Earnings release
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info@ foresta group .com.au 1 f oresta group.com.au ASX RELEASE 26 October 2026 Quarterly Activities Report and Appendix 4C For Quarter Ending 30 September 2026 Highlights • FORESTA Secures Key Japanese Patent Acceptance • FORESTA partners with Bioeconomy Science Institute supported by Bioresource Processing Alliance FORESTA Secures Japanese Patent Acceptance for Pine Chemical Extraction Process FORESTA advised that Japanese Patent Application No. 2022-577621, covering its proprietary rosin and terpene extraction technology, has been accepted in Japan. The patent protects key elements of the Company’s pine chemical production process, including ex traction methods employing a rotary extractor under specified operating conditions. FORESTA is also progressing a divisional Japanese patent application covering the counter-current treatment of wood with a terpene-based extraction agent. Similar claim scope is being pursued in Europe and China. The Japanese patent acceptance strengthens FORESTA’s intellectual property position and supports the Company’s broader commercialisation strategy for its proprietary pine chemical technology. FORESTA now has two patent families covering innovative pine woo d processing methods, including a second patent family relating to the production of torrefied wood pellets and briquettes. FORESTA enters Collaboration Agreement with Bioeconomy Science Institute for Pine Chemicals Project supported by Bioresource Processing Alliance FORESTA entered into a collaboration agreement with the New Zealand Institute for Bioeconomy Science Limited, operating as Bioeconomy Science Institute (BSI), to quantify and characterise rosin and turpentine extractives in radiata pine stems, stumps, and branches across different growing regions. The Bioresource Processing Alliance (BPA) supports the NZ$ 150,050 project through funding from New Zealand’s Ministry of Business, Innovation and Employment. BPA will contribute NZ$54,150, with Foresta contributing NZ$54,150 in cash and approximately NZ$41,750 of in-kind support. The research will provide quantitative data on the concentration, composition, and variability of pine chemical extractives, supporting Foresta’s assessment of radiata pine feedstock for its pine chemicals project. Project Development Kawerau Plant Executive Summary During the quarter ended 30 September 2026, Foresta continued to advance the development of the Kawerau Stage 1 Project through completion of key Front -End Loading (FEL 1) activities, technical assessments and commercial investigations. Development efforts remained focused on improving project definition, evaluating development pathways and strengthening the investment case prior to progression into FEL 2.
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info@ foresta group .com.au 2 f oresta group.com.au A significant focus during the quarter was refinement of the project scope and development strategy. These assessments were supported by updated programme modelling, CAPEX evaluations and further advancement of operating cost modelling and financial analysis to improve the robustness of future investment decisions. The quarter also saw advancement of project governance, approvals and development readiness activities. An Overseas Investment Office variation extending key project timeframes was progressed and project procurement planning continued through development of a staged procurement strategy aligned with the FEL framework. The Company maintained active engagement with local government, industry participants, utilities providers, iwi stakeholders and potential commercial partners as development of the Kawerau Pro ject continued. Design & Delivery Strategy During the quarter, Foresta progressed the design, cost development and delivery planning required to strengthen the Kawerau Project’s definition and readiness for the next development stage. • Com p le t e d FEL 1 conce p t d e sig n a ct ivit ie s a nd fina lise d Cla ss 5 CAPEX e st im a t e s, while cont inuing O PEX development and financial modelling. • Devel oped a revi sed procurement strategy based on staged procurement, equi pment sup p lie r engagement and earl y contractor i nvol vement to i mprove cost certai nty and del i very outcomes. • Continued to apply the FEL stage - gate framework to progressi vel y strengthen cost certai nty, techni cal definition and execution planning before advancing to subsequent design phases. Power , Hea t and I nfrastructure Devel opment Process heat and energy i nfrastructure remai ned key devel opment pri ori ti es. The Compa ny advanced discussions with potential long - term geotherma l hea t suppliers a nd a re a ctively eva lua ting a lterna tive supply solutions. Concurrently, work continued on long - term power suppl y arrangements, i ncl udi ng assessment of connecti on op p or t unit ie s f or b ot h m a in a nd b a ck up p o we r solut ions, r e q uir e m e nt s, com m e r cia l a nd t e chnica l d iscussions wit h regi onal energy stakehol ders. Consents Foresta continued constructi ve engagement wi th the Overseas I nvestment Offi ce , which approved and processed a vari ati on extendi ng key consent and devel opment deadl i nes and reducing near - term approval ri sk. Forest Suppl y and Col l aborati ve Partnershi ps Foresta conti nues to progress the key commerci al and operati onal workstreams requi red to establ i sh a secure, su stai nabl e and scal abl e su ppl y pl atform for the K awerau S tage 1 Proj ect. E ngagement across N ew Z eal and’ s forestry sector remai ns acti ve, wi th ongo i ng work focused on maturi ng pri ori ty suppl y opportuni ti es and supporti ng the Company’ s broader l ong- term feedstock strategy. The Company also continues to strengthen its engagement with local Māori iwi, landowners and regional stakehol ders. These di scussi ons remai n centred on bui l di ng durabl e, mutual l y benefi ci al partnershi ps that support regi onal economi c devel opment, responsi b l e resource stewardshi p and l ong - t e r m a lig nm e nt wit h loca l com m unit ie s. Constructive engagement with government agencies, local and regional councils and other public - sector bodi es also remains ongoing. This work supports continued alignment with relevant policy settings, infrastructure
