Interim report
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Challenger Gold Limited ABN 45 123 591 382 Interim Financial Report for the half-year - 30 June 2026
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Challenger Gold Limited Corporate directory For the half-year ended 30 June 2026 1 Directors Peter Marrone (Non-Executive Chairman) Sergio Rotondo (Executive Vice Chairman) Sonia Delgado (Executive Director) Eduardo Elsztain (Non-Executive Director) Fletcher Quinn (Non-Executive Director) Brett Hackett (Non-Executive Director) Carolina Zang (Non-Executive Director) Interim Chief Executive Officer Yohann Bouchard Company secretaries Kelly Moore Michelle Kennedy Registered office Level 1 100 Havelock Street West Perth, WA 6005 Ph: +61 8 6385 2743 www.challengergold.com Share register Automic Registry Services Level 2, 267 St Georges Terrace Perth WA 6000 Ph: 1300 288 664 www.automic.com.au Auditor Ernst and Young (EY) 9 The Esplanade Perth WA 6000 Solicitors Gilbert + Tobin Brookfield Place, Level 16, Tower 2 123 St Georges Terrace, Perth WA 6000 Perth WA 6000 Stock exchange listing Challenger Gold Limited shares are listed on the Australian Securities Exchange (ASX code: CEL)
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Challenger Gold Limited Contents For the half-year ended 30 June 2026 2 Directors' report 3 Auditor's independence declaration 19 Consolidated statement of profit or loss and other comprehensive income 20 Consolidated statement of financial position 21 Consolidated statement of changes in equity 22 Consolidated statement of cash flows 23 Notes to the consolidated financial statements 24 Directors' declaration 38 Independent auditor's review report to the members of Challenger Gold Limited 39
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 3 The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group'), consisting of Challenger Gold Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2026. Directors The following persons were Directors of Challenger Gold Limited during the whole of the financial half -year and up to the date of this report, unless otherwise stated: Peter Marrone (Non-Executive Chairman, appointed 6 August 2026) Sergio Rotondo (Executive Vice Chairman) Kris Knauer (Managing Director, resigned 31 July 2026) Sonia Delgado (Executive Director) Eduardo Elsztain (Non-Executive Director, transitioned from Non-Executive Chairman 6 August 2026) Fletcher Quinn (Non-Executive Director) Brett Hackett (Non-Executive Director) Carolina Zang (Non-Executive Director) Pinchas Althaus (Non-Executive Director, resigned 30 April 2026) Review of operations The loss for the Group after providing for income tax amounted to $10,690,715 (30 Jun 2025: profit of $7,257,221). The curren t period result includes no gain on net monetary position (30 June 2025: $11,716,515), recognised in accordance with AASB 129 Finan cial Reporting in Hyperinflationary Economies. The following is a summary of the activities of the Group for the half -year ended 30 June 2026. In accordance with the continuous disclosure requirements, readers are referred to the announcements lodged with the Australi an Securities Exchange regarding the activities of the Company. Corporate Capital Raising Activities During the half, the Company announced an $85 million capital raise and the appointment of a new management team with completion occurring following an Extraordinary General meeting of shareholders to approve the transaction which was held subsequent to the end of the financial half-year. Mr Peter Marrone was appointed as Non -Executive Chairman. Mr. Marrone has proven global gold discovery and development success with a strong track record of driving shareholder returns. Peter Marrone is currently the Chairman and Chief Executive Office r of Allied Gold Corporation, a company which he and his management team took public in 2023. Before Allied Gold, he served as Executive Chairman of Yamana Gold Inc., a company he founded in 2003. With over 35 years of experience in mining, business and capital markets, Mr. Marrone has founded and taken public several companies across various sectors. Mr. Yohann Bouchard was appointed Chief Operating Officer. Mr. Bouchard brings with him more than 25 years of progressive technical and operations experience in the mining industry. Most recently, he was President of Andean Precious Metals prior to which h e was Executive Vice President and Chief Operating Officer at New Gold. Mr. Bouchard has overseen the successful development of numerous operations including commercial production at New Gold’s New Afton's C -Zone and mining the first development ore from t he Underground New Gold’s Main Zone at Rainy River, both of which were achieved ahead of schedule. In addition, Yohann played a key role in advancing the operations through the free cash flow inflection point. Prior to New Gold, Mr. Bouchard was Senior Vic e President and Chief Operating Officer at Yamana Gold. Mr. Bouchard joined Yamana in October 2014 and was responsible for Yamana Gold's mining operations in the Americas including operations in Argentina’s San Juan province. Prior to joining Yamana, Mr. B ouchard occupied key operating and technical positions with Primero Mining Corporation, IAMGOLD Corporation, Breakwater Resources Ltd. and Cambior Inc.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 4 Mr. Felipe Riquelme has been appointed as Chief Financial Officer of the Company effective 10 August 2026. Mr. Riquelme bring s with him more than 15 years of progressive finance leadership experience within multinational mining organisations. Most recently, he served as Vice President, Financial Planning & Analysis at Andean Precious Metals Corp., where he partnered with executive leadershi p to support strategic decision -making, operational performance and long -term value creation. Prior to Andean Precious Metals, Mr. Riquelme held senior finance leadership positions at New Gold Inc. and Yamana Gold Inc., where he was responsible for support ing global mining operations. Mr. Luke Buchanan was appointed Vice President, Project and Strategic Planning of the Company effective 10 August 2026. Mr. Buchanan brings with him more than 20 years of mining engineering, technical and project experience in the mining industry, with exp ertise in mine planning, technical studies, mineral resources and reserves and project development. Most recently, he was Vice Presiden t, Technical Services at New Gold, prior to which he was Senior Vice President, Technical Services at Yamana Gold. At New Gold, Mr. Buchanan has been responsible for mine planning, mineral resources and reserves estimates, technical studies and technical su pport to operations, including supporting the development and advancement of the Company’s mining projects. Prior to joi ning Yamana, Mr. Buchanan held progressively senior operating and technical positions with Newmont Corporation, AMC Consultants and Primero Mining Corporation in Australia and Canada. Mr. Buchanan holds a Bachelor of Mining Engineering from the University of New South Wales. Board Changes Current Non-Executive Chairman, Mr Eduardo Elsztain, transitioned to the role of Non-Executive Director following shareholder approval of Mr. Marrone's appointment as Non-Executive Chairman. The Company announced the resignation of Mr Pini Althaus as a Non -Executive Director, effective immediately. Mr Althaus resigned to focus on other business opportunities. The Board thanked Mr Althaus for his contribution to the Company during his tenure and wished him well in his future endeavours. Following completion of the $85 million equity raise and the appointment of the new management team, Mr Kris Knauer resigned as Managing Director and Chief Executive Officer of the Company. Mr Knauer has agreed to remain as a consultant to the Company f or a further six -month period to support an orderly transition. Mr Yohann Bouchard was appointed Interim Chief Executive Officer of Challenger Gold. The Board thanked Mr Knauer for his contribution to the Company and wished him well in his future endeavours . HUALILÁN GOLD PROJECT - San Juan, Argentina The Hualilán Gold Project is a large -scale gold and silver project associated with a multi -phase porphyry intrusive. It has extensive historical drilling with over 150 drill-holes dating back to the 1970s. There has been limited historical production reported despite having in excess of 6km of underground workings. Prior to Challenger, the property was last explored in 2006 by La Mancha Resources, a Toronto Stock Exchange listed company. La Mancha’s work resulted in NI 43 -101 (non-JORC) resource estimates that remained open in most directions. Since taking ownership of the project the Company has completed over 850 Diamond core holes and 194 RC holes which have defined a resource of 2.8Moz gold equivalent including a high -grade core of 2.1Moz at 3.1 g/t gold equivalent (refer ASX release 29 Marc h 2023 and Table 2 and Table 3). The Company owns 100% of the Project which initially comprised 15 mining licences and an exploration licence covering the surrounding 604kms2. Highlights During the half-year, the Company completed and announced the results of the Pre-Feasibility Study (PFS) for the 100%-owned Hualilán Gold Project. The PFS, led by Ausenco, was prepared using a conservative approach and identified a number of optimisation opportunities that are being considered as part of the ongoing updated PFS (NI 43 -101) to further improve project economics. The PFS highlights Hualilán as a robust, large -scale, high -quality development opportunity, supported by a staged and capital -efficient development strategy.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 5 The key outcomes of the PFS include: ● Production target: LOM production target of 1.84 Moz AuEq over a 14.25 -year mine life, comprising approximately 1,673 koz of gold, 6,394 koz of silver and 74 kt of zinc. ● Project economics: Based on a US$3,500/oz gold price, the PFS estimates a pre -tax NPV5 of US$1,450 million, post -tax NPV5 of US$1,101 million and forecast post -tax free cash flow of US$1,982 million. The PFS estimates a pre -tax IRR of 45% and a payback period of 2.25 years. ● Spot gold price sensitivity: At a gold price of US$4,500/oz, the PFS estimates a pre-tax NPV5 of US$2,561 million, post-tax NPV5 of US$1,902 million and forecast post -tax free cash flow of US$3,247 million. The corresponding pre -tax IRR is 80% and the payback period is 1.25 years. ● Staged development: The project is planned to commence with heap leach production, with average production of approximately 105 koz AuEq per annum during the first two years, followed by the commencement of the main flotation plant. Production is expected to average approximately 135 koz AuEq per annum over the subsequent production period. ● Capital requirements: The PFS estimates total pre -production capital of approximately US$266.9 million, including a US$35.4 million contingency. Excluding contingency, pre-production capital is approximately US$231.5 million. ● Processing strategy: The PFS incorporates a flexible dual -path processing strategy comprising a 1.5 Mtpa conventional flotation plant and an 8 Mtpa capacity heap leach circuit, both fed from a single open pit. ● Ore Reserves: The Hualilán Ore Reserve comprises approximately 1.5 Moz of gold, 7.7 Moz of silver and 170 kt of zinc. ● Social and economic contribution: The project is expected to create approximately 900 jobs and generate provincial royalties of approximately US$287 million, increasing to approximately US$375 million at the spot gold price used in the PFS, together wit h Argentine corporate taxes and export duties of approximately US$542 million. During the half-year, processing of Hualilán ore commenced, with 39,342 tonnes of Hualilán material processed during the half-year with the inaugural campaign of processing concluding on 30 June 2026. Production during the half -year totalled 1,543 ounces of gold and 6,670 ounces of silver. The project remained in the pre-commercial production phase during the period. Stand-alone Pre-Feasibility Study During the half, the Company released the outcomes of the Pre-Feasibility Study (PFS) on its 100% owned Hualilán Gold project. Hualilán presents a large low-cost and low-risk development opportunity. The PFS, led by Ausenco, is based on a conservative approach and there are several optimisation opportunities being pursued i n the updated PFS (NI 43-101) to further improve project economics (refer ASX Release 18 May 2026). The Company is currently progressing a PFS Update including a NI 43-101 Technical Report targeted for completion in early 2027. The Company confirms that all material assumptions underpinning the production target, forecast financial information, Minera l Resources and Ore Reserves contained in that announcement continue to apply and have not materially changed. The Company is n ot aware of any new information or data that materially affects the information included in that announcement. The Key outcomes of the PFS are summarised below. Key Operational Outcomes of the PFS • Significant scale: LOM production target of 1.84 Moz recoverable AuEq, comprising approximately 1,673 koz of gold, 6,394 koz of silver and 74 kt of zinc over a 14.25-year mine life. • Conventional open pit mining: Conventional drill, blast, truck and shovel open pit mining, with a staged ramp -up over approximately four years. The planned ramp-up is supported by an experienced international mining contractor. • Flexible dual-path processing strategy: o 1.5 Mtpa conventional flotation plant operating in bulk Au/Ag and sequential Au/Ag/Zn modes, treating approximately 18.2 Mt over 12 years and recovering approximately 1,173 koz of gold from approximately 1,249 koz of contained gold at
