ELEMENT 25 LIMITED — Interim / Quarterly Report 2026

Mar 12, 2026

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INTERIM REPORT

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2025

Element 25 Limited ABN 46 119 711 929 ASX E25 element25.com.au

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Principal Activities andReview of Operations	3
Directors' Report	4
Auditor’s Independence Declaration	13
Consolidated Statement of Comprehensive Income	14
Consolidated Statement of Financial Position	15
Consolidated Statement of Changes in Equity	16
Consolidated Statement of Cash Flows	17
Notes to the Consolidated Financial Statements	18
Directors' Declaration	24
Independent Auditor’s Report	25
Corporate Directory	27

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2025 ANNUAL REPORT | 3

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PRINCIPAL ACTIVITIES AND REVIEW OF OPERATIONS

Overview

Element 25 Limited ( Element 25 , E25 or Company ) ( ASX: E25 ; OTCQX: ELMTF ) operates the Butcherbird Manganese Project ( Butcherbird or Project ), 130km south of Newman in the Pilbara region of Western Australia, which hosts Australia’s largest onshore manganese resource with JORC resources of 274Mt of manganese ore[1] .

Element 25’s goal is to become an industry leading sustainable battery materials manufacturer, producing high quality manganese concentrate and battery grade High Purity Manganese Sulphate Monohydrate ( HPMSM ) products for traditional and new energy markets.

Having completed a Feasibility Study ( HPMSM FS ) for the project in April 2023[2] , Element 25 plans to construct a HPMSM facility in Louisiana – the first of its kind in the USA. The proposed HPMSM facility will use concentrate from Element 25’s mining and processing operations at Butcherbird as feedstock for the refining process.

The proposed HPMSM facility is supported by key offtake and funding commitments from General Motors LLC ( GM ) and Stellantis N.V. ( Stellantis )[3] . Additionally, Element 25 was awarded US$166 million (AU$268 million)[4] in grant funding for the project from the U.S. Department of Energy ( DoE ) in January 2025[5] to support the project.

Element 25 has also commenced works to upgrade its Butcherbird operations to 1.1Mtpa of manganese concentrate production[6] , targeting commercial production by Q1 CY2027 (the Butcherbird Expansion Project or BBX ). The expanded processing operation is based on an 18 year Reserve[7] .

Operational highlights for the first half of FY2026 included:

• AU$50 million secured senior debt facility from Northern Australia Infrastructure Facility ( NAIF )[8] .

• AU$10 million share placement completed to fund early works related to BBX, and for working capital.

• Detailed engineering design initiated for BBX with appointment of Perth-based Altris Engineering ( Altris ) as lead engineering consultant[9] .

• BBX Process improvement studies completed, targeting potential cost savings and execution flexibility options.

• Mining services contract tender approaching final selection; key processing equipment procured[10] .

1 E25 ASX Announcement dated 22 January 2025

2 E25 ASX Announcement dated 12 April 2023

3 E25 ASX Announcements dated 9 January 2023 and 26 June 2023

4 USD:AUD conversion rate 0.62. Reference: www.xe.com 5 E25 ASX Announcement 20 January 2025

6 E25 ASX Announcement date 22 January 2025

7 E25 ASX Announcement dated 22 January 2025

8 E25 ASX Announcement dated 17 June 2025

9 E25 ASX Announcement dated 22 October 2025

10 E25 ASX Announcement dated 25 November 2025

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 3

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DIRECTORS’ REPORT

Your Directors submit their financial report for the consolidated entity (the Group , the Company or Element 25 ) consisting of Element 25 Limited and its controlled entities for the half year ended 31 December 2025.

Directors

The names of Directors who held office during or since the end of the half-year are set out below.

Directors were in office for this entire period unless otherwise stated:

• John Ribbons Non-Executive Chair

• Justin Brown Managing Director

• Sam Lancuba Non-Executive Director

• Fanie Van Jaarsveld Non-Executive Director (resigned effective 1 January 2026)

Company Secretary

• Michael Jordon

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BUTCHERBIRD OPERATIONS

Safety

For the six months ending December 2025, Element 25 recorded 0 (nil) Lost Time Injuries ( LTI ) and 0 (nil) Medical Treatment Injuries ( MTI ).

