ELEMENT 25 LIMITED — Interim / Quarterly Report 2017

Oct 30, 2016

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Highlights:

YAMARNA

• ➤ RC drilling programme comprising multiple 200m line spaced deep RC traverses completed at the priority Jatz Prospect.

• ➤ Two high grade gold zones identified with assays of up to 17.5 g/t and 15.5 g/t respectively.

• ➤ One of the gold trends identified by the programme highlighted semi continuous gold mineralisation over 1km of strike.

• ➤ Programme designed to test for economic basement hosted mineralisation beneath the 1.5km long basement geochemical anomaly defined at Jatz in previous aircore drill programmes.

• ➤ Approvals for follow up drilling well advanced and drilling expected to recommence as soon as possible.

QUARTERLY OPERATIONS REPORT 31 OCTOBER 2016

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, the Holleton Gold Project and the Butcherbird Manganese Project located in Western Australia.

MARKET DATA

ASX code: MZM Share Price: $0.15 Shares on issue: 83,464,350 Market capitalisation: $12.5M

BOARD AND MANAGEMENT

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

HOLLETON

• ➤ Approvals process well advanced with on ground exploration work to commence as soon as access agreements are in place.

• ➤ Priority target identified at Brahma Prospect, where strong >100ppb gold in soil anomaly extends over 2.5km in strike and remains largely untested by deeper drilling.

• ➤ Only three deeper holes > 50m over a small part of the anomaly have been drilled. All three holes intersected broad mineralised intervals with grades up to 7.6 g/t Au .

CAPITAL RAISING

• ➤ $2.21M oversubscribed raising completed to sophisticated investors to fund accelerated exploration programmes.

• ➤ Blackwood Capital Limited acted as lead broker.

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

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

YAMARNA PROJECT: (MZM 100%)

Jatz RC Drilling Programme

The key work programme during the quarter involved deep RC drill testing of the priority Jatz gold anomaly where multiple phases of geochemical aircore drilling have highlighted a strongly anomalous gold trend over at least 1.5km in strike in prospective archea greenstone sequences.

A total of thirty holes for 3,438m were drilled on nominally 200m spaced lines to test the prospective corridor beneath widespread strong gold anomalism hosted in Archean greenstone basement lithologies.

The programme identified two high grade gold bearing structures within the corridor, one intersected by a single drill hole, the second showing semi continuous gold mineralisation along a strike of approximately 1km, open to the north[1] .

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	Nominal RL (m)	Dip **(0) **	Azimuth **(mag0) **	Total Depth (m)	Depth From (m)	Depth To (m)	Intercept Width (m)	Au (ppm)
YARC038	593059	6890803	393	-60	270	150	No significant assays
YARC039	593164	6890802	393	-60	270	150	80	84	4	0.7
And							90	94	4	0.2
YARC040	593261	6890803	394	-60	270	150	No significant assays
YARC041	593357	6890797	395	-60	270	150	140	142	2	9.0
					including		140	141	1	17.5
YARC042	593459	6890801	396	-60	270	138	No significant assays
YARC043	593227	6890364	395	-60	270	150	32	35	3	0.2
YARC044	593325	6890363	396	-60	270	150	138	139	1	1.8
YARC045	593427	6890361	396	-60	270	150	52	57	5	0.7
YARC046	593530	6890359	397	-60	270	150	No significant assays
YARC047	593563	6890362	398	-60	090	150	No significant assays
YARC048	593677	6890367	399	-60	270	150	No significant assays
YARC049	593340	6890001	399	-60	270	150	No significant assays
YARC050	593439	6890002	399	-60	270	150	No significant assays
YARC051	593540	6889998	499	-60	270	150	No significant assays
YARC052	593638	6889998	400	-60	270	150	No significant assays
YARC053	593738	6889999	400	-60	270	150	56	57	1	0.8
And							64	72	8	0.5
YARC054	593839	6889999	400	-60	270	150	No significant assays
YARC055	593461	6889602	402	-60	090	144	86	88	2	7.9
					including		87	88	1	15.5
And							126	138	12	0.9
					including		136	138	2	3.5
YARC056	593600	6889601	402	-60	270	150	No significant assays
YARC057	593705	6889603	403	-60	270	150	No significant assays
YARC058	593797	6889599	403	-60	270	150	No significant assays
YARC059	593903	6889598	403	-60	270	150	63	64	1	0.3
							87	88	1	0.4
YARC060	593999	6889597	403	-60	270	156	No significant assays

Table 1 : Significant assays from RC drilling at the Yamarna Project. All intercepts are downhole widths.

1 http://www.montezuma.com.au/images/uploads/160926_High_Grade_Gold_Trend_Confirmed_at_Jatz_FINAL.pdf

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

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Figure 1: Jatz drillhole collar locations and maximum downhole grades contoured over aeromagnetic base map.

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Figure 2: Regional target pipeline developed from reconnaissance aircore geochemical drilling.

