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EUROPA METALS LIMITED - Updated Mineral Resource Estimate - 55% Increase in Indicated Resource, Toral Pb, Zn & Ag Project, Spain

Release Date: 01/10/2021 09:00
Code(s): EUZ     PDF:  
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Updated Mineral Resource Estimate - 55% Increase in Indicated Resource, Toral Pb, Zn & Ag Project, Spain

Europa Metals Ltd
(Incorporated and registered in Australia
and registered as an external company in
the Republic of South Africa)
(Registration number 4459850)
(External company registration number 2011/116305/10)
Share code on the ASX: EUZ
Share code on AIM: EUZ
Share code on the JSE: EUZ
ISIN: AU0000014342
(“Europa Metals” or "the Company")

Updated Mineral Resource Estimate - 55% Increase in Indicated Resource, Toral Pb,
Zn & Ag Project, Spain

Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce the
results of an updated independent Mineral Resource Estimate, reported in accordance with JORC
(2012), in respect of its wholly owned Toral lead-zinc-silver project located in northern Spain (“Toral”
or the “Toral Project”).

Highlights:
   •   Updated independent Indicated and Inferred Mineral Resource Estimate for Toral, reported
       in accordance with JORC (2012). The input database for the estimate, included:
           -   172 diamond drill holes (including wedges) and 4 reverse circulation (RC) drill holes
               totalling 59,658.73 metres of drilling (including environmental drillholes), and 19
               underground channels for 18.75 metres.
           -   8 new parent mineral exploration drill holes TOD-028 to TOD-035 and six new
               daughter drill holes (metallurgical/geotechnical data), and one failed daughter hole
           -   Application of updated fault models.
           -   Application of new lithological facies domain models.
   •   Indicated resource estimate of approximately 5.9Mt @ 7.1% Zn Equivalent (including Pb
       credits) and 27g/t Ag, representing an approximate:
           -   55% increase in Indicated resource tonnes;
           -   39% increase in Indicated contained tonnes of zinc to approximately 251,000 tonnes;
           -   30% increase in Indicated contained tonnes of lead to approximately 196,000 tonnes;
               and
           -   40% increase in Indicated contained ounces of silver to approximately 5.2 million
               ounces.
   •   A total resource of approximately 20Mt @ 6.3% Zn Equivalent (including Pb credits), 3.9%
       Zn, 2.7% Pb and 22 g/t Ag, including:
           -   790,000 tonnes of zinc, 550,000 tonnes of lead and 14 million ounces of silver.


Outlook
The Company expects to integrate the updated resource estimate, with the substantially increased
indicated resource and grade increase within the upper zones, with its ongoing engineering analysis
in order to assess the positive influence on the proposed future mining and processing route for the
Toral project.

The Company will also utilise the bulk sample obtained during the recent drill programme to
undertake a new phase of metallurgical and waste testing via Wardell Armstrong International. It is
intended that ore sorting analysis will be conducted on the large bulk sample within the upper zones
to complement its 2020 work. In addition, further ore sorting testwork will be utilised to determine the
potential recovery and concentrate production levels from the lower, carbonate zones.


Laurence Read, CEO of Europa Metals, commented:
“With an approximate 55% increase in the Indicated category to 5.9Mt @ 7.1% Zinc Equivalent
(including Pb credits), sitting within a total resource, open at depth and to the East, of 20Mt @ 6.3%
Zinc Equivalent (including Pb credits), this independent resource update represents a significant
advance for the Toral lead, zinc and silver project.
“By formulating and implementing a highly targeted drilling campaign, our team has achieved this
significant result in a highly efficient manner, in an area of the resource that should directly impact
the early future production years of the Toral project. We are now progressing to a new phase of
metallurgical testing in order to determine the most efficient production routes for the upper zone
including examination of ore sorting. The overall focus continues to be on proving up our well
established lead, zinc and silver resource area and continuing to de-risk the development profile.”


Myles Campion, Executive Chairman of Europa Metals, further commented:
“This is an excellent result for Europa Metals with the upper siliceous zone returning better than
expected grades and widths which has enabled the reporting of a substantial increase in Indicated
tonnes from a concentrated drilling programme. The deposit continues to deliver positive news and
this boost to the Indicated resource provides further certainty on tonnes and grade profiles to assist
with the assessment of mine life and future production profile in further studies.”

Overview
Europa Metals is pleased to announce the results of an independent updated Mineral Resource
Estimate, in accordance with JORC (2012), for Toral pursuant to which there has been an
approximate 55% increase in the Indicated resource category to approximately 5.9Mt at 7.1% Zinc
Equivalent (including Pb credits) and 27g/t Ag. The upgrade follows the analysis of assays returned
from the Company’s 2021 diamond drilling campaign (involving, inter alia, key new drill holes TOD-
028 and TOD-035) and incorporation of updated fault and new lithological facies domain models.
The update was commissioned from and prepared by Addison Mining Services Limited (“AMS”).

Figure 1 showing AMS’ resource block model for Toral as a 3D view looking north, by Zn Equivalent
(PbAg)% grade can be viewed at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf

Figure 2a: showing AMS’ resource block model for Toral as a 3D view looking north, by resource
category can be viewed at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf:

Figure 2b: AMS’ resource block model for Toral 2D showing increase in indicated area can be viewed
at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf:

This latest updated Mineral Resource Estimate, effective as of 14 September 2021 for the Toral
deposit comprises:
    •    An Indicated resource of approximately 5.9Mt @ 7.1% Zn Equivalent (including Pb credits),
         4.2% Zn, 3.3% Pb and 27g/t Ag, including:
            - 251,000 tonnes of zinc, 196,000 tonnes of lead and 5.2 million ounces of silver.
    •    An Inferred resource of approximately 14Mt @ 6% Zn Equivalent (including Pb credits), 3.8%
         Zn, 2.5% Pb and 20 g/t Ag, including:
              -   540,000 tonnes of zinc, 350,000 tonnes of lead and 9 million ounces of silver.
    •    A total resource of approximately 20Mt @ 6.3% Zn Equivalent (including Pb credits), 3.9%
         Zn, 2.7% Pb and 22 g/t Ag, including:
             - 790,000 tonnes of zinc, 550,000 tonnes of lead and 14 million ounces of silver.

The Company’s Board believes the results of this update compare very favourably with the
previously reported Mineral Resource Estimate, announced on 14 August 2020 and effective as of
12 August 2020, which comprised the following tonnages and grade:

    •    An Indicated resource of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb credits),
         4.7% Zn, 3.9% Pb and 30g/t Ag, including:
              -   180,000 tonnes of zinc, 150,000 tonnes of lead and 3.7 million ounces of silver.
    •    An Inferred resource of approximately 14Mt @ 6.5% Zn Equivalent (including Pb credits), 4%
         Zn, 2.7% Pb and 23 g/t Ag, including:
              -   540,000 tonnes of zinc, 360,000 tonnes of lead and 10 million ounces of silver.
    •    A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1%
         Zn, 2.9% Pb and 24 g/t Ag, including:
              -   720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.
* Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead and is the parameter used to
define the cut-off grade used for reporting resources (Zn Eq (PbAg)% = Zn + Pb*0.867 + Ag*0.027). Zn Equivalent
calculations were based on 3-year trailing average price statistics obtained from the London Metal Exchange and London
Bullion Market Association giving an average Zn price of US$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/oz.
Recovery and selling factors were incorporated into the calculation of Zn Eq values. It is the Company’s opinion that all the
elements included in the metal equivalents calculation (zinc, lead and silver) have a reasonable potential to be recovered
and sold.



Implications of the resource update and updated resource model for the Toral Project
The significant increase in size and contained metal of the Indicated resource exceeded
management’s expectations and forms a significant cornerstone from which to further de-risk and
optimise the future production profile and economics of the Toral project. By utilising the updated
resource model in addition to the new geotechnical and metallurgical data recovered from the 2021
drill campaign, the Company can now analyse how the early years production design might best be
developed, in particular complementing the 2020 ore sorting work conducted on the lower, carbonate
zones, to determine how ore sorting in the upper zone could increase production efficiencies. Given
the levels of grade now established in the upper zone and the physical location of the mineralisation,
further work on the decline design can also be advanced.

At this time, no copper has been brought into the resource as only limited intersections have
occurred. Equally, the resource expansion is predominantly occurring within the upper boundaries
of the pre-existing resource with no further exploration yet being made below the resource cut-off at
the base or to the East.

Revised inputs

The geological team at Europa Metals has completed several important workstreams and internal
projects over the last five years to improve our geological understanding of the Toral deposit.

The 2018 re-logging exercise of the historic Peñarroya core at the Instituto Geolongico y Minero de
Espanna (IGME) facilities, proved to be beneficial as it assisted in increasing the Company’s
understanding of the geological environment and controls on mineralisation. In addition, it provided
basic structural data and, importantly, increased the quantity and quality of bulk density
measurements.

The completion of detailed surface geological mapping in 2019 led to the 2020 updated structural
database to provide further data and guidance on structural influences within the confines of the
Toral deposit.

The findings from such work have been incorporated into the updated resource model, thereby
providing better delineated geological boundaries, and utilised for updating the structural framework
which has been integral in establishing the updated resource model.

Europa Metals completed eight parent diamond drill holes (TOD-028 to TOD-035) and seven
daughter wedge holes in the last drilling campaign for total drilling of 5,183.90 metres (including
failed hole TOD-035F). The objective of the 2021 drill campaign was to test up dip extensions to the
high-grade zone and increase the Indicated resource, within predominantly siliceous lithofacies
material for ore sorting and metallurgical tests. All drilling was planned to cut the deposit above
elevation 190mRl (approximately 300 to 500 metres below surface) to extend the Indicated resource
zone above that delineated in the 2020 mineral resource estimate.

Competent Person’s Updated Inferred and Indicated Mineral Resource Estimate, Reported in
Accordance with the JORC Code (2012 edition)
Further to the diamond drilling conducted in 2021, the Company commissioned AMS to complete an
independent updated Mineral Resource Estimate. The updated Mineral Resource Estimate is based
on all the available historical data from six drilling campaigns conducted on licence number 15.199
(namely, the 1972 - 1984 Peñarroya-Adaro campaign, the 2006 - 2008 Lundin Mining campaign, the
2016 - 2017 Europa Metals’ campaign and the Company’s September 2018 to August 2019 RC and
diamond drilling, November 2019 to January 2020 diamond drilling and January to June 2021
diamond drilling), along with historic underground channel sampling results from numerous old adits.

The updated Mineral Resource Estimate has been reported in accordance with the Joint Ore
Reserve Committee (JORC) code, 2012 edition.

