ELEMENTOS LIMITED — Interim / Quarterly Report 2023

Apr 27, 2023

For the quarter ending 31 March 2023

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Quarterly Report

For the quarter ending 31 March 2023

elementos.com

Elementos is an emerging tin producer focused on the responsible development of two high-grade tin projects in stable and mature mining jurisdictions.

The company is focussed on developing the Oropesa Tin Project in Andalucía, Spain. Currently undertaking a DFS to study the techno-economic parameters and financial returns to support financing and offtake with the aim of constructing the project to deliver first concentrate in 2025.

Quarter Highlights

• Major progress towards completion of Oropesa Definitive Feasibility Study (DFS)

• Oropesa Tin Project 2023 Mineral Resource Update

• Infill drilling finalised with intersections of additional tin at Oropesa Tin Project

• Significant further mineralisation outside Oropesa Resource

• Fluorite (Critical Mineral) Confirmed at the Cleveland Tin Project

• Cash Position at the end of the Quarter was $2.7m

Post Quarter

• Completion of $3.0m placement, majority of funds assigned to the continued development of the Oropesa Tin Project.

• At the end of April, the modelled cash position, including Director subscriptions (subject the EGM approval) puts the cash position at ~$4.9m.

For the quarter ending 31 March 2023

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Oropesa Tin Project

Andalucía, Spain

Located in southern Spain, the Oropesa Tin Project is one of the world’s few undeveloped, open-cut mineable tin deposits, with access to world-class infrastructure. Elementos is developing Oropesa as Europe’s next significant tin mine.

After the completion of the Quarter Elementos completed a $3.0 million Placement to facilitate the completion of key milestones related to its Oropesa Tin Project, including the completion of its Definitive Feasibility Study (DFS)[1] , and significant progress to approvals, finance and offtake.

Highlights

During the quarter the company issued a Mineral Resource Update for its Oropesa Project. The MRE update has achieved its goal of significantly upgrading the Inferred and Indicated Mineral Resource categories, increasing the geological confidence of the deposit. The MRE will be further assessed for conversion to JORC Ore Reserves, via techno-economic modification factors, during Oropesa’s Definitive Feasibility Study (DFS) which is currently underway and schedule for delivery during Q2 CY2023.

Increase in Geological Confidence

• 100% of 2023 Mineral Resource Estimate (MRE) tonnes located within the 2022 Optimisation Study[1] US$30k/t Pit Shell are classified as Measured or Indicated (no Inferred Resources within the US$30k/t Pit Shell).

• 95% of 2023 MRE is classified either Measured or Indicated Resources, totalling 18.5Mt (+11%) at 0.39% Sn.

• 38% of 2023 MRE is classified as Measured Resources, increasing by 3.1Mt (+73%) to 7.4Mt at 0.36% Sn.

• Elementos will assess the 2023 MRE, applying applicable Modifying Factors, for conversion to JORC Ore Reserves as part of its Definitive Feasibility Study (DFS) due for delivery in Q2 CY23.

Increased Tonnage

• Total 2023 MRE increases by 0.7Mt (+4%) to 19.6Mt at 0.39% Sn.

• 2023 MRE Measured or Indicated Resource contained tin increases to 71.8kt (+12%)

The Oropesa Tin Project MRE update was completed by Measured Group, following completion of an 11-hole in-fill drilling program and supersedes the Mineral Resource Estimate previously released in November 2021².

