(Convenience translation of the audit report and financial statements originally issued in Turkish)

İPEK DOĞAL ENERJİ KAYNAKLARI ARAŞTIRMA VE ÜRETİM A.Ş.

CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024 TOGETHER WITH INDEPENDENT AUDITOR'S REPORT

Table of contents	Pages
Report on the audit of consolidated financial statements 1-6
Consolidated statement of financial position 7-8
Consolidated statement of profit or loss and other comprehensive income 9
Consolidated statement of changes in equity 10
Consolidated statement of cash flow11
Explanatory notes to the consolidated financial statements 12-84

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Capitalized mining assets The Group capitalizes the expenses made in the applied for the mining assets capitalized: following cases; · Where the development costs incurred in the mine sites are highly likely to obtain an economic benefit costs capitalized for each mine site, in the future from the mine in question, can be defined for certain mining areas and the cost can be measured reliably, sites, - When there are direct costs incurred during	Key Audit Matters	How our audit addressed the key audit matter

		The following audit procedures have been
		Evaluation of the content of development
		Meeting with the responsible executives of the Group's departments for mining
stripping and rehabilitation costs, part of the ore in each open pit ore deposit and overhead costs associated with stripping,	stripping work that facilitates access to the defined	Detailed testing on development,
the Checking compliance management evaluations with - When the provision for expenses that are likely to be spent during the closure and rehabilitation of mines are reduced cost values as of the balance sheet date, reclamation, rehabilitation and closure benefit, costs according to the current conditions of the		of the independent valuation report on mineral reserves of expected future economic
mine fields that arise due to the open pit mine development activities and the production in the with the actualized ones. open pit		Testing the capitalized rehabilitation, land and rights costs by comparing them
The share of the capitalized development costs in the statements financial consolidated dated December 31, 2024, the management judgments applied during the capitalization of the related costs and the complexity and significance of the explanatory notes. assumptions are significant to our audit. Thus capitalized mining assets have been identified as a key audit matter.		Within the scope of the above-mentioned specific accountings, questioning the appropriateness of the information in the consolidated financial statements and
Detailed explanations about the capitalized mining assets can be found in Note 2.5 and Note 14.

Application of the hyperinflationary accounting
As stated in Note 2.1 to the consolidated financial	Our audit procedures included the following;
statements, the Group continues to apply TAS 29	Inquired of management responsible for
"Financial Reporting in Hyperinflationary	financial reporting on the principles,
Economies" as the functional currency of the	which they have considered during the
Group (Turkish Lira) is considered a currency of	application of TAS 29, identification of
hyperinflationary	non-monetary accounts and performing
economy	testing over TAS 29 models designed,
as	Testing the inputs and indices used, to
of	ensure completeness and accuracy of
ர	the calculations.
December 31, 2024.	Auditing
In accordance with TAS 29, consolidated	the
financial statements and corresponding figures	restatements
for previous periods have been restated for the	of
changes in the general purchasing power of	corresponding figures as required by
Turkish Lira and, as a result, are expressed in	TAS 29,
terms of purchasing power of Turkish Lira as of	Assessing
the reporting date.	the
In accordance with the guidance in TAS 29, the	adequacy
Group utilized the Turkey consumer price indices	of
to prepare inflation adjusted consolidated	the
financial statements. The principles applied for	disclosures
inflation adjustment is explained in Note 2.1.	of
Given the significance of the impact of TAS 29 on	inflation
the reported result and consolidated financial	adiusted
position of the Group, we have assessed the	consolidated financial statements for
hyperinflation accounting as a key audit matter.	compliance with TAS 29.

-

Notes to the consolidated financial statements for the year ended December 31, 2024

	Notes	Audited December 31, 2024	Audited December 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	4	1.013.564	1.545.052
Financial investments	11	9.428.998	12.815.351
Trade receivables
- Due from third parties	5	86.334	121.119
Other receivables
- Due from third parties	6	5.287	221.790
Inventories	7	3.042.714	2.246.050
Biological assets	8	-	67.556
Prepaid expenses	9	140.725	433.946
Assets related to current period tax	26	395.052	-
Other current assets	10	17.367	3.105
TOTAL CURRENT ASSETS		14.130.041	17.453.969
NON-CURRENT ASSETS
Financial investments	11	2.767.719	3.424.085
Other receivables
- Due from related parties	6	353.482	1.122.733
- Due from third parties	6	4.827	6.054
Right-of-use assets	12	2.693	15.128
Investment properties	13	2.615.027	1.271.073
Property, plant and equipment	14	10.803.053	9.722.092
Intangible assets
- Goodwill	15	-	137.525
- Other intangible assets	15	39.160	18.440
Prepaid expenses	9	1.537.601	2.816.592
Deferred tax assets	26	2.009.004	2.222.484
Other non-current assets	10	966.835	898.795
TOTAL NON-CURRENT ASSETS		21.099.401	21.655.001
TOTAL ASSETS		35.229.442	39.108.970

Consolidated statement of financial position as of December 31, 2024

	Notes	Audited December 31, 2024	Audited December 31, 2023
LIABILITIES
CURRENT LIABILITIES
Short-term lease liabilities
- Bank credits	18	20.000	553.456
- Lease liabilities	16	1.015	4.344
Trade payables
- Due to third parties	5	224.766	473.193
Payables related to employee benefits	17	157.702	192.733
Other payables
- Due to related parties	19	114.109	61.131
- Due to third parties Deferred revenues (Excluding liabilities arising from	19	64.571	26.660
customer agreements)		31.647	10.547
Current income tax liabilities		16.421	297.744
Short-term provisions
- Provisions for employee benefits	20	45.899	41.592
- Other short-term provisions	20	1.447.216	1.329.536
Other current liabilities		55.275	27.098

TOTAL CURRENT LIABILITIES		2.178.621	3.018.034
NON-CURRENT LIABILITIES
Long-term lease liabilities
- Lease liabilities	16	1.811	3.041
Other payables
- Due to third parties		193.419	233.391
Deferred Revenues (Excluding Liabilities Arising
from Customer Agreements) Long-term provisions		34	572
- Provisions for employee benefits		218.857	213.795
- Other long-term provisions		682.024	473.100
Deferred tax liabilities		-	32.679

TOTAL NON-CURRENT LIABILITIES		1.096.145	956.578
EQUITY		31.954.676	35.134.358
Equity holders of the parent		8.526.037	9.813.463
Paid-in share capital	21	259.786	259.786
Adjustment to share capital		3.777.870	3.777.870
Share premium		93.254	93.254
Cross share capital adjustment		(130.684)	(71.790)
Other comprehensive income / expense not to be
reclassified to profit or loss
- Actuarial gain / (loss) fund for employee benefits		1.941	(15.437)
Restricted reserves	21	981.499	981.499
Reserves for withdrawn shares Retained earnings		1.011.599 3.528.232	704.255 3.825.029
Net profit / loss for the period		(997.460)	258.997
Non-controlling interests		23.428.639	25.320.895

TOTAL LIABILITES AND EQUITY		35.229.442	39.108.970

Consolidated statement of profit or loss and other comprehensive income for the year ended December 31, 2024

		Audited	Audited
	Notes	January 1-December 31, 2024	January 1-December 31, 2023

Revenue	22	9.252.450	12.425.427
Cost of sales (-)	22	(6.343.308)	(7.628.819)

GROSS PROFIT		2.909.142	4.796.608

Research and development expenses (-) Marketing, sales and distribution expenses (-)	23 23	(1.088.105) (186.799)	(890.890) (162.616)
General administrative expenses (-)	23	(1.053.299)	(1.405.297)

Other operating income	24	237.318	194.549
Other operating expenses (-)	24	(1.389.728)	(2.182.006)
OPERATING (LOSS) / PROFIT		(571.471)	350.348
Income from investing activities	25	6.447.561	10.489.303

Expenses from investment activities	26	(173.773)	-
Impairment gains (losses) and reversals of impairment losses determined in accordance with TFRS 9		345	858
OPERATING PROFIT BEFORE FINANCIAL INCOME		5.702.662	10.840.509

Financial expenses (-)		(237.886)	(207.437)
Monetary loss (-)	27	(5.762.584)	(11.048.666)

PROFIT/LOSS BEFORE TAX FROM CONTINUED
OPERATIONS		(297.808)	(415.594)
Tax expense from continued operations		(471.128)	1.253.253

- Current tax expense (-)	29	(117.277)	(1.638.568)
- Deferred tax income / (expense) (-)	29	(353.851)	2.891.821
NET PROFIT FOR THE PERIOD		(768.936)	837.659

Attribution of profit / (loss) for the period:
Non-controlling interests		228.524	578.662
Equity holders of the parent		(997.460)	258.997
Other comprehensive expense (-)
Total other comprehensive income not to be classified to
profit or loss in subsequent years
Gains / (losses) on remeasurements of defined benefit plans		(160.478)	(71.503)
Gains / (losses) on remeasurements of defined benefit plans, tax
effect		40.120	17.876

TOTAL COMPREHENSIVE INCOME		(889.294)	784.032

Attribution of comprehensive (expense)/ income for the period:
Non-controlling interests		90.788	495.255

Equity holders of the parent		(980.082)	288.777
Earnings per 100 shares
- common stock (TL)	30	(0,384)	0,100

Earnings per 100 shares from total comprehensive income
- common stock (TL)	30	(0,377)	0,111

Consolidated statement of changes in equity for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

					Other comprehensive income/expense not to be reclassified to profit or loss			Retained earnings
	Paid in capital	Adjustment to capital	Share premium	Capital Adjustments due to Cross Ownership	Actuarial (loss) / gain fund for employment termination benefit	Restricted reserves	Retained earnings	Net profit for the period	Equity holders of the parent	Noncontrolling interests	Total equity
Balance as of January 1, 2023	259.786	3.777.870	93.254	-	(45.217)	849.421	6.655.323	(1.361.496)	10.228.941	28.329.997	38.558.938
Net profit for the period Other comprehensive income/ (loss)	- -	- -	- -	- -	- 29.780	- -	- -	258.997 -	258.997 29.780	578.662 (83.407)	837.659 (53.627)
Total comprehensive income/ (loss)	-	-	-	-	29.780	-	-	258.997	288.777	495.255	784.032
Transfers Dividend Payment Increase (Decrease) through Treasury Share Transactions	- - -	- - -	- - -	- - (71.790)	- - -	132.078 - 704.255	(1.493.574) - (1.336.720)	1.361.496 - -	- - (704.255)	- (1.210.128) (2.319.488)	- (1.210.128) (3.023.743)
Capital increase	-	-	-	-	-	-	-	-	-	25.259	25.259
Balance as of December 31, 2023	259.786	3.777.870	93.254	(71.790)	(15.437)	1.685.754	3.825.029	258.997	9.813.463	25.320.895	35.134.358
Balance as of January 1, 2024 Net profit for the period Other comprehensive loss Total comprehensive income/ (loss)	259.786 - - -	3.777.870 - - -	93.254 - - -	(71.790) - - -	(15.437) - 17.378 17.378	1.685.754 - - -	3.825.029 - - -	258.997 (997.460) - (997.460)	9.813.463 (997.460) 17.378 (980.082)	25.320.895 228.524 (137.736) 90.788	35.134.358 (768.936) (120.358) (889.294)
Transfers Increase (Decrease) through Treasury Share Transactions (*)	- -	- -	- -	- (58.894)	- -	- 307.344	258.997 (555.794)	(258.997) -	- (307.344)	- (1.012.250)	- (1.319.594)
Disposal of subsidiary (Note 28) Balance as of December 31, 2024	- 259.786	- 3.777.870	- 93.254	- (130.684)	- 1.941	- 1.993.098	- 3.528.232	- (997.460)	- 8.526.037	(970.794) 23.428.639	(970.794) 31.954.676

(*) It is related to share repurchase and share purchase-sale transactions initiated with the decision of Koza Altın İşletmeleri A.Ş. Board of Directors. Within the scope of share repurchase transactions, 25,000,000 shares of Koza Altın İşletmeleri A.Ş., 6,077,881 shares of Koza Anadolu Metal Madencilik İşletmeleri A.Ş. and 5,100,939 shares of İpek Doğal Enerji Kaynakları Araştırma ve Üretim A.Ş. were purchased in total for 1,319,594 thousand TL.

Consolidated statement of cash flows for the year ended December 31, 2024

	Notes	Audited January 1 – December 31, 2024	Audited January 1 – December 31, 2023
A. Cash flows from operating activities		1.005.096	(1.541.953)
Profit for the period from the continuing operations		(768.936)	837.659
Adjustments to reconcile profit for the period
Adjustments to depreciation and amortization	12,14,15	1.368.258	1.236.647
Adjustments for fair value (gains) of financial assets Adjustments for impairment on receivables	25 5	(3.981.620) 5.439	(8.080.829) 17.383
Adjustments related to the impairment of investment property	13,26	21.687	-
Adjustments for impairment of goodwill	26	137.525	-
Adjustments for provisions
- Adjustments for lawsuits and/ or penalty provisions - Adjustments for sectoral provisions	20,24	415.690 1.379.252	238.393 1.095.304
- Adjustments for debt provisions	20	(21.065)	(158.268)
- Adjustments for provisions for employee benefits	20	27.248	(100.044)
Adjustments for tax expense	29	471.128	(1.253.253)
Adjustments for interest expenses		57.508	96.410
Adjustments for interest income Adjustments for (gains) arising from disposal of tangible assets	25 25	(2.352.282) (49.313)	(1.019.092) (283.249)
Adjustments for (gains) arising from disposal of biological assets		14.560	-
Adjustments for (gains) on disposal of investment properties		-	(1.078.091)
Partnership Adjustments for losses/(gains) arising from disposal of subsidiaries		(34.962)	-
Monetary loss Total adjustments		3.514.295 973.348	9.890.780 602.091

Increase in trade receivables		29.346	(33.379)
Increase in inventories Increase /(decrease) in prepaid expenses		(796.781) 2.689.679	(207.793) (51.728)
Decrease in trade payables		(248.103)	63.719
Adjustments for increases in other receivables related to activities		217.288	(458.235)
Increase in other liabilities related to activities		51.985	(157.166)
Adjustments for (decrease)/ increase in deferred income		20.562	5.774
Increase in other receivables from related parties related to activites Decrease / increase in payables related to employee benefits		769.251 (34.900)	(795.729) 101.585
Increase / decrease in other assets related to activities		(71.149)	511.794
Increase in other liabilities related to activities		28.177	(5.110)
Payments of employee retirement benefits	20	(167.169)	(119.654)
Decrease/ (increase) in biological assets Payments related to other provisions		52.996 (991.869)	4.044 (860.524)
Taxes paid	29	(748.629)	(979.301)
Net cash from operating activities		800.684	(2.981.703)
B. Cash flows from investing activities		916.644	6.417.046
Cash inflows against sales that would result in loss of control of loyalty		1.750.000	-
Cash inflows related to sale of tangible assets	14	162.021	385.514
Cash outflows from purchase of tangible assets	14	(4.384.332)	(1.829.429)
Cash outflows from purchase of intangible assets Cash outflows from the purchase of investment properties	15 13	(2.218) (1.412.037)	(19.967) -
Cash inflows from the sale of investment properties	13	-	1.560.017
Interest received		2.333.055	1.017.048
Cash inflows related to financial investments		6.377.754	20.155.548
Cash outflows related to financial investments Cash outflows from the purchase of fixed assets classified for sale (-)		(2.789.192) -	(12.397.246) 702
Cash advances and debts given (-)	9	(1.118.407)	(2.455.141)
C. Net cash from financing activities		(1.693.020)	(3.762.953)
Dividends paid		-	(1.210.128)
Cash outflows related to withdrawn transactions (-)		(1.319.594)	(3.023.743)
Cash outflows related to debt payments arising from lease agreements	16	(10.090)	(28.259)
Cash outflows related to borrowing (-) Cash outflows arising from participation in capital increases of affiliates and/or joint ventures	18	(383.336) -	- (4.932)
Cash inflows due to borrowing	18	20.000	504.109
D. Monetary loss on cash and cash equivalents		(779.436)	(812.266)
Net increase in cash and cash equivalents (A+B+C+D)		(550.716)	299.874
E. Cash and cash equivalents at the beginning of the year	4	1.543.058	1.243.184
F. Cash and cash equivalents at the end of the year (A+B+C+D+E)	4	992.342	1.543.058

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

1. Group's organization and nature of the operations

İpek Doğal Enerji Kaynakları Araştırma ve Üretim A.Ş. ("Company") was established as a Joint Stock Company with Trade Registry Number 55759 with the articles of association published in the Trade Registry Gazette dated January 8, 1985 and numbered 1174. The Group has changed its title as İpek Doğal Enerji Kaynakları Araştırma ve Üretim A.Ş. on June 10, 2011 which was İpek Matbaacılık Sanayi ve Ticaret A.Ş., by including oil, natural gas, energy and energy resources research and production activities in its main field of activity which was printing and invitation in the establishment. This change was announced in the Trade Registry Gazette dated June 15, 2011 and numbered 7837. The company and all of its subsidiaries, whose details are explained in footnote 2.2, are named as "Group" together.

As of December 31, 2024, 62.10% of the Company's shares, including shares traded on Borsa Istanbul ("BIST"), are owned by Koza İpek Holding A.Ş. (December 31, 2023: 62.12% Koza İpek Holding A.Ş.) Shares corresponding to 37.75% of the company's capital (31 December 2023: 37.72%) traded on BIST.

The Company management was transferred to the Board of Trustees, pursuant to the decision of Ankara 5th Criminal Court of Peace, dated October 26, 2015, all the powers of the management body have been transferred to the trustees appointed to the Group Management and it has been decided that new management bodies will be formed by these trustees.

With the Decree Law No. 674 on Making Some Regulations under the State of Emergency ("Decree") published on September 1, 2016, it was decided to transfer all the powers previously given to the trustees assigned to companies by the courts to the Savings Deposit Insurance Fund ("SDIF").

In accordance with the "reservation of the rights of bona fide shareholders and third parties" stipulated in the decision of the 3rd Criminal Chamber of the Supreme Court of Appeals dated April 14, 2023, numbered 2022/18087 Principles, Decision no. 2023/2215, the Company and other Koza İpek Group companies are In a way that protects the rights of bona fide shareholders and third parties, the parent company-subsidiary structure in group companies continues as it is, and the rights of investors in companies traded on BIST are protected, and the registration and announcement of the shares of real persons other than these on behalf of the Treasury are carried out by the Trade Registry Office. It was held in July 2023.

By preserving the parent partnership-subsidiary structures, the transfer of the company's shares belonging to the Treasury to the Türkiye Wealth Fund was published in the Official Gazette dated August 20, 2024 and numbered 32638, by Presidential decision numbered 8857. Taking into account the strategic importance of the sectors in which the Company and all group companies operate for the country's economy, the partnership structure and group company integrity will be ensured, without disrupting the parent company-subsidiary relations, and by protecting the rights of bona fide beneficiaries and stock market investors, it is decided to transfer of the company's shares belonging to the Treasury to the Türkiye Wealth Fund. With the decision of the Savings Deposit Insurance Fund (TMSF) Fund Board dated September 12, 2024 and numbered 2024/406 and the decision of the Board of Directors dated September 12, 2024, the transfer of the shares of the companies belonging to the Treasury to the Türkiye Wealth Fund was recorded in the share ledger. The transfer of the Company's shares belonging to the treasury to the Türkiye Wealth Fund was registered on October 18, 2024 and was published in the Trade Registry Gazette dated October 22, 2024 and numbered 11191.

The Group's consolidated financial statements for the years ended December 31, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023 have been approved by the Board of Directors with the board decisions dated April 24, 2018, April 30, 2018, February 28, 2019, February 27, 2020, March 1, 2021, March 1, 2022, March 1, 2023 and May 9, 2024 respectively and published by excluding the possible cumulative effects of the works and transactions belonging to the previous financial periods, whose judgment process continues, in accordance with the provisions of Article 401/4 of the Turkish Commercial Code No. 6102 ("TCC"). Audited financial statements for the year ended December 31, 2015 were not approved by the Board of Directors in accordance with the provisions of Article 401/4 of the TCC. Subsequently, with the decision of the Board of Directors of the Group, the phrase "excluding the possible cumulative effects of the transactions and operations from previous financial periods on the statements in accordance with the provisions of Article 401/4 of the Turkish Commercial Code No. 6102 ("TCC")" have been removed from the decisions regarding the approval of the consolidated financial statements for December 31, 2023. Ordinary general assembly meetings of the Group for the years 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023 and these financial statements of the Group could not be submitted to the approval of the General Assembly.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

1. Group's organization and nature of the operations (continued)

Group's consolidated participations located in Turkey until December 31, 2015, Bugün Televizyon Radyo ve Perakende A.Ş., Yaşam Televizyon Yayın Hizmetleri A.Ş. ve Koza İpek Basın ve Basım Sanayi ve Ticaret A.Ş. and subsidiaries Koza Prodüksiyon ve Ticaret A.Ş., Rek-Tur Reklam Pazarlama ve Ticaret Ltd. Şti. ve İpek Online Bilişim Hizmetleri Ltd. Şti. has not been included in the scope of consolidation since 2016 due to the official cancellation of the trade registry record with the Decree Law in 2016.

