Exceptional Pre-Feasibility Study Results For The Vares Silver Project Including Us$1,040 Million Post-Tax NPV AND 113% IRR

15 October 2020
EXCEPTIONAL PRE-FEASIBILITY STUDY RESULTS FOR

THE VARES SILVER PROJECT INCLUDING US$1,040
MILLION POST-TAX NPV8 AND 113% IRR
ABOUT ADRIATIC METALS HIGHLIGHTS
(ASX:ADT, LSE:ADT1)
Adriatic Metals Plc is focused • Post-tax net present value of US$ 1,040 million (8% discount rate)
on the development of the
100%-owned, Vares high-grade • Internal Rate of Return of 113%
silver project in Bosnia & • Low upfront capital of US$ 173 million
Herzegovina, and exploration at
the Raska base & precious • 1.2 years payback
metals project in Serbia
• Average annual EBITDA of US$ 251 million in years 1-5
• 11.1 Mt of Probable Ore Reserves mined over a 14-year mine life,

annual throughput of 800 kt
DIRECTORS
Mr Michael Rawlinson • 88.5% conversion of Indicated Resources to Ore Reserves at
NON-EXECUTIVE CHAIRMAN
Rupice
Mr Paul Cronin
MANAGING DIRECTOR & CEO • 45.3% of revenues from silver and gold
Mr Peter Bilbe
NON-EXECUTIVE DIRECTOR
• Study relies on significantly more robust inputs over 2019 Scoping
Study:
Mr Julian Barnes
• 2020 Mineral Resource estimate with improved geological
Ms Sandra Bates interpretation
Ms Sanela Karic • Metallurgical domaining of the orebody

• Low environmental impact with underground mining and partial
tailings backfill at Rupice, and use of brownfield Veovaca mine site
adriaticmetals.com for majority of plant infrastructure
• Based on the positive outcome of the Pre-Feasibility Study, work is

immediately commencing on the Definitive Feasibility Study
Adriatic Metals Plc (ASX:ADT, LSE:ADT1) ("Adriatic" or the "Company") is pleased

to announce the outcome of a Pre-Feasibility Study (“PFS”) for the Vares Silver
Project in Bosnia & Herzegovina, which has been completed by a number of
international consultants and led by Ausenco Pty Ltd (“Ausenco”).
Adriatic Metals Plc, Regent House, 65 Rodney Road, Cheltenham GL50 1HX United Kingdom
ASX ANNOUNCEMENT
15 October 2020
Paul Cronin, Adriatic’s Managing Director and CEO commented “This Pre-Feasibility Study has been the
culmination of hard work and effort by international consultants and the team at Adriatic Metals. Despite
covid-19 hampering efforts of mining companies around the globe, I am pleased that we are able to deliver
a hugely positive PFS, with improved economics in comparison to our 2019 Scoping Study, thus showing
that Vares is indeed a world class project.”
FORWARD LOOKING STATEMENTS
Some statements in this document may be forward-looking statements. Such statements include, but are
not limited to, statements with regard to capacity, future production and grades, projections for sales
growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects,
projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for
minerals and metals prices, the outlook for economic recovery and trends in the trading environment and
may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”,
“believe” and “envisage”.
By their nature, forward-looking statements involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future and may be outside Adriatic Metals’ control. Actual
results and developments may differ materially from those expressed or implied in such statements because
of a number of factors, including levels of demand and market prices, the ability to produce and transport
products profitably, the impact of foreign currency exchange rates on market prices and operating costs,
operational problems, political uncertainty and economic conditions in relevant areas of the world, the
actions of competitors, activities by governmental authorities such as changes in taxation or regulation.
PRODUCTION TARGETS CAUTIONARY STATEMENT
The Production Target and forecast financial information derived from the Production Target referred to in
this ASX release is based on 100% of the Ore Reserves being classed as Probable, and 100% Mineral
Resources being classed as Indicated. No Inferred Mineral Resources have been included in the Ore
Reserves or the Production Target. The modifying factors used in the estimation of the Ore Reserve were
applied to the Indicated Resources.
The material assumptions used in the estimation of the Production Target and associated forecast financial
information are set out in this announcement, as well as the Vares Silver Project Mineral Resource Estimate
for Rupice as of 1 September 2020 and the Veovaca Mineral Resource Estimate as at 18 July 2019.
The Ore Reserve and Mineral Resource Estimates underpinning the Production Target were prepared by a
Competent Person in accordance with the JORC Code 2012.
Adriatic Metals plc Regent House, 65 Rodney Road, Cheltenham GL50 1HX United Kingdom Page 2
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15 October 2020
KEY PROJECT METRICS
The key project metrics are shown in Table 1 and 2. Details of the study, including key improvements on
the 2019 Scoping Study, are explained in the summary below.
Table 1: Key Metric PFS Outcomes
2020
KEY METRIC UNIT
PRE-FEASIBIITY STUDY
Mined tonnes to plant Mt 11.1
Life of operation Years 14.0
Total life of mine AqEq* production koz 137,269
Average annual AqEq production years 1-5 koz/year 15,302
Cash Cost ** $USD/t Milled 117.1
All-in Sustaining Cost (AISC) *** $USD/t Milled 120.0
Revenue $USD/t Milled 296.3
Pre-production capital US$ Million 173.0
Post tax NPV (8%) US$ Million 1,040
Post tax Internal Rate of Return % 113%
Project payback from first production years 1.2
Average annual EBITDA years 1-5 US$ Million 251
Profitability Index (Post-Tax NVP8/CAPEX) 6
* PFS Metal Price Au 1900 USD/oz | Ag 24 USD/oz | Zn 2,500 USD/t | Pb 2,000 USD/t | Cu 6,500 USD/t | BaSO4 150 USD/t | Sb 6,500 USD/t
** Cash costs are inclusive of mining costs, processing costs, site G&A, treatment, refining charges (including transportation charges) and royalties
*** AISC includes cash costs plus sustaining capital, closure cost and salvage value
Table 2: Annual EBITDA, Revenue Split and Production of Payable Products
Ag Au Zn Pb Cu BaSO4 REVENUE EBITDA

(koz) (koz) (kt) (kt) (kt) (kt) ($MM) ($MM)
Year -1 559.90 3.90 4.31 3.10 0.53 17.07 44.01 -20.70
Year 1 4,040.97 25.02 34.04 24.00 3.90 166.86 329.83 213.78
Year 2 3,607.41 27.02 55.55 40.59 8.28 144.82 436.27 306.85
Year 3 3,941.38 30.93 45.29 30.59 5.56 142.30 387.84 268.04
Year 4 4,522.26 29.38 32.76 22.92 4.20 190.53 350.38 240.43
Year 5 4,468.11 29.79 31.52 21.89 3.51 139.15 331.97 225.97
Year 6 4,846.50 32.13 21.65 17.07 2.54 148.14 305.55 207.19
Year 7 3,410.02 23.26 23.75 17.96 2.47 112.53 255.68 164.19
Year 8 2,866.09 15.76 11.37 10.23 1.52 101.69 173.74 94.66
Year 9 3,964.13 17.94 21.06 15.39 2.61 179.62 258.53 165.99
Year 10 1,977.61 8.82 8.80 7.21 1.37 75.96 122.27 49.59
Year 11 1,255.87 1.56 5.92 4.62 0.75 73.05 73.89 10.62
Year 12 1,284.99 0.26 9.23 6.12 0.45 87.26 83.61 24.13
Year 13 1,241.20 0.10 9.86 6.45 0.42 71.55 81.88 27.24
Year 14 741.87 0.06 7.67 5.26 0.36 56.04 59.00 14.14
Total 42,728.31 245.91 322.77 233.41 38.48 1,706.58 3,294.46 1,992.11
% Revenue Split 31.1 14.2 24.5 14.2 7.6 7.8 - -
VARES SILVER PROJECT PRE-FEASIBILITY SUMMARY
Context
The Vares Silver Project consists of two deposits, Rupice & Veovaca, located approximately 12 km apart.
Veovaca was a previously operating open pit mine producing lead, zinc and barite concentrates, but ceased
operations in 1988. At this time Rupice was being drill tested, and whilst mineralisation was intercepted, the
main orebody was not encountered until the project was acquired by Adriatic Metals in 2017.
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15 October 2020
Location
The Vares Silver Project is centred around the town of Vares, within the Vares municipality, of the Zenica-
Doboj Canton, Bosnia and Herzegovina, a 50-min drive from the capital Sarajevo. Access to the main project
area of Veovaca is via 9 km of well-maintained sealed roads, and 25 km of well-maintained sealed and
unsealed roads for Rupice. Access is all year round.
The Vares Silver Project lies within a mountainous region with widespread forests and meadows. The Rupice
brownfield site is located predominantly on the eastern side of the Vruci Potok valley on forestry land.
Veovaca, a brownfield site, comprises the previously worked open pit and the previously operated process
plant, located on a small plateau above the open pit valley. A historic tailings dam is located east of the
process plant, utilised during the previous period of mining in the area.
Historic mine workings are present throughout the Veovaca and Rupice areas, predominantly old iron ore
pits in the vicinity of Vares, along with other worked-out open-pits and waste facilities such as those at
Veovaca.
A national electricity grid is operated and maintained by the State company, JP Elektroprivreda BiH.
Powerlines run to the open pit and abandoned processing facility at Veovaca, and thereafter to nearby
villages. This line will be inspected and upgraded as necessary. A new powerline will be provided to deliver
electricity to Rupice. A rail link exists from Vares to the port of Ploce in Croatia, and plans exist to extend
the rail line north into the main Balkan network.
Potable water is supplied to all surrounding villages and the Veovaca plant site. It is maintained by JKP Vares
d.o.o., a public company owned and operated by the Vares municipality.
Table 3a: Project Overview
Mining Ore Reserve 11.12 Mt

Mining Rate 2,180 tpd of ore
Life of Mine 14 years
Mining
~0.5 year stockpiling, ~14 years from first production
Profile
Operations Contractor Mining
Operation
~14 Years from first production
Life
Head
Ag 179 g/t | Au 1.66 g/t | Zn 5.0% | Pb 3.2% | Cu 0.6% | BaSO4 29.2%
Grades (UG)
Head
Ag 58 g/t | Au 0.09 g/t | Zn 1.7% | Pb 1.1% | Cu 0.1% | BaSO4 17.7%
Grades (OP)
Infrastructure Roads 6.8 km of new haulage road and 21.3 km of upgrades to existing roads
and forestry track for transportation of ore from Rupice to Veovaca
Tailings
Storage Filtered Tailings
Facility
Water Existing reticulated supply plus supply from dams in nearby streams
Power 9 MW of installed capacity at Rupice to be provided by JP
Elektroprivreda BiH
12 MW of installed capacity at Veovaca to be provided by JP

Elektroprivreda BiH
Marketing & Logistics Containerised rail transport to Ploce, and sea freight to desired smelter
Logistics locations with applicable inward transportation
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15 October 2020
Table 3b: Summary of Overall Metal Recovery
Zinc Ag/Pb Pyrite

Concentrate
Grade Recovery Grade Recovery Grade Recovery
Zn 57.1% 80% 8.2% 11% 12.8% 7%
Pb 3.1% 7% 41.4% 85% 1.9% 2%
Cu 1.0% 14% 6.3% 80% 0.7% 3%
Au 5.27g/t 24% 8.96g/t 38% 4.43g/t 8%
Ag 491g/t 19% 1,880g/t 69% 287g/t 4%
Sb 0.2% 7% 3.0% 86% 0.2% 2%
Concentrate
655,224 dmt 608,620 dmt 249,736 dmt
Produced
Table 3c: Summary of Metal Payability
Zinc Ag/Pb Pyrite

Concentrate Unit Recovered Payable Recovered Payable Recovered Payable
Metal Metal Metal Metal Metal Metal
Zn kt 374 318 50 2 32 3
Pb kt 20 0 252 233 5 0
Cu kt 7 0 38 38 2 0
Au koz 111 60 175 157 36 28
Ag koz 10,344 6,283 36,795 34,945 2,307 1,499
Sb kt 2 0 18 3 0 0
Concentrate
dmt 655,224 655,224 608,620 608,620 249,736 249,736
Produced
Cost Estimate
The capital and operating cost estimates were compiled by Adriatic with inputs from various engineering
consultants, including Ausenco for the process plant and infrastructure and Axe Valley Mining Consultants
Ltd (“Axe Valley”) for the mining costs. As this is a Pre-Feasibility Study, the cost accuracy is estimates at ±
25% and has a base date of September 2020. Preliminary engineering has been completed on critical
packages to an advanced PFS level of definition including sufficient drawings to allow material take off for
bulk materials. All major equipment and bulk materials have been quoted directly for this project, as have
local labour rates, while minor equipment costing, has been sourced from internal databases of recently
executed projects completed by Ausenco and Axe Valley. Capital cost contingency for the initial capital were
determined through risk assessment and line-by-line deterministic basis, resulting in a project contingency
of US$25 million. Initial and sustaining capital costs, and LOM operating costs are summarised in the tables
below.
Table 4: Capital Cost Estimate, LOM
Capital Cost Estimate US$ M

Initial Capital 173
Sustaining Capital 19
Rehabilitation and Closure 19
Salvage Value 6
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Table 5: Initial Capital Costs
Initial Capital Cost Estimate US$ M

Rupice Underground Mining 6
Rupice Site Infrastructure 24
Minerals Processing 58
Veovaca Site Infrastructure 9
Regional Infrastructure and Utilities 5
Temporary Infrastructure Construction 5
Product Handling and Logistics 3
Common Costs and Services 7
Owners Costs 15
Project Delivery 15
Project Contingency 25
Total 173
Table 6: LOM Average Operating Costs
Metric Unit Value

Mining Cost (Mining) $USD/t Mined 14.0
Mining Cost (Milling) $USD/t Milled 26.5
Processing Cost $USD/t Milled 31.5
G&A Cost $USD/t Milled 4.8
Refining & Transport Cost $USD/t Milled 52.1
Refining & Transport Costs of Barite $USD/t Milled 14.4
Total Operating Costs (Excluding Refining & Transportation cost) $USD/t Milled 62.8
Cash Cost * $USD/t Milled 117.1
All-in Sustaining Cost (AISC) ** $USD/t Milled 120.0
Revenue $USD/t Milled 296.3
* Cash costs are inclusive of mining costs, processing costs, site G&A, treatment and refining charges and royalties
** AISC includes cash costs plus sustaining capital, closure cost and salvage value
Financial Analysis
Key financial metrics are presented in Table 7.
Table 7: Key Financial Metrics
Metric Unit Value

Exchange Rate BAM/USD 1.75
Silver Price US$/oz 24
Gold Price US$/oz 1,900
Zinc Price US$/tonne 2,500
Lead Price US$/tonne 2,000
Barite Price US$/tonne 150
Copper Price US$/tonne 6,500
Antimony Price US$/tonne 6,500
Post-Tax NPV (8% DCF) US$ millions 1,040
Post-Tax IRR % 113%
Payback post Construction years 1.2
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15 October 2020
Mineral Resources
The updated Indicated and Inferred Mineral Resource Estimate was prepared by CSA Global in Perth and
comprises 12.0 Mt at 149 g/t Ag, 1.4g/t Au, 4.1% Zn and 2.6% Pb, as set out in Table 8.
Table 8: Rupice MRE by Classification
Rupice Mineral Resources, August 2020

