4 January 2025

4 January 2025

4 January 2025

30 April 2025

Adriatic Metals PLC

QUARTERLY ACTIVITIES REPORT

For the three months ended 31 March 2025

("Q1" or "Quarter")

Q1 HIGHLIGHTS

•   Production increased 46% to 1.4Moz AgEq¹ in Q1 2025 vs 0.9Moz AgEq in Q4 2024

•   66kt ore milled in Q1 2025 vs 47kt in Q4 2024, a 40% improvement as processing throughput continues to ramp up

•   Quarterly sales of $34m in Q1 2025, an increase of 26% vs Q4 2024

•   Veovača Tailings Storage Facility ('TSF') construction was completed in March and first tailings deposited on 2 April

•   First debt repayment of $20m made to Orion Mine Finance ('Orion') on 28 March 2025

•   Cash balance as at 31 March 2025 of $76m.

POST-PERIOD HIGHLIGHTS

•   Significant progress made in April, with key metrics hitting monthly records:

o  35kt milled (+60% vs Q1 average)

o  0.8Moz AgEq¹ produced (+76% vs Q1 average)

o  315m mine development (+30% vs Q1 average)

o  ~$21m of shipment value

•   With throughput rates increasing, commercial production is on track for Q2 2025.

Laura Tyler, Managing Director & CEO of Adriatic, commented:

"As highlighted in the operations update on 31 March, the first quarter marked a period of progress at the Vares Silver Operation. Despite a slower than expected ramp-up, production increased by over 40% quarter-on-quarter and operations were cash generative. Additionally, the successful commissioning of the Veovača TSF represents a critical milestone, significantly reducing risk as we advance toward steady-state operations.  

"While production fell short of expectations in Q1 - by approximately 40kt, or 6% of mid-point 2025 guidance - this was primarily due to adverse weather conditions and tailings management challenges. Nevertheless, we are pleased with advancements made in April as progress is made towards commercial production. We look forward to hosting analysts and investors at site in May and we remain confident in our strategy to drive long-term value for shareholders through sustained production growth and strong cash flow generation."

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) ("Adriatic" or the "Company") is pleased to provide an update on mining and processing activities at the Vareš Silver Operation in Bosnia and Herzegovina over Q1 2025.

1.     OPERATIONS

Health & Safety

At the end of Q1 2025, the 12-month rolling Lost Time Injury Frequency ('LTIF') and Total Recordable Injury Frequency ('TRIF') were 2.86 and 5.00 respectively compared to Q4 2024 where LTIF and TRIF were 2.26 and 5.27 respectively (frequency = (LTI or RI) * 1,000,000 / total hours worked)​. Note that previous quarterly reports used a numerator of 200,000 hours.

Q1 2025 Production

* Recoveries and contained metal are only into payable concentrates

Figure 1: Silver equivalent produced (koz)

In Q1 2025, 67kt of ore was mined, 8% lower than 73kt ore mined in Q4 2024 to align with processing rates and manage ore stockpile capacity. There was a total of 730m of underground development in Q1 2025, an 8% increase compared to Q4 2024 at 675m.

Record quarter of processing throughput of 66kt ore milled in Q1 2025 vs 47kt ore milled in Q4 2024, an increase of 40% as production continues to ramp up. This resulted in production of 1.4Moz AgEq¹ in Q1 2025 vs 0.9Moz AgEq in Q4 2024.

Milled tonnage was approximately 40kt lower than budget due to several factors:

·      Weather impacts and power outages in January (~15kt loss) - now resolved.

·      Delay in start of Veovača TSF operation (~20kt loss) - now resolved.

·      Tailings filtration cycle time issues (~20kt loss) - currently being resolved with debottlenecking modifications in Q2, and additional filter plates (+10% capacity) from Metso in Q3.

As the ramp-up continues, commercial production is expected to be reached during Q2 2025, with April achieving 20 days averaging 70% throughput after 5 days of planned maintenance.

Tailings

Construction of the Veovača TSF was completed in March, with necessary regulatory permits secured, and initial tails deposition took place on 2 April. Construction is currently underway on the direct access road linking the Vareš Processing Plant to the Veovača TSF. In the interim, an alternative route with limited capacity is being used. The main route is on track for completion by the end of May. The paste backfill plant is expected to be completed in Q4 2025.

2.     FINANCE

Quarterly sales totalled $34m in Q1 2025, an increase of 26% vs Q4 2024. Importantly, Q1 2025 marked the first quarter since operations commenced that the Company was cash generative.  

Cash reserves were bolstered by a $25m concentrate prepayment arrangement agreed with Trafigura, with funds drawn down in January.  

An equity raising of $50m took place on 18 February to support expansionary capital expenditure. The funds were raised to secure long-lead items to fast-track the Vareš Processing Plant expansion to 1.3Mtpa, initiate studies and workstreams at Rupice Mine to support production and provide spare capacity to de-risk ramp-up to nameplate production.

The first debt quarterly repayment to Orion Mine Finance of $20m was made at the end of March.

The cash balance as at 31 March 2025 was $76m (Q4 2024: $21m).

Summary of Cash flow

A summary of operating, investing and financing cash flows during the Quarter, before movements in exchange rates, as reported in the Appendix 5B Cash Flow Report, is as follows:

3.     TENEMENT HOLDINGS

In accordance with ASX Listing Rule 5.3.3, the Company's tenements as at 31 March 2025 are set out below. The Company holds a 100% interest in all concession agreements and licences via its wholly owned subsidiaries with the exception of the Raska (Suva Ruda) licence held by Deep Research d.o.o. which is subject to changes that occurred during 2024.

Adriatic Metals PLC has entered into a sale and purchase agreement with Deep Research d.o.o. and its shareholders which provides for the transfer of the Raska (Suva Ruda) licence to a newly established company owned 100% by Adriatic Metals PLC. It has also been agreed that the previous option agreement over Deep Research d.o.o. will be terminated as part of the licence transfer.

*Request for 1^st extension submitted on time. Pending approval.

**Pending Ministry decision on a two-year extension for preparation of reserves elaborate which excludes any geological exploration work. Upon approval, plan is to split the exploration area into two new areas and continue exploration work.

Notes:

Note 1: Formula for Silver Equivalent (AgEq) = ((Ag Produced x Ag $/oz) + (Au Produced x Au $/oz) + (Zn Produced x Zn $/t) + (Pb Produced x Pb $/t) + (Cu Produced x Cu $/t) + (Sb Produced x Sb $/t)) / (Ag $/oz). Produced quantities are after recovery. Commodity prices: $25/oz Ag, $2,000/oz Au, $2,500/t Zn, $2,000/t Pb, $2,000/t Cu, $2,000/t Sb.

Note 2: Unless otherwise stated, all dollar figures are United States dollars ($).

Note 3: There is some slight variance in numbers announced on 31 March and 29 April due to reconciliation.

- ends -

Authorised by Laura Tyler, CEO and Managing Director of Adriatic Metals.

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

MARKET ABUSE REGULATION DISCLOSURE

The information contained within this announcement is deemed by the Company (LEI: 549300OHAH2GL1DP0L61) to constitute inside ‎information for the purpose of Article 7 of EU 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. The person ‎responsible for arranging and authorising the release of this announcement on behalf of the Company is Laura Tyler, CEO and Managing Director.

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

Date:                     30 April 2025

Authorised by:       Audit and Risk Committee

(Name of body or officer authorising release - see note 4)

Notes

1.        This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2.        If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.        Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4.        If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - e.g. Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5.        If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.