ELEMENTOS LIMITED — Interim / Quarterly Report 2016

Apr 28, 2016

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29 April 2016

MARCH QUARTERLY REPORT

HIGHLIGHTS:

• Progression of Mining Lease and Environmental approval work.

• Engagement with strategic partners. Discussions ongoing.

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) is pleased to report on activities during the March quarter, including continuation of the Cleveland approvals process and engagement with strategic partners to meet its primary objective of becoming the next Australian tin producer.

CLEVELAND PROJECT UPDATE

A p p r o v a l s a n d a p p l i c a t i o n s

During the quarter, the Company’s primary focus was the continuation of the Environmental permitting process. The Company believes there is strong potential to achieve its Environmental approvals given the significant government and stakeholder support to rehabilitate the historical mining legacies at the site.

The Company is advancing its Mining Lease Application process through ongoing consultation with various government departments. The Tasmanian government is very supportive and working with the Company to progress the Cleveland Project towards development.

C o s t r e d u c t i o n s i n i t i a t i v e s

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The Company has been working with a number of consulting groups examining opportunities for capital and operating cost reductions for the Cleveland tailings reprocessing project. A tailings storage facility relocation study has highlighted a number of prospective areas that could lead to a considerable capital reduction across all three stages of the development plan. The study is now being finalised to quantify the savings and is due for completion in May 2016.

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CORPORATE

The Company continued its engagement with potential strategic partners to assist with developing the Cleveland project. The Company is encouraged by the interest in the project which coincides with a strong quarterly recovery in the LME tin price. During the quarter, the LME tin price increased ~25% to $22,730 tonne.

Details of the Company’s financial activities during the quarter are set out in the Appendix 5B cash flow report.

C a p i t a l s t r u c t u r e

At the end of the quarter, there were 767,479,642 fully paid ordinary shares and 38.85 million unlisted options on issue.

EXPLORATION

C l e v e l a n d M i n e , T a s m a n i a , A u s t r a l i a

No exploration activities were undertaken at Cleveland during the quarter whilst the Company focused on the approvals process and negotiating with potential strategic investors.

S e l w y n R a n g e P r o j e c t , Q u e e n s l a n d , A u s t r a l i a

During the quarter, the Company’s joint venture partner, Jason Resources, withdrew from the joint venture agreement. The Company is considering its options in regard to the project.

M i l l e n n i u m P r o j e c t , Q u e e n s l a n d , A u s t r a l i a

There were no exploration activities at the Millennium joint venture during the quarter. In agreement with it’s joint venture partner, Elementos relinquished its Exploration Permits in order to reduce holding costs. The Millennium Mining Leases were retained.

Relinquished Tenements	Tenement Number Area (Hectares) Elementos Interest Location of Tenements
Millenium	EPM 18402 2488 100% Queensland
	EPM 18773 1866 100% Queensland
	EPM 18793 1244 100% Queensland
	EPM 18982 1244 100% Queensland
	EPM 19014 1555 100% Queensland
	EPM 19036 933 100% Queensland

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E x p l o r a t i o n T e n e m e n t s

Tenement Name	Tenement Number	Area (Hectares)	Elementos Interest	Location of Tenements
Cleveland	EL7/2005	5993	100%	Tasmania
Millenium	ML 2512	4	100%	Queensland
	ML 2761	20	100%	Queensland
	ML 2762	16	100%	Queensland
	ML 7506	50	100%	Queensland
	ML 7507	45	100%	Queensland
Selwyn Range	EPM 19371	3732	100%	Queensland
	EPM 19375	6220	100%	Queensland
	EPM 19426	622	100%	Queensland

No new tenements were acquired during the quarter.

For more information, please contact:

Tim McManus

Chief Executive Officer

Phone: +61 7 3221 7770 Email: admin@elementos.com Please visit us at: www.elementos.com.au

C A U T I O N A R Y S T A T E M E N T S

F o r w a r d - l o o k i n g s t a t e m e n t s

This document may contain certain forward-looking statements. Such statements are only predictions, based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond the company’s control. Actual events or results may differ materially from the events or results expected or implied in any forward-looking statement.

