23 October 2023

Europa Metals Ltd

("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)

Toral Mining Licence Application process completed

Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce the formal application for a mining licence has been completed over the Company's 100% owned Toral Pb, Zn & Ag project ("Toral" or the "Toral Project").

This application forms part of the 2023 exploration campaign agreed by Europa Metals Ltd ("Europa Metals" or the "Company") and Denarius Metals Corp (TSXV: DSLV; OTCQX: DNSRF) ("Denarius") pursuant to the definitive option agreement dated 22 November 2022, further details of which are set out in the Company's announcement of 23 November 2022.

 Highlights:

·    Submission to the "Junta of Castilla and Leon" completed.

·    All necessary documentation covering the exploitation, restoration and environmental impact study were submitted.

·    The submission envisages a life of mine of 15 years, mining on average 700,000t of ore per year from underground.

·    Including pre-production and closure plans, Toral's 18 year operations will create over 360 direct local employment opportunities and approximately 1,400 indirect jobs in the region.

·    This submission has been based on the deposit whose technical, economic and environmental feasibility is in accordance with the laws and regulations of the region of Castilla y Leon.

·    Such project assessment will be formally reported on in the expected preliminary economic assessment in accordance with the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") Definition Standards incorporated by reference in National Instrument 43-101 expected to be prepared in 2024.

Commenting today, Myles Campion, Executive Chairman and acting CEO of Europa Metals said:

"Following the completion of our last report, we are now very pleased to announce that we have completed the formal submission of the Mining Licence Application to the Junta of Castille and Leon. This milestone for the Toral project has been achieved over the last 3-4 years with the application of dedicated teamwork through the process of exploration, evaluation and the prosecution of planning.

The Company has overcome a few hurdles during this period, Covid being one of them, but all thanks goes to the team on the ground in Spain in being flexible and adapting to both physical and financial constraints and being able to achieve this milestone.

We now look forward to continuing our work with Denarius over the coming years; 2024 will see the recommencement of drilling and work commence on a preliminary economic assessment."

Mining Licence Application

Formal application for a mining licence has been completed over the Company's 100% owned Toral Pb, Zn & Ag project. All necessary studies have now been completed and lodged with the relevant authorities and departments within the Castille and Leon regional government. Along with the application, the following documents were submitted:

Exploitation Plan

Due to the subvertical geometry of the Toral deposit and its combination of depth and thickness, underground mining is considered to be the most technically, economically, and environmentally viable development option.

See pdf at the following link for figure 1
http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf

Figure 1 General on surface facilities layout distribution

The basis for the development plan utilised the existing JORC resource from November 2022; since the beginning of 2023 the Company's Spanish engineering group, Mining Sense, has applied many factors to this Resource such as commodity pricing, base load power costs, dilution factors and tradeoff studies with the objective of reviewing various development scenarios. Based on the work carried out, it was determined that the extension, volume and ore grades have been duly estimated to define a mineable deposit whose technical, economic and environmental feasibility is supported by the documentation and in accordance with the laws and regulations of the region of Castille y Leon. Such project assessment will be formally reported on in the expected preliminary economic assessment to national Instrument standards 43-101 expected to be published in 2024.

See pdf at the following link for figure 2
http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf

Figure 2 Underground mine 3D view

This initial assessment, submitted together with the request for Certified Engineer ("CE") approval, would generate zinc and lead/silver concentrates over the mine's 15 years of production.

The mining project is composed of three phases:

1.   Construction phase, in which the construction of the main facilities such as road access, treatment plant and offices will be carried out, in addition to starting with the development of the access ramp for mine exploitation. This stage will have a duration of one and a half years;

2.   Exploitation phase, once the construction of the main facilities has been completed and the first production level has been reached, the exploitation of the ore will begin. This stage will last 15 years until the exhaustion of the current delineated mineralisation; and

3.   Restoration phase, once the exploitation is completed, the area comprising the facilities will be restored with the dismantling of the buildings, as well as the mine tailings dump.

The mining method selected is a combination of mechanised cut and fill (MCAF), in the upper narrower zone, with sublevel mining method with backfill in the deeper and wider zone. The backfilling of the void created by the mining of the ore will use part of the tailings obtained in the mine and the process tailings combined to form a paste fill. This will have a very positive effect from an environmental point of view by reducing the amount of waste to be deposited outside.

The ore will be treated by a first stage of ore sorting following by conventional flotation of lead and zinc, producing the corresponding concentrates that carry other elements with economic value such as silver in the lead concentrate. The ore treatment plant recirculates almost all its process water.

See pdf at the following link for figure 3
http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf

Figure 3 Process plant and administration buildings

It is estimated that the Toral project will generate approximately 360 direct jobs and approximately 1,400 indirect jobs.

Restoration Plan

The total area occupied by the project facilities is 33.2 hectares measured in plan, of which about 7 hectares are currently the disused limestone quarry, La Estrella, which as part of Toral's restoration plan is to be rehabilitated by back filling with waste rock from the mine.

This is a focus and main objective of the rehabilitation plan, the existing quarry has a surface footprint of 7 Ha, with the plan to restore the quarry to 13.7 hectares utilising the waste rock from underground mining to back fill and rehabilitate the old quarry. This will not only remove an eyesore on the landscape but also provide new viewpoints for El Bierzo landscape.

See pdf at the following link for figure 4
http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf

Figure 4 Existing quarry and waste dump limits

The final topography of the backfilled quarry recovers the continuity of the trend of hills in the area.

See pdf at the following link for figure 5
http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf

Figure 5 3D view of the backfilled quarry.

Environmental Impact Study ("EIS")

The EIS includes a detailed characterisation of the area where the project will be developed. Specific studies have been carried out, including:

·    Perceptual physical media:

o  Atmospheric dispersion study

o  Pre-operational acoustic study

o  Hydrological-hydrogeological study

o  Landscape integration study

·    Natural media:

o  Vegetation and community interest habitats study & survey

o  Aquatic animal species study & survey

o  Reptiles and amphibious study & survey

o  Birds study & survey

o  Mammals study & survey

o  Specific study and survey on bats

·    Social and economical study

·    Traffic on public roads study

·    Inventory of territory, spatial and urban planning and the cultural environment

The EIS includes the summary of the project, the alternatives considered before selecting the final project, a detailed flora and fauna characterisation of the project, the envisaged impacts on the project and measures put in place for protection, surveillance and monitoring the ongoing environmental program.

Competent Person's Statement

The exploration results and activity reported in this announcement have been compiled and reviewed by Mr Luis J. Pérez who is a Member of the Australian Institute of Geoscientists (AIG) and a European Geologist (EurGeol). Mr Pérez has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ("JORC Code"). Mr Pérez consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

For further information on the Company, please visit www.europametals.com or contact:

Europa Metals Ltd

Dan Smith, Non-Executive Director and Company Secretary (Australia)

T: +61 417 978 955

Myles Campion, Executive Chairman and acting CEO (UK)

T: +44 (0)20 3289 9923

Beaumont Cornish (Nominated Adviser/Broker)

James Biddle/ Felicity Geidt

T: +44 (0)20 7628 3396

Questco Corporate Advisory Proprietary Limited (JSE Sponsor)

Danielle Christodoulou

T: +27 (11) 011 9212

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.