Variscan Mines Limited ('Variscan' or the 'Company' or the 'Group') (ASX: VAR) is pleased to provide an exploration update on the current drilling programme designed to test the high-grade extensions of zinc mineralisation at the underground San Jose-Novales Mine.

Variscan can confirm strong visible mineralisation has been intersected in some of the drillholes completed.

Key Findings and Next Steps

A new mineralised area, defined by historical soil geochemistry, has been successfully drill-tested near the mine portal at San Jose. This signifies an unmined area that merits further exploration; Three of the five holes drilled, with preliminary logging, exhibit visually intense mineralised core, defining new mineralised trends 1.2km NE from the known San Jose mine mineralised structures (mined stopes), with similarly interpreted N-S orientation; Drilling has recommenced to complete holes near mine entrance and then move the rig further into the mine to test extensive N-S mineralised corridors; Six in-situ whole rock samples taken of different mineral textures underground have yielded high-grade Pb and Zn assay results. The trace element results will help determine changes in alteration that can serve as a vector towards mineralisation with further sampling and Channel sampling completed, currently awaiting assay results.

Looking Ahead

The Company's immediate focus is progressing with underground drilling at the San Jose Mine. Key activities include: Drilling has recommenced to complete holes near mine entrance and then move the rig further into mine to test extensive N-S mineralised corridors; Reporting channel sampling assay results and Surface drilling permitting applications.

Contact:

Stewart Dickson

Tel: +44 (0) 7799 694195

Email: stewart.dickson@variscan.com.au

Forward Looking Statements

Forward-looking statements are only predictions and are not guaranteed. They are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of the Company. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to differ from those referred to in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, the Company, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in this announcement will occur as contemplated.

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