December 2023 Quarterly Report

Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to present its Quarterly Activities and Cash Flow Report.

QUARTERLY HIGHLIGHTS

Butcherbird Manganese Operations, Western Australia

• Butcherbird Expansion Feasibility Study targets 1.1 million tonnes per annum (Mtpa) manganese production.
• Study demonstrates strong fundamentals, with robust economic returns and rapid capital payback:

• Expansion envisages expanded open-cut mining methods, modified primary comminution circuit and dense media separation (DMS) back-end solution to optimise grade and recoveries.
  
• Expanded operation will establish Butcherbird as a low-cost Mn operation with a US$2.76/dmtu C1 FOB cost – which will ensure sustainable profitability at lower manganese prices compared to the current pilot operation.
• Low capital cost of A$49.8M with annual operation cashflow of A$57.3M at full production – payback period of 14 months from start of operations.
• Study used all available Measured and Indicated Resources within the mine plan to support a 7.2-year mine life – which represents 36% of the total mineral resource inventory within granted mining lease M52/1074.
• E25 plans to undertake infill drilling in areas containing Inferred Resources, outside the current mine plan, within the next 12 months targeting an additional 20-25 years of mine reserves at the proposed production levels.

• E25 approved for US$57 million of tax incentives under Louisiana State’s Industrial Tax Exempt Program (ITEP).
• Two key international patents lodged under the Patent Co-Operation Treaty, expected to be processed in 2024.

Corporate

• Non-Executive Director John Ribbons was appointed Chairman following Seamus Cornelius’ decision to step down from E25 Board.

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