31 December 2025 Annual Report

Annual Report

20 25 Empowering the European energy transition

Vulcan's annual reporting suite

Overview

This Annual Report (Report) forms part of the Company's Annual Reporting Suite for the period 1 January 2025 to 31 December 2025. The Annual Reporting Suite includes the Annual Report, Sustainability Report, Group Management Report (Konzernlagebericht) and Corporate Governance Statement. The Annual Report covers Vulcan's operations, including those under exploration, development and execution and those operated through subsidiaries, as well as our strategic approach to sustainability.

The Annual Reporting Suite includes our updated Sustainability Report for 1 January 2025 to 31 December 2025, developed with reference to industry standards. The Company is committed to transparent and robust sustainability reporting and intends to progressively align its disclosures with frameworks that align with stakeholder expectations. The sustainability data provided in this Report has not been externally assured.

Vulcan is dual listed on the Australian Securities Exchange (ASX), and the regulated market of the Frankfurt Stock Exchange (FSE), in the Prime Standard market segment. Consistent with the regulatory and reporting obligations of the FSE, Vulcan's Annual Reporting Suite also includes the Group Management Report (Konzernlagebericht). The Konzernlagebericht has been prepared in accordance with the Deutscher Rechnungslegungs Standard Nr. 20 (DRS 20).

All references to Vulcan Energy Resources, Vulcan, the Company, Vulcan Group, or the Group are in reference to Vulcan Energy Resources Ltd (ABN 38 624 223 132) and its subsidiaries.

All information and references in this Report are related to the full financial year, 1 January 2025 to 31 December 2025, unless otherwise stated.

For further information, please contact info@v-er.eu or visit https://www.v-er.eu.

Currency references

Currency is expressed in Euros (€) unless otherwise stated. An average AUD/EUR exchange rate of 0.57 has been used in the Annual Reporting Suite for the financial year ended 31 December 2025.

Forward-looking statements

This Report contains certain forward-looking statements. Often, but not always, forward-looking statements may be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "plan", "estimate", "target", "propose", "anticipate", "continue", "outlook" and "guidance", or other similar words.

By their nature, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements to be materially greater or less than estimated, including those generally associated with the lithium industry and/or resources exploration companies. Any such forward-looking statements, opinions and estimates in this Report (including any statements about market and industry trends) are based on assumptions and contingencies, all of which are subject to change without notice, and may ultimately prove to be materially incorrect. Forward-looking statements are provided as a general guide only and should not be relied upon as, and are not, an indication or guarantee of future performance.

Neither Vulcan nor any of its directors, officers, agents, consultants, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions, forward-looking statements and conclusions contained in this Report.

Definition of sustainable lithium

Vulcan Energy defines "sustainable lithium" as lithium produced to enable the clean energy transition using processes designed to significantly reduce environmental and social impacts when compared with legacy methods of lithium extraction.

Vulcan's use of the term "sustainable lithium" is grounded in intentional design choices across the entire process flowsheet to drive a more sustainable outcome, including using Adsorption-type Direct Lithium Extraction (A-DLE) technology with lithium-rich brine and Vulcan's closed-loop process, which significantly reduces water use. This is combined with renewable geothermal energy that lowers reliance on fossil fuels and substantially reduces carbon emissions. Vulcan's method is efficient, avoids tailings, produces less waste, and results in minimal land disturbance with reduced impacts on native habitats.

Sustainable lithium also provides local co-benefits such as renewable heat supply and employment for the community, supported by lower-impact, transparent and responsible supply chains. While no industrial activity is entirely impact-free, this approach aims to deliver materially lower impacts across the life cycle.

Approval

This Report has been approved for release by the Board of Directors.

Contents

About Vulcan 4

Our location 6

Chair's message 9

CEO's message 10

2025 key achievements 12

Operating review 14

Corporate update 20

Sustainability update 23

Directors' report 24

Remuneration report 34

Auditor's independence declaration 63

Financial statements 64

Independent auditor's report 148

ASX additional information 153

Appendix 158

Corporate directory 161

Acknowledgement of Country

We acknowledge the traditional custodians of the land on which Vulcan's Australian office is situated, the Whadjuk-Noongar people. Vulcan recognises their continuing connection to this country and pays respect to elders, past and present. Vulcan operates principally in the Upper Rhine Valley of Germany and France, an area of rich cultural heritage and local peoples. Vulcan cherishes this cultural inheritance and takes all steps necessary to preserve and protect cultural heritage in its operations.

‌About Vulcan

Vulcan Energy (ASX: VUL, FSE: VUL) is building the world's first integrated carbon neutral lithium and renewable energy business to decarbonise battery production. Located in the Upper Rhine Valley Brine Field between Germany and France, Vulcan's Lionheart Project (Lionheart) is a lighthouse project for Europe's energy and critical raw material resilience.

Lithium is to be extracted from low impurity geothermal subsurface brines using Vulcan's industry-leading VULSORB® technology. Naturally heated, the brine powers production and conversion of lithium to battery-quality material by creating a renewable energy co-product for use in operations, with surplus sold into the local energy market. This integration, technology and favourable brine chemistry collectively enables one of the lowest cost lithium operations globally.

Extraction isonly the starting point for Vulcan. The Company has reimagined mining using innovation to integrate and capture more of the value chain. The Company has made its positive Final Investment Decision on Lionheart, construction is underway, offtake contracted and further phases of production are in planning.

For more information, please go to https://www.v-er.eu.

OUR PURPOSE

We will empower a carbon neutral future

OUR MISSION

Becoming Europe's leading sustainable lithium business and enabling energy security through geothermal energy.

VULCAN'S FIVE-YEAR STRATEGIC OBJECTIVES

Vulcan refreshed its corporate strategy in late 2025 which sets a focused, execution-ready plan to transition the business from development and financing into fully integrated commercial operations. The strategy is guided by clear five-year objectives that define what Vulcan must deliver to execute the Lionheart Project, secure long-term financial sustainability, drive growth and uphold its foundational commitments to strong sustainability and stakeholder value. Together, these objectives create a clear pathway for scaling operations and strengthening the organisation for long-term success.

Deliver Lionheart Project

• Project execution

  • HSEQ

  • Operational

Secure & maintain financial sustainability

• Financial

• Compliance & legal

  Deliver growth

• Strategic growth

  • Technology

    Differentiate through strong sustainability

  • Environmental

• Social & community

  • Reputational

  • Governance IT/OT

    Deliver on commitments to stakeholders

    • Customers

    • Government

      • Investors

OUR VALUES

CLIMATE CHAMPION

We will empower a carbon neutral future.

We stand up for what truly matters.

DETERMINED

We are eager to succeed and determined to shape tomorrow.

We tackle any challenge in front of us.

INSPIRING

We are united in our passion for a better world.

We rise and inspire ourselves and others.

Vulcan's Value Recognition program highlights exceptional employee achievements. Team members who demonstrate the Company's core values receive special awards, helping to reinforce a positive company culture.

OneVulcan award winners

VULCAN ENERGY ANNUAL REPORT | 2025 5

‌Our location

The Upper Rhine Valley Brine Field (URVBF) is a brine-producing geothermal field which

contains a globally significant tier one lithium resource. Vulcan's project within the URVBF includes a global total Resource Estimate of

29.1 million tonnes (Mt) of contained lithium carbonate equivalent (LCE)1.

Vulcan's flagship Lionheart Project (Lionheart) is located within the centre of the URVBF, where Vulcan now has five existing geothermal wells, four of which are in operation already, with plans to add more to increase production as part of the Lionheart development.

In addition to high lithium grades, the URVBF's geothermal brine reservoir is capable of generating baseload renewable heat. The process of pumping brine to the surface at a geothermal plant generates renewable heat which can be used by Vulcan or sold directly. Alternatively, the renewable heat can be used to produce electricity for consumption by the Company.

The location of the Company's integrated lithium and renewable energy project, in the heart of Europe's automotive and battery industry, gives Lionheart the advantage of short transport distances to European product markets.

Upper Rhine Valley

Vulcan holds 17 lithium and geothermal licence areas in the URVBF, for a total secured licence area of 2,408km². The significant scale of Vulcan's resource creates an opportunity to significantly grow production in a phased manner beyond Lionheart.

1 The 29.1Mt LCE global total lithium Resource is comprised of 2.1 Mt LCE of Measured Resource @ 181 mg/l Li, 9.7 Mt LCE of Indicated Resource @ 177 mg/l Li and 17.3 Mt LCE of Inferred Resource @174mg/l Li. See the Competent Person Statement contained in the Appendix and the Key Risks in Appendix 3 of the Investor Presentation dated 3 December 2025 regarding the risks associated with resource exploration and development projects for further information.

