EMN.V · 2026-05-14 12:00:00

Euro Manganese Announces Positive Preliminary Economic Assessment EMN Responds to Market with Solid Economics, Increased Recoveries, and New Commercial Plant Optionality

Economic Studies Corporate Updates

Euro Manganese Announces Positive

Preliminary Economic Assessment

EMN Responds to Market with Solid Economics, Increased

Recoveries, and New Commercial Plant Optionality

Vancouver, British Columbia--(Newsfile Corp. - May 14, 2026) - Euro Manganese Inc. (TSXV: EMN)

(ASX: EMN) (FSE: E060) and its subsidiary Mangan Chvaletice, s.r.o. ("Mangan" and together the

"Company",

Euro Manganese

" or "

EMN

") is pleased to announce the results of a new Preliminary

Economic Assessment ("PEA") for the development of its Chvaletice Manganese Project ("Chvaletice

Manganese Project", "CMP", or "Project") in the Czech Republic.

The PEA is a result of the Company's Optimization Program previously announced

, and builds on the

extensive knowledge presented in the Company's Technical Report and Feasibility Study for the

Chvaletice Manganese Project, Czech Republic, dated effective July 27, 2022

[2]

, (the "2022 Feasibility

Study"). The PEA responds to current market conditions and incorporates the Company's testing

campaigns, demonstration plant learnings, and prospective customer testing and feedback to provide

an updated preliminary and conceptual development path for the Chvaletice Manganese Project.

With most permits secured, a finalized Environmental Impact Assessment ("ESIA"), and official

designation as a Strategic Deposit under Czech law and a Strategic Project under the EU Critical Raw

Materials Act,

Euro Manganese is ready to respond to

customers seeking a fully traceable battery-grade

manganese supply chain, reducing dependence on Chinese sources and supporting strategic mineral

independence objectives.

The Chvaletice Manganese Project is well placed to take advantage of U.S. federal procurement and

incentive frameworks that increasingly require that critical battery materials — including high-purity

manganese used in electric vehicle and energy storage applications — be sourced from allied and US

National Defense Act ("NDAA") compliant nations. The Czech Republic, as a NATO member and close

U.S. ally, qualifies as an NDAA-compliant source country.

HIGHLIGHTS

(

All economic values are in US dollars unless indicated otherwise

)

Strong Operating Margin

of 48%, demonstrating resilience of the Project and the potential to

generate significant returns across commodity price cycles.

Robust Returns:

Pre-tax IRR of 16.0% and Post-tax IRR of 13.8%, underpinned by a pre-tax

NPV of $740M and post-tax NPV of $492M (8% discount rate), showing favorable preliminary

economic indicators on historically conservative pricing assumptions.

Higher Recoveries,

60% for High-Purity Manganese Sulphate Monohydrate (HPMSM) and 61%

for High Purity Manganese Metal (HPEMM), reflecting additional metallurgical test work,

operational learnings from the demonstration plant, and process engineering updates.

Revised Flowsheet

supports 50,000 tpa of HPEMM with full conversion to 150,000 tpa of

HPMSM, aligning with battery industry demand while maintaining flexibility to deliver both HPEMM

and HPMSM products as customer needs evolve.

Newly incorporated

magnesium carbonate ("MgCO

") resource as a by-product enables

production of up to 20,000 tpa MgCO

, adding incremental value with minimal capital.

CAPEX costs remain broadly consistent

with the 2022 Feasibility Study, including with

increased HPMSM output, despite an inflationary environment.

OPEX reduced

for per unit cost of HPMSM compared to the 2022 Feasibility Study, due to

increased production of HPMSM and updated reagents and energy costs.

Updated pricing assumptions

demonstrates potential economic viability of the Project even

under conservative current market conditions, underscoring its durability through price cycles.

Phased development

reduces upfront capital requirements, lowers funding risk, and allows

further optimization before full-scale expansion.

Phase II buildout

planned shortly after Phase I commissioning to maximize project value and

shareholder returns.

Initial Capital

, Phase One (50% capacity): $627.5M; Plant Capacity Expansion Capital, Phase

Two (to 100% capacity): $197.8M.

