Elementos Limited Grants 500,000 Unquoted Options to Executive Director Drew Speedy Under Employee Incentive Program

Details of the 500,000 Option Grant to Drew Speedy

On 2 July 2026, Elementos Limited submitted an Appendix 3G notification to the ASX disclosing the issuance of 500,000 options under its employee incentive scheme. These options, identified by security code ELTAD—classified as "Option Expiring Various Dates Ex Various Prices"—were granted directly to Drew Speedy, with joint registration alongside Mrs Caroline Speedy.

The options carry a strike price of $0.60 each and expire on 30 November 2029, providing approximately three and a half years from the date of issue to exercise. Elementos confirmed that these options rank equally with existing securities in the ELTAD class from their issue date. Consistent with their classification, these options are unquoted and not intended for ASX trading.

Drew Speedy’s Role as Key Management Personnel at Elementos

Drew Speedy is identified as a Key Management Personnel (KMP) member of Elementos Limited. Under ASX Listing Rules and the Corporations Act, the issuance of securities to KMP requires disclosure, which this notification satisfies. The joint registration with Mrs Caroline Speedy reflects a common practice for securities issued under Australian employee incentive schemes.

Granting options to KMP aligns senior management’s financial interests with shareholders. The $0.60 exercise price means the options provide value only if Elementos’ share price exceeds this level before expiry, incentivizing performance that enhances shareholder value. The company did not provide further details on Drew Speedy’s specific responsibilities in this announcement.

Incentive Structure Defined by $0.60 Exercise Price and November 2029 Expiry

The $0.60 exercise price is a critical element of this incentive. For the options to have intrinsic value, Elementos’ ordinary shares (ELT) must trade above $0.60 at exercise. This creates a direct financial motivation for the KMP to support share price growth during the options’ lifespan. The immediate market impact of this issuance was not evident from available public data.

The 30 November 2029 expiry provides a multi-year window for potential option exercise, aligning with the extended timelines typical in mineral exploration and development. Investors may consider how the company’s project milestones over this period correspond with the incentive timeframe.

Elementos’ Capital Structure After the Option Grant

Following the issuance of the 500,000 ELTAD options, Elementos’ capital structure includes 438,306,375 ordinary fully paid shares (ELT) quoted on the ASX, 11,450,000 unquoted ELTAD options, and 4,680,000 unquoted performance rights under the ELTAA class. The company noted that these figures may not reflect the current issued capital if other filings are pending with the ASX.

The total ELTAD options pool, now including the newly issued options to Drew Speedy, encompasses all options across varied exercise prices and expiry dates within that class. The ELTAA performance rights represent a separate category of unquoted securities with distinct vesting conditions, not detailed in this notification. Investors assessing dilution risk should consider the combined unquoted securities in their evaluation of the company’s capital structure.

ASX Listing Rule 7.2 Exception 13 Explains Absence of Shareholder Approval

Elementos confirmed the issuance was made under Exception 13 of ASX Listing Rule 7.2, exempting it from shareholder approval requirements under Listing Rule 7.1. While Listing Rule 7.1 limits new equity securities issued without shareholder approval to 15% of issued capital within 12 months, Rule 7.2 provides exceptions, including securities issued under approved employee incentive schemes.

This exemption facilitates efficient administration of employee and management incentive programs without the need for shareholder meetings for each grant. For full terms of the employee incentive scheme, the company directs readers to its website at www.elementos.com.au. Investors interested in vesting conditions or performance hurdles should consult this documentation.

Implications of the Options’ Unquoted Status for Trading

The ELTAD options are unquoted, meaning they are not tradable on the ASX like ordinary shares. Such options typically have transfer restrictions and serve to provide recipients with potential future economic benefits linked to share price performance rather than functioning as freely tradable instruments.

This status means retail investors cannot buy or sell these options on the market. Their importance lies in signaling management’s incentive alignment and the potential dilution of ordinary shares if exercised. Should all 11,450,000 ELTAD options be exercised, they would convert into new ordinary shares within the existing base of 438,306,375 shares—a dilution factor commonly evaluated by investors in the small-cap resources sector.

Context of Elementos Limited’s Employee Incentive Scheme

Employee and management incentive schemes are standard among ASX-listed companies, particularly in resources and exploration, where attracting and retaining talent is challenging. By issuing options and performance rights instead of cash bonuses or salary increases, companies like Elementos conserve working capital, critical for exploration and development stages, while offering competitive remuneration.

The presence of both ELTAD options and ELTAA performance rights indicates a layered incentive approach. Options typically reward share price appreciation, while performance rights often link to operational or corporate milestones. Together, these instruments align management’s financial rewards with shareholder outcomes. No further details on scheme structure or performance conditions were disclosed in this notice.

Governance and Disclosure Reflected in the Notification

The Appendix 3G filing is a mandatory disclosure under ASX Listing Rules when issuing unquoted equity securities, especially to KMP. By lodging this promptly on 2 July 2026, Elementos met its continuous disclosure obligations. The detailed information on KMP identity, registered holders, security quantity, exercise price, and expiry aligns with standard ASX practices.

For investors and analysts, this notification enhances transparency regarding Elementos’ remuneration policies and senior management incentives. It contributes to the public record of equity-based compensation, which will be reflected in the company’s annual report. Shareholders concerned about the volume of options relative to issued capital may review the upcoming annual report for additional context.

Investor Considerations Moving Forward

Beyond this administrative update, investors should focus on Elementos’ project developments and operational milestones. The management options’ expiry in November 2029 highlights a multi-year horizon for the company’s growth, relevant for assessing project timelines.

Investors should monitor announcements on exploration results, resource updates, financing, or corporate changes that could affect share price relative to the $0.60 exercise price. Additional grants, changes to performance rights, or option exercises will likely prompt further Appendix 3G or related disclosures. The company’s website at www.elementos.com.au remains the primary source for full employee incentive scheme terms.