ELEMENTOS LIMITED — Capital/Financing Update 2017

Jun 28, 2017

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29 June 2017

ASX:JRV

Investment in Elementos Limited

Directors of Jervois Mining are pleased to advise that they have resolved to become a cornerstone investor in a $2 million capital raising in Elementos Ltd.

Jervois will invest $480,000 in Elementos and in return be issued 80 million shares and 80 million options. The options entitle the holder to take up a further 80 million shares at 0.6 cents within 12 months.

If exercised Jervois would emerge with 10.3 per cent of the fully diluted capital.

The investment in Elementos reflects the policy of the new board of Jervois to drive growth by taking strategic holdings in promising resource projects with proven management capability while at the same time maturing its most important wholly owned project being Nico/Young Cobalt-Nickel resource in NSW where significant resources have already been established. This resource is currently being remodelled and results of this work and an outline of future plans is expected shortly.

Elementos has an exceptional management team headed by the major shareholder and Chairman Mr. Andy Grieg who ran the global mining unit of Bechtel for over 20 years.

The current capital raising by Elementos has the potential to raise $4 million of which Jervois would, if it exercised its options, subscribe $1.2 million.

These funds are considered sufficient to confirm the geological model and process flow sheet on reopening the Cleveland tin mine in Tasmania.

The tin price has risen strongly in recent years as a result of global undersupply. This position is expected to continue with Macquarie recently predicting an average tin price in 2019 of US$23,000/t. One of the factors driving the tin market is the use of tin in the energy related technologies, particularly its application in electric vehicles, lithium ion batteries and lead free electronics.

The rise in prices is having a dramatic impact on profitability as evidenced by the recent results from the Renison tin mine, also located in Tasmania.

The investment complements Jervois’ holding of 10 million shares in Explaurum Ltd.

By order of the Board.

Stephen van der Sluys Executive Chairman