Elemental Minerals Announces Excellent Results from the Pre-Feasibility Study on its Sintoukola Potash Project

NPV₁₀ of US$ 2.97bn, IRR of 29.3%

PERTH, Australia, Sept. 20, 2012 /CNW/ - Elemental Minerals Ltd. (ASX, TSX: ELM) ("Elemental" or "the Company") is pleased to announce results of the independent Pre-Feasibility Study ("PFS") on its Sintoukola Potash Project (the "Project") in the Republic of Congo.

PFS HIGHLIGHTS

• Project after-tax NPV₁₀ of US$ 2.97bn, IRR of 29.3%
• Project pre-tax NPV₁₀ of US$ 3.90bn, IRR of 31.3%
• Production cash costs of US$ 79.71/t, FOB - in the lowest quartile of global production cost
• Total initial capital costs of US$ 1.85bn
• includes a weighted average contingency of 18%
• includes infrastructure of US$ 580m
• Pay-back from production start-up of 3 years
• Production of 2Mt per annum of Muriate of Potash ("MoP") from a conventional underground mine with a 23 year life of mine

INFRASTRUCTURE OPPORTUNITIES

• Expressions of interest signed with major international infrastructure groups.
• Potential to reduce up-front capital costs by up to US$580m, but with an operating cost increase

RESOURCE/MINING OPPORTUNITIES

• Recent discovery of a high grade (30 to 38% K₂O) Hangingwall Seam may further enhance project economics
• The Company plans to continue exploration of the high grade Hangingwall Seam at Dougou,
• 475 Mt of Inferred Sylvinite Mineral Resource grading 20.39% K₂O not considered for the PFS
• Capability to become a scalable, near-term, low cost independent potash producer

Elemental's CEO, Iain Macpherson stated: "The Pre-Feasibility study confirms excellent economics and highlights the Project's key competitive advantages of a high-grade orebody suited to conventional mining and processing using proven technologies. The scalability and location of the Project reinforces its global significance and the potential for the Congo basin to become a major potash producing region. These results confirm our strategy of a fast track approach, allowing us to remain on track to deliver an independent potash operation to the market in the near future. It is significant to note the upside that remains in our Project when one considers the ability to share Capex with industry majors on the Project infrastructure and in the possible delivery of a larger mining inventory from the high grade Hangingwall seam at Kola that would likely be the plant feed source in the early years of the Project's operation"

The Company has held discussions with infrastructure funds, technical partners and operators since June 2012. To date, several formal, non-binding expressions of interest to build, own and operate the infrastructure components have been received. Elemental considers these proposals to be financially and technically credible and intends to progress negotiations to secure an agreement with a consortium to fund and operate infrastructure components of the Project that are non-core to the mining operation. This will allow for a significant reduction in capital requirements of up to US$ 580m by conversion into operating costs.

1. Background

The Project is situated in the Kouilou Province in the south west corner of the Republic of Congo (ROC).The Project comprises an exclusive exploration permit, for potash and connected salts, which covers an area of 1,436.5 square kilometres (km²) along the northern part of the coastline in the west of the country. Access to the Project area is via a 55 kilometre (km) dual-lane bitumen road from the port city of Pointe Noire, which terminates 9 km outside the permit's southern boundary. From this point, access to the Kola deposit area is via a 35 km gravel track.

Elemental commenced exploration in 2010, focusing on the Kola deposit in the eastern part of the permit where high-grade sylvinite mineralisation was intersected in several historical drillholes.  By February 2011, Elemental had completed an initial 16 diamond drillhole program (Phase 1) for 6,577 metres (m) on the Kola target, as well as down hole geophysics, core sampling and core analyses. This program was followed by a second drilling program (Phase 2a) of 20 drillholes for 6,429 m and finally a further eight exploration holes (Phase 2b) of for 2,745 m. A total of 203 line kilometres of seismic data were collected and processed over two campaigns; these data are fundamental to the modelling and classification of the Mineral Resources.

