Announcement PDF INTERIM REPORT INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2025 Element 25 Limited ABN 46 119 711 929 ASX E25 element25.com.au 2025 ANNUAL REPORT | 3 TABLE OF CONTENTS Chairman’s Letter 04 Principal Activities and Review of Operations 06 Directors' Report 18 Audit Independence Declaration 27 Corporate Governance Statement 28 Consolidated Statement of Profit or Loss and Other Comprehensive Income 30 Consolidated Statement of Financial Position 31 Consolidated Statement of Changes in Equity 32 Consolidated Statement of Cash Flows 33 Notes to the Consolidated Financial Statements 34 Directors' Declaration 64 Independent Auditor’s Report 65 ASX Additional Information 105 Corporate Directory 107 TABLE OF CONTENTS 3 Principal Activities and Review of Operations Directors' Report 4 Auditor’s Independence Declaration 13 Consolidated Statement of Comprehensive Income 14 Consolidated Statement of Financial Position 15 Consolidated Statement of Changes in Equity 16 Consolidated Statement of Cash Flows 17 Notes to the Consolidated Financial Statements 18 Directors' Declaration 24 Independent Auditor’s Report 25 Corporate Directory 27 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 3 PRINCIPAL ACTIVITIES AND REVIEW OF OPERATIONS Overview Element 25 Limited (Element 25, E25 or Company) (ASX: E25; OTCQX: ELMTF) operates the Butcherbird Manganese Project (Butcherbird or Project), 130km south of Newman in the Pilbara region of Western Australia, which hosts Australia’s largest onshore manganese resource with JORC resources of 274Mt of manganese ore1 . Element 25’s goal is to become an industry leading sustainable battery materials manufacturer, producing high quality manganese concentrate and battery grade High Purity Manganese Sulphate Monohydrate (HPMSM) products for traditional and new energy markets. Having completed a Feasibility Study (HPMSM FS) for the project in April 20232 , Element 25 plans to construct a HPMSM facility in Louisiana – the first of its kind in the USA. The proposed HPMSM facility will use concentrate from Element 25’s mining and processing operations at Butcherbird as feedstock for the refining process. The proposed HPMSM facility is supported by key offtake and funding commitments from General Motors LLC (GM) and Stellantis N.V. (Stellantis)3 . Additionally, Element 25 was awarded US$166 million (AU$268 million)4 in grant funding for the project from the U.S. Department of Energy (DoE) in January 20255 to support the project. Element 25 has also commenced works to upgrade its Butcherbird operations to 1.1Mtpa of manganese concentrate production6 , targeting commercial production by Q1 CY2027 (the Butcherbird Expansion Project or BBX). The expanded processing operation is based on an 18 year Reserve7 . Operational highlights for the first half of FY2026 included: • AU$50 million secured senior debt facility from Northern Australia Infrastructure Facility (NAIF)8 . • AU$10 million share placement completed to fund early works related to BBX, and for working capital. • Detailed engineering design initiated for BBX with appointment of Perth-based Altris Engineering (Altris) as lead engineering consultant9 . • BBX Process improvement studies completed, targeting potential cost savings and execution flexibility options. • Mining services contract tender approaching final selection; key processing equipment procured10 . 1 E25 ASX Announcement dated 22 January 2025 2 E25 ASX Announcement dated 12 April 2023 3 E25 ASX Announcements dated 9 January 2023 and 26 June 2023 4 USD:AUD conversion rate 0.62. Reference: www.xe.com 5 E25 ASX Announcement 20 January 2025 6 E25 ASX Announcement date 22 January 2025 7 E25 ASX Announcement dated 22 January 2025 8 E25 ASX Announcement dated 17 June 2025 9 E25 ASX Announcement dated 22 October 2025 10 E25 ASX Announcement dated 25 November 2025 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 4 DIRECTORS’ REPORT Your Directors submit their financial report for the consolidated entity (the Group, the Company or Element 25) consisting of Element 25 Limited and its controlled entities for the half year ended 31 December 2025. Directors The names of Directors who held office during or since the end of the half-year are set out below. Directors were in office for this entire period unless otherwise stated: • John Ribbons Non-Executive Chair • Justin Brown Managing Director • Sam Lancuba Non-Executive Director • Fanie Van Jaarsveld Non-Executive Director (resigned effective 1 January 2026) Company Secretary • Michael Jordon INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 5 BUTCHERBIRD OPERATIONS Safety For the six months ending December 2025, Element 25 recorded 0 (nil) Lost Time