ELEMENT 25 LIMITED — Capital/Financing Update 2017

Jul 26, 2017

ABOUT MONTEZUMA MINING

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ABOUT MONTEZUMA MINING

Listed in 2006, Montezuma Mining Company Ltd (ASX: MZM) is a diversified explorer primarily focused on gold and technology metals including manganese, lithium and cobalt. The Company’s objective is to achieve returns for shareholders through selected strategic acquisitions and targeted exploration.

27 JULY 2017

LAND ACCESS AGREEMENT SIGNING ALLOWS EXPLORATION TO COMMENCE AT HOLLETON

• ➤ Project contains multiple >100ppb soil anomalies providing a pipeline of priority targets.

• ➤ Priority targets include the underexplored “Brahma” gold prospect with a 2.5km long >50 ppb Au in soil anomaly.

• ➤ Brahma was tested with shallow aircore drilling which confirmed

• a strong coincident basement gold anomaly .

• ➤ Only three deeper holes > 50m over a small part of the anomaly have been drilled. All three holes intersected broad mineralised intervals with grades up to 7.6 g/t Au .

• ➤ Results include[1] :

• GRDD001: 73m @ 0.3 g/t Au including 4m @ 1.6 g/t Au and; 1m @ 7.6 g/t Au

GRDD002: 32m @ 0.3 g/t Au GRDD004: 21m @ 0.4 g/t Au including 3m @ 2.1 g/t Au

Montezuma has 100% interests in the Holleton and Yamarna Gold Projects, the Butcherbird Manganese/Copper Project, the Pinnacles Cobalt-Nickel Project, and the Lake Johnston Lithium-Gold Project all located in Western Australia.

MARKET DATA

ASX code: MZM Share price: $0.15 Shares on issue: 83.5M Market capitalisation: $12.5M Cash (at 30 June): ~$4.2M Listed Investments: ~$6.4M

BOARD AND MANAGEMENT

Chairman Seamus Cornelius Executive Director Justin Brown Non-Executive Director John Ribbons Exploration Manager Dave O’Neill

• ➤ Exploration programme to commence as soon as practicable.

Montezuma Mining Company Ltd (“Montezuma” or “Company”) is pleased to announce that it has entered into a land access agreement with the owners of the land on which the higher priority gold exploration targets are located.

Previous exploration by Independence Group NL included a regional surface geochemical programme that defined a number of gold anomalies across an area of poorly exposed greenstones. Follow-up drilling across these anomalies was typically first-pass in nature with many intersections left open.

The best of the historic results is at the Brahma Prospect (“Brahma”) where a >2.5km long, >50ppb Au in soil anomaly was defined and subsequently followed up with shallow aircore drilling which confirmed the basement anomaly. Three diamond drillholes in a confined area of the anomaly are the only holes drilled to deeper than 50m. The best intersections at Brahma include 73m @ 0.3 g/t Au (including 4m @ 1.6 g/t Au and 1m @ 7.6 g/t Au) however all three diamond holes returned broad mineralised intervals (Figure 2).

In consideration for granting access to explore the gold potential at Holleton, the Company has granted the landowners a 1% Net Smelter Royalty on future production and agreed to pay compenstation for any crop lost due to the impact of the Company’s exploration programmes as well as further compensation calculated on a per Ha basis for any land permanently lost due to mining activities.

Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company’s projects can be viewed at www.montezuma.com.au

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Figure 1 : Soil anomalies generated by Independence Group NL exploration between 2008 and 2010[1] .

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Figure 2: Detailed view of the Independence Group NL generated Brahma soil geochemical anomaly and selected drill results from systematic geochemcial aircore drilling and reconnaisance RC and DD drilling[1] .

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Figure 3 : Cross section through the Brahma soil/aircore anomaly showing broad widths of gold mineralisation with associated calc-silicate alteration which may be indicative of a potentially large gold system.

