ELEMENTOS LIMITED — Interim / Quarterly Report 2014

Apr 29, 2014

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30 April 2014

QUARTERLY REPORT MARCH 2014

Highlights

• Continuation of the Cleveland tin-copper PFS to study the optimal project configuration, and capital and operating costs

• Significant upgrade of the Cleveland JORC Mineral Resource Estimate

• Identification of high-grade silver-lead-zinc mineralisation south of the Cleveland tin deposit

• Selwyn Range tenements granted

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) activities this quarter have centred on fast tracking the development of the Cleveland tin and copper project in Tasmania, including the finalisation of the Pre-Feasibility Study (“PFS”).

In the six months since the merger of Elementos and Rockwell Minerals Ltd, the Company has made rapid progress towards its stated objectives and continues to deliver in accordance with the Company’s strategy.

CLEVELAND TIN AND COPPER PROJECT, TASMANIA, AUSTRALIA

Pre-Feasibility Study

During the quarter, the PFS was largely completed, and subsequently released in April (refer ASX release 22 April 2014).

Resource Upgrade

During the quarter, the Company released an upgraded Mineral Resource in accordance with JORC 2012. The Company commissioned Mick McKeown of independent consultants MiningOne to further refine the geological model, with additional drill and assay data, and a more detailed evaluation of the historically mined areas. These improvements to the model resulted in a significant increase in the Mineral Resource tonnage estimate by 22% to 7.44Mt, and a 16% increase in the contained tin metal to 54.3kt.

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A summary of the upgraded Mineral Resource is contained in the table below:

	Cleveland Tin	Cleveland Tin	and Copper	Mineral Resource Estimate#	Mineral Resource Estimate#
Cut-Off Grade % Tin	Category	Tonnes t	Tin Grade % Tin	Copper Grade % **Copper **	Tin_Eq Tin_Eq%	Tin Tonnes	Tin Equivalent Tonnes
0.35%	Indicated	5,002,000	0.69%	0.28%	0.78%	34,500	39,000
0.35%	Inferred	2,442,000	0.56%	0.19%	0.63%	13,900	15,300
	Total	7,444,000	0.65%	0.25%	0.73%	48,400	54,300

Where tin equivalent metal values were made for tin and copper mineralisation, metal prices current at the time of writing were used, that is, US$22,560 per tonne for tin and US$7,155 per tonne for copper.

 The information in this Announcement that relates to the Mineral Resource is based on information extracted from the report entitled “Cleveland JORC Resources Significantly Expanded” created on 5 March 2014 and is available to view on www.elementos.com.au. Elementos confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

GODKIN AND CLEVELAND SOUTH ZONES, TASMANIA, AUSTRALIA

During the quarter, the Company completed an exploration program at Cleveland and the adjacent exploration permits, including a surface mapping and sampling program.

Results of selective sampling included:

Godkin - five selective samples taken from mullock dumps including:

• 553 g/t silver, 7.4% lead and 26.5% zinc; and

• 518 g/t silver, 5.6% lead and 22.5% zinc.

Cleveland South - six selective samples taken from mullock dumps at the South Confidence and Washington Hay historic workings including:

• 4,110 g/t silver, 4.7% lead, 5.28% zinc; and

• 2,570 g/t silver, 6.8% lead and 11.0% zinc.

SELWYN RANGE, QUEENSLAND, AUSTRALIA

During the quarter, the remaining two Exploration Permits (“EPMs”) were granted at the Company’s Selwyn Range project in far-north Queensland. The three granted EPMs 19371, 19375 and 19426, comprise a largely contiguous block totalling 109 square kilometres, located 120 kilometres south of Cloncurry.

The Company entered into negotiations with a potential joint venture during the quarter, with a binding term sheet subsequently signed in April 2014 with Below Ground Technology Pty Ltd.

MILLENIUM, QUEENSLAND, AUSTRALIA

During the quarter, five Mining Licenses (“MLs”) ML 2512, 2761, 2762, 7506 and 7507 totalling 134 hectares were transferred from Forte Energy NL to the Company. These MLs form part of the earn-in joint venture agreement with Chinalco Yunnan Copper Resources Ltd (ASX: CYU).

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SANTO DOMINGO, ARGENTINA

During the quarter, there were no exploration activities at Santo Domingo. A number of site visits were attended by Companies interested in forming a joint venture to explore and develop the project. The negotiations are on-going.