Injuries (LTI) and 0 (nil) Medical Treatment Injuries (MTI). Butcherbird Expansion Project (BBX) Element 25 completed a Feasibility Study for its Butcherbird Expansion Project (BBX) in January 2025, which estimated a capital cost of AU$64.8 million with a pre-tax Net Present Value (NPV) of AU$561 million with a 96% pre-tax Internal Rate of Return (IRR), generating an average of AU$70.5 million per year cashflow over a mine life of more than 18 years11 . Butcherbird’s expansion will supply traditional steel markets and also underpin the long-term supply of manganese concentrate feedstock for Element 25’s planned battery grade, high purity manganese sulphate monohydrate (HPMSM) processing facility which it plans to build in Louisiana, USA. In September 2025, Element 25 completed a AU$10 million share placement12 to fund detailed engineering works and long lead item procurement activities for BBX. The Placement followed the announcement in June 202513 of a AU$50 million senior debt facility secured from the Northern Australia Infrastructure Facility (NAIF). The Placement settled on 19 September 2025. In October 2025, Element 25 announced the appointment of Perth-based Altris Engineering (Altris) to lead BBX and undertake all detailed engineering design for the project14 . Altris is an engineering consultancy providing practical and innovative solutions to clients in the mineral processing sector. Element 25 and Altris have implemented an Integrated Project Team (IPT) methodology, with Element 25 engineering personnel embedded and located with the Altris team to ensure collaboration and information sharing are maximised. Early process and cost improvement studies 11 E25 ASX Announcement dated 22 January 2025 12 E25 ASX Announcement dated 12 September 2025 13 E25 ASX Announcement dated 17 June 2025 14 E25 ASX Announcement dated 22 October 2025 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 6 have commenced with benefits being identified relating to cost-saving and execution flexibility opportunities. Altris has expanded its team in line with the ramp up of project resourcing requirements as the project advances towards commencement of construction. The IPT is focussed on refinement and further definition of the core engineering detail including trade-off studies, site layout, detailed cost range analysis and a review of pricing and quantities with the previous project cost estimate as the baseline. Commercial Contracts Mining Services Contract Element 25’s Procurement Team has materially advanced the tender process to secure a suitable mining services contractor to support expanded mining operations at Butcherbird. The team is evaluating proposals from participating contactors, based on key selection criteria including contractor experience, capability and value for money. Applicants have been short-listed and the tender assessment process continues. INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 7 Crushing and Mineral Sizer Solutions Element 25 selected mineral sizers from MMD as the preferred equipment for this application, and a procurement contract signed with MMD to supply both the primary and secondary sizer units along with critical spares and commitment for commissioning support and post-commissioning maintenance services. Equipment delivery is scheduled to align with the overall project plan and will be closely monitored. Logwasher The logwasher is a large-scale scrubbing unit with two counter-rotating paddle shafts that scrub the feed while an opposing water flow separates liberated fines discharging clean product at the upper outlet of an inclined trough. This is a key step on the process flowsheet for BBX, where the process aims to liberate the lump manganese product for the intercalated lateritic clay material. Element 25 engaged KISA Gmbh to supply a logwasher unit with a nominal 600 t/h federate and max 11° gradient. The unit has been carefully selected for the proposed BBX use case. The logwasher has been manufactured and awaits transportation to the Project site in accordance with the current schedule. Logistics Element 25 maintains a close partnership with REGROUP, the logistics service provider which supported the Stage 1 operations at Butcherbird, providing road haulage services for manganese concentrate from the Butcherbird mine site. Element 25 is negotiating a road haulage agreement for the BBX Project with REGROUP to provide for increased volumes as well as more efficient material movement through revised equipment selection and scheduling and improved analytics as well as a broader review of contract terms. As the largest cost of the proposed operation, both parties are working together to maximise efficiencies and reduce