Elemental Minerals Limited announces exercise of over-allotment option

PERTH, Australia, Sept. 1, 2011 /CNW/ --
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./

PERTH, Australia, Sept. 1, 2011 /CNW/ - Elemental Minerals Ltd. (ASX,
TSX: ELM) ('Elemental' or the 'Company') is pleased to announce that
the underwriting syndicate of its recently closed initial public
offering has exercised in full their over-allotment option to purchase
an additional 6,370,500 ordinary shares, raising gross proceeds of
C$8,026,830 (approximately A$7.7 million). The underwriting syndicate
was co-led by BMO Capital Markets and Renaissance Capital, and included
Stifel Nicolaus Canada Inc., National Bank Financial Inc., RBC Capital
Markets, and CIBC (the 'Underwriters').

Under the previously announced offering of 42,470,000 ordinary shares
(the 'Offering') at a price of C$1.26 (approximately A$1.25) per
ordinary share for an aggregate gross proceeds of C$53,512,200, the
Company granted the Underwriters an option to purchase up to an
additional number of ordinary shares equal to 15% of the number of
ordinary shares sold under the Offering at any time during the 30 day
period immediately following the closing of the Offering. The total
number of ordinary shares in issue following the exercise of the
over-allotment will be 222,226,108.

Commenting on the exercise of the over-allotment, Iain Macpherson, Chief
Executive Officer of the Company, said: 'The exercise of the
over-allotment option highlights strong shareholder support for
Elemental despite the market downturn. The Company is now well funded
having raised C$57,478,738 of net proceeds, which puts us in a good
position that allows us to focus on achieving our previously stated
project development milestones including delivery of the
pre-feasibility component of the DFS by end Q1 2012 and completion of
the DFS by end Q1 2013. The Elemental executive is delighted with the
outcome of the Company's listing on the TSX and share placement, which
has generated the funds required to see us through the DFS'.

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. Since forward-looking
statements address future events and conditions, by their very nature,
such 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's business or proposed business, which are not historical
facts, are 'forward looking' statements that involve risks and
uncertainties, such as the Company's future plans, objectives or goals,
including words to the effect that the Company or management expects a
stated condition or result to occur. Forward-looking statements are
based on the reasonable assumptions, estimates, analysis and opinions
of management made in light of its experience and its perception of
trends, current conditions and expected developments, as well as other
factors that management believes to be relevant and reasonable in the
circumstances at the date that such statements are made, but which may
prove to be incorrect. Assumptions have been made regarding, among
other things: the Company executing its project development plans in
accordance with its budgets and planning; feasibility and other studies
supporting the Company's development plans; the Company being able to
obtain sufficient financing when required and on reasonable terms; the
Company being able to convert existing Mineral Resources into Ore
Reserves; the Company obtaining required licenses and approvals in a
timely manner; applicable environmental and other laws and other
regulations not being amended; key management continuing to serve in
their respective roles with the Company; title to the Sintoukola potash
project not being challenged; and no adverse changes occurring to the
price of potash that might adversely affect the prospects for
developing and operating the Sintoukola potash project or which might
make it uneconomic to proceed with development.  Investors are
cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date they are made and are expressly
qualified in their entirety by this cautionary statement. Subject to
applicable securities laws, the Company assumes no obligation to update
or revise them to reflect new events or circumstances.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/September2011/01/c7895.html

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

Management Office: 27 11 469 9140

Company website: www.elementalmineralsltd.com