ELEMENTOS LIMITED — Capital/Financing Update 2011

Jan 27, 2011

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28 January 2011

Non-Renounceable Rights Issue – Letter to Foreign Holders

The attached letter has today been dispatched to all Elementos Limited shareholders with a registered address outside of 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 - 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 Prospectus in relation to the Rights Issue was lodged with the Australian Securities & Investments Commission and ASX on 28 January 2011 and is available on the ASX website and also on the Company’s website www.elementos.com.au.

The indicative timetable for the Rights Issue is as follows:

Event	Date
Rights issue prospectus lodged with ASIC andASX	28 January 2011
Notice with information on Rights Issue sent toShareholders	28 January 2011
Shares commence trading on ASX on an exrights basis	2 February 2011
Record date for participation in rights issue	8 February 2011
Prospectus dispatched to Shareholders	10 February 2011
Closing time and date for acceptance andpayment in full under rights issue (5.00pmEDST)	25 February 2011

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

• 2 -

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	3 March 2011
Shareholder Statements for New Shares
issued under Offer
Normal Trading commences for New Shares	4 March 2011
on ASX

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.

The Rights Issue is not underwritten.

In accordance with ASX Listing Rules, Elementos has considered the number of shareholders with registered addresses outside Australia, New Zealand and Hong Kong, the number and value of the shares held by those shareholders and the number of New Shares those shareholders would be offered pursuant to the Rights Issue. Taking this into consideration, as well as the costs of complying with the legal requirements and the requirements of the regulatory authorities relating to the shareholders with registered addresses outside of Australia, New Zealand and Hong Kong, Elementos has formed the view that it is unreasonable to extend the Rights Issue to shareholders with registered addresses outside of Australia, New Zealand and Hong Kong and that the offer pursuant to the Rights Issue will only be extended to Elementos Shareholders on record as at 7pm EDST on 8 February 2011 with registered addresses in Australia, New Zealand or Hong Kong.

Accordingly, as a shareholder with a registered address outside of Australia, New Zealand or Hong Kong, the offer pursuant to the Rights Issue will not be extended to you and you will not be entitled to participate in the Rights Issue.

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