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	Nominal RL (m)	Dip ( **0) **	Azimuth (mag **0) **	Total Depth (m)	Depth From (m)	Depth To (m)	Intercept Width (m)	Au (g/t)
Brahma Prospect
GRDD001	684949	6452866	370	-60	185	105.6	14	87	73	0.3
Incl.							17	18	1	1.8
And							48	52	4	1,6
And							77	78	1	7.6
GRDD002	685155	6452997	372	-60	176	156	30	62	32	0.3
GRDD004	685152	6452820	370	-70	357	138	85	106	21	0.4
Incl.							90	93	3	2.1
GRAC091	684950	6452846	371	-60	180	30	14	26	12	0.4
Incl.							14	16	2	1.4
GRAC092	684950	6452851	371	-60	180	33	15	24	9	0.1
And							31	32	1	1.5
GRAC093	684950	6452861	371	-60	180	28	12	27	15	0.7
Incl.							18	19	1	2.3
And							25	26	1	4.3
GRAC098	684949	6452913	372	-60	180	10	0	10	10	0.2
GRAC102	684949	6452957	373	-60	180	10	0	8	8	0.2
GRAC104	684950	6452979	373	-60	180	10	0	10	10	0.1
GRAC332	685549	6453037	387	-60	000	28	24	28	4	0.8
GRAC064	686157	6453384	383	-60	180	44	13	20	7	0.7
Incl.							13	16	3	1.5
GRAC062	686156	6453346	384	-60	180	40	18	40	22	0.1
Incl.							26	27	1	1.1
Barnevelder Prospect
GRAC176	690949	6451721	430	-60	180	43	38	43	5	1.4
GRAC175	690948	6451680	430	-60	180	38	19	35	16	0.2
GRAC349	691050	6451844	426	-60	180	44	40	44	4	0.4
GRAC184	689356	6451189	436	-60	180	68	62	67	5	0.5
Incl.							62	63	1	1.8
Cochin Prospect
GRAC187	690048	6452771	410	-60	180	61	53	56	3	0.1
GRAC200	689547	6452688	407	-60	000	44	30	39	9	0.1
GRAC215	692147	6452580	433	-60	000	52	12	48	36	0.1
Jersey Giant Prospect
GRAC111	688294	6448014	409	-60	180	32	29	32	3	0.3

Table 1: Significant intersections greater than 0.1 g/t with up to 2m internal waste. All intersections are downhole widths[1] .

1

http://geodocs.dmp.wa.gov.au/common/searchAPI.do?cabinetId=2301&Report_Ref=A78817 http://geodocs.dmp.wa.gov.au/common/searchAPI.do?cabinetId=2301&Report_Ref=A81028 http://geodocs.dmp.wa.gov.au/common/searchAPI.do?cabinetId=2301&Report_Ref=A86123

FOR MORE INFORMATION…

Justin Brown

Executive Director

Phone: +61 8 6315 1400

Email: jbrown@montezuma.com.au Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company’s projects can be viewed at: http://www.montezuma.com.au.

The information in this report that relates to Exploration Results, Exploration Targets, Mineral Resources and Mineral Reserves is based on information compiled by Mr David O’Neill who is a member of the Australasian Institute of Mining and Metallurgy. At the time that the Exploration Results, Exploration Targets, Mineral Resources and Mineral Reserves were compiled, Mr O’Neill was an employee of Montezuma Mining Company Ltd. Mr O’Neill 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 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr O’Neill consents to the inclusion of this information in the form and context in which it appears in this report

Please note with regard to exploration targets, the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

