ELEMENTOS LIMITED — Interim / Quarterly Report 2010

Jul 29, 2010

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30 JULY 2010

QUARTERTLY REPORT JUNE 2010

Highlights

• Manantiales Environmental Impact Assessment approved for all exploration activities for two years.

• Manantiales diamond drill program comprising up to 1,500 metres to commence in early July.

• Santo Domingo detailed sampling program at El Arriero extension, Divisoria, and Alunita commenced.

• Millenium surface sampling confirms high-grade copper-cobalt mineralisation extends a further one kilometre along strike to the north.

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) June quarter exploration activities included preparation of the Manantiales gold-silver project for drilling, a detailed surface sampling program at Santo Domingo, and reconnaissance surface sampling at Millenium.

MANANTIALES

Environmental impact assessment approved

During the quarter the San Juan Government approved the Environmental Impact Assessment (“EIA”) for the Manantiales epithermal project.

The EIA is valid for two years, and approves all exploration activities including sampling and drilling over the entire 100 square kilometre property. Additionally, the EIA permits earthmoving for construction of access roads, drill pads, field camps, and underground adits for sampling.

Drilling Program

Drilling crews mobilised at Manantiales during June to commence drilling in July, following the completion of site access and drill pad construction.

The objective of the diamond drilling program is three-fold:

• Drill the main vein systems at Manantial and Julieta Norte identified through surface channel sampling. The program will include both shallow and deeper

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holes (up to 120 metres depth) testing depth extensions of the main vein systems;

• Test for mineralisation within the alteration zone surrounding the main vein zones to confirm the potential for stockwork mineralisation. This would present the possibility of lower grade-bulk tonnage mineralisation, more amenable to open cut mining; and

• Test for parallel blind vein structures at depth not identified through surface mapping.

The Company believes the drill program has the potential to expand known gold and silver mineralisation at Manantiales, especially at the Julieta Norte vein, and establish the possible extension of the recently-drilled Julieta vein owned by Troy Resources.

The first phase of drilling will comprise 20 holes totalling up to 1,500 metres.

New channel sample results

During the reporting period, ongoing channel sampling confirmed and extended the surface extent of the mineralisation at both Manantial and Julieta Norte, and discovered mineralisation at La Puerta to the east.

Highlights of the channel sampling program are tabulated in Figure 1 below:

Manantiales June quarter exploration activities

Exploration activities during the September quarter:

• The phase one drilling program at Manantial and Julieta Norte will be completed and the results compiled and analysed;

• Follow-up work on Manrique, in the northern part of the project, where a silver, lead, zinc anomaly is considered to be potentially similar to the nearby Castaño Viejo vein and abandoned mine;

• Further target definition work (mapping and saw channel sampling) at the La Puerta target; and,

• On-going project-scale target generation. The potential of the eastern area has been increased following the recent announcement by Troy Resources of a new vein discovery, Casposo Norte, located some 1.5 kilometres eastsoutheast of Elementos’ La Puerta vein.

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Channel	From (m)	To (m)	Sample Length (m)	Estimated True-Width (m)	Gold (g/t)	Silver (g/t)	Vein zone
C 65	0	1	1	0.7	7.24	101	MNT
C 66	9.1	10.1	1	1	8.28	102.2	MNT
including	9.1	9.8	0.7	0.7	12	143	MNT
C 67	2.9	5.7	2.8	1.7	1.05	6.1	MNT
including	2.9	3.9	1	0.6	1.492	5	MNT
C 68	0	0.9	0.9	0.5	1.63	19.6	MNT
including	0	0.2	0.2	0.2	2.59	46	MNT
C 70	0	0.7	0.7	0.7	9.37	130	MNT
C 71	0	1.8	1.8	1.8	2.101	17	MNT
including	0	0.9	0.9	0.9	2.44	21	MNT
C74	7.7	10.5	2.8	2.8	2.78	36.2	MNT
including	9.6	10.5	0.9	0.9	4.29	84	MNT
C76	0	0.6	0.6	0.6	3.7	63	MNT
C76	6.3	8.4	2.1	2.1	2.43	27.33	MNT
including	6.3	7.3	1	1	4.53	53	MNT
C77	0	0.9	0.9	0.9	9.8	9	MNT
C77	6.3	9.2	2.9	2.9	1.31	2.66	MNT
including	6.3	6.9	0.6	0.6	3.34	15	MNT
C78	4.6	7.2	2.6	2.6	1.864	35	MNT
C79	0	3.1	3.1	1.8	1.73	20.72	MNT
C80	0	0.7	0.7	0.7	8.15	82	MNT
C81	0	4	4	2.1	1.31	3.48	MNT
C82	2.05	3.35	1.30	0.80	2.07	7	MNT
C83	0	2.8	2.8	1.4	2.31	8.71	MNT
including	0	1.2	1.2	1	2.83	9	MNT
LP C 04	0	1.3	1.3	0.9	4.46	10	LP
LP C 05	0	2.4	2.4	1	8.35	14.33	LP
including	1.4	2.4	1	0.3	10.4	19	LP
LP C 08	0	1.2	1.2	0.5	7.57	41	LP
LP C 12	0	0.8	0.8	0.8	10.6	84	LP
LP C 13	0	1.3	1.3	0.9	12.9	134	LP
LP C 15	0	1.1	1.1	0.7	4.53	27	LP
LP C 16	0	0.8	0.8	0.5	1.59	4.54	LP
including	0.3	0.8	0.5	0.2	1.69	4	LP
LP C 17	0	1.4	1.4	1.1	1.6	6	LP

