ELEMENT 25 LIMITED — Interim / Quarterly Report 2016

Oct 21, 2015

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Montezuma Mining Company Ltd (“Montezuma”) is pleased to advise that activities during the quarter have successfully advanced the Company’s flagship Yamarna Gold Project in WA.

Yamarna Project (100% MZM):

• Phase 1 exploration programme comprising infill surface geochemical sampling completed. Multiple regional scale anomalies confirmed.

• Heritage clearances for first ever drilling programme completed.

• Maiden drilling programme completed comprising 7,525m in 202 holes drilled to blade refusal.

QUARTERLY OPERATIONS REPORT 30 SEPTEMBER 2015

ABOUT MONTEZUMA MINING

Listed in 2006, Montezuma Mining Company Ltd (ASX: MZM) is a diversified explorer primarily focused on manganese, copper and gold. The Company’s primary objective is to achieve returns for shareholders through selected strategic acquisitions and targeted exploration.

Montezuma Mining has 100% interests in the Yamarna Gold Project in the Yamarna Geenstone Belt, Western Australia and the Butcherbird Manganese/Copper Project in the Murchison region of Western Australia

MARKET DATA

ASX code: MZM Share price: $0.23 Shares on issue: 70,464,350 Market capitalisation: $16.2M

BOARD AND MANAGEMENT

• First batch of assays from maiden aircore drilling programme returns results up to 2.7 g/t gold plus pathfinder elements in basement rocks.

• Widespread strong gold anomalism over several square kilometres further supports potential for a large gold system.

• Approximately 25% of assays received to date. Remaining samples in laboratory with results pending.

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Figure 1: Field crews undertaking maiden drilling programme to follow up multiple regional scale surface geochemical anomalies.

Chairman Seamus Cornelius Executive Director Justin Brown Non-Executive Director John Ribbons

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Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company’s projects can be viewed at www.montezuma.com.au

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005 | Phone +61 8 6315 1400

YAMARNA PROJECT: (MZM 100%)

Surface Geochemical Sampling

During the previous quarter, Montezuma commenced on ground exploration on tenement E38/2889. Field crews completed the collection of approximately 3,200 soil samples which at the release of the previous Quarterly Report had been dispatched to the laboratory for low level multi element assay with assays then pending.

Assays received during the quarter confirmed widespread regional surface anomalism[1] and in particular, three priority targets were identified and prioritised for follow-up drill testing as soon as practicable: Priority Anomaly 1 – Captains Prospect ( 1.3km x 350m @ >10ppb Au) associated with granite/greenstone contact marginal to a regional gravity high. Peak value returned of 20.8 ppb Au .

Priority Anomaly 2 – Jatz Prospect (over 1km strike at > 5ppb Au) associated with an interpreted embayment in the granite near the interpreted granite/greenstone contact zone. Peak value returned of 13.5 ppb Au . Priority Anomaly 3 – Cruskit Prospect (over 1.5km strike at > 5ppb Au) associated with a potential shear zone along the granite/greenstone contact. Peak value of 11.6 ppb Au .

The robust anomalism, coupled with favourable interpreted geology based on the available aeromagnetic and gravity data resulted in the decision being made to undertake a regional reconnassaince drilling programme to test for basement mineralisation.

Drilling

Following the receipt of Heritage approvals, an aircore rig was mobilised to undertake the first ever drilling programme over the Company’s tenement holding.

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JATZ CAPTAINS
PROSPECT PROSPECT
CRUSKIT
PROSPECT
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Figure 2: Yamarna Project geology and confirmed geochemical anomaly locations.

1 http://www.montezuma.com.au/images/uploads/150729_Results_Confirm_Yamarna_Gold_Targets.pdf

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005

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A total of 202 holes were completed for 7,525 metres. Samples were collected in four metre composites downhole except at notable geological boundaries, where sampling was constrained to the different units with particular attention given to separating transported cover, interface zones, palaeo-surfaces and underlying basement. A total of 2,284 samples were submitted for assay by Aqua Regia with an ICP-MS finish for gold and selected pathfinder elements including Au, Ag, As, Cu, Pb, Zn, Ni, Sb, Bi, W, Te and Mo. This release details results for the first 522 samples from the programme, representing approximately 25% of the samples submitted for assay.

The aircore programme was designed to test for basement (Archaean) hosted primary gold mineralisation beneath multiple regional scale historic gold in soil anomalies[2] .