Block Model
The resource update has identified potentially economic mineralisation ranging from surface to
approximately 1,100m below surface. The new block model currently extends for a strike length of
3,600m and is still open to the east and west along strike and also at depth where it has not yet been
closed off.

Figure 3: AMS’ East West 2D Toral block model by grade can be viewed at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf:
 The Inferred and Indicated resource for the Zn-Pb-Ag mineralisation located on the Toral Project’s
 licence area has been estimated at various cut-offs (refer to Table 1 below). The Company reviewed
 the new block model along with its appointed geological consultants, AMS, and concluded that a 4%
 Zn Equivalent cut-off grade was appropriate utilising estimated mining parameters established
 during the 2020 scoping study and mineralogy and using an historical three-year trailing average for
 metals prices, which, although conservative, was deemed appropriate at this stage in the project’s
 development.
 Zn Price Used:                US$ 2,516/t           US$ 1.14/lb
 Pb Price Used:                US$ 1,961/t           US$ 0.90/lb
 Ag Price Used:                                      US$ 19.4/oz

 Table 1: Summary of mineral resources for the Toral property reported at a 4.0% Zn equivalent cut-off grade
 (including Pb and Ag credits) and estimated grade and tonnages at the various cut-off grades. Figures are
 rounded to reflect the accuracy of the estimations.


Cut-Off Zn                                                                                         Contained        Contained
                Tonnes                       Zn Eq          Zn Eq          Zn       Pb     Ag                                         Ag Troy Oz
    Eq                         Density                                                             Zn Tonnes        Pb Tonnes
               (Millions)                    (Pb)%        (PbAg)%          %        %      g/t                                         (Millions)
 (PbAg)%                                                                                             (000s)           (000s)

                                                                             Indicated
   6.0             3.9           2.93          8.5            9.3         5.1       3.9    30          200               152                 3.8
   5.0             4.8           2.92          7.8            8.6         4.7       3.6    29          226               173                 4.4
   4.0             5.9           2.90          7.1            7.8         4.2       3.3    27          251               196                 5.2
   3.5             6.2           2.90          7.0            7.7         4.1       3.3    27          255               200                 5.3
                                                                                Inferred
   6.0              8            2.90          7.3            7.9         4.9       2.8    22          370               210                 5.4
   5.0             10            2.90          6.7            7.2         4.4       2.7    21          450               280                 7.0
   4.0             14            2.90          6.0            6.5         3.8       2.5    20          540               350                 9.0
   3.5             16            2.90          5.6            6.2         3.6       2.4    19          580               390                 10.0
                                                                                 Total
   6.0             12            2.90          7.7            8.4         4.9       3.2    25          570               370                  9
   5.0             15            2.90          7.0            7.7         4.5       3.0    23          680               450                 11
   4.0             20            2.90          6.3            6.9         3.9       2.7    22          790               550                 14
   3.5             22            2.90          6.0            6.6         3.7       2.6    21          830               590                 15
                                                                    Partially Weathered Material
   6.0             12            2.90          7.7            8.4         4.9       3.2    25          570               370                  9
                                                                     Unweathered Fresh Rock
   4.0             16            2.90          6.7            7.2         4.3       2.7    21          710               440                 11

 Notes:
 1. No mineral reserve calculations have been undertaken. Mineral resources that are not mineral reserves do not have demonstrated
    economic viability.
 2. Numbers are rounded to reflect the fact that an Estimate of Resources is being reported. Rounding of numbers may result in
    differences in calculated totals and averages. All tonnes are metric tonnes.
 3. Zn equivalent calculations were based on 3 year trailing average price statistics obtained from the London Metal Exchange and
    London Bullion Market Association giving an average Zn price of US$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/oz.
    Recovery and selling factors were incorporated into the calculation of Zn Eq values. It is the Company’s opinion that all the elements
    included in the metal equivalents calculation (zinc, lead and silver) have a reasonable potential to be recovered and sold.
4. Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead and is the parameter used to define the cut-
   off grade used for reporting resources (Zn Eq (PbAg)% = Zn + Pb*0.867 + Ag*0.027).
5. Zn Eq is the calculated Zn equivalent using lead credits and does not include silver credits (Zn Eq = Zn + Pb*0.867).
6. The Mineral Resource Estimate set out above for the zinc, lead and silver mineralisation in the Toral project area is based on a 3D
   geologic model and wireframe restricted block model that integrated the exploration work on the Toral project up to 14 September
   2021. The block model used uniform cell size of 25x10x25m to best suit the orientation of the mineralisation and sample spacing. The
   block model was rotated by 20degrees in plan view to best match the trend of mineralisation. Sub cells were applied to better fit the
   wireframe solid models and preserve accurate volume as much as possible. Cells were interpolated at the parent block scale using a
   Median Indicator Kriging.
7. No Top Cuts were applied to the 2m downhole composite data used for grade estimation.
8. The Indicated and Inferred mineral resource category for the Toral lead-zinc-silver project set out in the table above (at cut-off grades
   less than 4% Zn Equivalent) comply with the resource definitions as described in the Australasian Code for Reporting of Exploration
   Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of
   The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).
9. The tonnes and grades reported at a cut-off grade of 3.5% Zn equivalent are below the economic cut-off grade of 4% and as such
   should not be considered mineral resources, they are shown here for comparison purposes only.


Summary of Updated Resource Estimate and Reporting Criteria
In accordance with JORC (2012) reporting guidelines, a summary of the material information used
to estimate the updated Mineral Resource Estimate is set out below (for further detail please refer to
the JORC (2012) Table 1, set out in the Appendix to this announcement).

Geology and geological interpretation
The Toral Project is a traditional polymetallic (lead-zinc-silver) deposit, which is hosted over 6km of
strike length of the prospective Lower Cambrian Vegadeo Limestone formation, that is regionally
mineralised along more than 40km of its extent. The deposit represents a carbonate hosted,
structurally controlled deposit type, demonstrating fault-controlled contact, vein, carbonate
replacement and breccia styles of mineralisation situated close to and along the boundary between
footwall slates and hanging wall limestones and dolomites. Sub-ordinate lead-zinc-silver
mineralisation also occurs wholly within the hanging wall limestones and dolomites, approaching the
contact with the slates.

Historic drill hole re-logging undertaken in 2018 provided improved geological, structure, alteration
and weathering/oxidation information, incorporated into the interpreted geological and mineralised
models for the updated resource estimate. Surface mapping and remote data interpretation by
Europa Metals has enabled the development of an interpreted fault model, also incorporated in to
the updated geological and mineralised models used in the updated mineral resource estimate.

Weathering
The weathering profile was observed throughout the drill holes and historic shallowly emplaced
horizontal adits. In general, observations on weathering and oxidation at Toral suggests a poorly
developed or truncated profile overall, with minimal oxidation developed much below 30 metres from
the surface, with the majority of the country rock being un-weathered or showing only fractured
controlled weathering and oxidation in the form of iron oxide joint tarnishing and fracture infill.
Weathering and oxidation are deeper within the main parts of the mineralised structure, and is
interpreted as partial, being fracture controlled with less than 10% weatherable minerals weathered
and/or oxidised. A weathering surface was interpreted at the moderately weathered - partially
weathered and fracture-controlled boundary to sub-divide the moderately oxidised ‘transitional’ zone
material and ~10% weathered ‘fresh’ material below.

Due to the strong lithological and structure control, an observed trough is developed at the
transitional-fresh boundary along the main structure, interpreted through the drill hole logging of
weathering. The accuracy of the surface at this stage is suitable for application and use in the
reporting of Inferred and Indicated resources and further work is required to increase the
understanding of the boundary and its effects on the deposit.

Bulk density
The resource database contains 3,012 bulk density measurements, with a total of 234 within the
mineralised wireframe, with a mean value of 2.84 g/cm3.

A broad linear relationship between Pb+Zn grade and Bulk Density was identified from scattergrams
and the formula 2.7 + 0.02(Pb+Zn%) used to estimate block density in relation to block grade within
the block model, density was capped at 3.5 g/cm3.

Drilling techniques and hole spacing
The updated Mineral Resource Estimate includes new information from eight parent diamond drill
holes (TOD-028 to TOD-035) and six successful daughter wedge holes from the last drilling
campaign for total drilling of 3,368 metres (including failed hole TOD-035F), all collared from surface.

A total of 172 diamond drill holes (including wedges) and 4 reverse circulation (RC) drill holes totalling
59,658.73 metres of drilling, and 19 underground channels for 18.75 metres were used as the input
database for geological modelling and resource estimation. Note that this drillhole database includes
environmental monitoring drillholes.

Drill core diameter was PQ, HQ, NQ2, NQ and BQ depending upon depth. Tube type is unknown for
the historic Peñarroya drilling, whilst the triple tube method was used for the historic Lundin and
Europa Metals’ drilling campaigns.

The recent diamond core has been orientated. No orientation has been performed on the historic
drill core.

Drill and UG channel sample data spacing across the current resource area ranges from
approximately 50-100m x 50-100m centres within the most densely tested area situated in the NW,
stepping out to approximately 200m x 200m within the mid-section and 100-200m x 500m in the SE.

The distribution of drill holes and UG channel sampling, supported by surface and underground
mapping, is sufficient to establish the degree of geological and grade continuity appropriate for a
JORC (2012) Inferred and Indicated classification of resources.

Sampling and sub-sampling techniques
The four main phases of historic exploration drilling and sampling are:
• 1972-1984 Peñarroya-Adaro: diamond drill core method was used to obtain samples for
  geological logging and sampling. Geological and analytical data is recorded on hardcopy.
  Selective sampling method was employed around areas of interest. Sampling intervals measure
  approximately 1m, half core sent for analysis, with half core retained for reference. Exact details
  on core processing, sampling techniques and analytical methods are unclear, however
  subsequent explorers Lundin Mining sent the majority of the Peñarroya core pulp reject samples
  to ALS Chemex for multi element re-analysis by ICP.
• 2006-2008 Lundin Mining: diamond drill core method was used. Core logging completed on
  hardcopy. Selective sampling method was employed around areas of interest. Sampling intervals
  measure approximately 1m, half core sent for analysis, with half core retained for reference.
  Samples typically 1m half core, with samples prepared at the then Lundin Laboratory in Suecia,
  then shipped to ALS Chemex Vancouver for multi-element analysis by ICP. Half core samples
  reduced to -400 microns and 100g sub-samples taken for analysis. Multi-element re-analysis of
   available Peñarroya diamond drill hole pulp reject samples completed at ALS Chemex Vancouver
   using ICP.
• 2016-2017 Europa Metals: diamond drill core and underground cut channel sampling methods
  used to obtain samples for geological logging and sampling. Geological and analytical data is
  recorded on hardcopy. Selective sampling method was employed around areas of interest.
  Sampling intervals measure approximately 1m, half core sent for analysis, with half core retained
  for reference. Samples sent to ALS Seville for preparation and multi-element analysis by ICP.
  Half core samples reduced to -400 microns and 100g sub-samples taken for analysis.
• 2018-2021 Europa Metals: diamond drill core and RC chips used to obtain samples for geological
  logging and sampling. Geological and analytical data is recorded on paper and later digitised.
  Selective sampling method was employed around areas of interest. Sampling intervals measure
  approximately 1m, half core and RC riffle splits sent for analysis, weighing approximately 2-3kg,
  with half core and chip sub-samples retained for reference. Samples were sent to ALS Seville for
  preparation and multi-element analysis by ICP. Half core and RC samples were reduced to -400
  microns and 100g sub-samples taken for analysis.

