ELEMENTOS LIMITED — Capital/Financing Update 2012

Sep 19, 2012

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20 SEPTEMBER 2012

AMENDED RELEASE – MAIDEN RESOURCE AT MANANTIALES

Maiden Resource Demonstrates Potential of Manantiales Project

The Company wishes to advise the release dated 18 September 2012 has been amended as follows:

The unit description for the column “Tonnes” in the tables was stated as Kt (thousand tonnes). However, the correct unit description is Mt (million tonnes).

Figure 5 has been updated accordingly.

For more information, please contact:

Corey Nolan Managing Director Phone: +61 (7) 3221 7770 Email: admin@elementos.com.au

Elementos is an Australian, ASX-listed, exploration company, with a number of projects in Chile, Argentina and Australia, which offer an attractive investment environment. The properties are all in mineral rich, highly prospective provinces, with developed infrastructure nearby. Please visit us at www.elementos.com.au

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20 SEPTEMBER 2012

MAIDEN RESOURCE DEMONSTRATES POTENTIAL OF MANANTIALES PROJECT

Highlights

• Maiden in-house resource of 36,310 ounces of gold equivalent at the Manantial vein. The system remains open along strike, north and south, and at depth

• Manantial Este and Norte, Julieta Norte and La Puerta Este veins all justify further exploration and drilling

• Potential for multiple new high-grade gold-silver vein systems within the Manantiales project

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) is pleased to report a maiden resource at the Manantial vein and exploration update for the Manantiales gold-silver project in San Juan Province, Argentina.

Manantial Vein Maiden Resource

The Company is pleased to report a maiden inferred and indicated in-house resource estimate for the Manantial vein of 36,310 ounces of gold equivalent. The resource estimate is based on 4,559 metres of diamond core drilling and 245 metres of sawn blade channel sampling.

The resource estimate at 0.7 gram per tonne gold cut-off grade is tabulated below:

Cut-off	Category	Tonnes	Gold	Silver	Gold _Eq	Gold	Gold
Gold		(Mt)	(g/t)	(g/t)	(Au_Eq	(koz)	Equivalent
(g/t					g/t)		(Koz)
Au)
0.7	Indicated	0.34	1.84	10.56	2.14	19.61	22.76
0.7	Inferred	0.24	1.56	7.99	1.77	11.93	13.55
0.7	Indicated	0.58	1.71	9.40	1.97	31.54	36.31
	and Inferred
Gold equivalency is calculated by the formula: Au_eq g/t = Au					g/t + (Ag g/t ÷	60.00)
“Mt” represents million tonnes,and “koz” represents thousand ounces

The resource has been estimated and reported in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004). A summary of the estimation methodology and competent person statement is included in the appendix to this announcement.

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Potential of the Manantial Vein System

Substantial progress has been made at the Manantiales project, discovering and defining prospects through mapping, surface sampling, geophysics and drilling. Three phases of drilling totalling 7,841 metres have been completed on the Manantial, Julieta and La Puerta veins.

At the Manantial vein, drilling has defined the shallow levels of a low-sulphidation epithermal vein system, with further potential at depth and along strike - see Figure 5 - to discover new mineralisation. The highlights of the results to date include:

• Minimum strike length extended to 180 metres in a north-south direction;

• Mineralisation extended down to 300 metres depth;

• A new zone of mineralisation positioned approximately 250 metres south of the main Manantial vein has been identified and remains untested; and

• The system remains open along strike and to depth.

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Figure 1: Manantial vein longitudinal section highlighting some of the best intersections.

Drilling has confirmed that the vein is continuous, but internally, there are high grade and low-grade gold phases. The mineralised phase shows a “pinch and swell” geometry (as seen at the adjacent Casposo mine) at this shallow level. This, in conjunction with gold grade variability in short distances, is a common feature in low-sulphidation systems and is the reason for the variable results from the relatively wide-spaced drilling to date. The high-grade gold mineralisation is enveloped within a larger lower-grade gold halo (0.1 g/t gold average grade and 5 to 20 metres wide). This increases the overall size of the system, and provides encouragement that the whole system is potentially mineralised.

Ongoing surface exploration is expanding the size of the system through the discovery of new discrete vein outcrops in the vicinity of the Manantial vein. Many of these have returned low-grade gold and silver mineralisation associated with low temperature silica and silica-calcite veining.

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The Company believes there is potential for the Manantial vein to support a larger epithermal system at depth (as depicted in Figure 2):

• Geological evidence that Manantial been has been a long- lived structure with at least four pulses of silica;

• Geological mapping demonstrates an extensional structure with significant stratigraphic offset;

• Geophysical anomalies extending to depth in the pole-dipole induced polarisation survey data; and

• Textural, chemical and structural interpretations that indicate the Manantial system is at a higher level than the adjoining Casposo deposit.

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Figure 2: Generalised longitudinal section comparing Manantial vein to the nearby Casposo deposit.

New Drill Targets

The Company has a number of other drill targets including Manantial Este, a two kilometre long, north-south, highly-resistive anomaly, similar to that of the Manantial vein, one kilometre to the west – see Figure .

