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Euro Manganese Announces Results of Life Cycle Assessment for the Chvaletice Manganese Project

Corporate Updates

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NR 2022-15

Euro Manganese Announces Results of Life Cycle Assessment

for the Chvaletice Manganese Project

VANCOUVER, British Columbia ( August 2, 2022) – Euro Manganese Inc. (TSX -V and ASX: EMN; OTCQX:

EUMNF; Frankfurt: E06) ("Euro Manganese", the "Company" or "EMN") is pleased to release highlights of

the Life Cycle Assessment (" LCA" or " Study") recently completed for the Company’s Chvaletice

Manganese Project ("CMP" or "Project") located in the Czech Republic.

Euro Manganese engaged Minviro Ltd. ("Minviro"), a UK-based and globally recognized sustainability and

life cycle assessment consultancy, and RCS Global Ltd. ("RCS Global"), a leading global auditor of battery

material supply chains, to conduct a cradle -to-gate, critically reviewed study quantifying the

environmental impacts, including the c arbon footprint, of producing high -purity manganese products

from manganese-rich historic mine tailings at the CMP.

The results of the LCA validate the environmental value proposition of the CMP and identify potential

opportunities for further impact reduction. Delivery of the LCA is timely as Euro Manganese continues to

engage with customers in the Electric Vehicle ("EV") battery/automotive space, each of whom are testing

and qualifying both the chemistry and environmental credentials of EMN’s high -purity manganese

products.

Highlights

● Using 100% renewable electricity to power the processing plant significantly reduces the CMP’s

carbon footprint, measured in the LCA as Global Warming Potential (" GWP"). The Company is

actively working to secure renewable power offtake contracts with a potential target mix of 50%

wind and 50% solar to meet the plant’s energy requirements. The Company’s working assumption

is the use of 100% renewable electricity, referred to as the Target Scenario in the LCA.

● Assuming the use of renewable electricity, the Project’s GWP is expected to be 6.6 kg CO2 eq. per

kg of high-purity electrolytic manganese metal ("HPEMM") and 2.3 kg CO2 eq. per kg high-purity

manganese sulphate monohydrate ("HPMSM"). Assuming the standard Czech electrical grid mix,

the total GWP impact is expected be 13.9 kg CO 2 eq. per kg HPEMM an d 4.8 kg CO 2 eq. per kg

HPMSM.

● The results of the GWP impact analysis have been divided into three scopes, following the

guidelines of the Greenhouse Gas ("GHG") Protocol, which provides the Company with a full GHG

emissions inventory.

● The LCA confirms multiple environmental benefits from the remediation of the historic tailings

area, particularly in terms of soil quality and freshwater quality. Both improve over the lifetime

of the Project as remediation avoids the current leaching of metals a nd reduces the impacts of

the historic tailings to soil and water streams.

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● Opportunities exist to further reduce the CMP’s carbon footprint by sourcing reagents from

manufacturers with lower environmental impact than those assumed in the study. The Company

is committed to identifying and selecting suppliers with commitments to decarbonization.

● The LCA was conducted according to the requirements of ISO -14040:2006 and ISO-14044:2006,

which included a critical review by an independent LCA expert, and will provide Euro Manganese

with an independently verified assessment for financiers and customers. RCS Global also reviewed

and commented on the LCA study.

● Minviro is also undertaking a benchmarking exercise where the CMP’s GWP will be compared

against similar projects and operations producing high-purity manganese products. The Company

intends to release the results of this analysis once complete.

Dr. Matthew James, Euro Manganese’s President and CEO, said: “I am pleased the results of this Life Cycle

Assessment confirm the environmental credentials of the Chvaletice Manganese Project, namely its low

carbon footprint and the net positive benefits of remediating the historic tailings area, where the quality

of soil and freshwater actually improve over the lifetime of our Project.

These LCA results are a crucial part of customer qualification , as transparency into the origin and

environmental footprint of battery me tal production is increasingly important as automotive

manufacturers use strategic procurement to meet their targets of lower carbon emissions across their

supply chains.

