2025 - FML Annual Report

ABN 56 005 470 799

Annual Report

For the year ended 31 December 2025

ABN 56 005 470 799

Directors

Wanghong Yang Chairman - Executive

Lingquan Kong Director - Executive

Gerry Fahey Director - Independent Non-Executive Richard O'Shannassy Director - Independent Non-Executive Zhongshan Song Director - Non-Executive

Company Secretary

Nicholas Ong

Registered and Head Office

Level 5

8 St Georges Terrace Perth WA 6000

PO Box 3233

East Perth WA 6892 Tel: +61 (0) 8 9215 7888

Share Registry Auditor

Computershare Investor Services Pty Ltd RSM Australia Partners Level 17, 221 St Georges Terrace Level 32 - Exchange Tower

Perth WA 6000 2 The Esplanade

Perth WA 6000

Bankers Solicitors

National Australia Bank HFW Australia

100 St Georges Terrace Level 15, Brookfield Place - Tower 2

Perth WA 6000 123 St Georges Terrace, Perth, WA 6000

Bank of China Perth Branch Stock Exchange Listing

Level 28, 77 St Georges Terrace Australian Securities Exchange (ASX)

Perth WA 6000 ASX Symbol: FML

Industrial and Commercial Bank of China Level 28, 44 St Georges Terrace

Perth WA 6000

Corporate Directory 2

Chairman's Report 4

Directors' Report 5

Auditors Independence Declaration 30

Consolidated Financial Statements 31

Notes to Consolidated Financial Statements 37

Directors' Declaration 77

Independent Auditor's Report 78

ASX Additional Information 83

Interest in Mining Tenements 85

General Information

The financial statements cover Focus Minerals Limited as a consolidated entity consisting of Focus Minerals Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Focus Minerals Limited's functional and presentation currency.

Focus Minerals Limited is a listed public company limited by shares, incorporated and domiciled in Australia.

A description of the nature of the consolidated entity's operations and its principal activities is included in the director's

report.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 30 March 2026. The directors have the power to amend and reissue the financial statements.

Dear Shareholders,

It is with great pleasure that I present to you the 2025 Annual Report for Focus Minerals Limited (Focus) (ASX:FML). The past year marked a transformative period for the Company, with significant operational advancements at the Coolgardie Gold Operations, strong production and revenue delivery, and a major balance sheet restructure through the successful sale of the Laverton Gold Project.

A key focus throughout the year has been optimising all mining activities while accelerating the development and production of underground ore from the Bonnie Vale Underground Mine. These efforts delivered notable achievements and positioned the Company for enhanced efficiency and sustainability.

Operationally, the Three Mile Hill (TMH) plant processed approximately 1.5 million tonnes of ore, achieving an average recovery rate of 93.5%. Focus sold a total of 49,154 ounces of gold at an average realised price of approximately A$5,556/oz. This strong performance reflected the continued strength in the Australian dollar gold price, combined with improved stability and delivery across the Coolgardie Gold Operations, supporting a consistent production profile and robust revenue generation.

Open pit mining activities encompassed the Greenfields, Alicia, Dreadnought, and CNX pits, delivering a total of 896,856 tonnes of ore at an average grade of 0.97 g/t, for 27,859 ounces mined. Mining at Greenfields was completed in July and the pit was successfully transitioned into an in-pit tailings storage facility. Mining commenced at Dreadnought during the same period, with approximately 1.2 million tonnes of waste removed in preparation for ore production. Alicia entered full production in May and contributed approximately 490kt of ore in the second half of the year. At CNX, development progressed significantly, with the pit opened in September delivering approximately 45kt of ore during the year.

The Bonnie Vale Underground Mine produced approximately 108kt of ore for the year, delivering around 25,000 ounces, and achieved a total of 4,263 metres of development. The operation advanced into a key stage of stope mining in late October, with approximately 10,145 tonnes of stope ore mined during the final quarter of the reporting period. To support the ramp-up of underground mining at Bonnie Vale, the Company completed the expansion of the Varischetti village from 100 rooms to 180 rooms. The village has operated at near-maximum capacity towards the end of the reporting period, with plans now underway for a second phase of expansion in 2026.

During the transition period from Greenfields to other pits, when early-stage development involved predominantly waste rock removal, Focus entered into several toll milling agreements with third parties to maintain optimal plant utilisation at TMH. This resulted in the processing of approximately 509,000 tonnes of third-party ore, generating additional revenue for the Company.

On the corporate front, Focus entered into an agreement with Genesis Minerals Limited for the sale of the Laverton Gold Project for A$250 million in cash. The transaction was successfully completed on 4 June 2025. The proceeds enabled the full repayment of all outstanding loans plus interest to our major shareholder, Shandong Gold, amounting to approximately A$174.8 million, significantly strengthening the Company's balance sheet.

On behalf of the Board, I would like to extend our sincere thanks to our shareholders for your continued support of Focus Minerals Limited. We remain fully committed to driving operational excellence, safety, and efficiency across our Coolgardie assets. With the foundations now firmly in place for sustained production, particularly from higher-grade underground sources, we are confident that our ongoing operations will deliver meaningful and lasting value to shareholders.

