ELEMENTOS LIMITED — Investor Presentation 2015

Sep 27, 2015

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WHY YOU SHOULD INVEST

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EXPERIENCED
MANAGEMENT
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LOW CAPITAL
STRATEGY
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WORLD CLASS
PROJECT
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SIGNIFICANT
UPSIDE
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ELEMENTOS LTD (ASX:ELT)

Capital Structure (Sept. 2015)

elementos.com.au Top 20 Shareholders

Shares on issue 767.4m Options on issue 38.8m Share price ASX A$0.011 Market Capitalisation A$8.4m Cash (end of Q1 FY2016) A$0.76M

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Retail
Remaining
Top 20 Board &
Management
Mr. Andrew
Greig
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Board and Management

ELT Share Price Performance

Rick Anthon Non-Executive Chairman Tim McManus Chief Executive Officer Richard Seville Non-Executive Director Corey Nolan Non-Executive Director Calvin Treacy Non-Executive Director

ANNOUNCEMENT OF STUDY RESULTS

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EXPERIENCED MANAGEMENT

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WITH A SINGLE FOCUS AND ‘SKIN IN THE GAME’

TIM MCMANUS CHIEF EXECUTIVE OFFICER

BSC MBA MAUSIMM

• 20 YEARS MINING EXPERIENCE IN BASE AND PRECIOUS METALS, BULK COMMODITIES AND ENERGY.

- RICK ANTHON NON EXECUTIVE CHAIRMAN

• LAWYER WITH OVER 30 YEARS’ EXPERIENCE IN COMMERCIAL AND CORPORATE LAW.

• SPECIALIST IN CAPITAL RAISING AND CORPORATE GOVERNANCE.

- RICHARD SEVILLE NON EXECUTIVE DIRECTOR

• FORMALLY RESOURCE DIRECTOR OF PRIVATE EQUITY BACKED DEVELOPMENT COMPANY, CHIEF GEOLOGIST WITH XSTRATA, REGIONAL MANAGER WITH AMC CONSULTANTS AND MANAGING DIRECTOR OF SCORPION ENERGY.

• MINING PROFESSIONAL WITH 30 YEARS EXPERIENCE

• MANAGING DIRECTOR OF ASX 300 LITHIUM PRODUCER OROCOBRE LTD (ASX: ORE/ TSX: ORL).

- COREY NOLAN NON EXECUTIVE DIRECTOR

• MINERAL ECONOMIST WITH 20 YEARS EXPERIENCE.

• SIGNIFICANT EXPERIENCE IN PROJECT DEVELOPMENT AT SENIOR MANAGEMENT LEVEL COMPLEMENTED BY A STRONG BACKGROUND IN DUE DILIGENCE AND PROJECT ASSESSMENT.

• CURRENTLY CEO OF SAYONA MINING (ASX:SYA).

- CALVIN TREACY NON EXECUTIVE DIRECTOR

• ENGINEER WITH 20 YEARS COMMERCIAL EXPERIENCE.

• • DIRECTOR OF AMIRA INTERNATIONAL.

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100% OWNERSHIP OF TIER 1 TIN & TUNGSTEN ASSETS

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THE CLEVELAND PROJECT IS A BROWNFIELDS REDEVELOPMENT OF TWO DEPOSITS ACCESSIBLE FROM THE SAME UNDERGROUND INFRASTRUCTURE: A LARGE RENISON STYLE TIN & COPPER DEPOSIT - AND A WORLD CLASS LONG LIFE TUNGSTEN PORPHYRY DEPOSIT.

THE CLEVELAND TIN & COPPER MINE OPERATED BY ABERFOYLE LTD BETWEEN 1968 AND 1986.

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CLEVELAND MAIN PORTAL 1971

CLEVELAND UNDERGROUND EQUIPMENT 1971

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LOW CAPITAL STRATEGY

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ELEMENTOS IS DEVELOPING THE CLEVELAND MINE THROUGH A

- STAGED LOW CAPITAL DEVELOPMENT STRATEGY:

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THE STAGED DEVELOPMENT STRATEGY

• MINIMISES UPFRONT CAPITAL

• FUNDS FUTURE STAGES FROM ESTABLISHED CASH FLOWS

• MAXIMISES THE BENEFITS OF CAPITAL EXPENDITURE

• REDUCES THE LIKELIHOOD FOR FUTURE EQUITY RAISINGS TO COMMENCE PRODUCTION

• BUT MOST IMPORTANTLY REDUCES YOUR RISK OF INVESTMENT

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WHY INVEST IN TIN ? THE HIGHEST VALUE BASE METAL

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ACCORDING TO THE WORLD BANK, TIN’S RESERVES TO PRODUCTION RATIO DECLINED NEARLY 40 PERCENT FROM 2000 TO 2011, MEANING THAT CURRENT PRODUCTION LEVELS CAN ONLY BE SUSTAINED FOR ABOUT 19 MORE YEARS

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SOURCE: ROSKILL APRIL 2015

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WHY THE DEMAND?

