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TERA.CN ·

Terra Balcanica Completes Phase Ii Drilling at Viogor-Zanik Project in Bosnia and Closes Private Placement Financing

Financings Exploration Programs

NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

TERRA BALCANICA COMPLETES PHASE II DRILLING AT VIOGOR-ZANIK PROJECT

IN BOSNIA AND CLOSES PRIVATE PLACEMENT FINANCING

Vancouver, British Colu mbia – September 25th, 2023 – Terra Balcanica Resources Corp.

(“Terra” or the “ Company”) (CSE:TERA; FRA:UB1) is pleased to announce closing of the

final tranche of its non-brokered private placement financing (the “ Offering”) of units (the

”Units”) for total gross proceeds of $1 ,212,778. The Company further announces that it has

completed the 2,000 m, Phase II drill program at the flagship, 216 km2 Viogor-Zanik project (the

“Project”) in eastern Bosnia and Herzegovina.

Highlights

• In total , 17 diamond drill holes were completed during the 2023 Phase II campaign

totalling approximately 2,000 m with a significant number of them macroscopically

exhibiting sulphide mineralization. Twelve drill holes were completed at the polymetallic

silver-lead-zinc Cumavici target while 5 holes were drilled at the Au -Cu, skarn-porphyry

Brezani target (see Figures 1 and 2). All drill holes are at the ALS laboratory in Serbia with

assays expected by the beginning of October;

• Terra has raised $1,212,778 pursuant to the Offering announced on April 4th, 2023.

Terra Balcanica CEO, Dr. Aleksandar Mišković, commented: “The conclusion of exploration

drilling perfectly coincided with the closing of the private placement financing. I am proud of the

field efforts made by the entire team Terra Balcanica but equally thankful to all those who helped

raise the funds needed to advance our key assets in Bosnia and Serbia. Having finalized an

oversubscribed financing of over $1.2M in such a challenging macroeconomic environment is a

positive signal and has allowed us to complete a robust, 17- hole 2,000-meter Phase II drill

program and materially advance the flagship Viogor -Zanik project. The composite drill core

samples are now awaiting laboratory completion and an internal QA/QC check before being

released as a part of Terra’s steady news flow for months to come.”

Drilling Brezani Target Completed

The 2023 diamond d rilling at the Brezani target focussed on testing the coincident magnetic -

conductivity anomaly at depth below the Au- skarn mineralisation observed on surface. Further

shallow drillholes BRE23001- 004 aimed to add scale to the initial 88 m at 0.61 g/t AuEq

intercepted in drillhole BREDD002 (See Company’s news release dated 24 th January 2023), all

within a > 800 m NW/SE trending Au in soil anomaly.

Drillhole BREDD002: Continued from a depth of 215 m to 674 m in 2023 commencing in the

same chlorite-sericite altered diorite which returned 0.26 g/t Au (214 - 215 m) in 2022 drilling. At

a depth of 482.1 m a 9.8 m continuous zone of banded vein and sulphide cemented brecci as with

characteristics of both low and intermediate sulphidation epithermal deposits was intersected. The

margins of the vein host repeating bands of chalcedonic quartz -rhodochrosite-calcite and

sulphides/sulphosalts stibnite-pyrite-arsenopyrite-sphalerite-galena-jamesonite. The centre of the

structure is dominated by hydrothermal breccia with a sulphide -quartz-carbonate cement. Clasts

are banded vein fragments and wall rock hornfels . In the vein footwall the lithology changed to

118.4 m of chlorite-sericite altered diorite porphyry intrusive. Sinuous quartz-pyrite-molybdenite

veins, quartz-magnetite, anhydrite-carbonate, pyrite-chlorite, and pyrrhotite-carbonate veining is

present alongside disseminated pyrite-pyrrhotite.

Drillhole BRE23001: Located 102 m SW of the initial discovery hole at Brezani, which returned

0.61 g/t AuEq over 88 m from surface BRE23001 intercepted a similar package of calc -silicate

mineralisation with a strong chlorite retrograde overprint. Intervals of coarse garnet -pyroxene

skarn were also intercepted in contact with dioritic intrusives.