Diamond Core Recovery
A total of 14,706 core recovery measurements exists in the database for the drilling with average
core recovery of 79%. The average for the Europa Metals diamond drilling is 96%. Core recovery is
measured over run lengths.

Cut-off grades
The Inferred and Indicated resource for the Pb-Zn-Ag mineralisation located on the Toral property,
licence number 15.199, has been estimated at various cut-offs. For the Toral deposit resource, the
economic cut-off was determined by calculation of block revenue factors based on Zn equivalent
calculations derived from an historical three-year trailing average for Zn, Pb and Ag prices. Indicative
mining and processing costs derived from the 2020 scoping study and typical of the region and
deposit type were applied along with typical mining recovery and dilution factors and metallurgical
recovery factors identified by laboratory studies and production at comparable deposits and
accepted by AMS. For reporting in compliance with JORC (2012), an economic cut-off grade of 4%
Zn equivalent (including Pb and Ag credits) was selected considering the aforementioned factors
and allowing for some increase in commodity prices to define resources with a reasonable prospect
of eventual economic extraction now or in the near future. Resources are reported as follows:

The updated mineral resource estimate as of 14 September 2021 for Toral comprises:

   •   An Indicated resource of approximately 5.9Mt @ 7.1% Zn Equivalent (including Pb credits),
       4.2% Zn, 3.3% Pb and 27g/t Ag, including:
           -   251,000 tonnes of zinc, 196,000 tonnes of lead and 5.2 million ounces of silver.
   •   An Inferred resource of approximately 14Mt @ 6% Zn Equivalent (including Pb credits), 3.8%
       Zn, 2.5% Pb and 20 g/t Ag, including:
           -   540,000 tonnes of zinc, 350,000 tonnes of lead and 9 million ounces of silver.
   •   A total resource of approximately 20Mt @ 6.3% Zn Equivalent (including Pb credits), 3.9%
       Zn, 2.7% Pb and 22 g/t Ag, including:
           -   790,000 tonnes of zinc, 550,000 tonnes of lead and 14 million ounces of silver.

Estimation methodology
AMS verified new primary analytical data via cross reference against original laboratory certificates.
The database for use as input for mineral resource modelling and estimation has also been validated
and verified by AMS. Micromine 2021 3D geological modelling and estimation software was used for
import, validation and QC verification assessment, 3D solid modelling, geostatistics and block model
grade estimation and block model reporting. Data checks include checks for overlapping and missing
intervals, drill hole trace errors, missing survey data, lithology and collars.

As with previous resource estimates completed by AMS (2017, 2018, 2019, 2020) wireframe solid
models were created for each domain based on a mineralisation threshold of approximately 0.2%
for Zn and Pb (approximately 0.4% Zn+Pb). Analysis of Zn and Pb grades in cross section and in
scatter plots showed a strong relationship and no requirement to model Zn and Pb separately was
identified. Ag showed a strong correlation with Pb and was estimated within the Zn/Pb mineralised
domain.

The updated wireframes were generated using Micromine’s implicit vein modelling functionality and
incorporated major fault boundaries to better honour offsets in the structure and preserve
thicknesses between intercepts. Interpretation of the mineralised domains was guided by geological
interpretation of the deposit incorporating structural and lithological boundaries and surface
expression in topographical data and outcrop mapping.

To the northwest the resource is truncated by the licence boundary and extended approximately
10m past the south easterly most drillhole which was mineralised but contained sub-economic
grades (3m at 2.4% ZnEq). The total strike length of the modelled mineralisation within the licence
is approximately 3.1km. The structure remains open to the southeast. Down dip the model was
extrapolated approximately 50-200m below the deepest sample in the northwest and central parts
of the deposit, and approximately 250-280m below the deepest sample in the southeast with
consideration of depths tested along strike to the northwest. The models extent from surface to a
range of approximately 800 - 1,150m below the surface. Extents of extrapolation are considered
appropriate for the level of information, deposit type, strike and depth extents tested, observed and
geostatistical grade continuity and the assigned resource classification.

A uniform cell block model of 25 mE, 10 mN, 25 mZ was restricted to the wireframes using block
factors. The block model was rotated by 20degrees in plain view to best match the trend of
mineralisation. The uniform model and 2m sample composites for the mineralised domain were then
flattened to a constant vertical plane striking 110degrees to account for fault offsets, improve
variography and grade mapping. Thickness was preserved in the flattening process and no lateral
stretching was applied.

Block model interpolation and extrapolation for Zn, Pb and Ag was completed using directional
variograms for each element in the flattened space at the uniform block scale. Median Indicator
Kriging was used, where each cut-off bin in the indicator interpolation process uses the same median
indicator variogram for each element. Indicator bins were selected based on dices plus incremental
percentiles in the tail of the distribution.

During block model interpolation, the influence of some isolated high-grade values was found to be
sufficiently localized and did not have undue influence on the estimates of grade. It was decided that
there was no requirement for top cutting.

Classification criteria
The portion of the Toral deposit defined by drilling, underground development and channel sampling,
has been classified as an Inferred and Indicated mineral resource in accordance with JORC (2012)
based on a combination of drill spacing, geological confidence, grade continuity, previous mining
and the quality control standards achieved.
Mining and metallurgical methods and parameters
Based on the orientations, thickness and depths to which the ore body has been modelled, as well
as the estimated grade, underground sub level open stope mining is the intended mining
methodology with froth floatation for recovery.
Comparison with Previous Mineral Resource Estimate
The updated Mineral Resource Estimate compares favourably with the previously reported Indicated
and Inferred Mineral Resource Estimate announced on 14 August 2020 and effective as of 12 August
2020.

                              Previous Mineral Resource Estimate Announced in August 2020



Table 2: Summary of 2020 mineral resources for the Toral property reported at a 4.0% Zn equivalent cut-off grade
(including Pb and Ag credits) and estimated grade and tonnages at the various cut-off grades. Figures are rounded to
reflect the accuracy of the estimations.

                                                                                             Contained       Contained
  Cut-Off                                                                                                                      Ag Troy
                Tonnes                    Zn_Eq        Zn Eq        Zn      Pb       Ag          Zn              Pb
   Zn Eq                      Density                                                                                            Oz
               (Millions)                 (Pb)%      (PbAg)%        %       %        g/t      Tonnes          Tonnes
 (PbAg)%                                                                                                                      (Millions)
                                                                                               (000s)          (000s)
                                                         Indicated
      6            2.8          2.9         9.5     10.0     5.3 4.5   34                        150             130             3.1
      5            3.3          2.9         8.9      9.5     5.0 4.2   32                        170             140             3.4
      4            3.8          2.9         8.3      8.9     4.7 3.9   30                        180             150             3.7
      3            4.1          2.9         7.9      8.5     4.4 3.7   29                        180             150             3.8
                                                          Inferred
      6             8           2.9         7.8      8.3     4.7 3.4   28                        370             270             7.2
      5            10           2.9         7.2      7.7     4.4 3.0   26                        450             310             8.6
      4            14           2.9         6.5      6.9     4.0 2.7   23                        540             360             10
      3            17           2.9         5.9      6.3     3.7 2.4   20                        610             400             11
                                                            Total
      6            11           2.9         8.2      8.8     4.8 3.7   30                        520             390              10
      5            14           2.9         7.6      8.1     4.5 3.3   27                        620             450              12
      4            17           2.9         6.9      7.3     4.1 2.9   24                        720             510              14
      3            21           2.9         6.3      6.7     3.8 2.7   22                        790             560              15
                                                Transitional Oxide Material
      4             3           2.9         5.2      5.7     2.6 2.9   27                         75             83              2.5
                                                 Unweathered Fresh Rock
      4            14           2.9         7.2      7.7     4.5 3.0   24                        650             430              11
Notes:
1.    No mineral reserve calculations have been undertaken. Mineral resources that are not mineral reserves do not have demonstrated
      economic viability.
 2.   Numbers are rounded to reflect the fact that an Estimate of Resources is being reported as stipulated by JORC 2012. Rounding of
      numbers may result in differences in calculated totals and averages. All tonnes are metric tonnes.
 3.   Zn equivalent calculations were based on 3 year trailing average price statistics obtained from the London Metal Exchange and
      London Bullion Market Association giving an average Zn price of US$2,680/t, Pb price of US$2,100/t and Ag price of US$16.2/Oz.
      Recovery and selling factors were incorporated into the calculation of Zn Eq values. It is the Company’s opinion that all the elements
      included in the metal equivalents calculation (zinc, lead and silver) have a reasonable potential to be recovered and sold.
 4.   Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead and is the parameter used to define the
      cut-off grade used for reporting resources (Zn Eq (PbAg)% = Zn + Pb*0.926 + Ag*0.019).
 5.   Zn Eq is the calculated Zn equivalent using lead credits and does not include silver credits (Zn Eq = Zn + Pb*0.926).
6.    The Mineral Resource Estimate set out above for the zinc, lead and silver mineralisation in the Toral project area is based on a 3D
      geologic model and wireframe restricted block model that integrated the exploration work on the Toral project up to 21 January
      2020. The block model used uniform cell size of 25x10x25m to best suit the orientation of the mineralisation and sample spacing.
      The block model was rotated by 20degrees in plan view to best match the trend of mineralisation. Sub cells were applied to better
      fit the wireframe solid models and preserve accurate volume as much as possible. Cells were interpolated at the parent block scale
      using an Ordinary Kriging.
 7. Following statistical analysis and assessment of the updated assay composite database top cuts of 125g/t Ag were applied to the
      data. No top cuts were applied for Zn or Pb.
 8. The Indicated and Inferred mineral resource category for the Toral zinc-lead-silver project set out in above (at cut-off grades less
      than 4% Zn Equivalent) comply with the resource definitions as described in the Australasian Code for Reporting of Exploration
      Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee
      of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).
The tonnes and grades reported at a cut-off grade of 3% Zn equivalent are below the economic cut-off grade of 4% and as such should
not be considered mineral resources, they are shown here for comparison purposes only


The updated Mineral Resource Estimate is therefore positive in terms of increased Indicated
resource tonnes and contained metal.
     •    Indicated resource estimate of approximately 5.9Mt @ 7.1% Zn Equivalent (including Pb
          credits) and 27g/t Ag, representing an approximate:
               -     55% increase in Indicated resource tonnes;
               -     39% increase in Indicated contained tonnes of zinc to approximately 251,000 tonnes;
               -     30% increase in Indicated contained tonnes of lead to approximately 196,000 tonnes;
                     and
               -     40% increase in Indicated contained ounces of silver to approximately 5.2 million
                     ounces.

