Strategic Minerals : Annual Report 2025

About this update from Strategic Minerals Plc

Report and Financial Statements Year Ended 31 December 2025 Company Number 07440902 HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2025 Financial Highlights Revenues from the Cobre magnetite operation were $4.2m, the second highest levels since 2017. Margins improved from 82% to 85% Profit before tax reduced to $0.7m from $2.1m primarily due to a non-cash share based payment expense ($0.6m), reduced Cobre profits ($0.3m), costs associated with the Board restructuring and increased Group wide activity levels including investment in the Redmoor Tungsten-Tin-Copper Project in Cornwall. $2.1m invested in the Redmoor Project during the year, offset by $0.8m of UK Government grant funding received in the year from the UK Shared Prosperity Fund. Cash at 31 December 2025 increased to $777k (2024: $621k). A further £8.7m ($11.7m) raised post year end through two equity placings in Q1 2026 to fund infill drilling and Pre-Feasibility Study at Redmoor. Operational Highlights (By Subsidiary) Cornwall Resources Limited ("CRL") Redmoor Tungsten-Tin-Copper Project, Cornwall, UK Awarded £764,000 UK Government grant funding under the UK Shared Prosperity Fund, matched by proceeds from the April 2025 placing, supporting an accelerated programme towards pre-feasibility. Completed first drilling campaign since 2018, with 5,048.7m drilled between June and December 2025, delivered ahead of schedule and within budget. Exceptional drillhole results with high-grade tungsten, tin and copper intercepts, including 1.10m @ 7.19% WO₃ (7.51% WO₃.Eq) and 0.97m @ 7.52% WO₃ (7.78% WO₃.Eq), among the highest-grade results recorded at Redmoor. Identified multiple mineralised intervals and wide zones within the sheeted vein system, reinforcing Redmoor's position as one of the highest-grade undeveloped tungsten deposits globally. Re-analysis of historical samples confirmed prior underreporting, with an average 9.2% uplift in tungsten grades. Invested in upgrading facilities and expanding the technical team to support the accelerated exploration and development programme. Post financial year-end, reported an ultra-high-grade intercept of 0.60m @ 18.96% WO₃ (22.09% WO₃.Eq), demonstrating the exceptional grade potential of the Redmoor Project. Confirmed discovery of a new mineralised structure ("North Tin Zone") outside the existing deposit, with intercepts including 4.00m @ 0.25% Sn. Announced updated JORC (2012) Inferred Mineral Resource Estimate of 17.4Mt @ 0.65% WO₃.Eq, representing a 49% increase in tonnage and contained metal - confirms status as Europe's highest grade undeveloped tungsten project. Delivered updated Economic Sensitivity Analysis indicating potential after-tax NPV(8%) of $1.54bn and IRR of 40%, highlighting a material improvement in project economics. Southern Minerals Group LLC ("SMG") Cobre magnetite stockpile, New Mexico, USA Cobre recorded its 3 rd highest annual ore sales in 14 years with 61,279 tons (2024: 70,658 tons) sold to a diversified customer base. Sales generated of approximately $4.23m (2024: $4.7m). Secured an extension of access to the Cobre magnetite operation's stockpile from 31 March 2027 to 31 March 2029. Leigh Creek Copper Mine Pty Ltd ("LCCM") Leigh Creek Copper Project, South Australia Signed a non-binding heads of agreement to grant a purchaser a call option to acquire LCCM, which was exercised. Company has received the first instalment of the initial payment. Board Changes Philip Haydn-Slater appointed as Non-Executive Director on 27 January 2025 Peter Wale retired from the Board on 24 March 2025 Charles Manners moved from Non-Executive Chairman to Executive Chairman on 12 August 2025 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 CONTENTS Page: 1 Chairman's report 4 Strategic report 15 Report of the directors 18 Statement of directors' responsibilities 19 Corporate governance statement 27 Audit committee report 29 Remuneration committee report 31 Independent auditor's report Consolidated statement of comprehensive income Consolidated statement of financial position Company statement of financial position Consolidated statement of cash flows Company statement of cash flows Consolidated statement of changes in equity Company statement of changes in equity 47 Notes forming part of the financial statements FORWARD-LOOKING STATEMENTS This Report and Financial Statements for the year ended 31 December 2025 ("Annual Report") contains 'forward-looking information', which may include, but is not limited to, statements with respect to the future financial and operating performance of Strategic Minerals Plc, its subsidiaries, production and exploration operations and affiliated companies, the future price of magnetite/iron ore, the estimation of mineral resources, the realisation of mineral resource estimates, costs of production, capital and exploration expenditures, costs and timing of the development of new deposits, costs and timing of the development of new mines, costs and timing of future exploration, requirements for additional capital, governmental regulation of mining operations and exploration operations, stockpile and tailings dam operations, timing and receipt of approvals, licenses, permits, conversions and ongoing approvals to operate exploration activities, stockpile and tailings dam operations under the United States of America, Australia and other applicable mineral legislation and environmental legislation, environmental risks, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'believes', or variations (including negative variations) of such words and phrases, or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of Strategic Minerals Plc and/or its subsidiaries, investment assets and/or its affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; stockpile processing/tailings dam operations; conclusions of economic evaluations and studies; fluctuations in the value of UK pounds sterling relative to the United States Dollar, Australian Dollar and other foreign currencies; changes in project parameters as plans continue to be refined; future prices of magnetite/iron ore; possible variations of ore grade or recovery rates; failure of plant, logistics providers, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; the effect of illness on labour force availability and turnover; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although Strategic Minerals Plc has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may well be other factors that cause actions, events or results to differ from those currently anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this Annual Report and Strategic Minerals Plc disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. ‌CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 2025 was a transformational year for the Company, in particular driven by developments at Cornwall Resources Limited ("CRL") and the Redmoor Tungsten-Tin-Copper Project, supported by strong operational performance and cash flow at the Cobre magnetite operation in New Mexico ("Cobre") and the start of realisation of value from exiting the Leigh Creek Copper Mines ("LCCM") asset in Australia. Together, the Company is well placed to realise underlying value and take a commanding position as a leading critical mineral developer going forward. Financial results The Company delivered significant share price appreciation in 2025, up 472% and one of the top performing companies listed on AIM. Cobre recorded its 3 rd highest annual ore sales in 14 years with 61,279 tons (2024: 70,658 tons) sold to a diversified customer base, generating sales of approximately $4.23m (2024: US$4.7m), and improved year-end cash balances of $0.78m. Post period financial events The Company raised £4.00m before expenses on 22 January 2026 at a price of 1.3p per new ordinary share of 0.1 pence each in the Company ("Ordinary Shares") and a further £4.7m before expenses on 19 March 2026 at a price of 3.5p per new Ordinary share, led by a prominent international investor. On 30 March 2026, it was announced that Gregory Coffey has joined the share register having acquired 3.34% of the Company. Cornwall Resources Limited Redmoor Tin-Tungsten-Copper Project During the year, the team at Redmoor continued to deliver on the strategy of upgrading the understanding of the ore body and potential economics, targeting a renewed Mineral Resource Estimate ("MRE") and Economic Sensitivity Analysis in Q1 2026. In detail, the team conducted the following activities: Secured £764,000 of UK Government grant funding from UK Shared Prosperity Fund which, together with matched funds from the Company's April 2025 placing, is enabling the programme to accelerate Redmoor towards pre-feasibility. 1 st drilling since 2018 commenced in June 2025 with 5,048.70m completed by December 2025, ahead of schedule, within budget, and with exceptional results including; o 1.10 m @ 7.19% WO 3 , 0.02% & 1.11% Cu (7.51% WO 3 .Eq) and 0.97m at 7.52 WO3, 0.03% Sn & 0.87% Cu (7.78% WO3.Eq), including one of the top 10 highest-grade sample results recorded at Redmoor from all previous drilling campaigns. Multiple mineralised intervals and wide zones of mineralisation within the Redmoor sheeted vein systems were identified, reinforcing Redmoor's status as one of the highest-grade undeveloped tungsten deposits globally; Re-analysis of historical samples confirmed previous underreporting of certain samples and an average 9.2% increase in tungsten grades, further solidifying Redmoor's position as Europe's highest-grade undeveloped tungsten deposit; Strategic Minerals Plc ("SML") invested in significantly upgrading facilities and capacity at the Redmoor project and hiring additional team members to support the programme. Post-period events included: Reporting an ultra-high-grade tungsten, tin, and copper sample intercept containing 0.60m @ 18.96% WO 3 , 2.76% Sn & 3.19% Cu for a tungsten equivalent grade of 22.09% WO 3 .Eq from 563.13 m. CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued) Confirmation of the discovery of a new, large, mineralised structure separate to the SVS deposit (the " North Tin Zone "), with a sample intersect of 4.00m @ 0.25% Sn, 0.01% Cu from 476.00m, including: 2.00m @ 0.40% Sn, 0.02% Cu & 0.00 WO3 (0.34% WO3.Eq) from 478.00 m. Announcement of updated JORC (2012) Inferred Mineral Resource Estimate of 17.4 Mt @ 0.65% WO 3 .Eq; Representing a 49% Increase in Tonnage and Contained Metals Increases. Confirms Redmoor at 0.49% WO 3 (0.65% WO3.Eq) is Europe's highest-grade, undeveloped, tungsten project compared to other CRIRSCO-compliant projects. Announcement of updated Economic Sensitivity Analysis Results in Standout Economics with Base Case Scenario of Potential After-Tax NPV(8%) of US$1.54bn and 40% IRR. Southern Minerals Group LLC Cobre Operations In 2025, Cobre continued to provide a stable and reliable source of revenue for the Group, building on the strong recovery in demand seen in 2024 following the return of its major client. Revenues remained robust, supported by consistent shipment volumes and disciplined management. The extension of access to the stockpile through to March 2029 continues to underpin the medium-term outlook for the operation and positions Cobre as a dependable cash-generating asset heading into 2026. The Company continues to consider ways of further increasing magnetite sales and consequently enhancing cash flow. Leigh Creek Copper Mine Pty Ltd Leigh Creek Copper Project In April 2025, the Company signed a non-binding heads of agreement with Axis Mining & Minerals Pty Ltd, which was subsequently novated to South Pacific Mineral Investments Pty Ltd trading as Cuprum Metals ("Cuprum"), based on the following conditions: The purchaser will make