Prospech : Final Drilling Results - Zemplin Silver - Phase 2

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30 June 2022
	FINAL DRILLING RESULTS - ZEMPLIN SILVER - PHASE 2
	 Zemplin Phase 2 drilling has completed six holes for 2,050 metres with results
For personal use	up to 0.5m @ 516 g/t Ag
 Tested strike and depth potential of previously discovered, high-grade
mineralisation (up to 1,220 g/t silver)
 Results now reported for holes CZDD007 to CZDD010

Drilling was designed to test the strike and depth potential of a fully preserved

silver and base metal mineralised system.

The Directors of Prospech Limited ('Prospech' or 'the Company') (ASX: PRS) are pleased to advise that Phase 2 drilling has been completed at the Zemplin silver-lead-zinc prospect within the Cejkov- Zemplin exploration licence, located in the Eastern Slovakian neovolcanic belt.

Level 2, 66 Hunter Street, Sydney NSW 2000 Australia

1. [phone] F: [phone]
2. 1. [e-mail]

This program follows Prospech drilling in April 2021, which intersected over 40 epithermal veins hosted within zones of hydrothermally altered volcanics. The Zemplin structure consists of parallel zones which remain open to the northwest and southeast. The main silver zone is now interpreted as being a narrow series of parallel structures.

Results from the Phase 2 drilling include:

	CZDD007:	0.5m	@ 98 g/t Ag from 103.5m
		0.5m	@ 191 g/t Ag from 171.0m
	CZDD008:	1.0m	@ 21 g/t Ag from 269.0m
		5.0m	@ 7 g/t Ag and 0.31 g/t Au from 285.0m
	CZDD009:	1.0m	@ 42 g/t Ag from 180.8m
only		0.5m	@ 23 g/t Ag and 1.35 g/t Au from 194.0m
		0.5m @ 516 g/t Ag and 0.74 g/t Au from 180.8m
	CZDD010:	1.0m	@ 34 g/t Ag and 0.17 g/t Au from 140.0m

Previously reported results from the Phase 1 drilling at Zemplin include:

use		CZDD001:	3.0m	@ 136 g/t Ag from 59.0m
		and	4.5m	@ 147 g/t Ag from 85.3m
		including	2.3m	@ 240 g/t Ag from 87.5m
		CZDD002:	6.0m	@ 30 g/t Ag from 111.0m
		CZDD003:	6.0m	@ 117 g/t Ag from 94.0m
personalFor		including	1.8m	@ 291 g/t Ag from 97.2m
	CZDD004:	4.4m	@ 34 g/t Ag, from 49.6m
	and	4.3m	@ 201 g/t Ag from 92.5m
		including	0.5m	@ 1,220 g/t Ag from 92.5m
		CZDD005:	0.35m @ 61 g/t Ag from 93.65m
			1.5m	@ 33 g/t Ag from 118m
			1.0m	@ 148 g/t Ag and 0.46 g/t Au from 118m
		CZDD006:	3.0m	@ 24 g/t Ag from 140m
			5.0m	@ 8 g/t Ag and 0.23 g/t Au from 303m

A high grade >500 g/t Ag zone is open, albeit narrow in CZDD009.

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Logging

Prospech Managing Director Jason Beckton comments:

"An open, high grade zone, albeit narrow, at the Zemplin prospect epithermal vein system has been discovered in CZDD009 which is above the magnetic zone as currently interpreted and partially tested by CZDD010. Further drilling along strike from this high grade zone, to the south west of the Zemplin project, will be evaluated in conjunction with drilling results from the current drilling program at the Hodrusa project."

onlyJason Beckton Managing Director Prospech Limited [phone]

This announcement has been approved by the Managing Director, Jason Beckton.

For further information, please contact:

useunder consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Beckton consents to the inclusion in this Report of the matters based on the information in the form and context in which it appears.

Competent Person's Statement

The information in this Report that relates to Exploration Results is based on information compiled by Mr Jason Beckton, who is a Member of the Australian Institute of Geoscientists. Mr Beckton, who is Managing Director

of the Company, has sufficient experience which is relevant to the style of mineralisation and type of deposit

