Balkan Mining and Minerals : SECURES CANADIAN LITHIUM PROJECT

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ASX ANNOUNCEMENT

4 July 2022

BALKAN SECURES CANADIAN LITHIUM PROJECT

HIGHLIGHTS

• BMM secures exclusive option to acquire up to 100% of Gorge lithium project located in the Georgia Lake Area, Thunder Bay North Mining District of Ontario, Canada.
• The Project includes two prospective areas identified by historical works which are yet to be systematically explored, Nelson and Koshman, in addition to the wider Project area. Five grab samples have been historically collected and analysed for lithium returning values up to 3.22% Li2O (and an average of 2.24% Li2O).
• The Project is prospective for spodumene pegmatite mineralisation.
• The tenements comprising the Project are part of the larger Georgia Lake pegmatite district which is known to host late-stage pegmatite mineralised deposit types that contain rare elements including lithium, beryllium, tantalum, niobium and tin, including Rock Tech Lithium Inc's (TSX-V: RCK) Georgia Lake project.
• The Project is well located close to rail networks and a major port and is accessible by road from Thunder Bay, Ontario.
• The option agreement is subject to an exclusive 45 day due diligence period to allow BMM to conduct a detailed review of historic exploration results and conduct its own site visit to evaluate the project in a view to the parties agreeing a definitive option and earn-in agreement.
• In conjunction with the transaction, BMM is to raise up to $1.5 million. Sixty Two Capital has been appointed as lead manager to the capital raising.
• BMM intends to seek shareholder approval in respect of the transaction and capital raising in August 2022.

Balkan Mining and Minerals Ltd (BMM or the Company) (ASX: BMM) is pleased to announce

it has secured an exclusive option to acquire up to 100% of the Gorge Lithium exploration project located in the Georgia Lake Area, Thunder Bay North Mining District of Ontario, Canada (the

"Gorge Lithium Project" or "Project").

The Gorge Lithium Project is located approximately 175km to the northeast of the City of Thunder Bay. The Project comprises of 7 active multi-cell mining claims covering a total area of approximately 20.8km2 and is located within the larger Georgia Lake pegmatite district which hosts potential for the discovery of lithium bearing pegmatites.

The Project area is accessible by bitumenised highways and dirt roads from Thunder Bay, proximate to railway networks with an international airport located at Thunder Bay.

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Balkan Mining and Minerals Limited ABN 67 646 716 681

Level 9, 182 St George's Terrace, Perth WA 6000

T: [phone] E:[e-mail] www.balkanmin.com

For personal use only

ASX ANNOUNCEMENT

4 July 2022

The Port of thunder Bay is a major facility that ships a number of commodities and general cargo via the Great Lakes.

Figure 1 - Location of the Gorge Lithium Project

Historical workings carried out in 1955/56 identified up to 40 lithium and beryllium bearing pegmatites exposed in outcrop over an area of approximately 600km2, referred to as the larger Georgia Lake Area.

Follow up field work was carried out in the larger Georgia Lake Area during 2008 with a focus on identifying rare-element pegmatite deposits. During this period, a new pegmatite group referred to as "Gathering Lake Pegmatite Group" was discovered containing both albite-spodumene-type and beryl-type pegmatites.

The most recent field program was completed in 2018 when the presence of lithium bearing mineralisation was confirmed on the Project at the Koshman and Nelson occurrences (Figure 2

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Balkan Mining and Minerals Limited ABN 67 646 716 681

Level 9, 182 St George's Terrace, Perth WA 6000

T: [phone] E:[e-mail] www.balkanmin.com

ASX ANNOUNCEMENT

For personal use only

4 July 2022

and 3). Five grab samples were collected and analysed for lithium and lithium values returned up to 3.22% Li2O (and an average of 2.24% Li2O).

Figure 2 - Location of the Project exploration claims over topo map

The Thunder Bay region of Ontario has been the focus of lithium pegmatite exploration works with the delineation of hard rock lithium deposits including Rock Tech Lithium Inc's Georgia Lake project in 2021, and Imagine Lithium Inc's (TSX.V ILI) Jackpot Lithium project and works carried out by Ulta Lithium Inc (TSX.V-ULT) Georgia Lake and Forgan Lake Projects, to name a few.

BMM will have up to 45 days to conduct exclusive due diligence on the group of tenements comprising the Gorge Lithium Project during which time BMM intends to conduct a historic data review on all previous exploration and conduct field reconnaissance work to evaluate the project's prospectivity and enter into a definitive option and earn-in agreement with Ombabika.

Project Geology

The Georgia Lake area is located within the Quetico Subprovince of the Superior Province of Ontario Canada. The Quetico Subprovince is bounded by the granite-greenstone Wabigoon Subprovince to the north and Wawa Subprovince to the south. The Quetico Subprovince is composed of predominantly metasediments consisting of wacke, iron formation, conglomerate, ultramafic wacke and siltstone, which deposited between 2.70 and 2.69 Ga. The igneous rocks in the Quetico Subprovince include abundant felsic and intermediate intrusions, metamorphosed rare mafic and felsic extrusive rocks and an uncommon suite of gabbroic and ultramafic rocks.

