ELEMENTOS LIMITED — Interim / Quarterly Report 2014

Jan 30, 2014

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31 JANUARY 2013

QUARTERLY REPORT DECEMBER 2013

Highlights

• Commencement of a Cleveland tin-copper pre-feasibility to study the optimal project configuration, and capital and operating costs

• Significant tungsten Conceptual Exploration Target defined at the Cleveland project

• Chinalco Yunnan Copper completed an initial drilling program at the Millenium joint venture and reported very encouraging copper and cobalt results

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) activities this quarter have been principally focused on technical studies relating to the Cleveland tin and tungsten project in Tasmania.

CLEVELAND TIN PROJECT, TASMANIA

During the quarter, a number of studies were underway including the commencement of the Cleveland tin-copper Pre-Feasibility Study (“PFS”) and the on-going environmental approval process for the Cleveland tailings project.

Pre-Feasibility Study

In November, the Company commenced a PFS to assess the near term development potential of the substantial, relatively shallow, in-ground tin-copper resources. The tin-copper resource is well-defined through more than 130,000 metres of drilling, and has proven mining and metallurgy through some 20 years of historical operations.

The PFS will also examine the feasibility of an integrated development strategy, firstly processing the part of tailings resource whilst, re-establishing the mine and additional infrastructure required to process the hard rock tin-copper resources.

The PFS will be prepared by MiningOne and pitt&sherry who together have significant experience and expertise in all aspects of tin resource definition, mining, processing and local infrastructure. The PFS will focus on the fundamental variables that will determine the technical and economic viability of developing a standalone underground tin mine and processing facility, or an integrated facility at Cleveland.

The results of the PFS are scheduled for the end of the second quarter 2014.

Tailings dam study

A fifteen-hole sonic drilling program was recently completed on the tailings dam for geotechnical, environmental, metallurgical and resource investigation, along with additional geotechnical and hydrogeology work on site. The data will be used for permitting purposes, resource definition and the 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 approaching completion. Tasmanian based pitt&sherry have been appointed principal environmental consultants to assist in the submission and associated work.

CLEVELAND TUNGSTEN, TASMANIA

During the quarter, the Company outlined a Conceptual Exploration Target for Foley’s tungsten zone at the Cleveland project.

Independent consultants, MiningOne, have reported an Exploration Target for Foley’s zone of between 72,000 and 120,000 tonnes of contained WO3, below 850m RL. The Exploration Target, defined from 26 diamond drill holes totaling 6,796 metres, is tabulated below. The potential quantity and grade of the exploration target is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Foley Zone Tungsten Exploration	Target Below 850m RL	Target Below 850m RL
Cut-off grade % WO3	0.2%	0.0%
Tonnes	24 Mt	60 Mt
Grade % WO3	0.3%	0.2%
Contained metal: tonnes of WO3	72,000	120,000
Contained metal: Million mtu of WO3	7.2	12.0

The Exploration Target is in addition to the previously reported Inferred Mineral Resource for Foley’s zone above 850m RL which is more intensively drilled. The Inferred Mineral Resource above 850m RL, estimated independently by Mining One at a 0.2% WO3 cut-off grade, was 3.89Mt @ 0.30% WO3 for total contained metal of 13,000 tonnes WO3.

Foley’s tungsten zone represents an exciting new opportunity for the Company, and the potential of the tungsten deposit has not previously been recognised. Tungsten is a high-value metal, with supplies of tungsten outside of China, which controls approximately 84% of the market, difficult to secure. The Company will now commence a work program to study the development potential of the project.

Previous Disclosure 2012 JORC Code - This information on the Cleveland tungsten project is extracted from the reported titled “Cleveland Project Tungsten Potential” created on 29 October 2013 and is available to view on the Elementos website (www.elementos.com.au). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changes. The Company 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.

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MILLENIUM, AUSTRALIA

During the quarter, Chinalco Yunnan Copper Resources completed an initial copper-gold drilling program at Millenium. Please see report titled “Completion of Initial Copper/Gold Drilling Program at Millenium – Large Mineral System Identified” created on 4 December 2013 and available at www.cycal.com.au.

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, there were no exploration activities at Manantiales.

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 $1 million. During the quarter, the Company raised $1.379 million through a number of private placements to sophisticated investors. An additional private placement of $0.15 million was received in advance of obtaining shareholder approval at an Extraordinary General Meeting, to be held on 20 February 2013.

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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Elementos Ltd 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 Manantiales Millenium Selwyn South 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-09 520-120-M-97 520-121-M-97 520-122-M-97 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 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 3126 3069 3062 4 20 16 50 45 5146 3859 2251 4184 6111 3216 3860 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) Nil - earning Nil - earning Nil - earning Nil - earning Nil - earning Nil - earning Nil - earning Nil - earning 100% 100% 100% 100% 100% 100% Nil – earning Nil – earning(i) 50% 100% 100%	Argentina Argentina Argentina 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 Tasmania Tasmania Tasmania

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

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Tenement Name	Tenement Number	Tenement Number	Tenement Number	Area (Hectares)	Area (Hectares)	Elementos Interest	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
During the quarter, the following tenements were acquired:
Tenement Name		Tenement Number	Area (Hectares)		Elementos Interest			Location of Tenements
Selwyn South Cleveland Cleveland Cleveland		EPM 19371 EL7/2006 EL9/2006 EL15/2011	3860 1798 4195 3358		Nil – earning 50% 100% 100%		Queensland Tasmania Tasmania Tasmania

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

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