EXR Annual Report 2025

Contents

Corporate Directory 2

Chairman's Letter 3

Managing Director's Report 4

Operational Summary and Resource Statement 11

Directors' Report 12

Page | 1

Directors

Mr Richard Cottee Non-Executive Chairman

Mr Stuart Nicholls Managing Director

Mr Stephen Kelemen Non-Executive Director

Ms Anna Sloboda Non-Executive Director

Company Secretary Auditors - Australia

Ms Victoria Allinson BDO Audit Pty Ltd

Level 7, 420 King William Street

Registered Office Adelaide 5000

3B, Level 3 South Australia

60 Hindmarsh Square

Adelaide 5000 Auditors - Mongolia

South Australia Inter Audit LLC

1103, MN Tower

Bankers 5th Khoroo Sambuu's Street

National Australia Bank Limited Chingiltei district

Level 9 Ulaanbnaatar-46, Mongolia

22 King William Street

Adelaide 5000 Stock Exchange Listing

South Australia Australian Securities Exchange code: EXR

Share Registry Email address

Automic Pty Ltd info@elixirenergy.com.au Level 5, 126 Phillip Street

Sydney 2000 Website

New South Wales https://www.elixirenergy.com.au

Dear Fellow Shareholder,

The Grandis Discovery continues to demonstrate significant potential for commercial development, underpinned by its close proximity to existing infrastructure. Should this upcoming year's drilling campaign (outlined in the Managing Director's Report) deliver results comparable to last year's success, the pathway to bankable development will become increasingly clear.

Natural Gas remains a critical enabler of the global energy transition and, importantly, demand continues to grow across international markets. It is also entrenched as a cornerstone fuel for a broad range of industrial applications.

The Taroom Trough, in which our acreage is located, is among Australia's most prospective oil and gas exploration regions. Its geographic position offers a material advantage, with established infrastructure enabling incremental and staged development. For a company of Elixir's scale, this proximity reduces the barriers to commercialisation, particularly against a backdrop of comparatively high gas prices. Indeed, the current market environment presents a markedly stronger platform for profitability than I have previously experienced, even in the early days of QGC.

Our acreage carries no domestic restrictions, providing us with maximum optionality in pursuing the most attractive markets. Combined with Elixir's robust balance sheet, this positions the Company to capture value most effectively through sales denominated in Australian Dollars.

Looking forward, the year ahead represents a pivotal point in our journey. We are firmly back on track to complete Elixir's transition from a pure exploration company into one holding substantial reserves in an increasingly constrained market.

On behalf of the Board, I would like to thank our shareholders for their continued support as we enter this exciting new phase of growth and value creation.

Yours sincerely,

Mr Richard Cottee

Non-Executive Chairman

‌Managing Director's Report

Overview

Financial year to 30 June 2025 (FY25) marked a pivotal year for Elixir Energy Limited ("Elixir"), as the Company transitioned from appraisal into strategic development, with its Taroom Trough assets at the centre of this evolution. A refocus of capital and capability has positioned Elixir to deliver tangible commercial outcomes and create material shareholder value over the years ahead.

Key Achievements for FY25

Elixir Energy Limited (Elixir) had a productive year in its pursuit of building a significant and valuable gas resource in Queensland, Australia.

Resource Definition

• In January 2025, Elixir built up its 2C contingent resource position to 1.8 TCFe across the basin centred gas play and the deep dry coal play via the success of the Daydream-2 drilling and testing.

  Strategic Farm-ins & Transactions

• Secured two farm-in agreements with Santos over ATP 2056 and ATP 2057 (March 2025), adding ~1.2 TCFe net to Elixir's 2C Contingent Resources.

• Executed a farm-out on the Diona sub-block of ATP 2077 with Xstate Resources in April 2025, with Xstate funding the Diona-1 exploration well planned for Q3 2025.

• Streamlined operations by exiting Mongolia in February 2025, sharpening focus and capital allocation towards its Taroom Trough assets.

  Financial Position

• Elixir received an R&D tax incentive refund of A$7.9 million.

• The company raised $7.1 million via a placement and SPP which concluded in April-25.

• The Company finished the financial year with $10.4 million of cash and net receivables.

  Leadership & Strategy Planning

• Stuart Nicholls was appointed CEO & Managing Director in April 2025, succeeding Neil Young, to drive

  Elixir's maiden Reserves booking and pursuit of initial cashflows.

• In May 2025, Elixir unveiled the three-phase strategic plan to mature its ~2.6 TCFe in 2C contingent resources and leverage its dominant acreage position in the Taroom Trough.

• The Board then onboarded Kingsley Rudeforth as COO, enhancing operational capability and technical discipline for the company's three-phase strategic plan in the Taroom Trough.

• By end June 2025, the plan was formalised, positioning the company to embark on its Phase 1 drilling campaign in late 2025.

The Taroom Trough

The Taroom Trough represents one of the last undeveloped, large-scale gas resources on Australia's East Coast. With strong market demand, nearby LNG and domestic buyers, and proven gas accumulations, it is a strategic growth play for Elixir. Success in proving flow rates and scaling up could unlock a multi-TCF development that materially reshapes the East Coast gas supply outlook.

Elixir holds ~2,000km² (503,000 net acres) of permits, making it the largest net acreage holder in the Trough. With ~2.6 TCFe of independently certified net 2C Contingent Resources, the Company is well placed to advance towards large scale commercialisation.

Strategic Plan

Elixir's strategy in the Taroom Trough is to position itself as a strategic 'fast follower', capitalising on nearby developments and ongoing investment activity to accelerate its own progress.

The Company aims to commence gas production and convert over 150 BCF of 2C resources into 2P reserves by the end of 2027. To achieve this, Elixir will implement a methodical three-phase strategic plan, with each phase anchored by critical operational milestones and progress. Given the significant investment in neighbouring areas, Elixir's assets may increase in value without immediate activity on its part, therefore at the conclusion of each phase, the Board will make a conscious decision before transitioning to the next stage of investment. The three phases are as follows:

1. Securing long-term retention over 100% of Elixir's Taroom Trough acreage.

2. Proving the presence of commercially viable Reserves in gas-charged Permian sands in a well-defined and targeted area.

3. Using these targeted areas to collaborate on early production opportunities to drive small-scale development and initial cashflows.

   Each phase is supported by a specific work program and well-defined associated capital requirements. As such, the company will be disciplined and only progress through each phase when the appropriate cost of capital is available at an acceptable level of dilution across the Company's assets or capital structure. (For more details, please see ASX Announcement dated 12 May 2025: Elixir Strategic Plan).

   As part of being able to credibly deliver this new Strategic Plan, Elixir has recruited its Chief Operating Officer in Kingsley Rudeforth. Kingsley has joined Group from Strike Energy Limited where he was the Lead Drilling Engineer and Drilling Superintendent, having drilled some of the most complex and deepest wells ever drilled onshore Australia. Kingsley's background is well suited to the pure upstream nature of Elixir's forward activities.

