ELEMENTOS LIMITED — Regulatory Filings 2012

May 17, 2012

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18 MAY 2012

MANANTIALES PROJECT UPDATE

Highlights

• New drill hole extends main gold zone at Manantial vein down to 300 metres. System remains open along strike, north and south, and at depth

• Manantial Este and Norte, Julieta Norte and La Puerta Este veins all justify further exploration and drilling

• Additional drilling is required to advance prospects to the next phase

Elementos Limited (ASX: ELT) (“Elementos” or the “Company”) is pleased to provide an exploration activities update, including the results from the Phase II Extended (“Phase IIE”) drilling program, recently completed at the Manantiales gold-silver project in the San Juan Province, Argentina.

Phase II Extended Drilling Results

The Phase IIE drilling program comprised 606 metres in two diamond holes, instead of the three shorter holes, as previously planned. Drill hole MDH53 intersected the structure at 240 metres depth without any significant results, while MDH54 intersected gold mineralisation at 299 metres depth, including:

• 4.7 metres at 1.53 g/t gold and 17.24 g/t silver from 299 metres

• Incl. 2.82 metres at 2.27 g/t gold and 10.97 g/t silver from 298 metres

• Incl. 0.32 metres at 6.02 g/t gold and 17 g/t silver from 298 metres

Whilst the results were not as encouraging as those from the previous campaigns, the Phase IIE program has extended the structure and mineralised system down to 300 metres depth in the north. Further to the south, the structure has been identified over several metres at 240 metres depth, albeit unmineralised in this zone, but showing strong evidences of the epithermal system being active (for example, breccia with black silica matrix and fragments of vein quartz). Hole MDH54 extended the mineralisation in hole MDH50, down 60 metres vertically at slightly higher grades.

Given the “pinch and swell” nature of the mineralisation discovered to date, typical of low-sulphidation epithermal systems, further drilling will be required to define and expand the size of the system.

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Potential of the Manantial Vein System

Substantial progress has been made at Manantiales, discovering and defining prospects through mapping, surface sampling, geophysics and drilling. Three phases of drilling totalling 7,841 metres have been completed on the Manantial, Julieta and La Puerta veins.

At the Manantial vein, drilling has defined the shallow levels of a low-sulphidation epithermal vein system, with further potential at depth and along strike – see Figure 3 - to discover new mineralisation. The highlights of the results to date include:

• Minimum strike length extended to 180 metres in a north-south direction;

• Mineralisation extended down to 300 metres depth;

• A new zone of mineralisation positioned approximately 250 metres south of the main Manantial vein has been identified and remains untested; and

• The system remains open along strike and to depth.

Drilling has confirmed that the vein is continuous, but internally, there are mineralised and non-mineralised phases. The mineralised phase appears to have a “pinch and swell” form (as seen at Casposo) at this shallow level. This, in conjunction with gold grade variability in short distances, is a common feature in low-sulphidation systems and is the reason for the variable results from the relatively wide-spaced drilling to date. The high-grade gold mineralisation is enveloped within a larger lower-grade gold halo (0.2 g/t gold average grade, 5 to 20 metres wide). This increases the overall size of the system, and provides encouragement that the whole system is potentially mineralised.

Ongoing surface exploration is expanding the size of the system through the discovery of new discrete vein outcrops in the vicinity of the Manantial vein. Many of these have returned low-grade gold and silver mineralisation associated with low temperature silica and silica-calcite veining.

The Company believes there is potential for the Manantial vein to support a larger epithermal system at depth (as depicted in Figure 1):

• Geological evidence that Manantial been has been a long lived structure with at least four pulses of silica;

• Geological mapping demonstrates an extensional structure with significant stratigraphic offset;

• Geophysical anomalies extending to depth in the pole-dipole induced polarisation survey data; and

• Textural, chemical and structural interpretations that indicate the Manantial system is at a higher level that the adjoining Casposo deposit.

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Figure 1: Generalised longitudinal section comparing Manantial vein to the nearby Casposo deposit.

Further drilling will be required to expand the size of the mineralised system, involving the targeting of extensions:

• At depth and along strike from holes MDH50 and MDH54 in the north;

• Depth extensions from hole MDH27 in the south;

• Potential southern plunging of the system from holes MDH51 and MDH38; and

• Parallel blind vein structures at depth that have not been identified through surface mapping and for stock-work mineralisation in the alteration zone around the main vein systems.

New Drill Targets

The Company has a number of other drill targets including Manantial Este, a two kilometre long, north-south, highly-resistive anomaly, similar to that of the Manantial vein, one kilometre to the west – see Figure 2.

Surface examination shows three sub-parallel sub-vertical structures up to 500 metres long containing quartz-calcite veins pinching and swelling between 0.5 and 2 metres width, but partially covered by talus material.

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Figure 2: Manantial Este resistivity anomaly.

