficiation over a four-year period have shown that a conventional sulphide flotation method is a suitable recovery method. Metallurgical test work on the Rupice deposit has been completed and included in the Rupice DFS and Reserve. Test work confirms a flotation process is suitable for Rupice ore.

The RNW deposit is considered an analogue of the Rupice deposit in terms of grades, mineralogy, depositional environment, internal waste, host rock and controls on mineralization. Rupice recovery values and metallurgical characteristics are extrapolated to apply to RNW for the 2023 July MRE. A metallurgical test work program has been initiated to confirm RNW metallurgical performance equivalence to Rupice.

Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).

As, Sb, S and Hg have been estimated in the model using their own semi-variogram models and OK interpolation method.

In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

The average exploration drilling spacing was 20x20 m. The selected parent cell size was 5x5 m (quarter the exploration density). The search was based on the results of geostatistical analysis with average for all elements long ranges of 160x122x33m.

Any assumptions behind modelling of selective mining units.

No assumptions were made for selective mining unit, apart from the assumption that the deposit is to be mined by underground method and that 5x5 m parent cell approximately reflects SMU for underground mining.

Any assumptions about correlation between variables.

Correlation matrices were calculated for each zone and the indicators of significant positive or negative correlation (in this case 30%) were highlighted. The Rupice Main zone clearly stands out. The basic modelled elements for Rupice have correlation coefficient ranges from 40 (Ag and Cu) to 93 (Pb and Zn).

There are strong correlations with Sb, Cd and Hg. The Sb correlation varies from 43% to 59%; Cd from 52% to 97% to Zn and 93% to Pb. The correlation of Sb to Cd is 56%. Cd also correlates with As (34%), and Mo (47%). Sb correlates with Hg (42%) and Mo (43%). Hg correlates with Cu (31%) and Ag (51%). As correlates with Zn (35%) and Cu (56%). The correlations suggest the possibility of multiple mineralizing events.

Correlations appear similar for RNW mineralization / elements to Rupice.

Correlation between bulk density and the main elements (BaSO4, Pb, Zn and Cu) was used to calculate bulk density separately for high-grade barite domain and for the material outside of the barite high-grade domain.

Description of how the geological interpretation was used to control the resource estimates.

The geological interpretation of the mineralized zone was based on geological logging of drill core with cross-checking against assay data.

The position of lithological units was considered in the modelling. The geological model was updated faster than the mineralization model allowing the geological model to guide the mineralization model based on visual sulphides and sulphide percent. The mineralization model was then calibrated against received assays.

High-grade domains for each element were modelled individually, except for As, Sb and Hg, which did not demonstrate mixed grade populations within the modelled mineralized zone. Sulphur grades demonstrated mixed population with the boundary of 10%, thus grade indicator approach was selected and used to model sulphur grades.

Discussion of basis for using or not using grade cutting or capping.

Statistical analysis was carried out for each element and each domain. It was found that histograms and probability plots did not demonstrate any apparent mixed populations within the limits of corresponding modelled domains. Top-cuts were identified and applied as shown in the table below:

Main zone:

Northwest zone:

The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

Grade estimation was validated using visual inspection of interpolated block grades versus underlying data, and swath plots.

Swath plots demonstrated reasonable correlation of modelled grades with the sample composites.

The Competent Person is satisfied that estimation and modelling techniques are appropriate to support Mineral Resource estimation.

Moisture

Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

The tonnages were estimated on an in-situ dry bulk density basis which includes natural moisture. Moisture content was not estimated.

Cut-off parameters

The basis of the adopted cut-off grade(s) or quality parameters applied.

The reporting cut-off grade of 50 g/t silver equivalent was supported by estimation of marginal cut-off for underground mining using input economic parameters and criteria.

The Competent Person is satisfied that cut-off parameters were appropriately considered, to support Mineral Resource estimation.

Mining factors or assumptions

Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

A DFS and Reserve estimate was completed in 2021 showing that there are reasonable prospects for the eventual economic extraction of the mineralization. The DFS supported the deposit is to be developed by underground mining method(s). Input parameters were provided by the Company as being typical for the commodity, mining method and costs for a Balkan silver-lead-zinc mining operation.

The Rupice deposit has reasonable prospects for eventual economic extraction as:

• Metallurgical test work by WAI has confirmed that Rupice mineralization is amenable to flotation processes.

• Metallurgical test work has confirmed that a barite concentrate would meet API specifications.

• A marketing study by a leading consultant in the field of barite confirmed that there is an opportunity to enter the market as a niche player leveraging logistical advantages for a supplier in Bosnia & Herzegovina.

• The cut-off grade adopted for reporting (50 g/t Ag equivalent) is considered reasonable given the Mineral Resource will be exploited by underground mining methods and potentially processed using flotation techniques or as a direct shipping product for massive ores.

• The Vares Project DFS study (August 2021) demonstrated that the deposit has a positive post-tax net present value (NPV) of USD 1,062M; a post-tax internal rate of return (IRR) of 134%; a payback period of 0.7 years; and that the mineralized zone is mineable using underground methods under the given economic scenario and parameters.