   ATP2044, EXR:100% and Operator

   Elixir has a 100% interest in petroleum exploration licence ATP 2044 within Queensland. During the previous reporting period the main activities included:

   • Proof of producible low CO2 gas resource with the flow testing campaign at Daydream-2.

     
     
     

   • Potential Commercial Area (PCA), retention application over the full permit area. Elixir concluded its testing program of the Daydream-

2 well in October 2024 and the well will now be retained as a future gas producer. The well delivered gas flow rates from five out of the six stimulated zones - including for the first time in two separate deep coal zones. Positively the test confirmed the raw gas contains low amounts of CO2 and is within pipeline specification.

During the final phase of testing, gas was flowed at various rates and various choke sizes. A maximum flow rate of 2.6 mmscfd was recorded. The well performed sub-optimally post the multiple prolonged downhole interventions where further impairment on the production rates was likely caused by the multiple open and closures of the well and by adverse reactions to fluids introduced into the wellbore.

Elixir has now finalised its expenditures and accruals associated with the Daydream-2 appraisal campaign, including the preparation for its

final R&D refund submission (from its Advanced Finding) for the year totalling $3.8 million. Elixir expects this refund to be processed in October to November 2025. This refund is an important source of forward capital for the upcoming Phase 1 commitments.

During the reporting period Elixir submitted a Potential Commercial Area (PCA) application over 100% of ATP2044 and expects to

hear in the coming period with regards to grant of the permit. This will be a significant milestone in the pursuit

of the Company's Phase 1 objectives.

ATP2056 & ATP2057, EXR: 50% and Operator for Farm-in

In February 2025, Elixir announced new 50% Working Interests in exploration licenses ATP2056 and ATP2057 in the Taroom Trough via the execution of two Farmout Agreements with a wholly owned subsidiary of Santos Ltd ("Santos").

Progress towards transaction completion for Elixir's farm-ins was made throughout the remainder of the year with key activities including working interest title transfer, duty declarations, joint venture establishment via drafting of Joint Operating Agreements and establishment of Elixir and Santos technical, commercial and operational forums to agree the proposed scope of works for the forward programs. Positively, the Joint Operating Agreements were executed in early July after the end of the financial year.

Elixir is well progressed on the early works required for the drilling of the Lorelle-3 well in ATP2056. Scouting of the drilling location has been completed with engagement on land access, logistical considerations and planning well underway. Long lead item and rig procurement has commenced and a drilling window in November to December 2025 has been identified as the proposed target for the commencement of operations.

Lorelle-3 is currently planned to be drilled to 3,600m total depth, collecting core and logs in an expanded evaluation program across the various Permian sandstone targets within the BCG play. This increased data acquisition is designed to facilitate a series of experiments and tests which may prove the Basin Centred Gas Play is definitively present versus other possible geological models and informs the best way to stimulate and produce

the trapped hydrocarbons. Proving this BCG model will also have a collateral valuation impact across the Taroom Trough, as it will dismiss the concept of any downdip water leg making the deeper and more central acreage more prospective for the presence of gas saturated, over pressured reservoirs, capable of being drilled and stimulated in order to produce commercial quantities of gas and condensate. Several existing data points already infer the BCG play type with the notable absence of water saturation on logs from wells across the trough and absolute absence of any water production from the Daydream-2 well test, which is the most downdip and deepest well drilled in the Taroom Trough to date. Successful proof of the presence of the BCG play type will also facilitate better global analogues to similar plays/Basins like the Montney in Canada. Bridging the understanding of the Taroom Trough to these analogues will allow for an easier translation of the scale of the opportunity and facilitate attraction of international capital into the play from existing successful North American unconventional investors and operators. A Research & Development Advanced Finding submission has been compiled to support this expanded evaluation and test work and was submitted after the end of the financial year in order to receive acknowledgement and approval prior to the drilling of Lorelle-3 in the fourth quarter of this year.

The Lorelle-3 appraisal well primary target will be the Tinowon Sandstone (also referred locally to as the Dunk Sandstone) followed by the Overston and Lorelle Sandstones. The primary target package in the Tinowon is mappable on the existing recent 2023 2D seismic volumes, as well as mapping the pinch out to the West as the sand hits the zero edge. Importantly the location of Lorelle-3 is at a similar vertical depth and distance from the zero edge as some of the most successful Shell wells to date in Dunk-5 and Bathurst-5 where it is understood that Shell intersected thick, over pressured gas charged sandstones with near conventional like porosities.

At ATP2057, geophysical planning is underway to acquire the 200km of new 2D seismic in late Q1-CY26 as part of the Company's farm-in commitment. Preliminary analysis indicates the top of the permit is prospective for the similar Permian reservoir conditions as those observed to the North at the Shell wells and proposed at Lorelle-3. Utilising predominantly tracks and roads, Elixir will focus the 200km's in this area in order to mature a potential drilling location, Lorelle-4 in the near future.

ATP2077

Elixir was formally granted ATP 2077 in August 2024. 213 BCFe of 2C Contingent Resources were booked on the award of the acreage from the Queensland Government. The ATP is broken up into three parts, two highly attractive Taroom blocks (A & B) and a large third sub-area (Diona) sitting on the shelf of the basin, which is nearby multiple existing and producing conventional gas and oil fields.

ATP2077 Sub Blocks-A & B, EXR: 100% & Operator

ATP2077 Blocks A & B represent some of Elixir's most attractive acreage given the 100% operated control and location amongst Shell's activities and also being situated on similar distances to the Tinowon zero edge in the Taroom Trough. These block locations benefit from nearby positive well testing results and good seismic coverage that can be tied back to recently drilled wells providing good control.

Block A is almost inset into Shell's primary area of operations and represents an area where good seismic control that can be toed back to successful offset wells which de-risks the opportunity to progress high value Reserve drilling. During the reporting period Block-A was awarded 184 BCFe of 2C net Contingent Resources associated with the BCG play due to its proximity to Shell and Elixir's existing results. Block-A is likely to host Elixir's Phase-2 activities, where the Daydream-3 well location has been identified. This location has multiple 2D seismic lines that can be tied back to Shell's 3D seismic and to the nearest and successful appraisal well in Bathurst-5 (only ~7km's due East). Phase-2 activities are earmarked to commence in 2026 post the currently scheduled drilling and seismic activities.

Block-B has several unique benefits in that it has three existing well penetrations, two of which were drilled to the base of the Permian in Kinkabilla-1 and Inglestone-1. Whilst log quality and interpretation are challenging given the age of the data collection (1960's & 1990's), it is clear that the Permian Sandstones are present and in the case of Inglestone-1, in certain areas is a quality that is almost conventional like in nature. With multiple existing seismic lines and these well penetrations, stratigraphic control is present, leading towards the ability to drill a horizontal well without the need for the vertical pilot initially. This obviously saves a significant amount of cost and rig-time and as a result an appraisal well in Inglestone-2 is being matured for future drilling operations in Phase-2. Block-B is also advantaged by its location to the existing and operating infrastructure in OGT Energy's Waggamba gas pipeline, which feeds into the Silver Springs gas production facility. Block-B's potential well locations are less than 20km from this pipeline which when coupled with the existing successful exploration results in the block may present one of the fastest to market wells in the Taroom Trough.