Grades Contained metal
JORC Tonnes
Ag Zn Pb Au Cu BaSO4 Ag Zn Pb Au Cu BaSO4
Classification (Mt)
g/t % % g/t % % Moz kt kt koz kt kt
Indicated 9.5 176 4.9 3.1 1.6 0.5 29 54 466 294 500 52 2,732
Inferred 2.5 49 0.9 0.7 0.3 0.2 9 4 23 18 27 4 218
Total 12 149 4.1 2.6 1.4 0.5 25 58 488 312 526 56 2,949
Table 9: Veovaca MRE by Classification
Veovaca Mineral Resources, July 2019

Grades Contained metal
JORC Tonnes
Ag Zn Pb Au BaSO4 Ag Zn Pb Au BaSO4
Classification (Mt)
g/t % % g/t % Moz kt kt koz kt
Indicated 5.3 50 1.6 1.0 0.1 16 9 83 55 14 860
Inferred 2.1 17 1.1 0.5 0.1 6 1 23 11 4 123
Total 7.4 41 1.4 0.9 0.1 13 10 106 66 18 984
Mining
The Ore Reserve estimate was prepared by Axe Valley and comprises 11.12 Mt at 150 g/t Ag, 1.28g/t Au,
4.22% Zn and 2.67% Pb, as set out in Table 10.
Table 10: Vares Silver Project Ore Reserves
Vares Silver Project Ore Reserve, October 2020

Ore Ag Au Zn Pb BaSO4 Cu Sb
Deposit Classification
Mt g/t g/t % % % % %
Rupice Probable 8.41 179 1.66 5.04 3.18 29.2 0.55 0.22
Veovaca Probable 2.72 59 0.09 1.69 1.09 17.7 0.07 0.11
Total Probable 11.12 150 1.28 4.22 2.67 26.4 0.43 0.19
The Ore Reserves for the Vares Silver Project deposits have been estimated using the JORC Code and the
Ore Reserves are part of the Mineral Resource. The JORC Code defines an Ore Reserve as:
“An ‘Ore Reserve’ is the economically mineable part of a Measured and/or Indicated Mineral Resource. It
includes diluting materials and allowances for losses, which may occur when the material is mined or
extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include
application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could
reasonably be justified.”
The Ore Reserve assumes a direct conversion between Indicated Resources and Probable Reserves.
As discussed below, the selected mining method for the Rupice deposit was underground mining, whilst
the Veovaca deposit is amenable to conventional open mining methods. Conceptually, the mining recovery
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15 October 2020
for both Rupice and Veovaca have been estimated at 95% and the average dilution factors for Rupice and
Veovaca are 10.5% and 10% respectively.
Rupice Underground Mine

It is proposed that primary access to the underground workings will be via two parallel declines developed
from surface and will be suitable for trackless equipment. Following the anticipated excavation of a box cut,
the declines are anticipated to be developed with dimensions of 5.5m wide X 5.8m high and a maximum
gradient of 16% (1 in 6). Generally, declines are developed at 14.3% (8.3 degrees or 1:7), but the Rupice ore
body requires the portal positions to be located to enable optimal placement of mining infrastructure on
surface, yet require to get to a certain mining elevation (1045 ASL) reasonably quickly to enable the
development of the best value regions. The remaining declines going up and down from the different
underground access positions are all developed at the 1:7 ramp inclination. All decline ramps have
conceptually been positioned to minimise development required to access the initial high-grade stoping
area and to provide the shortest distances to the centre of mass of each of the major stoping areas. The
decline cross-section area proposed has been selected to allow for future haulage using diesel trucks of 50
tonne capacity but could also use the larger 63 tonne capacity truck option. The two main declines to
surface are anticipated to allow for dedicated traffic in each direction with minimal disruption to the hauling
operations. These twin declines are also the essential intake airways into the underground mine.
Internal decline ramps will be developed off the main decline at appropriate positions to allow for access
to the sub-level development. The proposed ramp dimensions will be 5.2m wide X 5.2m high with a
maximum gradient of 14.3% (1 in 7) and a minimum curve radius of 20m for the turns which would allow
trucks from loading points on each sub-level to enter the ramp and then the main decline for transport to
surface. The size of trucks and truck cycles would ensure there is not significant equipment traffic in these
declines and there are several underground stockpiles and re-muck bays planned to allow for passing of
equipment. The declines were also developed in a “figure of 8” geometry to allow for better visibility and
to gradually follow the higher-grade zones along the strike of the orebody.
Secondary development is anticipated to consist of sub-level ramps that are driven to connect with the
footwall drive on each sub-level with a minimum of 20m stand-off from the deposit (measured from the
outside of the drive to the inside of the stopes. The footwall drives are proposed to have dimensions of 5m
wide X 5m high.
The sub-levels will be spaced at 20m vertical intervals. Horizontal cross-cut drives, at dimensions of 5m wide
X 5m high, are proposed to be developed at right angles to the strike of the deposit with the cross-cutting
ore/drill drives spaced 15m apart to adequately traverse the deposit and provide for a 15m stope strike
drilling envelope in a primary-secondary stope sequence and retreating back from the hanging wall to the
footwall (direction). Conceptually, once the crosscut ore-drive is in its final position (just through the
hanging wall contact), a 10-hole (9-holes charged) blast slot will be developed using a long-hole production
drilling rig to create a free face for subsequent ring blasting (1.5 metre spaced rings) by retreat extraction.
The mine design of the rings has the holes spaced to optimise drilling and to allow for a suitable Powder
Factor (PF) whilst not over breaking the stopes and fracturing the surrounding secondary stope envelopes.
Further to this, the mining costs allowed for the drilling of Twin-strand anchor bolts in the hanging wall in
a fan shape at the ends of the ore-drives prior to the slotting being done. This will further improve the
hanging wall stope stability on retreat. It is proposed that loading of the blasted material be at the
intersection point of the crosscut and the footwall drive and hauled via the internal ramp and decline to
surface, tipped into the primary crusher and then deposited in different stockpiles before being reloaded
onto on-highway trucks for haulage to the Veovaca processing plant. Further provision has been made
underground for additional temporary mine stockpiles (on the 1045 ASL) as the surface area outside the
portal is limited.
Figures 1 & 2 illustrate the proposed declines, ramps, levels and stopes at Rupice. The conceptual mine
design comprises largely of main declines (light pink-figure 3), trackless ramps (blue) and the sub-level
footwall drives (green). The mine was sub-divided into two main divisions namely the Longitudinal Longhole
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15 October 2020
Open Stoping zone (LHOS) and the Transverse Longhole Open Stoping Zone (TLHOS). The proposed LHOS
zone is positioned from and above the 1,065 level and the TLHOS zone below the 1,065 level. The
anticipated main ventilation infrastructure includes raise-bored shafts that are shown in the diagram below.
The intake air will conceptually travel down the twin declines and into the mine via the internal ramps and
onto the levels where it will leave the mine via the return air raises and ultimately exhausted through the
main exhaust ventilation shaft. This will be a push ventilation system in year 1 turning into a pull ventilation
system from year 2 onward.
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Figure 1: Mine Design (View 1)
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Figure 2: Mine Design (View 2)

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Scheduling rates are based on the anticipated activities required and the estimated cycle times for each activity
in the mining cycle. Proposed general sequencing followed geotechnical considerations for primary and
secondary extraction, “bottom-up” general mining direction and delays in stope void filling.
This underground mine operating model assumes the following underground working calendar and shift
arrangements:
• Working days per year – 365
• Working shifts per day – 2
• Underground shift duration, hours – 11
• Effective hours per shift – 7.8 hrs
The scheduling rates used in the development of the proposed underground production schedule are
summarised in Table 11 below. The rates have been estimated based on anticipated available shift time, cross-
sectional dimensions, planned advance per blast and mining activity cycle time estimates.
Table 11: Key Scheduling Instantaneous Single End Rates
Schedule item Unit Single End Rate Single End Rate Crew Rate No of Crews1
(Learning Curve (Steady-State) (per shift)
Period)
Main Declines lin2 m/month 40 to 80 115 190 Starts with 1
then moves to 2
Primary access and Secondary lin m/month 60 to 80 115 240 2 then 1 moves
Accesses to ore drives)
Horizontal ore drives lin m/month 60 90 220 -260 1 then 2
Effective Stope Rate (LHOS) t/month +-14,500 +-14,500 +-14,500 1
(Stope Tonnes divided by stope
completion time)
Effective Stope Rate (TLHOS) t/month +-16,250 +-16,250 +-16,250 2
(Stope Tonnes divided by stope
completion time)
Long-hole drilling drill m/month 6,000 6800 6800 2
Vertical raises lin m/month 25 45 45 1

Cementitious Paste-fill (LHOS) m3/d 800 950 - 1,000 1,000 1
Cementitious Paste-fill (TLHOS) m3/d 800 950 - 1,000 1,000 1
Note 1: Crews per Shift. Note 2: lin = linear
The Effective stope rates are calculated on all the activities required to establish, slot, drill and blast, muck and
then fill a stope. The backfill test results indicate that the secondary stopes can commence with slotting within
14 to 16 days after backfilling of the primary stopes has taken place. The backfill costs furthermore made
provision for high binder content to enable strong fill curing within 14 to 16 days. The mine scheduling still
allowed for a total of 18 to 21 days post backfilling to ensure strong curing but to also allow for the development
through the brow-fill to establish the next stope slot (on retreat in very wide stope zones).
The long-hole drilling metres are calculated from the stope drill and blast designs concluded (which essentially
has a 7tonnes per blast hole factor). Two longhole drill rigs should be employed to do all the slotting, the smaller
level ventilation holes and the stope drilling. A derived activity has been used to estimate the required fill volumes
and is dependent on preceding stoping completion with an added curing delay on the fill to neighbouring stope.
When a stope mines up to the sill pillar it was ensured that there be at least 40 days between the upper stopes
(above a sill) to the stopes to mine the sill. Most of the stopes actually have much longer lag times than this
which allows the backfill above the sill pillar to cure to its absolute full strength. Stopes above the sill pillar could
also be filled with a 6.5 to 7% binder content if the geotechnical engineers believe it necessary.
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15 October 2020
The mine proposes a mechanised longhole blast-hole retreat method for stoping and trackless equipment for
transport. The proposed mining cycle consists of the following key production areas:
Trackless mechanised development (drilling, supporting, blasting, loading and hauling) with the longhole open
stoping comprising of the following sequential activities:
Mechanised longhole stoping
• ore drive development
• hangingwall cable bolting
• stope slotting
• stope production drilling
• charging and blasting
• remote stope loading
• truck loading at stockpiles
• hauling
• backfill wall installation
• backfill plug pour
• complete stope backfilling and
• allowing for sufficient time to cure prior to starting any neighbouring stope slotting activities
The drilling activities are separated into short shot-hole, long-shot-hole and support drilling. Different
mechanised drilling machines are proposed for each of these activities. Support drilling would be performed by
up to two support drilling rigs (bolters) capable of drilling long holes for installation of cable bolts and other
ground support bolts. Short hole drilling would be performed by double boom drill-rigs (jumbos). Primary
support of resin rebar and friction bolts may be performed using the jumbos and bolters where required.
Longhole drilling is anticipated to be performed by a top hammer long-hole drilling machine capable of drilling
up to 32 to 35m tubed long holes, 76mm – 102mm in diameter.
It is expected that the blasting activities will be supported by charge-up crews and utility vehicles modified for
the purposes of transporting explosives, blasting accessories and charging of the blast holes. The modified utility
vehicles would be loaded at the surface magazines where emulsion will be sensitised and loaded into the special
purpose explosives kettle located on the charge-up vehicle. It is planned that water-resistant emulsion explosives
would be used in conjunction with cast boosters as a primer and shock tube detonators. Blasting would be
initiated at fixed intervals at the end of the shift from a central control room once shift clearance procedures are
complete. Longhole stoping blast holes will have at least two primer-boosters per hole. It is also proposed that
investigations into semi-autonomous longhole drilling be completed to further enhance drilling accuracy and
safety. Drilling personnel set up the rig and stand in a safe, remote supported location during longhole drilling
and therefore also improving productivity.
The loading of blasted feed material and waste as well as the backfilling of the stopes will conceptually be
achieved using a single type of load haul dump unit (LHD) model and size in order to minimise the inventory of
equipment spares. Mucking of waste development, drive development and stoping materials would utilise a 14-
tonne class LHD.
Backfilling of waste (when available) into the open stopes would utilise the same class 14-tonne LHD, but stope
backfilling will mostly try to utilise the backfill plant and system.
Transport of feed material and waste to surface is proposed to be achieved by the loading of broken rock into
50-tonne class diesel haul trucks and hauling via the main transport drives, ramps and declines to surface. The
proposed cross-sectional dimensions of primary and secondary development have the potential for a 63-tonne
class truck to be used at the intersection of the orebody drive and strike drive so that LHDs can load blasted
rock into haul trucks for transport to surface.
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The proposed ancillary equipment fleet at Rupice Project will consist of various utility vehicles for the transport
of equipment, consumables and stores in and out of the underground mine. In addition to the utility vehicle
fleet, an underground motor grader, integrated tool handler and light vehicles are proposed. The estimated
mechanised mining machinery is summarised in Table 12 below.
Table 12: Estimated Mechanised Mining Machinery
Equipment type Average Requirement Peak Requirement

Drill Rig - Short hole 4 4
Drill Rig - Long hole 2 2
Drill Rig - Support 1 1
LHD 2 3
Truck 3 4
Charging Vehicles 1 2
Support & Ancillary Vehicles 5 5
Light Vehicles 6 6
TOTAL 24 27
The processing plant would operate on a similar shift arrangement to the mining operations. Management,
administration and technical services would operate on a 11-shift fortnight with leave allowance being covered
by junior or supporting roles.
Table 13: Rupice Estimated Labour Requirements
Rupice UG Labour Requirements Peak Requirement

Operators 55
Service Crews 20
Maintenance Crews 25
Mine Management & Technical 62
Total Rupice Complement 162
The Rupice underground schedule was developed on a month by month basis from start to finish. The schedule
allowed for operator learning curves and also reasonable linear advance rates. This schedule is largely driven off
the assumption that the mining crews will be experienced at the onset with skilled supervision to ensure the
schedule progress is achieved. The initial stopes targeted also allows for some stope learnings and these were
scheduled within a couple of medium grade stopes whilst the access development progresses down to the
intended high value mining block.
Veovaca Open Pit Mine

