European Metals Holdings Regulatory News (EMH)

For immediate release

12 May 2022

European Metals commences trading on OTCQX® Best Market

European Metals accepted to trade on the US based OTCQX® Best Market Platform

Company will commence trading on OTCQX® Best Market under the codes EMHXY, ERPNF and EMHLF on 12 May 2022

Trading will accelerate exposure to major US investors

OTCQX® Best Market adds to the Company's suite of active listings across the ASX, AIM and European exchanges

European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ: EMHXY) ("European Metals" or the "Company") is pleased to announce the Company will commence trading on the OTCQX® Best Market Program, which is run by the OTC Markets Group, following increased US investor interest in European Metals' Cinovec project, the largest hard rock lithium deposit in Europe.

The Company will commence trading on 12 May 2022 under the symbols "EMHLF"; "EMHXY"; and "ERPNF."

Commenting on the OTCQX® Best Market membership, Executive Chairman Keith Coughlan said:

"I am very pleased to see European Metals join the OTCQX, which will significantly enhance the Company's exposure to North American investors.

"Trading on the OTCQX comes at a pivotal time for investors seeking to leverage the transition away from fossil fuels, with the European Union offering significant funding to accelerate change and adoption rates of electric vehicles in the region continuing to climb.

"European Metals is well positioned for the rising demand in battery materials, developing the Cinovec project, the largest hard rock lithium project in the EU, which is centrally located on the Cech Republic's border with Germany. The project possesses excellent ESG credentials which will enable the production of battery grade lithium hydroxide and carbonate with potentially one of the lowest CO2 emissions, globally."

OTCQX® Best Market increases the visibility of all member companies (which includes other ASX mining companies such as Fortescue Mining Group and Champion Iron Limited) and EMH anticipates that the membership will help the Company grow its global brand, increase liquidity, and shape its message to the US investment community.

The ASX will continue to be the Company's primary listing, with investors also able to purchase shares through the OTCQX® Best Market, UK-based AIM market and Germany's Frankfurt Börse.

European Metals confirms the listing is non-dilutive, as no additional capital is required to be raised and no new shares will be issued on the OTCQX® Best Market.

This announcement has been approved for release by the Executive Chairman.

OTCQX® Best Market Symbols

EMHXY - American Depositary Shares

ERPNF - Australia Chess Depositary Instrument

EMHLF - UK Depositary Instrument

BACKGROUND INFORMATION ON CINOVEC

PROJECT OVERVIEW

Cinovec Lithium/Tin Project

Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Geomet has been granted a preliminary mining permit by the Ministry of Environment and the Ministry of Industry. The company is owned 49% by EMH and 51% by CEZ a.s. through its wholly owned subsidiary, SDAS. Cinovec hosts a globally significant hard rock lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at 0.44% Li2O and 0.05% Sn and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O and 0.05% Sn containing a combined 7.39 million tonnes Lithium Carbonate Equivalent and 335.1kt of tin (refer to the Company's ASX release dated 13 October 2021) (Resource Upgrade at Cinovec Lithium Project).

An initial Probable Ore Reserve of 34.5Mt at 0.65% Li2O and 0.09% Sn reported 4 July 2017 (Cinovec Maiden Ore Reserve - Further Information) has been declared to cover the first 20 years mining at an output of 22,500tpa of lithium carbonate (refer to the Company's ASX release dated 11 July 2018) (Cinovec Production Modelled to Increase to 22,500tpa of Lithium Carbonate).

This makes Cinovec the largest hard rock lithium deposit in Europe, the fourth largest non-brine deposit in the world and a globally significant tin resource.

The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.

On 19 January 2022, EMH provided an update to the 2019 PFS Update, conducted by specialist independent consultants, which indicates a post-tax NPV of USD1.938B and a post-tax IRR of 36.3% and confirmed that the Cinovec Project is a potential low operating cost producer of battery-grade lithium hydroxide or battery grade lithium carbonate as markets demand. It confirmed the deposit is amenable to bulk underground mining (refer to the Company's ASX release dated 19 January 2022) (PFS Update delivers outstanding results). Metallurgical test-work has produced both battery-grade lithium hydroxide and battery-grade lithium carbonate in addition to high-grade tin concentrate at excellent recoveries. Cinovec is centrally located for European end-users and is well serviced by infrastructure, with a sealed road adjacent to the deposit, rail lines located 5 km north and 8 km south of the deposit, and an active 22 kV transmission line running to the historic mine. As the deposit lies in an active mining region, it has strong community support.

The economic viability of Cinovec has been enhanced by the recent strong increase in demand for lithium globally, and within Europe specifically.

There are no other material changes to the original information and all the material assumptions continue to apply to the forecasts.

BACKGROUND INFORMATION ON CEZ

Headquartered in the Czech Republic, CEZ a.s. is an established, integrated energy group with operations in a number of Central and Southeastern European countries and Turkey. CEZ's core business is the generation, distribution, trade in, and sales of electricity and heat, trade in and sales of natural gas, and coal extraction. CEZ Group has 33,000 employees and annual revenue of approximately EUR 7.24 billion.

The largest shareholder of its parent company, CEZ a.s., is the Czech Republic with a stake of approximately 70%. The shares of CEZ a.s. are traded on the Prague and Warsaw stock exchanges and included in the PX and WIG-CEE exchange indices. CEZ's market capitalization is approximately EUR 22.1 billion.

As one of the leading Central European power companies, CEZ intends to develop several projects in areas of energy storage and battery manufacturing in the Czech Republic and in Central Europe.

CEZ is also a market leader for E-mobility in the region and has installed and operates a network of EV charging stations throughout Czech Republic. The automotive industry in the Czech Republic is a significant contributor to GDP, and the number of EV's in the country is expected to grow significantly in the coming years.

CONTACT

For further information on this update or the Company generally, please visit our website at www.europeanmet.com or see full contact details at the end of this release.

WEBSITE

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

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