ATP2077 Diona Sub Block, EXR: 49%

In April 2025, Elixir announced the execution of an Agreement with Xstate Resources Ltd (ASX: XST) ("XState"). Under the farms-out XState earns a 51% interest in the Diona sub-block of ATP 2077 in return for fully funding the cost of an exploration well to be drilled therein.

During the year Elixir and XState worked to complete their farm-in transaction via the multiple approvals and agreements required to be put in place. Significant progress towards transaction completion has come as a result. Similarly, XState has been busy with its other financial and compliance work in order to prepare for successfully taking delivering the Diona-1 exploration well.

Current well planning and scheduling is indicating a potential to conduct the drilling of the Diona-1 conventional exploration well in the September 2025 window. Drilling is expected to take ~2 weeks and on completion Elixir will have met the permit commitments for ATP2077 and will look to move the Taroom Sub Blocks A & B (100% EXR) into retention via PCA (Potential Commercial Area) applications.

The Diona prospect is a modest four-way dip closed anticlinal structure at Showgrounds, Tinowon and Wallabella Sandstone levels with a 55% geological chance of success. The prospect is ideally located for hydrocarbon charge sitting in between and amongst several existing oil and gas fields. On success Diona presents as a potential fast to market conventional source of gas/oil, given the diversion and existence of a flange on the Waggamba gas pipeline to accommodate Diona which was mapped and installed by its previous owners AGL Ltd. On success there is also follow-on potential within the Diona Sub-Block with at least two further prospects identified.

Conclusion

Looking ahead to the coming year, Elixir will advance into execution mode, delivering on key milestones like drilling, PCA grant, and potential reserve conversion while retaining flexibility to scale with appropriate partnerships.

I would like to offer my sincere thanks and appreciation to our entire team, with special thanks to my fellow Board members, and also a strong acknowledgement to our previous Managing Director Neil Young, who has left the Company extremely well positioned for the future.

Lastly, I would also like to thank you, our shareholders, for your initial warm welcome. I am excited and energised with the Company's prospects and believe we have a very bright future at Elixir. What is in front of us is critical, and will help our communities, regions and economy to prosper as a result of our success.

Stuart Nicolls

Managing Director

Competent Person:

The technical information provided has been produced, supervised and reviewed in detail by Elixir's Competent Person, Mr Greg Channon. Mr Channon is a qualified geoscientist with over 35 years of oil and gas industry experience and is a member of the American Association of Petroleum Geologists and the South East Asian Exploration Society and is a graduate of the Australian Institute of Company Directors. He is qualified as a competent person in accordance with ASX listing rule 5.41. Mr Channon consents to the inclusion of the information in this report in the form and context in which it appears.

Reporting Standards:

Reserves and resources are reported in accordance with the definitions of reserves, contingent resources and prospective resources and guidelines set out in the Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the American Association of Petroleum Geologists (AAPG), World Petroleum Council (WPC), Society of Petroleum Evaluation Engineers (SPEE), Society of Exploration Geophysicists (SEG), Society of Petrophysicists and Well Log Analysts (SPWLA) and European Association of Geoscientists and Engineers (EAGE), revised June 2018.

‌Operational Summary and Resource Statement‌

The contingent resource booking was independently certified by ERC Equipoise Pte Ltd (ERCE) and is as follows:

*Notes:

1. These are un-risked contingent resources that have not been risked for the chance of development and there is no certainty that it will be economically viable to produce any portion of the contingent resources. These Contingent Resources are classified as "Development Unclarified". 2. Totals added arithmetically. 3. Gas equivalency: 1 barrel is 6,000 cubic feet of gas 4. The new contingent resources for ATP 2056 have been evaluated by ERCE in a report dated 7 February 2025. 5. Deep Dry Coals, Tight Sands Gas and Condensate Contingent Resources were previously evaluated, detailed in separate reports by ERCE and announced to the ASX on 15 January 2025, 27 May 2024 for ATP 2044 and 19 August 2024 for ATP 2077. 6. There is no overriding royalties associated with these resources.

Daydream-2 flow test (2024)

DIRECTORS

The names of the Directors of Elixir Energy Limited (Elixir) in office during the financial year and at the date of this report are:

Other than as stated above, each Director held office from 1 July 2024 until the date of this report.

INFORMATION ON DIRECTORS

Richard Cottee - Independent Non-Executive Chairman

Qualifications: BA/LLB (Hons)

Board Committees: Chair of the Remuneration Committee and a member of the Audit Committee.

Mr Cottee was the Managing Director of coal seam gas (CSG) focused Queensland Gas Company (QGC) during its growth from a $20 million market capitalisation junior explorer through to its acquisition by BG Group for $5.7 billion. QGC's CSG assets are now operated by Shell and produce gas that is sold to China and other LNG markets.

Originally a lawyer, Mr Cottee has spent the vast majority of his career in senior executive roles in the energy industry, including acting as CEO at CS Energy, NRG Europe, Central Petroleum and Nexus Energy.

A 39-year veteran of the industry, Mr Cottee is a strong business development professional and a graduate from The University of Queensland.

Other current Directorships of Australian listed public companies:

• State Gas Limited (ASX code: GAS) - Executive Chairman, resigned 21 November 2024

  Interests in securities in Group at the date of this report:

• 20,252,240 fully paid ordinary shares

• 3,000,000 Incentive Options exercisable at $0.15 and expiring 17 October 2026

  Stuart Nicolls - Managing Director (appointed 14 April 2025)

  Qualifications: B.Comm

  
  
  

  Mr Nicholls was appointed to the Board of Elixir on 14 April 2025 as its Chief Executive Officer.

  Stuart Nicholls is a dynamic, nationally recognised leader in Australia's energy sector with a proven track record of turning around businesses and leading innovative, high-impact projects. As CEO and Managing Director of Strike Energy Limited, Stuart led the company from a small exploration business to becoming an ASX200 listed entity, delivering multi-million-dollar revenues and groundbreaking achievements in the gas and energy industries. With extensive experience across Europe, Southeast Asia, and Australia, he is a passionate advocate for a timely, reliable and sustainable energy transition. Stuart's experience also includes management roles within Shell in exploration, commercial, strategy outside of his time in military leadership positions. His leadership focus is on innovation, team empowerment, and results-driven

  execution which has consistently delivered growth.

  Other current Directorships of Australian listed public companies:

• Nil

  Interests in securities in Group at the date of this report:

• 4,050,000 fully paid ordinary shares

• 25,000,000 LTI Performance rights exercisable at $nil, expiring 20 June 2029 (subject to shareholder approval)

• 10,000,000 Unlisted Incentive Options, exercisable at $0.12, expiring 31 December 2026 (subject to shareholder approval)

  
  
  

  Neil Young - Managing Director (resigned 14 April 2025)

  Qualifications: MA (Hons)

  Mr Young has more than twenty years' experience in senior management positions in the upstream and downstream sectors of the energy sector, focusing on business development, new ventures, gas marketing and general commercial functions.