Euro Manganese’s plans to purchase 100% renewable electricity reduces the GWP to 2.3 kg CO2 eq. per

kg high-purity manganese sulphate. To put this in context, the Nickel Institute reports1 a GWP of 5.4 kg

CO2 eq. per kg of nickel sulphate . I am confident the use of renewable energy will show our result s are

favourable against similar operations producing high-purity manganese products, to be confirmed in the

benchmarking study currently underway.

Euro Manganese has the only known supply of manganese ore in the European Union, making our high -

purity manganese products fully traceable from mine to market, and it is our duty to develop that resource

in the most environmentally responsible manner.”

Scope of the Life Cycle Assessment

The LCA evaluates the life cycle impact of the two high-purity manganese products that the CMP produces,

HPEMM and HPMSM. The reported values are based on the production of 1 kg of HPEMM and 1 kg of

HPMSM respectively from manganese-rich historic sulfidic mine tailings. The process assessed is from the

point of tailings extraction (cradle) to HPMSM production (end gate) and is based on data and the

production process outlined in EMN’s Definitive Feasibility Study ( “DFS”), the results of which were

released on July 27, 2022.

The Study assesses two scenarios, a baseline, where electricity demands of the Project are met by the

Czech grid, and a target scenario, where electricity demands are met by renewable energy sources. The

transport of reagents, sourced from within Europe, is included in the scope.

The LCA measures five impact categories: the CMP’s global warming potential, water scarcity footprint,

land use, freshwater eutrophication potential and freshwater ecotoxicity pot ential. Results of these

categories can be found in the Results Summary Table in Appendix I.

Global Warming Potential

The CMP’s GWP is expected to be 6.6 kg CO 2 eq. per kg HPEMM and 2.3 kg CO 2 eq. per kg HPMSM

assuming 100% renewable electricity is used. Assuming electricity from the standard Czech grid is used,

the Project’s GWP is expected to be 13.9 kg CO 2 eq. per kg HPEMM and 4.8 kg CO 2 eq. per kg HPMSM.

The GWP can be subdivided into Scope 1, 2 and 3 GHG emissions, detailed in the Table below.

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LCA Summary of Global Warming Potential Scope Emissions for HPEMM & HPMSM

Target Scenario:

Renewable Electricity

Baseline Scenario:

Czech Electrical Grid Mix

Impact Category HPEMM

(kg CO2 eq. per kg)

HPMSM

(kg CO2 eq. per kg)

HPEMM

(kg CO2 eq. per kg)

HPMSM

(kg CO2 eq. per kg)

Scope 1 1.2 0.4 1.2 0.4

Scope 2 2.1 0.7 9.5 3.3

Scope 3 3.3 1.2 3.3 1.2

Total 6.6 2.3 13.9 4.8

Note: Totals may not add exactly due to rounding.

● Scope 1: direct GHG emissions from owned or controlled sources; for example, emissions

associated with the combustion of fossil fuels on-site, such as process emissions.

● Scope 2: indirect GHG emissions from the generation of purchased energy; for example, thermal

or electrical energy that is imported and used at site.

● Scope 3: any other indirect upstream emissions; for example, from the impact of manufacturing

consumables and transport of reagents.

The contributors to GWP in the production of HPEMM are mostly associated with electricity use in the

electrowinning stage and quicklime consumption in the Fe/P removal stage. The contributors to GWP in

the production of HPMSM are mostly associated with the production of HPEMM, as HPEMM is a precursor

product to the further-refined HPMSM product.

Water Scarcity Footprint

The CMP’s water scarcity footprint is expected to be 29.2 kg water eq. per kg HPEMM and 11.0 kg water

eq. per kg HPMSM assuming the target scenario and 35.2 kg water eq. per kg HPEMM and 13.7 kg water

eq. per kg HPMSM assuming the baseline scenario. For both products, direct water use is the largest

contributing factor to the Project’s water scarcity footprint, while indirect water use stemming from water

embodied in energy and reagents does not contribute much. The potential for water dep rivation to

humans or ecosystems is not considered significant as the Project is located in an area with a low water

scarcity index and the water used in processing is intended to be from secondary sources.

