AMENDMENT TO CONCESSION AGREEMENT SECURES PRECIOUS METAL RIGHTS

The Annex 4 to Concession Agreement with Zenica-Doboj Canton confirms
our rights to Gold, Silver and Copper.

We have entered into Annexure 4 to its Concession Agreement with the Ministry of Economy for Zenica-Doboj Canton.

The Concession Agreement entered into by Adriatic’s 100% owned subsidiary, Eastern Mining d.o.o, is the primary document granting mineral rights at Veovaca and Rupice. Despite the Federal Mining Code granting mineral rights to all metals and minerals contained in the Reserves Elaborat, which was approved in April 2019 as announced on 4 April 2019, at the time the Concession Agreement was entered into in 2013, the historical information available for the Vares project did not include a sufficient number of assays for gold, silver or copper, and as such the Concession Agreement only referred specifically to lead, zinc and barite.

Since acquiring the Eastern Mining d.o.o. in 2017, Adriatic has identified significant resources of precious metals at both Veovaca and Rupice, as set out in the mineral resource estimates announced on 23 July 2019, and the changes included in Annex 4 remove all legal ambiguity between the two levels of government regarding the mineral rights.

In addition to the above changes, Annex 4 of the Concession Agreement removes the requirement to commence exploitation by May 2020, aligning the procedures contained within the Federal Mining Code, to the commercial terms of the Concession Agreement with the Canton.

These changes also include an amendment to the Minimum Annual Concession Fee from the current level BAM 1.50 (€ 0.77) to BAM 3.90 (€1.99) per tonne Run of Mine (ore into plant), increasing the payment from the date exploitation is granted but prior to commencement of production, to €199,325 per annum from the current level of €76,663 per annum.