Euro Manganese Provides Chvaletice Manganese Project and Corporate Update

Highlights:

• Assembly of the Project's Demonstration Plant (DP) at a facility in China is proceeding as planned, with cold commissioning of the plant modules set to begin this month.
• The construction permit was issued for upgrading and adapting buildings at the Chvaletice Manganese Project site that will house the DP. Site preparations for receiving and installing the DP modules are underway.
• Delivery of the DP modules to the Chvaletice site is expected early in the New Year, with hot commissioning and start-up targeted for the second quarter of 2022.
• The Project's pilot plant was restarted during October to produce small samples of high-purity manganese products for prospective customers. Sample deliveries are expected in the first quarter of 2022.
• Work on the Project's definitive feasibility study is ongoing, with all verification and testing work complete and good progress being made on engineering studies. To date, the study is tracking on schedule and on budget, with approximately 60% of physical progress complete as at the end of September, 2021.
• Euro Manganese has engaged consulting firms Minviro Ltd. and RCS Global Group to conduct a joint Life Cycle Assessment of the Chvaletice Manganese Project as part of the Company's commitment to environmental excellence.
• In September, Euro Manganese received its ISO 27001 certification for Information Security Management Systems (ISMS), recognized globally as proof that the Company's ISMS is in line with the information security best practices. At the request of prospective customers, the Company also plans to obtain a TISAX certification, which is based on the ISO 27001 standards, in order to become a trusted service provider to the European automotive industry.
  

VANCOUVER, British Columbia, Nov. 08, 2021 -- Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF; Frankfurt: E06) (the "Company" or "EMN") is pleased to provide an update on its Chvaletice Manganese Project (the "Project").

Demonstration Plant on track for Q2 2022 start-up

Work on the Company's Demonstration Plant (DP) is proceeding well at the Chvaletice project site in the Czech Republic, as well as in China, where the components of the plant are being assembled.

The DP project reached a significant milestone on September 24, 2021, with the issuance of the construction permit to upgrade two existing industrial buildings at the site that will house the DP modules. The building upgrades include electrical, plumbing, structural and ventilation work. The permit process included public input, and local communities were supportive of its issuance.

Recruitment and hiring for key DP roles has been initiated, starting with technical and administration roles, with plant workers to be hired closer to the start-up date.

Meanwhile, the components of the DP are being assembled at an industrial facility in China. Cold commissioning is beginning this month. The six main DP modules, which range from 2 to 5 metres high and 9 to 49 meters long, are being assembled on 2.2-metre steel frames in sections designed to fit into twelve 40-foot shipping containers. These are expected to be shipped to the Chvaletice site in the Czech Republic early in 2022. Hot commissioning and start-up are targeted for the second quarter of 2022. A collection of photos and a video of the latest DP assembly work has been posted on the Company's website.

The DP is designed to produce large-scale samples of high-purity manganese products for use in the supply chain qualification process of the Company's products. Approximately 55% of the first year's production has been allocated to five prospective customers who have signed non-binding memoranda of understanding (MOUs) with EMN.

Pilot plant restarted

The Project's original pilot plant, which initially operated in 2018, has been restarted to produce product samples for certain new prospective customers The pilot plant restart program is targeted to produce about 50 kg of high-purity electrolytic manganese metal (HPEMM) and 150 kg of high-purity manganese sulphate monohydrate (HPMSM) for delivery in the first quarter of 2022. The samples will allow prospective customers to continue or initiate the supply chain qualification work required prior to approval of battery raw materials for use in electric vehicles, in advance of receiving larger samples when DP production comes on stream.

Definitive Feasibility Study making good progress

The Project's definitive feasibility study continues to progress well with approximately 60% of planned work now complete. The detailed assessment of local infrastructure constraints is now underway in order to determine best solutions for grid/in-coming power connections, as well as land acquisition/access. All bench scale confirmation test work has been finalized and engineering studies are progressing well, with next steps including the solicitation of bids for major equipment packages, reagent pricing, product transportation logistics, capital and operating costs, along with the completion of high-purity manganese product pricing forecasts.

Assessments are underway to optimise use of reagents utilized in the manganese extraction and purification processes, with an objective of procuring all reagents from European sources. The feasibility study is also looking at ways to capture and re-use carbon dioxide and hydrogen that will be produced during the manganese purification process. There is potential for captured carbon dioxide to be used in other parts of the process, which would reduce the Project's carbon footprint. Hydrogen, which is normally vented safely into the atmosphere in most industrial processes, could potentially be captured and used to produce heat and reduce energy costs.

All aspects of the Project are being examined through an environmental lens, including the potential sale of gypsum and magnesium carbonate, by-products of manganese production, for use in other industrial applications, contributing to the development of a more sustainable, circular economy. The feasibility study is also evaluating the potential economic and environmental benefits of securing renewable and green sources of energy for the Project.

Final ESIA and Life Cycle Assessment

Work on the Final Environmental and Social Impact Assessment (FESIA) is underway and targeted to be completed and submitted to permitting authorities in early 2022. Recently completed work on the FESIA has included water well pump tests and expanded acoustic modelling studies. In addition, a socio-economic impact study was conducted by the Czech Republic's Charles University as part of the FESIA.