Mining will be by conventional open pit methods, including Drill and Blast (D&B), followed by Load and Haul
(L&H). D&B and L&H are anticipated to be performed on 10m benches, with selective mining of ore on 5m
flitches. Where possible in the near surface weathered zone, free diggable material could be mined without
requiring drilling and blasting. Ripping by bulldozers may also be employed in transitional areas to reduce the
quantity of drilling and blasting required.
The envisaged scale of mining at the Veovaca Deposit is relatively small scale with a peak total material
movement of approximately 4 Mtpa. The annual processing plant feed requirement target is 800 ktpa.
The conceptual mining fleet would consist of 90-tonne hydraulic backhoe excavators and 30-tonne capacity off
highway articulated dump trucks. The estimated fleet size 2 x 90-tonne class excavators, 1 x Front End Loader
and 15 x 30-tonne class trucks will be the peak requirement. It is not anticipated that the fleet size will vary
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significantly over the life of the open pit due to topography and the reference elevation. The primary mining
fleet of trucks and excavators would be supported by standard open-cut drilling and auxiliary equipment.
Waste material will be hauled to the allocated waste rock dump positions to the south of the pit.
Apart from any free dig or ripping, rock fragmentation is proposed as being accomplished utilising drilling and
blasting. The rigs would be supported by a stemming tractor loader backhoe (TLB), explosive delivery vehicle
and several light vehicles for carrying personnel and explosive accessories.
The proposed bench height and rock type suits drill-rigs capable of drilling 89mm to 152mm diameter blast
holes. Burden, spacing and sub-drill designs will be dependent on the varying material types of the deposit. A
bench height of 10m, with a flitch height of 5m, have been selected to ensure selective mining of the feed
material.
As part of the geotechnical optimisation of the pit, pre-split blasting is anticipated for the final walls. The pre-
split blasting would reduce ground vibration and improve the final high wall condition.
Pit support equipment for the Veovaca operation is estimated to consist of a fleet of at least one each of the
following: dozer, grader, fuel bowser, water bowser, hydraulic rock-breaker, front end loader and TLB. The
function of this equipment would be to support the primary mining equipment by the maintenance of pit floor
and haul roads, cleaning up around the excavators to prevent excessive tyre damage, secondary breakage of
oversize rocks and to water-down road surfaces to suppress dust.
The majority of the plant feed material is planned to be loaded directly from the pit into the primary crusher
reception bin. It has been assumed that a small buffer stockpile will be maintained at 10 % of the total monthly
feed tonnage.
Ancillary equipment for the operation would consist of service trucks, tyre handlers, mobile crane, water pumps,
lighting plants and light vehicles. The function of this equipment would be to support the pit equipment and
maintenance workshops.
Grade control drilling and sampling is assumed to form part of the mine planning and execution to control feed
definition at the Veovaca deposit. It is planned to sample the blasthole chippings during blast hole drilling in
advance of the loading activity to develop a grade control model that will inform the short and medium term
mine planning.
In-pit water management is assumed to primarily consist of run-off control and sumps. The de-watering
infrastructure and equipment would be sized to handle ground water inflows and precipitation. The surface
water handling plan would be based on diverting as much surface water as possible away from the open pit,
using collection ditches and sumps, then pumping the water to a mine water pond. As the estimated pit deepens
intermediate sumps may be required on the pit’s walls and on the surface between the pit and the mine water
storage dam.
The proposed mining schedule has assumed that the operations work 24/7 365 days in a year, less 15 days for
unscheduled delays such as high rainfall / snowfall events which may cause mining operations to be temporarily
suspended.
A contract mining approach has been assumed to be adopted, and an estimate of the mining contractor staff
required to ensure delivery of the production mining plan estimated based on 2 x 12 hr shift for the operators,
with a 3rd shift on break. The total contractor manpower will be approximately 128 full time employees.
Waste rock deposition is proposed to occur in three main phases, namely:
1. Pre-stripping waste used as rock-fill for infrastructure (e.g., water storage dams);
2. Waste Rock Dump (WRD) West located in the valley to the immediate north of the Veovaca processing
facility; and
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3. Long term storage on the WRD South located in the southern valley adjacent to the processing facility.
The proposed waste rock dump associated with mining operations would be constructed to meet the
requirements of international best practices. Waste Rock deposition would utilise a valley fill method and provide
approximately 4.5 million m3 storage capacity with a final dump profile gradient of 1:2.5. Dumps would initially
be constructed with the natural fill angle of approximately 35o or the angle of repose of the dumped material.
The waste dump would be progressed by tipping from a higher level against a windrow and progressively
pushing the waste out with a dozer.
Table 14: Waste Rock Deposition Infrastructure
Crest Max
Toe RL Volume Density Mass
Area RL Height
mamsl mamsl m m3 x 1000 t/m3 Kt
TMF* Buttress 920 870 50 269 1.86 500
Water Storage Dam 1,003 972 31 86 1.86 160
WRD West 1,024 916 108 1,775 1.86 3,300
WRD South 1,056 916 140 2,516 1.86 4,680
Total Rockfill Required 6,645 1.86 8,640

* “TMF” defined as Tailings Management Facility
Conceptually, waste dumps will be progressively rehabilitated with topsoil, where possible. Surfaces of dumps
would be contoured to minimise batter scour. Seepage and shallow ground water flow along the perimeter of
the mine residue deposits would be controlled with suitable toe drains.
All areas impacted by the project, including all waste and tailings dumps, tailings dams and water dams would
be stripped of topsoil before commencement of construction. This topsoil would be stockpiled for future
rehabilitation work at the end of the mine production life.
Pre stripping the open pit to expose ore will take approximately 12 months assuming a mining material limit of
4 Mtpa. Ore mining is then proposed to start in December 2031 and would ramp up the Veovaca feed supply
from April 2032 and reach steady state production in November 2032. In order to ensure a seamless “dove-tail”
with the ramp-down production tail from the Rupice underground mine initial ramp-up material is proposed to
be stockpiled and reclaimed during the switch-over from underground to open pit feed.
METALLURGY & PROCESSING
The process design for the Rupice and Veovaca project is based on the mine plan and corresponding feed
grades, metallurgical test-work, and Ausenco’s in house database. The Rupice and Veovaca mineralisations are
amenable to concentration through sequential flotation circuits producing saleable bulk (copper-lead), zinc,
pyrite, and barite concentrates. The plant has been designed to accept a maximum throughput of 800 kt/y.
Process Overview
The main processing facility is located at the Veovaca site and receives ore from both the Rupice underground
mine and Veovaca open pit. During underground operation, primary jaw crushing occurs at the Rupice site and
the crushed ore is trucked to the Veovaca concentrator. For open pit operations, a contracted crusher will be
used for the Veovaca site and ROM will be trucked there directly. Crushed ore is received and stored in two
coarse ore bins prior to the Semi-Autogeneous Mill and Ball mill (SAB) grinding circuit, which consists of a Semi-
Autogenous Grinding (SAG) mill, ball mill, and cyclone to grind and classify material to a P80 of 40 µm.
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The cyclone overflow reports to the sequential flotation circuit, which consists of bulk (silver-lead) flotation and
regrinding, zinc flotation and regrinding, pyrite flotation, and barite flotation. The process produces four saleable
concentrates, (bulk, zinc, pyrite and barite), that are subsequently thickened, filtered, and placed in sealed
shipping containers for transport.
Tailings from the facility reports to a tailings thickener and filter press where the material is dewatered to produce
filtered tailings, and the resulting process water is recycled to the facility. This arrangement results in a high-
water efficiency, minimising makeup water requirements. The filtered tailings are then trucked to the Rupice site
for use as backfill in the underground mine or trucked and placed at the tailings storage facility located near the
Veovaca concentrator.
Filtered tailings which report to the Rupice site are stockpiled next to the backfill plant. Waste rock from the
underground mine is crushed and mixed with the tailings and cement binder in the backfill mixing system. The
paste backfill is then pumped to the underground reticulation system.
Figure 3: Overall Process Flowsheet
Process Design Criteria

The key process design criteria for the mineral processing facilities are listed in Table 15.
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Table 15: Process Design Criteria
Criteria Unit Value

Annual Throughput (Design) t/y 800,000
Operating Days per Year d 365
Operating Availability – Crushing h/y 4,380
Operating Availability – Grinding and Flotation h/y 8,000
Operating Availability – Concentrate and Tailings Handling h/y 7,333
Operating Availability - Paste Plant h/y 8,000
Design Throughout – Crushing t/h (dry) 200
Design Throughput – Milling and Flotation t/h (dry) 100
Design Throughput – Bulk Concentrate Filtration t/h (dry) 18
Design Throughput – Zinc Concentrate Filtration t/h (dry) 24
Design Throughput – Barite Concentrate Filtration t/h (dry) 42
Design Throughput – Paste Plant t/h (dry) 89
Crushing Feed Size, 100% Passing mm 600
Crushing Product Size, 80% Passing mm 76
Grinding Product Size, 80% Passing μm 40
Ball Mill Circulating Load % 250
Bond Ball Mill Work Index (Design) kWh/t 10.3
Bond Abrasion Index (Design) g 0.168
Metal Recovery Method - Polymetallic Sequential Flotation
Bulk Concentrate Grade %, Cu 6.3
Bulk Concentrate Grade %, Pb 41.4
Zinc Concentrate Grade % Zn 57.1
Layout Overview
The Rupice site is a greenfield location and consists of several terraces accommodating the portal access to the
twin declines, the primary jaw crusher, and stockpiles required for management of ore and waste rock. The
aggregate crushing plant, paste backfill plant and the associated stockpiles and ancillary facilities are located
near the underground portal at the site.
The Veovaca site is a brownfield site currently home to an abandoned process facility. Existing buildings and
equipment will be demolished as necessary to accommodate the revised site layout. Notably, the existing tailings
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thickener is to be re-used as the process water tank in the design. The tailings storage facility is proximal and
southeast of the concentrator.
Process Description
Primary Crushing
Run-of-mine (ROM) material will be received at a ROM bin at the Rupice site. The ROM bin will be equipped
with a static grizzly with an aperture size of 600mm to prevent oversize material from entering the crushing
circuit. The material will be then fed into the primary crusher by means of a vibratory feeder.
The primary crusher will be a single-toggle jaw type and will be designed to reduce the feed size from 80%
passing 317mm to 76mm. The crushed material will be then transported via the haulage decline from the
underground mine to a radial stacker on surface. The radial stacker distributes the material between stockpiles
corresponding to waste rock and ore of various grades.
Ore will be reclaimed from the stockpiles at the Rupice site by a front-end loader and loaded into haul trucks.
The trucks then transport the material approximately 30 km to the Veovaca concentrator. Waste material will be
reclaimed and either transported by truck to the Veovaca tailings facility or loaded directly into the aggregate
crushing circuit feeding the paste backfill plant.
Paste Backfill Plant and Aggregate Crushing
Aggregate Crushing
The aggregate crushing plant will consist of a single stage cone crushing system designed reduce the crushed
waste rock size from 80% passing 76mm to 100% passing 12mm.
A front-end loader will reclaim waste rock from the waste rock stockpile into a 40m3 feed hopper. The material
will be deposited onto an inclined crusher feed conveyor by means of a vibrating feeder. The conveyor transports
the material to the cone crusher, where it will be crushed and subsequently conveyed to a vibrating screen.
Screen undersize will be directed to the -12mm aggregate stockpile, while the oversize will be recirculated to
the feed hopper.
Paste Backfill Plant
The paste backfill plant combines concentrator tailings, crushed aggregate, and cement to produce a product
suitable for deposition as backfill. The backfill composition varies over the life of mine, but on average contains
35% aggregate, 6.6% binder, and 58% concentrator tailings on a dry weight basis. The materials are combined
in a continuous mixer and subsequently pumped to the underground reticulation system.
Tailings will be trucked from the Veovaca concentrator site and stockpiled next to the paste backfill plant. A
front-end loader reclaims the tailings to a hopper, where a belt feeder meters the material at a fixed mass
flowrate on to a common inclined mixer feed conveyor.
Waste rock from the underground mine will be crushed to -12mm to produce an aggregate material suitable
for backfill production. The stockpiled aggregate will be reclaimed by a front-end loader into a hopper, where a
belt feeder meters the material at a fixed mass flowrate on to the mixer feed conveyor.
Binder will be trucked to site and stored in a silo integral to the backfill plant facility. The binder will be then fed
to the mixer at a fixed mass flowrate. Water will also be added to the mixer to control the solids density at a
nominal value of 78% w/w. The design water consumption for the backfill and aggregate crushing plant is 5.6
l/s.
The mixed backfill reports to a pump box where a swing-tube backfill distribution pump will direct material to
the underground reticulation system. There will be provision for the backfill material to be sent to a bunker in
the event of a process or downstream upset.
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Coarse Ore Handling

Crushed ore will be trucked from the Rupice site to the concentrator at the Veovaca site and end-dumped into
a coarse ore hopper with a capacity of 50t. The coarse ore will be transported by a belt conveyor to a reversible
conveyor, where it can be discharged into two coarse ore bins. Each bin provides a live residence time of 23
hours and a corresponding capacity of 2260t of ore on a wet basis. Ore will be reclaimed from the bins by belt
feeders and discharged to the SAG mill feed conveyor. The SAG mill feed conveyor weightometer will be used
to control the throughput of ore into the mill.
In the event of a process upset, the material can be stockpiled at a nearby coarse ore storage pad with 48 hours
of storage capacity and reclaimed with a front-end loader.
Grinding
The grinding circuit consists of a SAG mill, ball mill and cyclones. The grinding circuit will be designed to reduce
ore from an 80% passing size of 76mm to 40µm.
The SAG mill will be a single pinion low aspect mill, operating in a closed circuit. The mill has an inside diameter
of 3.8m and an effective grinding length (EGL) of 5.0m. The mill receives coarse ore and process water at a
variable flowrate to achieve the correct pulp density. Lime and zinc sulphate are also dosed to the SAG mill to
condition the feed prior to flotation. The SAG mill will be charged with high chrome grinding media at a diameter
of 125mm by means of the grinding building hoist and ball kibble.
The discharge of the SAG mill will be received at a cyclone feed hopper and pumped to the cyclones. The cyclone
will be designed to achieve an overflow density of 35% at a product size of 40µm. the overflow reports to the
bulk rougher flotation cells and the underflow reports to the ball mill. The cyclone operates at a nominal
recirculating load of 250%.
The ball mill will be a single pinion overflow mill, operating in closed circuit with the mill cyclones. The mill has
a diameter of 3.8m and an EGL of 6.6m. The mill will be charged with high chrome grinding media at a diameter
of 40mm by means of the grinding building hoist and a ball kibble. The discharge reports to the cyclone feed
hopper, where it combines with the SAG mill discharge and will be pumped to the mill cyclones.
Flotation
The flotation circuit at the Veovaca concentrator consists of a bulk flotation circuit, zinc flotation circuit, pyrite
flotation circuit, and barite flotation circuit. Each circuit will be discussed in the following subsections.
Bulk Flotation
The purpose of the bulk flotation stage will be to recover a lead/copper concentrate. The mill cyclone overflow
reports to a horizontal vibrating trash screen to remove any oversize particles or material prior to flotation. The
screen undersize then reports to a conditioning tank where lime, sodium metabisulphite (SMBS), promotor, and
frother are added. The resulting slurry will be then pumped to bulk rougher flotation at a nominal density of
40% w/w and pH 9.
Bulk Rougher Flotation
The bulk rougher flotation cells are conventional forced air tank cells. The concentrate of the bulk rougher
flotation tank reports to a primary cleaner, while the tailings report to the bulk rougher scavenger cells. The
scavenger concentrate reports to the bulk regrind surge tank, while the tailings report to the zinc flotation circuit.
The primary cleaner will be a Jameson cell, and process water will be added to modify the slurry density to 25%
w/w. The concentrate reports to the bulk concentrate thickener, while the tailings report to the bulk regrind
surge tank. Jameson flotation cells are not mechanically agitated but rely on induced aeration and mixing.
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Bulk Regrind Circuit