Rhine River

20km Frankfurt

Multiple phases: Höchst CLP

Downstream LHM production Permitted for capacity beyond Lionheart

Future phases: Ludwigshafen

Heat offtake partnership

Lionheart: Landau G-LEP and wells

GERMANY

Future Phase: Mannheim

Heat offtake with MVV

Karlsruhe

Vulcan head office and Vulcan Labs

FRANCE

Strasbourg

Rhine River

Licence areas for Vulcan's Lionheart Project and beyond

LEGEND

Licence

Lionheart Licence

Ludwigshafen Licence Mannheim Licence

Buntsandstein reservoir Rotliegend reservoir

Figure 1: Overview map of Vulcan's licence areas in the Upper Rhine Valley Brine Field bordering Germany and France.

The Company is building an integrated renewable energy and lithium production business using naturally heated lithium brine and converting it into carbon-neutral lithium chemicals - the initial end product of which is V-LiON™, Vulcan's carbon neutral lithium hydroxide product, and a core component in electric vehicle (EV) batteries.

Global lithium production is currently CO2intensive. V-LiON™ has been designed as a solution to this problem. Vulcan's proprietary, high-performance lithium adsorbent technology, VULSORB®, combined with a renewable heat source, allows for highly efficient, low cost, high purity and carbon neutral lithium chloride (LiCl) production. This intermediate material can be converted to high purity lithium hydroxide monohydrate (LHM) that is suitable for use in high performance EV batteries. This product is called V-LiON™.

Production of V-LiON™ is targeted to have the lowest carbon footprint of any lithium production globally by using Vulcan's integrated brine to battery solution.

Chair's message

Dr Francis Wedin

Executive Chair

‌Dear Shareholders,

On behalf of the Board of Directors, I am pleased to present Vulcan Energy's 2025 Annual Report.

2025 will be remembered as a defining year for Vulcan. After securing a world-leading €2.2 billion (A$3.9 billion) project financing package - and subsequent positive Final Investment Decision (FID) by the Vulcan Board - the Company officially transitioned from the project development to the project construction phase.

Importantly, construction is now underway, with a groundbreaking ceremony at the Company's commercial Geothermal-Lithium Extraction Plant (G-LEP) in Landau taking place days after financing agreements were signed. Vulcan has gone from start-up - a mere whiteboard idea - to offtake, financing, FID and start of construction, in just 7.5 years: a momentous achievement in our industry. The speed of progress remains swift, and we intend to maintain this work ethic and momentum over the coming year and beyond.

This milestone was the culmination of many years of hard work and determination by our team, capably led by Managing Director and CEO, Cris Moreno, and the expertise of our leadership team across Australia and Germany. Vulcan has a strong, motivated team, getting stronger by the day as recruitment continues in parallel with start of construction.

A lighthouse project for Europe, Lionheart is intended to position Vulcan as a key enabler of Europe's battery and electric vehicle value chain and a climate champion, delivering highly competitive lithium and renewable energy from Europe, for Europe. In unstable geopolitical times, with supply chain

security for the automotive and battery industries being front of mind, there has arguably never been a better time to build a critical raw materials project in Germany and Europe. This was evidenced by the ca. €1.4 billion of public-backed funding across debt, equity and grants which formed part of the Phase One Project financing package, and the incredibly strong vocal support across all sides of politics which we continue to be very grateful for. We believe these tailwinds will continue as supply for locally manufactured, carbon neutral and low-cost lithium products continues to be tight in the years ahead.

With financing secured, a strong executive team, healthy lithium market and significant geopolitical tailwinds, your Company enters 2026 in a strong position. As a Board, we will continue to apply the strongest governance as we progress through this new phase, and look forward to another transformative year ahead. Step by step, we are moving closer to full commercial production.

On behalf of the Vulcan Board of Directors, I extend my sincere, heartfelt thanks to our shareholders and other stakeholders for their continued and unwavering support. The Vulcan team have entered the new year with strong momentum and clarity of purpose. We are more determined than ever to deliver on the objectives of Lionheart and deliver value to shareholders.

Dr Francis Wedin

Executive Chair

CEO's message

Cris Moreno

Managing Director and CEO

‌Dear Vulcan Shareholders,

2025 stands as the most transformative chapter in Vulcan Energy's short history; a year when our collective vision, ambition and commitment yielded exceptional progress.

It was the year when our flagship Lionheart Project - the first of many targeted phases - progressed from development stage into construction phase, with shovels in the ground a matter of days following the announcement of our financing package.

The €2.2 billion package - almost $4 billion - has been funded through a combination of strategic equity investments, government grants, debt and equity. Securing the financing package also enabled the Vulcan Board to take a Final Investment Decision (FID) on Lionheart. FID was the culmination of many milestones over the last few years, and a brilliant way to conclude the reporting period.

Safety is embedded into every facet of our culture, and pleasingly, our health and safety record over the period reflects this level of focus. When we prioritise safety, we protect our people, strengthen operational reliability, and build confidence with our shareholders and stakeholders.

Safe operations are productive operations, and they remain central to our day-to-day life at Vulcan.

During the reporting period, the Company recorded One Lost-Time Injury (LTI) - equal to that of the prior year -and we continue to progress through the execution phase of Lionheart, this commitment will become even more important given the increased number of personnel at our sites and plants.

We began the year by successfully producing battery quality lithium hydroxide monohydrate (LHM) at our Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt. The material was made using high purity lithium chloride extracted from geothermal brine at our upstream Lithium Extraction Optimisation Plant (LEOP) in Landau. This achievement marks the first time Europe has produced fully integrated, battery quality lithium - from raw brine feedstock through to final chemical product - using a domestic and secure supply chain.

Vulcan was also announced as a Strategic Project under the EU's Critical Raw Materials Act (CRMA). The European Commission assessed 170 applications on technical, financial, ESG, and UN resource classification criteria, with Lionheart recognised as aligning with the CRMA's goal of strengthening Europe's secure, sustainable supply of critical raw materials.

Operationally, we commenced drilling at the Company's first new geothermal lithium well at the Schleidberg well site near Landau, marking the start of our subsurface execution program for Lionheart. We were already operating four wells in the area, with this new well representing the fifth in our Lionheart Project Field Development Plan.

We also secured our final offtake partner for Lionheart, Glencore - one of the world's largest natural resource and trading companies. The binding lithium offtake agreement will supply Glencore with 36,000-44,000 tonnes of battery quality LHM over an initial eight-year term. Glencore joins Stellantis, Umicore and LG Energy Solution as Vulcan's phase one offtake partners, all with a European focus.

2025 has built incredible momentum, and the foundation has been laid for success as we deliver Lionheart in the coming years. Every milestone gets us closer to delivering Europe's most competitive and sustainable lithium project.

We will remain steadfast in our focus to deliver excellence in our execution of Lionheart, and will continue our commitment to effective processes and controls, including tight cost controls.

I would like to thank the OneVulcan community - my fellow Directors, OneVulcan team and contractors, partners and local communities in which we operate - for the unwavering support of Lionheart. Your championing of this project has enabled us to reach this important stage, and we remain confident in our future success.

Finally, to our shareholders - thank you. Your trust empowers us to execute our strategy with confidence and to build a stronger, more sustainable future.

Cris Moreno

Managing Director and CEO

‌2025 key achievements

JAN

Production of battery-quality LHM, the first fully integrated production of battery-quality lithium chemicals in Europe, from resource to final product

MAR

Lionheart awarded Strategic Project status under the European Commission's Critical Raw Materials Act (CRMA)

MAY

Vulcan's 100%-owned drilling subsidiary, Vercana, commenced drilling the first new well for Lionheart at the Schleidberg well site near Landau, Germany - the fifth well in the project area

Jan Feb Mar Apr May Jun

FEB

Start of execution works on Lionheart, with mobilisation of the V20 drilling rig (V20) to the Schleidberg well site near Landau, Germany

APR

Completion of upstream lithium and renewable energy asset consolidation following the acquisition of Geox

JUN

Building permit approval received for the 30MW geothermal renewable energy plant and electrical substation that form

part of Lionheart

Heat offtake agreement signed with German municipal energy supplier, EnergieSüdwest

AG (ESW), for the supply of geothermal renewable heat

Named the Winner of the 2025 Australian Financial Review (AFR) Sustainability Leaders Award in the Resources, Energy & Utilities

category

2025 key achievements

JULY

Successful completion of an updated lithium brine Resource estimation, together with a maiden geothermal energy Resource estimation for the Mannheim licence area in Germany's URVBF

€30 million (~A$53.6 million) strategic placement to BNP Paribas' Clean Energy Solutions Fund and a select group

of strategic corporate and institutional investors

Approval of two grants totalling up to ~€104m (~A$186m) by the German Federal Government and the states of Rhineland-Palatinate and Hesse

SEP

Major contracts for Lionheart signed with NORAM Electrolysis Systems (NESI) and Turboden and ROM Technik

Secured permit to build and operate the Central Lithium Plant (CLP) for Lionheart and to produce battery-quality LHM at Industrial Park Höchst, Frankfurt

