Environmental Impact Assessment Submitted

Measured Resource Drilling Update

PERTH, Australia, May 21, 2021 (GLOBE NEWSWIRE) — European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ: ERPNF) (“European Metals” or the “Company”) is pleased to announce that the Cinovec Project company Geomet S.R.O has submitted the documentation related to the initial EIA notification to the Czech Ministry of the Environment.

The Company also provides the latest results from its current nineteen hole resource drilling programme at the Cinovec Project. The current programme of work was announced by the Company on 10 August 2020 (Measured Resource Drilling Commenced). Drilling of seventeen of the nineteen holes has been completed and the eighteenth hole is currently underway. Analytical results for another six of the drill holes from the Cinovec South deposit are reported.

European Metals Executive Chairman Keith Coughlan said:

“We are pleased to report that submission of the EIA to the Czech Government fulfills a critical path item in relation to finalising the approval for the Cinovec mine. We anticipate that the process will enable European Metals and its JV partner CEZ to actively engage with the relevant stakeholders to ensure that all affected parties are consulted and all viewpoints are actively considered.

With regards the drill results we advise that these interim results of the current drilling programme at Cinovec are either in line with, or better than our expectations. The primary purpose of the programme is to convert a larger portion of the resource to the measured category to provide greater certainty of the financial model and security to the financiers we are currently in discussions with. It is important to note that the first stage of the proposed process, the wet magnetic separation has the effect of greatly increasing the grade of lithium oxide in the concentrate to approximately 2.85%.

The zinnwaldite concentrate produced from Cinovec requires only roasting, compared to the calcination and roasting required of processing spodumene. This will have the effect of considerably reducing greenhouse gas emissions of the Project when compared to existing spodumene projects.”

ENVIRONMENTAL IMPACT ASSESSMENT

The Submission of the EIA to the Czech Ministry of the Environment officially initiates the environmental impact assessment process of the Cinovec project. The Ministry of Environment has launched a two-month screening procedure, including the notification of all concerned stakeholders. During this time, the Ministry will assess the submitted documentation, comments of all stakeholders in the proceedings and decide whether it will be necessary for European Metals to prepare additional studies. Following European and Czech environmental legislation. The submission also includes an independent expert assessment of Natura 2000 (the European Union’s network of nature protection areas) which concluded that there is no negative impact on the surrounding bird area and other sites of natural importance.

MEASURED RESOURCE DRILLING UPDATE

Given the relative ease of beneficiation of the Cinovec deposit through wet magnetic separation the Company decided that it was important to report the drill results and the “in lab” beneficiation results. As reported to the market 21 October 2016 (Outstanding Lithium Recoveries at Coarse Grind) wet magnetic separation (“WMS”) achieved a near pure lithium mica concentrate grading 2.85% Li2O with a lithium recovery of 92%.

Results:

• Resource drill holes CIS-24, CIS-25, CIS-26, CIS-28, CIS-29 and CIS-30 have been completed including analytical reports.
• Resource drill holes CIS-15, CIS-16, CIS-17, CIS-27and CIS-32 have been drilled with analytical results pending.
• Drilling of resource hole CIS-33 is currently underway.
• Hole CIS-24 returned 66.5m averaging 0.56% Li2O, incl. 6.7m @ 0.93% Li2O, and 20m @ 0.13% Sn.
• Hole CIS-25 returned 88.2m averaging 0.60% Li2O and 0.17% Sn, incl. 21.4m @ 0.73% Li2O and 0.46% Sn.
• Hole CIS-26 returned 84.6m averaging 0.49% Li2O and 0.09% Sn.
• Hole CIS-28 returned 86.3m averaging 0.51% Li2O, incl. 5.25m @ 0.97% Li2O.
• Hole CIS-29 returned 70.8m averaging 0.52% Li2O, incl. 3.1m @ 0.99% Li2O, and 2m @ 0.99% Li2O.
• Hole CIS-30 returned 66.2m averaging 0.49% Li2O and 0.13% Sn, incl. 3.5m @ 1.31% Li2O, 0.42% Sn and 0.155% W, 1m @ 2.3% Li2O, 0.59% Sn and 0.327% W, and 4.45m @ 0.85% Sn.

The current drill programme will define blocks of resource for the first 5 years of mining within the Cinovec-South area, with a goal to convert the resource from indicated to measured category. The holes have been terminated in ore consistent with the aim of targeting the first 5 years of resource blocks for the mine.

WEBSITE

A copy of this announcement is available from the Company’s website at www.europeanmet.com.

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