Variscan Mines Limited announced that an Electrical Resistivity Tomography (ERT) and Direct Current Induced Polarization (DCIP) survey comprising of 12 lines for a total of 17.6 kilometres, has been completed over the Buenahora Exploration License, within the Novales-Udias Zn-Pb Project in northern Spain. The results of the DCIP survey over the previously un-tested areas are highly significant for Variscan: Identified multiple new, zones of potentially high-grade mineralization that merit drilling; The IP anomalies occur over a wide area of the licence area and form linear features, interpreted to represent structurally-controlled mineral trends, consisting of multiple-stacked ore lenses, which is similar to the San Jose Mine and verified by geological observations of near-surface mine workings in the area; The ERT-DCIP survey has shown an excellent correlation with the host-rock lithologies in the area, and confirmed planned drill targets as well as identified new ones; The majority of the targets identified are located within the shallow-dipping dolostone horizon of the Reocin Formation, however the survey results indicate that some underlying carbonate horizons, such as the San Esteban limestone formation could also be an important host for lead- zinc mineralization, as evidenced, by the strong IP anomalies identified on Line 4; The acquired data is a significant milestone in developing an integrated view of the exploration and development potential of the project. The DCIP survey represents another step in the progression of Variscan's systematic approach to exploration ahead of surface drilling over the Buenahora Exploration Licence.

In combination, the geophysical, geological, geochemical and drilling data continues to indicate the potential for multiple clusters of MVT-style lead-zinc mineralisation to occur in much of the project area. Variscan had already defined 21 exploration target zones across this licence area; this will now be expanded and also refined ahead of future drilling. The results of this DCIP survey directly support a key stated objective of Variscan's exploration plan, which is to seek to define a regionally significant mineral resource similar in size and grade to the former producing and proximal Reocin Mine.

The chargeability anomalies have undergone a systems approach of interpretation and re-processing incorporating stratigraphy, topography, structural geology, linkages and the orientation of known mineral trends to produce a 3D model of target zones for drilling and further exploration. The largest IP anomaly is located on Line 11 in the north west of the survey area. It is a totally new target previously undetected by exploration or historical mining activity.

The shape of the anomaly is sub-vertical and corresponds to a mathematical model of a vertical or inclined vein. When aggregated with adjacent on-trend anomalies, the footprint of the target derived is larger in scale than the known mine workings of the San Jose Mine. The anomaly highlighted on Line 4 is another sizeable target, located in the southern part of the survey area.

It correlates well with the former mine workings and strong geochemical anomalies around Magdalena, Sinforosa and San Roque. Soil sampling of these targets, returned a peak soil result of 16.33% Zn with 30% of soil samples + 1% Zn and 18% of soil samples +2% Zn.1 Logistical and enabling activities, including drill pad preparation are well underway for a approximately 2,000m diamond drilling programme over the Buenahora licence area. The Government of Cantabria's Department of Mines has already granted approval for the Company's planned surface drilling program of up to 50 drill-holes2.

The Company has been closely engaged with the regional and local authorities to secure the required municipal approvals to commence surface drilling over the Buenahora licence area. Meetings with officials have been very positive with a large part of the approvals already having been granted. The local municipal `licencia de actividad' is now the only permit pending.