Eurobattery Minerals continuing to realize its business strategy – publishes year-end report January – December 2021

Stockholm, 22nd of February 2022 – Eurobattery Minerals started and completed a new drilling campaign in its Finnish Hautalampi project in the fourth quarter. In addition, the company completed a drilling campaign in the Spanish Corcel project and, at the beginning of Q1 2022, obtained initial results from the same battery mineral project, indicating a 60 million tonnes mineral reserve with 0.25% nickel. Further to this, the company joined two important sustainability collaborations. With this, the company continues to realize its business strategy providing European mined battery minerals to the electric vehicle and green energy solutions industries. Eurobattery Minerals target is to produce and deliver battery minerals in medium term.

Fourth quarter 2021 (same period previous year)

• Net sales amounted to SEK 0 thousand (SEK 0 thousand).
• Operating income after depreciation/amortisation and financial items totalled SEK -4,160 thousand (SEK -5,336 thousand).
• Earnings per share after depreciation/amortisation and financial items amounted to SEK -0.26 (SEK -0.34).
• Cash flow from operating activities was SEK -5,392 thousand (SEK -5,786 thousand).

Full-year 2021 (same period previous year)

• Net sales amounted to SEK 0 thousand (SEK 0 thousand).
• Operating income after depreciation/amortisation and financial items totalled SEK -16,623 thousand (SEK -14,028 thousand).
• Earnings per share after depreciation/amortisation and financial items amounted to SEK -1.06 (SEK -0.89).
• Cash flow from operating activities was SEK -22,287 thousand (SEK -14,071 thousand).

Significant events during the fourth quarter (October–December 2021)

• Eurobattery Minerals announced the start of a new drilling campaign at its Finnish battery mineral project targeting the Hautalampi project resource increase. The campaign will cover the previously non-drilled gap area between the Hautalampi deposit and the north-eastern extension of the Mökkivaara deposits, and aims to verify resources between these already established deposits. An earlier drilling campaign in 2020 confirmed a resource increase of approximately 100%. With a target of approximately 5,000 metres of new drilling, the campaign will be finalised in early 2022.
• Eurobattery Minerals AB announced that FinnCobalt Oy has informed the company that it has joined BATTRACE, a Finnish research project focusing on traceability and sustainable processing of battery metals. Eurobattery Minerals has the option to acquire 100% of FinnCobalt Oy in a staged acquisition.
• Eurobattery Minerals announced the completion of the drilling campaigns in its Hautalampi project in Finland and its Corcel project in Spain. The campaigns have been completed on schedule and on budget. The drill cores have been dispatched to a laboratory operated by ALS to verify the resources. Due to delays at the lab because of the Covid-19 pandemic, the results will be presented in the first quarter of 2022.

Significant events after the period

• Eurobattery Minerals announced 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. With an estimated 60 million tonnes with 0.25% nickel, the company believes the results are highly satisfactory for the continued projection of the Corcel resource.
• Eurobattery Minerals AB announced that FinnCobalt Oy has informed the company about its expansion in eastern Finland with a new granted reservation for applying an exploration permit over the highly prospective Varislahti prospect. The prospect covers over 23.6 km2 of ground highly prospective for Outokumpu-type deposits (cobalt-copper-nickel-zinc-gold). Eurobattery Minerals has the option to acquire 100% of FinnCobalt Oy in a staged acquisition.

Summary of comments from Eurobattery Minerals CEO Roberto García Martínez:

“Q4 concludes another eventful year for Eurobattery Minerals. In this quarter, we focused fully on our battery minerals projects in Finland and Spain, with drilling campaigns finalised on time and according to budget in both projects. 

The two campaigns completed as part of the Hautalampi project and the Corcel project in the last quarter of 2021 are particularly significant. The world-leading ALS lab is still analysing the results from the two campaigns. Furthermore, and this is the significant part, the results will also be certified in accordance with two different but similar mining standards. In Corcel, the certification will be the National Instrument (NI) 43-101. This is a codified set of rules and guidelines for reporting and displaying information related to mineral properties. In Hautalampi, the JORC Code will be applied, which is a professional code of practice that sets minimum standards for public reporting of minerals exploration results. With results from these two in hand, Eurobattery Minerals will gain an even better overview of the mineral potential, thereby allowing us to decide the next steps for the two projects.

We announced preliminary results from our drilling operations in Corcel at the beginning of this year. With analyses ready from two of seven drill cores, results suggest that the Corcel battery mineral deposit consists of at least 60 million tonnes with a nickel grade as high as 0.25 per cent. The results confirm that an open-pit mine is possible in Corcel, which is much more cost efficient than an underground mine.  

I am happy to say that in Q4, we also joined the Finnish government-sponsored project BATTRACE. The research project focuses on traceability and sustainable processing of battery metals. We also joined the “Leaders for climate action,” an action-driven climate community comprising more than 1,600 member organisations across 36 countries – Eurobattery minerals is one of them.

Eurobattery Minerals AB’s Year-end Report January – December 2021 is attached to this press release and is available to download from the Company’s website: https://investors.eurobatteryminerals.com/en/economic-reports/.

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 22nd of February 2022 at 08:00 CEST.

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.