Euro Manganese Announces Closing of First Tranche of Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V / ASX: EMN) (the "Company" or "EMN") is pleased to announce the closing today of the first tranche of the private placement (the "Offering") announced on October 21, 2020. The first tranche of the Offering was comprised of 716,384 common shares of the Company ("Shares") and 31,183,616 CHESS Depositary Interests ("CDIs", with each CDI representing one Share), issued at a price of C$0.19 per Share and A$0.20 per CDI, respectively, for aggregate gross proceeds of approximately C$6,061,000.

The second tranche of the Offering, consisting of 1,216,862 Shares and 26,883,138 CDIs at the same prices is expected to close in December 2020, subject to and following approval by the Company’s shareholders as required by Listing Rules 10.11.1 and 7.1 of the Australian Securities Exchange ("ASX").

The net proceeds of the Offering will be used by the Company to further progress its Chvaletice Manganese Project in the Czech Republic ("Project"), including the purchase, installation and operation of the Demonstration Plant, advancing the Project’s permitting and feasibility study, and for other general corporate purposes.

Canaccord Genuity (Australia) Limited ("Canaccord Genuity") is acting as Lead Manager and Bookrunner to the Offering, with Bacchus Capital Advisers Limited (“Bacchus”) acting as financial adviser to the Company. In connection with the closing of tranche one of the Offering, the Company paid Canaccord Genuity and Bacchus cash fees in the amount of approximately C$363,000, representing 6% of the aggregate gross proceeds of tranche one of the Offering. In accordance with Canadian securities laws and policies of the TSXV, Shares issued pursuant to tranche one of the Offering are subject to a four month and one day statutory hold period expiring on March 1, 2021.

The Shares and CDIs to be issued under the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to U.S. Persons absent registration or an applicable exemption from registration. This press release is not an offer or a solicitation of an offer of securities for sale in the United States, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.