Annual report
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AusQuest Limited ABN 35 091 542 451 Financial Report for the financial year ended 30 June 2026
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AusQuest Limited Contents 30 June 2026 1 Corporate directory ................................................................................................................................................... 2 Chairmans' letter ....................................................................................................................................................... 3 Directors' report ........................................................................................................................................................ 5 Auditor's independence declaration ........................................................................................................................ 24 Independent auditor's report to the members of AusQuest Limited ....................................................................... 25 Directors' declaration .............................................................................................................................................. 29 Statement of profit or loss and other comprehensive income ................................................................................ 30 Statement of financial position ................................................................................................................................ 31 Statement of changes in equity .............................................................................................................................. 32 Statement of cash flows .......................................................................................................................................... 33 Notes to the financial statements ............................................................................................................................ 34 Consolidated entity disclosure statement ............................................................................................................... 61
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AusQuest Limited Corporate directory 30 June 2026 2 Board of directors Mr Greg Hancock - Non-Executive Chairman Mr Graeme Drew - Managing Director Mr Chris Ellis - Non-Executive Director Company secretary Mr Henko Vos Registered office C/- Horizon Nexus Partners Level 4, 88 William Street Perth WA 6000 Telephone: +61 8 9463 2463 Website: www.horizonnp.com.au Principal place of business 8 Kearns Crescent Ardross WA 6153 Telephone: +61 8 9364 3866 Facsimile: +61 8 9364 4892 Website: www.ausquest.com.au Share register Automic Group Level 5, 191 St George Terrace Perth WA 6000 Investor Services: 1300 288 664 General Enquiries: +61 2 9698 5414 Website: www.automicgroup.com.au Auditor HLB Mann Judd Level 4, 130 Stirling Street Perth WA 6000 Bankers Australian and New Zealand Bank 135 Riseley Street Booragoon WA 6154 Stock exchange listing Australian Securities Exchange (Home Exchange: Perth, WA) ASX code: AQD
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AusQuest Limited Chairmans' letter 30 June 2026 3 Dear Shareholder On behalf of the Board, I am pleased to present AusQuest Limited's Annual Report for the 2026 financial year — a year of significant progress for the Company, highlighted by the continued emergence of our Cangallo Copper Project in Peru as a large-scale copper-gold discovery alongside a strong pipeline of base metal exploration activities in Australia. The standout achievement of the year was undoubtedly the continued growth of Cangallo, where successive drilling programs have significantly expanded the scale of the mineralised system and reinforced our confidence in the project’s potential. Stage 3 RC drilling, comprising 54 holes for approximately 21,600 metres, confirmed a continuous porphyry copper- gold corridor extending for more than 1,500 metres along strike and between 250 and 500 metres in width, with mineralisation remaining open at depth and along strike. Importantly, subsequent diamond drilling demonstrated that the system continues to substantial depths, extending known mineralisation to approximately 800 metres vertical depth below surface. Results included an outstanding intersection of 555 metres at 0.26% copper from just 5 metres downhole, while emerging higher-grade zones in the south – including grades of up to 1.09% copper and increasing gold values – point to further upside as the system continues to be defined. Beyond Cangallo, maiden drilling was also completed at the Lantana and Playa Kali prospects highlighting the broader exploration potential of this exciting emerging district. At the same time, permitting for a substantial Stage 4 drilling program of more than 50,000 metres advanced steadily, positioning Cangallo for continued growth in the year ahead. Our Australian portfolio also progressed strongly during the year. Importantly, our Strategic Alliance Agreement with a subsidiary of South32 Limited was extended until December 2027, underpinning continued funded exploration across the Balladonia, Morrisey, Coober Pedy and Mt Davis projects. Highlights included encouraging maiden lead-zinc-copper results at Mt Davis, an expansion of the premium magnetite footprint at Morrisey, and progress towards approvals for a substantial new drilling program at Balladonia. Together, these projects provide AusQuest with a valuable pipeline of exploration opportunities alongside our increasingly important Peruvian copper-gold portfolio. These achievements were underpinned by a strengthened balance sheet, following a $10 million capital raising in December 2025 which attracted strong supported from both domestic and international investors. This funding has allowed AusQuest to pursue concurrent, well-resourced exploration and drilling campaigns across both Peru and Australia through the year, while maintaining a disciplined approach to capital allocation as exploration investment increased through the second half. Looking ahead, the Company's priorities are clear: complete diamond drilling and progress Stage 4 permitting at Cangallo, advance early resource and metallurgical work, and commence the long-awaited Balladonia drilling program, along with continued progress at Coober Pedy and Mt Davis. The Board remains confident that the scale and continuity demonstrated at Cangallo, combined with an active pipeline of Australian base metal opportunities, position AusQuest well to continue creating value for shareholders. Copper remains one of the commodities most central to the global energy transition and electrification of the world economy, against a backdrop of increasing challenges in bringing new large-scale supply to market. In this environment, the scale, continuity and growth potential emerging at Cangallo are particularly encouraging.
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AusQuest Limited Chairmans' letter 30 June 2026 4 There remains considerable work ahead, but the progress achieved over the past year has provided us with an exciting platform from which to build. The board believes that the combination of Cangallo’s growing potential, our broader Peruvian exploration portfolio and our pipeline of funded Australian opportunities positions AusQuest exceptionally well for another important year of exploration and value creation. On behalf of the Board, I would like to thank our shareholders for their continued support, and our management and technical teams for their dedication and hard work throughout the year. Your faithfully Greg Hancock Chairman, AusQuest Limited
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AusQuest Limited Directors' report 30 June 2026 5 The Directors of AusQuest Limited (“AQD” or the “ Company ”) herewith submit the financial report of the Company and the entities it controlled (“ Group ”) for the year ended 30 June 2026 . In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: Board of directors The following persons were directors of AusQuest Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Mr Greg Hancock Non-Executive Chairman Mr Graeme Drew Managing Director Mr Chris Ellis Non-Executive Director Company secretary Mr Henko Vos Principal activities The principal activity of the Group was mineral exploration throughout Australia and Peru. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. Review of results and operations A review of the Group's exploration projects and activities during the year is discussed in the Review of Operations included in this Annual Report. The loss for the Group after providing for income tax amounted to $3,040,267 (30 June 2025: $2,109,524). Significant changes in the state of affairs There were no other significant changes in the state of affairs of the Group during the financial year. Matters subsequent to the end of the financial year Subsequent to reporting date, a total of 1,000,000 unlisted options with an exercise price of $0.012 and an expiry date of 11 November 2027 have been converted into fully paid ordinary shares. On 2 July 2026, 15,000,000 unlisted Broker options were issued with an exercise price of $0.016 and an expiry date of 11 November 2027. No other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Likely developments and expected results of operations Information on likely developments in the operations of the Group and the expected results of operations have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the Group. Environmental regulation The Group is aware of its occupational health and safety and environmental obligations with regard to its exploration activities and ensures that it complies with all regulations when carrying out exploration work. Information on directors and senior management The names and particulars of the directors of the Company during or since the end of the financial year and up to the date of this report are noted below. Except where indicated, directors have held office during and since the end of the financial year:
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AusQuest Limited Directors' report 30 June 2026 6 Name: Greg Hancock Title: Non-Executive Director and Chairman Qualifications: BA Econs., BEd Hons. Experience and expertise: Greg has had over 35 years’ experience in capital markets practicing in the area of corporate finance. He maintains close links with the stockbroking and investment banking community on behalf of the Company. Other current directorships: - Triangle Energy (Global) Limited – since 15 February 2022 - Tetragon Energy Limited (ASX:TET) – since 6 February 2025 - WA Gold Limited (ASX:WAU) formerly BMG Resources Ltd (ASX:BAU) – since 6 February 2017 Former directorships (last 3 years): - Cobra Resources PLC – 1 March 2018 to 13 April 2026 - Group 6 Metals Ltd – 26 February 2019 to 4 December 2024 - Golden State Mining Limited – November 2018 to 11 December 2025 Interests in shares: 4,586,415, fully paid ordinary shares Interests in options: 5,000,000 share options (unlisted) Interests in rights: 12,000,000 performance rights Name: Graeme Drew Title: Managing Director Qualifications: B.Sc.Hons., FAIMM, MASEG Experience and expertise: Graeme has over 40 years’ experience in the exploration industry in Australia and overseas. Prior to co-founding AusQuest Limited he was an Exploration Manager for CRAE and Rio Tinto Exploration Pty Ltd in Western Australia (9 years) and Eastern Australia (4 years). He has wide experience in the search for, and evaluation of, most base and precious metals (notably nickel, copper, gold, uranium, zinc and diamonds). Graeme has developed a passion for the ‘big picture’ and ‘big project’ generation which he strongly believes are the building blocks for successful exploration outcomes Other current directorships: Graeme holds no other directorships in listed companies over the last three years. Former directorships (last 3 years): Nil Interests in shares: 30,977,123 fully paid ordinary shares Interests in options: 13,864,681 share options (unlisted) Interests in rights: 22,000,000 performance rights Name: Christopher Ellis Title: Non-Executive Director Qualifications: B.Sc.Hons. Experience and expertise: Chris is an experienced mining executive with over 30 years’ experience in geology, exploration, mine planning and project development in Australia and overseas. He was a founding member and Executive Director of Excel Coal Limited which was the subject of a take- over bid by the US coal giant Peabody Energy Inc, and has held senior positions within Shell Coal’s Exploration, BP Coal (London and USA), Agipcoal Australia and the Stratford Joint Venture. Other current directorships: - Group 6 Metals Ltd - 8 November 2012 Former directorships (last 3 years): Nil Interests in shares: 298,520,963 fully paid ordinary shares Interests in options: 38,681,704 share options (unlisted) Interests in rights: Nil performance rights 'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. 'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.
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AusQuest Limited Directors' report 30 June 2026 7 Company secretary Henko Vos Company secretary Mr Vos is a member of the Governance Institute of Australia, the Australian Institute of Company Directors and Chartered Accountants Australia & New Zealand with more than 25 years’ experience working within public practice. He holds similar secretarial roles in various other listed public companies in both industrial and resource sectors. He is a Partner of Horizon Nexus Partners. Meetings of directors The following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the financial year ended 30 June 2026 and the number of meetings attended by each director (while they were a director or committee member). During the financial year 5 board meetings, 1 audit committee meetings and 1 nomination and remuneration committee meeting were held. Full Board Nomination and Remuneration Committee Audit and Risk Committee Attended Held Attended Held Attended Held Greg Hancock 5 5 1 1 1 1 Graeme Drew 5 5 1 1 1 1 Christopher Ellis 5 5 1 1 1 1 Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee. Review of Operations Peru – Copper-Gold ● Successful drilling programs expanded the Cangallo porphyry copper-gold discovery from a defined footprint of ~800m x 500m to a continuous mineralised corridor exceeding 1,500m in strike length, 250-500m in width, remaining open at depth and along strike. ● Stage 3 RC drilling was completed at Cangallo (54 holes for ~21,600m), with multiple broad intersections confirming the large-scale nature of the copper-gold system. Emerging higher-grade zones (up to 1.09% Cu) associated with intrusive dykes highlighted the potential for higher copper grades at depth, especially in the south where increasing gold grades (up to 0.43g/t Au) were also reported. ● Stage 3 diamond drilling commenced during the year with three holes (~2,500m) completed before year-end, extending the vertical extent of the mineralisation to at least 800m, including an intercept of 555m @ 0.26% Cu and 0.06g/t Au from 5m (CANDD002). ● The potential of this exciting new copper discovery continues to grow, with each new drilling program increasing the extent of the mineralisation as well as the potential for higher-grade hypogene mineralisation beneath the depth of RC drilling. ● Stage 4 drill permits were advanced to allow the southern and eastern extensions of the Cangallo system to be tested by drilling. An additional 20 drill pads are expected to available for drilling within H2 CY2026. ● Drill permits were received and maiden drilling was completed at both the Playa Kali iron-oxide copper-gold (IOCG) Project and the Lantana porphyry copper prospect, expanding the drilled footprint of the wider Cangallo District. ● At Playa Kali, reconnaissance RC drilling (12 holes for 3,733m) highlighted the potential for widespread iron- oxide copper-gold (IOCG) systems beneath the extensive cover, whilst at Lantana results from the 9-hole, 2,794m drill program were pending at the end of the reporting period.
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AusQuest Limited Directors' report 30 June 2026 8 Australia – Copper, Gold, Zinc, Nickel ● The Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32 Limited (South32) was extended for a further two years to December 2027, continuing funding arrangements for the Company's Australian base metal exploration. ● Davis Tube Recovery test work at the Morrisey Magnetite Project confirmed four additional prospects capable of producing a premium iron product (>70% Fe), materially expanding the Project's potential scale. ● Maiden RC drilling at the Mt Davis Project returned encouraging near-surface lead-zinc-copper values (including 8m @ 9,485ppm Pb and a peak grade of 2.8% Pb), highlighting the project’s prospectivity. ● A substantial RC drilling program (~65 holes, ~8,000m) was designed to test a range of base metal targets at the Balladonia Project. Final approvals from Government are awaited to allow drilling to commence within the Dundas Nature Reserve. ● Heritage clearance was obtained and RC drilling commenced at the Coober Pedy IOCG Project. Drilling was suspended due to poor ground conditions, with the Company transitioning to mud rotary/diamond drilling early in FY2027, to test the priority targets. Corporate ● A $10 million (before costs) capital raising was completed in December 2025 to accelerate drilling at Cangallo. The raise was strongly supported by domestic and international institutional and professional investors. ● The cash position moved from ~$7.2 million at the start of the financial year to ~$10.0 million following the placement, before finishing the year at ~$6.4 million as exploration investment increased to fund drilling campaigns in Peru and Australia. Figure 1: Project Locations – Australia and Peru.