Butcherbird Expansion Project (BBX)

Element 25 completed a Feasibility Study for its Butcherbird Expansion Project ( BBX ) in January 2025, which estimated a capital cost of AU$64.8 million with a pre-tax Net Present Value ( NPV ) of AU$561 million with a 96% pre-tax Internal Rate of Return ( IRR ), generating an average of AU$70.5 million per year cashflow over a mine life of more than 18 years[11] .

Butcherbird’s expansion will supply traditional steel markets and also underpin the long-term supply of manganese concentrate feedstock for Element 25’s planned battery grade, high purity manganese sulphate monohydrate (HPMSM) processing facility which it plans to build in Louisiana, USA.

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In September 2025, Element 25 completed a AU$10 million share placement[12] to fund detailed engineering works and long lead item procurement activities for BBX. The Placement followed the announcement in June 2025[13] of a AU$50 million senior debt facility secured from the Northern Australia Infrastructure Facility ( NAIF ). The Placement settled on 19 September 2025.

In October 2025, Element 25 announced the appointment of Perth-based Altris Engineering ( Altris ) to lead BBX and undertake all detailed engineering design for the project[14] . Altris is an engineering consultancy providing practical and innovative solutions to clients in the mineral processing sector.

Element 25 and Altris have implemented an Integrated Project Team ( IPT ) methodology, with Element 25 engineering personnel embedded and located with the Altris team to ensure collaboration and information sharing are maximised. Early process and cost improvement studies

11 E25 ASX Announcement dated 22 January 2025 12 E25 ASX Announcement dated 12 September 2025 13 E25 ASX Announcement dated 17 June 2025 14 E25 ASX Announcement dated 22 October 2025

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have commenced with benefits being identified relating to cost-saving and execution flexibility opportunities.

Altris has expanded its team in line with the ramp up of project resourcing requirements as the project advances towards commencement of construction. The IPT is focussed on refinement and further definition of the core engineering detail including trade-off studies, site layout, detailed cost range analysis and a review of pricing and quantities with the previous project cost estimate as the baseline.

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Commercial Contracts

Mining Services Contract

Element 25’s Procurement Team has materially advanced the tender process to secure a suitable mining services contractor to support expanded mining operations at Butcherbird. The team is evaluating proposals from participating contactors, based on key selection criteria including contractor experience, capability and value for money. Applicants have been short-listed and the tender assessment process continues.

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 6

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Crushing and Mineral Sizer Solutions

Element 25 selected mineral sizers from MMD as the preferred equipment for this application, and a procurement contract signed with MMD to supply both the primary and secondary sizer units along with critical spares and commitment for commissioning support and post-commissioning maintenance services.

Equipment delivery is scheduled to align with the overall project plan and will be closely monitored.

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Logwasher

The logwasher is a large-scale scrubbing unit with two counter-rotating paddle shafts that scrub the feed while an opposing water flow separates liberated fines discharging clean product at the upper outlet of an inclined trough. This is a key step on the process flowsheet for BBX, where the process aims to liberate the lump manganese product for the intercalated lateritic clay material.

Element 25 engaged KISA Gmbh to supply a logwasher unit with a nominal 600 t/h federate and max 11° gradient. The unit has been carefully selected for the proposed BBX use case. The

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logwasher has been manufactured and awaits transportation to the Project site in accordance with the current schedule.

Logistics

Element 25 maintains a close partnership with REGROUP, the logistics service provider which supported the Stage 1 operations at Butcherbird, providing road haulage services for manganese concentrate from the Butcherbird mine site.

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Element 25 is negotiating a road haulage agreement for the BBX Project with REGROUP to provide for increased volumes as well as more efficient material movement through revised equipment selection and scheduling and improved analytics as well as a broader review of contract terms.

As the largest cost of the proposed operation, both parties are working together to maximise efficiencies and reduce transportation costs, with identifying opportunities for continuous improvement being a key priority.

As per the Stage 1 Butcherbird operations, the Company will utilise the Utah Point common user facilities in Port Hedland to export manganese concentrate cargos, with adjustments to the logistics plan being developed to accommodate the larger volumes and optimise the overall transport costs.

Offtake

Discussions remain ongoing with a several key counterparties to finalise offtake for the increased production from BBX.

The manganese concentrate product produced at the Butcherbird Mine has a unique set of properties which make it attractive to smelters, particularly in the silico-manganese market. These attributes include a high silica content (>20%), low levels of deleterious contaminants such as phosphorous, heavy metals and arsenic, a suitable iron-manganese ratio and a physical

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 7

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competency which minimises fragmentation and fines generation which can be important for transport and in smelting operations.