  He has worked for a range of companies in the UK and Australia including EY, Tarong Energy and Santos. Mr Young founded Golden Horde Ltd (now a wholly owned subsidiary of Elixir) in 2011 with a view to exploring for gas on the Chinese border in Mongolia. He has also developed various new ventures in multiple countries including Kazakhstan, Japan and the USA.

  Other current Directorships of Australian listed public companies:

• Asian Battery Metals PLC (ASX code: AZ9) - Non-Executive Director since 22 January 2022, listed on the ASX on 24 June 2024.

  Interests in securities in Group at the date of this report:

• 42,989,367 fully paid ordinary shares

• 714,279 Listed Options exercisable at $0.12 and expiring 17 October 2026

  
  
  

  Stephen Kelemen - Independent Non-Executive Director

  Qualifications: B.Eng

  Board Committees: Chair of the Risk Committee, member of the Audit Committee and a member of the Remuneration Committee

  Mr Kelemen has a diverse petroleum industry experience across reservoir, development, operations and exploration activities in conventional petroleum, CSG and other unconventional resources, developed through his ~40 years in the industry. Mr Kelemen led Santos' CSG team from its inception in 2004 and drove the growth in this area that allowed Santos to become one of Australia's leading CSG companies. An engineering graduate from Adelaide University, Stephen served Santos for 38 years in multiple technical and leadership roles.

  Mr Kelemen is currently an Adjunct Professor at University of Queensland's Gas & Energy Transition Research Centre, Deputy Chair - Petroleum for Queensland Exploration Council and a non-executive Director of unlisted Advent Energy Ltd.

  Other current Directorships of Australian listed public companies:

• Galilee Energy Ltd (ASX: GLL)

  Interests in securities in Group at the date of this report:

• 2,565,795 fully paid ordinary shares

• 214,286 Listed Options exercisable at $0.12 and expiring 17 October 2026

• 3,000,000 Unlisted Incentive Options exercisable at $0.15 and expiring 17 October 2026

  Anna Sloboda - Independent Non-Executive Director

  
  
  

  Qualifications: MA Economics, MBA

  Board Committees: Chair of the Audit Committee and a member of the Risk Committee.

  Anna is a joint Belarusian/Australian citizen and has over 20 years of experience in corporate finance, and in developing junior resource companies operating around the world. Anna is currently an Executive Director of Red Citadel Resources Pty Ltd, a private owned mineral resources exploration company with a range of projects in Africa and South America. She also serves as an Advisory Committee Member, Maritime Archaeology, at the Western Australian Maritime Museum.

  Previously she was a co-founder of Trans-Tasman Resources Ltd, and in that capacity had substantial experience in dealing with Chinese off-takers and partners. Other prior employers include Lehman Brothers, Clough Ltd and Curtin University.

  Other current Directorships of Australian listed public companies:

• Lykos Metals Limited (ASX: LYK) Non-executive Chairman appointed 30 November 2023, resigned 25 May 2025.

  Interests in securities in Group at the date of this report:

• 250,286 fully paid ordinary shares

• 107,143 Listed Options exercisable at $0.12 and expiring 17 October 2026

• 1,000,000 Unlisted Incentive Options exercisable at $0.50 and expiring 27 October 2025

• 3,000,000 Unlisted Incentive Options exercisable at $0.15 and expiring1 17 October 2026

  CHIEF OPERATING OFFICER

  Kingsley Rudeforth - (appointed 5 June 2025)

  Qualifications: B.Eng

  Mr Rudeforth was appointed as a full time key management personnel member on 5 June 2025

  Mr. Rudeforth brings over 15-years industry experience and a track record of top-quartile well delivery from his time in key leadership and drilling engineering roles. Most recently Mr. Rudeforth was the Drilling Superintendent and Lead Drilling Engineer at Strike Energy Limited. Prior to this Mr. Rudeforth worked for BP, Conoco Phillips, Ophir Energy, Amplitude (Cooper) Energy and Energean Israel. He holds a Bachelor of Mechanical Engineering (UWA) and Master of Petroleum Engineering (UNSW).

  Interests in securities in Group at the date of this report:

• nil fully paid ordinary shares

• 15,000,000 Class COO Performance Rights expiring 5 June 2029

• 2,000,000 Unlisted Incentive Options exercisable at $0.12 and expiring 31 December 2026

  COMPANY SECRETARY AND CHIEF FINANCIAL OFFICER

  Victoria Marie Allinson (appointed 1 August 2019)

  Qualifications: FCCA, FGIA

  Ms Allinson is a Fellow of The Association of Certified Chartered Accountants, a Fellow of the Governance Institute of Australia. She has over 30 years' accounting and auditing experience, including senior accounting positions in a number of listed companies and was an audit manager for Deloitte Touche Tohmatsu. In addition, Ms Allinson has gained professional experience while living and working in both Australia and the United Kingdom.

  Her previous experience has included being Company Secretary and CFO for a number of listed companies, including ASX listed: Kiland Ltd, Safety Medical Products Ltd, Marmota Limited, Centrex Metals Ltd, Adelaide Energy Ltd, Enterprise Energy NL, and Island Sky Australia Ltd as well as a number of unlisted companies. In her role as Company Secretary, Vicky has assisted a number of companies to list on the ASX and NSX.

  Interests in securities in Group at the date of this report:

• 963,969 fully paid ordinary shares

MEETINGS OF DIRECTORS

The following table sets out the number of meetings of the Elixir's Directors held during the year ended 30 June 2025, and the number of meetings attended by each Director.

(1) Mr Cottee attended the Risk Committee meetings during the year by invitation.

(2) Mr Nicholls attended the Risk Committee meetings during the year by invitation.

(3) Mr Young attended the Audit Committee meetings during the year by invitation.

(4) Ms Sloboda attended the Remuneration Committee during the year by invitation.

PRINCIPAL ACTIVITIES

Elixir Energy Limited ("Company") and its subsidiaries ("Group") is an exploration company focused on a tight gas appraisal in Queensland. Further details are contained in the Managing Director's Report provided earlier in the 2025 Annual Report and in the Review of Operations below.

REVIEW OF OPERATIONS

Operating Results

For the financial year ended 30 June 2025, the Group recorded a net loss from continuing operations before tax of $41,209,680 (2024: loss of $1,501,266). The current year's loss is increased by $39,708,409 comparing to the prior year primarily results from the impairment of the Mongolian assets $38,388,639, higher corporate administration costs $263,550 and lower other decrease in other income net of cost of sales

$1,000,000, offset by $265,683 decrease in share-based remuneration. The underlying corporate cost structure remained unchanged with all costs related to the Australian projects being capitalised.