a non-refundable payment to Strategic Minerals of A$100,000 within 30 days (subsequently extended by 14 days) from 23 April 2025 (or such further period as may be agreed by the parties), for an exclusive call option to acquire 100% of LCCM (the "Call Option"). Under the Call Option, which is exercisable for a period of six months (or such longer period as may be agreed by the parties), the purchaser may elect to acquire 100% of LCCM for an initial payment to Strategic Minerals of A$1.9m in cash. The purchaser anticipates completing a listing on the Australian Securities Exchange upon which it will issue shares to Strategic Minerals equivalent to 19.9% of the listed vehicle up to a maximum value limit of A$3m. The purchaser will pay an earn-out to Strategic Minerals equivalent to A$4m to be paid on a half yearly basis from the commencement of commercial production at the Project with each half yearly payment to be the equivalent of 20% of net free cash flows from the prior period. The initial payment of A$100,000 was received by the Company, and Cuprum later exercised the Call Option on 22 December 2025. This resulted in the payment by Cuprum of a first instalment of A$150,000 being the initial instalment of the remaining cash payment as a minor variation to the terms. The balancing cash payment of A$1.75m will fall due on the completion of the Definitive Agreement, with the remainder of the terms remaining unchanged. The Company continues to engage with Cuprum to progress the transaction towards completion and realisation of value for the Leigh Creek Copper Project. CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued) Safety The Company has a strong focus on safety issues across all its operating subsidiaries and continues to maintain a high level of performance when it comes to safety. In 2025 there were no safety issues reported (2024: one minor). Conclusion We are looking forward to continuing to progress our clearly set out strategic goals in 2026. The Redmoor resource had been largely overlooked for too long, but this is no longer the case. We believe it is now widely recognised as one of the highest grade undeveloped tungsten projects in the world, and we will seek to use our now strong cash position, as well as potential sale proceeds from Leigh Creek and existing and hopefully enhanced positive cash flow from the Southern Minerals Group to advance Redmoor at an ever greater pace through a Pre-Feasibility study and on towards Production. I would like to take this opportunity to thank my fellow Directors, our management and staff in Cornwall, New Mexico, and South Australia, along with our advisers, for their support and hard and skilful work on our behalf during the year. Additionally, I would like to thank all of our investors, clients, contractors, suppliers and partners for their continued confidence and backing on this path to delivering a new world-class polymetallic tungsten mine in the UK. Charles Manners Executive Chairman 19 May 2026 ‌STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The Directors of the Company and its subsidiaries (which together comprise the Group) present their Strategic Report on the Group for the year ended 31 December 2025. Financial Performance The Company and the Group's reporting currency is US dollars reflecting that, previously, the Group's revenues, expenses, assets and liabilities were predominantly in US currency and, currently, the bulk of revenues continue to be sourced in US dollars. The Group recorded a profit before tax including discontinued operations of $0.467m (2024 profit: $1.996m). The Group undertook a Board restructuring and significantly increased its activities on its Redmoor Project, resulting in increased overheads during the period. Having grown significantly in the previous year, revenue declined 11% from $4.745m in 2024 to $4.231m in 2025. Alongside the ongoing profitable and cashflow generating magnetite sales activities in SMG, the primary exploration focus of the Group was on the Redmoor Project in Cornwall. $1.287m was spent on the project, after income of $0.791m from the UK Shared Prosperity Fund. Cash at the end of the year was $0.777m (2024: $0.621m). PROJECT REVIEW AND ACTIVITIES Cornwall Resources Limited - Redmoor Tungsten-Tin-Copper Project During 2025, the Company continued to execute its strategy of improving the understanding of the Redmoor orebody and advancing the economic case for development, targeting the delivery of an updated Mineral Resource Estimate ("MRE") and Economic Sensitivity Analysis in 2026. A key milestone in the year was the award of £764,000 in grant funding from the UK Government under the UK Shared Prosperity Fund ("SPF"), managed by Cornwall Council through the Cornwall and Isles of Scilly Good Growth Programme. This funding, matched by Company expenditure from the April 2025 placing, supported an accelerated programme of drilling and technical work aimed at progressing the Project towards pre-feasibility. Drilling recommenced in June 2025, representing the first drilling campaign at Redmoor since 2018. A total of 5,048.7 metres was completed by December 2025, ahead of schedule and within budget, delivering exceptional results. These included high-grade intercepts such as 1.10 metres at 7.19% WO₃, 0.02% Sn and 1.11% Cu (7.51% WO₃ equivalent), and 0.97 metres at 7.52% WO₃, 0.03% Sn and 0.87% Cu (7.78% WO₃ equivalent), including one of the highest-grade sample results recorded at Redmoor across all drilling campaigns. The drilling programme identified multiple mineralised intervals and wide zones of mineralisation within the Redmoor sheeted vein system, further reinforcing the project's status as one of the highest-grade undeveloped tungsten deposits in Europe. In addition, re-analysis of historical samples confirmed that certain tungsten grades had been previously underreported, with results indicating an average increase of approximately 9.2% in tungsten grades, further enhancing the overall quality of the resource base. To support this accelerated programme, the Company invested in upgrading facilities and expanding the technical team, ensuring capacity to deliver both the drilling campaign and associated technical studies. Subsequent to the period end, further significant results were reported, including an ultra-high-grade intercept of 0.60 metres at 18.96% WO₃, 2.76% Sn and 3.19% Cu (22.09% WO₃ equivalent), highlighting the exceptional grade potential within the system. In addition, the discovery of a new mineralised structure, the "North Tin Zone", confirmed further upside potential beyond the previously defined South Vein System, with intercepts including 4.00 metres at 0.25% Sn. These results contributed to the delivery of an updated JORC (2012) Inferred Mineral Resource Estimate of 17.4 million tonnes at 0.65% WO₃ equivalent, representing a 49% increase in tonnage and contained metals compared to the previous estimate. The updated resource confirms Redmoor, at approximately 0.49% WO₃ (0.65% WO₃ equivalent), as one of the highest-grade undeveloped tungsten projects in Europe among CRIRSCO-compliant projects. In parallel, an updated Economic Sensitivity Analysis demonstrated a substantial improvement in project economics relative to the 2020 scoping study, which had reported an after-tax NPV8 of $91m and an IRR of 23.4%. The updated analysis indicates a potential base case after-tax NPV (8%) of approximately US$1.54 billion and an IRR of 40%, reflecting the combined impact of increased resource scale, improved grades, enhanced metallurgical performance and stronger prevailing commodity prices. The Board considers that CRL continues to hold a significant and increasingly valuable asset. The scale, grade and improving technical and economic parameters of the Project, together with its location within the UK, provide a strong foundation for advancing Redmoor towards development for the benefit of stakeholders. Fig.1 - Exploration License Area Maps include location of Redmoor Project Fig.2 - Deposit Model Map - MRE 2026 - mineralisation distribution of Tungsten-dominant (red) and Tin-dominant (green) zones within the SVS mineralised envelope (gold) Cobre performance In 2025, Cobre continued to provide a stable and reliable source of revenue for the Group, building on the strong recovery in demand seen in 2024 following the return of its major client. Revenues remained robust, supported by consistent shipment volumes and disciplined management. STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued) The extension of access to the stockpile through to March 2029 continues to underpin the medium-term outlook for the operation and positions Cobre as a dependable cash-generating asset heading into 2026. Cobre continues to benefit from strong operational oversight under the leadership of Tim Klumker. The Board of Strategic Minerals also conducted an in-depth site visit in October 2025. SMG continues to have an exemplary safety record and has developed an enviable culture that reinforces the highest safety standards. In 2025, there were no safety incidents. Fig. 3 - View of Cobre resource and open pit under excavation Fig.4 - Beneficiation of magnetite on surface Fig.5 - Loading of Cobre product on the weighbridge in preparation for shipping Leigh Creek Copper Mine Pty Ltd ("LCCM") During 2025, the Company made tangible progress toward the monetisation of LCCM, following several years of permitting, technical work and engagement with potential counterparties. In April 2025, the Company signed a non-binding heads of agreement with Axis Mining & Minerals Pty Ltd, which was subsequently novated to South Pacific Mineral Investments Pty Ltd trading as Cuprum Metals ("Cuprum"), based on the following conditions: The purchaser will make a non-refundable payment to Strategic Minerals of A$100,000 within 30 days (subsequently extended by 14 days) from 23 April 2025 (or such further period as may be agreed by the parties), for an exclusive call option to acquire 100% of LCCM (the "Call Option"). Under the Call Option, which will be exercisable for a period of six months (or such longer period as may be agreed by the parties), the purchaser may elect to acquire 100% of LCCM for an initial payment to Strategic Minerals of A$1.9m in cash. The purchaser anticipates completing a listing on the Australian Securities Exchange upon which it will issue shares to Strategic Minerals equivalent to 19.9% of the listed vehicle up to a maximum value limit of A$3m. The purchaser will pay an earn-out to Strategic Minerals equivalent to A$4mto be paid on a half yearly basis from the commencement of commercial production at the Project with each half yearly payment to be the equivalent of 20% of net free cash flows from the prior period. Cuprum exercised the Call Option by 18 June 2025 and subsequently paid a first instalment of A$150,000 of the initial payment as a minor variation to the terms. The Company continues to engage with Cuprum to progress the transaction towards completion and realisation of value. LCCM has three approved Mining Leases that cover a number of copper oxide deposits, including Lorna Doone, Lynda, Mountain of Light (Rosmann East and Paltridge North) and the Mount Coffin deposit. All the Mineral Resources are contained within the Mining Leases. They contain a JORC 2012 total resource of 3.61mt @ 0.69% copper for 24,900 of contained copper metal which forms the base of the project and includes the following resource category breakdown. STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued) Inferred Indicated Total Resource Deposit Tonnes Copper Grade Tonnes Copper Grade Tonnes Copper Grade Copper Metal (tonnes) Paltridge North 41,000 0.49% 879,000 0.82% 920,000 0.81% 7,400 Lynda - - 1,349,000 0.65% 1,349,000 0.65% 8,800 Lorna Doone 