In 2011, at the completion of Elemental's first phase of exploration a maiden Mineral Resource estimate was reported for the Kola deposit.  In May 2012 an update to the Mineral Resource was delivered and a second resource update was announced by Elemental on August 21, 2012

Elemental Minerals Ltd (ELM) commissioned SRK Consulting (U.S.), Inc. (SRK), AMEC Americas Limited (AMEC), EGIS International (EGIS) and CSA Global Pty Ltd (CSA) (collectively the Consultants) to prepare a Technical Report compliant with Canadian National Instrument 43-101 (NI 43-101) for a Prefeasibility Study (PFS).

Elemental has spent a total of US$ 71m on developing the advanced PFS which has significantly de-risked the Project and enhanced the findings of the Project's Preliminary Economic Assessment released on August 1, 2011.

2. Project and Model Assumptions and Parameters (US$ 2012)

3. Mineral Resource Estimates

The geological model for the Kola deposit is based on the interpretation of geological boundaries from interpreting drill core, assays, down-hole logging and seismic data.  Three-dimensional models were developed in Micromine software and then refined using the gridding process in MINEX software.  The extents of the resource model were determined by availability of drillhole and seismic data and the limits of influence in accordance with selected Mineral Resource classification parameters.

Following compilation, review and interpretation of the latest geological, geophysical and analytical data, an updated Mineral Resource was estimated for the main potash-bearing (sylvinite and carnallitite) horizons within the Kola deposit area. The geological model now comprises six mineralisation domains within four distinct seams (Hangingwall Seam "'HWS", Upper Seam "US", Lower Seam "LS" and Footwall Seam "FWS"). The Mineral Resource estimates have been reported at a cut-off grade (CoG) of 10% K₂O for sylvinite only as well as for combined sylvinite and carnallitite mineralisation as listed in Tables 1 and 2 below. The Mineral Resources are reported in accordance with the Australasian Joint Ore Reserves Committee guidelines for reporting of Mineral Resources and Ore Reserves, (the JORC Code, 2004 edition) which is consistent with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards and hence complies with NI 43-101 requirements. The base-case Mineral Resource is of sylvinite only.

The Mineral Resource estimate for the modelled mineralised zones at the Kola deposit has been classified as Measured, Indicated and Inferred. This is based primarily on confidence in and continuity of, the results from the drilling campaigns, and subsurface mapping of high density 2D seismic data. The results of the Mineral Resource estimate are below:

Table 1:  Mineral Resource Estimate for Sylvinite Mineralisation only (base case) at a 10% K₂O CoG

1. A bulk density of 2.07g/cm³ was applied for all sylvinite mineralisation.
2. Zones of geological uncertainty have been excluded.
3. Table entries are rounded to the second significant figure.
4. Insoluble contents for the resource were not estimated but insoluble content of the seam intersections average less than 0.3% for the US, LS and HWS and 1.5% for the FWS,

Table 2:  Mineral Resource Estimate for Sylvinite and Carnallite Mineralisation at a 10% K₂O CoG (Includes the sylvinite Mineral Resources of Table 1)

1. A bulk density of 2.07g/cm³ was applied for all sylvinite mineralisation and 1.70 g/cm³ for carnallite mineralisation.
2. Zones of geological uncertainty have been excluded.
3. Table entries are rounded to the second significant figure.
4. Insoluble contents for the resource were not estimated but insoluble content of the seam intersections average less than 0.3% for the US, LS and HWS and 1.5% for the FWS.

4. Mining and Mineral Reserves

A comprehensive hydrogeological and geotechnical survey program was completed to determine mine design parameters to be applied in the estimation of Mineral Reserves. The hydrogeological program concluded that although the anhydrite sequence can be considered an aquitard, it did not occur in some 10% of the holes drilled. For this reason the salt back, which can be considered an aquitard, is relied upon for mine design purposes. The geotechnical parameters propose a conservative extraction ratio to protect the integrity of the salt back. All pillars are considered as permanent pillars, resulting in negligible subsidence.

