Element 25 : Raises $1M in Cash via the Sale of Holleton

ASX ANNOUNCEMENT

18 October 2018

Element 25 Raises $1M in Cash via the Sale of Holleton

• • Agreement signed in July1 with Ramelius Resources Ltd (RMS) and wholly owned RMS subsidiary Edna May Operations Pty Ltd (EMO) for the sale of the Holleton Project has completed.

• • Cash consideration of $1M received in addition to an executed 1% NSR Royalty Deed.

Element 25 Limited ("E25" or "Company") is pleased to advise that the previously announced agreement with RMS and EMO for the sale of the Holleton Project has now completed. Pursuant to the sale agreement, EMO has acquired 100% of the Holleton Project. E25 has received $1M in cash and a 1% NSR on all future production from the Holleton Project.

The Company is pleased with the outcome of this transaction. The cash 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 high purity manganese business at Butcherbird.

Justin Brown

Executive Director

1 Reference: Company announcement dated 31 July 2018

Company Snapshot

ASX Code: Shares on Issue: Share Price:

Market Capitalisation:

E25 83.5M $0.195 $16MBoard 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

ASX ANNOUNCEMENT

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