Yours faithfully,

Wanghong Yang Chairman of the Board

The Directors present their report on the Group comprising of Focus Minerals Limited - the parent company (referred to as "the Company") - and its subsidiaries (together referred to as "the Group" or "Focus" or "consolidated entity") at the end of, or during the year ended 31 December 2025.

Coolgardie Operations Overview

The Company's focus has been optimising all mining activities and continue the development and production of underground ore from Bonnie Vale.

Notable achievements during the year are:

• Focus sold a total of 49,154 ounces of its own gold at an average realised price of approximately $5,556/oz, reflecting continued strength in the Australian dollar gold price. This performance was underpinned by improved operational delivery across the Coolgardie Gold Operations, with increased stability in both mining and processing activities supporting consistent production and revenue generation.

• Focus transitioned load and haul activities from a contractor model to an owner-operator model at the start of the year, enabling improved control over mining productivity and performance. In addition, both mobile equipment maintenance and fixed plant maintenance were brought in-house, reflecting the Company's confidence in its ability to enhance reliability and operational efficiency. At the end of the year the Company also changed its drill and blast services provider to ensure mining activities progressed in line with the plan. THM plant processed a total of approximately 1.5 million tonnes of ore with an average recovery of 93.5%.

• Focus' open pit mining activities during the year included Greenfields, Alicia, Dreadnought and CNX, delivering a total of 896,856 tonnes of ore at an average grade of 0.97 g/t for 27,859 ounces produced. Mining at Greenfields was completed in July, with works finalised to transition the pit into an in-pit Tailings Storage Facility. Mining activities commenced at Dreadnought during the same period, with approximately 1.2 million tonnes of waste removed in preparation for ore production. Alicia entered full production in May and delivered approximately 490kt of ore in the second half of the year. At CNX, development progressed with the pit opened in September following approval for blasting from Main Roads, representing a key milestone. Mining at CNX delivered approximately 1.65 million tonnes of waste and 45kt of ore during the year.

• Bonnie Vale Underground Mine produced approximately 108kt of ore for the year, delivering around 25,000 ounces, and achieved a total of 4,263 metres of development. The operation progressed into a key stage of stope mining in late October, with approximately 10,145 tonnes of stope ore mined during the final quarter of the year.

• During the period where open pit mining was transitioned from Greenfields to various other pits, and early stage it development was predominantly waste rock removal, Focus entered into numerous agreements to toll treat third party ore to keep the TMH plant run rate at an optimum level. Focus processed approximately 509,000 tonnes of third-party ore during the reporting period, bringing in extra revenue and spread the plant's fix cost across more tonnages.

• The Company completed the Varischetti village expansion from 100 rooms to 180 rooms to cater for the commencement of underground mining activities and Bonnie Vale. The village has been at close to maximum capacity towards of the end of the reporting period. Plans are underway for second phase of expansion for additional rooms in 2026.

  Corporate

• During the period, the Company entered into an agreement with Genesis Minerals Limited for the sale for the Laverton Gold Project for $250 million cash. The sale was completed on 4 June 2025.

As part of its capital management initiative, Focus has repaid its major shareholder, Shandong Gold, of all outstanding loans plus interest of approximately $174.8 million using proceeds from the Laverton Gold Project sale.

COOLGARDIE in detail

Total Coolgardie Gold Operations Mining Depleted Mineral Resources at 31 December 2025:

Coolgardie Gold Operations Summary Mineral Reserves as at 31 December 2025 including mining depletion of:

• Greenfields Open Pit Ore Reserve,

• CNX Open Pit Ore Reserve,

• Bonnie Vale UG Ore Reserves and,

• Summary Mine stockpiles and ROM stocks:

During 2025 Resource Development drilling at Coolgardie was primarily targeted at: Top Tank, Cookes, Adelaide Friendship, Lady Loch, Lady Maude and West Bonnie Vale. Grade control drilling was also conducted at CNX, Dreadnought, Alicia, Bonnie Vale and Undaunted/Lady Charlotte.

2025 drilling at Coolgardie Gold Project

Focus Minerals Ltd - Annual Report for the year ended 31 December 2025

Mineral Resources Table

Coolgardie Gold Project

Focus Minerals Ltd - Annual Report for the year ended 31 December 2025

Focus Minerals Ltd - Annual Report for the year ended 31 December 2025

Competent Persons' Statement

Resources

The information in this announcement that relates to previously announced Mineral Resource estimates was compiled by Mr Alex Aaltonen, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Aaltonen is an employee of Focus Minerals Limited. Mr Aaltonen has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Ms Hannah Kosovich, an employee of Cube Consulting compiled all mining depleted Coolgardie Gold Project Mineral Resource estimates. Ms Hannah Kosovich is a member of Australian Institute of Geoscientists and has sufficient experience to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Aaltonen, and Ms Hannah Kosovich consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Reserves