The Company continues to refine the terms of the offtake under these negotiations and plans to finalise the preferred offtake partner and commercial terms as soon as practicable.

Core Operating Systems

The Core Operating and Business Intelligence Systems are key for the success of both the BBX Project and the long-term operations of the Butcherbird Manganese Mine.

Element 25’s procurement team is working with selected consultants to develop the solution design document and define the scope of work for the core systems and associated infrastructure, including its Enterprise Resource Planning ( ERP ) system.

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These systems will provide the foundation for Element 25’s vision to deliver a highly granular digital business intelligence system with detailed visibility on all operational elements form pit-to-port to support ongoing efficiency improvements, optimise product quality and reduce costs.

As a long-term operation, it is critical that the Butcherbird Mine utilises a future-facing technology strategy to maintain its competitive edge as the world moves towards the expanded adoption of realtime data driven automated decision making to maximise performance across all key metrics including safety, performance, and profitability.

Permitting and Approvals

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The Element 25 Butcherbird Project is fully approved under the Western Australian Regulatory Framework to construct the 1.1Mpta processing plant[15] .

The Company has maintained all regulatory approvals from the Stage 1 pilot plant operations through ongoing compliance and regular statutory reporting. The environmental licence, water abstraction licence, heritage clearances, native title and pastoral agreements are in place and continue to remain applicable.

An established Tailings Storage Facility ( TSF ) is fully approved to support the storage requirements of the expansion for the first six years of operations and subsequent staged lifts and engineering designs have been completed to sustain the current Reserve life of the project.

To reflect the expanded processing plant footprint and increase in throughput, the Mining Proposal and Mine Closure Plan were updated and approved in December 2024 by the Department of Mines, Petroleum and Exploration ( DMPE , formerly DMIRS )[16] . The Works Approval for the construction of

15 E25 ASX Announcement dated 12 March 2025 16 E25 ASX Announcement dated 13 January 2025

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the expanded processing facility project was approved by the WA Department of Environment and Regulation ( DWER ) in March 2025.

Project Schedule

The schedule for BBX is continually updated to accommodate commercial contracting, supplier engagement, completed works, and alignment with the project plan, including activities that are forecasted, planned, commenced and achieved (Figure 1).

The work breakdown structure ( WBS ) is comprehensive, with significant interdependencies among tasks and activities. The team remains dedicated to maintaining project timelines and budgetary objectives.

The schedule remains subject to a number of key dependencies including achieving project financial close, completion of detailed engineering, procurement of key equipment and finalising contracts in accordance with the planned key dates and continues to be monitored as BBX progresses.

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Figure 1: Butcherbird Expansion Project Timeline Summary

HPMSM FACILITY DEVELOPMENT, LOUISIANA

Element 25 plans to build and operate a first-of-its-kind, environmentally sustainable refining facility in the Baton Rouge area, Louisiana, to produce HPMSM, a critical raw material in lithium-ion batteries. The planned 230,000 square-foot (~21,000m[2 ] ) HPMSM refining facility that will employ an innovative process to produce approximately 71,650 tons (65,000 metric tonnes) of HPMSM annually from the first processing train using manganese ore sourced from its Butcherbird manganese mine.

It will be one of the first commercial facilities to produce HPMSM in the U.S., reducing current dependency on Chinese sources. The Facility will create hundreds of highly skilled construction and permanent jobs for Louisianans.

In January 2025, Element 25 was formally awarded a US$166 million grant from the U.S. Department of Energy ( DoE ) under its Manufacturing and Energy Supply Chains ( MESC ) Battery Materials Processing Grant Program. This landmark funding will support the construction of E25’s

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 9

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proposed HPMSM facility in Louisiana, USA, which will bring domestic production of a key critical battery raw material to the USA.

The grant forms a key component of Element 25’s financing strategy, in addition to commitments by offtake partners GM and Stellantis, and its execution team will now work to finalise the project schedule, subject to grant finalisation.

LAKE JOHNSON PROJECT, WA

During the period, Element 25 continued exploration activities at its Lake Johnston Project, 500km east of Perth in Western Australia, to follow up on targets defined in an earlier study.

On-ground investigations by Element 25 personnel confirmed pegmatite occurrences within the project area. The project remains prospective for gold and lithium and exploration is continuing.