Euro Manganese has engaged respected Life Cycle Assessment (LCA) specialist firm Minviro Ltd. and leading battery raw materials audit and advisory firm, RCS Global Group, to conduct a joint LCA of the Chvaletice Manganese Project in the context of the FESIA and product commercialization activities. This is a key component of the Company's commitment to achieving environmental excellence.

Market outlook continues to strengthen

During the past year, numerous EV, battery and cathode manufacturers have announced plans to use manganese-rich battery chemistries and, according to data from Bloomberg, NEF, CPM Group and other market research firms, demand for high purity manganese and other essential battery metals such as lithium, nickel and cobalt is rising rapidly.

At the same time, the projected gap between supply and demand for battery grade manganese continues to grow. Based on recent estimates from Cairn Energy Research Advisors and CPM Group, global production of high purity manganese sulphate monohydrate - the manganese product used by most lithium-ion battery cathode makers - will need to increase 24-fold compared to 2020 levels in order to meet anticipated 2030 demand.

EMN receives ISO 27001 certification

On September 16, 2021, the Company received its ISO 27001 certification for Information Security Management Systems (ISMS). ISO 27001 is the international standard for information security that sets out the specifications for an ISMS and an ISO 27001 certificate is recognized globally as proof that a Company's ISMS is in line with the information security best practice.

At the request of prospective customers, the Company also plans to obtain a TISAX certification in order to become a service provider to the European automotive industry. TISAX, or Trusted Information Security Assessment Exchange, is a standard assessment and exchange mechanism for the European automotive industry and is based on ISO 27001 standards.

EMN's CEO, Marco Romero, commented:

"Activities on our Chvaletice Manganese Project are ramping up. In the meantime, industry trends remain positive. The electric vehicle and battery industries continue their rapid growth, and demand for battery-grade manganese products is rising along with them. We continue to work hard to prepare our project for its commercial development, resolute in our belief in its importance for Europe. To enable its successful execution, we continue to add talented individuals to our team.

"Our Chvaletice project is poised to help accelerate the EU's green transition as Europe moves to a more circular, less carbon-intensive and sustainable economy. And, because Chvaletice is designed to recycle historic mine tailings to produce an essential battery raw material in the Czech Republic, we stand to make an unprecedented contribution to the continent's rapidly emerging EV and battery supply chain."

CEO search update

As reported on June 16, 2021, EMN initiated a recruitment process to find a new CEO well-suited to leading the Company into its next phase of corporate development, as it transitions from a development company to a potential producer of high-purity manganese products. The board has been conducting an international search for several months, assisted by global executive search firm Korn Ferry. EMN board Chair John Webster commented: "It has been a very robust process and we are encouraged by the number and quality of the people who were attracted by the opportunity. We expect to announce the appointment of our new CEO soon."

About Euro Manganese Inc.

Euro Manganese Inc. is a battery materials company whose principal focus is advancing the development of the Chvaletice Manganese Project, in which it holds a 100% interest. The proposed Project entails re-processing a significant manganese deposit hosted in mine tailings from a decommissioned mine, strategically located in the Czech Republic. The Company's goal is to become a leading, competitive and environmentally superior primary producer of ultra-high-purity Manganese Products in the heart of Europe, serving the lithium-ion battery industry, as well as other high-technology applications.

The technical information in this news release concerning the Chvaletice Manganese Project was prepared under the supervision of Ms. Andrea Zaradic, P. Eng., a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Ms. Zaradic has reviewed and approved the information in this news release for which she is responsible and has consented to the inclusion of the matters in this news release based on the information in the form and context in which it appears.

Authorized for release by the CEO of Euro Manganese Inc.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) or the ASX accepts responsibility for the adequacy or accuracy of this release.

Media inquiries:
Ron Shewchuk
Director of Communications
(604) 781-2199

E-mail: info@mn25.ca
Website: www.mn25.ca

Company Address:
#709 -700 West Pender St., Vancouver, British Columbia, Canada, V6C 1G8

Forward-Looking Statements

Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such forward-looking information or statements include, without limitation, statements regarding the regulatory/permitting progress at the Project; land access for the Project; the completion and timing of the definitive feasibility study; the timing, installation of the delivery and operation of the Demonstration Plant; the Company's ability to negotiate offtake agreements with potential customers; the evaluation and development of any new business opportunities; and the Company's ability to finance the full-scale, commercial development of the Project. Further, it should be noted that no production decision has been made with respect to the Project and that such a decision will only be made based on completion of a positive feasibility study, permitting and financing having been secured.

Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed under "Risks Notice" and elsewhere in the Company's MD&A, as well as the inability to obtain regulatory approvals in a timely manner; the potential for unknown or unexpected events to cause contractual conditions to not be satisfied; unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the Company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.

Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth in the "Risks Notice" section and elsewhere in the Company's MD&A for the year ended September 30, 2020 and its Annual Information Form.