The information in this announcement that relates to CNX and Brilliant South open pit Ore Reserves estimates is based on an assessment completed by Gary McCrae, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) with a chartered professional status in mining. Mr McCrae is employed by Minecomp Pty Ltd who were engaged by FML to complete the open pit Mine Designs and compile open pit Ore Reserve estimates for the Greenfields, CNX and Brilliant South Deposits. Mr McCrae has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McCrae consents to the inclusion in any report or public announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to mining depleted CNX/Greenfields open pit Ore Reserves estimate is based on an assessment completed by David Ridgeway, a Competent Person who is a member of the Australian Institute of Geoscientists (AIG). Mr David Ridgeway is employed by Focus Operation Limited. Mr Ridgeway has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ridgway consents to the inclusion in any report or public announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to mining depleted Bonnie Vale underground Ore Reserve estimate is based on an assessment completed by Mr Elias Mudzamba, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Mudzamba is a fulltime employee of Focus Minerals Pty Ltd. Mr Mudzamba has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mudzamba consents to the inclusion in any report or public announcement of the matters based on his information in the form and context in which it appears.

Focus Minerals confirms that to the best of its knowledge, Focus is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

Summary of Governance Arrangements and Internal Controls

Focus Minerals ensures that the Mineral Resources and Ore Reserve estimates are subject to governance arrangements and internal controls up to a corporate level within the company. Internal and external reviews of the Mineral Resource estimation procedures and results are carried out. An external consultancy firms have been used to generate the ore reserves that were subject to internal reviews by the consultants.

The General Manager - Geology, is responsible for monitoring the planning, prioritisation and progress of exploratory and resource definition drilling programs across the company and the estimation and reporting of Mineral Resources. These definition activities are conducted within a framework of quality assurance and quality control protocols covering aspects including drill hole location, sample collection, sample preparation and analysis as well as sample and data security.

Focus Minerals reports its Mineral Resources and Ore Reserves on an annual basis, in accordance with the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (the JORC code) 2004 and 2012 Edition. Mineral Resources are quoted inclusive of Ore Reserves. Competent Persons named by Focus Minerals are members of the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists and qualify as Competent Persons as defined in the JORC Code.

Directors

The directors of the Company at any time during or since the end of the year and up to the date of this report, unless otherwise indicated, are:

Details of the Directors' qualifications, experience, special responsibilities, and details of directorships of other listed companies can be found on pages 15 to 16 and in the remuneration report on pages 19 to 26.

Information on Directors, Officers and Senior Management

Note: For director's special responsibilities during the year ended 31 December 2025, please refer to the Remuneration Report

Senior Management

Wanghong Yang - Executive Chairman

Please refer to the directors' section for information about Mr Yang.

Lingquan Kong - Principal Engineer/ Director

Please refer to the directors' section for information about Mr Kong.

Nicholas Ong - Company Secretary (contract)

Qualifications: B. Comm, MBA

Appointed: 19th October 2020

Mr Nicholas Ong has more than 16 years of experience in corporate governance and listing compliance, including 7 years working as a Principal Advisor at the ASX. He is the Managing Director of Minerva Corporate and provides non-executive director and Company Secretary services to several ASX listed companies. He is a fellow of the Governance Institute of Australia.

Fengfan Sun - Chief Financial Officer Qualifications: MBus (Financial Accounting), CPA Appointed: 1st December 2020

Mr Fengfan Sun has many years of invaluable experience in leading and developing successful finance teams in listed and unlisted gold companies. He was employed by Focus as a senior accountant from June 2013 to February 2018 and was appointed as Focus Limited's Chief Financial Officer in December 2020. Fengfan is responsible for managing the financial aspects of Focus' strategy which includes financial planning and reporting, capital management, tax, treasury and investor relations.

Wei Xie - Chief Operating Officer

Qualifications: Bachelor of Mechanical Engineering (Hons) Appointed: 9th December 2024

Resigned: 30th November 2025

Mr Xie is a proven operational manager with extensive experience in managing and running complex operations. His depth of experience across multiple resources and industries ranging from mining and refining of Alumina, manufacturing of Aluminium, Wet Processing of Iron Ore, Gold Processing, Underground, Open Pit and Complex Multi-pit Mining Operations in socially sensitive areas across Australia and abroad. Mr Xie is an experienced catalyst for change and proficient at building teams and empowering them to strive for excellence.

Edward Williams - General Manager, Coolgardie Gold Operation

Qualifications: HNC in Engineering Appointed: 1st December 2025

Edward Williams is a senior mining executive with more than 20 years' experience in heavy industry maintenance and operations across Australia and the United Kingdom. He has held leadership roles with organisations including Alcoa, Roy Hill, Newmont, and Rio Tinto. Edward's expertise spans fixed plant and mobile maintenance, asset reliability, major shutdown delivery, and large-scale operational budgeting. He has led safety transformation initiatives, developed high-performing technical teams, and implemented governance frameworks that improve reliability and productivity. Edward holds a Senior Site Executive certificate and formal qualifications in engineering maintenance and process engineering, and brings extensive operational leadership experience across complex mining and processing environments.

Interests in the Shares and Options of the Company and Related Bodies Corporate

At the date of this report, the direct and indirect interests of directors in the shares and options of the Company were:

Directors' Meetings

The number of meetings of directors (including meetings of committees of directors) held during the year and the number of meetings attended by each director was as follows:

Board

Audit and Risk Committee

Remuneration and Nominations Committee

Technical Committee

A - Number of meetings attended.

