ELEMENT 25 LIMITED — Regulatory Filings 2017

Jul 19, 2017

ABOUT MONTEZUMA MINING

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20 JULY 2017

RECONNAISSANCE NICKEL SULPHIDE, COBALT AND GOLD DRILLING PROGRAMME COMPLETED AT THE PINNACLES PROJECT

• Eight reverse circulation drill holes completed for 1,335m to test multiple target types with all assays pending :

• Nickel sulphide : two late time bedrock conductors identified in a recent EM survey, one of which is located beneath a historic sulphide intercept of 2m @2.3% Ni[1] .

• Cobalt : confirmation drilling of high grade cobalt identified in historic drilling including intercepts of 16m @ 0.27% Co from 18m[2] . Handheld XRF analysis indicates significant shallow cobalt mineralisation over about 40m downhole.

• Gold : historic work failed to analyse for gold in almost all drillholes however strong arsenic anomalism is clearly defined over significant strike lengths. Programme tests for gold association within the arsenic enriched rocks.

• Drillhole one tested the southern EM anomaly and;

• intersected approximately 200m of adcumulate ultramafic with bands of cloud sulphide with elevated nickel values measured with handheld XRF analyser.

• The base of the ultramafics strongly sheared with 30m of sheared, sulphidic quartz in serecite altered basalts which will be assayed specifically for gold and pathfinders.

• The surface EM anomaly is unexplained, with downhole EM indicating a bedrock conductor beneath the drilling.

• Drillhole four tested the northern anomaly and intersected 53m of strong disseminated to massive sulphide which are not nickel enriched but may be prospective for other metals.

• A number of other drillholes intersected strongly altered rocks with variable levels of sulphide, silica and carbonate alteration plus or minus quartz veining.

Montezuma Mining Company Ltd (“Montezuma” or “Company”) is pleased to advise that a reconnaissance drilling programme comprising 8 holes for 1,335m has been completed at the Company’s 100% owned Pinnacles Cobalt-Nickel Project.

All samples have been submitted to the laboratory and assays are pending.

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

Montezuma has 100% interests in the Yamarna Gold Project in the Yamarna Greenstone Belt, the Holleton Gold Project in the Wheat Belt region and the Butcherbird Manganese/Copper Project in the Murchison region, all located in Western Australia.

MARKET DATA

MARKET DATA
ASX code:	MZM
Share price:	$0.14
Shares on issue: Market capitalisation: Cash (at 31 March):	83.5M $11.7M ~$4.3M
Listed Investments:	~$6.7M

BOARD AND MANAGEMENT

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

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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

1 See company announcement dated 17 May 2017 2 See company announcement dated 10 May 2017

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Figure 1: Drillhole collar location plan

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Figure 2: Nickel sulphide target collar location plan and visual drilling results. Northern amnomaly explained by sedimentary sulphides and shales. Southern anomaly offhole conductor remains untested. Intercepts are downhole widths.

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Figure 3: Schematic section along 6642425N showing historical drill holes, interpreted geology of PNRC0001 and untested DHEM conductor. Intercepts are downhole widths.

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	RL (m)	Dip **(0) **	Azimuth **(mag0) **	Total Depth (m)
PNRC0001	436049	6642443	390	-65	270	334
PNRC0002	436340	6643348	393	-65	270	297
PNRC0003	435276	6650012	403	-60	270	100
PNRC0004	435432	6650513	397	-60	225	150
PNRC0005	434716	6652156	401	-60	270	22
PNRC0006	433608	6654725	373	-60	240	142
PNRC0007	435315	6648560	401	-65	270	52
PNRC0008	436340	6643355	398	-65	282	238

Table 1: Drillhole collar location details.