Secured approval to purchase the land for the G-LEP after the City of Landau Council voted in favour of the acquisition

NOV

Permit secured to build the upstream LEP for Lionheart in Landau, with all major construction permits now received

ABB appointed as the Main Electrical Contractor (MEC) partner for the LEP, CLP and well sites

Strong drilling performance and positive subsurface results from the LSC-1 vertical well

in the Lionheart Field Development Plan (FDP)

Jul Aug Sep Oct Nov Dec

OCT

Signing of binding lithium offtake agreement with Glencore, one of the world's largest natural resource and trading companies, to provide battery-quality LHM

from Lionheart

Full details of all FY25 achievements can be found at Announcements -

Vulcan Energy Resources

Australian company, JordProxa, awarded as technology and equipment partner for the lithium purification, concentration and conversion process for Lionheart

DEC

Secured a comprehensive €2.2 billion ($3.9 billion) financing package to fund the construction and development of Lionheart, including positive Final Investment Decision (FID) by the Board

Commenced construction of Lionheart by laying the foundation stone at the G-LEP site in Landau

Signed key supply contract with a Sedgman and HOCHTIEF joint venture (SHJV) for engineering, procurement, and construction management (EPCM) services for the LEP and CLP

Successful completion of a fully underwritten institutional placement and fully underwritten institutional entitlement offer, and a retail entitlement offer of new fully paid shares (as part

of the financing package).

‌Operating review

Health, safety, environment and quality (HSEQ)

At Vulcan, safety and well-being is central to the workplace, fostering an environment where people feel safe, valued and supported.

Vulcan operates an integrated management system aligned with international standards and maintains certification to ISO 45001 Occupational Health and Safety Management System across its operations.

These systems provide the foundation for policy development, risk management, training, performance monitoring and continuous improvement.

Vulcan's Health and Safety Policy prioritises the well-being of employees, contractors, partners, visitors and local communities, committing to proactive risk management, safe work environments, and continuous improvement in line with ISO 45001 standards.

The Company's Occupational Health and Safety (OHS) Plan provides risk management guidelines for construction and drilling activities, aligns with German regulations and International Association of Oil & Gas Producers (IOGP) standards, and is continuously updated based on feedback and emerging risks.

Vulcan implements Care Moments, guided by the well-known nine IOGP Life-Saving Rules (LSR) aimed at preventing fatal incidents during high-risk activities, with company-wide guidance and videos showing how to integrate the rules into daily operations.

Health and safety initiatives

Training is delivered through a combination of structured online learning and task-specific, in-person sessions. Operational training is linked to risk assessments, with employees receiving practical instruction on safe work practices relevant to their roles. In 2025, approximately 13,000 individual training sessions were completed (40-60 sessions per operator), representing a significant investment in workforce capability and awareness.

Health and safety performance

Health and safety performance is monitored through a central HSE reporting dashboard that consolidates key leading and lagging indicators, including incidents, training completions, and management safety visits. This data supports internal reporting, trend analysis and ongoing management review.

One Lost-Time Injury (LTI) was recorded in 2025. Given the low number of incidents over recent years, meaningful trend analysis remains limited. However, continued focus is being placed on maintaining safe operations as activities transition into the project execution phase.

Looking ahead, Vulcan's primary health and safety focus will continue to be on strengthening construction safety as project activity increases. Priorities for 2026 and beyond include expanding leadership engagement on construction sites, enhancing specialist capability and completing a psychosocial risk assessment with external medical support, followed by targeted mitigation measures. These initiatives are intended to further embed a proactive safety culture and support employee wellbeing across all operations.

Resources and Reserves

In July 2025, the Company announced that its total lithium brine Resource (Indicated and Inferred) for the Mannheim sector increased to 3,225kt LCE @ 155 mg/l Li. At the same time, the Company announced a large-scale, in place maiden geothermal Resource of 2,848 PJ (Indicated) and 10,539 PJ (Inferred) estimate for the Mannheim sector of which 171 PJ (Indicated) and 377 PJ (Inferred) are considered recoverable.

The Company's other Reserve and Reserve estimates remained unchanged during the reporting period. Vulcan's global total Resource Estimate is 29.1 million tonnes (Mt) of contained lithium carbonate equivalent (LCE)2.

The total licence area increased following the granting of a licence in the Alsace region of France3, with Vulcan's licence area increasing from 1,771 km2 to 2,408 km2.

The Company reports on its estimates of Mineral Resources and Ore Reserves in compliance with the JORC Code, the ASX Listing Rules, German Securities Trading Act, European Regulation No. 596/2014, and other applicable regulations.

The Company's Resource and Reserves are estimated, reviewed and signed off by external consultants and Competent Persons GLJ Ltd. Refer to the Ore Reserve and Mineral Resource Statement, Governance Arrangements and Internal Controls and Competent Person Statement for further details.

2 The 29.1Mt LCE total global lithium Resource is comprised of 2.1 Mt LCE of Measured Resource @ 181 mg/l Li, 9.7 Mt LCE of Indicated Resource @ 177 mg/l Li and 17.3 Mt LCE of Inferred Resource @174mg/l Li. See the Competent Person Statement contained in the Appendix and the Key Risks in Appendix 3 of the Investor Presentation dated 3 December 2025 regarding the risks associated with resource exploration and development projects for further information.

3 The Company notes the decision of the Nancy Administrative Court of Appeal against the geothermal permit, and for the lithium exploration permit grant validation and will continue to work in consultation with the government and local authorities.

Lionheart execution

Well sites

Throughout 2025, Vulcan Energy advanced the execution of its Lionheart Project in Germany's URVBF. In February 2025, the V20 drill rig was mobilised at Schleidberg, Landau, following successful completion of key infrastructure works, including well pad construction, crew camp establishment, and building of access roads. The work was undertaken by the Company's in-house drilling subsidiary, Vercana.

Routine commissioning procedures and technical testing were then carried out for the safe operation of the rig and associated equipment, before drilling of the first new well commenced in May 2025. This represented the fifth well - a vertical well known as LSC-1 - in the Field Development Plan (FDP) and start of project execution of subsurface works. A total measured depth of 3530m was reached, with the well drilled safely, under budget and ahead of schedule.

Following completion of LSC-1, the Company proceeded with the drilling of a sidetrack well, LSC-1a, and reported strong drilling performance and positive subsurface results from both the LSC-1 vertical well and LSC-1a sidetrack, with lithium grade, heat, reservoir quality and matrix permeability confirmed as consistent with the FDP, and consistent with Vulcan's existing operational wells in the Lionheart area.

The LSC-1a sidetrack completion was kept open hole (largely not cased) in order to also test the reservoir behaviour and performance of the overlying Muschelkalk and Keuper formations, which proved unstable and caused localised wellbore collapse and blockages during clean-up. Therefore a planned production test from the LSC-1a side could not be properly completed and the sidetrack was plugged and abandoned. Another sidetrack, LSC-1b, was later drilled and with results showing strong productivity,

the LSC-1 well was therefore successfully concluded.

Renewable heat and brine transferred to the sorption plant

Lithium hydroxide (LHM) distributed to the EU market

Geothermal and lithium brine field resource

(3 km deep)

Hot Li-rich brine

MAIN PIPELINE

Renewable energy Cold Li-poor brine

Landau

Lithium chloride transported to CLP

Frankfurt

Customers

Drilling services company

Regional heating Power production Low carbon project

Figure 2: Lionheart Project integrated supply chain

Produced in hours, not months. Flexibility and speed to market.

Flexible lithium product offering

Hydroxide offtake

Customers

Inter-connected pipeline and power (ICPP)

The ICPP is a large-scale infrastructure network of pipelines and cables that will transport brine from the well sites to the G-LEP and back to the well sites.

The Engineering, Procurement and Construction (EPC) contract for the ICPP sections one and two was executed in December 2025, and the railway crossing on the southern side of the D12 plot of land also progressed. This will enable the connection between the ICPP and the G-LEP at D12 in Landau.

Integrated Geothermal-Lithium Extraction Plant (G-LEP)

The G-LEP is the Company's upstream commercial facility, designed to produce both renewable geothermal energy and high purity lithium chloride (LiCl) from deep geothermal brine.

During the reporting period, the Company signed the purchase agreement for the G-LEP site in the Messegelände Südost D12 industrial park in Landau, acquiring approximately ten hectares for the construction of the commercial G-LEP.

The Company also marked the start of construction at the D12 site in December 2025, holding an official groundbreaking ceremony by laying a foundation stone. The event was attended by 120 delegates, including national and local politicians, regional stakeholders and economic representatives. These included Nicola Beer, Vice President of the European Investment Bank; Petra Dick-Walther, State Secretary in the Ministry of Economics, Transport, Agriculture, and Viticulture of Rhineland-Palatinate; and Landau's Mayor, Dr Dominik Geißler.

The works for the relocation of the overhead HV power cable at D12 have started and trenching for installation of the replacement cable underground is ongoing.

