ELEVRA LITHIUM LIMITED — Interim / Quarterly Report 2008

Apr 27, 2008

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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 Postal Address: PO Box 1357 Milton Qld 4064

ASX ANNOUNCEMENT AUSTRALIAN SECURITIES EXCHANGE

28 April 2008

QUARTERLY ACTIVITIES REPORT FOR THE THIRD QUARTER ENDING 31 MARCH 2008

• Construction at the Lerala diamond mine in final stages of completion with plant commissioning underway

• 4.8 MW capacity diesel generators installed on site insulating the mine from Southern African power problems

• Full scale diamond production to start June 2008

• Drilling planned for 19 targets at the company’s Jwaneng project area in southern Botswana

• Additional diamond Prospecting Licences lodged in Botswana

• Permitting process commenced in Colorado USA for bulk sampling of the Sloan diamondiferous kimberlitic pipe

The 100% owned Lerala diamond mine in eastern Botswana, has an established 3.7 million carat diamond resource and is scheduled to produce an average of 330,000 carats per year for 10 years.

PRODUCTION

The Lerala Diamond Mine (DiamonEx 100%)

The commissioning phase for the Lerala Mine commenced in April with full-scale production of diamonds scheduled for June 2008. First diamonds will be processed and ready for sale in July 2008 through WWW International Diamond Consultants - one of the world’s leading diamond marketing and valuation companies (WWW IDC).

Commissioning of the Mine marks the final phase of an 18-month construction project. While there have been delays in reaching this point due to the high regional demand for fabricated steel products and equipment, coupled with unseasonably heavy rains, the company is very pleased to be bringing Lerala into production in such a short time frame. The Lerala Mine has a brand new, purpose built, Dense Media Separation Plant (DMS), with 200 tonne per hour through-put capacity that utilises state of the art HPGR crushing technology.

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The DMS Plant nearing completion at Lerala Mine

The installation of 12 synchronised 400 kVa generators (4.8 MW) ensures the Lerala Mine will be unaffected by electricity supply problems experienced in Southern Africa.

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Diesel generators and fuel dump at Lerala Mine

The economics of the Lerala Mine continue to look strong. Any drop in sales revenue from the weakening US dollar is offset by an even weaker Botswana pula resulting in lower operating costs. Since the company completed its feasibility study in 2005, there has been a constant increase in rough diamond prices with WWW IDC forecasting continuing long term growth taking into account the down turn in the US economy.

EVALUATION

Sloan Mineral Rights, Northern Colorado, USA (Diamonex 100%)

A detailed review of exploration and evaluation activities undertaken over the last 30 years in the 9.3 hectare Sloan kimberlite pipe has now been completed. As a result, the Company has decided to

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undertake a bulk sampling program to recover approximately 5,000 carats of diamonds and obtain an indicative value for the diamonds in the Sloan kimberlite pipe.

The grades established by previous explorers indicate an average of 14 carats per hundred tonnes (cpht) from an adit driven part way into the pipe (9,000 diamonds recovered), but also contains grades up to 60cpht from individual pits derived from an extensive pit sampling programme (21,000 diamonds recovered).

Once the bulk sample has been completed, and the results assessed to indicate the potential value of the diamonds, the company will proceed to a large diameter drill programme to determine the grade of the pipe at depth and to provide sufficient data for a JORC compliant resource to be established.

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The permitting process to allow this work to proceed has been initiated with the Laramie County, and the company has engaged Fort Collins based mining services company Tetra Tech, as its consultants in this matter.

EXPLORATION

Jwaneng Prospecting Licences, Botswana (Diamonex 100%)

Following a further study of the nature of the 19 magnetic anomalies identified within the Jwaneng project area and in light of the relatively thin Kalahari sand cover (0-30 metres) in this region, a decision has been made to move immediately to drill test these anomalies by the end of 2008.

Martin’s Drift Prospecting Licence, Botswana (Diamonex 100%)

The company is actively exploring the Prospecting Licences (PL 86/87 2002 and PL 39/40 2003) surrounding the Lerala Mining Licence. Soil sampling for kimberlitic indicator minerals continues immediately south of Kimberlite Pipe K002 along an ENE trending structure that intersects the overall Lerala Kimberlitic Pipes NNE trend. Results are expected by June 2008.

Tuli Prospecting Licences, Botswana (Diamonex 100%)

Significant datasets of previous sampling carried out by DeBeers and Rio Tinto has now been incorporated into the Tuli project data base. Validation of positive kimberlitic minerals identified from this work is being carried out prior to follow up sampling.

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As advised in the previous quarter processing of surface samples taken after follow up of the airborne spectral imaging survey continued this quarter and compilation of the results will occur by December 2008 to determine the spatial significance of any potential kimberlitic indicators noted visually.

Future exploration will focus on following up known anomalous stream sediment samples for diamonds (DeBeers samples) and some areas of scattered kimberlitic indicators for which no source has ever been found. The company is also looking to focus stream sediment and soil sampling programs along the Karoo - basement contacts. Two targets are proposed:

• Young, post Karoo kimberlitic pipes (such as Orapa Age Pipe 80 Ma) along faulted contacts; and

• Pre Karoo kimberlitic pipes (Venetia and Lerala aged Pipes 1130 Ma) partially covered by overlying unconformable Karoo basal sandstones.

