Cinovec LCP Optimisation Offers Potential Savings

European Metals Holdings Limited (ASX and AIM: EMH, OTCQX: EMHXY and EMHLF) ("European Metals" or the "Company") is pleased to announce preliminary results for the design optimisation of the lithium chemical plant ("LCP") for the Cinovec Project.

• Potential to reduce consumption of major reagents by US$51m per annum (based on Definitive Feasibility Study ("DFS") reagent pricing[1]).
• Potential to reduce power consumed in the LCP post-roast and leach filtration by more than 25% or US$3.4m per annum (based on DFS power pricing[2]).
• Taken together, these reductions represent the potential to increase the pre-tax NPV8 of US$1.455bn established in the December 2025 DFS, however the exact quantum of such increase based upon the revised assumptions will only be known once the Project DFS is updated.

Keith Coughlan, Executive Chairman, commented: "The LCP optimisation programme delivers a compelling improvement in the economics of the Cinovec Project. The potential reductions in reagent consumption and power represent a material improvement in operating costs relative to the DFS, and if adopted, the scaled-down plant infrastructure required to process lower reagent volumes is expected to also reduce capital costs relative to the initial capex of US$1.72bn established in the DFS."

"Separately, the project team is conducting advanced testwork on the use of a tunnel kiln - which may be fuelled with electricity from renewable sources and/or gas - in place of the current gas-fired rotary kiln."

"Initial indications are that the results of this testwork may lead to further downward revision of both capex and opex, and we look forward to updating the market on this programme in due course."

Optimisation Review of LCP Process Flowsheet

As part of Geomet's post-DFS project review, the LCP circuit team reviewed the potential for reconfiguration of the LCP process flowsheet without introducing any new untested unit processes. The DFS flowsheet is extremely effective in separating lithium from the other Group I cations in the pregnant leach solution, in the lithium phosphate precipitation stage. However, this process is a strong consumer of tri-sodium phosphate ("TSP") and, indirectly, caustic soda ("NaOH") used to regenerate the TSP, as well as sulphuric acid used to dissolve the lithium phosphate for onwards processing.

The proposed reconfiguration of the LCP flowsheet results in the majority of solubilised lithium reporting directly to crude lithium carbonate precipitation, with the balance of lithium and the majority of other Group I cations being processed by the lithium phosphate precipitation reactor in a side-stream / recycle configuration.

The reconfigured flowsheet has been modelled in SysCAD, utilising testwork data and partition coefficients from locked cycle testwork programmes from 2022 and 2024. SysCAD is a process simulation platform used across the minerals industry to model and validate hydrometallurgical flowsheets prior to physical testwork and engineering design.

The principal process improvements in the flowsheet optimisation from SysCAD modelling are:

• 80% reduction in annual run-of-plant caustic soda usage, from 18.8 tph to 3.8 tph.
• 65% reduction in annual run-of-plant sulphuric acid usage, from 14.3 tph to 5.0 tph.
• 54% reduction in annual run-of-plant anhydrous sodium sulphate output, from 25.2 tph to 11.7 tph.

In addition to the above process improvements, the optimised flowsheet modelling forecasts a slight improvement in LCP lithium recovery, from 90.8% in the DFS to 91.1%. (Refer to the Company's ASX/ AIM release dated 23 December 2025) (Successful Completion - Cinovec Definitive Feasibility Study) for DFS LCP lithium recovery.

The potential reduction in power consumption in the LCP brought about by the proposed changes has been assessed by a factored estimation approach, utilising known power consumptions for unit processes in the DFS. The potential power consumption assessed should be considered to be indicative only, until testwork is completed and the Project DFS has been updated.

Next Steps

The LCP flowsheet optimisation proposed has been reviewed in a fatal flaw analysis by Dr. Stephen La Brooy of Ausenco Services Pty Ltd. Dr. La Brooy's review has concluded that the proposal may be expected to be viable subject to confirmation through testwork and has made testwork recommendations to confirm the SysCAD modelling, the extent of reagent reduction possible, the potential increase in expected lithium recovery and maintenance of battery-grade status of the end product.

The principal recommendation is to run a new set of locked cycle tests of the full LCP flowsheet, followed by updating the SysCAD model and then re-running locked cycle tests for a final confirmation of expected chemistry throughout the flowsheet.

At the point at which process stream compositions and recoveries stabilise in the locked cycle testwork programme to the satisfaction of independent reporting chemical engineers, the DFS is expected to be updated.

Dr Stephen La Brooy has more than 46 years of experience in metallurgical test work, hydrometallurgical process development and independent technical review across the global minerals industry. He holds a PhD in Chemical Metallurgy and is recognised as a leading authority in the development and assessment of complex hydrometallurgical flowsheets, innovative leaching technologies and purification processes.