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 6 an average feed grade of 2.13 g/t Au. Au-Ag concentrate is converted to doré on site, reducing the requirement to transport and market concentrate. o 8 Mtpa capacity heap leach circuit commencing in Year 1, processing approximately 69 Mt over 11.75 years and recovering approximately 500 koz of gold from approximately 724 koz of contained gold. • Staged and capital-efficient development strategy: o Initial heap leach production averaging approximately 105 koz AuEq per annum over the first two years, prior to commencement of production from the main flotation plant. o The flotation plant is planned to be funded from project cash flows approximately two years after commencement of heap leach production, reducing upfront capital requirements. Average annual production is expected to be approximately 135 koz AuEq over the following 10 years • Mining strip ratio: Low average strip ratio of approximately 3.3:1 during the first 2.5 years of mining, with an estimated LOM strip ratio of approximately 6.4:1. • Operating costs: Average LOM AISC of approximately US$1,618 per payable gold ounce. The contractor mining approach reduces upfront fleet capital requirements, with approximately US$300 million of avoided fleet capital expenditure. The Company is investigating an alternative owner-operated mining fleet supported by vendor financing, which has the potential to reduce LOM AISC to approximately US$1,422 per ounce. • Metallurgical recovery: Recovery assumptions based on metallurgical testwork include: o approximately 94.4% gold recovery through bulk flotation; o approximately 92.0% gold recovery through sequential flotation; and o approximately 69.7% gold recovery through heap leaching. The heap leach recovery parameters are considered conservative relative to recent large-diameter heap leach column testwork, which indicates potential for improved recovery performance. • The PFS excludes any Hualilán ore being mined and processed during ongoing toll. Table 1 - PFS Base Case Study Financial Outcomes Summary Metric Unit Base Case Value Total mine life (excluding pre-production) years 14.3 Open pit mining life years 13.8 Heap leach processing life years 11.8 Flotation plant processing life years 12.3 Total material moved Mt 1,007 Strip ratio - 6.4 Total ore mined Mt 126.3 Recovered Gold koz 1,673 Recovered Silver koz 6,394 Recovered Zinc kt 74 Recovered AuEq koz 1,843 LOM Revenue US$M 6,384 Treatment, Refining and Freight Costs US$M (62) Royalties and Export Duties US$M (287) Net Revenue after Royalties US$M 6,035 Mining OPEX US$M (2,169) Processing OPEX US$M (610) G&A OPEX US$M (184) EBITDA / Operating Margin US$M 3,142 Initial Capex (incl. 30% contingency) US$M (267) Sustaining / Expansions Capex (SUSEX) US$M (337) Total Capex + SUSEX US$M (604) Cash Cost US$/Au oz 1,606 All-In Sustaining Cost (AISC) US$/Au oz 1,618 Pre-tax NPV at 5% discount rate US$M 1,450 Pre-tax IRR % 45% Pre-tax payback period (from prod. start) 1 years 2.25 Total royalties at base case price US$M 287 Total royalties at spot prices US$M 375 1 Payback Period from start of production excluding US$35m contingency
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 7 Key Project Enhancement Opportunities Multiple opportunities have been identified which have potential to significantly improve the technical and financial outcomes reported in the PFS. These will be pursued in the DFS, and include: • Material Capex reduction (~US$48M): Grid power Memorandum of Understanding with YPF Luz contemplates third -party funding of all electrical infrastructure under a Power Purchase Agreement, with potential to remove ~US$48M of Capex and further support a low upfront capital strategy. • Metallurgical upside (not yet reflected in PFS): Recent large-diameter heap leach column test work returned ~82% recovery for low-grade (0.2–0.3 g/t Au) material vs PFS assumption of 69.7%, indicating strong upside potential for ongoing test work to support recovery upgrades. o Additionally, large-diameter column test work on higher grade material of Type B, which is yet to be undertaken, could yield even higher processing recovery making heap leach of Type B more attractive. Leading to a potentially smaller processing plant for type C ore with consequent lower expansion capex. o Alternative comminution pathways will also be reviewed which may simplify the flowsheet and reduce up -front capex. • Pit shell design, pit phase sequencing and production smoothing: Opportunity to re-sequence mining by advancing Phase 6 (≈40% higher grade than Phase 5) into earlier years, improving mid-life production (Years 4–8) and smoothing the production profile. • Earlier flotation plant start-up: Reducing construction timeline from 24 to 18 months enables earlier commissioning, bringing forward cash flow and increasing average annual production by avoiding late -stage production troughs. • Refinement of contractor mining agreement: Open-book contract structure with detailed cost build-up and performance-linked KPIs (availability, productivity, fuel, maintenance) provides a pathway to further efficiency gains and cost optimisation. • Multiple capital and operatorship scenarios evaluated: The PFS execution strategy has limited upfront capital deployment to minimise upfront capital required and financing risk. o Owner-operator case: which is the same as the base case but the equipment is purchased, operated and maintained by CEL via a financing agreement with the original equipment manufacturer (OEM). This case forecasts lower AISC (~US$1,422/oz). o Joint development case (Heap Leach and flotation starting from Year 1): Similar NPV to base case with higher early production (~148 koz p.a. from Years 3–11). o Expansion case (the Joint development case with a 2.0 Mtpa flotation plant): +~US$200M NPV uplift and increased LOM production (~2.03 Moz AuEq), driven by routing additional material through higher recovery flotation. o Further expansion potential (2.25 Mtpa flotation plant): Supports ~168 koz AuEq p.a. over 12 years, fully utilising available feed. • Potential Underground Inventory: Additional ~1.0 Mt at ~1.9 g/t AuEq in addition to the residual in pit inferred inventory identified below the PFS pit from MSO analysis. This underground inventory was not considered in the PFS, with mineralisation remaining open at depth. • Infill and Exploration drilling: Challenger to accelerate infill drilling designed to convert inferred resource into indicated to add to the LOM. Additionally, the first resource extension drilling in over 3 years is planned in 2H 2026, with potential to add to the existing resource with Hualilán open along strike and at-depth. • Residual potential mining inventory: The PFS operational schedule leaves 40.4 Mt of, lower confidence, predominantly Inferred Resource category (Table 3), outside the current LOM production plan. Additional feed to each stream has been contemplated in design work, with the underlying design for heap leach structured to accommodate up to 90 Mt of stacking (69Mt stacked in the PFS process schedule) and the Tailings Storage Facility designed to be capable of storing 30 Mt (18Mt required for PFS proces s schedule) via additional designed lifts. Ore Reserves Ore reserves containing 1.5Moz Au, 7.7Moz Ag and 170kt Zn. Ore reserves have been generated using prefeasibility level pit designs, mining costs, processing costs, capital costs, geote chnical slope criteria, dilution, metallurgical recovery and cut -off grade specific to the Hualilán deposit. Gold, silver and zinc prices of US$3,500/oz, US$58/oz and US$1.35/lb respectively have been used to determine the appropriate cut -off grade and establish Ore reserves in the project economic analysis.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 8 Environmental & Social Highlights • Fully Permitted for production o Environmental Impact Assessment (EIA) for the Hualilán Gold Project already approved under Resolution No. 688 -MM- 2024 in San Juan Province, Argentina. Approval covers 19 mining rights, including Hualilán Groups No. 1 and No. 2, enabling progression to full mine construction and development. o Bi-annual EIA Update for 2026 already submitted, with ongoing environmental and social workstreams supporting project advancement. • Significant positive social impact on both San Juan and Argentina creating over 900 new jobs, paying provincial royalties of US$287M (US$375M at spot) and Argentinian corporate taxes plus export duties of US$542M (US$1,004M at spot). • The Company has made strong social commitments including: o Prioritising local employment with a focus on San Juan residents. o Community development program. o Technical training program for local students. o Promoting participation of local and regional suppliers. First Exploration Drilling in 3-Years Subsequent to the end of the half-year the Company announced that exploration drilling has commenced at Hualilán for the first time in more than three years. Four diamond drill rigs have arrived on site and are now drilling. Initial 35,000m program : The four -rig, 35,000 m program comprises predominantly targeted exploration drilling to test extensions of mineralisation at depth and along strike, together with Mineral Resource conversion drilling within the existing open pit des ign. Property-wide geophysical review underway: A comprehensive compilation and reinterpretation of the existing geophysical datasets has commenced to support a district-scale exploration strategy and generate new exploration targets across the Hualilán project. Mineralisation remains open: The existing 2.8 Moz Hualilán Mineral Resource remains open both along strike and at depth. Mining and Toll Milling During the June 2026 quarter, the Company recorded no reportable lost -time injuries involving Hualilán employees and contractors, maintaining the year -to-date total at zero. The lost -time injury frequency rate (LTIFR) for the first half of 2026 was 0 per m illion hours worked. Project to date, a total of 1.35 million tonnes has been mined including 125k tonnes of ore. A total of 45k tonnes of ore was segregated as higher-grade ore for immediate processing and the remaining 80k tonnes was stockpiled to on -site for processing during the startup of the larger-scale stand-alone operation. Mining of the upper sector of the Sánchez pit was completed during the half-year with activities advancing toward the Doña Justa sector within the Sánchez pit area. The Magnata ramp was completed during the half -year allowing pioneering and waste stripping in the Magnata pit to commence. Subsequent to the end of the half-year the company mined the first bench in the Magnata pit. Production during the half -year totalled 1,543 gold ounces and 6,670 silver ounces with the project remaining in pre -commercial production phase. Processing of first Hualilán ore started on 1st May with 39,342 tonnes of Hualilán material processed during the first half of the year with the inaugural campaign of processing concluding on 30 June 2026. This initial campaign, which processed ore from the upper Sanchez and Norte pits, was reduced from 2 to 3 months given the focus on prioritising access to and the start of mining in the Magnata pit during the half-year. The higher-grade continuity initially anticipated in the upper Norte and Sanchez pits did not materialise. This was attributable to the use of underground channel sample data to inform the resource model in the top 40 metres of these pits where drilling was not possible due to the topography. The channel sample data used in these two areas appears to have biased the block model in the upper reache s of these two pits.