Element 25 : Agrees to Sell Holleton Project

ASX ANNOUNCEMENT

31 July 2018

Element 25 Agrees to Sell the Holleton Project for $1M and a 1%NSR

• • Agreement signed with Ramelius Resources Ltd (RMS) and wholly owned RMS subsidiary Edna May Operations Pty Ltd (EMO) for the sale of the Holleton Project.

• • Consideration for the purchase is $1M payable in either cash, shares or any combination thereof at EMO's election.

• • Settlement to occur within sixty days subject to the satisfaction of certain conditions.

Element 25 Limited ("E25" or "Company") is pleased to advise that it has reached agreement with RMS and EMO for the sale of Exploration Licences 77/2334, 77/2458 and Exploration Licence Application 70/5033 ("Holleton Project").

Pursuant to the sale agreement, EMO will acquire 100% of the Holleton Project and for $1M. The consideration may be settled in cash, shares or a combination of cash and RMS shares at the election of EMO. Where EMO elects to issue shares in consideration for the acquisition, RMS agrees to issue those shares at the 30 day volume weighted average price prior to settlement. EMO will also grant E25 a 1%NSR on all future production from the Holleton Project.

The transaction is binding, however it remains subject to the following conditions precedent:

• § the Buyer receiving the consent of the Minister responsible for the administration of the Mining Act to the transfer of the Tenements;

• § the Buyer receiving a satisfactory Environmental Consultant's report indicating there will be no impediment for the Minister giving his approval to explore within reserve 19923;

• § the Seller obtaining the approval of the South West Aboriginal Land & Sea Council Aboriginal Corporation for the assignment of the existing Heritage Agreement to EMO; and

Company Snapshot

ASX Code: Shares on Issue: Share Price:

Market Capitalisation:

E25 83.5M $0.18 $15MBoard of Directors: Seamus Cornelius Justin Brown John RibbonsChairman ED

NED

Element 25 Limited is developing the world class Butcherbird manganese project in Western Australia to produce high purity manganese sulphate for lithium ion batteries and electrolytic manganese metal.

Element 25 Limited P [phone]

Level 2, 45 Richardson Street, West Perth, WA, 6005

[e-mail] element25.com.au

PO Box 910 West Perth WA 6872 Australia

EMO, E25 and the local landholder with whom E25 has entered into an access agreement entering into a deed of assignment and assumption to assign that agreement to EMO.

ASX ANNOUNCEMENT 31 July 2018

§

If the conditions are not satisfied or waived by both parties within sixty days of the execution of the agreement then either party may terminate the sale by providing written notice to the other party.

The Company is very pleased with the outcome of this transaction. The cash and/or share component will provide important working capital whilst the royalty ensures that shareholders will benefit from future exploration success as EMO and RMS roll out their exploration programmes.

This transaction represents an important incremental step in the Company's stated strategy to rationalise its project portfolio to allow the technical team to focus on the development potential of the high purity manganese business at Butcherbird.

Justin Brown

Executive Director

Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company's projects can be viewed at:http://www.element25.com.au.

The information in this report that relates to Exploration Results, Exploration Targets, Mineral Resources and Mineral Reserves is based on information compiled by Mr David O'Neill who is a member of the Australasian Institute of Mining and Metallurgy. At the time that the Exploration Results, Exploration Targets, Mineral Resources and Mineral Reserves were compiled, Mr O'Neill was an employee of Element 25 Limited. Mr O'Neill is a geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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'. Mr O'Neill consents to the inclusion of this information in the form and context in which it appears in this report

Please note with regard to exploration targets, the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

Element 25 Limited	Level 2, 45 Richardson Street,
P [phone]	West Perth, WA, 6005
[e-mail]	PO Box 910 West Perth WA 6872
element25.com.au	Australia