Adriatic Metal. Regulatory News (ADT1)

18 July 2023

Adriatic Metals PLC 

("Adriatic Metals" or the "Company")

EXPLORATION UPDATE

RUPICE NORTHWEST DEPOSIT - FINAL ASSAYS FOR MAIDEN RESOURCE ESTIMATE

HIGHLIGHTS

· Final assays for inclusion in the Rupice Northwest ('RNW') 2023 resource estimate have been received.

· RNW Lower Zone continued to be extended with high grades persisting e.g., 6.10m @ 1,735.6g/t AgEq or 55.80% ZnEq including 665.6g/t Ag, 14.57% Zn, 9.85% Pb, 3.80g/t Au, 2.64% Cu, 4, 0.56% Sb in hoe BR-27-23.

· High grade gold and copper intersections continue to be returned from the RNW Lower Zone with maintained high Zn, Pb, Ag grades including, 5.50m at 1,326.9g/t AgEq or 42.66% ZnEq containing 389.8g/t Ag, 10.17% Zn, 9.02% Pb, 4.93g/t Au, 1.73% Cu, 4 and 0.08% Sb in hole BR-28-23.

· Infill drilling of RNW Main Zone successfully maintains equivalent grades and widths in-between originally drilled holes e.g., 23.40m at 767.2g/t AgEq, 24.66% ZnEq including 253.4g/t Ag, 9.60% Zn, 5.20% Pb, 0.90g/t Au, 0.43% Cu, 30.3% BaSO4, 0.08% Sb in hole BR-29A-23.

· Exploration drilling will continue post the release of the 2023 Rupice and RNW resource estimate.  Extension of RNW Main and Lower Zones will continue westwards and to the southeast towards Rupice.

· Focus on Rupice Main returns with the staged relocation of drill rigs from RNW to Rupice to test for near-surface extensions (up-dip) of Rupice as of July.

· Rupice West regional exploration drilling started in June with positive intersection of Zn rich gossan that corresponds with surface geochemical anomalism and a ground gravity target.

· Q3 and Q4 2023 is committed to meeting strategic objectives of drill testing the Semizova Ponikva prospect and advanced exploration drilling across the Droskovac historic mining area for extensions of Pb-Zn-Ag mineralisation.

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

"Exploration in Q2 received the final assays to be included in the 2023 Rupice Resource update, including the maiden reporting of the Rupice Northwest resource estimate.

The final assays continued to extend and confirm the robustness of the RNW mineralisation high grades, as well as the continuity of grade and the spatial distribution of metal. The western extent of RNW is an exciting area of new development opportunity. Exploration drilling is unabated, chasing and closing-off the western and southwestern Cu-Au rich areas.

At Rupice West exploration drilling commenced where the intersection of a zinc rich near surface gossan validated surface geochemical and ground gravity anomalism. Assay results are still to be received and further holes are being drilled to repeat the initial intersection.

In line with Adriatic's Exploration Strategy for 2023, drilling focus will switch from RNW to the Rupice Main orebody in July. One drill rig will remain at RNW to infill drill and test remaining open areas. Rupice Main will be the drilling focus until the end of the year and the exploration team will apply the knowledge and experience gained at RNW to extending opportunities at Rupice.

Over the coming months prospective new regional targets at Semizova Ponikva and Droskovac will be tested. Droskovac has high potential to be a new resource development project, being a historic mining area with documented Pb-Zn mineralisation remaining."

Presented below are select significant assay results from 3 of 5 RNW exploration drill holes completed since the last public announcement. One drill hole (BR-26-23) had significant assays previously reported, with remaining results presented in this release not being significant. One drill hole (BR-29-23) was 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 15 June 2023. Details of all 5 holes are appended. All results presented to date to market will be included in the upcoming 2023 Rupice Resource update inclusive of Maiden Rupice Northwest estimates.

Drillhole Highlights

RNW Lower Zone - Extension (New Mineralisation)

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 Lower Zone) - 6.10m at 1,735.6g/t AgEq, 55.80% ZnEq (665.6g/t Ag, 14.57% Zn, 9.85% Pb, 3.80g/t Au, 2.64% Cu, 4, 0.56% Sb) from 257.00m -

o including 3.00m at 3,124.0g/t AgEq, 100.45% ZnEq (1,220.4g/t Ag, 25.47% Zn, 17.62% Pb, 7.13g/t Au, 4.58% Cu,

· BR-27-23 (NW Lower Zone) - 15.90m at 681.5g/t AgEq, 21.95% ZnEq (243.9g/t Ag, 5.48% Zn, 4.07% Pb, 1.41g/t Au, 1.40% Cu, 4, 0.15% Sb) from 268.10m.