The strength of potash material makes it amenable to a non-explosive mining method such as continuous miners ("CM").  The Mineral Reserve estimate was exclusively determined from Measured and Indicated Mineral Resources of sylvinite mineralisation from the Upper Seam Sylvinite ("USS") and Lower Seam Sylvinite ("LSS."). Because of the sharp grade boundaries of the sylvinite seams and the fact that the economic cut-off grade ("CoG") is below the Mineral Resource CoG of 10% K₂O, all sylvinite in the Measured and Indicated Mineral Resources was considered for possible conversion to Ore Reserves.

The estimation of Mineral Reserves allowed for:

• Mining recovery based on geotechnical extraction ratios;
• Exclusion of disturbance zones and buffer pillars around these zones; and
• Allowing for pillars around existing drillholes.

Room and pillar mining will be used with a minimum mining thickness of 1.8 m and a maximum thickness of 8.2 m.  A maximum mining height was not applied as multiple cuts can be taken with the CM.  Material from the CM will feed on to a shuttle car and then through a feeder breaker onto a system of conveyors for movement to surface.  A three main drive system is utilized where the center main houses the main conveyors and other two accesses are used for men/materials providing access to panels on either side of the mains.

Table 3 presents the Project Mineral Reserve, based on the PFS Mineral Resource model.

Table 3:  Project Mineral Reserve

The following parameters were used in creating the production schedule:

• Process Plant feed capacity of approximately 570 kt Run of Mine ore ("RoM") per month ;
• Mine one area completely prior to moving to another (southeast first, then northwest) to minimize ventilation and services requirements;
• Mine on retreat where possible;
• Mine USS prior to LSS mining in any one area;
• Five day panel change provision was included for each machine as it is moved from one panel to another; and
• A rate of 2,600 tonnes per day ("tpd") was used for each CM.  For production ramp up, 50% of this rate was used for the first 6 months, 75% for the next 6 months, and full production rate thereafter.

Table 4 shows a summarized annual production schedule for underground ore production.

Table 4:  Yearly Production Schedule

5. Metallurgy

Metallurgical testing was undertaken in 2011 to establish preliminary processing technology for the Project. Mineralogy analysis showed the sample was composed of 38% sylvite (24.2% K₂O). Insoluble content was less than 1% and consisted of anhydrite. The sample received was categorized as coarsely intergrown sylvinite. The low insoluble content and the ease of liberation size of the Project ore compare favourably with the best examples from Saskatchewan, Canada and other producing areas of the world. This allows for high recovery and competitive processing costs.

The results of the metallurgical test program indicate that the Project ore can be effectively processed using a conventional flowsheet consisting of rougher/ cleaner flotation followed by regrind flotation. Flotation recoveries of up to 94.8% were achieved in the laboratory. The mass balance was developed using METSIM (metallurgical process simulation software). A combination of the Saskatchewan Research Council ("SRC") test results and AMEC's potash experience was used to determine the inputs into the model.  This resulted in a process plant recovery of 91% at a feed grade of 39.6% KCl (25.0% K₂O). At the Life of Mine ("LoM") feedgrade of 20.02% K₂O, overall metallurgical recovery is projected at 89.5%.

Subsequent to the original metallurgical test program, testing was conducted on sylvinite samples for the lower grade portion of the Upper Seam ("US2") in May 2012. In addition, testing was conducted on material from the LSS  in July 2012. The objective of these test programs was to determine if the insoluble material composition and liberation size of the US2 and LSS were different from the higher grade portion of US1.

The insoluble content and composition of the US2 sample was similar to the US1 sample. The insoluble content of the LSS sample was lower than the US1 sample (0.1% versus 0.4%) The composition of the insolubles in the LSS sample included anhydrite (similar to the US1) and trace amounts of quartz.

