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ELEMENTOS LIMITED Capital/Financing Update 2011

Jan 27, 2011

64837_rns_2011-01-27_2fef7f28-3a9e-4f56-bb85-e0fbcb195253.pdf

Capital/Financing Update

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28 January 2011

Notice to Option Holders

The attached letter has today been dispatched to all Option Holders of Elementos Ltd. For and on behalf of the Board

Paul Crawford Company Secretary

Phone: (07) 3871 3985 Email: [email protected] 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 [email protected] WEBSITE www.elementos.com.au

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28 January 2011

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

Dear Option holder,

Re: Elementos Limited – Notice to Option Holder

The Option Register for Elementos Limited ( Company ) indicates that you are a holder of options to acquire ordinary shares in the capital of the Company ( Options ).

Notice is given to you that the Company intends to undertake a non renounceable pro-rata rights issue of new shares ( Rights Issues ), available for subscription by existing holders of ordinary shares in the Company on the basis of one (1) new share for every 4.48 existing shares held in the Company ( New Shares ). The New Shares will have an issue price of $0.26 per New Share.

As an Option Holder, you are entitled to participate in the issue of New Shares under the Rights Issue only if you exercise your existing (vested and capable of being exercised) options prior to the record date selected by the Company for determining entitlements to participate in the New Share issue, being 8 February 2011 ( Record Date ).

The Rights Issue is being made pursuant to a prospectus prepared in accordance with section 713 of the Corporations Act 2001 (Cth) . The Prospectus will contain detailed information about the Rights Issue and the effect of the Rights Issue on the Company. The Company will send the Prospectus to all eligible shareholders on 10 February 2011.

Yours faithfully

Elementos Limited

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Paul Crawford Company Secretary

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 [email protected] WEBSITE www.elementos.com.au