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TERA.CN ·

Terra Balcanica Resources Corp. Press Release

Drill Results

TERRA BALCANICA INTERSECTS 505 G/T AGEQ OVER 11.0 M INCLUDING 3,075

G/T AGEQ (108.5 OZ/Т AGEQ) OVER 1.7 M AT VIOGOR-ZANIK IN BOSNIA

News Release Video: Terra Balcanica produced a short 3D animation to explain the drill results.

Vancouver, British Columbia – February 27th, 2023 – Terra Balcanica Resources Corp. (“Terra”

or the “ Company”) (CSE:TERA; FRA:UB1) is pleased to announce further, high- grade drill

results including step-out drillholes at Cumavici Ridge and a new discovery at the Josheva target

extending mineralization at the Cumavici Corridor over 2.3 km to the southeast within its flagship,

216 km2 Viogor-Zanik project in Bosnia and Herzegovina.

Highlights

• Highest Grades Intercepted To Date: Drillhole CMVDD004 returned 505.3 g/t AgEq

over 11.0 m from 43.0 m depth including 3075.4 g/t AgEq (108.5 oz/t AgEq) over 1.7 m

(see Figure 1) 40 m northeast of CMVDD005 and over 50 m northwest from the drill fence

that included CMVDD001, CMVDD002, and CMVDD003;

• New Discovery at Jos heva over 2.3 km southeast of Cumavici Ridge : Drillhole

JOSDD001 drilled over 2.3 km southeast of Cumavici Ridge discovered a new

mineralized structure yielding 119.7 g/t AgEq over 6.0 m from 53.0 m depth (see Figure

2). The discovery drillhole at Josheva validates the district geologic model and confirms

the potential for several other segments of polymetallic veins within the expansive 7.2 km

strike Cumavici corridor. The entire corridor remains open for further drill testing.

• Five shallow, high grade intercepts: Cumavici Ridge has displayed consistency by the

initial drilling with five holes intercepting shallow, high-grade polymetallic mineralization

(see Figure 3), including:

o CMVDD001: 824.2 g/t AgEq. over 4.0 m including 1634.4 g/t AgEq. over 2.0 m;

o CMVDD002: 816.1 g/t AgEq. over 2.0 m;

o CMVDD003: 465.5 g/t AgEq. over 8.7 m including 1196.6 g/t AgEq. over 2.0 m;

o CMVDD005: 284.0 g/t AgEq over 10.0 m including 895.8 g/t AgEq over 2.0m.

• Extending High G rade Footprint With Step -Out Drilling : assay results from

CMVDD001 to CMVDD005 confirm consistent high-grade mineralization over a footprint

approximately 60 by 100 meters at Cumavici Ridge. (see Figure 4). Further drilling will

focus on expanding strike length to the northwest along 650 m of strike length and

confirm down-dip continuity to southwest. The system remains open in all directions.

Terra Balcanica CEO, Dr. Aleksandar Mišković, commented: “We are very pleased with the

world class intercepts that the Cumavici Ridge system keeps on delivering. T he stage is now set

for the Phase II drill program of this shallow polymetallic vein that will aim to add onto the se

exceptional grades. Most exciting is that the highest metal concentrations have come from the

northwesterly segment of the system which is the direction where we intend to extend our drill

fence in 2023. Also encouraging are the positive Josheva target intercepts located 2.3 km

southwest of Cumavici Ridge as a testament to the widespread mineralization along the epithermal

corridor. We have numerous, high-grade targets to further test with infill and step out drilling.”

Assay Results

Drillhole From

(m)

To

(m)

Length

(m)

Ag

(g/t)

Au

(g/t)

Pb

(%)

Sb

(%)

Zn

(%)

AgEq*

(g/t)

CMVDD004 43.0 54.0 11.0 225 0.3 0.56 1.48 0.83 505.3

Incl. 44.8 46.5 1.7 1420 0.81 3.42 9.40 4.95 3075.4

JOSDD001 53.0 59.0 6.0 11 0.06 0.68 - 1.66 119.7

JOSDD002 30.0 32.0 2.0 - 0.66 0.03 0.01 0.19 -

Table 1. Assay results of key mineralized intervals from Cumavici drillholes. Interval lengths reported are

drilled lengths, not true widths. Silver equivalents (“AgEq”) are based on assumed metal prices of

US$1950/oz for gold (Au), US$18.00/oz for silver (Ag), US$1.00/lb for lead (Pb), US$4.50/lb for antimony

(Sb) and US$1.50/lb for zinc (Zn). *Assumed metal recoveries of 90% Au, 93% Ag, 94% Pb and Zn, 90%

Sb are based on published metallurgical tests for analogous Balkan epithermal deposits. For CMVDD001-

003 and CMVD005, see the Company news releases from Sept. 8th, Oct. 22nd, 2022, and Feb. 2nd, 2023.

Figure 1. Section B -B’ from Figure 3 (below) along drillhole fence CMVDD004-005. CMVDD004

intersected 11 m of mineralization at 43 m depth, illustrating grade continuity to near surface from

CMVDD005 which intersected 10 m at 284 g/t AgEq at 81 m. The vein system remains open down dip.