At 30 June 2025, the Group held cash of $6,567,021 (2024: $7,665,422), representing funds raised in period to July 2024 from a Share placement $6,250,0000 ($5,381,020 after costs); in March 2025 from a Share placement of $6,981,396 ($6,494,633 after costs), and in May 2025 from a Share Purchase Plan placement of $117,000 ($87,321 after costs). During the year, the Group spent approximately $10,465,460 (2024:

$15,567,927 million) on tight gas appraisal in Queensland, received $7,918,029 (2024: $415,109) research & development incentive; and $1,887,041 (2024: $6,034,884) on the CBM project in Mongolia, refer to cashflow statement and see operation review below for more details.

Operations Review

During the period, the Group's primary focus was on exploration in the Taroom Trough, Queensland.

Risk Management

The Group manages both operational and corporate risk in accordance with its risk management policy to ensure that the risks associated with Group's activities are identified, measured and mitigated to the lowest practicable level. Risk assessments across the Companies' business are conducted on a regular basis by the management team and are reported through to the Risk Committee. The Board and delegated Risk Committee are responsible for overseeing the risk management framework. Policies and procedures are continually developed, reviewed, and enhanced as appropriate to manage the current and changing operational and corporate risks of the business.

Changes in Capital Structure

During the year:

• 265,311,388 Elixir Energy Ltd shares were issued via two Placements and a Share Purchase Plan. The Company issued 126,155,669 Listed Free attaching Options with an exercise price of $0.12 and an expiry date of 17 October 2026 pursuant to two Placements, the Share Purchase Plan and broker options.

• 311,933 Listed Option were exercised during the year at $0.12, resulting in 311,933 shares being issued.

• 2,000,000 Unlisted Incentive Options in total, were issued to the Chief Operating Officer under the Employee Share Plan. No unlisted Options were exercised or expired unexercised during the year. 10,000,000 Unlisted Incentive Options were granted to the Managing Director under the Employee Share Plan. These options remain subject to formal shareholder approval as at the date of this report.

• 2,000,000 Performance Rights were issued to a director following Shareholder approval at the 2024 AGM under the Employee Share Plan 15,000,000 Performance Rights were issued to the Chief Operating Officer under the Employee Share Plan. Nil Performance Rights were exercised and 16,050,000 were cancelled as conditions were not met during the year. 25,000,000 Performance Rights were granted to the Managing Director under the Employee Share Plan. These rights remain subject to formal shareholder approval as at the date of this report.

  No other transaction took place that would impact the capital structure of the Group.

  The Group confirms that the use of funds aligns with the Prospectus issued during the current and prior year, being Daydream 2 appraisal well costs.

  Total ordinary shares on issue at 30 June 2025 were 1,399,622,137.

  There were no other significant changes to the issued capital structure during the year.

  SHARE OPTIONS

  At the date of this report there are 218,205,643 (2024: 92,381,907) Listed Options and 10,000,000 (2023: 6,330,000) Unlisted Options over unissued ordinary shares. During the year, 93,710,478 listed Options and 9,000,000 Unlisted Options were granted; 1,328,571 Listed Options were exercised and 5,330,000 Unlisted Options were cancelled.

  Listed Incentive Options on issue at 30 June 2025:

  Issue date	Number	Exercise price	Expiry	Vesting
  17 October 2023	62,318,296	$0.12	17 October 2026	Vested
  7 February 2024	31,392,182	$0.12	17 October 2026	Vested
  31 July 2024	18,750,005	$0.12	17 October 2026	Vested
  12 March 2025	99,734,223	$0.12	17 October 2026	Vested
  5 May 2025	7,671,441	$0.12	17 October 2026	Vested
  Exercised to date	(1,660,504)	$0.12
  Total	218,205,643

  The Listed Options (EXROB) have no voting or dividend rights attached.

  During the period, $180,250 (prior period $180,000) was recognised as a share-based payment share issue cost in relation to the Listed Options issued to Brokers.

  The Company issued free attaching Listed Options during the year under the placements:

• 1,671,441 free attaching options issued on 5 May 2025 on the basis for one for two basis under the February 2025 SPP Placement;

• 99,734,223 free attaching options issued on 12 March 2025 on the basis for one for two basis under the February 2025 Placement; and

• 15,625,005 free attaching options issued on 31 July 2024 on the basis for one for four basis under the July 2024 Placement.

  In addition, 3,125,000 Listed Options were issued to Brokers as part of the February 2025 Placement, these security issue costs amount to $24,000, being the listed option share price on the date the Placement was completed, 12 March 2025; and 6,000,000 Listed Options were issued to Brokers as part of the July 2024 Placement, these security issue costs amount to $156,250, being the listed option share price on the date the Placement was completed, 31 July 2024.

  During the year, 331,933 Listed Options were exercised at $0.12 each.

  The Listed Options have an exercise price of $0.12 and an expiry date of 17 October 2026.

  Unlisted Incentive Options on issue at 30 June 2025:

  Issue date	Number	Exercise price	Expiry	Vesting
  28 October 2021	1,000,000	$0.50	27 October 2025	Vested
  17 October 2023	9,000,000	$0.15	17 October 2026	Vested
  5 June 2025	2,000,000	$0.12	31 December 2026	Unvested
  Total	12,000,000

  In addition, the Company has agreed to issue the Managing Director, Stuart Nicholls (subject to shareholder approval) 10,000,000 Unlisted Incentive Options, exercisable at $0.12, expiring 31 December 2026.

  All unlisted options vest after a one-year service period has been completed and have no voting or dividend rights attached.

  During the period, $75,362 was recognised as a share-based payment expense in relation to the Unlisted Options.

• On the appointment of the new managing director, being 14 April 2025, the Board agreed to issue 10,000,000 Incentive Options to Stuart Nicholls, the managing Director under the Employee Share Plan. These securities are subject to Shareholder approval and have not been issued. During the year $537 expense has been recognised. The grant date was determined to be 20 June 2025 and the total fair value was assessed as $30,000 ($0.003 per option) utilizing the Black-Scholes model with the following key inputs:

  • Share Price at grant date: $0.03

  • Exercise price: $0.12

  • Expiry: 31 December 2026

  • Risk Free rate: 3.5%

  • Volatility: 90%

• On 5 June 2025, 2,000,000 incentive options were issued to the Chief Operating Officer under the Employee Share Plan. During the year $260 expense has been recognised. The grant date was determined to be 5 June 2025 and the total fair value was assessed as $6,000 ($0.003 per option) utilizing the Black-Scholes model with the following key inputs:

  • Share Price at grant date: $0.03

  • Exercise price: $0.12

  • Expiry: 31 December 2026

  • Risk Free rate: 3.44%

  • Volatility: 90%

• On 17 October 2023, 3,000,000 incentive options were issued to each non-executive directors, Richard Cottee, Stephen Kelemen and Anna Sloboda. During the year $74,564 expense has been recognised. The grant date was determined to be 17 October 2023 and the total fair value was assessed as $84,000 each ($0.028 per option) utilizing the Black-Scholes model with the following key inputs:

  • Share Price at grant date: $0.065

  • Exercise price: $0.15

  • Expiry: 17 October 2026

  • Risk Free rate: 3.95%

  • Volatility: 95%

• On 28 October 2021, 1,000,000 unlisted incentive options were issued to Anna Sloboda. The grant date was determined to be 28 October 2021 and the total fair value was assessed as $166,000 ($0.166 per option) utilizing the Black-Scholes model with the following key inputs:

  • Share Price at grant date $0.26

  • Exercise Price: $0.50

  • Expiry: 27 October 2025

  • Risk Free rate :1.11%

  • Share price volatility 110%

PERFORMANCE RIGHTS

At the date of this report there are 15,000,000 (2024: 14,050,000) Performance Rights are on issue. During the year 15,000,000 Performance Rights were issued and 16,050,000 Performance Rights were cancelled due to failed vesting conditions. 25,000,000 Performance Rights were granted to the Managing Director under the Employee Share Plan. These rights remain subject to formal shareholder approval as at the date of this report, the rights will be issued once shareholder approval is obtained.