The building permit for the LEP was secured with the Company now in receipt of all major construction permits. Building permits for the 30MW geothermal power plant and electrical substation were received in June 2025, with land acquisition approval for the G-LEP received from the City of Landau in September 2025.

The geothermal power plant will utilise ORC (Organic Rankine Cycle) technology in generating renewable power from Vulcan's geothermal brine. The renewable power is produced as a co-product, alongside lithium, which is also produced from the same brine source, at Vulcan's upstream G-LEP.

During the reporting period, the Turboden and ROM Technik consortium commenced the engineering and procurement for

the ORC power plant, with early works planned to commence on site in H1 2026.

There are two operating wells located at Natürlich Insheim, one for the production of the 165°C hot brine and one for reinjection of cooled brine. The wells were drilled between 2008 and 2010, with the plant operational since 2012.

Central Lithium Plant (CLP)

The CLP will be the Company's commercial downstream lithium processing facility at Infraserv Park Höchst in Frankfurt, one of Germany's largest major chemical and energy precincts. The CLP will convert LiCl from geothermal brine into battery-quality LHM, supporting Europe's push for locally sourced, low carbon battery materials.

During the reporting period, the Company secured a permit to build and operate its CLP for Lionheart, as well as the permit to build a future, second phase.

In December 2025, the Company also signed four contracts with Infraserv, the CLP site developer and operator. The contracts include the land lease, development agreement, substation and grid connection and energy supply agreement.

Contracts and procurement

Lionheart has moved decisively into execution, marked by a series of major contracting milestones that lock in the project's technical backbone, delivery partners, and commercial foundations.

The Company signed agreements and issued a Notice to Proceed (NTP) with a Sedgman and HOCHTIEF joint venture (SHJV) for EPCM services for the LEP and CLP. The scope of the contracts with SHJV includes full project management of the LEP and CLP execution, detailed engineering and design, procurement management and expediting, construction management and site co-ordination, quality management, materials management, inspections, certifications, and commissioning support. It also includes the integration of proprietary technology packages into the overall LEP and CLP delivery.

JordProxa was appointed as the technology and equipment partner for Lionheart, with an NTP issued in early December 2025. The scope of the agreement includes the design, fabrication, modularisation, and delivery of the core process units for lithium extraction, purification and concentration at the LEP and conversion at the CLP. JordProxa will be a major contract supplier and deliver an integrated scope across the Project that covers the core extraction, purification, crystallisation and evaporation technologies required to transform high purity LiCl into high-purity LHM for use in battery electric vehicles.

The Company signed a contract and issued an NTP with ABB as the Main Electrical Contractor (MEC) partner for Lionheart, responsible for the design, engineering, manufacture, testing, and delivery of the electrical infrastructure systems covering the LEP, CLP, and well sites. As the MEC, ABB will provide the high, medium, and low-voltage power distribution systems, variable frequency drives, transformers, UPS, and protection equipment required to energise all process and utility systems.

The contracts with NESI and the Turboden/ROM Technik consortium commenced in early December 2025, following the issue of an NTP. NESI is the exclusive CLP electrolysis technology supplier for Lionheart, with Turboden and ROM Technik responsible for developing, procuring and constructing the commercial geothermal power plant.

The Company signed an offtake agreement with Glencore, one of the world's largest natural resource and trading companies. The agreement is to supply Glencore between 36,000 tonnes and 44,000 tonnes of LHM over a duration of an initial eight-year period. Glencore joins Stellantis, Umicore and LG Energy Solution as the Company's offtake partners for Phase One, with all agreements binding, take-or-pay and with agreed pricing mechanisms across six to ten years duration.

Production: Insheim, Landau

Operations also continued at Vulcan's existing Natürlich Insheim geothermal renewable energy plant, part of Phase One Lionheart, with production of approximately 19.51 GWh of gross baseload, renewable power, at an average selling price of €0.26/kWh, generating €4.1m gross revenue.

In April 2025, the Company announced it had completed the acquisition of geox GmbH (Geox), including its geothermal wells, renewable energy generation assets and a geothermal and lithium licence around Landau.

Optimisation plants

In January 2025, the Company's downstream CLEOP, also located in Industrial Park Höchst, Frankfurt, started production of battery-quality LHM, by processing high purity lithium chloride concentrate extracted from brine at the upstream, A-DLE optimisation plant in Landau. The product is domestically produced using an integrated and secure supply chain, including upstream raw material production from the LEOP, strengthening Europe's raw material independence and advancing the green mobility transition.

Having demonstrated battery-quality LHM production via Vulcan's integrated brine to battery supply chain, the Company dispatched first samples of battery-quality LHM material, branded V-Li0N™, to offtake partners, from Vulcan's qualification plant, prior to the full commercial plant completion and start of commercial production. Previous internal and external lab analysis indicated the Company's product is within battery-quality specification.

Both the upstream and downstream plants continued to be used for process optimisation and training of personnel.

Future phase development

Vulcan continues to develop its licence areas in a phased approach. After Lionheart, further phases are planned to fully leverage the large licence area that Vulcan has secured in the URVBF.

During the reporting period, the Company advanced multiple licence areas aimed at developing future integrated geothermal energy and lithium production within the URVBF. Progress included resource upgrades, seismic exploration, permitting, partnership negotiations, and longterm licence security.

In Mannheim, the Company made significant technical and commercial progress. Updated Resource estimates confirmed a substantial increase in lithium brine volumes and established a large maiden geothermal Resource. The lithium brine Resource estimation update for the Mannheim sector estimates the total lithium brine Resource (Indicated and Inferred) has increased from 1,833kt LCE @ 153 mg/l Li to 3,225kt LCE @ 155 mg/l Li, which is an increase of 1,392kt LCE.

Upper Rhine Valley

Negotiations with MVV Energie AG (MVV), one of Germany's leading energy companies, for revised heat offtake terms continued, while site selection for the first well neared completion.

A large-scale in place maiden geothermal Resource of 2,848 PJ (Indicated) and 10,539 PJ (Inferred) has also been estimated for the Mannheim sector of which 171 PJ (Indicated) and 377 PJ (Inferred) are considered recoverable. The Company intends to continue to complete geothermal energy Resource estimations under the Australian Geothermal Reporting Code for all its development areas within the URVBF.

The Company is progressing a Pre-Feasibility Study for the Mannheim licence. The study will consider all development options to add further production, in addition to the Phase One integrated lithium and geothermal renewable energy development.

The BASF joint project in Ludwigshafen advanced through completion and interpretation of a 2D seismic survey and development of a new 3D subsurface model. The Company also submitted a funding proposal for the planned 3D seismic survey to the energy research funding program of the Federal Ministry of Economy and Energy (BMWE). The research and development consortium, led by Vulcan, includes BASF and the Karlsruhe Institute of Technology as partners. Permitting and stakeholder engagement activities are ongoing.

In Ortenau, the Company secured a three-year licence extension to 2028 from the mining authority of Baden-Württemberg LGRB. The Company also completed interpretation of 2D seismic data confirming high regional prospectivity, and progressed planning for a largescale 3D seismic survey.

In Rüsselsheim, the Company and Opel Stellantis agreed to reshape their co-operation to enable Vulcan to supply renewable heat to multiple customers, with offtake negotiations and investor discussions continuing.

Additionally, a basin-wide airborne gravimetry and magnetic survey commenced in November 2025, designed to enhance geological understanding and support long-term exploration and development planning across the URVBF. The survey will provide an enhanced regional overview of the geological and structural properties of the subsurface, to map fault structures in the subsurface over a large area, and to create an improved planning basis for exploration activities.

‌Corporate update

Financing

In December 2025, the Company announced it had secured a comprehensive financing package to fund the construction and development of Lionheart. Securing the financing package enabled the Vulcan Board to take a positive Final Investment Decision (FID) on the project, with project execution commencing in the days thereafter.

The total Lionheart financing package of approximately €2.2bn (A$3.9bn) will enable Vulcan to fund the Lionheart development costs through construction, commissioning and start-up and into first cash flow generation.

The package includes significant financial support from HOCHTIEF through a total investment of €169m (A$302m), comprising a €39m (A$69m) investment in the Lionheart project entity and a cornerstone subscription of up to €130m (A$232m) in Vulcan shares.

