Dr. Aleksandar Miskovic reports

TERRA BALCANICA OBTAINS EXPLORATION LICENCE IN BOSNIA-HERZEGOVINA

Terra Balcanica Resources Corp. has secured a new mineral exploration licence comprising the Viogor polymetallic project in eastern Bosnia and Herzegovina.

The new mineral exploration permit for the lead-zinc-copper and associated base and precious metals No. 05.04/310-366-3/26 was issued to Energetski minerali doo Banja Luka, a wholly owned Terra subsidiary, by the Republic of Srpska Ministry of Energy and Mines on May 20, 2026. The exploration permit is valid for three years, with the standard provisions for two two-year extensions, allowing for up to seven years of continuous mineral exploration tenure.

The new permit area encapsulates the three targets defined by Terra's diligent exploration activities between 2020 and 2022, namely: the historically known Cumavici polymetallic corridor, the Kiseli Potok Mo porphyry and the two Brezani discoveries. It encompasses 49.06 square kilometres and extends northwest-southeast along the Alpine orogenic trend west and south of the town of Srebrenica.

Terra's president and chief executive officer, Dr. Aleksandar Miskovic, PGeo, remarked: "Building on our discoveries of high-grade, silver-antimony-zinc-lead-gold mineralization at Cumavici as well as an auriferous skarn and silver-antimony-zinc mineralization at Brezani, our securing of the Viogor project is an important step in advancing Terra's Bosnian assets. It allows the company to maintain drilled target areas for an additional seven years and as such to become one of the very few suppliers of critical metals, notably antimony, for the neighbouring European markets. Removing tenure uncertainty paves way for unhindered push towards a preliminary resource estimate next year.

"Not only is the award of Viogor fundamental for our success, but it also illustrates the ease of doing business in Republic of Srpska, Bosnia and Herzegovina, while highlighting the expertise of our management team when it comes to holding onto key assets."

Viogor project

The Viogor project covers 49.06 square kilometres of historic Srebrenica mining district (that is, the Srebrenica magmatic complex) within one active exploration licence. It includes a series of silver and base metal targets interpreted as intermediate-sulphidation epithermal veins and lies approximately 80 kilometres east-northeast of the Dundee Precious Metals' Vares mine that hosts indicated mineral resources of 18.3 million tonnes at 168 grams per tonne silver, 1.3 grams per tonne gold, 4.6 per cent zinc, 2.9 per cent lead, 0.4 per cent copper and 30 per cent BaSO4 (barium sulphate) and inferred mineral resources of 2.8 million tonnes at 75 g/t Ag, 0.5 g/t Au, 2.4 per cent Zn, 1.6 per cent Pb, 0.2 per cent Cu and 13 per cent BaSO4, a deposit comparable in grade and metal composition with the two targets at Viogor.

Terra's exploration licence is also located adjacent to the Mineco Ltd. Gross (Sase) mine, which produces approximately 330,000 tonnes of lead-zinc-silver-gold concentrate per year. This facility hosts crushing and flotation circuits to process the ore, which is genetically identical to the mineralized horizons drilled by Terra and thus offers a strategic advantage during further project development.

Regional and project geology

The Srebrenica magmatic complex (SMC) is a 30-million-year-old western member of the Podrinje metallogenic district, which includes the Serbian Cer and Boranja mining districts, collectively the northwesternmost extensions of the Serbo-Macedonian metallogenic province (SMMP) of the Western Tethyan metallogenic belt. The SMMP mainly hosts deposits of Paleogene to Neogene age. The Srebrenica district is hosted by Oligo-Miocene, intermediate to mafic subvolcanic rocks emplaced into Paleozoic slates and covered by Neogene felsic pyroclastics.

The district has been known to host two types of mineralization: (i) cassiterite-bearing, greisen mineralization related to quartz-tourmaline-muscovite facies; and (ii) lead-zinc-iron-bearing hydrothermal veins with variable concentrations of silver, tin and antimony. As such, the Srebrenica district shares many mineralogical similarities to those of the Andean silver-tin belt, Germany's Freiberg-Erzgebirge district, the Lavrion deposit in Greece and the Baia Mare metallogenic district of East Carpathians in Romania. The Srebrenica mineralization contains a comparable mineral assemblage with that of the San Jose silver-tin deposit in Oruro, Bolivia (cassiterite, stannite, pyrite, chalcopyrite, argentian tetrahedrite, galena and sphalerite).

The ore mineralization in Srebrenica is related to a syn-volcanic ring-radial fractures where hydrothermal ore veins are concentrated within four main systems of brecciated fractures: (i) the northeastern ore zone (Sase/Gross mine); (ii) the northwestern ore zone (Cumavici); (iii) the northern ore zone (Vitlovac); and (iv) the central ore system (Guber and Olovine). The origin of ore mineralization is genetically associated with a concealed plutonic body of S-type granitoid composition shallowly emplaced beneath the south-central part of the district.

