ELEMENT 25 LIMITED — Regulatory Filings 2017

Nov 21, 2017

ABOUT MONTEZUMA MINING

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22 NOVEMBER 2017

MONTEZUMA ACHIEVES TARGET PURITY LEVELS FOR BATTERY GRADE EMD PRODUCTION

HIGHLIGHTS

• Ø PLS purification testwork achieves industry specification for producing Electrolytic Manganese Dioxide (“ EMD ”).

• Ø Leaching step completed using a coarse 6mm particle size.

• Ø Next step is to produce a crystalline product for final assay to underpin discussions with battery cathode manufacturers.

• Ø Discussions initiated with key consultants to commence work on process optimisation, up-scaling and piloting studies .

• Ø Discussions initiated with CSIRO to negotiate the terms of a collaboration framework to commercialise the process .

Montezuma Mining Company Ltd (“Montezuma” or “Company”) is pleased to advise that the results of the recent round of test work on the design of a hydrometallurgical flowsheet for the Company’s 100% owned Butcherbird Manganese Project have exceeded expectations.

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

Montezuma is currently working to develop a flowsheet to produce high purity manganese products for use in the Li-Ion battery industry.

Montezuma also has 100% interests in the Holleton and Green Dam Gold Projects, the Pinnacles Cobalt Project and the Lake Johnson Lithium Project, all in Western Australia.

MARKET DATA

MARKET DATA
ASX code:	MZM
Share price:	$0.265
Shares on issue:	83.5M
Market capitalisation:	$22.1M
Cash (at 30 September):	~$3.8M
Listed Investments (at 30 Sept):	~$6.7M

BOARD AND MANAGEMENT

Chairman Seamus Cornelius Executive Director Justin Brown Non-Executive Director John Ribbons Exploration Manager Dave O’Neill

In July of this year, the Company reported results from the successful test work on the leaching of the Butcherbird manganese ores into solution which produced a pregnant leach solution (“PLS”) with in excess of 90% manganese purity[1] .

This led to the immediate commencement of investigations to establish the optimal method for purifying the PLS to allow the production of marketable manganese products including battery

grade manganese sulphate, Electrolytic Manganese Metal (“EMM”) and Electrolytic Manganese Dioxide (“EMD”) .

The Company is pleased to advise that the testwork has successfully produced a PLS which exceeds industry specifications for the production of a high purity EMM or EMD product. The impurity levels for all key contaminants are well below their respective limits.

Executive Director Justin Brown said “ The process flowsheet design work conducted this year has been a resounding success and positions Montezuma for a potentially company making phase as we transition this technology breakthrough into a real world commercial setting to unlock the value of this very large manganese resource ”.

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

1 http://mzm.live.irmau.com/irm/PDF/1664_0/TestWorkExceedsExpectations

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Work is now focussed on the production of a crystalline manganese sulphate product that meets the specifications of Li-Ion battery cathode manufacturers.

The work on the Butcherbird manganese ore has been conducted in collaboration with the Commonwealth Scientific and Industrial Research Organisation (“CSIRO”) Process Science and Technology Group. Following the success of the investigations, the Company and CSIRO have initiated discussions to enter into a collaborative framework to pursue opportunities to commercialise the technology outside of the Butcherbird Project. To this end, the Company has engaged legal advisers to confirm the best IP protection strategy to underpin commercialisation efforts.

Although there remain a number of avenues to further optimise the process flowsheet, the Company believes it is now in a position to accelerate the development of the Butcherbird Project and has initiated discussions with a number of key consulting groups with a view to moving quickly toward feasibility work in the new year. In parallel with the finalisation of the purification studies which are currently being undertaken, the expectation is that the first stages of the feasibility work will include detailed flowsheet modelling and optimisation, followed by a piloting phase in Q1 of 2018 to take the process from a lab scale batch process to a scaled up, continuous process more in line with a commercial scale implementation.

The assay results from the purified PLS are shown in Table 1, normalised to 100 g/l Mn content and benchmarked against a widely used, industry accepted North American specification. The results exceed expectations and are comfortably below the requisite contaminant levels, meaning the PLS is compatible with the production of both EMM and EMD.