The financing package also includes strong support from European and German government agencies, commercial banks and strategic industrial partners, and comprises:

• €1,185m (A$2,116m) in senior debt funding by a syndicate of 13 financial institutions including the European Investment Bank (EIB), international export credit agencies from Australia, Canada, France, Italy and Denmark and seven commercial banks

• €204m (A$364m) in German government grants

• €150m (A$268m) equity investment in Vulcan's primary German holding subsidiary, Vulcan Energie Ressourcen GmbH (GermanSubCo), by the KfW Raw Materials Fund (KfW) to acquire a 14% interest in Vulcan's German subsidiary

• €133m (A$238m) investment by a consortium of strategic investors comprising HOCHTIEF, Siemens Financial Services and Demeter to acquire a 15% equity interest in the Lionheart project entity

• €528m (A$943m) in proceeds from the underwritten component of an equity raising by Vulcan at €2.24/ (A$4.00) per share, comprising:

  • €137m (A$245m) fully underwritten institutional placement

  • €261m (A$465m) fully underwritten 1-for-1.128 accelerated non-renounceable institutional entitlement offer

  • €205m (A$366m) 1-for-1.128 non-accelerated retail entitlement offer, allowing all eligible Vulcan shareholders to participate, partially underwritten to

€130m (A$232m).

In July 2025, the Company announced the approval of two grants totalling up to €104m (~A$186m) for the Clean Lithium for Battery Cell Production funding project (Li4BAT). The grants are funded by the German Federal Government and the states of Rhineland-Palatinate and Hesse under the lead of the Federal Ministry of Economy and Energy (BMWE) within the Temporary Crisis and Transition Framework (TCTF) scheme by the European Union, together with the Resilience and Sustainability of the Battery Cell Production Ecosystem funding of the German government.

Li4BAT will be applied towards building industrial-scale lithium production and processing, which is part of Lionheart. Li4BAT is designed to assist with building Germany and Europe's critical raw materials supply chain resilience, to supply lithium raw materials and battery-quality LHM to service the European battery EV industry.

The Company successfully completed a €30m (~A$53.6m) strategic placement, including to the BNP Paribas' Clean Energy Solutions Fund (Fund). The placement was corner stoned by the Fund with a €15m (~A$26.8m) subscription, with a group of strategic investors participating for the remaining €15m (~A$26.8m), including existing strategic corporate shareholders in Vulcan.

MINISTERIU M FÜR WIRTSCHAFT, VERKEHR, LANDWIRTSCHAFT UND WEINBAU

Segment information

The consolidated entity is organised into three operating segments based on geographical location: Germany, other European countries, and Australia.

These operating segments are based on the internal reports that are reviewed and used by the Key Management Personnel (who are identified as the Chief Operating Decision Makers, or CODM) in assessing performance and in determining the allocation of resources.

There is no aggregation of operating segments. The CODM reviews EBITDA (earnings before interest, tax, depreciation, and amortisation).

The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements. The information reported to the CODM is provided on a monthly basis.

Corporate governance

The Company is committed to complying with the highest standards of corporate governance to ensure all of its business activities are conducted fairly, honestly and with integrity in accordance with all applicable laws. To achieve this, the Company's Board of Directors (Board) has adopted a number of charters and policies which aim to ensure that value is created while accountability and controls are commensurate with the risks involved.

As a company admitted to the official list of the ASX, the Company is subject to the Corporate Governance Principles and Recommendations published by the ASX Corporate Governance Council Fourth Edition (Recommendations).

Each year the Company is required to give the ASX a corporate governance statement, which sets out the extent to which the Company has followed the Recommendations.

The Board believes that the Company's policies and practices materially comply with the Recommendations and, as Vulcan continues to grow, the Company will regularly review its corporate governance policies, practices and controls, so this compliance is not only maintained but enhanced.

Vulcan continues to build its documentation pyramid. A full copy of the Company's corporate governance policies, charters and its most recent Corporate Governance Statement can be found on the Company's website -https://www.v-er.eu.

The Board of Directors considers the Company has established corporate governance policies and procedures that are appropriate in light of the Company's size, nature and activities.

‌Sustainability update

Creating shared value

Vulcan's long-term success and licence to operate fundamentally depends on strong, inclusive engagement with our stakeholders. Through its role in supporting Europe's transition to low-carbon energy and mobility, Vulcan aims to ensure that the shift away from fossil fuels delivers real and lasting benefits for people and communities. This approach to shared value extends beyond shareholder returns to include wider societal benefits, including local employment, enhanced energy security, cost savings, and improved public health.

Outlook for sustainability

A key focus for sustainability is the development of the Climate Transition Action Plan (CTAP) in 2026. The CTAP will define Vulcan's strategic framework for addressing climate-related risks and opportunities, outlining pathways for emissions reduction and science-based targets.

This initiative represents a key step in converting Vulcan's climate commitments into actionable measures that inform operational decisions and provide transparent accountability to stakeholders.

Performance against 2025 sustainability targets

Pillar 2025 Targets

Target

achieved Result

Zero significant environmental incidents No significant environmental incidents occurred in the reporting year.

Environment

Achieve 100% debt financing and close out environmental action plan

Commence commercial delivery of renewable heat to local communities

LCA updated at each study phase and commencement of operations

Lionheart Project physical climate change risk assessment

All environmental actions completed to plan and 100% debt financing achieved.

Commercial delivery of renewable heat commenced 29 April 2025.

N/A Scheduled for next engineering study with timing to be confirmed.

Completed with results summary published in this Report and further details to be included in future ASRS aligned reports.

Zero work-related fatalities No work-related fatalities occurred during the reporting year.

Social and safety

Year-on-year improvement of Lost-Time Injury frequency rates

One LTI was recorded during the reporting year, however the target was maintained with a reduction in rate of 1.5 at the end of 2024 to 1.36 at

31 December 2025.

Zero significant community incidents No significant community incidents occurred during the reporting year.

20 HSE leadership rounds An average of 24 rounds per month completed.

Deliver 100% debt financing social action items to plan

Governance

Sustainable supply chain assessments and process for all major suppliers

Minimum 40% female board representation

Appointment of Lead Independent Non-Executive Director

Ecovadis sustainability ratings assessment

All social actions completed to plan and 100% debt financing achieved.

All pre-qualification ESG assessments for major suppliers completed.

Female board diversity maintained in 2025 at 43%.

Mr Angus Barker appointed as Lead Non-Executive Director on 1 January 2025.

2025 assessment completed establishing a solid baseline and provides a credible starting point for improving year-on-year.

VULCAN ENERGY ANNUAL REPORT | 2025 23

The Directors of Vulcan Energy present their report, together with the financial statements of the consolidated entity consisting of Vulcan Energy Resources Limited and its controlled entities for the year ended 31 December 2025.

The names of the Company's Directors in office during the financial period and at the date of this report are as follows. The Board considers Angus Barker, Josephine Bush, Dr Heidi Grön and Dr Günter Hilken as independent directors during FY25.

Capital markets and government

Mr Angus Barker

Lead Independent Director and Deputy Chair

Energy and chemicals

Mr Cris Moreno

Managing Director and Chief Executive Officer

Chemicals and renewable energy

Dr Günter Hilken

Non-Executive Director, Projects Oversight Committee Chair

Sustainability and renewable energy

Ms Josephine Bush

Non-Executive Director, Audit, Risk and ESG Committee Chair

Chemical engineering

Dr Heidi Grön

Non-Executive Director

Finance and mining

Ms Felicity Gooding

Executive Director and Group Chief Financial Officer

Battery materials and renewable energy

Dr Francis Wedin

Executive Chair

‌Directors' report

Interest in shares and other company securities

The following table sets out each current Director's relevant interest in shares and performance rights of the Company as at the date of this report and based on publicly available information.

Principal activities

The principal activities of the Company during the year were the development and execution of an integrated lithium and renewable energy project in Europe.

Information on Directors

The names and particulars of the Company's Directors in office during the financial year and at the date of this report are as follows. Directors held office for the entire period unless otherwise stated.

Dr Francis Wedin

Executive Chair

PhD & BSc (Hons) Geology & Mineral Exploration, MBA in renewable energy

Dr Wedin is a battery raw materials and renewable energy industry executive, with an international career spanning four continents and multiple commodities. Dr Wedin founded Vulcan Energy's Lionheart in Germany's Upper Rhine Valley and was instrumental in driving Vulcan Group's successful growth as CEO, and latterly as Executive Chairman, over the last 8 years. Dr Wedin was previously Executive Director of successful ASX-listed Exore Resources Ltd, where he defined and developed the Lynas Find Lithium Project, subsequently bought by Pilbara Minerals to become part of its Pilgangoora Lithium Project, now in production. Dr Wedin has a PhD and BSc (Hons) in geology and mineral exploration, and an MBA in renewable energy. He is a Fellow of the Geological Society, London, and a Fellow of the Australasian Institute of Mining and Metallurgy.

Cris Moreno

Managing Director and Chief Executive Officer

BASc (Hons) BChE (Hons)

Mr Moreno has over 23 years' global experience in successfully delivering and operating major capital projects, including in the lithium chemicals, cathode, upstream exploration and production, and liquified natural gas (LNG) sectors. In the LNG sector, he has held senior leadership roles with Shell, Woodside, and Santos. Prior to joining Vulcan Energy, Mr Moreno worked in the lithium chemicals and battery cathode sector in Europe, where he successfully led several start-up and scale-up companies, taking them from pilot scale into commercial production. He has also led major project financing packages from both a debt and equity perspective.

