ELEMENTOS LIMITED — Investor Presentation 2021

Jun 23, 2021

ASX:ELT

TIN FOR AN ELECTRIC TOMORROW Investor Presentation

June 2021

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Cautionary statement

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The Economic Study (Study) referred to in this announcement has been undertaken for the purpose of assessing the technical and economic viability of developing the Oropesa Tin Project. The Study has been completed to an overall Scoping Study level of accuracy of +/- 35%. It should be noted that a number of the work streams in the Study have been undertaken to a more detailed standard of evaluation and definition.

The Study is preliminary in nature, it includes inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Ore Reserves, and there is no certainty that the Study outcomes will be realised. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into an Ore Reserves estimate.

While the estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, the Company is not aware of any such issues. The quantity and grade of reported Inferred Resources are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

The Study outcomes, production target and forecast financial information are based on information that are considered to be at Scoping Study level. The information applied in the Study is insufficient to support the estimation of Ore Reserves. While each of the modifying factors was considered and applied, there is no certainty of eventual conversion to Ore Reserves or that the production target will be realised. Further exploration work and evaluation studies are required before Elementos will be in a position to estimate any Ore Reserves or provide any assurance of an economic development case.

Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Study. The Study is based on the Measured, Indicated and Inferred Resources as estimated by SRK in the Mineral Resource Estimate released on the ASX on 31st July 2018, “Acquisition of the Oropesa Tin Project”. Elementos is not aware of any new information or data that materially affects the information included in that release. All material assumptions and technical parameters underpinning the estimates in that ASX release continue to apply and have not materially changed.

Statements in this release regarding the Elementos business or proposed business, which are not historical facts, are forward-looking statements that involve risks and uncertainties. These include Mineral Resource Estimates, metal prices, capital and operating costs, changes in project parameters as plans continue to be evaluated, the continued availability of capital, general economic, market or business conditions, and statements that describe the future plans, objectives or goals of Elementos, including words to the effect that Elementos or its management expects a stated condition or result to occur. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by Elementos, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements.

Elementos has concluded that it has a reasonable basis for providing these forward-looking statements and the forecast financial information included in this release. This includes a reasonable basis to expect that it will be able to fund the development of the Oropesa Tin Project upon successful delivery of key development milestones. The detailed reasons for these conclusions are outlined throughout this ASX release and in Appendix 1 (JORC Code 2012, Table 1. Consideration of Modifying Factors). While Elementos considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Economic Assessment Study will be achieved. To achieve the range of outcomes indicated in the Economic Assessment Study, pre-production funding in excess of US$70m will likely be required. There is no certainty that Elementos will be able to source that amount of funding when required. Discussions with potential funders have confirmed that a project of this scale will be able to be funded with a combination of Debt and Equity. The company is confident that the capital costs are sufficiently low that raising the required equity will be possible. The company continues to have the full support of its existing largest shareholders and is working with potential offtake partners, brokers, private equity firms and traditional funders to ensure that the Company will be in a position to fund the project as needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Elementos’ shares. It is also possible that Elementos could pursue other value realisation strategies such as a sale, partial sale or joint venture of the Oropesa Tin Project. This could materially reduce Elementos’ proportionate ownership of the Oropesa Tin Project.

No Ore Reserve has been declared. This ASX release has been prepared in compliance with the current JORC Code (2012) and the ASX Listing Rules. All material assumptions, including sufficient progression of all JORC modifying factors, on which the Production Target and forecast financial information are based have been included in this ASX release.

Of the Mineral Resources scheduled for extraction in the Study mine production plan, approximately 4% are classified as Measured, 78% as Indicated and 18% as Inferred. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Inferred Resources do not contribute to the production schedule in the first two years of operations and only 1% in the first nine years of the proposed development. The production plan includes Inferred Resources in the latter stages of the production schedule.

This release contains a series of forward-looking statements. The words “expect”, “potential”, “intend”, “estimate” and similar expressions identify forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties that may cause the actual results, performance or achievements to differ materially from those expressed or implied in any of the forward-looking statements in this release that are not a guarantee of future performance.

Corporate overview

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Share price $A0.018

18 June 2021 52 week high 0.024c, low $0.010c

Shares on issue 3,858m

18 June 2021

Debt* $1.5m

18 June 2021 *Unsecured debt

Market capitalisation $69.4m

18 June 2021

Cash $7.56m

31 March 2021 balance and $6.1 million

Enterprise Value $73.3m 18 June 2021

Mark Wellings (Eurotin) 9.1%

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Directors & Management 12.5% Keo Projects 2.6% TR Nominees 3.4%

Others 72.4%

~~Q~~

A

What metal is most impacted by new technology and electrification?