Competent Person’s Statement
The updated Toral resource estimate was prepared by Mr J.N. Hogg, MSc. MAIG. Principal
Geologist for AMS, an independent Competent Person within the meaning of the JORC (2012) code
and a Competent Person under the AIM guidance note for mining and oil & gas companies. The
updated resource estimate was completed by Mr R. J. Siddle, MSc, MAIG Senior Resource
Geologist for AMS and Competent Person. Mr Hogg has reviewed and verified the technical
information that forms the basis of, and has been used in the preparation of, the updated Mineral
Resource Estimate and this announcement, including all analytical data, diamond drill hole logs,
QA/QC data, density measurements, and sampling, diamond and RC drilling and analytical
techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the
information, in the form and context in which it appears. Mr Hogg has also reviewed and approved
the technical information in his capacity as a Qualified Person under the AIM Rules for Companies.
Additionally, Mr Hogg confirms that AMS is not aware of any information or data that materially
affects the information contained within the Company’s previous announcements referred to herein.

United Kingdom
1 October 2021

For further information on the Company, please visit www.europametals.com or contact:

Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary (Australia)
T: +61 417 978 955
Laurence Read, CEO (UK)
T: +44 (0)20 3289 9923

Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals

Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494

Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker/James Pope
T: +44 (0)20 3657 0050

Sasfin Capital Proprietary Limited (a member of the Sasfin group)
Sharon Owens
T (direct): +27 11 809 7762

The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United
Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.


Glossary of technical terms:

 “Ag”                         silver;

 “g”                          grammes;

 “g/t”                        grammes per tonne;

 “ICP”                        inductively coupled plasma;

 “Inferred resource”          that part of a Mineral Resource for which quantity and grade (or quality) are
                              estimated on the basis of limited geological evidence and sampling. Geological
                              evidence is sufficient to imply but not verify geological and grade (or quality)
                              continuity. It is based on exploration, sampling and testing information gathered
                              through appropriate techniques from locations such as outcrops, trenches, pits,
                              workings and drill holes;

 “Indicated resource”         that part of a Mineral Resource for which quantity, grade (or quality), densities,
                              shape and physical characteristics are estimated with sufficient confidence to allow
                              the application of Modifying Factors in sufficient detail to support mine planning and
                              evaluation of the economic viability of the deposit.

 “JORC”                       the Australasian Code for Reporting of Exploration Results, Mineral Resources and
                              Ore Reserves, as published by the Joint Ore Reserves Committee of The
                              Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists
                              and Minerals Council of Australia;

 “JORC (2012)”                the 2012 edition of the JORC code;

 “m”                          metre;

 “Mineral Resource”           a concentration or occurrence of material of economic interest in or on the earth's
                              crust in such form and quantity that there are reasonable and realistic prospects for
                              eventual economic extraction. The location, quantity, grade, continuity, and other
                              geological characteristics of a Mineral Resource are known, estimated from specific
                              geological evidence and knowledge, or interpreted from a well-constrained and
                              portrayed geological model;
 “Mt”                           million tonnes;

 “oz”                           troy ounce;

 “Pb”                           lead;

 “QA/QC”                        quality assurance/quality control; and

 “Zn”                           zinc.



APPENDIX: Table 1 (JORC 2012)

Section 1 Sampling techniques and data

(Criteria in this section apply to all succeeding sections.)

 Criteria     JORC Code explanation                                                     AMS Commentary
              • Nature and quality of sampling        •   Historic and recent diamond drill core and underground cut channel
                 (e.g. cut channels, random               sampling has been completed over three main phases of exploration
                 chips, or specific specialised           drilling and sampling:
                 industry standard                          -     1972 - 1984 Peñarroya – Adaro. Diamond drill core method was
                 measurement tools                                used to obtain samples for geological logging and sampling.
                 appropriate to the minerals                -     2006 - 2008 Lundin Mining. Diamond drill core method was used.
                 under investigation, such as                     Core logging completed on paper.
                 down hole gamma sondes, or                 -     Europa Metals. Diamond drill core, RC chips and underground cut
                 handheld XRF instruments,                        channel sampling methods used to obtain samples for geological
                 etc). These examples should                      logging and sampling.
                 not be taken as limiting the         •   Drill core samples were half core with an average length of 1m.
                 broad meaning of sampling.           •   No handheld XRF instruments were used.
                                                      •   Channel sampling was supervised by a Europa Metals’ geologist and
                                                          samples that did not cross lithological boundaries were possible.
                                                      •   The measures for sample representivity are unknown for the historical
              •   Include reference to measures
                                                          drilling.
                  taken to ensure sample
                                                      •   Efforts to ensure sample representativity for the Europa Metals’ drilling
                  representivity and the
                  appropriate calibration of any          include:
                                                            -     Constant review of recovery data with drill crews,
                  measurement tools or systems
                                                            -     Review of downhole survey data while drilling in progress to ensure
                  used
                                                                  the piece points are being intercepted,
                                                            -     Always sampling the same side of the core, while leaving the
                                                                  orientation line in place.
                                                      •   2006 - 2008 Lundin Mining sent half core samples for multi-element
 Sampling                                                 analysis of available Peñarroya DDH samples completed at ALS Chemex
 techniques                                               Vancouver using ICP.
              •   Aspects of the determination
                                                      •   Lundin sent their core samples to ALS Chemex Vancouver for ICP
                  of mineralisation that are
                                                          analysis.
                  Material to the Public Report.
                                                      •   Europa Metals sent all samples to ALS Seville for preparation and multi-
                                                          element analysis by ICP.
                                                      •   ALS Seville is accredited and conforms with ISO9001:2008.
                                                      •   Historic and recent diamond drill core methods are discussed below:
              •   In cases where ‘industry                 -      1972 - 1984 Peñarroya – Adaro. Geological and analytical data is
                  standard’ work has been done                    recorded on hardcopy. Selective sampling method was employed
                  this would be relatively simple                 around areas of interest. Sampling intervals measure approx. 1m,
                  (e.g. ‘reverse circulation                      half core sent for analysis, with half core retained for reference.
                  drilling was used to obtain 1 m                 Exact details on core processing, sampling techniques and
                  samples from which 3 kg was                     analytical methods are unclear.
                  pulverised to produce a 30 g              -     2006 - 2008 Lundin Mining. Diamond drill core method was used.
                  charge for fire assay’). In other               Core logging completed on paper. Selective sampling method was
                  cases more explanation may                      employed around areas of interest. Sampling intervals measure
                  be required, such as where                      approx. 1m, half core sent for analysis, with half core retained for
                  there is coarse gold that has                   reference. Samples typically 1m half core, with samples prepared at
                  inherent sampling problems.                     the then Lundin Laboratory in Switzerland, then shipped to ALS
                  Unusual commodities or                          Chemex Vancouver for multi-element analysis by ICP.
                  mineralisation types (e.g.                -     Europa Metals. Diamond drill core, RC chips and underground cut
                  submarine nodules) may                          channel sampling methods used to obtain samples for geological
                  warrant disclosure of detailed                  logging and sampling. Geological and analytical data is recorded on
                  information.                                    hardcopy. Selective sampling method was employed around areas
                                                                  of interest. Sampling intervals measure approx. 1m, half core sent
Criteria      JORC Code explanation                                                 AMS Commentary
                                                               for analysis, with half core retained for reference. Samples sent to
                                                               ALS Seville for preparation and multi-element analysis by ICP. Half
                                                               core and RC samples reduced to -400 microns and 100g sub-
                                                               sample taken for analysis.
              •   Drill type (e.g. core, reverse
                  circulation, open-hole hammer,     •   A total of 172 diamond and RC drill holes (including wedges) totalling
                  rotary air blast, auger, Bangka,       59,658.73 metres, and 19 underground channels for 18.75 metres were
                  sonic, etc) and details (e.g.          used as the input database for geological modelling and resource
Drilling
                  core diameter, triple or               estimation. These holes include environmental monitoring holes.
techniques
                  standard tube, depth of            •   Drill core diameter was PQ, HQ, NQ, NQ2 and BQ depending upon depth.
                  diamond tails, face-sampling           Standard tube was used for Peñarroya drilling. Tripple tube method was
                  bit or other type, whether core        used for Lundin and Europa Metals’ campaigns.
                  is oriented and if so, by what     •   Europa Metals’ diamond core was orientated using the reflex ACT III.
                  method, etc).
                                                     •   Total core recovery, solid core recovery, Rock Quality Designation (RQD)
                                                         and fracture frequency were recorded on hardcopy tables for the diamond
              •   Method of recording and
                                                         drilling.
                  assessing core and chip
                                                     •   A total of 14,706 core recovery measurements exists in the database for
                  sample recoveries and results
                                                         the drilling with average recovery of 79%. The average for the Europa
                  assessed.
                                                         Metals’ diamond drilling is 96%. Core recovery is measured over run
                                                         lengths.
                                                     •   The drilling procedures for the historical works have not been reviewed
                                                         and as such, the measures taken for sample recovery and to ensure
                                                         representativity cannot be commented on.
              •   Measures taken to maximise
Drill                                                •   Efforts to maximise sample recovery for the Europa Metals’ drilling include:
                  sample recovery and ensure
sample                                                     -     Constant review of recovery data with drill crews,
                  representative nature of the
recovery                                                   -     Slowing drill rate in areas of broken ground,
                  samples.
                                                           -     Reducing run lengths in areas of broken ground.
                                                           o     Use of specific drilling fluids (stabilised slurries) in broken ground
                                                                 areas.
                                                     •    The resource database contains 3,012 bulk density measurements, with a
              •   Whether a relationship exists           total of 234 within the mineralised wireframe, with a mean value of 2.84
                  between sample recovery and             g/cm3.
                  grade and whether sample           •    A broad linear relationship between Pb+Zn grade and Bulk Density was
                  bias may have occurred due to           identified from scattergrams and the formula 2.7 + 0.02(Pb+Zn%) used to
                  preferential loss/gain of               estimate block density in relation to block grade within the block model,
                  fine/coarse material.                   density was capped the 3.5 g/cm3.