Element	Mn	Cu	Co	Ni	Fe	K	Li	Na	Ca	Mg	P	Cl	Al	Cr	Ti	B
	g/l	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm
Industry Standard	100	1	3	3	3	41	41	407	1222	4072	2	2036	204	2	2	2
PLS (normalised
to 100g/l Mn)
Purified	100	0.2	1.5	0.2	0.3	17.3	-1	44	536	585	-1	*	0.9	0.3	0.2	-1
Butcherbird PLS
(normalised to
100 g/l Mn)
		As	V	Ba	Bi	Cd	Tl	Ga	Se	Te	Mo	Sb	Ge	Pb	Hg	Zn
		ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm
Industry Standard		2	2	2	2	0.2	0.2	10	2	2	2	0.2	0.2	0.2	0.2	0.2
PLS (normalised
to 100g/l Mn)
Purified		0.1	0.2	0.3	0	-1	0.057	8.1	-1	-1	-1	-1	-1	-1	-1	0.4
Butcherbird PLS
(normalised to
100 g/l Mn)

Table 1. Assay of the purified PLS from the leaching of Butcherbird manganese ores showing levels of key contaminants important in the production of EMM and EMD. Assays undertaken by Bureau Veritas using the ICP-AES method. -1 indicates assay is below detection.* indicates assay value pending.

Work is now being undertaken to produce a crystalline manganese sulphate product from the PLS which can be benchmarked against industry specifications for use in the manufacture of lithium ion battery cathodes . Very low levels of certain impurities such as arsenic, lead and cadmium suggest good potential to also explore product options in the agricultural sector.

ABOUT THE BUTCHERBIRD PROJECT

Montezuma’s 100% owned Butcherbird Manganese Project host Australia’s largest onshore manganese resource in multiple outcropping deposits.

The work that has been completed by CSIRO has successfully developed a hydrometallurgical flowsheet which can unlock the large volume of manganese metal contained within these deposits and positions Montezuma to be a producer of high purity, high value manganese prodcuts .

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Prospect	Tonnes (Mt)	Mn (%)	SiO2 (%)	Fe (%)	P2O5 (%)	Al2O3 (%)
Yanneri Ridge
Inferred	48.0	10.7	43.0	11.1	0.262	10.7
Indicated	22.5	12.0	43.8	11.6	0.297	10.6
Additional Deposits
Inferred	110.3	10.6	44.4	11.9	0.3	11.0
Total	180.8	10.8	43.9	11.7	0.3	10.9

Table 2. JORC 2012 Butcherbird Mineral Resource Estimate[2]

There are no material changes to the assumptions used to provide the JORC 2012 Butcherbird Resource Estimate.

ABOUT HIGH PURITY MANGANESE

Whilst high purity manganese makes up only 10% of the manganese market by volume, it accounts for an estimated 40% of the total value in sales of the market[3] .

The production of high purity products from Butcherbird ores allows the Company to initiate commercial studies into becoming a producer of high value products rather than attemting to compete in the traditional bulk commodity manganese markets.

The flowsheet developed for Butcherbird is unique in that it is conducted at atmospheric pressure, ambient temperature and at a coarse grind size, all of which reduce costs over traditional approaches.

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High Purity Manganese
$3,600,000,000 pa
Manganese Ore
$5,491,000,000 pa
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2 Reference: Montezuma Mining Company Ltd ASX release dated 12 October 2017

3 1UBS Global Research May 2017 Assumes EMM price of USD$2,000/t Ref: https://www.metalbulletin.com/My-price-book.html?price=34473 Assumes manganese price of USD$3.23/dmtu Ref:https://www.south32.net/docs/default-source/all-financial-results/reports-andpresentations/mamatwan-site-tour-2016.pdf

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

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.

JORC Table 1

JORC Code, 2012 Edition – Table 1 – Butcherbird Project Hydrometallurgical Test Work

