Yugo Metals Accelerates Balkan Drilling with $5M Placement and Promising Gold Hits

Encouraging Gold Intercepts at Sinjakovo Drive Exploration Momentum

Yugo Metals Limited (ASX:YUG) is making tangible progress in its Balkan exploration campaign, with its maiden drill program at the Erak Prospect within the Sinjakovo Project delivering promising gold results. Five diamond drillholes totalling 632 metres have been completed, with assays from the first three holes revealing a best intercept of 8 metres at 1.2 grams per tonne (g/t) gold equivalent from 26.1 metres depth. The mineralised zone is characterised by phyllic alteration and brecciation, with widths ranging from 3 to 34 metres, indicating a robust system that remains open along strike and at depth. Drilling is ongoing, with further holes planned to extend the known mineralisation and test high-grade trench results previously recorded at 61 metres averaging 1.5 g/t gold.

Cajnice Project Drilling Set to Test High-Grade Base and Precious Metals

Following the Sinjakovo progress, Yugo is preparing for an initial four-hole diamond drilling campaign at its Cajnice Project, targeting the Majdan and Pisonica prospects. These drillholes aim to test the depth extensions of surface outcrops exhibiting gold-silver-lead mineralisation with grades up to 1.9 g/t Au, 220 g/t Ag, and 13.6% Pb. Hosted within silicified sedimentary layers adjacent to felsic intrusives, this mineralisation presents a compelling target for base and precious metals. The company has indicated that further drilling will depend on the outcomes of these initial holes, signalling a measured approach to resource definition.

Strategic $5 Million Placement Fuels Exploration Across Three Projects

To accelerate its drilling programs, Yugo Metals successfully completed a placement of 52 million shares at 9.6 cents each, raising $5 million before costs. This capital injection bolsters the company's cash position to approximately $6.3 million as of 30 June 2026, providing a solid runway to advance exploration at Sinjakovo (gold), Sockovac (nickel-cobalt), and Cajnice (base metals). CPS Capital Group acted as lead manager for the placement, receiving fees partly in shares and options. The funding milestone supports Yugo’s ambition to build a diversified portfolio of battery and precious metals projects in Europe’s prolific Tethyan metallogenic belt.

Sockovac Project Gains Momentum with Petrovo Tenement Approval

Earlier this year, Yugo secured the Petrovo tenement within its Sockovac Project, following successful consultations with local authorities. This 10 square kilometre licence covers historical drill intercepts of nickel and zinc-lead mineralisation, including 5.1 metres at 6.6% nickel and 9.35 metres at 8.2% combined zinc and lead. Surface sampling has also returned standout gold and silver values, up to 5.7 g/t and 1,330 g/t respectively, highlighting the polymetallic potential of the area. The company plans to integrate these high-grade zones into its exploration pipeline, complementing its existing assets and enhancing shareholder value through potential resource growth.

Corporate Developments Strengthen Leadership and Governance

On the corporate front, Yugo appointed Petar Tomašević as its permanent CEO in April 2026, affirming continuity in leadership during this critical exploration phase. The board also welcomed two new non-executive directors, Craig McNab and Cameron Peacock, following the resignation of Mihajlo Matkovic. These appointments aim to reinforce governance and strategic oversight as the company scales its exploration activities. Additionally, Yugo updated its registered office to Booragoon, Western Australia, reflecting its operational base.

Financial Position and Outlook

Exploration expenditure for the quarter was $453,000, reflecting active field programs without any mining or production activities. The company’s cash flow statement shows a net cash inflow from financing activities of $4.88 million, largely driven by the placement, offsetting operating cash outflows related to exploration and corporate costs. With an estimated 6.2 quarters of funding available at current expenditure rates, Yugo is well-positioned to execute its exploration strategy. The company continues to assess potential acquisitions in tier 1 jurisdictions, aiming to complement its asset base and enhance long-term value.