Performance Rights on issue at 30 June 2025:

In addition, the Company has agreed to issue the Managing Director, Stuart Nicholls (subject to shareholder approval) 25,000,000 LTI Performance rights exercisable at $nil, expiring four years after issue.

Performance Rights Milestones and terms:

1. Milestones: 15,000,000 Performance Rights (Class COO) will vest if the recipient, Kingsley Rudeforth is employed by the Company and the following milestones are met:

   • Tranche 1: 3,000,000 Performance Rights achieving a 30-trading day VWAP of at least $0.05 before the expire date.

   • Tranche 2: 3,000,000 Performance Rights achieving a 30-trading day VWAP of at least $0.07 before the expire date.

   • Tranche 3: 3,000,000 Performance Rights achieving a 30-trading day VWAP of at least $0.10 before the expire date.

   • Tranche 4: 6,000,000 Performance Rights achieving a 30-trading day VWAP of at least $0.18 before the expire date.

     On the appointment of the new managing director, being 14 April 2025, the Board agreed to issue 25,000,000 Performance Rights to Stuart Nicholls, the managing Director under the Employee Share Plan. These securities are subject to shareholder approval and have not been issued The Performance Rights (Class CEO) will vest if the recipient is employed by the Company and the following milestones are met:

   • Tranche 1: 5,000,000 Performance Rights achieving a 30-trading day VWAP of at least $0.05 before the expire date.

   • Tranche 2: 5,000,000 Performance Rights achieving a 30-trading day VWAP of at least $0.07 before the expire date.

   • Tranche 3: 5,000,000 Performance Rights achieving a 30-trading day VWAP of at least $0.10 before the expire date.

   • Tranche 4: 10,000,000 Performance Rights achieving a 30-trading day VWAP of at least $0.18 before the expire date.

There are no voting or dividend rights attached to Performance Rights.

During the period ($106,273) was recognised as share-based payment expense in relation to the following Performance Rights:

• $6,014 in relation to the Class COO Performance Rights. The probability of achieving the milestones is considered likely at 30 June 2025 and therefore fair value related to achieving 2025 milestone is recognised.

• $4,003 in relation to the Class CEO Performance Rights. The probability of achieving the milestones is considered likely at 30 June 2025 and therefore fair value related to achieving 2025 milestone is recognised. The securities are subject to Shareholder approval.

• During the year, non-market vesting conditions associated with the following performance rights were not met, and as a result the performance rights were cancelled and the cumulative historical value of share based payment expense recognised to date has been reversed:

  1. $(7,265) in relation to Class MP Performance Rights.

  2. $(7,265) in relation to Class MI Performance Rights.

  3. $(1,003) in relation to Class DD2 Performance Rights.

  4. $(100,757) in relation to Class TSR Performance Rights.

During the year, 16,050,000 Performance Rights were cancelled due to failed vesting conditions.

DIVIDENDS

No dividends have been declared, provided for or paid in respect of the financial year ended 30 June 2025 (2024: Nil).

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

Other than those events noted above, there were no other significant changes in the state of affairs of the Group during the year that requires separate disclosure.

EVENTS SINCE THE END OF THE FINANCIAL YEAR

There were no other events occurring subsequent to 30 June 2025 that have significantly affected, or may affect in the future, the operations or state of affairs of the Group.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

Refer to Review of Operations on likely developments and future prospects of the Group.

ENVIRONMENTAL REGULATIONS

The Group's operations are subject to significant environmental regulation in relation to exploration and production activities conducted by the Group. The Group has a policy of exceeding or at least complying with its environmental performance obligations. During the financial year, the Group was not aware of any material breach of any particular environmental law or any other particular regulation in respect to its operating activities.

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS

During the year, the Company paid a premium of $56,050 (2024: $56,000) in respect of a contract, insuring the Directors and Officers of the Company against liabilities incurred as a Director or Officer of the Company to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the insured liabilities and the amount of the premium.

The Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an Officer or auditor of the Company or of any related body corporate against a liability incurred as such an Officer or auditor.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of the court under section 237 of the Corporations Act 2001 to bring proceedings on behalf of the Company or to intervene in any proceeding to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Group was not a party to any such proceedings during the year.

NON-AUDIT SERVICES

The Company may deploy the Group's auditor BDO Audit Pty Ltd for non-audit services. The auditor was not engaged to provide any services other than audit services during the 30 June 2025 financial year (refer Note 20). The Directors are satisfied that the auditor has complied with the general standard of independence for auditors imposed by the Corporations Act 2001.

AUDITOR'S INDEPENDENCE DECLARATION

The Auditor's independence declaration is included on page 34 of the financial report.

REMUNERATION REPORT (Audited)

This remuneration report outlines the Director and executive remuneration arrangements of the Group in accordance with the requirements of the Corporations Act 2001 and its regulations. For the purposes of this report, Key Management Personnel ("KMP") of the Group are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any Director (whether executive or otherwise) of the parent company.

1. Remuneration governance

   The remuneration committee of the board of Directors of the Company is responsible for determining and reviewing remuneration arrangements for the Directors and key management personnel. The remuneration committee assesses the appropriateness of the nature and amount of remuneration of key management personnel on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of Directors and key management personnel.

2. Remuneration philosophy

   The performance of the Company, among other things, depends upon the quality of its Directors and management. To prosper, the Company must attract, motivate and retain industry skilled Directors and key management personnel. To this end, the charter adopted by the remuneration committee aims to align rewards with achievement of strategic objectives. The remuneration framework applied provides for a mixture of fixed and variable pay and a blend of short- and long-term incentives as appropriate. Currently no remuneration consultants are used by the Group in formulating remuneration policies.

3. Remuneration structure

   In accordance with best practice corporate governance, the structure of Non-Executive Director and key management personnel remuneration is separate and distinct.

   Non-Executive Directors

   Non-Executive Directors Fees

   The maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to approval by shareholders in a general meeting. At the Company's Annual General Meeting held on 28 October 2021, the shareholders of the Company approved that the aggregate amount of Director fees payable to Non-Executive Directors of the Company be set at a maximum of $1,000,000 per annum in total.

   The Non-Executive Chairman fees are $115,000 per annum and Non-Executive Director fees are $70,000 per annum.

