Quarterly Activities Report and Appendix 5B for the Quarter Ending 31 March 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 31 March 2022.

SUMMARY OF KEY UPDATES

• Subsequent to the quarter end, placement to raise proceeds of $30m (before expenses)
• Completion of tranche 2 placement with Millstone to raise funds of $2.5m
• E47/4144 located in the northwest Australia is continuing to progress through the WA Mining Act regulatory application process.
• COVID-19 pandemic and government enforced rules related to international travel 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 COVID19 incidents or cases were reported by staff and contractors since the start of the pandemic in 2020. The Company has continued its Austrian operations while monitoring changing COVID-19 rules within the European Union, the pandemic is expected to continue to impact the Company for the foreseeable future. World Health Organization (WHO) recommendations remain in place and are applied into national law despite seasonal decreases in case numbers.
• DRA Global (DRA) as lead consultant managing the Definite Feasibility Study (DFS) has advanced both technical and financial planning work during the quarter.
• Subsequent to the quarter end, the Company announced an interim DFS progress report showing a pre-tax NPV6 for the accelerated case of A$862 million with the final DFS anticipated to be completed in the third quarter of 2022.
• Dorfner/Anzaplan has been appointed to plan the layout for the conversion plant QA/QC laboratory to ensure consistent high quality of the battery grade products.
• EUR continues to collaborate with a research group from University of Graz to develop local production of lithium hydroxide from recycled Lithium-Ion-Batteries.
• Planning underway for zone 2 exploration drilling
• Discussions in progress with Traxys and other industry players regarding future off-take contracts
• GREENPEG (EU-funded) supported infield and underground work continues.

CORPORATE MATTERS

Shareholder Meeting

On 21 January 2022, the Company held its annual general meeting (AGM) of shareholders. All resolutions were carried at the AGM.

Millstone Placement

On 4 November 2021, the Company announced that it has entered into binding agreements under which EUR will acquire European Lithium Ukraine LLC (formerly Petro Consulting LLC) (European Lithium Ukraine), a Ukraine incorporated company that is applying (through either court proceedings, public auction and/or production sharing agreement with the Ukraine Government) for 20-year special permits for the extraction and production of lithium at the Shevchenkivske project and Dobra Project in Ukraine (Figure 1), from Millstone and Company Global DW LLC (Millstone)(Millstone Transaction). In addition, under the terms of the agreement, Millstone will subscribe for $20m in shares in the Company, with $2.5m invested immediately, $2.5m subject to shareholder approval and the balance of $15m following completion of the acquisition of European Lithium Ukraine.

During the quarter, the Company received funding of $2.5m from Millstone in respect to tranche 2 of the placement proceeded to issue shares pursuant to the placement following receipt of shareholder approval at the AGM held on 21 January 2022.

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