Variscan Mines Limited reported high grade zinc assay results from surface diamond drilling on the San Jose mining licence, located in Cantabria, northern Spain. The step-out holes are located c.1,200m north-east along strike from the Main Zone of the underground San Jose Mine stopes. The intersected zinc mineralisation is interpreted to be a continuation of the same mineral system and on strike along the 7km Novales Trend.

Highlights: Selected surface diamond drilling results from the San Jose permit: · SB-18: 22.00m @ 8.16% Zn + 0.23% Pb; · SB-19B: 6.00m @ 16.02% Zn + 0.71% Pb; and · SB-19B: 9.00 m @ 5.45% Zn + 0.07% Pb. Confirmation of thick, high-grade, sulfide zinc-mineralised lenses, representing the same style of mineralisation as the main zone of the undergound San Jose Mine and along strike Step-out drilling indicates that further expansion drilling is strongly warranted Modelling of drilling data from recent campaigns together with an extensive historical drilling database, is well advanced to develop an extensively revised geological model as the company progress towards publishing a maiden JORC-compliant Mineral Resource Estimate for the San Jose Mine in 2023 Key Findings: Step-Out Drilling at San Jose Mine: Variscan's recently completed surface drilling campaign included 3 holes (totalling 322.12m) stepping- out approximately 1,200m north-east along the strike of the San Jose Mine stopes, in an area deemed highly prospective, but with very limited historic drilling. One of these holes, SB-18, was vertical and intersected in excess of 22m of semi-continuous zinc mineralisation grading on average 8.16% Zn (sulphide;).

Due to the flat-lying, predominantly stratiform character of the mineralised lenses, the intercepts in SB-18 are considered to reflect more or less `true thicknesses', occurring at a very shallow depth (36.40-58.40m). A second (angled) hole, aimed to test the southward extension of the lens, intersected two high grade intervals of zinc mineralisation (6.00m @ 16.02% Zn, followed by 9.00m @ 5.45% Zn;) at the same corresponding shallow depth. These assay results are unprecedented among historic surface drilling conducted in the wider region and confirm significant strike potential of the San Jose mineralised system towards the north-east.

The style of mineralisation intersected appears to be very similar to that observed at the San Jose Mine, i.e., comparatively narrow, yet elongated zones with a sizeable vertical extent, as evidenced by the fact that hole SB-19, directed towards the NE, missed the mineral lenses, inferred to trend north-south (in a similar fashion to those from the San Jose Mine).