Adriatic Metal. Regulatory News (ADT1)

15 June 2023

Adriatic Metals PLC 

("Adriatic Metals" or the "Company")

EXPLORATION UPDATE

RUPICE NORTHWEST DEPOSIT

 EXTENSION, INFILL & LOWER ZONE DRILLING SUCCESS, CONNECTION TO RUPICE DEPOSIT RESOLVED

HIGHLIGHTS

· Q1 & Q2 exploration objectives for Adriatic Metals' Rupice Northwest ('RNW') deposit were met and exceeded with:

⁃ extension of mineralisation westward;

⁃ extension of mineralisation to the south-west towards Rupice;

⁃ definition of the high-grade RNW 'Lower Zone'; and

⁃ resolving RNW to be a separate but overlapping mineralised body.

· The RNW 'Lower Zone' continued to be confirmed as a copper gold rich body with high grade lead, zinc, silver and antimony and reduced barium.

· New significant assays from the RNW Lower Zone continued to be reported through the period e.g., 9.30m @ 2,624.8 g/t AgEq or 84.40% ZnEq including 816.6g/t Ag, 28.90% Zn, 14.96% Pb, 6.85g/t Au, 2.66% Cu, 7.3% BaSO4, 0.62% Sb in hole BR-22-23.

· Elevation in copper and gold in the western extent of RNW was also noted as on par with the RNW Lower Zone e.g., 13.00m @ 3,064.3g/t AgEq or 98.53% ZnEq including 989.2 g/t Ag, 29.18% Zn, 22.19% Pb, 6.36 g/t Au, 4.25% Cu, 2.1% BaSO4, 1.21% Sb in hole BR-22-23.

· Drilling in the GAP between the Rupice and RNW deposits supports the mineralised bodies as overlapping rather than connecting, presenting opportunities in mine development.

· The RNW mineralisation extension into the GAP has returned high grades from narrow metal rich zones e.g., 8.30m @ 1,446.3g/t AgEq or 45.50% ZnEq including 303.3g/t Ag, 19.00% Zn, 7.94% Pb, 2.46 g/t Au, 3.05% Cu, 22.0% BaSO4, 0.37% Sb in hole BR-19-23.

· Infill drilling in Q2 demonstrated continuity in high grades and mineralisation thickness between previously drilled holes, de-risking RNW to an Indicated resource level of confidence.

· Sufficient high quality representative drilling results have been returned to proceed to an updated Rupice Mineral Resource Estimate ('MRE') in July 2023.

· As at end of June, Rupice, RNW and RNW Lower Zone remain open to resource expansion highlighting the outstanding and extensive nature of the polymetallic mineralised system and region.

· A 4th diamond drill rig commenced drilling at Rupice West in June to advance an aggressive regional exploration program for new precious and base metals deposits.

Paul Cronin, Adriatic's Managing Director and CEO, commented:

"Exploration in Q1 and Q2 2023 positioned Adriatic Metals for a major Rupice mineral resource update in July 2023.

Drilling has demonstrated narrower but higher-grade zones of mineralisation and added quality base and precious metals rich tonnes peripheral to the thick centre of RNW. Extension drilling to the west and southwest of RNW saw strong increases in copper and gold grades as mineralisation narrowed, while retaining outstanding lead, zinc and silver grades.

The expansion of the narrow but extremely high grade continuous RNW Lower Zone has added further value and opportunity to an already rich RNW mineralised system.

By drilling at Rupice and RNW it is now clear that the mineralisations overlap each other at their peripheries. Therefore, there is an opportunity to develop both deposits simultaneously, with minimal additional development capital.

Capping-off the resource extensions was the successful infill drilling between the 2022 RNW holes. Excellent consistency of widths, equivalent high grades, mineralisation continuity on section and along strike gives us confidence that the majority of drilled mineralisation will have an Indicated resource level of confidence. This will support a further significant expansion of reserves which are to be determined in parallel to an updated mine plan incorporating RNW.

The Q3 drilling schedule will turn attention back to the main Rupice orebody with a focus on growing the Rupice resource beyond the current reserve, both up-dip and down-dip, using the knowledge gained from RNW. Exploration will also be in full swing with drill testing of Rupice West, Semizova Ponikva and Droskovac prospects. Drilling has started with a regional exploration dedicated 4th diamond drill rig."

