Geodrill : FY25 CONSOLIDATED FINANCIAL STATEMENTS (Geodrill 25Q4 FS 2025)

About this update from Geodrill Limited

GEODRILL LIMITED CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2025 and 2024 (in United States dollars) CONTENTS Page INDEPENDENT AUDITOR'S REPORT 3-8 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 9 CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) / INCOME 10 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 11 CONSOLIDATED STATEMENTS OF CASH FLOWS 12 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 13-46 INDEX TO THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Contents GENERAL INFORMATION 13 MATERIAL ACCOUNTING POLICIES 13 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 21 NEW AND FUTURE ACCOUNTING STANDARDS 23 SEGMENT REPORTING 24 EXPENSES BY NATURE 25 TAXATION 25 PROPERTY, PLANT AND EQUIPMENT 28 RIGHT-OF-USE ASSETS 30 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 31 INVENTORIES 31 TRADE AND OTHER RECEIVABLES 31 NON-CONTROLLING INTERESTS 32 LOANS PAYABLE 32 TRADE AND OTHER PAYABLES 34 FAIR VALUES OF FINANCIAL INSTRUMENTS 34 FINANCIAL RISK MANAGEMENT 34 RELATED PARTY TRANSACTIONS 40 COMMITMENTS 41 SHARE CAPITAL AND RESERVES 42 (LOSS) / EARNINGS PER SHARE 43 DIVIDENDS 44 EQUITY-SETTLED SHARE-BASED PAYMENTS 45 EVENTS OCCURING AFTER THE REPORTING PERIOD 46 Independent auditor's report To the Shareholders of Geodrill Limited Our opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Geodrill Limited and its subsidiaries (together, the Company) as at December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards. What we have audited The Company's consolidated financial statements comprise: the consolidated statements of financial position as at December 31, 2025 and 2024; the consolidated statements of comprehensive (loss)/income for the years then ended; the consolidated statements of changes in equity for the years then ended; the consolidated statements of cash flows for the years then ended; and the notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information. Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report. PricewaterhouseCoopers LLP PwC Tower, 18 York Street, Suite 2500 Toronto, Ontario, Canada M5J 0B2 T.: +1 416 863 1133, F.: +1 416 365 8215, Fax to mail: [email protected] "PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Revenue recognition for drilling revenue Refer to note 2 - Material accounting policies and note 3 -Critical accounting estimates and judgments to the consolidated financial statements. For the year ended December 31, 2025, the Company recognized revenue from drilling services of $184.9 million. Revenue is measured based on the consideration specified in contracts with customers. The Company has service contracts with customers with varying terms. Judgment is required when considering contractual terms that may impact performance obligations and the amount of revenue that can be recognized. Drilling service is recognized as revenue when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the drilling service rendered will flow to the Company; and Our approach to addressing the matter included the following procedures, among others: For a sample of revenue transactions, tested the revenue recognized, which included the following: Agreed key contractual terms to signed contracts with customers; Evaluated the contractual terms against revenue recognition criteria; and Agreed the drilled meters to customer approved daily drill reports. Tested that revenue recognized, for a period close to year-end, was recognized in the correct period by comparing, for a sample of transactions before and subsequent to year end, the date the revenue was recognized to the date of the drilling service as per the customer-approved drill report. Key audit matter How our audit addressed the key audit matter control of the service has passed to the customer and the work performed of the drilling service at the end of the reporting period has been agreed with the customer. We considered this a key audit matter due to the audit effort required to assess the revenue that is generated from customers with contracts having varying terms, which require judgment in the applicability of the revenue recognition criteria. Other information Management is responsible for the other information. The other information comprises the Management's Discussion and Analysis. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of management and those charged with governance for the consolidated financial statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process. Auditor's responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Company as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditor's report is Manuel Pereyra. /s/PricewaterhouseCoopers LLP Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario February 28, 2026 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at December 31, 2025 and 2024 December 31, December 31, 2025 2024 Note US$ US$ Assets Non-current assets Property, plant and equipment 8 73,508,429 71,371,173 Right-of-use assets 9 1,148,751 1,311,397 Total non-current assets 74,657,180 72,682,570 Current assets Financial assets at fair value through profit or loss 10 1,674,381 6,469,704 Inventories 11 36,536,983 36,687,134 Prepayments 2,082,554 2,363,954 Trade and other receivables 12 44,355,696 