Figure 1. Geological map illustrating the 2022 and 2023 drillholes at the silver -dominated, polymetallic

Cumavici Ridge target 12 km northwest from the Brezani target (click here to view image).

Drillhole BRE23002: Located 91 m west of BREDD002 intersected a new style of mineralization

for the Brezani target. Commencing at 98 m depth a sulphide -calcite cemented contact breccia

between altered diorite and silicic hornfels was encountered. The sulphide matrix was composed

of pyrite-sphalerite-galena-pyrrhotite-chalcopyrite with individual sphalerite crystals up to 3 cm.

The breccia was semi -continuous until 105.2m where it graded into patchy brecciation and

intermediate sulphidation veining to 117.6 m. Detailed observations of BRE23001- 004 will be

completed and updates released in due course.

Figure 2. Geological map illustrating the 2022 and 2023 drillholes into the Brezani skarn-porphyry target.

Note that the 2022 drillhole, BREDD002 was redrilled from 215 – 674 m during the 2023 drilling

campaign. (click here to view image).

Final Tranche of Private Placement Financing Closed

The Company issued an aggregate of 1,826,47 0 Units at a price of $0.085 per Unit for gross

proceeds of $155,250 pursuant to the Offering announced on April 4 th, 2023. Each Unit consists

of one common share in the capital of the Company (each, a “Common Share”) and one Common

Share purchase warrant (each whole warrant, a “ Warrant”). Each Warrant entitles the holder to

purchase one Common Share at an exercise price of $0.13 until September 22nd, 2026. Finders’

fees in the amount of $3,570 were paid in the final tranche of the Offering.

In total, the Company has issued 14,267,967 units at a price of $0.085 for gross proceeds of

$1,212,778. Terra used the net proceeds of the Offering for working capital and to finance the

Phase II drilling of the two target zones in Bosnia and Herzegovina.

Pursuant to applicable Canadian securities laws, all securities issued and issuable in connection

with the closing of the fifth tranche of the Private Placement will be subject to a four (4) month

hold period ending January 23rd, 2024.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the

securities in the Unit ed States. The securities have not been and will not be registered under the

United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities

laws, and may not be offered or sold within the United States, or to or for the account or benefit

of any U.S. person or any person in the United States, unless registered under the U.S. Securities

Act and applicable state securities laws or an exemption from such registration is available.

“United States” and “U.S. Person” are as defined in Regulation S under the U.S. Securities Act.

About the Company

Terra Balcanica is a polymetallic exploration company targeting large -scale mineral systems in

the Balkans of southeastern Europe. The Company has 90% interest in the Viogor -Zanik Project

in eastern Bosnia and Herzegovina, 100% of the Kaludra and Ceovishte mineral exploration

licences in southern Serbia. The Company emphasizes responsible engagement with local

communities and stakeholders. It is committed to proactively implementing Good International

Industry Practice (GIIP) and sustainable health, safety, and environmental management.

ON BEHALF OF THE BOARD OF DIRECTORS

Terra Balcanica Resources Corp.

“Aleksandar Mišković”

Aleksandar Mišković

President and CEO

For further information, please contact Aleksandar Mišković at [email protected],

or visit our website at www.terrabresources.com.

Cautionary Statement

This news release contains certain forward -looking information and forward-looking statements

within the meaning of applicable securities legislation (collectively “ forward-looking

statements”). The use of any of the words “will”, “intends” and similar expressions are intended

to identify forward- looking statements. These statements involve known and unknown risks,

uncertainties and other factors that may cause actual results or events to differ materially from

those anticipated in such forward-looking statements. Such forward-looking statements should not

be unduly relied upon. Actual results achieved may vary from the information provided herein as

a result of numerous known and unknown risks and uncertainties and other factors. The Company

believes the expectations reflected in those forward -looking statements are reasonable, but no

assurance can be given that these expectations will prove to be correct. The Company does not

undertake to update these forward-looking statements, except as required by law.