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 – Pinnacles Project

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	 Nature and quality of sampling (eg cut channels, random chips, or	Reverse circulation (RC) percussion drill chips are collected
techniques	specific specialised industry standard measurement tools	through a cyclone and cone splitter at 1m intervals.
	appropriate to the minerals under investigation, such as down hole	The spitter is cleaned at regular intervals during drilling.
	gamma sondes, or handheld XRF instruments, etc). These	The splitter is cleaned and levelled at the end of each hole.
	examples should not be taken as limiting the broad meaning of sampling.	Mineralisation is determined qualitatively through rock type, sulphide and quartz content and intensity of alteration.
	 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to	Mineralisation is determined quantitatively via assay RC samples are pulverized to 75 µm, with elements determined by Fire Assay and MS finish, Aqua Regia and Multi Acid Digest
	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. Unusual commodities or mineralisation types
	(eg submarine nodules) may warrant disclosure of detailed
	information.
Drilling	 Drill type (eg core, reverse circulation, open-hole hammer, rotary	A Reverse Circulation (RC) Percussion Drilling Rig was used for
techniques	air blast, auger, Bangka, sonic, etc) and details (eg core diameter,	the reported program, using a truck mounted KWL 700 Rig and
	triple or standard tube, depth of diamond tails, face-sampling bit or	4.5” drill rods.
	other type, whether core is oriented and if so, by what method,
	_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	The sample splitter is cleaned at the end of each rod.

Criteria	JORC Code explanation	Commentary
	representative nature of the samples.	Wet samples due to excess ground water are noted where
	 Whether a relationship exists between sample recovery and grade	present.
	and whether sample bias may have occurred due to preferential	No relationship between grade and recovery has yet been
	loss/gain of fine/coarse material.	established.
Logging	 Whether core and chip samples have been geologically and	All samples have been logged to a level of detail to support future
	geotechnically logged to a level of detail to support appropriate	use in a mineral resource calculation should it be required.
	Mineral Resource estimation, mining studies and metallurgical	Qualitative: Lithology, alteration, mineralisation.
	studies.	Quantitative: Vein percentage and 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.
	 The total length and percentage of the relevant intersections
	_logged. _
Sub-	 If core, whether cut or sawn and whether quarter, half or all core	RC chips are cone split and sampled dry where possible, and wet
sampling	taken.	when excess ground water could not be prevented.
techniques	 If non-core, whether riffled, tube sampled, rotary split, etc and	Sample condition (wet, dry or damp) is recorded at the time of
and sample	whether sampled wet or dry.	logging.
preparation	 For all sample types, the nature, quality and appropriateness of	Each 1m sample (approx. 2-3kg) is dried and pulverised to 85%
	the sample preparation technique.	passing 75µm in the laboratory.
	 Quality control procedures adopted for all sub-sampling stages to	Field duplicates are collected at a minimum spacing of every 50m,
	maximise representivity of samples.	and additionally where required.
	 Measures taken to ensure that the sampling is representative of	Sample sizes are considered appropriate for the nature of the
	the in situ material collected, including for instance results for field	targeted mineralisation.
	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	A portable XRF unit was used to aid logging and to provide early
assay data	laboratory procedures used and whether the technique is	assessment of potential mineralisation.
and	considered partial or total.	The portable XRF machine used is a Innov-X Delta unit, with the
laboratory	 For geophysical tools, spectrometers, handheld XRF instruments,	Soil (ppm detection level) and Mining Plus (%) functions used for
tests	etc, the parameters used in determining the analysis including	element determination.
	instrument make and model, reading times, calibrations factors	QAQC sampling procedures are used and include the use of
	applied and their derivation, etc.	duplicates (every 50m), standards and blanks.
	 Nature of quality control procedures adopted (eg standards,	The Down Hole Electro-Magnetic (DHEM) survey was completed
	blanks, duplicates, external laboratory checks) and whether	usinga SmartTEM receiver and Digital Atlantis 3 component