Annual nominal production

: 150,000 tpa HPMSM.

Project life

: 26 years.

Average life of project HPMSM price

assumed at $2,888 per tonne.

NEXT STEPS

The PEA has enabled the Company to optimize inputs based on current pricing, establishing the

possibility for a two-stage construction strategy. This phased approach has the potential to allow for

further optimization in phase two, lower upfront capital requirements, and enhance project economics by

aligning investment with cash flow.

The Company will now advance the Chvaletice Manganese Project further towards a full feasibility study,

with a targeted completion in H1 2027.

The Company will also continue to monitor high purity manganese markets and strategic sectors to

which it contributes, including energy transition, grid-scale energy storage, e-mobility and aerospace and

defence technologies.

The Company will continue to engage with potential customers to secure additional offtake term sheets,

pursue offtake agreements, and continue product testing.

In addition, during 2026, the Company is focused on the following key priorities to position the Project for

its next development phase by:

Advancing the financing strategy by securing funding for Project priorities and progressing

strategic financing discussions with potential partners;

Completing the acquisition of, or access to, the remaining land surface rights required for full

Project development;

Strengthening the Project's regulatory foundation through the continuous advancement of

permitting, further reducing development risk and demonstrating Project readiness; and

Maximizing non-dilutive capital by actively pursuing grants and incentives available from the EU

and the Czech state.

Martina Blahova, President & CEO of Euro Manganese, commented:

"The publication of these PEA results marks another important milestone for the Chvaletice

Manganese Project. Our recent optimization work has delivered measurable improvements in

recovery, confirming both the strength of our technical strategy and the reliability of our process. To

enhance capital efficiency and align investment with market demand, we have adopted a phased

construction approach that maximizes value while reducing execution risk. The addition of by-product

revenue stream further incrementally strengthens the economics of the project.

"This disciplined approach, coupled with conservative product pricing assumptions, supports a robust

project profile with a strong operating margin of 48%, underscoring the Project's ability to perform

through market cycles. Despite the challenging market and pricing conditions, the PEA results

demonstrate the strength and resilience of the Project. It provides a clear pathway to unlocking the full

long-term value of the Chvaletice Manganese Project as demand accelerates for localized, traceable,

and sustainably produced battery grade high purity manganese. We are built to perform in volatile

markets, engineered for operational efficiency, and positioned to play a strategic role in securing

resource independence and reducing vulnerability amid an increasingly complex global landscape."

Rick Anthon, Chairman of Euro Manganese, commented:

"As a Board, we are encouraged by the progress reflected in this PEA and confident the Chvaletice

Manganese Project can deliver on these terms for its shareholders, customers and stakeholders. The

team has advanced the Project with a clear focus on technical rigour, capital efficiency, and

responsible development. The phased construction strategy and strengthened economic profile

demonstrate a thoughtful approach to building a long-life asset that can scale with market demand.

"With no operating manganese mines in Europe and as the only integrated high purity manganese

producer in Europe and North America, the Chvaletice Manganese Project is uniquely positioned to

become a cornerstone of Europe's emerging battery materials supply chain. The Project's strategic

relevance, combined with its strong environmental credentials and growing commercial traction,

reinforces our confidence in its long-term value. We believe the foundations are now firmly in place for

Chvaletice Manganese Project to move toward the next stage of development and deliver meaningful

returns for shareholders."

PEA SUMMARY AND ECONOMIC ANALYSIS

The PEA was completed by Tetra Tech Canada Inc. ("Tetra Tech"). A NI 43-101 technical report on the

PEA will be filed under the Company's profile on SEDAR+ within 45 days of this news release and made

available on the Company's website. A JORC report will be lodged with the Australian Securities

Exchange ("ASX") ASX shortly thereafter.

The following summarizes the material assumptions used in, and the results of, the PEA, assuming a

targeted start of production in 2032.

