ELEMENTOS LIMITED — Capital/Financing Update 2011

Jan 27, 2011

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28 January 2011

Non-Renounceable Rights Issue – Letter to Shareholders

The attached letter has today been dispatched to all Elementos Limited shareholders with a registered address in Australia, New Zealand or Hong Kong.

For and on behalf of the Board

Paul Crawford Company Secretary Phone: (07) 3871 3985 Email: admin@elementos.com.au Website: elementos.com.au

ELEMENTOS LIMITED ABN 49 138 468 7560 Level 1, 349 Coronation Drive, Milton Qld 4064

TELEPHONE +61 3871 3985 FACSIMILE +61 7 3720 8988 EMAIL admin@elementos.com.au WEBSITE www.elementos.com.au

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28 January 2011

[ADDRESS] [ADDRESS] [ADDRESS] [ADDRESS] [ADDRESS] [ADDRESS]

Dear Shareholder,

ELEMENTOS LIMITED – PRO RATA NON - RENOUNCEABLE RIGHTS ISSUE

On 29 December 2011, Elementos Limited ( Elementos or Company ) announced a capital raising by a 1 for 4.48 pro rata non-renounceable rights issue to Shareholders at 26 cents per share to raise approximately $3,614,000 before issue costs ( Rights Issue ).

The funds raised, together with Elementos’ existing cash reserves, will be utilised for:

• Fast-tracking the Company’s projects;

• Enabling the Company to continue its exploration and development work;

• Meeting other corporate and entitlement offer costs; and

• working capital.

The Rights Issue of Shares ( New Shares ) is fully explained in the Prospectus ( Prospectus ), which has been lodged with ASIC and released on to the ASX announcements platform. A copy of the Prospectus is available on the ASX website and also on the Company’s website www.elementos.com.au.

A maximum of 13,900,000 New Shares will be issued under the Offer. If all the holders of vested options to acquire Ordinary Shares in the Company exercise those options prior to the record date of 8 February 2010, an additional 3,700,000 New Shares will be issued.

ELEMENTOS LIMITED ABN 49 138 468 7560 Level 1, 349 Coronation Drive, Milton Qld 4064

TELEPHONE +61 3871 3985 FACSIMILE +61 7 3720 8988 EMAIL admin@elementos.com.au WEBSITE www.elementos.com.au

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More information is set out in the Prospectus. Further, the Company has released an updated form 3B on ASX, containing detailed information to which Shareholders are referred.

All fractional entitlements under the Rights Issue will be rounded down to the nearest whole number. Shareholder approval is not required for the Offer.

The New Shares issued under the Offer will be fully paid ordinary shares ranking equally in all respects with fully paid ordinary shares in the Company already on issue.

The Company has applied for quotation of New Shares to be issued pursuant to the Offer, on ASX.

The pro-rata Offer is non-renounceable, meaning that entitlements cannot be sold or otherwise transferred. The Rights Issue is not underwritten.

Eligible Shareholders:

The Rights Issue is for all Elementos Shareholders on record as at 5pm (EDST) on 8 February 2011 ( Record Date ) with registered addresses in Australia, New Zealand or Hong Kong. The Company has determined it is unreasonable to make offers to Shareholders other than those with registered addresses in Australia, New Zealand and Hong Kong on the Record Date, having regard to the number of Shareholders outside Australia, New Zealand and Hong Kong, the number and value of the New Shares that would be offered and the cost of complying with legal and regulatory requirements outside those countries.

The indicative timetable for the Rights Issue is as follows:

Event	Date
Rights issue prospectus lodged with ASIC and ASX	28 January 2011
Notice with information on Rights Issue sent to Shareholders	28 January 2011
Shares commence trading on ASX on an ex rights basis	2 February 2011
Record date for participation in rights issue	8 February 2011

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Prospectus dispatched to Shareholders	10 February 2011
Closing time and date for acceptance and payment in full under rights issue (5.00pm EDST)	25 February 2011
Shares quoted on a deferred settlement basis	28 February 2011
Notice of under-subscriptions to ASX	1 March 2011
Allotment of New Shares and Dispatch of Shareholder Statements for New Shares issued under Offer	3 March 2011
Normal Trading commences for New Shares on ASX	4 March 2011

The timetable is indicative only and subject to change. Subject to the ASX Listing Rules, the Directors of Elementos reserve the right to vary these dates, including the Closing Date, without prior notice.

Please contact Mr Paul Crawford on +61 7 3871-3985 if you have any queries regarding the Rights Issue or your eligibility to participate in the Rights Issue.

For and on behalf of the Board

Paul Crawford

Company Secretary