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 9 The larger-scale project such as defined in the 18 May 2026 Pre -Feasibility Study is not impacted considering that the channel sample bias is contained and limited to the toll milling areas and most importantly, the Pre -Feasibility Study assumes the toll milling area being mined out. Based on these learnings, the Company is strengthening the block model by improving lithological controls and excluding channel sample data. The block model remains robust at a larger-scale; however, predicting near-surface higher-grade zones in the Norte and Sanchez pits has proven more complex than initially modelled. Infill Drilling Program During the half year the Company released results from the 10m spaced infill drilling program within the Hualilán toll milling pits. This 10- metre spaced infill drilling program comprised approximately 40 drillholes in each of the Sanchez, Norte and Magnat a pits and a further 4 holes in the Sentazón pit, which was included in the PFS as a contingency pit. Result included: • 16.0m at 2.5 g/t AuEq1 including 7m at 5.1 g/t AuEq - MG-RC-26-036 Magnata Pit • 5.0m at 19.8 g/t AuEq1 - NT-RC-26-077 Norte Pit • 3.0m at 15.4 g/t AuEq1 - NT-RC-26-082 Norte Pit • 9.0m at 3.3 g/t AuEq1 - SN-RC-26-001 Sentazon Pit • 5.0m at 5.8 g/t AuEq1 - SN--RC-26-003 Sentazon Pit • 4.0m at 11.8 g/t AuEq1 - SN-MG-RC-26-004 Sentazon Pit 1 For gold equivalent information refer to Table 2 and Table 3 footnotes – Hualilán Mineral Resource in this half-year report Hualilán Development Pathway Subsequent to the end of the Half Year the Company outlined a roadmap and Integrated development plan designed to accelerate production, de -risk execution and strengthen project economics. Under this roadmap commercial production at Hualilán is being targeted for early 2029. This production strategy is underpinned by the positive outcomes of the Pre -Feasibility Study for Hualilán announced on 18 May 2026 (see ASX announcement titled "Completion of Hualilán Pre -Feasibility Study"). With key permits already in place, Hualilán is well positioned to advance toward development while the Company focuses on technical optimisation, financing and execution readine ss. The study outlined production of 1.8 million gold equivalent ounces over a 14.25 -year mine life, averaging 135,000 ounces gold equivalent production per year after the first two years. The staged development approach, comprising an initial heap leach o peration followed by the addition of a flotation circuit approximately two years later, reduces pre -production capital requirements to approximately $267 million, including contingency, while generating a post -tax NPV of approximately $1.1 billion, a post -tax IRR of 35% and a payback period of 2.25 years at a gold price assumption of $3,500 per ounce. At a gold price of $4,500 per ounce, post -tax NPV increases to $1.8 billion and the payback period is reduced to 1.25 years. Building on these compelling study outcomes, Challenger has developed an integrated development plan encompassing technical, exploration, financing and execution initiatives designed to progressively de -risk the Phase 1 heap leach development and support t he Company’s objective of achieving commercial production by early 2029. Integrated development plan designed to accelerate production, de-risk execution and strengthen project economics. Key strategic priorities include: Engineering and Optimisation Studies: Advancement of detailed engineering on critical -path activities to support the accelerated development schedule and targeted heap leach production by early 2029. In parallel, the Company is undertaking technical studies aimed at de-risking execution, optimising the mine plan and enhancing overall project economics, while progressing the submission of its RIGI application and preparation of an NI 43-101 technical report. Exploration and Resource Growth: Continuation of near -mine infill and exploration drilling programs targeting extensions to known mineralisation, resource growth and reserve conversion opportunities. The Company is also evaluating additional resource grow th opportunities across the broader Hualilán district, with an initial exploration update targeted for the fourth quarter of 2026. Financing and Capital Markets: The Company plans to refinance the existing US$15 million convertible debenture due in September 2026. If completed, cash on hand and funds from the convertible debenture offering are expected to provide sufficient cash fo r exploration, corporate obligations and Phase 1 project activities through mid-2027, by which time the company aims to have completed a full project financing plan for development of Hualilán.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 10 Project Execution and Financial Discipline: Challenger is reinforcing a disciplined approach to operating expenses and capital allocation, prioritising activities that advance the project toward stand -alone gold production, with a particular focus on critical path items for the Phase 1 heap leach p roject. Expenditure is being directed toward initiatives that deliver the greatest impact on project development, including technical studies, detailed engineering, exploration programs, procurement of long-lead-time equipment, and early works. This focused approach supports efficient capital deployment, de-risks project execution and maintains momentum toward production. The Company is currently focused on completing detailed engineering and procurement of long -lead equipment in preparation for a construction ramp-up through the second half of 2027. The operations team in San Juan is proactively bringing forward expenditur e on early site earthworks, including construction of the mining camp, access roads and main gate to support an accelerated develo pment schedule. As of the end of June, small -scale mining activities have stockpiled 79,897 tonnes of ore at an average grade of 0.72 g/t gold for future processing and the Company is currently progressing discussions regarding a potential transition to an Ore Purchase Agreement. Following the Company's transition away from the third-party toll treatment model, as announced in the Company’s Quarterly Activities Report dated 31 July 2026 and detailed in its ASX announcement on 13 August 2026, the production targets and forecast fina ncial information reported in the previous 2025 Toll Milling Pre -Feasibility Study announced by the Company on 4 June 2025 are superseded and should no longer be relied on. The larger-scale project as defined in the Hualilán standalone May 2026 PFS is not impacted by the transition. The 2026 PFS was prepared on the basis of the mineral resource remaining after the planned toll milling and does not depend on the continuation of toll treatment. The transition may result in an immaterial volume of additional material becoming available for processing under the stand -alone operation. The Company confirms that it is not aware of any new information or data that materially affects the information included in the 2026 PFS and that all material assumptions and technical parameters underpinning the production target, forecast financia l information, Mineral Resource Estimates and Ore Reserve Estimates in that announcement continue to apply and have not materia lly changed. The extent to which ore may be sold under any Ore Purchase Agreement and any potential effect on the mine plan, will be asses sed as part of the ongoing optimisation studies, with results expected to be reflected in updated Mineral Resource and Ore Reserve Estimates targeted for the first half of 2027. EL GUAYABO GOLD AND COLORADO V GOLD/COPPER PROJECT - ECUADOR The El Guayabo Project is located in El Oro Provence, southern Ecuador, and comprises three contiguous tenements, the El Guayabo, El Guayabo 2, and Colorado V tenements. The Company has drilled thirteen of fifteen regionally significant Au-soil anomalies with over 500 metres of mineralisation intersected in seven of these thirteen anomalies, confirming the potential for a major bulk gold system at the El Guayabo Project. The El Guayabo Copper -Gold Tenement - El Oro, Ecuador (CEL 100%) Prior to the Company the project was last drilled by Newmont Mining in 1995 and 1997 targeting gold in hydrothermal breccias which demonstrated potential to host significant gold and ass ociated copper and silver mineralisation. Results from the Company's maiden drill program included 257.8m at 1.4 g/t AuEq including 53.7m at 5.3 g/t AuEq and 309.8m at 0.7 g/t AuEq i ncluding 202.1m at 0.8 g/t AuEq and confirmed continuous mineralisation over 900 metres strike. The Colorado V Copper-Gold Tenement - El Oro, Ecuador (CEL earning 50%) adjoins and has the same geology as the El Guayabo Project. The Geology comprises a metamorphic basement intruded by intermediate alkaline intrusives which range in age from 40 – 10 Ma (million years age). The intrusions are commonly overprinted by late porphyry dykes and intrusion breccia suggesting deeper, evolving magmatic systems are feeding shallower systems. The first drill holes by the Company at Colorado V, confirmed two significant Au-Cu- Ag-Mo discoveries. Results included 528.7m at 0.5 g/t AuEq from surface to the end of the hole including 397.1m at 0.6 g/t AuEq and 570.0m at 0.4 g/t AuEq from surface to the end of the hole including 306.0m at 0.5 g/t AuEq. The El Guayabo 2 Tenement - El Oro, Ecuador (CEL earning 80%) has the same and continuous geology as the Company's adjoining El Guayabo and Colorado V tenements which are believed to contain a “Low Sulphide” porphyry gold copper system.” Limited histori cal exploration has been undertaken on the tenement, with the wor k that has been done undertaken by local Ecuadorian groups that targeted high-grade gold. Historical exploration reports record gold mineralisation in intrusive rocks in outcrop.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 11 Highlights The project hosts an MRE at its Ecuador projects of 9.1 million ounces gold equivalent. The combined 9.1 Moz MRE at El Guayab o (CEL 100%) and Colorado V (CEL 50%) increased to 570.3 mt at 0.50 g/t AuEq (0.36 g/t Au, 2.2 g/t Ag, 0.07% Cu, 9.7 ppm Mo) for 9.1Moz AuEq, of which the attributable resource to CEL is 6.9 Moz AuEq across El Guayabo (100%) and Colorado V (50%). The Company had previously announced an intention to monetise the Ecuador Project to focus on the Hualilán project. Under the new Management team, the monetisation process was paused while the existing mineral resource and exploration strategy is validated prior to a decision on next steps. The Company's Ecuador projects is an asset of significance with several commercial advantages including: • Significant Scale: The 100% increase in resources to 9.1 Moz AuEq creates a significant asset with the project now containing one of the larger undeveloped gold resources in South America. • Exploration Upside: The 9.1 Moz resource is based on drilling at five of the fifteen regionally significant Au -Cu in soil anomalies located across the project. All thirteen Au-Cu soil anomalies drilled by the Company have returned significant mineralisation. • High-grade core enhances economics: 2.1 million ounces at 1.0 g/t AuEq, including 1.2 million ounces at 1.2 g/t AuEq – provides opportunities for early production and strong early cash flow. • Strategic Location: Adjacent to Lumina Gold’s 20.5Moz4 Cangrejos project, which secured a $300M streaming deal with Wheaton Precious Metals in 2023 and is currently subject to a takeover offer – validating the district’s potential. • Infrastructure Advantage: Located 35km from a deepwater port with existing power, water and road access and located on granted Mining Leases – significantly reducing future development costs. o TSX listing of Ecuador assets (where similar projects trade at premium valuations); o Outright sale to generate immediate cash for Hualilán development; o Strategic partnership/farm-in with major mining company. MINERAL RESOURCE ESTIMATES AND ORE RESERVES The Company has reported the following Mineral Resource Estimates: HUALILÁN PROJECT MRE All references to the Hualilán Project MRE in this announcement relate to the ASX Announcements of 1 June 2022, the 29 March 2023 and 18 May 2026 update. Please refer to the announcements for full details and supporting documentation. All references to the Pre-Feasibility Study and its outcomes in this report relate to the announcement dated 18 May 2026 "Hualilán Gold Project Pre-Feasibility Study". Please refer to that announcement for full details and supporting information. The Mineral Resource Estimate (MRE) remains open at depth and in both directions along strike. The previous MRE dated 29 March 2023 was reported using a 0.3 g/t AuEq cut-off grade. The MRE used in the PFS was updated using the same techniques as the previous MRE and then depleted for the planned toll treatment mining. With the PFS demonstrating that Heap leach material grading 0.06 g/t AuEq provides a positive NSR (NS R >US$1/t) under Heap leach the MRE has been restated using a 0.06 g/t cut -off grade. The Indicated and Inferred Mineral Resource used in this PFS is 132.1 Mt containing 2,735 koz AuEq (2,433 koz Au, 13,939 koz Ag, 296.7 kt Zn) as outlined in Table 5 below. It should be noted that the AuEq calculation used in the MRE has been updated for the PFS parameters. Table 2 shows the MRE reported on the basis of the > 0.8 g/’t AuEq and < 0.8 g/t components which approximates the split between processing via the main Flotation Plant and the Heap Leach. Table 3 shows the PFS feed split between main Flotation Plant and the Heap Leach Facility and the residual material available after p rocessing under the PFS is complete. The PFS Heap leach feed will comprise primarily Indicated resource which has an average grade of 0.36 g/t AuEq.