16th Mar 2017: Half Yearly Report - (PDF - 760 Kb)

EUROPEAN METALS HOLDINGS LIMITED

ARBN 154 618 989

INTERIM FINANCIAL REPORT 31 DECEMBER 2016

Note: The information contained in this condensed report is to be read in conjunction with European Metals Holding Limited's 2016 annual report and any announcements made by the company during the half-year period

ended 31 December 2016

CORPORATE DIRECTORY

Directors Mr Keith Coughlan Mr David Reeves Dr Pavel Reichl Mr Kiran Morzaria	Managing Director, CEO Non-Executive Chairman Non-Executive Director Non-Executive Director
Company Secretary Ms Julia Beckett
Registered Office in Australia 283 Rokeby Road Subiaco WA 6008 Telephone [phone] Facsimile 08 9481 1947 Email www.europeanmet.com		Registered Office in Czech Republic Jaselska 193/10, veveri 602 000 Brno CZECH REPUBLIC Telephone [phone]
Registered Address and Place of Incorporation Rawlinson & Hunter Woodbourne Hall PO Box 3162 Road Town Tortola VG1 110 BRITISH VIRGIN ISLANDS		Nominated Advisor & Broker Beaumont Cornish 2nd Floor, Bowman House 29 Wilson Street LONDON EC2M 2SJ UNITED KINGDOM
Share register Computershare Investor Services Limited Level 11 172 St Georges Terrace Perth WA 6000 Telephone [phone] Facsimile 08 9323 2033		UK depository Computershare Investor Services plc The Pavilions Bridgewater Road BRISTOL BS99 6ZZ UNITED KINGDOM
Reporting Accountants (UK) Chapman Davis LLP 2 Chapel Court LONDON SE1 1HH UNITED KINGDOM		Auditor Stantons International Audit and Consulting Pty Ltd Level 2, 1 Walker Avenue West Perth WA 6005 Telephone [phone] Facsimile 08 9321 1204
Securities Exchange Listing -Australia Australian Securities Exchange Limited Level 40 Central Park 152-158 St Georges Terrace Perth, WA 6000 ASX Code: EMH		Securities Exchange Listing - United Kingdom London Stock Exchange plc 10 Paternoster Square London EC4M 7LS UNITED KINGDOM AIM Code: EMH

CONTENTS

Directors' Report	3
Auditor's Independence Declaration	5
Consolidated Statement of Profit or Loss and Other Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Consolidated Statement of Cash Flows	9
Condensed Notes to the Consolidated Financial Statements	10
Directors' Declaration	15
Independent Audit Review Report to the members of European Metals Holdings Limited	16

DIRECTORS' REPORT

Your Directors submit the financial report of the consolidated group for the half year ended 31 December 2016.

Directors

The names of the directors who held office during or since the end of the half-year.

Mr Keith Coughlan	Managing Director, CEO	Appointed 6 September 2013
Mr David Reeves	Non-Executive Chairman	Appointed 6 March 2014
Dr Pavel Reichl	Non-Executive Director	Appointed 6 March 2014
Mr Kiran Morzaria	Non-Executive Director	Appointed 10 December 2015

Results of Operations

The consolidated loss for the half year ended 31 December 2016 amounted to $3,164,185 (2015: $1,310,889 loss).

Review of Operations

During the period the Company focused on advancing the Cinovec project in Czech Republic. Highlights in the period include:

Project Development

Project development for the period was centered around a significant drilling programme embarked on by the Company. There were numerous updates to this programme released to the market during the period. Overall, results from the programme either confirmed or exceeding expectations with respect of both lithium content and width of mineralisation. This drilling programme provided important data to the Company's Preliminary Feasibility Study which was ongoing throughout the period. The Company has released updates with regards to this study and is anticipating its completion at the end of March 2017. The Company appointed Ausenco Limited, and Hatch Ltd as the Lead Engineers to the Pre-Feasibility Study. During the half year, the Company announced a significant reduction of pre-production capital costs based on a review of scoping study and outstanding recoveries from test work completed.

The Company announced a new exploration license, Cinovec III was granted. The license not only covers a small area above the Cinovec deposit itself along the Czech-German border, but also gives the Company exclusive rights to explore for potential deep seated lithium ore East of the Cinovec deposit.

On 22 November 2016, the Company announced a significant increase in the indicated resource at Cinovec. This upgrade was a result of the drilling programme to that point and increased the indicated resource by approximately 420%.

On 13 December 2016, the Company announced the successful manufacture of >99.5% pure lithium carbonate using an industry proven, sodium sulphate roast-based flow-sheet from mica-concentrate from the Cinovec Project.