Ann: Drilling Commences at Lemare Lithium Project-PLP.AX, page-35

1. Under the terms of the Agreement, Lepidico has granted European Metals an option to acquire a licence to use the L-Max® technology for the Cinovec project in the Czech Republic for consideration of $20,000 in cash. The option will be valid for 12 months, and can be renewed for a further 12 months by payment of an additional option fee of $25,000.
   
   Upon exercise of the option, Lepidico will issue a licence and European Metals will:
   
   
   •  Pay Lepidico $30,000 cash and issue to Lepidico 890,215 European Metals fully paid ordinary shares
     
     
   •  Undertake an L-Max® mini-plant test run on Cinovec ore
     
     
   •  Pay Lepidico a gross product royalty of 2% on all sales relating to lithium chemicals and
     
     other by-products produced using the L-Max® technology.
     
     ASX/Media Announcement
     
     Perth: 2 May 2016
     
     
     Feed Rate: 2Mtpa
     Feed Grade: Average mining inventory grade of the Indicated Mineral Resource area with modifying factors applied of; planned dilution and losses of 7%; unplanned dilution and losses of 3%
     Mining Cost: US$27.04/t
     Gravity Processing Cost: US$11.24/t
     Lithium Carbonate Processing Cost: US$39.14/t
     Tin Recovery: 80%
     Tungsten Recovery: 70%
     Lithium Recovery: 70%
     Royalty: 2%
     Smelter Terms for Tin: Standard industry charges
     Conceptual tin production: 4,200 tpa
     Conceptual tungsten production: 800 tpa
     Conceptual lithium carbonate production: 19,400 tpa
     Conceptual total yearly operating cost: US$125m
     Conceptual total yearly revenue: US$233m (using US$22,500/t Sn, US$330/mtu W APT, US$6,500/t lithium carbonate)
     
     So Royalty from emh is 2%*19,400*6500 /0.75 = $3.36 million
     
     If P/E =15 , Plp market value equal to $50.4 million, Plp has share issue 1730 million, current market value is only $22.5 million. Emh's success vey much depend on the L - max .