Mr. Paul Kuhn reports

AVRUPA MINERALS COMPLETES DEFINITIVE AGREEMENT WITH WESTERN TETHYAN RESOURCES TO OPTION OUT THE SLIVOVA GOLD PROJECT, KOSOVO

Avrupa Minerals Ltd. has entered into a definitive option agreement with Western Tethyan Resources to advance the Slivova gold project, located in the productive Vardar mineral trend in the Republic of Kosovo, to a possible mining solution. WTR can earn-in to 75 per cent of the project by financing exploration and development for 1.8 million euros over three years, and then a further 10 per cent by making certain milestone and success payments, producing an environmental impact statement, delivering a feasibility study, and completing a mining licence application.

• The definitive agreement (DA) outlines a path toward potential gold production from the Slivova deposit.
• Western Tethyan Resources (WTR) completed a robust due diligence (DD) review, a concept study and continues to work on a preliminary economic assessment (PEA), including a metals resource update for the Slivova deposit.
• WTR can earn-in to 85 per cent of the Slivova project.

To date, WTR has spent more than 275,000 euros for due diligence, development of a concept study and continuing work on a PEA. WTR is a private exploration company based in London and Pristina, Republic of Kosovo, and is 75 per cent owned by London Alternative Investment Market-listed Ariana Resources.

Paul W. Kuhn, president and chief executive officer of Avrupa Minerals, commented: "Western Tethyan has already made significant progress towards defining a possible mining solution at Slivova. We are truly excited about the positive progress in the ongoing PEA and concept studies, as well as for getting started in a new phase of exploration and resource definition. WTR is working on a new resource update, and we expect information later this quarter."

Mentor Demi, managing director of Western Tethyan Resources, added: "Alongside an aggressive exploration program throughout the West Tethyan belt, we are actively seeking acquisition opportunities. Acquisition of the Slivova gold deposit is a step towards building Western Tethyan Resources into a development company, as well, and the Slivova mine as the first modern mine in Kosovo since the 1920s."

Dr. Kerim Sener, managing director of Ariana Resources, stated: "The completion of this agreement formalizes a process we had already embarked upon in March following the successful completion of the project due diligence. We are already nearing completion of a revised mineral resource estimate for Slivova, and we look forward to announcing this work in due course.

"In addition, further work has been under way at the local community level in order to increase awareness of the project and its merits. We are investigating opportunities to deliver a low-impact mining project which aims to achieve a new standard for mining in Kosovo and potentially become a strategic hub of operations for the company in the country."

About Slivova

The Slivova exploration licence covers 30.51 square kilometres of prospectable land surrounding the Slivova gold deposit. The licence is valid for seven years from May, 2022. Outside of the deposit itself, much of the property is underexplored. Avrupa commissioned an initial National Instrument 43-101 resource study in 2016 and reported an indicated mineral resource of 640,000 metric tonnes at 4.8 grams per tonne gold and 14.68 g/t silver for a total of 98,700 ounces of gold and 302,000 ounces of silver.

Slivova maiden resource, 2016

WTR is currently updating the mineral resource estimate (MRE) to JORC standards, and Avrupa will follow suit by transforming the JORC estimate to a National Instrument 43-101 resource estimate. The companies expect to be able to report the new MRE during Q2 2023. The new evaluation will encompass results from drilling subsequent to the 2016 report, reinterpretation of previous geological information from surface and trench mapping and sampling, and thorough review of all historic core.

As noted in a previous news release, Avrupa Minerals and WTR agree to proceed, there are additional nearby and distal targets within the new Slivova licence. There are known zones of mineralization close to the main Slivova deposit that WTR will need to drill, and the company can expect upgrade work on a number of distal targets around the licence in the coming field season.

Terms of the agreement

Under the terms of the definitive agreement, WTR will have the right to acquire, in multiple stages, up to 85 per cent of the Slivova project, by completing a series of exploration and development milestones and making staged payments to Avrupa Minerals.

On closing

• 35,000-euro cash payment upon signing the definitive agreement on/about March 1, 2023 (completed).

Earn-in phase

Stage 1

• 30,000-euro cash payment on Sept. 1, 2023;
• If WTR elects to enter the definitive agreement, it will invest 800,000 euros, during first two years from the effective date (minimum of 150,000 euros must be spent by Sept. 1, 2023, post-DD phase), for exploration, drilling, baseline environmental and social surveys, and landowners, for 51 per cent of the project (under way).

Stage 2

• After completion of stage 1, during the third year from the effective date, WTR will invest one million euros for NI 43-101 resource estimation, commencement of full environmental impact statement (EIS), for 75 per cent of the project.

Stage 3

• During the fourth and fifth year from the effective date, WTR must complete the EIS, feasibility study (FS) and a mining licence application, for 85 per cent of the project.

Stage 4

WTR completes success payments to previous joint venture partner, Byrnecut International Ltd., accordingly:

• 125,000 euros in cash within 30 days of the first to occur of: 1) completion of a positive FS (minimum 15-per-cent internal rate of return); or 2) Avrupa or related party making a decision to proceed with development of a mining operation within the licence area;
• 125,000 euros within 30 days of issuance of a mining licence for the project;
• 125,000 euros within 30 days of commencement of mine construction within the licence area;
• 100 troy ounces of gold within 30 days of commencement of commercial production (CCP), then increasing by 75 troy ounces per year until and including the third anniversary of commercial production when 325 troy ounces will be delivered.

Stage 5

• Avrupa participates in the mine build or dilutes to 1-per-cent net smelter royalty.

Avrupa Minerals is a growth-oriented junior exploration and development company directed to discovery of mineral deposits, using a hybrid prospect generator business model. The company holds one licence in Portugal, the Alvalade VMS (volcanogenic massive sulphide) project, presently optioned to Sandfire MATSA in an earn-in joint venture agreement. The company now holds one exploration licence covering the Slivova gold prospect in Kosovo, and is actively advancing four prospects in central Finland through its in-process acquisition of Akkerman Finland Oy. Avrupa focuses its project generation work in politically stable and prospective regions of Europe, presently including Portugal, Finland and Kosovo. The company continues to seek and develop other opportunities around Europe.

Paul W. Kuhn, president and chief executive officer of Avrupa Minerals, a licensed professional geologist and a registered member of the Society of Mining Engineers, is a qualified person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release. Mr. Kuhn, the QP, has not only reviewed, but prepared and supervised the preparation or approval of the scientific and technical content in the news release.