30,237,595 Cash 17,294,142 13,051,518 Total current assets 101,943,756 88,809,905 Total assets 176,600,936 161,492,475 Equity and liabilities Equity Share capital 28,462,124 28,547,515 Share-based payment reserve 3,883,700 3,946,719 Retained earnings 85,765,976 87,382,062 Capital and reserves attributable to owners of Geodrill Limited 118,111,800 119,876,296 Non-controlling interests 13 (694,140) (349,534) Total equity 117,417,660 119,526,762 Liabilities Non-current liabilities Deferred tax liability 7(iv) 1,971,330 1,837,104 Loans payable 14 1,325,635 2,329,847 Lease liabilities 195,819 412,278 Total non-current liabilities 3,492,784 4,579,229 Current liabilities Trade and other payables 15 33,556,600 25,013,065 Loans payable 14 8,129,212 7,910,585 Lease liabilities 630,405 707,447 Taxes payable 7(ii) 13,374,275 3,755,387 Total current liabilities 55,690,492 37,386,484 Total equity and liabilities 176,600,936 161,492,475 Approved by the Board of Directors Chairman of the Board of Directors Chairman of the Audit Committee 9 CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) / INCOME For the years ended December 31, 2025 and 2024 December 31, December 31, 2025 2024 Note US$ US$ Revenue 184,914,725 143,054,040 Cost of sales 6 (151,492,534) (108,377,481) Gross profit 33,422,191 34,676,559 Selling, general and administrative expenses 6 (20,525,012) (16,646,981) Expected lifetime credit recovery 12 455,605 3,877,931 Foreign exchange gain / (loss) 1,230,482 (1,209,902) Other income / (loss) 3,263,862 (2,416,005) Results from operating activities 17,847,128 18,281,602 Finance income 54,366 57,200 Finance costs (1,117,084) (1,076,283) Income before taxation 16,784,410 17,262,519 Income tax expense 7(i) (18,655,369) (8,198,737) (Loss) / income and total comprehensive (loss) / income for the year (1,870,959) 9,063,782 (Loss) / income and total comprehensive (loss) / income for the year is attributable to: Owners of Geodrill Limited (1,526,353) 9,258,776 Non-controlling interests (344,606) (194,994) (1,870,959) 9,063,782 (Loss) / earnings per share for income attributable to the ordinary equity holders of the Company Basic 21(i) $(0.03) $0.20 Diluted 21(ii) $(0.03) $0.19 Attributable to owners of Geodrill Limited Share Capital Share-based Payment Reserve Retained Earnings Non- controlling interests Total Equity US$ US$ US$ US$ US$ Balance at January 1, 2025 28,547,515 3,946,719 87,382,062 (349,534) 119,526,762 Loss and total comprehensive loss for the year - - (1,526,353) (344,606) (1,870,959) Share buy-back and cancellation (106,126) - (89,733) - (195,859) Equity-settled stock options 20,735 (9,035) - - 11,700 Cash-settled stock options - (253,352) - - (253,352) Issuance of stock options - 199,368 - - 199,368 Balance at December 31, 2025 28,462,124 3,883,700 85,765,976 (694,140) 117,417,660 Balance at January 1, 2024 28,258,711 3,735,982 78,123,286 (154,540) 109,963,439 Income and total comprehensive income for the year - - 9,258,776 (194,994) 9,063,782 Equity-settled stock options 288,804 (65,733) - - 223,071 Issuance of stock options - 276,470 - - 276,470 Balance at December 31, 2024 28,547,515 3,946,719 87,382,062 (349,534) 119,526,762 December 31, December 31, 2025 US$ 2024 US$ Cash flows from operating activities Income before taxation 16,784,410 17,262,519 Adjustments for : Depreciation expense 17,332,621 12,818,880 Movement in expected lifetime credit losses (455,605) (3,877,931) Change in provision for inventory obsolescence and write down 722,214 273,326 Share-based payment expense 678,422 276,470 Finance income (54,366) (57,200) Finance costs 1,117,084 1,076,283 (Income) / loss on current financial assets at fair value through profit and loss (3,008,743) 2,416,005 Unrealized foreign exchange (gain) / loss (2,189,314) 1,820,443 30,926,723 32,008,795 Disposals of financial assets at fair value through profit and loss 7,854,019 497,803 Change in inventories (572,063) (1,767,005) Change in prepayments 281,400 (1,268,774) Change in trade and other receivables (13,712,449) (2,904,325) Change in trade and other payables 9,155,703 (100,257) 33,933,333 26,466,237 Finance income received 54,366 57,200 Finance costs paid (1,118,426) (1,072,430) Income taxes paid (8,902,255) (4,401,221) Net cash generated from operating activities 23,967,018 21,049,786 Investing activities Purchase of property, plant and equipment (17,905,424) (20,677,294) Net cash used in investing activities (17,905,424) (20,677,294) Financing activities Loans received 10,500,000 10,838,722 Loan payments (11,285,585) (12,578,593) Lease liabilities payments (1,075,652) (832,315) Cash-settled stock options (720,706) - Share buy-back (195,859) - Cash received from exercise of options - 223,071 Net cash used in financing activities (2,777,802) (2,349,115) Effect of movement in exchange rates on cash 958,832 (610,541) Net increse / (decrease) in cash 4,242,624 (2,587,164) Cash at beginning of the year 13,051,518 15,638,682 Cash at end of the year 17,294,142 13,051,518 ‌GENERAL INFORMATION Geodrill Limited (the "Group" or "Geodrill") is a Group registered and domiciled in the Isle of Man. The address of the Group's registered office is Ragnall House, 18 Peel Road, Douglas, Isle of Man, IM1 4LZ. The audited consolidated financial statements of the Group for the years ended December 31, 2025 and 2024 comprise the financial statements