• The Project has a JORC compliant Reserve (August 2021) not inclusive of new mineralization included in this July 2023 Resource Update.

• The Vares Project is fully funded.

• Concentrate off-take agreements and transport logistics have been negotiated.

• Adriatic Metals has secure long-term tenure across all tenements.

• All permits and licenses from the Bosnian and Herzegovinian Government (Federal, State, Cantonal) are in good standing and as required to mine and produce base and precious metals concentrates.

• Two underground declines and underground development are in progress. First ore has been intersected on 15/07/23 in a planned development drive. The accuracy of the Reserve is confirmed.

• Construction of the Vares Processing Plant is in progress with first concentrate product as of Q4 2023.

Metallurgical factors or assumptions

The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

Several flotation tests were completed on Rupice and Veovača (nearby deposit) bulk samples. Results indicate there is potential to produce Zn, Pb/Cu and barite concentrates via flotation processes, with good recoveries of all constituents.

The test work also indicates that a barite product that meets market specification requirements of purity, specific gravity, and fineness of particle size can be achieved, which meets the requirements of Clause 49 of the JORC Code.

Metallurgical test work on the RNW deposit is in progress with results at time of 2023 July Rupice MRE not available. Rupice metallurgical recoveries are used in the 2023 July Rupice MRE for RNW based on analogous mineralization styles, overlapping mineralization, same mineralogy, equivalent grade ranges, same lithologies, same alteration, similar controls on mineralization. Metallurgical test work on RNW is designed to validate the mineralization being equivalent to Rupice.

A processing plant is under construction and will treat both Rupice and RNW mineralization. Recoveries for Rupice and RNW used in this MRE are as per the 2020 September Rupice MRE to ensure accurate comparison between estimates.

The Competent Person is satisfied that metallurgical factors and assumptions were appropriately considered, to support Mineral Resource estimation.

Environmental factors or assumptions

Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfield project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

The area of the current 2023 July Rupice MRE, including RNW is within a Bosnian and Herzegovinian approved and granted Mining Exploitation License. Underground development is currently in progress.

Environmental and groundwater management plans have been submitted, approved and permitted. Current surface and underground development are proceeding with all Environmental, Social, Governmental, Permitting issues addressed since last MRE update in September 2020.

Bulk density

Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

Bulk densities were determined on drill core every 1 or 2 m in ore and every 5 m in waste. At total of 7,831 determinations for Rupice, and 5,460 determinations for RNW were used to calculate regression formulas using barite, lead zinc and copper grades vs bulk density separately for high-grade and low-grade barite domains, and separately for Rupice Main and Rupice Northwest zones.

The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

Bulk density determinations adopted the weight in air / weight in water method using a suspended or hanging scale. First the core billet was accurately weighed dry ("in air"), the core billet was removed, and the wire cage fully submerged in water and its tare set to "zero" mass. The billet of core was then fully submerged and weighed ("weight in water"). The bulk density is calculated by the formula BD = Md / Md - Mw, where Md = weight in air and Mw = weight in water.

Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

No assumptions were made for Bulk Density.

The Competent Person is satisfied that density was appropriately considered, to support Mineral Resource estimation.

Classification

The basis for the classification of the Mineral Resources into varying confidence categories.

Resource classification was based on confidence in the QAQC data analysis, geological interpretation, drill spacing, geostatistical measures, a visual evaluation of cross sections and drill density, and manual interpretation of resource categories. The interpreted boundaries between categories were wireframed and used to code the block models. Generally, the Indicated category was assigned to the areas with reasonable continuity of mineralized lodes based on 20x20 m and 40x40 m exploration drilling. All other blocks were classified as Inferred. No blocks were classified as Measured

Whether appropriate account has been taken of all relevant factors (i.e., relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

The classification has taken into account all available geological and sampling information as well as the structural information, and the classification level is considered appropriate for the current stage of this project.

Whether the result appropriately reflects the Competent Person's view of the deposit.

The Mineral Resource estimate appropriately reflects the view of the Competent Person.

The Competent Person is satisfied that classification of this Mineral Resource estimate appropriately reflects the data and interpreted geological controls on mineralization.

Audits or reviews

The results of any audits or reviews of MREs.

The current model has not been audited by an independent third-party but has been subject to AMC's internal peer review processes.

Discussion of relative accuracy/ confidence

Where appropriate a statement of the relative accuracy and confidence level in the MRE using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

Industry standard modelling techniques were used, including but not limited to:

· Statistical analysis, cut-offs selection.

· Interpretation and wireframing.

· Top-cutting and interval compositing.

· Geostatistical analysis.

· Block modelling and grade interpolation techniques.

· Model classification, validation and reporting.

The relative accuracy of the estimate is reflected in the classification of the deposit.

The relative accuracy of the Mineral Resource estimate is reflected in the reporting of the Mineral Resource to an Indicated and Inferred classification as per the guidelines of the 2012 JORC Code.

The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

The statement refers to global estimation of tonnes and grade and is suitable for use in reserve conversion studies and further exploration at the deposit.

These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

No production data is available.

The Competent Person is satisfied that classification of this Mineral Resource estimate appropriately reflects the data and interpreted geological controls on mineralization.