                                                     •   Selected intervals representing areas of interest were logged in the
                                                         Peñarroya drill holes. All Lundin and Europa Metals holes were logged in
              •   Whether core and chip                  their entirety. The historical Peñarroya core was re-logged by Europa
                  samples have been                      Metals geologists in 2018 in its entirety where the core was available.
                  geologically and                   •   Core logging was recorded on paper logs, using a combination of printed
                  geotechnically logged to a
                                                         graphic log templates (Peñarroya, Lundin), and paper (Europa Metals).
                  level of detail to support
                                                     •   Logging records lithology, textures, mineralisation, weathering, alteration
                  appropriate Mineral Resource
                                                         and veining where appropriate.
                  estimation, mining studies and
                                                     •   The core and channel logging has been completed to a sufficient level of
                  metallurgical studies.
                                                         detail to support appropriate Mineral Resource Estimations.
                                                     •   Geotechnical data for the drill holes has been reviewed.
Logging                                              •   Drill core was qualitative and quantitative in nature.
                                                     •   DH lithology, alteration, mineralisation and structural observations were
                                                         recorded by variable interval based on characteristic similarities and
              •   Whether logging is qualitative         change boundaries.
                  or quantitative in nature. Core    •   Summary interval information was inputted to Excel, comprising single
                  (or costean, channel, etc)             code field and codes to describe logged lithology, alteration, mineralisation
                  photography.                           and major structure for the interval.
                                                     •   Lundin and Europa Metals core is routinely photographed. Historical
                                                         Peñarroya core was photographed during the re-logging in 2018.
                                                     •   Channel sample logging was quantitative in nature and not photographed.
              •   The total length and               •   All drill core and RC chips were logged in their entirety.
                  percentage of the relevant         •   Channel samples were logged in their entirety.
                  intersections logged.              •   Graphic and schematic logs were produced for all drilling.
                                                     •   The sub-sampling techniques and sample preparation details are not
Sub-
                                                         known for the Peñarroya drill core.
sampling
              •   If core, whether cut or sawn       •   Lundin and Europa Metals’ core was cut in half using a core saw.
techniques
                  and whether quarter, half or all       Sampling was supervised by the geologist.
and sample
                  core taken.                        •   Europa Metals’ field duplicates are quarter core.
preparation
                                                     •   Underground channels were cut by angle grinder/circular saw. A channel
                                                         approximately 7 cm wide and 5 cm deep to obtain 2-3 kg sample.
Criteria     JORC Code explanation                                                  AMS Commentary
             • If non-core, whether riffled,
                                                      •   Channel samples were not split. They were sent to ALS as bulk 2-3kg
                tube sampled, rotary split, etc
                                                          samples.
                and whether sampled wet or
                                                      •   RC samples were riffled at the rig and were generally dry when split.
                dry.
                                                      •   The drilling procedures for the historical works have not been reviewed
                                                          and as such, the appropriateness cannot be commented upon. However,
             •   For all sample types, the
                                                          the lithology and assay determinations are sufficient for an Inferred
                 nature, quality and
                                                          category.
                 appropriateness of the sample
                                                      •   Channel sample collection and Europa Metals’ drilling procedures, sample
                 preparation technique.
                                                          size, preparation and analysis are considered appropriate for the
                                                          mineralogy and deposit type.
                                                      •   The drilling procedures for the historical works have not been reviewed
             •   Quality control procedures
                                                          and as such, the QC procedures cannot be commented upon.
                 adopted for all sub-sampling
                                                      •   All half core was taken on the left side.
                 stages to maximise
                                                      •   Samples were constrained by lithology but were 1m in length where
                 representivity of samples.
                                                          possible or divided equally where necessary.
             •   Measures taken to ensure that
                 the sampling is representative
                 of the in situ material collected,   •   Field duplicate scattergram analysis of the samples shows a good
                 including for instance results           correlation between the original and duplicate samples.
                 for field duplicate/second-half
                 sampling.
             •   Whether sample sizes are
                                                      •   Statistical analysis shows that samples are appropriate to the grain size of
                 appropriate to the grain size of
                                                          the material being sampled.
                 the material being sampled.
                                                      •   Historical Peñarroya assaying and laboratory procedures are unknown.
                                                      •   Commercial laboratories ALS Chemex Vancouver and ALS Seville
                                                          (ISO9001:2008) were used for Lundin and Europa Metals’ drill core
                                                          respectively and Europa Metals’ underground channel sample analysis.
             •   The nature, quality and
                                                      •   Multi-element analysis, including Pb, Zn, Cu, Ag by ICP-MS were
                 appropriateness of the
                                                          completed on all samples.
                 assaying and laboratory
                                                      •   Over limits samples were re-analysed using ore grade methods of
                 procedures used and whether
                                                          determination.
                 the technique is considered
                 partial or total.                    •   Sample analytical techniques are considered in line with industry standard
                                                          for this style of mineralisation.
                                                      •   Given the expected grades, lithology and deposit type, the laboratory
                                                          procedures are considered appropriate for this level of classification.


             •   For geophysical tools,
                 spectrometers, handheld XRF
                 instruments, etc, the
                 parameters used in
                                                      •   No geophysical tools, spectrometers or handheld XRF instruments were
                 determining the analysis
                                                          used in the exploration and resource work.
                 including instrument make and
                 model, reading times,
Quality of
                 calibrations factors applied
assay data
                 and their derivation, etc.
and
laboratory                                            •   QC sample insertion procedures were not employed during the historical
tests                                                     Peñarroya drill campaigns. However, Lundin re-analysis of Peñarroya drill
                                                          core pulp rejects does allow for comparison of original and pulp duplicate
                                                          analysis results for verification purposes.
                                                      •   Lundin Mining completed limited quarter core field duplicate insertion and
                                                          pulp reject re-analysis. No external standards.
                                                      •   Europa Metals conducted a QC programme of inserting quarter core field
             •   Nature of quality control                duplicates, course blank and pulp blank material, standards, selection of
                 procedures adopted (e.g.                 pulp repeats and submission of pulp rejects for umpire lab re-analysis.
                 standards, blanks, duplicates,       •   ALS Chemex and ALS Seville internal QC exists for the Peñarroya Lundin
                 external laboratory checks)              re-analysis, Lundin core and Europa Metals core and channel sample
                 and whether acceptable levels            batches.
                 of accuracy (i.e. lack of bias)      •   No significant issues were identified in the QC data.
                 and precision have been              •   The nature and quantity of QC data, procedures employed, level of
                 established.                             accuracy and precision are considered acceptable for the assigned
                                                          resource classification. The quality of assay data and laboratory tests is
                                                          acceptable for the resource classification for this deposit.
                                                      •   Shewhart Plots of the QC samples showed no sample bias and CRMS
                                                          returned within acceptable limits.
                                                      •   Nelson rules of monitoring were applied.
                                                      •   The nature and quantity of QC data for the channel sampling, procedures
                                                          employed, level of accuracy and precision are considered acceptable for
                                                          the assigned resource classification.
Criteria       JORC Code explanation                                                AMS Commentary
                                                     •   Drill core has been routinely verified by AMS geologists throughout the
                                                         various recent drilling programmes.
                                                     •   27 verification samples have been taken.
               •   The verification of significant
                                                     •   Geological data from gallery is observed and reported by geologists and
                   intersections by either
                                                         mining engineers.
                   independent or alternative
                                                     •   Paper recorded drill hole logging data is transferred to Access, imported
                   company personnel.
                                                         into Micromine 3D geological modelling software for validation.
                                                     •   No significant issues in the drill logging were observed. The logging is
                                                         accurate and suitable.


               •   The use of twinned holes.         •   There has been no verification twin drilling carried out.
Verification
of sampling
and
assaying                                             •   DGPS collar and survey excel data, and lab analytical data transferred
                                                         from lab.csv, to Excel and imported to Micromine 3D geological modelling
               •   Documentation of primary              software.
                   data, data entry procedures,      •   All analytical data generated from Lundin re-analysis and Lundin core
                   data verification, data storage       samples, Europa Metals’ core and channel samples for use as input to
                   (physical and electronic)             estimation have been verified by cross reference against lab assay
                   protocols.                            certificates, re-import and re-building of the project analytical database.
                                                     •   2018-2020 lab certificates were verified and checked against database
                                                         assays.

                                                     •   No adjustment to the analytical data was considered necessary, other than
               •   Discuss any adjustment to
                                                         conversion to zinc equivalents for reporting purposes, following industry
                   assay data.
                                                         best practice. Raw analytical data remained unchanged.

                                                     •   Peñarroya drill hole collar locations were measured off plans and sections,
                                                         located on the ground and picked up using Geomax 35 high-precision
               •   Accuracy and quality of
                                                         DGPS device. Accuracy +/-5 m. Peñarroya drill hole dip and azimuth
                   surveys used to locate drill
                                                         measured from historical plans, cross sections and longitudinal section.
                   holes (collar and down-hole
                                                         Accuracy +/-5 m.
                   surveys), trenches, mine
                                                     •   Europa Metals’ drill collar locations were surveyed using a Geomax Zenith
                   workings and other locations
                                                         35 DGPS device with sub-centimetre accuracy. Both RC and diamond
                   used in Mineral Resource
                                                         downhole surveys were competed at 5-10 m regular intervals using a
                   estimation.
                                                         REFLEX GYRO™ tool.
                                                     •   Old workings were surveyed using Lieca Disto tmx310 survey device.

Location of                                          •   Data was captured and located using a Universal Transverse Mercator
data points                                              (UTM). The geographic coordinate reference system used by the client
               •   Specification of the grid
                                                         was European Terrestrial Reference System 1989 UTM Zone 29 (‘ETRS89
                   system used.
                                                         / UTM29N’).
                                                     •   Elevations are reported in metres above sea level.



                                                     •   Topographic DTM taken from 5m resolution Lidar data MDT05-Lidar, from
               •   Quality and adequacy of               government mapping and survey association Plan Nacional de
                   topographic control.                  Ortofotografía Aérea (PNOA).
                                                     •   Topographic control is sufficient for level of resource category.



