Quarterly Activities/Appendix 5B Cash Flow Report

QUARTERLY ACTIVITIES REPORT

European Metals Holdings Limited (ASX & AIM: EMH, OTCQX and OTCQB: EMHXY and EMHLF) ("European Metals" or the "Company") is pleased to provide an update on its activities during the three-month period ending 30 June 2026.

The Company continued the development of the Cinovec Lithium Project ("Cinovec" or "Project"), building further on the significant developments of the previous two quarters. The June 2026 quarter was highlighted by important progress in the Environmental Impact Assessment process, and significant project improvements identified in the ongoing optimisation work.

CINOVEC PROJECT ENVIRONMENTAL IMPACT ASSESSMENT

On 7 May 2026, the Company announced progress in environmental permitting of the Cinovec Project, including the scheduling of the anticipated public hearing, the publication of the Environmental Impact Assessment ("EIA") by the Czech Ministry of Environment, and the commencement of the cross-border EIA process for the mining area.

This progress is encouraging and important for the Company, with the publication of the EIA by the Czech Ministry of the Environment being a critical path item with regards to obtaining the final EIA approval and progressing the Project.

The Company further announced (on 24 June 2026) that 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 previously, and all questions were answered by Project executives at the hearing. The EIA process is expected to conclude by the end of 2026. Once completed the EIA process will enable the Project company, Geomet s.r.o. 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 ("LCP").

CINOVEC LCP OPTIMISATION DELIVERS POTENTIAL SIGNIFICANT SAVINGS

On 24 June 2026 the Company announced preliminary results for the design optimisation of the lithium chemical plant for the Cinovec Project. This was a very significant development for the Project with the key highlights being:

• Potential to reduce consumption of major reagents by US$51m per annum (based on Definitive Feasibility Study ("DFS") reagent pricing).
• 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).
• 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.[1]

TUNNEL KILN TESTWORK POINTS TO POTENTIAL CAPEX SAVING

Post quarter end, on 8 July 2026, the Company announced further optimisation preliminary results, in this instance with regards to testwork and design of a tunnel kiln for the Project. The highlights of this announcement were:

• Potential for change from two gas fired rotary kilns to a single gas / electric tunnel kiln for the Cinovec Project.
• Gas-fired tunnel kiln estimated to materially reduce capex by between US$70m and US$110m per annum, and opex by US$10m per annum (compared to the DFS Rotary Kilns). The Company notes the effect that this reduction in capex and opex will have on the Project DFS will not be known until the Project DFS is updated.
• Tunnel kiln provides flexibility to remove the Project's dependence on gas and enables the project to be run solely on green power supplied by project partner CEZ[2].
• Switch to Tunnel Kiln not expected to impact Project timeline.
• The combination of the tunnel kiln and the optimisation of the LCP Flowsheet[3], if adopted, are anticipated to reduce capex by between US$70 to $110m and reduce opex by US$64m ($10m Tunnel Kiln and $54m LCP flowsheet optimisation) per annum. The Company notes the effect that this anticipated reduction in capex and opex will have on the Project DFS will not be known until the Project DFS is updated.

The Company confirms that the potential cost savings above are preliminary in nature, and reiterates that it has not undertaken detailed studies at this stage to provide updated financial forecast information to which ASX Listing Rule 5.17 applies. The financial forecast information released in the Company's announcement dated 23 December 2025 titled "Successful Completion - Cinovec Definitive Feasibility Study" still applies. Should the Company adopt the tunnel kiln option and optimisation of the LCP flowsheet, it will endeavour to update the DFS released December 2025 (refer to the Company's ASX / AIM release dated 23 December 2025) (Successful Completion - Cinovec Definitive Feasibility Study) to include these revisions by end of 2026 (noting that this remains an indicative timeframe).

CORPORATE AND ADMINISTRATION

ISSUED CAPITAL

A total of 1,200,000 performance rights were issued following shareholder approval at the Company's annual general meeting held on 29 May 2026.

QUARTERLY CASH FLOW REPORT

In accordance with the ASX Listing Rules, the Company will also today lodge its cashflow report for the quarter ended 30 June 2026. There were no cash outflows during the quarter for Cinovec associated costs with respect to the Company's investment in the Cinovec Lithium Project in the Czech Republic. The cashflow report for the quarter ended 30 June 2026 is appended to this RNS announcement.

The Company's total cash was $0.75 million as at 30 June 2026.

PAYMENTS TO RELATED PARTIES

As outlined in the attached Appendix 5B (section 6.1), during the quarter approximately $210,000 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 is to be reimbursed directly from Geomet.

GEOMET TENEMENT SCHEDULE

Table 1: Geomet Tenements

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)[4].

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)[5].

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)[6].

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

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

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

European Metals Holdings Limited (ASX: EMH)

The amount at 6.1 includes payments of director fees and salaries and accounting and Company Secretary fees (inclusive of GST).

Answer: The Company expects to have similar operating cashflows for the foreseeable future as it continues development of the globally significant Cinovec Lithium Project.

Answer: The Company will require additional capital to support its operating costs as well as capital requirements of the project company Geomet. The Company completed a successful capital raise during the March 2026 quarter to support ongoing development of the Cinovec Lithium Project and general working capital. The Board is continuing to assess a range of future funding options available to the Company, including potential equity or debt funding. Based on recent market engagement and the success of the most recent capital raise, the Company is confident that it would be able to secure additional funding when appropriate.

Answer: The Company expects to be able to continue its activities, noting that the directors are aware that the Group has the option, if necessary, to defer certain expenditure or to reduce administration costs in order to minimise cash outflows. The directors also remain confident that, when required, the Company will be successful in raising additional funds through the issue of new equity.

Compliance statement

2 This statement gives a true and fair view of the matters disclosed.

Date: 31 July 2026

Authorised by: The Board

(Name of body or officer authorising release - see note 4)

Notes

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

[2] See ASX announcement dated 23 November 2021

[3] See ASX announcement dated 24 June 2026

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

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

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