Land Use Transformation

In four of the five categories evaluated to assess the CMP’s impacts on land use, results showed a benefit

to the environment of remediating the historic tailings area.

Categories showing a benefit included biotic production, groundwater regeneration, mechanical filtration

and physicochemical filtration. An exception was in the soil erosion category as compaction and textures

of the tailings area, processing plant and storage area will be changed after land occupation and

transformation over the life of the Project. The likelihood of erosion is not considered significant. The total

transformation impact is 4.2E-4 kg of increased soil loss per kg HPEMM, or 2.1E-4 kg of increased soil loss

per kg HPMSM.

Freshwater Eutrophication

The CMP’s freshwater eutrophication impact is exp ected to be 2.0E -3 kg P eq. HPEMM and -9.6E-4kg P

eq. HPMSM assuming the target scenario and 9.7E -3 kg P eq. HPEMM and 3.5E -3 kg P eq. HPMSM

assuming the baseline scenario. For both products, the main driver is the embodied impact of consuming

material and energy inputs. Benefits to the environment were seen with the remediation of the historic

tailings as further leaching of metals is avoided.

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Eutrophication is the build -up of a concentration of chemical nutrients in an ecosystem which leads to

abnormal productivity, such as excessive algae in rivers causing reductions in water quality and animal

populations.

Freshwater Ecotoxicity

The CMP’s freshwater ecotoxicity impact is expected to be 15.1 Comparative Toxic Unit ("CTU") eq. per

kg HPEMM and 5.0 CTU eq. per kg HPMSM assuming the target scenario and 15.4 CTU eq. per kg HPEMM

and 5.5 CTU eq. per kg HPMSM assuming the baseline scenario. The main driver for this is the use of

chemicals in the purification process for HPEMM pr oduction, which has a large embodied upstream

impact.

Ecotoxicity is the potential of a chemical substance to cause harm or damage to ecosystems, which, with

respect to freshwater, is represented by the toxic effect on aquifer freshwater species in the wat er

column.

APPENDIX I - LCA Results Summary for HPEMM & HPMSM

Target Scenario:

Renewable Electricity

Baseline Scenario:

Czech Electrical Grid

Mix

Impact Category HPEMM HPMSM HPEMM HPMSM Units (per kg

HPEMM/HPMSM)

Global Warming Potential 6.6 2.3 13.9 4. kg CO2 eq.

Water Scarcity Footprint 29.2 11.0 35.2 13.7 kg water eq.

Land Use – Biotic Production

(Transformation) -1.3E-2 -6.7E-3 -1.3E-2 -6.7E-3 kg eq.

Land Use – Biotic Production

(Occupation) -1.3E-3 -6.7E-4 -1.3E-3 -6.7E-4 kg eq. x year

Land Use – Erosion Resistance

(Transformation) 4.2E-4 2.1E-4 4.2E-4 2.1E-4 kg eq.

Land Use – Erosion Resistance

(Occupation) 9.7E-6 4.9E-6 9.7E-6 4.9E-6 kg eq. x year

Land Use – Groundwater

Regeneration (Transformation) -7.7E-4 -3.9E-4 -7.7E-4 -3.9E-4 m3 eq.

Land Use – Groundwater

Regeneration (Occupation) -1.7E-4 -8.6E-5 -1.7E-4 -8.6E-5 m3 eq. x year

Land Use – Mechanical

Filtration (Transformation) -5.8 -2.9 -5.8 -2.9 m3 eq.

Land Use – Mechanical

Filtration (Occupation) -6.1E-1 -3.1E-1 -6.1E-1 -3.1E-1 m3 eq. x year

Land Use – Physicochemical

Filtration (Transformation) -8.4E-1 -1.7 -8.4E-1 -1.7 mol eq.

Land Use – Physicochemical

Filtration (Occupation) -8.8E-2 -3.3E-2 -8.8E-2 -3.3E-2 mol eq. x year

Freshwater Eutrophication 2.0E-3 -9.6E-4 9.7E-3 3.5E-3 kg P eq.

