Quarterly Activities Report and Appendix 5B

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 June 2023.

SUMMARY OF KEY UPDATES

• The Company entered into a binding term sheet with Obeikan Investment Group to build and operate a hydroxide plant in Saudi Arabia for the Wolfsberg Lithium Project (Wolfsberg Project).
• Complex work was conducted covering an environmental impact assessment (EIA) determination procedure that forms a fast-track-eligibility approval process covering the application of the final mining decree We anticipate the application for pre-assessment will be lodged at the beginning of the 3rd quarter 2023. This marks an important milestone towards operational readiness to build the mine and concentrator at the anticipated location.
• Public Hearing to issue nine additional mining licenses was conducted by the Mining Authority.
• Further internal studies have been conducted to assess the technical and commercial impacts of relocating the hydroxide plant to Saudi Arabia, based on the Definitive Feasibility Study (DFS) results for the Wolfsberg Project presented in December 2022 by lead consultant DRA Global (DRA).
• Studies that form the DFS demonstrate that the Wolfsberg Project is well positioned to become a leading producer of battery-grade lithium hydroxide in Europe, and set to deliver high returns, leveraging low operating costs, and benefiting from a lithium market which is anticipated to be in structural undersupply during most of the life of mine.
• Dorfner Anzaplan (Dorfner) continued to work on optimizing the concentrator flow to increase spodumene concentrate levels with the aim to reduce energy consumption.
• A public hearing was conducted by the Mining Authority as part of the process to approve the Zone 2 drilling program.
• EUR continues collaborating with a research group from the University of Graz to develop local lithium hydroxide production from recycled Lithium-Ion batteries.
• GREENPEG (EU-funded) supported infield and underground work continues.
• E47/4144 located in the northwest of Australia continues to progress through the WA Mining Act regulatory application process.
• Initial desktop evaluation work was conducted on granted tenement E45/4532 at Munni Munni South.
• EUR advances towards completion of business combination with Sizzle Acquisition Corp. that at conclusion will own the Wolfsberg Project via a newly-formed company, “Critical Metals Corp.” which is expected to be listed on NASDAQ.
• Commencement of on-market buyback of EUR shares (subsequently completed in July 2023)
• EUR completes the acquisition of 100% of the Bretstein-Lachtal Project, Klementkogel Project and the Wildbachgraben Project (together, Austrian Lithium Projects) located in the Styria mining district of Austria.

CORPORATE MATTERS

NASDAQ Merger

On 26 October 2022, the Company announced that it has entered into a business combination agreement with Sizzle Acquisition Corp., a US special purpose acquisition company listed on NASDAQ (NASDAQ:SZZL) (Sizzle), pursuant to which EUR will combine its wholly owned Wolfsberg Lithium Project (Wolfsberg Project) with Sizzle via a newly-formed, lithium exploration and development company named “Critical Metals Corp.” (CRML) which is expected to be listed on NASDAQ (Transaction).

On 23 December 2022, the Company advised that the Form F-4 Registration Statement had been filed with the U.S. Securities and Exchange Commission (SEC) in connection with the Transaction.

On 3 February 2022, the Company announced that Sizzle received approval at a special meeting of its shareholders to extend the date by which it must consummate the Transaction by no later than the 8 August 2023. Following this meeting, Sizzle filed the Form 8-K with the SEC confirming stockholders holding 11,076,703 shares had exercised their right to redeem their shares resulting in approximately US$114.3 million (approximately US $10.32 per public share) will be removed from the Sizzle trust account to pay such holders and approximately US$45.6 million will remain in the Sizzle trust account following the redemptions.

On 14 February 2023, CRML lodged with the SEC Form F-4 Amendment No. 1 addressing the comments received from the SEC in respect to the F-4 Registration Statement. On 29 March 2023, CRML lodged with the SEC Form F-4 Amendment No. 2 addressing the second round of comments received from the SEC in respect to the F-4 Registration Statement. On 5 May 2023, CRML lodged with the SEC Form F-4 Amendment No. 3 addressing the third round of comments received from the SEC in respect to the F-4 Registration Statement. The Company is currently working through comments received from the SEC and aiming to lodge F-4 Amendment NO 4 in the near future.

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