   The Group's policy is to remunerate Non-Executive Directors at market rates (for comparable companies) for time, commitment and responsibilities. Cash fees for Non-Executive Directors are not linked to the performance of the Group. However, to align Directors' interests with shareholders' interests, Directors are encouraged to hold shares in the Company.

   Retirement benefits and allowances

   No retirement benefits or allowances are paid or payable to Directors of the Company (other than statutory or mandatory superannuation contributions, where applicable).

   Key Management Personnel

   Base pay

   KMP receive a competitive level of base pay that comprises the fixed (unrisked) component of their pay and rewards. Base pay for senior KMP is reviewed annually to ensure market competitiveness. There are no guaranteed base pay increases included in any senior KMP contracts.

   Short-term incentives

   Payment of short-term incentives is at the sole and absolute discretion of the remuneration committee. The remuneration committee assesses the achievement of key performance milestones to determine bonus payments. These milestones require performance in relation to key strategic, non-financial measures linked to drivers of performance in future reporting periods, refer to the current and historical performance rights milestones.

   Short-term bonus payments may be adjusted up or down in line with under or over achievement relative to target performance levels at the discretion of the remuneration committee. During the year, the Managing Director was paid a short-term incentive payment of $120,000 (2024: $110,000) as compensation following successful exploration and other operational results in the prior financial year. There have been no forfeitures of bonuses by KMP during the current or prior periods and no cash bonuses remained unvested at year end.

   Long term Incentive - Share-based compensation

   Options over shares in the Company and Performance Rights may be granted from time to time and are required to be approved by shareholders where option over shares or Performance Rights are issued to Directors. The Group's Employee Incentive Securities Plan ("Plan") was last approved by shareholders at the 2022 Annual General Meeting. Participation in any incentive scheme is at the board's discretion and no individual has a contractual right to participate in the Plan or to receive any guaranteed benefits. Options or Performance Rights granted under the Plan carry no dividend or voting rights.

   The Plan includes rules to prevent participants entering into transactions to remove the "at risk" aspect of

   the unvested Options or Performance Rights without the approval of the board.

   Refer to section (e) of this report for detail of the contractual arrangements in place for the Managing Director, Chief Operating Officer and Company Secretary.

   Group performance

   The table below shows various commonly used measures of performance for the 2021 to 2025 financial years:

   Year ended 30 June
   	2021	2022	2023	2024	2025
   	$	$	$	$	$
   Revenues and finance income	53,344	38,926	312,985	1,926,201	245,503
   (Loss) after tax	1,507,035	1,981,676	2,942,854	1,594,816	41,209,680
   Share price at start of year	0.036	0.245	0.135	0.079	0.092
   Share price at end of year	0.245	0.135	0.079	0.092	0.026
   Total Shareholder Return	0.209	(0.11)	(0.06)	0.01	(0.07)
   Loss per share	(0.002)	(0.002)	(0.003)	(0.001)	(0.033)

4. Remuneration of Directors and Key Management Personnel ("KMP") of the group for the current

   and previous financial year

   The following tables show details of the remuneration received by the Group's KMP for the current and

   previous years:

   2025	Short-term benefits			Post- employment benefits	Share-based payments
   	Cash salary and fees	Bonus	Accrued Annual Leave	Superannuation	Options	Performance Rights	Total	Performance Related
   	$	$	$	$	$	$	$	%
   Non-Executive Director
   Richard Cottee	103,139	-	-	11,891	24,855		139,855	18%
   Stephen Kelemen	70,000	-	-	-	24,855	-	94,855	26%
   Anna Sloboda	70,000	-	-	-	24,855	-	94,855	26%
   Subtotal - NED	243,139	-	-	11,891	74,565	-	329,565	23%
   Executive Directors
   Stuart Nicholls(1)	95,644	-	-	5,833	537	4,003	106,017	4%
   Neil Young(2)	443,595	120,000	(113,018)	25,000	-	(100,756)	374,821	5%
   Other KMP
   Kinglsey Rudeforth(3)	17,068	-	-	2,500	260	6,014	25,842	24%
   Victoria Allinson(4)	154,056	-	-	-	-	-	154,056	-
   Total All KMP	953,502	120,000	(113,018)	45,224	75,362	(90,739)	990,331	11%

   2024	Short-term benefits			Post-employment benefits	Share-based payments
   	Cash salary and fees	Bonus	Accrued Annual Leave	Superannuation	Options	Performance Rights	Total	Performance Related
   	$	$	$	$	$	$	$	%
   Non-Executive Director
   Richard Cottee	103,604	-	-	11,396	59,145		174,145	34%
   Stephen Kelemen	70,000	-	-	-	59,145	-	129,145	46%
   Anna Sloboda	70,000	-	-	-	59,145	-	129,145	46%
   Subtotal - NED	243,604	-	-	11,396	177,435	-	432,435	41%
   Executive Directors
   Neil Young	422,500	110,000	7,277	27,500	-	41,806	609,083	25%
   Other KMP
   Victoria Allinson (3)	172,632	-	-	-	-	-	172,632	-
   Total All KMP	838,736	110,000	7,277	38,896	177,435	41,806	1,214,150	27%

   (1) Appointed 14 April 2025

   (2) Resigned 14 April 2025

   (3) Appointed 5 June 2025

   (4) Services are provided via Allinson Accounting Solutions Pty Ltd, which also provides administration and accounting services to the Group (the latter being $90,690 during the year (2024: $76,020)). Total fees exclusive of GST billed to the Group during the year were therefore $244,746 (2024: $248,652).

   Sections (e) and (f) below provide further detail on service contracts and share-based payment remuneration.

5. Service agreements

   Remuneration and other terms of employment for the executives are formalised in service agreements. These agreements specify the components of remuneration, benefits and notice periods. The material terms of service agreements with key management personnel are noted as follows:

   Name	Term of agreement and notice period	Base salary including superannuation	Termination payment
   S Nicholls(1)	No fixed term; 3 months	$470,000	6 months(5)
   N Young(2)	No fixed term; 3 months	$450,000	6 months(5)
   K Rudeforth(3)	No fixed term; 3 months	$270,000	3 months(5)
   V Allinson(4)	No fixed term; 3 months	n/a	n/a

   (1) Appointed 14 April 2025.

   (2) Mr Young was paid a $120,000 (2024: $110,000) bonus as compensation following successful exploration and other operational results in the prior financial year. Resigned 14 April 2025.

   (3) Appointed 5 June 2025.

   (4) Ms Allinson's services are billed through Allinson Accounting Solutions Pty Ltd (trading as My Virtual HQ), a company controlled by Ms Allinson. Fees are billed monthly based on time-incurred.

   (5) Notice period or termination benefit in lieu of notice (on behalf of the employer), other than for gross misconduct.

6. Share-based compensation

Details of Options or Performance Rights over ordinary shares in the Company provided as remuneration to each Director and each of the KMP of the Group in the current year are set out below.

Issue of shares

No shares were issued to directors and other key management personnel as part of compensation during the year ended 30 June 2025 (2024: nil).

