ELEVRA LITHIUM LIMITED — Interim / Quarterly Report 2007

Jan 30, 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

31 January 2008

QUARTERLY ACTIVITIES REPORT

FOR THE QUARTER ENDING 31 DECEMBER 2007

• Construction at the Lerala diamond mine continues

• Above normal rainfall delays Lerala plant commissioning 1 month

• Lerala plant commission completion expected in May 2008

• Exploration activity continuing

The Lerala diamond mine in eastern Botswana, 100% owned by DiamonEx Limited (DiamonEx), 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.

Lerala Diamond Mine (DiamonEx 100%)

The earlier than anticipated arrival of the summer wet season in the Lerala area has caused delays to the construction of the diamond processing plant.

These delays have been principally associated with lack of mobility of the large cranes on site due to wet unstable ground conditions and workplace safety issues associated with erecting steelwork under wet conditions

These delays combined with other delays caused by late delivery to site of some job lots and poor performance by some manufacturers/suppliers has meant that project completion has currently slipped by approximately one month, with commissioning now not expected to be completed until May.

On site, management is addressing these delays through bringing on extra working crews and is hopeful of reducing this slippage. In addition, the Project Manager has appointed a team of project scheduling specialists to review and optimize the completion schedule. However some additional delays may be caused over the next 2 months because of the ongoing wet season.

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Water supply for the plant and site is nearing completion. The main water pipe line from Seleka Farm (on the banks of the Limpopo River) is 98% complete with the pump station being 90% complete.

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Above. Construction of process water dam. Abnormal wet season has slowed construction.

Below. Conveyor structures with thickener in background

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EXPLORATION

Botswana

Martin’s Drift Prospecting Licence (Diamonex 100%)

The Company is actively exploring the Prospecting Licences (PL’s 86/87 2002 and 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 not expected until the second quarter 2008.

Tuli Prospecting Licences (Diamonex 100%)

Processing of surface samples taken in follow up to the airborne spectral imaging survey continued this quarter and compilation of the results will occur during the March 2008 quarter to determine the spatial significance of any potential kimberlitic indicators noted visually.

Future exploration will begin to concentrate on follow up of known anomalous stream sediment samples for diamonds (DeBeers samples) and some areas of scattered kimberlitic indicators for which no source has ever been found.

Diamonex is also looking to focus stream sediment and soil sampling programs along the Karoo – Basement contacts. Two targets are proposed:

• 1: Young, post Karoo kimberlite pipes ( such as Orapa Age Pipe 80 Ma ) along faulted contacts.

• 2: Pre Karoo kimberlites (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 in the second quarter of 2008.

Jwaneng Prospecting Licences (Diamonex 100%)

A preliminary airborne magnetic interpretation by Lorotech Geophysics Consulting of Melbourne has defined 19 targets worthy of further follow up surface sampling. Diamonex intends to commence a surface sampling program in April 2008 over these and any other defined targets generated from research into previous exploration results.

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USA

Sloan’s 1 & 2 Prospecting Rights

Diamonex announced during the quarter ( see announcement dated 5[th] Nov 2007) that it had secured surface and mineral rights under a 5 year option agreement to evaluate the Sloan’s 1 & 2 kimberlite Pipes located in the State Line District of Colorado.

Previous exploration over the 9.3 hectare kimberlite pipes included narrow diameter drilling, surface pit bulk sampling and the construction of an underground exploration adit. Bulk sampling from the adit has indicated grades ranging from 7.2 to 21.6 carats per hundred tonnes (cpht). Surface pit bulk sampling of 50 tons each, have returned grades in the range 1.2 to 59.7 cpht. Two deeper drill holes intersected kimberlite down to depths of 127m and 172m.

DiamonEx considers these historical results very encouraging and justifing a proper evaluation process to determine the commerciality of the pipes.

