Elementos : Half Yearly Report and Accounts

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CONSOLIDATED HALF YEAR REPORT
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For the half year ended 31 December 2021
ABN 49 138 468 756
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Contents
Cautionary Statements	2	Consolidated Statement of Changes in Equity
Corporate Information	3	Consolidated Statement of Cash Flows
Directors' Report	4	Notes to the Financial Statements
For		Directors' Declaration
Auditor's Independence Declaration	13
Consolidated Statement of Comprehensive Income	14	Independent Auditor's Review Report
Consolidated Statement of Financial Position	15

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Cleveland JORC Resource Significantly Expanded, 5 March 2014 (tungsten resource); Acquisition of the Oropesa Tin Project, 31st July 2018;

Substantial Increase in Cleveland Open Pit Project Resources following revised JORC study, 26th September 2018; Positive Economic Study for the Oropesa Tin Project, 7th May 2020;

Oropesa optimisation work and drilling to unlock further value, 13th July 2020; Oropesa Tin Project Final Assay Result, 28 Sep 2021

Oropesa Tin Project - Mineral Resource Estimate, 8 Nov 2021 Oropesa Tin Project Optimisation Study, 3 Dec 2021

Positive Economic Study for the Oropesa Tin Project, 7 May 2020 Oropesa DFS Commencement, 12 July 2021

ELEMENTOS LTD - ABN 49 138 468 756INTERIM FINANCIAL REPORT 2022

Cautionary Statements

Forward-looking statements

This document may contain certain forward-looking statements. Such statements are only predictions, based on certain assumptions and onlyinvolve known and unknown risks, uncertainties and other factors, many of which are beyond the company's control. Actual events or

results may differ materially from the events or results expected or implied in any forward-looking statement.

The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward-looking statements will be or are likely to be fulfilled. Elementos undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this document (subject to securities exchange disclosure requirements).

The information in this document does not take into account the objectives, financial situation or particular needs of any person or organisation. Nothing contained in this document constitutes investment, legal, tax or other advice.

For more information on specific risks associated with forward looking statements refer to the Risk Assessment section of the ASX announcement "Positive Economic Study for the Oropesa Tin Project", 7th May 2020.

useMineral Resources and Ore Reserves

The information in this report that relates to the Mineral Resources and Ore Reserves were last reported by the company in compliance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Mineral Resources, Ore Reserves, production targets and financial information derived from a production target were included in market releases dated as follows:

personalThe company confirms that it is not aware of any new information or data that materially affects the information included in the market announcements referred above and further confirms that all material assumptions underpinning the production targets, forecast financial information derived from a production target and all material assumptions and technical parameters underpinning the Ore Reserve and Mineral Resource statements contained in those market releases continue to apply and have not materially changed.

Competent Person Statement

The information in this report that relates to Mineral Resources and Ore Reserves Statements, Exploration Results and Exploration Targets is based on information and supporting documentation compiled by Mr Chris Creagh, who is a part-time employee of Elementos Ltd. Mr Creagh is a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and who consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Chris Creagh has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012).

The information in this report that relates to Processing and Metallurgy for the Oropesa Tin Project is based on and fairly represents Forinformation and supporting documentation compiled by Chris Creagh, who is a part-time employee of Elementos Ltd. Mr Creagh is a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and who consents to the inclusion in the report

of the matters based on his information in the form and context in which it appears.

Chris Creagh has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012).

The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

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ELEMENTOS LTD - ABN 49 138 468 756INTERIM FINANCIAL REPORT 2022

Corporate Information

Directors and Company Secretary

Mr Andy Greig (Non-executive Chairman) Mr Joe David (Managing Director)

onlyMr Corey Nolan (Non-executive Director) Mr Calvin Treacy (Non-executive Director) Mr Brett Smith (Non-executive Director)

Mr Duncan Cornish (Company Secretary)

Head Office and Registered Office

Elementos Limited

Level 7, 167 Eagle Street

Brisbane City QLD 4000 Tel: [phone]

usewww.elementos.com.au

Auditor

BDO Audit Pty Ltd

Level 10, 12 Creek Street

Brisbane QLD 4000

Tel: [phone]

Fax: [phone]

www.bdo.com.au

personalShare Registry Boardroom Pty Limited Level 12, 225 George Street Sydney NSW 2000

Tel: [phone]

Fax: [phone]

www.boardroomlimited.com.au

Stock Exchange Listing

Australian Securities Exchange Ltd

ASX Code: ELT

Australian Business Number 49 138 468 756

For

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ELEMENTOS LTD - ABN 49 138 468 756

INTERIM FINANCIAL REPORT 2022

Directors' Report

Your directors submit the financial report on Elementos Limited (the "Company") and its controlled entities (the "consolidated entity" or "Group") for the half-year ended 31 December 2021.

