European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company), is pleased to announce that Obeikan Group for Investment Company (Obeikan Group) has executed the Shareholders Agreement.

European Lithium expects to work with certain of its affiliated entities to construct and commission a large-scale lithium hydroxide processing plant in the Kingdom of Saudi Arabia to process spodumene concentrate produced from the Wolfsberg Lithium Project located in Austria

The 50%/50% JV will be geared towards developing, constructing and commissioning a lithium hydroxide processing plant, and operating the plant for the conversion of lithium spodumene concentrate from Wolfsberg. Under the Shareholders agreement, the newly established Arabian New Energy company (Arabian New Energy) seek to have an exclusive right to purchase spodumene mined from the current resource at Wolfsberg (Zone 1), and the facility is expected to be developed to meet the minimum initial capacity and product specifications based on the Company's binding Long Term Supply Agreement with BMW (refer ASX announcement dated 21 December 2022). Under the Shareholders Agreement, and subject to the successful commissioning of the Plant, the Wolfsberg Project Zone 1 will sell the lithium spodumene concentrate to the JV company over the life of the current resources of the Wolfsberg mine at a reduced rate, with a floor and ceiling price subject to final agreement of the parties. The parties will establish a Development Committee for the purpose of jointly collaborating on all key decisions in relation to the development of the Plant. Once Critical Metals Corp (CRML) has signed the Deed of Assignment (refer ASX announcement dated 2 June 2023) and the Shareholders Agreement, both agreements will become binding on all parties.

Tony Sage, Executive Chairman of EUR said: 'This is another huge milestone for the Wolfsberg project following on from the recent $US15m commitment made by BMW. We now have two very dedicated partners to ensure we fulfil our ambition of becoming the first European producers of both spodumene and hydroxide. Now after these key milestones have been achieved the next steps become a lot easier. Over the next two quarters we expect to finalize the updated DFS on the now separated projects and secure the necessary funding to commence construction. The Board of the newly formed Arabian New Energy will appoint a leading ECPM to oversee the construction of the hydroxide plant. The funding for the project will be organized from within Saudi Arabia'

Abdallah Obeikan, CEO of the Obeikan Investment Group said: 'We are pleased to have reached this agreement with European Lithium. We are convinced that our partnership will be beneficial for all stakeholders. This partnership will combine solid technical expertise of European Lithium and its affiliates with the industrialknowledge of Obeikan and the strength of Saudi Arabian financial markets. It is a strategic global collaboration to achieve the goals of Vision 2030 and to advance the development of the new industry in the Kingdom of Saudi Arabia.

About European Lithium

European Lithium Limited is an exploration and development stage mining company focused mainly on lithium in Austria, Ukraine, Ireland, and Australia. European Lithium currently holds 67,788,383 (83.03%) ordinary shares in Critical Metals. Based on the closing share price of Critical Metals being US$9.81 per share as of 2 July 2024, the Company's current investment in Critical Metals is valued at US$665,004,037 (A$997,506,056) noting that this valuation is subject to fluctuation in the share price of Critical Metals.

About Critical Metals Corp

Critical Metals Corp. is a leading mining development company focused on critical metals and minerals,and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners. Its initial flagship asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure and is expected to be the next major producer of key lithium products to support the European market. Wolfsberg is well positioned with offtake and downstream partners to become a unique and valuable building block in an expanding geostrategic critical metals portfolio. In addition, Critical Metals owns a 20% interest in prospective Austrian mineral projects previously held by European Lithium and recently entered into an agreement to acquire a 92.5% controlling interest in the Tanbreez Greenland Rare Earth Mine (refer ASX announcement 11 June 2024 and 19 June 2024).

Contact:

Email: info@europeanlithium.com

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