Presented below are select significant assay results from 8 of 17 RNW exploration drill holes completed since the last public announcement. Three drill holes (BR-10-23, BR-21-23 and BR-24-23) closed-off mineralisation and did not contain significant results. Three drill holes (BR-17-23, BR-25-23, BR-26-23) were abandoned and redrilled due to ground conditions and hole deviation. The current presented assay results are in addition to previous results announced for RNW on 20 April 2023. Details of all 20 holes are appended.

Drillhole Highlights

RNW Extension (New Mineralisation)

Drillhole BR-22-23 is located 155.0m northwest of the Rupice Mineral Resource ('RMR') and drilled up-dip of the previously reported hole BR-07-22 (7.00m at 1,357.0 g/t AgEq, 43.60% ZnEq). Drilling intercepted:

· BR-22-23 (NW Main Zone) - 36.80m at 1,890.1g/t AgEq, 60.77% ZnEq (619.5g/t Ag, 18.38% Zn, 12.62% Pb, 3.73g/t Au, 2.85% Cu, 5.3% BaSO4, 0.68% Sb) from 206.60m -

o including 9.30m at 2,522.3g/t AgEq, 81.10% ZnEq (842.6g/t Ag, 25.67% Zn, 15.44% Pb, 4.67g/t Au, 4.01% Cu, 11.7% BaSO4, 0.69% Sb) from 245.90m;

o including 13.00m at 3,064.3g/t AgEq, 98.53% ZnEq (989.2g/t Ag, 29.18% Zn, 22.19% Pb, 6.36g/t Au, 4.25% Cu, 2.1% BaSO4, 1.21% Sb) from 230.40m.

Drillhole BR-27-23 is located 115.0m northwest of the RMR and drilled up-dip of previously reported hole BR-09-22 (11.80m at 1,212g/t AgEq, 39.00% ZnEq). The drill hole intercepted:

· BR-27-23 (NW Upper Zone) - 3.00m at 359.0g/t AgEq, 11.54% ZnEq (103.9g/t Ag, 0.72% Zn, 1.67% Pb, 0.55g/t Au, 0.53% Cu, 46.4% BaSO4, 0.70% Sb) from 114.90m.

· BR-27-23 (NW Main Zone) - 15.80m at 1,486.3g/t AgEq, 47.79% ZnEq (505.1g/t Ag, 13.71% Zn, 8.60% Pb, 3.86g/t Au, 1.63% Cu, 14.8% BaSO4, 0.44% Sb) from 203.80m -

o including 6.30m at 2,734.0g/t AgEq, 87.91% ZnEq (1074.9g/t Ag, 20.53% Zn, 12.42% Pb, 8.30g/t Au, 2.93% Cu, 22.4% BaSO4, 0.88% Sb) from 204.70m;

o including 3.70m at 1,160.0g/t AgEq, 37.30% ZnEq (184.3g/t Ag, 19.75% Zn, 11.03% Pb, 1.27g/t Au, 1.04% Cu, 7.3% BaSO4, 0.18% Sb) from 212.10m.

RNW Lower Zone (New mineralisation)

Drillhole BR-19-23 is located within the GAP area, 55.0m northwest of the RMR and drilled up-dip of the previously reported hole BR-04-23 (2.90m at 1,429.5g/t AgEq, 45.96% ZnEq). Drilling intercepted:

· BR-19-23 (NW Lower Zone) - 8.30m at 1,446.3g/t AgEq, 45.50% ZnEq (303.3g/t Ag, 19.00% Zn, 7.94% Pb, 2.46g/t Au, 3.05% Cu, 22.0% BaSO4, 0.37% Sb) from 238.50m -

o including 5.60m at 1,813.7g/t AgEq, 58.32% ZnEq (353.5g/t Ag, 25.43% Zn, 10.02% Pb, 2.94g/t Au, 3.97% Cu, 20.8% BaSO4, 0.31% Sb) from 240.60m.

Drillhole BR-22-23 is located 155.0m northwest of the RMR and drilled up-dip of the previously reported hole BR-07-22 (7.00m at 1,357.0g/t AgEq, 43.60% ZnEq). Drilling intercepted:

· BR-22-23 (NW Lower Zone) - 9.30m at 2,624.8g/t AgEq, 84.40% ZnEq (816.6g/t Ag, 28.90% Zn, 14.96% Pb, 6.85g/t Au, 2.66% Cu, 7.3% BaSO4, 0.62% Sb) from 261.20m.