Issue of performance rights

The terms and conditions of each grant of performance rights shares affecting remuneration of directors and other key management personnel in this financial year or future reporting years are as follows:

Total KMP share-based payment expense / (reversal) recognised during the year in relation to performance rights was $(90,738) (2024: $41,806).

1. On the appointment of the new managing director, being 14 April 2025, the Board approved the issue of securities to Stuart Nicholls subject to shareholder approval and expiring four years after issue. The Performance rights will not be issued until after the next Shareholders' meeting.

   Class CEO Performance Rights if approved by Shareholders, will be issued to the Managing Director, Stuart Nicholls with performance conditions as outlined in Note 16.

   The Directors have employed an independent consultant to value the 25,000,000 Class CEO Performance Rights using a Monte Carlo model. The total fair value was determined to be $584,450 in relation to Class CEO Performance Rights. Total share-based payment recognised during the year was

   $4,003 (2024: $nil). The remaining $580,447 will be recognised over the three years to 20 June 2029.

   The performance rights are all American call performance rights calculated with the following inputs:

   • Valuation date of 20 June 2025;

   • A share price of $0.03, being the closing share price as at 20 June 2025;

   • A risk-free rate of 3.45%, based on the yield of Australian 3-year government bonds as at 20 June 2025;

   • A volatility of 90% based on analysis of the historical volatility of ASX: EXR over the last 4 years. rounded to one decimal place and reflecting the period for which performance is measured; and

   • A Strike price of $nil

2. N Young resigned in the year on 14 April 2025.

   • Class TSR Performance Rights were issued to prior Managing Director, Neil Young on 19 September 2024 with performance conditions as outlined in Note 16. The Directors have employed an independent consultant to value the 2,000,000 TSR Performance Rights using a Monte Carlo model.

     The total fair value was determined to be $265,351 in relation to LTI TSR Performance Rights. The performance rights are all American call performance rights calculated with the following inputs:

     • Valuation date of 19 September 2024;

     • A share price of $0.145, being the closing share price as at 19 September 2024;

     • A risk-free rate of 3.52%, based on the yield of Australian 3-year government bonds as at 19 September 2024;

     • A volatility of 83% based on analysis of the historical volatility of ASX: EXR over the last 3.62 years. rounded to one decimal place and reflecting the period for which performance is measured; and

     • A Strike price of $nil

   Total share-based payment recognised during the year was $nil (2024: $nil). These securities were cancelled following Mr Young's resignation as Managing Director, as the vesting of the performance rights required continuous service through to 30 June 2025.

   • Class TSR Performance Rights were issued to prior Managing Director, Neil Young on 18 November 2022 with performance conditions as outlined in Note 16. The Directors have employed an independent consultant to value the 1,000,000 TSR Performance Rights using a Monte Carlo model. The total fair value was determined to be $166,075 in relation to LTI TSR Performance Rights.

     The performance rights are all American call performance rights calculated with the following inputs:

     • Valuation date of 18 November 2022;

     • A share price of $0.16, being the closing share price as at 18 November 2022;

     • A risk-free rate of 3.21%, based on the yield of Australian 3-year government bonds as at 18 November 2022;

     • A volatility of 100% based on analysis of the historical volatility of ASX: EXR over the last 3.62 years. rounded to one decimal place and reflecting the period for which performance is measured; and

     • A Strike price of $nil

       Total share-based payment recognised during the year was ($73,824) (2024: $45,579). These securities were cancelled following Mr Young's resignation as Managing Director, as the vesting of the performance rights required continuous service through to 30 June 2026.

   • Class TSR Performance Rights were issued to Managing Director, Neil Young on 17 October 2023 with performance conditions as outlined in Note 16. The Directors have employed an independent consultant to value the 2,000,00 TSR Performance Rights using a Monte Carlo model. The total fair value was determined to be $144,098 in relation to LTI TSR Performance Rights. The performance rights are all American call performance rights calculated with the following inputs:

     • Valuation date of 16 October 2023;

     • A share price of $0.07, being the closing share price as at 16 October 2023;

     • A risk-free rate of 3.95%, based on the yield of Australian 3-year government bonds as at 16 October 2023;

     • A volatility of 95% based on analysis of the historical volatility of ASX: EXR over the last 3.71 years. rounded to one decimal place and reflecting the period for which performance is measured; and

     • A Strike price of $nil

   Total share-based payment recognised during the year was $(26,931) (2024: $26,931). These securities were cancelled following Mr Young's resignation as Managing Director, as the vesting of the performance rights required continuous service through to 30 June 2027.

3. Class COO Performance Rights were issued to Kinglsey Rudeforth on 5 June 2025 with performance conditions as outlined in Note 16.

   The Directors have employed an independent consultant to value the 15,000,000 Class COO Performance Rights using a Monte Carlo model. The total fair value was determined to be $351,200 in relation to Class COO Performance Rights. Total share-based payment recognised during the year was

   $6,014 (2024: $nil). The remaining $345,186 will be recognised over the three years to 5 June 2029. The performance rights are all American call performance rights calculated with the following inputs:

   • Valuation date of 5 June 2025;

   • A share price of $0.03, being the closing share price as at 5 June 2025;

   • A risk-free rate of 3.44%, based on the yield of Australian 3-year government bonds as at 5 June 2025;

   • A volatility of 90% based on analysis of the historical volatility of ASX: EXR over the last 4 years. rounded to one decimal place and reflecting the period for which performance is measured; and

   • A Strike price of $nil

The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key management personnel in this financial year or future reporting years are as follows.

During the period $75,362 was recognised as share-based payment expense in relation to the Options.

1. On the appointment of the new managing director, being 14 April 2025, the Board agreed to issue 10,000,000 Incentive Options to Stuart Nicholls, the managing Director under the Employee Share Plan. These securities are subject to Shareholder approval and have not been issued. During the year

   $537 expense has been recognised. The grant date was determined to be 20 June 2025 and the total fair value was assessed as $30,000 ($0.003 per option) utilizing the Black-Scholes model with the following key inputs:

   • Share Price at grant date: $0.03

   • Exercise price: $0.12

   • Expiry: 31 December 2026

   • Risk Free rate: 3.45%

   • Volatility: 90%

2. On 5 June 2025, 2,000,000 incentive options were issued to the Chief Operating Officer under the Employee Share Plan. During the year $261 expense has been recognised. The grant date was determined to be 5 June 2025 and the total fair value was assessed as $6,000 ($0.003 per option) utilizing the Black-Scholes model with the following key inputs:

   • Share Price at grant date: $0.03

   • Exercise price: $0.12

   • Expiry: 31 December 2026

   • Risk Free rate: 3.5%

   • Volatility: 90%

3. The 3,000,000 unlisted incentive options were issued to each non-executive director, Richard Cottee, Stephen Kelemen and Anna Sloboda on 17 October 2023. During the year $74,564 expense has been recognised. The grant date was determined to be 17 October 2023 and the total fair value was assessed as $252,000 ($0.166 per option) utilizing the Black-Scholes model with the following key inputs:

   • Share Price at grant date $0.08