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METALSTECH LIMITED Capital/Financing Update 2021

Nov 3, 2021

65380_rns_2021-11-03_42676557-a61d-4fc9-bb71-c01aade5be46.pdf

Capital/Financing Update

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ASX Release 4 November 2021

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METALSTECH SIGNS OPTION TO ACQUIRE TLAMINO GOLD DEPOSIT NI 43-101 Resource of 7.1Mt at 3g/t for 680,000 Oz AuEq

Highlights

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Section 1 - Sampling Techniques and Data	Section 1 - Sampling Techniques and Data
(Criteria in this section applyto all succeedingsections)
Criteria	JORC Code Explanation	Details
Sampling techniques	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	• Routine samples over prospective mineralised intervals from diamond drill core as determined by an experienced geologist are 1m half drill core; or quarter core for duplicates (routine ½ core sample sawn into two ¼ core samples). • Entire sample sent to SGS laboratory in Bulgaria for preparation and fire assay analysis, • If coarse-grained gold is encountered then Au will also be analysed by screen fire assay. The remaining sample from the 90% of the original routine sample that was crushed to <2mm and dried is then riffle split again to produce another 1kg split. This 1kg split is then dry screened to a nominal 106 micron. Duplicate 30g fire assays with AAS finish are then performed on the undersize, and fire assay with gravimetric finish is done on the entire oversize fraction. Then the total gold content is calculate and reported, using the individual assays and weight of the fractions. • The ALS Loughrea laboratory performed the following analysis on each received pulp: • Gold by 30 gram fire assay with an ICP-AES finish (ALS code Au-ICP21) • Multi-element ICP-AES/MS analysis package (ALS code MS-ME61) following a 4- acid digestion • Over-grade gold (>10 ppm) by 30 gram fire assay with a gravimetric finish (ALS code Au-GRA21) • Over-grade silver (>100 ppm), copper (>1%), lead (>1%), zinc (>1%), arsenic (>1%), bismuth (>1%), molybdenum (>1%) or sulphur (>10%) by ICP-AES/MS over-grade package (ALS code OG62) • Over-grade silver (>1500 ppm) by 30 gram fire assay with a gravimetric finish (ALS code Ag-GRA21)
Drilling techniques	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).	• The previous drilling programs utilised diamond drilling. • The Qualified Person for the NI 43-101 Mineral Resource Estimate discussed core handling and logging procedure with the geological team and inspected drill core with comparison to geological logs made by Medgold geologists. Core handling procedures were found to be good, with daily inspections of the drill rig by geologists, photography and quick logging of the core at the drill rig before transport to the core processing facility. Core logging was found to be accurate and capture an appropriate level of detail. Zones of mineralization were clearly visible within the drill core.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples.	• Core recovery is measured as the length of core recovered versus the depth of the drill hole. In detail, the length of each ‘run’ of core recovered (between 0-3m) is measured and its length compared to the length the drillers measured from the drill rod advance. • Historic drill records indicate that core recovery at the Tlamino Project was consistently good, where historic mining voids have not been encountered.

Criteria	JORC Code Explanation	Details
	• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• No relationship between sample recovery and grade has been interpreted in assay results received so far as recovery is excellent.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	• The core was geologically and geotechnically logged to a level to support appropriate Mineral Resource estimatation, mining studies and metallurgical studies. Core is logged both qualitatively and quantitatively. • All logging data is digitally captured via excel spreadsheets, which are then validated when they are imported into a resource modelling software package.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• Routine samples over prospective mineralised intervals from diamond drill core as determined by an experienced geologist are sawn into 1m half drill core; or quarter core for duplicates. • Same side of drill core sampled to ensure no selective sampling bias. • The other half of the core was retained for geological reference and potential further sampling, such as metallurgical test work. • Duplicate samples (routine 1m ½ core sample sawn in half to produce two ¼ core samples) taken every 30 samples or at least one per hole if less than 30 samples taken. • A Certified Reference Material (CRM or ‘Standard’) is inserted into the routine sample sequence approximately every 30 samples or at least one per hole if less than 30 samples taken. • A blank (material with no concentrations of economic elements under consideration) is inserted into the routine sample sequence approximately every 30 samples or at least one per hole if less than 30 samples taken. • Sample prep techniques utilised are industry standard for Carpathian epithermal-style gold mineralisation and are considered appropiate. • Samples sizes are considered appropriate for the grain-size of the material being sampled.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	• Analysis completed by using 30g charge for fire assay for gold analysis • If coarse-grained gold is encountered then Au will also be analysed by screen fire assay. The remaining sample from the 90% of the original routine sample that was crushed to <2mm and dried is then riffle split again to produce another 1kg split. This 1kg split is then dry screened to a nominal 106 micron. Duplicate 30g fire assays with AAS finish are then performed on the undersize, and fire assay with gravimetric finish is done on the entire oversize fraction. Then the total gold content is calculate and reported, using the individual assays and weight of the fractions. • Analysis techniques utilised are industry standard for Carpathian epithermal-style gold mineralisation and are considered appropiate. • Based on the NI 43-101 Mineral Resource Estimate Report, the quality of the data is very high and all QA/QC checks and quality checks / security of sample measures have been followed to a high standard.