66,000 0.68% 1,280,000 0.65% 1,346,000 0.65% 8,700 Total 107,000 0.61% 3,508,000 0.69% 3,615,000 0.69% 24,900 An existing heap leach and Kennecott cone-based copper processing facility is located at the Mountain of Light deposit (adjacent to Rosmann East and nearby Paltridge North) and was successfully operated for a short period in 2019 to test its capacity to resume full time operations. Fig. 6 - Tailings ponds and existing infrastructure The region around the project has excellent infrastructure with a modern town (Leigh Creek), sealed airstrip, sealed and all-weather roads, power and water utilities. Fig. 7 - Existing mill infrastructure In addition to the Mining Leases, two approved Exploration Leases, covering an area of 686km² in the northern Flinders Ranges, are included in the project. These provide excellent opportunities for exploration of new copper oxide resources. Safety There were no safety incidents in 2025 (2024: one minor). Board Changes Name Position Appointment Date Resignation Date Charles Manners* Executive Chairman 1 September 2024 Mark Burnett Executive Director 1 September 2024 Philip Haydn- Slater Non-Executive Director 27 January 2025 Peter Wale Executive Director 24 March 2025 * Charles Manners was appointed as Non-Executive Director on 1 September 2024 and subsequently appointed as Executive Chairman on 12 August 2025. * Mark Burnett was appointed as Non-Executive Director on 1 September 2024 and subsequently as Executive Director on 14 November 2024. Key Risks and Uncertainties The management of the business and the execution of the Group's strategy are subject to a number of risks. The Group regularly reviews the principal risks and uncertainties that the business faces and assesses appropriate responses to mitigate and, where possible, eliminate potential adverse impact. There is the possibility that if more than one event occurs, that the overall effect of such events would compound the possible adverse effects on the Group. Our principal risks and uncertainties are as follows: Commodity prices and currency risk Although the Group's main income stream at Cobre is focused on localised markets, which minimises the impact of global commodity prices, the value of its development projects can still be subject to changes in global commodity prices. Fluctuations in commodity markets are affected by numerous factors beyond the Group's control, including global demand and supply, international economic trends, currency exchange fluctuations, STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued) expectations for inflation, speculative activity, consumption patterns and global or regional political events. The aggregate effect of these factors is impossible to predict. Fluctuations in commodity prices, over the long term, may adversely impact the returns of the Group's investments. The Group monitors commodity prices and structures its portfolio of assets with commodities that are likely to appreciate in the medium to long term. The Group reports its results in US Dollars, whilst the functional currency of the parent company from which the Group derives most of its funding is Pound Sterling. Fluctuations in exchange rates between currencies in which the Group invest, reports, or derives income may cause fluctuations in its financial results that are not necessarily related to the Group's underlying operations. The Group converts funds to a currency in which funds will be utilised on an as needed basis. Funding risk The Group requires funds, both to manage its working capital requirements and fund new and existing projects, as the Group seeks to grow. If the Group is not able to obtain sufficient financial resources, it may not be able to develop new and existing projects. There can be no assurance that such funds will continue to be available on reasonable terms, or at all in the future. The Directors regularly review cash flow expenditure requirements, and the cash flow generated from its Cobre operation to ensure the Company and Group can meet financial obligations as and when they fall due. Since the year end, the Group has successfully raised £8.7m (approx $12.0m), significantly reducing the funding risk for the foreseeable future. Funds are expected to allow for the completion of and expanded resource and Pre Feasibility Study at the Redmoor project. Reserve and resource risk The mineral reserve and resource relating to CRL are only estimates and no assurance can be given that the estimated reserves and resources will be recovered or that they will be recovered at the rates estimated. Reserve and resource estimates are based on sampling and, consequently, are uncertain because the samples may not be representative. Reserve and resource estimates may require revision (up or down) based on future actual production experience. The discovery of mineral deposits is dependent upon a number of factors including the technical skill of the exploration personnel involved. The commercial viability of a mineral deposit, once discovered, is also dependent upon several factors, including the size, grade and proximity to infrastructure, metal prices and government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals, and environmental protection. There can be no guarantee that a mineral deposit will be economically viable. The Group undertakes studies in order to mitigate this risk. Licence and Permitting risk The exploration, developing and mining of resources is, usually, governed by licensing and permitting requirements issued, generally, by governments. These normally cover limited periods, and risk may be attached to whether governments permit these periods to be extended or institute "new" conditions on their usage. While this is true for all resource projects it has significant application to SML's primary pre-production asset, namely Redmoor. The current exploration and evaluation work is reliant on the CRL maintaining the necessary licences and permits in good standing and meeting all obligation set out under them. Ultimately, a mining licence will need to be obtained. However, for the present, the principal focus is on the current fully funded project activities including drilling and the Pre-Feasibility Study. The Group are in advanced discussions relating to the sale of LCCM - The PEPR permitting process provides risk, both to costs and timing of projects. While the PEPR for mining copper oxide material from Paltridge North is unconditional, at the time of writing, the variation to encapsulate the transitional ore expected at the bottom of the planned Paltridge North pit has also been submitted and is pending approval. There is also a need for a PEPR for the Lynda/Lorna Doone deposit. Allowance for these undertakings is reflected in our internal plans and valuations, but it is acknowledged that risks to the overall projects value may arise from variations to expectations around the granting of these PEPRs. Customer risk The level of profitability of the Group is currently dependant on the performance of the Group's Cobre operation in the United States. The Cobre operation has several major customers and should one or more of these customers choose to not to purchase product it may have a substantial impact on the performance of the Group. The Group continues to look for additional customers at Cobre to address this risk and in addition will develop other projects such as Redmoor to reduce the risk of dependence on any one customer or project. Operational and Environmental risk Mining operations are subject to hazards normally encountered in exploration, development, and production. These include unexpected geological formations, rock falls, flooding, dam wall failure and other incidents or conditions which could result in damage to plant or equipment, people, or the environment and which could impact any future production throughput. Although it is intended to take adequate precautions to minimise risk, there is a possibility of a material adverse impact on the Group's operations and its financial results. The Group will develop and maintain policies appropriate to the stage of development of its various projects. In 2020, as a safeguard to both our clients and staff, amendments were made to operational procedures to ensure that delivery of material was contactless. These procedures have continued as standard practice. Strategic risk Significant and increasing competition exists for mineral acquisition opportunities throughout the world. As a result of this competition, the Group may be unable to acquire rights to exploit additional revenue generative assets such as Cobre and attractive mining development properties such as Redmoor and LCCM on terms it considers acceptable. Accordingly, there can be no assurance that the Group will acquire any interest in additional operations that would yield reserves or result in commercial mining operations. The Group expects to undertake sufficient due diligence to help ensure opportunities are subjected to proper evaluation. Uninsurable risk The Group may become subject to liability for accidents, pollution, and other hazards against which it cannot insure or against which it may elect not to insure because of prohibitive premium costs or for other reasons, such as amounts which exceed policy limits. Product risk The Group has a contract for access to magnetite iron ore at the Cobre operation until March 2029. There is a risk that the supplier may terminate the agreement, after this time, in which case the Group would no longer have product to sell. The Group's proactive approach in securing access for the coming years has minimised the impact this risk may have on future operations and the Group's management actively engages with its supplier throughout the year to proactively address any concerns that the supplier may raise. Dependence on key personnel risk The Group and Company are dependent upon the executive and local management teams. Whilst it has entered into contractual agreements with the aim of securing the services of these personnel, the retention of their services cannot be guaranteed. The development and success of the Group depends on the Company's ability to recruit and retain high quality and experienced staff. The loss of the service of key personnel or the inability to attract additional qualified personnel as the Group grows could have an adverse effect on future business and financial conditions. The Group incentivises executives and management with market-based remuneration packages, short term and long-term incentive schemes. Climate Change Risk While climate change considerations can seriously impact resource companies, the Group considers that there is little downside risk from these considerations, given the metals and minerals in its portfolio, and that these climate change considerations are likely to impact positively on commodity prices for both copper and tin. Ongoing War Risk The ongoing Russia- Ukraine and Middle East conflicts continue to raise the possibility of a global conflict. To date, these actions have generally positively impacted on resource prices relevant to SML. However, there is risk, STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued) that global economic growth may be severely curtailed, and this would, ultimately, have a negative impact on the demand for resources. Key Performance Indicators The Board monitors the activities and performance of the Group on a regular basis. The principal KPI's monitored by the Group are sales of product from Cobre, the cash position of the Group, the investment in project activities, the progress of the primary exploration and evaluation asset (the Redmoor Project), the share price of the Group and the health, safety, and environmental incidents of the Group. The sales of product at Cobre were 11% lower in 2025 than in 2024, in part due to the 10-day shut down during H1 resulting from the New Mexico wildfires. Revenue in 2025 was $4.231m (2024: $4.745m). The cash position of the Group as of 31 December 2025 was $0.777m which increased from $0.621m from the previous year. Broadly speaking, cash generated from the Cobre project covered the working capital requirements of the wider group and also contributed towards the exploration and evaluation work on the Redmoor project, which was largely funded through the funds raised during the year, along with the SPF Grant funding. Subsequent to the year end the Group has raised significant additional funds (approx.