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ELEMENT 25 LIMITED Capital/Financing Update 2021

May 5, 2021

64810_rns_2021-05-05_52237d11-bdda-4cba-846f-45274c7272ad.pdf

Capital/Financing Update

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Early cashflow rapid expansion...

ASX ANNOUNCEMENT 6 MAY 2021

Utilisation & Termination of Controlled Placement Agreement

Element 25 Limited ( E25 or Company ) ( ASX:E25 ) is pleased to announce that it has raised $9,200,000 (after costs) through the set-off of 4,800,000 collateral shares previously issued to Acuity Capital under the Controlled Placement Agreement ( CPA ) ( Set-off Shares ) as announced 18 March 2020 and 21 January 2021.

The Set-off Shares reduce the total 4,800,000 collateral shares which Acuity Capital is otherwise required to return to the Company upon termination of the CPA. These Setoff Shares have a deemed price of $1.9167, being a 6.5% discount to the 15-day VWAP of $2.0506 to 5 May 2021 (inclusive).

The funds raised will be used to fund the planned Stage 2 expansion[1] of manganese concentrate production ( Stage 2 ) from the Company’s 100% owned Butcherbird Manganese Project and to accelerate feasibility study work programmes for the production of battery grade High Purity Manganese Sulphate (HPMSM) from the manganese concentrate produced from Stage 2.

The Company also advises that it has now terminated the CPA effective immediately. There were no costs associated with terminating the CPA.

This announcement is authorised for market release by the Company’s Board of Directors.

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.

1 Reference: Company ASX release dated 3 December 2020

COMPANY SNAPSHOT

Market Summary Board of Directors: ASX code: E25 Seamus Cornelius Chairman Shares on issue: 149M Justin Brown MD Shares price: $2.02 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