transportation costs, with identifying opportunities for continuous improvement being a key priority. As per the Stage 1 Butcherbird operations, the Company will utilise the Utah Point common user facilities in Port Hedland to export manganese concentrate cargos, with adjustments to the logistics plan being developed to accommodate the larger volumes and optimise the overall transport costs. Offtake Discussions remain ongoing with a several key counterparties to finalise offtake for the increased production from BBX. The manganese concentrate product produced at the Butcherbird Mine has a unique set of properties which make it attractive to smelters, particularly in the silico-manganese market. These attributes include a high silica content (>20%), low levels of deleterious contaminants such as phosphorous, heavy metals and arsenic, a suitable iron-manganese ratio and a physical INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 8 competency which minimises fragmentation and fines generation which can be important for transport and in smelting operations. The Company continues to refine the terms of the offtake under these negotiations and plans to finalise the preferred offtake partner and commercial terms as soon as practicable. Core Operating Systems The Core Operating and Business Intelligence Systems are key for the success of both the BBX Project and the long-term operations of the Butcherbird Manganese Mine. Element 25’s procurement team is working with selected consultants to develop the solution design document and define the scope of work for the core systems and associated infrastructure, including its Enterprise Resource Planning (ERP) system. These systems will provide the foundation for Element 25’s vision to deliver a highly granular digital business intelligence system with detailed visibility on all operational elements form pit-to-port to support ongoing efficiency improvements, optimise product quality and reduce costs. As a long-term operation, it is critical that the Butcherbird Mine utilises a future-facing technology strategy to maintain its competitive edge as the world moves towards the expanded adoption of real- time data driven automated decision making to maximise performance across all key metrics including safety, performance, and profitability. Permitting and Approvals The Element 25 Butcherbird Project is fully approved under the Western Australian Regulatory Framework to construct the 1.1Mpta processing plant15 . The Company has maintained all regulatory approvals from the Stage 1 pilot plant operations through ongoing compliance and regular statutory reporting. The environmental licence, water abstraction licence, heritage clearances, native title and pastoral agreements are in place and continue to remain applicable. An established Tailings Storage Facility (TSF) is fully approved to support the storage requirements of the expansion for the first six years of operations and subsequent staged lifts and engineering designs have been completed to sustain the current Reserve life of the project. To reflect the expanded processing plant footprint and increase in throughput, the Mining Proposal and Mine Closure Plan were updated and approved in December 2024 by the Department of Mines, Petroleum and Exploration (DMPE, formerly DMIRS)16 . The Works Approval for the construction of 15 E25 ASX Announcement dated 12 March 2025 16 E25 ASX Announcement dated 13 January 2025 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 9 the expanded processing facility project was approved by the WA Department of Environment and Regulation (DWER) in March 2025. Project Schedule The schedule for BBX is continually updated to accommodate commercial contracting, supplier engagement, completed works, and alignment with the project plan, including activities that are forecasted, planned, commenced and achieved (Figure 1). The work breakdown structure (WBS) is comprehensive, with significant interdependencies among tasks and activities. The team remains dedicated to maintaining project timelines and budgetary objectives. The schedule remains subject to a number of key dependencies including achieving project financial close, completion of detailed engineering, procurement of key equipment and finalising contracts in accordance with the planned key dates and continues to be monitored as BBX progresses. Figure 1: Butcherbird Expansion Project Timeline Summary HPMSM FACILITY DEVELOPMENT, LOUISIANA Element 25 plans to build and operate a first-of-its-kind, environmentally sustainable refining facility in the Baton Rouge area, Louisiana, to produce HPMSM, a critical raw material in lithium-ion batteries. The planned 230,000 square-foot (~21,000m2 ) HPMSM refining facility that will employ an innovative process to produce approximately 71,650 tons (65,000 metric tonnes) of HPMSM annually from the first processing train using manganese ore sourced from its Butcherbird manganese mine. It will be one of the first commercial facilities to produce HPMSM in the U.S., reducing current dependency on Chinese sources. The Facility will create hundreds of highly skilled construction and permanent jobs for Louisianans. In January 2025, Element 25 was formally awarded a US$166 million grant from the U.S. Department of Energy (DoE) under its Manufacturing and Energy Supply Chains (MESC) Battery Materials Processing Grant Program. This landmark funding will support the construction of E25’s INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 10 proposed HPMSM facility in Louisiana, USA, which will bring domestic production of a key critical battery raw material to the USA. The grant forms a key component of Element 25’s financing strategy, in addition to commitments by offtake partners GM and Stellantis, and its execution team will now work to finalise the project schedule, subject to grant finalisation. LAKE JOHNSON PROJECT, WA During the period, Element 25 continued exploration activities at its Lake Johnston Project, 500km east of Perth in Western Australia, to follow up on targets defined in an earlier study. On-ground investigations by Element 25 personnel confirmed pegmatite occurrences within the project area. The project remains prospective for gold and lithium and exploration is continuing. BUSINESS DEVELOPMENT Proposed Japanese HPMSM Facility In September 2024, Element 25 signed a non-binding Memorandum of Understanding with Nissan Chemical Corporation and NC Tokyo Bay Corporation to complete a pre-feasibility study into a battery grade HPMSM facility to be located at the existing NCTB site in Chiba prefecture, Japan17 . The potential for a HPMSM facility to be built using the unique Element 25 flowsheet supplied with Butcherbird manganese concentrate fits well with Element 25’s strategy of building multiple refineries to serve various global markets. As announced in April 2025, the parties completed a high-level scoping study, which examined a range of factors, including permitting, logistics, reagent supply, labour, capital and operating costs. The Study confirmed the potential feasibility of the Facility and identified no fatal flaws, and the parties have agreed to proceed to a more detailed investigation18 . Site investigation activities are ongoing and the parties have a targeted final investment decision date of June 2026. CORPORATE Director Retirement In December 2025, the Company announced the retirement of Rudolph (Fanie) van Jaarsveld from its Board of Directors and his position as a Non-Executive Director, effective 1 January 202619 . Fanie will remain as a consultant to the Company and will continue to bring his valuable operational experience to the delivery of the Butcherbird Expansion Project as required. 17 E25 ASX Announcement dated 3 September 2024 18 E25 ASX Announcement dated 2 April 2025 19 E25 ASX Announcement dated 19 December 2025 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 11 Subscription Agreement As part of its ongoing capital management strategy, subsequent to year-end, the Company signed an At-the-Market Subscription Agreement (ATM) with Acuity Capital Investment Management Pty Ltd (Acuity Capital) to provide Element 25 with up to $30 million of standby equity capital over the coming 36-month period. This standby facility may be used to fund the expansion of the Butcherbird Project, working capital and to fund Company growth. Under the ATM, Element 25 has full discretion as to whether or not to utilise the ATM, the maximum number of shares to be issued, the minimum issue price of shares and the timing of each subscription (if any). There are no requirements on Element 25 to utilise the ATM and the Company may terminate the ATM at any time, without cost or penalty. Acuity Capital and the ATM do not place any restrictions on Element 25 raising capital through other methods. If Element 25 does decide to utilise the ATM, it is able to set a floor price (at its sole discretion) and the final issue price will be calculated as the greater of that floor price set by Element 25 and up to a 10% discount to a Volume Weighted Average Price (VWAP) over a period of Element 25's choosing (again, at the sole discretion of Element 25). As security for the ATM, the Company has an existing placement 9,500,000 fully paid ordinary E25 shares to Acuity Capital at nil cash consideration. Upon termination or maturity of the ATM, Element 25 may buy back (and cancel) the shares placed as