Quarterly Activities Report and Appendix 5B for the Quarter Ending 30 Septemeber 2021

The Board of European Lithium Limited ( ASX: EUR, FRA: PF8, OTC: EULIF) (the Company) is pleased to present its activities report and Appendix 5B for the three months ending 30 September 2021.

SUMMARY OF KEY UPDATES

• E47/4144 is progressing through the WA Mining Act regulatory application process.
• COVID-19 pandemic and government enforced rules related to international travel, in particular, continues to impact operations and force EUR to observe closely any changes in government restrictions in Europe, Austria specifically and Australia.
• Due to the Company’s strict COVID safe rules and other mitigation measures, no COVID-19 incidents or cases were reported by staff and contractors since the start of the pandemic in March 2020. The Company has continued Austrian operations noting that COVID-19 rules have been eased during Q3/2021 within the European Union, but may be tightened unexpectedly was raising number of infections in Q4/2021.
• DRA as the leading consultant to manage the bankable Definite Feasibility Study (DFS) has appointed the complete group of subconsultants.
• Both drill rigs mobilized in Q1 & Q2/2021 have been de-mobilised in Q3/2021 on completion of the deep hole drilling program.
• The Company completed drilling activities to a total length of 7,923m, with 2 drill rigs operating efficiently, with extraordinary core recovery and without any incidents.
• Dorfner/Anzaplan has completed 3rd locked cycle test and commenced the final one out of four to ensure high level of QA/QC. Final report will be published once results are received and processed.
• EUR continues to collaborate, based on a letter of intent (LOI), with a research group from University of Graz, to develop a cluster for lithium hydroxide (LiOH) to be produced from recycled Lithium-Ion-Batteries helping to ensure EU green targets for the battery industry are met.
• GREENPEG (EU-funded) supported infield and underground work continues.

CORPORATE MATTERS

Board Restructure

During the quarter, the Company announced the appointment of Mr Michael Carter as Non-Executive Director and the resignation of Mr Kimon Gkomozias as Executive Director of the ASX Release European Lithium Limited 2 Company with effect from 31 August 2021.

Placement

During the quarter, the Company issued 141m shares at an issue price of $0.0625 per share to raise cash proceeds of $6.50m (before expenses) (Placement). Pursuant to the Placement, Investors were also issued one listed option (exercise price $0.075, expiring 19 April 2024) for every two shares issued (Options). The Placement was lead managed by Evolution Advisors Pty Ltd (Evolution). Evolution was paid 6% of the amount raised, issued 20,000,000 listed options, and issued 2,000,000 fully paid ordinary shares. Funds raised from the Placement will be used to fund the DFS at the Company’s Wolfsberg Lithium Project, for general exploration purposes and working capital.

Winance Financing Facility

The Company previously announced that it had secured a A$10 million finance facility with Winance Investment LLC (Winance) (refer ASX Announcement 31 July 2019). On 5 March 2020, the Company announced that it had agreed to draw down A$2 million (2,000 convertible notes) under the Winance facility (Tranche 2). During the quarter, Winance converted 300 convertible notes from Tranche 2. At 30 September 2021, there were no convertible notes remaining from the Tranche 2 drawdown.

OTC

Subsequent to the quarter, the Company announced its intention to list on the US OTCQB market in October 2021 under the symbol EULIF. OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market, and the Pink® Open Market for 11,000 U.S. and global securities. The OTC Markets Group provide an SEC regulated Alternative Trading System, OTC Link® ATS, that connects a diverse network of broker-dealers to provide liquidity and execution services for the OTC markets, therefore, enabling investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors. OTC Markets Group Market Data is distributed by most major financial data distributors, including Bloomberg, Thomson Reuters, Interactive Data, Factset, Fidessa, NASDAQ and SIX Financial.

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