Europa Metals Regulatory News (EUZ)

31 July 2018

Europa Metals Ltd

("Europa Metals", the "Company" or the "Group")(ASX, AIM, JSE: EUZ)

Quarterly Activities and Cashflow Report

For the period ended 30 June 2018

Highlights:

Operational - Toral lead-zinc-silver project, Spain (the "Toral Project")

· On 23 April 2018, the Company announced that Mining Sense Consulting ("Mining Sense") had been engaged to support the exploration programme at the Company's 100% owned Toral Project located in the province of León, Northern Spain. Mining Sense's Technical Director, Jesús Montero, is responsible for the consultancy team dedicated to the Toral Project, under the ultimate direction of Myles Campion, Group Technical Director.

o Over the last five years, Mr Montero has driven the mining studies and initial construction of Berkeley Energia's Salamanca project in the role of Mining Manager.

· On 19 June 2018, the Company announced that it had engaged the services of UK based Addison Mining Services Limited to commence an initial scoping study on the Toral Project, with the following specific workstreams: 

o Optimisation of the maiden JORC 2012 compliant Inferred resource estimate prepared earlier this year;

o Preliminary mine layout;

o Mineral inventory estimation;

o Preliminary Economic Assessment, DCF and sensitivity analysis;

o CAPEX and OPEX parameters; and

o Review of environmental, hydrogeological and geotechnical parameters.

Corporate

· Sasfin Capital Proprietary Limited ("Sasfin"), a member of the Sasfin group, was appointed as the Company's JSE sponsor with effect from 1 May 2018.

· On 14 May 2018, the Company announced that 197,411,127 unlisted options exercisable at £0.00165 per share on or before 12 May 2018 had lapsed unexercised. In addition, the Company advised that a further 2,000,000 unlisted options exercisable at £0.0075 per share and 3,000,000 unlisted options exercisable at £0.02 per share on or before 1 March 2018 had also lapsed unexercised.

· On 21 May 2018, the Company announced, inter alia, that a special resolution had been passed at a duly convened general meeting to change the name of the Company from Ferrum Crescent Limited to Europa Metals Ltd with the Australian Securities and Investment Commission ("ASIC") recording the change of name effective on 31 May 2018 and trading on the ASX under the new code of EUZ commencing on 5 June 2018.

· On 22 May 2018, the Company announced, further to the receipt of shareholder approval at the abovementioned general meeting, the completion of an equity fundraising, comprising a placing and subscription, raising, in aggregate, approximately £1 million (before expenses), through the issue of, in aggregate, 1,739,130,435 new ordinary shares of no par value each in the capital of the Company at a price of 0.0575 pence per share.

Post Quarter End

· On 16 July 2018, the Company announced that it had secured a combined Reverse Circulation and Diamond drilling rig for mobilisation to the Company's Toral Project site during August 2018. The Combination rig and associated operating crew is being supplied by Sondeos y Perforaciones Industriales de Bierzo SA and will be overseen by the Company's on-site exploration team.

· On 27 July 2018, the Company announced that it had conditionally raised, in aggregate, approximately £563,516 (before expenses), through a placement of 727,118,650 new ordinary shares of no par value each in the capital of the Company (the "Placing Shares") at an issue price of 0.0775 pence per share (the "Placing"). The Placing was arranged by the Company's joint broker, Turner Pope Investments (TPI) Limited ("Turner Pope"), as agent of the Company, with certain new and existing investors and utilises the Company's existing share capital authorities.

· On 30 July 2018, the Company announced that 205,949,134 unlisted options exercisable at £0.003 per share on or before 29 July 2018 had lapsed unexercised.

Additional Information

Fundraisings

On 22 May 2018, following receipt of shareholder approval at the Company's general meeting held on 21 May 2018, the Company announced, inter alia, the completion of an equity fundraising, comprising a placing and subscription, raising, in aggregate, approximately £1 million (before expenses), through the issue of, in aggregate, 1,739,130,435 new ordinary shares at a price of 0.0575 pence per share (the "Fundraising"). In addition, the Company announced the issue of certain options and, in aggregate, 55,345,793 new ordinary shares to certain of the Company's directors in lieu of outstanding fees at the same price as the shares issued pursuant to the Fundraising.