Environmental Impact Assessment ("EIA") Update

The EIA public hearing took place as planned on 17 June 2026. No new substantial questions or comments about the Project were raised by local stakeholders that have not been encountered in dialogue with the Project's management team before and all questions were answered by Project executives at the hearing. The EIA process is expected to conclude by the end of 2026. The Company will announce further updates as and when necessary.

Once completed the EIA process will enable Geomet to apply for both the Mining and Construction permits which once issued will enable the construction of the Cinovec underground mine as well as the Dukla transfer portal and the Lithium Chemical Plant.

This announcement has been approved for release by the Board.

Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium 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 54.4Mt at 0.58% Li2O , Indicated Mineral Resource of 378.23Mt at 0.41% Li2O and an Inferred Mineral Resource of 309.49Mt at 0.39% Li2O containing a combined 7.45 million tonnes Lithium Carbonate Equivalent (refer to the Company's ASX/ AIM release dated 23 December 2025) (Cinovec DFS Confirms Long-life Battery Grade Lithium Carbonate Producer Strategically Positioned to supply European EV and Energy-storage Sectors)[3].

A Proven and Probable Ore Reserve of 54.4Mt at 0.58% Li2O has been declared to cover the first 26 years mining at an output of 37,500tpa of lithium carbonate (refer to the Company's ASX/ AIM release dated 23 December 2025) (Cinovec DFS Confirms Long-life Battery Grade Lithium Carbonate Producer Strategically Positioned to supply European EV and Energy-storage Sectors)[4].

The Definitive Feasibility Study ("DFS") confirmed the economic viability of the Cinovec Project with steady-state production of 37,500 tpa of battery-grade lithium carbonate ("Li₂CO₃"), representing ~5.2% of EU demand in 2030 and sufficient for >900,000 50kWh EV batteries annually. Cinovec will have a 28+ year operating life, underpinned by a 748Mt Resource @ 0.19% Li₂O and a 55.4Mt Ore Reserve, with expansion optionality (refer to the Company's ASX/ AIM release dated 23 December 2025) (Cinovec DFS Confirms Long-life Battery Grade Lithium Carbonate Producer Strategically Positioned to supply European EV and Energy-storage Sectors)[5].

Cinovec has received recent impetus from the EU and the Czech Government in the form of grants of USD36 million from the EU Just Transition fund (refer to the Company's ASX/ AIM release dated 28 April 2025) (USD 36 million Just Transition Fund Grant Approved for Cinovec Project) and up to EUR360 million by the Czech Government (refer to the Company's ASX/ AIM release dated 7 March 2025) (Approval of up to €360 Million Czech Government Grant).

The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.

BACKGROUND INFORMATION ON CEZ

Information in this release that relates to exploration results is based on, and fairly reflects, information and supporting documentation compiled by Dr Vojtech Sesulka. Dr Sesulka is a Certified Professional Geologist (certified by the European Federation of Geologists), a member of the Czech Association of Economic Geologists, and a Competent Person as defined in the JORC Code 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Sesulka has provided his prior written consent to the inclusion in this report of the matters based on his information in the form and context in which it appears. Dr Sesulka is an independent consultant with more than 10 years working for the EMH or Geomet companies. Dr Sesulka does not own any shares in the Company and is not a participant in any short- or long-term incentive plans of the Company.

Information in this release that relates to metallurgical test work and the process design criteria and flow sheets in relation to the LCP is based on, and fairly reflects, information and supporting documentation compiled by Dr. Stephen La Brooy. Dr. La Brooy, who holds a PhD in Chemical Metallurgy, has provided his prior written consent to the inclusion in this report of the matters based on his information in the form and context that the information appears. Dr La Brooy does not own any shares in the Company and is not a participant in any short- or long-term incentive plans of the Company.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

LITHIUM CLASSIFICATION AND CONVERSION FACTORS

Lithium resources and reserves are usually presented in tonnes of LCE or Li.

The standard conversion factors are set out in the table below:

Table: Conversion Factors for Lithium Compounds and Minerals

[1] The Company confirms that the material assumptions underpinning the DFS Reagent pricing continue to apply and have not materially changed

[2] The Company confirms that the material assumptions underpinning the DFS Power pricing continue to apply and have not materially changed

[3] The Company confirms that the material assumptions underpinning the Resource estimates continue to apply and have not materially changed.

[4] The Company confirms that the material assumptions underpinning the Reserve estimates continue to apply and have not materially changed.

[5] The Company confirms that the material assumptions underpinning the Reserve and Resource estimates continue to apply and have not materially changed.