Operations Update

31 March 2025

Adriatic Metals PLC

Operations Update

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

Highlights

Processing

• Record quarter of processing throughput of 68kt ore milled in Q1 2025 vs 47kt ore milled in Q4 2024, an increase of 43% as production continues to ramp up.

• Production of approximately 1.3Moz AgEq1 vs 0.9Moz AgEq in Q4 2024.

• Milled tonnage lower than expected due to tailings filtration cycle time issues (being resolved with debottlenecking modifications and additional filter plates from Metso) and tailings management as operations transfer from the temporary Tailings Storage Facility ('TSF') to the Veovaca TSF.

• Commercial production is expected in Q2, as road construction to the Veovaca TSF was delayed due to finalising forestry access agreements. This has now been resolved.

Mining

• Mining operations proceeding well with 67kt ore mined in Q1 2025, aligned with processing rates and stockpile management.

• Underground development metres increased over 7% from Q4 2024.

• Current ore stockpile of approximately 53kt at 316g/t Ag, 2.2g/t Au, 4.7% Zn, 3.8% Pb.

• Construction commenced at the paste backfill plant, with completion expected in Q4 2025.

• In March the build-up of the paste backfill plant commissioning stockpile at Rupice commenced. This is the first time tailings have been backhauled from the Vares Processing Plant to Rupice Mine.

Tailings Storage

• Construction of the Veovaca TSF was completed in March, with necessary regulatory permits issued, and initial tails deposition will occur in the first week of April.

• The direct access road from the Vares Processing Plant to the Veovaca TSF is now under construction following minor delays for use in Q2, with an alternative route currently in use.

Corporate

• Record quarterly sales of $33m, an increase of 23% from Q4 2024.

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

• Current cash balance of $75m, with current debt balance to Orion of $135m.

• Total net debt of $85m (including Trafigura prepayment), compared to a net debt of $129m at the end of Q4 2024.

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

"We have achieved key operational and corporate milestones over the past few months. Despite not achieving all the criteria for commercial production, the Vares Silver Operation is now ramping up steadily and generating positive cash flow.

I am also delighted that we have commenced our debt repayment to our supportive finance partner, Orion. We remain in a solid financial position at the end of Q1 with a cash position of $75m after making our first debt repayment of $20m.

Our focus over the next few months is to actively debottleneck and optimise our operations and continue to improve our performance. The process of ramping up production to nameplate capacity of 0.8Mtpa remains on track for the second half of 2025."

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

For further information please visit: www.adriaticmetals.com; email: [email protected],; 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.