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 3

Investment Incentive Eligibility Timeline Extension

The Company is also pleased to report that its eligibility timeline for certain investment incentives in the Czech Republic has been extended by two years. As originally announced on March 30, 2020, the Company received approval from the Czech Ministry of Industry and Trade for investment incentives on the Project in the form of corporate income tax credits. The credits are to be applied toward Czech corporate income taxes payable on future earnings generated by the Project. Based on eligible Czech-based assets acquired of approximately CZK 2.4 billion (approx. CAN$136 million), such tax credits would amount to approximately CZK 470.3 million (approx. CAD$27 million) over and above normal tax depreciation on such assets.

Pursuant to amendments to the Czech Investment Incentives Act resulting from the COVID-19 pandemic, the Czech Government offered extensions to previously granted investment incentives, and the Company applied for and received approval to prolong the deadline for fulfilling the general conditions of the investment incentives by two years, to March 25, 2025.

Stock Option Grants

The Company has granted stock options (the "Options") to certain officers, employees and consultants to purchase up to an aggregate of 2,350,000 Shares. The Options are exercisable for a term of ten years at an exercise price of CAD$0.61 per Share. The Options will vest one-third on the date of grant, and one-third on each of the first and second anniversaries of the date of grant, except for the Options granted to officers which vest in full five years from the date of grant, and 350,000 Options granted to a consultant which vest one-third on the date of grant and one-third on each of the four and eight-month anniversaries of the date of grant.

About Euro Manganese Inc.

Euro Manganese Inc. is a battery materials company whose principal focus is advancing the development of the Chvaletice Manganese Project, in which it holds a 100% interest. The proposed Project entails re-processing a significant manganese deposit hosted in mine tailings from a decommissioned mine, strategically located in the Czech Republic. The Company’s goal is to become a leading, competitive and environmentally superior primary producer of ultra-high-purity Manganese Products in the heart of Europe, serving both the lithium-ion battery industry, as well as other high-technology applications.