As of December 31, 2024, the number of employees is 2.173 people (December 31, 2023: 2.645).

The registered address of the Company is below:

Uğur Mumcu Mahallesi, Fatih Sultan Mehmet Bulvarı, İstanbul Yolu 10. Km, No: 310, 06370, Yenimahalle-Ankara, Türkiye.

Approval of consolidated financial statements

The consolidated financial statements dated December 31, 2024 were approved by the Board of Directors and authorized to be published on March 25, 2025.

2. Basis of presentation of consolidated financial statements

2.1 Basis of presentation

Financial reporting standards

The Group and its subsidiaries established in Türkiye, prepare its consolidated financial statements in accordance with the Turkish Commercial Code (TCC) numbered 6102, tax legislation and the Uniform Chart of Accounts published by the Ministry of Finance.

The accompanying consolidated financial statements are prepared in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, no: 14.1 "Basis of Financial Reporting in Capital Markets", which were published in the Resmi Gazete No:28676 on June 13, 2013. The accompanying consolidated financial statements are prepared based on the Turkish Financial Reporting Standards and Interpretations ("TAS/TFRS") that have been put into effect by the Public Oversight Accounting and Auditing Standards Authority ("POA").

The consolidated financial statements and notes are presented in accordance with the "2024 TAS Taxonomy" announced by the POA with the principal decision dated July 3, 2024. The consolidated financial statements are based on legal records and expressed in TL, and have been prepared by subjecting to some corrections and classification changes in order to present the Group's status according to TAS and TFRS.

Foreign currency

Functional and reporting currency

The consolidated financial statements are presented in TL, which is the functional and presentation currency of the Group.

Foreign currency transactions and balances

Foreign currency transactions have been converted over the exchange rates valid on the dates of the transaction. Monetary assets and liabilities based on foreign currency are converted using the exchange rates valid on the date of the statement of financial position. Exchange difference income or expense arising from foreign currency-based operational transactions (trade receivables and debts) is presented under the "other income / expenses from operating activities", while the exchange difference income or expense arising from the translation of other foreign currency based monetary assets and liabilities is presented under "finance income / expenses" in the consolidated statement of profit or loss.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.1 Basis of presentation (continued)

Adjustment of Financial Statements in High Inflation Periods

In accordance with the decision of the CMB dated December 28, 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of TAS 29, starting from their annual financial reports for the accounting periods ending as of December 31, 2023. Based on the aforementioned CMB decision, the announcement made by the KGK on November 23, 2023 and the "Implementation Guide on Financial Reporting in Hyperinflationary Economies" published, the Group has prepared its consolidated financial statements for the period and ending on the same date as of December 31, 2024 by applying the TAS 29 "Financial Reporting in Hyperinflationary Economies" Standard. According to this standard, consolidated financial statements prepared based on the currency of an economy with high inflation should be prepared in the purchasing power of this currency at the balance sheet date and the financial statements of previous periods should be restated in terms of the current measurement unit at the end of the reporting period. For this reason, the Group has presented its consolidated financial statements as of December 31, 2023 on the basis of purchasing power as of December 31, 2024. Except for financial investments, assets and liabilities are prepared on the basis of historical cost.

The re-arrangements made in accordance with TAS 29 were made using the correction coefficient obtained from the Consumer Price Index ("CPI") in Türkiye published by the Turkish Statistical Institute ("TÜİK"). As of December 31, 2024, the indexes and correction coefficients for the current and comparative periods used in the correction of the consolidated financial statements are as follows:

Period end	Index	Index, %	Three-year cumulative inflation rates
December 31, 2024	2.684,55	1,00000	%291
December 31, 2023	1,859,38	1,44379	%268
December 31, 2022	1.128,45	2,37897	%156

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.1 Basis of presentation (continued)

Adjustment of Financial Statements in High Inflation Periods (continued)

Assets and liabilities were separated into those that were monetary and non–monetary, with non–monetary items were further divided into those measured on either a current or historical basis to perform the required restatement of consolidated financial statements under TAS 29. Monetary items (other than index -linked monetary items) and non-monetary items carried at amounts current at the end of the reporting period were not restated because they are already expressed in terms of measuring unit as of December 31, 2024. Non-monetary items which are not expressed in terms of measuring unit as of December 31, 2024 were restated by applying the conversion factors. The restated amount of a non-monetary item was reduced, in accordance with appropriate TFRSs, in cases where it exceeds its recoverable amount or net realizable value. Components of shareholders' equity in the statement of financial position and all items in the statement of profit or loss and other comprehensive income have also been restated by applying the conversion factors.

Non-monetary items measured at historical cost that were acquired or assumed and components of shareholders' equity that were contributed or arose before the time when the Turkish lira previously ceased to be considered currency of hyperinflationary economy, i.e before January 1, 2005, were restated by applying the change in the CPI from January 1, 2005 to December 31, 2024.

The application of TAS 29 results in an adjustment for the loss of purchasing power of the Turkish lira presented in Net Monetary Position Gains (Losses) item in the profit or loss section of the statement of profit or loss and comprehensive income. In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing power to the extent the assets and liabilities are not linked to a price level. This gain or loss on the net monetary position is derived as the difference resulting from the restatement of non-monetary items, owners' equity and items in the statement of profit or loss and other comprehensive income and the adjustment of index linked assets and liabilities. In addition, in the reporting period in which IAS 29 was first applied, the provisions of the Standard were applied assuming that there was always high inflation in the relevant economy. Therefore, the consolidated statement of financial position as of January 1, 2022, the beginning of the earliest comparative period, has been adjusted for inflation in order to form the basis for subsequent reporting periods. The inflationadjusted amount of the retained earnings/losses item in the consolidated financial position statement dated January 1, 2022 was obtained from the balance sheet balance that should have occurred after adjusting the other items of the said table for inflation.

Going concern

The Group has prepared its consolidated financial statements according to the going concern principle.

Declaration of conformity to TFRS

The Group has prepared its consolidated financial statements for the period ending on December 31, 2024, in accordance with the CMB's Communiqué Serial: II-14.1 and its announcements clarifying this communiqué. The consolidated financial statements and notes are presented in accordance with the formats recommended by CMB and including the required information.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.2 Consolidation principles

(a) Consolidated financial statements include the accounts of the Company and its subsidiaries prepared according to the principles stated below. During the preparation of the financial statements of the companies included in the scope of consolidation, necessary corrections and classifications were made in terms of compliance with TFRS and the accounting policies and presentation styles applied by the Group.
(b) The subsidiaries controlled by the Company has been included in the consolidated financial statements by full consolidation method. Control is provided only when all of the following indicators are present on the enterprise in which the Company invests;
- a) has power over the enterprise in which it invests,
- b) is exposed to or is entitled to varying returns due to its relationship with the investee,
- c) has the ability to use its power over the investee to influence the amount of returns it will generate.

During the consolidation process, the registered participation values of the shares owned by the Company and its subsidiaries were netted mutually with the relevant equities. Intra-group transactions and balances between the Company and the subsidiaries have been netted during the consolidation process. The registered values of the shares owned by the Company and the dividends arising from them have been netted from the relevant equity and profit or loss statement accounts. The subsidiaries have been included in the scope of consolidation as of the date the control over its activities was transferred to the Group.

Subsidiaries

As of December 31, 2024 and December 31, 2023, the activities of the consolidated subsidiaries and the operating segments in which the subsidiaries operate in line with the purpose of the consolidated financial statements are as follows:

December 31, 2024
Title	Business segments	Nature of business
Koza Anadolu Metal Madencilik İşletmeleri A.Ş.	Mining	Mining
ATP İnşaat ve Ticaret A.Ş.	Construction and mining	Mining
Koza Altın İşletmeleri A.Ş.	Mining	Mining
Özdemir Antimuan Madenleri A.Ş.	Mining	Mining
ATP Koza Turizm Seyahat Ticaret A.Ş.	Tourism and hotel management	Other
ATP Koza Gıda Tarım Hayvancılık Sanayi ve Ticaret A.Ş.	Food and livestock	Other
Konaklı Metal Madencilik Sanayi Ticaret A.Ş.	Mining	Mining
December 31, 2023
Title	Business segments	Nature of business
Koza Anadolu Metal Madencilik İşletmeleri A.Ş.	Mining	Mining
ATP İnşaat ve Ticaret A.Ş.	Construction and mining	Mining
Koza Altın İşletmeleri A.Ş.	Mining	Mining
Özdemir Antimuan Madenleri A.Ş.	Mining	Mining
ATP Havacılık Ticaret A.Ş.	Air transportation	Other
ATP Koza Turizm Seyahat Ticaret A.Ş.	Tourism and hotel management	Other
ATP Koza Gıda Tarım Hayvancılık Sanayi ve Ticaret A.Ş.	Food and livestock	Other
Konaklı Metal Madencilik Sanayi Ticaret A.Ş.	Mining	Mining

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.2 Consolidation principles (continued)

As of December 31, 2024 and December 31, 2023 titles, capitals, effective ownership rates and minority rates of the subsidiaries of the Group are as follows:

December 31, 2024

Title	Direct Ownership Share (%)	Effective Ownership Share (%)	Minority Share (%)

Koza Anadolu Metal Madencilik İşletmeleri A.Ş.	52,25	52,25	47,75
ATP İnşaat ve Ticaret A.Ş.	-	51,75	48,25
Koza Altın İşletmeleri A.Ş. (*)	-	23,29	76,71
Özdemir Antimuan Madenleri A.Ş.	-	51,75	48,25
ATP Koza Turizm Seyahat Ticaret A.Ş.	-	51,75	48,25
ATP Koza Gıda Tarım Hayvancılık San. ve Tic. A.Ş.	-	51,75	48,25
Konaklı Metal Madencilik Sanayi Ticaret A.Ş.	-	37,48	62,52
Koza İpek Tedarik Ticaret A.Ş. (**)	28,00	52,88	47,12

December 31, 2023

Title	Direct Ownership Share (%)	Effective Ownership Share (%)	Minority Share (%)

Koza Anadolu Metal Madencilik İşletmeleri A.Ş.	52,25	52,25	47,75
ATP İnşaat ve Ticaret A.Ş.	-	51,75	48,25
Koza Altın İşletmeleri A.Ş. (*)	-	23,29	76,71
Özdemir Antimuan Madenleri A.Ş.	-	51,75	48,25
ATP Havacılık Ticaret A.Ş.	-	51,23	48,77
ATP Koza Turizm Seyahat Ticaret A.Ş.	-	51,75	48,25
ATP Koza Gıda Tarım Hayvancılık San. ve Tic. A.Ş.	-	51,75	48,25
Konaklı Metal Madencilik Sanayi Ticaret A.Ş.	-	37,48	62,52
Koza İpek Tedarik Ticaret A.Ş. (**)	28,00	52,88	47,12

(*) Although the effective ownership rate of the Group is less than 50%, it uses its dominance power to manage the financial and operating policies of the company in question.
(**) It is not included in the scope of consolidation due to its lack of significant impact. Ratio of total assets, revenue and net profit of the subsidiary not included in the scope of consolidation to consolidated total assets, revenue and net profit is below 1%.
(c) The shares of non-controlling shareholders in the net assets and operating results of subsidiaries are shown as "non-controlling interests" in the consolidated financial statements.
(d) Koza Altın İşletmeleri A.Ş. ("Koza Altın"), one of the subsidiaries of the Group, established UK-based Koza Ltd., in which it has a 100% share, to make mining ventures abroad on March 31, 2014. It has been understood that the control of the Group over its subsidiary Koza Ltd, which it consolidated until September 11, 2015, was lost as a result of the general meeting held on September 11, 2015. The legal process initiated by the CMB regarding the loss of control pursuant to its decision dated February 4, 2016 continues as of the balance sheet date. In its consolidated financial statements, the Group has presented Koza Ltd. under "Financial Investments" in non-current assets at a cost of Thousands TL 2,471,133.
(e) Group's consolidated participations located in Turkey until December 31, 2015, Bugün Televizyon Radyo ve Perakende A.Ş., Yaşam Televizyon Yayın Hizmetleri A.Ş. ve Koza İpek Basın ve Basım Sanayi ve Ticaret A.Ş. and subsidiaries Koza Prodüksiyon ve Ticaret A.Ş., Rek-Tur Reklam Pazarlama ve Ticaret Ltd. Şti. ve İpek Online Bilişim Hizmetleri Ltd. Şti. has not been included in the scope of consolidation since 2016 due to the official cancellation of the trade registry record with the Decree Law in 2016.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.3 Accounting policies, changes in accounting estimates and errors

Accounting policy changes arising from the implementation of a new TAS / TFRS for the first time are applied retrospectively or prospectively in accordance with the transition provisions of the TAS / TFRS, if any. If there is no transition requirement, significant optional changes in accounting policies or detected accounting errors are applied retrospectively and the financial statements of the previous period are restated. Changes in accounting estimates are applied in the current period when the change is made if they are related to only one period, and if they are related to future periods, they are applied both in the period of change and prospectively.

2.4 The new standards, amendments and interpretations

The accounting policies adopted in preparation of the consolidated financial statements as of December 31, 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of January 1, 2024 and thereafter. The effects of these standards and interpretations on the Company's financial position and performance have been disclosed in the related paragraphs.

i) The new standards, amendments and interpretations which are effective as of January 1, 2024 are as follows:

Amendments to TAS 1- Classification of Liabilities as Current and Non-Current Liabilities
Amendments to TFRS 16- Lease Liability in a Sale and Leaseback
Amendments to TAS 7 and TFRS 7 Disclosures: Supplier Finance Arrangements

The amendments did not have a significant impact on the financial position or performance of the Company.

ii) Standards issued but not yet effective and not early adopted

Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the financial statements and disclosures, when the new standards and interpretations become effective.

Amendments to TFRS 10 and TAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
TFRS 17 The new Standard for insurance contracts
Amendments to TAS 21- Lack of exchangeability

Overall, the Company expects no significant impact on its balance sheet and equity.

iii) The amendments which are effective immediately upon issuance

Amendments to TAS 12 - International Tax Reform – Pillar Two Model Rules

The amendments did not have a significant impact on the financial position or performance of the Group.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.4 The new standards, amendments and interpretations (continued)

iv) The new amendments that are issued by the International Accounting Standards Board (IASB) but not issued by Public Oversight Authority (POA)

The following amendments to IAS 21 and IFRS 18 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of TFRS. The Group will make the necessary changes to its consolidated financial statements after the amendments and new Standard are issued and become effective under TFRS.

Amendments to IFRS 9 and IFRS 7 Classification and measurement of financial instruments
Annual Improvements to IFRS Accounting Standards Volume 11
Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity
IFRS 18 The new Standard for Presentation and Disclosure in Financial Statements
IFRS 19 Subsidiaries without Public Accountability: Disclosures

IFRS 19 is not valid for the Group and the effects of other Standards and amendments on the Group's financial position and performance are being evaluated.

2.5 Summary of significant accounting policies

Significant accounting policies adopted in the preparation of consolidated financial statements are summarized below:

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and short-term time deposits. Short-term time deposits are highly liquid that can be easily converted into cash without a risk of losing its value. Cash and cash equivalents are presented in the statement of financial position with the sum of acquisition cost and accured interest. Deposits from which interest income is obtained despite being blocked are classified under long-term financial investments.

Trade receivables

The Group sells its dore bars of gold to a domestic bank on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights, and silver to a domestic refinery again on consignment. The "simplified approach" is applied within the scope of the impairment calculations of trade receivables originating from other activities of the Group, which are accounted at amortized cost in the financial statements and do not contain a significant financing component (with a term of less than 1 year). With the application of this approach, in cases where the trade receivables are not impaired for certain reasons (except for the realized impairment losses), the loss allowance for trade receivables is measured at an amount equal to "lifetime expected credit losses". Following the allocation of a provision for impairment, if all or a portion of the impaired receivable is collected, the collected amount is deducted from the provision for the impairment allocated and recorded in other operating income.

Inventories

The cost of inventories comprises all costs incurred in bringing the inventories to their present location and condition. The components of the cost included in inventories are material, labor and overhead costs. The cost of inventories is determined on the weighted average basis. Inventories are stated at the lower of cost and net realizable value. The Group's inventories consist of mining inventories, chemicals and operating materials. Mining inventories consists of ready to be processed and mined ore clusters, solution obtained by treating mining inventories through tank leaching (heap leach) and gold and silver bars in the production process or ready for shipment. The ore clusters ready to be processed and the costs of gold and dore bars made ready for shipment in the production process are calculated by taking into account the amount of gold they contain on an ounce basis and the recycling rate calculated based on the processing in the facility. The quantities of ready-to-work, mined ore clumps and dore bars made of gold and silver are determined by periodic counts. Depreciation and amortization of mineral assets and other fixed assets related to production are included in the costs of the inventory at the relevant production location and stage.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Related parties

If one of the below listed criteria exists the party is regarded as related with the Group:

(a) A person or a close member of that person's family is related to a reporting entity if that person:
- (i) has control or joint control over the reporting entity;
- (ii) has significant influence over the reporting entity; or
- (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
(b) An entity is related to a reporting entity if any of the following conditions applies:
- (i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
- (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
- (iii) Both entities are joint ventures of the same third party.
- (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
- (v) The entity is a post-employment defined benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
- (vi) The entity is controlled or jointly controlled by a person identified in (a).
- (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

Transaction with related parties is the transfer of resources, services or obligations between related parties, regardless of whether they are paid for.

Leases

a) Company – as a lessee

At inception of a contract, the Company assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company recognises a right-of-use asset and a lease liability at the commencement date of the lease following the above mentoned assessments.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Leases (continued)

i. Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.

The cost of right-of-use assets includes the following:

a) the amount of the initial measurement of the lease liability,

b) any lease payments made at or before the commencement date, less any lease incentives received,
c) any initial direct costs incurred by the Company, and
d) an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease (unless those costs are incurred to produce inventories)

Useful lives of right-of-use assets are as follows:

Building 4 years Motor vehicles 2-4 years

Right-of-use assets are subject to impairment.

ii. Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable.

The lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

a) Fixed payments, less any lease incentives receivable,
b) ariable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date
c) amounts expected to be paid under residual value guarantees
d) exercise price of a purchase option reasonably certain to be exercised by the Group
e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Group measures the lease liability by:

a) increasing the carrying amount to reflect interest on the lease liability,
b) reducing the carrying amount to reflect the lease payments made, and
c) remeasuring the carrying amount to reflect any reassessment or lease modifications. The Group recognises the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Leases (continued)

Significant judgement in determining the lease term of contracts with renewal options

The Group assesses the contractual options to extend or to terminate the lease when determining the lease liability. Most of the options to extend and terminate are exercisable both by the Group and the respective lessor. The Group determines the lease term of a lease considering the periods covered by options to extend and terminate the lease if the options are exercisable by the Group and the Group is reasonably certain to exercise those options. If a significant change in circumstances takes place, related lease term assessment is revisited by the Group.

Practical expedients

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option).

The Group applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

The Group applies a single discount rate to a portfolio of leases which have similar characteristics (asset classes which have similar remaining rent periods in a similar economic environment).

Variable lease payments

Some lease contracts of the Group contain variable payment terms. Variable lease payments are recognised in the statement of profit or loss in the related period.

b) Company – as a lessor

All the leases that the Group is the lessor are operating leases. Assets leased out under operating leases are classified under investment properties or operating leases in the financial position. Rental income is recognised in the statement of income on a straight-line basis over the lease term. Transaction with related parties is the transfer of resources, services or obligations between related parties, regardless of whether they are paid for.

Investment properties

Properties those are held for long term rental yields or capital appreciation or both, rather than in the production of supply of goods and services or administrative purposes or for the sale in the ordinary course of business are classified as "Investment property". Investment properties are carried at cost less accumulated depreciation. Depreciation is provided for investment properties on a straight-line basis over their estimated useful lives.

Investment properties are reviewed for possible impairment losses and where the carrying amount of the investment property is greater than the estimated recoverable amount, it is written down to its recoverable amount. Recoverable amount of the investment property is the higher of the estimated future cash flows discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or fair value less costs of disposal.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss. When assets are sold or retired, their costs and accumulated depreciation are eliminated from the accounts and any gain or loss resulting from their disposal is included in the consolidated statement of income.