BUSINESS DEVELOPMENT

Proposed Japanese HPMSM Facility

In September 2024, Element 25 signed a non-binding Memorandum of Understanding with Nissan Chemical Corporation and NC Tokyo Bay Corporation to complete a pre-feasibility study into a battery grade HPMSM facility to be located at the existing NCTB site in Chiba prefecture, Japan[17] .

The potential for a HPMSM facility to be built using the unique Element 25 flowsheet supplied with Butcherbird manganese concentrate fits well with Element 25’s strategy of building multiple refineries to serve various global markets.

As announced in April 2025, the parties completed a high-level scoping study, which examined a range of factors, including permitting, logistics, reagent supply, labour, capital and operating costs. The Study confirmed the potential feasibility of the Facility and identified no fatal flaws, and the parties have agreed to proceed to a more detailed investigation[18] .

Site investigation activities are ongoing and the parties have a targeted final investment decision date of June 2026.

CORPORATE

Director Retirement

In December 2025, the Company announced the retirement of Rudolph (Fanie) van Jaarsveld from its Board of Directors and his position as a Non-Executive Director, effective 1 January 2026[19] .

Fanie will remain as a consultant to the Company and will continue to bring his valuable operational experience to the delivery of the Butcherbird Expansion Project as required.

17 E25 ASX Announcement dated 3 September 2024

18 E25 ASX Announcement dated 2 April 2025 19 E25 ASX Announcement dated 19 December 2025

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 10

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Subscription Agreement

As part of its ongoing capital management strategy, subsequent to year-end, the Company signed an At-the-Market Subscription Agreement ( ATM ) with Acuity Capital Investment Management Pty Ltd ( Acuity Capital ) to provide Element 25 with up to $30 million of standby equity capital over the coming 36-month period.

This standby facility may be used to fund the expansion of the Butcherbird Project, working capital and to fund Company growth.

Under the ATM, Element 25 has full discretion as to whether or not to utilise the ATM, the maximum number of shares to be issued, the minimum issue price of shares and the timing of each subscription (if any). There are no requirements on Element 25 to utilise the ATM and the Company may terminate the ATM at any time, without cost or penalty.

Acuity Capital and the ATM do not place any restrictions on Element 25 raising capital through other methods. If Element 25 does decide to utilise the ATM, it is able to set a floor price (at its sole discretion) and the final issue price will be calculated as the greater of that floor price set by Element 25 and up to a 10% discount to a Volume Weighted Average Price ( VWAP ) over a period of Element 25's choosing (again, at the sole discretion of Element 25).

As security for the ATM, the Company has an existing placement 9,500,000 fully paid ordinary E25 shares to Acuity Capital at nil cash consideration. Upon termination or maturity of the ATM, Element 25 may buy back (and cancel) the shares placed as security for nil cash consideration (subject to shareholder approval[20] ).

RESULTS

During the half year ended 31 December 2025, the Company had total of $102,207 other income (2024: $94,170). There was no revenue generated in respect of sales of Manganese Ore due to Butcherbird Expansion.

During the period the Company recognised cost of sales of $410,430 (2024: $1,394,503) in respect to the costs incurred for care and maintenance across critical operational areas including mining, processing and distribution.

During the period, the Company incurred general and administration expenditure amounting to $1,577,028 (2024: $1,128,529), including corporate administration expense of $1,379,633 (2024:$1,055,118), depreciation of Property, Plant and Equipment of $5,890 (2024: $57,902),depreciation of right of use asset of $12,916 (2024: $14,303), and $178,589 (2024: $1,206) on loss of foreign exchange, loss of sales of assets, share-based payment expense, and fair value loss on remeasurement of financial assets. This has resulted in an operating loss after income tax for the half year ended 31 December 2025 of $1,900,733 (2024: $2,435,181).

20 E25 ASX Announcement dated 27 January 2026

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The Group had a cash balance of $7,772,915 as at 31 December 2025.

Basic and diluted loss per share (cents)	2025 2024 $ $
	(0.71) (1.10)

SIGNIFICANT EVENTS AFTER THE BALANCE DATE

No other matters or circumstances, besides those disclosed at note 14, have arisen since the end of the period which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods.

DIVIDENDS

No dividends were paid or declared during the half year. No recommendation for payment of dividends has been made.

AUDITORS INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 12

Signed in accordance with a resolution of the Directors.

Justin Brown Managing Director Perth, 12 March 2026

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 12

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Auditor’s Independence Declaration

As lead auditor of Element 25 Limited's financial report for the half-year ended 31 December 2025, I declare that, to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review of the financial report; and

• b) no contraventions of any applicable code of professional conduct in relation to the review of the financial report.