$12.0m) to continue to advance the Redmoor project. The share price of the Company increased significantly during the year from 0.25p at the start of the year to 1.43p at 31 December 2025, a 472% increase. At the Redmoor project, a significant drilling campaign was undertaken during 2025 and into 2026, with the maiden MRE on track to be completed in Q1 2026. The Group had no health and safety or environmental incidents during the year, (2024: one minor health and safety). Strategy The principal strategy for the Company is the advancement and development of critical mineral assets in the UK, supported by cash flow generation from its US asset base, while generating long-term value for shareholders. Outlook and Prospects The Company is committed to the advancement of the Redmoor Tungsten-Tin-Copper project in Cornwall, UK as a world-class critical minerals project. Robust price performance for critical minerals in 2025, notably tungsten, provide a strong foundation as the Company moves toward completing a pre-feasibility study. The Company's overheads continue to be supported by cash flow generation from the Cobre mangnetite stockpile operation in New Mexico, USA. The Company is also committed to executing a sale of LCCM. The Group will continue its policy, since the arrival of the current Board members, of maintaining control of its overheads. The Board will also look to reduce costs by simplifying the group structure, especially by focussed on a reduction in the number of Australian subsidiaries. Directors' section 172 statement Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Directors continue to have regard to the interests of the Company's employees and other stakeholders, the impact of its activities on the community, the environment and the Company's reputation for good business conduct, when making decisions. In this context, acting in good faith and fairly, the Directors consider what is most likely to promote the success of the Company for its members in the long term. We explain in this annual report, and referenced below, how the Board engages with stakeholders. Likely consequence of any decision in the long term The Chairman's Statement, Strategic Report Business Strategy and the Corporate Governance Statement set out the Company's long-term rationale and strategy. Interests of employees The Employee section of the Company's Corporate Governance Statement sets out the Company's approach to the interests of its employees. The Board ensures that the Company's workforce is treated in a manner consistent with its core values of integrity, safety, and responsible stewardship of natural resources. This is monitored through regular reporting from operational management, review of health, safety and wellbeing metrics, and direct engagement with personnel across the Company's sites in Cornwall, New Mexico and Australia. The Board reviews the operation of these arrangements annually and confirms that no material concerns were raised during the year ended 31 December 2025. Foster business relationships with suppliers, customers, and others The Company's approach to business relationships with stakeholders and shareholders are set out in the Company's Corporate Governance Statement. Community and environment The Company's approach to the community is set out in the Corporate Governance Statement. Maintain high standards of business conduct The Corporate Governance Statement sets out the Board and Committee structures and extensive Board and Committee meetings held during 2025, together with the experience of executive management and the Board and the Company's policies and procedures. Act fairly between shareholders The Corporate Governance Statement sets out the process the Company follows to ensure it all shareholder interests are preserved and enhanced. Principal Decisions made by the Board We define principal decisions as both those that have long-term strategic impact and are material to the Group, but also those that are significant to our key stakeholder groups. In making the following principal decisions, the Board considered the outcome from its stakeholder engagement, the need to maintain a reputation for high standards of business conduct and the need to act fairly between the members of the Company: Progression of Redmoor Tungsten-Tin-Copper Project The Board continues to focus its attention on developing the Redmoor Tin-Tungsten-Copper project. During 2025 the Group undertook a significant drill campaign on the project which concluded in Q1 2026 with the completion of a Mineral Resource Estimate and Economic Sensitivity Analysis. Commitment to sale of Leigh Creek Throughout 2025, the Board has concentrated its efforts to sell LCCM. While the Board is confident that LCCM will be sold, management chose to fully impair the value of the LCCM asset at 31 December 2024, and the asset continues to be impaired. Cuprum, the proposed buyer of the assets, exercised its option in December 2025, and both parties continue to work towards completion of the sale in H1 2026. Limiting of dilution in line with investment in value added project progression The Board has adopted a policy of seeking to minimise shareholder dilution as much as possible and to, generally, ensure that the bulk of funds raised are for value added purposes/projects. This has been achieved in 2025 through the use of the UK Government Grant matching over £750k of expenditure on the Redmoor project. Since the year end, the Board have successfully raised funding for the next phase of work at Redmoor, namely the completion of additional infill drilling and a pre-feasibility study, at increasing higher placing prices. Commitment to funding operating costs from Cobre cash flows The Board has adopted a long running strategic objective to maintain corporate overheads within after-tax cash flow generated from its Cobre operations. In this manner, any dilutive equity issues are directed at, potentially, valuable accretive investments to progress projects. STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 (continued) In making the above principal decisions, the Directors believe that they have considered all relevant stakeholders, potential impact and conflicts, the Company's business model and its long-term strategic objectives, and have acted accordingly to promote the success of the Company for the benefit of its members as a whole. The Strategic Report was approved and authorised for issue by the Board of Directors and was signed on its behalf by: Mark Burnett Executive Director 19 May 2026 FOR THE YEAR ENDED 31 DECEMBER 2025 The Directors present their report and the audited financial statements for Strategic Minerals Plc ("the Company") and its wholly owned subsidiaries ("the Group") for the year ended 31 December 2025. PRINCIPAL ACTIVITIES, BUSINESS REVIEW AND FUTURE DEVELOPMENTS The Company is a public limited company registered in the UK whose registered office is 27/28 Eastcastle Street, London, W1W 8DH. The principal activity of the Company is a holding company. The principal activity of the Group is the exploration, development, and operation of mining projects. A review of the Group's business during the financial year and its likely development is given in the preceding Chairman's Report and Strategic Report. RESULTS AND DIVIDENDS The Group recorded a loss after taxation for the year of $0.148m (2024 profit: $1.305m). The Directors do not propose to recommend any distribution by way of dividend for the year ended 31 December 2025. DIRECTORS The Directors who served the Company during the period and to the date of this report were as follows: Current Directors Mark Burnett Charles Manners Philip Haydn-Slater (appointed 27 January 2025) Peter Wale (resigned 24 March 2025) DIRECTORS' INTERESTS IN SHARES AND OPTIONS The persons who held office during the year or at the year-end had the following interests in share capital and options of the Company as detailed below. Director Shares held at 31 December 2025 Shares held 31 December 2024 Charles Manners 100,000,000 97,358,191 Mark Burnett - - Philip Haydn-Slater 5,000,000 - Peter Wale - 80,767,266 Director Options held at 31 December 2025 Options held 31 December 2024 Charles Manners 50,000,000 - Mark Burnett 70,000,000 - Philip Haydn-Slater - - Peter Wale - - REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2025 ( continued) DIRECTORS' REMUNERATION AND SERVICE CONTRACTS Under their respective service contracts, the officers of the Company received fees as detailed in the Directors' Remuneration table in Note 6. SHARE CAPITAL Strategic Minerals Plc is incorporated as a public limited company and is registered in England and Wales with the registered number 07440902. Details of the Parent Company's issued share capital, together with details of the movements during the year, are shown in Note 19. The Parent Company has one class of Ordinary Share and all shares have equal voting rights and rank pari passu for the distribution of dividends and repayment of capital. The total issued share capital of the Company at 31 December 2025 comprised 2,369,297,949 ordinary shares of 0.10p each, with one voting right per share. The Company does not hold any ordinary shares in treasury. The total number of ordinary shares and voting rights in the Company was therefore 2,369,297,949 at 31 December 2025. SUBSTANTIAL SHAREHOLDERS As at 15 May 2026 shareholdings of 3% or more of the issued share capital notified to the Company were: Number of 0.1p ordinary shares Percentage of issued share capital Charles and Alexandra Manners 100,000,000 3.55 Gregory John Coffey 94,285,713 3.34 Based on the total issued share capital of 2,818,775,969 at 15 May 2026. POLITICAL CONTRIBUTIONS There were no political contributions made by the Group during the year ended 31 December 2025 (2024: Nil). INFORMATION TO SHAREHOLDERS - WEBSITE The Company has its own website ( https://www.strategicminerals.net ) for the purposes of improving information flow to shareholders, as well as to potential investors. GOING CONCERN The Directors have considered the Company's and Group's ability to continue as a going concern through review of cash flow forecasts prepared by management for a period of 12 months from the date of signing this report and a review of the key assumptions on which these are based and sensitivity analysis. In January and March 2026, the Company raised gross proceeds of approximately £8.7m (approx. $12.0m) principally to advance the Redmoor Project through a Pre-Feasibility Study. As a result, the Group is fully funded for all planned activities for a period in excess of 12 months from the date of signing this report, and therefore the Directors do not consider there to be any going concern issues. Consequently, the financial statements have been prepared on a going concern basis. INDEMNITY OF OFFICERS The Company currently maintains insurance to cover against legal action brought against its directors and officers. It evaluates on the appointment of new directors whether an indemnity from the Company for the actions of previous directors is warranted. However, the Company may purchase and maintain, for any Director or officer, insurance against any liability in the near future pending the evolution and complexity of any further new projects undertaken by the Group. FOR THE YEAR ENDED 31 DECEMBER 2025 ( continued) FINANCIAL RISK MANAGEMENT Refer to Note 3 to the financial statements for further details. RESEARCH AND DEVELOPMENT The Redmoor R&D project seeks to further develop and understand the geology of economically viable resources of contained tungsten, tin and copper in the area of Kelly Bray, Cornwall, and to develop the associated technologies required to extract them. Ongoing activities have expanded to CRL's wider mineral rights license area, including the Tamar Valley License Area (licensed in April 2024), to research and understand the wider mineral potential of the area and the project's environmental baselines. STREAMLINED ENERGY & CARBON REPORTING (SECR) The Company has consumed less than 40,000 kWh of energy during the financial year. As a low energy user, detailed information regarding our energy consumption, emissions, and energy efficiency measures is not included in this report. AUDITORS Moore Kingston Smith LLP were appointed as auditors of the Company for the financial year. A resolution to reappoint Moore Kingston Smith LLP will be put to the shareholders at the next Annual General Meeting. EVENTS AFTER THE END OF THE REPORTING PERIOD Refer to Note 27 to the financial statements for further details. PUBLICATION OF ACCOUNTS ON COMPANY WEBSITE Financial statements are published on the Company's website. The maintenance and integrity of the website is the responsibility of the Directors. The Directors' responsibility also extends to the financial statements contained therein. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the Directors, at the time of approval of their report, are aware: there is no relevant audit information of which the Company's auditors are unaware; and the Directors have taken all steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. By order of the Board Mark Burnett Executive Director 19 May 2026 STATEMENT OF DIRECTORS' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2025 Directors' responsibilities The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors are required to prepare the Group and Company financial statements in accordance with UK adopted International Accounting Standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company and of the profit or loss of the group and company for that period. In preparing these financial statements, the Directors are required to: select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are reasonable and prudent; state whether they have been prepared in accordance with UK adopted International Accounting Standards subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Company will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Website publication The Directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are published on the Company's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein. CORPORATE GOVERNANCE STATEMENT Board of Directors The aim of the Board is to function at the head of the Group's management structures, leading and controlling its activities and setting a strategy for enhancing shareholder value. Regular meetings are held to review the Group's forward planning. The Board currently consists of an Executive Chairman, an Executive Director, and a Non-Executive Director. The Directors recognise the importance of sound corporate governance commensurate with the size and nature of the Company and the interests of its shareholders and have adopted The QCA Corporate Governance Code (the "QCA Code"). The QCA Code's application to the Company, as outlined in its corporate governance statements and disclosures, involves adhering to its principles while considering various expectations, and explaining any deviations from these principles. This supports the Company's medium to long-term success by promoting transparency, accountability, and strong governance practices, which in turn builds investor confidence and fosters a sustainable business environment. In addition to the details provided below, governance disclosures can be found at the Company's website at https://www.strategicminerals.net . Principle 1: Establish a purpose, strategy and business model which promote long-term value for shareholders The Board has developed and enunciated a strategy and business model as detailed on the Company's website at https://www.strategicminerals.net . The principal growth strategy for the Company is the advancement and development of critical mineral assets in the UK, supported by sustainable cash flow generation from its US asset base. The Board considers the Company's strategy provides a framework for medium to longer term growth in shareholder value. The major risks to the Company's overall strategy stem from the potential failure to maintain access to the Cobre magnetite stockpile and overextending its cash requirements. In relation to cash flow management of the Company, the Directors closely monitor existing and expected cash flow resources and plans for committing these to project development and covering of corporate overheads. In addition, the Board regularly is in contact with market participants to ensure that sufficient interest and awareness is maintained in the market and that the Company can, generally, raise funding as required. A consideration of broader risks of the Company can also be found at pages 10 to 12 of this report and the financial instruments Note 3 of these financial statements. The Company's corporate purpose is to create sustainable long-term value for shareholders by responsibly discovering, developing and monetising critical mineral assets, with a particular focus on tungsten, tin and other strategic minerals essential to the green transition and digital economy. This purpose underpins the Board's strategic decisions and the Company's business model, and guides how the Company engages with its employees, host communities and other stakeholders. Principle 2: Promote a corporate culture that is based on ethical values and behaviours The Directors recognise that their decisions regarding strategy and risk will impact the corporate culture of the Company as a whole and that this will impact the performance of the Company. The Board seeks to embody and promote a corporate culture that is based on sound ethical values as it believes the tone and culture set by the Board impacts all aspects of the Company, including the way that employees and other stakeholders behave. The Company has adopted a code for Directors' and employees' dealings in securities which is appropriate for a company whose securities are traded on AIM and is in accordance with the requirements of the Market Abuse Regulation which came into effect in 2016. The Code sets out the circumstances and procedures by which shares can be bought and sold and is supplied to all persons discharging managerial duties. The formation of the Safety Committee and the way options are allocated to Directors and key management/consultants has created a team environment in which the running of the Company is aligned with medium to longer term shareholder goals. The Board monitors the Company's culture through regular reporting from operational management, review of safety and wellbeing metrics, and direct engagement with personnel across the Company's sites in Cornwall, New Mexico and Australia. The Board is satisfied that the Company's workforce is treated in a manner consistent with its values of integrity, safety, and responsible stewardship of natural resources. These measures enable the Company to determine that ethical values and behaviours are recognised and respected. The Board monitors culture through regular operational reporting, one-to-one discussions with management and direct engagement with personnel at all operating sites. Where any behaviour is identified as falling short of the Company's values, the Board addresses this promptly through appropriate management action. The Company operates an open-door reporting policy and is developing a formal whistleblower framework to allow employees and consultants to raise concerns in confidence. The Board will keep these arrangements under review as the Company's workforce and operations expand. Principle 3: Seek to understand and meet shareholder needs and expectations As the Company is involved in the mining industry, the Board is highly cognisant of its responsibility not only to shareholders but in the broader community. As such, it has adopted a policy to ensure adequate community consultation is undertaken in the areas where we operate. Notably, in New Mexico USA, Cornwall UK and Leigh Creek Australia, communication with local residents and active involvement in the community has been encouraged. Additionally, the Company has a policy to, where possible, employ local residents when undertaking operations. To date, this has proven highly successful with all locations recording either none or extremely low levels of community dissent. Environmental & Climate-Related Responsibilities: The Board recognises that climate change and environmental stewardship are material considerations for the Company's long-term strategy, particularly given the nature of its mineral assets and operations. Although the Company is at a pre-production stage for its flagship Redmoor project, the Board incorporates environmental planning into its development framework and expects that the Pre-Feasibility Study for Redmoor will include assessment of climate-related risks and opportunities, energy consumption, carbon footprint, and environmental permitting requirements. The Board will continue to develop its approach to climate-related disclosures as the Company advances towards production, including the publication of a Sustainability Report. Shareholder input and communication has been actively sought by the Board through direct contact with shareholders at both the Annual General Meeting, shareholder information evenings (sometimes combined with the Annual General Meeting), monitoring of social media platforms, regular RNS releases and direct one on one meetings with larger investors. At all times, due regard is given to the price sensitive nature of comments. All shareholders are encouraged to attend the Company's Annual General Meeting and investors have access to current information on the Company through its website and via the [email protected] email address. At this stage, the principal environmental and social disclosures are contained in the Strategic Report, including the Company's approach to health and safety, community engagement and environmental stewardship at each of its assets. As the Company's operations develop, the Board are targeting more comprehensive quantitative ESG disclosure, including the preparation of its first comprehensive Sustainability Report. Principle 4: Take into account wider stakeholder interests, including social and environmental responsibilities, and their implications for long-term success The management of the business and the execution of the Group's strategy are subject to a number of risks. The Group regularly reviews the principal risks that face the business and assesses appropriate responses to mitigate and, where possible, eliminate potential adverse impact. The Board is constantly undertaking a review of risk and, as a mining company, has adopted and engendered a safety culture within the Group to ensure that personnel safety is considered above financial reward. The Board obtains assurance over the effectiveness of its risk management and internal control arrangements through review of management accounts and financial reporting at each