POSITIVE RECORD OF DECISION RECEIVED FOR ENVIRONMENTAL PERMIT

The Federal Ministry of Environment and Tourism has issued a positive Record of Decision for the Veovaca Environmental Permit, one of the key approvals required for the issue of the Exploitation Permit.

With the Record of Decision received, the Environmental Permit will be issued by the Ministry as this is final and cannot be challenged. The Record of Decision was received following the submission of an Environmental Impact Assessment, prepared by Adriatic in accordance with the Federal Mining Code, and review by a five-member expert committee, and public hearing.

In addition to the Record of Decision for the Veovaca Mine, Plant and Tailings Facility, we have also received a Preliminary Water Permit and Environmental Permit for the demolition of the historic Veovaca Plant site, and Preliminary Water Permits covering the Veovaca Mine, Plant and Tailings Storage Facility, including an accumulation pond for excess water capture.

The Environmental Permit is required to be issued within 30 days from the date of the RoD, at which point Adriatic will submit an application for an Urban Planning Permit to the Federal Ministry for Spatial Planning. This application requires approvals from nine different utility and community service companies to be submitted. These approvals have been obtained.

Upon receiving the Urban Planning Permit, the application for Exploitation will be made to the Federal Ministry for Energy, Mining & Industry. As part of the approval procedure, the Ministry will hold a public hearing in Vares, where members of the public can comment on the application, and if necessary, the Company is given an opportunity to respond.