Europa Metals, the European focused lead-zinc and silver developer, is pleased to announce results from an independent Preliminary Economic Study (the 'Study') in respect of its wholly owned Toral lead, zinc and silver project ('Toral' or the 'Toral Project'), located in the region of Castilla y Leon, north-west Spain.

The Study has, inter alia, updated the economics from the previous Scoping Study undertaken by Addison Mining Services Limited ('AMS') in late 2018 (the '2018 Scoping Study'), and incorporated the positive findings generated from the workstreams conducted by the Company and its consultants over the last 12-18 months, including the results from ore-sorting undertaken by Bara Consulting ('Bara'), metallurgical testwork by Wardell Armstrong International, as well as reflecting a change in the selected future mining method and a general improvement in metal prices since 2018.

Commenting today, Laurence Read, CEO of Europa Metals, said: 'Today's economic report proposes a significantly expanded potential mining operation at the Toral lead, zinc and silver project with a 700k tonnes per annum production rate over a 12-year mine life, within a highly robust operating regime, with a projected 49% operating margin. With a mining grade of 7.6% zinc equivalent and as a potential high margin operator, Toral has the scope to generate over US$470m EBITDA from US$963m of revenue over the life of mine from upfront capex of US$79m and estimated payback in year 4.

'Having recently secured a new three-year Investigation Permit for Toral and with today's updated economics attributing a US$156m NPV and a 31.3% IRR, the Board shall progress Europa's strategy to secure the most value-accretive pathway to advance the project.

'With work towards a PFS for Toral now underway, we look forward to updating the market in due course on our hydrogeology programme, planned resource and metallurgical drilling and geotechnical work.

'We are also pleased to confirm that the initial EUR163,380 tranche of the CDTI grant has been drawn down and received by the Company and look forward to contributing to our technology partnership with SPI drilling and Salamanca University during the forthcoming drill campaign. '

Commenting today, Myles Campion, Chairman of Europa Metals, said: 'Today's release of the new economic numbers is a culmination of two years' work covering many aspects of the Toral deposit. All necessary programmes needed to move the project towards a PFS have been completed and we now look forward to advancing all these studies to put the Company in the best position to assess all options. '

Contact:

Dan Smith

Tel: +61 417 978 955

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