Table 1: Economic and Operations Summary (M = Millions, K = Thousands)

Product Price Assumptions

Life of

Project/Average

High purity manganese sulphate monohydrate ("HPMSM")

(1)

$2,888 per tonne

Capital Requirements

Initial Capital requirements (Phase I)

$627.5 M

Plant Capacity Expansion Phase II, Year 1 to 3

$197.8 M

Sustaining Capital - Mining

$10.0 M

Sustaining Capital - Residue Storage Facility

$101.1 M

Sustaining Capital - Process & Others

$28.0 M

Total Capital Expenditure

$964.4 M

Operating Costs (per tonne plant feed)

Tailings extraction

$2.11/t

Magnetic separation and HPMSM processing, including Magnesium Carbonate

$138.30/t

Residue stacking/storage, site services, and water treatment

$0.61/t

General and administrative

$11.01/t

Overall Site Services, including Site Water Treatment

$21.90/t

Contingency on operating costs

$8.67/t

Total on Site Costs

$181.99/t

Freight and Insurance, Selling costs and Royalties (per tonne plant feed)

Freight and insurance, and selling costs

$20.82/t

Czech Government royalty

(2)

$4.50/t

Czech Landowner Royalties

$6.41/t

Total site and off-site cost per tonne plant feed

$213.71/t

Production Summary

Life of project operations

26 years

Chvaletice tailings extracted & processed

26,960 K tonnes

Total manganese grade

7.32%

Contained Manganese (Mn)

1,975 K tonnes

Total magnesium grade

1.15%

Contained magnesium (Mg)

311 K tonnes

HPMSM produced/sold

3,652 K tonnes

Total Mn contained in HPMSM

1,185 K tonnes

Overall Mn in HPEMM recovery

61.0%

Overall Mn in HPMSM recovery

60.0%

Overall Mg in Magnesium Carbonate Recovery

46.0%

Project Economics

Before-Tax

After-Tax

Cumulative Cash Flow, undiscounted

$4,304.4 M

$3,353 M

Net Present Value, (8% real discount rate) - Base Case

$740.0 M

$492.1 M

Internal Rate of Return

16.0%

13.8%

Payback (from start of processing)

6.5 Years

7.3 Years

Pre-tax Operating Margin

48%

Notes:

Average real selling prices per tonne of HPMSM (MnSO4·H2O, >32% Mn) are based on the market study prepared for the Company by

Marketeye.org, entitled High-Purity Manganese Market Report dated April 20, 2026. The economic model uses forecast real prices, in 2025

dollars, of US$$2,653/t in 2032, US$2,776/t in 2033, US$2,827/t in 2034, and US$2,906/t in 2035, with the 2035 price held constant from

2036 through 2056.

Czech government royalty is 2,308 Czech Koruna (CZK) per tonne of Mn produced, translated to USD at a projected CZK to USD exchange

rate of 22.57.

All the costs shown in the News Release are in US dollar.

Table 2: Total Life of Project Revenue, Costs and Cash Flows

Projected Cash Flows

Life of Project (M)

Total HPMSM Revenue, including HPMSM + Magnesium Carbonate

$10,989.2

Freight, Insurance and Selling Costs of HPMSM + Magnesium Carbonate

$561.4

Total Royalties, including HPMSM Czech Government and Landowners

$293.9

Revenues, net of above costs

$10,133.9

Site Operating Costs

$4,906.4

Capital Costs (Phase I, Phase II, sustaining and demolition less salvage value)

$923.1

Project Cash Flow (pre-tax)

$4,304.4

Taxes

$951.4

Life of Project Undiscounted Cash Flows

$3,353.0

The Czech corporate income tax rate is 21%. In addition to the royalty of CZK 2,308 per tonne of unit Mn

produced, the Czech Republic has various payroll and other taxes to generate revenue.

The Company has modeled the economics of this project conservatively from a tax perspective, with a

full tax burden, based on Czech legislated tax rates.

Investment incentives exist in the Czech Republic and the European Union for certain, qualified

investments, including investment tax credits, grants, and accelerated depreciation.

The Company is actively pursuing these non-dilutive funding opportunities, including investment tax

credits, grants, and accelerated depreciation available under both Czech and EU frameworks.

