Quarterly Report

Element 25 Limited (E25 or the Company) (ASX:E25) is pleased to present its Quarterly Report.

Highlights

Butcherbird Manganese Operations, WA

• Production up 22% on last quarter to 62.2kt, with sales up 218% to 62.4kt helped by inventory destocking.
  
• Cashflow positive quarter achieved, driven by improved production and sales.
• Installation of secondary feeder in February 2023 has significantly debottlenecked front end feed rates in processing plant resulting in an immediate and material throughput improvement.
• Improved March production highlighted by achievement of 24-hour record production of 1,859t, well above 1,000 tpd nameplate.
• Cash margin per tonne substantially increased at increased production rates following installation of the secondary feeder as unit cash costs are reduced due to higher volumes.
• Plant uptime campaign continues, to further improve plant availability through maintenance system enhancements.

High Purity Manganese (HPMSM) Project

• HPMSM Feasibility Studies in final stages of completion and peer review, due for release this month.
  
• Activities for next quarter to include:
• oEvaluation of engineering construction contractor proposals, permitting applications and site based surveys
• oMajor packages early commencement of engineering design and awarding of front-end engineering design (FEED) contract.
• Definitive agreements signed with global automaker Stellantis to supply of HPMSM for Stellantis’ EV battery requirements.

ESG

• Supersmart Energy delivers cradle to gate independent Life Cycle Assessment (LCA) on E25’s HPMSM process.
  
• Assessment covers Scope 1,2 and 3 emissions including mining and concentration facilities in WA and the proposed USA-based HPMSM processing plant.
• E25 HPMSM calculated to produce ~1.7kg of CO2 for every 1kg of HPMSM, approximately 67% lower than current producers in China.
• Approximately 67% lower than competitors in China and up to ~26% lower than closest non-China competitors optimized case.
• Further reduction opportunities identified in the LCA report.

Corporate

• At-the-Market Subscription Agreement (“ATM”) provides E25 with up to $30M funding over three years as it continues development of its battery-grade high purity manganese sulphate (HPMSM) processing capabilities.
  
• Board of Directors enhanced with the appointment of experienced manganese miner and analytical chemist Fanie van Jaarsveld and experienced chemical engineer Sam Lancuba.

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