Property, plant and equipments are depreciated with the linear depreciation method in accordance with the useful life principle. The useful lives of buildings, machinery, facilities and devices are limited by the useful life of the respective mines. Land is not depreciated as it is deemed to have an indefinite useful life. Depreciation commences when the assets are ready for their intended use.

The cost of the property, plant and equipment consists of acquisition cost, import taxes, non-refundable taxes, and expenses incurred to make the asset ready for use. After the asset is started to be used, expenses such as repair and maintenance are recognized as an expense in the period they occur. If the expenditures provide an economic value increase for the related asset in its future use, these expenses are added to the cost of the asset.

Assets in the construction phase are shown by deducting the impairment loss, if any, from their cost. When these assets are built and ready for use, they are classified into the relevant fixed asset item. Such assets are subject to depreciation when they are ready for use, as in the depreciation method used for other fixed assets.

The depreciation periods for property, plant and equipment, which approximate the economic useful lives of such assets, are as follows:

Useful lives

Land improvements	(During the useful life of the relevant mine) 2-15 years
Buildings	(During the useful life of the relevant mine) 2-50 years
Machinery and equipments	(During the useful life of the relevant mine) 2-20 years
Motor vehicles	2-15 years
Furniture and fixtures	3-20 years

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Repair and maintenance expenses are charged to the income statements during the period in which they are incurred. The cost of major renovations is included in the carrying amount of the asset when it is probable that future economic benefits more than the originally assessed standard of performance of the existing asset will flow to the Group. Major renovations are depreciated over the remaining useful life of the related asset.

Gains or losses on disposals of property, plant and equipment are determined by comparing proceeds with their net carrying amounts and are classified under "gains/losses from investing activities" in the current period.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Mining assets

Mining assets consist of mine site development, mining rights, mining plots, deferred mining costs and discounted costs associated with the rehabilitation, rehabilitation and closure of mine sites. Mineral assets are reflected in the financial statements with their net value after deducting the accumulated depreciation and permanent impairment, if any, over their acquisition costs.

Mining assets begin to be amortized with the commencement of production. The depreciation expenses of the mining assets are associated with the production costs on the basis of the relevant mining sites.

The mine site development costs include the evaluation and development of new ore veins, as well as the opening of underground galleries, excavation and construction of roads for the continuation and development of existing ore seams. Mine development costs are capitalized in cases where it is highly likely to obtain an economic benefit in the future from the mine in question, can be identified for specific mining areas and the cost can be measured reliably. Costs incurred during production are capitalized as long as they are directly related to the development of the mine site. Production-related costs are reflected as expense in the statement of profit or loss and other comprehensive income.

In cases where mining site development expenses cannot be distinguished from research and evaluation expenses, the said expenses are recorded as expense in the profit or loss and other comprehensive income statement in the period they occur.

Mining assets are depreciated when their capacity is ready to be used fully and their physical conditions meet the production capacity determined by the Group management. Mine development costs are capitalized in cases where it is highly probable to obtain economic benefit in the future and are subject to depreciation considering the economic benefit. Mine development costs are distributed to the departments to the extent that they can be defined on the basis of the relevant mining areas as soon as they are first recorded, and the departments in each mine area are subjected to depreciation by using the units of production method, taking into account the economic benefits separately.

The large-scale and important revision works carried out at the said mine, which will increase the economic benefits to be obtained during the life of the relevant mine, are capitalized. Maintenance and repair expenses, excluding large-scale and significant revisions, that can be evaluated within this scope are recorded as expense in the profit or loss and other comprehensive income statement of the period in which they occur.

The mine development costs at each mine site are depreciated over the redemption rate found by dividing the total amount of gold in ounce mined from the relevant mine by the total ounce of visible and possible workable remaining gold reserves in the said mine during the period. The visible and possible reserve amounts in each mine site indicate the known and measurable resource that can be extracted and processed economically in the foreseeable future.

Apart from the land on which the production facilities are built and where the wastes are stored, the Group also purchases land for mining exploration activities. These lands are followed in mineral assets and are reflected in the financial statements over their acquisition costs. These lands begin to be depreciated over the depreciation rate found by dividing the total ounce of visible and possible workable reserve in the said mine by the remaining gold reserve amount as soon as the ore is started to be extracted in the relevant mine site.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Mining assets (continued)

The deferred mining costs consist of the direct costs incurred during stripping, which facilitates access to the defined part of the ore in each open pit ore deposit during the period, and the general production costs associated with the stripping work. It is subject to depreciation taking into account the deferred extraction rate, which is calculated based on the usable remaining life of each open pit.

The production costs corresponding to the part of the benefit generated in the stripping work realized in the form of manufactured products are accounted for by including the cost of inventories. The removal costs of each open pit ore deposit and, as long as it is measurable, for phases related to each ore deposit are accounted by taking into account the calculated rates.

Deferred mining costs are depreciated over the amortization rate found by dividing the total ounce of gold mined from the relevant mine by the total ounce of visible and possible workable remaining gold reserves in the said mine. The visible and possible reserve amounts in each mine site indicate the known and measurable resource that can be extracted and processed economically in the foreseeable future.

The actual mineral extraction rate is calculated by proportioning the amount of waste and ore extracted from each open pit until the balance sheet date. The estimated mineral extraction rate, which is calculated by taking into account the remaining useful life of each open pit, is calculated by proportioning the estimated cumulative pass and ore amounts to each other in tonnes to be prospectively extracted from each open pit connected to the reserve.

Accordingly, if the actual extraction rate is higher than the estimated extraction rate calculated by taking into account the useful life of each related open pit, part of the estimated cumulative passage during the year and the cost incurred for ore extraction is capitalized in line with the said rates.

If the estimated mineral extraction rate calculated considering the useful life of the mine is higher than the actual extraction rate, the related costs are accounted as production expense in the profit or loss and other comprehensive income statement, taking into account the depreciation rate stated above. The useful life of the mine is reviewed annually and changes in the deferred extraction rate are accounted for prospectively.

Mining rights are accounted in the financial statements at the acquisition cost. It is amortized by using the lower of the depreciation rate found by dividing the remaining economic lives of the relevant mine or the ounce amount of gold extracted from underground and open pit during the period by the amount of visible and possible workable remaining ounce of gold reserves.

Reclamation, rehabilitation and closure costs according to the current conditions of the mine fields that arise due to the open pit mine development activities and the production in the open pit; Provision for expenses that are likely to be spent during the closure and rehabilitation of mines is reflected in the financial statements at their reduced cost values as of the balance sheet date.

These provisions are reduced to their values at the balance sheet date, taking into account the risk of interest and liability in the markets, with a pre-tax discount rate that does not include the risk of future cash flow estimates, and the calculations are reviewed in each balance sheet period. Changes resulting from changes in management estimates used in the computation of the reclamation, rehabilitation and closure provision of mine sites are reflected in the cost of rehabilitation, rehabilitation and closure of mine sites.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Mining assets (continued)

On the other hand, for each mine, the costs of rehabilitation, rehabilitation and closure of the respective mine sites; It is amortized by using the lower of the depreciation rate found by dividing the remaining economic lives of the relevant mine or the ounce amount of gold extracted from the relevant open pit during the period by the remaining visible and possible workable reserve amount in ounce. The costs incurred in relation to the prevention of environmental pollution and protection of the environment within the scope of the existing programs are reflected in the profit or loss and other comprehensive income statement as expense in the period they occur.

Mineral exploration, evaluation and development expenses

Pre-license costs are expensed in the period in which they occur.

After the license acquisition, mineral exploration and evaluation expenses include all kinds of technical services from the initial prospecting and exploration stages of a mine site to the realization of a mining project. These technical services; All kinds of geological studies from mining activities to reserve calculation, all kinds of ore production planning from exploitable reserve calculation to production method, optimization and organization, construction and implementation of ore enrichment projects for determination of complete flow chart, from process mineralogy to market analysis, necessary financing It includes activities such as feasibility studies in every scope up to its source.

Mine site development costs are capitalized in cases where it is highly likely that an economic benefit will be obtained from the mine in question in the future, can be identified for specific mine sites and the costs can be measured reliably. The costs incurred during the research and evaluation are capitalized as long as they are directly related to the development of the mine site.

At the point where production is decided at the mine site, all costs incurred are transferred to the mining assets account. However, when it is decided that there is no future economic benefit, all costs incurred are reflected in the income statement. As the production starts after the preparation period, mineral assets begin to be depreciated.

For the capitalized development costs, the Group management evaluates on each balance sheet date whether there is any indication of depreciation, such as a significant decrease in the reserve amount, expiration of the rights acquired for mining sites, and failure to renew or cancel. If there is such an indicator, the relevant recoverable value, which is determined as the higher of the amount to be recovered through sale after deducting the expenses required for the use or sale of the said asset, is estimated and the impairment losses are reflected as expense in the profit or loss and other comprehensive income statement. The carried value is reduced to its recoverable value.

Intangible assets

Intangible assets are comprised of rights and computer software. They are initially recognised at acquisition cost and amortised on a straight-line basis over their estimated useful lives. Whenever there is an indication that the intangible is impaired, the carrying amount of the intangible asset is reduced to its recoverable amount and the impairment loss is recognised as an expense.

Any gain or loss arising on the disposal of an item of intangible asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss as "gains from investment activities".

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Computer software and rights

Computer software and rights are recognized at their acquisition cost. They are amortized on a straight-line basis over their estimated useful lives and carried at cost less accumulated amortization. Their estimated useful lives are between 3 and 5 years.

Business combination and goodwill

Business combinations are accounted for by using the purchase method in the scope of TFRS 3 "Business combinations". Any excess of the cost of acquisition over the acquirer's interest in the (i) net fair value of the acquiree's identifiable assets and contingent liabilities as of the acquisition date, (ii) amount of any non-controlling interest in the acquired entity and (iii) fair value of any equity interest previously held by acquirer is accounted for as goodwill. If those amounts are less than fair value of the net identifiable assets of the business acquired, the difference is recognised directly in "Gains from investment activities" as a gain from bargain purchase.

Under this method, the cost of an acquisition is measured over the fair value of cash and other assets given as of the acquisition date, equity instruments issued or liabilities incurred. If a business combination contract includes clauses that enable adjustments in the cost of business combination depending on events after the acquisition date; in case the adjustment is measurable and more probable than not, than the cost of business combination at acquisition date is adjusted. Costs related to the purchase are recognized as expense in the period in which they are incurred.

Identifiable assets, liabilities and contingent liabilities of the business acquired are measured initially at their fair values at the acquisition date in the scope of TFRS 3.

Goodwill recognised in business combinations is tested for impairment annually (as of December 31) or more frequently if events or changes in circumstances indicate impairment, instead of amortisation. Impairment losses on goodwill are not reversed. Goodwill is allocated to cash-generating units for the purpose of impairment testing.

Legal mergers between entities controlled by the Group are not considered within the scope of TFRS 3. Therefore, goodwill is not recognized in such transactions.

In business combinations involving entities under common control, assets and liabilities subject to a business combination are recognised at their carrying amounts in the consolidated financial statements. In addition, statements of income are consolidated from the beginning of the financial year in which the business combination takes place. Similarly, comparative consolidated financial statements are restated retrospectively for comparison purposes. As a result of these transactions, no goodwill is recognised. The difference arising in the elimination of the carrying value of the investment held and share capital of the acquired company is directly accounted under "transactions under common control" in "prior years' income".

Impairment on non-financial assets

At each financial position date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Impairment on non-financial assets (continued)

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount.

Impairment losses of continuing operations are recognised in the statement of profit or loss in expense categories consistent with the function of the impaired asset, except for properties previously revalued with the revaluation taken to other comprehensive income. For such properties, the impairment is recognised in other comprehensive income up to the amount of any previous revaluation.

When an impairment loss subsequently reversed, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

Taxes on income

Taxes include current period income tax liabilities and deferred tax liabilities. A provision is recognised for the current period tax liability based on the period results of the Group at the financial position date.

Deferred income tax is provided for in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying values in the financial statements. Currently enacted tax rates are used to determine deferred income tax.

Deferred tax liabilities are recognised for all taxable temporary differences, where deferred tax assets resulting from deductible temporary differences (including unused incentive amounts and carried forward tax losses of prior years) are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary difference can be utilised.

The parent company recognizes deferred tax asset for all deductible temporary differences arising from investments in Subsidiaries, only to the extent that:

the temporary difference will reverse in the foreseeable future; and
taxable profit will be available against which the temporary difference can be utilised.

The parent company recognizes deferred tax liability for all taxable temporary differences associated with investments in Subsidiaries except to the extent that both of the following conditions are satisfied:

the parent is able to control the timing of the reversal of the temporary difference; and
it is probable that the temporary difference will not reverse in the foreseeable future.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Taxes on income (continued)

Government grants allowing reduced corporate tax payment are evaluated within the scope of TAS 12 Income Taxes standard and are recognised as deferred tax asset by the qualified tax advantage amount, to the extent it is highly probable that future taxable profits will be available against which the unused investment tax credits can be utilised.

The tax effects of the transactions that are accounted directly in the equity are also reflected to the equity.

When the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority with the condition of being same taxpayer entity and there is a legally enforceable right to set off current tax assets against current tax liabilities, deferred tax assets and deferred tax liabilities are offset accordingly.

Provisions, contingent assets and liabilities

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.

Where the effect of the time value of money is material, the amount of provision shall be the present value of the expenditures expected to be required to settle the obligation. The discount rate reflects current market assessments of the time value of money and the risks specific to the liability. The discount rate shall be a pre-tax rate and shall not reflect risks for which future cash flow estimates have been adjusted.

Possible assets or obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group are not included in the financial statements and treated as contingent assets or liabilities.

Environmental rehabilitation, rehabilitation of mining sites and mine closure provision

The Group records the present value of the estimated costs of legal and constructive obligations required to restore the operating places in the period in which the obligation occurred (Note 20 b). These restoration activities include the dismantling and removal of structures, the rehabilitation of mines and waste dams, the dismantling of operating facilities, the closure and restoration of factories and waste areas, and the remediation and greening of the affected areas. The requirement usually occurs when the asset is set up or the place / environment in the production area is adversely affected.

When the liability is first recorded, the present value of the estimated costs is capitalized by increasing the net book value of the relevant mining assets up to the amount at which the development / construction of the mine will take place. The liability that is discounted over time is increased by the change in the present value, which depends on the discount rates reflecting the market evaluations in the current period and the risks specific to the liability.

The periodic fluctuation of the discount is recognized as a financial cost in the income statement. Additional disruptions or changes in rehabilitation costs are reflected in the respective assets and rehabilitation liabilities as purchase or expense as they occur.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Provisions for employee benefits

a) Provision for employment termination benefits

The provision for employment termination benefits, as required by Turkish Labour Law represents the present value of the future probable obligation of the Group arising from the retirement of its employees based on the actuarial projections.

The provision for severance pays represents the discounted value at the date of the statement of financial position of the estimated total provision for possible future liabilities arising from the retirement of the Group's employees in accordance with the Labor Law.

TAS 19 "Employee Benefits" requires actuarial assumptions (net discount rate, turnover rate to estimate the probability of retirement etc.) to estimate the entity's obligation for employment termination benefits. The effects of differences between the actuarial assumptions and the actual outcome together with the effects of changes in actuarial assumptions compose the actuarial gains / losses and recognised under the statement of other comprehensive income.

b) Defined benefit plans

The Group has to pay contributions to the Social Security Institution on a mandatory basis. The Group has no further payment obligations once the contributions have been paid. These contributions are recognised as an employee benefit expense when they are accrued.

c) Unused vacation rights

Liabilities arising from unused vacations of the employees are accrued in the period when the unused vacations are qualified.

Paid in capital

Ordinary shares are classified in equity. Costs related to the issuance of new shares and options are recognized in equity with an amount equal to collected amount less tax effects.

Earnings per share

Earnings per share disclosed in the income statement are determined by dividing net income attributable to equity holders of the parent by the weighted average number of shares outstanding during the period concerned.

In Türkiye, companies can increase their share capital through a pro-rata distribution of shares ("bonus shares") to existing shareholders from retained earnings and inflation adjustment to equity. For the purpose of earnings per share computations, the weighted average number of shares in existence during the period has been adjusted in respect of bonus share issues without a corresponding change in resources, by giving them retroactive effect for the period in which they were issued and each earlier period as if the event had occurred at the beginning of the earliest period reported.

Since the Group has withdrawn shares in the current accounting period, the effect of these transactions is also taken into account in the calculation of earnings per share.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Revenue from contracts with customers

In accordance with TFRS 15 "Revenue from Customer Contracts", effective from January 1, 2018, the Group has started to use the five-step model below to recognize revenue.

Identification of customer contracts
Identification of performance obligations
Determination of the transaction price in the contracts
Allocation of transaction price to the performance obligations
Recognition of revenue when the performance obligations are satisfied

The Group evaluates each contracted obligation separately and respective obligations, committed to deliver the distinct goods or perform services, are determined as separate performance obligations.

According to this model, firstly, the goods or services in the contract with the customers are assessed and each commitment for transfering the goods or services is determined as a separate performance obligation. Then it is assessed whether the performance obligations will be fulfilled at a point in time or over time. When the Group transfers control of a good or service over time, and therefore fulfilles a performance obligation over time, then the revenue is recognised over time by measuring the progress of completion. Revenue is recognized when control of the goods or services is transferred to the customers.

Following indicators are considered while evaluating the transfer of control of the goods and services:

a) presence of Group's collection right of the consideration for the goods or services,
b) customer's ownership of the legal title on goods or services,
c) physical transfer of the goods or services,
d) customer's ownership of significant risks and rewards related to the goods or services,
e) customer's acceptance of goods or services.

The main activities of the Group are operating seven mines in five regions which are Ovacık-Bergama-İzmir, Çukuralan-İzmir, Kaymaz-Eskişehir, Mastra-Gümüşhane and Himmetdede-Kayseri, searching for gold mines generally in Türkiye regions and improving the mine fileds of on-going projects.

The Group sells its dore bars of gold to a domestic bank on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights, and silver to a domestic refinery again on consignment. Due to the fact that the sales are made on demand and the customer is corporate, the Group effectively manages the receivable risk, taking into account the past experiences.

At contract inception, if the Group expects that the period between the transfer of the promised good or service and the payment is one year or less, the Group applies the practical expedient and does not make any adjustment for the effect of a significant financing component on the promised amount of consideration. On the other hand, when the contract effectively constitutes a financing component, the transaction price for these contracts is discounted, using the interest rate implicit in the contract. The difference between the discounted value and the nominal amount of the consideration is recognised on an accrual basis as other operating income.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Interest income

Interest income is accrued on a timely basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash fows through the expected life of the financial asset to that asset's net carrying amount on initial recognition. Interest and foreign exchange gains and losses arising from trading transactions are recognized in other operating income and expense.

Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

i. Financial assets

Initial recognition and measurement

At initial recognition the Group classifies its financial assets in three categories as; financial assets measured at amortised cost, financial assets measured at fair value through other comprehensive income and financial assets measured at fair value through profit of loss.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them.

With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Subsequent measurement and classification

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

a. Financial assets measured at amortized cost

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at fair value through profit of loss:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
it is its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The Group's financial assets at amortised cost includes cash and cash equivalents, trade receivables and other receivables.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Financial instruments (continued)

b. Financial assets measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through other comprehensive income when they are not held for trading. The classification is determined on an instrument-byinstrument basis. The Group elected to classify irrevocably its non-listed equity investments under this category.

The accounting policies below apply to gains and losses from subsequent measurements:

Debt instruments measured at fair value through other comprehensive income	These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.
Equity instruments	These assets are subsequently measured at fair value. Dividends are recognized as
measured at fair value	income in profit or loss unless the dividend clearly represents a recovery of part of
through other	the cost of the investment. Other net gains and losses are recognized in other
comprehensive income	comprehensive income and are never reclassified to profit or loss.

The Group's consolidated financial statements do not include any of the financial instruments mentioned above.

c. Financial assets at fair value through profit or loss

All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as described above are measured at fair value through profit or loss.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Financial instruments (continued)

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group's statement of financial position) when:

The contractual rights to receive cash flows from the asset have expired, or
The Group has transferred its contractual rights to receive cash flows from the asset, or retains the contractual rights to receive the cash flows of the financial asset but has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group transfers a financial asset, it evaluates the extent to which it retains the risks and rewards of ownership of the financial asset. When the Group has transferred its contractual rights to receive cash flows from an asset and neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement.

Impairment

The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss.

ECLs are recognised in two stages:

12-month ECL: For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months,
Lifetime ECL: For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure.