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AusQuest Limited Directors' report 30 June 2026 9 REVIEW OF PROJECTS PERU: COPPER-GOLD AusQuest holds a substantial portfolio of copper-gold prospects along the southern coastal belt of Peru, targeting porphyry copper and replacement-style (manto) IOCG systems. Peru remains one of the world's premier copper exploration destinations, and the Company's tenements are strategically positioned close to the coast and existing infrastructure. Cangallo Copper Project (AQD 100%)1 The Cangallo Project sits within a large-scale caldera-like structure approximately 8km from the coast, at elevations of 500-1,200 metres, hosting a partially exposed copper (+/- gold) porphyry system first identified through geological mapping and rock-chip sampling. At the start of the reporting period, Stage 2 Reverse Circulation (RC) drilling had defined mineralisation over an area of approximately 800m x 500m, returning results as 324m @ 0.30% Cu and 0.07g/t Au (CANRC012), including a higher-grade zone of 160m @ 0.45% Cu. Copper was intersected from near-surface to depths of more than 300m, closely associated with sericite alteration and oxidised to depths exceeding 250m, indicating potential amenability to heap leaching. Stage 3 RC drilling subsequently extended the mineralised system more than 500 metres further south, increasing the overall porphyry footprint to more than 1.0 kilometre from north to south. A limited diamond drilling program (2 holes for ~1,630m) delivered an intersection of 555 metres @ 0.26% Cu and 0.06g/t Au from just 5 metres depth (CANDD002), extending the mineralisation to a vertical depth of at least 700m and confirming the substantial scale of the porphyry system. Hypogene (primary sulphide) copper was identified below the oxide zone in association with chlorite/sericite alteration in stockwork veins (up to 2cm thick) within the host volcanics. Final assays from the first phase of Stage 3 RC drilling (20 holes, 7,836m) confirmed the continuity of the porphyry system over a strike length exceeding 1,500 metres, 250-500 metres in width, and to depths beyond 400 metres. Multiple broad intercepts were reported, including 172m @ 0.33% Cu from 154m (CANRC032) and 164m @ 0.33% Cu from 304m (CANRC034), along with narrower higher-grade zones containing up to 0.72% Cu. The Stage 3 RC program was completed by year-end for a cumulative total of 54 RC holes and approximately 21,600 metres of drilling. Results continued to demonstrate the large scale and continuity of mineralisation, with broad intercepts including 236m @ 0.30% Cu from 2m (CANRC054) and 176m @ 0.38% Cu from 40m (CANRC052), and notably higher grades emerging in the south, including 12m @ 1.09% Cu (CANRC048) and 12m @ 0.77% Cu (CANRC047) within porphyritic quartz diorite dykes, pointing to the possible presence of a source porphyry stock. Gold grades also increased to the south, with intersections of up to 0.43g/t Au. Multiple drill intercepts of +0.5% Cu over a thickness of more than 10 metres provide a high degree of confidence that higher-grade zones will be defined within the porphyry system as drilling progresses. These intersections occur within the broader mineralised envelope (>0.1% Cu), demonstrating the capability of the system to produce higher- grade copper either through supergene enrichment processes or as hypogene mineralisation within dykes and stockwork veins occurring with the greater porphyry system.
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AusQuest Limited Directors' report 30 June 2026 10 Figure 2: Cangallo Prospect drill-hole plan showing completed RC/diamond drilling, planned Stage 4 drill pads, and surface copper-gold assay anomalism — illustrating that the system remains open in multiple directions (surface rock-chip assays first reported in ASX releases – 30 March and 09 November 2023). Many of the RC drill-holes completed across the prospect ended in mineralisation, indicating that the system remains open in several directions, including at depth. Stage 3 diamond drilling (approximately six holes for 5,000m+) commenced late in the year to test for deeper hypogene mineralisation below the ~350m limit of RC drilling and to provide critical geological information that will help vector towards higher-grade copper mineralisation extending to depth. The first hole, CANDD003, reached a depth of ~880m intersecting copper in stockwork veins from near-surface to approximately 550m, with primary sulphides (chalcopyrite ± pyrite, rare bornite/molybdenite) below the supergene zone. The diamond drilling program is expected to continue for several months into the new financial year. 1- Refer ASX announcements lodged on 23 January 2025, 6 February 2025, 21 July 2025, 28 August 2025, 12 November 2025, 6 January 2026, 11 February 2026, 4 March 2026, 6 May 2026, 22 July 2026, and 3 September 2026.
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AusQuest Limited Directors' report 30 June 2026 11 Cerro de Fierro Copper Project (AQD 100%) The Cerro de Fierro Project lies at the southern end of a recognised IOCG metallogenic belt in southern Peru, within ~150km of the Mina Justa deposit (~475Mt @ 0.68% Cu). Surface indicators of porphyry copper mineralisation have been identified within the project area, associated with a major E-W structural corridor considered a priority target zone for porphyry copper deposits within the coastal belt of southern Peru. The Lantana Prospect2, located within the Cerro de Fierro/Pirata Project area east of Cangallo, is considered a high- priority porphyry copper target given its scale (~2,000m x 800m) and anomalous surface copper (often >1.0% Cu), molybdenum and bismuth values. Drill permitting progressed through the year with full drill permits received in Q1 CY2026, allowing a maiden reconnaissance RC program (9 holes, 2,794m) to be completed by year-end. Assay results were pending at the end of the reporting period. Geological mapping had identified large areas of advanced argillic alteration (AAA) within the dominantly andesitic volcanic sequence, with high-grade copper values occurring within dyke-like features marginal to the mapped AAA (lithocap), highlighting the potential for a nearby strongly mineralised porphyry system. 2- Refer ASX announcements lodged on 28 April 2023, 31 July 2023, 30 October 2023, 15 April 2026, 5 June 2026 and 20 August 2026. Playa Kali Copper-Gold Project (AQD 100%)3 The Playa Kali Project, located near the coastal town of Chala and ~120km south-east of the Mina Justa copper deposit, is targeting manto-style copper-gold mineralisation associated with iron-oxide (magnetite) outcrops, within a sequence of sediments similar to those found near the Marcona and Mina Justa deposits. Geological mapping, rock- chip sampling and ground magnetic surveys defined target areas for drilling over the course of the year. Drill permitting was completed in the March Quarter, and a 12-hole, 3,733m reconnaissance RC program was completed during the June Quarter. Drilling intersected a mixed package of volcanics and sediments containing variable amounts of disseminated magnetite, with highly anomalous copper values (>1,000ppm Cu) intersected in many holes. Significant results included 12m @ 0.2% Cu and 0.05g/t Au (BOH) in PKRC007, 10m @ 0.37% Cu in PKRC009, and 28m @ 218ppm Mo (including 4m @ 617ppm Mo) in PKRC004, highlighting the potential for widespread iron-oxide copper-gold (IOCG) systems beneath the extensive cover in the area. A review of the combined drilling, surface and geophysical data is in progress to prioritise further targets for drilling. 3- Refer ASX announcements lodged on 31 July 2023, 30 October 2023, 15 & 30 April 2026, 5 June 2026 and 8 July 2026. Other Opportunities (Peru) The Parcoy IOCG Project, located ~50km north-west of Cerro de Fierro and the Chololo Project near Ilo, both remained dormant through the year as Company resources were focused on the Cangallo, Lantana and Playa Kali Projects. The Company continues to view these projects as prospective copper targets that were not tested by earlier wide- spaced drilling and is considering its options for future work in both areas. The search for new copper opportunities in Peru remains secondary to advancing the Cangallo District, which the Company considers has the greatest potential to materially impact its value.
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AusQuest Limited Directors' report 30 June 2026 12 AUSTRALIA BASE METALS: COPPER, GOLD, ZINC AND NICKEL AusQuest's Australian exploration is conducted principally under the Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32 Limited. This agreement was first established in February 2017 and was extended for a further two years to December 2027. The SAA funds work across Balladonia, Morrisey, Coober Pedy and Mt Davis, targeting copper and zinc with potential gold and silver credits. Balladonia Base Metal Project (AQD 100% subject to SAA) Located near the Nova-Bollinger nickel-copper deposit in the Fraser Range Terrane, Balladonia is prospective for multiple mineralisation styles including nickel-copper, iron-oxide copper-gold (IOCG), Broken Hill Type (BHT) and, more recently, rare earth elements associated with carbonatite intrusions. Through the year, the Company completed interpretation of earlier RC drilling results including multi-element geochemical data, identifying anomalous bismuth, molybdenum, tellurium and copper values along the Tea Tree Trend as well as anomalous lead values associated with quartz-garnet-magnetite rocks. A substantial new RC drilling program (~65 holes, ~8,000m) was subsequently designed to target lead-zinc and copper-gold mineralisation along the southern extensions of the Tea Tree Trend, within the Dundas Nature Reserve (DNR). Native Title Heritage and Flora and Fauna surveys were successfully completed over the proposed targets, with the Reserve Activity Management Plan (RAMP) approval currently progressing through government. Drilling is anticipated to commence in Q4 CY2026. Morrisey Magnetite Project (100% AQD subject to SAA) Morrisey, located in WA's Midwest mining district, hosts coarse-grained magnetite upgradable to a premium iron product (>70% Fe) suitable for green iron smelting. Davis Tube Recovery (DTR) test work undertaken during the year confirmed four additional prospects (Murchison, Murchison South, Sandfly and Waterfall North) that are capable of producing a premium-grade magnetite product from a relatively coarse grind (75um), materially expanding the Project's apparent scale beyond the original Waterfall discovery. During the year, work focused on gravity/magnetic modelling to estimate the combined magnetite inventory, which resulted in the Company lodging a new Exploration Licence application to secure additional magnetic targets immediately north of Waterfall. Further evaluation of the Project continues to be considered under the SAA. Coober Pedy Copper-Gold Project (100% AQD subject to SAA) 4 Located in the Gawler Craton near the Prominent Hill copper-gold deposit, the Coober Pedy Project is targeting IOCG mineralisation close to the Elizabeth Creek Fault Zone. Target definition using magnetic, gravity and IP data was completed early in the year, with a 13-hole (~4,500m) RC drilling program designed to test four prospects – Jack Russell, Greyhound, Bulldog and Basset Hound. Heritage clearance was obtained and drilling to test a range of target types commenced late in the year. The initial RC drilling program was suspended after only three holes successfully reached basement due to a thick (~30m) unconsolidated dry sand unit that could not always be penetrated by the RC drilling. The Company has subsequently transitioned to mud rotary drilling with diamond tails, with a ~10-hole (~3,500m) program to test the priority target areas commencing early in FY2027. Results are pending. 4- Refer ASX announcements lodged on 17 July 2025, 11 June 2026, and 13 August 2026. Mt Davis Lead-Zinc-Copper Project (100% AQD subject to SAA) 5 The Mt Davis Project is targeting sediment-hosted Cu-Pb-Zn mineralisation along the northern margin of the Earaheedy Basin. A maiden 9-hole (1,884m) reconnaissance RC drilling program completed during the year to test soil geochemical anomalies associated with a VTEM target returned encouraging near-surface base metal values, including 18m @ 2,010ppm Pb and 583ppm Cu (MDRC02), 24m @ 3,586ppm Pb and 0.47g/t Ag (MDRC04), and 8m @ 9,485ppm Pb and 0.44g/t Ag (MDRC03), with a peak lead value of 2.8% Pb.