The lack of a weathered profile in the Archean basement has meant that, for almost all holes, the bottom of hole sample represents the top of the Archean basement rocks with little or no depth penetration, hence the programme should be viewed as a reconnaissance geochemical drilling programme. This further enhances the significance of these early results which only represent approximately 25% of the programme with the remaining 75% of samples in the laboratory with results pending. The Archean geology intersected in the drilling was varied and indicates lithological and structural complexity. The geology included multiple types of granite and mafic and meta-sedimentary rocks with quartz veining present in a number of the targeted areas. The overlying cover is variable in thickness, from approximately 12 metres in western areas to over 40m to the east. The cover comprises a combination of recent Aeolian dune material and various phases of alluvials and possible lacustrine members currently interpreted as Permian in age.

Samples returned to date indicate that the profile has four horizons that show significant gold anomalism (see Figure 2), with the surface anomaly present in the soils data reflected in the upper parts of the drilling, an interpreted paleo-surface within the cover sequences, a strong interface anomaly at the Archean/Permian contact and primary basement hosted mineralisation in three holes. The basement mineralisation intersected also showed a moderate to strong copper, bismuth, moybdenum and tellurium association, a common assemblage in meso-thermal gold deposits in the Yilgarn Province.

The strength and scale of the anomalism in these zones gives weight to the technical merit of the project and follow-up drilling will be undertaken once all results from this programme have been received.

2Website reference http://www.montezuma.com.au/images/uploads/150729_Results_Confirm_Yamarna_Gold_Targets.pdf

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	RL (m)	Dip **(0) **	Azimuth **(mag.0) **	Total Depth (m)	Depth From (m)	Depth To (m)	Intercept Width (m)	Au (ppb)	Interpreted Horizon
YAAC001	596504	6888804	410	-60	090	31	4	11	7	87	Recent Cover
YAAC002	596521	6888803	410	-90	000	36	14	18	4	173	Palaeo - Surface
YAAC007	597000	6888800	410	-90	000	46	16	20	4	91	Palaeo - Surface
YAAC015	596449	6888802	410	-90	000	36	0	8	8	55	Recent Cover
	and and						8 28	12 32	4 4	57 52	Palaeo - Surface Archaean/Permian Interface
YAAC016	596401 and and	6888790	410	-90	000	39	4 16 20	8 20 24	4 4 4	68 2281 246	Recent Cover Palaeo - Surface Palaeo - Surface
YAAC017	596351	6888795	410	-90	000	36	12	16	4	140	Palaeo - Surface
YAAC018	596303 and and	6888798	410	-90	000	39	12 20 24	16 24 28	4 4 4	703 168 338	Palaeo - Surface Palaeo - Surface Archaean/Permian Interface
YAAC020	596199	6888785	410	-90	000	35	16	20	4	53	Palaeo - Surface
YAAC027	594100 and	6889153	415	-90	000	14	8 12	12 13	4 1	65 89	Palaeo - Surface Archaean/Permian Interface
	and						13	14	1	2708*	Archaean Basement
YAAC037	594096	6888924	415	-90	000	45	44	45	1	136	Archaean Basement
YAAC043	594305	6888754	415	-90	000	33	28	32	4	170	Archaean Basement
YAAC046	594302	6889002	415	-90	000	30	28	29	1	83	Archaean Basement
YAAC051	594298	6889202	415	-90	000	18	0	4	4	66	Recent Cover
YAAC053	594295	6889250	415	-90	000	13	0	4	4	59	Recent Cover

Table 1: Significant gold assays >50ppb from recently completed aircore drilling at the Yamarna Project. All intersections are quoted as downhole widths. (Note - * indicates this is a Fire Assay Repeat following an over range result initially)

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005

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Figure 3: Collar locations and partial assays from recently completed

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005

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Figure 4: Schematic Regolith interpretation highlighting multiple aomalous horizons intersected in aircore drilling at Yamarna. Drawing not to scale, approximately 10X vertical exaggeration.

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005

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Project Background

The Yamarna Belt is historically underexplored and highly prospective for gold mineralisation. It has a current reported Mineral Resource by Gold Road Resources Limited (GOR) of 5.1 million ounces of gold[3] and hosts a number of new discoveries.

The only previous exploration recorded on Montezuma’s tenure has been by WMC in 1997 comprising 377 soil geochemical samples collected on a 1,600m x 200m grid and in filled to 400m x 200m around areas of gold anomalism[4] .

