ELEMENTOS LIMITED — Capital/Financing Update 2012

Aug 27, 2012

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elementos.com.au
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28 AUGUST 2012

ASX Code: ELT

Investor Update

Capital Raising to Fund Tamaya Geophysics and Drilling Program

Disclaimer

elementos.com.au

Elementos Limited will be the issuer of the securities under the Rights Issue. A section 713 prospectus for the offer of securities under the Rights Issue ( Prospectus ) was lodged with ASIC on 28 August 2012 and is available on Elementos Limited’s website and ASX’s website. The offers of the securities will be made in the Prospectus. The Prospectus and an Entitlement and Acceptance Form will be dispatched to eligible shareholders on 10 September 2012. 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.

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Reasons to Invest

elementos.com.au

Share price appreciation potential – high leverage to exploration success from ELT’s low market capitalisation

Strengths:

• Substantial ground positions - 1,100 km², in Chile, Argentina and Australia – in some of the world’s most significant base and precious metal districts

• Advanced projects – geological potential to host economic resources and short term strategies to realise value:

• Tamaya – geophysics and 5,000 metres of drilling in 2012

• Santo Domingo – joint venture discussions to fund porphyry drilling

• Manantiales – evaluation of resources and new targets

• Geological expertise - significant Andean and Australian geological expertise and experience

• Copper and gold focus - targeting commodities with attractive supply and demand fundamentals, and price outlooks

• Cash resources - well-funded to complete 2012 objectives (after raising)

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Rights Issue to Fund Tamaya Drilling

elementos.com.au

Rights issue

• $2.3M (before costs), pro-rata, non-renounceable rights issue

Offering terms

• Open to eligible shareholders on the register as at 6 September 2012

• Priced at 3.5 cents per share, equal to a 32% discount to the 5-day VWAP

• Offered on a pro-rata basis of 4 new ordinary fully paid shares for every 5 ordinary fully paid shares held in the Company on the Record Date

• Includes one free new option exercisable at 6 cents and expiring on 9 April 2014 for every two New Shares subscribed

Underwritten share offer

• Patersons Securities appointed Lead Manager and Underwriter

• Strong support from existing shareholders and experienced resource investors including pre-commitments of $0.79 million

• Andes Investors, a company associated with James D. Calaway, a nonexecutive director of Elementos, is exercising its entitlements and subunderwriting a further $0.77 million of the Offer

Use of funds

• Geophysics and drilling at Tamaya ,and costs associated with the offer

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Rights Issue Timetable

elementos.com.au

Rights issue prospectus lodged with ASIC/ASX Notice with information on Rights Issue sent to shareholders Shares commence trading on ASX on an ex rights basis

Rights issue prospectus lodged with ASIC/ASX 28 August Notice with information on Rights Issue sent to shareholders 29 August Shares commence trading on ASX on an ex rights basis 31 August Record date for participation in rights issue 6 September Prospectus dispatched to shareholders and Rights Issue 10 September Opens Closing time and date for acceptance and payment in full 28 September under the rights issue (5PM EST) New Shares and Options quoted on a deferred settlement 9 October basis Allotment of New Shares and New Options and dispatch of 9 October shareholder Statements for New Shares Normal trading commences for New Shares and Options on 10 October

New Shares and Options quoted on a deferred settlement basis

Allotment of New Shares and New Options and dispatch of shareholder Statements for New Shares Normal trading commences for New Shares and Options on the ASX

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Corporate Summary

elementos.com.au

Capitalisation and ownership post rights offer*

• 148M shares

• Implied Market cap $8.6M

• 8.7M unlisted options

• Cash $3.4M*

• 32.8M listed 6 cent options

• Enterprise value $5.2M

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Full details of the Rights Issue are set out in the Prospectus lodged with ASIC and the ASX

• Post Rights issue. Share price close 5.8 cents 23 Aug 2012 * Excludes $0.5M bank guarantee on Tamaya project and after estimated capital raising costs

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Directors and Technical Team

elementos.com.au

Significant South American experience

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Corey Nolan Managing Director

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Anthony McLellan Chairman

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Mark McCauley Director

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James Calaway Director

Andean geological expertise and experience

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Alistair Grahame Exploration Manager

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Gustavo Delendatti South America Exploration Manager

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Andrew Shaw Geological Consultant - Chile

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Neil Stuart Technical Consultant

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Company Projects

elementos.com.au

World-class locations - 1,100km² of exploration acreage Australia – Mt Isa Inlier

MILLENIUM (100%) - 248km² SELWYN SOUTH (100%) -109km²

Chile – Regions II and IV MERCEDES (option for 90%) - 298km² TAMAYA (Earn-in for 50%) - 69km²

Brisbane (head office)

Argentina – San Juan MANANTIALES (option for 100%) - 97km² SANTO DOMINGO (option for 100%) - 250km²

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2012 Strategy – Unlocking Value

elementos.com.au

Exploration

• Tamaya – IP geophysics and a 5,000 metre diamond drilling program in the fourth quarter 2012

• Manantiales – evaluation of resources and new targets

• Mercedes – assessing resource potential and negotiating a new commercial joint venture agreement

Joint Venture

• Santo Domingo - discussions underway with potential partners to fund drilling of Divisoria porphyry target

Consolidation

• Mt Isa district – consolidate ground in geological prospective areas, situated near major mines and deposits

