ELEMENTOS LIMITED — Interim / Quarterly Report 2013

Oct 24, 2013

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25 OCTOBER 2013

QUARTERLY REPORT SEPTEMBER 2013

Highlights

• Merger with Rockwell Minerals Limited progresses, completion expected in late October 2013

• Scope of work planning for a pre-feasibility study at Cleveland commences

• Establishment of a joint venture with Chinalco Yunnan Copper Resources covering the Millenium project

• Amended Option-to-Purchase contract agreed with Forte Energy on the Millenium Mining Licences

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) activities this quarter have included finalisation of the merger with Rockwell Minerals Limited (“Rockwell”), and the signing of a term sheet to joint venture the Millenium copper-gold assets in north-west Queensland.

MERGER WITH ROCKWELL

During the quarter, the Company made considerable progress towards completing the merger with Rockwell. A Bidders Statement was sent to Rockwell shareholders on the 7[th] August 2013, and at the end of the quarter, acceptances from Rockwell shareholders totalling 98% had been received.

Subsequent to the end of the quarter, the transaction was approved by Elementos shareholders on the 10 October 2013, and the Company proceeded with the Compulsory Acquisition of the remaining shares it did not own. The previously announced board changes and allotment of Elementos shares to Rockwell shareholders will occur in late October 2013.

CLEVELAND PROJECT, TASMANIA

During the quarter, a number of studies were underway at Cleveland as the Company progresses towards the commencement of a pre-feasibility study. The Company is in discussions with a number of consulting groups establishing the scope of work and cost of a completing a pre-feasibility study, which would commence on completion of the merger.

Tailings dam study

A fifteen hole sonic drilling program was recently completed on the tailings dam for geotechnical, environmental, metallurgical and resource investigation. The data will be used for permitting purposes, resource definition and a future pre-feasibility study.

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Environmental permitting for Cleveland mine dewatering and tailings extraction

A submission to the Tasmanian environmental protection agency with a Development Proposal and Environmental Management Plan in accordance to the guidelines issued in March 2012 is currently nearing completion. Tasmanian based Pitt & Sherry have been appointed principal environmental consultants to assist in the submission and associated work;

Lidar survey

A previously completed Lidar survey of the Cleveland area was being integrated into the resource model. The survey provides detailed surface topography including the location of haul roads, ventilation ducts, historic mining operations and portals.

Quantitative mineralogical analysis

A quantitative mineral analysis of the tin-copper tungsten lodes from historical drill core has been completed. The data will provide modern insights into the metallurgical characteristics of the various lodes for flow-sheet design as part of a future pre-feasibility study.

Post-merger development activities

Development activities planned for Cleveland on completion of the merger include:

• Finalise environmental permitting;

• Complete a pre-feasibility study to identify the optimal development scenarios for the tin-copper, tungsten and tin tailings, including capital and operating costs;

• Implement a dewatering program to re-establish access to the Cleveland mine; and

• Progress metallurgical test-work and design a new process flow sheet utilising the latest tin processing technologies, which have substantially advanced since mine closure.

MILLENIUM, AUSTRALIA

During the quarter, the Company signed a term sheet for an earn-in joint venture with Chinalco Yunnan Copper Resources Ltd (“CYU”) to explore for copper, cobalt and gold at Millenium, as well as agreeing amended terms with Forte Energy NL on its Millenium Option-to-Purchase contract.

Millenium, situated near Cloncurry in the world-class Mt Isa Inlier, includes the following tenements:

• Mining Leases (MLs) totalling 134 hectares, subject to an Option-to-Purchase agreement with Forte Energy NL; and

• Exploration Permits (EPMs) totalling 254 square kilometres, and 74 square kilometres of EPMs subject to a contested application.

Millenium Project Joint Venture

The Company has signed a term sheet for an earn-in joint venture with CYU at the Millenium project, on the following terms:

• CYU will make a payment of a $100,000 cash option fee for the exclusive right to explore the properties subject to the joint venture;

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• CYU will have the right to earn 51% of the project by investing $1.2 million over 3 years; and

• CYU may increase its interest by a further 19% of the project, by investing an additional $1.3 million over a further 2 years.

Once CYU earns its 70% interest, each party can either contribute or dilute according to an agreed formula and work program. If either party achieves a 90% interest in the project, the 10% interest immediately converts to a 1% NSR. The agreement is subject to finalisation of a full joint venture agreement and the transfer of the Millenium MLs to Elementos.

Forte Energy Option Agreement

The Company has secured an amended Option-to-Purchase contract terms with Forte Energy, allowing the exercise of its option to acquire the Millenium ML’s for a $100,000 cash payment.

SANTO DOMINGO, ARGENTINA

During the quarter, there were no exploration activities at Santo Domingo. The Company is currently negotiating with the vendor a restructure of its Option-toPurchase contract, to defer any payments during 2013.

MANANTIALES, ARGENTINA

During the quarter, there were no exploration activities at Manantiales. The Company is currently negotiating with the vendor a restructure of its Option-toPurchase contract, to defer any payments during 2013.

TAMAYA, CHILE

During the quarter, there were no exploration activities at Tamaya. The Company is currently assessing all the historical exploration data, including more than 5,000 metres of drilling data, to assess the next steps for the project.

CASH RESOURCES

At the end of the period, the Company had cash resources of $211,754. During the quarter the Company raised $338,610 through a number of private placements under the directors 15% share placement authority.

For more information, please contact:

Corey Nolan Executive Director Phone: +61 (7) 3221 7770 Email: admin@elementos.com.au

Elementos is an Australian, ASX-listed, diversified metals company, including Cleveland, an advanced stage tin-copper and tungsten project in Tasmania, together with a number of prospective copper and gold assets in South America and Australia. Please visit us at www.elementos.com.au

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