The liberation size of the US2 and LS samples was also similar, with the liberation size of the US2 sample slightly coarser than the US1 sample and the liberation size of the LSS between that of the US1 and US2.  The same crushing process used for US1 will be suitable for US2 and LSS material.

Based on these results, the metallurgical performance of the US2 and LSS material is expected to be similar to that of the US1 material.

6. Infrastructure

The Project's infrastructure includes mine site facilities, a haul road and road trains, process site facilities, employee facilities and general infrastructure including power, natural gas, water supply and site access roads.

Mine site facilities include preparation of the overall platform, ancillary buildings and utilities (power, water, lighting, waste management).  Ore will be transported from the mine site to the process plant located on the coast along a 36 km dedicated haul road using a fleet of 21 road trains.

Process site facilities include the preparation of the overall platform, ancillary buildings and utilities (power, water, fuel, lighting, waste management).

The employee facilities are located approximately 5 km from the process plant and will accommodate approximately 950 people.

Electrical power will be sourced from the ROC national grid. A 220 kV transmission line will be constructed from the Mongo Kamba II substation south of Pointe Noire to the process plant, employee facilities and mine site, a distance of 92 km. The power demand is estimated to be 24 MVA at the mine site and 32 MVA at the coastal site.  The natural gas needed for product drying will be supplied by an 81 km long pipeline from the gas treatment plant at Cote-Mateve, 10 km south of Pointe Noire.

Fresh water will be supplied from wells located at each site.  The seawater required for process makeup water and for dissolution as part of the salt brine management will be supplied from seawater intake installed approximately 400 meters from the shoreline.

7. Marine

Bathymetric conditions support a transhipment solution that involves loading the potash from a jetty into barges, which transfer the product to Handymax or Panamax class vessels anchored approximately 6 nautical miles (11 km) from the coast. These barges are loaded from a 750 m long jetty, which supports the conveyor belt that delivers product from the process plant. The jetty will be protected by 250 m long breakwater structure.

8. Solid Residue and Brine Management

Two waste products, salt and insoluble, will be generated from the process and will be treated separately. The salt brine, generated as a waste product in the process plant, will be dissolved and diluted with seawater before being discharged into the ocean. Ocean disposal of highly saline brines is an accepted practice for desalination plants and has also been approved for the proposed Mengo Potash Project operation in the ROC based on compliance with IFC effluent guidelines.  Ocean disposal relies on post-discharge dilution; this approach is considered generally acceptable because the brine is a concentrated version of the elements that are already present in seawater. Beyond the natural mixing zone the brine is undetectable. The dilution rate has been modelled to result in a maximum salt content of 125 grams per litre following dilution. The brine is pumped via a pipe attached to the jetty, and discharged into the ocean via diffusers installed in the seabed where a dilution zone of 250 m was defined as acceptable. The insoluble residue will be pumped into a valley type impoundment in close proximity to the process plant, which will be raised in a downstream manner in approximately 3 year increments. The Residue Storage Facility (RSF) has been designed for a total mass of approximately 1.49 Mt of insoluble residue. This is based on a production rate of  7.74 tonnes per hour ("tph") insoluble residue over a LoM of 22 years. The RSF can accommodate approximately 1.66 Mm³ of insoluble residue.  The RSF will have a synthetic liner to prevent any seepage into the environment.  Saline supernatant recovered from the RSF will be pumped to the process plant for use as makeup water, with any excess solution pumped to the brine distribution tank to be mixed with the salt brine for disposal in the ocean.

9. Economics

Capital costs were developed for each scope area based in 2012 US dollars (US$).  These estimates allowed for direct costs only and SRK included an allowance for indirect costs in the economic modelling.  For the purpose of the Project PFS, initial capital is defined as any capital spent during construction and the ramp up period, while any capital spent after reaching nameplate capacity (2.0 Mtpa MoP)  is considered sustaining capital, unless otherwise specified.