For trade receivables, other receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The expected credit losses were calculated based on a provision matrix that is based on the Group's historical credit loss experience, considering for forward-looking factors.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Financial instruments (continued)

ii. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.

The Group's financial liabilities include trade and other payables.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

• Financial liabilities at fair value through profit or loss

This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by TFRS 9. Gains and losses are recognised in the statement of profit or loss.

• Financial liabilities at amortised cost

After initial recognition, borrowings and trade and other payables are subsequently measured at amortised cost using the effective inerest rate method. Gains and losses are recognised in the statement of profit or loss.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.

iii. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Government grants

Government grants along with investment, research and development grants are accounted on accrual basis with their fair values when the application of grants is approved. These grants are accounted for as deferred income in the statement of financial position and are credited to income statement on a straight-line basis over the expected lives of related assets. Government grants allowing reduced corporate tax practice are evaluated within the scope of TAS 12 Income Taxes standard.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Statement of cash flows

Cash flows during the period are classified and reported by operating, investing and financing activities in the cash flow statements.

Cash flows from operating activities represent the cash flows generated from the Group's activities. Cash flows related to investing activities represent the cash flows that are used in or provided from the investing activities of the Group (tangible and intangible assets and financial assets). Cash flows arising from financing activities represent the cash proceeds from the financing activities of the Group and the repayments of these funds.

Events after financial position date

The Group adjusts the amounts recognised in its consolidated financial statements to reflect the adjusting events after the financial position date. If non-adjusting events after the financial position date have material influence on the economic decisions of users of the consolidated financial statements, they are disclosed in the notes to the consolidated financial statements.

Reporting financial information by segments

To be designated as a reportable segment, an operating segment's reported revenue, including sales to external customers and intersegment sales or transfers, must be 10 percent or more of the total revenue of all operating segments, both internal and external, its reported profit or loss must be 10 percent or more of the total assets of all operating segments, or its assets must be 10 percent or more of the total assets of all operating segments. If management believes that the information about the segment will be useful to financial statement users, operating segments that do not meet any of the above numerical thresholds may also be considered as reportable segments and information about them may be disclosed separately.

Segment reporting is designed to ensure uniformity with reporting to the decision-making authority regarding the Group's activities. The Group's operational decision-making authority is responsible for making decisions regarding the resources to be allocated to the departments and evaluating the performance of the departments.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.6 Significant accounting judgments estimates and assumptions

In the preparation of financial statements, the Group management requires the use of estimates and assumptions that may affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the amounts of income and expenses reported during the accounting period. Accounting judgments, estimates and assumptions are continuously evaluated by considering past experience, other factors and reasonable expectations about future events under current conditions. Necessary corrections are made and presented in the profit or loss statement in the period when it realized. Although these estimates and assumptions are based on management's best knowledge of current events and transactions, actual results may differ from their assumptions.

a) Mining assets consists of mine site development costs, mining rights, mining lands, deferred stripping costs and discounted costs associated with the improvement, rehabilitation and closure of mine sites. Mining assets are accounted in the consolidated financial statements with their net book value after deducting the accumulated depreciation and permanent impairment, if any, from their acquisition costs. Mining assets start to be amortized on a production basis according to producible ore reserve with the commencement of production. The depreciation expenses of the mining assets are associated with the production costs on the basis of the relevant mining sites.

Within the scope of long-term plan studies, which are regularly updated, the Group conducts studies to determine the remaining reserves of mining assets, production-based depreciation calculations, and rehabilitation provisions within this scope.

The Group management reviews the estimates made in relation to the visible and probable mineral reserves in each balance sheet period. In certain periods, the Group management has independent professional valuation companies make valuation studies in accordance with the Australian Exploration Results, Mineral Resources and Gold Reserves 2012 Standards ("JORC") to determine the amount of visible, possible and probable mineral reserves and it is updated by or under the supervision of persons who have the competencies specified in. The reserves and resource amounts in question have been audited and approved by the independent professional valuation company "SRK Consulting" in line with the "JORC" standards as of December 31, 2023. Inspection of reserves and resources according to UMREK standards has been completed and approved as of December 31, 2023.

Within the scope of these studies, the assumptions and methods used in determining the mineral reserves contain some uncertainties (such as gold prices, exchange rates, geographic and statistical variables), and the assumptions and methods developed in relation to the mineral reserve may change significantly depending on the availability of new information. The cost and depreciation of mining assets are adjusted prospectively based on these updates.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.6 Significant accounting judgments estimates and assumptions

b) Mining assets are amortized using the "production" method and the visible and possible gold reserve amount is used to calculate the depreciation rate. Other tangible assets, both movable and fixed, other than mining assets are depreciated using the straight-line method over their useful lives, limited with lifetime of the mines they are related to. The depreciation amounts calculated on the basis of the visible and possible gold reserves and using the production unit's method may vary between periods and for some mining assets, the depreciation may be affected by the deviation between the actual and estimated production amounts. These differences arise from the variables or assumptions stated below;
- Changes in the amount of visible and possible gold reserves as a result of the work done,
- The reserve's tenor ("grade") ratio, which can vary significantly from time to time, actual gold price and the estimated gold price taken into account in reserve valuation and tenor determination studies,
- Other matters that may occur in the mine sites and cannot be predicted in advance and may affect the activities,
- Unpredictable changes in mining, processing and rehabilitation costs, discount rates, exchange rate changes,
- The effects of changes in mineral life on the useful life of tangible assets depreciated with the straightline method and whose useful life are limited to the mine life.

The impairment tests performed by the Company management depend on the management's estimates about the future gold prices, current market conditions, exchange rates and pre-tax discount rate together with the relevant project risk. The recoverable value of the cash-generating units is determined as the higher one from the use value of the relevant cash-generating unit or its fair value after deducting sales costs. These calculations require the use of some assumptions and estimates. Changes in assumptions and estimates based on gold prices may affect the useful life of mines, and conditions may arise that may require adjustment on the carrying values of both goodwill and related assets.

Assets are grouped as independent and smallest cash generating units. If an impairment indicator is determined, estimates and assumptions are established for the cash flows to be obtained from each cashgenerating unit determined. Impairment tests of both tangible assets and goodwill contain a certain amount of uncertainty due to the estimates and assumptions used. This uncertainty arises from the amount of visible and possible workable gold reserves used, current and future predicted gold prices, discount rates, exchange rates and estimated production costs.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

2. Basis of presentation of consolidated financial statements (continued)

2.6 Significant accounting judgments estimates and assumptions (continued)

c) Amount of provisions reflected in consolidated financial statements regarding environmental rehabilitation, improvement of mine sites and closure of mine sites is based on the plans of the Group management and the requirements of the relevant legal regulations. Changes in the aforementioned plans and legal regulations, upto-date market data and prices, discount rates used, changes in estimates based on mineral resources and reserves may affect provisions.

As of December 31, 2024, the Group reassessed the provision amounts due to changes in discount rates, costs, production areas subject to rehabilitation and reserve lifetimes. The Group evaluates the mine rehabilitation provision annually. Significant estimates and assumptions are made in determining the provision for mine rehabilitation due to the large number of factors that may affect the final liability to be paid. These factors include estimates of the scope and cost of rehabilitation activities, technological changes, changes in regulations, cost increases proportional to inflation rates and changes in net discount rates (December 31, 2024: 4.33%, December 31, 2023: 5.35%). These uncertainties may cause future expenditures to differ from the amounts estimated today.

The provision amount at the reporting date represents the best estimate of the present value of future rehabilitation costs. Changes in estimated future costs are accounted in the balance sheet by increasing or decreasing the rehabilitation obligation or asset if the initial estimate was initially recognized as part of an asset measured in accordance with TAS 16 Property, plant and equipment. Any reduction in the rehabilitation obligation and hence any reduction in the rehabilitation asset cannot exceed the carried value of that asset. In case of excess, the amount exceeding the carried value is immediately taken to profit or loss.

d) As the Group operates in the mining industry, it is exposed to many risks arising from laws and regulations. As of the balance sheet date, the results of current or future legal practices can be estimated within a certain ratio, based on the past experiences of the Group management and as a result of the legal consultancy received. Negative effects of a decision or application that may be taken against the Group may significantly affect the activities of the Group. As of December 31, 2024, there is no legal risk expected to significantly affect the activities of the Group.
e) At the stage of determining the amount of the provision for the lawsuits, the management consider the possibility of the ongoing lawsuits to be concluded against the Group and the legal advisors' evaluation of the consequences that may arise in case these lawsuits are concluded against the Group. The Group management makes the best estimate based on the information provided.
f) The gold in circuit inventory amount, which is followed as a semi-finished product and has not yet turned into finished gold during the production process, is evaluated separately for each production facility by making technical production calculations and estimations. The gold in circuit process, which is common for both tank leaching and heap leach production plants, ends after finished gold is obtained. Since the production processes of tank leaching and heap leaching facilities are different from each other, the amount of gold stock in the circuit differs on the basis of facilities, and the estimated amount of gold that can be obtained from the gold in circuit stocks of each facility at the end of the production process and the life of mine is analyzed based on technical calculations.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

3. Segment reporting

The Group's reporting according to the operating segments made as of December 31, 2024 is presented as follows:

			Elimination
	Mine	Other	adjustments	Total
Revenue
Domestic sales	8.874.243	362.762	(333.600)	8.903.405
Exports	349.045	-	-	349.045
Total revenue	9.223.288	362.762	(333.600)	9.252.450
Operating results
Depreciation expense (-)	(1.273.389)	(94.869)	-	(1.368.258)
Interest income from investment activities	2.284.756	67.526	-	2.352.282
Financial expense (-)	(314.586)	76.700	-	(237.886)
Current tax expense (-)	(117.277)	-	-	(117.277)
Deferred tax income / (expense)	(292.725)	(198.970)	137.844	(353.851)
Monetary gain / (loss)	(8.398.610)	(42.242)	(172.500)	(8.613.352)
Operating profit / (loss)	(402.050)	(137.923)	(31.498)	(571.471)
Profit / (loss) before tax from continuing
operations	(2.241.235)	(205.820)	158.605	(2.288.450)
Assets as of December 31, 2024	58.112.786	4.040.114	(26.923.458)	35.229.442
Liabilities as of December 31, 2024	3.656.638	235.344	(617.216)	3.274.766

In the table above, the amounts related to the segments are presented at the combined level, and all elimination balances within the Group are presented in the "Elimination adjustments" column.

The Group's reporting according to the operating segments made as of December 31, 2023 is presented as follows:

	Mine	Other	Elimination adjustments	Total
Revenue
Domestic sales	11.722.363	643.867	(2.517)	12.363.713
Exports	61.714	-	-	61.714
Total revenue	11.784.077	643.867	(2.517)	12.425.427
Operating results
Depreciation expense (-)	(1.089.089)	(147.558)	-	(1.236.647)
Interest income from investment activities	1.011.092	8.000	-	1.019.092
Financial expense (-)	(34.609)	(172.828)	-	(207.437)
Current tax expense (-)	(1.628.314)	(10.254)	-	(1.638.568)
Deferred tax income / (expense)	1.880.254	990.334	21.233	2.891.821
Monetary gain / (loss)	(12.056.561)	809.129	198.766	(11.048.666)
Operating profit / (loss)	539.222	(183.949)	(4.925)	350.348
Profit / (loss) before tax from continuing
operations	371.157	40.839	(827.590)	(415.594)
Assets as of December 31, 2024	62.293.504	4.436.620	(27.621.154)	39.108.970
Liabilities as of December 31, 2024	4.379.772	224.412	(629.572)	3.974.612

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

4. Cash and cash equivalents

			December 31, 2024	December 31, 2023
Cash Banks			72	370
- Demand deposits			83.933	614.796
- Time deposits			929.559	929.886
Total			1.013.564	1.545.052
Less: Interest accruals			(21.222)	(1.994)
Cash and cash equivalents presented in the cash flow statement		992.342	1.543.058
The details of the Group's time deposits as of December 31, 2024 are as follows;
Currency	Interest rate	Maturity	Currency amount	TL Equivalent
TL	%46,00 %50,00	1-30 Days	929.559	929.559
Total				929.559

The details of the Group's time deposits as of December 31, 2023 are as follows;

Currency	Interest rate	Maturity	Currency amount	TL Equivalent
TL	%40,00 - %45,00	30-35 Days	929.886	929.886
Total				929.886

The Group's blocked deposits of 32,373 thousand TL have been presented under financial investments account (December 31, 2023: 126,778 thousand TL).

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

5. Trade receivables and trade payables

a. Trade receivables

The trade receivables of the Group as of December 31, 2024 and 2023 are as follows;

	December 31, 2024	December 31, 2023
Trade receivables	155.964	254.348
Notes receivables	3.297	25.925
Provision for doubtful trade receivables (-)	(72.927)	(159.154)
Total	86.334	121.119

The movement of provision for doubtful trade receivables of the Group is as follows;

	2024	2023
January 1	159.154	251.878
Year additions	6.693	33.377
Provisions no longer required	(1.254)	(15.994)
Subsidiary disposal effect	(42.068)	-
Monetary gain	(49.598)	(110.107)
December 31	72.927	159.154

b. Trade payables

The trade payables of the Group as of December 31, 2024 and 2023 are as follows;

	December 31, 2024	December 31, 2023
Trade payables	224.766	473.193
Total	224.766	473.193

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

6. Other receivables

The other receivables of the Group as of December 31, 2024 and 2023 are as follows;

i. Short-term other receivables

a- Other receivables from third parties

		December 31, 2024	December 31, 2023
	VAT refund receivables Other miscellaneous receivables	4.348 939	220.389 1.401
Total		5.287	221.790
ii.	Long-term other receivables
a-	Other receivables from related parties
		December 31, 2024	December 31, 2023
	Other receivables from related parties	353.482	1.122.733
Total		353.482	1.122.733
b-	Other receivables from third parties
		December 31, 2024	December 31, 2023
	Deposits and guarantees given	4.827	6.054
Total		4.827	6.054

7. Inventories

The inventories of the Group as of December 31, 2024 and 2023 are as follows;

	December 31, 2024	December 31, 2023

Gold and silver in the production process and gold and silver bars	1.649.425	1.149.138
Ready to be processed and mined ore clusters	820.917	537.781
Chemicals and operating materials	296.270	273.317
Other inventories (*)	276.102	285.814
Total	3.042.714	2.246.050

(*) Other inventories consist of food and concentrated antimony stocks.

8. Biological assets

The biological assets of the Group as of December 31, 2024 and 2023 are as follows;

	December 31, 2024	December 31, 2023
Biological assets	-	67.556
Total	-	67.556

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

9. Prepaid expenses

The prepaid expenses of the Group as of December 31, 2024 and December 31, 2023 are as follows;

i- Short-term prepaid expenses

	December 31, 2024	December 31, 2023
Advances given Costs for the future months (*)	30.512 110.213	348.115 85.831
Total	140.725	433.946

ii- Long-term prepaid expenses

	December 31, 2024	December 31, 2023
Advances given (*) Costs for the coming years ()	1.530.758 6.843	2.811.529 5.063
Total	1.537.601	2.816.592

(*) The Group's expenses consist of rental fees and insurance costs for the coming years.

(**) Of the advances given, TL 1,118,407 thousand relates to advance payments made within the scope of the Group's ongoing Ağrı province Mollakara Gold Mine Project.

10. Other current and non-current assets

i- Other current assets

The other current assets of the Group as of December 31, 2024 and December 31, 2023 are as follows;

December 31, 2024December 31, 2023
	-
	1.798
353	1.307
17.367	3.105
	16.223 791

ii- Other non-current assets

The other non-current assets of the Group as of December 31, 2024 and December 31, 2023 are as follows;

	December 31, 2024	December 31, 2023

Spare parts and other materials (*)	900.995	823.003
VAT receivables	65.840	75.792

Total	966.835	898.795

(*) It consists of spare parts, materials and operating materials that are generally consumed over a period of more than one year.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

11. Financial investments

i- Short-term financial investments

The short-term financial investments of the Group as of December 31, 2024 and December 31, 2023 are as follows;

	December 31, 2024	December 31, 2023
Financial assets accounted at fair value under profit or loss (*) Currency protected time deposits ()	6.844.255 2.584.743	10.779.808 2.035.543
Total	9.428.998	12.815.351

ii- Long-term financial investments

The long-term financial investments of the Group as of December 31, 2024 and December 31, 2023 are as follows;

	December 31, 2024	December 31, 2023
Shares in subsidiaries (*) Blocked deposits	2.475.565 292.154	2.475.565 948.520
Total	2.767.719	3.424.085

(*) With the decisions taken at the General Assembly meeting held on September 11, 2015 and the amendment of the articles of association on the same date of Koza Ltd. which is the subsidiary of the Group with 100% share, two A Group shares each worth 1 GBP ("GBP") and the control has transferred to A Group shareholders. Pursuant to the amendment to the articles of association made as of September 11, 2015, savings regarding all operational and managerial activities of Koza Ltd., decision and approval of the articles of association, approval of liquidation transactions and share transfer transactions, etc. rights are given to directors. As a result of the mentioned changes, the Group has lost the control over Koza Ltd. and Koza Ltd. was excluded from the scope of consolidation. It has been accounted in the financial statements at cost since the date the control has ended. As of the report date, fair value measurement could not be calculated due to uncertainties arising from the ongoing legal processes about Koza Ltd.

A legal process has been initiated by the CMB with the decision dated February 4, 2016 regarding the General Assembly and the resolutions taken, in cases where the final judicial decisions regarding this decision differ from the initially recorded amounts, these differences will be accounted in the period determined.

(**) Currency protected time deposits are accounted as financial assets at fair value under profit or loss. The Group has converted foreign exchange deposit accounts amounting to 63,824 thousand USD into "Currency protected time deposits accounts''. The maturity of currency protected time deposits is between 175 and 365 days. The Group's blocked deposits in the 'Currency protected time deposits accounts' of 259,781 thousand TL have been presented under financial investments account (December 31, 2023: 821,742 thousand TL).
(***) The Group has 2,807,733,694 investment fund participation certificates worth 6,844,255 thousand TL in total and the fair value of the financial investments is are accounted for as financial assets recognized in profit or loss.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

12. Right of use assets

The right of use assets of the Group as of December 31, 2024 and 2023 are as follows;

	January 1, 2024	Addition	Disposals	Contract change impact	December 31, 2024
Cost:
Buildings	7.830	-	-	(1.709)	6.121
Vehicles	240.140	-	(240.140)	-	-
Total	247.970	-	(240.140)	(1.709)	6.121
Accumulated amortization:
Buildings	2.816	612	-	-	3.428
Vehicles	230.026	-	(230.026)	-	-
Total	232.842	612	(230.026)	-	3.428
Net book value	15.128				2.693
	January 1, 2023	Addition	Disposals	Contract change impact	December 31, 2023
Cost:
Buildings	10.340	-	-	(2.510)	7.830
Vehicles	244.248	-	-	(4.108)	240.140
Total	254.588	-	-	(6.618)	247.970
Accumulated amortization:
Buildings	1.653	1.163	-	-	2.816
Vehicles	164.334	65.692	-	-	230.026
Total	165.987	66.855	-	-	232.842
Net book value	88.601				15.128

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

13. Investment properties

The investment properties of the Group as of December 31, 2024 and 2023 are as follows;

	January 1,				December 31,
	2024	Addition	Disposals	Impairment	2024
Cost
Flats	-	1.412.037	-	(21.687)	1.390.350
Dormitory	41.759	-	-	-	41.759
Hotel	2.332.065	-	-	-	2.332.065
Total	2.373.824	1.412.037	-	(21.687)	3.764.174
Accumulated amortization
Flats	-	-	-	-	-
Dormitory	8.421	836	-	-	9.257
Hotel	1.094.330	45.560	-	-	1.139.890
Total	1.102.751	46.396	-	-	1.149.147
Net book value	1.271.073				2.615.027
	January 1, 2023	Addition	Disposals	Transfers	December 31, 2023
Cost
Flats	1.263.267	-	(1.127.275)	(135.992)	-
Dormitory	41.759	-	-	-	41.759
Hotel	2.332.098	-	(33)	-	2.332.065
Total	3.637.124	-	(1.127.308)	(135.992)	2.373.824
Accumulated amortization
Flats	180.379	5.672	(166.509)	(19.542)	-
Dormitory	7.586	835	-	-	8.421
Hotel	1.048.315	46.037	(22)	-	1.094.330
Total	1.236.280	52.544	(166.531)	(19.542)	1.102.751
Net book value	2.400.844				1.271.073

Within the scope of the lease contract of Angel's Hotel and Royal Garden Hotel, which are owned by Koza Turizm, the Group has obtained a rental income of 36,079 thousand TL between January 1 – December 31, 2024 (January 1 – December 31, 2023: 31,143 thousand TL).