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AusQuest Limited Directors' report 30 June 2026 13 These results supported further exploratory work in the area, which to date has had very little exploration attention. By year-end, the Company had planned ground electromagnetic (EM) surveys to follow-up the VTEM results and was in the process of obtaining Heritage Clearance for the ground geophysical surveys. The targets identified occur beneath the Frere Iron Formation in a similar stratigraphic position to mineralisation discovered by Rumble Resources on the southern side of the Basin. 5- Refer ASX announcements lodged on 17 September 2024, 2 April 2025, 13 October 2025, and 23 December 2025 . Hamilton Copper Project (AQD 100%) Hamilton, located in north-west Queensland near the Cannington and Osborne mines, is targeting iron-oxide, copper- gold (IOCG) and Broken Hill Type mineralisation beneath extensive cover. Limited earlier drilling provided evidence for "near-miss" situations that remain the focus of ongoing exploration. A planned drill program was deferred for much of the year pending Queensland Government co-funding under the Collaborative Exploration Initiative. That funding application was ultimately unsuccessful, and further work at Hamilton remains under review against other Company priorities. New Opportunities and Project Generation (Australia) New exploration opportunities within Australia continued to be assessed by the Company's consultants throughout the year, although no new project acquisitions were reported. COMPETENT PERSON’S STATEMENT The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Drew consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears. NO NEW INFORMATION To the extent that this announcement contains references to prior exploration results which have been cross referenced to previous market announcements made by the Company, unless explicitly stated, the Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements. FORWARD LOOKING STATEMENT This report contains forward looking statements concerning the projects owned by AusQuest Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management’s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
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AusQuest Limited Directors' report 30 June 2026 14 Operating and financial risks The Group's activities have inherent risk and the Board is unable to provide certainty of the expected results of activities, or that any or all of the likely activities will be achieved. The material business risks faced by the Group that could influence the Group’s future prospects, and how the Group manages these risks, are provided below. Operational risk The Company may be affected by various operational factors. In the event that any of these potential risks eventuate, the Company's operational and financial performance may be adversely affected. No assurances can be given that the Company will achieve commercial viability through successful exploration outcomes on its tenement holdings. Until the Company is able to realise value from its projects, it is likely to incur ongoing operating losses. The operations of the Company may be affected by various factors, including failure to locate or identify mineral deposits, failure to achieve predicted grades during exploration, operational and technical difficulties encountered during exploration, lack of infrastructure in the Company’s areas of operation, unanticipated metallurgical problems which may affect value of defined resources, increases in the costs of consumables, spare parts, plant and equipment. Mineral resource estimates are made in accordance with the 2012 edition of the JORC Code. Mineral resources are estimates only. An estimate is an expression of judgement based on knowledge, experience and industry practice. Estimates may alter significantly when new information or techniques become available. Resource estimates can be imprecise and depend on interpretations, which may prove to be inaccurate. The Company’s tenements are at various stages of exploration, and potential investors should understand that mineral exploration is a speculative and high-risk undertaking that may be impeded by circumstances and factors beyond the control of the Company. The Company has exploration tenements in Australia and Peru which operate under different regulatory conditions which may impact on time taken to evaluate projects and may affect the viability of resources found by the Company’s exploration programmes. There can no assurance that exploration of tenements, or any other exploration properties that may be acquired in the future, will result in the discovery of an economic mineral resource. Even if an apparently viable deposit is identified, there is no guarantee that it can be economically exploited. In the event the Company successfully delineates economic deposits on any Tenement, it will need to apply for a mining lease to undertake development and mining on the relevant tenement. There is no guarantee that the Company will be granted a mining lease and if it is granted, it will be subject to conditions which may impact on the financial viability of the project. Further capital requirements The Company’s projects may require additional funding in order to progress activities. There can be no assurance that additional capital or other types of financing will be available if needed for further exploration and/or possible development activities or that, if available, the terms of such financing will be favourable to the Company. Native title and Aboriginal Heritage There are areas of the Company’s projects over which common law and/or statutory Native Title rights of Aboriginal Australians exist. Where Native Title rights exist, the Company must obtain consent of the relevant Traditional Landowners to progress exploration, development and mining phases of operations. Where there is an Aboriginal Site for the purposes of the Aboriginal Heritage legislation, the Company must obtain consents in accordance with the legislation before any ground disturbing activities can take place. There are no guarantees that a suitable agreement can be reached with the Native Title parties. The Company’s activities are subject to Government regulation and approvals Company is subject to certain Government regulations and approvals. Any material adverse change in government policies or legislation in Australia or Peru that affect mining, processing, development and mineral exploration activities, export activities, income tax laws, royalty regulations, government subsidies and environmental issues may affect the viability and profitability of any planned exploration and/or development of the Company's projects.
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AusQuest Limited Directors' report 30 June 2026 15 Global conditions General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company’s exploration and potential development activities, as well as on its ability to fund those activities. General economic conditions, laws relating to taxation, new legislation, trade barriers, interest and inflation rates, currency exchange controls, national and international political circumstances (including outbreaks in international hostilities, wars, terrorist acts, sabotage, subversive activities, security operations, labour unrest, civil disorder, and states of emergency), natural disasters (including fires, earthquakes and floods), and quarantine restrictions, epidemics and pandemics, may have an adverse effect on the Company's operations and financial performance, including the Company’s exploration and development activities, as well as on its ability to fund those activities General economic conditions may also affect the value of the Company and its market valuation regardless of its actual performance. Remuneration report (audited) This report, which forms part of the directors’ report, outlines the remuneration arrangements in place for the key management personnel of AusQuest Limited (the “Company”) for the financial year ended 30 June 2026. The information provided in this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001. The 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 and the Group, directly or indirectly, including any director (whether executive or otherwise) of the parent Company. The remuneration report is set out under the following main headings: ● Principles used to determine the nature and amount of remuneration ● Details of remuneration ● Service agreements ● Share-based compensation ● Additional disclosures relating to key management personnel ● Additional information Principles used to determine the nature and amount of remuneration The objective of the Group's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward governance practices: ● competitiveness and reasonableness ● acceptability to shareholders ● performance linkage / alignment of executive compensation ● transparency The Nomination and Remuneration Committee is responsible for determining and reviewing remuneration arrangements for its directors and executives. The performance of the Group depends on the quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high performance and high quality personnel. In consultation with external remuneration consultants (refer to the section 'Use of remuneration consultants' below), the Nomination and Remuneration Committee has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the Group.
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AusQuest Limited Directors' report 30 June 2026 16 The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it should seek to enhance shareholders' interests by: ● having economic profit as a core component of plan design ● focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value ● attracting and retaining high calibre executives Additionally, the reward framework should seek to enhance executives' interests by: ● rewarding capability and experience ● reflecting competitive reward for contribution to growth in shareholder wealth ● providing a clear structure for earning rewards In accordance with best practice corporate governance, the structure of non-executive director and executive director remuneration is separate. Non-executive directors remuneration Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors' fees and payments are reviewed annually by the Nomination and Remuneration Committee. The Nomination and Remuneration Committee may, from time to time, receive advice from independent remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market. The chairman's fees are determined independently to the fees of other non-executive directors based on comparative roles in the external market. The chairman is not present at any discussions relating to the determination of his own remuneration. Executive remuneration The Group aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has both fixed and variable components. The executive remuneration and reward framework has four components: ● base pay and non-monetary benefits ● short-term performance incentives ● share-based payments ● other remuneration such as superannuation and long service leave The combination of these comprises the executive's total remuneration. Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the Nomination and Remuneration Committee based on individual and business unit performance, the overall performance of the Group and comparable market remunerations. Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits) where it does not create any additional costs to the Group and provides additional value to the executive. The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles of executives. STI payments are granted to executives based on specific annual targets and key performance indicators ('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and product management. The long-term incentives ('LTI') include long service leave and share-based payments. Shares are awarded to executives over a period of three years based on long-term incentive measures. These include increase in shareholders value relative to the entire market and the increase compared to the Group's direct competitors. The Nomination and Remuneration Committee reviewed the long-term equity-linked performance incentives specifically for executives which was approved by shareholders at the AGM held 18 November 2025. Consolidated entity performance and link to remuneration The Nomination and Remuneration Committee is of the opinion that the continued improved results can be attributed in part to the adoption of performance based compensation and is satisfied that this improvement will continue to increase shareholder wealth if maintained over the coming years.
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AusQuest Limited Directors' report 30 June 2026 17 The Group did not engage remuneration consultants during the financial year ended 30 June 2026. It did however undertook a detailed comparison of similar size entities operating in comparable commodities and geographical areas. As only the managing director previously received a director fee, the Board agreed to commence payment of directors fees to all directors, effective January 2026. The Company used similar comparisons to assess the remuneration benefits of other senior staff and consultants. At the 18 November 2025 AGM, 99.92% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2025. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. Details of remuneration Amounts of remuneration The key management personnel of the Group consisted of the following directors of AusQuest Limited: ● Greg Hancock: Non-Executive Director & Chair ● Chris Ellis: Non-Executive Director ● Graeme Drew: Managing Director There were no group executives employed by AusQuest Limited during the year. Remuneration policy and relationship between the remuneration policy and Company performance The Board policy for determining remuneration is based on the principle of remunerating directors and senior executives on their ability to add value to the Company (taking into account the Company’s strategic plan and operations) whilst also considering market remuneration packages for similar positions within the industry and in consultation with external consultants. The Board appreciates the interrelationship between this policy and Company performance. It acknowledges that it is in the best interests of shareholders to provide challenging but achievable incentives to reward senior executives for reaching the Company’s stated goals. The Board will discuss these issues internally and with candidates prior to engaging additional directors or senior executives in the future. Key management personnel (excluding non-executive directors) The Remuneration Committee is responsible for determining the remuneration policies for the Group, including those affecting executive directors and other key management personnel. The Committee may seek appropriate external advice to assist in its decision making. Remuneration policies and practices are directed primarily at attracting, motivating and retaining key management personnel. The remuneration policy for executive directors and other key management personnel has the following key elements ● Primary benefits (being salary, fees, bonus and non-monetary benefits) ● Post-employment benefits (being superannuation) ● Equity (being share options granted at the discretion of the Board) ● Other benefits Non-Executive Directors The Company’s Non-Executive Directors receive only fees (including statutory superannuation) for their services and the reimbursement of reasonable expenses. The fees paid to the Company’s Non-Executive Directors reflect the demands on, and responsibilities of these directors. They do not receive any retirement benefits (other than compulsory superannuation). The Board decides annually the level of fees to be paid to Non-Executive Directors with reference to market standards. Non-Executive Directors may also receive share options where this is considered appropriate by the Board as a whole and with regard to the stage of the Company’s development. Such options vest across the life of the option and are primarily designed to provide an incentive to Non-Executive Directors to remain with the Company. A Non-Executive Directors’ fee pool limit of $300,000 per annum was previously approved by the shareholders.
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AusQuest Limited Directors' report 30 June 2026 18 Remuneration of key management personnel Short-term benefits Post employment benefits Long term employee benefits Share-based payments Salary and Fees Other(i) Super- annuation Other Options / Performance Rights Total Performance Related $ $ $ $ $ $ % 2026 Directors Graeme Drew 237,500 - 28,500 - 277,646 543,646 51% Greg Hancock 36,000 24,000 - - 151,961 211,961 72% Chris Ellis 21,429 - 2,571 - - 24,000 - 294,929 24,000 31,071 - 429,607 779,607 (i) Mr Hancock received $24,000 (2025: $48,000) for corporate advisory services rendered to the Company. Short-term benefits Post employment benefits Long term employee benefits Share-based payments Salary and Fees Other(i) Super- annuation Other Options / Performance Rights Total Performance Related $ $ $ $ $ $ % 2025 Directors Graeme Drew 200,000 - 23,000 - 40,316 263,316 15% Greg Hancock - 48,000 - - 22,066 70,066 31% Chris Ellis - - - - - - - 200,000 48,000 23,000 - 62,382 333,382 Service agreements Remuneration and other terms of employment for the Managing Director, Graeme Draw are formalised in a service agreement. Major provisions of this agreement are set out below: Name: Graeme Drew Title: Managing Director Agreement commenced: 21 April 2015 Details: - Base salary reviewed annually, salary of $290,000 from 1 January 2026 (excluding superannuation entitlements). - Payments of termination benefit on early termination by the employer, other than for gross misconduct, equal to 3 months’ salary, other than if there is a change of control of the Company, which will result in 12 months’ salary. - Notice period of 90 days. The consulting agreement in place with the Chairman, Greg Hancock is summarised below: Name: Greg Hancock Title: Non-Executive Directors & Chairman Term of agreement: Renews annually (agreement was terminated 31 December 2025 - refer below) Details: - Fee of $48,000 (from 1 July 2023) - No payment of termination benefits
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AusQuest Limited Directors' report 30 June 2026 19 During the year the Company commenced payment of Director fees to its Non-Executive Directors, the details of which are set out below: Name: Chris Ellis Title: Non-Executive Director Details: Remuneration of $48,000 (including superannuation entitlements) Effective 1 January 2026 Name: Greg Hancock Title: Non-Executive Directors & Chairman Details: Remuneration of $72,000 (including superannuation entitlements) Effective 1 January 2026 Key management personnel have no entitlement to termination payments in the event of removal for misconduct. Share-based compensation Director ordinary shares There were no shares issued to directors and other key management personnel as part of compensation during the year ended 30 June 2026. Director share options There were no options granted as remuneration to Directors during the year ended 30 June 2026. There were no ordinary shares issued during the year ended 30 June 2026 and up to the date of this report on the exercise of options granted. There were no options granted as remuneration to Directors that lapsed or expired during the year ended 30 June 2026. Details of unissued shares or interest under options granted as remuneration to Directors as at the date of this report are: Issuing Entity Number of shares under option Exercise price of option Expiry date of option Unlisted AusQuest Limited 20,000,000 0.03 30-Nov-26 Performance rights There were no performance rights granted as remuneration to Directors during the year. Details of unissued shares or interests under performance rights as at the date of this report are: Issuing Entity Number of shares under rights Expiry price of rights Expiry date of rights AusQuest Limited 34,000,000 0.01 cents each 3-Jun-29 Refer Note 21 'Share-based payments' for inputs into the fair value calculations.