board meeting, direct oversight by the Audit Committee of financial reporting and audit findings, and operational reporting from site management at Cobre and from the Cornwall Resources team. Given the size of the Company, the Board does not consider it proportionate to maintain a formal internal audit function at this stage, but will keep this position under review as the Company's operations expand. Information in relation to the Key Risks and Uncertainties that are relevant to the Group are set on page 10-12 of this report. The Board recognises that its employees and site-based consultants are fundamental to operational delivery and that their engagement, safety and wellbeing are material to the long-term success of the business. The Company maintains direct communication with all site personnel and encourages open reporting of safety or conduct concerns. Environmental responsibilities, including land stewardship, regulatory permitting and climate-related risks, are embedded in the Company's project development planning, and will be published as part of its upcoming Sustainability Report. The Board will continue to develop its approach to formal stakeholder mapping and reporting on environmental and social matters as the Company grows. The Board currently has one independent non-executive director and acknowledges the need for greater independent representation within its members. It is committed to keeping its composition under active review and intends to seek to strengthen its independent non-executive representation as the Company's resources and operational complexity increase. The Board is also aware of the expectations of diversity characteristics and will incorporate these considerations into any future director recruitment process. Board Committees The Board has established separate sub-committees for Audit, Remuneration and Safety. Given the composition of the Board and the size of the Company, it is felt a separate Nomination Committee is not yet warranted. However, as the Company's operations expand, the Board will monitor this aspect of operations and will respond accordingly. The Board collectively undertakes the function of such a committee and where conflicts arise the Directors exclude themselves from voting on such matters. Further information on the Company's Audit, Remuneration, and Safety Committees and their policies are set out under Principle 9 below. Member details of the committees as at the date of this report are: Members Remuneration Safety Committee Committee Audit Committee Charles Manners - Executive Chairman Member Member Chair Mark Burnett - Executive Director Chair Member Philip Haydn-Slater - Non-Executive Director Chair Principle 5: Embed effective risk management, internal controls and assurance activities, considering both opportunities and threats, throughout the organisation There are currently three (3) Board Directors (one of which is non-executive) and the Board considers that, at this time, this is appropriate to the Company's current level of operations, although this is reviewed formally at least annually. The Board is considered well balanced in that: Charles Manners - Executive Chairman (appointed Non-Executive Chairman 1 September 2024, then as Executive Chairman 12 August 2025). Mr Manners has been the largest shareholder in SML for a number of years. He worked in investment banking from 1985 until 2009, latterly as a Senior Managing Director and Head of Fixed Income Sales at Nomura International PLC. From 2009 to 2016, he was a co-founder and partner in an advisory firm, focussed on tailored structured solutions. He was a Non-Executive Director of Asset Trust Housing Association Limited, a regulated provider of affordable shared ownership housing, and is a Director and Chairman of the Board of Campden Charities. In addition, he is an extensive investor, focussed primarily on natural resources, healthcare and real estate. Mark Burnett - Executive Director (appointed as Non-Executive Director 1 September 2024 then as Executive Director 15 November 2024). Mr Burnett is Director of Mining Investments at RAB Capital, a leading mining specialist investor in London, with over 10 years investing and corporate finance experience in extractive industries across North America, Australia and Europe. He is has held a number of Non-Executive and Interim-Chair roles in listed companies throughout the crucial minerals industry, operating in Africa and the USA. Philip Haydn-Slater - Independent Non-Executive Director (appointed 25 January 2025). Mr Haydn-Slater has significant public and private company exposure, covering corporate finance, investments, and Board positions of publicly listed companies. He is currently the Non-Executive Chairman of Riverfort Global Opportunities PLC. He was previously Non-Executive Director of RA International PLC, as well as ASX Listed ADX Energy Ltd and Sacgasco Ltd. All Directors are encouraged to use their independent judgement and to challenge all matters, whether strategic or operational. Role of the Chairman The Chairman's role is multifaceted, encompassing leadership, effective board functioning, communication, and oversight of governance practices. He is responsible for leading the board, setting agendas, facilitating discussions, and ensuring all board members have a voice. The chair also acts as a key communicator, representing the board to stakeholders and shareholders. He oversees the board's performance, including annual reviews, and is responsible for setting high governance standards. Attendance at Board and Committee Meetings The Board aims to meet at least eight times a year and as required from time to time to consider specific issues required for decision by the Board. The Company held nine Board meetings and several sub-committee meetings during the reporting period and the number of meetings attended by each of the Directors of the Company during the year to 31 December 2025 is listed below. The Directors attended all Board meetings and committee meetings that they were eligible and required to attend, except Mr Peter Wale who did not attend two Board meetings. Director Board Meetings Remuneratio n Committee Audit Committee Safety Committee M Burnett Executive Director 4 1 - 1 C Manners Executive Chairman 4 2 2 1 P Haydn-Slater Non-Executive Director 4 2 - - P Wale Executive Director (resigned 24 March 2025) - - - - Directors' conflict of interest The Company has effective procedures in place to monitor and deal with conflicts of interest. The Board is aware of the other commitments and interests of its Directors, and changes to these commitments and interests are reported to and, where appropriate, agreed with the rest of the Board. Time Commitment of Directors. All current Directors are remunerated on a fixed fee basis. Directors are also eligible for the award of share options. Principle 6: Establish and maintain the board as a well-functioning, balanced team led by the chair Biographies for the Directors can be found in the 'Board of Directors and Corporate Management' section of the company website at https://www.strategicminerals.net/ . The Board is not dominated by one person or group of people. The Board undertakes regular reviews of its capacity to guide the Company in seeking to implement the Company's strategy. The Board also reviews periodically the appropriateness and opportunity for continuing professional development whether formal or informal. Independent advice All Directors are able to take independent professional advice in the furtherance of their duties, if necessary, at the Company's expense. In addition, the Directors have direct access to the advice and services of the Company Secretary, Chief Financial Officer, and the Company's Nominated Adviser, lawyers and auditors. Re-election of Directors The Board notes a recommendation that all directors stand for re-election at each Annual General Meeting. The Board has considered this recommendation but has determined that, at this stage of the Company's development, it will continue to follow the rotation provisions set out in its Articles of Association, under which executive directors are not subject to annual re-election. Accordingly, only one Non-Executive Director, will stand for re-election at the forthcoming AGM. The Board will keep this position under review. Principle 7: Maintain appropriate governance structures and ensure that individually and collectively the directors have the necessary up-to-date experience, skills and capabilities Given the size of the Company and the small but critical nature of the roles of the Directors, formal board performance measures have not been independently developed. The Company relies upon the market and shareholder feedback to assess the Board's performance. The Board acknowledges that, given its small size, the temporary or permanent departure of any director would place material additional demands on the remaining directors. In the event of unplanned absence, the Board has discussed and agreed informal cover arrangements to ensure continuity of decision-making and regulatory compliance. Principle 8: Evaluate board performance based on clear and relevant objectives, seeking continuous improvement The Directors recognise that their decisions regarding strategy and risk will impact the corporate culture of the Company as a whole and that this will impact the performance of the Company. The Board seeks to embody and promote a corporate culture that is based on sound ethical values as it believes the tone and culture set by the Board impacts all aspects of the Company, including the way that employees and other stakeholders behave. The Company has adopted a code for Directors' and employees' dealings in securities which is appropriate for a company whose securities are traded on AIM and is in accordance with the requirements of the Market Abuse Regulation which came into effect in 2016. The Code sets out the circumstances and procedures by which shares can be bought and sold and is supplied to all persons discharging managerial duties. The formation of the Safety Committee and the way options are allocated to Directors and key management/consultants has created a team environment in which the running of the Company is aligned with medium to longer term shareholder goals. The Board monitors the Company's culture through regular reporting from operational management, review of safety and wellbeing metrics, and direct engagement with personnel across the Company's sites in Cornwall, New Mexico and Australia. The Board is satisfied that the Company's workforce is treated in a manner consistent with its values of integrity, safety, and responsible stewardship of natural resources. These measures enable the Company to determine that ethical values and behaviours are recognised and respected. Principle 9: Establish a remuneration policy which is supportive of long-term value creation and the company's purpose, strategy and culture As a resource development company, the Board considers that the crucial governance structures and processes revolve around Safety, Audit and Remuneration. Safety Committee Safety is a critical matter, particularly given the capacity for harm to employees and consultants. The purpose of the Safety Committee is to ensure that our vision, to provide a safe workplace where no harm comes to anyone, is applied at all of the Company's locations and that a culture of safety purveys throughout the organisation. The Company believes that all reasonable efforts should be undertaken to ensure incidents are prevented, management have ultimate accountability for health and safety but everyone on site has a responsibility to ensure no one comes to harm and employees have the responsibility to stop any job or activity they believe is unsafe and