The regrind circuit consists of a cyclone cluster and stirred horizontal regrind mill operating in open circuit. Slurry
from the surge tank will be pumped to the cyclones targeting an overflow product size of 10µm. The cyclone
overflow reports to the bulk cleaner circuit, while the underflow flows by gravity to the regrind mill. The regrind
mill uses a ceramic media with a 2-3mm diameter. The mill discharge reports to the bulk cleaner circuit.
Bulk Cleaner Flotation
The bulk cleaner circuit consists of three sequential stages of cleaning. In the first stage will be dosed with zinc
sulphate, lime, SMBS, promotor and frother to promote concentrate recovery. The flotation concentrates flow
from the first stage through to the third and concentrate from the third stage reports to the bulk concentrate
thickener. The tailings flow counter-current to the concentrate, and tailings from the first stage reports to the
zinc flotation circuit.
Zinc Flotation
The purpose of the zinc flotation circuit will be to recover a zinc concentrate. Tailings from the bulk flotation
circuit reports to a condition tank prior to the zinc circuit, where copper sulphate, lime, collector, and frother are
added. The conditioned slurry will be then pumped to the zinc rougher cells. The zinc flotation circuit follows
the same arrangement as the bulk circuit, described as follows.
Zinc Rougher Flotation
The zinc rougher flotation cells are conventional forced air tank cells. The concentrate of the zinc rougher
flotation tank reports to a primary cleaner, while the tailings report to the zinc rougher scavenger cells. The
scavenger concentrate reports to the zinc regrind surge tank, while the tailings report to the pyrite flotation
circuit.
w/w. The concentrate reports to the zinc concentrate thickener, while the tailings report to the zinc regrind surge
tank.
Zinc Regrind Circuit
The regrind circuit consists of a cyclone cluster and stirred horizontal regrind mill operating in open circuit. Slurry
from the surge tank will be pumped to the cyclones targeting an overflow product size of 10µm. The cyclone
overflow reports to the zinc cleaner circuit, while the underflow flows by gravity to the regrind mill. The regrind
mill uses a ceramic media with a 2-3mm diameter. The mill discharge reports to the zinc cleaner circuit.
Zinc Cleaner Flotation
The zinc cleaner circuit consists of three sequential stages of cleaning. In the first stage will be dosed with zinc
sulphate, lime, SMBS, promotor and frother to promote concentrate recovery. The flotation concentrates flow
from the first stage through to the third and concentrate from the third stage reports to the zinc concentrate
thickener. The tailings flow counter-current to the concentrate, and tailings from the first stage reports to the
pyrite flotation circuit.
Pyrite Flotation
The purpose of the pyrite flotation circuit will be to recover pyrite prior to the barite flotation circuit. The zinc
flotation tailings report to a conditioning tank, where sulphuric acid, copper sulphate, collector, and frother are
added. The slurry will be then pumped to the pyrite rougher flotation cells.
Pyrite Rougher Flotation
The pyrite rougher flotation cells are conventional forced air tank cells. The concentrate of the pyrite rougher
flotation tank reports to a primary cleaner, while the tailings report to the barite flotation circuit.
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Pyrite Cleaner Flotation

w/w. Additional sulphuric acid and collector are also dosed at this stage. The concentrate reports to pyrite
thickening and loadout, while the tailings report to the cleaner scavenger flotation cells.
The cleaner scavenger concentrate reports to the barite flotation circuit, while the tailings are re-circulated back
to the primary cleaner.
Barite Flotation
The purpose of the barite flotation circuit will be to recover a barite concentrate. The pyrite flotation tailings
report to two conditioning tanks in series, where lime, sodium silicate, promotor, and frother are added. The
resulting slurry will be then pumped to the barite rougher cells.
Barite Rougher Flotation
The barite rougher flotation cells are conventional forced air tank cells. The concentrate of the barite rougher
flotation tank reports to the cleaner circuit, while the tailings report to the tailings thickener.
Barite Cleaner Flotation
Concentrate from the rougher cells reports to the 5 stages of cleaning. The concentrate from each stage flows
from stage one to 5, where it reports to the barite thickener. The tailings flow counter current to the concentrate,
and the tailings from the first stage of cleaning reports to the tailings thickener. In each stage, lime will be added
to maintain a pH of 9.5. Additional sodium silicate and promotor will be added to the first three stages of
cleaning.
Concentrate Handling
The concentrate handling circuit consists of thickening and filtration equipment required to dewater the bulk,
zinc, pyrite, and barite concentrate prior to loadout and shipment.
Each concentrate stream reports to a dedicated high rate thickener, where flocculant will be added to assist in
the settling of the solids. The thickener overflows report to the process water thickener, while the underflows
report to dedicated filter feed tanks which have a residence time of 12 hours.
The bulk and zinc thickener underflows report to a common concentrate filter at nominally 65% solids. The filter
will be a horizontal plate type membrane filter press, and discharges filter cake at a target moisture content of
6 and 9% for the bulk and zinc concentrates respectively. The filter washing cycle will be sufficient to prevent
contamination of the concentrates when switching between the two feeds. The filter discharges to two indoor
stockpiles, one for zinc concentrate and one for the bulk concentrate each with a 12-hour storage capacity.
The barite thickener underflow reports to a barite concentrate filter at nominally 58% solids, which will be a
horizontal plate type membrane filter press. Filter cake will be discharged at a target moisture content of 6%,
which reports to an indoor barite concentrate stockpile with a 12-hour storage capacity.
The concentrates are reclaimed from the stockpiles by a front-end loader and placed into shipping containers.
The containers are stacked by a forklift outdoors, and subsequently loaded onto trucks for shipment. The yard
has sufficient storage space for 4 days of production of each concentrate.
Tailings Handling
Tailings from the flotation circuits reports to a tailings thickener, where flocculant will be added to promote
settling of the solid particles. The overflow reports to the process water thickener, while the underflow reports
to a filter feed tank at 65-70% solids. The filter feed tank has a residence time of 12 hours and feeds a vertical
plate and frame membrane filter press. The press produces a filtered tailings product at 9.5% solids and
discharges it to a covered stockpile which has a 12 hours residence time. The tailings are recovered by a front-
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end loader and transported by haul truck back to the Rupice site for use as backfill. Alternatively, the tailings are
deposited at the tailings storage facility.
Reagents Handling and Storage
Reagents are received onsite at dedicated storage areas prior to mixing and dosage to the process. The reagents
used in the nominated flowsheet are as follows:
• Lime
• SMBS
• Zinc Sulphate
• Sodium Silicate
• Copper Sulphate
• Sulphuric Acid
• Aerophine 3418A
• Xanthate
• Aero 845
• MIBC
• Flocculant
Plant Services
Services at the Veovaca concentrator include process water, raw water, fire water, potable water, gland water,
and low and high pressure air services,
The existing 50m diameter tailings thickener will be used to store process water.
Process Recommendations
It is recommended to complete further test work programs to optimize and confirm the flowsheet to treat Rupice
and Veovaca mineralised material as follows:
• Complete further geometallurgical test work to improve the ore characterization of the resource and
when combined with the spatial modelling, the resulting block model and mine schedule will provide
the optimal ore feed schedule to the processing plant;
• Optimize metal recovery and concentrate grade to further improve the project economics, particularly
silver in the concentrates;
• Further assess the implementation of preconcentration technologies to potentially reduce the plant
capital and operating costs, such as heavy media separation and XRT ore sorting;
• Identify alternate techno-economical opportunities to lower penalty elements from the concentrates;
and
• Further investigate economic alternatives for upgrading the barite concentrate to produce a range of
products.
INFRASTRUCTURE
The Rupice and Veovaca projects are located approximately 8.7km west-north-west and 3.5km east respectively
from the town of Vares and 35km to the north-north-west of the capital city Sarajevo. The Rupice deposit is
largely a greenfield site located some 1.5km from the nearest small village of Borovica Gornja and no
infrastructure currently exists at the proposed mining operations. The site is currently accessed from the main
sealed road. Travelling north from Sarajevo on the R444 and then turning west onto the R444a, north of Vares,
toward the site. From the R444a, a secondary sealed road (bi-directional single lane) accesses the village of
Borovica Gornja and ultimately the exploration site via an unsealed exploration track in reasonable repair. There
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are no waterways or channels within close proximity to the project area and all construction material, equipment
and consumables will need to be transported via rail or heavy truck and trailer from Sarajevo or Ploce port
located on the coast of Croatia.
The overall site plan (see Figure 4) shows the major project facilities, including the open pit mine and
underground mine portal, TMF, waste rock facilities, mine services, access and haul road, and process plant area.
Figure 4: Overall Site Plan
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Electrical Power Infrastructure

The existing power distribution network infrastructure in the Vares region is provided by the Public Enterprise
Electric Utility of Bosnia and Herzegovina (EPBiH) and consists of a north-south 220KV and 400KV line in close
proximity to the town of Vares. Additional 132 KV network lines, run north-south in close proximity to the Rupice
mine site along the main sealed R444a road.
Construction of approximately 2.5 km of 35 kV overhead line will be required to connect to the 132 KV line for
distribution to the Rupice site location. The new 35 kV overhead distribution line will be constructed by the utility
company to deliver the expected load of 8.9 MW within the Rupice site area. This will be stepped down to 10 kV
for local distribution on feeders to the paste plant, local electrical room, administration & ancillary buildings,
aggregate crusher, primary crushing station, and underground mine reticulation. Electrical power to surface
infrastructure consumers will be supplied at 400 V via secondary distribution transformers which will feed 400 V
motor control centres or distribution panes. Electrical power to underground mining consumers via the
underground reticulation will be supplied at 10 kV and stepped down via secondary distribution transformers
which will feed 1 kV underground power distribution centres. Emergency power for the critical underground
loads will be provided by a 1 MW emergency diesel generator located near the 35 kV to 10 kV substation.
There is currently a 35 kV tie-in connection from the HT electrical network to the existing main substation
building at the Veovaca site next to the administrative building. The electrical infrastructure will be refurbished
and stepped down to 6 kV for power distribution. From this 35kV/6kV substation, local 6 kV feeders will provide
power to the process plant, administration building and open-pit dewatering pump station. A peak demand of
12 MW with an average load of 10.3 MW is required for the processing area at Veovaca. One 2.5 MW diesel
generator, located close to the main 35 kV to 6 kV substation, will provide emergency power to the process plant
at Veovaca.
Site Access and Haul Roads
The Veovaca site is currently accessed from the main sealed road (R444) connecting the town of Vares to the
capital city of Sarajevo. From the R444, a secondary sealed road runs east towards the Tisovci village surrounding
the proposed processing facility. An unsealed public road from the village of Dastansko currently links the
proposed processing facility to the Veovaca deposit. This public road will be diverted to run further north of the
Veovaca deposit as the existing unsealed public road crosses the proposed pit area.
The Veovaca site contains existing unpaved roads around the legacy infrastructure from the previous operation.
Minor upgrades will be required, as well as 495 metres new road building to the South of the existing thickeners
to allow for full ring-road access around the process plant infrastructure.
The Rupice site is currently accessed from the main sealed road. Travelling from north from Sarajevo on the R444
and then turning west onto the R444a, north of Vares, toward the site. From the R444a, a secondary sealed road
(bi-directional single lane) accesses the village of Borovica Gornja.
The proposed mine haulage route for the purposes of transporting material from the Rupice mine to the
processing facility and the subsequent transport of dewatered tailings back to the proposed route of 28.1 km is
comprised of three main areas:
1. 6.8 kms indicate non-existing routes that require construction and approval and will limit traffic to mine
vehicles only;
2. 12.1 kms indicate existing public routes of medium impact that may require upgrade and traffic control
and state approval for the use of public and mine operated vehicle; and
3. 9.2 kms indicated existing public routes of low impact that will require upgrade and traffic control and
state approval for the use of public and mine operated vehicles.
ASX ANNOUNCEMENT
15 October 2020
All mine vehicles, other than underground vehicles, will comply with state laws and will be legally allowed to
travel on public roads.
Buildings - Veovaca
There is currently no mining infrastructure at the Veovaca deposit, however, a derelict processing facility is
located some 2 km southeast of the proposed surface operation. A large administrative building, located at the
plant site, is currently at an advanced stage of repair and refurbishment.
As shown in Figure 5, the process plant is separated into three main buildings located southwest of the open pit
mine and southeast from the town of Vares. The three buildings are the grinding/classification building,
flotation/regrind building, and concentrate filter building. All buildings are pre-engineered structures, supported
on reinforced concrete footings and are complete with concrete slabs and pedestals. All pre-engineered
buildings will be fully enclosed with insulated metal panel (IMP) roof and wall cladding.
Ancillary facilities at Veovaca includes a modular laboratory and other fabric buildings such as tailings storage
building, concentrate filter tank and air services building and the workshop/warehouse buildings. All fabric
buildings are supported on a reinforced concrete raft foundation.
Figure 5: Veovaca Site Infrastructure
Buildings - Rupice
The Rupice deposit is largely a greenfield site located some 1.5 km from the nearest small village of Borovica
Gornja and no infrastructure currently exists at the proposed mining operations. Figure 6 shows the proposed
infrastructure at the Rupice site.
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15 October 2020
From the portal to the west, a low-cost single storey wood-frame building has been considered to house the
administrative offices, lamproom and changehouse. The other ancillary buildings supporting the Rupice mining
operation will be fabric type buildings and supported on a reinforced concrete raft foundations. These include
the workshop/warehouse and washbay building, fuel and lube storage building, mine storage area, backfill paste
plant building and compressor building.
Figure 6: Rupice Surface Infrastructure
Tailings Management Facility (TMF)