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AusQuest Limited Directors' report 30 June 2026 20 Additional disclosures relating to key management personnel Shareholdings The number of shares in the Company held during the financial year by each director and other members of key management personnel of the Group, including their personally related parties, is set out below: Balance at Granted Balance at the start of as Other Disposals/ the end of the year Compensation Movements(i) other the year Ordinary shares Greg Hancock 4,586,415 - - - 4,586,415 Graeme Drew 29,274,995 - 1,702,128 - 30,977,123 Chris Ellis 277,244,367 - 21,276,596 - 298,520,963 311,105,777 - 22,978,724 - 334,084,501 (i) Participation in the non-renounceable, pro-rata rights offer and placement. Option holdings The number of options in the Company held during the financial year by each director and other members of key management personnel of the Group, including their personally related parties, is set out below: Balance at start of the year Granted as compensation Other Movements(i) Lapsed / Expired Balance at end of the year Vested during the year Vested and exercisable at end of the year Directors Greg Hancock 5,000,000 - - - 5,000,000 - 5,000,000 Graeme Drew 13,864,681 - - - 13,864,681 - 13,864,681 Chris Ellis 38,681,704 - - - 38,681,704 - 38,681,704 57,546,385 - - - 57,546,385 - 57,546,385 Performance rights The number of performance rights in the Company held during the financial year by each director and other members of key management personnel of the Group, including their personally related parties, is set out below: Balance at start of the year Granted as compensation Other Movements(i) Lapsed / Expired Balance at end of the year Vested during the year Vested and exercisable at end of the year Directors Greg Hancock 12,000,000 - - - 12,000,000 - 12,000,000 Graeme Drew 22,000,000 - - - 22,000,000 - 22,000,000 34,000,000 - - - 34,000,000 - 34,000,000 Loans to key management personnel and their related parties There were no loans to or from related parties at the current and previous reporting date. Other transactions with key management personnel and their related parties The following transactions occurred with key management personnel: Consolidated 2026 2025 $ $ Corporate advisory services(i) 24,000 48,000
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AusQuest Limited Directors' report 30 June 2026 21 (i) The Company entered into a 12 month corporate advisory services agreement with Mr Hancock. Mr Hancock was paid $24,000 (excluding GST) for services rendered during the 12 month period ending 30 June 2026 (2025: $48,000 excluding GST). This amount is included as part of Mr. Hancock’s remuneration in the table above. There were no other transactions with key management personnel during the year. Receivable from and payable to related parties Consolidated 2026 2025 $ $ Current Fee payable to Graeme Drew and related entity 27,067 18,667 Fee payable to Greg Hancock and related entity 6,000 4,000 Fee payable to Chris Ellis and related entity 12,000 - 45,067 22,667 Additional information The table below shows the gross revenue, losses and loss per share for the last five years for the Group: 2026 2025 2024 2023 2022 Revenue and other income $ 385,293 494,591 224,547 1,120,783 744,656 Net (loss)/profit $ (3,040,267) (2,109,524) 256,727 361,982 (1,457,728) Earnings/(Loss) per share Cents (0.20) (0.19) 0.03 0.04 (0.18) Share price at year end $ 0.040 0.059 0.013 0.015 0.021 This concludes the remuneration report, which has been audited. Shares under option Unissued ordinary shares of AusQuest Limited under option at the date of this report are as follows: Issuing Entity Number of shares under option Exercise price of option Expiry date of option Unlisted AusQuest Limited 20,000,000 3 cents each 30-Nov-26 AusQuest Limited 15,700,000 3 cents each 30-Nov-26 AusQuest Limited 95,135,321 1.2 cents each 11-Nov-27 AusQuest Limited 20,000,000 7.05 cents each 06-Feb-29 No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the Company or of any other body corporate. Shares issued on the exercise of options The following ordinary shares were issued during the year ended 30 June 2026 and up to the date of this report on the exercise of options granted: Issuing Entity Number of Shares issued Exercise price of options Expiry date of options AusQuest Limited 19,784,492 1.2 cents each 11-Nov-27 AusQuest Limited 3,300,000 3 cents each 30-Nov-26 23,084,492
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AusQuest Limited Directors' report 30 June 2026 22 Performance Rights Details of unissued shares or interest under performance rights as at the date of this report are: Issuing Entity Number of shares under rights Expiry price of rights Expiry date of rights AusQuest Limited 43,500,000 0.01 cents each 30-Nov-27 AusQuest Limited 34,000,000 0.01 cents each 03-Jun-29 Shares issued on the exercise of performance rights The following ordinary shares were issued during the year ended 30 June 2026 and up to the date of this report on the exercise of performance rights granted: Issuing Entity Number of Shares issued Exercise price of options Expiry date of options AusQuest Limited 14,000,000 0 cents each 31-Dec-25 Indemnity and insurance of officers The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where a liability arises out of conduct involving a lack of good faith. During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The insurance premiums relate to: ● any loss for which the directors and officers may not be legally indemnified by the Company arising out of any claim, by reason of any wrongful act committed by them in their capacity as a Director or Officer of the Company or any related corporation, first made against them jointly or severally during the year of insurance; and ● indemnifying he Company against any payment which it has made and was legally permitted to make arising out of any claim, by reason of any wrongful act, committed by any Director or Officer in their capacity as a Director or Officer of the Company or any r elated corporation, first made against the Director or Officer during the period of insurance. Indemnity and insurance of auditor The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Proceedings on behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Non-audit services There were no non-audit services provided during the financial year by the auditor (or by another person or firm on the auditor’s behalf). Officers of the Company who are former partners of HLB Mann Judd There are no officers of the Company who are former partners of HLB Mann Judd.
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AusQuest Limited Directors' report 30 June 2026 23 Auditor's independence declaration Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the Company with an independence declaration in relation to the audit of the financial report. This independence declaration is included on page 24 of the annual report and forms part of this directors’ report for the year ended 30 June 2026. Group performance and its consequences on shareholder wealth It is not possible at this time to evaluate the Group's financial performance using generally accepted measures such as profitability and total shareholder return as the Group is focussed on exploration activities with no significant revenue stream. This assessment will be developed as and when the Group moves from explorer to producer. Auditor HLB Mann Judd continues in office in accordance with section 327 of the Corporations Act 2001. This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors Graeme Drew Managing Director 21 September 2026
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24 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the consolidated financial report of AusQuest Limited for the year ended 30 June 2026, I declare that to the best of my knowledge and belief, there have been no contraventions of: a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) any applicable code of professional conduct in relation to the audit. Perth, Western Australia 21 September 2026 M R Ohm Partner
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25 INDEPENDENT AUDITOR’S REPORT To the Members of AusQuest Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of AusQuest Limited (“the Company”) and its controlled entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2026, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes to the financial statements, including material accounting polic y information, the consolidated entity disclosure statement and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (“the Code”) that are relevant to audit s of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 2 in the financial report, which indicates that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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26 In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. Key Audit Matter How our audit addressed the key audit matter Exploration and evaluation expenditure Refer to Note 13 in the financial report The Group has capitalised exploration and evaluation expenditure of $19,095,438 as at 30 June 2026. In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources , the Group capitalises all exploration and evaluation expenditure in respect of each identifiable area of interest, including acquisition costs. We considered this to be a key audit matter as it is considered important to the users’ understanding of the financial statements as a whole and was an area which required the most audit effort and communication with those charged with governance. Our procedures included but were not limited to the following: − We obtained an understanding of the key processes associated with management’s review of the exploration and evaluation asset carrying values; − We considered the Directors’ assessment of potential indicators of impairment; − We obtained evidence that the Group has current rights to tenure of its areas of interest; − We ensured there was substantive expenditure planned; − We verified additions to exploration expenditure during the year; − We considered the accounting treatment in relation to exploration partner funding; − We verified amounts received from the Group’s exploration partner and subsequently spent on exploration; − We enquired with management, reviewed ASX announcements and minutes of Directors’ meetings to ensure that the Group had not decided to discontinue exploration and evaluation at its area of interest; and − We examined the disclosures made in the financial report. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2026, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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27 Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of: (a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and (b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: (a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and (b) the consolidated entity disclosure statement that is true and correct and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: − Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. − Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. − Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. − Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
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28 If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. − Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. REPORT ON THE REMUNERATION REPORT Opinion on the Remuneration Report We have audited the Remuneration Report included within the Directors’ Report for the year ended 30 June 2026. In our opinion, the Remuneration Report of AusQuest Limited for the year ended 30 June 2026 complies with Section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. HLB Mann Judd M R Ohm Chartered Accountants Partner Perth, Western Australia 21 September 2026
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AusQuest Limited Directors' declaration 30 June 2026 29 In the opinion of the Directors of AusQuest Limited (the “Company”): ● the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; ● the attached financial statements and notes comply with IFRS Accounting Standards as issued by the International Accounting Standards Board as described in note 2 to the financial statements; ● the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2026 and of its performance for the financial year ended on that date; ● there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and ● the information disclosed in the attached consolidated entity disclosure statement is true and correct. The directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. This declaration is signed in accordance with a resolution of the Board of Directors. Graeme Drew Managing Director 21 September 2026
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AusQuest Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2026 Consolidated Note 2026 2025 $ $ The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 30 Revenue 6 385,293 494,591 Total revenue and other income 385,293 494,591 Expenses Consultants and employee benefits expenses (606,726) (290,866) Occupancy expenses (73,320) (29,729) Depreciation expense (14,379) (12,071) Depreciation expense of right-of-use asset (112,345) (86,061) Administrative expenses (1,317,640) (1,032,623) Share-based payments (1,079,733) (362,611) Impairment of exploration and evaluation expenditure 13 (191,991) (777,127) Finance costs (17,528) (9,617) Interest on lease liability (11,898) (3,410) Total expenses (3,425,560) (2,604,115) Loss before income tax expense 4 (3,040,267) (2,109,524) Income tax expense 7 - - Loss after income tax expense for the year attributable to the owners of AusQuest Limited 4 (3,040,267) (2,109,524) Other comprehensive (loss)/income Items that may be reclassified subsequently to profit or loss Exchange (loss)/gain on translation of foreign operations (919,836) 98,254 Other comprehensive (loss)/income for the year, net of tax (919,836) 98,254 Total comprehensive loss for the year attributable to the owners of AusQuest Limited (3,960,103) (2,011,270) Cents Cents Basic loss per share 23 (0.20) (0.19) Diluted loss per share 23 (0.20) (0.19)
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AusQuest Limited Statement of financial position As at 30 June 2026 Consolidated Note 2026 2025 $ $ The above statement of financial position should be read in conjunction with the accompanying notes 31 Assets Current assets Cash and cash equivalents 8 6,352,237 7,203,852 Trade and other receivables 10 2,487,285 669,518 Prepayments 179,697 146,443 Total current assets 9,019,219 8,019,813 Non-current assets Property, plant and equipment 11 124,958 69,725 Exploration and evaluation expenditure 13 19,095,438 10,020,253 Right-of-use assets 12 137,800 - Total non-current assets 19,358,196 10,089,978 Total assets 28,377,415 18,109,791 Liabilities Current liabilities Trade and other payables 14 3,063,365 1,458,665 Provisions 15 243,575 162,545 Unexpended funding 16 1,943,583 429,811 Lease liabilities 12 131,778 - Total current liabilities 5,382,301 2,051,021 Non-current liabilities Lease liabilities 12 10,143 - Total non-current liabilities 10,143 - Total liabilities 5,392,444 2,051,021 Net assets 22,984,971 16,058,770 Equity Issued capital 18 81,228,395 72,109,482 Reserves 19 5,481,687 4,646,132 Accumulated losses (63,725,111) (60,696,844) Total equity 22,984,971 16,058,770
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AusQuest Limited Statement of changes in equity For the year ended 30 June 2026 The above statement of changes in equity should be read in conjunction with the accompanying notes 32 Issued Share based Foreign currency Accumulated Total equity capital payment translation reserve losses Consolidated $ $ $ $ $ Balance at 1 July 2024 62,308,182 730,879 3,777,507 (59,020,639) 7,795,929 Loss after income tax expense for the year - - - (2,109,524) (2,109,524) Other comprehensive income for the year, net of tax - - 98,254 - 98,254 Total comprehensive income/(loss) for the year - - 98,254 (2,109,524) (2,011,270) Issue of shares 10,465,942 - - - 10,465,942 Share issue costs (664,642) - - - (664,642) Share based payments - 472,811 - - 472,811 Lapsed options during the period - (433,319) - 433,319 - Balance at 30 June 2025 72,109,482 770,371 3,875,761 (60,696,844) 16,058,770 Issued Share based Foreign currency Accumulated Total equity capital payment translation reserve losses Consolidated $ $ $ $ $ Balance at 1 July 2025 72,109,482 770,371 3,875,761 (60,696,844) 16,058,770 Loss after income tax expense for the year - - - (3,040,267) (3,040,267) Other comprehensive loss for the year, net of tax - - (919,836) - (919,836) Total comprehensive loss for the year - - (919,836) (3,040,267) (3,960,103) Issue of shares 10,597,106 - - - 10,597,106 Share issue costs (1,478,193) 942,350 - - (535,843) Share based payments - 1,079,733 - - 1,079,733 Lapsed performance rights during the period - (12,000) - 12,000 - Options and performance rights converted during the period - (254,692) - - (254,692) Balance at 30 June 2026 81,228,395 2,525,762 2,955,925 (63,725,111) 22,984,971
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AusQuest Limited Statement of cash flows For the year ended 30 June 2026 Consolidated Note 2026 2025 $ $ The above statement of cash flows should be read in conjunction with the accompanying notes 33 Cash flows from operating activities Receipts from South32 Group Operations Pty Ltd 387,217 469,826 Payments to suppliers and employees (1,703,324) (1,318,876) (1,316,107) (849,050) Interest received 33,278 24,765 Finance costs (17,528) (9,628) Net cash used in operating activities 9 (1,300,357) (833,913) Cash flows from investing activities Payments for property, plant and equipment 11 (74,005) (32,896) Payments for exploration and evaluation (13,509,341) (7,261,172) Proceeds received on strategic alliance and joint venture partner 4,433,506 3,941,540 Research and development tax incentive refund received - 498,868 Net cash used in investing activities (9,149,840) (2,853,660) Cash flows from financing activities Proceeds from issue of shares 18 10,000,000 10,442,042 Proceeds from issue of options 342,414 - Share issue transaction costs (572,743) (530,442) Repayment of lease liabilities (120,123) (93,000) Net cash from financing activities 9,649,548 9,818,600 Net (decrease)/increase in cash and cash equivalents (800,649) 6,131,027 Cash and cash equivalents at the beginning of the financial year 7,203,852 1,070,206 Effects of exchange rate changes on cash and cash equivalents (50,966) 2,619 Cash and cash equivalents at the end of the financial year 8 6,352,237 7,203,852
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AusQuest Limited Notes to the financial statements 30 June 2026 34 Note 1. General information The financial statements cover AusQuest Limited as a Group consisting of AusQuest Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is AusQuest Limited's functional and presentation currency. AusQuest Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business C/- Horizon Nexus Partners Level 4, 88 William Street Perth WA 6000 8 Kearns Crescent Ardross WA 6153 A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements. Note 2. Material accounting policy information The accounting policies that are material to the Group are set out below. The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated. Going concern The 30 June 2026 financial report has been prepared on the going concern basis that contemplates the continuity of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary course of business. For the year ended 30 June 2026 the Group recorded a net loss of $3,040,267 (2025 net loss: $2,109,524) and at 30 June 2026 had a net working capital surplus of $3,636,918 (30 June 2025: net working capital surplus of $5,968,792). The Group also recorded a net cash outflow from operating and investing activities for the year ended 30 June 2026 of $10,450,197 ( 2025 : net cash outflow from operating and investing activities of $3,687,573). The Company notes that the current Strategic Alliance Agreement (SAA) with S32, which covers Australian exploration and evaluation work expires 31 December 2027. Based on the Group’s cash flow forecast it is likely that the Group will need to access additional working capital in the next 12 months to advance its exploration projects and to ensure the realisation of assets on an orderly basis and the extinguishment of liabilities as and when they fall due. The directors are confident that the Group will be successful in raising additional funds through the issue of new equity, should the need arise. The directors are also aware that the Group has the option, if necessary, to defer expenditure or relinquish certain projects and reduce administration costs in order to minimise its capital raising requirements. Based on these facts, the directors consider the going concern basis of preparation to be appropriate for this financial report. However, should the Company be unsuccessful in raising additional funds through the issue of new equity, there is a material uncertainty which may cast significant doubt as to whether the Group will be able to continue as a going concern and therefore, whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The financial statements do not include any adjustments relative to the recoverability and classification of recorded asset amounts or, to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with IFRS Accounting Standards as issued by the International Accounting Standards Board ('IASB').
