Lykos Metals Limited provided an update on exploration activities at the Company's 100%-owned Sinjakovo and Cajnice projects in Bosnia and Herzegovina. At Sinjakovo, the Company has identified three new polymetallic-bearing shear zones located within the newly identified Zekil-Erak Prospect. These new mineralised zones have been identified in the first trench excavated at Erak locality, with the widest zone being some 60m of trench length.

A rock chip sample near one of those zones has returned exceptional result of 58 g/t gold equivalent. At RDK Prospect, two neighbouring drill holes (some 200m apart) have intersected sulphide- rich zone. Two additional drill holes are underway to follow up on newly identified mineralisation.

Lykos has delayed drilling preparations at the newly identified targets Erak, Bag and Kovacevac while it completes more community consultation. The Company is working with the local community to finalise an agreed approach and expects to commence drilling of these targets as early as December, or in early 2023 subject to winter weather conditions. At Cajnice, the twinning of historical holes at the Berkovici Prospect has confirmed historical observations of several narrow, lead-bearing shears.

The field team has spent the past two months intensively mapping and sampling outcrops. Further drilling, if warranted, will commence in early 2023 once winter weather conditions allow. Zekil-Erak Prospect: In July 2022, the Company initiated a trenching program to follow up on a 4km2 gold-in-soil anomaly discovered at the Zekil and Erak localities.

Two trenches have been completed at Zekil locality, identifying a gold-bearing diatreme breccia system (see ASX announcement dated 4 August 2022). The first of five planned trenches at the Erak locality has now been completed, measuring 1,010m in length and with all results pending. The geology field team has identified three new zones hosting polymetallic mineralisation in this trench.

This epithermal mineralisation consists of disseminated to nests and veinlets: barite 1-10% (locally 20%), Cu-Pb-Zn-Sb secondaries 1-10%, and a rarely preserved primary minerals tetrahedrite, galena and antimonite (locally up to 1-10%) over trench lengths of between 10m and 60m. The mineralisation is hosted in a mix of surface rocks common for phreatic systems: massive ironstone (up to a few metres wide), ferruginous shears (0.1-1m wide) and diatreme/collapse breccias in limestone (ankeritic/marbly limestone in proximity to mineralisation) that are several metres wide. After an intense rock-chip sampling campaign over this locality in the September quarter, in this reporting period only one rock-chip sample was taken several metres from one of mineralised zones.

This sample returned grades of 7.77 g/t gold, 2,070 g/t silver, 15.85% copper, 4.53% antimony and 0.72% zinc (58 g/t gold equivalent) from a 10x20x20cm rock specimen. This exceptionally high rock-chip result is atypical for mineralised phreatic systems, which is why the Company expects the continuous trench sampling will return average results lower than the abovementioned. The trenching results are expected to arrive by the end of December, subject to season workloads at third- party laboratories in Bor.

Further trenching at Erak locality is on pause for now because of the onset of winter weather. After obtaining the necessary landowner agreements, access tracks for drilling at Erak, Bag and Kovacevac were constructed with some delay due to the terrain being more difficult for construction than expected (massive rugged limestone under thin top soil). In addition, extended engagement with the local community has also further impacted on the drill timetable.

The Company has been working with the community on agreed drilling scopes and schedules. Drilling at these new targets is now expected to commence as early as December or in early 2023, subject to weather conditions. RDK Copper-Cobalt Prospect: Drilling at the RDK Prospect continues with three diamond rigs.

Seven drill holes have been completed (SIDD006, SIDD007, SIDD008, SIDD009, SIDD010, SIDD013 and SIDD016) since the previous announcement (see ASX announcement dated 12 October 2022). A general lithology intersected in drilling was, when viewed stratigraphically upper to lower: upper limestone unit, schists and (massive and competent) sandstone unit, lower limestone unit, schists and sandstone. In some drill holes the lower limestone unit is absent and this stratigraphic level is characterised by layer-parallel shears in schists.

These layer-parallel shears are also commonly observed in limestone units and at contacts between all rock units; these shears can host sulphidic mineralisation, predominantly consisting of pyrite with subordinate chalcopyrite, galena and sphalerite. Drill hole SIDD006 was collared south of the historic underground copper mine. At a drilling depth of 114m, the hole intersected minor pyrite (+ trace chalcopyrite) veinlets.

At 167m depth, the hole encountered a 13m-wide fault contact (likely a layer parallel structure) between massive sandstone and schists, which has hosted minor pyrite-chalcopyrite veinlets and disseminations. Drilling of the hole was stopped at a drilling depth of 251m. Drill hole SIDD007 was located some 600m west of the historic mine.

It encountered minor amounts of veinlets with copper secondary minerals between 30m and 35m drilling depth as well as minor disseminated pyrite within a broad breccia zone (fault breccia with hydrothermal breccia intervals) from a depth of 115m to 187m. The hole was stopped at 286.5m drilling depth.