The TMF has been designed to international design codes and standards, such as those prescribed by the
Australian National Committee on Large Dams and Canadian Dam Association
Over the first nine years of the mine life, it is envisaged that most tailings produced from the processing of
Rupice ore will be returned underground as backfill. Tailings generated in excess of backfill demand, will be
stored in a dry-stack tailings facility, to be developed in the valley immediately south of the former Veovaca
processing plant, as shown on Figure 5. Tailings generated from the processing of the Veovaca deposit will be
also be stored in the dry-stack facility.
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15 October 2020
Figure 7: General Arrangement of Dry Stack Tailings Facility
The TMF will be constructed in two stages, providing with capacities of 1.5 Mt and 4.1 Mt respectively at an
assumed average dry density of 1.65 t/m3. The starter embankment is constructed of rock fill, and the facility will
employ upstream construction techniques utilizing compacted filtered tailings.
Diversion ditches upstream of the deposition area will divert meteoric water away from the facility. Contact water
and seepage will be captured in ditches and a High-density polyethylene (HDPE) underdrain system reporting
to a downstream collection pond to be pumped back to the process plant. The seepage pond and drainage
channels will be lined with an HDPE liner.
Water Management
The Veovaca and Rupice sites have been undertaking hydrological monitoring and studies since 2018 in both
catchments to build a data-base describing surface water flows, correlated rainfall and meteorological
information, water quality analyses, and hydraulic tests to determine the baseline hydrological processes and
behaviour. Since 2020 a more detailed suite of studies assessing potential underground mine hydrogeology and
groundwater control (dewatering) has been undertaken. Additional studies include surface water supply
potential at Rupice and Veovaca and assessment of potential surpluses and deficits of water resources across
the mine systems (water balance) and design work on the necessary water management system for the
operations.
Following Environmental Scoping carried out in 2019, additional measurements have been established. This was
based on the recognition that the stream flow recordings in the Veovaca catchment area (the Mala river) were
influenced by a regulating effect from the upstream TMF. The Rupice catchment where the underground mine
will be located is affected by the dolomitic limestone hydrogeology of the area which results in spring discharges,
a modified streamflow hydrograph due to groundwater baseflow and rapid recharge components affecting
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15 October 2020
groundwater flow. Additional measurements were established to record flow, water level and water chemistry of
the surface water, additional spring monitoring and groundwater wells. In both catchments the frequency of
recordings for stream flow and water level measurements were increased to 15 minute intervals so that the effect
of storm events and short-term rainfall could be evaluated as these were likely to convey rapidly through the
limestone catchment and be materially significant to the water balance of the hydrological systems.
The project requires approximately 5 l/s and 8.6 l/s respectively as make-up water from the respective
catchments for the Veovaca and Rupice sites. In both catchments, this raw water will need to be supplied from
surface water systems using reservoir impoundments to store sufficient volumes to enable reliable supply during
dry periods.
Ground water inflow into the underground mine has been modelled using available hydrogeological
information. The assessments are steady-state and analytical meaning that the calculations are based on lumped
average parameters and general mine design descriptions. Inflowing groundwater may be affected be acid
generating metalliferous geochemical reactions in the ore, hanging wall and footwall zones although there is
some likelihood, still to be confirmed and modelled, that the natural alkaline limestone water quality may
neutralise some of the acidity and limit metal dissolution. While the steady-state predictions indicate flows will
reduce during the life-of-mine, the effect of geo-mechanical stress relaxation from stoping could induce greater
fracture flows through the groundwater system.
A site wide water balance for the operations was developed for the PFS based on mine production, water
demand, run-off and supply from the reservoir sources. The water balance indicates the operations are
continually net negative i.e. requiring make-up water. This means that aside from standard water drainage
philosophies of segregating contact and non-contact site run-off, the water discharges from the project should
be limited.
MARKETING & LOGISTICS
A recognised marketing expert was retained by Adriatic Metals to prepare a commercial report focussing on the
high value zinc, lead-silver concentrates and precious metals pyrite concentrate predicted to be produced from
the Rupice deposit at a processing plant at Veovaca. The main focus of their study was on the high-grade
concentrates that have been shown to be produced from the Rupice deposit.
The high silver and gold content in both the Ag/Pb and Zn concentrates was of significant interest as was the
low iron levels in the concentrates. The Silver/Lead concentrate will be extremely attractive to specialist Chinese
smelters with silver tolling licenses. Chinese smelters will pay for the lead, silver, antimony and gold, and charge
minimal mercury penalties increasing the NSR values. Additionally, most European smelters are experienced in
dealing with high levels of mercury in zinc concentrates.
The precious metal pyrite concentrate represents a marketable product. Chinese smelters are able to process a
wide range of materials, similar to this and we would expect that this would be most suited to the lead smelting
industry. Other smelters have also expressed an interest.
Five smelters were approached on a no-name basis for both the Ag/Pb and Zn concentrates. Selecting a Chinese
destination for the Ag/Pb concentrate and a European destination for the Zn concentrate their respective
payabilities, penalties, treatment and refining charges, shipping and transport costs and other charges were used
in the Financial Model to produce the revenue stream for each concentrate. Similarly, a Chinese destination was
selected for the pyrite concentrate and all revenue and charges used in the model. These produce the following
revenue streams for the main commodities in the first ten years.
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15 October 2020
Table 16: Revenue Stream First 10 Years
Commodity Revenue – First 10 Years
Zinc USD 725M
Lead USD 422M
Silver USD 917M
Gold USD 463M
The processing plant at Veovaca will produce metal concentrates for silver-lead, zinc, barite and precious metal
pyrite products, which will need to be moved by truck and by rail to the Port of Ploce for export onto bulk carrier
vessels. All concentrates will be packed into Twenty-foot Equivalent Unit (TEU) containers at the railhead in Vares
in either ~ 2 mt bulker bags or loose in plastic lined containers.
The journey to the port will traverse three distinct areas, where locomotives will be changed according to the
line requirements. The first section of the line from Vares to Podlugovi needs repair but is considered to be easily
remediated at minimal cost. The remaining journey to the port of Ploce will be on electrified lines, with regular
freight traffic. The journey with stops is expected to take approximately 10 hours from Vares to Ploce.
Provided that the containers have been suitably packed at Vares in accordance with container line regulations,
it may then be possible to discharge the containers, with their concentrate contents intact, directly to the holding
areas of the contracted container lines for onward shipping to final destination, the so called “Stacks”.
Delivery in bulk is assumed to be on a CIF FO basis to European and Chinese smelters; for sales in containers
delivery will be assumed to be on a CIP basis.
Barite
A study of the market potential for barite from the Vares Silver Project was prepared in December 2017 by Peter
W. Harben Inc. The fundamentals of the sector and the market drivers have not changed significantly, and this
was subject to a 2019 update by Ted Dickson of TAK Industrial Mineral Consultancy.
To get a better understanding of the drivers for the barite market, potential markets and real-life specification
requirements (API and other specifications can be quite vague), Wood Mackenzie were commissioned by Adriatic
Metals to investigate and report on a “Barite Marketing Strategy”. They presented their report in May 2020 at a
time when major parts for the barite market had already been impacted by COVID-19.
Industrial minerals are marketed differently from metal concentrates and because Adriatic Metals will produce a
ready ground product, marketing requires more direct discussions between the company and end users in the
oil & gas industry. The grade and high SG (Specific Gravity) of the barite (4.3) produced from Rupice make it an
attractive product for drilling muds for the oil and gas industries and it has passed the current API (American
Petroleum Institute) tests in terms of sizing and other specifications.
The Vares Silver Project is expected to become the largest barite producer in Europe at up to 250,000 tons per
year at peak capacity. This scale offers Adriatic the opportunity to drive costs down through economies of scale
as well as invest in best in class logistics for getting product to various markets. The scale of the operation also
ensures that Adriatic Metals should be able to be a more reliable supplier than some of the other, smaller
operators in the region.
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15 October 2020
Based on indicative specifications, it appears that Adriatic’s barite is best suited for use in the oil and gas drilling
industry, although it could also find application in concrete and as a filler in some rubber products. There is
potential for beneficiation of the barite to potentially produce other saleable barite products and this will be
further investigated in the next phase of project development. Wood Mackenzie’s report considered that the
barite concentrate will likely produce products that can be sold in the $100-200/tonne range. Adriatic Metals
will continue to explore possibilities for further beneficiation of the barite to potentially produce different grades
that could be sold into multiple industries. A price of $150/t FOB has been used for the PFS. In discussions and
exchanges with a barite trader it has been suggested that shipping in bulk to larger users/traders in the USA
Gulf of Mexico ports may be the best option.
Wood Mackenzie’s analysis of other barite mines shows that margins are maximised by selling product further
down the value chain (i.e. self-processing and vertically integrating transportation). End users’ value standard
specification production (i.e. they dislike variable quality), so it is worthwhile to invest in equipment and
processes that produce a highly consistent and specific grade of barite. Minimising logistics costs/investing in
value-add services is a proven way to increase margin (i.e. own transport outright, offer just-in-time delivery).
Adriatic Metals will be investing into barite marketing expertise to get maximum value from the barite
concentrate in the future.
CLOSURE & REHABILITATION
Under current proposals, the historic processing plant site at Veovaca will be demolished and redeveloped for a
new processing plant which will be used to process ore from Rupice and then Veovaca. There are no current
plans to use the historic TMF at Veovaca site. Instead, it is intended that the bulk of the tailings from the new
plant will be dewatered and returned to Rupice to be repulped and disposed of underground as Paste Aggregate
Fill (PAF).
Excess tailings will be disposed of in an area to the south of the plant site in a new co-disposal facility. The
closure plan that has been developed is for the end of life of the planned operations at both Rupice and Veovaca
and therefore the cost of the proposed demolition of the historic processing plant is not be included. It is
assumed that such costs are part of the pre-production funding for both Rupice and Veovaca Mines.
At this stage, the after use of the two sites has not been decided but conceptual decisions have been made and
this has been used to develop the methodology and cost, in particular those facilities which will be removed and
those which should remain.
At Rupice, the planned closure will be a full closure of the operation and all its associated infrastructure including
the filling and sealing of access drifts and ventilation raises, removal of plant and equipment and remediation of
the site but leaving the main access road and electricity supply in place.
At Veovaca, the site will be remediated to a status suitable for other light manufacturing or fabrication uses but
closure will include removal of the processing plant and equipment, closure of the Veovaca open pit and
remediation of the waste co-disposal area to the south of the site.
Again, it is anticipated that the main access roads and electricity supply will remain for any light engineering or
manufacturing works that may supersede the mines. There is a water supply requirement for the processing
plant via a water dam which, it has been assumed will be required once mining has finished to support the
development of light industry.
A template itemising the closure required at each mine has been developed and the total closure budget has
been assessed at Rupice as $7.3M and Veovaca as $12.1M.
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15 October 2020
PERMITTING
A summary of the current permitting status at Veovaca is contained in Table 17 below.

Table 17: Veovaca Permitting Status
Permit Type Submitted Approved
Demolition Permit
24 June
Water Permit Decision on Preliminary Water Permit No: UP-I/25-1-40-365-4/19, 11 July 2019
2019
Environmental
Permit (includes
27 June
Waste Environmental Permit UPI-05/2-23-11-145/19, 26 Nov 2019
2019
Management
Plan)
Exploitation Permit
Three permits issued in November 2019, one for discharge of site runoff (UP-I/25-1-
13 40-508-5/19) issued 04 November 2019, one for water supply and discharge of
Water Permit September process water at Veovaca I (UP-I/25-1-40-556-3/19, issued 04 November 2019) and
2019 one for water supply and discharge of process water at Veovaca II (UP-I/25-1-40-556-
3/19, issued 05 November 2019)
30
Environmental
September Environmental permit UPI-05/2-23-11-195/19, issued 20 May 2020
Permit
2019
Urban Planning 15 April

Awaiting final Ministerial approval
Permit 2020
Exploitation
Will be submitted upon receival of Urban planning permit
Permit
Rupice Permitting
The Company submitted applications for obtaining Preliminary Water Permit and Environmental Permit for the
Rupice underground mine and its required infrastructure on 9 and 10 April 2020, respectively. The water permit
is currently progressing through the cantonal approvals process and the necessary Public Hearing for the
Environmental Permit successfully took place on 31 August 2020 in open-air COVID-19 secure conditions. On
receipt of the Environmental Permit, the Urban Planning Permit will be immediately submitted for approval. After
which the Exploitation Permit will be applied for in 2021.
CONSTRUCTION
Demolition of the historic Veovaca plant will begin shortly, as a pre-cursor to the permitting and start of
construction of the processing plant in late-2021. Prior to issuance of final operational permits the Company is
able to start development of the Rupice decline, supporting mine surface infrastructure and haul road in H2
2021. Mining operations, to develop a feed stockpile, are scheduled to commence 4 months prior to the
commissioning of the processing plant in late Q4 2022. Full capacity mining and processing are scheduled for
2023.
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15 October 2020
ENVIRONMENTAL & SOCIAL
The proposed Veovaca and Rupice mines and processing facilities are currently undertaking both local
environmental permitting and working towards adherence to the EBRD Performance Requirements (2019) and
other international standards (Equator Principles). The Veovaca Project has obtained the required environmental
permits and at Rupice, a public hearing for the environmental assessment was carried out in August 2020, which
is a precursor to the grant of the license.
Environmental Scoping was carried out in Q3 and Q4 2019 and baseline studies for an ESIA were commenced in
May 2020, utilizing local consultants and contractors where possible. Studies are being undertaken regarding air
quality, noise, soils, biodiversity, hydrology, hydrogeology, geochemistry, landscape and visual impact
assessment, social aspects, traffic, and archaeology and cultural heritage, across the defined Project area of
influence. To ensure data is seasonally representative, especially for water studies, air quality and biodiversity,
the baseline programme will continue until the end of April 2021.
The proximity of the plant site to residential dwellings in Tisovci led to early stage noise modelling. Results
showed that noise emissions would be above the maximum allowance under local and international
requirements. Several design aspects were adjusted to assist in reducing noise levels, including the movement
of the crusher to Rupice, and the mapping of routes taken by mobile equipment. A second phase of noise
modelling includes additional acoustic cladding to the mill building and a 5.2m noise barrier (2 containers high)
around the north western and northern edges of the plant site; with this mitigation in place it is anticipated that
noise levels will be within acceptable limits, based on the current Project design.
Stakeholder engagement and consultation has occurred both as part of baseline collection and for information
dissemination. The Information Centre was established in Vares in 2019 and acts as a central point for local
stakeholders to obtain information and raise concerns or questions with Eastern Mining. A Stakeholder
Engagement Plan was developed and is in the process of being implemented for the project. A Public Liaison
Committee was established during 2020 and now meets quarterly; members are representative of all local
communities in the region, as well as of local government, business owners and religious groups.
During baseline data collection it is evident that the local communities are supportive of the Project and the
associated anticipated economic opportunities that it may bring.
Environmental and Social aspects are managed on site by a dedicated team based at Tisovci, the manager of
which reports directly to the Managing Director & CEO. A framework Environmental and Social Policy is to be
developed at the corporate level, providing guidance and an umbrella for an environmental and social
management system and all other environmental and social policies, plans and procedures to sit under. The
Board of Adriatic has established an Environmental Social & Governance committee to oversee and advice on
policy implementation. Governance policy aspects will also be addressed at the corporate level and will apply to
all subsidiary companies. Some progress has been made regarding these policies, and this will be a focus in the
period leading up to and during the Feasibility Study.
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15 October 2020
SENSITIVITY ANALYSIS
Table 18: Sensitivity Input - Post-Tax NPV (US$M)
Key Driver -20% -10% Base Case 10% 20%
Metal Price $651 $845 $1,040 $1,234 $1,429

Total Opex $1,119 $1,079 $1,040 $1,000 $960
Initial Capex $1,070 $1,055 $1,040 $1,024 $1,009
Head Grade $673 $856 $1,040 $1,226 $1,413
$1,600
$1,400
$1,200
NPV (8%) USD$ M
$1,000
$800
$600
$400
$200
$0
-20% -10% Base Case 10% 20%
Metal Price Total Opex Initial Capex Head Grade
Table 199: Sensitivity Input - IRR (%)
Key Driver -20% -10% Base Case 10% 20%
Metal Price 76% 94% 113% 132% 151%

Total Opex 125% 119% 113% 107% 102%
Initial Capex 135% 123% 113% 104% 96%
Head Grade 79% 96% 113% 131% 149%
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15 October 2020
160%
140%
120%
100%
IRR %
80%
60%
40%
20%
0%
-20% -10% Base Case 10% 20%
KEY RISKS
• To achieve the range of outcomes indicated in the PFS, funding of in the range of US$180 million will
likely be required in capital expenditure to construct the mine, process plant and project infrastructure.
It is anticipated that the finance will be sourced through a combination of equity and debt instruments
from existing shareholders, new equity investment and debt providers.
• Development approvals and investment permits will all be sought from the relevant Bosnian authorities.
Delays in any one of these key activities could results in a delay to the commencement of mine
development (planned for Q2-2021). This could lead on to a delay to first production which is planned
for Q4-2022. The Company’s government relations stakeholder and community engagement programs
will reduce the risk of project delays.
• The project proposes to produce silver-lead, zinc, barite and precious metal pyrite concentrates. Further
marketing will be required to confirm end users and develop potential contracts.
ASX ANNOUNCEMENT
15 October 2020
Authorised by, and for further information, please contact:
Paul Cronin
Managing Director & CEO