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

14. Property, plant and equipment

The property, plant and equipment of the Group as of December 31, 2024 and December 31, 2023 are as follows:

	December 31, 2024	December 31, 2023
Mining assets Other tangible assets	2.278.386 8.524.667	2.246.685 7.475.407
Total	10.803.053	9.722.092

a) Mining assets

As of December 31, 2024 and December 31, 2023, mining assets consists of mining rights, mine site development costs, deferred stripping costs, mining sites, and closing and rehabilitation of mines, and the net book values of these mining assets are as follows.

	December 31, 2024	December 31, 2023

Mining sites	196.297	143.281
Mine site development cost	1.590.043	1.456.481
Deferred stripping costs	-	142.977
Rehabilitation of mining facility	-	108.444
Mining rights	492.046	395.502
Total	2.278.386	2.246.685

The movements of mining assets are as follows;

	January 1, 2024	Addition	Disposals	Inflation effect (*)	December 31, 2024
Cost
Mining sites	735.975	70.960	(1.815)	-	805.120
Mine site development costs	6.957.238	246.768	-	-	7.204.006
Deferred stripping costs	2.568.524	-	-	-	2.568.524
Rehabilitation of mining facility	633.577	174.505	-	(194.747)	613.335
Mining rights	595.159	96.833	-	-	691.992
Total	11.490.473	589.066	(1.815)	(194.747)	11.882.977
Accumulated depreciation
Mining sites	592.694	16.129	-	-	608.823
Mine site development costs	5.500.757	113.206	-	-	5.613.963
Deferred stripping costs	2.425.547	142.977	-	-	2.568.524
Rehabilitation of mining facility	525.133	249.616	-	(161.414)	613.335
Mining rights	199.657	289	-	-	199.946
Total	9.243.788	522.217	-	(161.414)	9.604.591
Net book value	2.246.685				2.278.386

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

14. Property, plant and equipment (continued)

b) Mining assets (continued)

	January 1, 2023	Addition	Disposals	Inflation effect (*)	December 31, 2023
Cost
Mining sites	735.762	213	-	-	735.975
Mine site development costs	6.817.959	139.279	-	-	6.957.238
Deferred stripping costs	2.456.763	111.761	-	-	2.568.524
Rehabilitation of mining facility	894.886	90.474	-	(351.783)	633.577
Mining rights	640.905	43.187	(88.933)	-	595.159
Total	11.546.275	384.914	(88.933)	(351.783)	11.490.473
Accumulated depreciation
Mining sites	560.214	32.480	-	-	592.694
Mine site development costs	5.366.589	134.168	-	-	5.500.757
Deferred stripping costs	2.357.511	68.036	-	-	2.425.547
Rehabilitation of mining facility	780.631	51.371	-	(306.869)	525.133
Mining rights	288.364	226	(88.933)	-	199.657
Total	9.353.309	286.281	(88.933)	(306.869)	9.243.788
Net book value	2.192.966				2.246.685

(*) The reclamation, rehabilitation and closure costs of the mine sites resulting from open pit mining site development activities and open pit production, according to their current conditions, are not indexed and are evaluated in US Dollar values.

All depreciation expenses are included in the cost of goods produced.

There isn't any mortgage on mining assets as of December 31, 2024 (December 31, 2023: None).

The costs of the mine sites, mining rights and mine site development costs of the Group, which have been fully depreciated as of December 31, 2024, but are in use, are amounting to thousand TL 4,147,650. (December 31, 2023: TL 3,460,273).

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

14. Property, plant and equipment (continued)

b) Other tangible assets

Movements of other tangible assets during the period as of December 31, 2024 and 2023 are as follows;

					Subsidiary
	January 1,			Transfers	disposal effect	December 31,
	2024	Addition	Disposals	(*)	(Dipnot 28)	2024
Cost
Land, buildings and land improvements	4.837.700	97.944	(160.863)	59.100	-	4.833.881
Machinery and equipment	10.008.452	310.074	(53.335)	22.415	(4.195)	10.283.411
Motor vehicles	4.214.461	181.751	(4.603)	(175.320)	(2.390.734)	1.825.555
Furnitures and fixtures	791.386	17.172	(820)	4.353	(5.012)	807.079
Construction in progress (**)	626.082	3.362.830	(4.140)	(157.872)	-	3.826.900
Total	20.478.081	3.969.771	(223.761)	(247.324)	(2.399.941)	21.576.826
Accumulated depreciation
Buildings and land improvements	2.670.391	154.954	(72.020)	-	-	2.753.325
Machinery and equipment	8.269.548	184.806	(36.432)	-	(4.194)	8.413.728
Motor vehicles	1.432.391	352.549	(3.626)	(175.320)	(398.671)	1.207.323
Furnitures and fixtures	630.344	53.234	(790)	-	(5.005)	677.783
Total	13.002.674	745.543	(112.868)	(175.320)	(407.870)	13.052.159
Net book value	7.475.407					8.524.667

There isn't any mortgage on other tangible assets as of December 31, 2024 (December 31, 2023: None).

There are annotations on the Gümüşhane dormitory building (net value of 135,992 thousand TL as of December 31, 2024) by the General Directorate of National Real Estate. As of December 31, 2024, the insurance paid on the tangible assets of the Group is thousand TL 27,317 (December 31, 2023: thousand TL 3,414).

The cost of other tangible assets of the Group, which have been fully depreciated as of December 31, 2024, but are in use, is amounting to thousand TL 9,522,463 (December 31, 2023: TL 5,939,103).

Except for the ongoing fixed expenses related to the Mastra field, the operations of which have been discontinued, depreciation expenses are included in the cost of goods produced and general administrative expenses. There is no capitalized financing expense in tangible fixed assets.

(*) As of December 31, 2024, the capitalized license software expenses (72,004 thousand TL) have been transferred to other intangible assets, and the vehicles (cost of 175,320 thousand TL) od which net book value of zero have been transferred to assets held for sale.

(**) The Group has made an investment decision for Mollakara Project for gold and silver production within the scope of Mollakara Gold Mine Project in Diyadin District of Ağrı Province. The construction in progress made during the year are mostly related to this Project.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

14. Property, plant and equipment (continued)

b) Other tangible assets (continued)

	January 1, 2023	Addition	Disposals	Transfers	December 31, 2023

Cost
Land, buildings and land improvements	4.771.715	48.779	(246.488)	263.694	4.837.700
Machinery and equipment	10.433.312	320.413	(760.739)	15.466	10.008.452
Motor vehicles	3.736.815	512.828	(35.182)	-	4.214.461
Furnitures and fixtures	909.327	35.490	(163.790)	10.359	791.386
Construction in progress	171.120	617.479	(2.328)	(160.189)	626.082

Total	20.022.289	1.534.989	(1.208.527)	129.330	20.478.081
Accumulated depreciation
Buildings and land improvements	2.711.182	106.692	(167.025)	19.542	2.670.391
Machinery and equipment	8.683.427	332.749	(746.628)	-	8.269.548
Motor vehicles	1.159.053	306.983	(33.645)	-	1.432.391
Furnitures and fixtures	724.821	64.489	(158.966)	-	630.344

Total	13.278.483	810.913	(1.106.264)	19.542	13.002.674

Net book value	6.743.806				7.475.407

15. Intangible assets

a) Goodwill

As of December 31, 2024 and December 31, 2023 the details of the Group's intangible assets are as follows:

	December 31, 2024	December 31, 2023
Goodwill related to Newmont Gold purchase	-	137.525
Total	-	137.525

The Group purchased 99.84% of Newmont Altın's shares in order to gain competitive advantage and create synergy by benefiting from the mining fields owned by Newmont Altın on June 28, 2010, in accordance with the "Share Purchase Agreement" with Newmont Overseas and Canmont. As of the same date, control of Newmont Altın was transferred to Koza Altın. As a result of the evaluations made by the Group management, goodwill has been recognized in the profit or loss statement as of December 31, 2024.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

15. Intangible assets (continued)

b) Other intangible assets

The details of the Group's other intangible assets as of December 31, 2024 and 2023 are as follows:

	January 1, 2024	Additions	Disposals	Transfers	Subsidiary disposal effect (Dipnot 28)	December 31, 2024
Costs
Rights	177.048	2.218	(94)	72.004	(193)	250.983
Total	177.048	2.218	(94)	72.004	(193)	250.983
Accumulated depreciation
Rights	158.608	53.490	(94)	-	(181)	211.823
Total	158.608	53.490	(94)	-	(181)	211.823
Net book value	18.440					39.160
	January 1, 2023		Additions	Disposals	Transfers	December 31, 2023
Costs
Rights	194.173		19.967	(43.754)	6.662	177.048
Total	194.173		19.967	(43.754)	6.662	177.048
Accumulated depreciation
Rights	182.308		20.054	(43.754)	-	158.608
Total	182.308		20.054	(43.754)	-	158.608
Net book value	11.865					18.440

Depreciation expenses are included in the cost of goods produced and general administrative expenses.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

16. Lease liabilities

	December 31, 2024	December 31, 2023
Short-term lease liabilities	1.015	4.344
Long-term lease liabilities	1.811	3.041
Total	2.826	7.385

Movement of lease liabilities for the year ended on December 31, 2024 and 2023 is as follows:

	2024	2023

January 1	7.385	53.275
Paid during the period	(10.090)	(28.259)
Interest accrued	7.801	922
Monetary gain	(2.270)	(18.553)
December 31	2.826	7.385

17. Payables relating to the benefits provided to employees

	December 31, 2024	December 31, 2023
Social Security Institution premiums to be paid Taxes and funds payable Due to personnel	78.140 44.988 34.574	76.848 82.256 33.629
Total	157.702	192.733

18. Bank credits

		December 31, 2024
	Currency	Nominal interest rate	Maturity date	Net book value
Bank credits	TL	%53,00	November, 2025	20.000

		December 31, 2023
	Currency	Nominal interest rate	Maturity date	Net book value
Bank credits	TL	%11,5	January, 2024	553.456

As of December 31, 2024 and 2023, the details of the Group's bank credits are as follows:

Banka Kredileri	2024	2023
January 1	553.456	-
Credit usage	20.000	504.109
Interest accrual	-	49.413
Payment (-)	(383.336)	-
Monetary gain	(170.120)	(66)
December 31	20.000	553.456

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

19. Other payables

The details of the Group's other payables as of December 31, 2024 and 2023 are as follows:

a) Short-term payables

	December 31, 2024	December 31, 2023
Other payables due to related parties (*) (Note 30) Other payables due to third parties	114.109 64.571	61.131 26.660
Total	178.680	87.791

(*) It consists of debts related to the purchase of real estates located in Istanbul Province Beşiktaş District Bebek Neighborhood, island 1259, parcel 132 and 133 and in Ankara Province Çankaya District, island 28371, parcel 1 from Koza İpek Holding A.Ş.

b) Long-term payables

	December 31, 2024	December 31, 2023
Other payables due to third parties (*)	193.419	233.391
Total	193.419	233.391

(*) Koza Altın has paid 538 thousand USD and 2.462 thousand USD, which constitute part of the total purchase price of 8.500 thousand US dollars, for 99.84% Newmont Altın shares, on June 28, 2010 and July 2, 2010, respectively. The remaining 5.500 thousand USD of the purchase price, 3.000 thousand USD will be paid after the start of the Diyadin project, which is planned for at least one year after the balance sheet date, and the remaining 2.500 thousand USD will be paid one year after the second payment.

20. Provisions, contingent assets and liabilities

As of December 31, 2024 and 2023, the details of the Group's provisions, contingent assets and liabilities are as follows:

a) Short-term provisions

	December 31,	December 31,
	2024	2023
State right expense provision	729.192	792.595
Provisions for lawsuit	620.245	332.295
Environmental rehabilitation, rehabilitation of mining sites and mine
closure provision	95.245	181.047
Other provisions	2.534	23.599
Total	1.447.216	1.329.536
The movement table for state right expense provision is as follows;
	2024	2023
January 1	792.595	1.066.129
Paid during the period	(598.285)	(791.602)
Effect of changes in estimates and assumptions	(173.548)	(190.406)
Additions	952.056	1.127.575
Monetary gain	(243.626)	(419.101)
December 31	729.192	792.595

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

a) Short-term provisions (continued)

The movement table for provision for lawsuits is as follows;

2024	2023
	221.773
	238.393
	(127.871)
(2.072)	-
620.245	332.295
	332.295 415.690 (125.668)

b) Long-term provisions

	December 31, 2024	December 31, 2023
Environmental rehabilitation, rehabilitation of mining sites and mine closure provision	682.024	473.100
Total	682.024	473.100

The movement table for environmental rehabilitation, rehabilitation of mining sites and provision for mine closure is as follows;

	2024	2023

January 1	654.147	871.683
Paid during the period	(393.584)	(68.922)
Discount effect	47.537	14.612
Effect of changes in estimates and assumptions	720.459	162.504
Monetary gain	(251.290)	(325.730)
December 31 (*)	777.269	654.147

(*) The amount of provisions reflected to the financial statements for environmental rehabilitation, reclamation and closure of mine sites is based on the plans of the Company management and the requirements of the relevant legal regulations, changes in the plan and legal regulations, current market data and prices, discount rates used, mineral resources and regulations. Changes in estimates based on reserves may affect provisions. As with reserve and resource amounts, rehabilitation provision amounts are evaluated by SRK Consulting and provision figures are determined in US Dollars.

c) Provisions for employee benefits

i- Short-term provisions for employee benefits

	December 31, 2024	December 31, 2023
Provision for unused vacation	45.899	41.592
Total	45.899	41.592

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

c) Provisions for employee benefits (continued)

The movement of provision for unused vacation is as follows;

	2024	2023

January 1 Additions / (cancellations), net	41.592 17.091	79.948 (6.929)
Monetary gain	(12.784)	(31.427)
December 31	45.899	41.592

ii- Long-term provisions for employee benefits

	December 31, 2024	December 31, 2023
Provision for employee termination benefits	218.857	213.795
Total	218.857	213.795

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

c) Provisions for employee benefits (continued)

Under the Turkish Labour Law, the Group is required to pay employment termination benefits to each employee who has qualified for such benefits as the employment ended. Also, employees who are entitled to a retirement are required to be paid retirement pay in accordance with Law No: 2422 dated March 6, 1981 and No: 4447 dated August 25, 1999 and the amended Article 60 of the existing Social Insurance Code No: 506. Some transition provisions related to the pre-retirement service term were excluded from the law since the related law was changed as of May 23, 2002.

The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the real rate net of expected effects of inflation. The severance pay ceiling is revised in every six months, and the ceiling amount of TL 41,828.42 (2023: TL 23,489.83) was taken into consideration in the calculation of the provision for severance pay. TFRS requires actuarial valuation methods to be developed to estimate the provision for severance pay. Accordingly, the following actuarial assumptions were used in the calculation of the total liability:

	December 31, 2024	December 31, 2023

Net discount rate	3,35%	2,00%
Probability of qualifying for seniority	95,03%	94,41%

The movements of the provision for severance pay within the accounting periods of December 31, 2024 and 2023 are as follows:

	2024	2023
January 1	213.795	281.268
Interest cost	49.707	46.074
Service cost	22.942	32.182
Prior period service cost (*)	-	4.710
Severance paid	(167.169)	(119.654)
Actuarial loss	160.478	71.503
Monetary gain	(60.639)	(102.288)
Subsidiary disposal effect (Note 28)	(257)	-
December 31	218.857	213.795

(*) The regulation that lifts the retirement age requirement for employees who started work before September 8, 1999 was published in the Official Gazette on March 3, 2023. Accordingly, those employees who have completed the number of premium days and insurance period are entitled to retire. The amount in question is the past service cost of the personnel who are considered to be at retirement age due to the regulation considered as a plan change.

Severance pay liability is not legally subject to any funding. Provision for severance pay is calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of the employees. TAS 19 ("Employee Benefits") stipulates the development of Group's liabilities within the scope of defined benefit plans by using actuarial valuation methods. The sensitivity analysis of the important assumptions used in the calculation of the provision for employee termination benefits as of December 31, 2024 and 2023 is as follows:

	Discount rate		Rate of retirement
	0,50% increase	0,50% decrease	0,50% increase	0,50% decrease
December 31, 2024	(30.058)	37.182	8.810	(8.077)
	Discount rate		Rate of retirement
	0,50% increase	0,50% decrease	0,50% increase	0,50% decrease
December 31, 2023	(27.539)	33.861	7.983	(7.271)

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

d) Important ongoing cases

i- Lawsuits related to mines

These lawsuits are related to the expansion of the activities in some licensed fields and / or the permits and licenses of the new areas to be operated.

Lawsuits related to Çukuralan mine:

A lawsuit numbered 2017/1656 E. was filed against the Ministry of Environment and Urbanization at the İzmir 6th Administrative Court for the cancellation of the positive EIA report given for the Çukuralan Operation 3rd Capacity Increase Project, and the Company intervened in the lawsuit. The court decided to cancel the transaction in question, and as a result of the appeal review, the Council of State found the decision of the local court to be incorrect and overturned the decision in favor of the Company. While the trial is continuing at the İzmir 6th Administrative Court on the basis of case number 2019/574, the court decided to cancel the said transaction with its decision dated February 23, 2021. The decision has been appealed. A lawsuit numbered 2019/1120 E. was filed at the İzmir 6th Administrative Court for the stay of execution and cancellation of the positive Environmental Impact Assessment (EIA) Decision given by the Ministry of Environment and Urbanization regarding the Çukuralan Gold Mine Operation 3rd capacity increase 2009/7 project. The company has intervened in the relevant case alongside the defendant Ministry. The previous main file number and court of the relevant case is İzmir 3rd Administrative Court 2019/171 E. and due to the connection with the relevant case Çukuralan 3rd Capacity Increase file, the main file record was closed by the decision of İzmir Regional Administrative Court 4th Administrative Litigation Department and due to the connection, İzmir 3rd Administrative Court decided to send it to İzmir 6th Administrative Court. While the relevant case continues with İzmir 6th Administrative Court number 2019/1120 E., according to the decision given by the court, the positive EIA decision in question was annulled and an appeal was filed. At this point, according to the Council of State decision, for the file 2019/574 E., it was concluded that due to the fact that a second positive EIA decision was given regarding the project in question, it was not possible to apply two different positive EIA decisions regarding the same project together, that the defendant Ministry should accept that the EIA positive decision in question was implicitly withdrawn, and that the subject of the ongoing case was no longer a subject, therefore, it was definitely decided that the decision numbered 2019/574 E. of the İzmir 6th Administrative Court should be overturned and that there was no need to give a decision; and for the file 2019/1120 E., it was definitely decided that there was no legal error in the part of the decision of the İzmir 6th Administrative Court regarding the cancellation of the transaction in question, and that the appeal requests of the defendant Ministry and the intervening company as well as the defendant Ministry should be rejected.

In addition, the company intervened in the lawsuit filed by some plaintiffs against the Governorship of Izmir for the annulment of the Environmental Impact Assessment Not Required decision given for the Çukuralan Gold Mine Crushing and Screening Facility Project planned to be built by the company in the Izmir 6th Administrative Court file numbered 2020/1479 E., and it was decided to partially accept and partially reject the appeal requests of the intervening company.

The company intervened in the relevant case alongside the defendant ministry in both files, and in both files, the court ruled to reject the case on the grounds that the EIA positive decision was in accordance with the law. The decision given in the file numbered 2021/1407 E. of the Izmir 4th Administrative Court and the file numbered 2021/1013 E. of the Izmir 4th Administrative Court was appealed by the plaintiffs, and as a result of the appeal trial, the plaintiffs' appeal request was accepted, and since a more detailed examination was required procedurally, the first instance court decision was overturned by a majority vote against the company, and the file was sent to the first instance court for a more detailed examination. The file numbered 2021/1407 E. of the Izmir 4th Administrative Court has received the number 2023/1278 E. of the Izmir 4th Administrative Court, and the file numbered 2021/1013 E. of the Izmir 4th Administrative Court has received the number 2023/1294 E. of the Izmir 4th Administrative Court.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

d) Important ongoing cases (continued)

i- Lawsuits related to mines (continued)

In both files, the court decided to cancel the transaction in question. The defendant administration and the company appealed the decision given in file numbered 2023/1294 E. of the İzmir 4th Administrative Court. The file is being viewed through the Council of State 4th Chamber Presidency file numbered 2024/1085 E. The defendant administration and the company requested a stay of execution during the appeal period, and the request for a stay of execution was rejected by the Council of State 4th Chamber Presidency with its decision dated March 28, 2024. The appeal hearing is ongoing. The decision given in file numbered 2023/1278 E. of the İzmir 4th Administrative Court was notified to the parties and the company applied for an appeal. The file is being viewed through the Council of State 4th Chamber Presidency file numbered 2024/1769 E. The defendant administration and the company requested a stay of execution during the appeal period, and the request for a stay of execution was rejected by the 4th Chamber of the Council of State with its decision dated May 16, 2024. The company objected to the decision in question with a petition dated 16 June 2024, and the objection to the decision of the Council of State 4th Chamber Presidency regarding the rejection of the request for a stay of execution dated 4 July 2024 was rejected without examination.