security for nil cash consideration (subject to shareholder approval20 ). RESULTS During the half year ended 31 December 2025, the Company had total of $102,207 other income (2024: $94,170). There was no revenue generated in respect of sales of Manganese Ore due to Butcherbird Expansion. During the period the Company recognised cost of sales of $410,430 (2024: $1,394,503) in respect to the costs incurred for care and maintenance across critical operational areas including mining, processing and distribution. During the period, the Company incurred general and administration expenditure amounting to $1,577,028 (2024: $1,128,529), including corporate administration expense of $1,379,633 (2024:$1,055,118), depreciation of Property, Plant and Equipment of $5,890 (2024: $57,902),depreciation of right of use asset of $12,916 (2024: $14,303), and $178,589 (2024: $1,206) on loss of foreign exchange, loss of sales of assets, share-based payment expense, and fair value loss on remeasurement of financial assets. This has resulted in an operating loss after income tax for the half year ended 31 December 2025 of $1,900,733 (2024: $2,435,181). 20 E25 ASX Announcement dated 27 January 2026 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 12 The Group had a cash balance of $7,772,915 as at 31 December 2025. 2025 2024 $ $ Basic and diluted loss per share (cents) (0.71) (1.10) SIGNIFICANT EVENTS AFTER THE BALANCE DATE No other matters or circumstances, besides those disclosed at note 14, have arisen since the end of the period which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods. DIVIDENDS No dividends were paid or declared during the half year. No recommendation for payment of dividends has been made. AUDITORS INDEPENDENCE DECLARATION A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 12 Signed in accordance with a resolution of the Directors. Justin Brown Managing Director Perth, 12 March 2026 PricewaterhouseCoopers, ABN 52 780 433 757 Brookfield Place, Level 15, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840 T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au pwc.com.au Auditor’s Independence Declaration As lead auditor of Element 25 Limited's financial report for the half-year ended 31 December 2025, I declare that, to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review of the financial report; and b) no contraventions of any applicable code of professional conduct in relation to the review of the financial report. Adam Thompson Perth Partner 12 March 2026 PricewaterhouseCoopers Liability limited by a scheme approved under Professional Standards Legislation. | 13 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 14 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 Note 31 Dec 2025 31 Dec 2024 $ $ Revenue 3 - 3,494 Cost of sales 4 (410,430) (1,394,503) GROSS PROFIT (410,430) (1,391,009) Other income 102,207 99,407 General and administration expenses 5 (1,577,028) (1,128,529) Finance expense (15,482) (15,050) LOSS BEFORE INCOME TAX (1,900,733) (2,435,181) INCOME TAX EXPENSE - - LOSS FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY (1,900,733) (2,435,181) OTHER COMPREHENSIVE INCOME Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 99 1,166 Other comprehensive loss for the year, net of tax 99 1,166 TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY (1,900,634) (2,434,015) LOSS PER SHARE FOR LOSS ATTRIBUTABLE TO THE ORDINARY EQUITY HOLDERS OF THE COMPANY Basic and diluted loss per share (cents per share) (0.71) (1.10) The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 15 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025 Note 31 Dec 2025 30 Jun 2025 $ $ CURRENT ASSETS Cash and cash equivalents 7,772,915 2,162,007 Trade and other receivables 304,401 486,840 Inventory 6 6,877,734 6,877,734 Financial assets at fair value through profit or loss 280,000 338,740 TOTAL CURRENT ASSETS 15,235,050 9,865,321 NON-CURRENT ASSETS Restricted cash 528,560 528,560 Property, plant and equipment 7 52,036,719 49,237,837 Deferred exploration and evaluation expenditure 2,542,254 2,329,506 Right of use asset 173,635 272,585 TOTAL NON-CURRENT ASSETS 55,281,168 52,368,488 TOTAL ASSETS 70,516,218 62,233,809 CURRENT LIABILITIES Trade and other payables 8 1,960,622 1,578,679 Provisions 9 3,593,369 3,610,799 Lease Liability 124,369 175,970 TOTAL CURRENT LIABILITIES 5,678,360 5,365,448 NON-CURRENT LIABILITIES Lease Liability 62,365 106,403 Provisions 9 1,690,582 1,690,582 TOTAL NON-CURRENT LIABILITIES 1,752,947 1,796,985 TOTAL LIABILITIES 7,431,307 7,162,433 NET ASSETS 63,084,911 55,071,376 EQUITY Issued capital 10 147,718,937 138,008,278 Reserves 7,827,991 7,624,382 Accumulated losses (92,462,017) (90,561,284) TOTAL EQUITY 63,084,911 