ELEMENT 25 LIMITED — Capital/Financing Update 2021

Feb 10, 2021

Early cashflow rapid expansion...

ASX ANNOUNCEMENT 11 FEBRUARY 2021

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Groundwater Allocation Ticks Final Approvals Box for Butcherbird

• Confirmation that water allocation has been granted.

• Project fully permitted to commence operations.

• Construction continuing on schedule.

Element 25 Limited ( E25 or Company ) ( ASX:E25 ) is pleased to confirm that confirmation has been received from the Department of Water and Environmental Regulation ( DWER ) that a groundwater abstraction allocation of 1Gl per year has been approved for the Butcherbird Project ( Project ).

The groundwater allocation is a requirement for the operation of the processing plant which will generate approximately 365 Kt per annum of high quality manganese concentrate for export via Port Hedland under the Company’s take or pay offtake agreement with OM Materials (S) Pte Ltd ( OMS ), a wholly owned subsidiary of ASX listed company OM Holdings Limited ( ASX:OMH ) ( OMH )[1] .

The licence application was based on detailed groundwater pump testing, aquifer modelling and subterranean fauna surveys to collect sufficient baseline data to understand the aquifer ecosystem. In subsequent discussions with DWER, a management strategy has been defined which will monitor aquifer health on an ongoing basis to detect and mitigate any potential environmental impacts and to maintain the health of subterranean ecosystems during operations.

E25 Managing Director Mr Justin Brown commented, “ It is fantastic to be able to confirm that the final permitting hurdle has been met and that the Project is now on a clear runway to completion in the first quarter of 2021 as promised to our investors some nine months ago. Once again, it is a testament to the team that we have achieved so much in such a short timeframe. ”

1 Reference: Company ASX announcement dated 28 January 2021.

COMPANY SNAPSHOT

Market Summary Board of Directors: ASX code: E25 Seamus Cornelius Chairman Shares on issue: 133M Justin Brown MD Shares price: $1.855 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

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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 completed a Pre-Feasibility Study (PFS) 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$17 million for the first stage of development will allow the Company to develop the project in a relatively short timeframe. The delivery of this first stage of production is fully funded and already underway.

The PFS also highlighted the Project has the potential for significant growth beyond the initial Stage 1 production volumes (the studies examined the potential for a 2X and 3X expansion to Stage 1 within 12 months of initial commissioning) and the Company expects to expedite the expansion of the Project once Stage 1 is fully operationalIn addition to the concentrate export business, the Company has completed extensive research & development and laboratory test work into the production of high purity manganese products including battery grade manganese sulphate ( HPMSM ) and High Purity Electrolytic Manganese Metal ( HPEMM ). The work has highlighted that the Butcherbird ores are highly amenable to an ambient temperature, atmospheric pressure leach process, resulting in a very efficient extraction of the manganese into solution, the key requirement for the cost effective and sustainable production of HPMSM and HPEMM.

The Project straddles the Great Northern Highway and the Goldfields Gas Pipeline, providing turnkey logistics and energy solutions. The Company plans to integrate renewable energy into the power solution over time to target a zero-carbon footprint for the Project, which is expected to also reduce energy costs. A cleaner, lower carbon flowsheet and high penetration renewable energy will place Butcherbird at the forefront of sustainable high purity manganese 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 3 December 2020

Element 25 Limited

ASX ANNOUNCEMENT XX JANUARY 2021

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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.

The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Mr Justin Brown who is a member of the Australasian Institute of Mining and Metallurgy. At the time that the Exploration Results and Exploration Targets were compiled, Mr Brown was an employee of Element 25 Limited. Mr Brown 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 Brown consents to the inclusion of this information in the form and context in which it appears in this report.

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.

Element 25 Limited