ELEMENT 25 LIMITED — Capital/Financing Update 2010

Apr 6, 2010

ASX RELEASE

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7 April 2010

ASX CODE: MZM ISSUED SHARES: 42.10M 52 WEEK HIGH: $0.34 52 WEEK LOW: $0.06

CONTACT:

JUSTIN BROWN Managing Director +61 438 745 675

BOARD:

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

KEY PROJECTS:

PEAK HILL (100%) Gold

DURACK (earning 85%) Gold, Copper

BUTCHER BIRD (100%) Manganese, Copper

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

MT PADBURY MAIDEN MINERAL RESOURCE ESTIMATE EXCEEDS 10Mt THRESHOLD

• Sinosteel Midwest Corporation Limited have defined a maiden Mineral Resource Estimate at Mt Padbury of 13.3Mt @ 56% Fe.

• • The Mineral Resource Estimate exceeds the threshold to trigger the third cash payment of $4M to Montezuma.

• Under the terms of the Sale Agreement, the third payment is payable on or before 30 April 2010.

Montezuma is pleased to advise that the Company has received notification from Sinosteel Midwest Corporation Limited (“Sinosteel Midwest”) that they have defined (Resource Statement attached) a Maiden JORC compliant Inferred Mineral Resource Estimate for the Jabiru Prospect at the Mt Padbury Project of 13.3 Mt of iron mineralisation grading 56% Fe.

The key significance of this milestone is that the Mineral Resource Estimate exceeds the threshold required to trigger a third cash payment of $4M to the Company. Under the terms of the sale agreement, the payment is due on or before 30 April 2010.

On commencement of production from the project, Montezuma will also receive a 0.5% royalty on the gross proceeds of the sale of all iron ore grading between 30-50% Fe and a 1% royalty on the gross proceeds of the sale of all iron ore grading over 50%.

The additional funding will further underpin aggressive exploration at the Company’s Projects. Target generation activities have identified a number of high priority targets at all projects and an extensive campaign of RAB and RC drilling is planned targeting gold, high-grade DSO manganese ore and copper massive sulphide mineralisation.

KEY SHARE POSITIONS:

AUVEX RESOURCES LTD 7,500,000 FPO Shares

More Information

BUXTON RESOURCES LTD 3,010,000 FPO Shares

Justin Brown Managing Director

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

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Resource Statement Robinson Range – Jabiru Deposit March 2010

The March 2010, Jabiru mineral resources have been classified in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“2004 JORC Code”), and is shown in Table 1 below.

TABLE 1- March 2010 Robinson Range Jabiru Deposit Resource Statement

	Bedded Iron Resource(+50% Iron)
DepositClassification	VolumeDensityTonnesFeSiO2Al2O3LOIPSTiO2
	1,000 m3t/m31,000 T%%%%%%%
JabiruInferred Resource	4,8002.813,300567470.060.20.13

Notes:

• Iron mineralisation at Jabiru is located on tenure held by Montezuma Mining Company Ltd (MZM), which Sinosteel Midwest Corporation Ltd (SMC) has acquired the Iron Ore Rights and is conducting exploration;

• Available data for Jabiru consists of 76 RC drill holes, for a total of 6,960m of drilling. Drilling was on 80 to 100m section spacing, and approximately 25m apart across section;

• As shown in Figure 1, iron mineralisation at Jabiru is located in a re-folded synformal structure, which has been defined along approximately 750m strike length. Horizontal widths at surface range from 10 to 190m horizontally, but narrows with depth, with the fold keel approximately 70m below surface;

• 5,909 samples were submitted for chemical analysis which other than loss on ignition, was performed by XRD at contract laboratories in Perth;

• Loss on ignition analysis was performed for all samples at a 1,000°C using a thermogravimetric method;

• Samples submitted for analysis included routine standards, blanks, field and laboratory duplicate samples which did not identify any sample or laboratory discrepancies;

• Interpretation of the mineralisation was constrained by stratigraphy and prepared using a total iron cut-off of greater than 46% iron and less than 25% silica;

• Grade interpolation was by Ordinary Kriging within mineralised boundaries for iron, silica, alumina, loss on ignition, phosphorus and sulphur;

• Dry bulk density was derived from 1,440 geophysical bulk density determinations which were applied on the basis of elevation. Bulk density has been assumed to be dry, based on drilling conditions and the regional water table; and

• Consideration was given to the mineralisation style, current geological understanding, available analytical data, available bulk density data (including the absence of any available core), and geostatistical criteria when assigning the resource classification.

Figure 1 Robinson Range Jabiru Prospect Outcrop Mapping 2009

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The classification was undertaken by Kahan Cervoj, a full-time employee of Sinosteel Midwest Corporation Ltd, and a member of The Australian Institute of Mining and Metallurgy (AusIMM) with sufficient experience relevant to the style of mineralisation and type of deposit described to qualify as a Competent Person, as defined by the 2004 edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Cervoj consents to the inclusion in this report, of the matters based on his information, in the form and context in which it appears.