ELEMENT 25 LIMITED — Share Issue/Capital Change 2008

Jul 31, 2008

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Montezuma Mining Company Ltd

ACN

119 711 929

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	i) Ordinary Shares ii) Options iii) Options
	i) 400,000 ii) 100,000 iii) 400,000
	i) Ordinary Shares ii) Options exercisable at 20 cents expiring on 31 August 2011. iii) Options exercisable at 20 cents on 2 March 2012.

• See chapter 19 for defined terms.

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4 Do the+securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	i) Yes ii) Yes iii) No
	i) 10.5 cents (Deemed Price) ii) Nil iii) Nil
	i) Pursuant to resolution approved by shareholders at general meeting held on 30 July 2008. ii) Pursuant to resolution approved by shareholders at general meeting held on 30 July 2008. iii) Pursuant to employment contract.

7 Dates of entering[+] securities into 31 July 2008 uncertificated holdings or despatch of certificates

Number ~~+~~ Class 8 Number and +class of all 34,281,070 Ordinary Shares +securities quoted on ASX 11,077,142 20 cent options ( including the securities in clause expiring on 31 August 2 if applicable) 2011.

• See chapter 19 for defined terms.

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Number +Class 9 Number and +class of all 7,412,500 Ordinary Shares +securities not quoted on ASX 5,073,125 31 August 2011 – 20 ( including the securities in clause cent options 2 if applicable) 4,500,000 31 August 2011 – 35 cent options 1,350,000 2 March 2012 – 20 cent options 1,500,000 23 July 2011 – 35 cent options

10 Dividend policy (in the case of a N/A trust, distribution policy) on the increased capital (interests)

Part 2 - DELETED – NOT APPLICABLE

Part 3 - DELETED – NOT APPLICABLE

Sign here: (Company secretary) Print name: John Ribbons

Date: 1 August 2008

== == == == ==

• See chapter 19 for defined terms.

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