Freshwater Ecotoxicity 15.1 5.0 15.4 5.5 CTU eq.

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About Euro Manganese Inc.

Euro Manganese Inc. is a battery materials company focused on becoming a leading, competitive, and

environmentally superior producer of high -purity manganese for the electric vehicle (EV) industry and

other high-technology applications. The Company is advancing development of the Chvaletice Manganese

Project in the Czech Republic, which is a unique wast e-to-value recycling and remediation opportunity

involving reprocessing old tailings from a decommissioned mine. The Chvaletice Project is the only sizable

resource of manganese in the European Union, strategically positioning the Company to provide batte ry

supply chains with critical raw materials to support the global shift to a circular, low-carbon economy.

About Minviro Ltd.

Minviro is a London -based and globally recognized consultancy and technology company specializing in

carrying out life cycle assessments in the raw material sector and technology minerals and metals space.

The company provides quantitative environmental and climate impact data for mineral resource projects

and operations, battery manufacturers and the EV industry to make environmentally informed decisions.

(www.minviro.com)

About RCS Global Ltd.

RCS Global is a world leading, vertically integrated ESG audit, consulting, and data solutions provider

with a specialisation in battery material supply chains.

1. https://nickelinstitute.org/media/4901/lifecycledata-summary-update2020.pdf

Authorized for release by the CEO of Euro Manganese Inc.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies

of the TSX Venture Exchange) or the ASX accepts responsibility for the adequacy or accuracy of this

release.

Inquiries

Dr. Matthew James

President & CEO

+44 (0)747 229 6688

Louise Burgess

Senior Director Investor Relations & Communications

+1 (604) 312-7546

[email protected]

Company Address: #709 -700 West Pender St., Vancouver, British Columbia, Canada, V6C 1G8

Website: www.mn25.ca

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Forward-Looking Statements

Certain statements in this news release constitute “forward -looking statements” or “forwar d-looking

information” within the meaning of applicable securities laws. Such statements and information involve

known and unknown risks, uncertainties and other factors that may cause the actual results, performance

or achievements of the Company, its pro jects, or industry results, to be materially different from any

future results, performance or achievements expressed or implied by such forward-looking statements or

information. Such statements can be identified by the use of words such as “may”, “would” , “could”,

“will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”

and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”,

“might” or “will” be taken, occur or be achieved. Such forward-looking information or statements relate

to future events or future performance about the Company and its business and operations . Further, it

should be noted that no production decision has been made with respect to the Pro ject and that such a

decision will only be made based on permitting and financing having been secured.

Readers are cautioned not to place undue reliance on forward -looking information or statements.

Forward-looking statements and information involve significant risks and uncertainties, should not be

read as guarantees of future performance or results and will not necessarily be accurate indicators of

whether or not such results will be achieved. A number of facto rs could cause actual results to differ

materially from the results discussed in the forward-looking statements or information, including, but not

limited to, the factors discussed under “Risks Notice” and elsewhere in the Company’s MD&A, as well as

the inability to obtain regulatory approvals in a timely manner; the potential for unknown or unexpected

events to cause contractual conditions to not be satisfied; unexpected changes in laws, rules or

regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the

Company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of

exploration programs or studies to deliver anticipated results or results that would justify and support

continued exploration, studies, development or operations.

Although the forward -looking statements contained in this news release are based upon what

management of the Company believes are reasonable assumptions, the Company cannot assure investors

that ac tual results will be consistent with these forward -looking statements. These forward -looking

statements are made as of the date of this news release and are expressly qualified in their entirety by

this cautionary statement. Subject to applicable securitie s laws, the Company does not assume any

obligation to update or revise the forward -looking statements contained herein to reflect events or

circumstances occurring after the date of this news release. The Company’s actual results could differ

materially from those anticipated in these forward-looking statements as a result of the factors set forth

in the “Risks Notice” section and elsewhere in the Company’s MD&A for the year ended September 30,

2021 and its Annual Information Form.