of the Group and its wholly owned subsidiaries, Geodrill Ghana Ltd, Geodrill Mauritius Limited, Geodrill Cote d'Ivoire SARL, Drilling Services Malta Limited, Vannin Resources, Unipessoal Limitada, Geodrill Sondagens LTDA, Silver Back Egypt for Mining and Drilling Services S.A.E., Geodrill for Leasing and Specialized Services Freezone LLC, Geodrill Leasing Company Limited, Geodrill Senegal SARL, Company AL-TANQIB AL-MUTAKHIS For Mining LLC, Geodrill Zambia Limited being Geodrill Limited's registered foreign Zambian operating entity, Geodrill Mali being Geodrill Cote d'Ivoire SARL's registered foreign Mali operating entity, Geodrill Mauritius Egypt Branch Limited being Geodrill Mauritius Limited's registered foreign Egypt operating entity, Recon Drilling S.A.C. of which the Company owns a 95% shareholding, Recon Drilling Chile SPA of which the Company owns a 95% shareholding and Geo-Drill SARL of which the Company owns a 95% shareholding, GTS Drilling Ltd a company under common control, collectively referred to as the "Group". The Group is primarily a provider of mineral exploration drilling services. These audited consolidated financial statements were approved and authorized for issuance by the Board of Directors of Geodrill on February 28, 2026. ‌MATERIAL ACCOUNTING POLICIES Statement of compliance The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board. The financial statements are prepared on a going concern basis. Basis of measurement The consolidated financial statements are prepared on the historical cost basis except where otherwise stated. Functional and presentation currency The consolidated financial statements are presented in United States dollars which is the Group's functional and presentation currency. Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group is exposed, or has rights, to variable returns from its involvement with the subsidiaries and has the ability to affect those returns through its power over the subsidiaries. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Consistent accounting policies are used for all Group entities. 2. MATERIAL ACCOUNTING POLICIES (CONTINUED) Basis of consolidation (continued) Transactions eliminated on consolidation Intra-Group balances, intercompany gains and losses, transactions and dividends are eliminated in preparing the consolidated financial statements. Financial instruments Recognition Financial assets and financial liabilities are recognized in the Statement of Financial Position when a Group entity becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the Statement of Comprehensive Income. Financial assets are classified into the following specified categories: financial assets 'at fair value through profit or loss' ("FVTPL"), financial assets 'at fair value through other comprehensive income' ("FVTOCI"), and financial assets at 'amortized cost'. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Subsequent to initial recognition, the treatment of financial assets depends on their classification. Those recognized as FVTPL and FVTOCI are carried in the Consolidated Statement of Financial Position at fair value with changes in fair value recognized in the Statement of Comprehensive Income. Financial assets at amortized cost are measured at amortized cost using the effective interest method, less impairment. Financial liabilities are classified as either financial liabilities "at FVTPL" or financial liabilities at "amortized cost". Subsequent to initial recognition, the treatment of financial liabilities depends on their classification. Those recognized as FVTPL are carried in the Consolidated Statement of Financial Position at fair value with changes in fair value recognized in the Statement of Comprehensive Income. Financial liabilities at amortized cost are measured at amortized cost using the effective interest method. 2. MATERIAL ACCOUNTING POLICIES (CONTINUED) e. Financial instruments (continued) Derecognition Financial assets are derecognized when the contractual rights to the cash flows from the asset expire, or the Group transfers the rights to receive the contractual cash flows or the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. Financial liabilities are derecognized when, and only when, the Group's obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in the Statement of Comprehensive Income. Measurement The Group applies a hierarchy to measure financial instruments carried at fair value. Levels 1 to 3 are defined based on the degree to which fair value inputs are observable and have a significant effect on the recorded fair value, as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Valuation techniques using significant observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices), or valuations that are based on quoted prices for similar instruments; and Level 3: Valuation techniques using significant inputs that are not based on observable market data (unobservable inputs).The fair values of financial instruments are determined using market prices for quoted instruments and widely accepted valuation techniques for other instruments. Valuation techniques include discounted cash flows, standard valuation models based on market parameters, dealer quotes for similar instruments and expert valuations. When fair values of unquoted instruments cannot be measured with sufficient reliability, such instruments are carried at cost less impairments, if applicable. Trade and other receivables, Cash, Trade and other payables, Related party payables and Loans payable are all measured at amortized cost. Further information relating to the fair values of financial instruments is provided in note 17. Amortized cost measurement The amortized cost of a financial asset or liability is the amount at which the financial asset or liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment. 2. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Offsetting Financial assets and liabilities are set off and the net amount presented in the Consolidated Statement of Financial Position when, and only when, the Group has a legal right to set off the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Share capital Proceeds from the issue of ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and stock options are recognized as a deduction from equity, net of any tax effects. Compound financial instruments From time to time the Group may issue compound financial instruments such as convertible notes that can be converted to share capital at the option of the holder, when the number of shares to be issued does not vary with changes in their fair value. The liability component of a compound financial instrument is recognized initially at the fair value of a similar liability that does not have an equity conversion option. The equity component is recognized initially at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity component in the proportion of their initial carrying amounts. Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition. Interest, and gains and losses related to the financial liability, are recognized in the Statement of Comprehensive Income. On conversion, the financial liability is reclassified to equity. Trade receivables Trade receivables are initially stated at their fair value. The carrying amounts for accounts receivable are net of allowances for doubtful accounts, which represent management's estimate of lifetime expected credit losses ("ECL"). The Group uses the simplified approach to recognizing ECLs for its trade receivables that don't have a significant financing component. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group's historical credit loss experience applied to the aging of receivables, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at each reporting date. 2. MATERIAL ACCOUNTING POLICIES (CONTINUED) Property, plant and equipment Recognition and measurement Items of property, plant and equipment are measured at acquisition or construction cost, less accumulated depreciation and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset and, for qualifying assets, capitalized borrowing costs. The cost of self-constructed assets includes the cost of materials and direct labor, and any other costs directly attributable to bringing the asset to a working condition for its intended use. When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Subsequent costs The cost of overhauls and of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The costs of the day-to-day maintenance, repair and servicing expenditures incurred on property, plant and equipment are recognized in the Statement of Comprehensive Income, as incurred. Depreciation Depreciation is recognized in comprehensive income on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Assets leased under a finance lease are depreciated over the shorter of their useful lives and the term of the lease. Land and capital work in progress are not depreciated. The estimated useful lives of major classes of depreciable property, plant and equipment are: Motor vehicles 5 years Plant and equipment 5 years Leasehold improvements over the term of the lease Buildings 15 years Drill rigs 10 years Drill rig components 5 years Depreciation methods, useful lives and residual values of property plant and equipment are reassessed at each reporting date. The useful lives of these assets and residual values can vary depending on a variety of factors, including technological innovation and maintenance programs. Changes in estimates can result in significant variations in the carrying value and amounts charged, on account of depreciation, to profit or loss in specific periods. Gains and losses on disposal of property, plant and equipment are determined by comparing proceeds from disposal with the carrying amounts of property, plant and equipment, and are recognized in the Statement of Comprehensive Income. 2. MATERIAL ACCOUNTING POLICIES (CONTINUED) Property, plant and equipment (continued) Impairment The Group's property, plant and equipment are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the respective asset's or cash-generating unit's recoverable amount is estimated. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amounts. A cash-generating unit is the smallest identifiable asset group that generates cash inflows that are largely independent from other assets and groups. Due to the integrated nature of operations and re-deployment of drill rigs between countries, property, plant and equipment is tested as a single cash generating unit. The recoverable amount of the asset or cash-generating unit is based on the higher of value-in-use and fair value less costs to sell. The value-in-use calculation requires an estimation of the future cash flows expected to arise from the asset or cash-generating unit and a pre-tax discount rate in order to calculate the present value. Fair values less costs to sell are based on recent market transactions where available and, where not available, appropriate valuation models are used. An impairment loss is recognized immediately in the Statement of Comprehensive Income. At the end of each reporting period, the Group assesses whether there is any indication that an impairment loss recognized in prior periods for an asset or cash-generating unit may no longer exist or may have decreased. If any such indication exists, the Group estimates the recoverable amount of the asset or cash-generating unit. Where an impairment loss subsequently reverses, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in the Statement of Comprehensive Income. Inventories Inventories are measured at the lower of cost and net realizable value. The cost of spare parts is based on the first-in first-out principle and includes expenditures incurred in acquiring/building the inventories and bringing them to their existing location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less estimated selling expenses. Inventory is assessed on a per unit basis to determine whether indicators exist which would lead to a downward revision in the net realizable value of inventory. This assessment is performed at each reporting date. Employee benefits Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a separate entity and will have no legal or constructive obligation to pay future amounts. Obligations for contributions to defined contribution schemes are recognized as an expense in the Statement of Comprehensive Income in the periods during which services are rendered by employees. 2. MATERIAL ACCOUNTING POLICIES (CONTINUED) h. Employee benefits (continued) Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A provision is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past services provided by the employee, and the obligation can be estimated reliably. Share-based payment transactions The grant-date fair value of stock options granted to employees is recognized as an employee expense, with a corresponding increase in share based payments reserve, over the period that the employees unconditionally become entitled to the awards. Estimations are made at the end of each reporting period of the number of instruments which will eventually vest. The impact of any revision is recognized in the Statement of Comprehensive Income such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the share-based payment reserve. Income tax Income tax expense comprises current and deferred tax expenses. Current tax and deferred tax are recognized in comprehensive income except to the extent that they relate to items recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided using the asset and liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax base. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Dividends Dividends payable are recognized in the period in which the dividend is appropriately authorized. Revenue - drilling revenue Revenue is measured based on the consideration specified in contracts with customers The Group provides drillings services to its customers. Drilling service is recognized as revenue when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the drilling service rendered will flow to the Group; and control of the service has passed to the customer and the work performed of the drilling service at the end of the reporting period has been agreed with the customer. 2. MATERIAL ACCOUNTING POLICIES (CONTINUED) Revenue - drilling revenue (continued) Payment for drilling services is not due from the customer until the drilling service has been performed and invoiced. Revenue from the provision of services in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Prepayments Prepayments are recognized if the Group has a right to receive future goods or services and are initially stated at fair value. Finance costs Finance costs comprise interest expense on borrowings, including all financing arrangements. Foreign exchange Monetary assets and liabilities denominated in foreign currencies have been translated into United States dollars using the reporting date exchange rate, with realized and unrealized gains and losses included in the determination of profit and loss. Revenues and expenses denominated in foreign currencies are translated at the average exchange rate for the period which approximate date of transaction exchange rates. Provisions A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Earnings per share The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. Diluted earnings per share is determined by adjusting the weighted average number of ordinary shares outstanding for the effects of all dilutive potential shares, which currently comprise stock options granted to employees, consultants and directors. Borrowings Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost, any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the statement of income over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. MATERIAL ACCOUNTING POLICIES (CONTINUED) Leases Classification Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Assets held under finance leases are stated as assets of