EUROPEAN LITHIUM LIMITED, page-503

Happy Friday,

The After Tax NPV was calculated in 2018 to be between A$221Mill and A$288Mill and the assumed revenue per ton Lithium hydroxide was around US$18,000.

The spot price has now reached US$53,000. If EUR would be able to lock in a price of around US$40,000 (or just below this price) in an Offtake agreement for the first year or two I would think that the NPV should be at least A$500Million. (I am very conservative on purpose.)

This would mean that EUR can move from currently 14c to about 40 to 45cents between now and commencement of production (hopefully by 2024). This of course depends on how much new equity will be raised between now and then.

A rerating may be triggered when milestones like Off take agreements and DFS with good numbers is announced.

This is just a rough estimate and something I use as guidance.

What is your view. Feel free to correct me.

K