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 12 Table 2 PFS Hualilán MRE depleted for planned Toll Milling 1 mining (using a 0.06 g.t cut -off) Domain Category Mt Au g/t Ag g/t Zn % AuEq1 g/t AuEq (oz) US$3500 optimised shell ≥ 0.1 g/t AuEq Indicated 73.3 0.74 3.7 0.27 0.82 1,932,540 Inferred 56.9 0.32 2.5 0.13 0.37 669,033 Below US$3500 shell ≥1.0 g/t AuEq Indicated 0.61 1.7 8.4 1.1 2.0 38,191 Inferred 1.3 2.0 11.4 1.2 2.3 95,659 Total 132.1 0.57 3.3 0.21 0.64 2,735,423 Table 3 PFS Hualilán MRE Reported via > or < 0.8 g/t AuEq components Domain Category Mt Au g/t Ag g/t Zn % AuEq1 g/t AuEq (oz) Indicated 16.9 2.1 8.33 0.79 2.4 1,275,588 Inferred 4.3 2.6 14.78 0.97 2.9 402,690 In pit MRE >0.8 g/t AuEq Total 21.2 2.2 9.64 0.83 2.5 1,678,278 Indicated 56.4 0.32 2.31 0.12 0.36 656,951 Inferred 52.6 0.13 1.50 0.06 0.16 266,343 In pit MRE <0.8 g/t AuEq Total 109.0 0.26 1.9 0.09 0.26 923,294 Indicated 0.61 1.7 8.4 1.1 2.0 38,191 Inferred 1.3 2.0 11.4 1.1 2.3 95,659 Total Below the Pit Total 1.9 1.9 10.5 1.1 2.1 133,850 The MRE is reported to two significant figures to reflect appropriate precision and may not sum precisely due to rounding. A AuEq cut-off of 0.06 g/t has been used to reflect an expected cut -off given the metal price assumptions and metallurgical information for all processing routes. The MRE is inclusive of reserves. 1 Gold Equivalent (AuEq) values: ● Assumed commodity prices for the calculation of AuEq is Au US$3,500 /oz, Ag US$58.33 /oz, Zn US$2,976/t (US$ 1.35/lb). ● Life of mine weighted average metallurgical recoveries are estimated to be Au (84.8%), Ag (59.1%), Zn (33.7%) across all mineralised material types based on metallurgical test work. ● The formula used: is AuEq (g/t) = Au (g/t) + [Ag (g/t) x 0.01161490] + [Zn (%) x 0.14712530]. ● CEL confirms that it is the Company’s opinion that all the elements included in the metal equivalents calculation have reason able potential to be recovered and sold. The AuEq differs from the calculation used in the previous MRE by the removal of Pb as a metal of economic interest and changes in metal price assumptions. HUALILÁN PROJECT ORE RESERVES All references to the Hualilán Project MRE in this announcement relate to the ASX Announcements of 18 May 2026. Please refer to the announcements for full details and supporting documentation. The Ore Reserves are reported in accordance with the JORC Code (2012 Edition) and were estimated by Grant Carlson, P.Eng., of Fuse Advisors Inc. (Vancouver, Canada), a Qualified Person and Member of Engineers and Geoscientists British Columbia. The estimat e includes only Probable Reserves, as it is based on Indicated Mineral Resources. No Proved Reserves have been declared. Inferr ed Resources are treated as waste in the Ore Reserve estimate. Ore reserves have been generated using prefeasibility level pit designs, mining costs, processing costs, capital costs, geote chnical slope criteria, dilution, metallurgical recovery and cut -off grade specific to the Hualilán deposit. Gold, silver and zinc prices of US$3,500/oz, US$58/oz and US$1.35/lb respectively have been used to determine the appropriate cut -off grade and establish Ore reserves in the project economic analysis. The tonnes, grade and contained metal in the Ore Reserve are summarised by classification in Table 4.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 13 Table 4 - Ore Reserves Process Classification Cut-off (NSR $/t) Tonnes (kdmt) Au (g/t) Ag (g/t) Zn (%) Au (koz) Ag (koz) Zn (kt) Heap Leach Proven >2.6/t - - - 0.00 - - - Probable >2.6/t 48,300 0.37 2.63 0.12 581 4,081 60 Bulk Flotation Proven >0/t - - - 0.00 - - - Probable >0/t 11,400 1.91 5.14 0.33 701 1,885 37 Sequential Flotation Proven >0/t - - - 0.00 - - - Probable >0/t 3,161 2.28 17.34 2.30 232 1,763 73 Total Proven Variable - - - - - - - Probable variable 62,861 0.75 3.82 0.27 1,514 7,729 170 Proven & Probable variable 62,861 0.75 3.82 0.27 1,514 7,729 170 dmt = dry metric tonne; wmt = wet metric tonnes; gpt = grams per tonne Notes: (1) Ore Reserves are reported in accordance with the JORC Code (2012 Edition). (2) The Ore Reserves are based on a Pre-Feasibility Study (PFS) completed in April 2026, considering modifying factors including mining, metallurgical, economic, environmental, social and regulatory factors. (3) The Ore Reserves are inclusive of diluting material and mining losses. (4) Ore reserves are reported using a variety of NSR cut-off grades. The NSR was calculated as the revenue from a given block, less the processing and G&A costs. (5) The Ore Reserve estimate is supported by a mine design, schedule, and economic model demonstrating positive cash flow under reasonable assumptions. (6) Metallurgical recoveries used for the estimation are based on a test -work program specifically evaluating metal recoveries in the two flowsheets contemplated for this project: flotation and heap leaching. (7) The Ore Reserve is reported above a pit design which was based on an optimised pit shell generated using metal prices and operating costs consistent with the PFS inputs. (8) Rounding has been applied in accordance with JORC Code guidelines. Totals may not sum exactly due to rounding. (9) The Ore Reserves were estimated by Grant Carlson, P.Eng., an employee of Fuse Advisors Inc., in Vancouver Canada, and a Competent Person and Member of Engineers and Geoscientists British Columbia, with sufficient experience relevant to the style of mineralisation and type of deposit under consideration. (10) The estimate includes only Probable Reserves as it is based on Indicated Mineral Resources. No Proved Reserves have been declared. (11) Inferred Resources are considered too speculative geologically to apply any economic value and are not included in this ore reserve estimate. (12) Units for the reserve estimate are metric tonnes and grams, plus troy ounces for gold. (13) The estimate of Ore reserves may be materially affected by geology, environment, permitting, legal, title, taxation, sociopol itical, marketing, or other relevant risks. EL GUAYABO PROJECT MRE All references to the El Guayabo Project MRE in this announcement relate to the ASX Announcements of 14 June 2023 and 4 April 2025 update. Please refer to the announcements for full details and supporting documentation.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 14 Table 5 - Combined El Guayabo and Colorado V MRE Domain Category Mt Au (g/t) Ag (g/t) Cu (%) Mo (ppm) AuEq (g/t) AuEq (Mozs) El Guayabo Concessions (CEL 100%) Inferred 240 0.36 2.4 0.06 8.0 0.48 3.7 Inferred 52 0.44 1.9 0.07 9.0 0.57 1.0 Inf 292 0.38 2.3 0.06 8.2 0.50 4.7 Total Colorado V Concession (CEL 50%) Indicated 56.5 0.35 2.3 0.08 11.0 0.49 0.9 Inferred 185.5 0.32 2.1 0.08 16.0 0.48 2.8 Inferred 36.1 0.49 2.3 0.06 11.0 0.61 0.7 Ind + Inf 278.1 0.35 2.2 0.08 14.3 0.50 4.4 Combined Project (El Guayabo and Colorado V on a 100% basis) Indicated 56 0.35 2.3 0.08 11.0 0.49 0.9 Inferred 426 0.34 2.3 0.07 9.6 0.34 6.6 Inferred 88 0.46 2.1 0.07 9.6 0.59 1.7 Grand Total Ind + Inf 570 0.36 2.2 0.07 9.7 0.36 9.1 Attributable to CEL (El Guayabo 100% and Colorado V 50%) Indicated 28 0.35 2.3 0.08 11.0 0.49 0.4 Inferred 333 0.35 2.3 0.07 10.2 0.48 5.2 Inferred 70 0.46 2.0 0.07 9.5 0.58 1.3 Grand Total Ind + Inf 431 0.37 2.3 0.07 10.2 0.50 6.9 Note: Some rounding errors may be present ● Assumed commodity prices for the calculation of AuEq is Au US$1800 Oz, Ag US$22 Oz, Cu US$9,000/t, Mo US$44,080/t ● Metallurgical recoveries are estimated to be Au (85%), Ag (60%), Cu (85%) Mo (50%) across all ore types (see JORC Table 1 Sec tion 3 Metallurgical assumptions) based on metallurgical test work. ● The formula used: AuEq (g/t) = Au (g/t) + [Ag (g/t) x 0.012222] + [Cu (%) x 1.555] + [Mo (%) x 4.480026] ● The Company confirms that it is the Company’s opinion that all the elements included in the metal equivalents calculation hav e a reasonable potential to be recovered and sold.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 15 Table 6 - Combined Colorado V and El Guayabo MRE at various cut-off grades Cut off (g/t AuEq) t Au (g/t) Ag (g/t) Cu (%) Mo (%) Au Eq (g/t) oz (AuEq) 0.20 874,866,725 0.36 2.68 0.09% 14.60 0.41 11,580,323 0.25 718,309,413 0.38 2.60 0.08% 13.83 0.45 10,443,378 0.30 570,329,763 0.40 2.52 0.08% 13.23 0.50 9,134,332 0.35 453,242,792 0.42 2.47 0.08% 12.82 0.54 7,912,896 0.40 356,090,282 0.44 2.43 0.08% 11.70 0.59 6,736,834 0.45 257,116,862 0.50 2.57 0.08% 11.94 0.65 5,389,676 0.50 186,393,480 0.56 2.73 0.09% 11.48 0.72 4,314,468 0.55 142,437,750 0.61 2.86 0.09% 11.04 0.78 3,572,414 0.60 108,896,970 0.67 3.02 0.09% 10.48 0.84 2,953,923 0.65 84,332,430 0.72 3.20 0.10% 10.19 0.91 2,460,067 0.70 65,697,450 0.78 3.41 0.11% 9.41 0.97 2,056,096 0.75 51,255,750 0.83 3.62 0.11% 8.30 1.04 1,720,614 0.80 39,896,220 0.89 3.87 0.12% 7.06 1.12 1,437,277 0.85 31,692,570 0.95 4.10 0.13% 7.26 1.20 1,220,303 0.90 26,109,720 1.00 4.30 0.14% 7.03 1.27 1,063,011 0.95 21,738,990 1.05 4.52 0.15% 6.87 1.33 932,900 1.00 17,731,350 1.11 4.78 0.17% 6.85 1.42 807,273 COMPETENT PERSON STATEMENT - EXPLORATION RESULTS AND MINERAL RESOURCES The information that relates to sampling techniques and data, exploration results, geological interpretation and Mineral Reso urce Estimate has been compiled Dr Stuart Munroe, BSc (Hons), PhD (Structural Geology), GDip (AppFin&Inv) who is a full -time employee of the Company. Dr Munroe is a Member of the AusIMM . Dr Munroe has over 20 years’ experience in the mining and metals industry and qualifies as a Competent Person as defined in the JORC Code (2012). Dr Munroe has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideratio n, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Comm ittee (JORC) Australasian Code for Reporting of Exploration Results and Mineral Resources. Dr Munroe consents to the inclusion in this rep ort of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release. The Mineral Resource Estimate for the Hualilán Gold Project was first announced to the ASX on 1 June 2022 and updated 29 March 2023 and 18 May 2026. The Mineral Resource Estimate for the El Guayabo Project was first announced to the ASX on 14 June 2023 and updated on 4 April 2025. The Company confirms it is not aware of any information or assumptions that materially impacts the information included in that announcement and that the material assumptions and technical parameters underpinning the Mineral Resource Estimate continue to apply and have not materially changed. The information that relates to Ore Reserves has been compiled Grant Carlson, P.Eng., who is not a full-time employee of the Company. Mr. Carlson is a registered professional engineer with Engineers and Geoscientists British Columbia. Mr. Carlson has over 20 years experience in the mining and metals industry and qualifies as a Competent Person as defined in the JORC Code (2012). Mr. Carlson has sufficient experience of relevance to the styles of mineralisation and the types of deposits under considerat ion, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Co mmittee (JORC) Australasian Code for Reporting of Exploration Results and Mineral Resources. Mr. Carlson consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release. FORWARD LOOKING STATEMENTS The announcement may contain certain forward-looking statements. Words ‘anticipate’, ‘believe’, ‘expect’, ‘forecast’, ‘estimate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘target’, ‘plan’, ‘potential’ and other similar expressions are intended to iden tify forward -looking statements. Indication of, and guidance on, future costings, earnings and financial position and performance are also forward -looking statements.