E2 Metals announced that drilling has commenced at the El Rosillo project, located in the western Rio Negro Province of Argentina. The Rio Negro Province contains the northern portion of the Somuncura Massif, a large volcanic province that is geologically similar to the Deseado Massif in Santa Cruz, but has been subject to far less modern exploration. The Somuncura Massif is host to Pan American Silver's Navidad deposit, the large undeveloped silver deposit in the world with over 750 million ounces of silver resources.

The Company has consolidated four large districts in the western part of the Rio Negro province centered on the Vista Alegre, Ofelia, Paredes and El Rosillo properties respectively. Initial reconnaissance mapping and sampling by E2 in March 2021 defined 12 gold mineralised prospects of possible Intrusion Related Gold ("IRG") affinity over a regional strike length extending about 200km to the north of El Rosillo. Trenching to date has comprised 115 trenches for 3974m.

This includes a combination of hand dug and mechanically excavated trenches with lengths that range from 9m to 93m. Trenches were designed to test to main target types: First-order gold geochemical anomalies in composite rock chip samples that were initially collected on a nominal 20m by 40m sample grid; Outcropping vein structures and their covered extensions as prime geological targets with gold mineralisation undetected by the composite rock chip samples. In a general sense, the best mineralised structures defined in trenches coincide with the high anomalies in the composite rock samples, confirming the methods effectiveness in vectoring to blind veins that do not outcrop.

Four vein structures have returned >10 gram-meters Grade Thickness (GT) trench intercepts and are prioritised for drill testing on sections spaced 75m apart (GT is calculated as gold grade x thickness). West-northwest trending mineralised structure outcropping over 100m strike, open to the east-southeast and west-northwest under shallow gravel cover ROT-004: 25m at 2.9gpt Au (72 GT); ROT-023: 10.7m at 3.7gpt Au (39 GT); ROT-024: 1.9m at 184gpt Au, 55gpt Ag (350 GT).