Capital Cost Summary (US$ 2012)

To view the "Capital Cost by Discipline" chart, please click the following link: http://files.newswire.ca/1129/Capital_Cost.pdf

The operating costs are extracted from the economic model, which is based on cost estimates, the mine schedule and average LoM operating cost is estimated at US$79.71/tonne MoP (FOB).

Life of Mine Operating Costs by Cost Center

To view both the "Operating Costs by Discipline" and "Operating Costs by Element" charts, please click the following link: http://files.newswire.ca/1129/Operating_Costs(1).pdf

As the project timeline envisions implementation commencing in July, 2013, SRK brought the project capital and operating cost inputs to Q2, 2013 terms by applying a 2% escalation factor. This factor represents the high end of a compilation of surveys of economists as of September 7, 2012 (Wall Street Journal: Economic Forecasting Survey, September 2012). Potash price projections were not escalated.  The economic model start date is therefore July 2013.

To view the "Cash Flow Profile" chart, please click the following link: http://files.newswire.ca/1129/Cash_Flow_Profile.pdf

10. Sensitivities

To view the "Sensitivities" chart, please click the following link: http://files.newswire.ca/1129/Sensitivities_Chart.pdf

11. Permitting and Environmental

Sintoukola Potash S.A was awarded the Sintoukola exploration license on 13 August 2009 for a period of three years (the license can be extended twice for periods of two years). The Company has re-applied for this exploration license and has been informed that the application is in good standing.

A comprehensive social and environmental impact assessment ("SEIA") that meets national and international requirements is being undertaken. The SEIA is at an advanced stage, with social and biophysical baseline field studies nearly completed and associated reports currently being drafted.  A comprehensive understanding of baseline conditions has been developed through the field studies and analysis of data; this will form the basis for the subsequent impact assessment and development of mitigation measures.

As the Project is located in a sensitive biophysical and social environment, opportunities to minimize negative impacts have been identified and integrated with Project design throughout the prefeasibility phase. At the current stage in the SEIA process it appears that the majority of potential environmental impacts identified can be readily managed through the implementation of standard environmental management plans.   However, several material negative risks have been identified, including some related to social and community issues, which will warrant specific management measures in order to avoid Project delays and reputational damage.

The material risks relate to the environmental permitting process; meeting the expectations of conservation Non-governmental organizations ("NGO") and other stakeholders with respect to protecting biodiversity in the Project area; delays in land acquisition, resettlement and compensation (all of which are government-led processes); the need to build trust and constructive relationships with key stakeholders (in particular local communities and indigenous peoples); engagement and partnering with government authorities to manage influx of people to the Project area and effectively managing road safety on the upgraded service road and pedestrian access to the dedicated haul road.

Elemental is aware of these material risks and is developing a range of approaches to address them and manage the potential impacts on the Project. While the material negative risks are significant, with the implementation of appropriate mitigation measures and proactive management by Elemental, they should not represent fatal flaws for the Project.  Effective stakeholder engagement must remain a core element of Elemental's mitigation and management plans throughout the FS and the subsequent Project lifecycle (from construction to closure).

The SEIA should be completed as originally programmed, with submission of the national SEIA report in December 2012 and the international report in February 2013.  The impact assessment process and national and international SEIA reports should be updated on completion of the Feasibility Study ("FS"); the cost of updating will depend on the nature and extent of any significant changes to the Project description.

12. Milestones

Elemental management intends to continue the FS upon completion of the PFS.  Elemental will strengthen the Owner's Team during the FS and early works. The Engineering, Procurement, Construction and Management ("EPCM") approach to be followed by Elemental will be addressed during the FS and targets the following key milestones.

• Complete FS: Q3, 2013;
• Full construction implementation commences: Q4 2013;
• Mining commences: Q1, 2016;
• First product  shipped: Q3, 2016; and
• Achieve nameplate capacity (2 Mtpa MoP): Q1, 2017.