Figure 1: Significant intercepts from channel sampling at Manantial and La Puerta veins

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Santo Domingo

During the quarter the Company completed the new access road from the main highway through to the El Arriero anomaly, and completed construction of the winter field camp to support exploration activities for 2010.

The field mapping and geochemistry program at Divisoria, Alunita and the eastern extension of the El Arriero prospects is underway. The program is intended to extend and confirm the gold-copper-molybdenum 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. Samples will be sent off for a Terraspec1 (SWIR) survey in order to characterise the alteration halos.

Sydney Flat

During the quarter the Company announced that a ten-hole drilling program for the Sydney Flat project was suspended due to wet weather restricting the access of the drill rig onto the project site. The program will be rescheduled when the weather has improved and a suitable rig is available.

Cathedral Rocks

Mapping and sampling commenced during the quarter, targeting regions known for gold, molybdenum, and tin mineralisation at Cathedral Rocks. A large lead, zinc & tin anomaly identified through the historical data analysis was mapped and sampled and assay results will be reported in the September quarter. A strong molybdenum soil anomaly has also been identified through historic data analysis which is considered a good indicator for potential gold, silver and base metals mineralisation. This area will be mapped and sampled during the September quarter.

Dalmorton

A program has commenced to confirm and redefine the historic exploration prospects and extend these whilst focusing on defining sustainable and economic mineable resource in the Pine Creek prospect. Reconnaissance mapping and sampling commenced at Dalmorton in late June 2010.

Millenium

The Company’s first geological mapping and sampling program at Millenium, Queensland was completed during the quarter. Significant results included:

• Two rock chip samples in the north returned grades of 1.58% Cu and 11% Cu including a gold intercept of 1.94 g/t;

• Two samples from mine spoil in the north returned 10.3% Cu and 5.1% Cu;

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

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• Rock chip sampling along strike from previous workings in the south returned 20% Cu and 14.1% Cu over 2 metres and 8% Cu, 0.41g/t Au in the main shear;

• Samples of mine spoil in the south returned up to 31.2% Cu and 106g/t Ag;

• Rock chip channel sampling of historic trenching returned values of:

• Trench T6 - 6 metres @ 1.75% Cu and 0.22% Co; and

• Trench T10 - 8 metres @ 2.53% Cu and 0.15% Co, including 4 metres @ 3.85% Cu and 0.24% Co.

The aim of the program was to extend the mapping and analytical data over the northern half of the leases, looking for evidence that the known copper-cobalt mineralised structure continues northwards, checking for potential parallel structures and resampling the existing trenches to confirm the historic results.

Mapping and sampling have confirmed that:

• The copper-cobalt mineralisation extends one kilometre to the north on surface before disappearing under cover;

• These copper values are comparable to the high-grade copper channel samples from historic costeaning;

• There are parallel structures, close-spaced, within the southern mineralisation; and,

• The presence of high-grade copper-gold mineralisation in a carbonate host rock suggests potential for bulk tonnage open pit style of mineralisation.

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Millenium on-going exploration

ELT is planning follow-up exploration programs to expand upon these encouraging preliminary results including:

• Follow-up sampling across the project concentrating on representative sampling of all exposed mineralisation;

• Ground geophysical techniques to determine orientation and extent of the mineralisation in preparation for drilling; and

• Reverse circulation drilling program aimed at identifying the form of the mineralisation at depth.

CORPORATE

During the quarter the Company announced a buy-back of unmarketable share parcels. The sale of unmarketable will be completed in July 2010.

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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 with low sovereign risk. 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 Neil Stuart a fellow of the Australasian Institute of Mining and Metallurgy. Mr Stuart is a Director 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 they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Stuart 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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