Lykos Metals : Exploration Update

ASX Release

13 April 2022

Exploration Update

Highlights

• • Newly discovered, significant copper-bearing outcrop at Cajnice identified as priority for drilling in early May

• • Trenching program planned for early May at Sinjakovo to investigate high grade copper-gold-silver-antimony in outcrop

• • Large-scale heliborne geophysical survey to commence imminently across all three projects

Base and precious metals exploration company Lykos Metals Limited (ASX: LYK)(Lykos or the Company) is pleased to present an exploration update for its 100%-owned Cajnice, Sinjakovo and Sockovac projects in Bosnia-Herzegovina.

The previously announced large-scale heliborne geophysical survey will soon commence at all three projects, concurrently with ongoing soil and rock chip sampling and mapping. The Company is preparing for copper exploration drilling at Cajnice in early May, with drilling at Sinjakovo and Sockovac planned to commence after detailed review and integration of the results of the heliborne survey.

Cajnice Project

A significant outcropping copper-bearing lode has been discovered at the Gramusovici locality, in the centre of the project area.

This outcrop has been extensively sampled since fieldwork commenced in March, and visible copper mineralisation was observed over a true thickness of 1.4m in outcrop, dipping at 20° to south-east. (See figure 1)

The copper-bearing zone outcrops on a slope about 25m below a plateau that offers suitable locations for drilling, which is scheduled to commence in early May.

Copper mineralisation is hosted in quartz-carbonate hydrothermal breccia, with chlorite schists in footwall and pyritic calcsilicates in the hanging wall. Dominant copper minerals are chalcocite, malachite and azurite, with rare chalcopyrite and bornite.

Several other instances of outcropping polymetallic mineralisation were observed in locations around the outcropping, mostly represented by Cu, Pb, Zn and pyrite/arsenopyrite, and all occurrences were rock chip sampled.

To date, 194 out of 2,165 soil samples in the current program have been collected. All results are pending (see Figure 2 for status of samples at Cajnice).

Figure 1: Copper-bearing outcrop at Cajnice and photos of samples taken. Note the geopick (33cm length) on image on the left used for scale.

Figure 2: Sampling status at Cajnice with notes on observed polymetallic mineralisation: Cu - copper, Pb - lead and py - pyrite.

Sinjakovo Project

A small outcrop containing a gossanous zone was discovered during the sampling program at the recently identified gold-in-soil anomaly to the southeast of the Sinjakovo project area.

The outcrop was subsequently rock chip sampled and returned 1.37% copper, 0.75% antimony, 0.73g/t gold and 69g/t silver (see Figure 3).

To date, results for 236 out of 472 samples from an ongoing infill soil sampling program have been received. The sample results confirmed both gold and copper in soil anomalies with results of up to 1,060 ppb (1.06 g/t) gold and 1,700 ppm (0.17%) copper.

Preparation is underway for a trenching program scheduled to commence in early May.

At the recently granted Jezero tenement, which extends the south-eastern portion of the project area, a first-pass soil sampling program has commenced at 200m spacing in a ridge-and-spur pattern. To date, 401 out of 612 samples have been collected, all results are pending.

Figure 3: Gossanous outcrop at Sinjakovo. Rock-chip SIRC191 has returned 1.37% copper, 0.75% antimony, 0.73g/t gold and 69g/t silver.

Figure 4: Surface sampling at Zekil-Erak area - gold results

Figure 5: Surface sampling at Zekil-Erak area - copper results

Figure 6: Soil sampling status at Sinjakovo project (Sinjakovo and Jezero tenements)