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 16 Such forward looking statements are not guarantees of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Challenger Gold Ltd, its officers, employees, agents and associates, w hich may cause actual results to differ materially from those expressed of implied in such forward-looking statements. Actual results, performance, or outcomes may differ materially from any projections or forward -looking statements or the assumptions on which those statements are based. You should not place any undue reliance on forward -looking statements and neither Challenger nor its directors, officers, employees, servants or agents assume any responsibility to update such information. The stated Production Targets are based on the Com pany’s current expectations of future results or events and should not be relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be me t. Financial numbers, unless stated as final, are provisional and subject to change when final grades, weight and pricing are ag reed under the terms of the offtake agreement. Figures in this announcement may not sum due to rounding. All dollar amounts in this report refer to Australian Dollar unless otherwise stated. PRIOR ANNOUNCEMENTS Specific results referred to in this report were originally reported in the following Company announcements in accordance wit h ASX Listing Rule 5.7: Title Date Quarterly Activities Report – 3-months to Dec 31 2025 30 Jan 2026 Ore Haulage from Hualilán Commences 27 Feb 2026 Toll Pit Infill Drilling Results 30 Apr 2026 Resignation of Director 30 Apr 2026 Quarterly Activities Report – 3-months to Mar 31 2026 30 Apr 2026 Completion of Hualilán Pre-Feasibility Study 18 May 2026 $85m Placement and new Leadership Appointments 18 May 2026 Consolidation/Split - CEL 18 May 2026 Comments from Chairman Elect Mr Peter Marrone 20 May 2026 First Gold Pour at Hualilán 02 Jun 2026 Investor Webinar Presentation 10 June 2026 Update Consolidation/Split - CEL 29 Jun 2026 First Exploration Drilling in 3-Years Underway at Hualilán 30 Jul 2026 Toll Pit Infill Results 31 Jul 2026 Quarterly Activities Report – 3-months to June 30 2026 31 Jul 2026 Completion of Consolidation 31 Jul 2026 Completion of Equity Raising and Management Changes 06 Aug 2026 Challenger Gold Sharpens Hualilán Development Pathway 13 Aug 2026 Hualilán Roadmap Targets Production by Early 2029 10 Sep 2026 The Company confirms that it is not aware of any information or data that materially affects the information included in the said original announcements and the form and context in which the Competent Persons’ findings are presented have not materially mod ified from the original market announcements. Dividends There were no dividends paid, recommended or declared during the current or previous financial year.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 17 Likely developments and expected results of operations During the half-year ended 30 June 2026, the Group has transitioned to mining development and production in relation to a portion of the Hualilán Gold Project - Hualilán Tolling Phase with first gold pour in June 2026. The Group is currently undertaking toll mining via the Hualilán Tolling Phase and, subject to successful implementation, expects to generate revenue from gold sales. Subsequent to the end of the half-year the Company announced the results of an operational review has confirmed that the current small scale, selective mining model is less suited to the broader, more disseminated grade distribution now better understood within the orebody. During an orderly transition period of approximately four months, the Company intends to focus activity on mining, preparing, stockpiling and commercialising ore that is confirmed to be technically and economically suitable. Challenger is also assessing replacement of the existing toll treatment structure with an ore purchase arrangement with Casposo. If implemented, this arrangement is expected to reduce direct exposure to third-party processing cost risk while maintaining a commercial pathway for cashflow generation. Significant changes in the state of affairs There were no significant changes in the state of affairs during the half -year ended 30 June 2026. Post half -year end, the Company announced the settlement of Tranche 2 of the $85m Placement announced on 18 May 2026 and changes to both the Board and Management. Refer below for further details. Matters subsequent to the end of the financial half-year The Company completed a 20-for-1 consolidation of its issued shares following shareholder approval on 27 July 2026. The completion of Tranche 2 of the $85 million capital raising which was announced on 18 May, issuing 25.75 million shares at $2.40 per share and 12.9 million free-attaching options, raising $61.8 million. Tranche 2 comprised of: • $46.5m placement to Institutional, sophisticated and professional investors; • $8m placement to Mr Peter Marrone; • $2m placement to other lead investors; • $5.3m placement to affiliates of Eduardo Elsztain On 6 August 2026, the Company completed the issue of: • 10 million shares issued to Mr Marrone and other lead investors as consideration for the acquisition of 100% of the issued capital in Blue Spruce Holdings (Australia) Pty Ltd pursuant to the share purchase agreement ( SPA) • an aggregate of 2.5 million concurrent SPA shares to Inversiones Financieras Del Sur and Dolphin Real Assets Fund SPC Ltd as outlined in the Notice of Meeting for the EGM. The Company announced the below Board and Management changes: • Peter Marrone was appointed Non-Executive Chairman effective 6 August 2026, • Eduardo Elsztain transitioned to Non-Executive Director effective 6 August 2026, • Kris Knauer resigned as Managing Director and Chief Executive Officer effective 31 July 2026, • Yohann Bouchard appointed Chief Operating Officer and Interim Chief Executive Officer effective 6 August 2026, • Felipe Riquelme appointed Chief Financial Officer effective 10 August 2026. The Company announced a disciplined transition from the current third -party toll treatment model towards a structure that better supports the long -term development of Hualilán and that Challenger is also assessing the replacement of the existing toll treat ment structure with an ore purchase arrangement with Casposo. No other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect, t he Group's operations, the results of those operations or the Group's state of affairs in future financial years. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immed iately after this Directors' report. On 10 September 2026, the Company issued 833,333 shares at $2.40 per share and 416,667 free-attaching options, on the same terms as the placement announced on 18 May 2026, raising $2 million.
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Challenger Gold Limited Directors' report For the half-year ended 30 June 2026 18 This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the Directors ___________________________ Peter Marrone Non-Executive Chairman 11 September 2026 Toronto, Canada
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 9 The Esplanade Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Auditor’s independence declaration to the directors of Challenger Gold Limited As lead auditor for the review of the half-year financial report of Challenger Gold Limited for the half-year ended 30 June 2026, I declare to the best of my knowledge and belief, there have been: a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; b. No contraventions of any applicable code of professional conduct in relation to the review; and c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the review. This declaration is in respect of Challenger Gold Limited and the entities it controlled during the financial period. Ernst & Young T S Hammond Partner 11 September 2026 19
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Challenger Gold Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 30 June 2026 Consolidated Note 30 Jun 2026 30 Jun 2025 $ $ The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 20 Revenue Other income 5 2,812,888 1,831,237 Gain on net monetary position 4 - 11,716,515 Expenses Accounting and audit fees (189,768) (274,332) Consultants’ and Directors’ fees (655,180) (521,992) Legal and compliance (318,112) (195,675) Investor relations, conferences, and corporate advice (354,980) (139,025) Employee expenses (46,401) (68,921) Travel expenses (188,537) (107,767) Public company and administration expenses 6 (2,007,644) (712,399) Share-based payments 20 5,413 (431,117) Foreign exchange loss (421,287) (601,126) Depreciation (218,368) (162,702) Finance costs (2,682,772) (2,777,214) Other (110,733) (542,875) Fair value loss on derivative liability - (210,790) Net realisable value adjustment in relation to inventories 14 (1,819,547) - Loss from impairment of intangible asset - toll processing 8 (4,678,199) - (Loss)/profit before income tax benefit (10,873,227) 6,801,817 Income tax benefit 13 182,512 455,404 (Loss)/profit after income tax benefit for the half-year attributable to the owners of Challenger Gold Limited (10,690,715) 7,257,221 Other comprehensive loss Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations (4,642,635) (21,811,013) Other comprehensive loss for the half-year, net of tax (4,642,635) (21,811,013) Total comprehensive loss for the half-year attributable to the owners of Challenger Gold Limited (15,333,350) (14,553,792) Cents Cents Basic (loss)/earnings per share 12 (0.43) 0.42 Diluted (loss)/earnings per share 12 (0.43) 0.41
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Challenger Gold Limited Consolidated statement of financial position As at 30 June 2026 Consolidated Note 30 Jun 2026 31 Dec 2025 $ $ The above consolidated statement of financial position should be read in conjunction with the accompanying notes 21 Assets Current assets Cash and cash equivalents 20,027,362 36,194,257 Other receivables 351,192 234,803 Prepayments 1,340,860 3,765,835 Inventories 14 16,438,086 1,061,266 Total current assets 38,157,500 41,256,161 Non-current assets Other receivables 9,550,755 4,801,854 Intangible asset - toll processing 8 - 4,724,260 Property, plant and equipment 1,370,477 1,427,734 Exploration and evaluation expenditure 7 207,202,153 205,479,330 Mining development assets 15 32,262,543 16,062,295 Prepayments 386,700 398,979 Right-of-use asset 85,630 123,689 Total non-current assets 250,858,258 233,018,141 Total assets 289,015,758 274,274,302 Liabilities Current liabilities Trade and other payables 9 17,216,641 7,257,996 Interest bearing and derivative liabilities 10 21,004,538 19,879,744 Derivative liabilities 10 17,170 1,265,180 Lease liabilities 70,054 72,278 Provisions 110,325 106,704 Total current liabilities 38,418,728 28,581,902 Non-current liabilities Trade and other payables 9 - 1,584,024 Lease liabilities 57,527 59,354 Deferred tax liabilities - 280,678 Provisions 2,780,724 2,869,017 Total non-current liabilities 2,838,251 4,793,073 Total liabilities 41,256,979 33,374,975 Net assets 247,758,779 240,899,327 Equity Issued capital 11 246,649,014 222,189,701 Reserves (169,879,370) (161,679,458) Retained profits 170,989,135 180,389,084 Total equity 247,758,779 240,899,327
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Challenger Gold Limited Consolidated statement of changes in equity For the half-year ended 30 June 2026 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 22 Issued Share based payment Foreign exchange Capital Retained Total equity capital reserve reserves reserve profits Consolidated $ $ $ $ $ $ Balance at 1 January 2025 151,328,201 4,485,539 (127,392,724) - 174,619,248 203,040,264 Profit after income tax benefit for the half-year - - - - 7,257,221 7,257,221 Other comprehensive loss for the half-year, net of tax - - (21,811,013) - - (21,811,013) Total comprehensive (loss)/profit for the half-year - - (21,811,013) - 7,257,221 (14,553,792) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs 34,524,224 - - - - 34,524,224 Share-based payments (note 20) - 2,219,088 - - - 2,219,088 Transfer to capital reserve - - - 1,131 (1,131) - Transfer between classes of equity 329,700 (329,700) - - - - Balance at 30 June 2025 186,182,125 6,374,927 (149,203,737) 1,131 181,875,338 225,229,784 Issued Share based payment Foreign exchange Capital Retained Total equity capital reserve reserves reserve profits Consolidated $ $ $ $ $ $ Balance at 1 January 2026 222,189,701 7,102,544 (168,783,171) 1,169 180,389,084 240,899,327 Loss after income tax benefit for the half-year - - - - (10,690,715) (10,690,715) Other comprehensive loss for the half-year, net of tax - - (4,642,635) - - (4,642,635) Total comprehensive loss for the half-year - - (4,642,635) - (10,690,715) (15,333,350) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 11) 24,459,313 (2,351,045) - - - 22,108,268 Share-based payments - 84,534 - - - 84,534 Transfer between classes of equity - (1,290,766) - - 1,290,766 - Balance at 30 June 2026 246,649,014 3,545,267 (173,425,806) 1,169 170,989,135 247,758,779