The Mineral Resource Estimate is summarised in Table 1, and illustrated in Figure 3 and Figure 4 to assist with further understanding. Full details and parameters used can be found in the Mineral Resource Statement and

1 ELT ASX Release 6 April, Elementos completes placement for Oropesa Tin Project DFS

For the quarter ending 31 March 2023

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Table 1. 2023 Oropesa Mineral Resource Estimate at a 0.15% Sn cut-off

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Figure 1 . Oropesa Resource Model plan coloured by 2023 Resource Classification

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Figure 2. Oropesa 2023 Mineral Resource Model section with topography & 2022 Optimisation Study pit shell

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Figure 5. Oropesa Tin Project Mineral Resource Estimate Summary, Feb 2023 vs. Nov 2021

Mineral Resource Estimate Comparison (Feb 2023 vs Nov 2021)

For the quarter ending 31 March 2023

Definitive Feasibility Study (DFS)

The company continues to rapidly mature the Oropesa Tin Project DFS, via its subsidiary Minas de Estaño de España, and with the support of its Integrated Owners Team (IoT).

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Figure 4. Location of Oropesa Tin Project, Spain.

The Integrated Owners Team continued to progress the DFS via regular workshops and meetings in Spain and Australia during the quarter. The team has continued to progress significantly on many fronts including the following summaries:

1. Geology

• Mineral Resource Drilling & Updated Mineral Resource Estimate

• Mineral Resource Update completed during the quarter – see Geological summary.

• Geological Database

• The company continues to convert it’s excel based database into a propriety database (Micromine Geobank). This includes a London based consultant, ALS laboratories and a validation exercise which is designed to confirm the Quality of the data and link to it’s primary source. This process has progressed smoothly and is in it’s final stages.

• Zinc Assays

• To further study the potential of zinc to be added to the Oropesa Resource and potentially add a byproduct for the project the company continues to compile zinc data.

• Whilst many samples historically had already been assayed for zinc, some of the sampling had only been completed for tin. The company has acquired as much data was available from laboratory datasets but has also now also supplied ALS Seville with 3,188 pulps for analysis for zinc.

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  - These investigations will allow for zinc data to be further assessed and be modelled throughout the Oropesa Mineral Resource to support further studies of the zinc concentrate business case.

1. Mine Planning

2. During the quarter the Company significantly progressed detailed mine planning activities:

   • Detailed pit design and staging was completed.

   • Design of the topsoil, in-pit and out of pit dumps was completed.

   • Waste haulage to the tailings dam construction was completed.

   • Blasting and grade control drilling activities were designed and scheduled.

   • Ore and Waste schedules were completed, with only minor refinement required to complete the final DFS schedule.

   • Tender documentation set developed and sent to six pre-selected contract miners, set included:

     • Request for Tender documents

     • Scope of Works (inclusive of Division of Responsibility Matrix)

     • Mining Schedule (ore, waste and equipment)

     • Drawing set (mining and sitewide)

     • Truck Haulage paths

     • 6-monthly topography

     • Animation.

o Tender responses scheduled for receipt during the first week of May

• The ROM pad has been re-positioned at the top of the pit master ramp / bottom of the waste dump, ~750m closer to the pit which materially reduces ore haulage distance (~1.5km round trip) and thus reduces truck turn-around time, truck numbers, diesel burn, CO2 emissions and unit operating cost. The 750m reduction will now be serviced by a conveyor between the primary and secondary crushing, being delivered under DFS Process Plant and NPI scope.

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Figure 5. 2023 DFS detailed Pit scheduling work (looking north) with the key infrastructure locations shown, including master ramp, topsoil stockpile, in-pit dump, ex-pit dump, tailings dam, rom pad, processing pad and other supporting infrastructure.

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3. Mineral Process Plant

• Mineral Process Plant design matured significantly throughout the quarter working with our Early Contractor Involvement (ECI) partner Duro Felguera (DF), a highly experienced Spanish EPC contractor. Highlights included:

• Design development of materials handling facilities and the overall layout further optimised in conjunction with major earthworks pads.

• 3D Modelling of the Plant has also been significantly advanced (see Figure-6) showing the main wet plant facilities.

• Process Control Philosophy has been developed and drafting of Process and Instrumentation Diagrams (P&IDs) is in progress.

• RFQs have been issued for civil and concrete works, structural steel fabrication and installation, and mechanical equipment installation.