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ESSENTIAL METAL TO TECHNOLOGY AND DEVELOPMENT

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SOURCE: ITRI ROSKILL USAGE ESTIMATES IN KT, APRIL 2015

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THE NEXT GROWTH CATALYSIS

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PRODUCTION CAPACITY OF LITHIUM-ION BATTERIES IS ANTICIPATED TO MORE THAN TRIPLE BY 2020

THE LITHIUM-ION BATTERY MEGA-FACTORIES ARE COMING

TIN IMPROVES A LITHIUM BATTERY BY:

• PROVIDING GREATER CAPACITY

• EXTENDING BATTERY LIFE

• ITS LACK OF REACTIVITY WITH CARBON

• AND ITS LOW MELTING POINT

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SOURCE: VISUAL CAPITALIST 2015

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SOURCE: TIN BASED MATERIALS AS ADVANCED ANODE MATERIALS FOR LITHIUM ION BATTERIES, UNIVERSITY OF CAMBRIDGE, KAMALI & FRAY 2010.

THE CLEVELAND PROJECT

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TIN-COPPER & TUNGSTEN JORC RESOURCES & RESERVES

✓

LOW CAPITAL EXPENDITURE AND OPERATING COSTS IN THE BOTTOM HALF OF THE COST CURVE (C3)

✓

TWO WORLD-CLASS DEPOSITS ACCESSIBLE FROM THE SAME INFRASTRUCTURE

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APPROVALS AND MINING LEASE LODGED WITH - NEAR TERM PRODUCTION SCHEDULED FOR 2017 YEAR MINE LIFE (>15 )

✓

ESTABLISHED PORT & TRANSPORT ROUTE WITH ON SITE POWER, WATER & COMMUNICATIONS[✓]

RESOURCE & EXPLORATION UPSIDE WITH DRILLING ✓ SCHEDULED FOR 2016

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WORLD CLASS MINERALS FIELD

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THE CLEVELAND PROJECT AREA COVERS THE NORTHERN MARGINS AND METAMORPHIC AUREOLE OF THE MEREDITH GRANITE WHICH IS ASSOCIATED WITH NUMEROUS WORLD CLASS TIN DEPOSITS; RENISON, MT BISCHOFF AND CLEVELAND.

CLEVELAND HAS:

• 2,020 DIAMOND DRILL HOLES PROVIDING 1,725 MINERALISED INTERSECTIONS

• A WELL DEFINED MINERAL RESOURCE WITH OVER 120,000M OF ASSAYED DRILL CORE DATA

• MINERALISATION IS OPEN AT DEPTH AND IN ALL DIRECTIONS

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ESTABLISHED PORT & TRANSPORT ROUTE

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EXCELLENT INFRASTRUCTURE

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POWER ON SITE WARATAH
(22KV & 110KV) TOWNSHIP 15KM
TD1
CROSS-SECTION
PROCESS PLANT DESIGN
(650 KTPA THROUGHPUT)
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STAGE 1 – TAILINGS REPROCESSING

WHY IS THE RESOURCE THERE?

THERE ARE TWO PRIMARY METHODS OF TIN RECOVERY – GRAVITY AND FLOTATION.

TAILINGS WERE DEPOSITED DURING THE EARLY DAYS OF FLOTATION IMPLEMENTATION. CLEVELAND EXPERIENCED POOR RECOVERIES WITH SIGNIFICANT AMOUNTS OF TIN LOST TO BOTH TAILINGS DAMS.

THE INTERNATIONAL TIN COUNCIL WHO DETERMINED GLOBAL TIN PRODUCTION IN THE 70’S & 80’S, SET DIFFICULT QUOTAS FOR CLEVELAND, MEANING THE PLANT WAS REGULARLY TURNED OFF AND ON TO MEET ITS RESTRICTED QUOTA. THIS INCLUDED RUNNING ON DAY SHIFT ONLY FOR PERIODS. THIS INSTABILITY AFFECTED

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TAILINGS DAM 1
TAILINGS DAM 2
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RECOVERY AND CAUSED SIGNIFICANT AMOUNTS OF TIN TO BE LOST TO THE TAILINGS DAMS.

