Adriatic Metal. Regulatory News (ADT1)

Adriatic Metals PLC 

('Adriatic Metals' or the 'Company')

KIZEVAK AND SASTAVCI CONTINUE TO DELIVER THICK INTERCEPTS OF MINERALISATION NEAR SURFACE

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KIZEVAK HIGHLIGHTS

KZDD-030 intercepted thick mineralisation down dip from the previously reported KZDD-014, demonstrating excellent continuity as well as elevated gold grade. This thick, high grade lens remains open to depth:

· 38 metres at 2.7 % zinc, 2.2 % lead, 30 g/t silver and 0.6 g/t gold from 100 metres, including

o 5 metres at 6.2 % zinc, 3.3. % lead, 66 g/t silver and 1.1 g/t gold

KZDD-025 discovered a new, well mineralised sub-parallel structure from surface, located >100 m northeast of the main mineralised trend:

· 29 metres at 2.6 % zinc, 1.2 % lead, 15 g/t silver from 2 metres, including

o 15 metres at 4.3 % zinc, 1.9 % lead, 24 g/t silver

Mineralisation in the central-south eastern part of the Kizevak licence has been identified, occurring as an array of sub-parallel, near surface vein zones with some high grade parts in several holes, including:

· 17 metres at 2.1 % zinc, 1.3 % lead, 12 g/t silver from 39 metres (KZDD-037), and

· 17 metres at 2.6 % zinc, 1.1 % lead, 11 g/t silver from 94 metres (KZDD-037), including

o 8 metres at 3.4 % zinc, 1.8 % lead, 19 g/t silver

· 24 metres at 2.0 % zinc, 0.6 % lead, 4 g/t silver from 81 metres (KZDD-024), including

o 2 metres at 11 % zinc, 3.0 % lead, 21 g/t silver

· 26 metres at 1.5 % zinc, 0.9 % lead, 10 g/t silver from 127 metres (KZDD-031)

SASTAVCI HIGHLIGHTS

Wide, high grade polymetallic mineralisation has been proven at surface in the base of the historic open-pit at Sastavci in two additional holes.Thicker zones of mineralisation than historically reported have been encountered, and is open in all directions:

· 27.7 metres 3.1 % zinc, 1.3 % lead, 22 g/t silver, 0.5 g/t gold from 13 metres (SSDD-003), including

o 12 metres at 5.3 % zinc, 2.6 % lead, 43 g/t silver, 1.0 g/t gold

· 45 metres at 3.3 % zinc, 1.0 % lead, 17 g/t silver, 0.2 g/t gold from 17 metres (SSDD-004), including

o 18 metres at 5.5 % zinc, 1.9 % lead, 30 g/t silver, 0.3 g/t gold

Adriatic Metals PLC (ASX:ADT, LSE:ADT1) is pleased to report on progress from the Raska District (Figure 1). Assay results have been returned for 16 diamond core holes at Kizevak and 3 holes from Sastavci (Tables 1 to 3). Drilling at Kizevak has confirmed the down dip continuity of a high grade lens in the central-northwest part of the deposit, beneath the limit of historic drilling, and mineralisation remains open (Figures 2 to 3). Confirmation drilling at Sastavci has continued to deliver excellent intercepts of wide, high grade mineralisation from surface at the base of the historic open pit (Figures 3 to 4).

Paul Cronin, Adriatic's Managing Director and CEO, commented "Kizevak continues to grow with multiple exploration targets and near surface resource potential. The elevated gold at depth is an encouraging sign and shows there is still a lot to learn about this deposit. In addition, Sastavci has demonstrated excellent polymetallic grades from surface in a much wider zone of mineralisation than historically reported. This first phase of confirmation drilling at Sastavci has given us the confidence to explore the full extents of this well mineralised system in the coming months".

KIZEVAK DRILLING RESULTS

KZDD-030 (38 metres at 2.7 % zinc, 2.2 % lead, 30 g/t silver and 0.6 g/t gold from 100 metres) intercepted mineralisation 50 metres down dip of previously reported KZDD-014 (33 metres at 2.1 % Zinc, 3.1 % lead, 45 g/t silver and 0.2 g/t gold from 80 metres) and demonstrates excellent grade-thickness continuity. Drilling in this central-north western part of the deposit, located to the southeast of the historic open pit, is defining a thick, continuous and consistently mineralised lens from surface to at least 160 metres down dip (100 metres below surface) and remains open. Drilling in late 2020 has focused on extensions of this lens and assay results of these holes are pending.