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•The samples for metallurgical test work were selected from
techniques	specific specialised industry standard measurement tools	contiguous lengths of core that were considered to be typical in
	appropriate to the minerals under investigation, such as down hole	character to the bulk of the ore zones at Yanneri Ridge.
	gamma sondes, or handheld XRF instruments, etc). These	•Whole core was used to maximise the volume of sample.
	examples should not be taken as limiting the broad meaning of	•The drill core was combined into two bulk samples.
	sampling.	•The bulk test work samples were then beneficiated using a 950mm
	• Include reference to measures taken to ensure sample	rotary drum scrubber.
	representivity and the appropriate calibration of any measurement
	tools or systems used.
	• Aspects of the determination of mineralisation that are Material to
	the Public Report.
	• In cases where ‘industry standard’ work has been done this would
	be relatively simple (eg ‘reverse circulation drilling was used to
	obtain 1 m samples from which 3 kg was pulverised to produce a
	30 g charge for fire assay’). In other cases more explanation may
	be required, such as where there is coarse gold that has inherent
	sampling problems.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary	•A Diamond Drill Rig was used for the metallurgical program with
techniques	air blast, auger, Bangka, sonic, etc) and details (eg core diameter,	PQ sized core (85mm diameter).
	triple or standard tube, depth of diamond tails, face-sampling bit or	•9 holes were drilled into key areas of the Yanneri Ridge orebody
	other type, whether core is oriented and if so, by what method,	to twin historical RC drill holes.
	_etc). _
Drill sample	• Method of recording and assessing core and chip sample	•Recoveries are noted at the time of drilling and recorded in the
recovery	recoveries and results assessed.	MZM database.
	• Measures taken to maximise sample recovery and ensure	•Triple tubing was used within the weathered zones to maximise
	representative nature of the samples.	ore recovery.
	• Whether a relationship exists between sample recovery andgrade	•Close to 100% of core was recovered.

Criteria	JORC Code explanation	Commentary
	and whether sample bias may have occurred due to preferential
	loss/gainof fine/coarse material.
Logging	• Whether core and chip samples have been geologically and	•All samples have been logged to a level of detail to support the
	geotechnically logged to a level of detail to support appropriate	mineral resource estimations.
	Mineral Resource estimation, mining studies and metallurgical	•Qualitative: Lithology, alteration, mineralisation.
	studies.	•Quantitative: Sample assays.
	• Whether logging is qualitative or quantitative in nature. Core (or	•The entire length of the hole is geologically logged.
	costean, channel, etc) photography.	•All drill core is photographed.
	• The total length and percentage of the relevant intersections
	logged.
Sub-	• If core, whether cut or sawn and whether quarter, half or all core	•All hydro-metallurgy samples are prepared by the CSIRO
sampling	taken.	laboratory, Waterford, Western Australia.
techniques	• If non-core, whether riffled, tube sampled, rotary split, etc and	•The initial beneficiated ore sample material is further prepared
and sample	whether sampled wet or dry.	using simple physical separation techniques including size
preparation	• For all sample types, the nature, quality and appropriateness of	reduction and gravity.
	the sample preparation technique.	•Sample sizes are considered appropriate for the nature of the test
	• Quality control procedures adopted for all sub-sampling stages to	work.
	maximise representivity of samples.
	• Measures taken to ensure that the sampling is representative of
	the in situ material collected, including for instance results for field
	duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size of the
	material being sampled.
Quality of	• The nature, quality and appropriateness of the assaying and	•The metallurgical samples were assayed at the CSIRO and
assay data	laboratory procedures used and whether the technique is	Bureau Veritas laboratories using the ICP-AES/MS technique.
and	considered partial or total.	•The samples have been assayed for Au, Ag, Al, As, B, Ba, Be, Bi,
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments,	Ca, Cd, Ce, Co, Cr, Cs, Cu, Dy, Er, Eu, Fe, Ga, Gd, Ge, Hf, Hg,
tests	etc, the parameters used in determining the analysis including	Ho, In, K, La, Li, Lu, Mg, Mn, Mo, Na, Nb, Nd, Ni, P, Pb, Pd, Pr,
	instrument make and model, reading times, calibrations factors	Pt, Rb, Re, S, Sb, Sc, Se, Si, Sm, Sn, Sr, Ta, Tb, Te, Th, Ti, Tl,
	applied and their derivation, etc.	Tm, U, V, W, Y, Yb, Zn, Zr
	• Nature of quality control procedures adopted (eg standards,
	blanks, duplicates, external laboratory checks) and whether
	acceptable levels of accuracy (ie lack of bias) and precision have
	_been established. _

