Element 29 Resources : E29 MDA Q2 2022

Management's Discussion and Analysis

Second Quarter Ended June 30, 2022

(Expressed in Canadian dollars, except per share amounts and where otherwise noted)

August 10, 2022

This Management's Discussion and Analysis ("MD&A") should be read in conjunction with the condensed consolidated interim financial statements for the period ended June 30, 2022 and related notes thereto which have been prepared in accordance with IFRS 34, Interim Financial Reporting of the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, as well as the annual audited consolidated financial statements for the year ended December 31, 2021, which are in accordance with IFRS, and the related MD&A. References to "E29" and the "Company" are to Element 29 Resources Inc. and/or one or more of its wholly-owned subsidiaries. Further information on the Company is available on SEDAR at www.sedar.com. Information is also available on the Company's website at www.e29copper.com. Information on risks associated with investing in the Company's securities is contained in this MD&A. Technical and scientific information under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") concerning the Company's material properties are located in their respective technical reports: technical and scientific information regarding the Flor de Cobre Project (the "Flor de Cobre Project") is contained in the technical report titled "NI 43-101 Technical Report Flor de Cobre Property Arequipa and Moquegua Regions, Peru" with an effective date of March 15, 2020, prepared for the Company by Derrick Strickland ( P.Geo.) (the "Flor de Cobre Technical Report") and a table of historical drilling results prepared for the Company by Christopher Keech (P.Geo); and technical and scientific information regarding the Elida Project ("Elida Project") is contained in the technical report titled "NI 43-101 Technical Report Elida Property, Peru" with an effective date of February 15, 2020 prepared for the Company by Derrick Strickland (P.Geo.) (the "Elida Technical Report") and a table of historical drilling results prepared for the Company by Christopher Keech (P.Geo.). The disclosure in this MD&A of scientific and technical information regarding the Company's other mineral projects has been reviewed and approved by Paul Johnston (P.Geo.), the Vice President of Exploration of the Company. Each of Mr. Strickland, Mr. Keech, and Mr. Johnston are a "Qualified Person" for the purposes of NI 43-101.

COMPANY BACKGROUND

Element 29 is a Canadian resource company engaged in the exploration and development of mineral resource properties in Peru. The Company is exploring for copper ("Cu"), molybdenum ("Mo"), gold ("Au"), silver ("Ag"), and other metals including lead ("Pb"), and zinc ("Zn"). At present, none of the Company's mineral properties are at a commercial development or production stage. The Company's objective is to confirm, delineate, and develop the copper mineralization at its Flor de Cobre property ("Candelaria"). At the Elida porphyry copper project, the Company plans to explore and expand on the copper, molybdenum, and silver mineralization intersected in Target 1 (see Elida Copper Project) and drill test the four other porphyry targets located on the project.

The Company also holds two other projects; the Pahuay Copper Project, and the Muñaorjo Copper Project, which are both located in Peru.

The Company was incorporated in British Columbia on August 30, 2017. The Company's corporate headquarters is in Vancouver, British Columbia, Canada. Field operations are conducted out of a local office in Peru. On December 7, 2020, the Company's common shares commenced trading on the TSX Venture Exchange ("TSX-V") under the symbol "ECU". On February 4, 2021, the Company's common shares commenced trading on the Frankfurt Stock Exchange ("FSE") under the trading symbol "2IK". On May 27, 2021, the Company commenced trading on the Over-the-Counter OTCQB Venture Market ("OTCQB") under the symbol "EMTRF".

The Company has three wholly-owned subsidiaries; Candelaria Resources SAC, Elida Resources SAC, and Pahuay Resources SAC, all of which were incorporated under the laws of Peru (the "Subsidiaries").

Element 29 is led by a seasoned team of mining, corporate finance and corporate governance professionals, who have the experience to advance the Company's projects and generate value for Element 29's shareholders.

HIGHLIGHTS

The Company's strategy is to further explore the copper mineralization, and transition through to advanced exploration and engineering studies towards potential development.