It’s elementary. Tin, for its use in batteries and as an electrical contact.

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Tin for an electric tomorrow

Source: Rio Tinto | MIT

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Tin is key electrical contact in electronic circuits (solder). Plays role in battery anodes, chemical stabilizers and the humble tin can (tin plate).

Tin remains at near historic highs in June 2021

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•
LME Spot Tin Price US$/tonne
40K 18 June 2021
US$31,709
35K
•
30K
•
25K
20K
15K
10K
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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• Prices increased this year on the back of declining stockpiles and strong industrial demand particularly for semi-conductors and electronics.

• Tin spot prices have remained above US$30k for nearly two months

• Tin 3-month forward prices above US$30k (Historic highs)

Near-term supply gap can only come from new production or an expansion or restart of historic mines.

Tin is now mainstream news

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New tin production required

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• Global tin demand is steadily increasing as it services the technology revolution.

• Electronics, communications, IT, renewable energy, and electric vehicles all need more tin.

• Very few low risk Environmental, Social, Governance (ESG) projects in global pipeline.

• Existing tin mines are mostly producing from lower grade, diminishing reserves.

• New supply is limited as potential projects are either high CAPEX underground mines, low grade open pit mines or located in risky jurisdictions.

Source: ITA

Tin for an electric tomorrow

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Our vision is to become a major global tin producer.

• Two world class tin projects with large JORC Resource bases and significant exploration potential in miningfriendly (non-conflict) jurisdictions.

• 44-hole resource drill program currently underway at Oropesa.

• Drill program is targeting:

• May 2020 Economic Study shows flagship Oropesa Tin Project is one of the world’s highest-grade, lowest cost tin developments (NPV8% US$92 million at very low CAPEX of US$52m and tin price of US$19,750/tonne).

• Experienced leadership team has skin in the game (12.5% ownership) and strong shareholder support.

• Conversion of Inferred Resource to Indicated (to increase mine tonnage and mine life)

• Identification of mineralisation near surface

• Target new mineralised zones outside the current Mineral Resource

Five value catalysts

05

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01

Oropesa drilling and program to re-define JORC Mineral Resource Estimate.

03

Finalise Oropesa environmental and permitting,

02

Oropesa Feasibility Development programs: On-ground, Laboratory and engineering programs to support feasibility study.

04

Feasibility study completion, declare maiden JORC Ore Reserve, finalise offtake and financing.

Unlock value from the Cleveland Tin Project in Tasmania via drilling and engineering development.

Oropesa Tin Project

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• Project acquired in 2019 (100%) with more than US$26 million historically invested in project development.

• Planned open-cut mining operation and conventional processing facility producing tin concentrates to be shipped to smelters in Europe and Asia.

• Strong local support for the project.

• The mining friendly Andalucian region is home to some of Spain’s largest mines:

  • The Cobre Las Cruces Copper Mine, owned by First Quantum Minerals

  • The Rio Tinto Copper Mine, owned by Atalaya Mining

Oropesa Tin Project

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One of the world’s highest grade open-cut tin projects

• May 2020 Economic Study Production Target derived from 2018 JORC Mineral Resource.

• Resource includes 253 drill holes (54,026 metres).[2]

• JORC Exploration Target highlights potential to expand resource.

JORC Resources[1]

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Total
Measured Indicated Sub Total Inferred
12.54 Mt
0.33 Mt 9.01 Mt 9.34 Mt 3.20 Mt
1.09% Sn 0.53% Sn 0.55% Sn 0.52% Sn 0.54% Sn
Total
Measured Indicated Sub Total Inferred
67.5 kt
3.6 kt 47.3 kt 50.9 kt 16.6 kt
Tin metal Tin metal Tin metal Tin metal Tin metal
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• 1 All resources calculated using a 0.15% Tin cut-off grade. This information was first disclosed under the JORC Code 2012 on 31 July 2018 Not including 44 holes in current drill campaign

• Current 44 hole drilling program aiming to increase the confidence in the Inferred Resource to Indicated as well as test extensional mineralisation.

Oropesa Tin Project

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Economic Study (May 2020)

Oropesa Economic Study follows extensive drilling, geological, geotechnical, feasibility and metallurgical test work programs over more than 10 years.

Annual ore feed Annual metal production Tin price Annual gross revenue Gross revenue x 14 years 750,000tpa 2,440tpa US$19,750/t US$48m Project life US$674m The price is below the 10-year average LME tin price of approximately CAPEX[+] All-in-sustaining costs Annual operating costs Capital development costs include a US$52m US$11,800/t US$28m 20% contingency. Pre-tax NPV8% Post-tax IRR Annual operating margin Total project EBITDA x 14 years US$92m 25% US$20m Project life US$281m

*The price is below the 10-year average LME tin price of approximately US$20,500/t.