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Challenger Gold Limited Consolidated statement of cash flows For the half-year ended 30 June 2026 Consolidated 30 Jun 2026 30 Jun 2025 $ $ The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 23 Cash flows from operating activities Payments to suppliers and employees (13,692,451) (2,014,606) Interest received 169,778 21,457 Interest paid (829,340) (977,711) Net cash used in operating activities (14,352,013) (2,970,860) Cash flows from investing activities Receipts from Blue Chip Swaps transactions 921,357 149,772 Expenditure on exploration (5,652,118) (5,045,000) Expenditure on property, plant, and equipment (175,603) (92,502) Expenditure on mining development (19,395,476) - Fee paid in relation to toll processing agreement - (3,227,576) Net cash used in investing activities (24,301,840) (8,215,306) Cash flows from financing activities Repayment of loans - (13,784) Proceeds from share issue 23,130,720 36,518,098 Share issue costs (1,509,524) (1,840,105) Receipts on exercise of options 215,000 - Funds from shares not issued 700,000 100,000 Proceeds from drawdown facility - 2,712,635 Net cash from financing activities 22,536,196 37,476,844 Net (decrease)/increase in cash and cash equivalents (16,117,657) 26,290,678 Cash and cash equivalents at the beginning of the financial half-year 36,194,257 853,144 Effects of exchange rate changes on cash and cash equivalents (49,238) (381,676) Cash and cash equivalents at the end of the financial half-year 20,027,362 26,762,146
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 24 Note 1. General information The condensed interim financial statements cover Challenger Gold Limited as a Group consisting of Challenger Gold Limited and the entities it controlled at the end of, or during, the period ended 30 June 2026. The financial statements are presented in Aus tralian dollars, which is Challenger Gold Limited 's functional and presentation currency. The Company is a for -profit ASX listed entity domiciled in Australia. 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. The interim financial statements were authorised for issue, in accordance with a resolution of Directors, on 11 September 202 6. Note 2. Material accounting policy information The accounting policies adopted in the preparation of these interim financial statements are consistent with those applied in the preparation of the Group's annual financial statements for the year ended 31 December 2025, except for the adoption of new an d amended Accounting Standards and Interpretations applicable to the current reporting period, as described below. New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Going concern The interim financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Group has a net current liability position of $261,228 at 30 June 2026 (31 December 2025: net current asset position of $12,674,259) and incurred a net cash outflow from operating and investing activities of $14,352,013 and $24,301,840 respectively for the 6 months ended 30 June 2026 (6 months ended 30 Jun 2025: $2,970,860 and $8,215,306 respectively). The Group had cash and cash equivale nts of $20,027,362 at 30 June 2026 ($36,194,257 at 31 December 2025). Subsequent to 30 June 2026, Tranche 2 of the Institutional placement (disclosed in the announcement dated 31 July 2026 Completion of Equity Raising & Board/Management updates) to raise $61.8 million was completed. At 31 August 2026, the Group had cash and cash equivalen ts of $50,470,780. Included in current liabilities as at 30 June 2026 are debentures of $ 21,004,538 (31 December 2025: $ 19,879,744) as disclos ed in note 10 which are due on 14 September 2026 and can be converted to equity at any time at the option of the debenture holder d uring their term. The debenture is scheduled to be repaid on 14 September 2026 from the Group’s existing cash and cash equivalents balanc e. The Directors have prepared a cashflow forecast to 30 September 2027 which shows the Group would have sufficient cash to meet its obligations as and when they fall due. The Directors acknowledge that the cashflow forecasts are dependent on further funding either via new finance arrangements and/or additional capital raisings. Based on the Group’s cash flow forecast for the period endin g 30 September 2027, the Board of Directors is aware of the Group’s need to access additional capital in the next 12 months to enable the Group to continue its normal business activities to ensure the realisation of assets and extinguishment of liabilities as and when they fall due, including progression of its exploration interests in relation to the greater Hualilan project. In the event that the Group is unable to secure the additional funding as mentioned above and is unable to meet its liabiliti es by their respective due dates, there is material uncertainty as to whether the Group can continue as a going concern and therefo re whether it will realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the consolidated financial statements. Based on the results from the Group’s demonstrated ability to successfully raise capital from multiple sources, the Directors are satisfied that at the date of signing of the interim financial report, there are reasonable grounds to believe that the Group will be able to pay its debts as and when they fall due and that it is appropriate for the interim financial statements to be prepared on a going con cern basis.
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 2. Material accounting policy information (continued) 25 The consolidated financial statements do not include any adjustment relating to the recoverability or classification of recor ded asset amounts or to the amounts or classification of liabilities that may be necessary should the Group not be able to continue as a going concern. Basis of preparation The Interim Consolidated Financial Statements for the half -year ended 30 June 2026 have been prepared in accordance with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Act 2001. The accounting policies and methods of computation adopted by the Group in these Interim Consolidated Financial Statements ar e consistent with those applied by the Group in its consolidated annual financial statements as at and for the year ended 31 De cember 2025. These Interim Consolidated Financial Statements do not include all the notes of the type normally included in annual fi nancial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as the full financial statements. Accordingly, these half-year financial statements are to be read in conjunction with the annual financial statements for the year ended 31 December 2025 and any public announcements made by Challenger Gold Limited during the half -year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The Company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. Historical cost convention The financial statements have been prepared under the historical cost convention with the exception of any financial instrume nts measured at fair value. Cost is based on the fair values of the consideration given in exchange for assets. Note 3. Operating segments The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Dire ctors in assessing performance and determining the allocation of resources. The Group is managed primarily by the location of its p rojects. Operating segments are therefore determined on the same basis. Australia Ecuador Argentina Consolidated $ $ $ $ For the half-year ended 30 June 2026 Interest income 169,778 - - 169,778 Other income 1,742,741 - 900,369 2,643,110 Total segment income 1,912,519 - 900,369 2,812,888 Finance costs (2,629,992) - (52,780) (2,682,772) Foreign exchange loss - - (421,287) (421,287) Loss from impairment of intangible asset (4,678,199) - - (4,678,199) Net realisable value adjustment in relation to inventories - - (1,819,547) (1,819,547) Segment net Loss before tax (6,763,488) (81,305) (4,028,434) (10,873,227) At 30 June 2026 Total segment assets 84,659,703 32,915,082 171,440,973 289,015,758 Total segment liabilities 25,424,319 363,707 15,468,953 41,256,979 Included within segment assets Cash at bank 13,894,210 162,347 5,970,805 20,027,362 Plant and equipment and exploration expenditure 52,238,033 32,550,672 154,120,085 238,908,790
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 3. Operating segments (continued) 26 Australia Ecuador Argentina Consolidated $ $ $ $ For the half-year ended 30 June 2025 Interest income - - 22,419 22,419 Other income 1,647,678 - 161,140 1,808,818 Total segment income 1,647,678 - 183,559 1,831,237 - - - - Gain on net monetary position - - 11,716,515 11,716,515 - - - - Finance costs (2,676,096) - (101,118) (2,777,214) Foreign exchange loss - - (601,126) (601,126) Segment net (Loss)/profit before tax (2,833,526) (330,270) 9,965,613 6,801,817 At 30 June 2025 Total segment assets 78,369,856 33,056,844 140,064,824 251,491,524 Total segment liabilities 21,104,872 402,100 4,754,768 26,261,740 Included within segment assets Cash at bank 26,293,535 180,797 287,814 26,762,146 Plant and equipment and exploration expenditure 48,703,765 32,578,686 137,452,718 218,735,169 Note 4. Hyperinflation During the year ended 31 December 2025, the Board approved a change in the functional currency of the Group’s Argentine subsi diary (Golden Mining SA) from the Argentine peso to the US dollar, that was effective 1 October 2025. This change followed the Grou p’s decision to proceed with toll mining operations in Argentina on the same date, which resulted in the majority of the Group’s cash outflows in Argentina being denominated in US dollars. For the period up to 30 September 2025, the Group’s accounting policy in relation to the adoption of AASB 129 Financial Repor ting in Hyperinflationary Economies (AASB 129) applied in relation to Golden Mining SA (Argentine peso functional currency) has been disclosed in the consolidated annual financial statements as at and for the year ended 31 December 2025. Note 5. Other income Consolidated 30 Jun 2026 30 Jun 2025 $ $ Interest received 169,778 22,420 Gain on blue chip swaps1 900,369 161,140 Fair value gain on derivative liability (refer note 10) 1,248,010 - Foreign exchange gain 494,731 1,647,677 Other income 2,812,888 1,831,237 1The Group uses a legal trading mechanism commonly known as the Blue Chip Swap, under which the Argentinian subsidiary, Golden Mining S.A., purchases Argentine securities in US dollars and sells those securities in Argentina for Argentine pesos on the same day. This mechanism enables the Group to fund working capital in its Argentine operations. Historically, the Blue Chip Swap rate has differed significantly from Argentina’s official exchange rate, resulting in the Gr oup recognising gains on Blue Chip Swap transactions. The difference between the Blue Chip Swap rate and the official exchange rate narrowed significantly during the current reporting period, resulting in a substantially lower gain being recognised for the current p eriod.
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 5. Other income (continued) 27 The Blue Chip Swaps are financial instruments where the gain or loss associated with the trading of these financial instruments is treated as other income or other expenses. The Group holds no Argentinian securities at 30 June 2026 (31 December 2025: nil) and never holds Argentinian securities overnight. Note 6. Public company and administration expenses Consolidated 30 Jun 2026 30 Jun 2025 $ $ Compliance costs 98,882 119,477 Office expenses 496,530 165,417 Argentina other taxes and charges1 1,250,445 166,998 Other expenses 161,787 260,507 2,007,644 712,399 1Includes Argentinian bank transaction taxes relating to the 2023 to 2025 financial years, which were not withheld by the bank during those periods and were paid during the current period and Argentinian equity tax payments relating to the 2024 and 2025 fin ancial years. Note 7. Exploration and evaluation expenditure Consolidated 30 Jun 2026 31 Dec 2025 $ $ Exploration and evaluation 207,202,153 205,479,330 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial half -year are set out below: Consolidated $ Balance at 1 January 2025 222,000,458 Additions 14,014,203 Impact of hyperinflation and foreign exchange movements (24,388,799) Transfers in/(out) (6,146,532) Balance at 31 December 2025 205,479,330 Additions 6,518,770 Impact of foreign exchange movements (4,795,947) Balance at 30 June 2026 207,202,153 In accordance with the Group’s accounting policies, exploration and evaluation expenditure incurred by or on behalf of the Gr oup is accumulated separately for each area of interest. Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a mining operation.