New targets are to be generated by a proposed airborne magnetic interpretation combined with research of newly acquired previous exploration company data for the entire Tuli region. It is expected that follow up reconnaissance surface sampling of these targets will commence by June 2008.

New Applications in Botswana

During the quarter the company applied for two further Prospecting Licences for diamonds in the Orapa and Gope North areas. Additional applications are planned to be submitted during the year.

CORPORATE

Funding

At the end of the quarter the Company held cash of A$2.0 million. The first tranche of the A$8.4 million EIB Facility will be drawn down in April 2008. The balance of the facility will be drawn down over the June 2008 quarter.

In January 2008 the Company completed a placement of shares, largely with institutional investors in London at a price of A$0.37 raising A$3.1 million.

Recent Research Coverage

Two research reports have been released by our AIM Broker, Fox Davies Securities, and the Londonbased independent research house, Edison Investment Research. These reports are available from the company’s website www.diamonex.com.au

Management Team

As DiamonEx moves from a pure explorer to a producer/explorer it has been necessary to add new skills to the management team of the Company.

• Mark Gray , Head of Corporate Development: Mark is responsible for developing the strategy to grow the company. A lawyer, Mark was a director of London-based investment bank Barclays de Zoete Wedd in the 1990’s before becoming a Partner in a major New Zealand law firm. More recently Mark was a founding shareholder and Managing Director of an ASX listed contract coal mining services company.

• Mike Seed , Exploration Manager: Mike is a geologist with more than 25 years experience, with the last 5 fives exploring and evaluating Kimberlites in South Africa. Mike has worked extensively on exploration projects throughout Australia and internationally in many different resources.

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• Carl Brink , Exploration & Production Manager: Carl is a metallurgist with more than 25 years experience in the diamond sector in Southern Africa, Canada and the United States. Carl has joined our US team and is responsible for managing the Sloan exploration and bulk sampling programme. Carl was part of the team that commissioned Venetia, and was a Plant Manager, and Site Superintendent at Ekati for several years.

New Website

The company recently completed the rebuild and redesign of its website. Please note that your computer may continue to divert to the old site unless you clear the cache memory. To see the new site, you may have to clear your browsing history and temporary internet files, followed by a reboot of your computer.

OUTLOOK FOR THE NEXT QUARTER

The company’s primary focus for the last quarter of this financial year is to commission and commence full production at the Lerala Mine and to be cash flow positive by the end of 2008.

For and on behalf of the Board

Paul Crawford

Company Secretary

For further information contact:

Dan O’Neill	Dan O’Neill	Mark Gray
Managing Director		Corporate Development
Tel:	+ 61 7 37208944	Tel:	+ 61 7 37208944
Fax:	+ 61 7 37208988	Fax:	+ 61 7 37208988
Mob:	+ 61 407596942	Mob:	+ 61 412899979
Email:	diamonex@diamonex.com.au	Email:	diamonex@diamonex.com.au
Will Souter or Rob Adamson		Richard Hail
RFC Corporate Finance Ltd (Nomad)		Fox-Davies Capital Ltd (AIM Broker)
Tel:	+ 612 9250 0050	Tel:	+ 44 20 7936 5200
	+ 612 9250 0041
Email:	will.souter@rfc.com.au	Email:	Richard.Hail@fdcap.com
	rob.adamson@rfc.com.au

The information in this report that relates to Exploration Results is based on information compiled by Mr Dan O’Neill who is a member of the Australian Institute of Geoscientists and a full time employee of DiamonEx Limited. Mr O’Neill 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 O’Neill 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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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 31 MARCH 2008
Consolidated statement of cash flows
Year to date
Current quarter
Cash flows related to operating activities (3 months)
$A’000
$A’000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration and evaluation (199) (639)
(b) development (4,760) (18,119)
(c) production
(d) administration (214) (1,354)
1.3 Dividends received
1.4 Interest and other items of a similar nature received 14 130
1.5 Interest and other costs of finance paid (558) (558)
1.6 Income taxes paid
1.7 Other (provide details if material)
(5,717) (20,540)
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 (52) (167)
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)
(52) (167)
Net investing cash flows
1.13 Total operating and investing cash flows (carried
(5,769) (20,707)
forward)
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• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(5,769)	(20,707)
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: Cost of share issue Net financing cash flows	3,129 (326)	13,701 9,260 (1,034)
	2,803	21,927
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	(2,966) 5,059 (88)	1,220 878 (93)
	2,005	2,005

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
		100
		Nil
1.25	Explanation necessaryfor an understandingof the transactions

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.

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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
	8,400	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
	350
	8,000
Total	8,350

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)	713	2,390
	1,292	2,669
Total: cash at end of quarter(item 1.22)	2,005	5,059

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.

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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	148,918,075	148,918,075
	8,457,000	8,457,000	37 cents	37 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	Convertible bonds issued in Botswana. Up to 10% of the bonds are convertible to up to 50,000 ordinary shares of the Company at BPW1.83 on 3 September 2011.(Note 1)
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	422,850 2,000,000 1,000,433 1,000,000	nil nil nil nil	Exercise price 37 cents 35 cents 37 cents 30 cents	Expiry date 16 January 2011 28 December 2011 22 October 2010 1 November 2010
	422,850	nil	37 cents	16 January 2011
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Note 1: Application has been made to the Botswana Stock Exchange for listing of these securities.

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: 28 April 2008 (Director/Company secretary)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Print name: Paul Crawford

Notes

• 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.

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30/9/2001