Directors

The following persons were directors of the Company during or since the end of the financial period:

only	ξ	Andy Greig
ξ Christopher Dunks (resigned 26 November 2021)
	ξ	Corey Nolan
	ξ	Calvin Treacy
	ξ	Brett Smith
use	ξ Joe David (appointed Managing Director 28 January 2022)

Review of Operations

The Group's operating loss for the half-year, after applicable income tax was $1,201,419.

At 31 December 2021, the Group's net assets totalled $16,120,842, which included cash assets of $3,944,436.

During the period, the Company's principal activity was continuing exploration activities at both the Oropesa Tin Project and Cleveland Tin Project.

personalOropesa Tin Project - Spain

Located in southern Spain, the Oropesa Tin Project (Oropesa) is one of the world's largest undeveloped, open-cut mineable tin deposits, with access to world class infrastructure. Elementos is developing Oropesa to produce tin concentrate, a commodity trading at all-time high prices, with important strategic value to major global economies as they transition to green economy infrastructure.

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Figure 1. Oropesa Tin Project Location

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ELEMENTOS LTD - ABN 49 138 468 756

INTERIM FINANCIAL REPORT 2022

Oropesa Drilling Program

In September 2021, Elementos completed a diamond drilling exploration program at Oropesa. The program's onlyprincipal objectives were to:

1. Upgrade the confidence of existing Inferred Resources to a higher JORC Classification.

2. Confirm near-surface, possibly fault-controlled mineralisation that is not currently included in the 2018

geological resource model.

3. Investigate additional near-surface resources from exploration targets identified from Induced Polarisation

geophysical survey anomalies.

4. Estimate a new JORC Geological Resource as part of a wider optimisation program designed to increase

the project's overall resource, annual production rate and mine life.