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Adam Thompson Partner PricewaterhouseCoopers

Perth 12 March 2026

PricewaterhouseCoopers, ABN 52 780 433 757 Brookfield Place, Level 15, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840

T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

pwc.com.au

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2025

Note Revenue 3 Cost of sales 4 GROSS PROFIT Other income General and administration expenses 5 Finance expense LOSS BEFORE INCOME TAX INCOME TAX EXPENSE LOSS FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY OTHER COMPREHENSIVE INCOME Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations Other comprehensive loss for the year, net of tax TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY LOSS PER SHARE FOR LOSS ATTRIBUTABLE TO THE ORDINARY EQUITY HOLDERS OF THE COMPANY Basic and diluted loss per share (cents per share)	31 Dec 2025 31 Dec 2024 $ $
	- 3,494 (410,430) (1,394,503)
	(410,430) (1,391,009)
	102,207 99,407 (1,577,028) (1,128,529) (15,482) (15,050)
	(1,900,733) (2,435,181) - -
	(1,900,733) (2,435,181)
	99 1,166
	99 1,166
	(1,900,634) (2,434,015)
	(0.71) (1.10)

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025

AS AT 31 DECEMBER 2025
Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventory 6 Financial assets at fair value through profit or loss TOTAL CURRENT ASSETS NON-CURRENT ASSETS Restricted cash Property, plant and equipment 7 Deferred exploration and evaluation expenditure Right of use asset TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 8 Provisions 9 Lease Liability TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Lease Liability Provisions 9 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 10 Reserves Accumulated losses TOTAL EQUITY	31 Dec 2025 30 Jun 2025 $ $
	7,772,915 2,162,007 304,401 486,840 6,877,734 6,877,734 280,000 338,740
	15,235,050 9,865,321
	528,560 528,560 52,036,719 49,237,837 2,542,254 2,329,506 173,635 272,585
	55,281,168 52,368,488
	70,516,218 62,233,809
	1,960,622 1,578,679 3,593,369 3,610,799 124,369 175,970
	5,678,360 5,365,448
	62,365 106,403 1,690,582 1,690,582
	1,752,947 1,796,985
	7,431,307 7,162,433
	63,084,911 55,071,376
	147,718,937 138,008,278 7,827,991 7,624,382 (92,462,017) (90,561,284)
	63,084,911 55,071,376

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2025

BALANCE AT 1 JULY 2024 Loss for the period OTHER COMPREHENSIVE INCOME Exchange differences on translation of foreign operations TOTAL COMPREHENSIVE LOSS TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Shares issued during the period Share issue transaction costs Share-based payments Revaluation of equity settled share- based payments BALANCE AT 31 DECEMBER 2024 BALANCE AT 1 JULY 2025 Loss for the period OTHER COMPREHENSIVE INCOME Exchange differences on translation of foreign operations TOTAL COMPREHENSIVE LOSS TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Shares issued during the period Share issue transaction costs Share-based payments BALANCE AT 31 DECEMBER 2025	Note	Contributed Equity Share-Based Payments Reserve Foreign Currency Translation Reserve Accumulated Losses Total $ $ $ $ $
		134,533,276 7,293,065 (1,461) (84,693,418) 57,131,462 - - - (2,435,181) (2,435,181) - - 1,166 - 1,166
		- - 1,166 (2,435,181) (2,434,015) 643,145 - - - 643,145 (18,143) - - - (18,143) - 235,657 - - 235,657 - 27,750 - - 27,750
		135,158,278 7,556,472 (295) (87,128,599) 55,585,856
	10 10	138,008,278 7,622,698 1,684 (90,561,284) 55,071,376 - - - (1,900,733) (1,900,733) - - 99 - 99
		- - 99 (1,900,733) (1,900,634) 10,170,481 - - - 10,170,481 (459,822) - - - (459,822) - 203,510 - - 203,510
		147,718,937 7,826,208 1,783 (92,462,017) 63,084,911

