For immediate release

28 November 2017

EUROPEAN METALS HOLDINGS LIMITED

FURTHER INCREASE IN INDICATED RESOURCE AT CINOVEC SOUTH

European Metals Holdings Limited ("European Metals" or "the Company") (ASX & AIM: EMH) is pleased to announce a further upgrade of its JORC compliant Indicated Mineral Resource at the Cinovec Lithium/Tin Project in the Czech Republic, confirming its status as the largest Lithium resource in Europe

The Company has recently completed a four-month drilling campaign at Cinovec South, comprising six core drillholes for 2,697.1m meters, with the goal of closing 'gaps' in the existing resource model in and around the initial planned mining areas and upgrading part of the resource from the Inferred category to the higher confidence Indicated category. The results, summarised below, are satisfactory and exceeded expectations.

European Metals Managing Director Keith Coughlan said, "This drill program targeted areas of low historic data density with the aim of bringing these areas, which lie adjacent to the planned initial mining area, to Indicated Resource category so they can be used in the ongoing definitive feasibility study. The drilling was a success with some large areas of higher grade mineralisation defined in the target area.

On the back of this resource upgrade, we have commenced an optimisation of the mine design. When complete, this will allow finalisation of a grid drilling program for upgrading parts of the Indicated Resource to Measured Resource to facilitate the definition of proven reserves for the definitive feasibility study that is progressing well."

MINERAL RESOURCE UPGRADE

Independent expert Lynn Widenbar of Widenbar and Associates updated the Mineral Resource Estimates. Mr Widenbar has compiled all resource estimates at Cinovec to-date.

Table 1: Cinovec Project Mineral Resource Estimate November 2017 (0.1% Li Cutoff)

Notes:

1. Mineral Resources are not Reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study.

2. Mineral Resources are reported inclusive of any reserves and are prepared by Widenbar in accordance with the guidelines of the JORC Code (2012).

3. The effective date of the Mineral Resource is November 22, 2017.

4. All figures are rounded to reflect the relative accuracy of the estimate.

5. The operator of the project is Geomet s.r.o., a wholly-owned subsidiary of EMH. Gross and Net Attributable resources are the same.

6. Any apparent inconsistencies are due to rounding errors.

7. LCE is Lithium Carbonate Equivalent and is equivalent to Li₂CO_3.

The updated database incorporates a number of updates to drill collar location, downhole survey and assay data. There is a total of 1,222 holes (including 32 surface diamond holes drilled to date by European Metals) and 75,018 assay intervals. This includes underground sampling and adits which are entered as pseudo-drill holes in the database. Raw assay data has been composited to 1m intervals prior to analysis and estimation.

All data has been imported into Micromine 2016.1 software for further analysis and estimation.

(Please refer to the announcement on the European Metals Website for Figure 1 - European Metals Holdings (in red) and Historic Hole Locations - www.europeanmet.com.)

Geologic Model

A geological domain model was constructed using Leapfrog software with solid wireframes representing greisen, granite, greisenised granite and the overlying barren rhyolite. In addition, a thin overburden layer is modelled near surface and a low-mica granite is modelled to form the lower limit of the mineralisation. This was used to both control interpolation and to assign density to the model.

(Please refer to the announcement on the European Metals Website for Figure 2 - Long Section at -778890E showing geological model - www.europeanmet.com.)

Resource Estimation

Resource estimation was carried out separately for each geological domain, using only the data within each domain.

Ordinary Kriging was used as the estimation methodology, using variogram parameters derived from the variogram modelling (see Table 6.1) and search parameters derived from the Kriging Neighnbourhood Analysis, variogram modelling and drill hole spacing considerations. An "unfolding" search strategy was used which allowed the search ellipse orientation to vary with the locally changing dip and strike.

The primary search ellipse was 150m along strike, 150m down dip and 7.5m across the mineralisation. A minimum of 4 composites and a maximum of 8 composites were required. A second interpolation with search ellipse of 300m x 300m x 12.5m was carried out to inform blocks to be used as the basis for an exploration target. Block size was 10m (E-W) by 10m (N-S) by 5m.

After statistical analysis, a top cut of 5% was applied to Sn% and W%; no top cut is applied to Li%. Sn%, W% and Li% were then estimated by Ordinary Kriging within the geological solids.

(Please refer to the announcement on the European Metals Website for Figure 3 - Updated Indicated and Inferred in the Resource Model - www.europeanmet.com.)

Validation of the final resource model has been carried out in a number of ways including section comparison of data versus model, average grade comparison by domain, swathe plots and production reconciliation. All methods of validation have produce acceptable results.

Densities applied for Mineral Resource tonnage calculations are based on historical bulk density measurements which were reviewed by EMH staff in Czech; a dry bulk density of 2.57 t/m³ was assigned for granite and greisenised granite, and 2.70 t/m³ for greisen. Rhyolite and other materials were assigned a density of 2.60 t/m³. In addition, density measurements were carried out on core samples from the 2014-2016 drill campaigns, confirming these values.

BACKGROUND INFORMATION ON CINOVEC

PROJECT OVERVIEW

Cinovec Lithium/Tin Project

European Metals, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Cinovec hosts a globally significant hard 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% Li₂O and 0.04% Sn containing a combined 7.0 million tonnes Lithium Carbonate Equivalent and 263kt of tin. An initial Probable Ore Reserve of 34.5Mt @ 0.65% Li2O and 0.09% Sn has been declared to cover the first 20 years mining at an output of 20,800tpa of lithium carbonate.

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 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 the company's business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company's control.

Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

LITHIUM CLASSIFICATION AND CONVERSION FACTORS

Lithium grades are normally presented in percentages or parts per million (ppm). Grades of deposits are also expressed as lithium compounds in percentages, for example as a percent lithium oxide (Li₂O) content or percent lithium carbonate (Li₂CO₃) content.

Lithium carbonate equivalent ("LCE") is the industry standard terminology for, and is equivalent to, Li₂CO₃. Use of LCE is to provide data comparable with industry reports and is the total equivalent amount of lithium carbonate, assuming the lithium content in the deposit is converted to lithium carbonate, using the conversion rates in the table included below to get an equivalent Li₂CO₃ value in percent. Use of LCE assumes 100% recovery and no process losses in the extraction of Li₂CO₃ from the deposit.

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

WEBSITE

A copy of this announcement is available from the Company's website at www.europeanmet.com.

TECHNICAL GLOSSARY

The following is a summary of technical terms:

ADDITIONAL GEOLOGICAL TERMS

ENQUIRIES:

The information contained within this announcement is considered to be inside information, for the purposes of Article 7 of EU Regulation 596/2014, prior to its release.

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

(Criteria listed in section 1 also apply to this section.)

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)