Diamonex is currently evaluating numerous options for a bulk sampling program to be conducted as soon as weather conditions permit. The aim of this program is to produce a large parcel (+ 3,000 carats) of diamonds for valuation. Planning is also in progress to conduct a Large Diameter Drilling program to establish the overall diamond grade of the pipes.

Regional

Diamonex Claims

Diamonex has also pegged several claims in the State Line District as follow up to several geomorphological anomalies (lake depressions) which might reflect underlying kimberlite bodies. Drilling programs are currently being designed for up to 7 areas (Creedmore Lakes, Lost Lakes, Molly Lake, South & North Lone Pine, Bull Garden and Happy Jack) and a suitable drill rig is being sourced in order to commence a drilling program when weather and ground conditions allow after the winter thaw.

Targets

Numerous other targets have been generated by the USA exploration team which will probably lead to additional claims to be pegged in the spring as access becomes available.

Funding

In December, 2007 DiamonEx Limited announced that it has placed 9,070,000 shares with Namibia based Standard African Equity Fund. These shares were placed at A$0.37 per share to raise A$3,355,900.

These funds will be used to continue exploration on the Company’s Botswana prospecting licences, commence evaluation of the recently acquired

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diamondiferous Sloan 1 and 2 kimberlite pipes, in the United States of America and provide additional working capital.

DiamonEx is implementing a strategy of acquiring and developing advanced diamond exploration projects on a global basis. Capital raised from the planned placements will assist in funding this strategy.

Diamonex also advised that it has granted 1,000,000 options to Alchemy Securities Pty Ltd, a nominee of RFC Corporate Finance Limited, approved by shareholders at the recent Annual General Meeting. The options were issued pursuant to an agreement to provide services as the Company’s Nominated Advisor in relation to our AIM listing.

For and on behalf of the Board

Paul Crawford Company Secretary

For further information contact:

Dan O’Neill (Managing Director) +61 7 37208944 (Office) +61 7 37208988 (Fax) +61 407596942 (Mobile) Email: diamonex@diamonex.com.au

Greg King (Chairman) +61 7 37208944 (Office) +61 7 37208988 (Fax) +61 411473730 (Mobile) Email: diamonex@diamonex.com.au

Will Souter or Rob Adamson

RFC Corporate Finance Ltd (Nomad) Tel: +612 9250 0050/+612 9250 0041 Email: will.souter@rfc.com.au Email: rob.adamson@rfc.com.au

Richard Hail

Fox-Davies Capital Ltd (AIM Broker) Telephone: +44(0) 20 7936 5200 Email: Richard.Hail@fdcap.com

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 DECMBER 2007
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 (232) (440)
(b) development (8,289) (13,359)
(c) production
(d) administration (339) (1,140)
1.3 Dividends received
1.4 Interest and other items of a similar nature received 72 116
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material)
(8,788) (14,823)
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 (43) (115)
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)
(43) (115)
Net investing cash flows
1.13 Total operating and investing cash flows (carried
(8,831) (14,938)
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)	(8,831)	(14,938)
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	3,356 (220)	10,572 9,260 (708)
	3,136	19,124
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	(5,695) 10,752 2	4,186 878 (5)
	5,059	5,059

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
		180
		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.

Appendix 5B Page 2

30/9/2001

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
	8,393	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
	5,200
Total	5,550

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)	2,390	1,560
	2,669	9,012
Total: cash at end of quarter(item 1.22)	5,059	10,752

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

30/9/2001

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	140,461,075	140,461,075
	9,070,000	9,070,000	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	2,000,000 1,000,433 1,000,000	nil nil nil	Exercise price 35 cents 37 cents 30 cents	Expiry date 28 December 2011 22 October 2010 1 November 2010
	1,000,433 1,000,000	nil nil	37 cents 30 cents	22 October 2011 1 November 2010
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: 31 January 2008 (Director/Company secretary)

Print name: Paul Crawford

• See chapter 19 for defined terms.

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30/9/2001

Appendix 5B Mining exploration entity quarterly report

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.

Appendix 5B Page 5

30/9/2001