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 September 2023.

SUMMARY OF KEY UPDATES

• Further work was completed covering the environmental impact assessment (EIA) determination procedure forming a fast-track-eligibility approval process covering the application of the final mining decree for the Wolfsberg Lithium Project (Wolfsberg Project). The application for pre-assessment was lodged at the beginning of the 3rd quarter 2023. This essential work contributes towards operational readiness and construction of mine facilities.
• Nine (9) additional mining licenses have been issued during the quarter by the Mining Authority to cover the complete underground footprint of the mine design as laid out in the Wolfsberg Project Definitive Feasibility Study (DFS).
• Internal studies continue to assess the technical and commercial impacts of relocating the hydroxide plant to Saudi Arabia, based on the 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) completed work on optimizing the concentrator flow to increase spodumene concentrate levels with the aim to reduce energy consumption.
• The Mining Authority approved the Zone 2 drilling program issuing the Company with a decree.
• 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. A fully GREENPEG funded comprehensive airborne geophysics program was completed during the quarter to assess a new airborne technology (via Helicopter) for its suitability in mineralization such as the Wolfsberg Project.
• E47/4144 located in the northwest of Australia continues to progress through the WA Mining Act regulatory application process.
• 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.

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 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. Since this initial filing, the Company has lodged F-4 Amendment No 1 with the SEC on 14 February 2023, F-4 Amendment No 2 with the SEC on 30 March 2023, F-4 Amendment No 3 with the SEC on 5 May 2023 and most recently F-4 Amendment No 4 with the SEC 7 August 2023. The Company is currently working through comments received from the SEC and aiming to lodge F-4 Amendment No 5 in the near future.

On 6 July 2023, CRML announced that it had entered into a share subscription facility for up to US$125m from GEM Global Yield LLC SCS (GEM), a Luxembourg based private alternative investment group. Proceeds from the facility are expected to be used to fund the development of the Wolfsberg Lithium Project in Austria.

Subsequent to the quarter end on 26 October 2023, CRML announced that it had secured an additional investment facility from an investment vehicle managed by a New York based financial group, which is expected to provide CRML with US$10 million in capital at closing of the Transaction.

The Transaction was approved by EUR shareholders on 20 January 2023. Closing of the Transaction is subject to a number of conditions precedent including approval of Sizzle shareholders, the declaration in the future of the F-4 as effective under the U.S. securities laws, and other customary requirements. Upon the closing of the Transaction, EUR will be issued US$750 million worth of ordinary shares in CRML.

Obeikan

On 2 June 2023, the Company announced the execution of a binding term sheet with Obeikan Investment Group (Obeikan) to build and operate a hydroxide plant in Saudi Arabia (JV Term Sheet).

The 50/50 Joint Venture (JV) will be geared towards developing, constructing and commissioning a lithium hydroxide processing plant, and operating the plant for the conversion of lithium spodumene concentrate from the Company’s Wolfsberg Project in stages.

Under the JV Term Sheet, the proposed JV will seek to have an exclusive right to purchase spodumene mined from the current resource at the Wolfsberg Project (Zone 1), and the facility is expected to be developed to meet the minimum initial capacity and product specifications based on the Company’s binding Long Term Supply Agreement with BMW (refer ASX announcement dated 21 December 2022).

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