Extensive greisen bodies are particularly well developed and composed of quartz, tourmaline and muscovite, which are found along the contact between the microgranodiorites and Paleozoic slates. Tourmaline occurs as needle-shaped, columnar and radiating aggregates. Greisens tend to be associated with endoskarns and indicate a proximal intrusive body with upper aureoles sealed shut to prevent fluids escaping. The lead-zinc sulphides, accompanied by siderite, marcasite, sulphosalts and silver sulphides, are the dominant hydrothermal ore minerals, developed in the central part of the district, while, in the peripheral parts, there is mineralization associated with low-temperature epithermal veins (antimony, locally tungsten and mercury). The chief target zones at Viogor presently include:

• The Cumavici corridor comprises a series of shallow, high-grade, intermediate-sulphidation epithermal silver-gold-lead-zinc-antimony vein-hosted targets with over 7.2 kilometres of strike length and hosted by clastic and crystalline tuffs and pyroclastic breccias. The host volcanics have been crosscut by northwest-southeast-trending structures and are part of the larger SMC magmatic-hydrothermal system. High-grade epithermal mineralization is silver and antimony dominant with further gold-lead-zinc tenure. Terra's drilling has confirmed three polymetallic systems so far: Joseva, Cumavici Crest and the flagship vein system at Cumavici Ridge. The Cumurnica and Kazani targets remain to be drill tested. Thus far, the average grade of polymetallic mineralization at the flagship Cumavici Ridge system, which has seen over 28 drill holes along 180 metres of strike length, averages 485 grams per tonne silver equivalent over 4.0 metres (March, 2026, commodity prices). Mineralogically, the ore is characterized by sphalerite-stibnite-galena and further silver-rich sulphosalts that are associated with quartz and calcite veining and breccia cement. Epithermal mineralization occupies faults that crop out at surface as distinctive topographic lows, coinciding with magnetic lows and often with sulphides visible within fault gouge.
• Brezani hosts components of a large, multidomain, magmatic-hydrothermal system discovered by airborne transient electromagnetic/magnetic and geochemical surveys. It comprises a 650-metre-by-400-metre-large, retrograde, chlorite overprinted, gold-bearing skarn upon a shallowing, base-metal-rich, structurally controlled, intermediate-sulphidation epithermal ore zone at depth. The BRE23001 through 23004 diamond drill holes were located within the gold-in-soil anomaly and were intended to assess lithological variability and grade of the gold skarn along strike. Additionally, the drill holes tested the resistive volume above an abrupt change into a central magnetic-low shell within the general greater-than-95th-percentile magnetic-high anomaly to verify the lateral extent of 0.61 g/t gold equivalent drilled in the central BREDD002.

This particular discovery hole further intercepted around 20 metres of fault-breccia-hosted silver-antimony-zinc mineralization at 480 metres of depth grading upward of 436 g/t AgEq. This intercept is coincident with a 1.2-kilometre-long electromagnetic conductor shallowing toward northeast and eventually surfacing at the topographic high of Brezani, which was imaged during the 2021 TEM study. The mineralogical textures form the initial intercept pierced through the ore zone suggest a stratigraphic level that is apparently below the so-called boiling zone, thus offering potential upside should one be intercepted up-dip. The lateral extent of the 17-degree dipping conductor interpreted as the antimony-silver-zinc mineralization is 1.2 kilometres in length, up to 600 metres in width and 20 metres thick offers potential for a large-tonnage orebody.

Shares for debt

The company has further agreed to settle outstanding debts in the amount of $100,000 owing to two arm's-length creditors by issuing an aggregate of 1,666,666 common shares in the capital of the company at a price of six cents per common share. The board of directors has determined it is in the best interests of the company to settle the outstanding debt by the issuance of the common shares in order to preserve the company's cash for continuing operations.

Closing of the shares-for-debt transaction is subject to customary closing conditions, and the company intends to close as soon as practicable. The common shares to be issued pursuant to the shares-for-debt transaction will be subject to a hold period of four months and one day from the date of issuance in accordance with applicable securities laws.

Qualified person

Dr. Aleksandar Miskovic, PGeo, 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. Dr. Miskovic has reviewed and validated the information contained in this news release as factual and accurate.

About Terra Balcanica Resources Corp.

Terra Balcanica is a silver- and antimony-focused polymetallic exploration company targeting large-scale mineral systems in the Balkans of southeastern Europe. The company has a 100-per-cent interest in the Viogor project in eastern Bosnia and Herzegovina. Terra owns significant stake in Terra North Resources Corp. and its Canadian assets that comprise a 100-per-cent-optioned portfolio of uranium-prospective claims surrounding the world-renowned Athabasca basin. The company emphasizes responsible engagement with local communities and stakeholders. It is committed to pro-actively implementing good international industry practice (GIIP) and sustainable health, safety and environmental management.

We seek Safe Harbor.