pjn11282

JORC Code, 2012 Edition - Table 1 Zemplin Silver Prospect Drilling

Section 1 Sampling Techniques and Data

	Criteria	JORC Code explanation	Commentary
personal	Sampling	 Nature and quality of sampling (eg cut	 Rock chip grab samples not reported in this report
techniques	channels, random chips, or specific specialised	were collected from outcrops, spoil heaps and
	industry standard measurement tools	accessible surface and underground workings of quartz
	appropriate to the minerals under investigation,	veins, and zones of silicification, within Neogene
	such as down hole gamma sondes, or	volcanics under the supervision of a qualified geologist.
	handheld XRF instruments, etc). These	 Sample locations were surveyed with a handheld GPS
	examples should not be taken as limiting the	and marked into sample books.
	broad meaning of sampling.
		 Include reference to measures taken to ensure
		sample representivity and the appropriate
		calibration of any measurement tools or
		systems used.
		 Aspects of the determination of mineralisation
		that are Material to the Public Report.
	Drilling	 Drill type (eg core, reverse circulation, open-	 Diamond drilling HQ3 size triple tube.
	techniques	hole hammer, rotary air blast, auger, Bangka,
		sonic, etc) and details (eg core diameter, triple
		or standard tube, depth of diamond tails, face-
		sampling bit or other type, whether core is
		oriented and if so, by what method, etc).
	Drill sample	 Method of recording and assessing core and	 Core is measure in the triple tube split before laying in
Forrecovery	chip sample recoveries and results assessed.	the core boxes to ensure minimum disturbance and
		 Measures taken to maximise sample recovery	most accurate calculation of core recoveries.
		and ensure representative nature of the	 Overall core recoveries have been very high at 98%.
		samples.	 Any relationship between core recovery and grade
		 Whether a relationship exists between sample	cannot be determined at this time, but due to the high
		recovery and grade and whether sample bias	core recovery, bias is considered very unlikely.
		may have occurred due to preferential loss/gain
		of fine/coarse material.

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc)

• The complete core is logged in detail by qualified geologists. Core is photographed wet and dry. All core is oriented. Detail structural measurements are collected. Core logging is a combination of qualitative and quantitative information.

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For personal use only

Criteria		JORC Code explanation		Commentary
		photography.
	 The total length and percentage of the relevant
		intersections logged.
Sub-sampling		If core, whether cut or sawn and whether		Approximately 1 to 2 Kg of material from each rock chip
techniques and		quarter, half or all core taken.		was sent to the laboratory for analysis.
sample		If non-core, whether riffled, tube sampled,		All sampling done under supervision of a qualified
preparation		rotary split, etc and whether sampled wet or		geologist.
		dry.		Core is manually split in to 2 equal halves using a
	 For all sample types, the nature, quality and		diamond saw. The core is split along the core
		appropriateness of the sample preparation		orientation reference line, where available.
		technique.		Half-core is considered to be a high-quality and very
	 Quality control procedures adopted for all sub-		representative method of sample.
		sampling stages to maximise representivity of		Sample lengths are nominally 1 metre but vary to
		samples.		honour geological contacts.
	 Measures taken to ensure that the sampling is
		representative of the in situ material collected,
		including for instance results for field
		duplicate/second-half sampling.
	 Whether sample sizes are appropriate to the
		grain size of the material being sampled.
Quality of assay		The nature, quality and appropriateness of the		Samples are stored in a secure location in Companies
data and		assaying and laboratory procedures used and		storage facilities and transported to the ALS laboratory
laboratory tests		whether the technique is considered partial or		in Romania for sample preparation of fine crush, riffle
		total.		split and pulverizing of 1kg to 85% < 75μm.
		For geophysical tools, spectrometers, handheld		Pulps are analyzed by ALS Romania using method
		XRF instruments, etc, the parameters used in		code ME-ICP61, a 33 element determination using a
		determining the analysis including instrument		four acid digestion and 30 gram charge fire assay with
		make and model, reading times, calibrations		AA finish (Au-AA25) for gold. Ore grades are analysed
		factors applied and their derivation, etc.		by OG62 - 4 acid digestion method for each element
	 Nature of quality control procedures adopted		when identified.
		(eg standards, blanks, duplicates, external		Where Au repeatability is observed or where visible
		laboratory checks) and whether acceptable
			gold is observed, check assays are performed using the
		levels of accuracy (ie lack of bias) and
			Screen Fire Assay technique.
		precision have been established.
			Standards and blanks are included with each batch of
				drill core samples.
				At this stage of the project, field duplicates and external
				laboratory checks are not employed in order to manage
				costs. Should a prospect advance to the resource
				estimation stage, this procedure will be reviewed.
Verification of		The verification of significant intersections by		Laboratory provides assay certificates, which are stored
sampling and		either independent or alternative company		electronically both in ALS and Company's servers.
assaying		personnel.		Laboratory CSV files are merged with GPS Location
	 The use of twinned holes.		data files using unique sample numbers as the key.
		Documentation of primary data, data entry		No adjustments made to assay data.
		procedures, data verification, data storage
		(physical and electronic) protocols.
	 Discuss any adjustment to assay data.
Location of data		Accuracy and quality of surveys used to locate		Rock chip samples are located using handheld GPS
points		drill holes (collar and down-hole surveys),		receivers with accuracy from 10-5m.
		trenches, mine workings and other locations		UTM projection WGS84 Zone 34N and local grid
		used in Mineral Resource estimation.		SJTSK03. Conversion between local and UTM grid is
	 Specification of the grid system used.		run through national certified web portal.
		Quality and adequacy of topographic control.		The topographic control, using handheld GPS, was
				adequate for the survey.
				Drill collars are surveyed using a differential GPS or by
				triangulation depending of the tree cover and other
				environmental factors.
				Downhole surveys are taken at nominal 50m intervals
				down the hole. Excessive deviation is not generally a
				problem in this field and this interval is considered
				sufficient. Downhole azimuth readings at magnetic and
				converted to Grid by adding 6.6 degrees.
Data spacing and		Data spacing for reporting of Exploration		It is not yet determined whether the results from this
distribution		Results.		drilling will be used in a mineral resource estimate.
	 Whether the data spacing and distribution is
		sufficient to establish the degree of geological
		and grade continuity appropriate for the Mineral
		Resource and Ore Reserve estimation
		procedure(s) and classifications applied.
	 Whether sample compositing has been applied.
Orientation of		Whether the orientation of sampling achieves		No bias is believed to be introduced by the sampling
data in relation to		unbiased sampling of possible structures and		method.
geological		the extent to which this is known, considering		Drilling is designed to intersect the target structure as
structure		the deposit type.		close to normal as is possible given the constraints of
	 If the relationship between the drilling		topography and access. In this program no holes were
		orientation and the orientation of key		drilled at acute angles to the target structure.
		mineralised structures is considered to have
		introduced a sampling bias, this should be