MANANTIALES, ARGENTINA

During the quarter, the Company elected not to continue making payments under its option-to-purchase agreement, and it was unable to restructure a new agreement with the vendors on satisfactory terms.

TAMAYA, CHILE

During the quarter, there were no exploration activities at Tamaya.

DIRECTOR ROLE CHANGE

During the quarter, Mr Corey Nolan’s role with the Company changed from Executive Director to Non-Executive Director. Mr Nolan will continue to support the Managing Director to monetise the non-tin assets within Australia and South America. Mr Nolan’s continuation as a Non-Executive Director improves the corporate governance practices of the Company, whilst also retaining the benefit of Mr Nolan’s familiarity with the company’s activities and its shareholders.

CASH RESOURCES

At the end of the period, the Company had cash resources of $0.5 million.

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

quarter:
Tenement Name	Tenement Number	Area (Hectares)	Elementos Interest	Location of Tenements
Santo Domingo Millenium Selwyn Range Cleveland	1124-493-G-07 1124-094-G-09 1124-133-G-09 1124-454-G-09 1124-643-G-10 1124-368-G-06 1124-385-G-06 1124-494-G-07 1124-495-G-07 1124-496-G-07 1124-497-G-07 1124-498-G-07 1124-499-G-07 1124-500-G-07 1124-265-G-08 1124-336-G-08 1124-633-G-10 1124-022-G-11 1124-131-O-09 1124-132-O-09 ML 2512 ML 2761 ML 2762 ML 7506 ML 7507 EPM 18402 EPM 18773 EPM 18793 EPM 18982 EPM 19014 EPM 19036 EPM 19371 EPM 19375 EPM 19426 EL7/2006 EL9/2006 EL15/2011	497 511 1458 500 1940 2158 4995 900 1338 900 900 900 900 900 2616 368 1179 1500 4953 9203 4 20 16 50 44 5146 3859 2251 4184 6111 3216 3860 6400 643 1798 4195 3358	Nil - earning Nil - earning Nil - earning Nil - earning Nil - earning Nil – earning Nil – earning 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 – earning(i) Nil – earning(i) Nil – earning(i) 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 50% (earning 100%) 100% 100%	Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Queensland Queensland Queensland Queensland Queensland Queensland Queensland Queensland Queensland Queensland Queensland Queensland Queensland Queensland Tasmania Tasmania Tasmania

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

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Tenement Name	Tenement Number	Area (Hectares)	Elementos Interest	Location of Tenements
Tamaya	Adrianita 1 a 35 Aurora 1 a 20 Camposanto 8 a 17 Cerrillos Primera Chepillo 1 a 4 Guias Altas La Borracho 1 a 3 La Lusitania 1 a 5 La Sol 1 a 4 Lecaros 1 a 120 Margarita 1 a 7 Olga 1 a 20 San Cristobal 1 a 30 Suerte 10-15, 25-30 Tacora 1 a 65 Tuhuimco 1 al 40 Talabre 1 al 25 Talcan 1 al 18 Talpuna 1 al 34 Tamarugo 1 al 44 Tamaya 1 a 120 Tanume 1 al 28 Tatio 1 al 19 Temo 1 al 2 Ticalhue 1 al 17 Tignamar 1 al 26 Tipay 1 al 14 Tocomar 1 al 20 Toconce 1 al 18 Tolas 1 al 14 Tolten 1 al 17 Torca 1 al 5 Cerrillos 1 Cerrillos 2 Cerrillos 3 Cerrillos 4 Cerrillos 5 Cerrillos 6	175 100 41 5 19 4 15 25 13 600 35 100 150 50 606 400 250 168 284 409 600 244 176 9 102 254 125 200 180 140 149 42 300 200 100 300 300 300	Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning Nil – earning	Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile

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During the quarter, the following tenements were acquired:

Tenement Name	Tenement Number	Area (Hectares)	Elementos Interest	Location of Tenements
Millenium Millenium Millenium Millenium Millenium Selwyn Range Selwyn Range	ML 2512 ML 2761 ML 2762 ML 7506 ML 7507 EPM 19375 EPM 19426	4 20 16 50 44 6400 640	100% 100% 100% 100% 100% 100% 100%	Queensland Queensland Queensland Queensland Queensland Queensland Queensland

There were no tenements disposed of during the quarter and no changes in the beneficial interests held by the company.

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