Drillhole BR-09-23 is located within the GAP area, 37.0m northwest of the RMR and drilled down-dip of the currently reported hole BR-19-23 (8.30m at 1,446.3 g/t AgEq, 45.50% ZnEq). Drilling intercepted:

· BR-09-23 (NW Lower Zone) - 16.60m at 327.1g/t AgEq, 10.52% ZnEq (59.9g/t Ag, 4.52% Zn, 2.04% Pb, 0.92g/t Au, 0.38% Cu,

RNW Infill (Resource Definition)

Drillhole BR-26A-23 is located 155.00m northwest of the RMR. Drilling infilled between previously reported drill holes BR-07-22 (7.00m at 1,357.0g/t AgEq, 43.60% ZnEq) and BR-06-22 (18.00m at 968.0g/t AgEq, 31.10% ZnEq). Drilling intercepted:

· BR-26A-23 (NW Upper Zone) - 8.20m at 496.7g/t AgEq, 15.97% ZnEq (165.8g/t Ag, 2.33% Zn, 1.97% Pb, 0.82g/t Au, 0.40% Cu, 35.6% BaSO4, 1.22% Sb) from 141.00m;

· BR-26A-23 (NW Main Zone) - 14.10m at 1,415.6g/t AgEq, 45.51% ZnEq (434.7g/t Ag, 18.26% Zn, 9.20% Pb, 2.22g/t Au, 0.99% Cu, 37.0% BaSO4, 0.7% Sb) from 231.70m -

o including 13.10m at 1,496.1g/t AgEq, 48.10% ZnEq (463.4g/t Ag, 19.39% Zn, 9.65% Pb, 2.35g/t Au, 0.98% Cu, 39.7% BaSO4, 0.116% Sb) from 231.70m.

Drillhole BR-11-23 is located 80.00m northwest of the RMR. Drilling infilled between previously reported drill holes BR-12-22 (12.30m at 797g/t AgEq, 25.6% ZnEq) and BR-15-22 (21.60m at 838.0 g/t AgEq, 26.90% ZnEq). Drilling intercepted:

· BR-11-23 (NW Main Zone) - 12.75m at 1,183.4 g/t AgEq, 38.05% ZnEq (416.7g/t Ag, 10.35% Zn, 5.61% Pb, 3.13g/t Au, 0.70% Cu, 62.7% BaSO4, 0.13% Sb) from 209.95m -

o including 9.10m at 1,369.8g/t AgEq, 44.04 ZnEq (455.9g/t Ag, 13.02% Zn, 6.71% Pb, 3.76g/t Au, 0.91% Cu, 56.6% BaSO4, 0.16% Sb) from 213.60m.

Drillhole BR-23-23 is located 155.00m northwest of the RMR. Drilling infilled the area between previously reported drill holes BR-06-22 (18.00m at 968.0g/t AgEq, 31.10% ZnEq) and BR-04-22 (32.50m at 657g/t AgEq, 21.1% ZnEq). Drilling intercepted:

· BR-23-23 (NW Main Zone) - 26.95m at 625.5g/t AgEq, 20.11% ZnEq (95.0g/t Ag, 8.63% Zn, 4.73% Pb, 0.76g/t Au, 0.26% Cu, 67.9% BaSO4, 0.05% Sb) from 235.05m -

o including 4.00m at 954.5g/t AgEq, 30.69 ZnEq (100.8g/t Ag, 16.23% Zn, 9.32% Pb, 0.74g/t Au, 0.67% Cu, 50.7% BaSO4, 0.17% Sb) from 256.80m.

RUPICE NORTHWEST EXPLORATION results

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) ("Adriatic" or the "Company") is pleased to report on recent exploration results at the Company's flagship Vares Silver Project in Bosnia & Herzegovina.

As previously announced on the 20 April 2023, exploration drilling intersected high-grade mineralisation in drill holes BR-33-22, BR-01A-23, BR-03A-23, BR04-23, BR-05-23, BR-06-23, BR-07-23 and BR-08-23 across RNW. Subsequently, the Company has focused exploration activities across six (6) drill sections with continued further extension, closing-off and infilling of the RNW deposit. Results from new drill holes BR-09-23, BR-10-23, BR-11-23, BR-12-23, BR-13-23, BR-14-23, BR-15-23, BR-16-23, BR-18-23, BR-19-23, BR-20-23, BR-22-23, BR-23-23, BR-24-23, BR-25-23, BR-26A-23 and BR-27-23 are detailed. Holes BR-17-23, BR-25-23 and BR-26-23 are listed as abandoned and not having significant mineralisation.

