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27.05.2020 – 03:06

European Lithium Limited

EANS-News: European Lithium Limited
Secures Strategic Engagement Agreement with Talaxis - ATTACHMENT

  Corporate news transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is responsible for the content of this announcement.

Company Information

West Leederville - European Lithium Limited (ASX: EUR, FRA: PF8, NEX: EUR, VSE:
ELI) ("EUR" or the "Company") is pleased to announce that it has entered into a
strategic engagement agreement with Talaxis Limited ("Talaxis" ) which includes
the appointment of Talaxis and Noble Group Holdings Limited ("Noble Holdings")
executive Daniel Mamadou-Blanco as a strategic advisor to EUR. Talaxis, a
wholly-owned subsidiary of Noble Holdings, is a global leader in EV technology
metals project development. Talaxis invests and develops projects that are
related to nickel, cobalt, lithium, rare earths and other metals and materials
that are key to the energy transition.

Tony Sage EUR Non-Executive Chairman commented: "Given the unprecedented times
we live in, it is a huge coup for EUR to have secured the engagement with
Talaxis and above all the vast knowledge and experience of Daniel. The
appointment will expedite the DFS for the Company's Wolfsburg's lithium project
as the world starts to move out of the pandemic and into an EV future,
especially in Europe. "

Daniel Mamadou-Blanco Managing Director and the Global Head of Technology Metals
and Materials at Noble Holdings commented: "We are pleased to have secured a
long term strategic engagement with European Lithium. Having followed the
Wolfsberg Lithium Project for a number of years, we believe the asset is
uniquely placed to drive growth in the European battery industry given its
strategic location, metallurgically friendly lithium ore and expected production
timeline. Despite a challenging macro-economic environment in light of COVID-19,
we believe the industry's long-term fundamentals remain resilient as the
transition towards electric vehicles and renewable energy continues to
accelerate. We are proud to be partnering with European Lithium to support the
energy transition and drive long-term growth. "

Key Terms of Strategic Engagement

Key terms of the strategic engagement are as follows:
a) Talaxis will assist EUR in managing and establishing commercial relationships
and contract negotiations including:
i. Establishing, liaising and maintaining relationships with strategic partners,
such as debt and equity financiers, government / EU grant providers / financing
programs, offtake partners, logistics partners, and EPCM partners; and
ii. Management assistance with contract negotiations on key transactions and
continued support post transaction / relevant agreement.

b) Talaxis will provide strategic market research and insight to EUR covering
the lithium industry, including (but not limited to) beneficiation, processing
and refining methods, product grades and specifications, pricing metrics and
methodology, competition landscape, market supply and demand, environmental
protection, purchasing and storage activities and industry trends;

c) Talaxis' services will be provided by Noble Holdings executive, Mr Daniel
Mamadou-Blanco as a Strategic Advisor. Mr Daniel Mamadou-Blanco is currently the
Managing Director and the Global Head of Technology Metals and Materials at
Noble Holdings, one of the world's largest EV technology commodities groups, who
has over 20 years of expertise in the financial services and resource sectors in

d) Remuneration Terms:

i. Capital Introduction fees of 5% is payable on successful debt or equity

ii. Subject to ASX approval in accordance with LR 6.1 and shareholder approval,
the Company has agreed to grant Talaxis (or its nominee) 36,000,000 performance
rights in several tranches, which may convert into fully paid ordinary shares of
the Company based on the vesting and conversion conditions set out below
occurring within 5 years:
* 6,000,000 - on completion of full Definitive Feasibility funding for the
Wolfsberg Lithium Project;
* 6,000,000 - On completion of project development funding for the Wolfsberg
Lithium Project;
* 6,000,000 - On completion of commercial production at the Wolfsberg Lithium
* 6,000,000 - If the volume-weighted average share price ("VWAP") of the
Company's shares traded on the ASX or FRA equals or exceeds A $ 0.10 / share for
20 business days;
* 6,000,000 - If the VWAP of the Company's shares traded on the ASX or FRA
equals or exceeds A $ 0.20 / share for 20 business days; and
* 6,000,000 - If the VWAP of the Company's shares traded on the ASX or FRA
equals or exceeds A $ 0.30 / share for 20 business days.

e) Both parties agree to a one year minimum engagement period on a non-exclusive
basis. Talaxis must act in the best interests of EUR in providing services.

f) The agreement will continue until terminated. At the end of the initial one
year period, either party may terminate the agreement by providing 30 days
written notice to the other party. In addition, either party may terminate the
agreement in the event of a material breach of the agreement.

g) The engagement letter is subject to EUR board approval. This board approval
was received on 25 May 2020.

The strategic engagement agreement was introduced and managed by corporate
advisory firm, Empire Capital Partners (Empire Capital). The company has
executed a mandate with Empire Capital for the provision of services (mandates).
Under the terms of the Mandate, the Company has agreed to issue Empire Capital 2
million fully paid ordinary shares (Mandate Shares) and 2 million unlisted
options with an exercise price of 5c expiring on July 31, 2022 (Mandate
Options). The Mandate Shares and Mandate Options are issued under the Company's
LR 7.1 capacity and without shareholder approval.

EUR is developing its Wolfsberg Lithium Project in Austria (100% interest) where
it aims to be the first local supplier of lithium into an integrated European
battery supply chain. In April 2018, the Company completed its PFS

This announcement has been authorized for release to the ASX by the Board of the

Tony Sage
Non-Executive Chairman
European Lithium Limited
- END -

Further inquiry note:

end of announcement                         euro adhoc

Attachments with Announcement:
issuer:       European Lithium Limited
              Harrogate Street 32
              AU-WA6007 West Leederville
phone:        +61 8 6181 9792
ISIN:         AU000000EUR7
stockmarkets: Wien, Frankfurt
language:     English 

Original content of: European Lithium Limited, transmitted by news aktuell