AT CURRENT PRICES, THE PROJECT IS PROFITABLE AND CASH FLOW POSITIVE.

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STAGE 1 – TAILINGS REPROCESSING

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2017 PRODUCTION TARGETED BASED ON A 3.8 MT ORE RESERVE

HOW WILL ELEMENTOS RECOVER THE RESOURCE ?

• BY IMPLEMENTING MODERN GRAVITY AND FLOTATION TECHNOLOGY, WHICH IS NOW WELL UNDERSTOOD AND HAS ADVANCED SIGNIFICANTLY -

• I.E. ULTRA FINE FALCON UNITS.

• THROUGH INSTALLATION OF REGRINDING TECHNOLOGY, WHICH WILL IMPROVE LIBERATION

• BY UTILISING LEACHING FOR UPGRADING OF THE FINAL CONCENTRATE.

WHY IS ELEMENTOS CONFIDENT IN RECOVERING THE RESOURCE ?

• 2 SEPARATE ROUNDS OF DETAILED TESTING, BY THE -

• WORLD CLASS BURNIE TIN LABORATORY, PROVIDED -

• REPEATABLE HIGH CONFIDENCE RESULTS.

• OTHER PROJECT ELEMENTS HAVE BEEN DE-RISKED TO ALLOW A MAIDEN RESERVES STATEMENT

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1 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 EDITION, ON THE 17/06/2014 IN “CLEVELAND TAILINGS RESOURCE UPGRADE”.

2 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 EDITION, ON THE 03/08/2015 IN “CLEVELAND TAILINGS PRE-FEASIBILITY STUDY SUCCESSFULLY DEMONSTRATES VIABILITY”

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STAGE 2 – OPEN PIT MINING IN 2018

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INDEPENDENT SCOPING STUDY COMPLETED BY AMC CONSULTANTS PTY LTD

MINING INVENTORY[1] OF 600KT AT 0.50% TIN AND 0.14% COPPER.

FIVE PITS - AVERAGE STRIP RATIO OF 5.1

200KTPA OF ORE PER ANNUM OVER 3 YEARS

98% OF THE MINING INVENTORY[1] IN THE INDICATED MINERAL RESOURCE CATEGORY

C1 CASH COST OF US$8,303 PER RECOVERED TONNE OF TIN

CAPITAL A$6.6M - FULLY FUNDED FROM STAGE 1 CASH FLOW[2]

CASH FLOW POSITIVE AT CURRENT TIN AND COPPER PRICES

ADDS A$21M TO NET CASH - FLOW PRE TAX ( )

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1 A MINING INVENTORY IS NOT AN ORE RESERVE. REFER TO CAUTIONARY STATEMENTS ATTACHED TO THIS ANNOUNCEMENT.

2 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 EDITION, ON THE 20/08/2015 IN “CLEVELAND OPEN PIT STUDY ADDS $21M TO CASH FLOW”.

3 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 EDITION, ON THE 03/03/2015 IN “CLEVELAND OPEN PIT - HIGH-GRADE MINERAL RESOURCE DEFINED”

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STAGE 3 – UNDERGROUND MINING IN 2021

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COLLAPSE OF THE
ABERFOYLE LTD MINED 5.7M TONNES BETWEEN
TIN COUNCIL
1968 AND 1986 (~18YRS) WITH MODERN MINING
METHODS FOR ~24,000 TONNES OF TIN AND 10,000
TONNES OF COPPER IN CONCENTRATE.
CLEVELAND WAS CLOSED ON THE DISCOVERY OF CLEVELAND
CLOSURE
‘HELLYER’ AND THE COLLAPSE OF THE INTERNATIONAL
TIN COUNCIL.
ELEMENTOS LTD HAS >6.6M
TONNES OF TIN-COPPER
MINERAL RESOURCES DEFINED
TODAY.
WITHITH AN ADDITIONAL 4M
TONNES OF TUNGSTEN OF TUNGSTEN TUNGSTEN
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WITHITH AN ADDITIONAL 4M TONNES OF TUNGSTEN OF TUNGSTEN TUNGSTEN INFERRED MINERAL RESOURCES.

