Name of the Project
Vareš silver project.

Location
Vareš municipality of the Zenica-Doboj Canton, about 50 km north of Sarajevo, Bosnia and Herzegovina.

Project Owner/s
DPM Metals Inc owns 100% of Vareš following the completion of its acquisition of Adriatic Metals on September 3, 2025.

Project Description
Vareš is a fully mechanised underground silver/lead/gold and zinc operation encompassing the Rupice underground mine, the Veovača processing plant and a 4 400 ha land package.

DPM’s current mine plan provides for a 15-year operating life and sustainable mill throughput of 850 000 t/y. The mineral reserve released on April 1, 2025, comprises 9.5-million tonnes of probable reserves grading 230 g/t silver, 6.9% zinc, 4.4% lead, 1.7 g/t gold, 0.6% copper and 0.2% antimony.

The operation produces saleable silver/lead/gold and silver/zinc concentrates. Mining is based on longhole open stoping and mechanised cut-and-fill, while processing uses grinding, flotation and dewatering. DPM’s mine plan also incorporates paste backfilling.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
DPM’s current technical plan estimates an after-tax net present value of $1.61-billion at a 5% discount rate and post-tax cash flow of $2.107-billion over the initial mine life. An internal rate of return is not stated.

Capital Expenditure
The June 2025 DPM technical plan estimated $76-million of initial capital for the second half of 2025 and 2026, $143-million of sustaining capital over the mine life and $24-million in closure costs.

For 2026, DPM subsequently guided growth capital expenditure at Vareš at $100-million to $125-million, with about half relating to capitalised operating costs before commercial production, and the balance to mine ramp-up and development to achieve the 850 000 t/y operating rate.

Planned Start/End Date
First concentrate production was achieved in 2024. Mine production under DPM’s revised operating plan restarted in January 2026 and commercial production was achieved on August 10, 2026. The full 850 000 t/y production rate is targeted for the end of 2026. The current mine life extends to 2040.

Latest Developments
DPM Metals announced on August 17, 2026, that Vareš had achieved commercial production on August 10, after having exceeded an average of 60% of design throughput capacity and recoveries for 30 consecutive days. Daily throughput averaged 72% of design capacity over the period.

During the second quarter of 2026, underground development averaged more than 400 m a month and 117 250 t of ore was processed, 48% more than that of the first quarter. Construction of the paste backfill plant and a second tailings filter was advancing, with both expected to be operational before year-end, while commissioning of the water treatment plant had started.

A planned processing-plant shutdown for tie-in work was completed seven days ahead of schedule. DPM continues to target the full 850 000 t/y operating rate by the end of 2026 and, following strong first-half performance, expects 2026 production to be at the higher end of its guidance range of 105 000 to 130 000 gold-equivalent ounces.

DPM is also undertaking brownfield exploration around Rupice and nearby prospects, including work to extend mineralisation eastwards at depth, and testing additional targets across the Vareš land package.

Key Contracts, Suppliers and Consultants
SRK Consulting (UK) Limited (independent NI 43-101 technical report); Ausenco (Vareš processing plant and Rupice surface infrastructure sites); Mining Plus (Rupice underground mine planning); Patterson and Cooke (backfill plant testwork and design); Wardell Armstrong International (metallurgical testwork, tailings storage facility and project-wide water balance); Avocageotec (mine geotechnical); Bluequest Resources (concentrate offtake, marketing and logistics); and various local institutes and consultants (power supply, haul-road, railway siding upgrade, firewater reticulation and water supply).

Contact Details for Project Information
DPM Metals Vareš/Sarajevo office, tel +387 32 844 553 or email InfoCenterVares@dpmmetals.com.