28th Apr 2017: * Quarterly Activities Report - (PDF - 295 Kb)

For immediate release 28April 2017 EUROPEAN METALS HOLDINGS LIMITED QUARTERLY ACTIVITIES REPORT - MARCH 2017 HIGHLIGHTS

Drilling program completed & appointment of Czech Country Manager

Initial steps towards mining licence achieved

Final drilling results

Substantial increase in Indicated Resource at Cinovec

Preliminary Feasibility Study confirms Cinovec as potentially low cost lithium carbonate producer

European Metals Holdings Limited ("European Metals" or "the Company") (ASX & AIM: EMH) is pleased to announce continued progress in the development of its 100% owned globally significant Cinovec Lithium/Tin Project in Czech Republic during the three month period ending March 2017.

DRILL PROGRAM COMPLETED & APPOINTMENT OF CZECH COUNTRY MANAGER

The planned core drillhole programme was completed in mid-January 2017 on time and on budget and without time loss incidents. In total 17 drillholes were drilled to a summary depth of 6,081 meters.

The Company also announced the appointment of Richard Pavlik, a highly experienced mining executive to the role of Country Manager. Mr Pavlik holds a Masters Degree in Mining Engineer from the Technical University of Ostrava in Czech Republic. He is the former Chief Project Manager and Advisor to the Chief Executive Officer at OKD. OKD has been a major coal producer in the Czech Republic. He has almost 30 years of relevant industry experience in the Czech Republic.

Mr Pavlik also has experience as a Project Analyst at Normandy Capital in Sydney as part of a postgraduate programme from Swinburne University. Mr Pavlik has held previous senior positions within OKD and New World Resources as Chief Engineer, and as Head of Surveying and Geology. He has also served as the Head of the Supervisory Board of NWR Karbonia, a Polish subsidiary of New World Resources (UK) Limited. Mr Pavlik's primary responsibilities will be to manage the in-country aspects of the Cinovec development programme, coordinate technical work and liaise with Government authorities on permitting and licensing of the project.

INITIAL STEPS TOWARDS MINING LICENCE ACHIEVED

The Company was informed in late January that the Cinovec South resource estimate was approved by a Committee of Experts and was subsequently added to the Czech State Register of Mineral deposits, which is the first step towards achieving a mining licence.

FINAL DRILLING RESULTS

The analytical results from the final seven drillholes were received by early February and they were excellent in terms of Lithium grade and the length of the mineralised intervals. A summary of the results are as follows:

Hole CIW-22 contains the best lithium intercept to date from the Company's drill programme of 264.5m averaging 0.54% Li2O. This hole, collared in the central part of Cinovec main, also contains significant tin, tungsten, niobium and tantalum mineralisation. An unexpected bonus was the high-grade zone of tungsten, intersected by drillhole CIW-22 at 238m depth which graded almost 3% of tungsten

Centrally located, hole CIW-25 contains the Company's longest lithium intercept to date with a length of 361.5m averaging 0.43% Li2O, including a high grade lithium interval of 14.7m averaging 0.93% Li2O, and significant intervals of Sn and W

Hole CIW- 23, also located in the central part of Cinovec main, returned an interval of 261.1m averaging 0.50%Li2O

Hole CIW-26, located at the western edge of the deposit, returned an interval of 236.25m averaging 0.49%Li2O

Hole CIW-10, also located at the western edge of the deposit, returned an interval of 233.9m averaging 0.43%Li2O

Hole CIW-27, located in the central part of Cinovec main, retuned a Li intercept of 235m averaging 0.49% Li2O incl. high grade zones of 14m @ 0.97% Li2O and 2m @ 1.79% Li2O

Hole CIW-06, also centrally located, returned a Li intercept of 258.5 m averaging 0.44% Li2O including high grade zones of 3m at 1.11% Li2O, 2.75m at 0.91% Li2O and 2m at 1.03% Li2O

SUBSTANTIAL INCREASE IN INDICATED RESOURCE AT CINOVEC

On completion of the extensive seven-month drilling program, the Company has successfully been able to increase the confidence in the resource base and substantially upgrade a significant part of the resource from the Inferred category to the higher confidence JORC compliant Indicated Mineral Resource category as follows;

Lithium Indicated Resource increased 50% to 3.9 Mt LCE, contained in 347.7 Mt @ 0.45% Li2O and 0.04% Sn (0.1% Li cut-off)

Lithium Total Resource increased 11.8% to 7.0 Mt LCE, contained in 656.5 Mt @0.43 % Li2O and 0.04% Sn (0.1% Li cut-off)

Total contained tin in the Total Mineral Resource increased to 262,600 tonnes

Lithium Exploration Target remains 350 to 450 Mt @ 0.39% to 0.47% for 3.4 Mt to 5.3 Mt of LCE

DEVELOPMENTS POST REPORTING PERIOD Preliminary Feasibility Study confirms Cinovec as potentially low cost lithium carbonate producer

The company successfully completed the Preliminary Feasibility Study and the results highlight that Cinovec can be a low cost lithium carbonate producer. The highlights of the study are as follows ($ figures quoted in USD):

Net overall cost of production	- $3,483 / tonneLi2CO3
Net Present Value (NPV)	- $540 M (post tax, 8%)
Internal Rate of Return (IRR)	- 21% (post tax)

Total Capital Cost	- $393 M
Annual production of Battery Grade Lithium Carbonate	- 20,800 tonnes
Study based on only 9.9% of defined Indicated Mineral Resources

The completion of the PFS follows a comprehensive metallurgical testwork campaign managed by European Metals. The PFS was undertaken by independent consultants who are specialists in the required areas of work. These included:

Resource Estimation - Widenbar and Associates Pty Ltd

Mining - Bara Consulting Ltd

Front‐End Comminution and Beneficiation ("FECAB") - Ausenco Limited

Lithium Carbonate Plant ("LCP") - Hatch Pty Ltd

The study is based upon a mine life of 21 years processing on average 1.7 Mtpa of ore, producing 20,800 tpa of battery grade lithium carbonate via a sodium sulphate roast.

SUMMARY

It has been another productive quarter for European Metals with a number of key developments which are very positive for the company. These developments indicate significant enhancements to the economics of the Cinovec Project which have now been reflected in the Preliminary Feasibility Study. The company will now move directly into a definitive feasibility study to accelerate the project towards development.

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.

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 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.

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