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Criteria	JORC Code explanation	Commentary

assessed and reported if material.

Sample security

 The measures taken to ensure sample security.

• Samples were delivered to ALS Minerals laboratory in Romania by Prospech trusted contractor and were not left unattended at any time. There were no incident reports from ALS lab on sample receiver cell.

Audits or reviews  The results of any audits or reviews of sampling techniques and data.

• No audits or reviews of the data management system have been carried out.

Section 2 Reporting of Exploration Results

		Criteria	JORC Code explanation	Commentary
only	Mineral tenement	 Type, reference name/number, location and	 Prospech Limited, through subsidiaries and contractual
and land tenure	ownership including agreements or material	rights, holds 100% rights on the Cejkov Zemplin
status	issues with third parties such as joint ventures,	tenement.
	partnerships, overriding royalties, native title	 The laws of Slovakia relating to exploration and mining
	interests, historical sites, wilderness or national	have various requirements. As the exploration advances
	park and environmental settings.	specific filings and environmental or other studies may
use		 The security of the tenure held at the time of	be required. There are ongoing requirements under
	reporting along with any known impediments to	Slovakian mining laws that will be required at each
	obtaining a license to operate in the area.	stage of advancement. Those filings and studies are
				maintained and updated as required by Prospech's
				environmental and permit advisors specifically engaged
				for such purposes.
				 The Company is the manager of operations in
				accordance with generally accepted mining industry
				standards and practices.
		Exploration done	 Acknowledgment and appraisal of exploration	 Anciently, the target was silver, the currency of the day,
		by other parties	by other parties.	and more recently, during the Communist era, the
personal			targets were industrial base metals, copper, lead, zinc
		and others. As a result, much of the country, including
		Ortac Minerals Plc in 2011 to 2012.
				the Company's exploration license areas, has not been
				subject to modern western exploration methodology or
				exploitation.
				 Communist-era base metal and coal production was
				substantial and smelting of aluminium and nickel
				(material imported from Hungary and Albania) was
				carried out. Coal, gold, silver, talc, anhydrite and
				magnesite (and limestone, dolomite and gravel),
				bentonite, zeolite and industrial minerals are being
				mined in Slovakia today. An underground gold mine on
				a third party mining lease enclosed within the HHBS
				exploration license, the Rozalia Mine, continues in
				operation today, trucking a gravity/flotation concentrate
				to a smelter in Belgium.
				 Communist-era gold assays used in Government and
				private exploration programs have been proven to be
				unreliable and this must be taken into account when
				interpreting reports from the Communist era.
				 Prospech holds 100% of Cejkov Zemplin Exploration
				Concession which has been explored in the past by the
				Slovak Geological Survey pre 1990s, RTZ (Rio Tinto
				Zinc) in the late 1990s and Arc Minerals predecessor
For			 The Cejkov Zemplin concession is located
		approximately 66 kilometres south of Eastern Regional
		city of Kosice in Slovakia, a country member of the
				European Union and Eurozone.
		Geology	 Deposit type, geological setting and style of	 Located on the Bogrom river the Zemplin prospect is
			mineralisation.	part of the 29.23 Km2, 100%-ownedCejkov-Zemplin
				Licence, located in eastern Slovakia. Zemplin is
				prospective for epithermal precious metals and base
				metals vein-style mineralization in Neogene Volcanics
				as per the company's projects at Hodrusa, Nova Bana,
				Rudno and Pukanec.
		Drill hole	 A summary of all information material to the	All below WGS 84 Zone 34N Grid
		Information	understanding of the exploration results	Collar Coordinates
			including a tabulation of the following
			information for all Material drill holes:
			o easting and northing of the drill hole collar
			o elevation or RL (Reduced Level - elevation
			above sea level in metres) of the drill hole
			collar
			o dip and azimuth of the hole
			o down hole length and interception depth
			o hole length.
			 If the exclusion of this information is justified on

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