Sensitivity Analysis

A sensitivity analysis for the Chvaletice Manganese Project was carried out to determine the effects of

key variables in relation to the post-tax NPV of $492 million at a real discount rate of 8%. The results of

the sensitivity analysis are presented in Table 3 below.

Table 3: Project Sensitivity Analysis

Sensitivity

Change from Base

Case ($ M)

After-tax

NPV ($ M)

Base NPV, 8%

$492

Discount rate, 10%

$(232)

$260

Discount rate, 6%

$343

$835

HPMSM average prices +10%

$229

$721

HPMSM average prices -10%

$(229)

$263

Total capital +10%

$(67)

$425

Total capital -10%

$67

$559

Total operating costs +10%

$(120)

$372

Total operating costs -10%

$119

$611

Recoveries +10%

$127

$619

Recoveries -10%

$(127)

$365

Initial and Sustaining Capital Estimates

Capital expenditure estimates have been prepared for both initial and sustaining capital. A projected

summary timeline of scheduled capital costs is shown in Table 4.

Table 4: Initial Capital (Phase I), Plant Expansion (Phase II) and Sustaining Capital Schedule.

Year

Initial Capital

($ M) - Phase I

Expansion Capital

($ M) - Phase II

Sustaining Capital

($ M)

Pre-operations,

(-4 years)

$94.1

Pre-operations,

(-3 years)

$156.9

Pre-operations,

(-2 years)

$156.9

Pre-operations,

(-1 year)

$219.6

$9.9

$2.1

$39.6

$2.6

$148.3

$6.4

$4.9

$11.8

$3.9

$3.7

8 - 26

$103.8

Total

$627.5

$197.8

$139.1

The expected initial capital expenditures (Table 4) for the Project, inclusive of capitalized operating

startup costs, as estimated by Tetra Tech, as of Q1, 2026, are $627.5 million, including all development-

related costs that will be incurred prior to the envisaged commencement of commercial operations.

Capital costs incurred after startup are assigned to sustaining capital and are projected to be paid out of

operating cash-flows (also see Table 5). Contingencies on initial capital expenditure have been added

at appropriate percentages to each component of the Project, excluding capitalized operating costs,

resulting in an overall contingency of $66.7 million or 15.5% of direct costs.

The Project site is served by excellent existing infrastructure, including rail, highway, a gas pipeline, and

water and is adjacent to an operating power plant. The proposed plant site is zoned for industrial use

and is the site of the former process plant that produced the Chvaletice tailings.

New and refurbished infrastructure that will be built to service the Project include a tailings excavation

and handling facility: a south and north site connection utility bridge for transporting tailings slurry, return

water pipes and the tube conveyor that returns a mixture of non-magnetic tailings and washed leach

residue to the residue dry stacking area; a magnetic separation beneficiation plant; enclosed and

winterized process plant buildings and various reagent storage facilities and product warehouse; an

upgraded rail spur system with related loading/unloading facilities; an internal road network; an incoming

electrical 400kV high voltage grid connection including rectifiers, transformers, GIS switchgear, and local

distribution step-down transformers; a process equipment maintenance workshop; a mobile fleet

maintenance workshop; spare part and maintenance supply warehouses; a comprehensive water

management system, onsite laboratories; and general administrative offices.

Operating Cost Estimate

Onsite operating costs are expected to average $181.99 per tonne plant feed ($4.14 per kg Mn

equivalent) with offsite operating costs estimated to average $31.73 per tonne plant feed ($0.72 per kg

Mn equivalent), as shown in Table 5.