[email protected]
-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:
Adriatic Metals Plc

Paul Cronin / Emma Chetwynd Stapylton Tel: +44 (0) 203 950 9138
Tavistock Communications Limited

Charles Vivian Tel: +44 (0) 7977 297903
Edward Lee Tel: +44 (0) 7736 220565
Gareth Tredway Tel: +44 (0) 7785 974264
The Capital Network

Julia Maguire/Lelde Smits Tel: +61 2 8999 3699
COMPETENT PERSONS REPORT
The information in this report that relates to the Mineral Resources is based on and fairly represents information
and supporting information compiled by Dmitry Pertel. Dmitry Pertel is a full-time employee of CSA Global and
is a Member of the Australian Institute of Geoscientists. Dmitry Pertel has sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of
Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Dmitry Pertel consents to the disclosure
of information in this report in the form and context in which it appears.
The information in this report which relates to Exploration Results is based on and fairly represents information
and supporting 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.
The information in this report that relates to Ore Reserves is based on and fairly represents information and
supporting information compiled by Dr Matthew Randall for the Veovaca Reserves and Mr Anton von Wielligh
for the Rupice Reserves. Matthew Randall is a Member of the Institute of Materials, Minerals and Mining (IOM3)
ASX ANNOUNCEMENT
15 October 2020
and Anton von Wielligh is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM). Neither
Matthew Randall or Anton von Wielligh are employees of Adriatic Metals. Both Matthew Randall and Anton von
Wielligh have sufficient experience relevant to the style of mineralisation and type of deposits under
consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the
2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore
Reserves (JORC Code). Matthew Randall and Anton von Wielligh consent to the disclosure of information in this
report in the form and context in which it appears.
The information in this report which relates to processing plant design and metallurgical results is based on and
fairly represents information and supporting information compiled by Mr Richard Whittering, who is a member
of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Whittering is a consultant to Ausenco Pty Ltd,
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 Whittering consents to the
disclosure of information in this report 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 the Raska zinc deposit in Serbia.
The Vares silver project consists of two polymetallic deposits, located at Rupice and Veovaca. Located within
the Raska Zinc project are Kizevak and Sastavci, two past-producing zinc, lead and silver open-pit mines.
Both Bosnia & Herzegovina and Serbia are well-positioned in central Europe and boast a strong mining
history, pro-mining environment, highly-skilled workforce as well as extensive existing infrastructure and
logistics.
The Vares Silver Project’s captivating economics and impressive resource inventory have attracted Adriatic’s
highly experienced team, which is expediting efforts to fast-track the project to production. Leveraging its first-
mover advantage, Adriatic is rapidly advancing this project into the development phase and through to
production.
Kizevak and Sastavci are two past-producing zinc, lead and silver open pit mines located within the Raska District.
The Kizevak and Sastavci exploration licences cover a total area of 3.28 km2 and are contiguous with Tethyan’s
existing exploration rights in the district.
There have been no material changes to the assumptions and technical parameters on the updated Rupice
Mineral Resource Estimate announced on 1 September 2020 and these assumptions continue to apply.
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
ASX ANNOUNCEMENT
15 October 2020
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.
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15 October 2020
APPENDIX 1: RUPICE MRE JORC TABLES
Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code Explanation Commentary
Sampling Nature and quality of sampling (e.g. cut channels, PQ3 and HQ3 diamond core was cut in half to provide a sample for assay
techniques random chips, or specific specialised industry standard typically weighing around 4-6kg. Samples were submitted to the ALS facility
measurement tools appropriate to the minerals under in Bor, Serbia for industry standard analytical analysis.
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.
Include reference to measures taken to ensure sample The half core and weight of the sample is sufficiently representative.
representivity and the appropriate calibration of any
measurement tools or systems used. No calibration of any equipment was required as all samples were sent for
assay by a commercial laboratory.
Aspects of the determination of mineralisation that are PQ3 and HQ3 diamond core was used to obtain nominally 1m samples from
Material to the Public Report. In cases where ‘industry which 4-6kg of material was pulverised to produce sample for fire assay,
standard’ work has been done this would be relatively ICP-MS and X-ray Fluorescence (XRF).
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.
Drilling techniques Drill type (e.g. core, reverse circulation, open-hole All the holes were diamond drilled from the surface using PQ3 and HQ3
hammer, rotary air blast, auger, Bangka, sonic, etc) and diameter core.
details (e.g. core diameter, triple or standard tube, depth
of diamond tails, face-sampling bit or other type, whether Drilling was undertaken by S&J Drilling from Bor, Serbia and GIM
core is oriented and if so, by what method, etc). Geotehnika from Macedonia both using crawler mounted Atlas Copco
diamond core rigs capable of drilling to depths of 800 m (HQ).
The rig drilled HQ3 and core held in the 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 racked inside at the Veovaca office-warehouse
complex.
All holes were surveyed downhole generally at or around 30 m intervals.

Deviation from the setup azimuth and inclination were not material over the
entirety of the drilled interval, except for BR-6-18 and BR-19-18 (at Rupice),
both of which deviated at the heavily faulted and fractured Jurassic-Triassic
contact zone.
Drill sample Method of recording and assessing core and chip sample All core was logged for geology and RQD with recovery in the mineralised
recovery recoveries and results assessed. and sampled zone greater than 90%. The PQ3 and HQ3 diameter and
sampling of half core ensured the representative nature of the samples.
Measures taken to maximise sample recovery and ensure
representative nature of the samples. There is no observed relationship between sample recovery and grade, and
Whether a relationship exists between sample recovery with little to no loss of material there is considered to be little to no sample
and grade and whether sample bias may have occurred bias.
due to preferential loss/gain of fine/coarse material.
Logging Whether core and chip samples have been geologically Diamond drill core samples have been geologically and geotechnically
and geotechnically logged to a level of detail to support logged to a level of detail to support appropriate Mineral Resource
appropriate Mineral Resource estimation, mining studies estimation, mining studies and metallurgical studies. Not all drill holes
and metallurgical studies. penetrated the massive sulphide mineralisation, but all were used to guide
the geological interpretations supporting the Mineral Resource estimates.
Whether logging is qualitative or quantitative in nature. All core is photographed, and logging is qualitative.
Core (or costean, channel, etc) photography.
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15 October 2020

The total length and percentage of the relevant All core is logged.
intersections logged.
Sub-sampling If core, whether cut or sawn and whether quarter, half or The diamond core was cut in half using a diamond saw. Nominally 1 in 30
techniques and all core taken. samples was cut in quarters, and both halves analysed (for purposes of field
sample duplicates).
preparation
If non-core, whether riffled, tube sampled, rotary split, etc Not applicable, as all samples are core.
and whether sampled wet or dry.
For all sample types, the nature, quality and Collection of around 4-6kg of half core material with subsequent
appropriateness of the sample preparation technique. pulverisation of the total charge provided an appropriate and representative
sample for analysis. Sample preparation was undertaken at the ALS
laboratory in Bor, to industry best practice.
Quality control procedures adopted for all sub-sampling Whole rock blanks and certified standards (~1 in 15) were introduced to the
stages to maximise representivity of samples. sample run to ensure laboratory QAQC. Additionally, industry best practice
was adopted by ALS for laboratory sub-sampling and the avoidance of any
cross contamination.
Measures taken to ensure that the sampling is The half core sampling is considered a reasonable representation of the in-
representative of the in-situ material collected, including situ material. Nominally 1 in 30 samples were cut in quarters, and both
for instance results for field duplicate/second-half halves analyses (for purposes of field duplicates).
sampling.
Whether sample sizes are appropriate to the grain size of Sample size of around 4-6kg is considered to be appropriate to reasonably
the material being sampled. represent the material being tested.
Quality of assay The nature, quality and appropriateness of the assaying Analyses were undertaken at the accredited laboratory of ALS in Bor, Serbia
data and and laboratory procedures used and whether the which has full industry certification. Multi elements were assayed by an ICP-
laboratory tests technique is considered partial or total. AES technique following a four-acid digest. Gold was determined using a
fire assay on a nominal 50g charge. Barite was determined from a lithium
borate fusion followed by dissolution and ICP-AES analysis. Total sulphur
was determined by Leco.
All techniques were appropriate for the elements being determined.

Samples are considered a partial digestion when using an aqua regia digest.
For geophysical tools, spectrometers, handheld XRF There was no reliance on determination of analysis by geophysical tools.
instruments, etc, the parameters used in determining the
analysis including instrument make and model, reading
times, calibrations factors applied and their derivation,
etc.
Nature of quality control procedures adopted (e.g. Certified Reference Material (“CRM”) appropriate for the elements being
standards, blanks, duplicates, external laboratory checks) analysed were added at a rate better than 1 in 15. All results reported by
and whether acceptable levels of accuracy (i.e. lack of ALS on the CRMs were better than 2 standard deviations (2SD), it is
bias) and precision have been established. considered that acceptable levels of accuracy have been achieved.
Additional lab checks were sent to SGS in Bor. To date,154 samples were
submitted for check assaying from within the mineralised drill intercepts.
The check assays correlated within tolerance to the original ALS assays.
Verification of The verification of significant intersections by either There has been no independent logging of mineralised intervals, however, it
sampling and independent or alternative company personnel. has been logged by several company personnel and verified by senior staff.
assaying
The use of twinned holes. No exploration results are reported.
Documentation of primary data, data entry procedures, Data is stored on the Virtual Cloud and at various locations including Vares,
data verification, data storage (physical and electronic) Bosnia & Herzegovina and Cheltenham, UK. And is managed by gDat data
protocols. solutions in an acQuire database, which is regularly backed-up.
Discuss any adjustment to assay data. No adjustments were necessary.
Location of data Accuracy and quality of surveys used to locate drill holes Sampling sites were surveyed using Total Station to better than 0.05m
points (collar and down-hole surveys), trenches, mine workings accuracy in the local BiH coordinate system.
and other locations used in Mineral Resource estimation.
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 0.05m. It is considered sufficiently
accurate for the Company’s current activities.
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Data spacing and Data spacing for reporting of Exploration Results. Results from two drill holes are being reported. All samples were collected
distribution at 2m intervals down hole.
Whether the data spacing and distribution is sufficient to Drill hole spacing is deemed sufficient to establish the degree of geological
establish the degree of geological and grade continuity and grade continuity appropriate for the Mineral Resource classifications
appropriate for the Mineral Resource and Ore Reserve applied.
estimation procedure(s) and classifications applied.
Whether sample compositing has been applied. Sample composite was not employed.
Orientation of Whether the orientation of sampling achieves unbiased The drill holes are considered to be reasonably orthogonal to the
data in relation to sampling of possible structures and the extent to which interpreted dip of the mineralisation, or close to it.
geological this is known, considering the deposit type.
structure
If the relationship between the drilling orientation and It is not considered that the drilling orientation has introduced a sampling
the orientation of key mineralised structures is bias, as the drilling is considered to be orthogonal to the strata bound
considered to have introduced a sampling bias, this mineralisation, or close to it.
should be assessed and reported if material.
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.
Audits or reviews The results of any audits or reviews of sampling A Site and Laboratory (ALS and SGS, Bor) visit was made by Dr Belinda van
techniques and data. Lente, an employee of CSA Global in January 2018. There were no material
issues found for the 2017 drill campaign.
Section 2: Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)
Criteria JORC Code explanation Commentary
Mineral Type, reference name/number, location and The Rupice deposit is located within the Company’s 100% owned Concession, No. 04-18-
tenement and ownership including agreements or material 21389-1/13, located 13km west of Vares in Bosnia. There are no known material issues
land tenure issues with third parties such as joint ventures, with any third party other than normal royalties due to the State.
status partnerships, overriding royalties, native title
interests, historical sites, wilderness or national
park and environmental settings. The Veovaca deposit is located within the Company’s 100% owned Concession, No. 04-
18-21389-1/13 located 10 km east of Vares in Bosnia. There are no known material issue
with any third party other than normal royalties due to the State.
The security of the tenure held at the time of The Concession is in good standing with the governing authority and there is no known
reporting along with any known impediments to impediment to the Concession remaining in force until 2038 (25 years), subject to
obtaining a licence to operate in the area. meeting all necessary reporting requirements.
Exploration Acknowledgment and appraisal of exploration by Modern exploration commenced with the work of Energoinvest in the late 1960s. During
done by other parties. 1968-1969 underground development of 455m of drives and cross cuts were made, and
other parties 11 surface trenches dug for a total length of 93.5mm. Between 1980 and 1989, 49 holes
were drilled for an advance of 5,690.8m. Sample material from all of these programs was
routinely analysed for lead, zinc, and barite, and on occasion silver and gold. The deposit
was the subject of a number of 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 to be of a standard equal to that prevalent within today’s

