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Chvaletice Manganese Project Mineral Resource Update, 2018 Metallurgical Testwork Program Update and Preliminary 2019 Plans

HIGHLIGHTS:

-          Successful 2018 Drilling Program results in updated Mineral Resource Estimate with 98.3% of Resource classified in Measured Category.

-          Drilling Program confirmed outstanding consistency of manganese grade and mineralogy.

-          Successful Metallurgical Testwork Program and Pilot Plant Test runs, indicating manganese can be extracted from Chvaletice tailings using a combination of proven commercial technologies.

-          Testwork Program confirmed the proposed hydrometallurgical process can produce Ultra-High-Purity Manganese Products meeting or exceeding customer specifications.

-          Plan to build and commission a Demonstration Plant in 2019 to produce multi-tonne, Ultra-High-Purity Manganese Product samples for customer testing and qualification.

-          Project timeline remains on track, with Preliminary Economic Assessment targeted for release in early 2019.

-          Targeting production of both electrolytic manganese metal and manganese sulphate monohydrate, focusing principally on Europe's rapidly emerging electric vehicle industry.

Vancouver, Canada (December 12, 2018) – Euro Manganese Inc. (TSX-V/ASX: EMN) (the "Company" or "EMN") is pleased to announce an updated resource estimate ("Resource Estimate") for its Chvaletice Manganese Project in the Czech Republic and to provide an overview of its 2018 metallurgical testwork program ("Metallurgical Testwork Program Update") and its development plans for 2019 ("2019 Plans").

Marco Romero, President and CEO of EMN, noted:

"We are extremely pleased with the outcome of the 2018 drilling program and the resulting updated Resource Estimate for the Chvaletice Manganese Project, where 98.3% of the Resource was confirmed as Measured Resources. This milestone will provide a solid foundation for detailed planning of the tailings extraction and processing schemes, and drive the project economics in our upcoming Preliminary Economic Assessment, which we currently expect to release in early 2019.

During our extensive 2018 Metallurgical Testwork Program and pilot plant tests, our in-house team made significant progress in advancing its understanding of the Chvaletice deposit and in the planning and design of a technically-viable process flowsheet. By recycling the Chvaletice waste, we are targeting production of some of the highest purity electrolytic manganese metal and manganese sulphate monohydrate available in the world today, while setting the stage for compliance with very high health, safety and environmental standards.

In 2018 we have seen a continuous stream of announcements and reports of important new developments and investments in the lithium battery industry in Europe, North America and Asia. The Chvaletice Manganese Project is strategically located in the Czech Republic, amidst a major emerging cluster of electric vehicle plants that have started to serve local and export markets. This transformation of the entire European auto industry is giving birth to an entire ecosystem of battery factories, precursor and cathode makers, recyclers, and related battery raw materials supply chains."

Updated Chvaletice Manganese Project Resource

During the summer of 2018, EMN conducted a second campaign of drilling at the Chvaletice Manganese Project (the "Project") with a total of 80 holes, totalling 1,509.5 m.  The program included completion of 35 vertical and 19 inclined 100 mm diameter Sonic holes, totalling 1,409.5 m, to supplement 80 holes, totalling 1,679.3 m completed in 2017.  An additional 26 mobile percussion drill holes, totalling 100 m, were completed around the perimeter embankments of the tailings piles in areas which were not previously accessed for sampling.  The tailings material observed, sampled and analysed was generally consistent in terms of total and soluble manganese grades, and mineralogy. The combined sampling and analytical data set from the 2017 and 2018 drill programs total 3,188.8 m of drilling, which was utilized to develop the updated Resource Estimate.

The updated NI 43-101 Mineral Resource Estimate has resulted in a reclassification of all tailings contained in the three Chvaletice Tailings piles to Measured and Indicated Categories. The Project's total Measured and Indicated Resources now amount to 26,960,000 tonnes, grading 7.33% total manganese and 5.86% soluble manganese, as detailed in Table 1 below:

NOTES:

1. Estimated in accordance with the Canadian Institution of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM council, as amended, which are materially identical to the Joint Ore Reserves Committee Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 Edition ("JORC Code").
2. The Chvaletice Mineral Resource has a reasonable prospect for eventual economic extraction. Mineral Resources do not have demonstrated economic viability, and no Mineral Reserves have been defined for the Project.
3. Indicated Resources have lower confidence that Measured Resources.
4. A cut-off grade has not been applied; the estimated break-even cut-off grade falls below the minimum grade of the block model.
5. Grade capping has not been applied.
6. Numbers may not add exactly due to rounding.

Image 2: 2017 and 2018 Drill Programs Hole Layout.

Tetra Tech Inc. ("Tetra Tech"), located in Vancouver, British Columbia, Canada, a leading provider of consulting, engineering, program management, construction management and technical services worldwide, were engaged to oversee the planning and execution of sampling and assaying, to prepare the updated Resource Estimate for EMN's Chvaletice Manganese Project, to prepare the Technical Report in accordance with National Instrument 43-101 - Standards and Disclosures for Mineral Projects, and to prepare the independent JORC Code technical report in accordance with the JORC Code, 2012 Edition. 

Preliminary 2019 Plans

EMN is targeting the completion and release of a NI 43-101 compliant PEA for the Chvaletice Manganese Project in early 2019 and, subject to its acceptance by EMN's Board of Directors, to subsequently initiate a feasibility study. Planning is underway to design, build and commission a demonstration plant in the Czech Republic to provide bulk, multi-tonne finished product samples for customer tests and qualification. The Demonstration Plant is also expected to serve as a testing and training facility for future operations. Once the PEA is complete, EMN also expects to file a formal project description and notification with Czech regulatory agencies and local communities. Following a consultative and statutory comment period, EMN plans to file its Environmental Impact Assessment and related permit applications.

Please follow the link to view entire original news release in English language:

https://www.asx.com.au/asxpdf/20181213/pdf/4416b8xtcr43b2.pdf

About Euro Manganese Inc. (EMN).

Euro Manganese Inc. is a Canadian mineral resource company, whose principal focus is advancing the evaluation and 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 historic mine tailings, strategically-located in the Czech Republic. EMN's goal is to become a leading, competitive and environmentally-superior supplier of Ultra-High-Purity Manganese Products, serving both the lithium-ion battery industry, as well as producers of specialty steel and aluminum alloys.

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

Contact:

Mr. Marco A. Romero,

President & CEO

(604)-681-1010 ext. 101

info@mn25.ca  Website: www.mn25.ca