Quarterly Report

29 October 2021

QUARTERLY ACTIVITIES REPORT - SEPTEMBER 2021

European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ: EMHXY) ("European Metals" or the "Company") is pleased to provide an update on its activities during the three-month period ending 30 September 2021 highlighting the continued progress in the development of the globally significant Cinovec Lithium/Tin Project ("the Project" or "Cinovec") in Czech Republic.

The quarter was marked by a significant resource upgrade following an extensive drilling programme and considerably higher prices for the Project's two key metals, lithium and tin.

RESOURCE UPGRADE AT CINOVEC LITHIUM PROJECT

The Company completed a drilling campaign during the quarter at Cinovec South, comprising 22 diamond drill core holes for 6,622 metres. The drilling programme has been systematically undertaken over the year with the primary aim to convert a larger part of the resource to higher JORC classification.

Independent expert Lynn Widenbar of Widenbar and Associates updated the Mineral Resource Estimate of the Cinovec Project, which has been prepared and reported in accordance with the 2012 Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code (2012)).

The additional information resulted in an upgrade of some 28.5 million tonnes (MT) of Inferred Resources to Indicated Resources and the increased drilling density in the southern area has allowed the reclassification of 53.3MT of Indicated material to the Measured category. The total Measured, Indicated and Inferred Resources have increased by 12.3MT to 708.2MT.

The contained lithium in the resource increased from 7.2 Mt to 7.39 Mt LCE.

The Cinovec Project remains a potential low operating cost, hard rock lithium hydroxide or lithium carbonate producer, due to a number of key advantages:

• By-productcredits from the recovery of tin, tungsten, potash and sodium sulphate;
• Paramagnetic properties of zinnwaldite allow the use of low-cost wet magnetic processing to produce a lithium concentrate for further processing at relatively high recoveries;
• Relatively low temperature roasting at atmospheric pressure utilizing conventional technologies, reagent recycling and the use of waste gypsum; and
• Low-costaccess to extensive existing infrastructure and grid power.

CDI'S ON ISSUE 175.4M

29 October 2021

MINERAL RESOURCE UPGRADE

A summary of the updated Lithium Resource Estimate is presented in Table 1 below.

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29 October 2021

APPOINTMENT OF NEW OPERATIONS MANAGER

During the quarter, Geomet s.r.o., the management company of the Cinovec Lithium Project, appointed Mr. Walter Mädel in the role of Operations Manager.

Walter Mädel is an experienced minerals operations and ore processing specialist and has successfully

delivered lithium ore processing plants for Altura's Pilgangoora mine and Firefinch's Goulamina hard

rock lithium DFS over the last five years.

At Firefinch, Mr Mädel recently led the development of the lithium ore processing facility in the DFS for

the Goulamina project, on the back of which Jiangxi Ganfeng Lithium Company Ltd, the world's largest

lithium producer (by capacity), committed to invest US$194m in June 2021, substantially funding Goulamina through to production.

At Altura's Pilgangoora project, Mr. Mädel had a leadership role as processing manager in taking the

processing facility of the project from early-stage feasibility, through DFS, detailed design, project implementation, commissioning and operational readiness into production.

ENGAGEMENT OF LCA SPECIALIST

In line with Environmental, Social and Governance (ESG) adoption, the Company engaged UK-based and globally recognised sustainability and life cycle assessment consultancy, Minviro, to provide an ISO compliant life cycle assessment (LCA) of the Cinovec project. This assessment will cover both battery- grade lithium carbonate and battery grade lithium hydroxide and will be benchmarked against global lithium peers. Minviro has been actively engaged to identify decarbonisation optimisation in the developing feasibility study for Cinovec.

The Company strongly believes that the Cinovec LCAs will demonstrate strong carbon footprint credentials with lower energy use, less intensive reagent application and net carbon credits from mine and process by-products. Minviro has provided the assessment to Geomet and it is currently undergoing external independent QA/QC before publication. The Company expects to be able to release these findings during the month of November.