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The Company will be hosting a conference call to discuss the details of the PFS as follows:

Time: 11:00 Toronto time, 16:00 London time, 17:00 South Africa time

Dial in details:

The Technical Report supporting the Pre-Feasibility Study, meeting the requirements of NI 43-101, has been filed with the appropriate regulatory authorities.

About Elemental Minerals

Elemental Minerals Limited is an advanced mining exploration and development company that aims to grow shareholder value through its 93%-owned Sintoukola Potash Project on the Republic of Congo coastline.  Elemental Minerals is dual listed on the Australian Stock Exchange and the Toronto Stock Exchange under the symbol ELM. For more information, visit www.elementalminerals.com

Mineral Resource Summary - Kola Deposit of Project²

• The Project's Kola deposit currently contains 1.32 Billion Tonnes Measured and Indicated Mineral Resources with an average grade of 15.65% K₂O (24.78% KCl), and Inferred Mineral Resources of 948 Mt grading 16.20% K₂O (25.64% KCl), at a 10.0% K₂O cut-off grade.
  
  
• Within such Mineral Resources, the sylvinite portion contains 573Mt with an average grade of 20.92% K₂O (33.13% KCl) within the Measured and Indicated category and 475Mt of Inferred Mineral Resources grading 20.39% K₂O (32.27% KCl).
  
  
• Four main potash mineralised seams are present within the Kola deposit and are identified in stratigraphic and chronological order as: Hangingwall Seam (HWS), Upper Seam (US), Lower Seam (LS), and the Footwall Seam (FWS). The depth to the top of the Upper Seam is within 250 to 320 metres from surface.
  
  
• Exploration at Kola has focussed on the Upper and Lower Seams, which contain the bulk of the Mineral Resources defined to date. The Hangingwall Seam, which was discovered relatively recently, contributes 47Mt at an average grade of 34.75% K₂O (55.01% KCl) to the Inferred Mineral Resources, and the Footwall Seam 225Mt grading 17.63% K₂O (27.92% KCl) also in the Inferred category.
  
  
• The Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (The JORC Code), which is consistent with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards 2005 and hence complies with NI 43-101.

Competent Person / Qualified Person Statement:

All scientific or technical information ("Information") in this press release is based on information prepared and/or approved by Andrew Scogings, MSc, MAusIMM, MAIG, PhD (CSA), Jean Hector, Senior Geologist (EGIS), Jane Joughin, Pr.Sci.Nat., MSc (SRK), Johan Boshoff, MEng, P.Eng. (SRK), Neal Rigby, CEng MIMMM, PhD (SRK), Paul O'Hara, P.Eng. (AMEC) and Simon Dorling, MSc, MAIG, PhD (CSA) (collectively, the "Qualified Persons"), each of whom are independent of the Company and have sufficient experience which is relevant to the style of mineralisation 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" (the JORC Code) and as a Qualified Person for the purposes of Canadian National Instrument 43-101.  Each of the Qualified Person consents to the inclusion in this press release of the Information, in the form and context in which it appears.

Further information respecting Elemental's Sintoukola Potash Project and the PFS is contained in a technical report entitled ''NI 43-101 Technical Report, Sintoukola Potash Project, Republic of Congo'' dated September 17, 2012 with an effective date of September 17, 2012 (the "Technical Report"). The Technical Report can be accessed on the Company's profile on SEDAR.

Forward-Looking Statements

This press release (the "Release") contains ''forward-looking information'' within the meaning of applicable Canadian securities legislation. Wherever possible, words such as ''plans'', ''expects'', or ''does not expect'', ''budget'', ''scheduled'', ''estimates'', ''forecasts'', ''anticipate'' or ''does not anticipate'', ''believe'', ''intend'' and similar expressions or statements that certain actions, events or results ''may'', ''could'', ''would'', ''might'' or ''will'' be taken, occur or be achieved, have been used to identify forward-looking information.