As a result of the appeal trial held by the 4th Chamber of the Council of State with the files numbered 2024/1769 and 2024/1085; with the decision numbered 2024/1085 E., 2024/5582 K. of the 4th Chamber of the Council of State; it was decided to accept the appeal request, to overturn the decision numbered 2023/1294 E., 2024/267 K. given by the İzmir 4th Administrative Court dated 14 February 2024, and to reject the case.

Again, with the decision numbered 2024/1769 E., 2024/5583 K. of the Council of State 4th Chamber; it was decided to accept the appeal request, to overturn the decision numbered 2023/1278 E., 2024/520 K. dated 27 March 2024 given by the Izmir 4th Administrative Court, and to reject the case.

Lawsuits related to Çanakkale project:

In the lawsuit filed for the annulment and suspension of the EIA positive decision regarding the S: 201001197 Gold and Silver Mine Project, which is planned to be made in the vicinity of Serçiler and Terziler villages in the central district of Çanakkale, the company intervenes with the Ministry of Environment and Urbanization within the case number 2020/763 E. At the current stage, Çanakkale 1st Administrative Court decided to cancel the act subject to the lawsuit, an appeal was filed against the decision. It has been decided to definitely reject the appeal requests of the intervening company.

ii- Lawsuits regarding the Company's subsidiary abroad

Legal proceedings have been initiated against the amendment of the articles of association, establishment of privileged shares and change of board of directors of Koza Ltd., headquartered in London, in which the Company has 100% shares, and the legal proceedings are ongoing in the London courts. In the decision taken on January 23, 2019 in the file numbered 2017/349 E. of the Ankara 10th Commercial Court of First Instance, it was decided that 60,000,000 British Pounds Sterling be collected from the defendants and paid to Koza Altın İşletmeleri A.Ş. together with the interest accrued as of September 1, 2015 in accordance with Article 4/a of Law No. 3095, with the right to appeal within two weeks from the notification of the decision. Against this decision, the defendants appealed, and the Ankara Regional Court of Justice 21st Civil Chamber ruled with its decision numbered 2019/699 E. and 2019/1189 K. that the defendants' appeal application should be deemed not to have been made due to procedural reasons. The defendants appealed against this decision. The Supreme Court of Appeals ruled to quash the file due to procedural reasons. The Ankara 10th Commercial Court of First Instance ruled with its additional decision that the defendants' appeal application should be deemed not to have been made. The defendants appealed the decision. The Ankara Regional Court of Justice 21st Civil Chamber ruled to reject the appeal application made by the defendants in the file numbered 2022/727 E. on the merits. The defendants appealed against the relevant decision. In response to the appeal petition submitted by the defendants, Koza Altın İşletmeleri A.Ş. submitted a response petition to the appeal. It was decided to approve the decision of the Regional Court of Justice by the decision of the 11th Civil Chamber of the Supreme Court of Appeals, numbered 2024/2772, Decision numbered 2024/3573, dated May 6, 2024.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

d) Important ongoing cases (continued)

iii- Liability lawsuits filed against former managers

As a result of the evaluations made by the CMB after the decision to appoint a trustee, the Company was instructed to file a liability lawsuit against previous board members for various reasons, and various liability lawsuits were filed against former managers on behalf of Ankara Commercial Courts, and the lawsuits are still pending. Lawsuits that may affect the activities of the Company are announced on the public disclosure platform in legal periods.

iv- Other legal processes

Based on the decision of the Ankara 5th Criminal Court of Peace dated October 26, 2015, the management of the Company was transferred to the Board of Trustees, and subsequently to the Savings Deposit Insurance Fund ("SDIF") on September 22, 2016. The indictment prepared by the Ankara Chief Public Prosecutor's Office regarding the events that led to the appointment of a trustee was accepted by the Ankara 24th High Criminal Court and their trial began with the file numbered 2017/44 E. and the case was concluded by the first instance court. In the decision of the first instance court; it was decided to confiscate the company shares belonging to the previous board members who were on trial. It was decided that the above-mentioned measure of appointing a trustee would continue until the decision was finalized. The appeal review of the Ankara 24th High Criminal Court regarding the file numbered 2017/44 E. has been completed and the decision of the appeal court has been announced on the Public Disclosure Platform. Following the decision of the Court of Cassation, the transfer and registration procedures of all Koza Group companies to the Ministry of Treasury and Finance have been carried out. Upon the objection made in the file in question, the Office of the Chief Public Prosecutor of the Court of Cassation has conducted an examination and as a result of the examination, no objection was filed as there was no material or legal reason requiring an objection.

With the Presidential Decree No. 8857 published in the Official Gazette dated August 20, 2024 and numbered 32638, it was decided that all of the shares belonging to the Treasury in the capitals of the Koza Group companies mentioned in the confiscation decision would be transferred to the Türkiye Wealth Fund as a whole, while preserving the parent company-subsidiary relations. Following the relevant Presidential decision, transfer and registration procedures for all Koza Group companies were carried out with the Türkiye Wealth Fund.

In the Ankara 24th High Criminal Court case numbered 2017/44 E., it was also decided that the files of the previous board members, whose trials could not be held because they did not come to court, be separated and recorded on a new basis, the trials continue on this file, and the measure of appointing a trustee, as explained above, be continued until the end of the trial. The separated file received the Ankara 24th High Criminal Court number 2020/20 E. and the trial continues on the relevant file.

In the file numbered 2017/44 E. of the Ankara 24th High Criminal Court, the defense counsel of Cafer Tekin İpek requested the court to retry the trial with a petition dated September 23, 2024. The request for a new trial was rejected by the court with an additional decision dated September 26, 2024 on the grounds that the issues put forward as reasons for a new trial were not new events or new evidence, no legal reason was given and no evidence was disclosed to confirm them, and the issues listed in the law regarding the retrial did not occur. With the petition submitted by Ebru Şedele Tınmaz's defense, the court was requested to lift the measure imposed on Ebru Şedele Tınmaz's assets. The request was rejected by the court with an additional decision dated September 30, 2024 on the grounds that the relevant injunction decision was given by the Ministry of Treasury and Finance and that there was no action to be taken by the court. The defense counsel of Ebru Şedele Tınmaz appealed against the additional decision, and the Ankara 25th High Criminal Court ruled to reject the objection with the decision dated October 15, 2024 in the file number 2024/735 D. İş.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

d) Important ongoing cases (continued)

iv- Other legal processes (continued)

In the case where the defendants Cafer Tekin İpek and Özlem Özdemir are tried, which is a case file numbered 2021/157 E. of the Ankara 24th High Criminal Court, it was decided that the defendants would be punished with the appeal being open, and as a result of the appeal trial, the file was partially returned (overturned) by the appeal and it was decided that the file be sent to the first instance court, where the verdict was overturned, to be reexamined and ruled on behalf of the defendant Cafer Tekin İpek. The trial process continued with the defendant Cafer Tekin İpek with the file number 2022/193 E. of the Ankara 24th High Criminal Court. The relevant file was decided on January 10, 2024, and the case was rejected based on the prosecutor's opinion; because the same defendant was sentenced for the same crimes in the file number 2022/133 E. of the Ankara 24th High Criminal Court. The company and the Revenue Administration Presidency appealed against this decision. With the decision numbered 2024/464 E., 2024/464 K. of the Ankara Regional Court of Justice, 4th Criminal Chamber, dated May 28, 2024, it was decided to reject our appeal on the merits. An objection was filed against this decision on June 14, 2024, and the Ankara Regional Court of Justice 4th Criminal Chamber decided that there was no need to correct the decision and that the file be sent to the Ankara Regional Court of Justice 5th Criminal Chamber for evaluation. The Ankara Regional Court of Justice 5th Criminal Chamber's decision dated July 3, 2024 definitively ruled to reject the objection.

The file numbered 2022/133 E. heard at the Ankara 24th High Criminal Court is the file that was separated from the main file numbered 2017/44 E. heard at the Ankara 24th High Criminal Court in terms of the crime of contravention of the Tax Procedure Law against the defendants Ali Serdar Hasırcıoğlu, Orhan Selçuk Hasırcıoğlu, Şaban Aksöyek and Cafer Tekin İpek. In the relevant file, a decision was made regarding the punishment of all defendants, including the defendant Cafer Tekin İpek, and the relevant decision was annulled by the decision numbered 2024/26 D. İş of the Ankara 25th High Criminal Court dated February 5, 2024, as a result of the objections made by the defendants and the participating Revenue Administration Presidency. Following the aforementioned annulment decision, the file was sent back to the Ankara 24th High Criminal Court and received the number 2024/115 E. and the trial continues on the relevant file. In the relevant file, a reversal in the interest of law was sought regarding the decision numbered 2024/26 D. İş of the Ankara 25th High Criminal Court dated February 5, 2024, and at the hearing dated May 14, 2024, it was decided to await the result of the relevant reversal in the interest of law and to postpone the next hearing to September 10, 2024.

It was reported by the Ankara Chief Public Prosecutor's Office Legal Remedies Bureau that no reversal was sought in the interest of the law because the problem could be resolved through judicial channels. At the hearing held on September 10, 2024, it was decided that a warrant be written to the penal institution so that Cafer Tekin İpek would be present at the next hearing and that the next hearing would be postponed to October 16, 2024. At the hearing dated October 16, 2024, the prosecution requested that the defendants be punished. Due to the change of the panel, the court decided to review the file for a verdict and the next hearing was postponed to December 10, 2024. At the hearing dated December 10, 2024; it was decided that the defendants Cafer Tekin İpek, Ali Serdar Hasırcıoğlu, Şaban Aksöyek, Orhan Selçuk Hasırcıoğlu would be penalized for their violation of the Tax Procedure Law. The reasoned decision regarding the punishment has been notified to the parties; the defendants and the participating Revenue Administration have filed an objection against the decision numbered 2024/469, case numbered 2024/115, dated 10 December 2024, of the Ankara 24th High Criminal Court. The file was sent to the Ankara 25th High Criminal Court for the examination of the objection on January 14, 2025, and the relevant objections are being examined by the Ankara 25th High Criminal Court.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

d) Important ongoing cases (continued)

v- Lawsuit regarding the ATP İnşaat ve Ticaret A.Ş.

The subject of the file numbered 2017/976 E. of the Istanbul 10th Commercial Court of First Instance is that the Share Sale and Transfer Agreement dated 12.05.2008 was made by eliminating the will of Ahmet Burak Mızrak and that with the said agreement, Kanaltürk's licensee and operator Yaşam Television Yayın Hizmetleri A.Ş., Rektur Reklam Paz. and Tic. Ltd. Ltd. and Gökcan Production Tic. It constitutes a claim for financial compensation on the grounds that it had to be transferred to ATP İnşaat ve Ticaret A.Ş. for a price below one-third of the value of its shares in A.Ş. In the relevant case, the material damage suffered by the plaintiff Ahmet Burak Mızrak; Defendants Hamdi Akın İpek and ATP İnşaat ve Ticaret A.Ş. together with the annual 6% and increasing USD interest paid by the state banks to the 1-year maturity deposit account opened in USD, which will be processed as of 100,000.00 USD as an indefinite receivable as of 12.05.2008. It was requested that it be collected and paid to Ahmet Burak Mızrak. In addition, as an additional case filed by Ahmet Mızrak to the file numbered 2022/441 E. of the Istanbul 4th Commercial Court of First Instance and the file numbered 2017/976 E. of the Istanbul 10th Commercial Court of First Instance, the plaintiff was exposed to the same allegations by repeating the same allegations and based on the same allegations. material damage; from the defendants Hamdi Akın İpek and ATP İnşaat ve Ticaret A.Ş., together with the annual 6% and increasing USD interest paid by the state banks to the 1 year maturity deposit account opened in USD, which will be processed as of 12.05.2008 as an indefinite receivable of 200,000.00 USD. It was requested that it be collected and paid to Ahmet Burak Mızrak. The file numbered 2022/441 E. of the Istanbul 4th Commercial Court of First Instance has been merged into the file numbered 2017/976 E. of the Istanbul 10th Commercial Court of First Instance. At the hearing held on 05/07/2023, it was decided to reject the plaintiff's case and the combined case due to the limitation period, with the possibility of appeal. The file was appealed by the plaintiff. The file has not yet been finalized and the trial continues at the appeal stage.

vi- Employee lawsuits and cases of contract receivables

As of December 31, 2024, the provision amount accounted for ongoing employee and other lawsuits against the Group is amounting to TL 620,245 thousand (December 31, 2023: TL 332,295 thousand)

e) Commitments and contingent liabilities

i- Letter of guarantees given

The details of the letter of guarantees given by the Group as of December 31, 2024 and December 31, 2023 are as follows:

	December 31,	December 31,
	2024	2023
A. CPM's given on behalf of own legal entity
	348.220	441.813
- Guarantee	348.220	441.813
- Mortgage	-	-
B. CPM's given in favor of partnerships which are fully consolidated	-	-
C. CPM's given for assurance of third parties debts in order to conduct
usual business activities	-	-
D. Total amount of other CPM's given	-	-
i. Total amount of CPM's given in favor of the parent company	-	-
ii. Total amount of CPM's given in favor of other group companies
which are not in scope of B and C	-	-
iii. Total amount of CPM's given on behalf of
third parties which are not in scope of C	-	-
Total	348.220	441.813

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

20. Provisions, contingent assets and liabilities (continued)

e) Commitments and contingent liabilities (continued)

ii- Letter of gurantees received

The details of the Group's letter of guarantees received as of December 31, 2024 and December 31, 2023 are as follows:

	December 31, 2024	December 31, 2023

Guarantee letters Guarantee cheques	2.465.643 2.420.009	3.713.265 2.927.778
Security bonds	122.557	165.543
Total	5.008.209	6.806.586

iii- Government grants

6% of the income tax calculated on the Employer's Insurance Premium Share for the employees of the Group's mining processing facility in Mastra-Gümüşhane is covered by the Treasury within the scope of the "Regional Insurance Premium Incentive" numbered 56486. The company also benefits from the 5% employer's insurance premium incentive within the scope of the "Social Insurance and General Health Insurance Law" No. 5510 in all workplaces.

The Group benefits from investment incentives in İzmir Çukuralan, Kayseri-Himmetdede, Eskişehir-Kaymaz, Ağrı-Mollakara enterprises and Ankara Central Solar Power Plant (Electricity Generation, Transmission and Distribution). Within the scope of the investment incentive certificates in question, the Company's contribution to investment rate is 40% in İzmir Çukuralan, Kayseri-Himmetdede, Eskişehir-Kaymaz enterprises and 80% as corporate tax reduction rate, 50% as contribution to investment rate in Ağrı-Mollakara and 50% as corporate tax reduction rate. 90%, Ankara Central Solar Power Plant (Electricity Generation, Transmission and Distribution investment incentive Contribution to Investment rate is 30% and corporate tax reduction rate is 70%.

Within the scope of the incentive used in the İzmir Çukuralan region, on March 27, 2018, within the scope of the incentive used for the Himmetdede region, on December 21, 2017, within the scope of the incentive used in the Ağrı-Mollakara region, on October 06, 2022, within the scope of the incentive used in the Kaymaz region, on May 08, 2023, within the scope of the incentive used in the Ankara Central Solar Power Plant. Within the scope of the incentive, investment started on March 17, 2023.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

21. Equity

As of December 31, 2024, the Company's paid-in capital is amounting to thousands TL 259,786 (December 31, 2023: thousands TL 259,786) and consists of 25,978,556,100 shares (December 31, 2023: 25,978,556,100 shares) with a nominal share value of 1 Kuruş, fully paid. The registered capital ceiling of the Company is thousands TL 400,000 (December 31, 2023: thousands TL 400,000).

In accordance with the Capital Markets Board's document regarding the Registration of the shares to be issued by the Joint Stock Companies for the Capital Increase dated February 2, 2012 and numbered 5/10, the Group was registered at the Ankara Trade Registry Office on February 2, 2012 and registered a registered capital ceiling of Thousands TL 400,000 has increased its issued capital from Thousands TL 129,893 to Thousands TL 259,786.

The transfer of the Company's shares belonging to the treasury to the Türkiye Wealth Fund was registered on October 18, 2024 and was published in the Trade Registry Gazette dated October 22, 2024 number 11191. The Company's main parent is the Türkiye Wealth Fund.

The breakdown of partners with capital is as follows;

	December 31, 2024		December 31, 2023
Equity		Share	Share	Share
	Share Rate	Amount	Rate	Amount

Koza İpek Holding A.Ş.	62,10%	161.317	62,12%	161.383
Publicly traded	37,75%	98.069	37,72%	98.003
Other	0,15%	400	0,16%	400
Paid-in capital		259.786		259.786
Capital adjustment differences		3.777.870		3.777.870
Total		4.037.656		4.037.656

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

21. Equity (continued)

The privileges given to shares representing the capital are as follows;

Group	Registered / Bearer	Par value	Concession type (*)
A	Registered	22.052	3-4
B	Bearer	51.455	3
C	Bearer	186.279	-

(*) Concession type:

Dividend privilege
Voting privilege
Privilege in the election of the board of directors
Privilege in the selection of the supervisory board
Limitations on priviliges about buy new shares, transfer etc.
Other privileges

There are no privileges for (A) and (B) type shares with registered and bearer type shares other than the privileges stated above, and a trustee was appointed to the Group pursuant to the decision of Ankara Criminal Court of Peace on October 26, 2015. Subsequently, the Group was transferred to the SDIF on September 22, 2016. For this reason, the privileges of (A) and (B) share groups cannot be used. Share premiums represent the cash inflows generated by selling the shares at market prices. These premiums are accounted under equity and cannot be distributed. However, it can be used for future capital increases.

According to the Turkish Commercial Code, legal reserves consist of first and second legal reserves. The TCC stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Company's paid-in share capital. The second legal reserve is 10% of the distributed profit in excess of 5% of the paid-in share capital. According to the Turkish Commercial Code, as long as the legal reserves do not exceed 50% of the paid-in capital, they can only be used to offset the losses, it is not possible to use them in any other way.

Public companies make their dividend distributions according to the CMB's "Dividend Communiqué" numbered II 19.1, which entered into force as of February 1, 2014.

Companies distribute their profits within the framework of profit distribution policies to be determined by their general assemblies and in accordance with the provisions of the relevant legislation, by the decision of the general assembly. Within the scope of the said communique, a minimum distribution rate has not been determined. Companies pay dividends as specified in their articles of association or profit distribution policies. In addition, dividends can be paid in installments of equal or different amounts and dividend advances can be distributed over the profit in the financial statements.

Unless the reserves that should be set aside according to the TCC and the dividend determined for the shareholders in the articles of association or in the profit distribution policy are reserved; it cannot be decided to allocate other reserves, to transfer profits to the next year, and to distribute dividends to dividend owners, members of the board of directors, company employees and persons other than shareholders, and no dividends can be distributed to these persons unless the dividend determined for shareholders is paid in cash.

Regarding the share buy-back and share purchase and sale transactions initiated by the decision of the Koza Altın İşletmeleri A.Ş. Board of Directors, 25,000,000 Koza Altın İşletmeleri A.Ş. shares, 6,077,881 Koza Anadolu Metal Madencilik İşletmeleri A.Ş. shares and 5,100,939 İpek Doğal Enerji Kaynakları Araştırma ve Üretim A.Ş. shares were bought back for a total of 1,319,594 Thousand TL during the period till December 31, 2024.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

21. Equity (continued)

The Group's restricted reserves as of December 31, 2024 and December 31, 2023 are as follows:

	December 31, 2024	December 31, 2023
Restricted reserves Reserves for withdrawn shares	981.499 1.011.599	981.499 704.255
Total	1.993.098	1.685.754

According to the Turkish Commercial Code, the Company allocates reserves for its own shares acquired in an amount that meets the acquisition value. These reserves can be dissolved in an amount that meets their acquisition value if the aforementioned shares are transferred or destroyed. In accordance with the legislation related to the revaluation fund, other funds in the liabilities can be dissolved if they are converted into capital and the reassessed assets are amortized or transferred.

