European Metals Holdings Regulatory News (EMH)

For immediate release

7 March 2016

European Metals Holdings Limited

Equity issue update

As announced on 4 March 2016, European Metals Holdings Limited ("European Metals" or "the Company") (ASX and AIM: EMH) had received firm commitments for the placement of 13 million ordinary shares (represented by Chess Depositary interests or "CDI's") in the Company ("Placing Shares") at an issue price of AU$0.135 per Placing Share to raise AU$1,755,000. The funds have been raised to further development at the Company's 100% owned Cinovec Lithium and Tin Project in the Czech Republic, located on the border with Germany and the Czech Republic. The placement was priced at a discount of approximately 3% to the 5 day volume weighted average price.

EMH confirms that application will be made tomorrow for the Placing Shares to be admitted to trading on AIM with admission to take place on or around 14 March 2016. The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares in EMH.

Rare Earth Minerals Limited ("REM") has committed to subscribe for 9,525,926 CDIs in the Placing. As REM is an 11.87 per cent shareholder in the Company, REM is a related party for the purposes of the AIM Rules. The Directors of EMH, excluding Kiran Morzaria who is a director of REM, consider, having consulted with its nominated adviser, that the terms of the placing are fair and reasonable insofar as EMH's shareholders are concerned.

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