Section NW4760 (RNW - Rupice GAP Zone)

Three (3) strike extension holes (step-outs) were completed on the southernmost section of RNW drilling. Of the three holes, the westernmost second hole BR-21-23 intersected massive sulphides correlating to RNW mineralisation. There was no significant economic mineralisation in the hole, with the greatest value being an indicator that the RNW system will develop westward of this position. Holes BR-20-23 and BR-24-23 were unsuccessful in defining mineralisation as where east of favourable RNW lithologies. Drilling will return to this section in Q3 as the north-eastern extension of the Rupice orebody is anticipated further east on this section and RNW is expected further to the west.

Section NW4800 (RNW - Rupice GAP Zone)

Four (4) strike extension holes (step-outs) were completed on the first of the GAP sections to be drilled. Holes BR-09-23, BR-12-23, BR-15-23 and BR-19-23 stepped-out from previously reported holes BR-04-23 and BR-06-23. Holes BR-09-23 and BR-19-23 successfully extended RNW mineralisation previously reported in hole BR-04-23 westward. The new holes also intersected below RNW what correlates to be the southernmost occurrence of RNW Lower Zone and RNW Upper Zone mineralisation. Holes BR-12-23 and BR-15-23 to the east of BR-06-23 did not intersect RNW, instead passed through mineralisation correlated as an extension of Rupice mineralisation above the stratigraphic position of RNW. Drilling will continue on this section in Q3 2023.

Section NW4840 (RNW)

Two (2) drill holes were completed on this key section since last announcement. BR-11-23 infilled a 50m gap between BR-15-22 and BR-18-22 for Indicated resource conversion, and hole BR-16-23 continued the process of stepping-out westward to extend mineralisation. Both were successful. Drilling continues on this section extending RNW westward and testing for RNW Lower Zone at depth in Q3.

Section NW4880 (RNW)

BR-27-23 stepped-out >60m westward from the most western RNW mineralised intercept on this section ni hole BR-09-22. The hole was successful in extending RNW, striking RNW Lower and Upper Zones in the same hole on section. Drilling currently continues on this section to extend mineralisation westward and to infill between previously drilled holes to an Indicated resource level of confidence.

Section NW4920 (RNW)

Five (5) holes were completed on this section since last exploration announcement. Holes BR-18-23, BR-23-23 and BR-26A-23 were successful infill holes confirming mineralisation continuity and high grade between previously drilled, widely spaced holes to an Indicated resource level of confidence. Holes BR-14-23 and BR-22-23 extended mineralisation westward by >80m. The two step-out holes defined increasing Cu and Au grades westward in line with other sections. Hole BR-22-23 reported spectacular grades from RNW and the RNW Lower Zone across Pb, Zn, Ag, Au and Cu. Drilling will continue on this section in Q3 to infill drill wide spaced drilling gaps and to better understand the distribution of RNW Lower Zone mineralisation.

Section NW4960 (RNW)

Two (2) step-out holes were completed on this section since last announcement. Hole BR-10-23 closed-off RNW mineralisation to the west, whereas hole BR-13-23 was successful in extending the RNW Upper Zone of mineralisation. BR-13-23 was not designed to test the main body of RNW mineralisation as this was closed out in previously reported hole BR-01A-23. Drilling will continue in Q3 to infill drill three remaining wide spaced mineralization gaps for conversion from an Inferred to Indicated level of mineralization confidence. Mineralisation on this section is >300m in width from southwest to northeast, varying in thickness from 3m to >40m.

Figure 1: Plan view map of Rupice and location of drill collars from recent drilling activity.

Note 1:  Sections A-A', B-B' , C-C', D-D', E-E' and F-F' offset to southeast of section lines to not obscure drill holes traces.

Note 2: BaSO4 results capped at 84.94% on holes returning and waiting return of high range results.

2023 Exploration Works

Adriatic continued exploration activities to extend and infill the RNW base and precious metals deposit. The deposit is progressively being infill drilled to a nominal 40m x 30m drill spacing and extended westward on sections, as well as southwards onto new sections in increments of 40m. Diamond drill holes are drilled in fans to achieve a 25m to 30m separation between mineralisation intersections on the drill lines (sections). Where there is apparent structural influence on mineralisation, drill spacings have decreased to 20m spacings on sections locally to allow for better definition of mineralisation distribution e.g., RNW Lower Zone.

Exploration drilling using three diamond drill rigs will continue to concentrate on the western and southwestern extents of RNW in June and July. The 2023 accessible extents of RNW have been defined with remaining drilling focussing on closing drilling gaps and infill drilling the mineralisation to an Indicated resource level of confidence. Drilling of RNW has taken longer and more metres than planned due to the unexpected western extension of mineralisation; definition of the RNW Lower Zone; and additional drilling to resolve the distribution of mineralisation within the Rupice - RNW Gap.

