ELEMENTOS LIMITED — Capital/Financing Update 2019

Feb 3, 2019

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04 February 2019

E XPLOR ATIO N EV ALU A TI ON A T ORO PE SA TI N PR OJ E CT

[Revised – clarify CPS]

• Estimate of an Exploration Target completed at the Oropesa Tin Project in Spain;

• Exploration Target supported by Induced Polarization geophysical survey data, detailed geological modelling and diamond drilling data;

• Detailed drill programme planning underway.

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) is pleased to announce it has defined an Exploration Target* for the Oropesa Tin Project in Spain of between 35.5mt and 51.0mt at a grade ranging between 0.46% to 0.62% tin.

Table 1 - Oropesa Exploration Target(0.15% Sn cut-offgrade)	Table 1 - Oropesa Exploration Target(0.15% Sn cut-offgrade)	Table 1 - Oropesa Exploration Target(0.15% Sn cut-offgrade)
Range	Tonnes	Grades% Sn
Upper	51,000,000	0.62
Lower	35,500,000	0.46

The Exploration Target has been assessed on prospective stratigraphy in the immediate vicinity to the existing Oropesa JORC Mineral Resource*1.

• The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Table 2 - Oropesa Global Mineral Resources Estimate (0.15% Sn cut-off grade)	Table 2 - Oropesa Global Mineral Resources Estimate (0.15% Sn cut-off grade)	Table 2 - Oropesa Global Mineral Resources Estimate (0.15% Sn cut-off grade)	Table 2 - Oropesa Global Mineral Resources Estimate (0.15% Sn cut-off grade)
Category	Tonnes	Grades % Sn	Contained Tin
Measured	330,000	1.09	3,585
Indicated	9,010,000	0.53	47,320
Total M & I	9,340,000	0.55	50,905
Inferred	3,200,000	0.52	16,615

The Company announced Interim Completion of the Arrangement Agreement for the acquisition of the Oropesa Tin Project on 4[th] January 2019.

The Oropesa JORC resource is defined geophysically by an Induced Polarization (IP) chargeability anomaly. The IP survey was carried out in 2011. The Oropesa project area contains a number of parallel IP anomalies, of which only the central IP anomaly has undergone intensive diamond drilling. Detailed drilling of the central IP anomaly has provided sufficient data to build a geological model on which the current Oropesa resource is based, but also provides sufficient data to be able to assess the potential of the Oropesa project to host additional tin resources. A small number of drill holes were targeted at some of the additional IP anomalies during the early exploration phase but were predominantly oriented in the wrong direction to intersect the main mineralisation system at Oropesa.

*¹ ASX Announcement 31July 2018:- Acquisition of the Oropesa Tin Project

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The Oropesa tin mineralisation (cassiterite with minor stannite) occurs as a replacement style orebody associated with sulphides, predominantly pyrite and pyrrhotite within a sedimentary sequence at the contact between sandstone and conglomerate units. Widespread folding of the sedimentary sequence has resulted in the mineralised sequence being overturned and tightly folded (recumbent folds), being repeated in places.

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Figure 1. Oropesa Project Location

Figure 2. Oropesa mineralisation – stacked recumbent fold

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Figure 3. Oropesa IP chargeability anomalies, showing drill hole locations

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IP Line 08
Oropesa
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Figure 4a. IP Line 08 – chargeability anomaly

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Figure 4b. IP Line 08 – Oropesa resource drilling tin mineralisation overlaying central IP chargeability anomaly

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Figure 4c. IP Line 08 – Oropesa resource drilling downhole geology overlaying central IP chargeability anomaly

**Please digitally magnify the images for more detail

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Figure 5. Structural and geological interpretation of the IP anomalies at Oropesa

The Exploration Target is based on the current geological understanding of the mineralisation at Oropesa. The target was restricted to a depth of 150m from surface. The Exploration Target, being conceptual in nature, takes no account of any unknown geological complexity, possible mining method or metallurgical recovery factors. The Exploration Target has been estimated in order to provide the market with an assessment of the potential scale of the Oropesa Tin Project.

A detailed exploration drilling programme to test the IP anomalies is currently being planned by the Company’s personnel in Spain. Priority drill targets will be;

• along strike from the existing resource,

• immediately to the north of the existing resource, and

• in areas that are earmarked for infrastructure for the proposed mine development, currently under application for approval with the regulatory Andalucian authorities.

For more information, please contact:

Duncan Cornish

Company Secretary Phone: +61 7 3212 6299

Email: admin@elementos.com Please visit us at: www.elementos.com.au

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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.

COMPETENT PERSONS STATEMENT

Exploration Targets

The information in this report that relates to Exploration Targets is based on information compiled by Chris Creagh, who is a full-time employee of Elementos Ltd. Mr Creagh is a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and who consents to the inclusion in the report of the matters based on his information in the form and contex t in which it appears.

Chris Creagh has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012). Mr Creagh consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Mineral Resources

The information in this announcement that relates to Mineral Resources on the Oropesa Tin Project was reported by the Company to the ASX on 31[st] July 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement, and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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