could cause harm to people. The Safety Committee attempts to monitor, and report to the full Board, on the achievement of the Company in devoting the necessary resources needed to create a working environment, both physically and supervisorial, in which our people and others under our influence and control can work without sustaining injury or suffering ill health; ensuring no business target takes priority over health and safety; using risk assessments to identify hazards and unsafe behaviours and introduce actions to reduce the risk to acceptable levels; investigating and reporting all accidents and dangerous occurrences and preventing future incidents; setting safety targets with the aim of preventing incidents and accidents and communicate the performance to all employees; ensuring all employees are competent to carry out the tasks assigned to them by providing the relevant information, instruction, training and supervision required; encouraging everyone to contribute to working safely and preventing accidents; designing, constructing, operating and maintaining all equipment, buildings and structures to ensure a safe operation; and comply with all current legislation and codes of practice. Audit Committee The purpose of the Audit Committee is to provide formal and transparent arrangements for considering how to apply the financial reporting and internal control principles set out in the QCA Code and to maintain an appropriate relationship with the Company's auditors. The key terms are as follows: to monitor the integrity of the financial statements of the Company and Group, and any formal announcement relating to the Company's performance; to monitor the effectiveness of the external audit process and make recommendations to the Board in relation to the appointment, re-appointment and remuneration of the external auditors; to keep under review the relationship with the external auditors including (but not limited to) their independence and objectivity; to keep under review the effectiveness of the Company's financial reporting and internal control policies and systems; to review key judgements and estimates relating to the impairment assessment of project assets - LCCM, CRL; and to assess the ability of the Company and Group to continue as a going concern. Further details of Board committees are given under Principle 4 above. Remuneration Committee The Committee has adopted a remuneration policy designed to attract, retain and motivate directors and senior management of the calibre required to deliver the Company's strategy, while aligning their interests with those of shareholders and avoiding remuneration structures that incentivise excessive risk-taking. The Remuneration Committee reviews the remuneration policy annually and makes recommendations to the full board. The Board is aware of the recommendation for an advisory vote on the Directors' remuneration report at the Annual General Meeting but has determined not to adopt it at this time. The Company has not historically provided for such a vote and, given the current size and stage of development of the Company, does not consider it proportionate to do so. The Board will keep this position under review. Securities Trading The Company has adopted a share dealing code for dealings in shares by Directors and senior employees which is compliant with the Market Abuse Regulation (EU) No 596/2014 ("MAR") and appropriate for an AIM company. The Directors will comply with MAR and AIM Rule 21 relating to dealings and will take all reasonable steps to ensure compliance by persons discharging managerial responsibility ("PDMR") and persons closely associated with them. Suitability of governance structures The Board intends that the Company's governance structures evolve over time in parallel with its objectives, strategy and business model to reflect the development of the Company. Principle 10: Communicate how the company is governed and is performing by maintaining a dialogue with shareholders and other key stakeholders The Directors believe a healthy dialogue exists between the Board, the Company's shareholders and other stakeholders. The Board regularly has reports on shareholder feedback through summary of social media comments, and undertakes site visits, shareholder webinars and customer visits throughout the year. In addition, all shareholders are encouraged to attend the Company's Annual General Meeting. The outcomes of all shareholder votes are disclosed in a clear and transparent manner via a regulatory information service, such as RNS of the London Stock Exchange. The Company's website includes historical annual reports, notices of general meetings and RNS announcements over the last five years. The Company lists contact details on its website and on all announcements released via RNS, should shareholders wish to communicate with the Board. The Company will include, when relevant, in its annual report, any matters of note arising from the Audit or Remuneration Committees. The key governance developments during the year ended 31 December 2025 include the appointment of Philip Haydn-Slater as Independent Non-Executive Director in January 2025, the transition of Charles Manners to Executive Chairman in August 2025 and the Company's adoption of the 2023 QCA Code. The Board is cognisant of growing investor expectations around sustainability reporting and intends to develop its disclosures progressively. A Sustainability Report will soon be published at which point the Board will be in a position to provide more structured reporting on climate-related risks, energy use and environmental impact. EXTERNAL AUDITOR During the year the Board met with the auditor to discuss the audit process and the matters the auditor identified during the audit. The Board will continue to meet with the auditor at least twice a year to consider the results, internal procedures and controls and matters raised by the auditor. The Board considers auditor independence and objectivity and the effectiveness of the audit process. It also considers the nature and extent of the non-audit services supplied by the auditor reviewing the ratio of audit to non-audit fees and ensures that an appropriate relationship is maintained between the Group and its external auditor. The current auditor has not supplied any non-audit services. The Group controls the provision of non-audit services by the external auditor in order that their objectivity and independence are safeguarded and approved of the non-audit services provided by the external auditors. As part of the decision to recommend the appointment of the external auditor, the Board considers the tenure of the auditor in addition to the results of its review of the effectiveness of the external auditor and considers whether there should be a full tender process. There are no contractual obligations restricting the Board's choice of external auditor. Moore Kingston Smith LLP were appointed as auditors of the Company for the financial year. A resolution to reappoint Moore Kingston Smith LLP will be put to the shareholders at the next Annual General Meeting. AUDIT COMMITTEE REPORT This report addresses the responsibilities, the membership, and the activities of the Audit Committee in 2025 and up to the approval of the 2025 Annual Report and 2025 year-end financial statements. Responsibilities The main responsibilities of the Audit Committee are to: monitor the integrity of the financial statements of the Company and Group, and any formal announcement relating to the Company's performance; monitor the effectiveness of the external audit process and make recommendations to the Board in relation to the appointment, re-appointment and remuneration of the external auditors; keep under review the relationship with the external auditors including (but not limited to) their independence and objectivity; keep under review the effectiveness of the Company's financial reporting and internal control policies and systems; review key judgements and estimates relating to the impairment assessment of project assets - LCCM, CRL; and assess the ability of the Company and Group to continue as a going concern. Membership Members of the Audit Committee: Charles Manners (Chairman) Mark Burnett Activities in 2025 With regard to the 2025 year-end audit, the Audit Committee has reviewed the following key audit matters: Going Concern The Directors have considered the Company's and Group's ability to continue as a going concern through review of cash flow forecasts prepared by management for a period of 12 months from the date of signing this report and a review of the key assumptions on which these are based and sensitivity analysis. In January and March 2026, the Company raised £8.7m (approx. $12.0m) principally to advance the Redmoor Project through a Pre-Feasibility Study. As a result, the Group is fully funded for all planned activities for a period in excess of 12 months from the date of signing this report, and therefore the Directors do not consider there to be any going concern issues. Consequently, the financial statements have been prepared on a going concern basis. Impairment Assessments The Committee has reviewed the judgements surrounding the impairment assessments required under IAS36 for LCCM and IFRS6 for Central Australian Rare Earths Pty Ltd ("CARE") and CRL. CARE: The Group reduced the carrying amount of the asset to nil in 2019 recognising an impairment loss. During 2021 all tenements were relinquished to the Western Australian government. CRL: The Redmoor Project is an early-stage exploration project. The Audit Committee is satisfied that results from exploration activity provide sufficient evidence of the continued prospectivity of the asset. Accordingly, no impairment indicators have been identified. LCCM: The Board continue to progress a sale of the LCCM project, and in December 2025 the proposed purchaser, Cuprum Metals Pty Ltd, exercised its call option on the project. Both parties continue to work towards a completion of this sale by 31 May 2026, however the Directors note that there can be no guarantee that the sale will be concluded. As the lack of definitive sale agreement is a significant indicator of the ongoing impairment for the LCCM project, the Group has continued to maintain the carrying amount of the asset at nil and has expensed any expenditure on the project during the year, amounting to $189k. COBRE: The Property Plant and Equipment and Right to Use Assets have been assessed for impairment. These assets are being depreciated/amortised in accordance with their estimated useful life or lease term. No impairment indicators have been identified. Conclusion In 2026 and beyond, the Audit Committee will continue to adopt the new reporting and regulatory requirements and ensure that the system of internal controls is both maintained and regularly reviewed for improvement. The Audit Committee will also continue to review group assets for triggers that may indicate impairment and closely monitor the financial risks faced by the business and progress made towards mitigating these. For and on behalf of the Audit Committee Charles Manners Chair of Audit Committee 19 May 2026 REMUNERATION COMMITTEE REPORT This remuneration report has been prepared by the Remuneration Committee and approved by the Board. The report for 2025 sets out the details of remuneration for the Directors and discloses the amounts paid during the year. Membership Members of the of the Remuneration Committee are Philip Haydn-Slater (Chair) and Charles Manners. Other Directors are invited to attend as appropriate provided they do not have a conflict of interest. The aim of the Remuneration Committee is to attract, retain and motivate the executive management of the Company and to offer the opportunity for employees