It was published in the Official Gazette dated December 30, 2023 and numbered 32415 (Second Extraordinary) pursuant to the Tax Procedure Law. According to the relevant Communiqué, the balance sheet dated December 31, 2023, prepared in accordance with the Tax Procedure Law, has been corrected by using the Producer Prices General Indices (PPI) published by the Turkish Statistical Institute within the scope of inflation accounting application. The attached financial statements have been subjected to inflation adjustment using the Consumer Price Indices (CPI) published by the Turkish Statistical Institute in accordance with TAS 29, and ultimately the amounts for the current and previous reporting period are expressed in terms of purchasing power as of December 31, 2024. Due to the use of distinct indices in the Tax Procedural Law and TAS 29 inflation accounting differences have emerged between the amounts included in the balance sheet prepared in accordance with the Tax Procedure Law regarding the items "Inflation Adjustment on Capital" and " Restricted reserves appropriated from profits" the amounts included in the financial statements prepared in accordance with TAS / TFRS.

These differences are accounted in the "Retained Earnings or Losses" item in the TAS/TFRS financial statements, and these differences are given in detail below:

	December 31, 2024
	Adjustment to capital	Share premium	Restricted reserves
To TAS/TFRS Financial Reports	3.777.870	93.254	981.499
To Tax Procedure Law	6.902	1.608	954.486
Differences	3.770.968	91.646	27.013

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

22. Revenue and cost of sales

The details of the Group's revenue and cost of sales as of January 1 – December 31, 2024 and 2023 are as follows:

a) Revenue

	January 1 –	January 1 –
	December 31, 2024	December 31, 2023

Domestic sales	8.904.932	12.364.721
Exports	349.045	61.714
Other sales	-	3.042
Total sales	9.253.977	12.429.477
Sales returns	(177)	(649)
Sales discounts and other discounts	(1.350)	(3.401)
Net sales	9.252.450	12.425.427
Cost of sales	(6.343.308)	(7.628.819)
Gross profit	2.909.142	4.796.608

The distribution of the Group's revenues by product type as of January 1 – December 31, 2024 and 2023 are as follows:

	January 1 –	January 1 –
	December 31, 2024	December 31, 2023

Sales of gold bars	8.699.498	11.630.312
Sales of silver bars	36.422	74.745
Other (*)	518.057	724.420
Toplam	9.253.977	12.429.477

(*) 214,427 thousand TL of other revenues comes from Özdemir Antimuan Madenleri A.Ş., 171,877 thousand TL from ATP Koza Gıda Tarım Hayvancılık Sanayi ve Ticaret A.Ş. and the remaining portion comes from other subsidiaries.

b) Cost of sales

	January 1 –	January 1 –
	December 31, 2024	December 31, 2023

Personnel expenses	1.915.165	1.843.094
Depreciation and amortisation expense	1.321.253	1.117.248
State right expenses	952.056	1.127.575
Direct materials used	885.110	1.623.946
Rehabilitation expenses	514.024	91.303
Electricity and fuel expenses	421.307	675.823
Repair and maintenance expenses	376.199	597.149
Transportation costs	214.952	180.222
Rent expenses	111.578	81.783
Stripping and crusher feeding expenses	64.975	290.914
Other	95.742	258.898
Change in work-in-progress and finished good inventory	(715.166)	(406.127)
Total	6.157.195	7.481.828
Cost of merchandises sold	186.113	146.991
Total	6.343.308	7.628.819

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

23. Expenses by nature

Research and development, marketing, sales and distribution and general administrative expenses

	January 1 –	January 1 –
	December 31, 2024	December 31, 2023

Research expenses	1.034.377	872.604
Personnel expenses	718.774	677.463
Advertising and marketing expenses	169.665	212.910
Legal expenses	80.628	123.484
Outsourced security expenses	66.209	55.354
Depreciation and amortisation expenses	47.007	119.399
Electricity and fuel expenses	26.071	54.209
Insurance expenses	21.466	16.101
Audit and consultancy expenses	16.088	12.316
Marketing, sales and distribution expenses	7.996	2.164
Rent expenses	6.464	17.680
Dues, donations and aids	6.098	4.732
Travel expenses	4.256	34.211
Taxes, duties and charges expenses	1.757	30.814
Communication expenses	1.639	5.972
Other	119.708	219.390
Total	2.328.203	2.458.803

24. Other operating incomes and expenses

a- Other operating income

The details of the Group's other operating incomes as of January 1 – December 31, 2024 and 2023 are as follows:

		January 1 –
	January 1 –	December 31,
	December 31, 2024	2023
Exchange difference income related to commercial transactions	50.687	-
Charge out income	47.914	96.728
Scrap sales income	21.221	24.716
Doubtful receivable provision released	1.254	15.994
Other	116.242	57.111
Total	237.318	194.549

b- Other operating expenses

The details of the Group's other operating expenses as of January 1 – December 31, 2024 and 2023 are as follows:

	January 1 – December 31, 2024	January 1 – December 31, 2023

Lawsuit provision	415.690	238.393
Doubtful receivable expenses	6.693	33.377
Foreign exchange expense related to trading activities	-	141.648
Other (*)	967.345	1.768.588
Total	1.389.728	2.182.006

(*) As of December 31, 2024 TL 163,812 thousand of the balance consists of VAT receivables that are expensed, TL 160,441 thousand of the balance consists of ongoing fixed expenses of the Mastra facility that have been discontinued, and TL 96,554 thousand of the balance consists of donations and aid.

As of December 31, 2023, TL 889,305 thousand of the balance consists of earthquake donations, and TL 293,480 thousand of the balance consists of the cost incurred for school donations.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

25. Income from investing activities

The details of the Group's income from investing activities as of January 1 – December 31, 2024 and 2023 are as follows:

	January 1 –	January 1 –
	December 31, 2024	December 31, 2023

Investment fund and stock fair value increases	2.957.778	6.600.924
Interest income (*)	2.352.282	1.019.092
Currency-protected deposit fair value increases	1.023.842	1.479.905
Income from fixed asset sales	49.313	283.249
Profit on sale of subsidiary (Note 28)	34.962	-
Income from investment property sales	-	1.078.091
Other	29.384	28.042
Total	6.447.561	10.489.303

(*) It consists of interest income obtained from time deposits and currency protected time deposit accounts.

26. Expense from investing activities

The details of the Group's expense from investing activities as of January 1 – December 31, 2024 and 2023 are as follows:

	January 1 –	January 1 –
	December 31, 2024	December 31, 2023

Goodwill impairment	137.525	-
Investment property impairment	21.687	-
Other	14.561	-
Total	173.773	-

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

27. Explanations on net monetary position gains/(losses)

The amounts related to net monetary position gains and (losses) of the Group's Subsidiaries after consolidation, elimination and adjustments are as follows;

Non-monetary items	January 1 – December 31, 2024
Statement of financial position items
Inventories	395.577
Prepaid expenses	265.676
Financial investments	8.589.958
Tangible assets	2.956.541
Intangible assets	29.405
Mining assets	723.545
Investment properties	133.283
Adjustment to share capital	(9.528.209)
Restricted reserves	(1.766.451)
Retained earnings	(8.251.296)
Reserves for withdrawn shares	768.775
Other comprehensive income/expense not to be reclassified to profit/loss	4.745
Deferred income	(181)
Share premium	(1.151)
Biological assets	(14.532)
Goodwill	42.272
Deferred tax	670.135
Statement of profit/loss items
Revenues	(1.546.638)
Sales returns	823
Cost of sales	1.144.878
Research and development expenses	121.866
Marketing, sales and distribution expenses	23.012
General administrative expenses	(26.398)
Other operating income	(46.059)
Other operating expense	342.328
Income from investing activities	(901.318)
Expense from investment activities	367
Financial income	(49.479)
Financial expenses	104.394
Current tax expense	51.548
Net monetary loss	(5.762.584)

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

28. Asset groups classified as held for sale

The sale of the shares of ATP Havacılık A.Ş., a subsidiary of the Group, to Koza İpek Holding A.Ş. with the decision of the Board of Directors numbered 2024/10 dated 11 June 2024, amounting to 1,750,000 Thousand TL, was realized on 5 July 2024 and the Group lost control over ATP Havacılık A.Ş. and was excluded from the scope of consolidation using the financial statements dated 30 June 2024, which is the closest balance sheet date to the transaction date.

TFRS 5 requires that only assets that meet certain criteria be reported separately in terms of segment reporting when determining the preparation of assets for sale and their presentation in the financial reporting process. Since the company in question is not considered a segment for the Group, the profit or loss and other comprehensive income statement of the relevant company is not classified as a discontinued operation.

	June 31, 2024
Assets held for sale
Cash and cash equivalents	132.154
Other receivables	55
Inventories	117
Prepaid expenses	502
Current tax related assets Current assets	1.151 133.979

Financial investments	1.009
Other receivables Tangible and intangible assets	387 1.992.083
Prepaid expenses	438
Non-current assets	1.993.917

Toplam assets	2.127.896
	June 31, 2024
Liabilities held for sale
Trade payables	324
Provisions for employee benefits	131
Other payables	1.058
Short term provisions Short term liabilities	2.554 4.067

Long term provisions	257
Deferred tax liability	132.930
Long term liabilities	133.187
Total liabilities	137.254
	June 31, 2024

Sales price Monetary gain	1.750.000 275.604
Net book value of the asset sold	(1.990.642)

Sales profit	34.962
	January 1 – June 30, 2024
Condesed profit/(loss) for the period related to asset held for sale
Revenue	-
Cost of sales	(47.797)
Gross profit	(47.797)
Operating profit /(loss) Operating profit before financial income	(84.658) (54.385)
Profit/(loss) before tax	(54.987)
Current tax expense	(100.252)
Profit/(loss) for the period related to asset held for sale	(155.239)
	January 1 – June 30, 2024
Cash flow statement related to asset held for sale
Cash flows from operating activities	(7.079)
Cash flows from investing activities	300
Cash flows from financing activities	-
Net increase/(decrease) in cash and cash equivalents	(6.779)

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

29. Income tax

Current income tax

Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting profit by adding back non-deductible expenses, dividend income from domestic companies, other exempt income and investment incentives utilized.

As of December 31, 2024, the effective corporate tax rate applied is 25% (December 31, 2023: 25%).

In Türkiye, advance tax is calculated and accrued on a three-month basis. The provisional tax rate to be calculated on corporate earnings during the taxation of 2024 corporate earnings as of the provisional tax periods is 25%. Losses can be carried forward for a maximum of 5 years to be deducted from taxable profits in future years. However, losses incurred cannot be deducted retroactively from profits in previous years.

Income Withholding Tax

In addition to corporate tax, income tax withholding must be calculated separately on dividends, excluding those distributed to full-fledged corporations and foreign companies' branches in Türkiye, which receive dividends in case of distribution and declare these dividends by including them in corporate income. Income tax withholding was applied as 10% in all companies between April 24, 2003 and July 22, 2006. As of December 22, 2021, this rate is applied as 15% with the President's decision numbered 4936. Dividends that are not distributed and added to the capital are not subject to income tax withholding.

Corporate tax liabilities / (assets) recognized in the consolidated balance sheet as of December 31, 2024 and December 31, 2023 are as follows:

	December 31, 2024	December 31, 2023
Current tax expense Prepaid taxes (-)	72.254 (450.885)	1.184.375 (886.631)
Current income tax liability	(378.631)	297.744

Tax expense details recognized in the consolidated income statement as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Current tax expense Deferred tax expense / (income)	(117.277) (353.851)	(1.638.568) 2.891.821
Total tax expense	(471.128)	1.253.253

Deferred taxes

The Gorup recognizes deferred tax assets and liabilities for temporary differences arising from differences between its tax base legal financial statements and its financial statements prepared in accordance with TMS / TFRS. The aforementioned differences are generally due to the fact that some income and expense items are included in different periods in the financial statements subject to tax and the financial statements prepared in accordance with TMS / TFRS, and these differences are stated below. In the calculation of deferred tax assets and liabilities, the tax rates expected to be applied in the periods when assets are converted into income or debts are paid are taken into account. The breakdown of cumulative temporary differences and the resulting deferred tax assets/(liabilities) at December 31, 2024 and December 31, 2023 are as follows:

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

29. Income tax (continued)

	December 31, 2024		December 31, 2023
	Cumulative		Cumulative
	temporary	Deferred	temporary	Deferred
	differences	tax	differences	tax

Mining assets	3.691.693	922.923	1.886.424	471.606
Investment properties	2.089.997	522.499	2.509.653	627.413
Financial investments	1.213.449	303.362	730.340	182.584
State right provision	729.192	182.298	792.596	198.148
Lawsuit provision	610.577	152.644	325.785	81.447
Employee termination benefit	218.857	54.714	213.795	53.449
Tangible and intangible assets	191.123	47.781	2.614.368	654.204
Provisions for doubtful receivables	9.496	2.374	72.481	18.121
Provision for unused vacation	45.899	11.475	41.592	10.398
IFRS 9 provision	291	73	-	-
Leasing transactions	(1.598)	(399)	(10.171)	(2.543)
Inventories	(382.215)	(95.554)	(37.902)	(9.476)
Other	9.463	2.365	3.601	902
Total deferred tax assets	8.426.224	2.106.555	9.142.562	2.318.932
Total deferred tax liabilities	-	-	-	(32.679)
Deferred tax provision		(97.551)		(96.448)
Total deferred tax assets, net		2.009.004		2.189.805

Movement of deferred tax is as follows:

	2024	2023
January 1	2.189.805	(719.892)
Deferred tax recognized in profit or loss	(353.851)	2.891.821
Deferred tax recognized in equity	40.120	17.876
Total	1.876.074	2.189.805
Subsidiary disposal effect (Note 28)	132.930	-
December 31	2.009.004	2.189.805

The reconciliation of the tax is as follows:

	2024	2023
Profit/(loss) before tax	(297.808)	(415.594)
Effective tax rate	%25	%25
Tax calculated using effective tax rate	74.452	103.899
Non-taxable inflation adjustments	(2.535.108)	(3.280.926)
Effect of non-deductible expenses	(331.722)	(392.403)
Additional tax within the scope of Law No. 7440	-	(186.954)
Ertelenmiş vergiye konu edilmeyen farkların etkisi	(136.654)	(164.914)
Financial losses on not subject to tax	18.787	36.907
Effect of investment incentive allowance	-	53.436
Tax rate change impact	-	483.545
Exemptions and discounts (*)	663.721	1.249.318
Effect of indexing legal accounts (**)	1.799.790	3.342.859
Other income / (expense)	(24.393)	8.486
Current tax expense	(471.127)	1.253.253

(*) 475,238 thousand TL of the exceptions and discounts are related to the income from the funds, 166,716 thousand TL is from Currency-protected deposits, 7,522 thousand TL is from donations and aids and the rest is from other exemptions.

(**) It consists of the deferred tax effect of the temporary differences created by the adjustments made regarding inflation accounting in accordance with the circular numbered 32415 (2nd Duplicate) dated December 30, 2023 of the Tax Procedure Law.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

30. Earnings per share

Earnings per share is calculated by dividing the current year net profit of the parent company by the weighted average number of shares traded throughout the year. Companies in Türkiye have right to increase its capital through the distribution of bonus shares to be met from the re-valuation fund or accumulated profits. During the calculation of earnings per share, these increases are accepted as shares distributed as dividends. Dividend distributions added to the capital are also evaluated in the same way. Therefore, while calculating the average number of shares, it is assumed that such shares are in circulation throughout the year. For this reason, the weighted average of the number of shares used in calculating the earnings per share is determined by considering the retroactive effects.

The earnings per share of the Group as of December 31, 2024 and 2023 are as follows:

	January 1 – December 31, 2024	January 1 – December 31, 2023
Net profit / loss attributable to the owners of the Group Weighted average number of share certificates (*)	(997.460) 25.971.875.975	258.997 25.974.666.171
Earnings per 100 shares	(0,384)	0,100
Total comprehensive income attributable to the owners of the Group	(980.082)	288.777
Earnings per 100 shares from total comprehensive income	(0,377)	0,111

(*) If the number of ordinary or potential ordinary shares outstanding increases as a result of capitalization, bonus issue or share split, or decreases as a result of a share merger, the calculation of basic and diluted earnings per share for all periods presented is adjusted retrospectively. If these changes occur after the reporting period but before the financial statements are approved for issue, the calculations per share in the financial statements of the current period and prior periods presented are based on the number of new shares outstanding. It is disclosed to the public that the calculations per share reflect the changes in the number of shares. In addition, for all periods presented, basic and diluted earnings per share figures are adjusted for the effects of retrospectively corrected errors and changes in accounting policies. The average number of shares in the current period was determined by calculating on a daily basis according to the repurchased shares.

31. Related party disclosures

The other trade payables and other receivables of the Group consist of the payables and receivables given and received in order to meet the financing needs of the Group and its related parties during the year. Other payables and other receivables do not have a certain maturity, and the Group accrues interest on the related payables and receivables at the end of the period, using the current interest rate determined monthly, taking into account the evaluations made by the Group management and the developments in the markets. In this context, the current interest for December 2024 was applied as %55,56 per year (December 31, 2023: 52,07%).

Transactions with related parties are classified according to the following groups and include all related party disclosures in this note:

(1) Main shareholders
(2) Subsidiaries of other company of the main shareholders
(3) Other

The details of the transactions between the Group and other related parties are explained as below;

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

31. Related party disclosures (continued)

a) Related party balances

Long term receivables of the Group from related parties as of December 31, 2024 and December 31, 2023 are as follows:

	December 31, 2024	December 31, 2023
Koza İpek Holding A.Ş. (1) (*) Other (3)	349.411 4.071	1.120.186 2.547
Total	353.482	1.122.733

(*) The majority of the related amount is related to the sale of investment properties to Koza-İpek Holding A.Ş.

Other payables of the Group to related parties as of December 31, 2024 and December 31, 2023 are as follows:

	December 31, 2024	December 31, 2023
Koza İpek Holding A.Ş. (1)	102.608	56.790
Koza İpek Sigorta	10.129	1.214
Other (3)	1.372	3.127
Total	114.109	61.131

b) Transactions with related parties

The purchases of the Group from related parties between January 1 – December 31, 2024 and 2023 are as follows;

	January 1 - December 31, 2024		January 1 – December 31, 2023
	Interest	Other	Interest	Other
Koza İpek Holding A.Ş. (1) (**) Other	- -	1.440.800 16.945	39.034 -	146.199 -
Total	-	1.457.745	39.034	146.199

Sales of the Group to related parties between January 1 – December 31, 2024 and 2023 are as follows;

	January 1 - December 31, 2024		January 1 – December 31, 2023
	Interest	Other	Interest	Other
Koza İpek Holding A.Ş. (1) T.C. Ziraat Bankası A.Ş. (3) (*) Other (3)	734.362 - 365	4.838 2.625.950 2.250	164.925 - -	1.758.555 - 1.428
Total	734.727	2.633.038	164.925	1.759.983

(*) The Group sells its dore bars of gold to T.C. Ziraat Bankası A.Ş. on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights.

(**) A significant portion of these transactions relate to sales of investment properties.

c) Compensations provided to key management; The Group's key management consist of the general manager and assistant general managers. Compensations provided to senior management include benefits such as wages and bonuses. Total amount of wages and similar benefits paid to key management between January 1 – December 31, 2024 is amounting to TL 79,200 thousand. The entire amount consists of the wages. (January 1 – December 31, 2023: TL 49,600 thousand)

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

32. Nature and level of risks arising from financial instruments

The Group's main financial instruments consist of cash, short-term deposits, currency protected deposits and funds. The main purpose of financial instruments is to finance the activities of the Group. Apart from these, the Group has financial instruments such as trade receivables and payables that arise as a result of its activities.

The Group is exposed to market risk, which consists of currency, cash flow and interest rate risks, capital risk, credit risk and liquidity risk, due to operations. Risk management policy is to focus on unexpected changes in the financial markets.

The management policy of financial risks should be made by the Group's senior management and commercial and financial affairs department in line with the policies and strategies approved by the Board of Directors. The Board of Directors should prepare general principles and policies for the management of currency, interest and capital risks, and closely monitor financial and operational risks (especially arising from fluctuations in gold prices). The Group does not have an Early Risk Detection Committee.

The purpose that the Group should set to manage financial risks can be summarized as follows:

Ensuring the continuity of the cash flow obtained from the activities and main assets of the Group, taking into account the exchange rate and interest risks,
Keeping a sufficient amount of credit resources available to be used effectively and efficiently under the most appropriate conditions in terms of type and maturity,
Keeping the risks arising from the counterparty at a minimum level and following them effectively.

