ELEMENTOS LIMITED — Interim / Quarterly Report 2010

Oct 28, 2010

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29 OCTOBER 2010

QUARTERTLY REPORT SEPTEMBER 2010

Highlights

• Manantiales drilling program completed

• Mapping and sampling program commenced at Santo Domingo

• High-grade polymetallic rock chip samples from Cathedral Rocks

• New tenement applications lodged for exploration ground surrounding the Millenium Mining Licences

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) June quarter exploration activities focused on the Manantiales gold-silver project where the inaugural drilling program was completed. In Santo Domingo a detailed sampling program commenced, and in Australia the first reconnaissance surface sampling program at Cathedral Rocks commenced.

MANANTIALES

Drilling program completed

The inaugural Manantiales drilling program was completed on the 26[th] September. Completion was delayed by extreme winter weather conditions. The completed program comprised 19 diamond holes for a total 1,634 metres spread over two prospects:

• Manantial vein 15 holes totaling 1,381 metres; and

• • Julieta Norte 4 holes totaling 253 metres.

The results of the drilling program have subsequently been announced since the end of the quarter in an ASX release titled “High-grade gold zone intersected at Manantiales” dated 25 October 2010.

Target generation

Target generation has continued at Manantiales with the aim of discovering new prospects for drilling in the first half of 2011.

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The primary focus of this ongoing program is to identify and sample extensions of the previously identified La Puerta vein system, to assess new vein systems identified 600 metres east of La Puerta, and explore the southern extent of the project.

A new 25 kilometre access track has been constructed from the main paved road to the La Puerta vein, and is now advancing towards the Manrique base-metal target. This new track will provide access to the northern extent of the property which the Company believes is highly-prospective for vein mineralisation

SANTO DOMINGO

During the quarter a comprehensive field mapping and sampling program focused on Divisoria, Alunita and the eastern extension of the El Arriero prospects commenced. The program is intended to confirm and extend the gold-coppermolybdenum porphyry-style mineralisation identified from previous work conducted by Orocobre Limited prior to the Elementos Initial Public Offering.

The fieldwork will include detailed outcrop mapping, and rock chip, stream sediment, talus and soil sampling. Mapping will include detailed structural and alteration mapping as part of which, hand-samples will be sent off for a Terraspec1 (SWIR) survey in order to characterise the alteration halos.

The discovery of a new high-grade Polymetallic vein system has subsequently been announced since the end of the quarter in an ASX release titled “High-grade polymetallic mineralisation discovered at Santo Domingo” dated 26 October 2010.

CATHEDRAL ROCKS

During the quarter, the Company commenced its first geological mapping and sampling program at the School Gully Creek and Yarronah prospects at Cathedral Rocks. Preliminary results have returned geochemical signatures which appear to confirm Intrusive Related Gold (IRG) style mineralisation in some parts of the property.

School Gully Creek

Mapping and sampling in the vicinity of the historic School Gully tin workings have indicated the presence of IRG type mineralisation. Selective rock-chip sample results returned strongly anomalous gold, arsenic, bismuth and tin, with low base-metals and low silver-gold ratios, which is common in IRG gold systems in northern New South Wales. Auriferous mineralisation occurs in the contact zone of the Round Mountain granite and its’ baked sedimentary wallrock. Selective rock-chip sample results include 1.03g/t Au, 5.96g/t Ag and 1.82% As, 0.08g/t Au, 8.03g/t Ag and 0.21% As, 2.61g/t Ag, 0.3% Mo and 0.11% Cu, and 87g/t Ag, 0.12% Bi and >500g/t Sn[2] .

From the 30 samples taken around the historic tin workings, 11 samples returned grades exceeding 0.8g/t Au, 5g/t Ag, 0.15% As or 500g/t Sn.

1 Proprietary, short-wave Infra-red spectral analysis used to identify alteration suites in hydrothermal systems for targeting purposes.

2 Au – gold, Ag – silver, Bi – Bismuth, As – Arsenic, Sn – Tin, and Cu - Copper

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Yaroonah

Base-metal mineralisation has been identified in dykes from rock chip sampling at Yaroonah. Select rock chips returned grades including:

• 4.87%Pb[3] , 5.41%Zn and 188g/t Ag; and

• 3.15%Pb, 6.88%Zn and 51.1g/t Ag.

Yaroonah samples also contained up to 0.3% molybdenum and 189g/t silver from in selective samples. Even thought there is very limited outcrop, from a total of 22 samples around the old workings, 10 returned grades of over 0.5% lead, 0.5% zinc or 10g/t silver.

On-going exploration will involve mapping and rock chip sampling to extend and delineate the known zones of mineralisation and identify new targets.

MILLENIUM

During the quarter, there were no exploration activities at Millenium. The Company is focused on building its tenement position in the Cloncurry area and lodged applications for new tenements north and north-east of the Millenium Mining Licences (“ML’s”). Elementos has completed three new exploration permit applications which are located along the structural trend that hosts the previously identified copper-cobalt mineralisation. When the tenements are granted exploration work will focus on:

• Reconnaissance mapping and sampling along the line of the structural trend;

• A broad-scale soil sampling program to delineate anomalies and help focus in on areas of potential mineralisation;

• Follow-up geophysical surveying to identify targets for drilling; and

• Exploratory drilling of the targets generated along with confirmation drilling of the known mineralisation in the Federal mining leases.

Contract variation

A Deed of Variation was agreed with Forte Energy NL on the Millenium option to purchase contract to allow additional time for the renewal of the Mining Licences.

DALMORTON

A detailed review of all the historical exploration data and a field visit to some of the prospective areas was completed during the quarter. The Company is currently planning its future exploration strategy for the property while clarifying the legislative requirements for exploration on State Forest land and in the vicinity of a National Park.

SYDNEY FLATS

During the quarter the Company completed an additional pump-test using a variation of the trial performed earlier in the year. This succeeded in lifting material from a deep-lead in the Hopetoun property, but subsequent analysis indicated no gold was present. No further work has been completed due to wet weather

3 Pb – Lead, Zn – Zinc, Ag - Silver

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restricting safe access into the property. The Company is currently planning its future exploration strategy for the property.

For more information, please contact:

Corey Nolan Managing Director Phone: +61 (7) 3871 3985 Email: admin@elementos.com.au

Elementos is an Australian, ASX-listed, exploration company, with a number of projects in Argentina and Australia, which offer an attractive investment environment. The properties are all in mineral rich, highly prospective provinces, with developed infrastructure nearby.

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 is based on information compiled by Mr Alistair Grahame, a member of the Australian Institute of Geoscientists. Mr Grahame is a full-time employee of Elementos Ltd 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 Grahame consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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