JORC Table 1

JORC Code, 2012 Edition – Table 1 report – Holleton Project

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•The data presented herein is historic in nature and as such
techniques	specific specialised industry standard measurement tools	sampling technique and its nature and quality cannot be
	appropriate to the minerals under investigation, such as down hole	ascertained with certainty.
	gamma sondes, or handheld XRF instruments, etc). These	•It can be assumed that industry standard methods have been
	examples should not be taken as limiting the broad meaning of	utilised by the previous holder.
	sampling.
	• Include reference to measures taken to ensure sample
	representivity and the appropriate calibration of any measurement
	tools or systems used.
	• Aspects of the determination of mineralisation that are Material to
	the Public Report.
	• In cases where ‘industry standard’ work has been done this would
	be relatively simple (eg ‘reverse circulation drilling was used to
	obtain 1 m samples from which 3 kg was pulverised to produce a
	30 g charge for fire assay’). In other cases more explanation may
	be required, such as where there is coarse gold that has inherent
	sampling problems. Unusual commodities or mineralisation types
	(eg submarine nodules) may warrant disclosure of detailed
	information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary	•Drilling presented is a combination of aircore and diamond drilling.
techniques	air blast, auger, Bangka, sonic, etc) and details (eg core diameter,
	triple or standard tube, depth of diamond tails, face-sampling bit or
	other type, whether core is oriented and if so, by what method,
	_etc). _
Drill sample	• Method of recording and assessing core and chip sample	•Due to the historic nature of the data, recovery cannot be
recovery	recoveries and results assessed.	determined with confidence.
	• Measures taken to maximise sample recovery and ensure	•Therelationship betweensamplerecovery and gradehasnot

Criteria	JORC Code explanation	Commentary
	representative nature of the samples.	been determined.
	• Whether a relationship exists between sample recovery and grade
	and whether sample bias may have occurred due to preferential
	loss/gainof fine/coarse material.
Logging	• Whether core and chip samples have been geologically and	•Not all geological data for all drillholes is available. Where data is
	geotechnically logged to a level of detail to support appropriate	available, it has been compiled and entered into the company
	Mineral Resource estimation, mining studies and metallurgical	historic database. The data will be unsuitable for use in a Mineral
	studies.	Resource or more advanced study and is to be used as an
	• Whether logging is qualitative or quantitative in nature. Core (or	exploration aid only.
	costean, channel, etc) photography.
	• The total length and percentage of the relevant intersections
	_logged. _
Sub-	• If core, whether cut or sawn and whether quarter, half or all core	•The sampling methods for core has not always been determined
sampling	taken.	due to the historic nature of the data.
techniques	• If non-core, whether riffled, tube sampled, rotary split, etc and	•The nature of the sub-sampling for the aircore chips has not
and sample	whether sampled wet or dry.	always been determined due to the historic nature of the data.
preparation	• For all sample types, the nature, quality and appropriateness of	•The sample preparation and sample size information is not always
	the sample preparation technique.	available due to the historic nature of the data.
	• Quality control procedures adopted for all sub-sampling stages to
	maximise representivity of samples.
	• Measures taken to ensure that the sampling is representative of
	the in situ material collected, including for instance results for field
	duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size of the
	_material being sampled. _
Quality of	• The nature, quality and appropriateness of the assaying and	•QAQC protocols are not always provided in the historic data and it
assay data	laboratory procedures used and whether the technique is	is unlikely to be to the same level as current industry standards.
and	considered partial or total.
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments,
tests	etc, the parameters used in determining the analysis including
	instrument make and model, reading times, calibrations factors
	applied and their derivation, etc.
	• Nature of quality control procedures adopted (eg standards,
	_blanks, duplicates, external laboratory checks) and whether _