Forward-looking statements in this Release may include, but are not limited to, statements regarding: future extraction, methodologies and the exploitation of mineral deposits; capital expenditure requirements; IRR and NPV of the Sintoukola Potash Project; expected production capacity; certain mining assumptions; cost estimates; product market assumptions; market price assumptions; transportation and marketing costs; life of mine production parameters; arable land per capita projections; estimation of Mineral Resources; the Company spending the funds available to it as stated in this Release; expectations regarding the Company's ability to subsequently raise capital; expenditures to be made by the Company to meet certain work commitments; work plans to be conducted by the Company; reclamation and rehabilitation obligation and liabilities; treatment under governmental regulatory regimes with respect to environmental matters; treatment under governmental taxation regimes; government regulation of mining operations; dependence on personnel and competitive conditions.

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. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. 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 Proven or Probable Mineral 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 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.

Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including risks related to: no history of mineral production; lack of revenue from operations; dependence on the Sintoukola Potash Project; uncertainty of estimates of Mineral Resources; lack of Proven or Probable Mineral Reserves; projections being materially different than results; challenge of title to the Project; failure to obtain approvals and licenses; adverse regulatory requirements; litigation; mining complexities; construction delays; potential for water ingress; potential for ground water access to Mineral Resources; adverse climate conditions; failure to secure suitable waste disposal permits; inadequate infrastructure; delays in gaining access to land; existence of cultural heritage on lands for which access is required; inability to recruit and retain key employees; unknown environmental risks; uninsurable risks; potential officer and director conflict of interest; inability to secure additional capital; global financial conditions; competition in the mining industry; cyclical demand for potash; weather patterns and natural disasters; volatility in potash prices; political and economic risks in the ROC; entitlement of the Congolese government to a stake in the Sintoukola Potash Project; enforcement of contractual rights in the ROC; exchange rate fluctuations; repatriation of funds; failure to declare funds prior to bringing them into the ROC; opposition from non-governmental organizations; lack of dividends; volatility and lack of liquidity of ordinary shares of the Company.

Although the forward-looking statements contained in this Release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this Release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

This Release does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever in any jurisdiction. Recipients of this Release who are considering acquiring securities of the Company are reminded that any such purchase or subscription must not be made on the basis of the information contained in this Release but are referred to the entire body of publicly disclosed information regarding the Company.

The information contained in this Release is derived solely from otherwise publicly available information concerning the Company and does not purport to be all-inclusive or to contain all the information that an investor may desire to have in evaluating whether or not to make an investment in the Company. The information is qualified entirely by reference to the Company's publicly disclosed information.

This Release is being supplied to you solely for your information and may not be reproduced, further distributed or published in whole or in part by any other person. Neither this Release nor any copy of it may be taken or transmitted into or distributed in Canada, the United States or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of applicable securities laws.

No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of their subsidiary undertakings or any of the directors, officers or employees of any such entities as to the accuracy, completeness or fairness of the information or opinions contained in this Release and no responsibility or liability is accepted by any person for such information or opinions.  In furnishing this Release, the Company does not undertake or agree to any obligation to provide the attendees with access to any additional information or to update this Release or to correct any inaccuracies in, or omissions from, this Release that may become apparent.  The information and opinions contained in this Release are provided as at the date of this Release.  The contents of this Release are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial or tax advice.

www.elementalminerals.com

¹ Fertecon Potash Outlook - Issue 2012 (1). Brazil CFR, standard MoP product price forecasts for the LoM were used as a basis to calculate a price for granular MoP product. For comparison, Fertecon Potash Outlook - Issue 2012 (1) forecasts a Vancouver FOB standard MoP product price of $492 for the same period. (2012 US$ terms).

² An Updated Mineral Resource was announced on the 21^st August 2012. 

SOURCE Elemental Minerals Limited

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