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Balkan Mining and Minerals Limited ABN 67 646 716 681

Level 9, 182 St George's Terrace, Perth WA 6000

T: [phone] E:[e-mail] www.balkanmin.com

ASX ANNOUNCEMENT

4 July 2022

For personal use only

Figure 3 - Location of the Project exploration claims over geological map

There is an abundance of pegmatites close to and within the large masses of granitic rocks. A regional zoning is apparent and a genetic association of pegmatites and granite is indicated. The pegmatites occur in two geometries: as irregular-shaped bodies and as thin veins and attenuated lenses. The irregular bodies of pegmatite are intimately associated with the granite bodies often within a few hundred feet of the contact zone. They typically are medium- to coarse-grained, up to very coarse-grained and are made up of quartz, microcline, perthite and little muscovite. These would be classified as potassic pegmatites. Accessory minerals include biotite, tourmaline and garnet.

The pegmatite veins and lenses can be subdivided into rare-element pegmatites and granitic pegmatites. The rare-element pegmatites are of economic significance and they contain microcline or perthite, albite, quartz, muscovite and spodumene and minor amounts of beryl, columbite-tantalite and cassiterite. The granitic pegmatites are like the irregular pegmatites described above except that they contain more abundant plagioclase. Some of the pegmatites are parallel to the foliation or bedding of the metasediments, whereas others occur in joints in either the metasediments or granite. Contacts are usually sharp and, except where veins cut granitic rocks, often found to be marked by a thin border zone of aplite or granitoid composition.

1. few pegmatites are internally zoned with mica-rich or tourmaline-rich rock along or close to the walls and quartz cores.

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Balkan Mining and Minerals Limited ABN 67 646 716 681

Level 9, 182 St George's Terrace, Perth WA 6000

T: [phone] E:[e-mail] www.balkanmin.com

For personal use only

ASX ANNOUNCEMENT

4 July 2022

Key Terms and Conditions of the Transaction

The Company has entered into an exclusive option agreement with Ombabika Group Inc (Ombabika) (an entity incorporated in Ontario, Canada) under which it has a right to acquire up to 100% of the Gorge Lithium Project on the following key terms and conditions:

1. Exclusivity Fee: BMM has agreed to pay a AUD$25,000 option exclusivity fee (the "Exclusivity Fee") to Ombabika in consideration for Ombabika granting BMM an exclusive right to undertake due diligence on Ombabika and the Gorge Lithium Project with a view to entering into a definitive option and earn-in agreement ("Option Agreement") during the Exclusivity Period (defined below).
2. Exclusivity Period: The exclusivity period ends on the date that is the earlier to occur of:
3. 1. 45 days after the date of the Term Sheet (or such later time period as is agreed between the parties); and
   2. execution of the Option Agreement,

(the "Exclusivity Period").

1. Earn-in: Subject to satisfaction of the Conditions (defined below), BMM (or its subsidiary nominee) will have the right to earn up to an 100% interest in the Gorge Lithium Project over a 4 staged earn-in(Earn-In) as follows:
2. 1. Acquisition of 25% interest: BMM will acquire an initial 25% interest in the Gorge Lithium Project (Initial Interest) by:
   2. 1. making a cash payment of AUD$50,000 to Ombabika within 5 days of execution of the formal option and earn-in agreement ("Agreement Signing Date");
      2. funding AUD$100,000 to complete initial field work program focusing on high grade dykes within six months of the Agreement Signing Date; and
      3. issuing AUD$50,000 worth of shares to Ombabika, with the number of shares to be calculated based on the volume weighted average price of BMM shares, calculated over the 10 trading days before the date of issue of the shares.
   3. Acquisition of 50% interest: BMM will acquire a further 25% interest in the Gorge Lithium Project (such that it holds a 50% interest) (50% Interest) by:
   4. 1. making a cash payment of AUD$60,000 on or before the date that is 12 months after BMM (or its subsidiary nominee) earns the Initial Interest;
      2. funding exploration works of at least AUD$250,000 on or before the date that is 12 months after BMM (or its subsidiary nominee) earns the Initial Interest; and
      3. issuing AUD$100,000 worth of shares to Ombabika, based on the volume weighted average price of BMM shares, calculated over the 10 trading days before the date of issue of the shares.
   5. Acquisition of 75% interest: BMM will acquire a further 25% interest in the Gorge Lithium Project (such that it holds a 75% interest) (75% Interest) by:

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Balkan Mining and Minerals Limited ABN 67 646 716 681

Level 9, 182 St George's Terrace, Perth WA 6000

T: [phone] E:[e-mail] www.balkanmin.com