The focus of drilling shifts to Rupice in July with a staged redeployment of three surface drill rigs to start the Rupice Up-Dip step-out (extension) drilling program. The aim of drilling in Q3 and Q4 is to infill Rupice drilling gaps to increase resources and reserves, provide data for optimised mine planning and to complete the definition of the Rupice orebody while access to surface drilling platforms remains.

Results from drilling provided in this announcement contributed to the resolution of the relationship between the Rupice and RNW bodies of mineralisation. Drilling in the Gap on Sections NW4800 and NW4760 showed the extension of RNW to the southwest away from the trend of Rupice. An unmineralised strongly altered dolomitic lithology appears to separate the Rupice mineralised body from RNW mineralisation. The mineralised bodies overlap each other with RNW pinching out from NW to SE and Rupice pinching out from SE to NW.

Outcomes from RNW 2022 and 2023 drilling to end of May and Rupice 2022 drilling to end of December will be included in a combined Rupice and RNW MRE in July 2023. Interpretation, modelling and QAQC are well advanced. AMC Consultants have been engaged to complete and sign-off on the 2023 July Rupice Resource block model and estimate.

A fourth diamond drill rig commenced drilling in June. The fourth rigs' focus is regional exploration. Drilling in June commenced over the Rupice West prospect 1.5km west of Rupice. The drill hole is targeting a soil and coincident ground gravity anomaly. Regional exploration drilling will advance onto the Semizova Ponikva prospect following completion of holes at Rupice West.

A ground gravity survey was completed across the Droskovac prospect in Q2. Results will be processed in Q3 and results incorporated into the planning of the 2023 Droskovac development drilling program. An exciting program targeting known Pb-Zn mineralisation left behind following historic underground and open pit mining of sideritic iron ores.

Figure 2: Cross-section (A-A') through BR-10-23 and BR-13-23

Figure 3: Cross-section (B-B') through BR-14-23, BR-18-23, BR-22-23, BR-23-23 and BR-26A-23

Figure 4: Cross-section (C-C') through BR-27-23

Figure 5: Cross-section (D-D') through BR-11-23 and BR-16-23

Figure 6: Cross-section (E-E') through BR-09-23, BR-12-23, BR-15-23 and BR-19-23

Figure 7: Cross-section (F-F') through BR-20-23, BR-21-23 and BR-24-23

Figure 8: Long-section of Rupice looking southwest.

Note: Previously reported drillholes not included. Refer previous announcements and incorporated cross and long sections.

-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.

Authorised by Paul Cronin, Managing Director & CEO

Click on, or paste, the following link into your web browser to view the announcement in full:

http://www.rns-pdf.londonstockexchange.com/rns/8283C_1-2023-6-15.pdf

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

COMPETENT PERSONS REPORT

The information in this report which relates to exploration results is based on and fairly represents information and supporting documentation compiled by Mr Sergei Smolonogov, who is a member of the Australian Institute of Geoscientists (AIG). Mr Smolonogov is an employee of 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 Smolonogov 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, OTCQX:ADMLF) is a precious and base metals developer that is advancing the world-class Vares Silver Project in Bosnia & Herzegovina, as well as the Raska Zinc-Silver Project in Serbia.

The Vares Silver Project is fully funded to production, which is expected in Q4 2023. The 2021 Project Definitive Feasibility Study shows robust economics of US$1,062 million post-tax NPV8, 134% IRR and a capex of US$168 million. Concurrent with ongoing construction activities, the Company continues to explore across its highly prospective 42km2 concession package.

The Mineral Resource estimate for the Rupice underground deposit comprising part of the Vares Silver Project was announced in accordance with ASX Listing Rule 5.8 on 1 September 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous announcement and that all material assumptions and technical parameters underpinning the estimate in the previous announcement continue to apply and have not materially changed.

The Ore Reserve estimate for the Rupice deposit comprising part of the Vares Silver Project was announced in accordance with ASX Listing Rule 5.9 on 19 August 2021. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous announcement and that all material assumptions and technical parameters underpinning the estimate in the previous announcement continue to apply and have not materially changed.

In accordance with ASX Listing Rule 5.19, the Company confirms that the production targets and forecast financial information for the Vares Project were first disclosed in accordance with ASX Listing Rules 5.16 and 5.17 in the Company's announcement dated 19 August 2021. The Company confirms that all the material assumptions underpinning the production target and the forecast financial information in the previous announcement continue to apply and have not materially changed.

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.