Criteria	JORC Code Explanation	Details
Verification of sampling	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• On receipt of assay results from the laboratory, the results are verified by the senior geologist of Medgold and by responsible geologists who compare the results with the geological logging and remaining drill core (or core photography if site access is not possible). • No twins have been completed yet. • All primary data (logging, sample intervals and assay results) is digitally captured via excel spreadsheets, which are then validated when they are imported into 3D modelling software package.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Locations of diamond drill hole collars, channel samples and mine workings are recorded using a local coordinate system.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• Data spacing is highly variable across the prospect. • No samples have been composited.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• Possibly further drilling is necessary to better constrain the orientation of the mineralised zone before a true thickness estimate can be made.
Sample security	• The measures taken to ensure sample security.	• Samples were securely stored in company facilities prior to being completely sealed and couriered directly to the SGS laboratory in Bulgaria.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• No audits/reviews of the sampling techniques and assay data has been completed at this stage.

Criteria	JORC Code Explanation	Details
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Medgold holds four ELs in south eastern Serbia, forming a contiguous block totalling approximately 386 square kilometres. Two of the aforesaid ELs – namely Donje Tlamino and Surlica-Dukat – form the Tlamino Property (the “Project”, the “Project”) and cover a total area of 192.4 square kilometres. The Property falls principally in the district of Pčinja, and the municipalities of Bosilegrad and Trigovište. On an approximate basis, the central coordinates of the Project are 609500mE/4693000mN (WGS84 UTM34N), or 22.3° east and 42.4° north. The Donje Tlamino and the Surlica-Dukat ELs are held by Medgold Istraživanja d.o.o., a Serbian registered company wholly owned by MGold International Ltd, a Malta registered company, which, in turn, owns all of the issued capital of Tlamino Mining Ltd (Tlamino Mining), a Malta registered company, which owns all of the issued capital of Medgold Istrazivanija d.o.o. which owns 100% of the legal interest in the Tlamino Gold Project.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	The project has had significant discovery based exploration over the past six years including soil sampling, induced polarization geophysics, surface and underground channel sampling, returning intervals of up to 84m at 5.6 g/t Au and 105.2 g/t Ag, and 52m at 2.20 g/t Au and 88 g/t Ag. Between 2018 and 2019, 55 diamond drill holes were completed at Tlamino for a total of over 9,000m, returning near-surface intervals including 30.0 meters of 5.45 g/t Au, 13.35 meters @ 5.06 g/t Au and 38.20 meters @ 3.98 g/t Au from the Barje Prospect. Mineralization at Barje is near-surface, breccia-hosted, and is developed along the plane of a low-angle fault. The modern exploration era at Tlamino commenced in the 1950’s when Yugoslav State companies explored the region primarily for lead and zinc. Precious metals were not commonly assayed in this period. The property was subsequently explored for gold by Avala Resources in the mid 2000’s. Historical exploration work at the Property may be summarized as follows; • 1930: limited surface and underground exploration was carried out by a private company at Božilovo Ležište. This work included two trenches, one short shaft and three exploratory adits with total underground development of approximately 250 metres. • 1950 to 1970: Yugoslav State exploration included geochemical sampling, mapping, geophysical surveys, trenching and drilling. Exploration at the time appears to have focused on base metal exploration. • 2005 – 2012: parts of the Property are known to have been held under an EL by Dundee Plemeniti Metali d.o.o., which was renamed as Avala Resources d.o.o. prior to being acquired by Avala Resources Ltd., (collectively, “Avala”). While the full details of the EL are not known, work is known to have included multiple stages of stream sediment, soil, and rock sampling from which geochemical anomalies were identified at the Karamanica and Barje prospects. Avala work culminated in the drilling of four exploration drill holes, totalling 831.2 metres at Barje during 2010 and 2011. These drill holes did not intersect any significant mineralization.
Geology	• Deposit type, geological setting and style of mineralisation.	The Barje Prospect is the most advanced prospect within the Tlamino Project. It is located on an east-west trending ridge at elevations ranging from approximately 1,100 metres in the east to 1,300 metres in the west. Historicalprospectinglocated two main areas of outcropping gold and base metal mineralization at Barje,drilling