1 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 EDITION, ON THE 03/03/2015 IN “CLEVELAND OPEN PIT - HIGH-GRADE MINERAL RESOURCE DEFINED”

2 THIS INFORMATION WAS PREPARED AND FIRST DISCLOSED UNDER THE JORC CODE 2004 AND ANNOUNCED ON THE 18/04/2013 AS “CLEVELAND TIN, COPPER AND TUNGSTEN JORC RESOURCES”. 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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STAGE 3 – UNDERGROUND MINING IN 2021

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INDEPENDENT SCOPING STUDY COMPLETED BY AMC CONSULTANTS PTY LTD EXISTING 3.5 KILOMETRE DECLINE AND 25 KILOMETRES OF UNDERGROUND DEVELOPMENT. UNDERGROUND INFRASTRUCTURE, OREBODY GEOMETRIES AND GROUND CONDITIONS ARE - AMENABLE TO LOW COST MECHANISED BULK MINING WITH LARGE MACHINERY.

UNDERGROUND ORE PRODUCTION CAPACITY UP TO 900,000 TONNES PER ANNUM.

300 m

TWO SEPARATE DEPOSITS ACCESSIBLE FROM THE SAME EXISTING UNDERGROUND INFRASTRUCTURE

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LONG MINE LIFE ON EXISTING RESOURCES

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FULLY FUNDED BY CASH FLOW FROM STAGES 1 AND 2 - STAGE 3 WILL NOT REQUIRE ADDITIONAL EQUITY.

MINING INVENTORY[1] OF 1.9 MT AT 0.61% TIN AND 0.22% COPPER AND 1.7 MT AT 0.31% TUNGSTEN OXIDE.

C1 CASH COST OF ~US$10,200 C3 CASH COST OF ~US$15,500

AN EXISTING 9.7 KILOMETRES OF LATERAL ACCESS IS TO BE REFURBISHED AND AN ADDITIONAL 9.6 KILOMETRES TO BE DEVELOPED TO ACCESS THE NEW MINING AREAS.

THE 300 KT OF WASTE GENERATED FROM MINE DEVELOPMENT WILL BE DISPOSED OF IN THE STOPE VOIDS.

THE DECLINE WILL BE ABLE TO SERVICE - PRODUCTION FROM BOTH THE TIN COPPER AND TUNGSTEN OREBODIES.

STOPE OPTIMISATION RESULTS (LOOKING WEST)

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- ADDS A$90M TO NET CASH FLOW (PRE TAX)

1 A MINING INVENTORY IS NOT AN ORE RESERVE. REFER TO CAUTIONARY STATEMENTS ATTACHED TO THIS ANNOUNCEMENT.

2 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 EDITION, ON THE 01/09/2015 IN “UNDERGROUND STUDY ADDS $90M IN PRE-TAX CASH”

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PROJECT COMPARISON - COST

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NET DIRECT CASH COST (C1) REPRESENTS THE CASH COST INCURRED AT EACH PROCESSING STAGE, FROM MINING THROUGH TO RECOVERABLE METAL DELIVERED TO MARKET, LESS NET BY-PRODUCT CREDITS (IF ANY). PRODUCTION COST (C2) IS THE SUM OF NET DIRECT CASH COSTS (C1) AND DEPRECIATION, DEPLETION AND AMORTISATION. FULLY ALLOCATED COST (C3) IS THE SUM OF THE PRODUCTION COST (C2), INDIRECT COSTS AND NET INTEREST CHARGES I.E. TOTAL COST.

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PROJECT COMPARISON – CONTAINED TIN

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DEVELOPMENT PROJECTS - MEASURED & INDICATED JORC RESOURCES ONLY

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IRON CONTAMINATED PROJECTS TIN PROJECTS

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CLEVELAND
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DEVELOPMENT STRATEGY GENERATES CASH

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• • THE INTEGRATED TAILINGS PIT UNDERGROUND OPERATION IS PROJECTED TO - GENERATE NET CASH OF A$166M[1] (PRE TAX) OVER A 15-YEAR MINE LIFE, WITH EXPLORATION POTENTIAL YET TO BE TESTED.

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1 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 EDITION, ON THE 01/09/2015 IN “UNDERGROUND STUDY ADDS $90M IN PRE-TAX CASH”

DEVELOPMENT STRATEGY GENERATES CASH

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• THE MINE WILL GENERATE ANNUAL NET CASH OF ~A$20M[1] (PRE TAX), STEPPING - UP TO ANNUAL NET CASH OF ~A$30M[1] (PRE TAX), SUSTAINABLE BY FURTHER RESOURCE DEVELOPMENT AND EXPLORATION.