B - Number of meetings held during the time the director held office or was a member of the relevant committee during the year.

Capital Structure

Ordinary shares

As at the date of this report, the Company had on issue 286,558,645 fully paid ordinary shares.

Share Options

Options Issued

There were no options issued during the year ended 31 December 2025.

Options Exercised

There were no options exercised during the year ended 31 December 2025.

As at the date of this report, there are no unissued ordinary shares under options.

Principal Activities

The principal activity of the Company during the year was gold exploration and production in Western Australia.

Remuneration Report (Audited)

This report, prepared in accordance with the Corporations Act 2001, contains detailed information regarding the remuneration arrangements for the Directors and Senior Executives who are the 'key management personnel' (KMP) of the Company and the Group. The Board formed the view that the most senior people in the organisation, being the Chief Financial Officer and the Chief Operating Officer are, in addition to the directors, the only executives who satisfy the "key management personnel" criteria during the period. The tables disclosing remuneration for this period and comparatives only include these KMPs.

The KMP for the year ended 31 December 2025 are listed in the table below:

Changes since the end of the reporting period:

ZhongShan Song resigned as a Non-Executive Director on 13th February 2026.

Remuneration Objectives

It is the Company's objective to provide maximum stakeholder benefit from the retention of a high-quality Board and executive team by remunerating directors and key executives fairly and appropriately with reference to relevant employment market conditions.

The expected outcomes of the remuneration structure are:

• Retaining and motivating key executives; and

• Attracting high quality management to the Company.

  Remuneration and Nominations Committee Established

  The Board is responsible for determining and reviewing compensation arrangements for the directors themselves and the executive team. The Board has established a Remuneration and Nominations Committee, comprising all the non-executive directors.

  Members of the Remuneration and Nominations Committee during the year were:

• Gerry Fahey - Committee Chairman; and,

• Richard O'Shannassy

  The Remuneration and Nominations Committee did not meet during the year.

  Compensation of Key Management Personnel

  Remuneration Structure

  In accordance with best practice of the Corporate Governance Principles and Recommendations 3rd Edition, the remuneration structures for non-executive directors and executive directors are separate and distinct.

  Remuneration and Nominations Committee

  The Remuneration and Nominations Committee assesses the appropriateness of the nature and amount of remuneration of directors and senior executives on a periodic basis by reference to relevant employment market conditions with an overall objective of ensuring maximum stakeholder benefit from the retention of a high-quality Board and executive team, subject to the following section relating to non-executive directors. The committee did not meet this year.

  Non-Executive Director Remuneration

  The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.

  The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst directors is reviewed annually. The Board considers advice from external shareholders as well as the fees paid to non-executive directors of comparable companies when undertaking the annual review process.

  Each non-executive director receives a fee for being a director of the Company. No retirement fees were paid to Directors during 2025 (2024: nil)

  The committees of the Board, as of the date of this report, their Chair and members are presently as follows:

  Board Member	Position	Audit & Risk	Remuneration and Nominations
  Wanghong Yang	Chairman Executive	-	-
  Gerry Fahey	Director Independent Non-Executive	C	C
  Richard O'Shannassy	Director Independent Non-Executive	M	M
  Lingquan Kong	Director Executive	-	-
  Zhongshan Song	Director Non-Executive	-	-

  C=Chairman, M=Member

  The following fees have applied:

  • Independent/Non-executive directors $50,000 per annum

The compensation provided to the Directors in these circumstances is fixed, which reflects the time commitment and responsibilities of their roles.

At present, the maximum aggregate remuneration of non-executive directors' fees is $150,000 per annum of which

$150,000 (2024: $150,000) has been paid to the non-executive directors as fees during the year.

Voting and comments made at the company's 2025 Annual General Meeting ('AGM')

At the 2025 AGM, 99.18% of the votes received supported the adoption of the remuneration report for the year ended 31 December 2025. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.

Use of remuneration consultants

There is no use of any remuneration consultant for the year ended 31 December 2025.

Senior Executive and Executive Director Remuneration

Remuneration primarily consists of fixed and performance-based remuneration were determined by the Remuneration and Nominations Committee. The Company had established an equity-based scheme that will allow the executive team to share in the success of Focus. Any issue of an equity component to executive directors is subject to the approval of shareholders in general meeting and it is a policy of the current Board that Directors do not participate in equity-based proposals.

Fixed Remuneration

Fixed remuneration is reviewed by the Remuneration and Nominations Committee. The process consists of a review of relevant comparative remuneration in the market and internally and, where appropriate, external advice on policies and practices. The Committee has access to external, independent advice where necessary.

Senior managers are given the opportunity to receive their fixed (primary) remuneration in a variety of forms including cash and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of payment chosen will be optimal for the recipient without creating additional cost for the Group.

Performance Based Remuneration

The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles of executives. STI payments are granted to executives based on specific annual targets and key performance indicators ('KPI's') being achieved.

