Historic Mineral Resource Estimate

The state geological survey reported a resource estimate for the Kizevak, Sastavci and Karadak deposits in 1994 shown in the table below. This data presents Tethyan with immediate drill targets and further work including soil sampling, mapping and geophysical surveys will be completed to generate additional exploration targets.

The historical resource estimate was derived from the “Report on exploration for lead and zinc at the Kizevak-Karadak area in 1994” dated 1995 and authored by Mr B. Rudulović (Izveštaj o istraživanju olova i cinka u području Kiževak - Karadak u 1994. godini). Yugoslav GKZ mineral resource estimates were always stated as “reserves” and classified according to the A+B+C1+C2 or “alphabetical” classification, which was derived from the Russian system and is still applied throughout many countries in southeast Europe. The reserves had to be approved by the official Commission for Ore Reserves. The A, B, C1 and C2 categories reflect the levels of confidence in the actual tonnage exploited from a reserve, with confidence levels being - 95%, 80%, 70% and 35% respectively. Henley (2004) and others have evaluated the alphabetical classification system with respect to the compliant codes in Canada and Australia, and concluded that A+B is comparable to “measured”, C1 to “indicated” and C2 to “inferred” in internationally acceptable codes for reporting resources. However, these comparisons are only an approximation, and cannot be considered as equivalents.

Adriatic Metals is not treating the foreign estimate as current mineral resources or reserves and considers the foreign estimate to represent an exploration project that requires verification. The foreign estimate is considered to be a useful guide to exploration but the Company is not treating the foreign estimate as current mineral resources or ore reserves as defined by the JORC Code. The Company has reviewed and digitised original hard copy drill data, geology logs and assay data, but has not had access to drill core or core photographs; descriptions of sampling, sample preparation or analytical methodology; quality control data; core recovery data; downhole or collar survey data; or sample security information. The foreign estimate was based on the results of core drilling and underground sampling completed by the Geoinstitut between 1973-1994. It was estimated using the polygonal method assuming an open pit mining scenario and prevailing metal prices at the time. To verify the foreign estimate as mineral resources in accordance with Appendix 5A (JORC Code), the Company intends to perform geological mapping, geophysical surveys and core drilling. An initial core drilling programme in 2020, was done to verify the presence and grade of mineralisation, and the results will be used to plan additional exploration programs to facilitate future mineral resource estimation in accordance with the JORC Code, if warranted.

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