to participate in share option schemes to incentivize employees to enhance shareholder value. Director Remuneration (audited) Remuneration for Directors who held office during the year is as follows: 2025 Directors' Salary and fees Consultancy fees Total 2025 2025 2025 $'000 $'000 $'000 C Manners 49 - 49 M Burnett 49 - 49 P Haydn-Slater 54 - 54 J Peters - 54 54 P Wale 68 - 68 Total 220 54 274 2024 Directors' Salary and fees Consultancy fees Total 2024 2024 2024 $'000 $'000 $'000 C Manners 10 - 10 M Burnett 10 - 10 A Broome 6 30 36 J Peters 11 44 55 P Wale* 41 - 41 Total 78 74 152 Details of other Director-related party transactions are detailed at Note 25. J Peters resigned on 15 November 2024. Payments made in 2025 relate to termination benefits. P Wale resigned on 24 March 2025. Payments include salary to that date and termination benefits. It should be noted that the Directors of the Company, since becoming Directors, have not sold any shares as at the date of this report. During the year the following share options were issued to Directors: Director Number of shares under Option Exercise price per Option share Option expiry M Burnett Executive Director 70,000,000 0.4 pence 15 August 2035 C Manners Chairman 50,000,000 0.4 pence 15 August 2035 Each option may only be exercised under the following conditions: Proportion of Option Shares Date on which Option Shares become exercisable 50% Upon share price trading above 0.5p per share for 30-day VWAP 50% Upon publication of a new Mineral Resource Estimate Director Remuneration Policy Going forward into 2026 and beyond, the Committee and I will remain focused on ensuring that reward at the Company continues to be closely aligned with the delivery of long-term shareholder value. For and on behalf of the Remuneration Committee Philip Haydn-Slater Chair of Remuneration Committee 19 May 2026 FOR THE YEAR ENDED 31 DECEMBER 2025 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STRATEGIC MINERALS PLC Opinion We have audited the Group financial statements of Strategic Minerals Plc (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the Consolidated and Company Statements of Cash Flows, the Consolidated and Company Statements of Changes in Equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted International Accounting Standards. In our opinion: the financial statements give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 31 December 2025 and of the Group's loss for the year then ended; the Group financial statements have been properly prepared in accordance with UK adopted International Accounting Standards; the Parent Company financial statements have been properly prepared in accordance with UK adopted International Accounting Standards and as applied in accordance with the provisions of the Companies Act 2006; and the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. An overview of the scope of our audit Our audit approach was a risk-based approach founded on a thorough understanding of the Group's business, its environment and risk profile. We conducted substantive audit procedures and evaluated the Group's internal control environment. We also addressed the risk of management override of internal controls, including assessing whether there was evidence of bias by the directors that may have represented a risk of material misstatement. The components of the Group were evaluated by the group audit engagement team based on a measure of materiality, considering each component as a percentage of the group's total assets, current assets, revenue and gross profit. Any significant risks at component level which impacted the group financial statements were also considered. This allowed the group audit engagement team to determine which components should be subject to a full scope audit approach or a specified audit procedures approach. This was determined based on their relative materiality to the group and our assessment of the level of audit risk. For components requiring a full scope audit approach, we evaluated controls by performing walkthroughs over the financial reporting systems identified as part of our risk assessment, reviewed the accounts production process and addressed critical accounting matters. We then undertook substantive testing on significant transactions and material account balances. In order to address the audit risks in respect of the Group and Company financial statements identified during our planning procedures, we performed a full scope audit of the financial statements of the parent company. For the purpose of expressing our opinion on the Group financial statements, we also performed a full scope audit of the financial information of Southern Minerals Group LLC, Cornwall Resources Limited and Leigh Creek Copper Mine Pty Ltd. We performed analytical procedures on the remaining components, which were individually immaterial but collectively covered residual group risk. All work was carried out by the group audit engagement team. We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant findings, including any significant deficiencies in internal controls that we identified during the audit. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. Audit Matter Procedures Valuation of Exploration and Evaluation assets (Group) Refer to page 49 (Accounting policy) and pages 68 and 69 (note 9 Intangible assets). As at 31 December 2025 the Group held exploration and evaluation assets with a carrying value of $7.572m (2024: $5.901m). Management has performed an impairment review of exploration and evaluation assets and concluded that no further impairment is required. The assessment of the recoverable amount of the exploration and evaluation assets required significant judgements and estimates to be made by management. The carrying value of the Group's exploration and evaluation assets was therefore considered to be a key audit matter . Our audit work included, but was not restricted to, the following procedures: We critically assessed management's summary of the IFRS 6 project assets including the projected expenditure for each tenement. We confirmed that the Group has valid title to the applicable exploration licences and has fulfilled any specific conditions therein particularly having regard to minimum expenditure requirements. We critically assessed and substantively tested capitalised exploration and evaluation expenditure including consideration of its appropriateness for capitalisation under IFRS 6. We critically assessed the progress of the Redmoor project during the year and post year-end. We considered management's impairment reviews in the light of any impairment indicators identified in accordance with IFRS 6, including corroboration and challenge thereof. We reviewed the appropriateness and adequacy of the disclosures in the financial statements. Based on our procedures performed we are satisfied that there was no impairment of exploration and evaluation assets in the year. We consider the disclosures in the financial statements relating to this area to be adequate. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STRATEGIC MINERALS PLC (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 Valuation of investments and recoverability of loans made to subsidiary undertakings (Parent Company) Refer to pages 49 and 50 (Accounting policy) and pages 70 and 71 (note 10 Investments). At 31 December 2025 the value of investments and loans to subsidiary undertakings in the company financial statements was $4.350m (2024: $4.523m) and $2.819m (2024: $1.431m) respectively. Management has assessed the carrying value of investments and recoverability of loans made to subsidiary undertakings including the application of the expected credit loss ('ECL') model under IFRS 9. In making this assessment, management makes several significant judgements. These include determining appropriate assumptions for calculating the loss allowance under IFRS 9 (including probability of default and loss given default) and cash flow forecasts. As a result, errors or deliberate manipulation of these determining factors could result in material misstatement of the parent company financial statements. Consequently, it was considered to be a key audit matter. Our audit work included, but was not restricted to, the following procedures: We gained an understanding of the interactions between Strategic Minerals Plc and its subsidiaries particularly in respect of their performance throughout the year. We assessed how settlement can be achieved, first by comparing the cumulative carrying value of the investments and loans made to subsidiary undertakings to their respective net assets and by assessing each subsidiary's cash flow forecasts. We critically assessed management's assessment that loans due from group undertakings should be accounted for in accordance with IFRS 9 and are not within the scope of IAS 27. We critically assessed the recoverability of loans due from group undertakings in respect of expected credit losses (ECL) in accordance with IFRS 9. We critically assessed the reasonableness of management's allocation of loans to the various stages under IFRS 9 including an assessment of management's definition of significant increase in credit risk and of default. We critically assessed the accounting policy and detailed disclosures in the financial statements to determine whether information provided in the financial statements is compliant with the requirements of IFRS 9. We reviewed the appropriateness and adequacy of the disclosures in the financial statements. Based on our audit work performed we have not identified any material misstatement in the valuation of investments and loans to subsidiary undertakings. We consider the disclosures in the financial statements relating to this area to be adequate. Going concern Refer to note 1 on page 47 in the consolidated financial statements. Our audit work included, but was not restricted to, the procedures detailed in the 'Conclusions relating to going concern' section in our report: The Group incurred a post tax loss of $0.148m for the year (including discontinued operations) (2024: $1.305m profit) and has net current liabilities of $0.544m (2024: $1.061m) disclosed in the Consolidated Statement of Financial Position at 31 December 2025. Based on our audit work performed we have not identified any material uncertainties relating to events or conditions that individually or collectively may cast significant doubt on the Company's and Group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. The directors have prepared a cashflow forecast that show that the Company and Group will be able to meet their ongoing liabilities as they fall due for at least twelve months from the date of approval of these financial statements. We consider the disclosures in the financial statements relating to this area to be adequate. Our application of materiality The scope and focus of our audit were influenced by our assessment and application of materiality. We define materiality as the magnitude of misstatement that could reasonably be expected to influence the readers and the economic decisions of the users of the financial statements. We use materiality to determine the scope of our audit and the nature, timing, and extent of our audit procedures and to evaluate the effect of misstatements, both individually and on the financial statements as a whole. We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. Based on our professional judgement we determined materiality for the financial statements as a whole and performance materiality as follows: Group financial statements Materiality $98,000 Basis for determining materiality Gross assets Rationale for the benchmark applied The group is an asset-b...

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