European Lithium Shares Surge on High-Grade Greenland Drill Assays

Shares of European Lithium experienced significant upward momentum following the release of new drilling data from its Tanbreez project in Greenland. The 2025 campaign results highlighted consistent, high-grade rare earths mineralization alongside valuable by-product metals, enhancing the project's economic potential.

The company's equity climbed sharply, trading at A$0.293—a gain of approximately 27% over the previous day's close of A$0.23. Trading volume substantially exceeded the three-month average of 16.2 million shares. This latest advance marks a recovery of roughly 50% from lows recorded in December, coinciding with a series of positive developments related to Tanbreez.

Detailed Assays Reveal Multi-Commodity Potential

The initial analytical results from the 2025 diamond drilling program at the Tanbreez Rare Earths Project in southern Greenland were announced. The data was disseminated by European Lithium's US-listed partner, Critical Metals Corp (NASDAQ: CRML), in which it holds a 45% stake.

Thirteen reported drill holes demonstrated consistent grades of Total Rare Earth Oxides plus Yttrium (TREO+Y) across wide intercepts. Grades ranged from 0.35% to 0.77%, with heavy rare earth oxides constituting about 25–29% of the total content.

Notable drill intercepts include:

• Hole 25-D02: 187 meters at 0.48% TREO+Y from surface
• Hole 25-D01: 165.76 meters at 0.47% TREO+Y from 28 meters depth
• Hole 25-D03: 188 meters at 0.42% TREO+Y from 44 meters depth
• Hole 25-D04: Two broad zones of 126.21 meters at 0.44% and 124.4 meters at 0.39% TREO+Y

The campaign also confirmed the presence of strategically important co-products:
* Gallium oxide: approximately 100 ppm
* Hafnium oxide: around 300 ppm
* Yttrium oxide: roughly 600–700 ppm
* Cerium oxide: about 1,500 ppm
* Zirconium grades predominantly over 1%

This combination underscores the multi-commodity nature of the deposit.

Valuation Leverage Through Strategic Holding

A key value driver for European Lithium is its substantial holding in Critical Metals Corp. The company owns about 53 million shares, representing a 45% interest in the NASDAQ-listed entity. At a CRML share price of US$14.67, this stake is valued at nearly US$780 million (approximately A$1.2 billion)—a figure that surpasses European Lithium's own market capitalization.

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Beyond this, the company's assets include:
* A direct 7.5% interest in the Tanbreez Project
* The Wolfsberg lithium project in Austria
* Considerable cash reserves following share sales in October 2025

Ongoing Share Buyback Initiative

To address what the company perceives as a disconnect between its market value and intrinsic worth, a share buyback program is underway and is set to continue through March 2026.

Project Development Advances

The latest drill data will feed into an updated mineral resource estimate and advance mine planning studies for Tanbreez. Critical Metals has also approved the construction of an arctic-capable pilot plant in Qaqortoq, Greenland, with completion targeted for May 2026.

In a related move on January 13, Critical Metals reported the US$1 million purchase of a mobile geochemical analysis laboratory from Bromet. This facility is expected to provide complete rare earths analysis on-site in about 80 minutes, significantly accelerating data collection for the 2026 drilling campaign.

Executive Chairman Tony Sage emphasized that the results demonstrate consistent rare earths mineralization in the Fjord and Upper Fjord areas. The new information is anticipated to add further mineralized tonnage to the existing deposits, supporting the project's scale and continuity.

Forward Timeline and Catalysts

European Lithium awaits the remaining assay results from the 2025 drilling season, along with selected historical samples. Several near-term catalysts are on the horizon:

• Q1 2026: Finalization of the remaining 25% of offtake agreements for Tanbreez
• May 2026: Commissioning of the Greenland pilot plant
• Mid-2028: Targeted commencement of first deliveries from Tanbreez

The next interim update is scheduled for January 29. With 75% of Tanbreez's planned production already secured under offtake agreements with US and European partners, and amid strong geopolitical interest in Greenland's critical resources, the project's path toward production remains clearly defined.