Felicity Gooding

Executive Director and Group Chief Financial Officer

BCom (Accounting and Finance), Chartered Accountant

Ms Gooding is a senior finance executive and leader with over 20 years' experience in strategic and financial analysis, debt funding, corporate finance, mergers and acquisitions, management and financial accounting and governance in Australia, Singapore, London, and Washington D.C. Her experience has been gained across multiple industries relevant to Vulcan including energy, mining and infrastructure. Prior to joining Vulcan Energy, Ms Gooding was CFO and Global Head of Commercial at Fortescue Future Industries, where she led the finance team, including the specialist project financing team responsible for securing finance to enable financial investment decisions for green energy projects.

Angus Barker

Lead Independent Director and Deputy Chair

BCom (Hons) Economics, Finance

Mr Barker is Deputy Chair and Lead Independent Director of Vulcan Energy Resources, Chair of rare earths and uranium company Australian Rare Earths and a Director of listed investment company WAM Capital. Prior to this, he served as Chief of Staff or Senior Adviser to Australian Government ministers in the key economic portfolios of trade and investment, and superannuation and financial services. Previously, he held senior executive roles at top-tier global investment banks across Australia, the United Kingdom and Asia, including 12 years based in Hong Kong. He holds a Master of Philosophy from the University of Cambridge and a Bachelor of Commerce (Honours) from the University of Melbourne.

Josephine Bush

Non-Executive Director

CTA, MA (Hons) Law, CFA ESG investing, Sustainable Finance Certification

Ms Bush is a qualified solicitor, and chartered tax adviser, as well as earning the CFA ESG investing qualification and a sustainable finance certification. She has an MA in Law from Cambridge University. Ms Bush was a senior partner at EY for 14 years specialising in the renewable energy sector. She built and led the UK and Ireland Renewables Tax Practice, led on market-leading transactions such as structuring for the initial public offerings of several environmental yieldcos, and developed the EY global renewables business plan. She was a member of the Ernst & Young Power and Utilities Board and UK&I Governance Board.

Dr Heidi Grön

Non-Executive Director

PhD Chemical Process Engineering, Dip. Chemical Engineering

Dr Grön is a chemical engineer and accomplished business leader with over 25 years of experience in the global chemical industry. She has held senior executive roles at Evonik, where she successfully led global specialty chemical businesses, initiated strategic transformations toward sustainable practices, and enhanced operational excellence across diverse business lines. Her expertise spans technology, production, M&A, and business development, with a proven track record in delivering large-scale CapEx projects, achieving efficiency improvements, and driving strategic repositioning. In addition to her executive roles, Dr Grön has served as president and board member of several European industry associations, contributing her leadership and vision to advancing the sector.

Dr Günter Hilken

Non-Executive Director

PhD in Organic Chemistry, master's degree in chemistry

Dr Hilken has over 35 years' experience in the German chemicals, renewables and infrastructure investment sectors and in leading industry advocacy associations, and in the German government at the state and federal level. Dr Hilken's experience and connections help Vulcan Group ensure that geothermal energy becomes a foundation of Germany's supply of sustainable and secure renewable energy as Germany diversifies away from local carbon-based energy sources and Russian energy. Dr Hilken is also a member of the Board of the German Federation of Industrial Energy Consumers (VIK) as well as a former Director of Currenta and member of the Supervisory Board of Currenta. He was previously CEO of Currenta for nine years, held senior executive roles with Bayer in Germany, the US, Canada and Asia, and was a member of the supervisory board of RWE Power AG.

Directors' meetings and participation

The number of meetings held during the year and the number of meetings attended by each Director is contained in the table below.

During the year, the various Committee members were as follows:

ARESG

Committee

Josephine Bush I Chair

Angus Barker Dr Heidi Grön

People and Performance Committee

Angus Barker I Chair Josephine Bush Dr Günter Hilken

Project Oversight Committee

Dr Günter Hilken I Chair

Dr Heidi Grön

Nomination Committee

Angus Barker I Chair Josephine Bush Dr Günter Hilken

Vulcan's Board and Committee members also regularly engage outside of scheduled meetings through electronic and telephone communications, with circular resolutions used where necessary to progress and approve decisions.

4 As of FID on 3 December 2025, the Project Oversight Committee has been replaced with more operational committees at a management level.

5 Whilst all Directors can attend any committee meeting, subject to conflict of interests, for the purposes of this table a Director is only eligible to attend a meeting if they are also a member of the particular committee.

Board capability & expertise

The Board is responsible for overseeing the Company's strategy, performance and management, and holds overall accountability for Vulcan's sustainability strategy. In 2025, the Board engaged in specialist training to maintain and enhance capability in response to emerging sustainability and regulatory developments. These topics included:

• Physical climate change risk

• Transition climate change risk and opportunities

• Enterprise risk management.

Vulcan's Nomination Committee regularly assesses Board composition against the Company's skills matrix to ensure an appropriate balance of relevant and multidisciplinary expertise. This process guides appointment and succession decisions, helping ensure the Board is well equipped to provide effective strategic oversight and address evolving business and governance matters. The composition of skills and experience of Vulcan's Board is detailed in the table below:

Membership of other listed entities (last 3 years).

Major resources capital project development and management.

Media, stakeholder communication, investor relations, public relations

Capital raising, mergers and acquisitions

Proven experience with climate change policy, sustainability, carbon reduction

Positive human resource management

processes

Additional expertise

Dr Horst Kreuter

Chief Representative Germany and Board advisor

PhD in Geology

Dr Kreuter is a highly experienced businessman and engineering geologist, with an extensive and distinguished record of project development and consulting in the geothermal sector. Dr Kreuter is co-founder of Lionheart, alongside Dr Francis Wedin. Prior to Vulcan, Dr Kreuter spent over 15 years as leader of GeoThermal Engineering GmbH, a consulting firm based in Karlsruhe, with work extending both domestically and internationally. Notably, Dr Kreuter was actively involved in countries such as Tanzania, Turkey, Italy and Indonesia.

Daniel Tydde

Company Secretary and General Counsel

Bachelor of Laws, Bachelor of Commerce

Mr Tydde is an experienced corporate lawyer with approximately 20 years' experience across a wide range of corporate, commercial and finance areas including corporate regulatory compliance; corporate governance; equity and debt capital raisings; asset and share sales and purchases; initial public offerings; corporate restructuring and reorganisations; and litigation. Prior to joining Vulcan, he held a senior position at Steinepreis Paganin and, prior to that, worked at Clayton Utz and Phillips Fox (now DLA Piper). Mr Tydde holds a Bachelor of Laws and a Bachelor of Commerce from the University of Notre Dame Australia.

Material business risks

Supply chain

Vulcan recognises that inadequate procurement policies and processes could expose it to human rights violations such as modern slavery and child labour, as well as adverse environmental impacts.

Vulcan maintains a procurement framework aligned with international ESG, human rights, and anti-slavery standards. This includes robust supplier due-diligence and audit processes, the integration of sustainability and ethical criteria into vendor selection and contract management, and mandatory training for procurement teams on human rights, modern slavery, and environmental compliance.

Financial

Vulcan faces several financial risks that may affect its ability to fund operations and execute its strategic objectives. Limited profitability may increase reliance on equity financing during periods when internal cash flows are insufficient. Investor sentiment also poses a risk, as increased selling activity from disillusioned shareholders could place downward pressure on the share price, reducing market confidence and constraining future capital-raising capacity. In addition, the Company is exposed to foreign exchange volatility, particularly depreciation of the Australian dollar and other non-Euro currencies, as the majority of project expenditure is Euro-denominated.

To manage these risks, Vulcan closely monitors cash flow and frequently reviews and updates Company budgets which are signed off by the Board. Investor confidence is supported through proactive investor relations and transparent communication on strategy, milestones, and performance. Foreign exchange exposure is mitigated through ongoing review and analysis of currency movements and assessments of hedging options for reducing FX-related impacts.

Reserves estimate and Resource recovery

Vulcan's Resource and Reserves estimates rely on geological assumptions and interpretations that may prove inaccurate, potentially affecting future project viability. Confidence in these estimates continues to improve through ongoing temporal data collection and analysis across multiple brine sampling periods.

Subsurface performance also presents operational risks. Limited permeability in the rock matrix may restrict the effective movement, injection, or disposal of fluids within the reservoir, reducing overall resource recovery. Mitigations include increasing matrix disposal where porosity allows, optimising well spacing and placement during the Field Development Plan, and reconfiguring wells to avoid low-permeability zones.

In addition, high connectivity within hydraulic fault damage zones can increase fluid migration risks and complicate subsurface management, potentially reducing lithium production efficiency and leading to costly design adjustments. These risks are managed through the application of advanced technologies in horizontal injectors to improve distribution control and the use of isolation techniques to minimise exposure to fault zones.

