ELEMENT 25 LIMITED — Capital/Financing Update 2007

Sep 20, 2007

ASX RELEASE

==> picture [571 x 30] intentionally omitted <==

==> picture [571 x 30] intentionally omitted <==

==> picture [163 x 23] intentionally omitted <==

21 September 2007

MONTEZUMA COMPLETES CAPITAL RAISING

ASX CODE: MZM ISSUED SHARES: 36.9M 52 WEEK HIGH: $0.36 52 WEEK LOW: $0.16

CONTACT:

JUSTIN BROWN Managing Director +61 8 9228 4833

• 4.8M shares have been issued to raise $963,180 before costs.

• Funds to be used to finance drilling at Peak Hill (gold), Mt Padbury (gold), Talga (gold) and Callawa (copper).

• Drilling rig en-route to commence work as soon as possible to test high-grade gold at the Peak Hill Jubilee Gold Prospect.

Montezuma is pleased to announce the completion of a placement to raise $963,180 before costs. 4,815,900 fully paid shares have been issued at a price of $0.20. Subject to shareholder approval, a 1 for 4 free attaching $0.20 option will be issued to participants.

BOARD:

Denis O’Meara: Chairman Terry Grammer: Non-Exec Ian Cornelius: Non-Exec

KEY PROJECTS:

==> picture [163 x 22] intentionally omitted <==

PEAK HILL (100%) Gold

ROBINSON RANGE (70%) Uranium, Gold

==> picture [163 x 22] intentionally omitted <==

CALLAWA (100%) Copper, Gold

TALGA (90%) Gold, VMS

==> picture [163 x 23] intentionally omitted <==

PILGANGOORA (90%) Gold, Nickel

After shares have been issued pursuant to the placement, Montezuma will have approximately 36.9M shares on issue and $2M in cash.

The funds will be used to finance drilling programmes at the newly acquired high grade gold project at Peak Hill, as well as initial drilling at Mt Padbury (gold), Callawa (copper), and first pass testing of the large coherent gold in soil anomalies at the Talga Project.

Work will initially commence at the Jubilee Prospect at Peak Hill, where earlier shallow drilling down to approximately 50m has defined extensive zones of gold mineralisation with assays up to 590 g/t gold over a metre and composite intersections including 5m @ 201.74 g/t and 10m @ 14.83 g/t .

Jubilee is one of four key target areas at the Peak Hill Project with ongoing exploration planned to test the Main Pit Deeps, Harmony and Enigma North deposits.

Montezuma intends to aggressively explore Peak Hill with a view to rapidly expanding on the existing resource base of approximately 200,000 ounces with an initial strategic goal of commencing production within 3 years.

Justin Brown Managing Director

M: 0438 745 675

==> picture [163 x 23] intentionally omitted <==

==> picture [163 x 22] intentionally omitted <==

==> picture [163 x 23] intentionally omitted <==

==> picture [163 x 14] intentionally omitted <==

The Information in this report that relates to exploration results is based on information compiled by Liam Cornelius, who is a member of the Australian Institute of Geoscientists. Mr Cornelius is a geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Liam Cornelius is an Executive Officer of South Boulder Mines Ltd and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.