Criteria	JORC Code Explanation	Details
		on the margin of these areas by Avala Resources Ltd, targeting steep feeder zones, failed to intersect significant mineralization. Drilling by previous owners has confirmed the continuation of mineralization between and to the west of the discovery outcrops in an area of 700 metres east-west by 250 metres north-south. The mineralization is interpreted to be controlled by a hydrothermal breccia, of up to 20 metres in thickness, following a structure inclined approximately 18° towards the south. This structure cuts a fault-bounded sequence of schist and conglomerate above a dacite sill intruded along a detachment surface at the top of the basement rocks. While mineralization is strongest in the hydrothermal breccia, a halo of lower-grade mineralization is also found in the overlying rocks. The hydrothermal breccia comprises transported clasts of the local wall-rocks cemented by a matrix of quartz ± calcite/siderite and sulphide minerals, including pyrite, arsenopyrite, sphalerite, galena and more rarely chalcopyrite and tennantite. Grains of electrum up to around 50 microns in size and containing approximately 60% gold and 40% silver, have been observed microscopically within the higher-grade mineralization.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Refer to the tables in the announcement at Appendix A and B.

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METALSTECH LIMITED Capital/Financing Update 2021

65380_rns_2021-11-03_42676557-a61d-4fc9-bb71-c01aade5be46.pdf

METALSTECH SIGNS OPTION TO ACQUIRE TLAMINO GOLD DEPOSIT NI 43-101 Resource of 7.1Mt at 3g/t for 680,000 Oz AuEq

Highlights

Tlamino Gold Project

Regional Setting

Geology

Barje, looking north

Metallurgical test work

JORC (2012) Compliance

Key Acquisition Terms

ENDS

Caution Regarding Forward-Looking Information

Competent Persons Statement and Important Geological Declaration

Appendix A: Drill Collars

Appendix B: Selected Drill Intersections

Section 1 - Sampling Techniques and Data

Section 2 - Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

Criteria	JORC Code Explanation	Details
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high- grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	• All cut-off grades are reported. • No top cut has been applied. • Weighted means for each interval are calculated by: First multiply each of the widths of the individual sample intervals within the significant intersection by the assay result (Au g/t or Ag g/t) of each individual sample. Then sum all these values and divide by the overall width (m) of the significant intersection. • Internal dilution was allowed as long as the aggregate weighted mean grade from the footwall or hangingwall side of the mineralised interval to the end of the dilution zone does not fall below the cut-off grade. • No metal equivalents have been quoted.
Relationship between mineralisation widths and intercept length	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole _length, true width not known’). _	• Further drilling is necessary to better constrain the mineralised zone before a true thickness estimate can be made. The interpreted mineralisation envelope is quite irregularly shaped and therefore, true thickness estimates are quite difficult.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• All relevant diagrams are reported in the body of this announcement.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• All exploration results have been reported.
Other substantive	• Other exploration data, if meaningful and material, should	• Metallurgical sampling was undertaken on composites generated from selected coarse reject samples from the HBX and Triple X (“XXX”) zones totalling 50.39 kilograms in all. While it is likely that the two lithologies would