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1 REPORTED IN ACCORDANCE WITH THE JORC CODE 2012 EDITION, ON THE 01/09/2015 IN “UNDERGROUND STUDY ADDS $90M IN PRE-TAX CASH”

SIGNIFICANT UPSIDE POTENTIAL

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elementos.com.au
DRILLING PLANNED TO COMMENCE IN 2016
Exploration Target Low High Grade % Estimated Contained Metal
Tin (Sn) 3 Mt 16 Mt 0.65 20 - 110 Kt
Copper (Cu) 3 Mt 16 Mt 0.20 10 - 30 Kt
Tungsten (WO3) 24 Mt 60 Mt 0.30 72 - 120 Kt
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TIN-COPPER ESTIMATED BY:

• EXTENDING THE BOUNDARIES AND ASSESSING THE THICKNESS OF THE KNOWN TIN LENSES USED IN THE CURRENT JORC MINERAL RESOURCE ESTIMATION.

• INTERPRETING AND EXTRAPOLATING THE GEOLOGY AND THE MINERALISATION OF THE KNOWN TIN COPPER LENSES.

• UTILISING HISTORICAL DRILLING RESULTS, HISTORICAL STATED RESOURCES AND HISTORICAL MINING INFORMATION.

TUNGSTEN ESTIMATED BY:

• UTILISING 26 DIAMOND DRILL HOLES TOTALLING 6,796 METRES, SAMPLED AND ASSAYED OVER 2.5M INTERVALS.

• UTILISING DRILL-HOLE INTERCEPTS IN MINERALISATION TOTALLING 3,638 METRES AT A LENGTH-WEIGHTED AVERAGE GRADE OF 0.20% WO3.

• UNDERSTANDING THAT THE STOCK-WORK BEARING PORPHYRY DIPS VERTICALLY WITH A KNOWN STRIKE LENGTH OF ABOUT 300M, AN ACROSS STRIKE LENGTH WIDTH OF UP TO 300M AND IS OPEN AT DEPTH.

IT IS IMPORTANT TO NOTE THAT WHILE THESE ESTIMATES ARE BASED ON EXTENSIONS OF CURRENTLY KNOWN TIN-COPPER AND TUNGSTEN MINERALISATION, BOTH ALONG STRIKE AND DOWN DIP. THE POTENTIAL QUANTITY AND GRADE OF THE EXPLORATION TARGET IS CONCEPTUAL IN NATURE. THERE HAS BEEN INSUFFICIENT EXPLORATION TO FURTHER DEFINE MINERAL RESOURCES AND IT IS UNCERTAIN IF FURTHER EXPLORATION WILL RESULT IN THE DETERMINATION OF FURTHER MINERAL RESOURCES. IT IS ALSO IMPORTANT TO NOTE THE EXPLORATION TARGET HAS BEEN DEFINED BASED ON EXPLORATION RESULTS AND HISTORICAL MINING INFORMATION. FOR FURTHER INFORMATION PLEASE REFER TO THE ANNOUNCEMENT “CLEVELAND TIN AND COPPER EXPLORATION TARGET DEFINED” RELEASED ON 2 APRIL 2014 AND THE ANNOUNCEMENT “CLEVELAND PROJECT TUNGSTEN POTENTIAL” RELEASED ON 29 OCTOBER 2013.

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CLEVELAND MINE – LONG SECTION

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NEAR TERM PRICE CATALYSTS

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ONLY 20% OF THE STORY TOLD SO FAR …

Q2 2016

COMPLETION OF DRILLING PROGRAM FOR OPEN PIT AND UNDERGROUND RESOURCE EXPANSION AND RESERVE INPUTS.

Q3 2016

COMPLETION OF FEASIBILITY STUDY FOR TAILINGS PROJECT.

Q4 2016

FUNDING FOR TAILINGS PROJECT, CONSTRUCTION UNDERWAY.

Q1 2017

COMPLETION OF PRE-FEASIBILITY STUDY AND ORE RESERVE STATEMENT FOR OPEN PIT AND UNDERGROUND MINING.

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WHY YOU SHOULD INVEST

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EXPERIENCED MANAGEMENT WITH A DIVERSIFIED AND EXPERIENCED BOARD OF DIRECTORS.