Table 5: Life of Project Operating Costs

Operating Costs ("Opex")

Total (M)

$ per tonne

Plant Feed

$ per kg Mn

Equivalent

Extraction costs

$56.9

$2.11

$0.05

Magnetic Separation and processing to HPEMM

$3,046.4

$113.00

$2.57

Processing of HPEMM to HPMSM

$682.1

$25.30

$0.58

Residue stacking/storage, site services and water treatment

$590.4

$21.90

$0.50

General and administrative

$296.8

$11.01

$0.25

Contingency on operating costs

$233.6

$8.67

$0.20

Subtotal, Onsite Opex

$4,906.4

$181.99

$4.14

Freight and insurance, and selling costs

$561.4

$20.82

$0.47

Czech Government royalty

(1)

$121.2

$4.50

$0.10

CEZ Landowners royalty

$172.7

$6.41

$0.15

Subtotal, Offsite Opex

$855.3

$31.73

$0.72

All-in Opex

$5,761.6

$213.71

$4.86

Notes:

Czech government royalty is 2,308 Czech Koruna (CZK) per tonne of Mn extracted, translated to USD at a projected CZK to USD exchange

rate of 22.57.

Totals may not add exactly due to rounding.

Resource Estimate

Tetra Tech was 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 Joint Ore Reserves

Committee Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves 2012 Edition ("JORC Code"). The 43-101 Technical Report, entitled "Technical Report and

Mineral Resource Estimate for the Chvaletice Manganese Project, Chvaletice, Czech Republic", with an

effective date of December 8, 2018 ("the Mineral Resource Estimate"), was filed on SEDAR on January

28, 2019. The corresponding JORC Code technical report with an effective date of December 8, 2018,

was lodged on the ASX on February 6, 2019.

No additional drilling or data collection pertaining to the technical disclosure of mineral inventory has

been undertaken since the completion of the Mineral Resource Estimate, and the effective date for

Mineral Resource Estimate is revised to April 27, 2026.

The Project's combined Measured and Indicated Resources now amount to 26,960,000 tonnes, grading

7.33% total manganese (tMn) and 5.86% soluble manganese (sMn), as detailed in Table 6 below.

Table 6: Chvaletice Mineral Resource Statement, Effective April 27, 2026

Tailings Cell #

Classification

Dry

In situ

Bulk

Density (t/m

)

Volume

)

Tonnage

(metric tonnes)

Total

Mn (%)

Soluble

Mn (%)

Total

Mg (%)

MEASURED

1.52

6,577,000

10,029,000

7.95

6.49

0.95

INDICATED

1.47

160,000

236,000

8.35

6.67

1.09

MEASURED

1.53

7,990,000

12,201,000

6.79

5.42

1.11

INDICATED

1.55

123,000

189,000

7.22

5.30

1.27

MEASURED

1.45

2,942,000

4,265,000

7.35

5.63

0.96

INDICATED

1.45

27,000

39,000

7.90

5.89

0.95

TOTAL

MEASURED

1.51

17,509,000

26,496,000

7.32

5.86

1.02

INDICATED

1.50

309,000

464,000

7.85

6.05

1.15

COMBINED

M&I

1.51

17,818,000

26,960,000

7.33

5.86

1.15

Notes:

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 May 19, 2014, as amended, which are materially identical to JORC Code.

The Mineral Resource has been classified as Indicated and Measured Resources based on the level of confidence in the deposit and

estimation.

Indicated Resources have lower confidence than Measured Resources. Mineral Resources do not have demonstrated economic

viability and no Mineral Reserves have been defined for the CMP.

The Chvaletice Mineral Resource is a reasonable prospect for eventual economic extraction. The Mineral Resource has been estimated with

Mn as the primary commodity and Mg as a by-product. A break-even grade of 3.78% total Mn has been estimated for the Chvaletice deposit

based on preliminary pre-concentration, leaching and refining operating cost estimates of US$124.93/t feed, total recovery to HPEMM and

HPMSM of approximately 46.3% and 44.9%, respectively, and a commodity price of USD $2.75/kg for HPMSM for the resource estimates.

MgCO

is produced as a raw product in the processing of HPMSM and would otherwise be discarded. This by-product is presented as total

in situ

concentration and has been assessed as being a reasonable prospect for eventual economic extraction based on preliminary and

approximate estimated market value for MgCO

of USD $800/t, process recovery of 45%, and an additional treatment cost of USD $1.00/t

feed. The actual commodity price and recovery for these products may vary.