Criteria	JORC Code explanation	Commentary
	acceptable levels of accuracy (ie lack of bias) and precision have	probe.
	been established.	The DHEM data was captured at 10m intervals with 5m infill on
		anyanomalies.
Verification	 The verification of significant intersections by either independent	All data has been checked internally for accuracy by senior MZM
of sampling	or alternative company personnel.	geological staff.
and	 The use of twinned holes.	All data is collected via Geobank Mobile software and uploaded
assaying	 Documentation of primary data, data entry procedures, data	into the MZM Geobank Database following validation.
	verification, data storage (physical and electronic) protocols.	No adjustments have been made to assaydata.
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.	Downhole surveys are conducted at approximately 30m intervals
	 Specification of the grid system used.	using industry standard downhole survey tools.
	 Quality and adequacy of topographic control.
Data	 Data spacing for reporting of Exploration Results.	Drill hole collars are not spaced at regular intervals, but have been
spacing and	 Whether the data spacing and distribution is sufficient to establish	located to intersect specific targets.
distribution	the degree of geological and grade continuity appropriate for the	Hole spacing is appropriate for drilling at this early stage in the
	Mineral Resource and Ore Reserve estimation procedure(s) and	exploration process.
	classifications applied.	No sample compositing has been applied
	 Whether sample compositing has been applied.
Orientation	 Whether the orientation of sampling achieves unbiased sampling	The orientation of structures is not known with but drilling was
of data in	of possible structures and the extent to which this is known,	planned with appropriate orientations for the interpreted targets.
relation to	considering the deposit type.	Bias introduced by drill orientation with respect to structures is not
geological	 If the relationship between the drilling orientation and the	known.
structure	orientation of key mineralised structures is considered to have	More detailed interpretation will be required to assess this further.
	introduced a sampling bias, this should be assessed and reported
	if material.
Sample	 The measures taken to ensure sample security.	Chain of custody of the samples is managed by company
security		representatives and is considered appropriate. All samples are
		bagged in a tied numbered calico bag, grouped into larger
		polyweave bags and cable tied. Polyweave bags are placed into
		larger bulky bags with a sample submission sheet and tied shut.
		The bags are delivered directly to MinAnalytical in Canning Vale,
		WA who are NATA accredited for compliance with
		ISO/IEC17025:2005.

Criteria	JORC Code explanation	Commentary
Audits or	 The results of any audits or reviews of sampling techniques and	The data and sampling techniques are regularly reviewed
reviews	data.	internally. No external audits have taken place.

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 Pinnacles Project consists of a single granted exploration
tenement	agreements or material issues with third parties such as joint	license - E28/2577.
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 (Ni, Co)
Geology	 Deposit type, geological setting and style of mineralisation.	The majority of the historical exploration within the project area
		has been focused on the discovery of Archean ultramafic derived
		lateritic nickel and cobalt mineralisation.
		The current exploration program is focused on the discovery of
		komatiitic style nickel sulphide mineralisation, and Archean lateritic
		andgold lode style mineralisation.
Drill hole	 A summary of all information material to the understanding of the	Refer to document and associated table.
Information	exploration results including a tabulation of the following
	information for all Material drill holes:
	o easting and northing of the drill hole collar

Criteria	JORC Code explanation	Commentary
	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
	o hole length.
Data	 In reporting Exploration Results, weighting averaging techniques,	No top-cuts have been applied when reporting results.
aggregation	maximum and/or minimum grade truncations (eg cutting of high	Aggregate sample assays calculated using a length weighted
methods	grades) and cut-off grades are usually Material and should be	average.
	stated.	No metal equivalent values have been used for reporting of
	 Where aggregate intercepts incorporate short lengths of high	results.
	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	Only downhole lengths are reported.
p between	angle is known, its nature should be reported.	However, due to the nature of the mineralisation and deposit type,
mineralisati	 If it is not known and only the down hole lengths are reported,	these widths are believed to be close to true widths.
on widths and	there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	Further work is required to determine exact orientations.
intercept
lengths
Diagrams	 Appropriate maps and sections (with scales) and tabulations of	Refer to document.
	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	The historic data presented is selective to illustrate trends only.
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	Refer to document.
substantive	reported including (but not limited to): geological observations;
exploration	geophysical survey results; geochemical survey results; bulk

Criteria	JORC Code explanation	Commentary
data	samples – size and method of treatment; metallurgical test results;
	bulk density, groundwater, geotechnical and rock characteristics;
	_potential deleterious or contaminating substances. _
Further	 The nature and scale of planned further work (eg tests for lateral	Future work will include further compilation and detailed
work	extensions or depth extensions or large-scale step-out drilling).	interrogation of the recent and historical data and the planning of
	 Diagrams clearly highlighting the areas of possible extensions,	future exploration programs.
	including the main geological interpretations and future drilling	Follow-up exploration will likely incorporate further drilling, surface
	areas, provided this information is not commercially sensitive.	geophysics(Electro-Magnetics)andgeochemical surveys.