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 7. Exploration and evaluation expenditure (continued) 28 Exploration and evaluation expenditure for each area of interest is expensed as incurred unless one of the following conditio ns is met: ● such costs are expected to be recouped through successful development and exploitation of the area of interest or, alternativ ely, by its sale; or ● exploration and evaluation 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, and active and significant operations in relation to the ar ea are continuing. Where a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment. To the extent that there are insufficient, un -depleted resource ounces relating to the particular area of interest, the capitalised costs relating to the area of interest are written off against income in the year. Exploration cost s capitalised in relation to areas that have sufficient un-depleted resource ounces are reclassified to capitalised mining costs once a decision to proceed with development is made. The Group’s accounting policy is consistent with AASB 6 Exploration for and Evaluation of Mineral Resources (AASB 6). The Gro up has considered the facts and circumstances available at 30 June 2026 and determined that its projects in Argentina and Ecuador continue to meet the criteria under AASB 6 to be recognised as exploration and evaluation assets as at that date given no Final Investmen t Decision had been made at the half-year to proceed with development. Note 8. Intangible asset - toll processing Consolidated 30 Jun 2026 31 Dec 2025 $ $ Non-current assets Intangible asset - toll processing - 4,724,260 On 30 December 2024, the Group signed the definitive Binding Toll Processing Agreement (the ‘Agreement’) with Casposo Argenti na Mining Limited, a subsidiary of Austral Gold Limited, the operator of the Casposo treatment plant located in San Juan Argentina, for toll processing ore from the Hualilán Gold Project. Austral Gold Limited is a company related to Mr. Elsztain, the Group’s non -executive chairman. Under the terms of the Agreement, on 10 January 2025, the Group made an upfront payment of US$2 million as a user fee for the right to access the Casposo treatment plant over three years. The amount would be refundable if the plant was not ready for commercial operations by 31 July 2025, except where the delay or other relevant circumstances were beyond Casposo’s control. The payment would also be refundable if the Technical Committee, comprising employees of Challenger and the Group, determined (following comple tion of all relevant studies and testing) that less than 70% of the material from Challenger’s Hualilán project processed at the Casposo plant would be recovered. At 30 June 2026, following a review of the toll-processing arrangements and the Group’s planned transition to alternative arrangements for the sale of suitable ore, the Group determined that no further future economic benefits were expected from the plant access rights. Accordingly, the recoverable amount of the intangible asset was assessed as nil, and its remaining carrying amount was fully impaired at 30 June 2026.
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 29 Note 9. Trade and other payables Consolidated 30 Jun 2026 31 Dec 2025 $ $ Current liabilities Trade payables 2,509,368 2,671,392 Accruals 12,032,392 3,503,394 Provision for employee entitlements 1,364,840 631,201 Other payables 610,041 402,009 Funds received for shares not yet issued 700,000 50,000 17,216,641 7,257,996 Non-current liabilities Other payables1 - 1,584,024 17,216,641 8,842,020 Trade and other payables (other than the payment for the user right to the Casposo treatment plant as described above) are non-interest bearing and payable on demand. Note 10. Interest bearing and derivative liabilities Consolidated 30 Jun 2026 31 Dec 2025 $ $ Current liabilities QRC Debenture 21,004,538 19,879,744 Convertible Debentures On 6 September 2022, the Group issued US$15 million of 9% convertible debentures. The debentures are convertible, at the opti on of the debenture holder and subject to the terms and conditions of the Debenture Agreement between the Group and the debenture holder, into fully paid ordinary shares in the capital of the Group. The debentures are unsecured and bear interest at a coupon rate of 9%, comprising 7% payable in cash and 2% payable in either cash or shares, at the election of the debenture holder. Interest is payable quarterly in arrears. The share price used to calcula te the number of shares to be issued in respect of the interest component payable in shares is the 20 -day volume-weighted average price ending three trading days before the relevant interest payment date. The debentures have a four-year term from closing and are repayable by the Group on expiry on 14 September 2026, to the extent that they have not previously been converted into shares. The debentures may be converted to equity at any time at the option of the debenture holder during their term, resulting in the current classification of all debenture related liabilities. The debenture is scheduled to be repaid on the 14th September 2026. The Debentures give the holder an option to convert the debenture into equity (being a call option) and the associated potent ial issue of shares give rise to a variable amount, in Australian dollars, of equity that would be issued by the Group and therefor e the debenture fails to meet the requirements to be classified as equity. It was concluded that the Derivative Financial liability – conversion component is not clearly and closely related to the debt host contract and is therefore bifurcated and measured separately. The Derivative Financial liability – conversion component has therefore been accounted for at fair value through profit and loss, with the conversion feature dependent on foreign exchange rates and other factors as set out below. 1The additional US$1 million for the user right in relation to the Casposo treatment plant over three years, due for payment on 10 January 2027, with 6% per annum interest accruing (see note 8). This is reflected in the current period accruals.
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 10. Interest bearing and derivative liabilities (continued) 30 In relation to the conversion feature of the Debentures, management performed a valuation at fair value on initial recognitio n and at the balance date with the movement in the fair value recognised in the profit or loss. The loan component of Debentures is measured at fair value on recognition and is subsequently measured at amortised cost using the effective interest rate method. Valuation of Derivative Financial liability – conversion component At 30 June 2026, the Group determined the fair value of the conversion feature of the Debentures to be $17,170 (31 December 2 025: $1,265,180) with the following key valuation assumptions: Share Price: CEL’s share price based on the Company’s closing share price as at 30 June 2026 and 31 December 2025. Volatility: Calculated using implied volatility of 70% for the CEL share price at 30 June 2026 (70% at 31 December 2025); Risk free rate: The Australian 3 year bond rate of 4.54% (4.142% at 31 December 2025 ); Dividend yield: Assumed that the Company will not pay a dividend during the life of the debenture; Foreign Exchange: the interpolated RBA conversion rate of $0.689359 was used as the conversion rate from USD to AUD ($0.668144 at 31 December 2025). Note 11. Issued capital Consolidated 30 Jun 2026 31 Dec 2025 30 Jun 2026 31 Dec 2025 Shares Shares $ $ Ordinary shares - fully paid 2,632,273,535 2,420,119,607 246,649,014 222,189,701
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 11. Issued capital (continued) 31 Movements in ordinary share capital Details Date Shares $ Balance 1 January 2025 1,532,201,246 151,328,201 Placement 10 January 2025 147,726,678 $0.045 6,647,701 Shares issued on vesting of performance shares 15 January 2025 1,611,757 97,537 Shares issued in lieu of debenture interest 15 January 2025 2,500,000 $0.044 110,000 Shares issues in lieu of supplier payment - Finder's fee 15 January 2025 1,500,000 $0.045 67,500 Shares issues in lieu of supplier payment - Consultants 15 January 2025 2,200,000 $0.045 99,000 Shares issued in lieu of debenture interest 01 May 2025 1,875,000 $0.080 150,000 Shares issued on vesting of performance shares 01 May 2025 894,508 232,163 Placement 11 June 2025 375,000,000 $0.080 30,000,000 Shares issued in lieu of debenture interest 04 July 2025 1,250,000 $0.092 115,000 Placement 26 August 2025 94,725,343 $0.080 7,578,027 Shares issued on vesting of performance rights 26 August 2025 15,000,000 825,000 Placement 03 November 2025 230,769,231 $0.130 30,000,000 Shares issued in lieu of debenture interest 04 November 2025 833,333 $0.129 107,500 Shares issued on vesting of performance rights 04 November 2025 7,500,000 412,500 Shares issued in lieu of salary 04 November 2025 1,021,801 $0.125 114,375 Shares issued in lieu of salary 04 November 2025 520,710 $0.125 65,089 Shares issued in lieu of supplier payment 04 November 2025 240,000 $0.080 19,200 Shares issued in lieu of supplier payment 04 November 2025 1,300,000 $0.050 65,000 Shares issued in lieu of supplier payment 04 November 2025 450,000 $0.125 56,250 Shares issued on exercise of options 10 December 2025 500,000 $0.100 59,127 Shares issued on exercise of options 19 December 2025 500,000 $0.100 59,127 Share issue transaction costs, net of tax (6,018,596) Balance 31 December 2025 2,420,119,607 222,189,701 Shares issued on exercise of options 12 January 2026 500,000 $0.100 59,127 Shares issued on exercise of options 12 January 2026 3,333,333 $0.050 279,194 Shares issued in lieu of debenture interest 12 January 2026 833,333 $0.133 110,833 Shares issued on exercise of options 20 January 2026 500,000 $0.100 59,127 Shares issued on vesting of performance rights 25 March 2026 13,549,444 $0.000 2,218,599 Placement - Tranche 11 25 May 2026 192,756,000 $0.120 23,130,720 Shares issued in lieu of debenture interest 25 May 2026 681,818 $0.160 109,412 Share issue transaction costs, net of tax (1,507,699) Balance 30 June 2026 2,632,273,535 246,649,014 1On 18 May 2026, the Group announced it had received binding commitments for a $85 million placement, at $0.12 per share. One free- attaching unlisted option would be issued for every 2 new shares, with an exercise price of $0.156 and expiry date of 30 June 2029. The placement comprising: ● $69.7m to institutional, sophisticated, and professional investors; ● $10m to Peter Marrone and other lead investors; and ● $5.3m to affiliates of Eduardo Elsztain. The shares will be issued in two tranches: ● Tranche 1: to raise $23.1 million via the issue of 193 million shares and 96 million options under the Company's available placement capacity. Tranche 1 was settled and the free attaching option issued on 25 May 2026. ● Tranche 2: to raise $61.8 million via the issue of 388 million shares and 193 million options to institutional investors, 84 million shares and 42 million options to Peter Marrone and other lead investors and 44 million shares and 22 million options to aff iliates of Eduardo Elsztain. Tranche 2 was settled and the free attaching options were issued on 31 July 2026, post shareholder appro val on 27 July 2026.
