European Metals Holdings Limited Encouraged by the higher than expected tin grades

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European Metals Holdings Limited (LON: EMH) has today announced initial results from its current eight core-hole resource drilling programme at the Cinovec Project as detailed. The current programme of work was announced by the Company 5 November 2018 (Resource Drilling Commenced – Geotechnical Studies Continue). Drilling of five of the eight holes has been completed. Drilling activities have been suspended and will resume after the end of the snow season. Analytical results for four of the drill holes from the Cinovec South deposit are reported.

Key points:
· Resource drill holes CIS-10, CIS-11, CIS-12 and CIS-13 have been completed including analytical reports.

· Resource drill hole CIS-14 has been drilled with analytical results pending.

o Hole CIS-11 returned 129.3m averaging 0.51% Li2O, incl. 2m @ 0.93% Li2O, 2m @0.93% Li2O; 5m @ 0.56% Sn and 0.11% W, 5m @ 0.21% Sn, and 7m @ 0.11% Sn.

o Hole CIS-13 returned 108m averaging 0.45% Li2O and 0.11% Sn, incl. 4m @ 0.99% Li2O; 6m @ 0.29% Sn, 5m @ 0.34% Sn, 3m @ 0.77% Sn and 0.12% W, and 2m @ 1.03% Sn, incl. 1m @ 1.92% Sn.

o Hole CIS-10 returned 89m averaging 0.47% Li2O, incl. 6m @ 1.02% Li2O and 6m @ 0.91% Li2O; 5m @ 0.26% Sn, 5m @ 0.14% Sn, and 7m @ 0.077% W.

o Hole CIS-12 returned 93m averaging 0.48% Li2O, incl. 2m @ 1.32% Li2O, 2.4m @ 1.17% Li2O and 3m @ 1.08% Li2O; 8m @ 0.83% Li2O and 0.18% Sn, 4m @ 0.13% Sn, and 5m @ 0.16% W.

European Metals Holdings Managing Director Keith Coughlan commented,

“We are very pleased to present these results. The current drill programme has been planned to define blocks of resource for the first 2 years of mining within the Cinovec-South area, with a goal to convert the resource from indicated to measured category to allow the delineation of initial proven reserves for the deposit. The results confirm our confidence in the robustness of the ore body and we are particularly encouraged by the higher than expected tin grades in hole CIS-13.

These holes form part of the feasibility study that is now underway. The study includes the production of lithium hydroxide from bench scale work that is in process and due for completion next month. At that point the Company expects to be able to release the updated PFS results.”

Mineralized Intercepts and Lithology

Holes CIS-10, 11, 12 and 13 were all collared in rhyolite. Rhyolite / granite contact was achieved at a depth of 211.7m in CIS-10, 182.7m in CIS-11, 190.9m in CIS-12 and 192.6m in CIS-13. Below the contact variably altered Li-granite was intersected, whilst the dominant alteration style is medium to intensive greisenisation with several greisen zones observed.

Mineralization starts immediately below the rhyolite/granite contact with several minor Li and Sn intervals. The major mineralised intercepts are 89m @ 0.47% Li2O (CIS-10), 129.3m @ 0.51% Li2O (CIS-11), 93m @ 0.48% Li2O (CIS-12) and 108m @ 0.45% Li2O (CIS-13). The intervals were calculated at a 0.2% Li2O cut-off, with a maximum internal waste of 4m.

The upper portion of the altered granite is also characterized by elevated Sn values. If no Sn cut-off is considered, the Sn interval is 72.3m @ 0.082% Sn in CIS-10, 95m @ 0.090% Sn in CIS-11, 89.7m @ 0.069% Sn in CIS-12 and 84m @ 0.136% Sn. Below these intervals the Sn grades decrease. Nevertheless, another 7m thick interval with higher W and elevated Sn grades was intersected in a deeper part of hole CIS-10 (see more details in 2 and 3).

Total drilled depth of hole CIS-10 was 340m, hole CIS-11 was ended at 329.3m, hole CIS-12 at 325m and hole CIS-13 at 315m. All holes have been terminated in Li ore and not in the underlaying low-mica granite which is considered to be the footwall of the Li-granite.

The drill hole results are very similar to predictions from the current geological model demonstrating the quality and robustness of the company’s geological and resource model. Lithological intervals, incl. rhyolite / granite contact and zones of alteration, were intersected where predicted with a high level of accuracy. Also, the Li, Sn and W grades measured correspond to the block model.

Table 1: Completed and planned drill hole data

Hole ID	Easting	Northing	Elevation (m)	Azimuth (°)	Dip (°)	Total Depth (m)
CIS-10	-778695	-966629	856.16	246.6	-78.38	340
CIS-11	-778787	-966611	852.09	79.5	-80.59	329.3
CIS-12	-778732	-966494	862.68	327.6	-89.48	325
CIS-13	-778732	-966494	862.68	282.6	-76.85	331
CIS-14	-778751	-966450	862.92	309.8	-88.83	315
CIS-15	-778800	-966400	860.0	0.0 *	-90.0 *	310 *
CIS-16	-778840	-966510	858.8	0.0 *	-90.0 *	320 *
CIS-17	-778854	-966549	855.0	270.0 *	-80.0 *	305 *
*planned

These assays have been tested externally by independent ALS Global.

