ELEMENTOS LIMITED — Capital/Financing Update 2013

Nov 18, 2013

==> picture [591 x 118] intentionally omitted <==

19 November 2013

CLEVELAND TIN MINE PRE-FEASIBILITY STUDY TO COMMENCE

Highlights

• Exciting new phase of development with the commencement of PFS, results due in the second quarter 2014

• PFS to determine optimal project configuration, and capital and operating costs.

• Cleveland project benefits from excellent supporting infrastructure, well understood mining and metallurgical characteristics, existing mine development in place and location at a brownfield project site

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) is pleased to announce an update on development activities at the Cleveland tin-copper project, including the commencement of a pre-feasibility study (“PFS”).

Cleveland Pre-Feasibility Study

The PFS will assess the near term development potential of the substantial, relatively shallow, in-ground tin-copper resources. The tin-copper resource is well-defined through more than 130,000 metres of drilling. Cleveland also has proven mining and metallurgy through more than 20 years of well-documented historical operations.

The PFS will also examine the feasibility of an integrated development strategy, firstly processing part of the tailings resource whilst re-establishing the mine, and the additional infrastructure required to process the hard rock tin-copper resources.

The PFS will be prepared by MiningOne and pitt&sherry who together have significant experience and expertise in all aspects of tin resource definition, mining, processing and local infrastructure. The PFS will focus on the fundamental variables that will determine the technical and economic viability of developing a standalone underground tin mine and processing facility, or an integrated facility at Cleveland.

The study will be based on a Mineral Resource derived from 2,040 historical diamond drill holes totalling about 130,000 metres, and more than 75,000 assay points for tincopper, tungsten and selected other metals. The JORC Resource for the Cleveland mine, independently prepared by MiningOne, is summarised below.

Cleveland Mine	Cleveland Mine	Mineral Resource Estimate#	Mineral Resource Estimate#	- Cut-off	grade 0.35% Sn	grade 0.35% Sn
Category	Tonnes kt	Tin grade %Sn	Copper grade %Cu	Tin _Eq Sn_Eq %	Tin tonnes	Tin Equivalent tonnes
Indicated	4,239	0.70%	0.28%	0.80%	30,000	34,000
Inferred	1,880	0.64%	0.19%	0.70%	12,000	13,000
Total	6,119	0.68%	0.25%	0.77%	42,000	47,000

==> picture [589 x 43] intentionally omitted <==

==> picture [128 x 46] intentionally omitted <==

Key components of the PFS will include:

• Mine design;

• Geology and resource definition;

• Process design;

• Infrastructure including; road and port configurations; and power and water supply; and

• Project economics.

The PFS will identify the optimal project configuration, capital and operating costs, and the single go forward scenario for the feasibility study.

Additionally, the PFS will determine whether further drilling, geo-technical, metallurgical or other study work is required as part of the feasibility study process.

The study results are expected to be available by the second quarter calendar 2014.

The Company believes that the feasibility of developing a new operation to extract the unexploited Cleveland tin-copper deposits has a number of distinctive competitive advantages which will form the basis of a fast-tracked PFS:

• Proven low-cost mining methodology with evidence of excellent mining conditions;

• Proven processing methodology, based on simple cassiterite (SnO2 mineralogy, including recovery into saleable tin and copper concentrates. Metallurgical performance has the potential to be significantly improved using modern-day cassiterite ore processing technologies;

• Substantial underground infrastructure in place including a four kilometre length decline;

• Brownfield project site which minimises future environmental disturbances; and

• Uniquely positioned in respect of development infrastructure including roads, power, water, labour and export port.

Other Development Activities

The Company expects to complete the following activities at Cleveland by yearend, including:

• Tailings dam study - a fifteen hole sonic drilling program was recently completed on the tailings dam for geotechnical, environmental, metallurgical and resource investigation. The data will be used for permitting purposes, resource definition and the PFS;

• Environmental permitting for Cleveland mine dewatering and tailings reprocessing – a submission to the Tasmanian environmental protection agency of a Development Proposal and Environmental Management Plan in accordance to the guidelines issued in March 2012 is currently nearing completion. Tasmanian based pitt&sherry have been appointed principal environmental consultants to assist in the submission and associated work;

• LiDAR survey - integration of the Cleveland area LiDAR survey into the resource model will providing detailed surface topography including the

Page 2 of 3

==> picture [128 x 46] intentionally omitted <==

location of haul roads, ventilation ducts, historic mining operations and portals; and

• Quantitative mineralogical analysis - a quantitative mineral analysis of the tincopper tungsten lodes from historical drill core has been completed. The data will provide modern insights into the metallurgical characteristics of the various lodes for flow-sheet design as part of the PFS.

These programs of work, when completed, will provide supporting data to the PFS.

For more information, please contact:

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

Elementos is an Australian, ASX-listed, diversified metals company, including Cleveland, an advanced stage tin-copper and tungsten project in Tasmania, together with a number of prospective copper and gold assets in South America and Australia. 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 at the Cleveland tin-copper and tungsten project, Tasmania, is based on information previously issued in the 18 April 2013 ASX Announcement by Elementos entitled “Cleveland Tin, Copper and Tungsten JORC Resources”. The information therein was based on “Cleveland Mine, Luina, Tasmania Mineral Resource Report for Rockwell Minerals Limited” compiled by Michael V. McKeown of Mining One Consultants, a Fellow of the Australasian Institute of Mining and Metallurgy. Mr McKeown is an employee of Mining One Consultants 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. Mr McKeown was responsible and supervised the preparation of the technical information in the 18 April 2013 release and has relevant experience and competence of the subject matter. Mr McKeown consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Tin Equivalent Calculations

The tin equivalency is calculated by the formula: Sn_Eq% = Sn% + Cu% / (tin price $25,000 / copper price $8,500). No metallurgical assumptions have been built into the resource estimate, although the company expects that the tin and copper will be recovered into concentrates in a modern concentrator. The Company notes that Cleveland was a historical mine operated by Aberfoyle Limited between 1968 and 1986. During the life of the Cleveland operations, 5.7 million tonnes of ore was mined and processed to produce to approximately 24,000 tonnes of tin and 10,000 tonnes of copper in concentrates. The historical life of mine tin and copper recoveries averaged 60% - best tin recovery 69% (1969 and 1973) - and copper 76% (1973). The Company believes that recoveries could be substantially improved using modern day tin processing technology. The tailings resource has been subject to a Rockwell scoping study and metallurgical test work which has demonstrated that tin and copper concentrates can be recovered.

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 lower than historically achieved.

For tin and copper resources, a tin equivalent grade was estimated from the tin and copper grades, assuming metal prices of $25,000 per tonne for tin and $8,500 for copper.

Page 3 of 3