ELEMENTOS LIMITED — Interim / Quarterly Report 2010

Apr 29, 2010

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30 APRIL 2010

QUARTERTLY REPORT MARCH 2010

Highlights

• Manantial and Julieta Norte prospects mapped and surface sampled with high grade gold mineralisation identified in a number of vein structures.

• Manantial and Julieta Norte prospects ready for drilling in the June quarter 2010 (subject to approval of the Environmental Impact Assessment).

• Exploration sampling commenced at La Puerta and the first samples are being processed at the laboratory.

• Orocobre in-specie share distribution completed.

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) March quarter exploration activities were focused on the Manantiales Project. Access to the Santo Domingo project was restricted due to the summer rain season.

MANANTIALES, ARGENTINA

Manantial and Julieta Norte veins

During the quarter Elementos completed detailed mapping and saw channel sampling of the Manantial and North Julieta veins.

The Manantial vein (Figure 2) is delineated over a 275 metre north trending structure, up to 6 metres in width. This is accompanied by a broad halo of low-grade disseminated mineralisation which may increase the potential to develop an open cut, bulk tonnage operation. The planned drilling program will help define the vertical continuity of these secondary vein zones and confirm the potential for wider vein zones at depth.

The Julieta Norte vein (Figure 3) is the northern extension of Troy Resources’ Julieta vein, 1.7 kilometres east of the Manantial vein. Sawn channel sampling and mapping demonstrates that the Julieta Norte veins are two parts of a 170 metre long mineralised structure separated by 75 metres of talus and is open to the north (Figure 3).

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Highlights of the channel sampling program are tabulated below:

Table 1: Exceptional channel sampling results from Manantial (MTN) and Julieta Norte (Jul N)

Channel	From (m)	To (m)	Sample	Gold (g/t)	Silver (g/t)	Vein Zone
			Length (m)
C1	0.0	0.3	0.3	5.9	16.04	MTN
C2	0.0	0.7	0.7	9.8	42.73	MTN
C3	0.0	2.8	2.8	2.6	20.47	MTN
C4	0.0	1.0	1.0	4.8	53.95	MTN
C5	1.9	6.3	4.4	4.6	18.18	MTN
C6	0.8	2.9	2.1	1.3	2.28	MTN
& C6	9.9	10.9	1.0	3.5	5.78	MTN
C29	0.0	6.0	6.0	2.4	18.7	MTN
C57	13.2	17.6	4.4	4.2	28.7	MNT
C52	0.0	3.3	3.3	5.6	8.33	JUL N
C53	0.0	2.3	2.3	4.3	14.17	JUL N
C52	0.0	3.3	3.3	5.6	8.33	JUL N
C53	0.0	2.3	2.3	4.3	14.17	JUL N
C55	0.0	1.7	1.7	1.4	4.47	JUL N
C63	0.8	1.7	0.9	2.6	NSV	JUL N

Drilling logistics

The surface channel sample results and ongoing mapping, and a proposed geophysical survey, will be used to continue defining drill targets at the Manantial and the Julieta Norte prospects. Drilling is planned for the June quarter of 2010 (subject to approval of the Environmental Impact Assessment) and preparations are advanced.

The Environmental Impact Assessment (“EIA”) is in the final stage of evaluation by the San Juan provincial mines department. A site inspection by the Mines Inspector has been arranged in order to validate the environmental status of the project. Upon the successful completion of the inspection, the EIA will require final approval by the Mines Registrar and the Mines Secretary.

A number of proposals have been received from earthmoving and drilling contractors and these are being evaluated to ensure that drill rigs can be mobilised quickly when the EIA is approved.

Manantiales June quarter exploration activities

Exploration activities during the June quarter:

• on-going mapping and sampling to identify further vein systems at the Manantial and Julieta Norte prospects;

• saw channel sampling and mapping of the La Puerta prospect; and,

• drilling of primary targets (subject to finalisation of the Environmental Impact Assessment).

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SANTO DOMINGO, ARGENTINA

During the quarter planning was finalised for the 2010 field season. The work program will be undertaken in three phases:

• 1) field mapping and geochemistry program focused on the Divisoria, Alunita and the eastern extension of the El Arriero prospects;

• 2) deep penetration ground geophysics to assist with the definition of mineralisation and drill targets at depth; and,

• 3) drilling of the most attractive targets.

