ELEMENT 25 LIMITED — Capital/Financing Update 2023

Sep 17, 2023

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ANNOUNCEMENT | 18 SEPTEMBER 2023 | ASX: E25

E25 FEASIBILITY STUDY FOR PLANNED U.S. MANGANESE SULFATE FACILITY ACCEPTED BY GM

Element 25 Limited ( ASX: E25; OTCQX: ELMTF ) is pleased to announce that General Motors LLC ( GM ) has completed due diligence and accepted the company’s Feasibility Study as a condition of the definitive agreement announced between the companies on 26 June 2023.

E25 and GM signed a definitive agreement for E25 to supply battery grade high-purity manganese sulphate ( HPMSM ) to support GM’s electric vehicle ( EV ) battery requirements. In addition, GM will provide E25 with a US$85 million (~A$128 million) loan towards financing the construction of its HPMSM processing facility in the U.S. which will process manganese concentrate from E25’s Butcherbird mine in Western Australia.

Element 25 Managing Director Justin Brown said: “GM’s acceptance of the HPMSM Feasibility Study is an important milestone for the project and for our project financing activities for the proposed Louisiana facility. It is a key step in our journey to becoming a key supplier to the battery raw material supply chain servicing US electric vehicle markets.”

Remaining conditions include completion of product validation, securing the balance of the required project financing, finalising project permitting and execution of the contracts in relation to the preferred plant site in Louisiana, USA.

About the E25 Process

Element 25 has developed an innovative, advanced processing flowsheet to convert Butcherbird manganese concentrate into high purity manganese sulfate monohydrate (HPMSM), a critical raw material for the manufacture of lithium-ion batteries. The proprietary flowsheet reduces energy consumption, virtually eliminates waste and delivers the lowest carbon intensity HPMSM globally based on publicly available information[1] .

The process offers a pathway to the delivery of expanding volumes of ethically sources, traceable, transparent HPMSM supply to US markets. Element 25 is developing a first of its kind processing facility in Louisiana to produce up to 135Kt per annum of HPMSM for US electric vehicle (EV) supply chains[2] .

1 Reference: Company ASX Release dated 21 February 2023

2 Reference: Company ASX Release dated 12 April 2023

W: element25.com.au

Element 25 Limited

ABN: 46 119 711 929 T: +61 8 6375 2525 E: admin@e25.com.au

About Element 25

Element 25 Limited ( ASX:E25 ) produces a high silica manganese oxide ore from the 100% owned Butcherbird Mine, located in the southern Pilbara region of Western Australia. The ore is mined with a core focus on ESG. Mining extracts material above the water table to minimize environmental impact and processing uses water only to wash the ore and remove clays and other impurities. The concentrate is exported to international customers for processing into silicomanganese alloys.

The Company is currently building a processing facility to convert the Butcherbird concentrate using Element 25's proprietary technology into high quality, low carbon, ethically sourced battery grade high purity manganese sulfate monohydrate ( HPMSM ), a critical raw material used in the manufacturing of electric vehicle ( EV ) lithium-ion batteries.

As the EV industry makes the expected shift to higher manganese cathode content to meet volume and cost requirements the demand for HPMSM is expected to rise. Element 25's very large resource base, long mine life and innovative, low carbon processing technology will place it in an industry leading position to capture significant market share in an expanding industry.

This announcement is authorised for market release by Element 25 Limited’s Board of Directors. Company information, ASX announcements, investor presentations, corporate videos, and other investor material in the Company’s projects can be viewed at: www.element25.com.au.

Justin Brown Managing Director Email: admin@e25.com.au Phone: +61 (8) 6375 2525

Media Inquiries: Nathan Ryan Email: nathan.ryan@nwrcommunications.com.au Phone: +61 (0) 420 582 887

Element 25 Limited