Lykos Metals : Quarterly Activities/Appendix 5B Cash Flow Report

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Figure 1: Sinjakovo project overview

RDK Copper-Cobalt Prospect

The first modern exploration drilling commenced at the RDK prospect during the quarter. Two out of 19 planned drillholes - SID001 and SID002 - are complete.

SIDD001 was collared to the southeast of the historic mine and has intersected the interpreted lithological sequence which hosts the nearby high grade historical copper mine at a downhole depth of 22.5m.

This was shallower than expected and in an oxide zone which suggests a reverse fault between SIDD001 and the historic mine area. The hole also intersected a sulphidic volcano- sedimentary complex at depth. SIDD002 was collared to the northeast of the historic mine, it has intersected 1m massive sulphide zone at 74m down-hole depth and has also encountered the volcano-sedimentary complex at depth.

Core recovery issues in strongly deformed and broken rocks meant drilling progress was slower than ideal. The difficult ground conditions required an additional drill rig to maintain the exploration schedule. The second drilling rig is on site, and drilling of drillholes SIDD003 and SIDD004 has commenced.

The geophysical airborne magnetic and electro-magnetic survey results were received. Geophysical results confirmed the previous interpretation and targeting strategy at RDK. The targeted mineralisation at RDK coincides well with the conductive EM anomalism. Compared to the Rastovaca locality, the EM anomalism is significantly stronger and wider at the Debela Kosa locality some 1km northwest of the historic copper mine. Aside from the geophysical electro-magnetic anomalism, the RDK Prospect area is also characterised by a broad magnetic anomaly. As with other newly identified geophysical anomalies, the plan is to drill test Debela Kosa locality during the coming quarter.

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Debela Kosa

Rastovaca

Figure 2: RDK Prospect - plan view showing the drilling area

AB

Figure 3: RDK Prospect - section A-B showing EM survey results and completed drilling

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CD

PR_B13

Figure 4: RDK Prospect - section C-D showing EM survey results and planned drilling

Zekil-Erak Prospect

The Zekil-Erak Prospect is a 4km2 soil anomaly area that was discovered in the December 2021 quarter.

Lykos has commenced an eight-trench program at Zekil-Erak, targeting a gold-in-soil anomaly. The first trench (520m) is complete, with about 2km of total trenching planned.

As expected, the area has a generally thin soil cover. Exceptional recent surface results support an ongoing focus on this prospect and, subject to trenching results, drilling is planned to commence toward the end of the calendar year.

Recent surface sampling returned up to 6.94 g/t gold, 183 g/t silver, 4.11% copper and 1.33% antimony.

Final soil sampling infill results over the Erak area were received in late-April and returned up to 1.66 g/t gold in soil. Soil results for the Zekil area have been reported previously with results of up to 2.08 g/t gold in soil.

The outstanding polymetallic mineralisation at Zekil-Erak is associated with alteration and gossanous zones developed along the contacts of sediments and carbonates with quartz- porphyry intrusives. A second, interpreted "monometallic" gold anomalism is present in the surrounding sediments further away from volcanic intrusives.

Geophysics over Zekil-Erak area is predominantly showing east-northeast-trending AEM high narrow features (suggesting steep sulphidic structures of same orientation). Also, a deeper broad EM conducting anomaly and large MAG low may indicate a deeper porphyry alteration halo over the prospect area.

The plan is to drill test the Zekil-Erak area upon completion of the trenching program with the expected start of this initial drilling program at Zekil-Erak is sometimes during the coming quarter.

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Figure 5: Zekil-Erak Prospect - trenching progress over the soil sampling results (gold equivalent)