the Group at the lower of their fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses. The corresponding liability to the lessor is included in the Consolidated Statement of Financial Position as a finance lease obligation. Finance costs are charged to profit or loss over the term of the relevant lease so as to produce a constant periodic interest charge on the remaining balance of the obligations for each accounting period. Lease payments Payments made under operating leases are charged to comprehensive income on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognized as an expense in the period in which termination takes place. Minimum lease payments made under finance leases are apportioned between finance expense and a reduction of the outstanding lease liability. ‌CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Revenue The Group's revenue is generated from drilling services. The Group has service contracts with customers with varying terms. Judgment is required when considering contractual terms that may impact performance obligations and the amount of revenue that can be recognized . 3. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED) Depreciation of property, plant and equipment Property, plant and equipment are often used in demanding environments and may be subject to accelerated depreciation. Management considers the reasonableness of useful lives and whether known factors reduce or extend the lives of certain assets. This is accomplished by assessing the changing business conditions, examining the level of expenditures required for additional improvements, observing the patterns of gains or losses on disposals, and considering the various components of the assets. Net realizable value of inventory Management reviews inventories at each reporting period to determine whether indicators exist which would lead to a downward revision in the net realizable value of the inventory. Management's estimate of net realizable value of such inventories is based primarily on sales price and current market conditions. Impairment provision for trade receivables Trade receivables are initially recorded at fair value. The carrying amounts for trade accounts receivable are net of lifetime expected credit losses ("ECL"). The measurement of the ECL allowance for trade accounts receivable requires the use of management judgment in choosing estimation techniques, selecting key inputs and making significant assumptions about future economic conditions and credit behavior of the customers, including the likelihood of customers defaulting and the resulting losses. Management uses a provision matrix to determine the ECL for trade receivables. The provision matrix is used to estimate future credit losses based on the Group's historical credit loss experience. The ECL determined by the provision matrix is adjusted for current and forward-looking information relating to future economic conditions and factors specific to individual debtors that were identified to be higher risk of default. Significant judgements are made in determining the adjustments for these factors. There are aged trade receivable balances for which judgement is required to determine the measurement of the impairment provision at the reporting date. Income tax Tax interpretations, regulations and legislation in the various countries in which the Group operates are subject to change and management uncertainty. Current income tax expense is based on tax currently payable or current withholding tax rates in countries in which the Group operates. In addition, deferred income tax liabilities are assessed by management at the end of the reporting period and are measured at the tax rates that are expected to be applied to the temporary differences when they reverse. The sufficiency of estimated future taxable income is also assessed by management in the context of the recognition of deferred tax assets attributable to unused tax losses. The amount recognized as accrued liabilities is the best estimate of the consideration required to settle the related liability, including any related interest charges, taking into account the risks and uncertainties surrounding the obligation. The Group assesses its liabilities at each reporting period, based upon the best information available, relevant to the tax laws and other appropriate requirements. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED) Assessment of impairment of property, plant and equipment The Group tests at each reporting period whether there are indicators of impairment with respect to its property, plant and equipment, in accordance with the accounting policy stated in Note 2f(iv). If such indicators are identified, the recoverable amounts of each cash-generating unit have been determined based on value-in-use calculations. These determinations require the use of judgment. Where indicators of impairment exist, the Group tests impairment based on the discounted cash flows related to each cash generating unit. Discount rates applied to the Group's cash-generating units ("CGUs") represent the Group's assessment of the risks specific to each group of CGUs regarding the time value of money and individual risks of the underlying assets. There were no indicators of impairment in 2025. In 2024, there were indicators of impairment and the Group used discount rates between 