ELEMENT 25 LIMITED — Capital/Financing Update 2020

Jun 29, 2020

ASX ANNOUNCEMENT

30 June 2020

Butcherbird Mining Lease M52/1074 Granted

Element 25 Limited ( E25 or Company ) ( ASX:E25 ) is pleased to announce that the Mining Lease M52/1074 for its Butcherbird Manganese Project ( Project ) has been formally granted by the Western Australian Department of Mines, Industry Regulation and Safety, paving the way for the formal lodgement of mining approval documentation. The Mining Lease has been granted for a 21 year term.

A number of the relevant approvals required to commence mining are well advanced and will be lodged within the coming weeks.

The Company is targeting a staged development strategy with production of manganese concentrate to generate early cashflows with a low capital requirement for Stage 1, followed by expansion into downstream processing to produce high purity manganese in future plans.

A Pre-Feasibility Study ( PFS ) released in May 2020 has demonstrated outstanding economics with respect to the production of manganese concentrate, confirming the potential for a robust, long life operation with a low capital cost and strong operating margins[1] . The Company now intends to expedite project delivery and commence production as soon as practicable.

E25 Managing Director Mr Justin Brown commented, “ The grant of the mining lease at Butcherbird is a pivotal step in the development of this world class project and puts the Company in a position to fast track the project towards commencement of production and cashflows. ”

1 Reference: Company ASX Release dated 19 May 2020.

Company Snapshot

ASX Code: E25 Board of Directors: Shares on Issue: 98M Seamus Cornelius Chairman Share Price: $0.405 Justin Brown MD Market Capitalisation: $39.7M John Ribbons NED

Element 25 Limited is developing the world class Butcherbird Manganese Project in Western Australia to produce high quality manganese concentrate and high purity manganese products for traditional and new energy markets.

Element 25 Limited Level 2, 45 Richardson Street, P +61 8 6315 1400 West Perth, WA, 6005 E admin@e25.com.au PO Box 910 West Perth WA 6872 element25.com.au Australia

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About the Butcherbird Manganese Project

The Butcherbird Manganese Project is a world class manganese resource with current JORC resources in excess of 263 Mt of manganese ore[2] . The Company has recently completed a Pre-Feasibility Study with respect to developing the deposit to produce manganese concentrate for export to generate early cashflow with a modest capital requirement[3] . The outstanding economics and low capital hurdle of less than A$15 million will allow the Company to develop the project in a shorter timeframe than would have otherwise been possible.

This is envisaged as the first stage of a staged ramp up for the project and has the advantage of potentially providing early cashflow to strengthen the Company’s balance sheet and assist in funding of the larger high purity manganese production hub which is the subject of a parallel, complimentary work stream.

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 reducing energy costs. A cleaner, lower carbon flowsheet and high penetration renewable energy will place Butcherbird at the forefront of sustainable metal production.

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)

2 Reference: Company ASX release dated 17 April 2019.

3 Reference: Company ASX release dated 19 May 2020

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

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

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Mining Reserve

Based on the results of the Pre-Feasibility Study completed in May 2020, E25 has published a Maiden Ore Reserve for the Project of 50.55Mt in the Proved and Probable categories[4] .

Classification	Tonnes (Mt)	Grade (Mn%)	Contained Mn (Mt)	Recovered Mn (Mt)
Proved	14.4	11.5	1.65	1.35
Probable	36.2	9.8	3.56	2.92
Total	50.6	10.3	5.21	4.27

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 company confirms that in the case of estimates of Mineral Resource or Ore Reserves, all material assumptions and technical parameters underpinning the estimates in the market announcements dated 17 April 2019 and 19 May 2020 continue to apply and have not materially changed. The company confirms that the form and context in which the competent person’s findings are presented has not been materially modified from the original market announcements.

This announcement is authorised for market release by Element 25 Limited’s Board of Directors.

4 Reference: Element 25 Limited Reserve Statement lodged with ASX 19 May 2020.

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

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

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