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 35 Historical cost convention The financial statements have been prepared under the historical cost convention. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 28. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of AusQuest Limited ('Company' or 'parent entity') as at 30 June 2026 and the results of all subsidiaries for the year then ended. AusQuest Limited and its subsidiaries together are referred to in these financial statements as the 'Group'. Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non- controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Foreign currency translation The financial statements are presented in Australian dollars, which is AusQuest Limited's functional and presentation currency. Foreign currency transactions Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign operations The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity. The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 36 Revenue recognition The Group recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability. Rendering of services Revenue from a contract to provide services is recognised over time as the services are rendered based on either a fixed price or an hourly rate. Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Income tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or ● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 37 Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no right at the end of the reporting period to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are always classified as non-current. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognised at amortised cost, less any allowance for expected credit losses. Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Fixtures, fittings and office equipment 10 - 40% Computer equipment 20 - 50% Field equipment 20 - 40% The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 38 Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 39 Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Share-based payments Equity-settled and cash-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price. The fair value of all the options/performance rights issued is determined using a Hoadley Option pricing model and/or the Parisian Barrier1 model that takes into account the exercise price, the term of the option/performance right, the impact of dilution, the share price at valuation date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option/performance right. Where the performance rights have a vesting period the expense is recognised over that period. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows: ● during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the expired portion of the vesting period. ● from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the reporting date. All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to settle the liability. Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 40 If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired. Earnings/(loss) per share Basic earnings/(loss) per share Basic earnings/(loss) per share is calculated by dividing the profit or loss attributable to the owners of AusQuest Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings/(loss) per share Diluted earnings/(loss) per share adjusts the figures used in the determination of basic earnings/(loss) per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2026. The Group's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Group, are set out below.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 41 AASB 18 Presentation and Disclosure in Financial Statements This standard is applicable to annual reporting periods beginning on or after 1 January 2027 and early adoption is permitted. The standard replaces IAS 1 'Presentation of Financial Statements', with many of the original disclosure requirements retained and there will be no impact on the recognition and measurement of items in the financial statements. But the standard will affect presentation and disclosure in the financial statements, including introducing five categories in the statement of profit or loss and other comprehensive income: operating, investing, financing, income taxes and discontinued operations. The standard introduces two mandatory sub-totals in the statement: 'Operating profit' and 'Profit before financing and income taxes'. There are also new disclosure requirements for 'management-defined performance measures', such as earnings before interest, taxes, depreciation and amortisation ('EBITDA') or 'adjusted profit'. The standard provides enhanced guidance on grouping of information (aggregation and disaggregation), including whether to present this information in the primary financial statements or in the notes. The Group will adopt this standard from 1 July 2027 and it is expected that there will be a significant change to the layout of the statement of profit or loss and other comprehensive income. Note 3. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Exploration and evaluation costs carried forward The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources, future technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices. In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent that it is determined in the future that this capitalised expenditure should be written off, this will increase losses and reduce net assets in the period in which this determination is made. Share-based payment transactions The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. Loans to controlled entities The directors believe that the recoupment by AusQuest Limited of the inter-company receivables from Questdor SAC is dependent on the successful development and commercial exploitation or, alternatively, the sale of the exploration assets held by the controlled entity. Employee benefits provision As discussed in note 2, the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.
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AusQuest Limited Notes to the financial statements 30 June 2026 42 Note 4. Loss for the year Consolidated 2026 2025 $ $ Loss for the year includes the following items: Exploration expenditure impaired 191,991 777,127 Share-based payments: Employee and contractors 1,079,733 362,611 Note 5. Segment information AASB 8 requires a ‘management approach’ under which segment information is presented on the same basis as that used for internal reporting purposes. Operating segments are reported in a manner that is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision-maker has been identified as the Board of Directors of AusQuest Limited. The following table presents the revenue and results information regarding the segment information provided to the Board of Directors for the year ended 30 June 2026. South Intersegment Australia America Eliminations Consolidated $ $ $ $ Consolidated - 2026 Revenue Interest received 33,278 - - 33,278 Other revenue 352,015 - - 352,015 Total revenue 385,293 - - 385,293 Expenses Depreciation (98,643) (28,081) - (126,724) Impairment of exploration expenditure (191,991) - - (191,991) Other expenses (2,515,821) (591,024) - (3,106,845) Total expenses (2,806,455) (619,105) - (3,425,560) Loss before income tax (2,421,162) (619,105) - (3,040,267) Loss after income tax (2,421,162) (619,105) - (3,040,267) Assets Current Assets 7,048,613 1,970,606 - 9,019,219 Non-Current Assets 40,375,161 19,599,904 (40,616,869) 19,358,196 Total Assets 47,423,774 21,570,510 (40,616,869) 28,377,415 Liabilities Current Liabilities 3,055,120 2,327,181 - 5,382,301 Non-Current Liabilities - 40,627,012 (40,616,869) 10,143 Total Liabilities 3,055,120 42,954,193 (40,616,869) 5,392,444
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 5. Segment information (continued) 43 South Intersegment Australia America Eliminations Consolidated $ $ $ $ Consolidated - 2025 Revenue Interest received 24,765 - - 24,765 Other revenue 469,826 - - 469,826 Total revenue 494,591 - - 494,591 Expenses Depreciation (97,465) (666) - (98,131) Impairment of exploration expenditure (767,914) (9,213) - (777,127) Other expenses (1,394,360) (334,497) - (1,728,857) Total expenses (2,259,739) (344,376) - (2,604,115) Loss before income tax (1,765,148) (344,376) - (2,109,524) Loss after income tax (1,765,148) (344,376) - (2,109,524) Assets Current Assets 7,329,150 690,663 - 8,019,813 Non-Current Assets 30,849,017 9,561,062 (30,320,101) 10,089,978 Total Assets 38,178,167 10,251,725 (30,320,101) 18,109,791 Liabilities Current Liabilities 1,587,780 463,241 - 2,051,021 Non-Current Liabilities - 30,320,101 (30,320,101) - Total Liabilities 1,587,780 30,783,342 (30,320,101) 2,051,021 Note 6. Revenue Consolidated 2026 2025 $ $ Funding from South32 Group Operations Pty Ltd recognised as income over time - Administration charges (Note 16) 352,015 469,826 Interest income 33,278 24,765 385,293 494,591
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AusQuest Limited Notes to the financial statements 30 June 2026 44 Note 7. Income tax expense Consolidated 2026 2025 $ $ Income tax expense Deferred tax expense/(income) relating to the origination and reversal of temporary differences - - Total income tax expense - - Numerical reconciliation of income tax expense and tax at the statutory rate Loss before income tax expense (3,040,267) (2,109,524) Tax at the statutory tax rate of 25% (760,067) (527,381) Effect of net expenses that are not deductible in determining taxable profit 270,233 110,979 Effect of net expenses that are not assessable in determining taxable profit (338,885) (2,821) Effect of changes in unrecognised temporary differences 345,457 55,237 Adjustment recognised in the current year in relation to the current tax of previous years 685,336 339,447 Effect of temporary differences that would be recognised directly in equity (229,934) 24,539 Difference due to tax rate difference between Peru and Australia 27,860 - Income tax expense - - The tax rate used in the above reconciliation is the corporate tax rate of 25% (2025: 25%) payable by Australian corporate entities on taxable profits under Australian tax law. Consolidated 2026 2025 $ $ Unrecognised deferred tax assets and liabilities The following deferred tax assets and (liabilities) have not been brought to account: Tax losses - revenue 9,454,104 9,696,232 Exploration and evaluation assets (5,622,941) (5,981,865) Other reserves (738,981) (968,915) Other temporary differences 55,823 57,546 3,148,455 2,802,998 The above potential tax benefit for tax losses, calculated on the expected future tax rate of 25%, has not been recognised in the statement of financial position. Management has calculated that accounting losses arose in prior periods and therefore consider a reasonable assumption to be that, following submission of the tax returns, tax losses will be available to be utilised in order to offset its assessable income. These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed. Relevance of tax consolidation to the Group The Company and its wholly-owned Australian resident entities have formed a tax consolidated group and are therefore taxed as a single entity. The head entity within the tax-consolidated group is AusQuest Limited. The members of the tax-consolidated group (incorporated in Australia) are identified at note 29.
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AusQuest Limited Notes to the financial statements 30 June 2026 45 Note 8. Cash and cash equivalents Consolidated 2026 2025 $ $ Cash at bank and on hand 6,352,237 7,203,852 6,352,237 7,203,852 Note 9. Reconciliation of loss after income tax to net cash used in operating activities Reconciliation of cash flows from operating activities with profit from ordinary activities after income tax: Consolidated 2026 2025 $ $ Loss after income tax expense for the year (3,040,267) (2,109,524) Adjustments for: Depreciation and amortisation 14,379 12,071 Depreciation and interest expense on right-of-use assets 124,243 89,470 Net loss on disposal of property, plant and equipment - 132 Share-based payments 1,079,733 362,611 Exploration and evaluation expenditure impaired 191,991 777,127 Foreign exchange differences 104,685 53,743 Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables (3,172) 16,742 Increase in prepayments (21,431) (114,404) Increase in trade and other payables 181,518 77,163 Increase in other provisions 67,964 956 Net cash used in operating activities (1,300,357) (833,913) Changes in liabilities arising from financing activities Consolidated 2026 2025 $ $ Opening balance - 89,590 Non-cash recognition of lease 252,015 - Payments of leases (120,123) (93,000) Lease interest 11,898 3,410 Forex on leases (1,869) - 141,921 -
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AusQuest Limited Notes to the financial statements 30 June 2026 46 Note 10. Trade and other receivables Consolidated 2026 2025 $ $ Trade receivables 6,697 - Input tax recoverable 1,355,532 435,694 Security deposits 50,000 50,000 Other receivables 213,709 67,957 Accrued R&D incentive 856,671 - Receivable - GST 4,676 115,867 2,487,285 669,518 Note 11. Property, plant and equipment Consolidated 2026 2025 $ $ Plant and equipment - at cost 275,789 233,592 Less: Accumulated depreciation (208,953) (199,637) 66,836 33,955 Computer equipment - at cost 107,417 82,988 Less: Accumulated depreciation (62,775) (57,601) 44,642 25,387 Office equipment - at cost 36,793 32,068 Less: Accumulated depreciation (25,016) (23,423) 11,777 8,645 Low value pool - at cost 10,012 10,012 Less: Accumulated depreciation (8,309) (8,274) 1,703 1,738 124,958 69,725 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated Total $ Balance at 1 July 2024 50,094 Additions 32,896 Exchange differences (1,062) Write off of assets (132) Depreciation expense (12,071) Balance at 30 June 2025 69,725 Additions 74,005 Exchange differences (4,393) Depreciation expense (14,379) Balance at 30 June 2026 124,958
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AusQuest Limited Notes to the financial statements 30 June 2026 47 Note 12. Right-of-use assets and lease liabilities Consolidated 2026 2025 $ $ (a) Amounts recognised in the statement of financial position Right-of-use asset Right-of-use asset recognised as at 1 July - 86,061 Add: Rights-of-use asset recognised during the year 252,015 - Less: Depreciation (112,345) (86,061) Add: Foreign exchange movements (1,870) - Balance at end of year 137,800 - Lease liabilities Lease liability recognised as at 1 July - 89,590 Add: Lease liability recognised during the year 252,015 - Add: Interest 11,898 3,410 Less: Payment (120,123) (93,000) Add: Foreign exchange movements (1,869) - Balance at end of year 141,921 - Current 131,778 - Non-Current 10,143 - 141,921 - (b) Amounts recognised in the consolidated statement of profit or loss Depreciation of right-of-use asset 112,345 86,061 Interest expense on lease liabilities 11,898 3,410 124,243 89,471 (c) Leasing activities The Group currently holds the following leases: ● AusQuest Limited - Office lease commencing 1 July 2025 for a 24 month period expiring on 30 June 2027 ● Questdor Sac - Office lease commencing on 1 November 2025 for a 24 month period expiring on 30 October 2027 The lease is recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is amortised over the shorter of the asset’s useful life and the lease term on a straight-line basis. Initial measurement Assets and liabilities from a lease are initially measured on a present value basis. The lease liability includes the present value of the fixed payments and variable lease payments that depend on an index, initially measured using the index as at the commencement date (reconciled and adjusted for actual index each year). The lease payments are discounted using the Company’s incremental borrowing rate of 8.27% (Australian lease) and 4.07% (Peruvian lease). The right-of-use asset is measured at cost comprising of the initial measurement of the lease liability.
