ELEMENT 25 LIMITED — Capital/Financing Update 2009

Aug 17, 2009

ASX RELEASE

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18 August 2009

ASX CODE: MZM ISSUED SHARES: 41.69M 52 WEEK HIGH: $0.24 52 WEEK LOW: $0.02

CONTACT: JUSTIN BROWN Managing Director +61 438 745 675

BUTCHER BIRD COPPER PROJECT RETURNS GRADES UP TO 21.7% Cu FROM MULLOCK SAMPLING

• Result up to 21.7% Cu (oxidised zone)

• 6.07% Cu (primary zone)

• Strongly anomalous cobalt, silver, lead and antimony

• Great northern highway cuts through licence providing excellent access, only 120km south of Newman.

• Tenement also contains previously reported surficial manganese mineralisation, grading up 44.4% Mn .

Montezuma is pleased to announce that mullock sampling at the historic Butcher Bird Copper Mine on EL 52/2350 “Butcher Bird” has returned very strong copper results.

BOARD:

Denis O’Meara: Chairman Justin Brown: MD Ian Cornelius: Non-Exec

A total of seven surface mullock heap samples were collected by Montezuma during a July site visit. The mullock heaps are situated at the shaft openings of the Butcher Bird shallow underground copper mine. Both primary and oxidised zones of the fault infill mineralisation was recognised and sampled.

KEY PROJECTS:

PEAK HILL (100%) Gold

MT PADBURY (100% of gold) Gold, Manganese, Iron

BUTCHER BIRD (100%) Manganese, Copper

Egerton (100%) Gold

KEY SHARE POSITIONS:

AUVEX RESOURCES LTD 10,000,000 FPO Shares

BUXTON RESOURCES LTD 2,000,000 FPO Shares

Importantly, copper mineralisation is confirmed to have a primary source in an iron oxide matrix supported breccia, infilling a fault zone, similar in style to an IOCG deposit.

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Sample BB27- primary Iron Oxide Breccia
Silicified host rock and
breccia clasts.
Copper bearing iron
0 1 2cm oxide breccia cement up
to 6% Cu & 26g/t Ag.
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The historic Butcher Bird mine is a high grade near surface copper mine which targeted supergene copper mineralisation. The mine has recorded production of 8.46t of copper at an average grade of 22.6%. The main 3 shafts lay in the south-eastern portion of the tenement at 775750m E and 7297200m N GDA zone 50.

The main shaft was sunk to approx 10m, and 2 drives were cut along the fault, a lower one at 8m depth and an upper one at 3m depth. The shaft was not extended deeper due to a high water table at 9m depth. Above the water table the rocks are strongly weathered, with secondary copper oxides of malachite and azurite variably replacing the original host breccia.

There is no recorded drilling around the Butcher Bird mine and the potential for primary copper mineralisation remains untested.

As part of the current reconnaissance program, a selection of mullock samples were selected and submitted for multi-element assays. The selected samples were chosen to represent the range in weathering and copper mineralisation apparent at the time. A summary of results is presented in the following tables.

Sampl e	Cu %	Fe %	Au ppb	Ag ppm	As ppm	Co ppm	Mo ppm	Ni ppm	Pb ppm	Zn ppm
BB26	6.86	12.8	6	19.5	101	265	2	120	1040	105
BB29	21.7	1.01	58	87.5	16	840	2	720	48	575
BB30	26.0	1.82	47	156	36	585	2.5	515	48	565
BB32	12.4	10.6	7	6	28	1070	2.5	600	235	85

Table 1: Oxidised rocks with visible azurite and malachite .

The rocks comprising table 1 were highly weathered azurite and malachite rich. They were selected to represent the ore material mined from the shallow underground stopes and are considered to represent supergene copper oxide mineralisation.

Sam ple	Cu %	Fe %	Au ppb	Ag ppm	Pb ppm	Sb ppm	Si %	U ppm	Zn ppm	Co ppm	Ni ppm	As ppm
BB59	4.31	13.8	8	39	917	5220	33.6	18.7	40	145	90	80
BB27	6.07	20.3	7	26	1120	4920	22.4	51.1	125	415	180	162
BB28	7.05	19.4	5	48	1250	7850	20.4	38.1	80	280	145	121

Table 2 : Iron oxide breccia samples. Note BB59 and 27 are unweathered, and BB28 is weakly gossanous with minor visible azurite.

Table 2 shows results from samples that were selected to represent the Iron Oxide matrix material of the breccia which is considered the primary target for primary mineralisation below the supergene zone. BB28 contains visible azurite, and is considered to represent gossan weathered Iron Oxide breccia. Copper values are very robust and Antimony (Sb) is highly significant. Silver (Ag), Cobalt (Co) and Lead (Pb) are also anomalous. Gold in these samples is low, but has been historically reported in anomalous amounts in some samples of adjacent fault systems.

The fault hosting the Butcher Bird Copper Mine has been mapped as an iron rich gossan for a strike of 3.3km. There are 3 adjacent faults mapped around the Butcher Bird fault providing a number of targets in addition to the currently known areas of mineralisation.

Based on the large regional extent of the mapped surface gossans, the anomalous geochemistry, the sampling and remote sensing data, Butcher Bird is regarded as having excellent potential to host significant tonnages of copper mineralisation. Drilling will commence as soon as possible once the tenements have been granted and relevant clearances received.

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Great Northern Hwy
Newman Mapped Fault
EL52/2350 Inferred Fault
Meekatharra EL 52/2350
Excised from lease
North
0 1 2 3 4 5 Km
Butcher Bird
Copper Mine
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More Information

Justin Brown

Managing Director

Phone: +61 (8) 9228 4833 Mobile: 0438 745 675

The Information in this report that relates to exploration results is based on information compiled by Justin Brown, who is a member of the Australian Institute of Mining & Metallurgy. Mr Brown 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. Justin Brown consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.