ELEMENT 25 LIMITED — Capital/Financing Update 2007

Jul 31, 2007

ASX RELEASE

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1 August 2007

MONTEZUMA TO ACQUIRE THE PEAK HILL GOLD MINE

ASX CODE: MZM ISSUED SHARES: 32.1M 52 WEEK HIGH: $0.36 52 WEEK LOW: $0.16

CONTACT:

JUSTIN BROWN Managing Director +61 8 9228 4833

BOARD:

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

KEY PROJECTS:

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ROBINSON RANGE (70%) Uranium, Gold

CALLAWA (100%) Copper, Gold

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TALGA (90%) Gold, VMS

WEEBO (80%) Gold, Nickel

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PILGANGOORA (90%) Gold, Nickel

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• Previous production of approx. 920,000 ounces of high grade gold.

• Proven +million ounce high grade system with historic (mined) intersections including 22m @ 158 g/t .

• Numerous high grade intersections outside the existing pits requiring further drilling. Selected results listed below:

EXPLORATION TARGETS: SELECTED UNMINED INTERCEPTS	EXPLORATION TARGETS: SELECTED UNMINED INTERCEPTS	EXPLORATION TARGETS: SELECTED UNMINED INTERCEPTS
Fiveways/Main/Jubilee Pits (Produced > 400K oz)
Drillhole	Intersection(not mined)	Depth
PHC004 PHRC1001 PRC179 PRC273 PRC306 PHC047 JRC54 JRC190 JRC241 JRC293	3m @ 62.45 g/t 14m @ 4.39 g/t 8m @ 124.22 g/t 3m @ 123.65 g/t 5m @ 31.51 g/t 3m @ 270.78 g/t 5m @ 201.74 g/t 10m @ 14.83 g/t 2m @ 29.00 g/t 7m @ 29.30 g/t	38m 63m 152m 174m 98m 4m 54m 40m 4m 40m
Harmony Pit (Produced > 200,000 oz)
Drillhole	Intersection(not mined)	Depth
PHRC0899	7m @ 13.39 g/t 11m @ 18.96 g/t	46m 62m
Enigma North (No previous mining activity)
Drillhole	Intersection(not mined)	Depth
H0897 PHRC0735 PHRC0732 PHRC0773 ERC0021 ERC0005 ERC0033	4m @ 10.69 g/t 3m @ 13.70 g/t 8m @ 10.13 g/t 4m @ 41.38 g/t 8m @ 2.8 g/t 4m @ 4.56 g/t 9m @ 3.33 g/t	50m 57m 73m 79m 39m 46m 36m

• Deal includes a pre-JORC resource base of approximately 184,000 ounces excluding low-grade stockpiles.

• Consideration of $1M cash and assumption of environmental bonds.

• Tenements unexplored since 1999 .

• Secures Montezuma’s position as an advanced explorer in the Peak Hill Goldfield and accelerates the Company’s intentions to become a gold producer in the medium term

• Aggressive exploration planned to add to the existing resource base in the near term.

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Montezuma is pleased to announce that it has agreed to terms to purchase the Peak Hill Gold Mine from the Barrick Group and Rio Tinto Group. The principle terms of the purchase are:

1. The payment of $1,000,000 cash to the vendors.

2. Assumption of environmental bonds totalling approximately $600,000.

Tenements

The Project comprises four granted mining leases and six miscellaneous licences covering a total of 2,162 Ha, and includes four pits with significant production histories and excellent potential for the discovery of additions to the existing resource base.

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Production History

The project has a strong gold production history having produced from four modern-era open cut pits on top of extensive historical high grade production from underground mining in the latter part of the 19[th] century.

Since the 1980’s, the Main, Jubilee, Fiveways and Harmony open cut operations have produced approximately 650,000 oz of gold while historically, pre-1913 production yielded around 270,000 oz. The combined ounces highlight the Peak Hill field as a +million ounce high grade gold system.

The size and grades associated with the system to date is suggestive that the geology is conducive to additional mineralisation with further work, and underpins Montezuma’s confidence in making the acquisition.

Existing Resources

The project includes previously reported resources of 3.17Mt @ 1.81 g/t for 184,000 ounces of gold at a 0.5 g/t cutoff or 1.78 Mt @ 2.64 g/t gold at a 1.0 g/t cut-off. In addition to these resources, there are also low-grade stockpiles containing approximately 29,200 ounces.

Under the agreed terms, this equates to a purchase price of approximately $7.50 per resource ounce, assuming there is no value attributed to the exploration potential. The resources (0.5 g/t cut-off) are summarised in the following table.