Criteria	JORC Code explanation	Commentary
Verification	• The verification of significant intersections by either independent	•All data has been checked for accuracy by Bureau Veritas and
of sampling	or alternative company personnel.	CSIRO staff.
and	• The use of twinned holes.	•No adjustments have been made to assay data.
assaying	• Documentation of primary data, data entry procedures, data
	_verification, data storage (physical and electronic) protocols. _
Location of	• Accuracy and quality of surveys used to locate drill holes (collar	•All collar coordinates were collected using handheld GPS in MGA
data points	and down-hole surveys), trenches, mine workings and other	94 – Zone 51.
	locations used in Mineral Resource estimation.
	• Specification of the grid system used.
	• Quality and adequacy of topographic control.
Data	• Data spacing for reporting of Exploration Results.	•The metallurgical test work drill holes have been selected based
spacing and	• Whether the data spacing and distribution is sufficient to establish	on their representivity of the Yanneri Ridge Orebody.
distribution	the degree of geological and grade continuity appropriate for the	•The metallurgical samples have been composited to produce two
	Mineral Resource and Ore Reserve estimation procedure(s) and	bulk samples.
	classifications applied.
	• _Whether sample compositing has been applied. _
Orientation	• Whether the orientation of sampling achieves unbiased sampling	•All drill holes are drilled vertically as the stratigraphy is generally
of data in	of possible structures and the extent to which this is known,	sub-horizontal.
relation to	considering the deposit type.	•There is no known sample biasing.
geological	• If the relationship between the drilling orientation and the
structure	orientation of key mineralised structures is considered to have
	introduced a sampling bias, this should be assessed and reported
	if material.
Sample	• The measures taken to ensure sample security.	•NA
security
Audits or	• The results of any audits or reviews of sampling techniques and	•The data and sampling techniques are reviewed internally.
reviews	data.	•Audits have also been completed by Mineral Processors WA,
		Snowdens and CSIRO.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership including	•The Butcherbird Project consists of a single granted exploration
tenement	agreements or material issues with third parties such as joint	license – E52/2350.
and land	ventures, partnerships, overriding royalties, native title interests,	•The tenure is 100% owned by Montezuma Mining Corporation Ltd.
tenure	historical sites, wilderness or national park and environmental
status	settings.
	• The security of the tenure held at the time of reporting along with
	any known impediments to obtaining a licence to operate in the
	area.
Exploration	• Acknowledgment and appraisal of exploration by other parties.	•The historical exploration data has been collected by various
done by		parties and has been reported to high standards.
other		•The methods of exploration and techniques used are considered
parties		appropriate for the deposit types sought (Mn, Cu)
Geology	• Deposit type, geological setting and style of mineralisation.	•Butcherbird is a stratiform sedimentary manganese deposit.
		•The deposits are hosted within the Ilgarari Formation which is
		generally flat lying with gentle open folding in places.
		•The manganese mineralisation within the ore zones is divided into
		three distinctive units – a high grade manganiferous cap,
		supergene enrichedmanganiferouslaterite and basalshale.
Drill hole	• A summary of all information material to the understanding of the	•See historical ASX releases regarding the Butcherbird Mineral
Information	exploration results including a tabulation of the following	Resources.
	information for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in
	metres) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth

Criteria	JORC Code explanation	Commentary
	o hole length.
Data	• In reporting Exploration Results, weighting averaging techniques,	•NA
aggregation	maximum and/or minimum grade truncations (eg cutting of high
methods	grades) and cut-off grades are usually Material and should be
	stated.
	• Where aggregate intercepts incorporate short lengths of high
	grade results and longer lengths of low grade results, the
	procedure used for such aggregation should be stated and some
	typical examples of such aggregations should be shown in detail.
	• The assumptions used for any reporting of metal equivalent values
	_should be clearly stated. _
Relationshi	• If the geometry of the mineralisation with respect to the drill hole	•NA
p between	angle is known, its nature should be reported.
mineralisati	• If it is not known and only the down hole lengths are reported,
on widths	there should be a clear statement to this effect (eg ‘down hole
and	length, true width not known’).
intercept
lengths
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•NA
	intercepts should be included for any significant discovery being
	reported These should include, but not be limited to a plan view of
	_drill hole collar locations and appropriate sectional views. _
Balanced	• Where comprehensive reporting of all Exploration Results is not	•NA
reporting	practicable, representative reporting of both low and high grades
	and/or widths should be practiced to avoid misleading reporting of
	_Exploration Results. _
Other	• Other exploration data, if meaningful and material, should be	•NA
substantive	reported including (but not limited to): geological observations;
exploration	geophysical survey results; geochemical survey results; bulk
data	samples – size and method of treatment; metallurgical test results;
	bulk density, groundwater, geotechnical and rock characteristics;
	potential deleterious or contaminating substances.

Criteria	JORC Code explanation	Commentary
Further	• The nature and scale of planned further work (eg tests for lateral	•The next phase of work will focus on finalising a processing
work	extensions or depth extensions or large-scale step-out drilling).	flowsheet, and potential pliot plant and mining scoping studies.
	• Diagrams clearly highlighting the areas of possible extensions,
	including the main geological interpretations and future drilling
	_areas, provided this information is not commercially sensitive. _