Acquisition

• Opportunistically identify value-adding merger or acquisition opportunities

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Tamaya Project

elementos.com.au

Uniquely positioned exploration project covering an extraordinarily high-grade historic copper mining field

Why is Tamaya an attractive exploration project?:

• 1) World class mineral province - located in a major Chilean metallogenic belt near major mines and deposits

• 2) Large project area (6,890 ha) offers large tonnage potential 3) Established infrastructure nearby - supports timely, low-cost exploration, and future development and operation

• 4) Historic mining field, no modern systematic exploration – copper production of 2Mt @ 12%* recovered in the period up to the 19[th] Century

• 5) Exploration confirming copper potential – mapping, sampling and geophysics – highlight geological potential

• 6) Multiple mineralisation and drill targets – high-grade sulphides, bulk tonnage oxides and porphyry targets

• Non JORC data

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1. Located in a World-Class Province

elementos.com.au

Tamaya is situated within a metallogenic belt that is host to a number of significant IOCG and porphyry deposits

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Located on the same geological trends as the Andacollo and Llahuin porphyry deposits

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2. Large Project Size

elementos.com.au

6,890 ha tenement package in a major mineral district

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3. Close to Infrastructure

elementos.com.au

• Services - Mining and exploration services and accommodation in the town of Ovalle, 20 kilometres to the east and Coquimbo 80 kilometres to the north

• Roads - An extensive network of existing graded tracks that link to asphalt roads 5 kilometres either side of the property and the national motorway 15 kilometres west

• Port - Container, cargo and bulk ore-handling port facilities in Coquimbo

• Power - High and low-tension power lines running parallel to the Pan American Highway and linking the towns of Cerrillos de Tamaya and Ovalle

• Water - Water rights have not been sought, but the Limari River has perennial flow and the project is less than 35 kilometres from the coast

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4. Located in Historic Mining Field

elementos.com.au Mineral field with historical production of 2Mt @ 12% Cu – no modern systematic exploration*

Main high-grade vein, the focus of historical mining activities

Waste dump samples assayed between 1.8% and 3.8% copper

• Non JORC data

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5.1 Exploration Confirms Copper Potential

elementos.com.au Large mineralised system with multiple mineralisation styles including structurally hosted and potentially porphyry

Historic tailings dam and plant site

Main exploration target – 4 km long, with extensions to 7 km

Extensive existing road network including disused railways – excellent access

Mineralised waste from old workings Porphyry target in the eastern sector

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5.2 Exploration Confirms Copper Potential

elementos.com.au

Widespread copper and gold values in main structures

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Three principal structures identified – copper values up to 7.44% in outcrops and 7.91% in dumps

Anomalous gold values up to 5.8 g/t in outcrops and 9.5 g/t in dumps

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5.3 Exploration Confirms Copper Potential

elementos.com.au

IP geophysics to test porphyry potential – in progress

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Major anomaly at depth to the east – correlates to mineralised and strongly potassic altered porphyry fragments in structures on surface

Main high-grade copper vein

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6. Geological Model and Drill Targets

elementos.com.au

Drilling to confirm geological model – 5,000 metres planned on three mineralisation targets: 1. Lower grade, bulk tonnage oxide and sulphide 2. High-grade remnant and deeper sulphides 3. Intrusive (porphyry) mineralisation

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Tamaya 2012 Exploration Strategy

elementos.com.au

Objective : Advance from prospect definition through to a drilling program to determine potential mineral resources

Target

Generation

 Satellite and ASTER imagery interpretation

 Tenement wide mapping and sampling

 Ground-magnetometry geophysical survey

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Drill Target

Definition

 Detailed channel sampling of main structures

• High-density mapping of drill targets

 IP geophysics to test intrusive targets

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Drill Testing

• 5,000 metre diamond drilling program planned to start during the fourth quarter 2012

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 A minimum of 12 diamond holes to test the major target areas including: Tamaya Central, Este and Norte, Tortolas and Lecaros

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Leverage to Exploration Success elementos.com.au Potential for significant market capitalisation increase as ELT shifts from explorer to resource developer*

• ASX listed companies exploring in Chile and Argentina

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A$M
140
120
100
80
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Undervalued
relative to peer 40
group explorers
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0
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Producer
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JORC Resource (based on Chile or Argentina asset)

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Summary

elementos.com.au

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Contacts and Disclaimer

elementos.com.au

Elementos Limited ACN 138 468 756 Level 8, 26 Wharf Street tel: +617 3221 7770 Brisbane, Queensland, Australia fax: +617 3221 7773 www.elementos.com.au

For enquiries regarding this presentation please contact: Corey Nolan – Managing Director email: admin@elementos.com.au

Forward Looking Statements

This presentation may contain certain forward looking statements. Such statements are only predictions, based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond Elementos Limited’s control.

Actual events or results may differ materially from the events or results expected or implied in any forward looking statement. The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward looking statements will be or are likely to be fulfilled.

Elementos Limited undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation (subject to securities exchange disclosure requirements).

The information in this presentation does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this presentation constitutes investment, legal, tax or other advice.

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Alistair Grahame, a member of the Australian Institute of Geoscientists. Mr Grahame is a full-time employee of Elementos Ltd 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.’ Mr Grahame consents to the inclusion in the report of the matters based on his information in the form and context

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