Mr. Fred Tejada reports

EUROPEAN ELECTRIC METALS COMMENCES UNDERGROUND PROGRAM WITHIN THE MINE

European Electric Metals Inc. has commenced an underground sampling program over two adjoining parts of the laterite deposit measuring 250 metres by 45 metres and 70 metres by 40 metres, where, for the most part, the infrastructure is ready. The blocks are accessible and supported by existing underground mining infrastructure. The area has been deemed, during company inspections, to be in good working condition and, subject to engineering review, conducive to restarting mining operation.

Highlights:

• Sampling to cover two adjoining mining blocks in the Skroska nickel-cobalt mine;
• Mining blocks accessible and supported by existing mining infrastructure;
• The focus of sampling is to follow up on the elevated cobalt levels identified by European Electric Metals in phase 1 designed to target the National Instrument 43-101-compliant resource estimate.

There is electricity throughout the mine and the track system, and air compression systems are in good working order. There is no water issue and the mine is well ventilated with no mechanized ventilation system in place. There are no rock falls in any areas of the mine. The mine is serviced via hydroelectric power (the mine is on the power grid) and has paved road access nearby the property area, with well-maintained gravel roads to the site. The site also has good office infrastructure and various storage/outbuildings that formerly supported previous state-run operations (1985 to 1990) as well as operations by the current owner from 2008 to 2013, when it was put on care and maintenance.

European Electric Metals anticipates that the sampling program will be completed within the next 30 days, during which time European Electric Metals also intends to engage an engineering firm to conduct geological model and engineering studies focused on restarting operation.

Fred Tejada, chief executive officer of European Electric Metals, commented: "The infrastructure and development at Skroska is in excellent condition. The recent EVX news regarding elevated cobalt levels describes, in our view, a new discovery within an existing mine. We believe this new cobalt discovery has the potential to positively impact the economics of the project."

This sampling program is a follow-up to the high-grade first phase results announced by Fred Tejada on Oct. 11, 2018, via a news release that described 18 laterite samples collected from 10 different underground locations at Skroska. The assays ranged from 0.05 per cent to 0.54 per cent cobalt and from 0.36 per cent to 1.92 per cent nickel. Ten of these samples assayed 0.15 per cent or above cobalt; the assays of which are provided in the attached table. The presence of this cobalt-rich laterite had not been previously recognized at Skroska.

Sample    Width (m)    Co (%)    Ni (%)    Fe2O3 (%)    MnO (%)
                          
1A            0.80      0.20      1.46        67.00      0.289                                     
1B            0.75      0.16      1.36        62.96      0.394                                     
4A            1.05      0.16      1.33        71.60      0.625                                     
6A            1.05      0.15      1.46        71.01       0.44                                       
7A            0.85      0.18      1.39        64.79       0.56 
7T            0.50      0.35      1.45        55.22       0.71                                       
8C            0.70      0.22      1.12        76.09       0.95 
8B            0.75      0.20      1.31        76.28       0.86                                       
9A            0.70      0.24      1.46        65.89       0.64 
9T            0.40      0.54      1.92        51.00       0.51 

The samples were taken vertically from the pillars/columns of the mine and have widths varying from 0.40 metre to 1.10 metres. Two samples having the same preceding number (7A and 7B for example) means they were taken from the same location and are contiguous. The majority of the samples were collected at level 815 of the underground mine, with three samples taken at level 850. The sampling program covered a lateral distance of approximately 420 metres. The location of the samples and their corresponding assays can be found at the company's website.

The samples were sent to ALS Laboratories in Serbia for preparation and sent to Ireland for analysis. The analytical suite selected was ME-XRF12n. This analytical suite is suitable in the analysis of nickel laterite samples.

Jose Mario Castelo Branco, EuroGeol, a qualified person under the meaning of Canadian National Instrument 43-101 and chief geologist of the company is responsible for the technical content of this news release.

About European Electric Metals Inc.

European Electric Metals is a Canadian listed public company, with a focus on electrification themed projects in Europe. A major shareholder of European Electric Metals is the European Bank for Reconstruction and Development. The goal of European Electric Metals is to become a major source of battery metals such as copper, nickel and cobalt, and the company seeks to do so within safe, stable and logistically attractive European jurisdictions. European Electric Metals' projects are ideally located with excellent road, port and grid power availability, and near European countries that are poised to experience dramatic growth in the electric-vehicle-manufacturing industry.

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