Criteria	JORC Code Explanation	Details
exploration data	be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	be processed as a single material type should the project advance to mining it is however useful to understand if the two lithologies behave differently during processing; recovery estimates as individual lithologies may eventually be built into a geometallurgical model. All samples are from unoxidized/unweathered breccia material, with mineralization of metallurgical relevance observed in the breccia include pyrite, arsenopyrite, sphalerite, galena and more rarely chalcopyrite and tennantite. Grains of electrum up to around 50 microns in size, containing approximately 60% gold and 40% silver, have been observed microscopically within higher- grade zones of mineralization. Eleven HBX subsamples across a range of grades were used to make up the HBX composite, and five Triple X subsamples were used to make up the higher-grade XXX composite. • Initial metallurgical testing was used to determine baseline metallurgical performance, including recoveries and reagent consumptions for a range of likely extraction routes. Baseline tests include preliminary cyanidation, bulk sulphide flotation, sequential flotation and diagnostic leaching. No comminution test work was undertaken. • Gold recoveries to concentrate for the baseline rougher test are 88.2 % and 90.5 % for the HBX and XXX composites, respectively, with rougher concentrate grades of 16.8 g/t and 36.5 g/t respectively. Silver recovery for the HBX composite is 88.2% with a concentrate grade of 124 g/t. The XXX composite test resulted in 96.4 % silver recovery with a concentrate Ag grade of 379 g/t. For an unoptimized test, the recoveries and rougher concentrate grades are higher than expected. • Copper, lead and zinc recoveries for the HBX composite are 93.2 %, 96.5 % and 74.2 % respectively, with 95.3 %, 91.6 % and 91.4 % respectively for the XXX composite. However, concentrate grades were low, thus these are not expected to be elements of interest for the project and are not considered in the economic analysis. Arsenic grades of 5.86 % for HBX and 12.10 % for XXX were reported for the bulk concentrate and are, therefore, of concern for processing as well as economics in terms of deleterious elements. It is possible that high arsenic levels in the rougher concentrate could be managed by further stages of cleaner flotation under appropriate conditions; however, this has not been tested at this stage. • Based on these results, a processing route incorporating comminution with gravity recovery of gold/electrum, followed by sulphide flotation to a bulk polymetallic concentrate which can be sold for processing by an appropriate party is recommended at this stage. Appropriate consideration of concentrate grades, as well as deleterious elements in the concentrate suggests toll treatment by pressure oxidation or by the Albion process would be suitable. Further work including flotation optimization with cleaner stages to potentially reject pyrite and arsenopyrite and reduce concentrate mass pull, plus standard comminution test work to determine mills size/throughput, and, potentially, gold recovery work on the bulk concentrate is recommended. • Refer to summary table in the Announcement.
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	The estimated Mineral Resource, reported in accordance with NI43-101 and the CIM Definition Standards above a cut-off grade of 0.7g/t AuEq, is approximately 7.1 Mt at 2.5 g/t Au and 38 g/t Ag in the Inferred category, containing 570,000 oz Au and 8.6 Moz Ag. This equates to approximately 3 g/t AuEq for 680,000 oz AuEq. It is the opinion of the Company and Qualified Person that all elements included in the Au Equivalent calculation (gold and silver) have a reasonable prospect of being recovered and sold. The effective date of the Mineral Resource Estimate is January 13 2020, see Table 1.1 for further information. No estimates of Mineral Reserves have been completed. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The Mineral Resources extend from surface to a depth of approximately 110 metres, are laterally extensive over an area of approximately 600 metres from east to west and approximately 350 m north to south. The thickness of resource mineralization ranges from approximately 10 to 40 metres with some isolated thinner areas. It is closed by bounding faults to the north and south and by drilling to the east and west. Some possibility of identifying

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METALSTECH LIMITED — Capital/Financing Update 2021

65380_rns_2021-11-03_42676557-a61d-4fc9-bb71-c01aade5be46.pdf

METALSTECH SIGNS OPTION TO ACQUIRE TLAMINO GOLD DEPOSIT ** NI 43-101 Resource of 7.1Mt at 3g/t for 680,000 Oz AuEq **

Highlights

Tlamino Gold Project

Regional Setting

Geology

Barje, looking north

Metallurgical test work

JORC (2012) Compliance

Key Acquisition Terms

ENDS

Caution Regarding Forward-Looking Information

Competent Persons Statement and Important Geological Declaration

Appendix A: Drill Collars

Appendix B: Selected Drill Intersections

Section 1 - Sampling Techniques and Data

Section 2 - Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

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METALSTECH LIMITED Capital/Financing Update 2021

METALSTECH SIGNS OPTION TO ACQUIRE TLAMINO GOLD DEPOSIT NI 43-101 Resource of 7.1Mt at 3g/t for 680,000 Oz AuEq