• Planning for execution of the works, including temporary construction facilities and schedule development has been initiated.

• DF have provided Management Plans for the contract, including Project Execution Plan, HSE Management Plan, Environmental Management Plan, QA/QC Management Plan and Commissioning Procedure.

• Review of electrical loads and distribution arrangements, including substations

• EPC Contract reviews continue to be negotiated towards an executable EPC contract.

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Figure 6. 2023 Oropesa DFS Mineral Process Plant & NPI 3D model (still under development)

1. Tailings Dam, Waste Dump Facilities & Water Dam

2. GEM continued some follow-up on-ground geotechnical work in key infrastructure locations, followed by lab work and follow-up factual and interpretative reporting. This was due to the slight adjustment of facilities to avoid a zone within the tailings dam area which had previously been interpreted as a possible zone for subsurface faulting. This has resulted in the need to slightly re-position the tailings dam during the previous period, which resulted in some additional on-ground work being required.

3. The waste dump has also been re-designed to not only synch with the updated tailings dam location but the updated mine plan and a desire to reduce waste rock haul out of the pit.

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• The water dams have also been investigated and designed to minimise cut-fill and work on a localised balance to support delivery during an early works program.

• Non-Process Infrastructure

Power Supply

• Spanish power supplier ENDESA confirms availability of sub-station connection point and power supply to the Oropesa project, subject to conditions and ongoing negotiations which are commercial in nature.

• Further high voltage alignment work is underway to confirm final route to site

• Study completed on alternative forms of power generation (waste energy recovery, renewable alternatives), but base case for DFS is confirmed to remain a power grid connection.

Tailings Storage Facility (TSF)

• Tailings Dam Design completed to a level to support market pricing was completed.

• Further site investigations and laboratory works were completed in both the locations of the Tailings dam wall and the source material locations to further refine material suitability.

• Final Tailings dam location continues to be developed for regulatory submissions.

Water Management / Water Supply

  - Water infrastructure design developed for DFS, including channels, drains and pumps to harvest water during low rainfall events and divert during high rainfall events.

• Site Access Roads

• Site Access design finalised for DFS and local approvals.

• Local farmers track designed to retain access around project limits

Sitewide Layout / Civils

  - Completions of sitewide pads, tracks and infrastructure support areas for DFS and disturbance calcs

• Civil Works RFQ

  • A Civil works Request for Quotation (RFQ) was issued with 5 separable portions to civil and mining contractors for the items detailed above, including:

    • SP1 – Tailings Storage Facility (TSF)

    • SP2 – Water Dams

    • SP3 – Access Road and Public Track

    • SP4 – On-Site Civil Works

    • SP5 – Water Management Infrastructure

  • The tender package is scheduled for a return and assessment during May and has had a good response from established Spanish contractors.

• DFS Metallurgical test work

• The DFS Pilot-scale metallurgical test work was completed in the September quarter and reported during the December Quarter

• Separate to the DFS Metallurgical test work on tin – the company continues to assess (at Wardell Armstrong labs) the possibility of producing a by-produce zinc concentrate from the ore feed. The zinc concentrate byproduct business case will not contribute to the Oropesa DFS but will continue to be studied as a value-

For the quarter ending 31 March 2023

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engineering opportunity. The design of the process plant and key infrastructure is being future proofed for the addition of zinc circuits if the decision to include is reached.

Oropesa Tin Project Permit Approvals Update

The company remains in regular contact with the key government departments (Environment, Mining and Water Authorities) and continues to work closely with the Andalucian Government’s Project Accelerator Unit (PAU) which is providing substantial and effective levels of support. The company is awaiting progression into the Public Exhibition phase of the environmental approvals process. The Company aims to re-confirm its approvals schedule and development pathway to first concentrate on release of the Definitive Feasibility Study (DFS).