Flor de Cobre Copper Project (Peru)

On July 6, and June 1, 2022, the Company announced results from seven drill holes of the 4,500 metre ("m"), twelve- hole drill program. Flor de Cobre drilling highlights included:

Q2 2022 MD&A (expressed in Canadian Dollars, except where otherwise noted)

Results disclosed in the press release "Element 29 Further Confirms Past Drill Results Used in Historical Copper Resource Estimate at Flor De Cobre" dated June 1, 2022:

Hole	From	To	Length2	Cu	Mo	Ag	As	CuEq1
	(m)	(m)	(m)	(%)	(%)	(ppm)	(ppm)	(%)
FDC003	14.35	310.00	295.65	0.38	0.009	1.1	111	0.42
oxide	14.35	61.30	46.95	0.69	0.005	0.7	16	0.72
enriched	97.20	164.50	67.30	0.46	0.018	0.6	31	0.53
primary	164.50	310.00	145.50	0.30	0.005	1.3	197	0.33
FDC004	74.40	239.00	164.60	0.43	0.006	0.7	12	0.46
enriched	74.40	111.85	37.45	0.75	0.003	0.8	19	0.77
primary	111.85	239.0	127.15	0.33	0.007	0.7	10	0.36
FDC005	65.40	208.40	143.00	0.34	0.004	1.3	59	0.37
enriched	65.40	122.80	57.40	0.46	0.004	0.7	19	0.48
primary	122.80	208.40	85.60	0.26	0.004	1.6	86	0.29

Results disclosed in the press release "Element 29 Completes Validation of Flor De Cobre Historical Drilling and Will Proceed with Mineral Resource Estimation" dated July 6, 2022:

Hole	From	To	Length2	Cu	Mo	Ag	As	CuEq1
	(m)	(m)	(m)	(%)	(%)	(ppm)	(ppm)	(%)
FDC006	92.45	160.00	67.55	0.27	0.003	0.7	45	0.29
enriched	92.45	110.00	17.55	0.47	0.001	0.8	36	0.48
primary	110.00	160.00	50.00	0.20	0.004	1.0	48	0.22
FDC007	114.50	183.00	68.50	0.45	0.008	0.7	16	0.48
enriched	114.50	134.00	19.50	0.92	0.019	0.7	13	0.99
primary	134.00	183.00	49.00	0.26	0.004	1.0	17	0.28
FDC008	30.50	160.00	129.5	0.29	0.008	0.9	32	0.33
oxide	30.50	112.00	81.50	0.26	0.009	0.7	7	0.30
enriched	112.00	123.70	11.70	0.73	0.007	0.8	15	0.77
primary	123.70	160.00	36.30	0.21	0.006	1.6	93	0.25
FDC009	62.25	108.00	45.75	0.29	0.003	0.6	19	0.31
enriched	62.25	74.00	11.75	0.54	0.002	0.9	11	0.55
primary	74.00	108.00	34.00	0.21	0.004	0.4	32	0.44

• The twin drill hole program recently completed by Element 29 has demonstrated the reliability of the historical drill hole results such that this historical information can be considered sufficiently accurate to be reliable.
• Mineralization intersected in the Element 29 core holes verifies the mineralization that was intersected in the historical Rio Amarillo and Phelps Dodge drill holes.

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Q2 2022 MD&A (expressed in Canadian Dollars, except where otherwise noted)

• Historical information can be incorporated into a drill hole database used for a mineral resource estimate that meets the current CIM best practice guidelines for mineral resource estimation.

The Company is awaiting results from the last three angled drill holes of the program that tested the primary copper sulphide mineralization potential below the supergene enrichment blanket to depths of more than 500 m.

Elida Copper Project (Peru)

The Company completed its Elida drilling program in December 2021 that consisted of seven diamond drill holes totaling 4,481.4 m to test the Target 1 mineralized zone within the Elida porphyry cluster. Results of the first 2 drill holes were reported on October 18, 2021 and a second batch of 2 drill holes were released on November 15, 2021. The final three drill holes were reported on January 19, 2022.

Corporate

The Company's financial highlights for the quarter included:

• For the three and six months ended June 30, 2022, the operating loss was $692,062 and $2,388,925, respectively, compared to an operating loss of $760,364 and $1,759,906 in the comparative periods of 2021;
• For the three months and six months ended June 30, 2022, operating cash outflow before working capital was $646,016 and $1,103,824, respectively, compared to an operating cash outflow before working capital of $670,016 and $1,108,259 in the comparative period of 2021; and
• As at June 30, 2022, the cash balance was $3,346,126 and the working capital balance was $3,099,196.