The mapping and sampling program is intended to extend and confirm the goldcopper-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 Terraspec[1] (SWIR) survey in order to characterise the alteration halos.

The program is expected to be completed by the end of July.

Deep penetration ground geophysics (MT, magnetometry or MIMDAS) have been planned to follow-up on the mapping and sampling work in order to define drill targets.

Approval has been granted by the San Juan Mines Department to construct a light vehicle access road into the Santo Domingo prospect area. A temporary field camp is being used to support field activities until the new access is completed over the coming weeks.

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

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Figure 1: Santo Domingo prospect map

Contract project geologist to support San Juan exploration activities

Jorge Achem, a senior geologist with fifteen years of experience, has been appointed to assist with the implementation of the Santo Domingo field programs. Jorge holds a Degree in Geological Science from the National University of San Juan, Argentina. He has extensive experience working in and around San Juan province as well as nationally and internationally with companies including Barrick, Peñoles, Tenke and Electrum. His experience should complement that of Elementos’ existing staff and their portfolio of projects.

NORTHERN NEW SOUTH WALES

NSW project geologist to support New England Fold Belt exploration activities

Peter Smith has been appointed Project Geologist responsible for the Company’s New South Wales projects, based in Armidale. Mr Smith will be responsible for adding value through the exploration for and discovery of mineral deposits. Peter will be focused on the New England Fold Belt in northern New South Wales and will report to the Exploration and Development Manager.

Mr Smith has previously worked as an exploration and mine geologist for companies including North Queensland Metals, and Perilya. His expertise includes the planning and management of exploration field programs including exploration drilling, the use of geological software packages, and the administration of Government reporting requirements. Mr Smith has also previously been involved in his family’s farming business and this experience will be beneficial when dealing with landowners on the Company’s projects.

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Mr Smith holds a Bachelor of Science Degree (Geology/Geography) and is familiar with the company’s project areas through his geological studies at the University of New England, Armidale.

Tenure reductions

During the quarter the company reduced the size of its tenement holdings at Sydney Flat, Cathedral Rocks and Dalmorton by 50 per cent as part of the three year tenure renewal process. Despite the anticipated reduction, the Company retains a large ground holding in the New England Fold Belt which is prospective for gold and base metals.

Sydney Flat

During the quarter planning and arrangements were made for a trial bulk sample collection in an abandoned open mine shaft. It is expected the shaft will provide access to the deep lead sands at shallow depths. The shaft was historically constructed to mine the deep lead sands, only to be abandoned due to high ground-water pressures.

Additionally, detailed planning for a drilling program in May/June (subject to drill rig availability) is underway and includes on-going mapping and correlation of the ground penetrating radar program to establish drilling targets.

Cathedral Rocks and Dalmorton

A historical data review was completed during the quarter at both projects. Mapping and sampling programs will commence in May targeting regions known for gold, molybdenum, and tin mineralisation at Cathedral Rocks, and gold at Dalmorton.

MILLENIUM

During the quarter the company continued a detailed review of all the historical exploration data. An initial exploration programme comprising mapping, soil geochemistry and geophysics is planned to test for mineralisation along strike and down-dip.

CORPORATE

During the quarter Orocobre Limited (“ORE”) shareholders approved the in-specie distribution of 20 million shares granted at the Initial Public Offering (“IPO”). The shares were consideration for the assets acquired by Elementos through the demerger. The shares commenced trading in early April. Of the 20 million shares distributed to ORE shareholders, 5.2 million are escrowed for two years from the time of the IPO. Elementos welcomes the new shareholders and looks forward to their continued support as the Company executes its copper-gold strategy.

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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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Figure 2: Detail of the Manantial vein prospect showing channel location and main mineralised intervals along strike as well as schematic geology, alteration and structure. New channels are labelled in red and the previous reported samples are labelled in light brown.

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Figure 3 : Detail of the Julieta Norte vein prospect showing channel location and main mineralised intervals along 200m of northwest trending strike as well as schematic geology, alteration and structure. New channels are labelled in red and marked with * and the previous reported sample is labelled in light brown and marked with **. Note the talus covered area between northern segment and southern segment of the vein.

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