55,071,376 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 16 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 Note Contributed Equity Share-Based Payments Reserve Foreign Currency Translation Reserve Accumulated Losses Total $ $ $ $ $ BALANCE AT 1 JULY 2024 134,533,276 7,293,065 (1,461) (84,693,418) 57,131,462 Loss for the period - - - (2,435,181) (2,435,181) OTHER COMPREHENSIVE INCOME Exchange differences on translation of foreign operations - - 1,166 - 1,166 TOTAL COMPREHENSIVE LOSS - - 1,166 (2,435,181) (2,434,015) TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Shares issued during the period 643,145 - - - 643,145 Share issue transaction costs (18,143) - - - (18,143) Share-based payments - 235,657 - - 235,657 Revaluation of equity settled share- based payments - 27,750 - - 27,750 BALANCE AT 31 DECEMBER 2024 135,158,278 7,556,472 (295) (87,128,599) 55,585,856 BALANCE AT 1 JULY 2025 138,008,278 7,622,698 1,684 (90,561,284) 55,071,376 Loss for the period - - - (1,900,733) (1,900,733) OTHER COMPREHENSIVE INCOME Exchange differences on translation of foreign operations - - 99 - 99 TOTAL COMPREHENSIVE LOSS - - 99 (1,900,733) (1,900,634) TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Shares issued during the period 10 10,170,481 - - - 10,170,481 Share issue transaction costs 10 (459,822) - - - (459,822) Share-based payments - 203,510 - - 203,510 BALANCE AT 31 DECEMBER 2025 147,718,937 7,826,208 1,783 (92,462,017) 63,084,911 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 17 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 Note 31 Dec 2025 31 Dec 2024 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 62,912 184,109 Payments to suppliers and employees (1,593,669) (3,019,965) Interest received 47,414 45,945 Interest paid - (8,890) NET CASH OUTFLOW FROM OPERATING ACTIVITIES (1,483,343) (2,798,801) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets 94,088 - Payments for plant and equipment (2,423,257) (4,105,588) Payments for tenement (178,240) (442,729) NET CASH OUTFLOW FROM INVESTING ACTIVITIES (2,507,409) (4,548,317) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issues of ordinary shares 10 10,170,481 643,145 Payment of share issue transaction costs 10 (459,822) (18,143) Principal lease repayments (104,879) (194,479) NET CASH INFLOW FROM FINANCING ACTIVITIES 9,605,780 430,523 NET DECREASE IN CASH AND CASH EQUIVALENTS 5,615,028 (6,916,595) Cash and cash equivalents at the beginning of the period 2,162,007 11,326,929 Effects of exchange rate changes on cash and cash equivalents (4,120) 206,017 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 7,772,915 4,616,351 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 18 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025 1. BASIS OF PREPARATION These interim consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 Interim Financial Reporting, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (AASB). Compliance with AASB 134 ensures compliance with IAS 34 Interim Financial Reporting. During the period ended 31 December 2025, the Butcherbird site remained in care and maintenance to enable progression of the Butcherbird Stage 2 Expansion project and the HPMSM project. Following the Company securing a senior debt facility of up to AU$50 million from NAIF in June 2025, the Group received AU$10 million Share Placement in September 2025. In addition, the Company has extended the At-the-Market Subscription Agreement (ATM) with Acuity Capital to provide the Company with up to $30 million of standby equity capital over the coming 36-month period to support the Butcherbird Expansion Project, working capital and broader the Company growth. Based upon these factors, the Directors has reasonable grounds to believe the Company will be able to continue as a going concern for the foreseeable future, and accordingly, prepare the financial report on a going concern basis. It is recommended that this interim financial report be read in conjunction with the annual financial report for the year ended 30 June 2025 and any public announcements made by Element 25 Limited and its subsidiaries during the half-year ended 31 December 2026 in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the Australian Securities Exchange (ASX) Listing Rules. The half-year financial report covers the consolidated group comprising Element 25 Limited and its subsidiaries. The company is a for-profit company limited by shares and incorporated in Australia, whose shares are publicly traded on the ASX. Material Accounting Policies The accounting policies applied in these financial statements are consistent with those applied by the Company in the 30 June 2025 consolidated financial statements, and the