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Interest paid NET CASH OUTFLOW FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets Payments for plant and equipment Payments for tenement NET CASH OUTFLOW FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issues of ordinary shares 10 Payment of share issue transaction costs 10 Principal lease repayments NET CASH INFLOW FROM FINANCING ACTIVITIES NET DECREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on cash and cash equivalents CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	31 Dec 2025 31 Dec 2024 $ $
	62,912 184,109 (1,593,669) (3,019,965) 47,414 45,945 - (8,890)
	(1,483,343) (2,798,801)
	94,088 - (2,423,257) (4,105,588) (178,240) (442,729)
	(2,507,409) (4,548,317)
	10,170,481 643,145 (459,822) (18,143) (104,879) (194,479)
	9,605,780 430,523
	5,615,028 (6,916,595) 2,162,007 11,326,929 (4,120) 206,017
	7,772,915 4,616,351

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025

1. BASIS OF PREPARATION

These interim consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 Interim Financial Reporting, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board ( AASB ). Compliance with AASB 134 ensures compliance with IAS 34 Interim Financial Reporting.

During the period ended 31 December 2025, the Butcherbird site remained in care and maintenance to enable progression of the Butcherbird Stage 2 Expansion project and the HPMSM project. Following the Company securing a senior debt facility of up to AU$50 million from NAIF in June 2025, the Group received AU$10 million Share Placement in September 2025. In addition, the Company has extended the At-the-Market Subscription Agreement ( ATM ) with Acuity Capital to provide the Company with up to $30 million of standby equity capital over the coming 36-month period to support the Butcherbird Expansion Project, working capital and broader the Company growth.

Based upon these factors, the Directors has reasonable grounds to believe the Company will be able to continue as a going concern for the foreseeable future, and accordingly, prepare the financial report on a going concern basis.

It is recommended that this interim financial report be read in conjunction with the annual financial report for the year ended 30 June 2025 and any public announcements made by Element 25 Limited and its subsidiaries during the half-year ended 31 December 2026 in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the Australian Securities Exchange ( ASX ) Listing Rules.

The half-year financial report covers the consolidated group comprising Element 25 Limited and its subsidiaries. The company is a for-profit company limited by shares and incorporated in Australia, whose shares are publicly traded on the ASX.

Material Accounting Policies

The accounting policies applied in these financial statements are consistent with those applied by the Company in the 30 June 2025 consolidated financial statements, and the adoption of new and amended standards that became applicable for the current reporting period. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards.

Certain new accounting standards, amendments and interpretations have been published that are not mandatory for the 31 December 2025 interim reporting period and have not been applied in these financial statements. The Company is currently assessing the impact of these new standards and amendments on future financial statements.

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2. SEGMENT INFORMATION

The Company has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Company is managed primarily on the basis of geographic location of assets given that the type of work done in each location is of a similar nature. Operating segments are therefore determined on this basis, with one segment being identified: Australia. The segment details are therefore fully reflected in the results and balances reported in the Consolidated Statement of Profit or Loss and Other Comprehensive Income and Consolidated Statement of Financial Position.

3. REVENUE

3. REVENUE
Sale of manganese Shipment revenue	31 Dec 2025 31 Dec 2024 $ $
	- - - 3,494
	- 3,494

There were no sales of manganese ore to customers during the half year ended 31 December 2025 due to the Butcherbird Expansion Project.

4. COST OF SALES

4. COST OF SALES
Mining costs Processing costs Site administration costs Haulage costs Port and shipping costs Sales and marketing costs Royalty costs Depreciation of processing equipment Depreciation of restoration Depreciation of right of use asset Inventory movement	31 Dec 2025 31 Dec 2024 $ $
	(22,871) (18,478) - (140,224) (224,000) (618,615) (24,000) (115,356) 7,573 (238,148) (17,144) (32,849) (32,540) (59,242) - (250) (39,634) (39,990) (57,814) (131,364) - 13
	(410,430) (1,394,503)

During the period ended 31 December 2025, there was no production at the Butcherbird site due to the expansion project. However, the reported Cost of Sales reflects the fixed costs incurred in relation to the care and maintenance of the site across the critical operational areas of mining, processing and distribution. These costs are necessary to ensure the continued safety, integrity and operational readiness of the mine site and its infrastructure, retention of site assets, site security, compliance with environmental standards and workforce retention.