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AusQuest Limited Notes to the financial statements 30 June 2026 48 Note 13. Exploration and evaluation expenditure Consolidated 2026 2025 $ $ Exploration and evaluation expenditure 19,095,438 10,020,253 Reconciliation Balance at beginning of year 10,020,253 6,441,283 Capitalised during the year 13,527,567 7,940,434 Impaired during the year (i) (191,991) (777,127) Grant of farm-in interests in previously capitalised projects (ii) (2,513,097) (3,089,952) Other government grants and funding (iii) (856,671) (670,259) Exchange movements (890,623) 175,874 Balance at end of year 19,095,438 10,020,253 The recoupment of costs carried forward in relation to areas in the exploration and evaluation phases is dependent on the successful development and commercial exploration or sale of the respective areas. Consolidated 2026 2025 $ $ (i) Significant impairments to the following projects occurred during the period South West Peru - 9,213 Other Australian Projects 191,991 767,914 Total Impairment 191,991 777,127 The Group has impaired expenditure for those projects and tenements where they have decided not to renew the relevant lease. For the period to 30 June 2026 the Group has impaired $191,991 (Year ended 30 June 2025: $777,127) of previously capitalised expenditure incurred on those projects and tenements. The impairment has been recognised in the statement of profit or loss and other comprehensive income. (ii) Grant of farm-in and joint venture interests in previously capitalised projects For the year ended 30 June 2026, the Company received $4,378,884 (30 June 2025: $4,411,366) in funding. An amount of $2,513,097 ( 30 June 2025: $3,089,952) has been allocated against capitalised exploration and evaluation expenditures at reporting date during the reporting period (note 16). (iii) Other government grants and funding For the financial year ended 30 June 2025, the Company disclosed the research and development tax incentive refund received as an income tax benefit ($498,868). As the refund is directly related to exploration and evaluation expenditures incurred by the Company, the refund is disclosed as an offset against capitalised exploration and evaluation expenditures. Note 14. Trade and other payables Consolidated 2026 2025 $ $ Trade payables 2,964,233 1,393,407 Employee liabilities 99,132 65,258 3,063,365 1,458,665
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AusQuest Limited Notes to the financial statements 30 June 2026 49 Note 15. Provisions Consolidated 2026 2025 $ $ Annual leave 107,617 71,128 Long service leave 135,958 91,417 243,575 162,545 Note 16. Unexpended funding Consolidated 2026 2025 $ $ Unexpended funding 1,943,583 429,811 Consolidated 2026 2025 $ $ Reconciliation Balance at beginning of year 429,811 (421,777) Funding from strategic alliance and joint venture partner 4,378,884 4,411,366 Less: Amount spent on exploration and evaluation projects (2,513,097) (3,089,952) Less: Amount spent on administration (352,015) (469,826) Balance at end of year 1,943,583 429,811 Note 17. Financial instruments Financial risk management objectives The Company has exposure to the following risks from its use of financial instruments: ● Foreign currency risk ● Liquidity risk ● Interest rate risk ● Capital management This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are included throughout this note and the financial report. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. Market risk Foreign currency risk The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 17. Financial instruments (continued) 50 Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. Assets Liabilities 2026 2025 2026 2025 $ $ $ $ Consolidated US Dollar 3,055,031 1,618,112 2,337,324 122,084 Foreign currency sensitivity analysis The sensitivity analyses of the Group’s exposure to foreign currency risk at the reporting date has been determined based on a change of 10% in the value of the Australian dollar against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. At reporting date, if the Australian dollar was 10% stronger and all other variables were constant, the Group’s net gain after tax would have increased by $71,771 (2025: net gain increase of $115,487) with a corresponding increase in equity. Where the Australian dollar weakened, there would be an equal and opposite impact on the loss after tax and equity. Price risk The Group is not exposed to any significant price risk. Interest rate risk The Group is exposed to interest rate risk as it places funds at both fixed and floating interest rates. The Group manages this risk by maintaining an appropriate mix between fixed and floating rated products, which also facilitate access to money. Although some of the Group’s assets are subject to interest rate risk, it is not dependent on this income. Interest income is only incidental to the Group’s operations and operating cash flows. The Group is not exposed to interest rate risk associated with borrowed funds. Foreign currency sensitivity analysis The sensitivity analyses of the Group’s exposure to interest rate risk at the reporting date has been determined based on a change of 50 basis points in interest rates. At reporting date, if interest rates had increased 50 basis points higher and all other variables were constant, the Group’s net gain after tax would have increase by $30,726 (2025: $35,759) with a corresponding increase in equity. Where interest rates decreased, there would be an equal and opposite impact on the loss after tax and equity. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. Liquidity risk Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation Liquidity risk management is the responsibility of the Board of Directors, who have built an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 17. Financial instruments (continued) 51 The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities, identifying when further capital raising initiatives are required. The following tables detail the Group’s remaining contractual maturity for its non-derivative financial assets and liabilities and have been prepared on the following basis: Rate Less than 1 month 1-3 months 3 months to 1 year 1-5 years 5+ years Total % $ $ $ $ $ $ Consolidated 2026 Financial assets Non-interest bearing - 243,995 - 1,543,578 - - 1,787,573 Variable interest rate 0.05% 6,145,278 - - - - 6,145,278 Fixed interest rate 0.10% - - 50,000 - - 50,000 6,389,273 - 1,593,578 - - 7,982,851 Financial liabilities Non-interest bearing - 3,549,261 971,792 485,896 - - 5,006,949 Fixed interest rate - 10,363 20,923 100,492 10,143 - 141,921 3,559,624 992,715 586,388 10,143 - 5,148,870 Rate Less than 1 month 1-3 months 3 months to 1 year 1-5 years 5+ years Total % $ $ $ $ $ $ Consolidated 2025 Financial assets Non-interest bearing - 189,076 - 482,398 - - 671,474 Variable interest rate 0.05% 7,151,896 - - - - 7,151,896 Fixed interest rate 0.10% - - 50,000 - - 50,000 7,340,972 - 532,398 - - 7,873,370 Financial liabilities Non-interest bearing - 1,815,222 89,662 - - - 1,904,884 1,815,222 89,662 - - - 1,904,884 Fair value of financial assets and liabilities The carrying amount of financial assets and financial liabilities recorded in the financial statements represents their respective net fair values, determined in accordance with the accounting policies disclosed in Note 2. The directors consider that the carrying amount of financial assets and other financial liabilities recorded in the financial statements approximate their net fair values. Capital management The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The capital structure of the Group consists of debt and equity, comprising issued capital and reserves, net of accumulated losses. The Group’s policy is to use capital market issues to meet the funding requirements of the Group. There were no changes in the Group’s approach to capital management during the year. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
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AusQuest Limited Notes to the financial statements 30 June 2026 52 Note 18. Issued capital Consolidated 2026 2026 2025 2025 Shares $ Shares $ Ordinary shares - fully paid 1,641,703,992 81,228,395 1,391,853,542 72,109,482 Movements in ordinary share capital Shares No. $ Balance at 1 July 2024 825,149,223 62,308,182 Issue of shares (Employee) 2,000,000 24,000 Issue of shares (Rights Offer) 228,785,477 1,816,213 Issue of shares (Shortfall Offer) 75,000,000 600,000 Issue of shares (Placement) 203,945,936 7,342,054 Issue of shares (Exercise of options) 56,972,906 683,675 Capital raising costs - (664,642) Balance at 30 June 2025 1,391,853,542 72,109,482 Shares No. $ Balance at 1 July 2025 1,391,853,542 72,109,482 Issue of shares (Performance Rights Converted) (i) 14,000,000 - Issue of shares (Placement) (ii) 212,765,958 10,000,000 Issue of shares (Exercise of options) (iii) 19,784,492 237,414 Issue of shares (Exercise of options) (iv) - 6,000 Issue of shares (Exercise of options) (v) 3,300,000 99,000 Transfer from share-based payment reserve (vi) - 254,692 Capital raising costs - (1,478,193) Balance at 30 June 2026 1,641,703,992 81,228,395 (i) On 31 October 2025, 14,000,000 shares wereissued following conversion of Performance Rights where relevant vesting conditions were met. (ii) During the period, the Company completed a Placement to raise a total of $10m before costs through the issue of shares at $0.047 per share. On 5 December 2025 189,787,234 shares were issued. The balance of $1,080,000 (for an additional 22,978,723 shares) w ere issued on 12 February 2026 shareholder approval for certain Directors to participate in the Placement. (iii) During the period, the Company issued 19,784,492 shares, following the exercise of options. These options had an expiry date of 30 November 2027 and was exercised at $0.012 each. (iv) During the period, the Company received $6,000 for the exercise of 500,000 options. These options had an expiry date of 30 November 2027 and was exercised at $0.012 each. The shares were issued post reporting date. (v) During the period, the Company issued 3,300,000 shares, following the exercise of options. These options had an expiry date of 30 November 2027 and was exercised at $0.03 each. (vi) Represents the transfer of share- based payment expense to issued capital on the conversion of options and performance rights.