In addition, more than 1,200 metres has been drilled at La Puerta and Julieta Norte. Whilst initial shallow level drilling has not produced economic mineralisation, the results and geological characteristics are similar to the Manantial vein, where subsequent deeper drilling was required to encounter the high-grade vein. The Company believes both targets justify further exploration and drilling programs:

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• La Puerta - initial drilling along 200 metres of the La Puerta vein returned a limited number of low-grade, narrow anomalies at shallow levels, compared with the high-grades on surface; and

• Julieta Norte - the system appears to be plunging deeply to the north and any future drilling would focus on the system at greater depths. The deposit appears to be an extension of the nearby Troy Resources‟ Julieta satellite deposit, which contains a defined gold and silver resource.

Next Steps

Due to the onset of winter and the Company‟s significant exploration commitment in Chile, all the on-ground exploration activities at Manantiales will be deferred until Spring (September 2012). The Company will focus on compiling all the results produced to date for future exploration and drill planning purposes.

For more information, please contact:

Corey Nolan

Managing Director Phone: +61 (7) 3221 7770 Email: admin@elementos.com.au

Elementos is an Australian, ASX-listed, exploration company, with a number of projects in Chile, Argentina and Australia, which offer an attractive investment environment. The properties are all in mineral rich, highly prospective provinces, with developed infrastructure nearby. Please visit us at www.elementos.com.au

SAMPLE QUALITY CONTROL AND ASSURANCE

All sample widths presented are Intersection or Apparent Widths and may not represent the true widths of the mineralisation. Assay results presented are Certified Final Assays. A 0.5ppm gold cut-off grade was used at the beginning and end of the reported mineralised intersects. Low-grade zones less than two metres width within an intersection were included in the intersection. No upper cut-off was applied. The core was split equally using a diamond-blade saw. One half of the core was selected for sampling. Sample intervals were 1.0m or to geological criteria. Sample widths were limited at between 0.3 and 1.0m. No compositing of samples was used. Holes MDH001 and MDH002 are HQ3. Holes MDH034, 35, 36, 37, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51 and 52 are HQ. All other holes are NTW.

Samples were prepared at the Acme Analytical Laboratories (“AcmeLabs”) preparation facility in Mendoza, Argentina and assayed by fire assay (50 gram charge) at AcmeLabs in Chile, and for ICP-MS 32 elements (15 grams charge) at AcmeLabs in Vancouver, all ISO-9001:2000 certified laboratories.

Check assaying of all samples assaying greater than 1.0 g/t gold is completed by AcmeLabs. Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are assayed using gravimetric analyses. Standard, blank and duplicates samples are used throughout the sample sequence as checks for the diamond drilling reported in this release.

CORE LOGGING AND ORIENTATION

All diamond-core was logged for geological and geotechnical characteristics, core recovery, and orientated using the Ballmark system excepting holes MDH053 and MDH054. Average recovery for the entire program was over 96% in both vein and wall rock. Downhole surveys were conducted using a Reflex single-shot camera at a maximum 50 metre spacing.

COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Gustavo Delendatti, a member of the Australian Institute of Geoscientists. Mr Delendatti is a full-time employee of Elementos Ltd and its subsidiaries, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.‟ Mr Delendatti consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Figure 3: Updated longitudinal section showing g/t gold x metre distribution along the main Manantial vein.

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Table 1: Manantiales - summary of the Phase IIE drilling intersections using 0.5 g/t gold cut-off grade

Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade	Table 1:Manantiales - summaryof the Phase IIE drillingintersections using0.5g/tgold cut-offgrade
		Collar Coordinates (GK/CI f2)1				Collar Surveys2				Significant Intersections
Hole ID	Prospect	Northing, m	Easting, m	Altitude, m	End of Hole	Azimuth	Inclination	From, m	To, m	Length, m3	Au ppm4	Ag ppm	Core Recovery %5
MDH053	Manantial	2432301	6552739	3310	279.95	270	-51	NSR
MDH054	Manantial	2432318	6552792	3338	326.10	270	-60	298.93	303.62	4.70	1.53	17.24	94.1
including								298.93	301.75	2.82	2.27	10.97	99.7
including								298.93	299.25	0.32	6.02	17.00	100.0

• Notes: ¹ All coordinates are reported in Gauss Krugger, Campo Inchauspe, Band 2 and surveyed by a qualified surveyor using a Differential GPS.

• ² All Azimuths are reported in degrees relative to Magnetic North. Orientation data presented in Table 1 represents collar data.

• ³ All sample widths are Intersection or Apparent Widths and may not represent the true widths of the mineralisation.

• ⁴ Assay results presented are Certified Final Assays. A 0.5ppm gold cut-off grade was used at the beginning and end of the reported mineralised intersects. Low-grade zones less than two metres width within an intersection were included in the intersection. No upper cut-off was applied.

• ⁵ Core recoveries presented are for the mineralised intervals only and are not representative of the entire drill hole. NSR: No Significant Results.

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