Ann: Response to Voluntary Tender Offer, page-8

KRUPA GLOBAL INVESTMENTS PROPOSES VOLUNTARY TENDER OFFER FOR UP TO 29.9%
OF OUTSTANDING SHARES/ ISSUED CAPITAL OF EUROPEAN METALS HOLDINGS
June 11, 2020, Prague, Czech Republic – Krupa Global Investments a.s., České Lithium a.s. (Czech
Lithium) and partners (“KGI”) is launching voluntary tender offer (‘‘VTO‘‘) for up to 29.9% of issued
share capital with voting rights of European Metals Holdings Limited (“EMH”). KGI is currently
holding 1.910.000 shares of EMH, more than 1% of issued capital.
KGI is offering 15.5 GBp or 0.283 AUD per share if VTO is successful. The price represents
10.5% premium to June 10, 2020 closing price of 14.02 GBp or 8.3% premium to 180 day moving
average price of 14.31 GBp. The tender offer will be valid, when acceptance threshold of 20% of all
outstanding shares of EMH will be reached amongst shareholders within 30 days acceptance period
from the offer date.
KGI has been shareholder and local supporter of EMH and their lithium mining project in Cinovec
for almost 3 years now. KGI has been advocating importance of the success of this project
on a European scale where most of the automotive and manufacturing industry is oriented. Timely
and precise execution in Cinovec is inevitable to have competitive advantage against bigger and better
capitalized mining companies from US, EU and Asia. Cinovec which has great location
in the middle of Europe holds roughly 3% of global lithium deposits. In our view, lithium is considered
as one of the key natural resources for the future of e-mobility (EV) and electricity storage
transformation in the world.
KGI is an active shareholder of EMH for years. KGI was the first shareholder to propose cooperation
with CEZ as strategically important for speedy and successful development of this project.
CEZ as a leading energy company in CEE region, based in Czech Republic, has all the necessary
instruments, capital and expertise to become relevant partner for EMH. Based on KGI´s local
experience and knowledge, CEZ’s investment was the only logical step to move forward with Cinovec
project and get all the necessary approvals and capital to lead this project to successful mining process
within couple of years. KGI welcomes definitive agreement with CEZ to fund Cinovec project up to DFS
(definitive feasibility study) and to become 51% owner of GEOMET s.r.o., direct subsidiary of EMH.
Upon successful VTO, KGI has intention to become significant long-term investor in EMH (Cinovec
Project as whole).
KGI as a Czech Investor would like to increase its stake and add value to Cinovec project via our local
knowledge and know-how. KGI would act as strong partner.
Due to the low market liquidity at London Stock Exchange (AIM) where EMH is listed, KGI decided
to launch VTO for outstanding shares of EMH. Average daily trading volume in London
at EMH is approximately 200.000 shares which is too small to increase KGI´s position significantly
via market.

https://www.krupainvestments.com/en/kgi-proposes-vto-for-up-to-29-9-of-outstanding-shares-of-emh/