Highlights

• Yugo Metals a Perth-based explorer with projects in Bosnia and Herzegovina, has released its quarterly activities report for.

• Yugo says nine diamond holes have now been completed at Erak, with gold linked to a hydrothermal silica-sericite-pyrite.

• The company gives estimated true thicknesses of 34 metres for ERDD006 and 21 metres for ERDD007.

• At the Monte project, drilling of four initial diamond holes, about 600 metres in total, began in August.

Yugo Metals (ASX:YUG) — a Perth-based explorer with projects in Bosnia and Herzegovina, has released its quarterly activities report for the three months to 30 September 2026. The report centres on diamond drilling at the Erak prospect in the Golden Hills Project, along with early drilling at Monte and a land access agreement at St Nicholas.

Erak gold drilling

Yugo says nine diamond holes have now been completed at Erak, with gold linked to a hydrothermal silica-sericite-pyrite alteration zone. Drilling is continuing, and the company says the positive intercepts remain open in several directions, with more holes planned to test extensions.

The reported intercepts are:

- ERDD006: 36.1 metres at 2.3 grams per tonne gold from 51.8 metres, including 3 metres at 14.5 grams per tonne and a one-metre interval at 42.5 grams per tonne

- ERDD007: 22.4 metres at 1.1 grams per tonne from 75 metres

- ERDD008: 6.0 metres at 1.5 grams per tonne from 86.6 metres

- ERDD009: 10.4 metres at 2.6 grams per tonne from 74.6 metres, including 1.2 metres at 20.9 grams per tonne, previously reported on 18 August 2026

The company gives estimated true thicknesses of 34 metres for ERDD006 and 21 metres for ERDD007. These are drilling intercepts, not a Mineral Resource estimate.

Monte and St Nicholas

At the Monte project, drilling of four initial diamond holes, about 600 metres in total, began in August 2026 to test the depth extension of outcrops with historical gold-silver-lead results. Yugo says further drilling depends on initial results, and more details are due in the coming quarter.

At St Nicholas, the Petrovo tenement was granted earlier in 2026 after consultation. After quarter end, Yugo signed a land access and lease agreement with landowners for planned drill sites, announced on 6 October 2026, and issued 18,000,000 shares on 9 October 2026 as consideration. The company cites historical 1969-70 drilling that reported 5.1 metres at 6.6 per cent nickel and 9.35 metres at 8.2 per cent zinc plus lead, noting that silver and gold were not analysed. Recent rock chip sampling returned up to 5.7 grams per tonne gold and 1,330 grams per tonne silver. These are historical and surface results.

Cash and capital

Cash at 30 September 2026 was about A$4.71 million with no debt, down from A$6.285 million at the start of the quarter. Net operating cash outflow was A$1.562 million, including A$1.072 million of exploration and evaluation payments. Related party payments were A$163,000, comprising A$133,000 to directors and A$30,000 to a company controlled by Craig McNab for bookkeeping, accounting and company secretarial services. Yugo estimates about 3.02 quarters of funding at the current outflow.

At 29 October 2026 the company had 431,100,586 ordinary shares on issue.

Tenure and risks

Yugo holds five exploration licences at 100 per cent with no changes during the quarter. The report lists the Doboj licence at St Nicholas with an expiry of 19 October 2026, which has passed. The company says an extension is being processed, with formal approval expected in early November 2026. Until that is received, the extension remains unconfirmed.

Exploration results are early stage and may not lead to a resource.

Next milestones

The company lists approval of the Doboj extension in early November 2026, continued drilling at Erak with extension holes, further details of Monte drilling in the coming quarter, drilling at the Petrovo tenement following the access agreement, and continued evaluation of new prospects and acquisitions in tier 1 jurisdictions.