The Directors of Prospech Limited announced the receipt of assay results from a recently completed four-hole diamond drilling program, targeting the Low Angle Normal Fault (`LANF') within the Hodrusa exploration licence. The holes were drilled to intersect shallow, medium strength IP anomalies, which also coincided with historical mine workings between the Ignac and Banky prospects which had been previously drilled by Prospech with some encouraging gold and silver results. The recent drilling is considered an important further test of the LANF concept and the use of IP-Resistivity geophysics as an exploration tool at Hodrusa.

The geological sequence intersected in the drilling revealed the presence of considerable epithermal- style alteration, stockworking and veining, providing proof of concept support for the LANF geologic model and the use of geophysics as an exploration tool at Hodrusa. The highest assay result from the drilling was returned from hole LANF001, which intersected backfilled old workings between 76.6 and 77.2 metres down hole (Figure 1). Assays of this backfill material, which is not insitu mineralisation, were 4.62 g/t Au and 598 g/t Ag.

All holes intersected promising epithermal stockworks, but assay results returned only anomalous gold and silver. See Table 1 for the complete assay results. The nearby, currently operating Rozalia Mine is considered to be geologically controlled and hosted by the LANF, the up-dip surface trace of which falls mainly within Prospech's Hodrusa exploration licence.

This most recent LANF drilling program is the continuation of the Company's previous exploration at the Ignac, Banky and Bauch targets, all of which are interpreted to lie within the surface outcropping expression of the LANF. Previously reported exploration results at Ignac, Banky and Bauch include: Rock chip assay results at Ignac of up to 47.3 g/t Au and 1,500 g/t Ag with 42 samples averaging 7.8 g/t Au and 330 g/t Ag (ASX announcement: Prospectus 3 December 2020). Ignac drilling results (ASX announcement: Prospectus 3 December 2020) include: IRDD001: 4.0m @ 4.8 g/t Au and 22 g/t Ag from 190.0m including 1.0m @ 13.7 g/t Au and 20 g/t Ag from 190.0m.

IRDD002: 0.4m @ 15.6 g/t Au and 46 g/t Ag from 174.0m and 0.4m @ 8.3 g/t Au and 117 g/t Ag from 195.8m. Rock chip assay results at Banky of up to 36.2 g/t Au and 1,300 g/t Ag (ASX announcement: Hodrusa-Hamre IP Survey Completed 9 December 2021). Bauch drilling results (ASX announcement: Gold and Silver Intersections in Completed Bauch Program 2 February 2021) include: BADD001: 1.0m @ 12.8 g/t Au and 380 g/t Ag from 89.1m, BADD003: 1.0m @ 2.4 g/t Au and 11 g/t Ag from 76.0m.