Highly satisfactory results from drillings at the Spanish Corcel Project: Estimated 60 million tonnes with 0.25% nickel

Stockholm, 17 January 2022 – Eurobattery Minerals AB (Nordic Growth Market: “BAT” and Börse Stuttgart: “EBM”), a growth company in the mining and exploration industry with the vision to help Europe become self-sufficient in ethical battery minerals, announces that the first assay results have been received from the drill holes carried out as part of the 2021 diamond drilling campaign on its Spanish Project (Corcel Project), initiated in June 2021 and completed on time and on budget. The company believes the results are highly satisfactory for the continued projection of the Corcel resource.

• The first assay results have been received from the first two drill holes (COR005 and COR006) of the seven drill holes carried out in 2021 in the Corcel Project.
• Elevated levels of nickel (Ni), copper (Cu) and cobalt (Co) intersected in drill holes COR005 & COR006. Assay highlights from the first two drill holes include:
  • 17.6 m @ 0.27% Ni, 0.03% Cu and 0.01% Co (COR005)
  • 23.2 m @ 0.24% Ni, 0.03% Cu and 0.01% Co (COR006)
• The first assay results of this campaign verify the interesting potential of the “West Anomaly”, where drill hole COR003 (19DD001) confirmed at depth the good results obtained in the geochemical campaign, with an average of 69 m @ 0.30% Ni, 0.04% Cu and 0.01% Co.
• Assay results pending from the remaining drill holes. Results anticipated in the first months of 2022 to obtain the accredited resource certification (Ni 43-101) in the first quarter of 2022.
• Based on the results obtained in the 2019 campaign and the first results received this year, and taking into account the size of the anomalous zone, there is potentially a deposit of considerable size (around 60 million tonnes with 0.25% Ni).

“The results from this and the previous drilling campaign indicate the excellent potential of establishing a solid nickel project in the south of Europe,” commented Roberto García Martínez, CEO of Eurobattery Minerals.

In 2021, a total of seven diamond drill holes were completed with a total drilled length of 1,134 meters. Work focused on the “West Anomaly” where the company’s previous exploration work recorded ground anomalies of up to 0.33% Ni coincident with an increase in the magnetic response of the underlying rocks. DDH COR003 (19DD0001) confirmed the source of the anomaly in this area with an average grade of 69 m @ 0.30% Ni, 0.038% Cu and 0.01% Co from 78 m depth, including 21 m @ 0.345% Ni, 0.045% Cu and 0.011% Co from 78 m depth.

Summary of the first drilling results

The 2021 drilling campaign was designed to define – from surface to a depth of approximately 150 metres –  the existing resources of Ni, Cu and Co in an area that is approximately 150 metres in length along the western anomaly defined in the 2019 campaign, which has a North-South length of approximately 1,200 meters and an East-West width of approximately 375 meters.

The results of the sample assays from the current drilling campaign are mostly pending. To date, only those corresponding to hole COR005 and part of hole COR006 have been received.

The assay results available to date are highly satisfactory and corroborate the interesting potential of the “West Anomaly” as can be seen in the table below, which presents the intersections of these drill holes determined at a 0.15% Ni cut-off grade (normally applied in Ni open-pit mines).

HOLE		FROM (m)	TO (m)	INT (m)	Ni (%)	Cu (%)	Co (%)
COR005		17,05	122,80	105,75	0,200	0,024	0,012
incl.	41,50	45,50	4,00	0,230	0,055	0,014
and	85,20	103,20	18,00	0,246	0,040	0,011
incl.	88,20	91,20	3,00	0,311	0,059	0,012
and	105,20	122,80	17,60	0,268	0,029	0,011
incl.	105,20	110,20	5,00	0,345	0,059	0,013
COR006		5,90	10,60	4,70	0,414	0,117	0,015
	54,40	77,60	23,20	0,236	0,027	0,011
incl.	57,40	65,60	8,20	0,290	0,049	0,012
incl.	58,40	61,40	3,00	0,396	0,083	0,013

Table 1. Initial assay highlights. Average grades have been determined with a cut-off grade of 0.15% Ni.

