ELEMENTOS LIMITED — Interim / Quarterly Report 2014

Jan 30, 2014

Appendix 5B Mining exploration entity quarterly report

4Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/2010.

Name of entity

ELEMENTOS LIMITED

	ABN 49 138 468 756 Consolidated statement of cash flows		Quarter ended (“current quarter”) 31 DECEMBER 2013	Quarter ended (“current quarter”) 31 DECEMBER 2013
			31 DECEMBER 2013
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (return of bank guarantee) Net Operating Cash Flows		Current quarter $A’000		Year to date $A’000
		(359) (390) 4		(449) (674) 6
		(745)		(1,117)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (costs associated with merger) Other (cash in from merger) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		(228) 257		(351) 257
		29		(94)
		(716)		(1,211)

• See chapter 19 for defined terms.

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1.13 Total operating and investing cash flows (brought forward)	(716)	(1,211)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other: Receipt of funds subject to shareholder approval Cost of share issues Net financing cash flows	1,379 150 (20)	1,717 150 (22)
	1,509	1,845
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	793 212 (1)	634 371 (1)
	1,004	1,004

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		109
		Nil
1.25	Explanation necessaryfor an understandingof the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	400
	Nil
	Nil
	350
Total	750

Additional funds are becoming available during the quarter, as part of the private placement subject to shareholder approval at the Extraordinary General Meeting scheduled for 20 February 2014.

Reconciliation of cash

approval at the Extraordinary General Meeting scheduled for 2 Reconciliation of cash	0 February 2014.
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	811	169
	193	43
Total: cash at end of quarter(item 1.22)	1,004	212

Changes in interests in mining tenements

Tenement reference	Nature of interest (note (2)	Interest at beginning of quarter	Interest at end of quarter
EPM 19371 EL7/2005 EL9/2006 EL15/2011	Exploration Permit Exploration Licence Exploration Licence Exploration Licence	- - - -	100% 50% 100% 100%

• See chapter 19 for defined terms.

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Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference+securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs,redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	535,701,277	535,701,277
	274,645,024 632,507 68,950,000 2,835,000	274,645,024 632,507 68,950,000 2,835,000	2.00 cents 1.91 cents 2.00 cents 2.00 cents	2.00 cents 1.91 cents 2.00 cents 2.00 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted
7.7 Options (description and conversion factor) Listed Options Unlisted Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	32,952,052 4,500,000 550,000 500,000 1,000,000 200,000 2,350,000	32,952,052 Nil Nil Nil Nil Nil Nil	Exercise price 6.0 cents 22.6 cents 22.6 cents 22.6 cents 32.6 cents 6.0 cents 6.0 cents	Expiry date 9 April 2014 23 October 2015 7 September 2015 30 November 2015 18 January 2017 3 December 2016 20 January 2017
	1,500,000 100,000	Nil Nil	30.0 cents 22.6 cents	23 December 2013 7 September 2015
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

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Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 31 January 2014 (Director/Company secretary)

Print name:

Linda Scott

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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