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 11. Issued capital (continued) 32 The Group does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Group, to participate in the proceeds from sale of all surpl us assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in p erson or proxy, at a meeting of the Group. Note 12. Earnings per share Consolidated 30 Jun 2026 30 Jun 2025 $ $ (Loss)/profit after income tax attributable to the owners of Challenger Gold Limited (10,690,715) 7,257,221 Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 2,470,656,756 1,719,213,314 Adjustments for calculation of diluted earnings per share: Performance shares and options over ordinary shares - 65,461,973 Weighted average number of ordinary shares used in calculating diluted earnings per share 2,470,656,756 1,784,675,287 Cents Cents Basic (loss)/earnings per share (0.43) 0.42 Diluted (loss)/earnings per share (0.43) 0.41 For fully diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of dilutive potential ordinary shares. The Group’s potentially dilutive securities consist of share options, performance shares a nd performance rights. Note 13. Income tax benefit Consolidated 30 Jun 2026 30 Jun 2025 $ $ Numerical reconciliation of income tax benefit and tax at the statutory rate (Loss)/profit before income tax benefit (10,873,227) 6,801,817 Tax at the statutory tax rate of 30% (3,261,968) 2,040,545 Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-assessable income - hyperinflation - (3,992,926) Non-taxable fair value gain (374,403) 63,237 Differences in tax rate of subsidiaries operating in different jurisdictions 197,356 505,360 Other deferred tax assets not recognised relating to tax losses 371,406 928,380 Impairment in relation to intangible assets - toll processing 1,403,460 - Deferred tax assets not recognised 1,481,637 - Income tax benefit (182,512) (455,404)
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 33 Note 14. Inventories Consolidated 30 Jun 2026 31 Dec 2025 $ $ Current assets Ore stockpiles 5,343,616 1,061,266 Work in progress 1,597,590 - Gold doré at net realisable value 9,496,880 - 16,438,086 1,061,266 At 30 June 2026, the Group assessed the recoverability of its gold inventory and ore stockpiles by reference to estimated net realisable value. As a result of this assessment, an inventory write -down of $1,819,547 was recognised to reduce the carrying valu e of Gold doré inventories to their estimated net realisable value. Accounting policy for inventories Ore stockpiles represent toll-milling ore that has been extracted and is available for processing. Ore stockpiles are measured at the lower of actual cost and net realisable value. Cost includes direct materials and delivery costs, direct labour, and an ap propriate proportion of variable and fixed overheads based on normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventory sold is measured using actual cost, which reflects the expected cost of production. No depreciation or amortisation of mine properties or other property, plant and equipment is included in the cost of inventory sold prior to the mine start date. Ore stockpiles, including toll -milling grade ore and low -grade ore, are measured at cost while stockpiled. Once processing activities commence, the related ore is transferred to work -in-process inventory and processing costs are accumulated in inventory un til production of saleable metal is complete. Gold doré inventory represents gold doré bars produced and held for sale at the reporting date. The cost of gold doré include s all costs incurred in mining, processing and refining the ore to the point where the doré bars are in a saleable condition, inclu ding directly attributable production overheads. Net realisable value is determined with reference to prevailing gold prices, estimated refining costs, transportation costs a nd selling expenses at the reporting date. Inventories are reviewed at each reporting date to ensure recoverability and are written down to net realisable value where n ecessary. Note 15. Mining development assets Consolidated 30 Jun 2026 31 Dec 2025 $ $ Non-current assets Mining - Hualilán Tolling Phase - at cost 32,262,543 16,062,295
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 15. Mining development assets (continued) 34 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial half -year are set out below: Consolidated $ Balance at 1 January 2025 - Transferred from exploration and evaluation assets 6,146,532 Expenditure during the year 7,046,746 Rehabilitation provision 2,869,017 Balance at 31 Dec 2025 16,062,295 Expenditure during the year 16,200,248 Balance at 30 June 2026 32,262,543 Accounting policy for mining assets Mining property and development assets include costs transferred from exploration and evaluation assets once technical feasib ility and commercial viability of an area of interest are demonstrable. After transfer, all subsequent mining development expenditu re is similarly capitalised. Capitalised development expenditure includes costs directly attributable to the construction of a mine or area of interest and associated infrastructure, and stripping costs. Expenditure accumulated in respect of each area of i nterest is tested for impairment when impairment indicators are identified (no impairment indicator was identified at 30 June 2026). Mining properties and development are stated at cost less accumulated amortisation and accumulated impairment losses. Depreciation is calculated using the units -of-production method based on the proportion of run -of-mine (ROM) tonnes mined to the estimated recoverable reserves related to each area of interest. Estimates of recoverable reserves and resources are reviewed on an ann ual basis. Stripping is the process of removing overburden and waste materials from surface mining operations to access the mineral reso urce. Stripping costs incurred during the production phase are generally considered to create two benefits, being either the produc tion of inventory or improved access to the ore to be mined in the future. Where the benefits are realised in the form of inventory p roduced in the period, the production stripping costs are accounted for as part of the cost of producing those inventories. Where the benefits are realised in the form of improved access to ore to be mined in the future, the costs are recognised as a non-current asset, if the following criteria are met: (i) Future economic benefits (being improved access to the ore body) are probable, (ii) The component of the ore body for which access will be improved can be accurately identified; and (iii) The costs associated with the improved access can be reliably measured. If any of the criteria are not met, the production stripping costs are allocated to the cost of ore inventory produced. The stripping activity asset is initially measured at cost, which is the accumulation of costs directly incurred to perform the strippin g activity that improves access to the identified component of ore, plus an allocation of directly attributable overhead costs. If incidental operations are occurring at the same time as the production stripping activity but are not necessary for the produ ction stripping activity to continue as planned, these costs are not included in the cost of the stripping activity asset. Stripping costs are capitalised during the development of a mine and are subsequently amortised over the life of mine on a un its of production basis. Provision for restoration and rehabilitation obligations is recognised as part of the cost of development activities that giv e rise to the obligation. Note 16. Related party transactions During the period, the total aggregate related party transactions for directors’ fees, consulting services and reimbursements as provided by key management personnel and their related parties for the half-year ended 30 June 2026 totalled $915,460 (30 June 2025: $543,540). The outstanding balance relating to the above transactions at 30 June 2026 was $317,989 (30 Jun 2025: $107,142).
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 35 Note 17. Fair value measurement Fair value hierarchy The fair value of a financial asset or a financial liability is 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. The fair values of cash and cash equivalents, trade and other receivables, borrowings and trade and other payables approximat e their carrying values, as a result of their short maturity. The valuation techniques used have not changed for each of these financial instruments from the prior period. Note 18. Dividends There were no dividends paid, recommended or declared during the current or previous financial half -year. Note 19. Events after the reporting period The Company completed a 20-for-1 consolidation of its issued shares following shareholder approval on 27 July 2026. The completion of Tranche 2 of the $85 million capital raising which was announced on 18 May, issuing 25.75 million shares at $2.40 per share and 12.9 million free-attaching options, raising $61.8 million. Tranche 2 comprised of: - $46.5m placement to Institutional, sophisticated and professional investors; - $8m placement to Mr Peter Marrone; - $2m placement to other lead investors; - $5.3m placement to affiliates of Eduardo Elsztain On 6 August 2026, the Company completed the issue of: - 10 million shares issued to Mr Marrone and other lead investors as consideration for the acquisition of 100% of the issued ca pital in Blue Spruce Holdings (Australia) Pty Ltd pursuant to the share purchase agreement ( SPA) - an aggregate of 2.5 million concurrent SPA shares to Inversiones Financieras Del Sur and Dolphin Real Assets Fund SPC Ltd as outlined in the Notice of Meeting for the EGM. The Company announced the below Board and Management changes: - Peter Marrone was appointed Non-Executive Chairman effective 6 August 2026, - Eduardo Elsztain transitioned to Non-Executive Director effective 6 August 2026, - Kris Knauer resigned as Managing Director and Chief Executive Officer effective 31 July 2026, - Yohann Bouchard appointed Chief Operating Officer and Interim Chief Executive Officer effective 6 august 2026, - Felipe Riquelme appointed Chief Financial Officer effective 10 August 2026, - Luke Buchanan appointed Vice President, Project and Strategic Planning effective 10 August 2026. The Company announced a disciplined transition from the current third -party toll treatment model towards a structure that better supports the long -term development of Hualilán and that Challenger is also assessing the replacement of the existing toll treat ment structure with an ore purchase arrangement with Casposo. No other matter or circumstance, other than the matters disclosed above, 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. On 10 September 2026, the Company issued 833,333 shares at $2.40 per share and 416,667 free-attaching options, on the same terms as the placement announced on 18 May 2026, raising $2 million.
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 20. Share-based payments (continued) 36 Note 20. Share-based payments During the half-year, share-based payments consisted of the following: Consolidated 30 Jun 2026 30 Jun 2025 $ $ Performance rights (5,413) 431,117 Options Set out below are summaries of options granted by the Company: 30 Jun 2026 Balance at Expired/ Balance at Exercise the start of forfeited/ the end of Grant date Expiry date price the half-year Granted Exercised other the half-year 07/01/2025 07/01/2027 $0.050 147,726,678 - - - 147,726,678 16/01/2025 07/01/2027 $0.050 3,333,333 - (3,333,333) - - 20/02/2025 30/06/2027 $0.100 3,000,000 - (1,000,000) - 2,000,000 11/06/2025 26/08/2028 $0.120 15,000,000 - - - 15,000,000 26/08/2025 27/08/2028 $0.120 234,862,672 - - - 234,862,672 03/11/2025 02/11/2028 $0.195 20,000,000 - - - 20,000,000 25/05/2026 30/06/2029 $0.156 - 96,378,001 - - 96,378,001 423,922,683 96,378,001 (4,333,333) - 515,967,351 On 12 January 2026, 3,333,333 options issued to brokers were exercised. On 12 January 2026, 500,000 options issued in lieu of cash for advisory services were exercised. On 20 January 2026, 500,000 options issued in lieu of cash for advisory services were exercised. On 25 May 2026, as detailed in note 11, the company issued 96,378,001 options as free attaching options to the May placement. Performance Rights Set out below are summaries of performance rights granted by the Company: Balance at Balance at Grant date Expiry date 31 December 2025 Granted Exercised Lapsed 30 June 2026 Vested 16 March 2020 4 July 2026 755,845 - (755,845) - - 755,845 September 2021 4 July 2026 5,818,583 - (4,057,674) (480,909) 1,280,000 5,818,583 4 May 2023 4 July 2030 16,500,000 - - - 16,500,000 2,000,000 21 Jun 2023 8 February 2026 1,000,000 - - (1,000,000) - - 4 June 2024 4 June 2031 999,999 - - - 999,999 - 4 June 2024 4 June 2031 1,000,000 - (1,000,000) - - - 30 June 2025 30 June 2032 - 4,415,904 (2,536,687) - 1,879,217 1,879,217 30 November 2025 30 November 2032 - 1,264,273 (199,238) - 1,065,035 1,065,035 11 June 2025 11 June 2032 - 300,000 - - 300,000 300,000 30 November 2023 30 November 2030 - 5,000,000 (5,000,000) - - - 26,074,427 10,980,177 (13,549,444) (1,480,909) 22,024,251 11,818,680
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Challenger Gold Limited Notes to the consolidated financial statements For the half-year ended 30 June 2026 Note 20. Share-based payments (continued) 37 On 25 March 2026, the Company issued 10,980,177 incentive performance rights to employees. The terms of these performance rig hts were agreed between the employees and the Company prior to 31 December 2025 and the amortisation of the Performance Rights of $759,406 was taken up as at 31 December 2025. On 25 March 2026, 1,480,909 performance rights lapsed as the conditions had not been met. On 25 March 2026, post vesting conditions being met, 13,549,444 incentive performance rights were exercised and ordinary shar es issued. Note 21. Contingent liabilities The Directors are of the opinion that there are no contingent liabilities or contingent assets as at 30 June 2026.
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Challenger Gold Limited Directors' declaration For the half-year ended 30 June 2026 38 In the Directors' opinion: ● the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements; ● the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2026 an d of its performance for the financial half-year ended on that date; and ● subject to the achievement of the matters disclosed in note 2, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of Directors made pursuant to section 303(5)(a) of the Corporations Act 2001. On behalf of the Directors ___________________________ Peter Marrone Non-Executive Chairman 11 September 2026 Toronto, Canada
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 9 The Esplanade Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Independent auditor’s review report to the members of Challenger Gold Limited Conclusion We have reviewed the accompanying half-year financial report of Challenger Gold Limited (the Company) and its subsidiaries (collectively 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, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, explanatory notes and the directors’ declaration. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the Group does not comply with the Corporations Act 2001, including: a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2026 and of its consolidated financial performance for the half-year ended on that date; and b. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Basis for conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor’s responsibilities for the review of the half-year 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 reviews of the half-year financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. Material uncertainty related to going concern We draw attention to Note 2 in the half-year financial report, which describes the principal conditions that raise doubt about the Group’s ability to continue as a going concern. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter. Directors’ responsibilities for the half-year financial report The directors of the Company are responsible for the preparation of the half -year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. 39
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Auditor’s responsibilities for the review of the half-year financial report Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 30 June 2026 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Ernst & Young T S Hammond Partner Perth 11 September 2026 40