Eurobattery Minerals AB Interim Report January – September 2020

Third quarter 2020 (same period previous year)

• Net sales amounted to SEK 0 thousand (SEK 0 thousand).
• Operating income after depreciation/amortisation and financial items totalled SEK –3,510 thousand (SEK –2,421 thousand).
• Earnings per share after depreciation/amortisation and financial items amounted to SEK –0.25 (SEK –0.24).
• Cash flow from operating activities was SEK –4,777 thousand (SEK –3,620 thousand).

First nine months of 2020 (same period previous year)

• Net sales amounted to SEK 0 thousand (SEK 0 thousand).
• Operating income after depreciation/amortisation and financial items totalled SEK –8,692 thousand (SEK –9,261 thousand).
• Earnings per share after depreciation/amortisation and financial items amounted to SEK –0.74 (SEK –0.96).
• Cash flow from operating activities was SEK –8,423 thousand (SEK –9,284 thousand).

Significant events during the period

• Drilling commenced at the Hautalampi Nickel-Cobalt-Copper (Ni-Co-Cu) Project, Outokumpu, eastern Finland. Initial drilling programme aimed at expanding the historic mineral resource estimate of 3.2 Mt @ 0.43% Ni, 0.35% Cu and 0.12% Co.[1]
• The Company completed a rights issue, which was subscribed to 209 percent and raised SEK 47.3 million before issue costs. The number of shares increased by 3,938,142 to 13,783,499. The subscription price in the rights issue was SEK 24.00 per unit, where one unit consists of two shares and one warrant.[2]
• The process for advancing the Environmental Impact Assessment procedure for combined mining and processing at Hautalampi commenced. It is anticipated that the EIA procedure will be completed within twelve months. This will be immediately followed by the Environmental Permit Application.[3]
• Mineral tests conducted by SGS Canada at the Corcel Project in Spain confirm the economical grade nickel sulphide findings and further confirm the broader prospectively of the Castriz project area.[4]
• The European Raw Materials Alliance (ERMA), of which the Company is a member, officially launched on 29 September 2020. The purpose of ERMA is to secure access to strategic metals and minerals, advanced materials, as well as industrial processing know-how, focusing on sustainability.[5]

Significant events after the period

• The price of the warrants issued as part of the July rights issue was set at SEK 12.00.[6] The exercise period for the warrants expired in October with a 96-percent subscription rate. This means that the Company will receive proceeds of approximately SEK 22.7 million before issue costs. The number of shares in the Company will amount to 15,679,318 and the share capital will amount to SEK 15,679,318.[7]
• The Company has joined the Initiative for Responsible Mining Assurance (IRMA). The membership is one of several important steps in the Company’s efforts to provide ethical and traceable battery minerals.[8]
• Eurobattery Minerals announced the completion of phase 1 drilling at the Hautalampi Project in central Finland. A total of 29 drill holes have been completed for a total of 3,769 metres confirming high grade cobalt and nickel.[9]
• FinnCobalt Oyj (formerly Vulcan Hautalampi Oy) has informed the Company about its expansion in eastern Finland. FinnCobalt Oyj has been granted a new reservation permit for exploration over the highly prospective Hietajärvi Project, which covers over 289 km2 of ground highly prospective for cobalt, copper, nickel and zinc deposits.[10]

Summary of CEO comments:

“During the third quarter, we have developed our operations further across our projects in Finland, Spain and Sweden, and overall as a company via a successful rights issue subscribed to 209 percent. In combination with the warrant trade finalised in late October, we have raised an additional SEK 70 million for the Company, enabling us to advance our operations.

We have also joined the EU funded European Raw Material Alliance (ERMA) with the purpose to secure access to strategic metals and minerals, advanced materials, as well as industrial processing know-how, focusing on sustainability. In our efforts to provide ethical and traceable battery minerals, we also joined the initiative for responsible mining assurance (IRMA). Sustainable mining is at the core of our business strategy, so we look forward to collaborating with IRMA in the future”

Eurobattery Minerals AB Interim Report January – September 2020 is attached to this press release and is available to download from the Company’s website:

https://investors.eurobatteryminerals.com//en/economic-reports/

For further information, please contact:

Roberto García Martínez, CEO

Email: roberto@eurobatteryminerals.com

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 18th of November 2020 at 08:00 CEST.

Eurobattery Minerals in brief

Eurobattery Minerals AB is a Swedish mining company listed on NGM Nordic SME (BAT). 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 raw material critical to the expanding electric vehicle battery market. Please visit www.eurobatteryminerals.com for more information.

Augment Partners AB, tel. +46 8 505 651 72, email: info@augment.se is Eurobattery Minerals’ Mentor

[1] Drilling to commence at the Hautalampi project, Finland, press release 09/07/2020.

[2] Eurobattery Minerals’ rights issue subscribed to 209 per cent, the company will receive sek 47.3 million, press release 17/07/2020.

[3] Hautalampi project Environmental Impact Assessment procedure commenced, press release 17/08/2020.

[4] Mineral tests confirm economical grade nickel sulphide at Corcel, press release 21/09/2020.

[5] Eurobattery Minerals is part of the European Raw Materials Alliance launched today, press release 29/09/2020.

[6] The subscription price for the warrants of series 2020:1 has been set to SEK 12.00 and the exercise period begins on Monday 5 October 2020, press release 02/10/2020.

[7] Eurobattery Minerals receives approximately SEK 22.7 million through warrant redemption, press release 21/10/2020.

[8] Eurobattery Minerals becomes member of global responsible mining initiative, press release 07/10/2020.

[9] High grade cobalt and nickel at Hautalampi project in Finland, press release 13/10/2020.

[10] New granted reservation permit for exploration in Finland, press release 14/10/2020.