                                                     •   Drill and UG channel sample data spacing across the current resource
               •   Data spacing for reporting of         area ranges from approximately 50-100mx50-100m centres within the
                   Exploration Results.                  most densely tested area towards the NW, stepping out to approximately
                                                         200mx200m within the mid-section, and 100-200x500m in the SE.
Data
spacing        •   Whether the data spacing and
and                distribution is sufficient to
distribution       establish the degree of
                   geological and grade              •   The distribution of drillholes and UG channel sampling is sufficient to
                   continuity appropriate for the        establish the degree of geological and grade continuity appropriate for
                   Mineral Resource and Ore              JORC (2012) Indicated and Inferred classification of resources.
                   Reserve estimation
                   procedure(s) and
                   classifications applied.
 Criteria        JORC Code explanation                                                    AMS Commentary

                                                        •      Length weighted averages including internal waste were applied for
                 •   Whether sample compositing
                                                               reporting of exploration results.
                     has been applied.
                                                        •      The details are shown with the accompanying tables.

                 •   Whether the orientation of         •      Drilling and underground sampling is angled to intercept mineralised
                     sampling achieves unbiased                structures at high angle, as close to perpendicular to dip and strike as
                     sampling of possible structures           practicable.
                     and the extent to which this is    •      3D review of sections shows that there appears to be no sample bias
 Orientation
                     known, considering the deposit            introduced by drilling orientation.
 of data in
                     type.                              •      True thicknesses are reported in the accompanying tables.
 relation to
 geological      •   If the relationship between the
                     drilling orientation and the
 structure                                              •      The mineralisation is a steeply dipping vein and sampling tries to reduce
                     orientation of key mineralised
                                                               the bias by sampling on a perpendicular plane where possible.
                     structures is considered to
                                                        •      Review of drilling and channel sections with the lithological unit appear to
                     have introduced a sampling
                                                               show no obvious bias.
                     bias, this should be assessed
                     and reported if material.
                                                        •      Historical Peñarroya sample security protocols are not available.
                                                        •      Lundin/Europa Metals’ drill core is transported from site to logging facility in
                                                               securely covered core boxes by the Lundin/Europa Metals’ geologists.
                                                        •      Core logged and sampled in secure facility.
                                                        •      Samples are bagged in plastic bags and labelled with individual sample
 Sample
                 •   The measures taken to ensure              numbers, sample name and sample location. Each bag is sealed to avoid
 security
                     sample security.                          tampering and contamination.
                                                        •      Plastic bags are placed in dry weave bags.
                                                        •      Samples are delivered to laboratory by courier in secured boxes/bags.
                                                        •      Couriers transported the samples to ALS. The couriers were then
                                                               responsible for the chain of custody.
                                                        •      The samples arrive in good condition at ALS Seville.


                                                        •      Numerous site visits have been conducted to the Toral Project and core
                                                               processing facility in Ponferrada (licence number 15.199), the latest on the
 Audits or       •   The results of any audits or              29 August 2021 by Mr. James Hogg (CP).
 reviews             reviews of sampling                •      Data has also been reviewed regularly by AMS staff as it is received from
                     techniques and data.                      the laboratory and on submission of databases from Europa Metals.
                                                        •      Findings were satisfactory and suitable for use in mineral resource
                                                               estimation.




Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)

     Criteria               JORC Code explanation                                              AMS Comments
                      •   Type, reference name/number,
                          location and ownership including         •   Toral exploration permit number 15.199 (also referred to as
                          agreements or material issues                Permiso de Investigacion), is located approximately 400km
                          with third parties such as joint             northwest of Madrid, within the Province of León, Autonomous
                          ventures, partnerships, overriding           Community of Castile and Leon.
 Mineral                  royalties, native title interests,       •   Licence 15.199 covers an area of 20.29km².
 tenement and             historical sites, wilderness or          •   Exploration licence 15.199 is owned by Europa Metals Iberia., a
 land tenure              national park and environmental              wholly owned subsidiary of Europa Metals Ltd. The licence was
 status                   settings.                                    renewed on 15 November 2020 for a further period of 3 years.

                      •   The security of the tenure held at
                          the time of reporting along with
                                                                   •   All tenements are in good standing.
                          any known impediments to
                                                                   •   AMS are unaware of any impediments that may affect the licences.
                          obtaining a licence to operate in
                          the area.
                                                                   •   1972-1984 – Peñarroya-Adaro. 58 drill holes, 32 wedge drill holes.
                                                                   •   1992-1995 – Geominera. Data re-evaluation.
 Exploration
                                                                   •   2005-2008 – Lundin Mining. 7 drill holes.
 done by other        •   Acknowledgment and appraisal of
 parties                                                           •   2009-2011 – Goldquest Mining. Soil and rock geochemistry.
                          exploration by other parties.
                                                                       Historic gallery mapping. Data evaluation. NI43-101 Mineral
                                                                       Resource Estimate
                                                                   •   2012-2015 – Portex Mining Corporation. Geological mapping.
    Criteria         JORC Code explanation                                            AMS Comments
                                                              Data re-evaluation.
                                                          •   2015-2016 – Goldquest Iberica S.L. Soil and rock geochemistry.
                                                              Geological mapping.
                                                          •   2016-2017 – Goldquest Iberica S.L. (Europa Metals Limited). 6 drill
                                                              holes. Historic gallery mapping and sampling. Data re-evaluation
                                                              and interpretation.

                                                          •   The Toral project is located in the Southwestern part of the
                                                              regional West Asturian Leonese Zone (WALZ), a major tectono-
                                                              stratigraphic unit of the Hercynian Orogeny.
                                                          •   The mineralisation at Toral is considered as structurally controlled
                                                              carbonate hosted Pb-Zn type. Shear and thrust fault controlled
Geology        •   Deposit type, geological setting           mineralisation within favourable carbonate lithology and favourable
                   and style of mineralisation                contrasting contacts between carbonates and shales.
                                                          •   Styles of mineralisation are boudinage drusy quartz vein,
                                                              replacement breccia, disseminated clots associated with silica,
                                                              carbonate and chlorite alteration.
                                                          •   Main metallic minerals are Sphalerite, Galena, Pyrite, Chalcopyrite
                                                              and silver.
                                                          •   Topographic DTM taken from 5m resolution Lidar data MDT05-
                                                              Lidar, from government mapping and survey association Plan
                                                              Nacional de Ortofotografía Aérea (PNOA).
               •   A summary of all information                •     Drilling:
                   material to the understanding of            -     Number of drillholes used: 172
                   the exploration results including a         -     Collar East: 679962 mE – 684690 mE
                   tabulation of the following                 -     Collar North: 4708653 mN – 4710598 mN
                   information for all Material drill          -     Collar RL: 411 mRL – 754 mRL
                   holes:                                      -     Azimuth: 000degrees - 354degrees
                   o easting and northing of the               -     Dip: -90degrees - -40degrees
                        drill hole collar                      -     Length: 35.40m – 1285.3m
                   o elevation or RL (Reduced                  -     Interception depth: 588 mRL – -398 mRL
                        Level – elevation above sea            -     1,615 Pb and Zn assay values (from 115 drillholes)
                        level in metres) of the drill          -     1,454 Ag assay values (from 101 drillholes)
Drill hole              hole collar                            •     UG Channels:
Information        o dip and azimuth of the hole               -     Number of channels: 19
                   o down hole length and                      -     Collar East: 680917mE – 682607mE
                        interception depth                     -     Collar North: 4709161mN – 4709996mN
                   o hole length.                              -     Collar RL: 447mRL – 693mRL
                                                               -     Azimuth: 010degrees - 313degrees
                                                               -     Dip: -24degrees - 19degrees
                                                               -     Length: 0.25m – 4.25m
               •   If the exclusion of this information
                   is justified on the basis that the
                   information is not Material and
                   this exclusion does not detract
                                                          •   No data is being excluded.
                   from the understanding of the
                   report, the Competent Person
                   should clearly explain why this is
                   the case.
               •   In reporting Exploration Results,
                   weighting averaging techniques,
                                                          •   During block model interpolation, the influence of some isolated
                   maximum and/or minimum grade
                                                              high-grade values was found to be sufficiently localised and did not
                   truncations (e.g. cutting of high
                                                              have undue influence on the estimates of grade. It was decided
                   grades) and cut-off grades are
                                                              that no need for top cutting was required.
                   usually Material and should be
                   stated.
               •   Where aggregate intercepts
                   incorporate short lengths of high
                   grade results and longer lengths
Data                                                      •   Data aggregation or Grade Compositing rules for the reporting of
aggregation        of low grade results, the
                                                              exploration drill and channel significant results were minimum
methods            procedure used for such
                                                              width 1m, minimum average grade 0.5% ZnEq, maximum
                   aggregation should be stated and
                                                              allowable internal waste of 2m.
                   some typical examples of such
                   aggregations should be shown in
                   detail.
                                                          •   Zn equivalent calculations were based on 3 year trailing average
                                                              price statistics obtained from the London Metal Exchange and
               •   The assumptions used for any
                                                              London Bullion Market Association giving an average Zn price of
                   reporting of metal equivalent
                                                              US$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/oz.
                   values should be clearly stated.
                                                          •   Recovery and selling factors were incorporated into the calculation
                                                              of Zn Eq values.
     Criteria             JORC Code explanation                                           AMS Comments
                                                               •   It is the Company’s opinion that all the elements included in the
                                                                   metal equivalents calculation (zinc, lead and silver) have a
                                                                   reasonable potential to be recovered and sold.




