Element 25 Interim Financial Report For The Half Year Ended 31 December 2022

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

Element 25 Limited (E25 or the Company) is the operator of the Butcherbird Manganese Project (Butcherbird or Project) which hosts Australia’s largest onshore manganese resource with current JORC resources of more than 260Mt of manganese ore1.

Butcherbird is located 1,050 km north of Perth and 130km south of Newman in the Pilbara region of Western Australia. The Company plans to integrate renewable energy into the power solution over time to target

a zero-carbon footprint for the Project, which is expected to also reduce energy costs.

E25’s goal is to become an industry leading, world class, low-carbon battery materials manufacturer, producing high quality manganese concentrate and battery grade High Purity Manganese Sulphate Monohydrate (HPMSM) products for traditional and new energy markets.

To set the baseline for an Environmental, Social. and Governance (ESG) focus on project development, E25 has commissioned a Life Cycle Assessment (LCA) to allow the E25 manganese supply chain to be benchmarked against competitors and demonstrate our low carbon credentials to customers.

E25’s export business continues to demonstrate the Company’s reliability as a trusted supplier of manganese concentrate to global markets, at a time when commodity producers are facing extensive disruptions from a complex array of factors.

Key operational milestones achieved during the first six months of the year include:

• Manganese concentrate production of 101Kt.
  
• Completion of a 280t bulk processing trial using an established production dense media separation (DMS) plant. Results confirm DMS as the preferred processing technology for expansion.
• Successful pilot scale testing of the proprietary E25 process flowsheet as a foundation of the Feasibility Study.
  • Progressed discussion on securing site in Malaysia for the construction of a HPMSM conversion facility.
  • Accelerated development of a USA construction option for a HPMSM facility to align with offtake partner requirements to comply with the Inflation Reduction act provision.
  • Element 25 Ltd (E25) and Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) (Stellantis) sign definitive agreements for the supply of HPMSM for Stellantis’ EV battery requirements.

Safety

For the six months ending December 2022, E25 sustained two Lost Time Injuries (LTI's) and one Medical Treatment Injuries (MTI's), all of which were minor in nature.

Several proactive programs have been instigated including an independent audit of the Company’s Safety Management System, increased first aid training and the engagement of an external safety consultant to review safety systems in accordance with new legislative requirements. These initiatives will continue throughout H1 2023.

The Company has also commenced implementation of the Department of Mines, Industry Regulations and Safety (DMIRS) Safety Audits and will use the outcomes to assist with safety program development going forward.

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