Elemental Minerals Limited Completes C$53.5 Million Initial Public Offering on the Toronto Stock Exchange

PERTH, Australia, Aug. 16, 2011 /CNW/ --
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/

PERTH, Australia, Aug. 16, 2011 /CNW/ - Elemental Minerals Ltd. (ASX,
TSX: ELM) ('Elemental' or the 'Company') is pleased to announce that it
has successfully completed an initial public offering (the 'IPO') on
the Toronto Stock Exchange (the 'TSX') of 42,470,000 ordinary shares at
a price of C$1.26 per share (approximately A$1.25 per share) for
aggregate gross proceeds of C$53,512,200. The offering was carried out
by a syndicate of underwriters co-led by BMO Capital Markets and
Renaissance Capital, and including Stifel Nicolaus Canada Inc.,
National Bank Financial Inc., RBC Capital Markets, and CIBC (the
'Underwriters').

In addition, Elemental has granted the Underwriters an option (the
'Over-Allotment Option') to purchase, at the Underwriters' election, up
to an additional number of ordinary shares that is equal to 15% of the
number of ordinary shares sold under the IPO. Such Over-Allotment
Option is exercisable, in whole or in part, at any time during the 30
day period immediately following the closing of the IPO.

The Company intends to use the net proceeds of the IPO for further
development of the Sintoukola Potash Project (Figure 1) including:
leading to completion of the pre-feasibility study; additional seismic
and drilling exploration; further geological analysis and for general
corporate purposes.

The Company is also pleased to announce that Pala Investments Holdings
Limited, a cornerstone investor in the IPO and Swiss based investment
group focused on investing in quality resource projects at an early
stage of development, now holds approximately 13.9% of the Company's
basic issued and outstanding ordinary shares.

Elemental's CEO, Iain Macpherson, commented:

'This very successful IPO on the TSX marks a significant milestone in
the growth of the Company and secures funding for the rapid development
of the Sintoukola Potash Project through the pre-feasibility study that
is currently underway and is expected to be complete by the end of Q1
2012, providing a solid foundation from which to complete the bankable
study planned for completion in Q1 2013.'

The securities referred to in this announcement have not been and will
not be registered under the United States Securities Act of 1933, as
amended (the ''U.S. Securities Act''), or any state securities laws and
may not be offered or sold within the United States unless registered
under the U.S. Securities Act and applicable state securities laws or
an exemption from such registration is available. This press release
does not constitute an offer to sell or a solicitation of an offer to
buy any of these securities within the United States.

Forward-Looking Statements:

This press release contains statements that are 'forward-looking'.
Generally, the words 'expect,' 'intend,' 'estimate,' 'will' and similar
expressions identify forward-looking statements. By their very nature,
forward-looking statements are subject to known and unknown risks and
uncertainties that may cause our actual results, performance or
achievements, to differ materially from those expressed or implied in
any of our forward-looking statements, which are not guarantees of
future performance. Statements in this press release regarding the
Company, which are not historical facts, are 'forward looking'
statements that involve risks and uncertainties, such as to anticipated
closing of the offering described herein including words to the effect
that the Company or management expects a stated condition or result to
occur. Since forward-looking statements address future events and
conditions, by their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ materially from
those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.

To view Figure 1: Location of Sintoukola Potash Permit and historic drill hole
locations please visit:

http://files.newswire.ca/270/Elemental.jpg 

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/16/c4037.html

For further information in respect of the Company's activities, please contact:

Management Office: 27 11 469 9140

Company website: www.elementalminerals.com.au