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29 October 2021

CORPORATE AND ADMINISTRATION

US ADS Programme

The Company announced that its American Depository Share (ADS) program became available for trading in the US on Tuesday 27 July 2021. EMH's ADS will trade in the US over-the-counter (OTC) market under the symbol EMHXY. One EMH ADS represents twenty existing EMH chess depositary instruments. The ADS program does not involve the issuance of new shares or the raising of new capital by the Company. ADSs allow US investors to buy shares in foreign companies through US registered securities without the need for cross-border or cross-currency transactions. They are priced in US dollars and can be traded like shares of US-based companies. EMH will remain a member company of the Nasdaq International Designation and is not listed or traded on the NASDAQ Stock Market, LLC. Deutsche Bank Trust Company Americas is the depositary bank for the program. There have been a number of issuances of ADS by the depositary bank and the ADS's have traded on the OTC Markets.

QUARTERLY CASHFLOW REPORT

In accordance with the ASX Listing Rules, the Company will also today lodge its cashflow report for the quarter ended 30 September 2021. Included in those cashflows are cash receipts from Geomet of $276k and cash outflow for Cinovec associated costs of $303k in respect of the Company's investment in the

Cinovec Lithium Exploration Project in the Czech Republic ("the Project").

PAYMENTS TO RELATED PARTIES

As outlined in the attached Appendix 5B (section 6.1), during the quarter approximately $143k in payments were made to related parties and their associates for director salaries, consultancy fees, superannuation and other related costs. A portion of these expenses are to be reimbursed directly from Geomet.

CORONAVIRUS

The potential effects of the Cov-19 pandemic continue to be monitored for impact on the Company's

operations. While the second wave has had more of an impact than the initial wave (March - May 2020) the Company has continued to use remote meeting tools (Zoom and MS Teams) to maintain project momentum, albeit not as efficiently as physical meetings would have allowed. The Executive Management team closely monitor the ever-evolvingCov-19 circumstances and have determined

that, so far, the pandemic has not had a material impact on the Company's operations although

timelines may be slightly longer than envisaged. Further updates will be provided in the event circumstances change.

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29 October 2021

PERFORMANCE SHARES

As at 30 September 2021 the issued performance shares including the terms and conditions were as follows:

Number	Description		Summary Terms & Conversion Hurdles
3,000,000	A Class Performance Shares	Convert into Shares and an equivalent number of CDIs
			upon the completion of a definitive feasibility study
			(DFS). For clarity, the DFS must be:
			(i)	of a standard suitable to be submitted to a
				financial institution as the basis for lending of funds
				for the development and operation of mining
				activities contemplated in the study;
			(ii)	capable of supporting a decision to mine on the
				Permits; and
			(iii) completed to an accuracy of +/- 15% with respect
				to operating and capital costs and display a pre-
				tax net present	value of	not less than
				US$250,000,000.
			The A Class Performance Shares shall convert into the
			number of Shares and equivalent number of CDIs
			equal to 3,000,000 multiplied by 0.5 and divided by the
			greater of: (A)$0.50 per CDI; and (B) the volume
			weighted average price of CDIs (expressed as a
			decimal of $1.00) as calculated over the 5 ASX trading
			days prior to date of receipt of the completed DFS.
GEOMET TENEMENT SCHEDULE
Permit	Code	Deposit	Interest at		Acquired /	Interest at end of
				beginning of		Disposed	Quarter
				Quarter
	Cinovec			100%		N/A	100%
Exploration		N/A
Cinovec II	100%		N/A	100%
Area
Cinovec III			100%		N/A	100%
	Cinovec IV			100%		N/A	100%
Preliminary	Cinovec II	Cinovec South	100%		N/A	100%
Mining Permit
Cinovec III	Cinovec East	100%		N/A	100%
	Cinovec IV	Cinovec NorthWest	100%		N/A	100%

This announcement has been approved for release by the Board.

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