ELEMENTOS LIMITED — Capital/Financing Update 2016

Aug 28, 2016

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29 August 2016

ELEMENTOS AND THAISARCO SIGN OFFTAKE MEMORANDUM OF UNDERSTANDING

HIGHLIGHTS

• Strategic alliance established with Thailand Smelting and Refining Company for future supply of tin concentrates from the Cleveland project.

• The MOU contemplates Thaisarco purchasing at least 100 tonnes per month of tin concentrate.

• Attractive market related MOU smelter terms.

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) is pleased to announce the signing of a Non-Binding Memorandum of Understanding (“MOU”) with Thailand Smelting and Refining Company (“Thaisarco”).

The MOU is for Thaisarco to purchase a minimum of 100 tonnes per month of a 55% tin concentrate from the Cleveland tin project. This supply of concentrate to Thaisarco is planned to occur as soon as production at Cleveland commences. Elementos and Thaisarco intend establishing a formal offtake agreement as part of the on-going development activities and strategy of advancing Cleveland towards production.

Thaisarco is recognised worldwide as an industry leader in the manufacture of tin, tin alloys and tin-related, added value products. From its LME registered Thaisarco and Phuket brands of pure tin to specialty alloys, solders, powders and extruded products, Thaisarco specialises in solutions tailored to meet its customers' needs. Thaisarco was founded in 1963 and based in Phuket, Thailand.

Elementos Executive Director, Mr Christopher Dunks said, “The signing of the MOU for the sale of tin concentrates from the Cleveland project is a milestone event for the Company in transitioning from developer to producer. We are extremely pleased to formalise a strategic relationship with Thaisarco given their expertise and international business standing in the global tin industry.”

Thaisarco is managed and operated by its majority shareholder Amalgamated Metal Corporation PLC (AMC) of the UK. AMC is an international group which trades, manufactures and distributes non-ferrous metals and metal based products for industrial applications. Mr. Andrew King, Group Business Development Director at AMC said “ AMC and Thaisarco evaluate most planned tin projects and we are excited to be working with Elementos to assist in the development of a low sovereign risk, long mine life project like Cleveland ”

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29 August 2016

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For more information, please contact:

Duncan Cornish

Company Secretary

Phone: +61 7 3221 7770 Email: admin@elementos.com Please visit us at: www.elementos.com.au

MINERAL RESOURCES AND ORE RESERVES

Tailings Ore Reserve (at 0% Sn cut-off)1	Tailings Ore Reserve (at 0% Sn cut-off)1	Tailings Ore Reserve (at 0% Sn cut-off)1	Tailings Ore Reserve (at 0% Sn cut-off)1	Tailings Ore Reserve (at 0% Sn cut-off)1	Tailings Ore Reserve (at 0% Sn cut-off)1
Category	Tonnage	Sn Grade	Contained Sn	Cu Grade	Contained Cu
Probable	3.7 Mt	0.29%	11,000t	0.13%	5,000t
Table subject to rounding errors; Sn = tin, Cu = copper

Open Pit Tin-Copper Mineral	Open Pit Tin-Copper Mineral
		Resource (at 0.35% Sn cut-off)
Category	Tonnage	Sn Grade	Contained Sn	Cu Grade	Contained Cu
Indicated	0.8 Mt	0.81%	6,500t	0.27	2,300t
Inferred	0.01 Mt	0.99%	140t	0.34	50t
Table subject to rounding errors; Sn = tin, Cu = copper

Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)

Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)	Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)	Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)	Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)	Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)	Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)
Category	Tonnage	Sn Grade	Contained Sn	Cu Grade	Contained Cu
Indicated	4.2 Mt	0.67%	34,500t	0.28%	14,00t
Inferred	2.4 Mt	0.56%	13,600t	0.19%	4,600t
Table subject to rounding errors; Sn = tin, Cu = copper

Underground Tungsten Mineral Resource (at 0.20% WO3cut-off)2	Underground Tungsten Mineral Resource (at 0.20% WO3cut-off)2	Underground Tungsten Mineral Resource (at 0.20% WO3cut-off)2
Category	Tonnage	WO3Grade
Inferred	4 Mt	0.30%

Table subject to rounding errors; WO3 = tungsten oxide

1 Announced per the JORC Code 2012 on 3 August 2015 “Cleveland Tailings Ore Reserve”

2 This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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29 August 2016

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CAUTIONARY STATEMENTS

F o r w a r d - l o o k i n g s t a t e m e n t s

This document 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 the company’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 undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this document (subject to securities exchange disclosure requirements).

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

M i n e r a l R e s o u r c e s a n d O r e R e s e r v e s

Elementos confirms that Mineral Resource and Ore Reserve estimates used in this document were estimated, reported and reviewed in accordance with the guidelines of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) 2012 edition.

Elementos confirms that it is not aware of any new information or data that materially affects the Mineral Resource or Ore Reserve information included in the “Cleveland Tailings Resource Upgrade” announced to the ASX on 17 June 2014, or the “Cleveland Open Pit - High-Grade Mineral Resource Defined” announced on 3 March 2015 and the “Cleveland Tailings Ore Reserve” released on the 3 August 2015.

The Company also confirms that all material assumptions and technical parameters underpinning the estimates in the Cleveland Mineral Resources and Reserves continue to apply and have not materially changed. Elementos also confirms the form and context in which the Competent Person’s findings are presented have not been materially modified from the date of announcement.

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