Prospech : Schopfer - Phase 2 Gold-Silver Drilling Commenced

5 July 2022

only	SCHOPFER - PHASE 2 GOLD-SILVER DRILLING COMMENCED
use	 Phase 2 surface drilling has commenced at Schopfer to test strike and depth
potential of known high grade mineralisation
 Surface and underground micro-drilling have tested a 200m section of the 1.5km
long Schopfer vein system

The Directors of Prospech Limited ('Prospech' or 'the Company') (ASX: PRS) are pleased to advise that Phase 2 drilling has commenced at the Schopfer gold-silver prospect within the Hodrusa exploration licence, located in the Central Slovakian neovolcanic belt. personalFor

The Schopfer structure is open to the northwest and southeast and at depth.

Level 2, 66 Hunter Street, Sydney NSW 2000 Australia

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The drilling target consists of hanging wall and footwall of the Schopfer vein and area around the intersection of the Schopfer with the Keleti and Klement-Stefan veins, as well as the main vein structure at depth.

The intersection of vein trends is observed to coincide with intensive historical underground exploration and mining, which is probably related to structural dilation zones hosting thicker zones of higher grade material.

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The Schopfer vein has estimated historical production of 1.0 million tonnes at

4.0 g/t gold and 400 g/t to 500 g/t silver for a total 130,000 ounces of gold and 13.0 to 17.5 million ounces of silver.

Mining at Schopfer finished in the late 1940s when the emphasis shifted to base metal production at other production centres in the Hodrusa caldera.

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Prospech has carried out underground micro-drilling at Schopfer to confirm the grades in remnant mineralised shoots. The micro-drilling was focused on part of the Luisa shoot in the southern portion of the Schopfer structure.

A total of 20 BQ diamond core holes were completed averaging 5 metres in depth by use of a handheld portable diamond rig. In addition, 4 surface diamond holes were completed in 2017 targeting the Luisa shoot 500m south of the current target area under the main Schopfer shoot.

Results from the BQ underground micro-drilling drilling include:

• SCDD001: 2.8m @ 2.2 g/t Au and 151 g/t Ag from 0.6m
• SCDD002: 0.9m @ 1.9 g/t Au and 188 g/t Ag from 0.0m
• SCDD003: 3.0m @ 2.5 g/t Au and 233 g/t Ag from 0.0m
• SCDD004: 1.5m @ 5.6 g/t Au and 258 g/t Ag from 0.0m
• SCDD015: 3.0m @ 1.0 g/t Au and 101 g/t Ag from 0.0m
• SCDD020: 1.0m @ 2.0 g/t Au and 136 g/t Ag from 0.0m
• SCDD021: 1.6m @ 2.7 g/t Au and 478 g/t Ag from 0.0m
• SCDD022: 0.9m @ 2.3 g/t Au and 236 g/t Ag from 1.0m
• SCDD023: 1.9m @ 1.7 g/t Au and 180 g/t Ag from 1.0m
• SCDD024: 5.0m @ 2.9 g/t Au and 401 g/t Ag from 0.0m

Underground micro-drilling at Schopfer.

Phase 2 drill hole SCDD025 is targeted to drill under the main central at Schopfer, 500 metres along strike the north of the Luisa shoot tested by Prospech by BQ underground drilling and surface drilling.

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Surface drilling of the main shoot at Schopfer is designed to increase the proportion of

modern intercepts amongst historic underground grade control information.

SCDD025 is also designed to test the strike and depth potential of a fully preserved

silver and base metal mineralised system under the main shoot at Schopfer.

Historic grades of at least 5.0 g/t AuEq1 are shown in in magenta.

• Gold is deemed to be the appropriate metal for equivalent calculations as gold is the most common metal to all mineralisation zones. Schopfer gold equivalent grades are based on assumptions: AuEq(g/t)=Au(g/t)+76/Ag(g/t) calculated from December 2021 spot prices of US$22/oz silver, US$1800/oz gold and metallurgical recoveries of 91% silver, 94% based on current production of a nearby mine operated by a third party (Slovenska Banska sro) and historic recoveries from Schopfer from the 1940s. These individual underground back channels are not able to be accessed physically and cannot be currently used in standard JORC reporting and are utilised and represented for targeting purposes only.

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Quartz veinlets with minor base metal sulphides at 265m - 268m in SCDD025.

Prospech Managing Director Jason Beckton comments:

"Drilling has commenced at the Company's flagship Hodrusa exploration licence. The large gold-silver rich historic Schopfer mine has been targeted based on historic underground micro- drilling by the Company, historic production records and surface drilling.

The next drilling program will test the detachment fault (or LANF) geophysics anomaly identified by the IP survey completed by the Company. The LANF hosts the neighbouring Rozalia gold mine which an average head grade of 12 g/t Au."

This announcement has been approved by the Managing Director, Jason Beckton.

For further information, please contact:

Jason Beckton Managing Director Prospech Limited [phone]

Competent Person's Statement

The information in this Report that relates to Exploration Results is based on information compiled by Mr Jason Beckton, who is a Member of the Australian Institute of Geoscientists. Mr Beckton, who is Managing Director of the Company, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify 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 Beckton consents to the inclusion in this Report of the matters based on the information in the form and context in which it appears.

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