European Metals Holdings Limited announced that the Cinovec Project has been classified as a Strategic Project for the Usti Region of the Czech Republic. The list of Strategic Projects has been approved by the European Commission, the Czech Central Government and the Czech Regional Goverment in Usti. Being classified as such means that the Cinovec Project has priority for grant funding from theJust Transition Fund ("JTF")co-funding, ahead of many other projects that have been submitted.

The total amount allocated by the Just Transition fund for the Czech Republic is CZK 41 Billion (€1.64 Billion) of which the Usti region has been allocated CZK 15.8 Billion (approx. €632 Million). The first call for grant applications under the JTF opened on 14 November 2022 and closes on 31 December 2023.

Given the total amount which may be applied for by the eleven designated Strategic Projects in the Usti region in the first call is CZK 8.3 Billion (approx €350 Million) and that the funds allocated in this first call from the Just Transition Fund to these Strategic Projects totals CZK7.3 Billion (approx €300 Million), although there can be no certainty, the Company is confident that Cinovec will receive a significant portion of the funds applied for from the JTF for the Project. The maximum funding to be made available upon application to each Strategic Project in the Usti Region is CZK 1.2 billion (approx €49 Million). The Cinovec Project has been allocated the maximum possible JTF grant of CZK 1.2 Billion (approx €49 Million), subject to passing through the application process, funds remaining available and obtaining the necessary permits for the early-stage Cinovec work programmes to which this grant funding is planned to be applied to, in particular the early full development of the twin decline entry/egress system for the mine.

Accordingly, Geomet s.r.o (the Cinovec project company) will apply for JTF Grant funding for the maximum amount of CZK 1.2 Billion (approx €49 Million). Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Geomet has been granted a preliminary mining permit by the Ministry of Environment and the Ministry of Industry.

The company is owned 49% by EMH and 51% by CEZ a.s. through its wholly owned subsidiary, SDAS. Cinovec hosts a globally significant hard rock lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at 0.44% Li2O and 0.05% Sn and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O and 0.05% Sn containing a combined 7.39 million tonnes Lithium Carbonate Equivalent and 335.1kt of tin. An initial Probable Ore Reserve of 34.5Mt at 0.65% Li2O and 0.09% Sn reported 4 July 2017 (Cinovec Maiden Ore Reserve - Further Information) has been declared to cover the first 20 years mining at an output of 22,500tpa of lithium carbonate.

This makes Cinovec the hard rock lithium deposit in Europe, the fifth 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.