ELEVRA LITHIUM LIMITED — Interim / Quarterly Report 2007

Jul 30, 2007

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DiamonEx Limited ABN 26 091 951 978

Level 1 349 Coronation Drive Milton Qld 4064 Australia

Telephone: +61 7 3720 8944 Facsimile: +61 7 3720 8988 e-mail : diamonex@diamonex.com.au Postal Address: PO Box 1357 Milton Qld 4064

ASX ANNOUNCEMENTS AUSTRALIAN STOCK EXCHANGE

31 July 2007

QUARTERLY ACTIVITIES REPORT

FOR THE QUARTER ENDING 30 JUNE 2007

• Development of Lerala diamond mine continued

• Mining to commence late 2007, production early 2008

• Final project funding arranged

Construction continued at the Lerala diamond mine site in Botswana during the quarter. Final funding arrangements were concluded, comprising an $A8 million share placement to institutional investors in London and the issue of a Pula 50 million (approx $A10million) convertible bond underwritten through Fleming Advisors (Pty) Ltd in Botswana. Mining at the 330,000 carat per year project is scheduled to start late in 2007 with the first production of diamonds from the mine due in early 2008.

Lerala Diamond Mine (DiamonEx 100%)

Detailed design approached completion in all areas of the project during the quarter while construction proceeded on site.

Processing plant and civil works

The foundations are an estimated 75% complete. Half the structural steel has been delivered to site and is being erected progressively. The camp has been completed and is approaching final sign off. Delivery of the conveyor to the site has commenced. Off site fabrication of plant and equipment is well advanced.

Mine planning

The initial open pit designs for optimisation are nearing completion and are expected to be signed off in the next month . The mining contractor is due to start construction of water and waste dams this week, to be followed by pit preparation and initial run-of-mine stockpile.

Operations

With commissioning of the plant and equipment approximately six months away, planning of operational processes and controls have been completed, and commissioning procedures should be fully established within the next month.

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Secondary Crusher Housing

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Primary Crusher Housing

Water supply – An agreement with the land owner of the bore field has been negotiated. An Environmental Impact Assessment of the bore field and associated pipeline to deliver water to the mine site has been submitted to the Department of Environmental Affairs with approval of the EIA expected during the current September quarter.

Exploration

Martin’s Drift Prospecting Licence (DiamonEx 100%)

The company is actively exploring four Prospecting Licences covering 350sq km surrounding the Lerala Mining Licence.

Previous sampling by Diamonex had located four areas (areas 2, 3, 5 and 6) where kimberlite indicator minerals had been discovered. During the quarter closer spaced grid soil sampling (100m grid) was completed over three of these areas (areas 2, 5, and 6). Samples were processed on site and the concentrates then consigned to the company’s Gaborone laboratory for kimberlitic mineral sorting. Samples from area 5 have been processed with results being negative.

Tuli Project (DiamonEx 100%)

DiamonEx is exploring an area of 12,400 sq km adjacent to its Martin’s Drift Prospecting Licence in the prospective Limpopo Mobile Belt which is host to several diamond deposits.

An airborne spectral imaging survey was undertaken during the December 2006 quarter, covering part of the Tuli Licences and all of the Martin’s Drift Prospecting Licences. This survey generated 75 anomalous targets, over which the company began ground follow up during the June quarter . Results of this work are still being processed

South East Botswana (DiamonEx 100%)

DiamonEx has five Prospecting Licences covering 3,200 sq km of the prospective Kaapvaal Craton, all within an 80 km radius of the Jwaneng diamond mine. No work was conducted during the quarter .

Funding

In July, DiamonEx announced final funding arrangements to take the Lerala project into production.

Fleming Advisors (Pty) Ltd, a Fleming Group company, arranged underwritten funding for a BWP 50 million (approximately A$10 million) fixed rate convertible bond to be issued by DiamonEx. A successful share placement of approximately A$8 million was made to international investors through London-based broker Fox-Davies Capital Limited, subject to DiamonEx shareholder approval at a meeting called for 20 August.

Corporate

Listing by DiamonEx on the Alternative Investment Market (AIM) in London is now expected to occur later this year. Planning for the admission to AIM is well advanced, with RFC Corporate Finance Limited appointed the Nominated Adviser for the listing. The AIM listing is expected to provide access to trading in the company’s shares in London for international institutional investors that are familiar with investment opportunities offered by diamond production projects in African countries such as Botswana.

Outlook for the September 2007 Quarter

Construction of the Lerala diamond mining project will continue towards the commencement of mining in late 2007 and first production in early 2008.

Exploration will continue over the remaining three prospective areas within the Martin’s Drift tenements as well as further ground follow up on the anomalies generated by the spectral survey at Martin’s Drift and the Tuli Block

For further information, contact:

Dan O’Neill (Managing Director) Greg King (Chairman) +61 7 33696399 (Office) +61 7 33696399 (Office) +61 7 33696077 (Fax) +61 7 33696077 (Fax) +61 407596942 (Mobile) +61 411473730 (Mobile) diamonex@diamonex.com.au (Email) diamonex@diamonex.com.au (Email)

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

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Name of entity
DIAMONEX LIMITED
ABN Quarter ended (“current quarter”)
26 091 951 978 30 JUNE 2007
Consolidated statement of cash flows
Year to date
Current quarter
Cash flows related to operating activities (12 months)
$A’000
$A’000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration and evaluation (125) (2,713)
(b) development (3,342) (5,142)
(c) production
(d) administration (728) (1,485)
1.3 Dividends received
1.4 Interest and other items of a similar nature received 35 118
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material)
(4,160) (9,222)
Net Operating Cash Flows
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets (652) (894)
1.9 Proceeds from sale of: (a)prospects
(b)equity investments
(c)other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (provide details if material)
(652) (894)
Net investing cash flows
1.13 Total operating and investing cash flows (carried
(4,812) (10,116)
forward)
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• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(4,812)	(10,116)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	5,471	7,971
	5,471	7,971
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	659 243 (24)	(2,145) 3,082 (59)
	878	878

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		161
		Nil
1.25	Explanation necessaryfor an understandingof the transactions
	Executive Directors salary - $100,000 Services by entities associated with non-executive directors - $60,573

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

nil

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

nil

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	659
	6,429
Total	7,088

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	878	243
Total: cash at end of quarter(item 1.22)	878	243

Changes in interests in mining tenements

Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference+securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs,redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	108,112,863	108,112,863
	17,649,408 -	17,649,408 -	31 cents	31 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	2,000,000	nil	Exercise price 35 cents	Expiry date 28 December 2011
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

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

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Sign here: ............................................................ Date: 31 July 2007 (Director/Company secretary)

Print name: Paul Crawford

Notes

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

Appendix 5B Page 5

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