BAYAN MINING AND MINERALS LIMITED — Capital/Financing Update 2021

Aug 29, 2021

ASX ANNOUNCEMENT

30 August 2021

Issue of Management Incentive Securities

Balkan Mining and Minerals Ltd (BMM or the Company) (ASX: BMM) advises that on the back of encouraging initial exploration results, the Company has agreed to issue incentive Options and Performance Rights (collectively Incentive Securities ) to the Company’s General Manager of Exploration, Mr Dejan Jovanovic, under the terms of the Company’s Performance Rights and Options Plan ( Plan ).

Mr Jovanovic is responsible for overseeing the Company’s exploration operations in Serbia and the Company is pleased with progress made to date.

The key terms of the Incentive Securities are as follows:

• 250,000 unlisted Options with an exercise price of $0.75, expiry date on 31 August 2023 and are subject to a vesting condition of one year of continued employment from the date the Options are issued;

• 250,000 unlisted Options with an exercise price of $1.00, expiry date on 31 August 2023 and are subject to a vesting condition of one year of continued employment from the date the Options are issued; and

• 500,000 unlisted Performance Rights, which will vest upon a performance hurdle of the successful return of a “commercial lithium/borate” drilling intersection, on or before 31 August 2023.

  • A commercial drilling intersection is defined to be an ore grade and width discovery metric of 4 meters (a standard underground continuous mining width) of mineralisation in the form of either borate mineralisation containing +25% B2O3 or lithium – boron mineral containing +0.8% Li2O and +12.5% B2O3.

Satisfaction of the performance hurdle is to be determined by the Board.

The Performance Rights will otherwise be issued on standard terms and conditions which comply with the requirements of ASX Guidance Note 19 (in particular, sections 9, 10 and 11).

Please refer to the Company’s Prospectus dated 25 May 2021 for a summary of the terms and

conditions of the Plan.

An Appendix 3G: Notification of Issue, Conversion or Payment of Unquoted Equity Securities follows as a separate release.

Managing Director Ross Cotton, commented:

“Further to BMM’s announcement on 20 August 2021, I am pleased with the progress made by our Serbian team, led by Mr Jovanovic. Completing our recent mapping program to schedule was a significant milestone for BMM as we enter a busy and exciting time for our Rekovac Lithium/Borate project. As we go through this phase, it is important that we incentivise key members of our team”.

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Balkan Mining and Minerals Limited ABN 67 646 716 681

311 – 313 Hay Street, Subiaco WA 6008 T: +61 8 6489 0600 E:info@balkanmin.com www.balkanmin.com

ASX ANNOUNCEMENT 30 August 2021

For further information pls contact:

Ross Cotton Managing Director Tel: +61 8 6489 0600 E: Ross.Cotton@balkanmin.com

Media Inquiries Nick Doherty White Noise Communications Tel: +61 400 643 799

Authorised for release by the Managing Director of Balkan Mining and Minerals Limited

-ENDS-

ABOUT BALKAN MINING AND MINERALS

Balkan Mining and Minerals is an ASX listed company focused on the early-stage exploration through to development of borate and associated lithium in the Balkans. The Company’s Projects comprise the Rekovac, Dobrinja and Pranjani Lithium-Borate Projects which are located within the Republic of Serbia.

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Figure 1 - Balkan Mining and Minerals Project Locations

Balkan Mining and Minerals Limited ABN 67 646 716 681 311 – 313 Hay Street, Subiaco WA 6008 T: +61 8 6489 0600 E:info@balkanmin.com www.balkanmin.com

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ASX ANNOUNCEMENT 30 August 2021

Forward-looking Statements

Certain statements included in this release constitute forward-looking information. Statements regarding BMM’s plans with respect to its mineral properties and programs are forward-looking statements. There can be no assurance that BMM’s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that BMM will be able to confirm the presence of additional mineral resources, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of BMM’s mineral properties. The performance of BMM may be influenced by a number of factors which are outside the control of the Company and its Directors, staff, and contractors.

These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of exploration sample, mapping and drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves and resources, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the company’s prospects, properties and business strategy.

There is continuing uncertainty as to the full impact of COVID-19 on BMM’s business, the Australian economy, share markets and the economies in which BMM conducts business. Given the high degree of uncertainty surrounding the extent and duration of the COVID-19 pandemic, it is not currently possible to assess the full impact of COVID-19 on BMM’s business or the price of BMM securities.

Except for statutory liability which cannot be excluded, each of BMM, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in these forward-looking statements and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in forward-looking statements or any error or omission. BMM undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly, you should not place undue reliance on any forward-looking statement.

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Balkan Mining and Minerals Limited ABN 67 646 716 681 311 – 313 Hay Street, Subiaco WA 6008

T: +61 8 6489 0600 E:info@balkanmin.com www.balkanmin.com