• SKIN IN THE GAME.

• HISTORY OF SUCCESSFUL PROJECT DELIVERY

LOW CAPITAL STRATEGY TO DELIVER VALUE TO INVESTORS.

• FOCUSED ON TIN, THE HIGHEST VALUE BASE METAL AND TUNGSTEN, A STRATEGIC METAL, BOTH ESSENTIAL TO HIGH GROWTH SECTORS AND LEVERAGED TO TECHNOLOGICAL DEVELOPMENT.

• ACHIEVABLE LOW CAPITAL DEVELOPMENT PLAN WHICH REDUCES THE LIKELIHOOD FOR FUTURE EQUITY RAISINGS.

WORLD CLASS PROJECT THAT MAKES MONEY AT TODAYS PRICES.

• WORLD CLASS TIN COPPER ASSET WITH LOW OPERATING COSTS.

• A SEPARATE WORLD CLASS TUNGSTEN DEPOSIT ACCESSIBLE FROM THE SAME INFRASTRUCTURE

• POWER, WATER, COMMUNICATIONS ON SITE, WITH ESTABLISHED TRANSPORT TO NEAR BY PORT FACILITIES.

• SAFE JURISDICTION (CONFLICT FREE), WITH A SUPPORTIVE GOVERNMENT AND COMMUNITY.

SIGNIFICANT UPSIDE POTENTIAL WITH DRILLING PLANNED FOR 2016.

• DRILLING TO UPGRADE AND EXPAND SIGNIFICANT RESOURCE BASE TO BEYOND 30 YEARS MINE LIFE.

• DRILLING TO ESTIMATE ORE RESERVES AS PART OF A ‘HARD ROCK’ PRE FEASIBILITY STUDY IN 2016.

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CAUTIONARY STATEMENTS

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FORWARD-LOOKING STATEMENTS

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.

MINERAL RESOURCE

ELEMENTOS CONFIRMS THAT MINERAL RESOURCE AND 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 RESERVE INFORMATION INCLUDED IN THE “CLEVELAND OPEN PIT - HIGH-GRADE MINERAL RESOURCE DEFINED” RELEASED ON 3 MARCH 2015 AND THE “CLEVELAND TAILINGS ORE RESERVE” RELEASED ON THE 3 AUGUST 2015, AND 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.

SCOPING STUDY RESULTS

THE SCOPING STUDIES REFERRED TO IN THIS ANNOUNCEMENT ARE BASED ON LOW-LEVEL TECHNICAL AND ECONOMIC ASSESSMENTS, WHICH ARE INSUFFICIENT TO SUPPORT THE ESTIMATION OF ORE RESERVES, OR TO PROVIDE ASSURANCE OF AN ECONOMIC DEVELOPMENT CASE AT THIS STAGE, OR TO PROVIDE CERTAINTY THAT THE CONCLUSIONS OF THE SCOPING STUDIES WILL BE REALISED. ELEMENTOS ADVISES THAT THE SCOPING STUDY RESULTS ARE PARTLY DRAWN FROM INFERRED RESOURCES. THERE IS A LOW LEVEL OF GEOLOGICAL CONFIDENCE ASSOCIATED WITH THESE ESTIMATES AND THERE IS NO CERTAINTY THAT FURTHER EXPLORATION WORK WILL RESULT IN THE CONVERSION OF THE ESTIMATE TO AN INDICATED MINERAL RESOURCES OR THAT THE PRODUCTION TARGET ITSELF WILL BE REALISED. THE TERM “MINING INVENTORY” IS USED TO DESCRIBE THE INDICATED AND INFERRED MINERAL RESOURCE WITHIN THE MINE DESIGN. WHEREAS AN ORE RESERVE, AS DEFINED BY THE JORC CODE (2012 EDITION), MUST BE BASED ON A STUDY AT PRE-FEASIBILITY STUDY LEVEL OR BETTER AND MUST NOT INCLUDE INFERRED MINERAL RESOURCES OR EXPLORATION TARGETS. AS SUCH, NO ORE RESERVE CAN BE STATED ON THE BASIS OF THE SCOPING STUDIES.

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elementos.com.au

+617 3221 7770

ASX : ELT

FOR FURTHER ENQUIRIES PLEASE CONTACT:

TIM MCMANUS CHIEF EXECUTIVE OFFICER EMAIL: ADMIN@ELEMENTOS.COM.AU

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