ELEMENTOS LIMITED — Interim / Quarterly Report 2011

Apr 28, 2011

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29 April 2011

QUARTERTLY REPORT MARCH 2011

Highlights

• Manantiales Phase 2 drilling program commenced

• High-grade gold vein system discovered at Yvette

• Placements to strategic investors and non-renounceable rights issue to existing investors totalling $7.2 million completed

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) quarterly exploration activities were concentrated on the Yvette silver and base metal vein system and the commencement of the Phase 2 drilling program at Manantiales.

MANANTIALES

Phase 2 Drilling Program

The phase 2 drilling program commenced in mid-March at the Manantiales epithermal gold-silver project. The objectives of this diamond drilling program are:

• Expand the size of the known mineralisation at the Manantial vein identified in the first phase of drilling. The system is open to the north and south along strike, and at depth;

• Test at depth for possible extensions of the Julieta Norte vein system which intersected low-grade gold and silver mineralisation at shallow levels in the Phase 1 drilling program. Julieta Norte is the northern extension of Troy Resources’ main satellite vein system;

• Identify mineralisation at La Puerta and La Puerta Este where surface channel sampling has intersected high-grade gold and silver in vein systems exposed on surface; and,

• Continue testing for parallel blind vein structures at depth not identified through surface mapping, and for stockwork mineralisation in the alteration zone around the main vein systems.

The Phase Two drilling program is expected to comprise 25 holes totalling up to 4,000 metres including:

• Manantial vein – 2,000 metres in 15 holes;

• Julieta Norte vein – 500 metres in 5 holes; and,

• La Puerta group - 1,500 metres in 10 holes.

The Company also has the option to drill a further 1,000 metres, if required.

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The company believes that this drill program has the potential to expand the known gold-silver mineralisation in the vein systems at Manantial and Julieta Norte. The program will also confirm the potential for the La Puerta group of vein systems which share similar geology characteristics to the Manantial vein.

Project-scale exploration is continuing with the aim of identifying new targets for drilling. The initial focus is to sample potential extensions of the La Puerta vein system, plus a new vein system identified 600 metres east of La Puerta. Target generation will first cover the five kilometres of untested ground between the La Puerta and Julieta Norte veins, and gradually work northwards towards the Manrique prospect.

SANTO DOMINGO

Yvette

A new high-grade, narrow vein structure has been identified 700 metres to the north of the previously reported silver mineralisation. This new north-south trending vein system extends towards the El Arriero Extension porphyry gold-copper system. Representative[1] samples from the new gold-rich vein include:

• 1.4 metres at 26.4 g/t gold and 2,538 g/t silver;

• 0.2 metres at 115.7 g/t gold and 91 g/t silver; and

• 0.2 metres at 53.1 g/t gold and 68 g/t silver.

New assay results from selective rock chips over old mine dumps included:

• 55.6 g/t gold plus 142 g/t silver, 0.33% lead and 0.1% zinc; and,

• 4.44 g/t gold plus 377 g/t silver, 0.98% lead and 0.64% zinc.

Further high-grade silver results to the south of Yvette

Additional selective samples taken over old mine dumps located up to one kilometre to the southwest of the previously recognised Yvette polymetallic vein have returned significant silver and base-metal anomalies, including:

• 3,804 g/t silver, 8.3% lead, 0.24% zinc;

• 553 g/t silver, 1.2% lead, 0.67% zinc; and

• 494 g/t silver, 0.64% lead, 0.96% zinc.

Elementos will continue detailed mapping and sampling of the vein systems at Yvette. The Company is also planning a geophysical program to assist with the targeting of veins not exposed on the surface and to understand the veins at depth. Following the geophysics program, priority targets will be drilled. Earthworks for drilling rig access have already commenced.

CATHEDRAL ROCKS

During the quarter there were no exploration activities at Cathedral Rocks due to wet weather restricting access to the property.

1Representative, fixed-length, continuous-channel rock chip samples.

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On-going exploration activities will include mapping and rock-chip sampling to determine the zones of prospective mineralization at School Gully and Yaroonah.

MILLENIUM

During the quarter there were no exploration activities at Millenium. Weather permitting, exploration including a soil sampling program over the northern eastern extension of the Mining Licences will commence in late April. Planning is advanced to follow up the soil sampling program with an RC drilling program.

CORPORATE ACTIVITIES

Capital Raising Initiative Completed

During the quarter, the company completed the capital raising initiative announced on the 29 December 2010. The capital raising incorporated:

• A 15% private placement of 8.1 million shares in the Company to Andes Investors LLC;

• Private placement of 5.8 million shares to sophisticated investors Belmont Park Investments Pty Ltd and Panorama Ridge Pty Ltd, approved by shareholders at a General Meeting on 28 March 2011; and

• Pro-rata rights issue to shareholders on a 1:4.48 basis. Acceptances from eligible shareholders totalled 87 per cent, but there was a strong demand for the rights and the issue was fully subscribed.

The placement and rights issue were priced at $0.26 per share, equal to the 14-day volume weighted average price (“VWAP”) when the transaction was negotiated and approved by the board. No brokerage or investment advisor fees were payable in connection with the transactions.

New funds are being invested into the Company’s exploration programs, including the Manantiales Phase 2 drilling program which has now commenced, and the review of acquisition opportunities in Chile and Argentina.

James Calaway Appointed Director

The Company announced the appointment of James Calaway as a non-executive director.

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

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SAMPLE QUALITY CONTROL AND ASSURANCE

Note: Selective rock chip samples include samples from old mines dump material and characterisation samples from vein material. Representative samples are continuous chip-channel samples to a specified length. The chipchannel sample widths presented above are sample intersection widths and may not represent the true widths of mineralisation. Assay results presented are certified final results.

The Silver Equivalent (Silver Eq) values were calculated as follows: Silver Eq = Ag (g/t) + (Pb % x 24.25/0.84) + (Zn% x 23.14/0.84). Gold has not been included in the Silver Eq equivalent calculation. Metal price used for Silver equivalent calculation: US $35.28/oz for silver, $1.04/lb for zinc, $1.23 /lb for lead (Source. Kitco Metals)

Samples were prepared at the Acme Analytical Laboratories (“AcmeLabs”) preparation facility in Mendoza, Argentina and assayed by fire assay (50 gram charge) at the AcmeLabs laboratory in Chile and for ICP-MS 32 elements (15 grams charge) at the AcmeLabs laboratory in Vancouver, all ISO-9001:2000 certified laboratories. Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are assayed using gravimetric analyses.

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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