Quarterly Activities Report for the Period Ended September 2022

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 2022.

SUMMARY OF KEY UPDATES

• EUR has signed a memorandum of understanding (MoU) with BMW to engage in a long term agreement (LTA) supplying battery grade lithium hydroxide (LiOH).
  
• DRA Global (DRA) as lead consultant managing the Definite Feasibility Study (DFS) has continued the advanced financial planning work during the quarter. Having identified new risks with Europe’s supply chain for critical materials, such as energy (gas and electricity) and reagents, a process of evaluation and mitigation is underway.
• Dorfner/Anzaplan were assigned an additional task optimizing the concentrator flow to increase spodumene concentrate levels with the aim to reduce energy consumption for all further processing.
• Assumptions and inputs included in the final DFS are being assessed taking into account global supply chain issues, inflation rates and unexpected high prices for consumables including energy and chemical reagents This process may delay the anticipated completion date for the DFS to the end of the first quarter of 2023.
• Planning and approval work underway for Zone 2 exploration drilling.
• EUR continues to collaborate with a research group from University of Graz to develop local production of lithium hydroxide from recycled Lithium-Ion batteries.
• The Company continues to observe closely any changes in government restrictions in Europe (Austria specifically), and Australia associated with COVID-19. Due to the Company’s strict COVID safety rules and other mitigation measures, no COVID-19 incidents or cases were reported by staff and contractors since the start of the pandemic in 2020.
• 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.
• Subsequent to the quarter end, the Company entered into a business combination agreement with Sizzle Acquisition Corp, pursuant to which EUR will sell its ownership interest in subsidiary entities which together hold the Wolfsberg Project, and be issued US$750 million, representing approximately 80% ownership interest, in Critical Metals Corp which is to be listed on NASDAQ.

Subsequent to the quarter end 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 sell-down its interest in its wholly owned Wolfsberg Lithium Project (Wolfsberg Project) and merge with Sizzle via a newly-formed, lithium exploration and development company named “Critical Metals Corp.” which is expected to be listed on NASDAQ (Transaction). Upon the closing of the Transaction, EUR will be issued US$750 million worth of ordinary shares in Critical Metals, which represents an approximate 80% ownership interest in the combined entity. It is anticipated that the Transaction will complete in the first half of 2023, subject to the satisfaction or waiver of the conditions precedent to closing of the Transaction.

Option Underwriting Agreement

On 25 July 2022, the Company announced that it had entered into an option exercise underwriting agreement (Underwriting Agreement) to secure commitments to fully underwrite the exercise of unlisted options exercisable at $0.05 each with an expiry date of 31 July 2022.

Listing of Options

On 1 July 2022, the Company advised that it has listed 173,076,970 options on the ASX under the code EUROB. The options have an exercise price of $0.18 each and an expiry date of 31 March 2025.

Capital Movements

During the quarter, the Company issued the following securities:

• 4 July 2022 – 50,000,000 listed options ($0.18 each expiring 31 March 2025) issued to Directors and Consultants of the Company following receipt of shareholder approval on 24 June 2022
  
• 7 July 2022 – Issue of 1,466,666 shares upon the exercise of unlisted options ($0.05 each expiring 31 July 2022)
• 31 July 2022 – Expiry of 3,333,333 unlisted options ($0.18 each expiring 31 July 2022)
• 1 August 2022 – Issue of 8,515,254 shares upon the exercise of unlisted options ($0.05 each expiring 31 July 2022)
• 8 August 2022 – Issue of 7,232,508 shares upon the exercise of unlisted options ($0.05 each expiring 31 July 2022) pursuant to the Underwriting Agreement

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