Environmental & Mining Approvals

As previously noted, on the 14th of November 2022 the Environmental Department invited the project to proceed to the Public Exhibition phase of the permit assessment, a key and material step of licensing progression. However, at this point in time the company is still unable to proceed into the Public Exhibition stage due to the Mining Department not yet having completed its review and approval of the project’s rehabilitation plan – a requirement of the Environmental department. The company responded, during the period, to a series of questions from the Mining Department and we continue our view that there does not appear to be any material concerns over the proposed rehabilitation plan. We await formal notification that the rehabilitation plan has been given the green light and the subsequent confirmation that we can move into Public Exhibition by the Environmental Department.

The company has seized this time delay to commission, complete and submit additional supporting reports by additional expert local consultants (Bird species, Oak tree management and Hydrological affection) to further fortify our original environmental submissions and address postulated feedback that may come from community groups and NGOs, based on common feedback from similar projects within Spain and the European Union.

Water Licences

The company continues it’s regular contact with the Water Authorities (Guadalquivir Water Basin). Following the Water Authorities advice the project make an additional application under Article 4.7 (Water Framework Directive) which is a European Directive to prevent the deterioration of water and preserve the good status or potential of all surface and underground waters in terms of chemical, ecological and quantitative matters. This Article 4.7 hydrological and hydrogeological submission was a major focus of the study team during the Quarter and is ready for submission early Q2-2023.

A key part of the Article 4.7 (Water Framework Directive) process is the project being designated as having ‘Superior Public Interest’ from the Andalucian government. This process commenced during the quarter when the project submitted an additional socio-economic report, highlighting the projects economic and social benefits in the local area, benefits to the Andalucian government through to the strategic benefits to Spain (and EU) as the project becomes the major European tin producer.

Oropesa Exploration

Earlier in the quarter the Company reported the final infill drill hole assay results from the company’s 2022 Mineral Resources upgrade 10 hole drilling program (ASX release 1[st] Feb 2023).

Drill hole ADD_28 returned three significant zones of tin mineralisation which exceeded the geological resource estimate cut-off grade of 0.15% Sn. These three zones have a combined downhole length of 99.8m (true width interpreted to be approximately 50m).

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• ADD_28:9.2m @ 0.46% Sn from 120.5m 37.8m @ 0.16% Sn from 165.8m 52.8m @ 0.20% Sn from 206.6m (0.15% Sn cut-off grade)

Drill hole ADD_29 also intersected and confirmed narrow zones of previously modelled tin mineralisation.

• ADD_29:10.0m @ 0.36% Sn from 120.6m 5.1m @ 0.14% Sn from 134.9m 5.35m @ 0.16% Sn from 166.0m

• (0.15% Sn cut-off grade)

Following the completion of the infill drilling program the Company released an updated Mineral Resource Estimate to the ASX on 14[th] February 2023 (detailed summary earlier in this report).

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Figure 7. Section depicting drill hole ADD_28 from the 2022 Infill Drilling.

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Figure 8. Section depicting drill hole ADD_29 from the 2022 Infill Drilling Program.

In late March, the company announced further significant mineralisation intersected outside the Oropesa Tin Project Mineral Resource.[2] Exploration drill hole ADD-04A intersected two separate 10m thick high-grade zones of tin, zinc and copper mineralisation (upper and lower) down hole within semi-massive to massive sulphides, located outside and to the north-west of the current Oropesa Mineral Resource.

The semi-massive to massive sulphides are associated with intense silica and carbonate altered host rocks over an interval that extends for 70m down hole from 90.5m. The principal sulphides consist of pyrite, sphalerite, chalcopyrite, arsenopyrite and galena. Drill hole ADD-04A was planned to investigate potential extensions to mineralisation that were first intersected in geotechnical drill hole SGT-04 (announced on 16 March 2022). There appears to be strong evidence supporting that continuation of mineralisation between these two drillholes.

