March 2024 Quarterly Report

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

Butcherbird Manganese Operations, Western Australia

• Detailed design, planning and procurement commences for Stage 2 Expansion Project to expand Butcherbird manganese ore production to 1.1 million tonnes per annum in line with a Feasibility Study (FS) completed in January 2024¹.
• Northern Australia Infrastructure Facility (NAIF) completes a strategic assessment of Butcherbird Stage 2 Expansion Project.
• Expansion Project is now proceeding with the detailed due diligence phase of NAIF’s assessment process.
• Manganese ore prices increasing, potentially in response to the South 32 Limited (S32) production disruption at Groote Eylandt. S32 is now estimating a repair timeline of ~12 months².

Battery Grade High Purity Manganese (HPMSM) Development – Louisiana, USA

• E25 progresses engineering development, permitting, logistics and project financing via offtake and funding agreements for HPMSM facility in USA.
• Air Permit public meeting successfully completed paving the way for the formal issuance of the permit.

BUTCHERBIRD OPERATIONS

Expansion Plans

In January 2024, Element 25 Limited (E25, the Company) released a Feasibility Study (FS) on the proposed expansion of its 100%-owned Butcherbird Manganese Operations in Western Australia (WA) to target manganese concentrate production of 1.1 million tonnes per annum (Mtpa). The FS demonstrated strong economics with robust economic returns and rapid capital payback.

Expansion of the processing facility at Butcherbird is an important step in providing feedstock for the Company’s planned battery grade high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV³.

E25 is now, via a dedicated owners team supported by selected external contractors and consultants, advancing detailed design, planning and procurement activities for the Stage 2 expansion in parallel with financing.

Figure 1. Butcherbird Expansion Project Feasibility Study Summary4.

In parallel with expansion activities, the Company suspended Butcherbird’s current production operations, aiming to reduce operational cash outflows and re-focus resources and available cash on implementing the expansion plan outlined in the FS.

50,540mt of manganese concentrate was shipped on 27 January 2024. Approximately 15,000mt of manganese concentrate was subsequently transported to Port Hedland and will form part of a shipment scheduled to be loaded in early May 2024 (estimated). Stockpiles have now been depleted in line with care and maintenance activities on site, with haulage winding back and ultimately ceasing in early March 2024.

The current schedule anticipates operations to recommence in approximately 11 months following project financing being secured, when E25 plans to increase annual production to 1.1 million tonnes per annum of manganese oxide concentrate. Further detail and an updated schedule will be provided as the project team works through front-end engineering and design (FEED) activities.

Northern Australia Infrastructure Facility Strategic Assessment

During the quarter, the Northern Australia Infrastructure Facility (NAIF successfully completed a strategic assessment of the Butcherbird Stage 2 Expansion Project. The Expansion Project is now proceeding to the detailed due diligence phase of the NAIF assessment process.

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