ELEMENTOS LIMITED — Interim / Quarterly Report 2014

Oct 29, 2014

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30 October 2014

QUARTERLY REPORT SEPTEMBER 2014

Highlights

• Large silver-lead-zinc soil anomalies identified in the Cleveland Province

• Over-subscribed rights issue raises $1.52M

• Metallurgical testwork program commenced

• Chief Operating Officer appointed

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) activities this quarter have been focused on the development of the 100% owned Cleveland Province.

Following the successful mid-year capital raising, development activities continue to be concentrated on the low capex tailings project at Cleveland, which presents an opportunity to generate positive cash flows, that can be used for the on-going development of the Province. The Development Proposal and Environmental Management Plan and the Mining Lease Applications are targeted for submission in early 2015.

Silver-Lead-Zinc Soil Anomalies Identified

During the quarter, a trial soil sampling program was undertaken at the Godkin zone, two kilometres south of the Cleveland tin mine. Two large base metal soil anomalies were delineated over a wide area, where previous high-grade selective samples for silver, lead and zinc had been taken. The aim of the soil sampling program was to test a technique for identifying mineralised structures that are not clearly visible on surface over a wide area. The Company believes the combination of the selective sampling program undertaken in March 2014, and this trial soil sampling program, demonstrates the strong base metal potential of the Godkin zone.

Capital Raising

During the quarter, the rights issue previously announced on 6 June 2014, closed oversubscribed, raising $1.52 million. In June and July 2014, the Company raised a total of $2.10 million, including $0.58 million by private placement, to fund the ongoing development of the Cleveland Province.

Metallurgical Testwork

During the quarter, the Company commenced metallurgical testwork on the Cleveland tailings project at ALS Metallurgy Burnie. The objective of the program is to further develop the process flowsheet using modern gravity, flotation and associated techniques geared to optimising recovery, operating costs and concentrate grade.

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Appointment of Chief Operating Officer

Experienced geologist and manager, Tim McManus, was appointed Chief Operating Officer during the quarter. Tim will drive the development of the Cleveland Province in Tasmania, with particular focus on the tailings project.

Selwyn Range Project, Queensland, Australia

During the quarter, there were no exploration activities at Selwyn Range. The joint venture agreement with Below Ground Technology Pty Ltd was being finalised.

Millenium Project, Queensland, Australia

During the quarter, there were no exploration activities at Millenium. The Company’s joint venture partners, Chinalco Yunnan Copper Resources Ltd are assessing the geological features at Millenium, to establish the targets for a deeper drilling program, scheduled for early 2015.

Santo Domingo, Argentina

During the quarter, there were no exploration activities at Santo Domingo. Joint venture negotiations continue.

Financial Position

At the end of the quarter, the Company had cash reserves of $1.59 million. Further details of the Company’s financial activities during the quarter are set out in the Appendix 5B quarterly cash flow report.

For more information, please contact:

Calvin Treacy

Managing 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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Elementos Ltd held the following interests in exploration tenements at the end of the quarter:

arter:
Tenement Name	Tenement Number	Area(Hectares)	ElementosInterest	Location ofTenements
Santo DomingoMilleniumSelwyn SouthCleveland	MD 1124-493-G-07MD 1124-094-G-09MD 1124-133-G-09MD 1124-454-G-09MD 1124-643-G-10EPM 1124-494-G-07EPM 1124-495-G-07EPM 1124-496-G-07EPM 1124-497-G-07EPM 1124-499-G-07EPM 1124-500-G-07EPM 1124-265-G-08EPM 1124-633-G-10EPM 1124-022-G-11EPM 1124-131-O-09EPM 1124-132-O-09MD 1124-309-G-12MD 1124-308-G-12MD 1124-149-G-14MD 1124-148-G-14MD 1124-350-G-14MD 1124-351-G-14ML 2512ML 2761ML 2762ML 7506ML 7507EPM 18402EPM 18773EPM 18793EPM 18982EPM 19014EPM 19036EPM 19371EPM 19375EPM 19426EL7/2006EL9/2006EL15/2011	49751114585001940900133890090090090026161179150049539203150020019951499340126942016504551463859225141846111321638606400643179841953358	Nil - earningNil - earningNil - earningNil - earningNil - earningNil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earningNil – earningNil – earning(i)Nil – earning(i)Nil – earning(i)Nil – earning(i)100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%	ArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaArgentinaQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandQueenslandTasmaniaTasmaniaTasmania

(i) Tenements/Cateos in process of being granted/transferred

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The following tenements expired during the quarter, and were replaced with new tenements:

nements:
Tenement Name	Tenement Number	Area(Hectares)	ElementosInterest	Location ofTenements
Santo Domingo	EPM 1124-368-G-06EPM 1124-385-G-06EPM 1124-498-G-07EPM 1124-336-G-08	19583496900368	Nil-earningNil-earningNil-earningNil-earning	ArgentinaArgentinaArgentinaArgentina

The following tenements were acquired during the quarter, replacing the expired tenements above:

nements above:
Tenement Name	Tenement Number	Area(Hectares)	ElementosInterest	Location ofTenements
Santo Domingo	MD 1124-309-G-12MD 1124-308-G-12MD 1124-149-G-14MD 1124-148-G-14MD 1124-350-G-14MD 1124-351-G-14	1500200199514993401269	Nil-earningNil-earningNil-earning (i)Nil-earning (i)Nil-earning (i)Nil-earning (i)	ArgentinaArgentinaArgentinaArgentinaArgentinaArgentina

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