ELEMENTOS LIMITED — Capital/Financing Update 2012

Sep 9, 2012

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10 September 2012

Dispatch of Prospectus and Entitlement and Acceptance Form

The Prospectus and Entitlement and Acceptance Form for the nonrenounceable rights issue announced on 28 August 2012 was dispatched to all Eligible Shareholders today.

Acceptances close at 5:00pm (AEST) on 28 September 2012.

Letter to foreign shareholders

In addition, the enclosed letter was dispatched to all Elementos shareholders with a registered address outside Australia and New Zealand as at 7:00pm on the Record Date of 6 September 2012.

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, copper and gold exploration company, with projects in Chile, Argentina and Australia. 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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10 September 2012

Dear Shareholder

Non-Renounceable Rights Issue

On 28 August 2012, Elementos Limited (ASX:ELT) ( Elementos or the Company ) announced a pro-rata, non-renounceable rights issue to Eligible Shareholders, on the basis of four new fully paid ordinary shares ( New Shares ) for every five shares held, at an issue price of $0.035 per New Share, plus one new option for every two New Shares subscribed for ( New Options ), to raise approximately $2.30 million before costs ( Offer ). The New Options will have an exercise price of $0.06 and expiry date of 9 April 2014. Patersons Securities Limited has been appointed as the Lead Manager and Underwriter to the Offer.

The Offer is underwritten by Patersons Securities Limited up to $1,513,222.34, with Andes Investors LLC, an entity associated with James Calaway (a Director of the Company), participating as a partial subunderwriter. In addition, the Company has received pre-commitments from existing Elementos shareholders totalling $793,516.40, representing the balance of the Offer.

The funds raised from the Offer will be principally used for:

• geophysics and drilling at the Tamaya copper project in Chile during 2012; and

• costs of the Offer.

The Prospectus for the Offer was lodged with the Australian Securities and Investments Commission and ASX on 28 August 2012. It is available on the ASX website and also on the Company’s website, www.elementos.com.au.

The Offer is available to all Elementos shareholders on the register as at 7:00pm AEST on 6 September 2012 with registered addresses in Australia and New Zealand ( Eligible Shareholders ). As a shareholder with a registered address outside Australia and New Zealand, you will not be eligible to participate in the Offer. In accordance with Listing Rule 7.7, the Company has decided that it is unreasonable to extend the Offer to shareholders with registered addresses outside Australia and New Zealand having regard to the following:

• the number of shareholders in places outside Australia and New Zealand where the Offer would otherwise be made;

• the number and value of New Shares and New Options that shareholders in places outside Australia and New Zealand would otherwise be offered; and

• the costs of complying with the legal requirements, and requirements of regulatory authorities, of those places outside Australia and New Zealand where the New Shares and New Options would otherwise be offered.

The Offer is non-renounceable and the Company is not required to appoint nominees for those shareholders with registered addresses outside Australia and New Zealand.

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Indicative Timetable

The indicative timetable for the Offer is set out below:

Event	Date
Prospectus lodged with ASIC and ASX	28 August 2012
Notice sent to Eligible Shareholders with information on the Offer	29 August 2012
Shares commence trading ex-rights	31 August 2012
Record Date for the Offer	6 September 2012 (7:00pm AEST)
Prospectus dispatched to Eligible Shareholders	10 September 2012
Opening Date of Offer	10 September 2012 (9:00am AEST)
Closing Date of Offer	28 September 2012 (5:00pm AEST)
New Shares and New Options quoted on a deferred settlement basis	2 October 2012
Expected date of allotment and dispatch of holding statements for theNew Shares and New Options issued under the Offer	9 October 2012
Expected date for commencement of normal trading of New Shares andNew Options issued under the Offer on the ASX	10 October 2012

The timetable is subject to change and is indicative only. Elementos, in consultation with the Underwriter, reserves the right to alter the timetable, including by extending the Closing Date, at any time. This may have a consequential effect on the other dates.

The Prospectus containing the Entitlement and Acceptance Form was dispatched to Eligible Shareholders today. Potential investors should consider the Prospectus in full in deciding whether to acquire the securities offered. Anyone who wants to acquire the securities offered will need to complete the Entitlement and Acceptance Form that will accompany the Prospectus.

For further information please contact Corey Nolan, Managing Director on +61 (7) 3221 7770 or by email at admin@elementos.com.au.

Yours faithfully,

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Corey Nolan Managing Director Elementos Limited

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