Key Performance Indicators (KPI) Goals Performance Targets

Safety Zero Life Altering Injuries in the bonus year

Gold poured and sold (annually) > = 37,000oz Operating Unit Cash Cost (annual average) <=$3,300 / oz Net Operating Cash Flow (annually) > = $50M

Cash bonuses are dependent on meeting defined performance measures. The amount of the bonus is determined having regard to the satisfaction of performance measures and weightings as described above and link to remuneration.

During the year ended 31 December 2025, bonus were awarded to the Directors and the other KMP.

The long-term incentives ('LTI') include share-based payments. Shares are awarded to executives over a period of three years based on long-term incentive measures. These include increase in shareholders' value relative to the entire market and the increase compared to the consolidated entity's direct competitors

No options were issued during the year (2024: None). At this stage, no LTI programmes are in place.

Key Management Personnel Contracts

The key terms of the employment contracts for the key management personnel are summarised as follows:

Edward Williams-General Manager-Coolgardie Gold Operation

Base Salary: $380,000 per annum plus superannuation guarantee Term: Permanent starting from 1 December 2025

Termination: Four weeks' notice

Fengfan Sun - Chief Financial Officer

Base Salary: $270,000 per annum plus superannuation guarantee Term: Permanent starting from 1 December 2020

Termination: Four weeks' notice

Lingquan Kong - Principal Mining Engineer/ Director

Base Salary: $300,000 per annum plus superannuation guarantee

Term: Permanent fixed term from 7 August 2023. Maximum period of 48 months

Termination: Four weeks' notice

Wanghong Yang - Executive Chairman

Base Salary: $400,000 per annum plus superannuation guarantee Other benefits Apartment rent is covered by the company.

Term: Permanent fixed term starting from 1 April 2022, with maximum period of 48 months. Subsequently extended for another 24 months.

Termination: Four weeks' notice

Wei Xie - Chief Operating Officer

Base Salary: $400,000 per annum plus superannuation guarantee

Term: Permanent starting from 9 December 2024, resigned on 30 November 2025

Termination: Four weeks' notice

Remuneration Tables

Directors' and Other Key Management's remuneration for the year ended 31 December 2025

*Wei Xie resigned on 30 November 2025. Total remuneration includes final payments

**Edward Williams joined Focus as Alternate Manager of Maintenance department on 22 May 2025. He was then appointed as General Manager of Coolgardie Gold Operation on 1 December 2025 and is considered as KMP from 1 Dec 2025.

Bonuses for the Independent Directors, Executive Directors, and Key Management Personnel were approved at 100%, with no amounts forfeited.

***As at 31 December 2025, the total bonus payable to the Directors and Key Management Personnel, inclusive of superannuation, amounted to $273,333, which was subsequently paid in February 2026.

Directors' and Other Key Management's remuneration for the year ended 31 December 2024

Salary

Short-Term Benefits

Cash

Non

Post-Employment Benefits

Super-

Performance Related

and fees Others

Bonus

Monetary

annuation Total

Non-Executive Directors:

Gerry Fahey Richard O'Shannassy

ZhongShan Song

Executive Directors:

Lingquan Kong Wanghong Yang

$ $ $ $ $ $ %

Other Key Management

Alex Aaltonen*** Fengfan Sun Rodney Johns* Wei Xie**

1,649,858 143,498 11,090 125,874 191,566 2,121,886

*Rodney Johns resigned on 15 July 2024. Total remuneration includes final payments

**Wei Xie was appointed on 9 December 2024.

***With effect from 1 January 2025, the GM of Exploration, is no longer identified as Key Management Personnel (KMP), and as such, his remuneration is excluded from KMP disclosures.

Relationship between Remuneration and Focus Minerals' Performance

The majority of salary is fixed while small portions of remuneration, such as bonus and share option, are linked to the

Company's performance. Although there is some linkage to the Company's performance, it is not closely aligned.

The following table shows key performance indicators for the Company over the last five reporting periods.

Transactions and Balances with Related Parties

The loan facilities from Shandong Gold Financial Holdings Group ( HongKong) Co. Limited and from Shandong Gold Group Co Limited have been repaid in full by June 2025.

As at 31 December 2025, there is an accounts payable balance, representing Directors fees for current director Mr Song totalling $59,687 (2024: $97,824).

All transactions were made on normal commercial terms and conditions and at market rates.

Additional disclosures relating to key management personnel

Shareholding

The number of shares in the company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below:

This is the end of remuneration report.

Operating Result

The full-year profit after income tax for 2025 was $272,449,000 (2024: profit of $3,006,000).

As at 31 December 2025, the Company has a cash balance (consisting of cash and cash equivalent and term deposits within 12 months) of $159,701,000 (2024: $16,500,000).

Dividends

No dividends have been paid or provided during the year ended 31 December 2025 (2024: nil).

Significant Changes in the State of Affairs

Other than explained in the Review of Operations section above, there have been no significant changes in the state of affairs of the Group to balance date.

Significant Events after Balance Date

ZhongShan Song resigned as a Non-Executive Director on 13th February 2026

Other than the above, there has not been any other matter or circumstance that has arisen after balance date that has 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 periods.