The main risks arising from the financial instruments of the Group are interest rate risk, foreign currency risk, credit risk and liquidity risk. The policies of the management regarding to manage these risks are summarized below.

a) Credit risk:

The risk of financial loss of the Group due to the failure of one of the parties to the financial instrument to fulfill its contractual obligation is defined as credit risk. Financial instruments of the Group that may cause a significant concentration of credit risk mainly consist of cash and cash equivalents and trade receivables. The maximum credit risk that the Group may be exposed to is up to the amounts reflected in the financial statements.

The Group has cash and cash equivalents in various financial institutions.

The Group sells its dore bars of gold to a domestic bank on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights, and silver to a domestic refinery again on consignment. Due to the fact that the sales are made on demand and the customer is corporate, the Group considers that there is no significant risk of receivables.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

32. Nature and level of risks arising from financial instruments (continued)

a) Credit risk (continued)

The analysis of the Group's credit risk as of December 31, 2024 and December 31, 2023 are as follows;

	Trade		Other		Cash and cash
		receivables receivables		equivalents
	Related	Third	Related	December	Deposits in
December 31, 2024	party	party	party	31, 2024	banks
Maximum credit risk exposure as of the reporting
date
(A+B+C+D+E) *	-	86.334	353.482	10.114	1.013.492
Portion of the maximum risk that is guaranteed with a
collateral, etc	-	-	-	-	-
A. Net book value of financial assets that are not
overdue or not impaired	-	86.334	353.482	10.114	1.013.492
B. The book value of financial assets whose conditions
have been renegotiated or that would be deemed
overdue or impaired	-	-	-	-	-
C. Net book value of assets that are overdue but not
impaired	-	-	-	-	-
D. Net book values of impaired assets	-	-	-	-	-
Overdue (gross book value)	-	72.927	-	-	-
Impairment (-)	-	(72.927)	-	-	-
The part of net value under
guarantee with collateral, etc	-	-	-	-	-
Not due (gross book value)	-	-	-	-	-
Impairment (-)	-	-	-	-	-
The part of net value under
guarantee with collateral, etc	-	-	-	-	-
E. Off-balance sheet items with credit risk	-	-	-	-	-

	Trade receivables			Other receivables	Cash and cash equivalents
	Related	Third	Related	December 31,	Deposits in
December 31, 2023	party	party	party	2023	banks
Maximum credit risk exposure as of the reporting date
(A+B+C+D+E) *	-	121.119	1.122.733	227.844	1.544.682
Portion of the maximum risk that is guaranteed with a
collateral, etc	-	-	-	-	-
A. Net book value of financial assets that are not overdue
or not impaired	-	121.119	1.122.733	227.844	1.544.682
B. The book value of financial assets whose conditions
have been renegotiated or that would be deemed overdue
or impaired	-	-	-	-	-
C. Net book value of assets that are overdue but not
impaired	-	-	-	-	-
D. Net book values of impaired assets	-	-	-	-	-
Overdue (gross book value)	-	159.154	-	-	-
Impairment (-)	-	(159.154)	-	-	-
The part of net value under
guarantee with collateral, etc	-	-	-	-	-
Not due (gross book value)	-	-	-	-	-
Impairment (-)	-	-	-	-	-
The part of net value under
guarantee with collateral, etc	-	-	-	-	-
E. Off-balance sheet items with credit risk	-	-	-	-	-

(*) In determining the amount, factors that increase credit reliability, such as guarantees received, have not been taken into account.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

32. Nature and level of risks arising from financial instruments (continued)

b) Market risk

Due to operations, the Group is exposed to financial risks related to changes in exchange rates and interest rates. Market risks encountered by the Group are measured on the basis of sensitivity analysis. In the current year, there isn't any change in the market risk that the Group is exposed to, or the method of handling the encountered risks or the method used to measure these risks, compared to the previous year. Transactions in foreign currency cause exchange risk. The Group controls this risk through a natural precaution that occurs by netting foreign currency assets and liabilities.

The distribution of the monetary and non-monetary assets and monetary and non-monetary liabilities of the Group in foreign currency as of the date of financial position is as follows:

	Foreign exchange
	position table TL equivalent
December 31, 2024	(Functional currency)	Usd	Euro	Gbp
Cash and cash equivalents	47.207	504	801	-
Other receivables	51.666	40	1.368	-
Current assets	98.873	544	2.169	-
Total assets	98.873	544	2.169	-
Trade payables	(6.139)	(174)	-	-
Other payables	207.872	5.892	-	-
Current liabilities	201.733	5.718	-	-
Total liabilities	201.733	5.718	-	-
Net foreign currency position	(102.860)	(5.174)	2.169	-

As of December 31, 2024, the Group has foreign currency protected deposits amounting to thousand TL 2,584,743.

		Foreign exchange
	Foreign exchange	position table
	position table TL	TL equivalent
	equivalent	(functionalcurrency)
December 31, 2023	(Functionalcurrency)	(Historical values)	Usd	Euro	Gbp
Cash and cash equivalents	14.210	9.842	122	185	6
Other receivables	4.915	3.404	37	9	54
Current assets	19.125	13.246	159	194	60
Total assets	19.125	13.246	159	194	60
Trade payables	347.968	241.011	2.204	3.276	1.854
Other payables	233.381	161.645	5.491	-	-
Current liabilities	581.349	402.656	7.695	3.276	1.854
Total liabilities	581.349	402.656	7.695	3.276	1.854
Net foreign currency position	(562.224)	(389.410)	(7.536)	(3.082)	(1.794)

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

32. Nature and level of risks arising from financial instruments (continued)

b) Market risk (continued)

Sensitivity analysis;

The Group is exposed to currency risk mainly in US Dollars, Euro and GBP.

The table below shows the sensitivity of the Group to 10% increase and decrease in US Dollar, Euro and GBP exchange rates. The sensitivity analysis includes only open monetary items in foreign currency at the end of the period and shows the effects of the 10% exchange rate change at the end of the year. Positive value indicates an increase in profit / loss and other equity items.

December 31, 2024		Profit / Loss		Equity
	Appreciation of	Depreciation of	Appreciation of	Appreciation of
	foreign	foreign	foreign	foreign
	currency	currency	currency	currency
	In case of 10% appreciation / depreciation of USD against TL
1- USD net asset/liability 2- Portion protected from USD risk (-)	(18.254) -	18.254 -	(18.254) -	18.254 -
3- USD net effect (1+2)	(18.254)	18.254	(18.254)	18.254
	In case of 10% appreciation / depreciation of EUR against TL
4- EUR net asset/liability 5- Portion protected from EUR risk (-)	7.968 -	(7.968) -	7.968 -	(7.968) -
6-EUR net effect (4+5)	7.968	(7.968)	7.968	(7.968)
	In case of 10% appreciation / depreciation of GBP against TL
7-GBP net asset/liability 8- Portion protected from GBP risk (-)	- -	- -	- -	- -
9-GBP Net effect (7+8)	-	-	-	-
Total (3+6+9)	(10.286)	10.286	(10.286)	10.286

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

32. Nature and level of risks arising from financial instruments (continued)

b) Market risk (continued)

December 31, 2023	Profit / Loss		Equity
	Appreciation of	Depreciation of	Appreciation of	Appreciation of
	foreign	foreign	foreign	foreign
	currency	currency	currency	currency
	In case of 10% appreciation / depreciation of USD against TL
1- USD net asset/liability 2- Portion protected from USD risk (-)	(22.185) -	22.185 -	(22.185) -	22.185 -
3- USD net effect (1+2)	(22.185)	22.185	(22.185)	22.185
	In case of 10% appreciation / depreciation of EUR against TL
4- EUR net asset/liability 5- Portion protected from EUR risk (-)	(10.039) -	10.039 -	(10.039) -	10.039 -
6-EUR net effect (4+5)	(10.039)	10.039	(10.039)	10.039
	In case of 10% appreciation / depreciation of GBP against TL
7-GBP net asset/liability 8- Portion protected from GBP risk (-)	(6.717) -	6.717 -	(6.717) -	6.717 -
9-GBP Net effect (7+8)	(6.717)	6.717	(6.717)	6.717
Total (3+6+9)	(38.941)	38.941	(38.941)	38.941

Price risk

The most important operational risk of the Group is the gold price risk.

The operational profitability of the Group and the cash flows it provides from its operations are affected by the changes in gold and silver prices in the markets. If the gold prices decrease comparing under the cash-based operational production costs of the Group and continue in this way for a certain period, the operational profitability of the Group may decrease.

The Group does not expect any change in gold prices to drop significantly in the near future. Accordingly, the Group has not used any derivative instruments to hedge the risk of falling gold prices and has not made a similar agreement.

c) Capital risk management:

While managing the capital, the Group's objectives are to maintain the most appropriate capital structure in order to benefit its shareholders and reduce the cost of capital and to ensure the continuity of the Group's activities.

In order to return capital to shareholders, the Group could maintain or reorganize its capital structure, issue new shares, and sell assets to reduce borrowing.

The Group uses the net financial debt / equity ratio to monitor the capital structure. Net debt is calculated by deducting cash and cash equivalents from the total debt amount (including loans and other payables to related parties as shown in the balance sheet). Group management should follow the net debt / equity ratio regularly and update it when necessary. The Group does not have an Early Detection of Risk Committee.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

33. Financial instruments (fair value disclosures and disclosures within the framework of hedge accounting)

Fair value of the financial instruments

The Group classifies the fair value measurements of the financial instruments measured at their fair values in the financial statements according to the source of the inputs of each financial instrument class, using a three-level hierarchy as follows.

First level: Quotation prices (unadjusted prices) in active markets for identical assets and liabilities that the entity can reach at the measurement date.
Second level: These are directly or indirectly observable inputs for the asset or liability and other than quoted prices within Level 1.
Third level: These are unobservable inputs to the asset or liability.

Level classifications of financial assets measured at their fair values:

December 31, 2024	Level 1	Level 2	Level 3	Total
Assets:
Financial investments	6.844.255	2.584.743	-	9.428.998

December 31, 2023	Level 1	Level 2	Level 3	Total
Assets:
Financial investments	10.779.808	2.035.543	-	12.815.351

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

34. Interests in other entitites

The financial information of the subsidiary Koza Altın İşletmeleri A.Ş. is summarized below. The summarized statements are the balances before the consolidation eliminations.

The financial statements of the Company as of December 31, 2024 and 2023 are as follows;

	December 31, 2024	December 31, 2023
Current assets	14.290.658	16.525.052
Non-current assets	18.120.808	16.809.982
Current liabilities	1.756.168	2.648.704
Non-current liabilities	1.083.518	916.058
Equity	29.571.780	29.770.272
Non-controlling interests (%)	55,42%	55,42%
Non-controlling interests	16.388.680	16.498.685

The income statement of the Company as of December 31, 2024 and 2023 are as follows;

	December 31, 2024	December 31, 2023
Revenue	8.735.920	11.705.057
Cost of sales (-)	(5.749.802)	(6.748.060)
Gross profit	2.986.118	4.956.997

Research and development expenses (-) Marketing, sales and distribution expenses (-)	(1.054.386) (178.720)	(857.694) (160.747)
General administrative expenses (-)	(1.129.062)	(1.363.195)
Other operating income	210.451	188.586
Other operating expenses (-)	(838.207)	(1.910.678)
Operating profit	(3.806)	853.269
Income from investing activities Expense from investing activities	5.763.977 (161.289)	9.950.891 -
Impairment gains (losses) and reversals of impairment losses determined in accordance with TFRS 9	-	77
Operating profit before financial income	5.598.882	10.804.237
Financial expenses (-) Monetary loss (-)	(5.425) (4.645.887)	(67.808) (10.544.265)
Profit / (loss) before tax from continued operations	947.570	192.164
Continuing activities tax income / (loss) Deferred tax income / (expense) (-)	(45.023) (298.557)	(1.354.852) 1.748.996
Net profit / (loss) for the period	603.990	586.308

The cash flows of the Company as of December 31, 2024 and 2023 are as follows;

	December 31, 2024	December 31, 2023
Cash flows from operating activities	3.121.453	(1.630.888)
Cash flows from investing activities	(2.094.385)	5.887.700
Net cash from financing activities	(1.085.613)	(3.917.019)
Cash and Cash equivalents at the beginning of the year	373.521	335.522
Monetary loss on cash and cash equivalents	(208.107)	(301.794)
Cash and cash equivalents at the end of the year	106.869	373.521

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

35. Subsequent events after balance sheet date

i- It was decided to change the trade name of the Group's subsidiary Koza Altın, from "Koza Altın İşletmeleri Anonim Şirketi" to "Türk Altın İşletmeleri Anonim Şirketi" by the decision of the Presidency of the Republic of Türkiye. After the permission of the relevant Public Institutions and the approval of the partners at the first general assembly to be held, it will be registered and announced in the Trade Registry Gazette. It has been decided to apply to the Capital Markets Board and the Ministry of Trade in order to obtain the necessary permissions and approvals for the amendment of Article 2 of the Company's Articles of Association titled "Company Name", and to submit the matter to the approval of the shareholders at the first general assembly meeting to be held after obtaining the necessary permissions.
ii- With the KAP statement dated July 8, 2024; It was announced that in the file numbered 2023/858 E. of Eskişehir 1st Administrative Court, which was filed with the request for the cancellation of the positive EIA decision given regarding Kaymaz Gold Mine 3rd MADT (Mine Waste Storage Facility) Project, it was evaluated that there was no compliance with the law in the EIA Positive Decision with the decision numbered 2023/858 E., 2024/651 K. of Eskişehir 1st Administrative Court and that the transaction in question was ruled to be canceled, with the possibility of appeal to the Council of State. The company appealed against the relevant decision and as a result of the appeal trial, the 4th Chamber of the Council of State, with its decision numbered 2024/2766 E., 2024/7086 K., ruled that; "It is seen that the EIA report includes the possible environmental impacts of the project in question, both during the construction and operation periods, and the measures to be taken to eliminate the negative impacts. Since there is no unlawfulness in the transaction in question, there is no legal error in the decision of the Administrative Court in question regarding the cancellation of the transaction in question." Therefore, it was decided in favor of the applicant that the appeal request be accepted, the decision of the Eskişehir 1st Administrative Court dated 13 June 2024 and numbered 2023/858 E., 2024/651 K. be reversed, and the case be dismissed in accordance with Article 20/A-2(i) of the Administrative Procedure Law No. 2577. In line with the decisions of the Council of State; the company continues its mining activities in accordance with the relevant legislation within the scope of the "Kaymaz Gold and Silver Mine 3rd Capacity Increase and additional mine waste storage facility project. Within the scope of the project in question; Kaymaz gold mine 3rd Mine Waste storage facility will be completed and put into operation after the necessary permits are obtained.
iii- Regarding the Çukuralan Gold Mine Crushing-Screening Facility Project planned to be built by the company, the Ministry of Environment, Urbanization and Climate Change has given a "Positive EIA" decision for the EIA process and final EIA report carried out in accordance with the legislation. Within the scope of this project, which is indirectly linked to production activities; in the underground cut-andfill ore production system implemented at world standards in the Çukuralan enterprise, the aggregate/gravel material, which is a component of the backfill material, is supplied from outside and brought to the enterprise by transportation, while when the crushing-screening facility, which will only carry out physical processes, becomes operational, the waste material coming out of the underground production of the enterprise will be crushed, sized and produced within the enterprise. With this project, the relevant material will be supplied by in-house resources, environmental and social impacts will be reduced by reducing processes such as transportation, storage and loading, waste material will be reused on-site, rehabilitation costs will be reduced and the sustainability of mining activities in the facility will be increased.
iv- The Board of Directors of the Company has decided to apply to the Capital Markets Board and the Ministry of Trade in order to obtain the necessary permissions and approvals for the amendment of Article 1 titled "Establishment" and Article 2 titled "Company Name" of the Company's Articles of Association, and to submit the necessary permissions to the approval of the shareholders at the first general assembly meeting to be held after obtaining the necessary permissions, and it has been decided by the Capital Markets Board's favorable opinion would be welcomed.

Notes to the consolidated financial statements for the year ended December 31, 2024

(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)

36. Fees for services received from independent auditor/independent audit firm

The Group's explanation regarding the fees for services rendered by independent audit firms, which is prepared by the KGK pursuant to the Board Decision published in the Official Gazette on March 30, 2021, and the preparation principles of which are based on the KGK letter dated August 19, 2021 are as follows:

	December 31, 2024	December 31, 2023
Independent audit fee for the reporting period	7.240	6.075
Total	7.240	6.075

37. Other matters that significantly affect the financial statements or are required to be disclosed for the financial statements to be clear, interpretable and understandable

The Group's consolidated financial statements for the years ended December 31, 2016, 2017, 2018, 2019, 2020, 2021, 2022, and 2023 have been approved by the Board of Directors with the board decisions dated April 24, 2018, April 30, 2018, February 28, 2019, February 27, 2020, March 1, 2021, March 1, 2022, March 1, 2023, and May 9, 2024, respectively, and published by excluding the possible cumulative effects of the works and transactions belonging to the previous financial periods, whose judgment process continues, in accordance with the provisions of Article 401/4 of the Turkish Commercial Code No. 6102 ("TCC"). The audited consolidated financial statements for the year ended December 31, 2015 were not approved by the Board of Directors in accordance with the provisions of Article 401/4 of the TCC. Subsequently, with the decision of the Board of Directors of the Group, the phrase "excluding the possible cumulative effects of the transactions and operations from previous financial periods on the statements in accordance with the provisions of Article 401/4 of the Turkish Commercial Code No. 6102 ("TCC")" has been removed from the decisions regarding the approval of the consolidated financial statements for December 31, 2023. The ordinary general assembly meetings of the Company for the years 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, and 2023, as explained in detail in Note 9, could not be carried out due to following the decision of the Ankara 5th Criminal Court of Peace dated October 26, 2015, the management of the Group was transferred to the trustee committee, and subsequently, with the Law No. 674 published on September 1, 2016, regarding certain regulations within the scope of the state of emergency, all powers of the Group were transferred to the Savings Deposit Insurance Fund ("SDIF") on September 22, 2016. With the decision of the SDIF Fund Board dated September 12, 2024, numbered 2024/406, and the decision of the Board of Directors dated September 12, 2024, the transfer of the Group's shares belonging to the treasury to the Türkiye Wealth Fund has been registered in the share register. The transfer of the Group's shares belonging to the treasury to the Türkiye Wealth Fund was registered on October 18, 2024, and published in the Trade Registry Gazette dated October 22, 2024, numbered 11191. As of the report date, the ordinary general assembly meetings for the relevant years and the financial statements for the relevant periods could not be submitted for approval to the General Assembly.

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İPEK DOĞAL ENERJİ KAYNAKLARI ARAŞTIRMA VE ÜRETİM A.Ş.

CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024 TOGETHER WITH INDEPENDENT AUDITOR'S REPORT

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Notes to the consolidated financial statements for the year ended December 31, 2024

Consolidated statement of financial position as of December 31, 2024

Consolidated statement of profit or loss and other comprehensive income for the year ended December 31, 2024

Consolidated statement of changes in equity for the year ended December 31, 2024

Consolidated statement of cash flows for the year ended December 31, 2024

1. Group's organization and nature of the operations

Notes to the consolidated financial statements for the year ended December 31, 2024

1. Group's organization and nature of the operations (continued)

The registered address of the Company is below:

Approval of consolidated financial statements

2. Basis of presentation of consolidated financial statements

2.1 Basis of presentation

Financial reporting standards

Foreign currency

Functional and reporting currency

Foreign currency transactions and balances

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.1 Basis of presentation (continued)

Adjustment of Financial Statements in High Inflation Periods

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.1 Basis of presentation (continued)

Adjustment of Financial Statements in High Inflation Periods (continued)

Going concern

Declaration of conformity to TFRS

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.2 Consolidation principles

Subsidiaries

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.2 Consolidation principles (continued)

December 31, 2024

December 31, 2023

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.3 Accounting policies, changes in accounting estimates and errors

2.4 The new standards, amendments and interpretations

i) The new standards, amendments and interpretations which are effective as of January 1, 2024 are as follows:

ii) Standards issued but not yet effective and not early adopted

iii) The amendments which are effective immediately upon issuance

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.4 The new standards, amendments and interpretations (continued)

iv) The new amendments that are issued by the International Accounting Standards Board (IASB) but not issued by Public Oversight Authority (POA)

2.5 Summary of significant accounting policies

Cash and cash equivalents

Trade receivables

Inventories

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Related parties

Leases

a) Company – as a lessee

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Leases (continued)

i. Right-of-use assets

ii. Lease liabilities

Notes to the consolidated financial statements for the year ended December 31, 2024

2. Basis of presentation of consolidated financial statements (continued)

2.5. Summary of significant accounting policies (continued)

Leases (continued)

Significant judgement in determining the lease term of contracts with renewal options

Practical expedients

Variable lease payments

b) Company – as a lessor