diff --git a/diskimage_builder/elements.py b/diskimage_builder/elements.py
index 9c441c10..d8504428 100644
--- a/diskimage_builder/elements.py
+++ b/diskimage_builder/elements.py
@@ -50,7 +50,8 @@ def dependencies(element, elements_dir=None):
             else:
                 raise
 
-    sys.stderr.write("ERROR: Element %s doesn't exists\n" % (element, ))
+    sys.stderr.write("ERROR: Element '%s' not found in '%s'\n" %
+                     (element, elements_dir))
     exit(-1)
 
 
diff --git a/diskimage_builder/test_elementdeps.py b/diskimage_builder/test_elementdeps.py
index be704f33..4937e4d6 100644
--- a/diskimage_builder/test_elementdeps.py
+++ b/diskimage_builder/test_elementdeps.py
@@ -52,6 +52,10 @@ class TestElementDeps(TestCase):
                                      elements_dir=self.element_dir)
         self.assertEquals(set(['requires-foo', 'foo']), result)
 
+    def test_missing_deps(self):
+        self.assertRaises(SystemExit, expand_dependencies, ['fake'],
+                          self.element_dir)
+
     def test_transitive_deps(self):
         result = expand_dependencies(['requires-requires-foo'],
                                      elements_dir=self.element_dir)