In drill hole COR005, all the results of which are available, several intersections with high Ni grades (above 0.2%) have been identified:

• 4 m @ 0.230% Ni, 0.055% Cu and 0.014% Co from 41.50 m depth.
• 18 m @ 0.246% Ni, 0,040% Cu and 0.011% Co from 85.20 m depth (which includes an intersection of 3 m @ 0.311% Ni, 0.059% Cu and 0.012% Co).
• 17.60 m @ 0.268% Ni, 0.029% Cu and 0.011% Co from 105.20 m depth (which includes an intersection of 5 m @ 0.345% Ni, 0.059% Cu and 0.013% Co).

These intersections were within a broader intersection of 105.75 m @ 0.200 % Ni, 0.024% Cu and 0.012% Co from 17.05 m depth.

For drill hole COR006, only partial results are available for two sections, where the following mineral intersections have been identified:

• 4.70 m @ 0.414% Ni, 0.117% Cu and 0.015% Co, from 5.90 m depth.
• 23.20 m @ 0.236% Ni, 0.027% Cu and 0.0115 Co, from 54.40 m depth. This includes 3 m @ 0.396% Ni, 0.083% Cu and 0.013% Co from 58.40 m depth.

The Ni mineralisation present is mainly Pentlandite (see Figure 1). This mineralisation is closely linked to Ultramafic and Ultrabasic rocks consisting of Pyroxenites and Peridotites, which are amphibolitised to varying degrees of intensity in the vicinity of the mineralisation.

Figure 1. Pentlandite mineralisation in drill hole COR005 (61.25 m depth).

Figure 2 shows the “looking North” section according to drill holes COR003, COR005 and COR006, where the mineralised zones intersected by these drill holes can be seen. Here, large orange-coloured zones can be observed corresponding to mineralisation with samples displaying values between 0.2% Ni and 0.25% Ni. These mineralised zones are located around other red-coloured zones that represent samples with Ni values above 0.25%, reaching values of 0.6% Ni.

In view of this section, albeit incomplete and taking into account a possible cut-off grade of 0.15 % Ni for an exploitable deposit in open pit, indications suggest a mineralised body with a width of between 90 m and 120 m from the surface elevation of 380 m to the elevation of 250 m, which was the depth investigated.

The western limit of the mineralisation is comprised of a fault, with apparent strengths of between three and five metres, with the result that from here to the west, all the drill holes cut gabbroic rock with intercalations of amphibolite layers and whose analytical results never exceed 950 ppm Ni (sterile area).

Figure 2. “Looking North” section according to drill holes COR003, COR005 and COR006.

Next steps

The company is satisfied with the results obtained in the first two drill holes of the 2021 campaign and is awaiting the remaining results to assess the potential of the area investigated during this campaign and obtain an accredited resource certification (Ni 43-101) in the first quarter of 2022.

As indicated in Figure 3, which shows the geology of the area and the drill holes with the mineral intersections, it is evident that – despite many assay values yet to be received ­– we are beginning to see a section of a deposit that could potentially be of a considerable dimension. This is supported by the drill holes carried out in 2019, further north of the area investigated in 2021 at some 600 metres distance (COR001 and COR002), which also cut mineralisation with values in the same order as those obtained in this campaign. Considering the size of the anomalous zone, there is potentially a deposit of some 60 million tonnes with a nickel grade of 0.25%.

Figure 3. Geological map and drill holes

For more information, please contact:

Roberto García Martínez, CEO of Eurobattery Minerals

press@eurobatteryminerals.com

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This information is of the kind that the Company is required to disclose in accordance with the EU’s Market Abuse Regulation. The information was issued for publication through the agency of the contact person set out above on 17 January 2022 at 08:00 CET.

About Eurobattery Minerals

Eurobattery Minerals AB is a Swedish mining company listed on NGM Nordic SME (BAT) and Börse Stuttgart (EBM). As the foundation of the battery value chain, the company’s vision is to help Europe become self-sufficient in ethical and fully traceable battery minerals for the electric vehicle industry. The company is focused on exploration and development of several nickel-cobalt-copper projects in Europe to supply sustainably mined raw materials critical to the rapidly growing battery market.

Visit www.eurobatteryminerals.com for more information.

Augment Partners AB, e-mail: info@augment.se, phone: +46 8-604 22 55, is the company’s Mentor.