2022 OUTLOOK

Flor de Cobre

Company commenced a 3,700 m drill program ("Flor de Cobre Drill Program") at the Flor de Cobre Copper Project as announced on February 3, 2022 and completed 4,500 m of drilling in May 2022. The objectives of the drill program were to verify the historical copper resource estimate of 57.4 million tonnes of 0.67% Cu associated with a supergene enrichment blanket formed on the Candelaria porphyry ("Candelaria") and to explore for primary Cu sulphide mineralization under the enrichment blanket to depths of over 500 m. Historical drilling intersected 272 m of 0.92% Cu starting at 78 m depth, including 116 m of 1.4% Cu as secondary enrichment followed by 156 m of 0.58% Cu as primary sulphides from drill hole K-008. The historical drill holes were completed by Rio Amarillo Mining and Phelps Dodge in 1994 and 1995

Nine historical drill holes were selected for twinning based on cumulative grade times thickness and representing approximately 70% of the total cumulative grade thickness intersected on the property. This would allow Element 29 to use the historical information as part of a drill hole dataset for the estimation of mineral resources that meets the CIM best practice guidelines for mineral resource estimation.

The Company is awaiting results from the last three angled drill holes of the program that tested the primary copper sulphide mineralization potential below the supergene enrichment blanket to depths of more than 500 m.

The Company also continues to progress drill permitting on the Atravesado porphyry target ("Atravesado") in preparation for initial drill-testing of a priority porphyry target supported by coincident outcrop geology, surface geochemistry, and geophysical response.

Elida

The Company completed a drilling program in December 2021 ("Elida Drill Program") consisting of seven diamond drill holes totaling 4,481.4 m to test Zone 1 within the Elida porphyry cluster. Results of the first 2 drill holes were reported on October 18, 2021 and a second batch of 2 drill holes were released on November 15, 2021. The final three drill holes were reported on January 19, 2022. Drilling results will be used to complete an initial resource estimate of Zone 1 in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (2014). In parallel,

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Q2 2022 MD&A (expressed in Canadian Dollars, except where otherwise noted)

preliminary metallurgical studies have been initiated to examine recovery characteristics of mineralization for use in preliminary economic studies. Exploration planned for later in 2022 will be designed to test the unexplored segments of Zone 1 and initial drill testing of the Zone 2 porphyry centre.

PROJECT DETAILS - PERU

FLOR DE COBRE COPPER PROJECT

The Company owns 100% of the Flor de Cobre Copper Project. In addition, the Company has the option to earn 100% of certain concessions ("Candelaria concessions") from a Peruvian vendor of 127.12 hectares.

The Company can earn 100% interest in the Candelaria concessions at Flor de Cobre by making option payments to the vendor in the total amount of approximately US$5 million (paid - US$1.4 million) over five years between 2020 and 2024. An additional US$6 million payment would be due on completion of a positive detailed feasibility study for the concession area.

The Flor de Cobre Property is in the Southern Peru Copper Belt, which hosts numerous porphyry copper deposits including the Cerro Verde copper-molybdenum mine operated by Freeport-McMoRan; the Cuajone and Toquepala copper-molybdenum mines operated by Southern Copper; and the Quellaveco copper-molybdenum mine operated by Anglo American (Figure 1). Flor de Cobre is 5 kilometres ("km") northwest of the Chapi Mine and 26 km southeast of the Cerro Verde Mine. The property contains the Candelaria historic copper resource first identified in the 1960s and was the site of an historical small-scale copper mining operation since that time.

Flor de Cobre is located 45 km southeast of Arequipa at a modest elevation of ~2,700 m with excellent infrastructure for mine development with respect to roads, power lines and port access (Figure 1 and Figure 2).

Figure 1. Flor de Cobre Project location.

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Q2 2022 MD&A (expressed in Canadian Dollars, except where otherwise noted)

Figure 2. Regional setting and infrastructure.

The Flor de Cobre property is made up of seven mining concessions and two concession applications totalling 1,927 hectares. Individual concessions are shown in Figure 3.

Figure 3. Flor de Cobre property concession map.

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