Drillhole BR-28-23 is located 155.0m northwest of the RMR and drilled up-dip of previously reported hole BR-22-23 (9.30m at 2,624.8g/t AgEq, 84.40% ZnEq). The drill hole intercepted:

· BR-28-23 (NW Lower Zone) - 5.50m at 1,326.9g/t AgEq, 42.66% ZnEq (389.8g/t Ag, 10.17% Zn, 9.02% Pb, 4.93g/t Au, 1.73% Cu, 4, 0.08% Sb) from 268.50m -

o including 2.10m at 3,277.2g/t AgEq, 105.37% ZnEq (895.7g/t Ag, 25.66% Zn, 23.09% Pb, 12.47g/t Au, 4.44% Cu,

RNW - Infill (Resource Definition)

Drillhole BR-29A-23 is located 155.00m northwest of the RMR. Drilling infilled between currently and previously reported drill holes BR-26A-23 (14.10m at 1,415.6g/t AgEq, 45.51% ZnEq) and BR-06-22 (18.00m at 968.0g/t AgEq, 31.10% ZnEq) respectively. Drilling intercepted:

· BR-29A-23 (NW Upper Zone) - 6.80m at 390.1g/t AgEq, 12.54% ZnEq (112.7g/t Ag, 2.25% Zn, 1.73% Pb, 0.78g/t Au, 0.66% Cu, 26.8% BaSO4, 0.50% Sb) from 143.20m;

· BR-29A-23 (NW Main Zone) - 23.40m at 767.2g/t AgEq, 24.66% ZnEq (253.4g/t Ag, 9.60% Zn, 5.20% Pb, 0.90g/t Au, 0.43% Cu, 30.3% BaSO4, 0.08% Sb) from 236.60m -

o including 12.20m at 1,332.0/t AgEq, 42.83% ZnEq (447.1g/t Ag, 16.83% Zn, 8.77% Pb, 1.60g/t Au, 0.70% Cu, 51.2% BaSO4, 0.12% Sb) from 236.60m.

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.

In the previous Exploration announcement on the 15 June 2023, exploration reported results from 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-17-23, BR-18-23, BR-19-23, BR-20-23, BR-21-23, BR-22-23, BR-23-23, BR-24-23, BR-25-23, BR-26-23, BR-26A-23, and BR-27-23 from across RNW. From these holes, partial results were reported from BR-26A-23 and BR-27-23.

Details within this announcement are from five (5) drilled holes BR-26A-23, BR-27-23, BR-28-23, BR-29-23 and BR-29A-23. Previously not reported significant assay results from hole BR-27-23 are presented. Final results from previously partially reported hole BR-26-23 are also presented with no further significant assays to report. Holes BR-28-23, BR-29-23 and BR-29A-23 are new holes. BR-29-23 is listed as abandoned and contains no significant assays. Significant assay results were returned and are reported from holes BR-27-23, BR-28-23 and BR-29A-23.

Results represent drilling from two (2) drill sections being extended westward and infill drilled between existing holes to an Indicated resource level of confidence. Multiple mineralised bodies are intersected including RNW Upper Zone, Main Zone and Lower Zone. For clarity of reporting, significant assays are reported as being 'infill' (resource definition) or 'extension' (step-out). Infill holes included BR-29A-23 and BR-26A-23. Extension holes include BR-27-23 and BR-28-23

Section NW4880 (RNW)

Results from RNW Upper Zone and Main Zone from hole BR-27-23 were previously reported in June 2023. BR-27-23 is a 60m step out westward from hole BR-09-23. BR-27-23 continued drilling below RNW Main Zone, defining significant massive and semi-massive mineralisation interpreted as correlating with RNW Lower Zone. BR-27-23 on section NW4880 leaves open the opportunity to continue expanding RNW Upper, Main and Lower Zones westward.

Section NW4920 (RNW)

Assays from three (3) holes, BR-26A-23, BR-28-23 and BR-29A-23 were fully received. Dense drilling on this section has achieved an Indicated resource level of confidence in spatial continuity, grade tenor and distribution.

Hole BR-26A-23 previously reported significant assays for RNW Upper and Main Zones in June. Remaining results received since June do not contain any further significant assays in the tail end of the hole. BR-26A-23 successfully thickened the Main mineralised zone east of hole BR-07-22.

