ELEMENTOS LIMITED — Capital/Financing Update 2012

May 7, 2012

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08 MAY 2012

MILLENIUM EXPLORATION PERMITS GRANTED

Highlights

• 154 km² of EPM applications granted in the world-class Mt Isa minerals province

• EPMs situated on a major mineralised trend in close proximity to deposits including Rockland, Roseby and Dugald River

• Exploration on the Mining Leases[1] has identified strong copper, cobalt, gold and Rare Earth Elements anomalies

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) is pleased to announce that four Mineral Exploration Permits (“EPMs”) 18402, 18772, 18793 and 18982, have been granted at the Millenium project within the world-class Mt Isa minerals province.

The four granted EPMs (out of the seven applications) represent 154 km² of highly prospective tenements along the Corella Fault zone in the Mt Isa Inlier, 40 kilometres northwest of Cloncurry, northwest Queensland.

Project Overview

The Company intends to explore for copper, cobalt, gold and Rare Earth Elements (“REE”) mineralisation, similar to that already discovered in the five existing Mining Leases (“MLs”).

Mt Isa World-Class Minerals Province

Millenium is situated in the Mt Isa Inlier, a significant gold and base metal producing region, host to world class copper/gold and lead/silver/zinc deposits.

The Millenium project area covers parts of the Corella fault trend in close proximity to major deposits including:

• Rocklands copper-cobalt project, 15 kilometres to the southeast;

• Roseby copper-cobalt project, 10 kilometres to the northwest;

• Dugald River project, 10 kilometres to the north; and

• Mary Kathleen historical uranium mine, 25 kilometres to the southwest.

The district has established mining, processing and transportation infrastructure in close proximity to the major regional centres of Mt Isa and Cloncurry.

1 Subject to an Option-to-Purchase agreement with Forte Energy NL

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Historical Exploration Activities

Little modern exploration has been undertaken on the Millenium EPMs. However, extensive exploration has been undertaken on the five MLs, currently subject to an Option-to-Purchase agreement with Forte Energy NL.

The Millenium MLs host a number of historical copper mine workings and prospects that were operated around the turn of the century. The Federal mine exploited copper in bornite and chalcopyrite down to 135 metres and produced some 10,000 tonnes of ore at exceptionally high grade (25% copper). Other workings along a shear “lode” structure were less successful for copper mining, but the lodes were noted to be rich in cobalt.

Between 1964 and 1991 several companies explored the district with trenching and limited drill programs targeting both copper and cobalt mineralisation, including Carpentaria Exploration Company Pty Ltd, Tasman Minerals NL and Murchison United NL. Encouraging results were reported, confirming the thickness of the cobalt mineralisation including a best intersection in FD02 (95.4-106.1 metres) 10.7 metres @ 2,333ppm cobalt and 2.02% copper.

Elementos completed a number of outcrop sampling programs during 2010 and 2011 to study the areas historically mined and drilled. Copper, cobalt, gold and other metallic anomalies were identified along the trend of the Corella structure, including the zone of historic drilling. The soil survey extended the apparent footprint of the mineralisation 1,500 metres north to the limit of the MLs, apparently extending into the new granted EPMs. This survey extended the potential mineralisation over an area of limited exposure and no historical drilling, reinforcing the potential for further mineralisation over the newly granted EPMs.

Additionally, Rare Earth Elements and Yttrium have been identified in check-assays of rock-chip surface samples announced by Elementos in 2010. Total Rare Earths (TRE) anomalies of up to 0.17% were identified in multiple samples from oxidised surface outcrops and shallow historic trenching. The average anomaly over 36 samples of varied composition and distribution was >400ppm. This is considered a significant surface anomaly and the future drill program will test for these elements at depth.

Next Steps

The Company is currently working towards the consolidation of its land package in the district. Outstanding ground positions to be secured include:

• 167 km² of additional EPMs subject to granting; and

• Exercise of the Option-to-Purchase agreement with Forte Energy NL to acquire 134 hectares of MLs. The MLs are currently subject to renewal and this process is nearing completion.

Future exploration activities will involve:

• Ground-magnetometry geophysical surveys of the Corella structure, including the cobalt and copper anomalies already identified;

• Drilling to confirm the cobalt and copper grades from historical drill holes;

• Testing for the presence of Rare Earth Elements and Yttrium; and

• Drilling deeper into structures showing mineralisation.

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Figure 1 – Location of the Millenium tenements

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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

COMPETENT PERSON 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 they are undertaking to qualify as Competent Persons 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 in which it appears.

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