A cut-off grade has not been applied to the block model. The estimated breakeven cut-off grade falls below the grade of most of the blocks

(excluding 46,613 t which have grades less than 3.78% tMn). It is assumed that material segregation will not be possible during mining due to

inherent difficulty of grade control and selective mining for this deposit type.

Grade capping has not been applied.

Numbers may not add exactly due to rounding.

PROCESSING FACILITIES DESCRIPTION

Tailings Extraction, Residue Storage Facility and Reclamation

In the tailings extraction plan, the three tailings cells will be excavated in a counterclockwise sequence,

starting with Cell #3, followed by Cells #1 and #2. Tailings will be extracted using shovel excavators and

hauled by truck to an intermediate re-pulping and a covered storage station located between Cells #1

and #2. The storage station will create a 5-day material stockpile. Re-pulped tailings will be fed to the

magnetic separation plant via a slurry pipeline on a continuous basis.

A filtered blend of non-magnetic tailings and washed leach residue materials from the process plant will

be conveyed using a tube conveyor to the storage station and placed and compacted in the Residue

Storage Facility (RSF). The excavated area exposed after extraction of the existing tailings will be lined

with a geomembrane liner. The RSF will be constructed in stages to suit residue storage requirements

and progressively covered to limit the footprint of residue exposed to the air at any given time.

RSF design features include a geomembrane lined bottom, perimeter surface water diversion and a

contact water collection system that is integrated with the overall site water management system. Dust

management includes the implementation of modern dust suppression methods on open faces, interim

stack surfaces and haul roads, as required.

Progressive reclamation will be undertaken as an integrated part of the residue stacking procedure. The

filtered residue cover will consist of a low permeability soil and/or geomembrane cover to inhibit erosion

and infiltration, and a growth layer to support vegetation growth.

The site is expected to be fully reclaimed and brought back into a productive community to be

established in consultation with local communities, regulators and national government agencies. The

RSF will be monitored during the post-closure period for geotechnical and environmental performance.

Table 7: PEA Tailings Extraction, Processing and Production Plan by Year

Year

Tailings

Mined

Mn Grade

Contained

HPMSM

Produced (kt)

Total Mn

production (kt)

Overall

Recovery (%)

1 - 3

1,455

7.54

109.7

200.1

65.0

59.2

4 - 26

25,505

7.31

1,864.8

3,451.8

1,120.3

60.1

Total

26,960

7.33

1,974.5

3,651.9

1,185.2

60.0

Notes:

Tonnage and grade in Table 7 were calculated by Tetra Tech and include an overall 0.5% manganese loss factor and no dilution.

All the annual HPEMM production is converted to HPMSM on site.

The combined overall recovery of manganese from tailings to high purity manganese products is estimated to be 60.0% over the life of the

Project.

High Purity Manganese Products Production Facility

The processing facilities, including ancillary facilities, for HPMSM production from the CMP tailings were

Tech, based on the comprehensive metallurgical test results conducted during the previous PEA and

validated through bench scale tests during the feasibility study. Additional metallurgical tests to recover

manganese from anode slimes from electrowinning circuit were also conducted to support this PEA.

The study was based on the design work completed for the 2022 Feasibility Study which included

process circuit and process equipment optimization. Key equipment items were sized and selected

based on the FS design by upgrading HPMSM circuit from the nominal capacity of 100,000 t/a to

150,000 t/a. In addition, two additional circuits, one for manganese recovery from anode slimes

produced from the electrowinning circuit using reductive leaching and one for sodium and potassium

removal from the HPMSM crystallization circuit by incorporating a high-temperature crystallization

bypass system. One additional circuit to convert the magnesium carbonate from waste to a saleable by-

product is incorporated into the magnesium removal circuit.

The CMP process plant has been designed for a nominal nameplate production capacity of 150,000

tonnes per annum of HPMSM by processing approximately 1.1 million tonnes of the historical tailings per

year.

HPMSM is produced by converting HPEMM flakes produced by electrowinning process without the use

of selenium and chromium. This product is expected to best meet the high purity manganese market

demand anticipated in current and future battery formulations.

The CMP HPMSM product is designed to contain no less than 99.9% high purity manganese sulfate

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