exploration industry.
Geology Deposit type, geological setting and style of The host rocks at Rupice comprises Middle Triassic limestone, dolostone, calcareous and
mineralisation. dolomitic marl, and a range of mostly fine-grained siliciclastic rocks including cherty
mudstone, mudstone, siltstone and fine-grained sandstone. The main mineralised horizon
is a brecciated dolomitic unit that dips at around 50o to the northeast and has been
preferentially mineralised with base, precious and transitional metals. The Triassic
sequence and has been intensely deformed both by early stage ductile shearing and late
stage brittle faulting.
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The Rupice polymetallic mineralisation consists of sphalerite, galena, barite and
chalcopyrite with gold, silver, tetrahedrite, boulangerite and bournonite, with pyrite. The
majority of the high-grade mineralisation is hosted within the brecciated dolomitic unit,
which is offset and cut by northwest striking, westerly dipping syn-post mineral faulting.
This faulting displaces the mineralised body up to 20 metres in places. Thickening of the
central portion of the orebody occurs where these faults flexure and deform. Mineralised
widths up to 65 metres true thickness are seen in the central portion of the orebody.
To date, the massive sulphide mineralisation at Rupice has a defined strike length of 650
metres, with an average true-width thickness of around 20 metres. However,
mineralisation at Rupice still remains open towards the north and down-dip to the south.
Drill hole A summary of all information material to the 167 diamond drill holes (38,134.65m) were used for the Mineral Resource estimate. This
information understanding of the exploration results includes 46 historical holes (5,071.8m) not drilled by Adriatic Metals. All these holes were
including a tabulation of the following used to support the Mineral Resource estimate. The Mineral Resource estimate conveys
information for all Material drill holes: the tenor of grade from the drill holes.
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole
collar
o dip and azimuth of the hole
o downhole length and interception depth
o 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.
Data In reporting Exploration Results, weighting No data aggregation methods were applied.
aggregation averaging techniques, maximum and/or
methods minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material
and should be stated.
Where aggregate intercepts incorporate short Not applicable as no data aggregation methods were applied.
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.
The assumptions used for any reporting of metal Equivalent explanations are described in the body of the text.
equivalent values should be clearly stated.
Relationship These relationships are particularly important in Exploration results are not being reported.
between the reporting of Exploration Results.
mineralisation
If the geometry of the mineralisation with The majority of the high-grade mineralisation is hosted within the brecciated dolomitic
widths and
respect to the drill hole angle is known, its unit, which is offset and cut by northwest striking, westerly dipping syn-post mineral
intercept
nature should be reported. faulting. This faulting displaces the mineralised body up to 20 metres in places.
lengths
Thickening of the central portion of the orebody occurs where these faults flexure and
deform. Mineralised widths up to 65 metres true thickness are seen in the central portion
of the orebody.
To date, the massive sulphide mineralisation at Rupice has a defined strike length of 650
metres, with an average true-width thickness of around 20 metres. However,
mineralisation at Rupice still remains open towards the north and down-dip to the south.
Recent drilling by Eastern Mining was mostly inclined at between 70o and 80 o to the
southwest, perpendicular to the deposit strike, and intersected the mineralisation
reasonably orthogonally.
If it is not known and only the downhole lengths No exploration results are reported here.
are reported, there should be a clear statement
to this effect (e.g. ‘downhole length, true width
not known’).
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Diagrams Appropriate maps and sections (with scales) and Relevant maps and diagrams are included in the body of the report.
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.
Balanced Where comprehensive reporting of all Not applicable. All mineralised incepts are being reported.
reporting 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.
Other Other exploration data, if meaningful and No substantive exploration data not already mentioned in the report has been used in
substantive material, should be reported including (but not the preparation of the Mineral Resource estimate.
exploration limited to): geological observations; geophysical
data 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.
Further work The nature and scale of planned further work Further drilling is being undertaken for geotechnical and hydrological purposes, and
(e.g. tests for lateral extensions or depth extension exploration drilling.
extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of The Mineral Resource Estimate previously reported has formed the basis of this Pre-
possible extensions, including the main Feasibility Study, which has examined:
geological interpretations and future drilling
• Mining methods
areas, provided this information is not
commercially sensitive. • Geotechnical aspects
• Hydrology
• Metallurgy
• Plant and infrastructure design
• Transport and shipping
• Environmental studies
• Social impact studies
Additional drilling is recommended to improve geological confidence to upgrade the
resource to higher confidence categories (i.e. from Inferred Mineral Resource to Indicated
Mineral Resource, and from Indicated Mineral Resource to Measured Mineral Resource to
aid in future Ore Reserve estimates (in future Feasibility Studies).
Section 3: Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section)
Database Measures taken to ensure that data has not Data used in the Mineral Resource Estimate was provided as a validated Micromine
integrity been corrupted by, for example, transcription or database, which in turn was sourced from a validated database prepared by Adriatic Metals.
keying errors, between its initial collection and The validation routines were employed to confirm validity of data. Key files (collar, survey,
its use for Mineral Resource estimation geology, assay) were validated to ensure that they were populated with the correct original
purposes. data.
All drill holes were logged to electronic logbooks. All drill hole collar, downhole survey and
geological data are stored on the Virtual Cloud and at various locations including Vares,
Bosnia & Herzegovina and Cheltenham, UK. And is managed by gDat data solutions in an
acQuire database. The database is updated as new data become available.
Data validation procedures used. The resultant database was validated for potential errors in Micromine software using
specially designed processes.
The following error checks were carried out during final database creation:
• Missing collar coordinates.
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• Missing values in fields FROM and TO.

• Cases when FROM values equal or exceed TO ones (FROM≥TO).
• Data availability. The data availability was checked for each drill hole in the tables:
- 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 was verified against source documentation. The surveyed drill holes were
then also verified visually for consistency.
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 Phillip Fox is based on-site in Vares and was responsible for planning and implementation
Competent Person and the outcome of those of the recent drilling programs, overseeing the preparation of the samples and their
visits. dispatch to the various laboratories. Mr. Fox assumes responsibility for the data
components, QA/QC and geological interpretation. Dmitry Pertel 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
A site visit has been undertaken.
why this is the case.
Geological Confidence in (or conversely, the uncertainty of) Sufficient drilling has been conducted to reasonably interpret the geology and the
interpretation the geological interpretation of the mineral polymetallic mineralisation. The mineralisation is traceable between numerous drill holes
deposit. and drill sections.
Interpretation of the deposit was based on the current understanding of the deposit
geology. Each cross section generally spaced 20-30 m apart was displayed in Micromine
software together with drill hole traces colour-coded according to grade values. The
interpretation honoured modelled fault planes and interpretation of main geological
structures. The mineralised structure of the deposit was interpreted and modelled using
core logging data. The low-grade halo domain was interpreted to capture all mineralised
samples, and based on the current understanding of the geological model. The fault zones
were interpreted and modelled using geological logging. Cut-off grades for high grade
domains were 10% for Zn, 3% for Pb, 25% for BaSO4, 1% for Cu, 2.5g/t for Au, and 110g/t
for Ag. All cut-offs selected for interpretation were based on results of classical statistical
analysis. The interpretation was independently reviewed by a consultant geologist.
Nature of the data used and of any assumptions Geological logging in conjunction with assays has been used to interpret the mineralisation.
made. The majority of holes were sampled at 2m intervals, with some more detailed sampling
conducted.
The effect, if any, of alternative interpretations Alternative interpretations are likely to materially impact on the Mineral Resource
on Mineral Resource estimation. estimate on a local, but not global basis.
No alternative interpretations were adopted at this stage of the project.
The use of geology in guiding and controlling Geological logging in conjunction with assays and results of the statistical analysis has been
Mineral Resource estimation. used to interpret the mineralisation. Available historical maps and sections have been used
to guide interpretation.
All internal waste was included into the interpreted mineralised bodies.
The factors affecting continuity both of grade Continuity is affected by the nature of the host rocks, interpreted faults and limits of the
and geology. drill holes.
The Competent Person is satisfied that the geological interpretation is appropriate to
support Mineral Resource estimation.
Dimensions The extent and variability of the Mineral The strike length is about 650m and width up to 250m. The combined thickness of the
Resource expressed as length (along strike or mineralised zones varies from several metres to 65m. Depth below surface is from 0 to
otherwise), plan width, and depth below surface 380 m, which is the lower limit of current drilling.
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to the upper and lower limits of the Mineral The Competent Person is satisfied that the dimensions interpreted are appropriate to
Resource. support Mineral Resource estimation.
Estimation The nature and appropriateness of the The Mineral Resource estimate was based on surface diamond drill core using ordinary
and estimation technique(s) applied and key kriging (OK) to form 5x5x5m blocks. The block model was constrained by wireframes
modelling assumptions, including treatment of extreme modelled based on geology using sectional interpretation. Additional wireframing for each
techniques grade values, domaining, interpolation element for the high-grade domains within these geological wireframes (except for As, Sb
parameters and maximum distance of and Hg) was completed. Weakly mineralised halos and fault zones used geological logging
extrapolation from data points. If a computer and multi-element assay data. The applied cut-off grades for high grade domains were:
assisted estimation method was chosen include
a description of computer software and
parameters used.
Micromine software was used to generate the wireframes and for block modelling
Hard boundaries were used between mineralised lenses at each domain. The drill hole data
were composited to a target length of 2m 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 – 102m along strike, 61m down dip and 31m across
dip.
Interpolation parameters were:
Search pass 1: 2.5m by 2.5m by 2.5m. Minimum samples number - 1, minimum holes – 1,
maximum samples number - 16.
Search pass 1: 1/3 of the variogram log ranges. Minimum samples number - 3, minimum
holes – 2, maximum samples number - 16.
Search pass 2: 2/3 of the variogram log ranges. Minimum samples number - 3, minimum
holes – 2, maximum samples number - 16.
Search pass 3: Full semi-variogram ranges. Minimum samples - 3, maximum samples – 16,
minimum holes 2.
All subsequent search passes: incremented by full semi-variogram ranges in each direction.
Minimum samples – 1, maximum samples – 16, minimum holes - 1.
Block discretisation 2*2*2.
The optimal parent cell size was selected in the course of block modelling based of 20x20m
exploration drilling.
Classical statistical analysis was used to identify grade domains for barite, gold and silver.
The Competent Person is satisfied that estimation and modelling techniques are
appropriate to support Mineral Resource estimation.
The availability of check estimates, previous Previous JORC-compliant Mineral Resources were estimated by CSA Global in July 2019.
estimates and/or mine production records and The current estimate is about 32% higher in tonnage and about 22% lower grades due to
whether the MRE takes appropriate account of the modelling methodology and domaining applied.
such data. Mine production results were not available.
The assumptions made regarding recovery of The Rupice deposit is a silver-gold-zinc-lead-barite deposit. Previous mining and
by-products. beneficiation over a four-year period have shown that a conventional sulphide flotation
method is a suitable recovery method. Metallurgical test work is ongoing to optimise the
process flowsheet.
Estimation of deleterious elements or other non-
As, Sb and Hg have been estimated in the model using their own semi-variogram models
grade variables of economic significance (e.g.
and OK interpolation method.
sulphur for acid mine drainage characterisation).
In the case of block model interpolation, the The average exploration drilling spacing was 20x20m. The selected parent cell size was
block size in relation to the average sample 5x5m (quarter the exploration density). The search was based on the results of geostatistical
spacing and the search employed. analysis with average for all elements long ranges of 102x61x31m.
Any assumptions behind modelling of selective No assumptions were made for selective mining unit, apart from the assumption that the
mining units. deposit is likely to be mined by underground method and that 5x5m parent cell
approximately reflects SMU for underground mining.
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Any assumptions about correlation between Correlation between some variables was very strong (for example, between silver and lead),
variables. but no assumptions were made for the modelling purposes.
Correlation between bulk density and main elements (BaSO4, Pb, Zn and Cu) was used to
calculate bulk density for all model domains except for the combined high-grade domain.
Description of how the geological interpretation Geological interpretation of the mineralised zone, weakly mineralised halo and fault zones
was used to control the resource estimates. was based on the geological logging. When grades within modelled wireframes for the
mineralised zone had mixed populations, high-grade domain was modelled using cut-offs
justified by statistical analysis.
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 mineralised
zone.
Discussion of basis for using or not using grade Classical statistical analysis was carried out for each element and each domain. It was found
cutting or capping. 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:
The process of validation, the checking process Grade estimation was validated using visual inspection of interpolated block grades versus
used, the comparison of model data to drill hole underlying data, and swath plots.
data, and use of reconciliation data if available. 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

The tonnages were estimated on an in-situ dry bulk density basis which includes natural
basis or with natural moisture, and the method
moisture. Moisture content was not estimated.
of determination of the moisture content.
Cut-off The basis of the adopted cut-off grade(s) or The reporting cut-off grade of 50g/t silver equivalent was supported by estimation of
parameters quality parameters applied. 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 Assumptions made regarding possible mining A scoping and on-going preliminary economic assessment studies were performed to
factors or methods, minimum mining dimensions and ensure that there are reasonable prospects for the eventual economic extraction of the
assumptions internal (or, if applicable, external) mining mineralisation, which demonstrated that the deposit is likely to be developed by
dilution. It is always necessary as part of the underground mining method(s). Input parameters were provided by the Company as being
process of determining reasonable prospects for typical for the commodity, mining method and costs for a Balkan silver-lead-zinc mining
eventual economic extraction to consider operation.
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.
Metallurgical The basis for assumptions or predictions A number of flotation tests have recently been carried out on both Rupice and Veovača
factors or regarding metallurgical amenability. It is always (nearby deposit) bulk samples. Preliminary results indicate there is potential to produce Zn,
assumptions necessary as part of the process of determining Pb/Cu and barite concentrates via flotation processes, with good recoveries of all
reasonable prospects for eventual economic constituents reported in this Mineral Resource estimate.
extraction to consider potential metallurgical The test work also indicates that a barite product that meets market specification
methods, but the assumptions regarding requirements of purity, specific gravity, and fineness of particle size can be achieved, which
metallurgical treatment processes and meets the requirements of Clause 49 of the JORC Code.
parameters made when reporting Mineral
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Resources may not always be rigorous. Where This test work remains ongoing.
this is the case, this should be reported with an
The Competent Person is satisfied that metallurgical factors and assumptions were
explanation of the basis of the metallurgical
appropriately considered, to support Mineral Resource estimation.
assumptions made.
Environmental Assumptions made regarding possible waste No detailed assumptions regarding possible environmental impacts to the site area were
factors or and process residue disposal options. It is always considered. The general locality has a number of active mining operations and no
assumptions necessary as part of the process of determining environmental impediments are anticipated.
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.
Bulk density Whether assumed or determined. If assumed,
Bulk densities were determined on drill core every 2m in ore and every 5m in waste. At total
the basis for the assumptions. If determined, the
of 5,864 determinations were used to calculate regression formulas using barite, lead zinc
method used, whether wet or dry, the frequency
and copper grades vs bulk density or to interpolate bulk density values into the combined
of the measurements, the nature, size and
high-grade domain.
representativeness of the samples.
The bulk density for bulk material must have Bulk density determinations adopted the weight in air / weight in water method using a
been measured by methods that adequately suspended or hanging scale. First the core billet was accurately weighed dry (“in air”), the
account for void spaces (vugs, porosity, etc), core billet was removed, and the wire cage fully submerged in water and its tare set to
moisture and differences between rock and “zero” mass. The billet of core was then fully submerged and weighed (“weight in water").
alteration zones within the deposit. 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 No assumptions were made for Bulk Density.
used in the evaluation process of the different The Competent Person is satisfied that density was appropriately considered, to support
materials. Mineral Resource estimation.
Classification The basis for the classification of the Mineral Resource classification was based on confidence in the QA/QC data analysis, geological
Resources into varying confidence categories. 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
mineralised lodes based on 20x20m and 40x40m 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
The classification has taken into account all available geological and sampling information
tonnage/grade estimations, reliability of input
as well as the structural information, and the classification level is considered appropriate
data, confidence in continuity of geology and
for the current stage of this project.
metal values, quality, quantity and distribution
of the data).
Whether the result appropriately reflects the The Mineral Resource estimate appropriately reflects the view of the Competent Person.
Competent Person’s view of the deposit. The Competent Person is satisfied that classification of this Mineral Resource estimate
appropriately reflects the data and interpreted geological controls on mineralisation.
Audits or The results of any audits or reviews of MREs. The current model has not been audited by an independent third party but has been
reviews subject to CSA Global’s internal peer review processes.
Discussion of Where appropriate a statement of the relative Industry standard modelling techniques were used, including but not limited to:
relative accuracy and confidence level in the MRE using • Classical statistical analysis, cut-offs selection.
accuracy/ an approach or procedure deemed appropriate
confidence by the Competent Person. For example, the • Interpretation and wireframing.
application of statistical or geostatistical • Top-cutting and interval compositing.
procedures to quantify the relative accuracy of • Geostatistical analysis.
the resource within stated confidence limits, or,
• Block modelling and grade interpolation techniques.
if such an approach is not deemed appropriate,
a qualitative discussion of the factors that could • Model classification, validation and reporting.
The relative accuracy of the estimate is reflected in the classification of the deposit.
ASX ANNOUNCEMENT
15 October 2020