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 19

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5. GENERAL AND ADMINISTRATION EXPENSES

5. GENERAL AND ADMINISTRATION EXPENSES
Depreciation of property, plant and equipment Loss of foreign exchange expense Loss of sales of assets Share-based payment expense Fair value loss on remeasurement of financial assets Director fees, salaries and wages and other staff costs Consultants ASX and other compliance costs Insurance Occupancy Investor relation expenses Depreciation of right of use asset Other administration expenses	31 Dec 2025 31 Dec 2024 $ $
	(5,890) (57,902) (3,249) (76,541) (7,178) (26,956) (203,510) 106,928 35,348 (4,637) (373,955) (329,206) (710,845) (369,639) (127,186) (32,921) (44,357) (225,188) (44,935) (29,441) (28,510) (28,005) (12,916) (14,303) (49,845) (40,718)
	(1,577,028) (1,128,529)

6. INVENTORY

6. INVENTORY
Raw materials Finished goods at fair value less costs to sell	31 Dec 2025 30 Jun 2025 $ $
	6,827,578 6,827,578 50,156 50,156
	6,877,734 6,877,734

Manganese ore stockpiles represent manganese ore that has been extracted and is available for further processing or sale. For partly processed and saleable manganese, cost is based on the weighted average cost method and includes material and production costs directly attributable to the extraction, processing and transportation of manganese to the existing location and depreciation of property, plant and equipment used in the extraction, processing and transportation of manganese.

During the half year ended 31 December 2025, there was no movement of Manganese ore stockpiles due to the commencement of the expansion project at the Butcherbird site.

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 20

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7. PROPERTY, PLANT AND EQUIPMENT

	Buildings Furniture & Fittings IT Equipment Mine Properties and Development Plant and Equipment Assets Under Construction Total $ $ $ $ $ $ $
Carrying amount – at cost At 30 June 2025 Additions Disposals Other At 31 December 2025 Accumulated depreciation At 30 June 2025 Depreciation expense Disposals Other At 31 December 2025 Net book value At 30 June 2025 Additions Depreciation expense Disposals Other At 31 December 2025
	4,732,299 1,550 309,356 9,584,256 12,359,651 27,980,215 54,967,327 - - - - - 2,844,406 2,844,406 - - - - - - - (1,481,753) (155) - (731,384) (3,226,353) - (5,439,645)
	3,250,546 1,395 309,356 8,852,872 9,133,298 30,824,621 52,372,088
	(1,481,753) (155) (289,845) (731,384) (3,226,353) - (5,729,490) - - (5,890) (39,634) - - (45,524) - - - - - - - 1,481,753 155 - 731,384 3,226,353 - 5,439,645
	- - (295,735) (39,634) - - (335,369)
	3,250,546 1,395 19,511 8,852,872 9,133,298 27,980,215 49,237,837 - - - - - 2,844,406 2,844,406 - - (5,890) (39,634) - - (45,524) - - - - - - - - - - - - - -
	3,250,546 1,395 13,621 8,813,238 9,133,298 30,824,621 52,036,719

Assets under construction at 31 December 2025 of $30,824,621 (30 June 2025: $27,980,215) includes costs directly attributable to bringing assets to a working condition so they are ready for their intended use. The assets which are currently under construction mainly include $22,378,046 (30 June 2025: $22,306,790) for the HPMSM project and $8,204,943 (30 June 2025: $5,642,542) for the Butcherbird Stage 2 Expansion project.

On 1 July 2025, Element 25 Limited transferred Property, Plant and Equipment of $26,559,710 and Deferred Exploration and Evaluation Expenditure of $1,670,894 with a total carrying value of $28,230,604 to its wholly owned subsidiary Butcherbird Operations Pty Ltd, with the transaction recorded through the intercompany loan account. As a result of the transfer, the cost and corresponding accumulated depreciation of the transferred assets, totalling $5,439,645, were eliminated to adjust the assets' carrying amount to their value at the date of transfer.

In accordance with AASB - 136 Impairment of Assets, the Group assessed whether there were any indicators of impairment. The assessment considered the Group’s Consolidated Statement of Financial Position, historically low manganese prices, the suspension of the Butcherbird operations

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 21

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and the market capitalisation in comparison to its net asset value. As a result of this assessment, management determined that no indicators of impairment exist.