Global lithium market

Lithium prices are subject to significant volatility driven by global supply-demand dynamics and broader economic and geopolitical conditions, which may negatively impact the Group's financial performance.

To manage this risk, Vulcan monitors market pricing trends, and will monitor and maintain long-term offtake relationships to support revenue stability, and, where possible, includes floor and fixed pricing mechanisms into its lithium offtake contracts. The Vulcan Group is also exploring complementary revenue streams to strengthen its financial position.

Geopolitical

Geopolitical instability, global sanctions, and shifts in major-economy trade, public health, and defence policies may disrupt supply chains, increase costs, and create financial or cybersecurity vulnerabilities. These factors can affect equipment availability, energy pricing, financing conditions, and overall market stability, potentially impacting Vulcan's operations and profitability.

To mitigate these risks, Vulcan diversifies suppliers and logistics routes to reduce exposure to high-risk regions, applies hedging strategies and closely monitors pricing trends, and strengthens counterparty risk assessments, adjusting credit limits where appropriate.

Project delivery and drilling

Construction-phase risks such as defective work, contractual disputes, and safety incidents may result in schedule delays and cost increases. Vulcan mitigates these risks through clearly defined Engineering, Procurement and Construction (EPC) contracts with experienced contractors, supported by structured progress monitoring, audits, site inspections, and performance-tracking systems.

Delays to drilling activities may occur due to shortages of rigs, skilled personnel, and critical drilling services. To reduce this risk, Vulcan maintains long-term relationships with drilling service providers and has accelerated the recruitment and onboarding of experienced drilling staff to support timely project delivery.

Sustainability

Vulcan's sustainability linked obligations, including debt package requirements and the accuracy of its ESG disclosures may carry financial, regulatory, and reputational implications if not met. Vulcan's climate risk assessment has concluded that no climate related risks meet the threshold of financial materiality at this time; however, climate and transition risk drivers are monitored through the enterprise risk management framework to ensure early detection of any future material impacts. To mitigate ESG related risks, Vulcan maintains transparent and evidence based ESG disclosures, applies robust controls to prevent greenwashing, and aligns reporting with recognised standards.

Community concerns regarding potential property impacts from Vulcan's activities may affect social acceptance and delay project progress, including permitting. To address this, Vulcan engages local stakeholders in co designing mitigation measures, has established property protection and compensation frameworks, and actively monitors

community sentiment. Regular engagement and transparent communication support early identification of issues, helping to reduce risks associated with permitting, land acquisition and project timelines.

Commercial

Growing competition for Adsorption-type Direct Lithium Extraction (A-DLE) projects and licences may limit Vulcan's ability to secure strategic resources and expand its portfolio. Vulcan mitigates this risk by proactively identifying and securing high-potential licences, monitoring competitor activity, and building strategic partnerships with local authorities and industry stakeholders.

There is also a risk that emerging competitors may develop more environmentally efficient or cost-effective extraction or processing technologies, potentially eroding Vulcan's competitive advantage. To address this, Vulcan conducts continuous technology benchmarking, invests in research and development, strengthens intellectual property protection, and forms strategic alliances where beneficial.

Long-term demand for lithium may be affected by the development of alternative battery chemistries such as sodium-ion or multivalent-ion technologies. Vulcan monitors technology and investment trends, leverages current market fundamentals, and maintains strategic partnerships to reinforce the ongoing relevance of lithium in future energy-storage markets.

Market confidence in A-DLE may also be affected by the underperformance of other A-DLE projects, potentially influencing perceptions of Vulcan's technology and its ability to attract investment or strategic partners. Vulcan mitigates this risk through independent third-party validation (including audits and certifications), demonstrating technology leadership and a strong operational track record, and collaborating with reputable industry participants to reinforce confidence in A-DLE.

Cybersecurity

Cybersecurity threats including data theft, manipulation, and operational disruption may compromise the integrity and resilience of Vulcan's IT systems, exposing the organisation to security breaches or accidental system failures.

To mitigate these risks, Vulcan employs layered security measures, including firewalls, intrusion-detection systems, continuous system monitoring, regular vulnerability assessments, and ongoing application of security patches to strengthen protection against emerging cyber threats.

Significant changes in the state of affairs

There were no significant changes to the state of affairs other than those noted elsewhere in this Report.

Matters subsequent to the reporting period

First lithium production permit secured for Lionheart

On 17 March 2026, the Company announced it had been issued its first lithium production permit for its flagship Lionheart Project, the first such licence to be granted in URVBF and in the state of Rhineland-Palatinate. The licence, designated LiThermEx, covers Vulcan's Insheim geothermal production permit area within Lionheart, a licence area that is already producing renewable heat and power. The LiThermEx licence has been granted for an initial six years, following which time the Company will look to extend the permit to a minimum of 30 years' duration, consistent with the Lionheart Project FDP.

Successful production test results from first new Lionheart well

On 21 January 2026, the Company reported strong production flow test performance of its LSC-1b sidetrack from the LSC-1 vertical well, in the Lionheart FDP. Production test equipment operated at maximum capacity, confirming strong well deliverability with production potential range of 105 to 125 l/s. During a planned operating drawdown of approximately 50 bars, the measured PI range indicates a potential production capacity of approximately 105 to 125 l/s, supporting the Phase One FDP which has an average well production of ca. 84 to

94 l/s. Lithium grade, temperature, reservoir quality and matrix permeability were previously confirmed as meeting or exceeding Field Development Plan assumptions and remain consistent with these production results.

Administrative update

The Company held an Extraordinary General Meeting (EGM) on 12 January 2026 to ratify the prior issue of institutional placement shares in December 2025. The resolution was passed by poll.

The Company also announced the Board had approved remuneration changes for the Chief Executive Officer and Chief Financial Officer, effective 1 January 2026. The changes considered the Company's progression from development to execution phase, with delivery of its upstream FDP and construction of the Company's commercial G-LEP in Landau, which commenced in December 2025. The changes also reflect the increased size and complexity of international operations and governance, as the Company progresses towards its target of first commercial lithium production in 2028, while still maturing the rest of the Vulcan resource and technology portfolio.

‌Remuneration report (Audited)

The Remuneration Report outlines the remuneration arrangements for the Vulcan Energy Resources Limited (Vulcan, or the Company) Key Management Personnel (KMP) for the year ended 31 December 2025 (FY25) in accordance with the requirements of the Corporations Act 2001 (Cth) (the Act) and its regulations. This information has been prepared in accordance with section 300A and audited as required by section 308(3C) of the Act.

The Remuneration Report is presented under the following sections:

1. Introduction

2. Remuneration governance

3. Remuneration principles and strategy

4. Executive KMP remuneration arrangements for FY25

5. Executive KMP remuneration outcomes

6. Non-Executive Director remuneration arrangements

7. Looking forward to FY26

8. Additional disclosures relating to rights and shares

9. Loans to key management personnel and their related parties

10. Other transactions and balances with key management personnel and their related parties

11. Auditor's Independence Declaration.

VULCAN ENERGY ANNUAL REPORT | 2025 34

Committee Chair's message

Dear Shareholders,

On behalf of the Board and the People and Performance Committee (PPC), I am pleased to present the Remuneration Report for the year ended 31 December 2025.

The reporting period was one of outstanding strategic progress for Vulcan as we secured the $3.9bn (€2.2bn) financing package for the Lionheart Project. In just 7.5 years, Lionheart has evolved from concept to successfully raising the debt and equity capital to enable the Board to take a positive Final Investment Decision (FID) - this is an extraordinary achievement for any company, particularly so for a multi-billion-dollar critical minerals project.

In pace with this, wecontinue toevolve Vulcan's remuneration framework, to reflect our stage of development and continue to support long-term value creation for shareholders.

Our remuneration framework is designed to attract and retain the highly skilled leadership required to construct and deliver Lionheart, our flagship integrated geothermal and lithium project. A lighthouse project for Europe, Lionheart is set to redefine lithium production, delivering Europe's first fully domestic and sustainable, low-cost integrated lithium value chain. It will also provide a clean and reliable source of renewable energy for local communities and industries in Germany's Upper Rhine Valley.

The remuneration outcomes for FY25 reflect a year of outstanding strategic progress for Vulcan, with remuneration decisions closely aligned to the Company's transition into construction and the achievement of major financing, permitting, offtake and ESG milestones.

The PPC oversaw a comprehensive review of the executive remuneration framework during the reporting period supported by independent market data, to ensure settings remain competitive, performance linked and appropriate for the Company's stage of operation and development. The review covered the Short-Term Incentive and Long-Term Incentive mix to ensure a more balanced weighting between these incentives and alignment with market practice.