ADD_04A:22.5m @ 0.11% Sn, 1.43% Zn & 0.77% Cu from 92.6m (0.1% Sn cut-off grade), including 10.0m @ 0.24% Sn, 2.44% Zn & 0.82% Cu from 99.5m

2.2m @ 0.05% Sn & 3.78% Zn & 1.32% Cu from 120.2m

10.0m @ 0.56% Sn, 4.65% Zn & 0.32% Cu from 152.9m (0.1% Sn cut-off grade)

2 ELT ASX Release 29 March 2023, further significant mineralisation intersected outside the Oropesa Tin Project Mineral Resource

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Figure 9 . Cross-section and location of exploration drill hole ADD-04A, at the Oropesa Tin Project, Spain (looking towards the Northwest)

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Figure 10. Section depicting the Oropesa Tin Mineral Resource wireframes (16 in total) with the position of ADD-04A & SGT-04, (looking towards the north-northeast)

For the quarter ending 31 March 2023

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Cleveland Tin Project

Tasmania, Australia

The Cleveland Tin Project is located 80km southwest of Burnie in the mineral-rich northwest region of Tasmania, Australia. It is a historic underground mine site boasting excellent electrical, water and transport infrastructure.

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Figure 11. Location of the Cleveland Tin Project, Tasmania

During this Quarter the company confirmed significant fluorite (CaF2, also known as fluorspar) mineralisation at its Cleveland Tin Project in Tasmania (ASX release 03 March 2023), based on follow-up assays from drill hole C2119 completed in its 2022 diamond drilling program, and mineralogical results during metallurgical test work.[3] Drill hole C2119 intersected significant tungsten and fluorite mineralisation below the current Cleveland tin-copper resource and above the Foley’s Zone tungsten resource.

Fluorite (aka. Fluorspar) is listed as a critical mineral by USA, Canada, Japan, China and the European Union.

The presence of fluorite within Cleveland’s tin-copper resource was first confirmed by an optical mineralogy study completed by ALS laboratories, in conjunction with McKnight Mineralogy, during 2022. The study involved the preparation of polished thin sections and scanning by QXRD analysis. The study found that fluorite comprised 8.7% of the composite sample assessed.

3 ELT ASX Release, 3 March, 2022 Fluorite (Critical Mineral) Confirmed at the Cleveland Tin Project

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Significant fluorite (CaF2) results from this additional assay data are shown below: C2119: 89.85m @ 5.44% CaF2 from 205.3m, including;

14.2m @ 0.36% WO3 @ 10.2% CaF2 from 221.0m – Tungsten Zone (Upper Foleys Zone)

3.85m @ 1.05% Sn, 0.28% Cu & 5.36% CaF2 from 64.25m - Tin-Copper Zone (Battery Lode)

(tungsten is listed as a critical mineral by the Australian Federal Government, as well as the USA, Canada, EU, UK, Japan and China)

Note: The fluorine assay results are reported as fluorite (CaF2 %). Fluorite is present in the drill core as coarse grained minerals (Figure ?). Fluorite is the common product in commercial concentrates containing fluorine.

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Figure 12. Coarse grained fluorite (purple) with wolframite (black) and molybdenite (silver) with quartz ± carbonate ± sericite

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Figure 13. 3D view of the location of drill hole C2119 looking northwest highlighting the position with respect to the Cleveland tin-copper resource and Foleys Zone tungsten resource

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Figure 14. Topographical plan showing the location of drill hole C2119 and the current Cleveland Tin Lodes and Foley’s Zone tungsten resource

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Figure 15. Section A-A’ of C2119 Drilling (with assays plotted) looking northeast

Corporate

Placement (post-quarter)

On 5[th] April 2023 the company announced it had successfully completed a $3.0 million Placement to fund completion of several significant project milestones at its Oropesa Tin Project in Spain. The Placement was supported by existing and new institutional, professional and sophisticated investors.