The Fundraising provided sufficient financing and general working capital to enable the Company to progress the resource delineation and commissioning of an initial scoping study in respect of the Company's Toral Project. The net proceeds from the Fundraising have been utilised towards the completion of all key phase 1 activities for 2018, including:

o commissioning of an initial scoping study including establishing first economic parameters;

o extension drilling to the east of the main defined ore resource area seeking to identify further mineralisation along strike, with the combination rig and associated operating crew scheduled to be mobilised to site during August 2018; and

o metallurgical and mineralogical analysis to progress the Company's understanding of likely saleable concentrates from a full future mining operation.

Post quarter end, on 27 July 2018, the Company announced that it had conditionally raised, in aggregate, approximately £563,516 (before expenses), through a placement of 727,118,650 Placing Shares at an issue price of 0.0775 pence per share. The Placing was arranged by Turner Pope, as agent of the Company, with certain new and existing investors and utilised the Company's existing share capital authorities.

The net proceeds secured from the Placing will be utilised towards funding a planned phase 2 work programme at the Toral Project (leading to the eventual completion of a proposed feasibility study), as well as providing additional general working capital for the Group.

Following the completion of the phase 1 extension drilling, phase 2 activities at the Toral Project will be centred around a new diamond infill drill programme, focused distinctly within the existing inferred ore body. Such additional exploration drilling will target the higher-grade areas of the Toral Project, with the objective of seeking to increase and enhance the Company's understanding of its existing maiden JORC 2012 compliant resource estimate and complete certain key components required for a planned full feasibility study in due course.

Corporate Changes

On 2 May 2018, the Company announced that, in accordance with paragraph 2.6 of the JSE Limited Listings Requirements, Sasfin had been appointed as the Company's JSE sponsor with effect from 1 May 2018.

On 21 May 2018, the Company announced that a special resolution had been passed at a duly convened general meeting to, inter alia, change the name of the Company from Ferrum Crescent Limited to Europa Metals Ltd with ASIC recording the change of name effective on 31 May 2018 and trading on the ASX under the new code of EUZ commencing on 5 June 2018.

Laurence Read, Executive Director of Europa Metals, today commented:

"The second quarter of 2018 saw the company obtain shareholder approval for the next stage of work at the Toral Project. A scoping study to delineate the first economic parameters at Toral has been initiated. The exploration team has been significantly enhanced with personnel from the experienced Mining Sense team and a combination rig has been secured for mobilisation to site shortly. We also changed the Company's name to Europa Metals and are fully focused on the continued realisation of value for our shareholders from the Company's promising Toral asset."

Exploration Interests

The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3 for the quarter ended 30 June 2018:

No tenements were acquired or relinquished during the quarter.

Appendix 5B

The appendix 5B can be viewed here:

http://www.rns-pdf.londonstockexchange.com/rns/2177W_1-2018-7-30.pdf

Competent Person's Statement

The Toral maiden inferred resource estimate was prepared by Mr J.N. Hogg, MSc. MAIG Principal Geologist for Addison Mining Services Limited ("AMS"), an independent Competent Person within the meaning of the JORC (2012) code and a qualified person under the AIM guidance note for mining and oil & gas companies. The maiden inferred resource estimate was aided by Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for AMS, under the guidance of the competent person. Mr Hogg has reviewed and verified the technical information that forms the basis of, and has been used in the preparation of, the current mineral resource estimate, including all analytical data, diamond drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the information, in the form and context in which it appears. Mr Hogg has also reviewed and approved the technical information in his capacity as a qualified person under the AIM Rules for Companies.

For further information on the Company, please visit www.europametals.com or contact:

Europa Metals Ltd

Dan Smith, Non-Executive Director and Company Secretary (Australia)

T: +61 417 978 955

Laurence Read, Executive Director (UK)

T: +44 (0)20 3289 9923

Strand Hanson Limited (Nominated Adviser)

Rory Murphy/Matthew Chandler

T: +44 (0)20 7409 3494

Turner Pope Investments (TPI) Limited (Joint Broker)

Andy Thacker 

T: +44 (0)20 3621 4120

Peterhouse Corporate Finance Limited (Joint Broker)

Lucy Williams/Duncan Vasey/Heena Karani

T: +44 (0)20 7469 0930

Sasfin Capital Proprietary Limited (a member of the Sasfin group) (JSE Sponsor)

Sharon Owens

T (direct): +27 11 809 7762

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.