The recent assay results also confirm an interesting area of near surface mineralisation has been discovered in the central southeast part of the deposit which represents an important future exploration target. This includes the significant intercept in KZDD-025 within a sub-parallel structure that lies >100 metres northeast of the historically defined deposit which remains open along strike and down dip.

Several other lower grade veins over broad intervals have been intercepted in this central-south eastern part of the licence area, indicating that the mineralised structure can be traced over the full 1200 metres strike length of the deposit including in the central parts where little or no historic drilling is known. Due to the pinch and swell nature of mineralisation, the continuous presence of mineralisation in thick intercepts over the entire strike length of the structure is encouraging, with the potential for discovery of additional high-grade and/or sub-parallel lenses.

Sastavci DRILLING RESULTS

Adriatic has now drilled five holes at Sastavci, with results for the final hole still pending. Results from SSDD-003 and SDD-004 have confirmed the presence and location of mineralisation at the base of the historic open pit, and has also shown that the mineralisation is hosted in much broader zones than historically reported. Mineralisation is of a similar style to Kizevak, composed of high grade carbonate-quartz-sphalerite-galena veins with a hanging wall of sheeted and stockwork veinlets and crackle breccia forming broad, low to moderate grade halos. Mineralisation is present from surface and remains open in all directions. Gold mineralisation has been discovered in pyrite-arsenopyrite veins and occurs separately to the lead-zinc-silver mineralisation.

Figure 1: Plan view map of the Raska District showing permits, Kizevak and Sastavci past-producing mines (To view all images, please click link at top of release)

Figure 2: Plan view map of the Kizevak project showing historic and Adriatic exploration drilling and adits, including highlighted results from recent drilling. The inactive Kizevak open pit is visible to the northwest, and mineralisation extending to the southeast and northwest is entirely open for expansion through further drilling. (To view all images, please click link at top of release)

Figure 3: Cross-section (A'-A) through the Kizevak deposit (KZDD-030). (To view all images, please click link at top of release)

Figure 4: Plan view map of the Sastavci project showing historic and Tethyan exploration drilling and adits, including highlighted results from recent drilling and the northern gold in soil anomaly. (To view all images, please click link at top of release)

Figure 5: Cross-section (B'-B) through the Sastavci deposit (SSDD-004). (To view all images, please click link at top of release)

Authorised by, and for further information please contact: Paul CroniManaging Director & CEOinfo@adriaticmetals.com

-ends-

MARKET ABUSE REGULATION DISCLOSURE

The information contained within this announcement is deemed by the Company (LEI: 549300OHAH2GL1DP0L61) to constitute inside ‎information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. The person ‎responsible for arranging and authorising the release of this announcement on behalf of the Company is Paul Cronin, Managing Director and CEO.

For further information please visit www.adriaticmetals.com, @AdriaticMetals on Twitter, or contact:

COMPETENT PERSONS REPORT

The information in this report which relates to Exploration Results is based on information compiled by Mr Phillip Fox, who is a member of the Australian Institute of Geoscientists (AIG). Mr Fox is a consultant to Adriatic Metals PLC, and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Fox consents to the inclusion in this report of the matters based on that information in the form and context in which it appears.

ABOUT ADRIATIC METALS

Adriatic Metals Plc (ASX:ADT, LSE:ADT1) is a precious and base metals explorer and developer that owns the world-class Vares Silver Project in Bosnia & Herzegovina and holds licences across the Raska District in Serbia.

The Vares project's captivating economics and impressive resource inventory have attracted Adriatic's highly experienced team, which is expediting exploration efforts to expand the current JORC resource. Results of a recent pre-feasibility study announced on 15 October 2020 indicate a post-tax NPV8% of US$1,040 million and IRR of 113%. Leveraging its first-mover advantage, Adriatic is rapidly advancing the project into the development phase and through to production with significant cornerstone investment of US$28 million from Queen's Road Capital Investment and EBRD.

There have been no material changes to the assumptions underpinning the forecast financial information derived from the production target in the 15 October 2020 announcement and these assumptions continue to apply. There have been no material changes to the assumptions and technical parameters on the updated Mineral Resource Estimate announced on 1 September 2020 and these assumptions continue to apply.

Adriatic Metals acquired TSX-listed Tethyan Resource Corp in 2020, to advance the former Kizevak and Sastavci polymetallic mines in the Raska District, southern Serbia.

DISCLAIMER

Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)", "potential(s)"and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company's prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

APPENDIX 1- ASSAY TABLES

Table 1- Significant intercepts for reported drill holes

Table 2 - Collar information for reported drill holes

Table 3 - Assay data for reported drill holes