Fully paid ordinary shares were issued under the Placement at an issue price of $0.18 per Share. Morgans and BW Equities acted as Joint Lead Manager to the Placement, which was strongly supported by Elementos’ Directors.

Elementos’ Directors (or their associated entities) have subscribed for a total of 4,805,556 Shares (approximately $865,000) under the Placement which is subject to shareholder approval at an extraordinary general meeting ( EGM ) of shareholders expected to be held in May 2023.

Tin Pricing

The London Metals Exchange (LME) tin settlement price rose materially during the period before returning to modest levels, finishing up 4% during the quarter to US$26,075/t. These movement were likely the result of the closure and re-opening of Minsur’s San Rafael mine in Peru following social and political unrest. The Shanghai Futures Exchange (SHFE) slightly underperformed the LME tin price, reducing by -2%, but remaining above US$30k/t, finishing at ~US$30,328/t by the end of the period.

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After the end of the quarter the tin price continued it’s high volatility movements throughout April, with the LME closing at US$26,270/t on 26 April, and the SHFE closing at ~US$30,003/t.

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Jan-23 Qtr Tin Price
US$35.3k
US$35.0k
US$32.9k
US$32.1k
US$30.8k US$30.3k US$30.1k
US$30.0k
US$26.1k US$26.3k
US$25.3k
US$25.0k
US$20.0k
Jan-23 Feb-23 Mar-23 Apr-23
LME-Q1 SHFE-Q1 LME Apr-23 SHFE Apr-23
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Figure 16. LME & SHFE Tin Price Movements during Q1-2023 & the post-quarter month of April-2023

ASX Listing Rule 5.3 disclosure

• During the quarter, payments for exploration and evaluation activities covering both the Oropesa and Cleveland projects totalled $920,000.

• Payments of $133,000 were made during the quarter to Related Parties, as reported in clause 6.1 of the ASX Appendix 5B (Cash Flow Report).

Directors Buying

Elementos’ Directors (or their associated entities) subscribed for a total of 4,805,556 Shares (approximately $865,000) under the Placement which will be subject to shareholder approval at an extraordinary general meeting (EGM) of shareholders expected to be held in May 2023. Chairman Andy Greig has subscribed for 4,444,444 shares ($800,000).

Tenements

At 31 March 2023, the company had interests in the following tenements. There were no changes in the company’s interests in tenements during the quarter.

Tenement Name	Tenement Number	Area (km²)	ELT Interest	Tenement Location
Cleveland	EL7/2005	60	100%	Tasmania, Australia
Oropesa#	13.050	13	100%1	Andalusia, Spain

• Elementos currently holds 100% of the project. Noting that SPIB (a local Spanish drilling company) continues to hold rights to convert to a 4% holding of the Spanish project subsidiary on its election at Final Investment Decision

• (FID) for the projects and a 1.35% Net Smelter Royalty.

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Competent Persons Statement:

The information in this report that relates to the Mineral Resources and Ore Reserves Statement, Exploration Results and Exploration Targets is based on information and supporting documentation compiled by Mr Chris Creagh, who is a consultant to Elementos Ltd. Mr Creagh is a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and who consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Chris Creagh has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012).

The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

References to Previous Releases

The information in this report that relates to the Mineral Resources and Ore Reserves were last reported by the company in compliance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Mineral Resources, Ore Reserves, production targets and financial information derived from a production target were included in market releases dated as follows:

• 1 - “Oropesa Tin Project Optimisation Study” 3 Dec 2021

• 2 - “Optimisation Study Oropesa Tin Project” 29 March 2022

• 3 - “Oropesa DFS Commencement” 12 July 2021

• 4 – “Mining and Environmental regulatory documents submitted for the Oropesa Tin Project” 7 April 2022

• 5 - “Elementos commences exploration drilling at Oropesa Tin Project ” 27 January 2023

• 6 – “Elementos’ infill drilling finalized with intersection of more tin at Oropesa Tin Project, Spain” 01 February 2023

