:: PFS Update Confirms Potential of Low-Cost Lithium Hydroxide Production

European Metals Holdings Limited is pleased to announce the results from the successful update of the process flowsheet previously developed to enable the production of lithium hydroxide (LiOH.H2O). This work has been completed in conjunction with test-work confirming the production of battery grade lithium hydroxide from Cinovec ore. These results significantly enhance the forecast economics of the Cinovec Project.

HIGHLIGHTS (all $ figures in this release are US Dollars and increases refer to the 2017 PFS Lithium Carbonate study):

• Net estimated overall cost of production post credits: $3,435 / tonne LiOH.H₂O
• Project Net Present Value (“NPV”) increases 105% to: $1.108B (post tax, 8%)
• Internal Rate of Return (“IRR”) increased 37% to 28.8% (post tax)
• Total Capital Cost: $482.6M
• Annual production of Battery Grade Lithium Hydroxide: 25,267 tonnes
• Studies are based on only 9.3% of reported Indicated Mineral Resource and a mine life of 21 years processing an average of 1.68 Mtpa ore

The process used to produce lithium hydroxide allows for the staging of lithium carbonate and then lithium hydroxide production to minimize capital and startup risk and enables the production of either battery grade lithium hydroxide or carbonate as markets demand

European Metals Managing Director Keith Coughlan said, “I am very pleased to report to shareholders on the completion of this update to our 2017 Preliminary Feasibility Study for the Cinovec project which adds significantly to the already robust forecast economics for the project. Since demonstrating that battery grade lithium hydroxide can be produced from zinnwaldite mineralisation we have worked with Hatch to update the flowsheet and engineering required to adapt our lithium carbonate producing flowsheet to one that converts battery grade lithium carbonate into lithium hydroxide. We have now confirmed the ability with our resource, which is the largest lithium resource in Europe, to produce either or both products in line with market requirements once in production. Cinovec is strategically located in central Europe in close proximity to the continent’s vehicle manufacturers. With increasing demand for Electric Vehicles and the expected demands of grid storage capacity, the project is very well placed to supply the European lithium market for many decades.”

The Cinovec Project remains a potential low operating cost, hard rock lithium producer, due to a number of key advantages:

• By-product credits from the recovery of tin, tungsten, potash and sodium sulphate;
• The ore is amenable to single-stage crushing and single-stage coarse SAG milling, reducing capital and operating costs and complexity;
• Paramagnetic properties of zinnwaldite allow the use of low cost wet magnetic processing to produce a lithium concentrate for further processing at relatively high recoveries;
• Relatively low temperature roasting at atmospheric pressure utilizing conventional technologies, reagent recycling and the use of waste gypsum; and
• Low cost access to extensive existing infrastructure and grid power.

Neil Meadows has, following completion of the updated PFS, stood down with immediate effect as non-Board Chief Operating Officer to pursue another opportunity. The Board thanks Neil for his contribution and wishes him well in his new endeavours.