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

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Planned Follow Up RC Drill Testing at Jatz

Follow up RC drilling is currently being planned to infill the high grade trend identified in the current round of work. Preparations are currently underway and the programme is expected to commence once final approvals have been received from the Traditional Owners.

HOLLETON PROJECT: (MZM 100%)

During the quarter, Montezuma announced the addition of the 100% owned Holleton Gold Project to its growing gold portfolio[2] . The Holleton exploration licence application E77/2334 covers approximately 115 km[2] of the Holleton Greenstone Belt, location approximately 400km east of Perth.

Previous exploration by Independence Group NL included a broad regional surface geochemical programme that defined numerous gold anomalies across an area of poorly exposed greenstones comprised mostly of metabasalts with minor schist, pegmatite and granite. Follow-up drilling across these anomalies was typically first-pass in nature with many intersections left open.

The best of the historic results is at the Brahma Prospect (“Brahma”) where a >2.5km long, >50ppb Au in soil anomaly was defined and subsequently followed up with shallow aircore drilling which confirmed a strong basement anomaly. Three diamond drillholes in a confined area of the anomaly represent the only holes drilled to deeper than 50m. The best intersections at Brahma include 73m @ 0.3 g/t Au (including 4m @ 1.6 g/t Au and 1m @ 7.6 g/t Au) however all three diamond holes returned broad mineralised intervals.

Numerous other intersections greater than 100ppb Au remain open along the length of the soil anomaly and Montezuma plans to re-commence exploration at Holleton upon the granting of E77/2334.

Montezuma regards the Brahma prospect as drill ready and intends to undertake drill testing of this target and a number of other more regional target areas as soon as the necessary approvals are received.

BONNEVAL GOLD PROJECT FRANCE (UNDER APPLICATION)

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

CORPORATE

During the Quarter Montezuma completed a capital raising of $2.21M before costs through the issue of 13M fully paid ordinary shares at an issue price of $0.17 per share[3] .

2 http://www.montezuma.com.au/images/uploads/160720_Priority_Gold_Targets_Identified_at_Holleton_Project_.pdf 3 http://www.montezuma.com.au/images/uploads/160805_Capital_Raising_Completed_FINAL.pdf

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

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The placement was managed by Blackwood Capital Limited. A fee of 6% of the funds raised was paid on completion, in addition to the allotment of 2M options exerciseable within four years of the date of issue at an exercise price of $0.30.

The funds will be used to accelerate exploration at the Company’s 100% owned gold exploration properties at Yamarna and Holleton where previous work has identified the potential for large scale gold sytems and for working capital.

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.

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 a contract 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 or anentity related to or controlled by Mr Drabsch holds options over fully paid shares in the Company at thte time of this report. Mr Drabsch consents to the inclusion of this information in the form and context in which it appears in this report.

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.

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

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Montezuma Mining Company Limited ASX Additional Information for Quarterly Report to 30 Sept 2016

	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	E15/1447	Lake Lefroy WA	100%	N/A	100%
	E20/659	Eelya Hill WA	10%	N/A	10%
	E20/874	Sunday Well WA	100%	Disposed	0%
	E20/880	Yallon Well WA	100%	N/A	100%
	E20/903	Yallon Well WA	100%	N/A	100%
	E20/904	Sunday Well WA	100%	N/A	100%
	E28/2313	Green Dam WA	100%	N/A	100%
	E28/2327	Green Dam WA	100%	N/A	100%
	E28/2630	Judada Rock WA	100%	N/A	100%
	E28/2577	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%
	E38/3092	Point Sunday	100%	N/A	100%
	E51/1622	Telegraph Well WA	100%	N/A	100%
	E51/1693	Mt Maitland WA	100%	Disposed	0%
	E51/1781	Mt Maitland WA	0%	Acquired	100%
	E52/1529	Mt Padbury WA	100% (Note 1)	N/A	100% (Note 1)
	E52/2350	Butcher Bird WA	100%	N/A	100%
	E52/2831	Millidie Creek WA	100%	N/A	100%
	E52/3082	Mt Padbury WA	100%	N/A	100%
	E52/3083	Mt Padbury WA	100%	Disposed	0%
	E52/3353	Peak Hill WA	100%	N/A	100%
	E52/3354	Peak Hill WA	100%	N/A	100%
	E52/3355	Peak Hill WA	100%	N/A	100%
	E52/3470	Butcher Bird WA	0%	Acquired	100%
	E58/494	Naluthanna Hill WA	100%	N/A	100%
	E58/509	Challa WA	100%	Disposed	0%
	E52/3438	Butcher bird North WA	100%	N/A	100%
	E59/2143	Twin Peaks WA	100%	Disposed	0%
	E59/2184	Twin Peaks WA	100%	N/A	100%
	E63/1750	Lake Johnston WA	100%	N/A	100%
	E63/1789	Lake Johnston WA	100%	N/A	100%
	E63/1820	Lake Johnston WA	100%	Acquired	100%
	E69/3419	Rainbow Well WA	100%	N/A	100%
	E77/2334	Holleton 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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