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AusQuest Limited Notes to the financial statements 30 June 2026 53 Note 19. Reserves Consolidated 2026 2025 $ $ Foreign currency reserve 2,955,925 3,875,761 Share-based payments reserve 2,525,762 770,371 5,481,687 4,646,132 Movements in reserves during these periods are disclosed in the consolidated statement of changes in equity. Foreign currency reserve The reserve is used to recognise exchange differences arising from translation of the financial statements of foreign operations to Australian dollars and foreign currency gains and losses on net investments in foreign operations. Share-based payments reserve The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration, and other parties as part of their compensation for services. Note 20. Share Options & Performance Rights Movement in options over ordinary shares on issue: Balance at 1 July 2024 78,000,000 Granted during the year 171,892,719 Expired during the year (39,000,000) Exercised during the year (56,972,906) Balance at 30 June 2025 153,919,813 Granted during the year 20,000,000 Exercised during the year (23,084,492) Balance at 30 June 2026 150,835,321 (a) Listed Options At the date of this report the Company had no listed options. (b) Unlisted Options At the date of this report the Company had the following unlisted options Consolidated 2026 2025 AQDAE: Options Expiring 30-Nov-2026 exercisable $0.03 (i) 35,700,000 39,000,000 AQDAM: Options Expiring 11-Nov-2027 exercisable $0.012 (ii) 95,135,321 114,919,813 AQDAH: Options Expiring 06-Feb-2029 exercisable $0.0705 (iii) 20,000,000 - (i) During the year the Company issued 3,300,000 shares, following of the exercise of listed options. These options had an expiry date of 30 November 2026 and were exercisable at $0.03. (ii) During the year the Company issued 19,784,492 shares, following of the exercise of listed options. These options had an expiry date of 30 November 2027 and were exercisable at $0.012. (iii) Following approval by shareholders at the meeting held 4 February 2026, the Company issued 20,000,000 unlisted options to Euroz Hartleys Limited (and/or its nominee(s)) each exercisable at $0.0705 with an expiry date of 6 February 2026. Share options issued by the Company carry no rights to dividends and no voting rights.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 20. Share Options & Performance Rights (continued) 54 (c) Performance Rights Movement in performance rights over ordinary shares on issue: Balance at 1 July 2024 - Granted during the year 94,500,000 Balance at 30 June 2025 94,500,000 Converted during the year (14,000,000) Lapsed during the year (3,000,000) Balance at 30 June 2026 77,500,000 As at the date of this report the Company had the following performance rights: Consolidated 2026 2025 AQDAF: Performance Rights expiring 31-Dec-2025 exercisable at $0.00 (i) - 17,000,000 AQDAN: Performance Rights expiring 30-Nov-27 exercisable at $0.01 43,500,000 43,500,000 AQDAG: Performance Rights expiring 03-Jun-29 exercisable at $0.01 34,000,000 34,000,000 (i) During the year the Company issued 14,000,000 shares, following the vesting and exercise of Tranche 1 and 2 performance rights. These rights had an expiry date of 31 December 2025 and were exercisable at $0.01. Tranche 3, 3,000,000 lapsed due to vesting conditions not being met. Note 21. Share-based payments Employee share options The Company has an ownership-based compensation arrangement for consultants and employees of the Company. Each option issued under the arrangement converts into one ordinary share of AusQuest Limited on exercise. No amounts are paid or payable by the recipient on receipt of the option. Options neither carry rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. The number of options granted is at the sole discretion of the directors. Incentive options and performance rights issued to directors (executive and non-executive) are subject to approval by shareholders and attach vesting conditions as appropriate. Share based payment arrangements in existence during year The following share-based payment arrangements were in existence during the current and comparative reporting years: Series Number Grant Date Expiry Date Expiry Price Fair Value at Grant Date $ $ AQDAE 20,000,000 (i) 21/11/2023 30/11/2026 0.030 0.008 AQDAE 19,000,000 (ii) 01/10/2024 30/11/2026 0.030 0.007 AQDAM 20,000,000 (iii) 01/10/2024 11/11/2027 0.012 0.007 AQDAM 15,000,000 (iv) 01/10/2024 11/11/2027 0.012 0.007 AQDAF 17,000,000 (v) 01/01/2025 31/12/2025 - 0.008/0.0042 AQDAN 43,500,000 (vi) 28/03/2025 30/11/2027 0.010 0.0412/0.0392 AQDAG 34,000,000 (vii) 03/06/2025 03/06/2029 0.010 0.0403/0.0386/0.03620 AQDAH 20,000,000 (viii) 01/12/2025 06/02/2029 0.070 0.04260
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 21. Share-based payments (continued) 55 (i) Following shareholder approval at the Annual General Meeting held on 21 November 2023, 20,000,000 unlisted options was issued to the directors. These options have an exercise price of 3 cents each and expire on 30 November 2026. (ii) On 25 January 2024, the Company issued 19,000,000 unlisted options to employees and contractors under the Company’s Long Term Incentive Scheme (“LTIS”). The options hold no voting rights and are not transferable. (iii) Following an Entitlement and Shortfall Offer, the Company issued 20,000,000 options to the Broker following shareholder approval at the Annual General Meeting held on 13 November 2024. These options have an exercise price of 1.2 cents each and expire on 11 November 2027 and were exercised during the year. (iv) As part of the Entitlement and Shortfall Offer, the Company has also agreed that, subject to the exercise and conversion of all 20,000,000 Broker Options, to issue an additional 15,000,000 unlisted options to the Broker, each exercisable at $0.016 and with an expiry date of 11 November 2027, at a subscription price of $0.00001 per option (subject to any necessary shareholder approvals and other Listing Rules or regulatory requirements). These options vested during the year and a share based payment expense recognised. The Company issued these options post reporting date. (v) On 21 January 2025, the Company issued 17,000,000 Performance Rights (PRs) under its Equity Incentive Plan, with each PR converting into one ordinary share in the Company subject to the vesting conditions. On 31 October 2025, following vesting conditions KPI1 and KPI2 being met 14,000,000 shares were issued on conversion. On 31 December 2025 the balance of 3,000,000 rights lapsed unexercised due to meeting vesting conditions (KPI 3) not being met. (vi) On 28 March 2025, the Company issued 43,500,000 Performance Rights (PRs) under its Equity Incentive Plan, with each PR converting into one ordinary share in the Company subject to meeting relevant vesting conditions, being: - Tranche A - Upon achieving a 20-day volume weighted average market price (VWAP) of $0.10 or greater - Tranche B - Upon achieving a 20-day volume weighted average market price (VWAP) of $0.12 or greater (vii) Following shareholder approval at the General Meeting held on 8 May 2025, 34,000,000 performance rights were issued to the Company's directors, with each PR converting into one ordinary share in the Company subject to meeting the following vesting conditions: - Tranche A - Upon achieving a 20-day volume weighted average market price (VWAP) of $0.10 or greater - Tranche B - Upon achieving a 20-day volume weighted average market price (VWAP) of $0.12 or greater - Tranche C - Upon achieving a 20-day volume weighted average market price (VWAP) of $0.15 or greater (viii) The Company issued 20,000,000 options to the Broker following the successful capital raising and shareholder approval at the Annual General Meeting held on 6 February 2025. These options have an exercise price of 7.05 cents each and expire on 6 February 2029. The fair value of all the options/performance rights issued is determined using a Hoadley Option pricing model and/or the Parisian Barrier1 model that takes into account the exercise price, the term of the option/performance right, the impact of dilution, the share price at valuation date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option/performance right. Where the performance rights have a vesting period the expense is recognised over that period.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 21. Share-based payments (continued) 56 Option / Performance Right (PR) Number Granted Grant Date Expiry Date Share Price at Grant Date Exercise Price Expecte d Volatility Risk- Free Interest Date Fair Value at Grant Date $ % % $ Director Options 20,000,000 21/11/2023 30/11/2026 0.012 0.030 146% 4.09% 0.008 Employee/ Contractor Options 19,000,000 15/01/2024 30/11/2026 0.011 0.030 145% 3.80% 0.007 Broker Options Tranche 1 20,000,000 01/10/2024 11/11/2027 0.011 0.012 96% 3.49% 0.007 Broker Options Tranche 2 15,000,000 01/10/2024 11/11/2027 0.011 0.012 96% 3.49% 0.006 Contractor PR Tranche 1 10,000,000 01/01/2025 31/12/2025 0.008 - 109% 4.19% 0.008 Contractor PR Tranche 2 4,000,000 01/01/2025 31/12/2025 0.008 - 109% 4.19% 0.004 Contractor PR Tranche 3 3,000,000 01/01/2025 31/12/2025 0.008 - 109% 4.19% 0.008 Employee/ Contractor Options Tranche 1 17,500,000 28/03/2025 30/11/2027 0.054 0.010 100% 3.68% 0.041 Employee/ Contractor Options Tranche 2 26,000,000 28/03/2025 30/11/2027 0.054 0.010 100% 3.68% 0.039 Director PR Tranche 1 8,000,000 08/05/2025 03/06/2029 0.052 0.010 99% 3.30% 0.040 Director PR Tranche 2 11,000,000 08/05/2025 03/06/2029 0.052 0.010 99% 3.30% 0.039 Director PR Tranche 3 15,000,000 08/05/2025 03/06/2026 0.052 0.010 99% 3.30% 0.036 Broker Options 20,000,000 01/12/2025 06/02/2029 0.060 0.070 120% 3.84% 0.043 The expense recognised in the statement of profit or loss and other comprehensive income in relation to share-based payments granted during the period is $1,079,733 (2025: $362,611). During the year 10,000,000 share based payments options were exercised at an exercise price of $0.012, expiring on 11 November 2027 (30 June 2025: 10,000,000). During the year 3,300,000 share based payments options were exercised at an exercise price of $0.03, expiring on 30 November 2026 (30 June 2025: None). During the year 14,000,000 share based payments performance rights were converted for nil consideration, expiring on 31 December 2025 (30 June 2025: None).
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 21. Share-based payments (continued) 57 The following table shows a reconciliation of the outstanding share options granted as share-based payments at the beginning and end of the financial year: Number of options Weighted average exercise price Number of options Weighted average exercise price 2026 2026 2025 2025 Outstanding at the beginning of the financial year 59,000,000 $0.02 78,000,000 $0.05 Granted 20,000,000 $0.07 20,000,000 $0.01 Exercised (23,300,000) $0.01 - $0.00 Expired/Lapsed - $0.00 (39,000,000) ($0.03) Outstanding at the end of the financial year 55,700,000 $0.04 59,000,000 $0.02 Exercisable at the end of the financial year 55,700,000 $0.04 59,000,000 $0.02 Weighted average remaining life (years) - 1.21 - 1.74 Number of Performance Rights Weighted average exercise price Number of Performance Rights Weighted average exercise price 2026 2026 2025 2025 Outstanding at the beginning of the financial year 94,500,000 $0.01 - $0.00 Granted - $0.00 94,500,000 $0.01 Exercised (14,000,000) $0.00 - $0.00 Expired/Lapsed (3,000,000) $0.00 - $0.00 - $0.00 - $0.00 Outstanding at the end of the year 77,500,000 $0.00 94,500,000 $0.01 Exercisable at end of the financial year - $0.00 14,000,000 $0.00 Weighted average remaining life (years) - 2.08 - 2.59 Note 22. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. Note 23. Earnings/(loss) per share Consolidated 2026 2025 $ $ Loss after income tax attributable to the owners of AusQuest Limited (3,040,267) (2,109,524)
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 23. Earnings/(loss) per share (continued) 58 Number Number Weighted average number of ordinary shares used in calculating basic earnings/(loss) per share 1,519,381,657 1,088,981,101 Adjustments for calculation of diluted earnings per share: Options over ordinary shares - 16,047,334 Weighted average number of ordinary shares used in calculating diluted earnings per share 1,519,381,657 1,105,028,435 Cents Cents Basic loss per share (0.20) (0.19) Diluted loss per share (0.20) (0.19) Note 24. Key management personnel disclosures Details of key management personnel compensation are disclosed in the Remuneration Report which forms part of the Directors’ Report and has been audited. The aggregate compensation of the key management personnel is summarised below: Consolidated 2026 2025 $ $ Short-term employee benefits 318,929 248,000 Post-employment benefits 31,071 23,000 Share-based payments 429,607 62,382 779,607 333,382 Note 25. Related party transactions Parent entity AusQuest Limited is the parent entity. Subsidiaries Interests in subsidiaries are set out in note 29. Key management personnel Disclosures relating to key management personnel are set out in note 24 and the remuneration report included in the directors' report. Transactions with related parties There were no transactions with related parties during the current and previous financial year. Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date. Loans to/from related parties There were no loans to or from related parties at the current and previous reporting date. Note 26. Contingent liabilities Contingent Shares At reporting date the Company had contingent shares issues to an employee of up to 2,000,000 (2025: 2,000,000) fully paid ordinary shares. The issue of these shares is dependent on certain milestones being reached.
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AusQuest Limited Notes to the financial statements 30 June 2026 59 Note 27. Commitments Consolidated 2026 2025 $ $ Capital commitments Committed at the reporting date but not recognised as liabilities, payable: Exploration and evaluation 15,526,211 14,229,279 Within one year 3,313,278 2,426,140 One to five years 9,381,780 9,416,911 More than five years 2,831,153 2,386,228 15,526,211 14,229,279 The Company has the ability to relinquish tenements if required or deemed appropriate which will reduce further minimum spending commitments. Note 28. Parent entity information Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income Parent 2026 2025 $ $ Loss after income tax (3,960,104) (2,011,269) Total comprehensive loss (3,960,104) (2,011,269) Statement of financial position Parent 2026 2025 $ $ Total current assets 7,048,613 7,329,150 Total assets 26,040,090 17,646,550 Total current liabilities 3,055,120 1,587,780 Total liabilities 3,055,120 1,587,780 Equity Issued capital 81,228,395 72,109,482 Share-based payments reserve 2,525,762 770,371 Accumulated losses (60,769,187) (56,821,083) Total equity 22,984,970 16,058,770 Guarantees entered into by the parent entity in relation to the debts of its subsidiaries The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2026 and 30 June 2025. Contingent liabilities The parent entity had no contingent liabilities as at 30 June 2026 and 30 June 2025.
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AusQuest Limited Notes to the financial statements 30 June 2026 Note 28. Parent entity information (continued) 60 Included in non-current assets are investments and loans to subsidiaries of $28,139,279 (2025: $19,381,450), the recoverability of which is dependent on the successful exploration of the subsidiaries exploration assets Capital commitments - Property, plant and equipment The parent entity had no capital commitments for property, plant and equipment as at 30 June 2026 and 30 June 2025. Note 29. Interests in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in accordance with the accounting policy described in note 2: Name Principal place of Business / Country of Incorporation Ownership Interest Ownership Interest 2026 2025 % % Parent Entity AusQuest Limited Australia - - Controlled Entities Directly held by AusQuest Limited Fortescue Resources Pty Ltd Australia 100% 100% Questdor SAC Peru 100% 100% AusQuest Limited is the head entity within the tax consolidated group. All the Australian-incorporated companies are members of the tax consolidated group. Note 30. Events after the reporting period Subsequent to reporting date, a total of 1,000,000 unlisted options with an exercise price of $0.012 and an expiry date of 11 November 2027 have been converted into fully paid ordinary shares. On 2 July 2026, 15,000,000 unlisted Broker options were issued with an exercise price of $0.016 and an expiry date of 11 November 2027. No other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
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AusQuest Limited Consolidated entity disclosure statement As at 30 June 2026 61 Entity Name Entity Type % of Share Capital Country of Incorporation Australian or Foreign Resident Tax Residency AusQuest Limited Body Corporate - Australian Australian Australian Fortescue Resources Pty Ltd Body Corporate 100.00% Australian Australian Australian Questdor SAC Body Corporate 100.00% Peru Foreign Australian & Peru Basis of Preparation This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act 2001 and includes information for each entity that was part of the consolidated entity as at the end of the financial year in accordance with AASB 10 Consolidated Financial Statements. Determination Section 295 (3A) of the Corporation Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997. The determination of tax residency involves judgement as there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the Group has applied the following interpretations: Australian tax residency The Group has applied current legislation and judicial precedent, including having regard to the Tax Commissioner's public guidance in Tax Ruling TR 2018/5. Foreign tax residency here necessary, the Group has used independent tax advisers in foreign jurisdictions to assist in determining tax residency and ensure compliance with applicable foreign tax legislation. Partnerships and Trusts Australian tax law does not contain specific residency tests for partnerships and trusts. Generally, these entities are taxed on a flow-through basis, so there is no need for a general residence test. Some provisions treat trusts as residents for certain purposes, but this does not mean the trust itself is an entity that is subject to tax.
