Adriatic Metals PLC - VARES PROJECT UPDATE

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) ('Adriatic' or the 'Company') is pleased to provide an update on the construction activities and drilling at its flagship Vares Project in Bosnia & Herzegovina ('Project' or 'Vares Project').

Paul Cronin, Adriatic's Managing Director and CEO commented: 'I am pleased to report that the Vares Project remains on schedule and on budget with first concentrate production planned for Q3 2023. Today the Project passed a significant milestone with 50% of project construction now complete. In addition, with 76% of the total construction capital committed, we will continue to address any remaining inflationary and budget concerns. 'In addition to the successful Project development, we are also approaching completion of the yearlong confirmation and definition drilling programme at Rupice with exploration drills continuing to step-out along the Rupice Northwest extension. Both programmes are anticipated to increase the life of mine, as all holes have intercepted mineable thicknesses of massive and semi-massive sulphides. 'Our aim is to build a company - and not just a project. We are focusing Adriatic's zero-harm philosophy, prioritising the health and safety of our employees, contractors and host communities. There has been an introduction of new standards, systems and processes, with a particular focus on contractor management. 'With both the increasing levels of employment and the implementation of our community development plan we are delighted to see the positive economic impacts in the nearby town of Vares and the surrounding communities.'

Haul Road, Rail Head Operations and Port

The 24.5km Haul Road development remains on target to connect Rupice and Vares ahead of first ore delivery requirements in Q3 2023. The Haul Road is split into 5 'Lots', allowing for simultaneous construction by multiple civil works contractors.

Haul Road LOT 1: contractor completed 2 km of the 5 km section.

Haul Road LOT 2: construction permit obtained with felling of trees commenced in November.

Construction contract has been awarded.

Haul Road LOT 3: urban planning permit obtained. Detailed engineering project commenced in September. This will be followed by the construction permit application.

Haul Road LOT 4: geotechnical drilling completed within the vicinity of the Smreka Lake. The geotechnical study is scheduled for completion by the end of the November. The detailed 7 May 2019 engineering project is expected to be completed by the end of January, followed by the construction permit application.

Haul Road LOT 5A (existing road): winter maintenance preparation is complete. LOT 5B: contract has been awarded and tree felling commenced.

A tender has been issued for the Haul Road and rail head fleet operator which will be awarded by the 2022. This tender includes provision for vehicle tracking and telemetry specifications. The detailed engineering plan required to commence construction of Vares Majdan rail head facilities is underway with construction to commence in Q1 2023. The existing framework agreements with FBiH Railways have been updated to full-service agreements. These full-service agreements are required for operations and for FBiH Railways to commence refurbishment of the 25km dedicated rail from Vares Majdan to Podlugovi, where repair is required. From Podlugovi, which is south of Breza, the rail connects to the wider domestic Bosnian railway network. Preliminary inspection work has been undertaken on the stretch of railway line from Vares to Dabravine. An inspection visit of the port at Ploce is taking place in December to agree a schedule of work required ahead of first delivery of concentrate.

Activities with Alfa Energy have continued, including work on sustainability strategy and calculation expectations of Greenhouse Gases (GHG) during construction works and predictions for the operational phase. Streamlined Energy and Carbon Reporting data collection for 2022 is also in progress. Alfa Energy has also commenced preparing the Life Cycle Assessment (LCA) for the operational phase and this is expected to be completed in July 2023. As Adriatic moves towards developing a Net Zero strategy, the team is working together with Alfa Energy to determine the location of sites suitable for renewable energy projects. Adriatic recently signed an MoU with Norwegian renewable energy supplier, Emergy, for cooperation on the development of a 30 MW solar facility for direct supply to the Vares Processing Plant. Adriatic has commenced work on its first Sustainability Repor,t which is planned for release in Q2 2023, and data preparation for the report is in progress. Alfa Energy will provide inputs including GHG, LCA, and positive steps to reach net zero, and data collection is in progress. Over the past few months, the Community Development Plan has been finalised and activities are underway alongside regular communication with community representatives. In October 2022, the two-year term for members of the Public Liaison Committee (PLC) came to an end. New members have been selected, with representatives from government and non-governmental institutions from Vares, and neighbouring municipalities, Breza and Kakanj. The first meeting of the newly appointed PLC was held on 9 November 2022. The Adriatic Foundation has supported local projects related to the environment, such as support for the local fishermen association to improve fish stocks and for the local hikers' association to install solar power panels on a mountain lodge that was previously without electricity. In November 2022, the Adriatic Foundation also invited submissions of additional projects related to environmental protection.

Contact:

Adriatic Metals PLC

Paul Cronin

Klara Kaczmarek Via Buchanan

Buchanan

Tel: [phone]

Bobby Morse

Oonagh Reidy

E: [e-mail]

Citadel Magnus

Cameron Gilenko

Tel: [phone]

Canaccord Genuity Limited

Joint Corporate Broker

Jeremy Dunlop

Australia

Tel: [phone]

James Asensio

UK

Tel: [phone]

RBC Capital Markets

Joint Corporate Broker

James Agnew

Jamil Miah

Tel: [phone]

Stifel Nicolaus Europe Limited

Joint Corporate Broker

Ashton Clanfield

Callum Stewart

Tel: [phone]

ABOUT ADRIATIC METALS

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) is a precious and base metals developer that is advancing the world-class Vares Project in Bosnia & Herzegovina, as well as the Raska Project in Serbia. The Vares Project is fully funded to production, which is expected in Q3 2023. The 2021 Project Definitive Feasibility Study boasts robust economics of US$1,062 million post-tax NPV8, 134% IRR and a capex of US$168 million. Concurrent with ongoing construction activities, the Company continues to explore across its highly prospective 42km2 concession package. There have been no material changes to the assumptions underpinning the forecast financial information derived from the production target in the 19 August 2021 DFS announcement and these assumptions continue to apply and have not materially changed. Adriatic Metals is not aware of any new information or data that materially affects the information included in the announcement of the updated Mineral Resource Estimate announced on 1 September 2020 and all material assumptions and technical parameters underpinning the Mineral Resource Estimate continue to apply and have not materially changed

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