Mr. Iain Macpherson reports

ELEMENTAL MINERALS COMMENCES DRILLING AT THE DOUGOU TARGET

Elemental Minerals Ltd. has commenced drilling of exploration borehole ED-01 at the Dougou target. This extensive target was identified by the integration of recently acquired high-resolution oil seismic data and oil borehole data.

Highlights

The recently discovered high-grade (more than 30 per cent potassium oxide) hangingwall seam is the principal target at Dougou. Drill hole ED-01 planned to confirm sylvinite mineralization intersected by historical borehole K-52.

The Dougou target lies on an existing planned infrastructure corridor 15 kilometres southwest of Kola and 21 kilometres from the planned Tchiboula port facility.

The Dougou target is located approximately 15 kilometres southwest of the Kola deposit. It is the second significant potash target that Elemental has identified and is based on historical drilling and an assessment of oil-industry 2-D seismic data. The company previously reported the results of a review of the Dougou target.

In the wider Dougou target area, several drill holes have intersected potash mineralization, some of them with significant sylvinite mineralization. Like Kola, the Dougou area is interpreted to be located on a relative basement high (the Dougou rise) and to be in a structurally favourable position for the discovery of additional high-grade potash mineralization.

Two historical drill holes, located about nine kilometres apart, have well completion reports that indicate the presence of multiple sylvinite horizons. These included K-52 and K-38. The area between K-52 and K-38 opens a significant opportunity to explore and discover further high-grade potash seams over a large area. The area is largely untested.

Elemental has recently commenced drilling its first exploration hole in the Dougou area (ED-01). The drill hole will aim to verify the sylvinite mineralization intersected in historical drill hole K-52, as well as provide stratigraphic data to aid future exploration planning. ED-01 is collared 15 metres from the K-52 collar.

Historical borehole K-52 intersected 3.61 metres of sylvinite between 423.56 metres to 427.17 metres amongst several other sylvinite seams in the upper part of the salt sequence. Historical borehole K-38 intersected sylvinite seams between 400 and 408 metres. No assay data are available for these boreholes.

Commenting on the start of the Dougou drilling, Elemental's chief executive officer, Iain Macpherson, stated: "The commencement of drilling at Dougou is an exciting next step for the project. An intersection of sylvinite at Dougou, only 15 kilometres from Kola, would be an excellent result indicating the scalability of the high-grade sylvinite seams. Should this drilling be successful in delineating high-grade sylvinite mineralization, this area has the potential to increase the project mineralized footprint significantly and increase the scale of the project.

Mineral resource summary

Kola deposit of Sintoukola project (1)

The Sintoukola project's Kola deposit currently contains 959 million tonnes measured and indicated mineral resources and 513 million tonnes inferred mineral resources, with an average grade of 15.11 per cent K2O (23.93 per cent potassium chloride) and 15.33 per cent K2O (24.27 per cent KCl), respectively, at a 10.0-per-cent-potassium-oxide-cut-off grade.

Within such mineral resources, the sylvinite portion of the deposit contains 413 million tonnes measured and indicated mineral resources and 261 million tonnes inferred mineral resources, grading at 20.39 per cent K2O (32.29 per cent KCl) and 19.16 per cent K2O (30.33 per cent KCl), respectively.

These resources are mostly within two seams: the Upper Seam and the Lower Seam, which are separated by a barren halite layer averaging three metres in thickness. The depth to the top of the Upper Seam is within 250 to 320 metres from surface. A small portion of the inferred resource is contained within the footwall seam, which occurs approximately 45 metres below the level of the lower seam in certain areas of the deposit. The deposit is contained within 70 square kilometres of the current 1,400-square-kilometre licence area.

The mineral resources are reported in accordance with the Australasian code for reporting of exploration results, mineral resources and ore reserves, 2004 edition (the Joint Ore Reserves Committee code), which is consistent with Canadian Institute of Mining, Metallurgy and Petroleum definition standards, 2005, and hence complies with NI 43-101.

Competent person/qualified person statement

Information in this report that relates to exploration results or mineral resources is based on information compiled by Dr. Simon Dorling and Jeff Elliott of CSA Global Pty. Ltd., the company's geological consultants. Dr. Dorling and Mr. Elliott are members of the Australian Institute of Geoscientists and have sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity they are undertaking to qualify as a competent person as defined in the 2004 edition of the "Australasian code for reporting of exploration results, mineral resources and ore reserves." Dr. Dorling and Mr. Elliott are also qualified persons for the purposes of Canadian National Instrument 43-101, and they consent to the inclusion in this report of the information in the form and context in which it appears.

Further information respecting Elemental's Sintoukola project is contained in a technical report entitled, "Updated technical report, Sintoukola potash project, Republic of Congo," prepared by Dr. Dorling, Mr. Elliott and Andrew Scogings of CSA Global for the company dated June 21, 2012, with an effective date of June 21, 2012. The technical report can be accessed on the company's profile on SEDAR.

(1) For a full description of the resource, refer to the NI 43-101 technical report dated June 21, 2012, available on SEDAR.

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