Click here to view the image.

Figure 2. Phase I drilling at Cumavici Ridge and the SE extension at the Josheva target. The 7.2 km long

Cumavici Corridor extends well beyond Cumavici Ridge to NW. Click here to view the image.

Figure 3. Phase I drillholes at Cumavici Ridge. Drillholes CMVDD004 and CMVDD005 are NW step-outs

from the initial drill fence (CMVDD001-003); the system is open along strike. Click here to view the image.

Figure 4. Fence diagram of drilling completed at the Cumavici Ridge target including drillholes

CMVDD001 to CMVDD005. Polymetallic mineraliz ation intervals are highlighted in red. The

mineralization remains untested and open down dip to the southwest and entirely open to the NW. The high-

grade mineralization footprint currently sits at approximately 60 (strike length) by 100 meters (down dip

direction). Click here to view the image.

Drill Results Summary

Drillhole CMVDD004 targeted the strike extension of this shallow minerali zation with a 39 m

NW collar step-out from CMVDD002. Assay results confirm the structure remains minerali zed

at shallow levels in the north-western direction. Mineralization consists of a main massive sulphide

interval with quartz- sulphide veining in the hanging and footwall of the structure. Massive

sulphide intervals are characterized by colloform -crustiform sphalerite -galena-stibnite-

sulphosalts. A narrow envelope of silicification is observed around the vein intercept with

volcaniclastics showing variable chloritization and argillic alteration.

Drillhole JOSDD001 targeted a mineraliz ed structure 2.3 km southeast of the Cumavici Ridge

discovery drillholes. It successfully intersected a minerali zed structure returning 119.7 g/t AgEq

over 6.0 m from 53.0 m depth. Mineralization enc ountered is characterized by veinlets,

disseminations, and aggregates of sphalerite -galena-pyrite within argillic altered andesitic tuffs.

Sulphides are associated with calcite and present in intervals of fault gouge.

Drillhole JOSDD002, located 155 m NW of JOSDD001, tested the same structure with a

significant step out. Several mineralized structures were intersected, with disseminated sulphides

in fault gouge and calcite. At 31 m depth a quartz-arsenopyrite cemented hydrothermal breccia

returned 1 m at 1.1 g/t Au and 0.3 % Zn within a 2 m mineralized intercept yielding 0.66 g/t Au.

Hole ID Easting Northing Elevation

(m) Dip Azimuth Depth

(m)

Recovery

(%)

CMVDD004 360174 4888539 611 -85 045 77.7 87.3

CMVDD005 360141 4888516 621 -85 050 99.0 94.4

CMVDD006 360195 4888403 611 -68 052 154.6 93.7

CMVDD007 360389 4888084 485 -45 048 175.4 97.7

CMVDD008 360361 4888323 522 -85 045 78.0 95.0

CMVDD009 360347 4888299 520 -85 035 91.1 99.0

JOSDD001 361639 4886792 386 -52 034 108.8 96.7

JOSDD002 361516 4886889 383 -52 034 111.8 99.3

Table 2. Drillhole collar survey information for the reported Cumavici Ridge and Josheva drillholes

(WGS84/UTM Zone 34N). See the complete list of assays at the end of the news release.

Further Exploration Drilling: Further drilling will systematically test the high -grade Cumavici

vein along strike to the NW/SE and down-dip SW where the mineralization is open and untested.

The Cumavici Ridge target lies within a local magnetic low, which is continuous for > 500 m

strike length. The Company interprets the well- developed magnetic low lineament to represent

the structure hosting the Cumavici Ridge polymetallic mineralization, o ffering a robust target for

expansion of mineralization. Due to the shallow nature of this high- grade system , drilling can

quickly define strike length utili zing a 40 m regular step out. Mineralization is interpreted to be

dipping shallowly to the SW, whic h allows for down -dip testing with modest meterage

requirements. This will be a priority of the 2023 drilling campaign.

Target generation is ongoing by utilizing the geological knowledge gained in the 2022 drilling

campaign to unlock the potential of the 7.2 km strike length Cumavici corridor. Understanding

of the geochemical and geophysical signature of this high- grade system, and confirmation of the

exploration strategy through definition of yet another mineralized structure at Josheva gives the

Company confidence in the underexplored nature of the Cumavici corridor. Surface expressions

of mineralized structures have been observed at several localities, namely Cumurnica and Seoce

where soil geochemistry shows NW/SE trending anomalous Ag-Pb-Zn. Zones of fault gouge with

disseminated sphalerite and galena are observed on surface which can be tied to low magnetic

lineaments, offering targets for future drilling. The Cumavici corridor remains largely untested,

and the Company firmly believes there is opportunity for discovery of the Cumavici Ridge style

mineralization along the entire 7.2 km strike length.