The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward-looking statements will be or are likely to be fulfilled. Elementos undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this document (subject to securities exchange disclosure requirements).

The information in this document does not take into account the objectives, financial situation or particular needs of any person or organisation. Nothing contained in this document constitutes investment, legal, tax or other advice.

M i n e r a l R e s o u r c e s a n d O r e R e s e r v e s

Elementos confirms that Mineral Resource and Ore Reserve estimates used in this document were estimated, reported and reviewed in accordance with the guidelines of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) 2012 edition.

Elementos confirms that it is not aware of any new information or data that materially affects the Mineral Resource or Ore Reserve information included in the “Cleveland Tailings Resource Upgrade” announced to the ASX on 17 June 2014, or the “Cleveland Open Pit - High-Grade Mineral Resource Defined” announced on 3 March 2015 and the “Cleveland Tailings Ore Reserve” released on the 3 August 2015.

The Company also confirms that all material assumptions and technical parameters underpinning the estimates in the Cleveland Mineral Resources and Reserves continue to apply and have not materially changed. Elementos also confirms the form and context in which the Competent Person’s findings are presented have not been materially modified from the date of announcement.

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MINERAL RESOURCES AND ORE RESERVES

Tailings Mineral Resource (at 0% Sn cut-off) 1	Tailings Mineral Resource (at 0% Sn cut-off) 1	Tailings Mineral Resource (at 0% Sn cut-off) 1
Category	Tonnage	Sn Grade	Cu Grade
Indicated	3.8 Mt	0.30%	0.13%

Table subject to rounding errors; Sn = tin, Cu = copper

Tailings Ore Reserve (at 0% Sn cut-off)2	Tailings Ore Reserve (at 0% Sn cut-off)2	Tailings Ore Reserve (at 0% Sn cut-off)2	Tailings Ore Reserve (at 0% Sn cut-off)2	Tailings Ore Reserve (at 0% Sn cut-off)2	Tailings Ore Reserve (at 0% Sn cut-off)2
Category	Tonnage	Sn Grade	Cu Grade	Contained Sn	Contained Cu
Probable	3.7 Mt	0.29%	0.13%	11 Kt	5 Kt

Table subject to rounding errors; Sn = tin, Cu = copper

Open Pit Tin-Copper Mineral Resource (at 0.35% Sn cut-off)3	Open Pit Tin-Copper Mineral Resource (at 0.35% Sn cut-off)3	Open Pit Tin-Copper Mineral Resource (at 0.35% Sn cut-off)3
Category	Tonnage	Sn Grade	Cu Grade
Indicated	0.8 Mt	0.81%	0.27
Inferred	0.01 Mt	0.99%	0.34
Table subject to rounding errors; Sn = tin, Cu = copper

Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)4	Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)4	Underground Tin-Copper Mineral Resource (at 0.35% Sn cut-off)4
Category	Tonnage	Sn Grade	Cu Grade
Indicated	4.2 Mt	0.67%	0.28%
Inferred	2.4 Mt	0.56%	0.19%
Table subject to rounding errors; Sn = tin, Cu = copper

Underground Tungsten Mineral Resource (at	Underground Tungsten Mineral Resource (at	0.20% WO3cut-off)5
Category	Tonnage	WO3Grade
Inferred	4 Mt	0.30%

Table subject to rounding errors; WO3 = tungsten oxide

1 Announced per the JORC Code 2012 on 17 June 2014 “Cleveland Tailings Resource Upgrade”

2 Announced per the JORC Code 2012 on 3 August 2015 “Cleveland Tailings Ore Reserve”

3 Announced per the JORC Code 2012 on 3 March 2015 “Cleveland Open Pit - High-Grade Mineral Resource Defined”

4 Announced per the JORC Code 2012 on 3 March 2015 “Cleveland Open Pit - High-Grade Mineral Resource Defined”

5 This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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