• +Capital development costs include a 20% contingency.

Oropesa Tin Project

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Economics Sensitivity

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Net Present Value 8%

US$94.3m Tin price US$19,750/tonne (Economic Study) US$333.9m

Spot tin price US$31,709/tonne (www.lme.com, 18 June 2021)

Oropesa Tin Project

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Potential to be bottom quartile cash cost

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Cash cost (US$/tonne of tin)
40,000
30,000
20,000
Oropesa
10,000
0
20 40 60 80 100
% of cumulative global tin mine output
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• Oropesa cash cost compares favourably against other tin developments around the world.

• Resource optimisation and drilling program has potential to improve project economics.

• Drilling has already discovered near surface mineralisation in material previously categorised as waste rock.

• Bottom quartile cash cost target is real.

Source: International Tin Association

Oropesa Tin Project

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Geological Program

Drilling and optimisation started in October 2020 with the goal of increasing Oropesa’s overall resource and increase the confidence.

Economic Study outcomes were positive but there were a number of geological goals identified that have the potential to enhance the project’s economics.

Three key areas of optimisation potential include:

1. New drilling – add to and increase confidence in mineral resources.

2. Investigate reducing cut-off grade to include tin halo into the JORC Resource Model – near surface halo mineralisation has the potential to reduce operating costs and increase tin production.

3. Remodel existing drill core and geological interpretation.

Oropesa Tin Project

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Feasibility Development Programs

Elementos has commenced feasibility development programs, consisting of a series of on-ground investigations, supported by laboratory test work and engineering studies.

The programs will optimise previously identified opportunities, mitigate previously identified risks and generally increase the maturity level of engineering for the project.

The four key feasibility programs include:

1. Pilot scale metallurgical test work – Wardell Armstrong (UK)

2. Geotechnical works program

3. Hydrogeological (groundwater) works program

4. Variability metallurgical test work

Oropesa Tin Project

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Drilling update:

37 holes completed

1 currently underway

6 remaining

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Exploration drilling program on track
to deliver on its stated goals
Shallow mineralisation target
500m
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Cleveland Tin Project

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• Cleveland Tin Project (100%-owned) located in mineral rich northwest Tasmania.

• Operated as an underground mine by Aberfoyle Resources from 1968 to 1986 – demonstrated mining and metallurgical outcomes.

• Significant endowment of tin-copper tailings, open-cut and underground JORC Mineral Resources. Large, separate, tungsten porphyry exploration target below tin deposit.

JORC Resources[1]

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Indicated Inferred Total
6.23 Mt 1.24 Mt 7.47 Mt
0.75% Sn 0.76% Sn 0.55% Sn
0.30% Cu 0.28% Cu 0.30% Cu
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1 All resources calculated using a 0.35% Tin cut-off grade. This information was first disclosed under the JORC Code 2012 on 31 July 2018.

Cleveland Tin Project - Exploration

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Exploration activities at the Cleveland Project resumed in February 2021, amid surging tin prices.

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• Initial reconnaissance geological confirmation mapping and rock chip sampling in February has confirmed the prospectivity of the untested anomalies which were first identified by a Self-Potential (SP) geophysical survey in 1954.

• Four of the five rock chip samples that were collected contained visible sulphide mineralisation with the most significant assay being 0.7% tin, 0.57% copper, and 13.4% zinc from sample 130403.

• The nature of the mineralisation observed during the reconnaissance field work program is similar to that observed during the 2017 Cleveland diamond drilling program targeted shallow resources above the existing resource.

Cleveland Tin Project – 2021 Drilling Program

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• The company will drill four diamond drill holes (for a total of 1,000m) later this year after final approvals are received. This drilling will test for tin and copper mineralisation along strike and to the northeast of the historical tin mine

• The company was awarded $70,000 from the Tasmanian Government’s Exploration Drilling Grant Initiative program to support this campaign.

• Cleveland Tin Project mine sequence highlighting the surface projection of the geological resource with superimposed SP anomalies (in blue) and untested SP anomalies (in green) to the northeast of the historical workings.

Strong Leadership

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Our team has extensive experience in the mining and resources sector with vast expertise in project acquisition and development.

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Andy Greig Non-Exec Chairman

Andy has 35 years of experience in the mining and natural resource industry with Bechtel Group Inc., a global engineering, construction and project management company. Mr. Greig has held numerous positions with Bechtel, most recently as SVP and Global Manager of Human Resources. Mr. Greig served on the Bechtel Board as a Director and was President of the Mining and Metals Global Business Unit.