15% and 16.5%, and perpetual growth rate of 5% (2024: 5%). No impairment charge has been recognized in the periods presented. Uncertain tax positions The Group operates in a number of African countries and South America. The Group measures the impact of the uncertainty using the method that best predicts the resolution of the uncertainty; either the most likely amount method or the expected value method. The judgments and estimates made to recognize and measure the effect of uncertain tax treatments are reassessed whenever circumstances change or when there is new information that affects those judgments. ‌NEW AND FUTURE ACCOUNTING STANDARDS Adoption of new and amended accounting pronouncements In 2025, there have been no new or amended accounting pronouncements that have had a material impact on Group's consolidated financial statements. NEW AND FUTURE ACCOUNTING STANDARDS (CONTINUED) New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for December 31, 2025 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions with the exception of the standard detailed below: IFRS 18 Presentation and Disclosure in the Financial Statements IFRS 18 will replace IAS 1 Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements. The Group is currently evaluating the impact of this standard on its consolidated financial statements. The Group will apply the new standard from its mandatory effective date of January 1, 2027. Retrospective application is required, and so the comparative information for the financial year ending December 31, 2026 will be restated in accordance with IFRS 18. Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 On May 30, 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. This amendment is not expected to have a material impact on the entity in the current or future reporting periods. The Group will apply the new standard from its mandatory effective date of January 1, 2026. ‌SEGMENT REPORTING The primary format of operating segments is based on the Group's management and internal reporting structure, which is submitted to the Chief Executive Officer (CEO) who is the Chief Operating Decision Maker. Due to the integrated nature of the Group's operations and redeployment of drill rigs within Africa, the Group maintains only one operating segment. The Group has operations in South America, however, this is not material to the Group's operations and therefore not considered to be a reportable segment. For the year ended December 31, 2025, one customer contributed 17% to the Group's revenue. For the year ended December 31, 2024, three customers contributed 40% to the Group's revenue. ‌EXPENSES BY NATURE The Group presents certain expenses in the Consolidated Statements of Comprehensive (Loss) / Income by function. The following table presents those expenses by nature: 2025 US$ 2024 US$ Expenses Wages and employee benefits 65,889,311 47,094,408 Drill rig expenses 49,100,734 34,928,407 External services, contractors and others 33,908,599 24,526,669 Depreciation 17,332,621 12,818,880 Repairs and maintenance 5,786,281 5,656,098 172,017,546 125,024,462 2025 US$ 2024 US$ Cost of sales 151,492,534 108,377,481 Selling, general and administrative expenses 20,525,012 16,646,981 172,017,546 125,024,462 ‌7. TAXATION (i) Income tax expense 2025 US$ 2024 US$ Current tax expense (iii) 18,521,143 7,981,207 Deferred tax expense (iv) 134,226 217,530 18,655,369 8,198,737 The current tax expense in 2025 is comprised of current tax for 2025 of $9.8M and current tax from prior years of $8.7M (see notes 7(iii) and 7 (vi)) (2024: current tax for 2024 of $8.0M and current tax from prior years of $Nil). (ii) Taxes payable Balance at Payments during the Charge for Balance at Jan. 1 US$ year US$ the year US$ Dec. 31 US$ 2025 3,755,387 (8,902,255) 18,521,143 13,374,275 2024 175,401 (4,401,221) 7,981,207 3,755,387 TAXATION (CONTINUED) Reconciliation of effective tax rate 2025 US$ 2024 US$ Income before tax 16,784,410 17,262,519 Corporate tax at 25% (1) 4,196,103 4,315,630 Add: Effect of different rate tax countries 1,618,786 1,112,713 Adjustments for current tax of prior years 8,688,535 (2) - Deferred tax liability on undistributed profits of subsidiary 75,000 100,000 Tax effect of amounts that are not deductible in calculating taxable income 471,677 637,674 Tax expense before withholding tax 15,050,101 6,166,017 89.7% 35.7% Add: Withholding tax 3,605,268 2,032,720 Total tax expense 18,655,369 8,198,737 Effective tax rate 111.1% 47.5% (1) Based on the corporation tax rate in Ghana of 25%. (2) This number includes US$8.4M in relation to tax in Cote d'Iv oire (see note 7 (v i)). (iv) Deferred tax liability 2025 US$ 2024 US$ Balance at January 1 (1,837,104) (1,619,574) Expense for the year (134,226) (217,530) Balance at end of the year (1,971,330) (1,837,104) TAXATION (CONTINUED) Recognized deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following: 2025 US$ 2024 US$ Tax losses carried forward (1) 3,686,587 2,748,972 Deferred tax asset not recognized (2) (3,450,442) (2,183,322) Deferred tax on undistributed profits (75,000) (100,000) Property, plant and equipment (2,348,681) (2,509,187) Provision for inventory obsolescence 216,206 206,433 Total (1,971,330) (1,837,104) (1) The Group has tax losses in numerous jurisdictions that are available for the years December 31, 2026 through December 31, 