affect the relative accuracy and confidence of The relative accuracy of the Mineral Resource estimate is reflected in the reporting of the
the estimate. 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 The statement refers to global estimation of tonnes and grade and is suitable for use in a
to technical and economic evaluation. subsequent PFS and further exploration at the deposit.
Documentation should include assumptions
made and the procedures used.
These statements of relative accuracy and No production data is available.
confidence of the estimate should be compared The Competent Person is satisfied that classification of this Mineral Resource estimate
with production data, where available. appropriately reflects the data and interpreted geological controls on mineralisation.
Section 4: Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)
Mineral Resource Description of the Mineral Resource JORC 2020 Resource Estimate, where the Mineral resource is based on ordinary kriging
estimate for estimate used as a basis for the estimation method.
conversion to conversion to an Ore Reserve.
Ore Reserves Clear statement as to whether the The Mineral Resources are inclusive of the Ore Reserves.
Mineral Resources are reported
additional to, or inclusive of, the Ore
Reserves.
Site visits Comment on any site visits undertaken The Competent Person has visited the Vares Silver Project and numerous site visits have
by the Competent Person and the been undertaken by the JORC Resource Competent Person.
outcome of those visits.
If no site visits have been undertaken

indicate why this is the case.
Study status The type and level of study undertaken A Pre-Feasibility Study has been completed to enable Mineral Resource to be converted
to enable Mineral Resources to be to Reserves at +/- 25% accuracy on capital estimates and +/- 25% accuracy on operating
converted to Ore Reserves. costs.
The Code requires that a study to at least Open Pit and underground Mining Contractor rates have been applied. Capex and
Pre-Feasibility Study level has been Processing costs estimated by Axe Valley Mining Consultants have been applied.
undertaken to convert Mineral Resources
to Ore Reserves. Such studies will have
been carried out and will have
determined a mine plan that is
technically achievable and economically
viable, and that material Modifying
Factors have been considered.
Cut-off The basis of the cut-off grade(s) or Cut-off grades are based on comparable Eastern Europe mining costs and the following
parameters quality parameters applied. commodity prices:
• Zn: $2,500/t
• Pb: $2,000/t
• Cu: $6,500/t
• BaSO4: $120/t
• Au: $1,800/oz
• Ag: $22/oz
• Sb: $6,500/t
Mining factors or The method and assumptions used as A Pre-Feasibility level study was performed on the Vares Silver Project to determine the
assumptions reported in the Pre-Feasibility or viability of the Project.
Feasibility Study to convert the Mineral
Resource to an Ore Reserve (i.e. either by No inferred resource was used in the calculation of the reserves.
application of appropriate factors by The UG (for Rupice) and OP (for Veovaca) mining method and assumptions are based on
optimisation or by preliminary or
ASX ANNOUNCEMENT
15 October 2020
detailed design). detailed mine design.
The choice, nature and appropriateness Rupice mining methods have been divided into a Longitudinal Longhole Open Stoping
of the selected mining method(s) and zone (LHOS) and the Transverse Longhole Open Stoping Zone (TLHOS). The proposed
other mining parameters including LHOS zone is positioned from and above the 1,065 level and the TLHOS zone below the
associated design issues such as pre- 1,065 level.
strip, access, etc.
The Veovaca deposit is amenable to conventional open mining methods.
The assumptions made regarding The geotechnical parameters are based drillhole data for Rupice and on previous studies
geotechnical parameters (eg pit slopes, and observations of existing pit slopes at Veovaca.
stope sizes, etc), grade control and pre-
production drilling.
The major assumptions made and Veovaca: Refer to the July 2019 MRE
Mineral Resource model used for pit and
stope optimisation (if appropriate). Rupice: Refer to the August 2020 MRE
The mining dilution factors used. The mining recovery for both Rupice and Veovaca have been estimated at 95% and the
average dilution factors for Rupice and Veovaca are 10.5% and 10% respectively.
The mining recovery factors used.
Any minimum mining widths used. Minimum mining widths at Rupice are =5m
The manner in which Inferred Mineral Approximately 21% of the total resource is inferred, where this is included in the mine
Resources are utilised in mining studies plan it is scheduled as waste dilution and has no Impact on the Project’s NPV.
and the sensitivity of the outcome to
their inclusion.
The infrastructure requirements of the A decline and associated ventilation and dewatering infrastructure is required before the
selected mining methods. UG level accesses can be constructed.
Metallurgical The metallurgical process proposed and Crush, grind and flotation is the proposed metallurgical process, this is the appropriate
factors or the appropriateness of that process to process for a base metals project.
assumptions the style of mineralisation.
Whether the metallurgical process is The process has been successfully applied for many decades across the globe.
well-tested technology or novel in
nature.
The nature, amount and The metallurgical testwork is representative for the part of the Rupice and Veovaca
representativeness of metallurgical test orebodies that is covered in this PFS.
work undertaken, the nature of the
metallurgical domaining applied and the
corresponding metallurgical recovery
factors applied.
Any assumptions or allowances made for The recovery formulae applied to the various product take into account the grades of
deleterious elements. the deleterious elements such as Arsenic and Mercury grades in the plant feed.
The existence of any bulk sample or pilot No bulk sampling nor pilot scale testing was completed for the Vares Silver Project.
scale test work and the degree to which
such samples are considered
representative of the orebody as a
whole.
For minerals that are defined by a Yes

specification, has the ore reserve
estimation been based on the
appropriate mineralogy to meet the
specifications?
Environmental The status of studies of potential Environmental baseline studies performed on the Vares Silver Project have not yet
environmental impacts of the mining identified any hinderances to permitting of the project.
and processing operation. Details of
waste rock characterisation and the
consideration of potential sites, status of
design options considered and, where
applicable, the status of approvals for
process residue storage and waste
dumps should be reported.
ASX ANNOUNCEMENT
15 October 2020
Infrastructure The existence of appropriate Infrastructure to suit a 800ktpa operation is planned to be installed at the Tisovci old
infrastructure: availability of land for process-plant location, 1-2km west of the Veovaca pit. Existing roads between Veovaca
plant development, power, water, and Rupice will be partially used to transport ore. Rail-sidings and railways from Vares to
transportation (particularly for bulk the port of Ploce is expected to be used to transport concentrate.
commodities), labour, accommodation;
or the ease with which the infrastructure
can be provided or accessed.
Costs The derivation of, or assumptions made, Capital costs are based on detailed studies by Axe Valley Mining Consultants.
regarding projected capital costs in the
study.
The methodology used to estimate Operating costs are based on detailed design work by above consultancies.
operating costs.
Allowances made for the content of Penalties have been applied to the various product steams according to the Arsenic,
deleterious elements. Antimony and Mercury grades in the concentrate.
The source of exchange rates used in the The average of the past 12 months average exchange rate (October 2019-September
study. 2020) and rounded up to the second decimal digit.
Exchange Rates Value Source
EUR:USD $0.89
https://www.x-rates.com/average/?from=USD&to=EUR&amount=1&year=2020
CAD:USD $1.35
USD:USD $1.00
AUD:USD $1.48
BAM:USD $1.75
https://www.exchangerates.org.uk/data/currencies/live-bam-usd-exchange-rate
GBP:USD $0.78
Derivation of transportation charges. Transport charges are based on quotes from trucking and railway companies.
The basis for forecasting or source of Treatment and refining charges are based on data from a recognised marketing expert.
treatment and refining charges, penalties
for failure to meet specification, etc.
The allowances made for royalties Allowances have been made for governmental royalties.
payable, both Government and private.
Revenue factors The derivation of, or assumptions made The following head grades have been applied to the study:
regarding revenue factors including head
grade, metal or commodity price(s) • Zn: 4.2%
exchange rates, transportation and • Pb: 2.7%
treatment charges, penalties, net smelter • Cu: 0.4%
returns, etc. • BaSO4: 26.4%
• Au: 1.28g/t
• Ag: 150g/t
• Sb: 0.2%
• As: 0.1%
• Hg: 138ppm
The derivation of assumptions made of Commodity prices have been assumed as above in this section.
metal or commodity price(s), for the
principal metals, minerals and co-
products.
Market The demand, supply and stock situation The Vares Silver Project is expected to produce four concentrates:
assessment for the particular commodity,
consumption trends and factors likely to • Zinc
affect supply and demand into the • Silver-Lead
ASX ANNOUNCEMENT
15 October 2020
future. • Barite
• Pyrite
A customer and competitor analysis
along with the identification of likely These will be sold into transparent and deep-rooted markets. With the possible
market windows for the product. exception of barite, the metal supply from the Project is unlikely to disrupt any supply
chains regionally or globally.
Price and volume forecasts and the basis
for these forecasts. All concentrates are expected to be marketable.
For industrial minerals the customer Various analysts have a bullish outlook on the commodities which Adriatic will produce,
specification, testing and acceptance given the positive outlook for automotive and construction demand globally.
requirements prior to a supply contract.
Economic The inputs to the economic analysis to Inputs have been summarised in the main body of the text.
produce the net present value (NPV) in
the study, the source and confidence of Post-tax NPV = $1,040M as the base case, which has a discount rate of 8% applied.
these economic inputs including Commodity prices applied for the economic analysis are the same for the cut-off grades
estimated inflation, discount rate, etc. above.
Accuracy is at +/-25% on capex and +/-25% on opex. Initial capex = $173M, LOM capex
= $211M. Opex (AISC) = $9.5/oz Ag Eq
FX Rates used:
BAM:USD: $1.75
GBP:USD: $0.78
NPV ranges and sensitivity to variations

in the significant assumptions and Post-Tax Sensitivity Analysis
inputs. $1,600
$1,400
$1,200
POST-TAX NPV (8%) (US$ M)
$1,000
$800
$600
$400
$200
–
(20.0%) (10.0%) -- 10.0% 20.0%
Social The status of agreements with key No agreements have been made with key stakeholders. Part of Company’s ESG policy, is
stakeholders and matters leading to to maintain continued communication with the leaders of the local communities and
social licence to operate. hold regular Public Liaison Committee meetings with the communities.
Other To the extent relevant, the impact of the No material risks have been identified for the Vares Silver Project.
following on the project and/or on the
estimation and classification of the Ore
Reserves:
Any identified material naturally

occurring risks.
The status of material legal agreements No marketing arrangements have been made.
and marketing arrangements.
The status of governmental agreements It is expected that all governmental and statutory approvals will be received within the
and approvals critical to the viability of anticipated timeframe. The Company has well established links and relations with all
the project, such as mineral tenement levels of the BiH government.
status, and government and statutory
approvals. There must be reasonable
grounds to expect that all necessary
Government approvals will be received
within the timeframes anticipated in the
Pre-Feasibility or Feasibility study.
Highlight and discuss the materiality of
any unresolved matter that is dependent
on a third party on which extraction of
the reserve is contingent.
ASX ANNOUNCEMENT
15 October 2020
Classification The basis for the classification of the Ore The reported Ore Reserves are classified as Probable.
Reserves into varying confidence
categories.
Whether the result appropriately reflects The Probable Ore Reserves are consistent with the CP’s view of the Project at this stage
the Competent Person’s view of the of the PFS.
deposit.
The proportion of Probable Ore Reserves There are no Probable Ore Reserves derived from Measured Resources.
that have been derived from Measured
Mineral Resources (if any).
Audits or reviews The results of any audits or reviews of Internal reviews have been conducted with no issues being identified.
Ore Reserve estimates.
Discussion of Where appropriate a statement of the Confidence in the reserve is high due to the conventional underground and open-pit
relative accuracy/ relative accuracy and confidence level in mining methods and processing techniques being applied.
confidence the Ore Reserve estimate 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 reserve
within stated confidence limits, or, if such
an approach is not deemed appropriate,
a qualitative discussion of the factors
which could affect the relative accuracy
and confidence of the estimate.
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.
Accuracy and confidence discussions The location of the Vares Silver Project is within easy road access and the Concession is
should extend to specific discussions of in good standing with the governing authority and there is no known impediment to the
any applied Modifying Factors that may Concession remaining in force until 2038 (25 years), subject to meeting all necessary
have a material impact on Ore Reserve reporting requirements.
viability, or for which there are remaining
areas of uncertainty at the current study No modifying factors are expected to be significantly changed prior to mining.
stage.
It is recognised that this may not be

possible or appropriate in all
circumstances. These statements of
relative accuracy and confidence of the
estimate should be compared with
production data, where available.

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15 October 2020

EXCEPTIONAL PRE-FEASIBILITY STUDY RESULTS FOR

• 11.1 Mt of Probable Ore Reserves mined over a 14-year mine life,

Ms Sanela Karic • Metallurgical domaining of the orebody

• Based on the positive outcome of the Pre-Feasibility Study, work is

Adriatic Metals Plc (ASX:ADT, LSE:ADT1) ("Adriatic" or the "Company") is pleased

FORWARD LOOKING STATEMENTS

PRODUCTION TARGETS CAUTIONARY STATEMENT

KEY PROJECT METRICS

Table 2: Annual EBITDA, Revenue Split and Production of Payable Products

Ag Au Zn Pb Cu BaSO4 REVENUE EBITDA

VARES SILVER PROJECT PRE-FEASIBILITY SUMMARY

Mining Ore Reserve 11.12 Mt

12 MW of installed capacity at Veovaca to be provided by JP

Table 3b: Summary of Overall Metal Recovery

Zinc Ag/Pb Pyrite

Table 3c: Summary of Metal Payability

Zinc Ag/Pb Pyrite

Capital Cost Estimate US$ M

Table 5: Initial Capital Costs

Initial Capital Cost Estimate US$ M

Table 6: LOM Average Operating Costs

Metric Unit Value

Metric Unit Value

Rupice Mineral Resources, August 2020

Table 9: Veovaca MRE by Classification

Veovaca Mineral Resources, July 2019

Vares Silver Project Ore Reserve, October 2020

Rupice Underground Mine

Figure 1: Mine Design (View 1)

Figure 2: Mine Design (View 2)

Vertical raises lin m/month 25 45 45 1

Note 1: Crews per Shift. Note 2: lin = linear

Equipment type Average Requirement Peak Requirement

Rupice UG Labour Requirements Peak Requirement

Veovaca Open Pit Mine

mamsl mamsl m m3 x 1000 t/m3 Kt

TMF* Buttress 920 870 50 269 1.86 500

Water Storage Dam 1,003 972 31 86 1.86 160

WRD West 1,024 916 108 1,775 1.86 3,300

WRD South 1,056 916 140 2,516 1.86 4,680

Total Rockfill Required 6,645 1.86 8,640

METALLURGY & PROCESSING

Figure 3: Overall Process Flowsheet

Process Design Criteria

Table 15: Process Design Criteria

Criteria Unit Value

Operating Days per Year d 365

Operating Availability – Crushing h/y 4,380

Operating Availability – Grinding and Flotation h/y 8,000

Operating Availability – Concentrate and Tailings Handling h/y 7,333

Operating Availability - Paste Plant h/y 8,000

Design Throughout – Crushing t/h (dry) 200

Design Throughput – Milling and Flotation t/h (dry) 100

Design Throughput – Bulk Concentrate Filtration t/h (dry) 18

Design Throughput – Zinc Concentrate Filtration t/h (dry) 24

Design Throughput – Barite Concentrate Filtration t/h (dry) 42

Design Throughput – Paste Plant t/h (dry) 89