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AusQuest Limited Additional Securities Exchange Information 30 June 2026 62 Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is as follows. This information is current as at 8 September 2026. 1. Registered office and principal administrative office The address of the registered office in Australia is C/- Horizon Nexus Partners, Level 4, 88 William Street, Perth, WA, 6000. Telephone + 61 8 9463 2463 The principal administrative office is 8 Kearns Crescent, Ardross, WA, 6153. Telephone + 61 8 9364 3866 2. Register of securities are held at the following address: Automic Pty Ltd Level 5, 126 Phillip Street Sydney NSW 2000 Investor Services: 1300 288 664 General Enquiries: +61 2 9698 5414 3. Restricted securities There are no other restricted securities or securities under voluntary escrow at the date of this report. 4. On-market buy back At the date of this report, the Company is not involved in an on-market buy back. 5. Shareholdings (a) Distribution of shareholders Category (size of holding) Ordinary shares Number of holders % of Issued Share Capital 1 – 1,000 31,169 242 0.00% 1,001 – 5,000 499,944 171 0.03% 5,001 – 10,000 1,887,132 227 0.11% 10,001 – 100,000 52,120,753 1,179 3.17% 100,001 and over 1,587,664,994 929 96.68% 1,642,203,992 2,748 100.00% (b) Less than marketable parcels of shares The number of holders holding less than marketable parcels is 652 given a share value of 0.047 cents per share, which amounts to a total of 2,534,559 shares. (c) Voting rights The voting rights attached to each class of equity security are as follows: Ordinary shares Each ordinary share is entitled to one vote, and each member present at a meeting or by proxy has one vote based on a conducted poll. Options Options over ordinary shares do not carry voting rights. Performance Rights Performance Rights do not carry voting rights.
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AusQuest Limited Additional Securities Exchange Information 30 June 2026 63 5. Shareholdings (continued) (d) 20 Largest shareholders – ordinary shares Name Number of Ordinary Fully Paid Shares Held % Held of Issued Ordinary Capital 1 CHRYSALIS INVESTMENTS PTY LTD 289,724,456 17.64% 2 ITA VERO PTY LTD 75,376,313 4.59% 3 PRE-EMPTIVE TRADING PTY LTD 58,000,000 3.53% 4 CITICORP NOMINEES PTY LIMITED 45,018,231 2.74% 5 JOHN JEREMIE WHITE 39,984,894 2.43% 6 BNP PARIBAS NOMINEES PTY LTD 39,802,923 2.42% 7 OTS SUPER PTY LTD 30,977,123 1.89% 8 MR MICHAEL SHERINGTON & MISS KATRINA WEIER 28,083,516 1.71% 9 INTAGLIO / SARELDA PTY LTD 27,881,914 1.70% 10 ASUPER PTY LTD 26,988,889 1.64% 11 MRS VANI SHANKAR RUTTALA 22,535,000 1.37% 12 JOW INVESTMENTS PTY LTD 22,000,000 1.34% 13 MR DAVID BRIAN CLARKE 21,050,000 1.28% 14 INVIA CUSTODIAN PTY LIMITED <ABEX LTD-SPEC PORTFOLIO A/C> 20,145,836 1.23% 15 MR NEIL MORRISON & MRS LYNETTE MORRISON 18,110,000 1.10% 16 MR JAMES THORNETT & MRS SUSAN THORNETT 18,102,327 1.10% 17 DR THOMAS WHITING 15,000,000 0.91% 18 MR PETER ALARIC HAYES 14,243,463 0.87% 19 BERENES NOMINEES PTY LTD 14,000,000 0.85% 20 JAYLEAF HOLDINGS PTY LTD 13,000,000 0.79% 20 BACK PADDOCK MANAGEMENT PTY LTD <LITTLE WHELAN FAMILY A/C> 13,000,000 0.79% Total 853,024,885 51.92% (e) Substantial holders of fully paid ordinary shares Substantial shareholders listed in the Company’s holding register as at 8 September 2026: Name Number of fully paid ordinary shares held % Held of Issued Ordinary Capital 1 Chrysalis Investments Pty Ltd (a company associated with Mr Christopher Ellis) 289,724,456 17.64% 289,724,456 17.64% 6. Company secretary The name of the Company secretary is Henko Vos. 7. Securities exchange listing Quotation has been granted for all the ordinary shares of the Company on the Australian Securities Exchange (‘AQD’).
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AusQuest Limited Additional Securities Exchange Information 30 June 2026 64 8. Unquoted securities Unlisted Securities Terms Number Number of holders 1 Unlisted options exercisable at 3 cents each on or before 30 November 2026 35,700,000 9 2 Unlisted options exercisable at 1.2 cents each on or before 11 November 2027 94,635,321 188 3 Unlisted options exercisable at 7.05 cents each on or before 6 February 2029 20,000,000 1 4 Unlisted options exercisable at 1.6 cents each on or before 11 November 2027 15,000,000 1 5 Performance Rights expiring 30 November 2027 43,500,000 9 6 Performance Rights expiring 3 June 2029 34,000,000 2 242,835,321 210 9. Unquoted equity security holdings greater than 20% At 8 September 2026, the following held unquoted equity securities greater than 20%: 1. Unlisted options exercisable at 3 cents each on or before 30 November 2026: OTS Super Pty Ltd <The Drew Family Super A/C> - 10,000,000 (28.01%) 2. Unlisted options exercisable at 1.2 cents each on or before 11 November 2027: Chrysalis Investments Pty Ltd – 29,431,704 (31.10%) ITA Vero Pty Ltd – 20,012,500 (21.15%) 3. Unlisted options exercisable at 7.05 cents each on or before 6 February 2029 Zenix Nominees Pty Ltd – 20,000,000 (100%) 4. Unlisted options exercisable at 1.6 cents each on or before 11 November 2027 Zenix Nominees Pty Ltd – 15,000,000 (100%) 5. Performance Rights expiring 30 November 2027 Mr Michael Sherington & Miss Katrina Weier – 10,000,000 (22.99%) 6. Performance Rights expiring 3 June 2029 Mr Graeme Drew – 22,000,000 (64.71%) Mr Greg Hancock – 12,000,000 (35.29%)
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AusQuest Limited Tenements 30 June 2026 65 Project Tenements as at 14 September 2026 Tenement Location Lease Status Registered Holder Interest Held Australia E69/3558 WA, Balladonia Granted AusQuest Ltd. 100% E69/3559 WA, Balladonia Granted AusQuest Ltd. 100% E69/3671 WA, Balladonia Granted AusQuest Ltd. 100% E69/3672 WA, Balladonia Application AusQuest Ltd. 100% E69/3825 WA, Balladonia Granted AusQuest Ltd. 100% E69/3932 WA, Balladonia Granted AusQuest Ltd. 100% E69/4192 WA, Balladonia Application AusQuest Ltd. 100% E69/2462 WA, Balladonia Application AusQuest Ltd. 100% E69/2486 WA, Balladonia Granted AusQuest Ltd. 100% E69/4276 WA, Balladonia Application AusQuest Ltd. 100% E69/4397 WA, Jubilee Lake Application AusQuest Ltd. 100% E70/5383 WA, Morrisey Well Granted AusQuest Ltd. 100% E09/2397 WA, Morrisey Well Granted AusQuest Ltd. 100% E59/2526 WA, Morrisey Well Granted AusQuest Ltd. 100% E70/6687 WA, Morrisey Well Application AusQuest Ltd. 100% E09/3071 WA, Morrisey Well Application AusQuest Ltd. 100% E69/3896 WA, Mount Davis Granted AusQuest Ltd. 100% E69/4282 WA, Mount Davis Granted AusQuest Ltd. 100% E69/4372 WA, Mount Davis Granted AusQuest Ltd. 100% EPM 26681 QLD, Hamilton Granted AusQuest Ltd. 100% EPM 26682 QLD, Hamilton Granted AusQuest Ltd. 100% EL 6798 SA, Coober Pedy Granted AusQuest Ltd. 100% Peru Cangallo 1 Arequipa Granted Questdor SAC 100% Cangallo 2 Arequipa Granted Questdor SAC 100% Cangallo 3 Arequipa Granted Questdor SAC 100% Cangallo 4 Arequipa Granted Questdor SAC 100% Cangallo 5 Arequipa Granted Questdor SAC 100% Cangallo 6 Arequipa Granted Questdor SAC 100% Cangallo 7 Arequipa Granted Questdor SAC 100% Cangallo 7 A Arequipa Granted Questdor SAC 100% Cangallo 9 Arequipa Granted Questdor SAC 100% Cangallo 10 Arequipa Granted Questdor SAC 100% Cangallo 14 Arequipa Granted Questdor SAC 100% Cangallo 15 Arequipa Granted Questdor SAC 100% Cangallo 16 Arequipa Granted Questdor SAC 100% Cangallo 17 Arequipa Granted Questdor SAC 100% Cangallo 18 Arequipa Application Questdor SAC 100% Cangallo 20 Arequipa Application Questdor SAC 100% Cangallo 21 Arequipa Application Questdor SAC 100% Cangallo 22 Arequipa Application Questdor SAC 100% Cangallo 23 Arequipa Application Questdor SAC 100% Cangallo 24 Arequipa Application Questdor SAC 100% Cangallo 25 Arequipa Application Questdor SAC 100%
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AusQuest Limited Additional Securities Exchange Information 30 June 2026 66 Tenement Location Lease Status Registered Holder Interest Held Peru Cont. Cerro De Fierro B Arequipa Granted Questdor SAC 100% Cerro De Fierro C Arequipa Granted Questdor SAC 100% Cerro De Fierro E Arequipa Granted Questdor SAC 100% Cerro De Fierro F Arequipa Granted Questdor SAC 100% Cerro De Fierro G Arequipa Granted Questdor SAC 100% Cerro De Fierro H Arequipa Granted Questdor SAC 100% Cerro De Fierro I Arequipa Granted Questdor SAC 100% Cerro De Fierro J Arequipa Granted Questdor SAC 100% Cerro De Fierro L Arequipa Granted Questdor SAC 100% Cerro De Fierro N Arequipa Granted Questdor SAC 100% Cerro De Fierro O Arequipa Granted Questdor SAC 100% Cerro De Fierro P Arequipa Granted Questdor SAC 100% Cerro De Fierro Q Arequipa Granted Questdor SAC 100% Cerro De Fierro S Arequipa Application Questdor SAC 100% Cerro De Fierro T Arequipa Application Questdor SAC 100% Cerro De Fierro U Arequipa Application Questdor SAC 100% Cerro De Fierro V Arequipa Application Questdor SAC 100% Cerro De Fierro W Arequipa Application Questdor SAC 100% Cerro De Fierro X Arequipa Application Questdor SAC 100% Cerro De Fierro Y Arequipa Application Questdor SAC 100% Chololo 1 Moquegua Granted Questdor SAC 100% Chololo 2 Moquegua Granted Questdor SAC 100% El Sello 04 Arequipa Granted Questdor SAC 100% Parcoy 01 Arequipa Granted Questdor SAC 100% Parcoy 02 Arequipa Granted Questdor SAC 100% Parcoy 03 Arequipa Granted Questdor SAC 100% Parcoy 04 Arequipa Granted Questdor SAC 100% Parcoy 13 Arequipa Granted Questdor SAC 100% Playa Kali 01 Arequipa Granted Questdor SAC 100% Playa Kali 02 Arequipa Granted Questdor SAC 100% Playa Kali 03 Arequipa Granted Questdor SAC 100% Playa Kali 09 Arequipa Granted Questdor SAC 100% Playa Kali 10 Arequipa Granted Questdor SAC 100% Playa Kali 11 Arequipa Granted Questdor SAC 100% Puerto Viejo 1 Arequipa Granted Questdor SAC 100% Puerto Viejo 2 Arequipa Granted Questdor SAC 100% La Arenosa 1 Arequipa Granted Questdor SAC 100% Pirata Sur 1 Arequipa Application Questdor SAC 100% Pirata Sur 02 Arequipa Application Questdor SAC 100% Pirata Sur 03 Arequipa Application Questdor SAC 100% Pirata Sur 04 Arequipa Application Questdor SAC 100% Pirata Sur 05 Arequipa Application Questdor SAC 100% Pirata Sur 06 Arequipa Application Questdor SAC 100% Pirata Sur 07 Arequipa Application Questdor SAC 100%