Surface examination shows three sub-parallel sub-vertical structures up to 500 metres long containing quartz-calcite veins, pinching and swelling between 0.5 and 2 metres width, but partially covered by talus material.

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Figure 3: Manantial Este resistivity anomaly.

More than 1,200 metres has been drilled at La Puerta and Julieta Norte. Whilst initial shallow level drilling has not produced economic mineralisation, the results and geological characteristics are similar to the Manantial vein, where subsequent deeper drilling was required to encounter the high-grade vein. The Company believes both targets justify further exploration and drilling programs:

• La Puerta - initial drilling along 200 metres of the La Puerta vein returned a limited number of low-grade, narrow anomalies at shallow levels, compared with the high-grades on surface; and

• Julieta Norte - the system appears to be plunging deeply to the north and any future drilling would focus on the system at greater depths. The deposit appears to be an extension of the nearby Troy Resources‟ Julieta satellite deposit, which contains a defined gold and silver resource.

New Vein Systems

The Company has identified a number of new vein systems including Valentina, Colorado, Colorado Sur and Gabo. The new veins are located in the south-western corner of the Manantiales tenement, in close proximity to the Manantial, Manantial

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Este and La Puerta vein systems. The majority of the new veins are topographically lower than the Manantial vein, and are also interpreted as representing a higher level within the epithermal environment. This is based on the high proportion of calcite–quartz, low silver content, and indications that the host rock is similar to that at Manantial vein where the company has drilled the upper levels of a mineralised epithermal system.

Next Steps

Elementos is in the early stages of assessing various options in relation to the Manantiales project, including further drilling, divestment, or joint venture.

For more information, please contact:

Corey Nolan Managing Director Phone: +61 (7) 3221 7770 Email: admin@elementos.com.au

Elementos is an Australian, ASX-listed, exploration company, with a number of projects in Chile, Argentina and Australia, which offer an attractive investment environment. The properties are all in mineral rich, highly prospective provinces, with developed infrastructure nearby. Please visit us at www.elementos.com.au

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APPENDIX – MANANTIALES MAIDEN RESOURCE STATEMENT

The following is an extract of the main JORC report prepared for the initial in-house resource estimate of the Manantial Vein prospect at the Manantial gold-silver project in San Juan, Argentina. The report was prepared by Dr. Gustavo Delendatti, South American Exploration Manager of Elementos Limited. No independent review or external audit of the resource has been undertaken. Dr Delendatti has extensive experience in low-sulphidation epithermal geological environments in the Andes region of South America, and has been responsible for managing all the exploration programs including sampling, mapping, geophysics and drilling at the Manantiales project since January 2010.

The resource estimate has been prepared in compliance with the disclosure and reporting requirements set forth in the 2004 edition of the Australasian Core for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). This initial resource is reported as Inferred using JORC Code guidelines and incorporates diamond drilling and sawn blade channel results generated by Elementos Limited since January 2010.

The in-house resource estimate for Manantial vein has been prepared based on the results of diamond core drilling (31 diamond core holes for 4,559 metres) and sawn blade channels (31 sawn blade channels for 245 metres) completed at Manantial vein up to April 2012.

The mineral resource has been estimated by Anisotropic Cubed Inverse Distance Weighting within a 0.1 g/t gold grade shell encompassing the main mineralization domain.

Gold-silver mineralisation at the Manantial prospect is encompassed in a quartz vein, striking north-south strike and dipping 60 to 70 degrees to the east. The vein is placed within a structure which shows a clear stratigraphic offset and as such, has a significant strike length of about 900 metres. The structure appears to be long lived with multiple events of brecciation - mineralisation and dyke injection. A total width of 15 to 20m confirms the strength of the structure.

One single mineralisation main domain was defined for the gold-silver mineralisation at the Manantial vein prospect, based on geological modelling. On this basis, a 0.1 g/t gold grade shell (natural mineralisation break) which strikes north-south, dips 60 to 70 degrees to the east and encompasses most of the hanging wall mineralisation above 0.1 g/t gold was prepared. The hard boundary for the model is a post mineral felsic dyke which is sub-parallel to the main vein trend and has split the main Manantial vein. Most of the potentially economic mineralisation intercepted to date is placed in the hanging wall zone. Within the main mineralisation domain, high-grade gold with silver credits is generally related with quartz – adularia banded veins, considered an early mineralised pulse in the system.

The model has been estimated in to 2 metre (X) by 2 metre (Y) by 2 metre (Z) parent cells utilizing 1 metre composites. A minimum of 1 composite and a maximum of 6 composites are required to populate a cell with an estimate. There has been no capping of grades.