Remuneration outcomes in 2025

2025 was a defining period in the history of the Company, with a number of commercial and operational objectives achieved. The Company secured a $3.9 billion (€2.2 billion) financing package and all major permits for Lionheart, enabling construction to begin alongside substantial government grant approvals and key supply chain contracts. We also strengthened commercial foundations through a binding Glencore offtake agreement, advanced product qualification with partners, and achieved major technical milestones including successful drilling progress, updated resource estimates, and Europe's first fully integrated production of battery-quality lithium hydroxide. Together, these achievements position Lionheart firmly on the path to commercial operation and reinforce Vulcan's leadership in sustainable lithium development.

The Company has transformed from a development business to one of the most strategically significant projects for Europe moving into construction, showcasing future facing solutions for domestic battery value chain resilience that support both innovation and security.

Lionheart has faced the due diligence scrutiny of some of the world's biggest and most pre-eminent experts and financiers, and its bankable status should be considered as a significant de-risking event.

With the above in mind, remuneration targets for the Managing Director and CEO (MD-CEO) and Group Chief

Financial Officer and Executive Director (CFO) have been adjusted from the prior year to allow a more balanced approach towards short and long-term goals which aligns with market practice and reflects Lionheart's formal EU Strategic Project Status. Incentives were tied to critical project, financing and ESG milestones, reflecting the Company's strategic priorities as it moved towards start of construction, which was achieved in December 2025.

Pleasingly, ESG outcomes were fully achieved (20% of STI), including zero significant environmental incidents and strong safety performance.

No LTI Plans were scheduled to vest in FY25, which is to be expected given the multi-year awards. The LTI structure continues to reinforce long term alignment with shareholder value, sustainability outcomes and disciplined project execution.

Consistent with the expectations of shareholders, we have incentivised and rewarded executives appropriately throughout the reporting period, ensuring performance aligns with shareholder interest and expectations, including providing increased disclosure on the outcomes of individual milestones in this year's Remuneration Report to increase transparency.

In conjunction with the review of remuneration for the MD-CEO and CFO, the Board undertook a review of Non-Executive Director fees, benchmarking against industry peers and similar sized companies, anticipating Vulcan's entry into the ASX 200.

After considering the results of the review, the Board resolved to increase NED fees after successful execution of the major December 2025 capital raise and taking the FID for Lionheart, with the increase taking effect as of January 2026. Aggregate NED fees after this change can be accommodated within the existing NED fee cap. However, to provide headroom for potential NED additions in future, we will seek shareholder approval for an increase in the NED fee cap at the 2026 Annual General Meeting. The last time Vulcan's NED fee cap was increased was in November 2022. If approved, no further increase in the NED fee cap will be sought until after the construction of Lionheart is completed.

Looking ahead

As the Company progresses the construction of Lionheart, the PPC will continue to ensure Vulcan's remuneration framework reflects key milestones and developments appropriately.

For this year, taking into account shareholder feedback

and reviewing proxy adviser guidelines, Vulcan has made a number of changes to its remuneration framework for FY26, including:

• An increase to the STI opportunity from 25% to 50% of Fixed Remuneration for the MD-CEO and CFO, to balance focus between long-term and shorter-term priorities, reflecting our stage of development;

• All of the increased portion of the STI for the MD and CFO (i.e. half the STI outcome) to be deferred for a further 12-month vesting period, i.e. a 24-month vesting period in total;

• Removing the multipliers for future awards within the STI and LTI milestones;

• Adjusted the weighting of the LTI measures, by increasing the shareholder return metrics from 20% to 80%;

• Moving towards annual awards of service rights for NEDs with a 12-month vesting period issued in a single tranche, to be made once the existing tranches vest or expire, and for all future NED appointments; and

• Implementation of a Minimum Shareholding Policy for all directors and any other Key Management Personnel (KMP).

The remuneration arrangements are expected to continue to evolve in line with the Company's transformation from a development-focused model to one centred on largescale project delivery, capital deployment and operational readiness.

The Company's Executive Chair, Dr Francis Wedin, elected to not receive STI or LTI rights in 2025. As founder of the business, Dr Wedin already has a material shareholding in the Company.

On behalf of the PPC, I thank our shareholders for their ongoing support and engagement. We remain committed to maintaining a remuneration framework that is transparent, responsible, performance-driven, and aligned with long term value creation.

I invite you to read the full Remuneration Report and welcome any comments or feedback.

Sincerely,

Angus Barker

Chair, People and Performance Committee

1. Introduction

   This Remuneration Report details the remuneration arrangements for Key Management Personnel (KMP) who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly, including any director (whether executive or otherwise) of the Company.

   Each KMP was appointed for the entire year 1 January 2025 to 31 December 2025. For the purposes of this Remuneration Report, the term 'Executive' includes Executive KMP of the Group as detailed in the table below.

   Mr Angus Barker1 Ms Josephine Bush Dr Heidi Grön

   Dr Günter Hilken

   Lead Independent Director & Deputy Chair

   Non-Executive Director & Chair of the ARESG Committee Non-Executive Director

   Non-Executive Director & Chair of the POC

   (i) Non-Executive directors (NEDs)

   Dr Francis Wedin Mr Cris Moreno

   Ms Felicity Gooding2

   Executive Chair

   Managing Director & Chief Executive Officer (MD-CEO) Executive Director & Group Chief Financial Officer (CFO)

   (ii) Executive (Executive KMP)

   1 Mr Angus Barker was appointed as Lead Independent Director and Deputy Chair on 1 January 2025.

   2 Ms Felicity Gooding was appointed as Executive Director on 1 January 2025

   There were no other changes to the KMP after the reporting date and before the date the financial report was authorised for issue.

   Financial values referenced throughout this Remuneration Report are translated from Australian dollars to Euro using an exchange rate of 0.57.

2. Remuneration governance

   Remuneration decision making

   The following diagram represents the Company's remuneration decision making framework:

   Board

   Reviews and approves Executive remuneration and incentives. Sets aggregate NED fees, subject to shareholder approval.

   People and Performance Committee (PPC, the Committee)

   Develops remuneration strategy, framework and policy and provides Executive & NED remuneration recommendations to the Board.

   MD-CEO and Executive Chair

   Executive remuneration input and implementation.

   Remuneration Consultants

   External, independent remuneration advice and information as required.

   Audit, Risk and ESG Committee

   Input to financial, risk and ESG measures and outcomes as required.

   The People and Performance Committee (PPC) is comprised of three Non-Executive Directors (NEDs) and is composed entirely of independent directors. The Executive Chair, MD-CEO and CFO attend certain Committee meetings by invitation, where management input is required. The Executive Chair, MD-CEO and CFO were not involved in the final decisions related to their own remuneration arrangements.

   Use of independent remuneration consultants

   To ensure the PPC is fully informed when making remuneration decisions, it seeks independent external remuneration advice where required. Independent remuneration consultants are engaged by, and report directly to, the PPC. In selecting remuneration consultants, the PPC considers potential conflicts of interest and requires independence from the Company's KMP and other executives as part of their terms of engagement.

   During the financial year ended 31 December 2025, the PPC undertook a review of Executive KMP remuneration and of NED fees. Loftswood, a leading advisor in executive reward, performance and governance, were used to provide market data and commentary on market practice, trends and good governance1.

   Remuneration report approval at 2025 AGM

   The Remuneration Report for the period ended 31 December 2024 received positive shareholder support at the 2025 AGM with a vote of 89.8% in favour.

   1 No remuneration recommendations as defined in Section 9B of the Corporations Act 2001 were provided in FY25.

3. Remuneration Principles and Strategy

   Remuneration principles and strategy

   The following diagram illustrates how the Company's remuneration strategy aligns with its strategic direction and links remuneration outcomes to performance.

   Vulcan Mission

   To become Europe's leading sustainable lithium business and enabling energy security through geothermal energy

   Guiding Principles for our Remuneration Strategy
   Market competitive We ensure our reward is competitive compared to companies of a similar size and complexity, to attract and retain talented Executives.	Alignment to performance At-risk remuneration including both short and long-term elements, subject to performance in alignment with business objectives and shareholder returns.	Sustainability Performance measures and incentive structures are designed to encourage responsible environmental and operational outcomes, balanced financial performance and long-term value creation for shareholders.	Culture Our culture is key to how we operate and deliver our strategy. Our approach to performance and reward promotes a positive culture that champions Vulcan's values.	Alignment to shareholder value Our Reward Framework focuses executives and management on delivering superior total shareholder returns. We do this through share ownership and LTI performance measures aligned to the shareholder experience.

   Vulcan's Values

   Climate Champion

   Determined

   Inspiring

   
   
   

4. Executive KMP remuneration arrangements for FY25

Remuneration approach

Vulcan's executive remuneration strategy is designed to attract, retain and motivate the best people to create a positive culture that delivers the Company's business strategy and contributes to sustainable long-term returns.

The executive remuneration framework includes fixed remuneration, short and long term incentives with different reward focus. In FY25, incentives were aligned to key corporate, financing and ESG milestones to support talent retention and longterm shareholder value (summarised in the table below) 2.

2 Further information is in the following paragraphs.

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