                                                               •   Mineralisation is interpreted as sub-vertical to steeply dipping to
                    •   These relationships are                    the NE.
                        particularly important in the          •   Drilling and underground sampling considered the nature of the
                        reporting of Exploration Results.          mineralisation prior to commencement of exploration.
 Relationship
 between
                    •   If the geometry of the                 •   Angled drilling is sub-perpendicular to +/- 20º oblique to
 mineralisation
                        mineralisation with respect to the         mineralisation.
 widths and
 intercept
                        drill hole angle is known, its         •   Review of drilling and channel sections with the lithological unit
                        nature should be reported.                 appear to show no obvious bias.
 lengths
                    •   If it is not known and only the
                                                               •   True thickness of mineralisation ranges from approximately 90%-
                        down hole lengths are reported,
                                                                   60% downhole interval length.
                        there should be a clear statement
                                                               •   True lengths are reported in the tables, as calculated by
                        to this effect (e.g. ‘down hole
                                                                   Micromine.
                        length, true width not known’).
                    •   Appropriate maps and sections
                        (with scales) and tabulations of
                        intercepts should be included for
                                                               •   Appropriate scaled diagrams are included within the AMS Toral
 Diagrams               any significant discovery being
                                                                   JORC (2012) Resource Statement and Technical Report.
                        reported. These should include,
                                                               •   Tables of intercepts are included in the relevant sections.
                        but not be limited to a plan view
                        of drill hole collar locations and
                        appropriate sectional views.
                    •   Where comprehensive reporting
                        of all Exploration Results is not      •   All available exploration data for the Toral deposit area has been
 Balanced               practicable, representative                collected and reported.
 reporting              reporting of both low and high         •   Representative data from all drilling and underground channel
                        grades and/or widths should be             sampling has been reported.
                        practiced to avoid misleading
                        reporting of Exploration Results.
                    •   Other exploration data, if             •   No geophysical works have been completed.
                        meaningful and material, should        •   Geological mapping and solid geology map generation completed.
                        be reported including (but not
                                                               •   Structural interpretation and 3D modelling completed.
                        limited to): geological
                                                               •   Soil geochemical surveys demonstrate strong coherent Zn in soil
                        observations; geophysical survey
                                                                   anomalism coincident with interpreted controlling structures.
 Other                  results; geochemical survey
 substantive            results; bulk samples – size and       •   Geotechnical tests have been carried out on 84 samples chosen
 exploration data       method of treatment;                       by Europa Metals in different lithologies. Data have been compiled
                        metallurgical test results; bulk           from 48 samples tested for geotechnical studies from old reports
                        density, groundwater,                      from Peñarroya.
                        geotechnical and rock                  •   Metallurgical testing has been completed at Wardell Armstrong’s
                        characteristics; potential                 laboratory. The results of the testwork are discussed within the
                        deleterious or contaminating               technical report.
                        substances.
                    •   The nature and scale of planned        •   Surface drilling and trenching works testing open strike extent to
                        further work (e.g. tests for lateral       the SE and NW and infill drilling within current resource limits to
                        extensions or depth extensions or          increase confidence and resource class.
                        large-scale step-out drilling).        •   Increased metallurgical and recovery test work.
 Further work       •   Diagrams clearly highlighting the
                        areas of possible extensions,
                                                               •   Appropriate scaled diagrams and maps are included within the
                        including the main geological
                                                                   AMS Toral JORC (2012) Resource Statement and Technical
                        interpretations and future drilling
                                                                   Report.
                        areas, provided this information is
                        not commercially sensitive




Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

 Criteria          JORC Code explanation                                                 AMS Comments
                                                             •   Analytical data is pared by query with sampling data via sample
                                                                 number.
                   •   Measures taken to ensure that         •   AMS has cross referenced the analytical database with laboratory
                       data has not been corrupted by,           certificates.
                       for example, transcription or         •   Micromine 3D geological modelling and estimation software used
                       keying errors, between its initial        for import, validation and QAQC verification assessment.
                       collection and its use for Mineral    •   Basic core and sample storage, handling, data capture and
                       Resource estimation purposes.             transfer methodologies discussed and are considered satisfactory.
 Database
                                                             •   The database is suitable for use for use in Mineral Resource
 integrity
                                                                 Estimates.
                                                             •   Micromine 2021 software was used to validate the channel
                                                                 sampling and drill hole databases.
                                                             •   Data checks include overlapping and missing intervals, trace
                                                                 errors, missing survey and coordinate data, lithology, consistency
                   •   Data validation procedures used.
                                                                 of sample lengths interval files. Checks for out of range values
                                                                 were also made.
                                                             •   No significant errors were found within the database. Some minor
                                                                 typographical errors were identified and fixed.
                   •   Comment on any site visits            •   The Competent Person for the resource estimation is Mr. James
                       undertaken by the Competent               Hogg. Mr Hogg’s, last site visit was completed on the 29August
                       Person and the outcome of those           2021.
 Site visits           visits.                               •   Site visits have not identified any issues relating to the reporting of
                                                                 mineral resources.
                   •   If no site visits have been           •   Site visits have been undertaken.
                       undertaken indicate why this is
                       the case.
                                                             •   Based upon the level of available information, geological and
                   •   Confidence in (or conversely, the         deposit complexity, interpretation of the main lithological
                       uncertainty of) the geological            boundaries and controls to mineralisation are considered
                       interpretation of the mineral             satisfactory and appropriate for the assigned resource class.
                       deposit.                              •   Fault modelling is simplified, and further refinement will improve
                                                                 the models accuracy moving forward.
                                                             •   Drillhole lithological and analytical information, prospect scale
                                                                 surface geological mapping, underground mapping and sampling,
                                                                 location of underground workings were used in geological
                   •   Nature of the data used and of            interpretation.
                       any assumptions made.                 •   Mineralisation is modelled as a continuous unit within the major
                                                                 fault units, however it is anticipated some smaller scale faulting
                                                                 and offset post mineralisation will be present which is not
                                                                 accounted for in modelling.
 Geological                                                  •   Alternative interpretations infer potential thrust repeats and
 interpretation    •   The effect, if any, of alternative        potential for additional parallel mineralised zones. However, at the
                       interpretations on Mineral                level of information this interpretation remains unsupported by drill
                       Resource estimation.                      data and conceptual in nature.

                                                             •   Drillhole lithological and analytical information and underground
                                                                 channel mapping and sampling were used in geological
                   •   The use of geology in guiding and         interpretation.
                       controlling Mineral Resource          •   The geological model was used to guide the interpretation and
                       estimation.                               continuity of Zn-Pb mineralised domains.
                                                             •   Post mineralisation transfer faults are interpreted to affect
                                                                 continuity by minor offset.
                                                             •   Grade continuity is currently interpreted to be slightly greater down
                                                                 dip forming “shoots”. Faulting effects geological continuity on a
                   •   The factors affecting continuity
                                                                 local scale (50-100m) perpendicular to the strike on mineralisation.
                       both of grade and geology.


                                                             •   Mineralisation is encountered at surface and based on current
                   •   The extent and variability of the         testing, extends to approximately 1,100m below the surface.
                       Mineral Resource expressed as             Mineralisation is currently tested across a 3,600m strike length, the
 Dimensions            length (along strike or otherwise),       orientation of mineralisation zone is approximately 110 degrees,
                       plan width, and depth below               averaging approximately 3.5m in thickness and ranging from ~2m
                       surface to the upper and lower            to ~5.5m.
                       limits of the Mineral Resource.       •   Mineralisation is encountered at surface as a process of the
                                                                 incisions.
Criteria         JORC Code explanation                                                 AMS Comments
                                                           •   As with previous resource estimates completed by AMS (2017,
                                                               2018, 2019, 2020) wireframe solid models were created for each
                                                               domain based on a mineralisation threshold of approximately
                                                               0.2% for Zn and Pb (approximately 0.4% Zn+Pb). Analysis of Zn
                                                               and Pb grades in cross section and in scatter plots showed a
                                                               strong relationship and no requirement to model Zn and Pb
                                                               separately was identified. Ag showed a strong correlation with Pb
                                                               and was estimated within the Zn/Pb mineralised domain.
                                                           •   The updated wireframes were generated using Micromine’s
                                                               implicit vein modelling functionality and incorporated major fault
                                                               boundaries to better honour offsets in the structure and preserve
                                                               thicknesses between intercepts. Interpretation of the mineralised
                                                               domains was guided by geological interpretation of the deposit
                                                               incorporating structural and lithological boundaries and surface
                                                               expression in topographical data and outcrop mapping.
                                                           •   A weathering surface which represents the approximate transition
                 •   The nature and appropriateness
                                                               partially weathered material to material dominated by joint
                     of the estimation technique(s)
                                                               weathering and fresh rock was modelled manually in cross
                     applied and key assumptions,
                                                               section.
                     including treatment of extreme
                                                           •   A main structure or vein (MV) was modelled and split into four
                     grade values, domaining,
                                                               fault units. Four subordinate structures accounting for less than
                     interpolation parameters and
                     maximum distance of                       1% of the mineralised volume were modelled manually using
                                                               cross section string interpretation. Some drill holes are outside the
                     extrapolation from data points. If
                                                               licence to the northwest. The model included these drillholes, but
                     a computer assisted estimation
                     method was chosen include a               the resultant block model was filtered to only include blocks within
                                                               the licence boundary.
                     description of computer software
                     and parameters used.                  •   To the northwest the resource is truncated by the licence
                                                               boundary and are extended approximately 10m past the south
                                                               easterly most drillhole which was mineralised but contained sub-
                                                               economic grades (3 m at 2.4% ZnEq). The total strike length of
                                                               the modelled mineralisation within the licence is approximately 3.1
                                                               km. The structure remains open to the southeast. Down dip the
                                                               model was extrapolated approximately 50-200m below the
Estimation and
                                                               deepest sample in the northwest and central parts of the deposit,
modelling
                                                               and approximately 250-280m below the deepest sample in the
techniques
                                                               southeast with consideration of depths tested along strike to the
                                                               northwest. The models extent from surface to a range of
                                                               approximately 800 - 1150 m below the surface. Extents of
                                                               extrapolation are considered appropriate for the level of
                                                               information, deposit type, strike and depth extents tested,
                                                               observed and geostatistical grade continuity and the assigned
                                                               resource classification.

                                                           •   The estimates have been reconciled against previous AMS
                 •   The availability of check                 estimates.
                     estimates, previous estimates         •   The increases / decreases are related to data confidence and
                     and/or mine production records            additional samples and updated models.
                     and whether the Mineral               •   A full description for the differences is described in the body text.
                     Resource estimate takes               •   There are no historical production records to validate against.
                     appropriate account of such data.

                                                           •   It is the opinion of the Company that Ag will be recovered along
                                                               with Pb and Zn and a credit paid on refining.

                 •   The assumptions made regarding
                     recovery of by-products.




                                                           •   No estimation of deleterious elements has been made at this time
                                                               and it is anticipated this will be conducted on completion of a block
                 •   Estimation of deleterious                 model which is to be used for PFS.
                     elements or other non-grade
                     variables of economic
                     significance (e.g. sulphur for acid
                     mine drainage characterisation).
Criteria         JORC Code explanation                                                   AMS Comments
                                                              •   A uniform cell block model of 25m E, 10 m N, 25m Z was restricted
                                                                  to the wireframes using block factors. The block model was rotated
                 •   In the case of block model                   by 20degrees in plain view to best match the trend of
                     interpolation, the block size in             mineralisation. The uniform model and 2m sample composites for
                     relation to the average sample               the mineralised domain were then flattened to a constant vertical
                     spacing and the search                       plane striking 110degrees to account for fault offsets, improve
                     employed.                                    variography and grade mapping. Thickness was preserved in the
                                                                  flattening process and no lateral stretching was applied.