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Prospect	Tonnage	Grade(g/t Au)	Contained Ounces
Inferred Resources
Enigma North	1,000,000	1.04	33,441
Total Inferred	1,000,000	1.04	33,500
Indicated Resources
Enigma North	510,000	2.10	34,437
Fiveways Deeps	105,363	3.22	10,909
Mini Pit Area	309,677	1.50	14,936
Jubilee J2 Zone	43,381	1.82	2,539
Reefers	27,969	1.70	1,529
Total Indicated	996,400	2.01	64,400
Measured Resources
Fiveways Deeps	513,609	2.75	45,416
Jubilee J3 Zone	125,939	1.77	7,168
Harmony	275,550	2.90	25,694
HarmonySW Laterites	258,677	0.94	7,819
Total Measured	1,173,800	2.28	86,100
Total Mineral Resources	3,170,200	1.81	184,000

Low-grade Stockpiles
Stockpile 1	202,000	0.90	5,846
Stockpile 2	874,023	0.83	23,326
Total Stockpiles	1,076,023	0.84	29,172

Note: This resource estimate is sourced from reports to the JV dated as at 30th June 1998 and which were certified as being compliant with the assessment criteria of the Australian Code for Reporting of Identified Mineral Resources and Ore Reserves. However further verification is required to detemine a mineral resource that is fully compliant with the revised JORC code and the current economic environment.

Ownership History

The history of the Peak Hill mining camp involves a string of successive owners each the subject of takeovers by progressively larger companies, until the project resided with the current owners

Previous holders and operators included North, Plutonic, Homestake and finally Rio Tinto and Barrick Gold.

Gold production continued from 1988 until 1997 when the Barrick and Rio joint venture partners took the decision that the reserve potential was insufficient to meet their minimum size criteria and ceased operations.

Since 1999, activities have focussed on rehabilitation with no exploration work being undertaken. The field has effectively been inactive throughout the current mining boom, and represents a unique opportunity to reignite a high grade, historically profitable mining camp.

Further Potential

From a review of the data relating to the project, Montezuma is of the view that these resources will form an excellent foundation upon which additional resource ounces can be added through exploration in ground, with the ultimate aim of providing the basis for a gold producing operation in the medium term.

Potential exists to rapidly add to both the Enigma North deposits, as well as through further testing of the known extensions to the deposits at the Peak Hill, Harmony, Fiveways and Jubilee pits.

The area has a notable history of high grade gold mineralisation, as evidenced by previously exploited resources at the Fiveways deposit, where Peko Gold Ltd previously reported a near surface (<100m) resource of 407,000t @ 5.69 g/t. These resources have included some spectacular grades, including 22m @ 158 g/t gold (now mined).

Note: This resource estimate is sourced from reports to the JV dated as at 30th June 1998 and which were certified as being compliant with the assessment criteria of the Australian Code for Reporting of Identified Mineral Resources and Ore Reserves. However further verification is required to detemine a mineral resource that is fully compliant with the revised JORC code and the current economic environment.

Given the existence of both near surface and potentially higher grade deeper mineralisation, Montezuma believes there is excellent potential for either or both open cut and underground production scenarios within the project, and a significant exploration budget will be allocated to proactively test this potential.

Regional Position

This acquisition significantly strengthens the company’s ground position in the Peak Hill region and its strategy to actively explore for uranium and gold at both Peak Hill, Mt Padbury and Robinson Range.

The recently acquired Mt Padbury Project has returned multiple ore-grade gold values from shallow drill testing of a surface geochemical anomaly with mineralisation open both along strike and at depth.

RAB Drilling results to date from Wood Creek include:

• WCRB012 4m @ 2.95 g/t Au from 3m (incl. 1m @ 9.2 g/t Au)

• WCAC069 6m @ 1.95 g/t Au from 28m (incl. 2m @ 3.48 g/t Au)

• WCRB014 1m @ 5.11 g/t Au from 8m

• 5m @ 1.11 g/t Au from 11m

• WCRB018 11m @ 1.36 g/t Au from 8m (incl. 5m @2.06 g/t Au)

• WCRB021 2m @ 2.12 g/t Au from 1m 2m @ 2.41 g/t Au from 19m

Collectively, the gold targets within the Robinson Range, Mt Padbury and Peak Hill Projects place the Company in a position where, with exploration success, additional resources can be added to the current base at Peak Hill in the near term.\

Exciting Opportunity

The Board of Montezuma is of the view that this acquisition reshapes Montezuma into an advanced gold explorer with significant potential to advance to producer status in the medium term with exploration success at Peak Hill and/or Mt Padbury.

The Company looks forward to reporting the results of our efforts to you on an ongoing basis as we implement an aggressive exploration strategy to unlock the potential of this project.

Justin Brown

Managing Director

Montezuma Mining Company Ltd

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 Mining and Metallurgy . 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.