Variscan Mines: New High Grade Zinc Zones Intersected at San Jose Mine

NEW ZONES OF HIGH QUALITY ZINC

CUP AT SAN JOSE MINE

Strong points

• Analyzes of underground drilling have identified new areas of High grade zinc mineralization in the central area of ​​the San Jose mine.

168 Trend

• Ranking officerZinc mineralization in the previously untested 168 trend: o DDH NOVDDT003: 8.0 m @ 20.17% Zn

▪ Including 5.0 m @ 24.92% Zn

1. DDH NOVDD085: 9.0 m @ 8.73% Zn o DDH NOVDDT005: 3.0 m @ 19.20% Zn o DDH NOVDDT001: 2.8 m @ 17.86% Zn

• 1. DDH NOVDD086: 4.0 m @ 8.93% Zn o DDH NOVDDT002: 2.0 m @ 15.42% Zn
• 168 The trend remains open with significant potential for further extensions

Los Caracoles trend

• Los Caracoles trend analyzes continued to expand High-grade mineralization southbound below the level of the main gallery:
  o DDH NOVDD077: 8.0 m @ 5.16% Zn
  o DDH NOVDD079: 6.0 m @ 5.02% Zn
  o DDH NOVDD077B: 6.0 m @ 5.41% Zn
  o DDH NOVDD078B: 5.0 m @ 6.00% Zn
• Potential for an extension of +400 m of this trend based on assay results and visual estimates of the boreholes drilled to date

Update of the drilling program

• Further assay results from 12 diamond drill holes are pending; most holes show positive visual zinc mineralization
• The phase 2 drilling campaign is being accelerated, with a drilling rig deployed to test targets and extension extensions as well as to increase planned drilling footage

“We are pleased to announce this next round of very strong drill assay results that continue to demonstrate the potential for higher grade discoveries beyond historic mining work.

These results far exceeded our initial expectations based on the visual indications announced on November 23, 2021.

The previously untested Trend 168 drill results are exceptionally encouraging and represent real exploration success as we had no historical data to work on.

Drill results around Los Caracoles further extend the known trend, which remains open. The continued occurrences of high grade mineralization immediately below the main drift level in several parts of the mine are very important in defining our high grade inventory and future development scenarios.

Zinc was recently classified as a critical metal by the US government and is recognized as an important metal in the energy transition to net-zero. With a strong performance of the zinc price and a positive outlook for zinc prices, Variscan Mines is well positioned to take advantage of this momentum. ”

Variscan Mines Limited (“Varisque“or the”Society“or the”Group“) (ASX: VAR) is pleased to present assay results from the Phase 2 underground diamond drilling program at its San Jose mine, located in Cantabria, northern Spain.

Figure 1. Plan view of some mineralized intersections from drilling in Trend 168 and Trend Los Caracoles

While the current drilling program still has a way to work, it has already revealed:

• the presence of mineralized lenses extended laterally above and below the level of the main gallery
• mineralized lenses rated as more contiguous and wider in some areas
• significant areas of the core area are assessed as being underexploited with potential for future discoveries
• The extension of drilling on the Los Caracoles Trend successfully intersected mineralized lenses below the level of the main drift, increasing the strike length in this zone by an additional 200 m.
• Ongoing validation of the San Jose Mine Conceptual Model as a A multi-layered deposit consisting of multiple vertically stacked subhorizontal high-grade mineralized lenses of varying thickness, separated by dolomite intervals. This is consistent with the generally stratiform character of sulphide deposits in MVT Pb-Zn districts.1

Exploration potential

• The Phase 2 diamond drill program was primarily designed to extend the footprint of mineralization
• Significant potential for high grade mineralization extending below the lowest working elevation of the former producing mine; the majority of the mine has not been tested by deep drilling, providing an excellent opportunity for scale
• Increased likelihood that resources will be delineated above and below the level of the main gallery and extensions of known mineralized trends; this new analytical information provides important data that will be included in the mineral resource estimate

Figure 2. NOVDDT003 diamond drill core showing massive sphalerite in dolomite

Los Caracoles trend

Figure 3. Long north-south section of phase 2 drilling in the Los Caracoles corridor

(Also showing some drilling results from Phase 1 drilling – see ASX August 4, 2021 press release)

168 Trend

The drilling and geological mapping of site 168 have shown that this deposit is open both to the north and especially to the south. Positive drill results give confidence that additional high-grade ore lenses overlap with those already identified. This is important because these ores are among the highest grades encountered at the San Jose mine.

Look ahead

Preparation is underway for a full exploration program on the Novales-Udias project in 2022, which will include further drilling campaigns and metallurgical tests. The work program will be

allow the start of technical studies aimed at demonstrating the potential of a commercially viable project.

Variscan’s immediate objective is progressing with:

• underground drilling at the San Jose mine
• underground drilling of exit targets in old shallow mines
• return test results as soon as possible for market reporting

In addition, the Company will advance several follow-up activities and deliverables, including: