Research note just out UPDATE: EMO-TSX.V - First step-out returns wide, ultra-high grade at La Infanta, incl. 53.2% ZnEq over 4.9 m First step-out returns wide, ultra-high grade at La Infanta; Geophysics indicates potential to more than double historic strike length Emerita announced drill results from the final 3 infill holes and the first step out hole at La Infanta. Hole #18 is a 40 m step out to the west of the historic resource boundary and returned an ultra-high grade intercept of 53.2% ZnEq over 4.9 m (or US$1,876/t at spot) from ~62 m down hole within a wider intercept of 36%ZnEq over 8.2 m. This is the third highest grade-thickness intercept to date that is expanding the footprint of the historic resource. Also, Hole #23 that is located ~50 m further west of Hole #18 has intersected two zones of massive sulphides (assays pending). Hole #17 (assays pending), located 300 m east, is the only other hole that has also intersected this deeper second zone of massive sulphides. Management believes this deeper second zone is a structural repetition of the zone at depth to the north and the geophysics suggests it remains open at depth. Highlights from the infill holes included Hole #14 that returned 31.1% ZnEq over 5.7 m from 84.7 m down hole. Overall, our weighted average grade and widths for the infill drilling is in line with the historic resource of 26.5% ZnEq over 3 – 6 m widths. The geophysical survey is expected to resume by the end of October, when hunting season in the region concludes. The drill program at Infanta is designed to test 1.5 kilometer strike length and test the depth extent to at least 300 meters down dip. Geological mapping and geophysical surveys to date indicate strong potential that the mineralization persists over >1.5 km strike length and beyond 400 m depth. We believe the permits for IBW are imminent and management plans to add 3 more rigs – 2 at Romanera and 1 at El Cura/regional targets identified in geophysics (currently 2 rigs at La Infanta). Catalysts Aznalcollar resolution – year end 2021 (Clarus expectation); Drill results from drill program at La Infanta – ongoing; Environmental approval (AAU) for drilling at Romanera & El Cura – imminent; Commencement of drilling at Romanera (~10,000 m) & El Cura (~7,000 m) – H2/21; IBW Resource Update – Q1/22. Conclusion: The Phase 1 of Infanta drill program is now complete with 16 holes that have validated the geologic model and the historic resource (0.8Mt at 26.5% ZnEq). The historic resource was defined over ~600 m strike and tested down to a shallow depth of 120 m. Geophysics and mapping has suggested strong potential of the mineralization continuing well beyond the historic resource footprint with potential to double the strike length and more than triple the depth extent. We are encouraged by the first step out hole that has returned significantly higher grade than historic resource grade, as well, Hole #23 is suggesting 2 potential lenses at depth that could add further upside to the exploration potential (assays pending). We are currently modelling only ~2.5 Mt at ~26.5% ZnEq at La Infanta (~3x historic resource) in our valuation model and see potential for significant upside beyond our estimate (up to >6x historic resource), drilling dependent. In addition, we expect the drilling at Romanera to commence in short order, driving further news flow with an accelerated drill program as the rig count increases to 5 from 3. Beyond this, we also expect the Administrative Court in Spain to announce a decision on Aznalcollar public tender in favour of EMO any day now – so lots of news flow and re-rating catalyst.