Europa Metals, the European focused lead, zinc and silver developer, is pleased to provide a corporate and operational update further to the cost and strategic review announced on 18 November 2021 and including details of the planned work during the first half of 2022 at the Company's wholly owned Toral lead, zinc and silver project in the Castilla y Leon region, Spain.

Corporate

Further to the Board's comprehensive internal review process, the Company is implementing a cost reduction strategy in order to maximise the deployment of existing cash resources on both the Toral Project and the identification and assessment of potential new projects and opportunities for the Company.

Accordingly, pursuant to the cost reduction programme, with effect from 1 January 2022 three of the Company's existing directors (being Messrs Read, Campion and Kirby) (together, the 'Participating Directors') have agreed to the deferral/accrual of 50 per cent. of their director remuneration (comprising consulting fees and/or salaries) in respect of the 2022 calendar year, with such accrued remuneration to then be settled via the issue of new ordinary shares in the capital of the Company ('Ordinary Shares') (the 'Proposed Fee Deferral and Conversion'). Under the terms of the Proposed Fee Deferral and Conversion, the following mechanism is to be used to determine the quantum of shares to be issued to the Participating Directors in lieu of the cash remuneration to which they would otherwise have been entitled: 50 per cent. of each individual Participating Director's fees/salary will accrue from 1 January 2022; Accrued fees/salaries will be converted into new Ordinary Shares, with accruals for the period from 1 january 2022 to 30 June 2022 expected to be converted and the requisite shares issued in July 2022, and accruals for the period from 1 July 2022 to 31 December 2022 expected to be converted and the requisite shares issued in January 2023 and The total number of new Ordinary Shares to be issued and allotted in July 2022 and January 2023 in settlement of the monthly amounts accrued is to be determined by applying the relevant monthly volume weighted average price ('VWAP') for the Company's Ordinary Shares on AIM and relevant month end AUD:GBP exchange rate, as applicable.

The proposed issue of Ordinary Shares to the Participating Directors pursuant to the terms of the Proposed Fee Deferral and Conversion, as detailed above, is deemed to constitute a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the Company's independent director for the purposes of such share issues, being Daniel Smith (who is not participating), having consulted with the Company's Nominated Adviser, Strand Hanson Limited, considers that the terms of the proposed share issues to the Participating Directors under the Proposed Fee Deferral and Conversion are fair and reasonable insofar as the Company's shareholders are concerned.

Certain additional cost reductions have been identified and implemented at the Group level with further cost savings intended to be rolled out over the coming months. Whilst the Toral Project is already at an advanced stage, the Company is initiating a further series of work programmes, including additional geotechnical and resource drilling, in order to continue to de-risk it. As announced previously, a transaction review team has also been established to assess a series of potential new projects and opportunities, primarily in the precious metals and energy sectors, in order to determine whether deployment of our exploration expertise on new assets could potentially generate significant additional value for shareholders.

Contact:

Dan Smith

Tel: +61 417 978 955

Email: info@europametals.com

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