A total of 36 samples recorded Au greater than 5ppb (anomalously high) with a peak result of 22ppb. The anomalies are associated with and in a similar orientation to interpreted granite-greenstone contact positions on the eastern side of the same suite of rocks that host GOR’s Gruyere gold deposit.

Based on the regional geology and the coherent and extensive geochemical anomalism, Montezuma regards E38/2889 as having potential to host significant basement gold mineralisation.

BONNEVAL GOLD PROJECT FRANCE (UNDER APPLICATION)

The Bonneval application continues to progress through the application approval process and the market will be advised when any material developments transpire.

FOR MORE INFORMATION…

Justin Brown

Executive Director Phone: +61 8 6315 1400 Email: jbrown@montezuma.com.au

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

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The information in this report that relates to Exploration Results, Mineral Resources and Mineral Reserves is based on information compiled by Mr Bradley Drabsch who is a member of the Australasian Institute of Mining and Metallurgy. At the time that the Exploration Results, Mineral Resources and Mineral Reserves were compiled, Mr Drabsch was an employee of Montezuma Mining Company Ltd. Mr Drabsch 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 Drabsch consents to the inclusion of this information in the form and context in which it appears in this report.

3 Website reference http://www.goldroad.com.au/reports/GruyereMaidenResourceAugust2014.pdf

4 http://geodocs.dmp.wa.gov.au/common/searchAPI.do?cabinetId=2301&Report_Ref=A54286

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005 | Phone +61 8 6315 1400

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In accordance with Listing Rule 5.23.2, the Company confirms in the subsequent public report that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Please note with regard to exploration targets, the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

Montezuma Mining Company Limited ASX Additional Information for Quarterly Report to 30 September 2015

	Tenement reference	Location	Interest at beginning of quarter	Acquired / Disposed	Interest at end of quarter
The mining tenements held at the end of the quarter and their location	E09/1985	Yalbra WA	15%	N/A	15%
	E15/1447	Lake Lefroy WA	100%	N/A	100%
	E20/659	Eelya Hill WA	10%	N/A	10%
	P20/2018	Eelya Hill WA	10%	N/A	10%
	E20/861	Sunday Well WA	100%	Disposed	0%
	E20/874	Sunday Well WA	100%	N/A	100%
	E20/880	Yallon Well	0%	Acquired	100%
	E28/2313	Green Dam WA	100%	N/A	100%
	E28/2327	Green Dam WA	100%	N/A	100%
	E28/2504	Manners Flat WA	100%	N/A	100%
	E28/2550	Pinnacles WA	100%	N/A	100%
	E36/843	Leinster WA	100%	N/A	100%
	E37/1176	Leonora WA	100%	N/A	100%
	E38/2889	Malle Hen Point WA	100%	N/A	100%
	E38/2961	Mt Venn WA	100%	N/A	100%
	E38/2999	Malle Hen Point North WA	100%	N/A	100%
	E46/982	Pilbara WA	100%	N/A	100%
	E51/1622	Telegraph Well WA	100%	N/A	100%
	E51/1693	Mt Maitland WA	100%	N/A	100%
	E52/1529	Mt Padbury WA	100%(Note 1)	N/A	100%(Note 1)
	E52/2350	Butcher Bird WA	100%	N/A	100%
	E52/2647	Little Well South WA	100%	Disposed	0%
	E52/2658	Butcherbird South WA	100%	N/A	100%
	E52/2831	Millidie Creek WA	100%	N/A	100%
	E52/3082	Mt Padbury WA	100%	N/A	100%
	E52/3082	Mt Padbury WA	100%	N/A	100%
	E52/3142	Butcher Bird North	100%	Disposed	0%
	E52/3272	Butcher Bird East	100%	N/A	100%

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005 | Phone +61 8 6315 1400

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	Tenement reference	Location	Interest at beginning of quarter	Acquired / Disposed	Interest at end of quarter
	E52/3337	Butcher Bird North	0%	Acquired	100%
	E53/1834	Mt Keith WA	100%	N/A	100%
	E58/469	Wondinong WA	100%	Disposed	0%
	E58/489	Challa Well WA	100%	N/A	100%
	E58/494	Naluthanna Hill	0%	Acquired	100%
	E59/2143	Twin Peaks	0%	Acquired	100%
	E63/1750	Lake Johnston WA	100%	N/A	100%
	E77/2294	Holleton WA	100%	N/A	100%
	E69/3311	Cunyu WA	100%	N/A	100%

Notes:

1) 100% interest held in all minerals other than iron ore and manganese.

Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005 | Phone +61 8 6315 1400

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