Yugo Advances Erak Discovery

KEY SUMMARY

Maiden diamond drilling campaign at Erak Prospect (Sinjakovo Project) delivers further gold intercepts:

-          36.1m @ 2.3 g/t Au in ERDD006 from 51.8m

o        Including 3m @ 14.5 g/t Au from 51.8m (incl. 1m @ 42.5 g/t Au)

o        and 1.9m @ 16.0 g/t Au from 86m (incl 0.9m @ 26.6 g/t Au)

-          10.4m @ 2.6g/t Au in ERDD009 from 74.6m (including 1.2m @ 20.9 g/t Au)

The positive intercepts are open in several directions. Drilling is in progress.

CEO COMMENTARY

Petar Tomašević, Executive Director & CEO

“The drilling at the Erak gold discovery is delivering fantastic results. These results validate the Company's geological model and highlight the potential for Erak to host a Tier-1 gold asset.

The mineralisation remains open in multiple directions. Drilling is ongoing and further drillholes are planned to delineate the extent of the gold mineralisation. The drilling is yet to commence at the location of the best trenching result of 61m @ 1.5 g/t gold. In the meantime, we are organising preliminary metallurgical testworks to inform the future technical and economic studies.

We are looking forward to updating the market with the exploration progress.”

ANNOUNCEMENT DETAILS

Yugo Metals Limited (ASX:YUG) (“Yugo Metals” or “the Company”) is pleased to report the exploration progress at its 100% owned projects, Sinjakovo and Cajnice in Bosnia-Herzegovina, Europe.

Sinjakovo Project

Nine diamond drillholes have been completed at the Erak Prospect to date, for a total of 1,057m length of drilling.

Gold mineralisation is associated to hydrothermal “phyllic” (silica-sericite-pyrite) alteration zone. The best latest results:

-          36.1m @ 2.3 g/t Au (34m true thickness) in ERDD006 from 51.8m

o        Including 3m @ 14.5 g/t Au from 51.8m (incl. 1m @ 42.5 g/t Au)

o        and 1.9m @ 16.0 g/t Au from 86m (incl. 0.9m @ 26.6 g/t Au)

-          22.4m @ 1.1 g/t Au (21m true thickness) in ERDD007 from 75m

-          6.0m @ 1.5 g/t Au (5m true thickness) in ERDD008 from 86.6m

-          10.4m @ 2.6g/t Au (10m true thickness) in ERDD009 from 74.6m

o        Including 1.2m @ 20.9 g/t Au from 74.6m

See Appendix A: Table 3 and Table 4 for additional information on latest results.

The positive intercepts remain open in several directions. Drilling is in progress, and additional drillholes are planned to test the extension of mineralisation.

At the same time, access tracks are being prepared to relocate the drilling rig to the east part of Erak Prospect, to the location of the best trench result to date (61m @ 1.5g/t Au[i]).

Figure 1: Erak Prospect, plan showing drilling progress

Figure 2: Erak Prospect, cross-section A-A’

Figure 3: Erak Prospect, cross-section B-B’

Figure 4: Erak Prospect, drillhole ERDD006 core photos (PQ diameter) with marked strong “phyllic” (quartz-sericite-pyrite) alteration zone 36.1m @ 2.3 g/t Au from 51.8m drilling depth.

NEAR-TERM OUTLOOK

→ Planned Next Steps

-          Drilling at Erak ongoing for the remained of the year

-          Receipt of all assays from drilling and ongoing reporting

-          Relocating the drilling rig to east part of Erak prospect (location of trench result 61m @ 1.5g/t Au)

-          Metallurgical testworks

Board remuneration

Following an annual remuneration review, the options in the table below will be granted, subject to shareholder approval at the AGM:

¹ Unlisted zero exercise priced options, vesting upon the Company achieving a 20-day VWAP greater than $0.10 per share within three years from date of issue. Full terms and conditions to be included in the AGM Notice of Meeting.

This announcement has been authorised for release by the Board of Yugo Metals Limited.

Link to the original news: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03122118-6A1338926&v=undefined

FOR FURTHER INFORMATION

Petar Tomašević

Executive Director & CEO — Yugo Metals Limited

Ph: +61 414 830 540

E: petar@yugometals.com

ABOUT YUGO METALS LIMITED

Yugo Metals Limited (ASX:YUG) is a Perth-based exploration company with projects in Bosnia and Herzegovina. Yugo’s projects are highly prospective for strategic, battery and precious metals, which are all located in Europe’s most prospective mining region, the Tethyan metallogenic belt.

Yugo is committed to delivering significant and sustainable shareholder value through advancing its base and precious metals projects. The Company’s projects are located near existing infrastructure and transport routes to Europe’s battery manufacturing supply chain.

For more information, visit www.yugometals.com

COMPETENT PERSONS STATEMENT

The information in this announcement that relates to Exploration Results is based on information compiled and conclusions derived by Mr Mladen Stevanovic, a Competent Person, who is Consultant and former Director of Yugo Metals Limited and is a Fellow member of the AusIMM (membership number 333579). Mr Stevanovic has sufficient experience that is relevant to the technical assessment of the Mineral Assets under consideration, the style of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Practitioner as defined in the 2015 Edition of the “Australasian Code for the public reporting of technical assessments and Valuations of Mineral Assets”, and as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Stevanovic consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

FORWARD LOOKING STATEMENTS

This announcement contains forward-looking statements which involve several risks and/or uncertainties. These forward-looking statements are expressed in good faith and are believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks and/or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and/or strategies described in this announcement. No obligation is assumed to update forward-looking statements if these beliefs, opinions and/or estimates should change and/or to reflect other.

APPENDIX A: Tables

Table 1: Tenements Reported

Table 2: Reported Drillholes

Comments:

-          Drillhole collars ERDD004-ERDD009 have been surveyed with DGPS.

-          Coordinate system used is Gauss-Kruger Zone 6 (QGIS CS: EPSG 3908), which is a common coordinate system used in Bosnia-Herzegovina.

Table 3: Summary of Reported Results

Note: maximum 2 consecutive samples internal waste, with no top-cut applied (see Appendix B: Table 1 for further information).

Table 4: Reported Results - Details

[i] See announcement 25 January 2023