Criteria	JORC Code explanation	Commentary
	acceptable levels of accuracy (ie lack of bias) and precision have
	_been established. _
Verification	• The verification of significant intersections by either independent	•The historic data cannot be verified and it has been collected from
of sampling	or alternative company personnel.	publicly available sources.
and	• The use of twinned holes.
assaying	• Documentation of primary data, data entry procedures, data
	verification, data storage (physical and electronic) protocols.
	• _Discuss any adjustment to assay data. _
Location of	• Accuracy and quality of surveys used to locate drill holes (collar	•The survey method for collar co-ordinates is not always presented
data points	and down-hole surveys), trenches, mine workings and other	in historic data. Visual checks have been applied where possible
	locations used in Mineral Resource estimation.	using aerial photography and/or Google Earth imagery to locate
	• Specification of the grid system used.	holes correctly if errors are discovered.
	• Quality and adequacy of topographic control.
Data	• Data spacing for reporting of Exploration Results.	•Data has been collected at various spacing.
spacing and	• Whether the data spacing and distribution is sufficient to establish
distribution	the degree of geological and grade continuity appropriate for the
	Mineral Resource and Ore Reserve estimation procedure(s) and
	classifications applied.
	• _Whether sample compositing has been applied. _
Orientation	• Whether the orientation of sampling achieves unbiased sampling	•The historic data is to be used as a guide to future exploration and
of data in	of possible structures and the extent to which this is known,	at face value has been collected in a manner that is sensible with
relation to	considering the deposit type.	respect to gross geological trends however more detailed
geological	• If the relationship between the drilling orientation and the	interpretation would be required to assess this further.
structure	orientation of key mineralised structures is considered to have
	introduced a sampling bias, this should be assessed and reported
	if material.
Sample	• The measures taken to ensure sample security.	•Due to the historic nature of the data presented, this cannot be
security		determined.
Audits or	• The results of any audits or reviews of sampling techniques and	•No external audits or reviews have been conducted apart from
reviews	data.	internal company review as this is publicly available, historic data.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership including	•The tenement presented, E77/2334 is an application and there is
tenement	agreements or material issues with third parties such as joint	no guarantee that it will be ultimately granted to Montezuma
and land	ventures, partnerships, overriding royalties, native title interests,	Mining Limited.
tenure	historical sites, wilderness or national park and environmental	•The data presented, however, has not been collected by
status	settings.	Montezuma Mining Company Mining Limited.
	• The security of the tenure held at the time of reporting along with
	any known impediments to obtaining a licence to operate in the
	_area. _
Exploration	• Acknowledgment and appraisal of exploration by other parties.	•The data presented was collected by Independence Group NL
done by		(now IGO).
other
parties
Geology	• Deposit type, geological setting and style of mineralisation.	•The anomalies presented in the historic data are sourced from
		typical Archaean Greenstone rocks of the Yilgarn Craton.
Drill hole	• A summary of all information material to the understanding of the	•N/A (drillholes not considered material as all aspects of the
Information	exploration results including a tabulation of the following	drillhole cannot be confirmed as they are historic)
	information for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in
	metres) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
Data	• In reporting Exploration Results, weighting averaging techniques,	•Results have been presented as collected from historic data
aggregation	maximum and/or minimum grade truncations (eg cutting of high	sources.
methods	grades) and cut-off grades are usually Material and should be
	stated.

Criteria	JORC Code explanation	Commentary
	• Where aggregate intercepts incorporate short lengths of high
	grade results and longer lengths of low grade results, the
	procedure used for such aggregation should be stated and some
	typical examples of such aggregations should be shown in detail.
	• The assumptions used for any reporting of metal equivalent values
	_should be clearly stated. _
Relationshi	• If the geometry of the mineralisation with respect to the drill hole	•Mineralisation orientations have not been determined.
p between	angle is known, its nature should be reported.
mineralisati	• If it is not known and only the down hole lengths are reported,
on widths	there should be a clear statement to this effect (eg ‘down hole
and	length, true width not known’).
intercept
lengths
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•Refer to figures in document.
	intercepts should be included for any significant discovery being
	reported These should include, but not be limited to a plan view of
	_drill hole collar locations and appropriate sectional views. _
Balanced	• Where comprehensive reporting of all Exploration Results is not	•The historic data presented is to illustrate trends only and all
reporting	practicable, representative reporting of both low and high grades	available data is provided.
	and/or widths should be practiced to avoid misleading reporting of
	_Exploration Results. _
Other	• Other exploration data, if meaningful and material, should be	•Refer to document.
substantive	reported including (but not limited to): geological observations;
exploration	geophysical survey results; geochemical survey results; bulk
data	samples – size and method of treatment; metallurgical test results;
	bulk density, groundwater, geotechnical and rock characteristics;
	_potential deleterious or contaminating substances. _
Further	• The nature and scale of planned further work (eg tests for lateral	•Further work will include detailed interrogation of historic data and
work	extensions or depth extensions or large-scale step-out drilling).	possible follow-up and extension of this work and/or application of
	• Diagrams clearly highlighting the areas of possible extensions,	trends identified to other sections of the geological regime being
	including the main geological interpretations and future drilling	investigated.
	_areas, provided this information is not commercially sensitive. _