An auger drilling program on PhosCo's Zeflana Project (Zeflana or the Project) in northern Tunisia commenced in October 2022. The drilling program aim to test target areas that are considered highly prospective due to the following: Highly anomalous zinc and lead from soil sampling of transported cover conducted by OZ Minerals in 2008, Along strike from the Sidi Bou Aouane zinc-lead deposit mined in the early 20th century, Within a region that contain many Mississippi Valley Type (MVT) zinc-lead deposits, Gravity high, with similar characteristics to the historic Sidi Bou Aouane mine approximately to the north-east; and, Nearby historical workings. The rig has drilled 13 of a planned 25-hole program.

Holes are being drilled using a track mounted auger drill at notional 200m intervals across mineralised trends or geophysical anomalies. They will be drilled to refusal and an end-of-hole samples collected. Zeflana comprises three wholly owned exploration permits covering 78km2 which were granted in 2018 and 2019.

PhosCo identified Zeflana's exploration potential on the basis of historical work, and the in-country experience and knowledge of the PhosCo technical team. The Project sits within the Atlas Zinc-Lead belt that has an ancient history of base metal mining stretching back to Phoenician and Roman times though modern exploration has been very limited. The most extensive exploration in Tunisia occurred in the period between 2004 and 2008 by companies including Albidon Ltd. in joint venture with Zinifex Ltd, and Maghreb Minerals.

The zinc-lead deposits of the Atlas belt are broadly of MVT, low-temperature carbonate- replacement deposits formed within the Mesozoic-aged broad carbonate shelf sedimentary sequence deposited on the southern margin of the Tethys Ocean. Most deposits formed during collision, uplift and subsequent extension related to the Atlas orogeny. This style of mineralisation is known to form some very large deposits globally.

Evidence of historical base metals mining has been identified on the Project at the Sidi Abdullah prospect, where several mine shafts and adits were discovered. The current program aims to drill through the transported cover and take more representative geochemical samples proximal to the bedrock.