Lykos provides December quarterly activities report

HIGHLIGHTS:

Sinjakovo

• First trench at Erak locality, within Zekil-Erak Prospect, completed. Three zones hosting polymetallic mineralisation of up to 60m wide identified – results pending at quarter end
• Rock chip SIRC393 near the trench returned 7.77 g/t gold, 2,070 g/t silver, 15.85% copper, 4.53% antimony and 0.72% zinc (58 g/t gold equivalent)
• 12 of 19 diamond-holes at RDK prospect completed at quarter end
• Landowner agreements signed and access tracks prepared for drilling at Erak, Bag and Kovacevac localities

Cajnice

• Twinning of historic holes at Berkovici Prospect completed
• The best results included 5m @ 0.53% lead
• Detailed mapping and fieldwork under assessment to identify priority targets

Sockovac

• Negotiations for access to Sockovac continue with recently re-elected government of Rebublika Srpska and newly appointed Mines Minister

Sinjakovo

At the Erak locality, within the Zekil-Erak prospect, three new polymetallic-bearing shear zones were identified from the first trench – measuring 1,018m in length – of the five-trench program, with the widest zone being about 60m of trench length.

This epithermal mineralisation consists of disseminated to nests and veinlets: barite 1-10% (locally 20%), Cu-Pb-Zn-Sb secondaries 1-10%, and rarely preserved primary minerals tetrahedrite, galena and antimonite (locally up to 1-10%) over trench lengths of between 10m and 60m.

Mineralisation is hosted in a mix of surface rocks common for phreatic systems: massive ironstone (up to a few metres wide), ferruginous shears (0.1-1m 3 wide) and diatreme/collapse breccias in limestone (ankeritic/marbly limestone in proximity to mineralisation) that are several metres wide.

Following on from Lykos’ intensive rock chip sampling campaign over the Erak locality in the September quarter, one further rock chip sample was collected in the December quarter, taken several metres from one of the mineralised zones, before field work was paused due to the onset of the winter period.

The sample was a 10x20x20cm rock specimen that returned the exceptional grade of 7.77 g/t gold, 2,070 g/t silver, 15.85% copper, 4.53% antimony and 0.72% zinc (58 g/t gold equivalent).

Due to longer than expected laboratory turnaround times, results from rock chip samples are pending.

At the RDK Prospect, seven holes have been completed since the previous announcement (6 October 2022) – SIDD006, SIDD007, SIDD008, SIDD009, SIDD010, SIDD013 and SIDD016. Drilling has been paused due to the onset of the winter period.

Results were returned for drill holes SIDD003, SIDD004, SIDD005 and SIDD006. The RDK prospect was never assayed for cobalt or tungsten and, encouragingly, results have so far returned anomalous cobalt (up to 0.022% cobalt over 6m) and copper results (3m @ 0.27% copper). Sulphide mineralised intervals have returned up to 0.4% tungsten over 3m, peaking at 0.86% tungsten over 1m.

Lykos believes that the cobalt and tungsten mineralisation warrant further investigation. All infill soil sampling results for the Krajevi Prospect have been received.

The sampling has identified two significant-sized polymetallic anomaly zones in soil, extending 2km in a northeast and south-west direction.

Cajnice

At the Cajnice Project, twinning of historical holes at the Berkovici Prospect confirmed historical observations of several narrow, lead-bearing shears. The mineralised zones are wider than anticipated at up to 5m wide. However, lead grades received were lower than expected. At the Gramusovici Prospect, assays from the final two drill holes of the program returned more narrow low-grade copper, lead and zinc results.

Sockovac

As outlined in Lykos’ Annual General Meeting’s Chairman’s address, recent elections for the government of Republika Srpska saw the reappointment of the Minister of Industry, Mining and Energy. Early indications are that this will provide a platform for Lykos to work through access issues at Sockovac and get exploration activities back on track.

The Republika Srpska government is pro-mining and appreciates the potential economic growth that responsible foreign investment can bring. Lykos remains confident that with a full term ahead, the re-elected government will support Lykos’ legitimate right to explore at Sockovac.