Material Business Risks

The material business risks the Group believes may have an impact on its operating and financial prospects are as follows:

Gold price and foreign exchange currency fluctuations

The Group is exposed to fluctuations in the gold and silver prices which can impact revenue. Management actively monitors the price of gold and silver to ensure that the best prices are achieved on each sale. As the gold and silver sales are done in Australian Dollar terms, the Group is exposed to currency fluctuation which may impact on the proceeds from each sale.

Mineral Resources and Ore Reserves

The Group's Mineral Resources and Ore Reserves are estimates based largely on interpretations of geological data. No assurances can be given that Resources and Reserves are accurate and that the indicated levels of gold and silver can be recovered from any project. To reduce the risks the Group ensures estimates are determined in accordance with the JORC Code and compiled or reviewed by qualified competent persons.

Government regulation

The Group's operations and exploration are subject to extensive laws in Australia. The Group cannot give any assurances that future amendments to current laws or regulations won't have a material impact on its projects. The Group monitors new laws and regulations to ensure compliance and address any impacts on projects as early as possible.

Exploration and development risk

There is a risk that Ore Reserves may be depleted and not offset by new discoveries or developments. Exploration for, and development of, mineral deposits have some inherent risks that even careful evaluation and execution may not produce results that were anticipated. Further, the discovery of an ore body may not ultimately be developed into producing mines. There are significant costs in establishing Resources and Reserves, obtaining all necessary operating permits, and to eventually developing a particular site.

Climate change

The Group acknowledges that its business may be impacted by the effects of climate change. The Group is committed to understanding these risks and developing strategies to manage their impact.

Environmental, health and safety

The Group has environmental liabilities associated with each project which have arisen because of its mining operations and exploration projects. The Group is subject to extensive laws and regulations governing the protection and management

of the health and safety of workers, the environment, waste disposal, mine development and rehabilitation and local cultural heritage. Any non-compliance may result in regulatory fines and/or civil liability.

The Group seeks to comply with the required permits and approvals needed for each project. Any delays in obtaining these

approvals may affect the Group's operations or its ability to continue its operations.

Cybersecurity

Our operations are supported by and dependent upon information technology managed internally and by the third party providers who manage our cloud services. There is a risk that cyber attacks could cause business disruption, financial loss, inappropriate disclosure of information or reputation damage.

The Group deployed a number of technical controls such as firewalls and antivirus software. The Group had implemented a program at all staff level to educate them on cybersecurity awareness.

Likely Developments and Expected Results

Disclosure of information regarding the likely developments in the operations of the Group in future financial period and the expected results of those operations is likely to result in unreasonable prejudice to the Group. Accordingly, this information has not been disclosed in this report.

Environmental Regulations

The Group's operations hold licences issued by the relevant regulatory authorities. These licences specify the limits and regulate the management associated with the operations of the Group. At the date of this report the Group is not aware of any breach of those environmental regulations which apply to the Group's operations. The Group continues to comply with its specified regulations.

Indemnification and Insurance of Directors and Officers

The Company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith.

During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

Indemnity and insurance of auditor

The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor.

During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.

Proceedings on Behalf of the Company

Other than as disclosed in this report no person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings 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.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under Section 237 of the Corporations Act 2001.

Non-Audit Services

As outlined in note 23 to the financial statements, there is no non-audit services provided during the financial year.

Officers of the Company Who are Former Partners of RSM Australia Partners

There are no officers of the company who are former partners of RSM Australia Partners.

Auditor's Independence Declaration

The auditor's independence declaration for the year ended 31 December 2025 has been received and can be found on page 30 of the Financial Report.

Rounding of Amounts

The Company is of a kind referred to in Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the 'rounding off' of amounts in the Directors' Report. Amounts in the Directors' Report have been rounded off in accordance with that Instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar.

Auditor

RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors

Wanghong Yang Chairman of the Board 30 March 2026

Perth

RSM Australia Partners

Level 32 Exchange Tower, 2 The Esplanade Perth WA 6000

GPO Box R1253 Perth WA 6844

T +61 (0) 8 9261 9100

https://www.rsm.com.au

AUDITOR'S INDEPENDENCE DECLARATION

As lead auditor for the audit of the financial report of Focus Minerals Limited for the year ended 31 December 2025, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

1. the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

2. any applicable code of professional conduct in relation to the audit.

   
   
   

   RSM AUSTRALIA

   
   
   

   Perth, WA ALASDAIR WHYTE

   Dated: 30 March 2026 Partner

   
   
   
   
   

   RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.

   RSM Australia Partners ABN 36 965 185 036

   Liability limited by a scheme approved under Professional Standards Legislation

   ‌Consolidated Financial Statements

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

   		Consolidated	Restated *
   	Notes	2025	2024
   		$'000	$'000
   Revenue from Contracts with Customers	2(a)	301,263	115,141
   Interest Income		2,537	392
   Other Income	2(b)	6,053	-
   Expenses
   Mining		(63,776)	(10,367)
   Processing		(47,890)	(39,696)
   Site Services		(1,868)	(2,175)
   Government and Other Royalty Expenses		(7,258)	(2,543)
   Changes in Inventories		7,754	(894)
   Employee Expenses		(38,062)	(17,257)
   Depreciation and Amortisation Expenses	2(c)	(47,447)	(13,142)
   Finance Costs	2(c)	(4,959)	(10,487)
   Loss on Disposal of Tenements		(1,298)	-
   Loss on Impairment of Tenements	12	(17,455)	-
   Loss on write off of inventory		(856)	-
   Corporate and Other Expenses	2(c)	(3,064)	(14,946)
   Profit before income tax benefit from continuing operations for the year		83,674	4,026
   Income Tax Expense	4	(14,750)	-

