Company Announcements

13 February 2023

Adriatic Metals PLC 

("Adriatic Metals" or the "Company")

VARES PROJECT DEBT DRAWDOWN

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) ("Adriatic" or the "Company") is pleased to announce that it has drawn down on the second $30m tranche of senior secured debt ("Senior Secured Debt") and the $22.5m copper stream ("Copper Stream") from Orion Mine Finance ("Orion"). These funds are to continue the construction of Adriatic's flagship Vares Silver Project in Bosnia & Herzegovina ("Project" or "Vares Project").

On 10 January 2022, Adriatic announced the completion of a $142.5m debt financing package with Orion ("Orion Debt Package") comprising:

·    $120m Senior Secured Debt; and

·    $22.5m Copper Stream

All conditions precedent for the second $30m tranche of Senior Secured Debt and the $22.5m Copper Stream have been satisfied and funds received.

The first draw down of $30m of the Orion Debt Package was received on 30 December 2022. The third and fourth tranches of the remaining $60m of Senior Secured Debt will be drawn down in 2023 when required.

The $142.5m Orion Debt Package and institutional equity raise of $102m, that closed on 13 October 2021, make up the total $244.5m Vares Project financing package. The Project is fully funded, with first concentrate production expected in Q3 2023.

Paul Cronin, Adriatic's Managing Director and CEO, commented:

"I am pleased that Adriatic has drawn down the second $30m tranche of Senior Secured Debt, as well as the $22.5m Copper Stream, from Orion Mine Finance. These funds will be used to continue the construction of the world-class Vares Silver Project, which will deliver first concentrates in Q3 2023."

-ends-

Market Abuse Regulation Disclosure

The information contained within this announcement is deemed by Adriatic (LEI: 549300OHAH2GL1DP0L61) to constitute inside ‎information as stipulated under Article 7 of the Market Abuse Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended ("UK Market Abuse Regulation").

The person ‎responsible for arranging and authorising the release of this announcement on behalf of Adriatic is Paul Cronin, Managing Director and CEO.

For further information, please contact info@adriaticmetals.com or visit www.adriaticmetals.com; @AdriaticMetals on Twitter

ABOUT ADRIATIC METALS

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) is a precious and base metals developer that is advancing the world-class Vares Project in Bosnia & Herzegovina, as well as the Raska Project in Serbia.

The Vares Project is fully funded to first concentrate production, which is expected in Q3 2023. The 2021 Project Definitive Feasibility Study boasts robust economics of US$1,062 million post-tax NPV₈, 134% IRR and a capex of US$168 million. Concurrent with ongoing construction activities, the Company continues to explore across its highly prospective 42km² concession package.

There have been no material changes to the assumptions underpinning the forecast financial information derived from the production target in the 19 August 2021 DFS announcement and these assumptions continue to apply and have not materially changed. Adriatic Metals is not aware of any new information or data that materially affects the information included in the announcement of the updated Mineral Resource Estimate announced on 1 September 2020 and all material assumptions and technical parameters underpinning the Mineral Resource Estimate continue to apply and have not materially changed.