Adriatic Metal. Regulatory News (ADT1)

Adriatic Metals PLC 

('Adriatic Metals' or the 'Company')

SANDFIRE LITIGATION UPDATE

Adriatic Metals PLC (ASX:ADT, LON:ADT1) has entered into a Deed of Settlement and Release ("the Deed") with Sandfire Resources Limited ("Sandfire") where both parties have agreed to settle the dispute relating to proceeding CIV 1820 of 2020 brought by Sandfire against Adriatic in the Supreme Court of Western Australia, as announced on 31 July 2020 ("Proceedings").

Sandfire has agreed to pay Adriatic A$8,649,360.35 in cash for the issue of 4,830,156 Chess Depository Interests ("CDIs") in the Company ("Settlement Placement"), pursuant to Sandfire's anti-dilution right under the previously announced Collaboration and Strategic Partnership Deed.

The Settlement Placement is subject to:

(i) confirmation from the Australian Securities Exchange ("ASX") that neither ASX Listing Rule 10.11.3 nor ASX Listing Rule 10.11.5 applies to the Settlement Placement; or

(ii) a waiver being granted to Adriatic by ASX to Listing Rule 10.11.3 in respect of the Settlement Placement; or

(iii) if neither (i) nor (ii) above are achieved, Adriatic receiving shareholder approval, via a General Meeting to be held on or before 31 January 2021 (or such later date as results from the timing of ASX's determination regarding (i) and (ii) above), to issue the CDIs pursuant to the Settlement Placement to Sandfire (Adriatic's directors will recommend in favour of the necessary resolutions and will vote any securities they hold or control in favour of those resolutions); and

(iv) the passing, at Adriatic's AGM (to be held on 6 November 2020), of the resolutions numbered 11 and 12 as set out in Adriatic's Notice of AGM dated 14 October 2020.

Sandfire and Adriatic have also agreed to having the Proceedings dismissed with no order as to costs.

Sandfire has agreed to vote in favour of all resolutions at Adriatic's upcoming AGM.

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

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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:

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 European Bank for Reconstruction and Development.

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.