QAQC

Composite, half a drill core (PQ3 and HQ3) samples were delivered by truck to ALS Bor, Serbia

for sample preparation and analysis at the AL S laboratory Loughrea, Ireland an ISO/IEC

17025:2017 certified testing laboratory. Sample preparation PREP-31BY method was used on all

core samples. This involves crushing to 70% less than 2 mm, rotary split 1kg and pulverizing the

split to greater than 85% passing 75 microns. Gold was assayed by 30g fire assay with ICP -AES

finish (Au -ICP21). Analyses of silver and base metals were completed by highly oxidising

digestion with HNO3, KClO3 and HBr (ASY-ORE) and the final solution in dilute aqua regia is

determined by ICP -AES (ME -ICPORE). Control samples, comprising certified reference

materials (CDN-ME-1811), quarter core field duplicates and blanks were inserted at a rate of 5%

and investigated as part of the company’s quality assurance and quality control program.

Qualified Person

Dr. Aleksandar Mišković, P.Geo, is the Company’s designated Qualified Person for this news

release within the meaning of National Instrument 43- 101 Standards of Disclosure of Mineral

Projects (“NI 43-101”). Dr. Mišković has reviewed and validated the information contained in this

news release as factual and accurate.

About the Company

Terra Balcanica is a polymetallic exploration company targeting la rge-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 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 more information about this news release, please contact [email protected], or

visit our website at www.terrabresources.com/en/news.

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.

Hole ID Sample ID From (m) To (m) Au (ppm) Ag (ppm) Pb (%) Sb (%) Zn (%)

CMVDD004 105214 40.0 41.0 0.001 <1 0.006 <0.005 0.021

CMVDD004 105215 41.0 42.0 0.002 <1 <0.005 <0.005 0.014

CMVDD004 105216 42.0 43.0 0.007 <1 0.011 <0.005 0.044

CMVDD004 105217 43.0 44.0 0.007 1 0.017 <0.005 0.053

CMVDD004 105218 44.0 44.8 0.1 1 0.026 0.009 0.161

CMVDD004 105219 44.8 46.5 0.812 1420 3.42 9.35 4.95

CMVDD004 105220 46.5 47.0 1.65 43 0.267 0.447 0.309

CMVDD004 105221 47.0 48.0 0.249 13 0.07 0.064 0.129

CMVDD004 105222 48.0 49.0 0.147 4 0.017 0.016 0.06

CMVDD004 105223 49.0 50.0 0.171 4 <0.005 0.008 0.031

CMVDD004 105224 50.0 51.0 0.277 8 0.025 0.017 0.051

CMVDD004 105225 51.0 52.0 0.012 1 0.005 <0.005 0.056

CMVDD004 105226 52.0 53.3 0.077 2 0.008 0.007 0.02

CMVDD004 105227 53.3 54.0 0.06 4 0.087 0.013 0.091

CMVDD004 105228 54.0 55.0 0.003 <1 0.022 <0.005 0.079

CMVDD004 105229 55.0 56.0 0.003 <1 0.018 0.006 0.05

CMVDD004 105230 56.0 57.0 0.003 1 0.018 0.008 0.073

CMVDD004 105231 57.0 58.0 0.012 4 0.021 0.062 0.082

CMVDD004 105232 57.0 58.0 0.014 2 0.02 0.046 0.08

CMVDD004 105233 58.0 59.0 0.002 <1 0.104 0.009 0.108

CMVDD004 105234 59.0 60.0 0.002 <1 0.058 <0.005 0.083

CMVDD004 105235 60.0 61.0 0.002 <1 0.012 <0.005 0.048

CMVDD004 105236 61.0 62.0 0.005 <1 0.008 <0.005 0.023

CMVDD004 105237 62.0 63.0 0.001 <1 <0.005 <0.005 0.014

CMVDD004 105238 63.0 64.0 0.002 <1 <0.005 <0.005 0.016

CMVDD004 105239 64.0 65.0 0.002 <1 <0.005 <0.005 0.016

CMVDD004 105240 65.0 66.0 0.003 <1 0.01 <0.005 0.036

CMVDD004 105241 66.0 67.5 0.002 <1 0.007 <0.005 0.022

CMVDD004 105242 67.5 69.0 0.01 1 0.007 <0.005 0.021

CMVDD004 105243 69.0 70.5 0.002 <1 0.03 <0.005 0.07

CMVDD004 105244 70.5 71.5 0.017 2 0.069 0.012 0.102

CMVDD004 105245 71.5 72.9 0.03 <1 0.017 <0.005 0.057

CMVDD007 105054 91 92 <0.001 <1 <0.005 <0.005 0.007

CMVDD007 105055 92 93 <0.001 <1 <0.005 <0.005 0.006

CMVDD007 105056 93 94 <0.001 <1 <0.005 <0.005 0.008

CMVDD007 105057 94 95 <0.001 <1 <0.005 <0.005 0.007

CMVDD007 105058 95 96 <0.001 <1 <0.005 <0.005 0.007

CMVDD007 105059 96 97 <0.001 <1 <0.005 <0.005 0.008

CMVDD007 105060 97 98 <0.001 <1 <0.005 <0.005 0.008

CMVDD007 105061 98 99 <0.001 <1 <0.005 <0.005 0.008