8. TRADE AND OTHER PAYABLES

8. TRADE AND OTHER PAYABLES
Trade payables Other payables and accruals 9. PROVISIONS Current Provision for annual leave Provision for long service leave Provision for HPMSM project Non-Current Rehabilitation provision	31 Dec 2025 30 Jun 2025 $ $
	692,516 125,094 1,268,106 1,453,585
	1,960,622 1,578,679
	31 Dec 2025 30 Jun 2025 $ $
	384,034 406,679 169,077 163,862 3,040,258 3,040,258
	3,593,369 3,610,799
	1,690,582 1,690,582
	1,690,582 1,690,582

10. ISSUED CAPITAL

10. ISSUED CAPITAL
				31 Dec 2025	30	Jun 2025
				$		$
267,776,833 fully paid ordinary shares (30	June 2025:	230,612,401)		147,718,937	138,008,278
		31 Dec	2025	30 Jun	2025
		Number	$	Number		$
a) Movement in ordinary share capital
Balance at the beginning of the period		230,612,402	138,008,278	219,530,335	134,533,276
Placement Issue	(i)	36,323,146	10,170,481	11,082,066	3,493,145
Exercise of rights	(ii)	841,285	-	-		-
Transaction costs		-	(459,822)	-		(18,143)
Total issued capital		267,776,833	147,718,937	230,612,401	138,008,278

(i) During the half year ended 31 December 2025, the Company issued 36,323,146 fully paid ordinary shares at an issue price of $0.28 upon the placement.

(ii) During the half year ended 31 December 2025, the Company issued 841,285 fully paid ordinary shares at an issue price of $Nil upon the exercise of rights.

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 22

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11. CONTINGENCIES

There are no material contingent assets or liabilities of the Company at balance date.

12. RELATED PARTY

There were no significant changes in the nature of related party transactions since 30 June 2025.

13. SUBSIDIARIES

The consolidated financial statements incorporate the assets, liabilities, and results of the following subsidiaries:

subsidiaries:
			31 Dec 2025	30 Jun 2025
Name	Country of Incorporation	Class of Shares	Equity	Equity
			Holding %	Holding %
Element 25 (Malaysia) Sdn. Bhd.	Malaysia	Ordinary	100	100
Element 25 Butcherbird Project Pty Ltd	Australia	Ordinary	100	100
Butcherbird Operations Pty Ltd	Australia	Ordinary	100	100
Element 25 (USA) LLC	United States of America	Ordinary	100	100
Element 25 (HPMSM) LLC	United States of America	Ordinary	100	100
Element 25 (Louisiana) LLC	United States of America	Ordinary	100	100

14. SUBSEQUENT EVENTS

On 27 January 2026, the Company extended the At-the-Market Subscription Agreement (ATM) with Acuity Capital Investment Management Pty Ltd to provide the Company with up to AU$30 million of standby equity capital over the coming 36-month period.

No other matter or circumstance has arisen since 31 December 2025, which has significantly affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial periods.

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 23

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DIRECTORS’ DECLARATION

In the opinion of the directors:

(a) The financial statements and notes of the Group for the half-year ended 31 December 2025 are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the Group’s financial position as at 31 December 2025 and of its performance for the half-year ended on that date; and

• (ii) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting , International Financial Reporting Standard, IAS 34 Interim Financial Reporting and the Corporations Regulations 2001, and other mandatory professional reporting requirements.

(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Justin Brown Managing Director

Perth, 12 March 2026

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDING 31 DECEMBER 2025 | 24

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Independent auditor's review report to the members of Element 25 Limited

Report on the half-year financial report

Conclusion

We have reviewed the half-year financial report of Element 25 Limited (the Company) and the entities it controlled during the half-year (together the Group), which comprises the consolidated statement of financial position as at 31 December 2025, the consolidated statement of changes in equity, consolidated statement of cash flows, consolidated statement of profit or loss and other comprehensive income, for the half-year ended on that date, selected explanatory notes and the directors‘ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of Element 25 Limited does not comply with the Corporations Act 2001 including:

1. giving a true and fair view of the Group’s financial position as at 31 December 2025 and of its performance for the half-year ended on that date;

2. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor's responsibilities for the review of the half-year financial report section of our report.

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

PricewaterhouseCoopers, ABN 52 780 433 757 Brookfield Place, Level 15, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840

T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

pwc.com.au

| 25

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Responsibilities of the directors for the half-year financial report

The directors of the Company are responsible for the preparation of the half-year financial report, in accordance with Australian Accounting Standards and the Corporations Act 2001 , including giving a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error.

Auditor's responsibilities for the review of the half-year financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2025 and of its performance for the halfyear ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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by

Adam Thompson Partner

Perth 12 March 2026

PricewaterhouseCoopers, ABN 52 780 433 757 Brookfield Place, Level 15, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840 T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

pwc.com.au

| 26

DIRECTORS

REGISTERED OFFICE

SECRETARY

SOLICITORS

PRINCIPAL PLACE OF BUSINESS

AUDITORS

SHARE REGISTRY

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