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info@ foresta group .com.au 3 f oresta group.com.au considerations and regional development priorities, while reinforcing Foresta’s commitment to responsible project delivery in New Zealand. Financials Foresta Group Holdings Limited had a cash balance of $2,472,267 as at 30 September 2026. In accordance with ASX Listing Rule 4.7C.3, payments totalling $271,234 were made to related parties and their associates during the quarter. This aggregate amount is comprised entirely of gross remuneration paid on a cash basis during the period, consisting of $147,840 for Executive Director fees, $99,000 for Executive consulting fees and $24,394 for Non -Executive Director fees. All payments were made on normal commercial terms and were in line with existing service agreements. For more information please contact: Foresta Group Holdings Limited Henry Cheng Executive Chairman Email: info@forestagroup.com.au Authorisation Statement This release has been authorised to be given to the ASX by the Board of Foresta Group Holdings Limited. About Foresta Group Holdings FORESTA is positioning itself to become a leading global supplier of natural and renewable pine chemicals and biomass pellets. It has developed a proprietary process to naturally extract pine chemicals by employing the tree’s own solvent chemicals to extract rosi n and terpenes. These products are commonly used in industrial manufacturing and are a key input to everyday end products. These products include adhesives, gum, inks, paint, car tyres and perfume.
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info@ foresta group .com.au 4 f oresta group.com.au Appendix 4C: Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity FORESTA GROUP HOLDINGS LIMITED ABN Quarter ended (“current quarter”) 18 074 969 056 30 September 2026 Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 1. Cash flows from operating activities - - 1.1 Receipts from customers 1.2 Payments for (65) (65) (a) research and development (b) product manufacturing and operating costs - - (c) advertising and marketing - - (d) leased assets (3) (3) (e) staff costs (421) (421) (f) administration and corporate costs (438) (438) 1.3 Dividends received (see note 3) - - 1.4 Interest received 28 28 1.5 Interest and other costs of finance paid (110) (110) 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (GST Refund) 63 63 1.8 Other (Sub-lease rent receipts) 13 13 1.9 Net cash from / (used in) operating activities (933) (933) 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) businesses - - (c) property, plant and equipment - -
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info@ foresta group .com.au 5 f oresta group.com.au Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 (d) investments - - (e) intellectual property - - (f) other non-current assets - - 2.2 Proceeds from disposal of: - - (a) entities (b) businesses - - (c) property, plant and equipment 15 15 (d) investments - - (e) intellectual property - - (f) other non-current assets (refund rental bond) 11 11 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other - - 2.6 Net cash from / (used in) investing activities 26 26 3. Cash flows from financing activities - - 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - - 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings (1) (1) 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (principal portion of finance leases) (42) (42) 3.10 Net cash from / (used in) financing activities (43) (43)
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info@ foresta group .com.au 6 f oresta group.com.au Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 4. Net increase / (decrease) in cash and cash equivalents for the period 3,426 3,426 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) (933) (933) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 26 26 4.4 Net cash from / (used in) financing activities (item 3.10 above) (43) (43) 4.5 Effect of movement in exchange rates on cash held (4) (4) 4.6 Cash and cash equivalents at end of period 2,472 2,472 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 216 3,426 5.2 Call deposits 2,257 - 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 2,472 3,426 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 271 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.
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info@ foresta group .com.au 7 f oresta group.com.au 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (convertible notes) 2,000 2,000 7.4 Total financing facilities 2,000 2,000 7.5 Unused financing facilities available at quarter end 0 7.6 7.3 The Company has entered into the following convertible note. Convertible Note Principal amount $2,000,000 Issue date 31 March 2025 Monthly repayments Nil Interest 10% per annum capitalised annually and payable on conversion or redemption Maturity Date 31 March 2028 Security None Conversion The convertible notes can be converted at the sole discretion of the subscriber. The conversion price is $0.005 per share and the subscriber will receive one free attaching unlisted option exercisable at $0.01 on the date that is three years from the date of issue. Balance at 30 September 2026 $2,000,000
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info@ foresta group .com.au 8 f oresta group.com.au 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (933) 8.2 Cash and cash equivalents at quarter end (item 4.6) 2,472 8.3 Unused finance facilities available at quarter end (item 7.5) - 8.4 Total available funding (item 8.2 + item 8.3) 2,472 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 2.65 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: 8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.
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info@ foresta group .com.au 9 f oresta group.com.au Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 26 October 2026........................................................ Authorised by: By the Board.............................................................. (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter , how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.