Hole BR-29A-23 was successful in twinning hole BR-26A-23 confirming mineralisation spatial and grade continuity as well as grade tenor over a minimum 15m and maximum 30m separations between holes. Outcomes support an Indicated resource level of confidence.

Hole BR-28-23 extended mineralisation westward by 26m, reporting outstanding Ag, Zn, Pb, Au and Cu values from the RNW Lower Zone, well west of (approx. 60m) and below RNW Main Zone (approx. 50m). The drill hole opens up RNW Lower Zone for extension westward beyond current drilling.

Figure 1: Plan view of Rupice and location of drill collars from recent drilling activity (new assays in red text boxes).

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

2023 Exploration Works

The current extension and infill drilling of RNW continues into Q3 to a nominal 40m x 30m spacing. The RNW drilling has extended beyond the current 2023 drilling plan on the strength of results and new discovery (Lower Zone, Western Extension, Gap Zone). To meet 2023 strategic exploration objectives, a staged relocation of drill rigs will occur from RNW to commence drilling the Rupice 'Up-Dip' drilling program as of July. One rig will relocate to Rupice in July followed by a further rig in August. One rig will continue to complete RNW Western Extension, Lower Zone, Gap Zone and Infill holes to end of year.

Change in program focus coincides with the upcoming release of the Maiden RNW and Updated Rupice resource estimate. Continued drilling at RNW recognises that areas of extension and infill drilling need to be completed while drilling positions are still available. There is opportunity for further high-grade growth and conversion of majority of mineralisation to Indicated resource and reserve. Completion of RNW drilling within the current defined footprint area will allow mine planning to optimise underground development into areas of most economic mineralisation extraction as a priority.

Drilling of the Rupice 'Up-Dip' program from July to end of 2023 will test for extension of existing Rupice resources and reserves westward and upwards, using the same systematic, disciplined drilling approach that has been successful in defining RNW. There is no geological reason for Rupice to not continue westward. The same geological controls are considered to be in place, including the continuation of the western fault zone to the southeast of RNW with anticipated associated Cu-Au enrichment and elevation in Pb-Zn-Ag-Sb grades proximal to the fault. The Rupice Up-Dip program will test for extensions of mineralisation not closed-off by drilling.

Currently reported assays will be included in the 2023 Maiden RNW resource estimate. The last drill hole to be included in the RNW resource estimate is BR-29A-23. Results from BR-29A-23 are reported in this release.

Updated Rupice and RNW geological models, 3D mineralisation solids and associated data are with AMC consultants. AMC have been engaged to complete and sign-off on the 2023 Rupice Resource block model and estimate. The updated Mineral Resource Estimate ('MRE') will include assay results received from RNW 2022 and 2023 drilling to end of June and Rupice 2022 drilling to end of December.

Scout exploration drilling with one diamond drill rig commenced at Rupice West in June. Rupice West drilling is testing a Zn soil and coincident ground gravity geophysical anomaly over a large area approximately 1.5km to the west of Rupice. Drilling is now on the third diamond hole. pXRF analysis of core confirmed the occurrence of a shallow Fe-Zn mineralised gossan. Rupice West assay results are expected in August.

Exploration drilling will shift to Semizova Ponikva in August to test two much stronger soil geochemical and coincident ground gravity anomalies (SP1 and SP2).

Results from the 2023 Droskovac ground gravity survey have gone through initial data processing. The results are very encouraging, generating multiple drilling targets along strike of the historic Droskovac underground mine and Brezik open pit. Results have been sent for more detailed geophysical processing. Drilling of coincident geophysical and geochemical anomalism along strike and peripheral to historic mining areas will commence as of September and continue to end of year. All work is within the Adriatic Metals Brezik Exploration licence. Droskovac and Brezik areas are known mineralised areas with historic non-reportable resource estimates that Adriatic Metals aims to bring into an Inferred category of resource confidence in 2023.

Figure 2: Regional geology & tenement map of current and future exploration areas

Figure 3: Cross-section (A-A') through BR-26A-23, BR-28-23 and BR-29A-23 (new assays in red text boxes).

Figure 4: Cross-section (B-B') through BR-27-23 (new assays in red text boxes)

 Figure 5: 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

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 44km2 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.

APPENDIX 1- ASSAY TABLES

Table 1 - Rupice Northwest - Lower Zone - Extension (Step-Out) significant intercepts for reported drill holes

Table 2 - Rupice Northwest - Main Zone - Infill significant intercepts for reported drill holes.

Table 3 - Collar information for reported drill holes

Table 4 - Assay data for reported drill holes