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Chris Dunks Executive Director

Chris is currently the Managing Director of Synergen Met, was a founder and Managing Director of Rockwell Minerals, the company that merged with Elementos in 2013. His experience over the last 20 years has been dominated by working on major minerals processing, refining and power projects both in Australia and the USA.

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Joe David Chief Executive Officer

Joe is an experienced mining executive with a demonstrated track record in the mining, construction and finance industries. His career has spanned executive roles with private and listed construction and development companies including Flinders Mines and BBI Group. He is experienced in managing and developing natural resource projects, exploration programs, feasibility studies, project financing, in addition to corporate strategy and mergers & acquisitions.

Strong Leadership

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Corey Nolan Non-Exec Director

Calvin Treacy Non-Exec Director

Corey is an accomplished public company director whose 30-year career in the resources industry started on the ground in operations before spanning a broad range of corporate roles from equities analyst and corporate finance director to a number of senior executive and board positions. He has been Managing Director of ASX listed Platina Resources Limited since August 2018.

Calvin has over 20 years senior management experience in mining, mining technology and manufacturing. He has a strong track record of founding and growing companies, and brings a wealth of experience in the areas of strategic planning and capital raising. He has worked in a range of roles including Non-executive Director, Chief Executive Officer, Chief Operating Officer and Production Manager.

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Brett Smith Non-Exec Director

Mr Smith has over 30 years’ experience in the resources, construction and engineering industries in senior operational and financial positions. Mr Smith is Executive Director of Hong Kong listed Dragon Mining which has operating gold mines and processing plants in both Finland and Sweden. Mr Smith is also Deputy Chairman of Hong Kong listed resources investment company APAC Resources and Executive Director of ASX listed company Metals X.

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Oropesa Tin Project,
Andalucia, Spain
ASX:ELT
elementos.com.au
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Why invest?

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01

May 2020 Updated Economic Study shows very strong investment case for the Oropesa Tin Project. Tin price forecasts show strong commodity pricing for the foreseeable future – underpinning an Oropesa financial investment case.

02

Drilling and optimisation plan to increase Oropesa’s overall resource, annual production and mine life for a stronger financial investment case.

03

Strategy to become a significant global tin producer within five years.

04

Board and management experienced in exploration, development, construction and operations globally.

05

Opportunity for additional production from Cleveland Tin Project in Tasmania.

Disclaimer

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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 & Exploration Target

• *8 – “Cleveland Tin Project –Exploration Re-Commences” released on 4th March 2021.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.

• *9 - Oropesa Tin Project – Drilling Progress Report, 17th March 2021

• *10 - Oropesa Tin Project – Drilling Progress Report, 22nd March 2021

• *11 - Appointment of Chief Executive Officer, 12th April 2021

• *12 - Elementos completes capital raising to continue the development of the Oropesa tin project amid strong tin prices, 19 April 2021

• *13 – Oropesa Tin Project – Drilling Progress Report, 30th April 2021

• *14 – Oropesa Tin Project – Drilling Progress Report, 10th May 2021

• *15 – Elementos commences feasibility development programs at the Oropesa Tin Project, 20th May 2021

Elementos confirms that Mineral Resource and Reserve estimates and Exploration Targets 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, Reserve or Exploration Target information included in the following announcements:

• *1 - “Acquisition of Oropesa Tin Project” released on 31 July 2018

• *2 - “Significant Increase in Cleveland Open Pit Resource” released on 26 September 2018

• *3 - “Oropesa Exploration Target” released on 4th February 2019

• *4 - “Oropesa Tin Project Presentation to the 3rd Mining and Minerals Hall Conference” released on 18 October 2019

• *5 – “Oropesa Tin Project –Drilling Progress Report” released on 6th January 2021

• *16 - Oropesa Tin Project – Drilling Progress Report, 2nd June 2021

• *17 - Oropesa Tin Project – Drilling Progress Report, 16th June 2021

Competent Person Statement

The information in this report is based on and fairly represents information and supporting documentation that has been compiled for this report. Mr Chris Creagh is a consultant to Elementos Ltd. Mr Creagh has reviewed and approved the technical content of this report. Mr Creagh is 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). Mr Creagh is a Member of the Australasian Institute of Mining and Metallurgy and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

• *6 – “Oropesa Tin Project –Drilling Progress Report” released on 19th January 2021

• *7 – “Oropesa Tin Project –Drilling Progress Report” released on 8th February 2021

Get in touch

Joe David Chief Executive Officer 0419 187 430 jd@elementos.com.au

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Elementos Limited Level 6, 10 Market Street Brisbane Queensland 4000 Phone: +61 7 3212 6299 elementos.com.au

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