Lykos Metals Limited provided an update on exploration activities at the company's 100%-owned Sinjakovo and Cajnice projects in Bosnia-Herzegovina. At Sinkajovo, the Company has identified two new polymetallic shear zones, Erak 1 and Erak 2, both located within the newly discovered Zekil-Erak Prospect. At Erak-1, rock chip samples returned exceptional results of up to 12.61 g/t gold equivalent, with 3.75 g/t gold equivalent on average for 13 samples.

Erak 2 is located 1km north of Erak 1 and rock chip samples returned results up to 2.89 g/t gold equivalent, with 2.22g/t gold equivalent on average for four samples. The company is proceeding to commence a diamond drilling program in late September to follow up Erak 1 and Erak 2. The company expects more shear zones to emerge at Erak as trenching continues. At Cajnice, twinning of historical holes at the Berkovici Prospect continues to confirm historical observations of several narrow, lead-bearing shears.

Three of four planned diamond holes are complete with all assays pending. At the Gramusovici Prospect, results have been received for seven of nine planned diamond drill holes. The results received to date do not adequately explain the grades of copper mineralisation in the discovery outcrop (1-10% copper), however the Company believes that the mineralised system could improve to the west.

Zekil-Erak Prospect: The trenching program at the Erak locality, within the Zekil-Erak Prospect, commenced in late-August, following the completion of the two-trench program at the Zekil locality. The geology field team identified two new shear zones hosting polymetallic gold-silver-copper-antimony mineralisation. These shears were promptly followed-up with sampling in the trench and over nearby outcrops.

Access tracks for drilling at Erak 1 are currently being constructed. Drilling at Erak is planned to commence in September and be completed by November. Geology: Erak 1 is exposed in generally outcrop-poor terrain, with scree rubble and soil covering most of the area.

The mineralised zone consists of several steep gossanous lodes, each 0.2-3m wide forming a 15m-wide mineral system in the limestone host rock. The outcropping lodes are predominantly ferruginous (up to 43% iron) with barite-calcite-silica veinlets, common small stains of copper secondary minerals (malachite and azurite) and occasionally preserved tetrahedrite specks (likely a gold-bearing tetrahedrite - a copper-antimony-silver sulphosalt). Erak 1 returned exceptional results up to 12.61 g/t gold equivalent (2.52g/t gold, 199g/t silver, 4.21% copper and 1.36% antimony), with 3.75g/t gold equivalent on average for 13 samples.

It is expected that more similar shears exist at Erak, and that ongoing trenching will expose these shears from under surface soil cover. RDK Copper-Cobalt Prospect: Drilling at RDK Prospect continues with two diamond drilling rigs. One drillhole has been completed (SIDD005) since the previous announcement.

Drillhole SIDD005 was collared in an area between the historic portal and historic underground mine. The drillhole has intersected a broad zone from 70m to 158m drilling depth with minor sulphides. The drilling intervals 9.5-18.3m, 90.5-91.5m and 112.5-115.6m have returned lose sand and are likely the levels of historic underground workings.

Hole SIDD005 was stopped at 158m drilling depth. The conclusion is that strong chalcopyrite mineralisation was likely mined out in this area, although historic mine plans does not show mine development in this zone. Results have arrived for the first two drillholes (SIDD001 and SIDD002), returning promising cobalt mineralisation (up to 0.065% cobalt over 1m interval) and with low-grade copper results only so far.

These interesting cobalt results are associated with strongly sulphidic zones (likely from cobalt-bearing pyrite). Cobalt was never assayed prior to Lykos acquiring the Sinjakovo Project, hence the cobalt mineralisation warrants further investigation. Krajevi Prospect: The infill soil sampling program at the Krajevi Prodpect is now complete.

A total of 613 infill soil samples, infilled from 200m (along ridges) to 100m (in grid pattern), were collected and results have arrived for 46% of these additional samples to date. Soil sampling has identified a significant-sized polymetallic (silver, barite, lead, antimony and zinc) anomaly in soil, extending 3 kilometres in an almost north-south direction. The company is planning next steps, likely in form of detailed geological mapping and trenching over this soil sampling anomaly, starting later in 2022.

Berkovici Prospect: Three holes of the four-hole diamond drilling program designed to twin historical drillholes at the Berkovici Prospect have been completed - all results pending. Drilling at Berkovici is confirming historical observations about several narrow lead-bearing shears. Gramusovici Prospect: Results have returned for seven out of nine planned diamond holes from the Gramusovici Prospect.

Results received to date still do not adequately explain the grades of copper mineralisation in the discovery outcrop (1-10% copper). The company believes the zone close to the high-grade copper outcrop has been tested adequately at 50-80m drill spacing and that further geological interpretation is required before any more work is conducted at the Prospect. Cajnice project-wide soil sampling: The soil sampling campaign across Cajnice tenement has been completed.

A total of 2,285 soil samples have been collected since April 2022, and 97% of results have been returned to date. Soil sampling identified several major trends that warrant further follow up work in the form of detailed geological mapping, trenching and potentially also drilling. With the soil sampling campaign complete, field activities are focused on geological mapping and preparations for a drilling campaign to drill-test five locations - Majdan, Bandiera, Berkovici NW, Braha and Krapov - by late-November.

The program will aim to identify the best targets for 2023 follow up work. Until then, field crews are carrying out full-scale field mapping to further inform future exploration plans.