• 7 – “Oropesa Tin Project – 2023 Mineral Resource Update” 14 February 2023

• 8 – “Significant mineralisation intersected outside Mineral Resource at Oropesa Tin Project” 21 February 2023

• 9 – “Fluorite (critical mineral) Confirmed at the Cleveland Tin Project” 03 March 2023

• 10 – “Further significant mineralisation intersected outside the Oropesa Tin Project Mineral Resource” 29 March 2023

The company confirms that it is not aware of any new information or data that materially affects the information included in the market announcements referred above and further confirms that all material assumptions underpinning the production targets, forecast financial information derived from a production target and all material assumptions and technical parameters underpinning the Ore Reserve and Mineral Resource statements contained in those market releases continue to apply and have not materially changed.

This announcement was approved by the Board of Elementos Limited. For more information, please contact:

Joe David Managing Director Phone: +61 7 2111 1110 Email: jd@elementos.com

Please visit us at: www.elementos.com

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Company Profile

Elementos Limited’s strategy is to deliver sustainable shareholder value through the development of its portfolio of tin assets including Oropesa in Andalucia, Spain and Cleveland in Tasmania, Australia.

The company is focussed on maturing the Oropesa Tin Project through a Definitive Feasibility Study (DFS) after confirming it is one of the best undeveloped tin Mineral Resources in the world.

At Oropesa, a 2023 Mineral Resource Estimate (MRE) resulted in a total MRE increase of 0.7Mt (+4%) to 19.6Mt at 0.39% Sn with 100% of the 2023 MRE tonnes located within the 2022 Optimisation Study[1] US$30k/t Pit Shell being classified as Measured or Indicated (no Inferred Resources).

In addition, the Project completed a series of feasibility development programs to further develop key engineering information to feed into a Definitive Feasibility Study, which was announced as the development pathway for the project in July 2021.

In addition, Elementos continues to develop the Cleveland tin-copper and tungsten in Tasmania, with the immediate focus on determining the potential to increase the mineralisation of the project through exploration on prospective targets adjacent and below the existing resource.

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Oropesa Project
Cleveland Project
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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 March 2023

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives (EDGI grant) 1.8 Other (VAT refunds) 1.9 Net cash from / (used in) operating activities	- - - - (249) (247) - 13 - - - 54	- - - - (770) (674) - 28 - - 50 714
	(429)	(652)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - - (920) - -	- - (62) (3,053) - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

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 (9 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - -
	(920)	(3,115)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (principal portion of finance leases) 3.10 Net cash from / (used in) financing activities	- - - - - - - - (10)	- - 225 (4) - - - - (40)
	(10)	181
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	4,043 (429) (920) (10)	6,270 (652) (3,115) 181

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 2

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 (9 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	1	1
	2,685	2,685
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	2,640 45 - -	3,998 45 - -
	2,685	4,043
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 133 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. *6.1 comprises directors’ fees & superannuation.		133
		-

ASX Listing Rules Appendix 5B (17/07/20) + 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. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities 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 facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (429) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (920) Total relevant outgoings (item 8.1 + item 8.2) (1,349) Cash and cash equivalents at quarter end (item 4.6) 2,685 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 2,685 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.99 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(429) (920) (1,349) 2,685 -
		2,685
	Answer: Yes
	8.8.2 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: Yes - as disclosed in the ASX announcement “Elementos completes placement for Oropesa Tin Project DFS” released 5 April 2023 the Company successfully completed a capital raising of $3m (less costs). None of the placement funds were received during the last quarter. Net proceeds of $2.1m were received in April, and a further $865,000 (from directors) is expected to be received in early June following shareholder approval at a General Meeting to be held on 31 May 2023.

ASX Listing Rules Appendix 5B (17/07/20) + 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

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

Answer: Yes - as a result of the capital raising detailed in 8.8.2 above.

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

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: 28 April 2023

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 (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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