2030. (2) Deferred tax assets in numerous jurisdictions have not been recognized in the financial statements because it is not probable that future taxable profit will be available against which the Group can utilize the related tax benefits. Deferred tax assets have been recognized where it is considered probable that the Group will generate sufficient future taxable income to utilize the related tax benefits. Tax, Customs and Transfer Pricing audits During 2025 the Group received a formal notice of recovery from a tax authority in Côte d'Ivoire for tax amounts owing for the years 2022 to 2024. The notice of recovery was for missing payments in the amount of CFA4,714,639,248 (US$8.4M) with an additional amount of penalties of CFA4, 997,517,602 (US$8.9M). The Group has obtained all of the remittance certificates from the tax authority's tax platform indicating that the missing payments have been remitted. In late December 2025, the tax authorities initiated certain measures with the intent of restricting the Group's operations in the country. In order to ensure the continuous operations in Côte d'Ivoire, and following a series of discussions with the tax authorities, management determined that it was in the best interest of the Group to agree to a settlement as the Group continues to seek recovery of all additional taxes paid from the registered tax agency who we hold responsible for this dispute. In early 2026, the Group entered into a memorandum of understanding with the Côte d'Ivoire tax authorities in respect of the above-mentioned notice of recovery. Pursuant to the terms of the memorandum of understanding, the Group has agreed to pay a total of CFA4,714,639,248 (US$8.4M), which is required to be paid in monthly instalments of CFA500,000,000 (US$0.9M) beginning in January 2026. As part of the agreement, the Côte d'Ivoire tax authorities have waived all related penalties totaling CFA4,997,517,602 (US$8.9M). As a result of this agreement, during the fourth quarter of 2025, the Group re-evaluated its estimate of the required accrual for this tax. Management believes for all other matters that the ultimate amount of liability, if any, for any pending assessments (either alone or combined) would not materially affect the Group's operations, liquidity or financial position taken as a whole. However, the ultimate outcome of these audits is uncertain. ‌8. PROPERTY, PLANT AND EQUIPMENT 2025 Capital Work in Motor Plant & Drill Land & Leasehold Progress Vehicles Equipment Rigs (1) Improvements (CWIP) Total US$ US$ US$ US$ US$ US$ Cost Balance at January 1, 2025 12,076,881 36,420,694 85,901,614 10,122,181 17,797,593 162,318,963 Additions - - - - 18,525,079 18,525,079 Reclassifications from CWIP 1,283,914 5,976,943 17,892,818 896,194 (26,049,869) - Assets retired during the year (1,509,398) (1,347,236) (7,884,868) - - (10,741,502) Balance at December 31, 2025 11,851,397 41,050,401 95,909,564 11,018,375 10,272,803 170,102,540 Accumulated Depreciation Balance at January 1, 2025 9,838,778 28,694,749 47,869,544 4,544,719 - 90,947,790 Charge for the year 1,086,200 3,688,500 10,739,050 874,073 - 16,387,823 Assets retired during the year (1,509,398) (1,347,236) (7,884,868) - - (10,741,502) Balance at December 31, 2025 9,415,580 31,036,013 50,723,726 5,418,792 - 96,594,111 Carrying amounts at December 31, 2025 2,435,817 10,014,388 45,185,838 5,599,583 10,272,803 73,508,429 (1) Drill rigs include drill rigs components and rebuilds which are depreciated at the appropriate rates in accordance with the Group's accounting policies. Additions in the year relate to additional drill rigs, additional ancillary equipment, costs associated with rebuilding existing drill rigs and related equipment, additional trucks, additional light vehicles and costs associated with completing certain workshops and supply bases. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 2024 Capital Work in Motor Vehicles US$ Plant & Equipment US$ Drill Rigs (1) US$ Land & Leasehold Improvements US$ Progress (CWIP) US$ Total US$ Cost Balance at January 1, 2024 11,893,196 34,182,385 80,833,363 9,714,005 10,011,355 146,634,304 Additions - - - - 21,228,902 21,228,902 Reclassifications from CWIP 782,798 2,929,944 8,355,244 1,374,678 (13,442,664) - Assets retired during the year (599,113) (691,635) (3,286,993) (966,502) - (5,544,243) Balance at December 31, 2024 12,076,881 36,420,694 85,901,614 10,122,181 17,797,593 162,318,963 Accumulated Depreciation Balance at January 1, 2024 9,456,635 26,615,816 43,605,178 4,697,732 - 84,375,361 Charge for the year 981,256 2,770,568 7,551,359 813,489 - 12,116,672 Assets retired during the year (599,113) (691,635) (3,286,993) (966,502) - (5,544,243) Balance at December 31, 2024 9,838,778 28,694,749 47,869,544 4,544,719 - 90,947,790 Carrying amounts at December 31, 2024 2,238,103 7,725,945 38,032,070 5,577,462 17,797,593 71,371,173 (1) Drill rigs include drill rigs components and rebuilds which are depreciated at the appropriate rates in accordance with the Group's accounting policies. Additions in 2024 relate to additional drill rigs, additional ancillary equipment, costs associated with rebuilding existing drill rigs and related equipment, additional trucks, additional light vehicles and costs associated with completing certain workshops and supply bases .

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