ELEMENTOS LIMITED — Interim / Quarterly Report 2020

Jan 28, 2021

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Elementos Limited ABN Quarter ended (“current quarter”) 49 138 468 756 31 December 2020

Consolidated statement of cash flows	Current quarter$A’000	Year to date(6 months)$A’000
1.Cash flows from operating activities1.1Receipts from customers1.2Payments for(a) exploration & evaluation (if expensed)(b) development(c) production(d) staff costs(e) administration and corporate costs1.3Dividends received (see note 3)1.4Interest received1.5Interest and other costs of finance paid1.6Income taxes paid1.7Government grants and tax incentives(COVID assistance)1.8Other1.9Net cash from / (used in) operatingactivities	----(139)(236)-2--20-	----(306)(433)-2--58-
	(353)	(679)
2.Cash flows from investing activities2.1Payments to acquire:(a) entities(b) tenements(c) property, plant and equipment(d) exploration & evaluation (if capitalised)(e) investments(f)other non-current assets	---(350)--	---(556)--

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter$A’000	Year to date(6 months)$A’000
2.2Proceeds from the disposal of:(a) entities(b) tenements(c) property, plant and equipment(d) investments(e) other non-current assets2.3Cash flows from loans to other entities2.4Dividends received (see note 3)2.5Other2.6Net cash from / (used in) investingactivities	--------	--------
	(350)	(556)
3.Cash flows from financing activities3.1Proceeds from issues of equity securities(excluding convertible debt securities)3.2Proceeds from issue of convertible debtsecurities3.3Proceeds from exercise of options3.4Transaction costs related to issues of equitysecurities or convertible debt securities3.5Proceeds from borrowings3.6Repayment of borrowings3.7Transaction costs related to loans andborrowings3.8Dividends paid3.9Other (provide details if material)3.10Net cash from / (used in) financingactivities	90--(17)-----	3,325--(184)-----
	73	3,141
4.Net increase / (decrease) in cash andcash equivalents for the period
4.1Cash and cash equivalents at beginning ofperiod4.2Net cash from / (used in) operatingactivities (item 1.9 above)4.3Net cash from / (used in) investing activities(item 2.6 above)4.4Net cash from / (used in) financing activities(item 3.10 above)	2,734(353)(350)73	199(679)(556)3,141

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(6 months)
			$A’000
4.5	Effect of movement in exchange rates on	(11)	(12)
	cash held
4.6	Cash and cash equivalents at end of	2,093	2,093
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	2,083	2,724
5.2	Call deposits	10	10
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	2,093	2,734
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their		Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their		37
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their
	associates included in item 2
*6.1	comprises directors’ fees, executive director fees & superannuation.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.Financing facilitiesNote: the term “facility’ includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.Total facilityamount at quarterend$A’000Amount drawn atquarter end$A’0007.1Loan facilities2,0007507.2Credit standby arrangements--7.3Other (please specify)--7.4Total financing facilities2,0007507.5Unused financing facilities available at quarter end1,2507.6Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well.	Total facilityamount at quarterend$A’000	Amount drawn atquarter end$A’000
	2,000	750
	-	-
	-	-
	2,000	750
During April 2019 Elementos entered into a Loan Facility for $2m with the Company’s Non-Executive Chairman, Mr Andrew Greig. The loan is unsecured, has an interest rate of 6% and aterm of 2 years. For further details see ASX Announcement released 17 April 2019.On 6 August 2020, Elementos entered into an agreement with Mr Greig to convert $500,000 of theoutstanding loan balance to shares and options on the same terms of the recent Placement andShare Purchase Plan, the conversion of the loan amount was approved by shareholders at theAGM held on 16 November 2020.

8.Estimated cash available for future operating activities	8.Estimated cash available for future operating activities	8.Estimated cash available for future operating activities	8.Estimated cash available for future operating activities	8.Estimated cash available for future operating activities	8.Estimated cash available for future operating activities	8.Estimated cash available for future operating activities	8.Estimated cash available for future operating activities	8.Estimated cash available for future operating activities	$A’000	$A’000	$A’000
8.1Net cash from / (used in) operating activities (Item 1.9)8.2Capitalised exploration & evaluation (Item 2.1(d))8.3Total relevant outgoings (Item 8.1 + Item 8.2)8.4Cash and cash equivalents at quarter end (Item 4.6)8.5Unused finance facilities available at quarter end (Item 7.5)8.6Total available funding (Item 8.4 + Item 8.5)8.7Estimated quarters of funding available (Item 8.6 divided byItem 8.3)									(353)(350)(703)2,0931,2503,343
	2Capitalised e3Total relevan			xploration & evaluation (Item 2.1(d))			.		(3
				t outgoings (	Item 8.1 + Item 8	.2)				(7
	4Cash and ca			sh equivalent	s at quarter end	(Item 4.6	)			2,0
	5Unused finan			ce facilities a	vailable at quart	er end (It	em 7.5)			1,2
	6Total availab			le funding (It	em 8.4 + Item 8.	5)				3,3
	7Estimated q			uarters of fu	nding available	(Item 8.	6 divided by
											4.7
	Item 8.3)
8.	If I 87 i			l h 2	l	id	h	flli			g
	tem . s1.Doecash			ess tan qs the entity exflows for the	uarters, pease ppect that it will ctime being and	rove aontinue tif not wh	swers to teo have the cuy not?	oowng questrrent level of ne		ons:t operatin
					,	,
		Answer:
	2.Hascash
			2.Hascash	the entity takto fund its o	en any steps, orerations and, if	does it prso, what	opose to takare those ste	e any steps, to rps and how likel		aise furthy does it

Answer:

2.	Has the entity taken any steps, or does it propose to take any steps, to raise further
	cash to fund its operations and, if so, what are those steps and how likely does it
	believe that they will be successful?

Answer:

1. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer:

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

Date: 29 January 2021

Authorised by: The Board

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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