The gold equivalency is calculated by the formula: Au_eq g/t = Au g/t + (Ag g/t ÷ 60.00). No metallurgical assumptions have been built into the resource estimate, although the company expects that the silver will be recovered with the gold in standard carbon-in-leach processing plant. The Company notes that the adjacent Casposo mine, which shares a similar geological and mineralogical environment to the Manantiales project, achieves highgrade recoveries of both gold and silver. In the twelve month period ended 30 June 2012, the Casposo operation achieved gold and silver recoveries of 87.38% and 76.25% respectively (Troy Resources NL 30 June 2012 Quarterly Report). The Company believes that all the metals included in the metal equivalent calculations have a reasonable potential to be recovered and it does not believe there are any factors that would result in metallurgical recoveries being materially different to Casposo.

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Figure 4: Manantial vein longitudinal section (looking to the west) showing gold block grades.

The following table contains tonnage and grade data of the Manantial Vein resource, at various gold cut-off grades. The grade tonnage curves are shown in Figures 5 (gold) and Figure 6 (gold equivalent).

			Gold		Gold Equivalent (	Gold Equivalent (	Au / Ag
					= 1	/ 60)
Cut-off	Tonnes	Gold(g/t)	Silver (g/t)	Gold (Koz)	Gold_Eq	Gold_Eq		SG
Grade	(Mt)				(g/t)		(Koz)
(g/t Au)
0.5	0.81	1.39	8.19	36.31	1.61		42.17	2.63
0.6	0.69	1.54	8.81	34.09	1.79		39.44	2.63
0.7	0.58	1.71	9.40	31.84	1.97		36.71	2.63
0.8	0.48	1.90	10.12	29.55	2.18		33.95	2.63
0.9	0.41	2.08	10.85	27.60	2.38		31.63	2.63
1.0	0.36	2.25	11.49	25.98	2.57		29.72	2.63
1.1	0.32	2.41	12.09	24.51	2.76		28.01	2.63
1.2	0.28	2.56	12.61	23.32	2.92		26.64	2.63
1.3	0.25	2.70	13.18	22.16	3.09		25.29	2.63
1.4	0.23	2.84	13.71	21.15	3.24		24.11	2.63
1.5	0.21	2.98	14.26	20.17	3.40		22.99	2.63
2.0	0.13	3.73	17.47	15.81	4.25		18.05	2.63
2.5	0.09	4.51	21.59	12.57	5.17		14.43	2.63

Table 2: Manantial Vein Grade-Tonnage Data

• 1- Gold equivalency is calculated by the formula: Au_eq g/t = Au g/t + (Ag g/t ÷ 60.00) 2- “Mt” represents million tonnes, and “koz” represents thousand ounces

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----- Start of picture text -----

1.5 6.0
Tonnes
5.0
Grade
1.0 4.0
3.0
0.5 2.0
1.0
0.0 0.0
0.5 1.0 1.5 2.0 2.5
Cutoff Grade (g/t Au)
Grade-Tonnage Curve for Manantial Vein Resource – Gold (no Au top cut)
1.5 6.0
Tonnes
5.0
Grade
1.0 4.0
3.0
0.5 2.0
1.0
0.0 0.0
0.5 1.0 1.5 2.0 2.5
Cutoff Grade (g/t Au)
Tonnage (Mt)
Average Grade (g/t Au)
Tonnage (Mt)
Average Grade (g/t Au Eq)
----- End of picture text -----

Figure 5: Grade-Tonnage Curve for Manantial Vein Resource – Gold (no Au top cut)

Figure 6: Grade-Tonnage Curve for Manantial Vein Resource – Gold Equivalent (no Au top cut)

SAMPLE QUALITY CONTROL AND ASSURANCE

All sample widths presented are Intersection or Apparent Widths and may not represent the true widths of the mineralisation. Assay results presented are Certified Final Assays. The core was split equally using a diamond-blade saw. One half of the core was selected for sampling. Sample intervals were 1.0m or to geological criteria. Sample widths were limited at between 0.3 and 1.0m.

Samples were prepared at the Acme Analytical Laboratories (“AcmeLabs”) preparation facility in Mendoza, Argentina, and assayed by fire assay (50 gram charge) at the AcmeLabs laboratory in Chile and for ICP-MS 32 elements (15 grams charge) at the AcmeLabs laboratory in Vancouver, all ISO-9001:2000 certified laboratories.

Check assaying of all samples assaying greater than 1.0 g/t gold is completed by AcmeLabs. Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are assayed using gravimetric analyses. Standard, blank and duplicates samples are used throughout the sample sequence as checks for the diamond drilling reported in this release.

CORE LOGGING AND ORIENTATION

All diamond-core was logged for geological and geotechnical characteristics, core recovery, and orientated using the Ballmark system. Average recovery for the entire program was over 96% in both vein and wall rock. Downhole surveys were conducted using a Reflex single-shot camera at a maximum 50 metre spacing.

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COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Gustavo Delendatti, a member of the Australian Institute of Geoscientists. Dr Delendatti is a full-time employee of Elementos Limited and its subsidiaries, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which it is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.‟ Dr Delendatti was responsible for the design and conduct of this resource drilling and channelling campaign, supervised the preparation of the technical information in this release and has relevant experience and competence of the subject matter. Dr Delendatti consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

MINERAL RESOURCES AND REPORTING

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

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