   Profit after income tax expense from continuing operations 68,924 4,026 Profit/(loss) after income tax expense from discontinued

   operations Other Comprehensive Income for the year, net of tax		-	-
   Total Comprehensive Profit for the year		272,449	3,006
   Profit per Share for profit from continuing operations Basic Profit per Share (Cents Per Share)	5	24.05	1.40
   Diluted Profit per Share (Cents Per Share)	5	24.05	1.40

   25 203,525 (1,020)

   Profit per Share for profit from discontinued operations
   Basic Profit per Share (Cents Per Share)	5	71.03	(0.35)
   Diluted Profit per Share (Cents Per Share)	5	71.03	(0.35)
   Profit per Share
   Basic Profit per Share (Cents Per Share)	5	95.08	1.05
   Diluted Profit per Share (Cents Per Share)	5	95.08	1.05

   * The Group has elected to disclose a single amount of post-tax profit or loss of discontinued operations in the statement of profit or loss and OCI, and has analysed that single amount into revenue, expenses and the pre-tax profit or loss in Note 25.

   The accompanying notes form part of these financial statements.

   .

   CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025

   Consolidated

   31 December 31 December

   2025 2024

   	Notes	$'000	$'000
   Assets
   Current Assets
   Cash and Cash Equivalents	6	129,812	16,500
   Other Financial Assets	6	29,889	-
   Trade, Other Receivables and Prepayment	7	17,848	10,892
   Inventories	9	17,239	6,766
   Total Current Assets		194,788	34,158
   Non-Current Assets Other Financial Assets	6	6,632	6,655
   Property, Plant and Equipment	8	84,971	89,237
   Right-of-use Assets	10	4,314	3,543
   Mine Properties	11	110,765	64,016
   Exploration and Evaluation Assets	12	41,257	126,002
   Deferred Tax Assets	4	-	-
   Total Non-Current Assets		247,939	289,453
   Total Assets		442,727	323,611
   Liabilities
   Current Liabilities
   Trade and Other Payables	13	28,397	27,973
   Provisions	14	1,829	1,094
   Income Tax Payable	4	14,750	-
   Borrowings	16	-	69,417
   Lease Liabilities	15	2,694	1,379
   Total Current Liabilities		47,670	99,863
   Non-Current Liabilities
   Trade and Other Payables	13	1,256	2,931
   Provisions	14	23,945	35,850
   Borrowings	16	-	86,859
   Lease Liabilities	15	1,781	2,482
   Total Non-Current Liabilities		26,982	128,122
   Total Liabilities		74,652	227,985
   Net Assets		368,075	95,626

   Equity
   Issued Capital	17(a)	453,119	453,119
   Reserves	17(c)	-	(7,178)
   Accumulated Losses	17(d)	(85,044)	(350,315)
   Total Equity		368,075	95,626

   The accompanying notes form part of these financial statements.

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

   	Issued Capital	Accumulated Losses	Reserves	Total
   	$'000	$'000	$'000	$'000
   Balance as at 31 December 2023	453,119	(353,321)	(7,178)	92,620
   Profit after income tax for the year	-	3,006	-	3,006
   Other comprehensive income	-	-	-	-
   Total Comprehensive Profit for the year	-	3,006	-	3,006
   Balance as at 31 December 2024	453,119	(350,315)	(7,178)	95,626
   Balance as at 1 January 2025	453,119	(350,315)	(7,178)	95,626
   Profit after income tax for the year	-	272,449	-	272,449
   Other comprehensive income	-	-	-	-
   Total Comprehensive Profit for the year	-	272,449	-	272,449
   Transfer of Reserve on disposal of subsidiary (Note 17 (c))	-	(7,178)	7,178	-
   Balance as at 31 December 2025	453,119	(85,044)	-	368,075

   The accompanying notes form part of these financial statements.

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

   Consolidated

   	Notes	2025 $'000	2024 $'000
   Cash Flows from Operating Activities
   Receipts from Customers (Including GST)		305,999	114,370
   Payments to Suppliers and Employees (Including GST)		(158,024)	(77,148)
   Royalties Paid		(7,258)	(2,543)
   Interest Received		2,653	541
   Finance Costs		(12,441)	(5,783)
   Net Cash from Operating Activities	6(ii)	130,929	29,437
   Cash Flows from Investing Activities
   Proceeds from Sale of subsidiary	25	246,345	-
   Acquisition of Plant and Equipment		(10,498)	(12,581)
   Payments for Financial Assets at Amortised Cost		(29,881)	(647)
   Payments for Development Activities		(64,955)	(43,342)
   Payments for Exploration Expenditure		(4,608)	(6,864)
   Net Cash from/(used in) Investing Activities		136,403	(63,434)
   Cash Flows from Financing Activities Proceeds from Borrowings		15,924	51,067
   Repayment of Borrowings		(165,006)	(421)
   Repayment of Lease Liabilities		(4,938)	(1,357)
   Net Cash (used in)/from Financing Activities		(154,020)	49,289
   Net increase in Cash and Cash Equivalents	113,312		15,292

   Cash and Cash Equivalents at the Beginning of the Financial 16,500		1,198
   Year Effects of Exchange Rate Changes on Cash and Cash -		10
   Equivalents
   Cash and Cash Equivalents at the End of the Financial Year	129,812	16,500

   The accompanying notes form part of these financial statements.

