Euro Manganese Announces Closing of First Tranche of Private Placement, First EIT InnoEnergy Investment, Extension of Czech Tax Incentive Timeline, and Stock Option Grants - Seite 2

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 the first tranche of the Offering, the Company paid Canaccord Genuity and Bacchus cash fees in the aggregate amount of AUD$1.25 million (approximately CAD$1.21 million), representing 5% of the aggregate gross proceeds of the first tranche of the Offering.

The securities issued under the first tranche of 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.

First EIT InnoEnergy Investment

Pursuant to the terms of the Project Support Agreement entered into by the Company and EIT InnoEnergy, and announced on February 22, 2021, the Company has received the first of three investments from EIT InnoEnergy, such instalments having an aggregate value of €250,000. The funds will be used to support ongoing work on the Project’s definitive feasibility study and the commissioning of the Demonstration Plant, which is intended to produce large-scale samples of high-purity manganese for supply chain qualification by prospective customers, including European electric vehicle makers and battery manufacturers.

EIT InnoEnergy is a Knowledge and Innovation Community supported by the European Institute of Innovation and Technology. EIT leads the industrial stream of the European Battery Alliance, an initiative launched by The European Commission in October 2017 with the objective to build a strong and competitive battery industry in Europe. The support of EIT is intended to help accelerate the Project’s successful integration into Europe’s electric vehicle (EV) battery value chain.

The first investment made by EIT of €62,500 (approximately CAD$92,850) was advanced to the Company on March 24, 2021. Accordingly, the Company will issue 147,380 Shares to EIT at the price of CAD$0.63 per Share being the 10-day volume weighted average stock price on the TSX Venture Exchange ("TSXV") prior to receipt of the first investment. The issuance of such Shares is not expected to occur until early January 2022. The issuance of such Shares remains subject to the approval of the TSXV. In accordance with Canadian securities laws and policies of the TSXV, Shares issued pursuant to EIT will be subject to a four month and one day statutory hold period.