                 •   Any assumptions behind                   •   Wireframe models included minimum anticipated mining width of
                     modelling of selective mining                ~2m.
                     units.
                                                              •   As with previous resource estimates completed by AMS (2017,
                                                                  2018, 2019 and 2020) wireframe solid models were created for
                                                                  each domain based on a mineralisation threshold of approximately
                 •   Any assumptions about                        0.2% for Zn and Pb (approximately 0.4% Zn+Pb).
                     correlation between variables.           •   Analysis of Zn and Pb grades in cross section and in scatter plots
                                                                  showed a strong relationship and no requirement to model Zn and
                                                                  Pb separately was identified. Ag showed a strong correlation with
                                                                  Pb and was estimated within the Zn/Pb mineralised domain.
                                                              •   The updated wireframes were generated using Micromine’s implicit
                                                                  vein modelling functionality and incorporated major fault
                                                                  boundaries as inclined and vertical planes. Interpretation of the
                 •   Description of how the geological            mineralised domains was guided by geological interpretation of the
                     interpretation was used to control           deposit incorporating structural and lithological boundaries such as
                     the resource estimates.                      footwall slate contacts and surface expression in topographical
                                                                  data and outcrop mapping.


                                                              •   During block model interpolation, the influence of some isolated
                 •   Discussion of basis for using or
                                                                  high-grade values was found to be sufficiently localized and did not
                     not using grade cutting or
                                                                  have undue influence on the estimates of grade.
                     capping.
                                                              •   It was decided that no need for top cutting was required.
                                                              •   The block model was validated visually in long section and cross
                                                                  section to inspect assay grades vs block grades, particular
                 •   The process of validation, the               attention was given to areas of low grade that may be influenced
                     checking process used, the                   by higher grade samples within search radii. The mean values
                     comparison of model data to drill            including declustered mean of the input data were compared
                     hole data, and use of                        against the output data along with comparison of histograms.
                     reconciliation data if available.            Several sensitivity checks were completed using different kriging
                                                                  neighbourhoods.

                 •   Whether the tonnages are                 •   Tonnages are estimated on a dry basis.
                     estimated on a dry basis or with
Moisture
                     natural moisture, and the method
                     of determination of the moisture
                     content.
                                                              •   For the purpose of reporting updated resources with reasonable
                                                                  prospect of eventual economic extraction a cut-off grade of 4% Zn
                                                                  equivalent was selected, based upon mining, processing, and
                                                                  production rate parameters identified in the updated scoping study
                                                                  (2020), using a three-year trailing average price for Zn, Pb and Ag.
Cut-off          •   The basis of the adopted cut-off         •   Zn equivalent calculations were based on 3 year trailing average
parameters           grade(s) or quality parameters               price statistics obtained from the London Metal Exchange and
                     applied.                                     London Bullion Market Association giving an average Zn price of
                                                                  US$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/oz.
                                                              •   Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver
                                                                  credits as well as lead and is the parameter used to define the cut-
                                                                  off grade used for reporting resources (Zn Eq (PbAg)% = Zn +
                                                                  Pb*0.867 + Ag*0.027).
                 •   Assumptions made regarding               •   Assumed mining methods are based upon a review of methods of
                     possible mining methods,                     extraction, cost and performance on similar type deposits.
                     minimum mining dimensions and                Summary of mining and processing costs used in determination of
                     internal (or, if applicable, external)       economic cut off. Mechanised Cut and fill mining method
                     mining dilution. It is always                assumed.
Mining factors       necessary as part of the process         •   Total Mining Processing cost estimated at US$62.93/t. Dilution
or assumptions       of determining reasonable                    assumed at 90% and 10%.
                     prospects for eventual economic
                     extraction to consider potential
                     mining methods, but the
                     assumptions made regarding
                     mining methods and parameters
                     when estimating Mineral
Criteria        JORC Code explanation                                                AMS Comments
                   Resources may not always be
                   rigorous. Where this is the case,
                   this should be reported with an
                   explanation of the basis of the
                   mining assumptions made.
                • The basis for assumptions or            •   Assumed processing methods are based upon a review of
                   predictions regarding                      methods of extraction, cost and performance of similar type
                   metallurgical amenability. It is           deposits.
                   always necessary as part of the        •   Assumed metallurgical recoveries are Zn 85%, Pb 86% and 82%
                   process of determining                     Ag.
                   reasonable prospects for eventual      •   Assumed concentrate selling factors are Zn 85%, Pb 95%, Ag 89%
                   economic extraction to consider
Metallurgical
                   potential metallurgical methods,
factors or
                   but the assumptions regarding
assumptions
                   metallurgical treatment processes
                   and parameters made when
                   reporting Mineral Resources may
                   not always be rigorous. Where
                   this is the case, this should be
                   reported with an explanation of
                   the basis of the metallurgical
                   assumptions made.
                • Assumptions made regarding              •   No assumptions are made on environmental factors other than the
                   possible waste and process                 cost to back fill waste tailings.
                   residue disposal options. It is        •   Flora and fauna studies were started in 2019 by the companies
                   always necessary as part of the            and institution of “Universidad de Leon” and “Mas que pájaros,
                   process of determining                     biologia, ecoturismo y medioambiente S.L”. Their report is
                   reasonable prospects for eventual          pending.
                   economic extraction to consider        •   AMS has not reviewed any Environmental, Social and Permitting
                   the potential environmental                (ES&P) documents or licences.
                   impacts of the mining and              •   AMS understands that there are no legal or project permitting,
Environmental      processing operation. While at             environmental and social settings issues or risks.
factors or         this stage the determination of        •   No red flags were identified via the site visit or study desk review.
assumptions        potential environmental impacts,
                   particularly for a greenfields
                   project, may not always be well
                   advanced, the status of early
                   consideration of these potential
                   environmental impacts should be
                   reported. Where these aspects
                   have not been considered this
                   should be reported with an
                   explanation of the environmental
                   assumptions made.
                • Whether assumed or determined.          •   The bulk density was calculated using the Archimedes method
                   If assumed, the basis for the              weighting the samples in air and water using a Kern precision
                   assumptions. If determined, the            balance.
                   method used, whether wet or dry,       •   Bulk density measurements were carried out on most of the
                   the frequency of the                       drillholes, in both mineralised and un-mineralised samples.
                   measurements, the nature, size         •   The resource database contains 3,012 bulk density
                   and representativeness of the              measurements, with a total of 234 within the mineralised
                   samples.                                   wireframe, with a mean value of 2.84 g/cm3.
                • The bulk density for bulk material      •   No bulk material was measured.
                   must have been measured by
Bulk density       methods that adequately account
                   for void spaces (vugs, porosity,
                   etc), moisture and differences
                   between rock and alteration
                   zones within the deposit.
                                                          •   The resource database contains 3,012 bulk density
                                                              measurements, with a total of 234 within the mineralised
                •   Discuss assumptions for bulk
                                                              wireframe, with a mean value of 2.84 g/cm3.
                    density estimates used in the
                                                          •   A broad linear relationship between Pb+Zn grade and Bulk
                    evaluation process of the different
                                                              Density was identified from scattergrams and the formula 2.7 +
                    materials.
                                                              0.02(Pb+Zn%) used to estimate block density in relation to block
                                                              grade within the block model, density was capped the 3.5 g/cm3.
Criteria         JORC Code explanation                                                    AMS Comments
                                                             •   In the updated resource estimation of the Toral property, the above
                                                                 definitions have been taken into consideration when applying
                                                                 resource classification. It was the opinion of the Competent Person
                                                                 that within some areas of the deposit sample density, Quality
                                                                 Control data, density determinations and drilling recoveries were
                                                                 sufficient to allow classification of some additional Indicated
                 •   The basis for the classification of
                                                                 Resources versus the previous (2020) Resource Estimate.
                     the Mineral Resources into
                                                             •   The area of the previous Indicated Resources was still found to be
                     varying confidence categories.
                                                                 valid with the addition of some new drilling at higher elevations
                                                                 which was considered suitable for inclusion in the Indicated
                                                                 Resource. Within the indicated area the mean average distance of
                                                                 composites is 95m and the mean closest distance 48m. The
                                                                 remaining blocks within the block model were classified to the
Classification                                                   Inferred category.
                 •   Whether appropriate account has         •   The assigned classification of Inferred and Indicated reflects the
                     been taken of all relevant factors          Competent Persons’ assessment of the accuracy and confidence
                     (i.e. relative confidence in                levels in the input data and the resulting Mineral Resource
                     tonnage/grade estimations,                  Estimate.
                     reliability of input data, confidence
                     in continuity of geology and metal
                     values, quality, quantity and
                     distribution of the data).
                                                             •   The result reflects the quality and quantity of data, geostatistical
                 •   Whether the result appropriately            analysis of correlation and relationship between mineralised
                     reflects the Competent Person’s             samples (semi-variography) and the Competent Person’s view of
                     view of the deposit.                        the deposit.
                                                             •   The semi-variography reflects the sample density.
                                                             •   The 2021 Mineral Resource has been reviewed internally as part
Audits or        •   The results of any audits or                of normal validation processes by AMS.
reviews              reviews of Mineral Resource             •   The AMS 2021 resource estimate has not been audited or
                     estimates.                                  reviewed externally at the time of writing.

                 •   Where appropriate a statement of        •   It is the Competent Person’s opinion that the level of confidence is
                     the relative accuracy and                   consistent with the level of Inferred and Indicated categorised
                     confidence level in the Mineral             mineral resources.
                     Resource estimate using an              •   Geostatistical assessment of confidence limits such as conditional
                     approach or procedure deemed                simulation of grades has not been conducted at this time.
                     appropriate by the Competent            •   Interpretation of the thickness and therefore volume of the
                     Person. For example, the                    mineralisation along with bulk density have the greatest effect on
                     application of statistical or               the contained metal.
                     geostatistical procedures to            •   Kriging neighbourhood and the control of higher grade samples
                     quantify the relative accuracy of           and preventing them from over smoothing is also important in
                     the resource within stated                  producing a realistic estimate.
                     confidence limits, or, if such an       •   It is the Competent Person ’s opinion that the level of confidence is
                     approach is not deemed                      consistent with the level of Indicated and Inferred categorised
                     appropriate, a qualitative                  mineral resources.
Discussion of
                     discussion of the factors that
relative
                     could affect the relative accuracy
accuracy/
                     and confidence of the estimate.
confidence
                 •   The statement should specify            •   The estimate is a local estimate to the 25m block scale; however,
                     whether it relates to global or             the data density is too sparse to allow modelling of selective units
                     local estimates, and, if local, state       inside of the 25m panel scale.
                     the relevant tonnages, which            •   As with all kriged estimates there is a degree of smoothing.
                     should be relevant to technical
                     and economic evaluation.
                     Documentation should include
                     assumptions made and the
                     procedures used.
                 •   These statements of relative            •   There are no historical production records from the deposit.
                     accuracy and confidence of the
                     estimate should be compared
                     with production data, where
                     available.

Date: 01-10-2021 09:00:00
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