use	A total of 46 diamond drill holes were drilled for 5,654 metres. The drilling program was progressively modified
from the original plan as results were interpreted from completed drill holes.
Significant assays previously reported from the drilling program are shown in the table below.
Hole ID	Intercept	Hole ID	Intercept
personal	Expn_008	19.5m	@ 0.18% Sn from 70.3m	Expn_53A	30.6m @	0.22% Sn from 22.2m
	32.3m	@ 0.20% Sn from 161.7m		9.1m	@ 0.16% Sn from 62.0m
Expn_009	8.1m	@ 0.26% Sn from 96.6m		10.2m @	0.25% Sn from 73.4m
		15.8m	@ 0.44% Sn from 108.4m		1.8m	@ 0.33% Sn from 85.5m
		2.6m	@ 0.15% Sn from 140.6m		6.2m	@ 0.19% Sn from 92.6m
		5.7m	@ 0.12% Sn from 140.5m	Expn_054A	9.1m	@ 0.22% Sn from 22.2m
		11.9m	@ 0.18% Sn from 167.7m		7.9m	@ 0.31% Sn from 35.3m
		12.9m	@ 0.27% Sn from 191.4m	Expn_055A	24.8m @	0.35% Sn from 3.8m, includes 12.3m @ 0.53% Sn from 5.2m
	Expn_010	12.3m	@ 0.53% Sn from 37.7m	Expn_056	11.3m @	0.38% Sn from 34.7m
		10.6m	@ 0.38% Sn from 83.2m		7.1m	@ 0.37% Sn from 96.5m
		17.9m	@ 0.22% Sn from 106.9m	Expn_057	16.5m @	0.23% Sn from 19.4m
		13.3m	@ 0.26% Sn from 183.2m		5.5m	@ 0.39% Sn from 42.7m
		6.3m	@ 0.34% Sn from 199.1m	Expn_058	9.4m	@ 0.58% Sn from 11.2m
	Expn_010A	12.5m	@ 0.8% Sn from 36.3m		22.0m @	0.18% Sn from 36.7m
		6.7m	@ 0.31% Sn from 67.1m	Expn_059	15.1m @	0.44% Sn from 118.3m
		15.9m	@ 0.28% Sn from 100.6m	Expn_060	22.9m @	0.28% Sn from 6.1m
	Expn_011	14.2m	@ 0.25% Sn from 55.4m		8.6m	@ 0.21% Sn from 59.0m
		3.1m	@ 0.24% Sn from 77.0m		22.6m @	0.23% Sn from 69.4m
		1.3m	@ 0.39% Sn from 51.4m	Expn_061A	82.7m @	0.27% Sn from 11.3m, includes 18.0m @ 0.39% Sn from 11.3m,
	Expn_012	and 37.5m @ 0.30% Sn from 56.5m
	Expn_013	10.4m	@ 0.37% Sn from 65.1m	ADD_01A	10.5m @	0.27% Sn from 94.9m
	Expn_015A	3.6m	@ 0.77% Sn from 22.9m		2.3m	@ 0.63% Sn from 122.0m
		13.6m	@ 0.32% Sn from 31.5m		9.9m	@ 0.69% Sn from 200.5 m, including 0.6m @ 4.36% Sn from 209.8m
		7.6m	@ 0.53% Sn from 119.5m	ADD_02	12.9m @	0.18% Sn from 45.5m
	Expn_016	2.7m	@ 0.39@ Sn from 74.3m		4.5m	@ 0.16% Sn from 62.0m
		33.3m	@ 0.22% Sn from 92.0m	ADD_03	2m @ 0.24% Sn from 16.3m
		15.1m	@ 0.53% Sn from 138.4m		19.2m @	0.18% Sn from 37m
For	ADD_17A	1.1m	@ 0.63% Sn from 134.0m		8.7m	@ 0.26% Sn from 61.8m
Expn_018	5.9m	@ 0.26% Sn from 73.9m		5.5m	@ 0.41% Sn from 88.8m
	31.1m	@ 1.49% Sn from 113.3m, including 6.1mm @ 4.85%% Sn from 133.6m,
	Expn_019	which includes 1m @ 12.9% Sn from 133.6m and 1.4m @ 8.02% Sn from	ADD_019	1.5m	@ 1.75% Sn from 116.0m
		135.8m
	Expn_020	3.9m @ 0.63% Sn from 36.5m	ADD_22	26.0m @	0.34% Sn from 12.5m, including 18.0m @ 0.50% Sn from 12.5m
	Expn_020A	6.8m	@ 0.38% Sn from 37.4m		4.0m	@ 1.95% Sn from 74.2m
	Expn_021A	7.1m @ 0.22% Sn from 43.2m		12.4m @	0.97% Sn from 89.0m, including 9.3m @ 1.25% Sn from 89.0m
	Expn_021B	9.8m @ 0.22% Sn from 19.5m	ADD_23	3.2m	@ 0.18% Sn from 21.0m
	Expn_022	41.9m	@ 0.20% Sn from 132.9m		18.7m @	0.55% Sn from 29.2m, including 6.0m @ 1.10% Sn from 41.9m
	Expn_025A	33.2m	@ 0.30% Sn from 2.9m, including 18.8m @ 0.40% Sn from 2.9m		1m @ 0.31% Sn from 74.5m
	Expn_040	9.6m @ 0.20% Sn from 48.2m	P44	1.2m	@ 0.24% Sn from 188.9m
	Expn_041	2.2m @ 0.40% Sn from 48.9m	P53	1.2m	@ 0.24% Sn from 188.9m.
	Expn_043	4.8m	@ 0.30% Sn from 22.0m		1m @ 0.31% Sn from 74.5m
	Expn_044	14.5m	@ 0.38% Sn from 43.0m	P44	1.2m	@ 0.24% Sn from 188.9m
	Expn_047A	7.1m @ 0.33% Sn from 10.3m	P53	1.2m	@ 0.24% Sn from 188.9m.
	Expn_052A	9.0m	@ 0.3% Sn from 84.6m
		10.1m	@ 0.24% Sn from 124.1m

Table 1. 2020-21 Diamond drilling significant intercepts from 41 drill holes as at 28 September 2021

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