ELEMENTOS LIMITED — Capital/Financing Update 2020

Jul 19, 2020

ASX ANNOUNCEMENT

ELEMENTOS TOMORROW’S TIN

20 July 2020

Elementos opts to retain 100% of Oropesa Tin Project ahead of drilling and optimisation plan.

Elementos Limited (ASX: ELT) will retain 100% ownership of its projects including the company’s flagship Oropesa Tin Project in Spain following its decision to withdraw from a proposed 1% Gross Revenue Royalty (GRR) deal with Canada’s Electric Royalties for C$500,000 cash and 1.5 million common shares.

Any decision to enter into a royalty structure will now be delayed until a Defintive Feasibility Study at Oropesa is completed, a move Elementos Chairman Andy Greig described as “financially prudent”.

“We are confident that our proposed drilling and optimisation plan at Oropesa, which is designed to increase the project’s overall resource, annual production and mine life, will unlock significant value in the project,” Mr Greig said.

“Retaining full ownership of Oropesa at this time ascribes maximum value to shareholders given the strengthening opportunity to create value-uplift as the project is advanced towards full feasibility and development.

“Elementos is currently pursuing new financing plans and has received interest from a number of parties interested in funding Oropesa’s progression along the value chain,” he said.

A recently completed Economic Study has demonsrated Oropesa’s attractive economics as a globally signifcant new tin development with a prospective annual production of 2,440 tonnes over a 14-year mine life.

At a tin price of US$19,750/tonne, the mine could potentially generate an annual gross revenue of more than US$48 million against a forecast operating cost of US$28 million per year or cash cost of US$11,800/tonne of metal. The estimated capital development cost is US$52.2m including a 20% contigency.

Elementos’ Board has authorised the release of this announcement to the market.

For more information, please contact:

Mr Duncan Cornish Christopher Dunks Company Secretary Executive Director Phone: +61 7 3221 7770 Phone 0410 435 554 admin@elementos.com.au cd@elementos.com.au

Level 6, 10 Market Street Brisbane Queensland 4000 Phone +61 (0)7 3221 7770 admin@elementos.com.au elementos.com.au

Elementos Limited | ABN 49 138 468 756 | ASX: ELT

TOMORROW’S TIN

ASX:ELT

ABOUT ELEMENTOS

Listed on the ASX in 2009, Elementos is committed to the safe and environmentally-conscious exploration and production of high-grade tin resources.

Led by an experience-heavy management team and Board, Elementos is positioned as a diversified tin platform, with an ability to develop exciting projects in multiple countries.

As tin stocks hover at historic lows, the company is well-positioned to help bridge the significant supply shortfall in coming years. This shortfall is being partly driven by increasing global interest in renewable energy and electric vehicles. In 2018, Rio Tinto, through research by Boston’s Massachusetts Institute of Technology (MIT), announced tin was predicted to be the metal most impacted by the transtion to the new energy economy for its use in electric vehicles, robotics, renewable energy storage and advanced computation .

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