ELEMENTOS LIMITED — Board/Management Information 2016

Jul 6, 2016

==> picture [596 x 120] intentionally omitted <==

7 July 2016

COMPANY UPDATE AND MANAGEMENT CHANGES

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) has been actively progressing the Cleveland tin and tungsten project in Tasmania towards development. The Company’s objective is to move quickly towards production and cash flow, through a low-capital, staged development strategy, with the lowest possible dilution of shareholders.

The Cleveland environmental permitting process and Mining license application are progressing towards completion. A number of initiatives for reducing the initial capital cost of the tailings retreatment project are being assessed. This includes moving the Tailings Storage Facility (TSF) to a new location. A Scoping Study on the conceptual plan is nearing completion and has indicated a meaningful capital cost saving is achievable.

Since the completion of a positive Pre-Feasibility and two Scoping Studies on the Cleveland assets during 2015, the resource equity and commodity markets have been depressed, creating a difficult environment for raising new equity capital. As a consequence, the Company believed the appropriate development strategy for Cleveland was to secure a funding and/or off-take partner for the project, and avoid a high level of shareholder dilution whilst the shares traded at low prices. The Company is continuing to advance its strategic off-take and partnering process, and a number of companies are undertaking due diligence and/or site visits.

Given the protracted negotiations of the partnering process, the Company believes it is prudent it continues to maintain a very low-cost corporate overhead and preserve its cash resources. As such, the Company has accepted the resignation of Chief Executive Officer, Tim McManus. The Company thanks Mr McManus for his effort in progressing Cleveland to an advanced stage; which has included completion of a Pre-Feasibility Study, Scoping studies and an advanced stage of permitting. Non-Executive Director, Chris Dunks, will continue the permitting and partnering process in an Executive Director capacity.

Despite the on-going difficult operating environment, the Company is encouraged by the recent increase in the LME tin price from US$13,810 in January 2016 a recent high of US$18,145 per tonne a 31% increase. The Company is also encouraged by the recent increase in equity capital raisings in the junior resources sector. The combination of improved prices and market sentiment will hopefully result in attracting a development partner for the Cleveland project.

Tin is also increasingly becoming a focus in the rapidly growing speciality metals sector, including battery technology. These new technologies are increasing the number of demand applications for tin metal which is increasingly under supply pressure due to the lack of new project developments. The Company has posted on its website an International Tin Research Institute (ITRI) Tin Technology presentation presented at PDAC for your perusal. http://elementos.com.au/wp/wp-content/uploads/2015/11/MediaJul16_PDAC_ITRI-presentation.pdf .

==> picture [496 x 50] intentionally omitted <==

==> picture [97 x 35] intentionally omitted <==

Despite the difficulties and depressed share price in recent years, the Company has a substantial, and unique asset base with development potential. Whilst the slow progress is frustrating, the Company is taking prudent actions to preserve shareholder value until such time that the markets improve or a strategic partner is identified.

For more information, please contact:

Duncan Cornish

Company Secretary Phone: +61 7 3212 6299

Email: admin@elementos.com.au

Elementos is an Australian, ASX-listed metals company, focused on the development of Cleveland, an advanced stage tin-copper and tungsten project in Tasmania.

Please visit us at www.elementos.com.au

Page 2 of 2