ELEMENT 25 LIMITED — Capital/Financing Update 2019

Aug 8, 2019

ASX ANNOUNCEMENT

9 August 2019

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Element 25 Awarded CRC-P Grant Funding for Butcherbird Pilot Plant Programme

Element 25 Limited ( ASX:E25 ) ( E25 or Company ) is pleased to announce it has been awarded funding under the seventh round of the Cooperative Research Centres Project (CRC-P) grant program. Government funding of $1,342,223 has been approved for the pilot plant test programme for the Company’s 100% owned Butcherbird Project.

The funding is provided by the Department of Industry, Innovation and Science to support the pilot testing programme for Butcherbird. The technology development will be undertaken in association with Lycopodium, ALS and Murdoch University.

The test programme will focus on pilot scale validation of the innovative leaching and purification process for manganese ores at Butcherbird to produce high-purity Electrolytic Manganese Metal ( EMM ) and Manganese Sulphate

Monohydrate ( HPMSM ), used in Li-ion batteries. The process is a cleaner, lower carbon intensity flowsheet which will reduce environmental impacts, and present a process pathway for the utilisation of the large manganese resource at Butcherbird and provide an important case study for the onshore processing of critical minerals in Australia.

Commenting on the successful application, E25 Managing Director Justin Brown said,

“ The grant announced today will provide important funding to accelerate the

development of the world class Butcherbird High Purity Manganese Project which will use an innovative new flowsheet coupled with high penetration renewable energy to lead the

way in the downstream processing of ores and the electrowinning of low carbon intensity metals in Australia” .

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Company Snapshot

ASX Code: E25 Board of Directors: Shares on Issue: 92M Seamus Cornelius Share Price: $0.20 Justin Brown Market Capitalisation: $18.4M John Ribbons

Chairman MD NED

Element 25 Limited is developing the world class Butcherbird manganese project in Western Australia to produce high purity manganese sulphate for lithium ion batteries and electrolytic manganese metal, powered with renewable energy.

Element 25 Limited P +61 8 6315 1400 E admin@e25.com.au element25.com.au

Level 2, 45 Richardson Street, West Perth, WA, 6005 PO Box 910 West Perth WA 6872 Australia

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9 August 2019

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About the Butcherbird High Purity Manganese Project

The Butcherbird High Purity Manganese Deposit is a world class manganese resource with current JORC resources in excess of 263 Mt of manganese ore[1] . The Company has completed a positive scoping study with respect to developing the deposit to produce high purity manganese sulphate for lithium ion battery cathodes as well as Electrolytic Manganese Metal for use in certain specialty steels. A PFS is currently being completed and is expected to further confirm the commercial potential of the Project.

The Project straddles the Great Northern Highway and the Goldfields Gas Pipeline providing turnkey logistics and energy solutions. The Company is also intending to integrate renewable energy into the power solution to minimise the carbon intensity of the Project as well as further reducing energy costs.

Mineral Resources

Category	Tonnes (Mt)	Mn (%)	Si (%)	Fe (%)	Al (%)
Measured	16	11.6	20.6	11.7	5.7
Indicated	41	10.0	20.9	11.0	5.8
Inferred	206	9.8	20.8	11.4	5.9
Total	263	10.0	20.8	11.4	5.9

Notes:

• Reported at a 7% Mn cut-off for the Measured and Indicated categories and an 8% Mn cut-off for the Inferred categories.

• All figures rounded to reflect the appropriate level of confidence (apparent differences may occur due to rounding)

Justin Brown

Managing Director

Company information, ASX announcements, investor presentations, corporate videos and other investor material in the Company’s projects can be viewed at: http://www.element25.com.au.

Competent Persons Statement

The information in this report that relates to Mineral Resources is based on information announced to the ASX on 17 April 2019. Element 25 confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements, and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

1 Reference: Company ASX release dated 17 April 2019.

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Element 25 Limited P +61 8 6315 1400 E admin@e25.com.au element25.com.au

Level 2, 45 Richardson Street, West Perth, WA, 6005 PO Box 910 West Perth WA 6872 Australia

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