25th May 2017: Infill Drilling Commenced

European Metals Holdings Limited

ARBN 154 618 989

Suite 12, Level 1

11 Ventnor Avenue West Perth WA 6005 PO Box 52

West Perth WA 6872 Phone + 61 8 6141 3500

Fax + 61 6141 3599

Website: www.europeanmet.com

Directors

David Reeves

Non-Executive Chairman

Keith Coughlan

Managing Director

Dr Pavel Reichl

Non-Executive Director

Kiran Morzaria

Non-Executive Director

Company Secretary

Ms Julia Beckett

Corporate Information

ASX: EMH AIM: EMH

Frankfurt: E861.F CDIs on Issue: 129M

25 May 2017 INFILL DRILLING COMMENCED

European Metals Holdings Limited ("European Metals" or "the Company") (ASX & AIM: EMH) is pleased to announce the commencement of a focused infill drilling program at Cinovec South.

HIGHLIGHTS

• Six core drillholes for a total of 2,800m planned.
• Infill drilling in two areas where data density low and 'gaps' in the resource model occur.
• Expected to add high grade resource at Cinovec South in critical areas where mining will start.
• Results will be utilized during the DFS program to optimize the current mine plan.

European Metals Managing Director Keith Coughlan said, "I am pleased to announce that we have started to drill the first of six drillholes planned at Cinovec South this year. The program will close two gaps in our newest block model, where 'n' blocks were established in the new block model due to paucity of data. Our geologic model suggests that this drilling program will convert the no-class blocks and a good part of the Inferred blocks into Indicated category, which will make them available for mine plan optimization. Based on geologic model, the no-class blocks are mostly in greisen and greisenized granite, which means we can expect higher Li and Sn grades. By adding high quality resource in areas of initial mining the economic model for Cinovec will be further optimised."

GEOLOGY

The most recent block model prepared by Widenbar and Associates for the PFS study contains three classes of resource. In addition to Indicated and Inferred Resource, a so called 'no-class' material is defined in two areas at Cinovec South. This forms 'holes', or 'gaps', within the Inferred resource, and is caused by paucity of analytical data at the increased resolution of the most recent resource model (see Figure 1). The 'no- class' material is located in parts of the deposits where greisen and greisenized granite are well developed, and flanked by high grade Li and Sn resource blocks (see Figure 2). The 2017 drill program, which just started, is designed with the view of converting the 'no-class' material to Indicated category, as well as to convert a great part of the Inferred Resource to the Indicated category, particularly in the eastern part of Cinovec South.

The current PFS mine plan utilises only the Indicated Resource. The conversion of the 'no-class' and Inferred Resource in the immediate vicinity of the current mine plan will allow optimisation of the mine plan, in particular with respect to early years of mining, thus positively impacting the overall cost structure.

Figure 1: Plan view with projected resource blocks, EMH past and planned drill hole locations

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   Figure 2: Section view of planned drillhole, filling a gap in resource blocks. BACKGROUND INFORMATION ON CINOVEC PROJECT OVERVIEW Cinovec Lithium/Tin Project

   European Metals owns 100% of the Cinovec lithium-tin deposit in the Czech Republic. Cinovec is an historic mine incorporating a significant undeveloped lithium-tin resource with by-product potential including tungsten, rubidium, scandium, niobium and tantalum and potash. Cinovec hosts a globally significanthard rock lithium deposit with a total Indicated Mineral Resource of 348Mt @ 0.45% Li2O and 0.04% Sn and an Inferred Mineral Resource of 309Mt @ 0.39% Li2Oand 0.04% Sn containing a combined 7.0 million tonnes Lithium Carbonate Equivalent and 263kt of tin.

   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.

   The recently completed Preliminary Feasibility Study, conducted by specialist independent consultants, returned a post tax NPV of USD540m and an IRR of 21%. It confirmed the deposit is be 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.

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   The economic viability of Cinovec has been enhanced by the recent strong increase in demand for lithium globally, and within Europe specifically.

   CONTACT

   For further information on this update or the Company generally, please visit our website at www. http://europeanmet.com or contact:

   Mr. Keith Coughlan Managing Director COMPETENT PERSON

   Information in this release that relates to exploration results is based on information compiled by European Metals Director Dr Pavel Reichl. Dr Reichl is a Certified Professional Geologist (certified by the American Institute of Professional Geologists), a member of the American Institute of Professional Geologists, a Fellow of the Society of Economic Geologists and is a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009. Dr Reichl consents to the inclusion in the release of the matters based on his information in the form and context in which it appears. Dr Reichl holds CDIs in European Metals.

   The information in this release that relates to Mineral Resources and Exploration Targets has been compiled by Mr Lynn Widenbar. Mr Widenbar, who is a Member of the Australasian Institute of Mining and Metallurgy, is a full time employee of Widenbar and Associates and produced the estimate based on data and geological information supplied by European Metals. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Widenbar consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.

   CAUTION REGARDING FORWARD LOOKING STATEMENTS

   Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

   Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

   Forward looking statements are based on the company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company's business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the

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