Table 2: Mineralized intercepts in hole CIS-10.

CIS-10
From	To	Interval (m)	Determining element	Li₂O (%)	Sn (%)	W (%)	Note
211.7	220	8.3	Li₂O	0.24	0.05	0.004
217	218	1	Sn	0.18	0.18	0.002
225	236	11	Li₂O	0.32	0.18	0.008
227	230	3	Sn	0.50	0.39	0.022	incl. 1m @ 0.59% Sn, 0.70% Li₂O, 0.06% W (227-228m)
234	235	1	Sn	0.61	0.66	0.006
241	340	89	Li₂O	0.47	0.02	0.016	incl. 6.0m @ 1.02% Li₂O (286-292m), 6.0m @ 0.91% Li₂O (308-314m)
243	248	5	Sn	0.49	0.26	0.024	incl. 1m @ 0.65% Sn (246-248m)
275	280	5	Sn	0.39	0.14	0.044
331	338	7	W	0.43	0.02	0.077	incl. 1m @ 0.24% W (331-332m)
Cut-off: 0.2%Li₂O, 0.1%Sn, 0.05%W

Table 3: Mineralized intercepts in hole CIS-11.

CIS-11
From	To	Interval (m)	Determining element	Li₂O (%)	Sn (%)	W (%)	Note
182.5	190	7.5	Li₂O	0.24	0.02	0.002
200	329.3	129.3	Li₂O	0.51	0.07	0.018	incl. 2m @ 0.93% Li₂O (259-261m), 2m @ 0.93% Li₂O (281-283m)
201	208	7	Sn	0.32	0.11	0.01
213	218	5	Sn	0.47	0.21	0.005
224	225	1	Sn	0.51	0.15	0.02
228	230	2	Sn	0.51	0.15	0.02
234	239	5	W	0.64	0.06	0.06
243	244	1	Sn	1.01	0.32	0.01
257	258	1	W	0.59	0.02	0.07
268	273	5	Sn	0.60	0.56	0.11
276	277	1	Sn	0.48	0.17	0.04
278	279	1	W	0.51	0.01	0.10
282	283	1	W	1.15	0.04	0.08
285	288	3	Sn	0.48	0.15	0.03
293	295	2	Sn	0.49	0.15	0.01
325	326	1	W	0.64	0.01	0.05
Cut-off: 0.2%Li₂O, 0.1%Sn, 0.05%W

Table 4: Mineralized intercepts in hole CIS-12.

CIS-12
From	To	Interval (m)	Determining element	Li₂O (%)	Sn (%)	W (%)	Note
222.3	225	2.7	Li₂O	0.71	0.07	0.006
232	325	93	Li₂O	0.48	0.06	0.020	incl. [email protected]% Li₂O, 0.43%Sn (236.7-237.6m); [email protected]₂O (251-253m); [email protected]%Li₂O (284.6-287m); [email protected]%Li₂O (285-286m); [email protected]%Li₂O (291-294m); [email protected]%Li₂O (293-294m)
246	254	8	W	0.83	0.18	0.066
265	266	1	Sn	0.44	0.93	0.005
273	277	4	Sn	0.41	0.13	0.006
307	312	5	W	0.65	0.10	0.161	incl. [email protected]%Li₂O, 0.36%W (311-312m)
Cut-off: 0.2%Li₂O, 0.1%Sn, 0.05%W

Table 5: Mineralized intercepts in hole CIS-13.

CIS-13
From	To	Interval (m)	Determining element	Li₂O (%)	Sn (%)	W (%)	Note
223	331	108	Li₂O	0.45	0.11	0.012	incl. [email protected]%Li₂O (273-277m)
225	226	1	Sn	0.84	0.16	0.002
236	239	3	Sn	0.36	0.18	0.003
249	255	6	Sn	0.69	0.29	0.040	incl. [email protected]%W (251-252m)
259	260	1	Sn	0.28	0.11	0.005
269	271	2	Sn	0.80	1.03	0.013	incl. [email protected]%Sn (270-271m)
276	281	5	Sn	0.70	0.34	0.017
286	289	3	Sn	0.43	0.77	0.121
295	296	1	Sn	0.60	0.17	0.009
302	303	1	Sn	0.36	0.12	0.022
307	309	2	Sn	0.37	0.16	0.014
Cut-off: 0.2%Li₂O, 0.1%Sn, 0.05%W

BACKGROUND INFORMATION ON CINOVEC

PROJECT OVERVIEW

Cinovec Lithium/Tin Project

European Metals, through its wholly owned subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 372.4Mt @ 0.45% Li2O and 0.04% Sn and an Inferred Mineral Resource of 323.5Mt @ 0.39% Li2O and 0.04% Sn containing a combined 7.18 million tonnes Lithium Carbonate Equivalent and 263kt of tin. An initial Probable Ore Reserve of 34.5Mt @ 0.65% Li2O and 0.09% Sn has been declared to cover the first 20 years mining at an output of 22,800 tpa of lithium carbonate.

This makes Cinovec the largest 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.

EMH has completed a Preliminary Feasibility Study, conducted by specialist independent consultants, which indicated a return post tax NPV of USD540m and an IRR of 21%. It confirmed the deposit is amenable to bulk underground mining. Metallurgical test work has produced both battery grade lithium carbonate and 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.