   ‌Notes to Consolidated Financial Statements

   Note 1: Summary of Material Accounting Policies

   The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group consisting of Focus Minerals Ltd ('the parent entity' or "Focus") and its subsidiaries (the 'Group' or "Consolidated Entity").

   1. New or amended Accounting Standards and Interpretations adopted

      The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

      Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

   2. Basis of Preparation

      These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB').

      The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency of the parent company. The financial report covers the consolidated financial statements of Focus Minerals Ltd and controlled entities. Focus Minerals Ltd is a for-profit, listed public company, incorporated and domiciled in Australia.

      Historical cost convention

      The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

   3. Parent entity information

      In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 21.

      The financial information for the parent entity, Focus Minerals Ltd, disclosed in Note 21 has been prepared on the same basis as the consolidated financial statements other than investments in subsidiaries, which are held at cost.

   4. Going concern

      The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.

   5. Segment Reporting

      Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Chairman.

   6. Principles of Consolidation

      The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Focus Minerals Ltd at the end of the reporting period and from time to time during the year. A controlled entity is any entity over which Focus Minerals Limited has control of the entity, demonstrated by the Group's exposure to, or rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. In assessing the ability to control, the existence and effect of holdings of actual and potential voting rights are also considered.

      Where controlled entities have entered or left the Group during the year, the financial performance of those entities are included only for the period of the year that they were controlled. A list of controlled entities is contained in Note 20 to the financial statements.

      Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

      The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

      Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance.

      Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

   7. Foreign currency transactions

      Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

   8. Revenue Recognition

      Revenue is recognised for the major business activities as follows:

      Sale of gold and other metals

      Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods. Control is generally considered to have passed when:

      • Physical possession and risk of goods are transferred.

      • Determination of accuracy of the metal content of the goods delivered; and

      • The refiner has no practical ability to reject the goods where it is within contractually specified terms.

      Toll treatment service

      Revenue from the toll treatment service is recognised at the point in time when the relevant processing services have been completed.

      Revenue from contracts with customers: Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

      Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The

      measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.

      Interest Income: Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

      Dividends: Revenue is recognised when the Group's right to receive the payment is established.

      Rental Income: Rental income from mining leases is accounted for on a straight-line basis over the lease term. Contingent rental income is recognised as income in the periods in which it is earned.

   9. Costs of Production

      Cash costs of production include direct costs incurred for mining, processing and mine site administration, net of costs capitalised to pre-strip and production stripping assets.

      Royalty: Royalty expenses under existing royalty regimes are payable on sales and are therefore recognised as the sale occurs.

      Depreciation: Depreciation of mine specific plant and equipment and buildings and infrastructure is charged on a unit-of-production basis over the mine inventory of the mine concerned (consistent with the Life of Mine plan), except in the case of assets whose useful life is shorter than the life of the mine, in which case the straight-line method is used. The unit of account is ounces of gold produced.

      Amortisation: Mine properties are amortised on a unit-of-production basis over the mine inventory of the mine concerned (consistent with the Life of Mine plan). The unit of account is ounces of gold produced.

   10. Current and non-current classification

       Assets and liabilities are presented in the statement of financial position based on current and non-current classification for the current reporting period.

       An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

       A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

       Deferred tax assets and liabilities are always classified as non-current.

   11. Cash and Cash Equivalents

       Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term, highly liquid deposits with an original maturity of three months or less. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts

   12. Trade and Other Receivables

       Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for expected for credit losses. Trade receivables are generally due for settlement within 30 days.

       The Group has applied the simplified approach to measuring expected credit loses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

       Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

   13. Non-current assets held for sale

       Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement.

       An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition.

       Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

       Non-current assets classified as held for sale are presented separately from the other assets in the statement of financial position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the statement of financial.

       A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of profit or loss and other comprehensive income.

   14. Inventories

       Gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost and net realisable value. Net realisable value less costs to sell is assessed annually based on the amount estimated to be obtained from sale of the item of inventory in the normal course of business, less any anticipated costs to be incurred prior to its sale.

       Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure and depreciation and amortisation relating to mining activities, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs.

       Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

       Inventories of consumable supplies and spare parts expected to be used in production are valued at the lower of weighted average cost, which includes the cost of purchase as well as transportation and statutory charges, or net realisable value. Any provision for obsolescence is determined by reference to specific stock items identified.

       During the exploration and development phase, where the cost of extracting the ore exceeds the likely recoverable amount, gold in circuit and ore stockpile inventory is written down to net realisable value.

   15. Right-of-use assets

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.