Highlights:

• The European Bank for Reconstruction and Development has agreed to invest CAD$8.5 million to support EMN’s development of the Chvaletice Manganese Project
• The ERBD’s investment and relationship will be beneficial to the Company as the Chvaletice Manganese Project moves through development, project financing, and into production
• As part of its due diligence, the EBRD engaged an independent, international natural resources consultancy to conduct a technical and environmental review of the Chvaletice Manganese Project
• The EBRD is owned by the European Union, European Investment Bank and 71 countries, including the Czech Republic

Euro Manganese Inc. (TSX-V:EMN) (ASX: EMN) (OTCQX: EUMNF) (Frankfurt: E06) is pleased to announce the entering into of a strategic investment agreement of CAD$8,499,500 with the EBRD.

As part of the due diligence process, the EBRD engaged an independent, international natural resources consultancy to undertake a technical and environmental review of the Chvaletice Manganese Project. The EBRD’s Environmental and Social Policy is progressive and in keeping with international best practices, which EMN met. EMN has undertaken to maintain compliance with the EBRD’s environmental, social, economic inclusion and equal opportunity standards.

The Company’s relationship with the EBRD is expected to be highly strategic as the European Union charts a path towards greater supply security and sustainability. Supporting the development project of Europe’s only primary producer of high-purity manganese, an essential battery raw material, aligns with these EU goals.

The investment is to be affected by way of a private placement of 17,800,000 common shares of the Company to be issued to EBRD at a price of CAD$0.4775 per share. Upon the closing of the Placement, EBRD will hold approximately 4.5% of the Company’s common shares (on a non-diluted basis). In connection with the Placement, EMN and EBRD will enter into a project support agreement whereby, subject to certain conditions, the EBRD will be granted rights that allow participation in future financings to maintain its pro rata equity interest in the Company.

The proceeds from the Placement will increase the Company’s flexibility in financing the Chvaletice Manganese Project in the Czech Republic, including the feasibility study, site preparation and operating costs for the Demonstration Plant, and environmental works including permitting and other activities related to the Final Environmental and Social Impact Assessment.

The agreement between EBRD and Euro Manganese was facilitated through EMN’s relationship with EIT InnoEnergy, which entered into an agreement with EMN earlier this year to assist in securing access to project financing and customer off-take agreements. Pursuant to the agreement between EMN and EIT InnoEnergy, on completion of Placement, the Company will pay EIT InnoEnergy a cash finder’s fee equal to CAD$254,985, being 3% of the gross proceeds of the Placement.

EMN’s new President & CEO, Dr. Matthew James, commented:

“The Company welcomes this strategic investment, which aligns the Company’s interest with the EBRD and opens a pathway to potentially securing project financing from the EBRD and other European financial institutions. The successful completion of the technical and environmental due diligence process is a testament to the quality of our team and a strong vote of confidence in our Chvaletice Manganese Project. We are proud to have met the bank’s high ESG standards.

“The EBRD investment is an affirmation that EMN’s Chvaletice Manganese Project is an important part of establishing a strong, sustainable European electric vehicle battery supply chain to support Europe’s accelerating transition to e-mobility. This agreement also highlights the value of the Company’s relationship with EIT InnoEnergy.”

Mr. Eric Rasmussen, Director of Natural Resources at EBRD said:

“EBRD is delighted to support Euro Manganese and we are very pleased with its management’s commitment to implement best practises for modern, responsible mining. As a new shareholder, the EBRD will help Euro Manganese develop a local source of high purity manganese, which will improve Europe’s security of battery raw material supply.”

The Placement is subject to normal and customary conditions precedent for a transaction of this nature, including the acceptance of the TSX Venture Exchange. The common shares to be issued to the EBRD pursuant to the Placement will be subject to a hold period expiring four months and one day from the closing of the Placement, in accordance with Canadian securities laws.

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 the lithium-ion battery industry, as well as other high-technology applications.

About the European Bank for Reconstruction and Development

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in almost 40 economies across three continents. The Bank is owned by 71 countries, including the Czech Republic, as well as the EU and the European Investment Bank. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated. To date, the EBRD has invested more than EUR 1.2 billion in 110 projects in the Czech economy. The Czech Republic is the only member to have ‘graduated’ from the EBRD, which it did in 2007. However, in 2021, after a request by its government to help with the recovery from the coronavirus pandemic, the Bank agreed to resume investing in the country.