Annual report
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Polymetals Resources Ltd ABN 73 644 736 247 Annual Report - 30 June 2026 Polymetals Resources Limited ACN 644 736 247 ASX: POL Annual Report For the financial year ended 30 June 2026. From restart to revenue FY2026
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Polymetals Resources Ltd Corporate directory 30 June 2026 1 From restart to revenue Polymetals transformed from mine developer to producer in FY2026 as its Endeavor Mine in Cobar, New South Wales progressed from restart, through commissioning and ramp-up, to concentrate production, first shipments and revenue, establishing the operational platform for increased production, mine-life growth and enduring shareholder value. 1
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Polymetals Resources Ltd Corporate directory 30 June 2026 2 Contents 2 Corporate Directory Directors David Sproule - Executive Chairman Jess Oram - Executive Director Alistair Barton - Non-Executive Director Company Secretary John Haley Registered Office Solution Accountants 627 Stafford Road Stafford Qld 4053 Principal Business Office Endeavour Mine Louth Road Cobar NSW 2835 Bankers Commonwealth Bank of Australia 86 Woodlark Street Lismore NSW 2480 Lawyers K&L Gates LLP Level 31, 1 O'Connell St Sydney NSW 2000 Share Registry MUFG Corporate Markets (AU) Limited Liberty Place, Level 41, 161 Castlereagh St Sydney NSW 2000 Auditor RSM Australia Partners Level 27, 120 Collins Street Melbourne VIC 3000 Securities Exchange Listing ASX Limited (Australian Securities Exchange) ASX Code: POL Website www.polymetals.com Corporate Governance Statement www.polymetals.com/company/corporate-governance Corporate Directory 2 Chairman’s Letter 4 Review of Operations 5 Mineral Resources & Ore Reserves 15 Important Information 16 Tenement Position 18 Directors’ Report 19 Renumeration Report 25 Auditor’s Dependence Declaration 34 Consolidated statement of profit or loss and other comprehensive income 35 Consolidated statement of financial position 36 Consolidated statement of changes in equity 37 Consolidated statement of cash flows 38 Notes to the consolidated financial statements 39 Consolidated Entity Disclosure Statement 73 Directors’ Declaration 74 Independent Auditor’s Report 75 Shareholder Information 80
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Polymetals Resources Ltd Corporate directory 30 June 2026 3 Production snapshot Silver produced* 1.08Moz Gold produced* 1,554oz Zinc produced* 10,272t Lead produced* 5,165t Processed ore grade 122.5g/t Recovery 79% Processed ore grade 0.14g/t Recovery 100% Processed ore grade 3.6% Recovery 80% Processed ore grade 1.8% Recovery 79% *Production figures include both concentrate and direct shipping ore (DSO). There is no payable gold in concentrates, but DSO assumes 100% silver and gold recovery. 3
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Polymetals Resources Ltd Corporate directory 30 June 2026 4 Chairman’s Letter Dear Shareholder, The year ended 30 June 2026 was a transformative period for Polymetals. What began as an ambitious plan to return one of Australia’s significant silver - zinc-lead mines to production became an operating reality, with mining restarted, the processing plant recommissioned, saleable concentrates produced and first shipments completed. For shareholders, this was much more than a series of operational milestones. It represented the transition of Polymetals from developer to producer and demonstrated our ability to take an overlooked asset, identify where value could be unlocked and convert that opportunity into cash-generating production. That is central to what we call the Polymetals Way. We are hands-on people. We take ownership, solve problems and look for value others may not see. We work safely, speak plainly, spend carefully and back ourselves to find a better way. Our mindset is to find the unlock. The Endeavor Mine has a long operating history, having produced approximately 32 million tonnes of ore between 1983 and 2020, including some 92 million ounces of silver, 2.6 million tonnes of zinc and 1.6 million tonnes of lead. Yet when Polymetals assessed the opportunity, we believed the asset still had considerably more to give. Our task was not simply to restart a mine. It was to restart it intelligently. During FY2026, our people worked methodically through the challenges inherent in bringing a large underground operation and processing facility back into production. Mining activity recommenced, first ore was processed through the mill in June 2025, saleable silver-lead and zinc concentrates were produced and the first concentrate cargoes were subsequently shipped. Those achievements established Endeavor once again as a producing mine and created the foundation from which we can now focus on increasing production, improving operational performance and generating stronger cash flow. The year was also marked by tragedy. The underground accident on 28 October 2025 claimed the lives of our colleagues Patrick ‘Ambrose’ McMullen and Holly Clark. Their loss had a profound impact on their families, our workforce and the wider Cobar community. We remember them, and remain determined that safety, accountability and care for one another are reflected in how we work every day. As operations stabilised, our attention increasingly turned to finding the next unlocks within Endeavor. A major focus is the Deep Zinc Lode, where development commenced during the period as part of our strategy to materially increase ore supply and ultimately utilise Endeavor’s installed processing capacity more fully. Our objective is straightforward: progressively build ore production so that the mill can move toward its nameplate treatment capacity of approximately 100,000 tonnes per month. David Sproule Executive Chairman “During FY2026, our people worked methodically through the challenges inherent in bringing a large underground operation and processing facility back into production.”
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Polymetals Resources Ltd Corporate directory 30 June 2026 5 At the same time, the Upper North Lode is demonstrating the importance of silver within the Endeavor orebody. Production reconciliation has highlighted strong silver grades and the presence of native silver, reinforcing our view that Endeavor’s precious-metal contribution can be an important source of value alongside its zinc and lead production. Beyond the existing mine plan, exploration provides another significant avenue for growth. Our geological team is pursuing opportunities within the mine, immediately around existing infrastructure and across the broader northern Cobar Basin tenure. Near-mine targets, together with regional gold, copper, zinc and lead prospects, provide the potential to discover additional ore sources capable of extending mine life, increasing production or ultimately feeding the Endeavor processing plant. That potential was reinforced after year-end. On 7 September 2026, Polymetals announced an updated Endeavor Mineral Resource of 20.7Mt at 7.5% zinc, 4.2% lead and 82g/t silver. Importantly, reinterpretation and drilling of the Upper Main Lode added 1.3Mt of sulphide mineralisation previously consider ed inaccessible and located adjacent to existing underground development. The result validates our willingness to challenge historical assumptions and is another example of finding value where others may not see it. We also recognise that achieving our ambitions depends on much more than geology and engineering. The successful restart of Endeavor has required the commitment of our employees, contractors, suppliers, financiers, shareholders and the Cobar community. Bringing a mine back to life is demanding work. That is where the Polymetals Way matters most. FY2026 proved our approach can deliver. The year ahead is about building on it. With Endeavor operating again, our attention is firmly on lifting production, advancing the Deep Zinc Lode, optimising the value of our higher-grade ore sources from both the Upper Main Lode and the Upper North Lode and pursuing the exploration opportunities capable of extending Endeavor well beyond its initial mine plan. We entered FY2026 with a restarted mine. We leave it with a producing business, established revenue and a considerably clearer pathway to growth. On behalf of the Board, I thank our shareholders for their continued support and our people for the determination and ingenuity they have shown throughout an extraordinary year. The restart is behind us. The opportunity now is to realise the full value of what we have built. Best regards, David Sproule Executive Chairman
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Polymetals Resources Ltd Corporate directory 30 June 2026 6 Review of Operations
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Polymetals Resources Ltd Review of Operations 30 June 2026 7 Endeavor Silver Zinc Mine Cobar, NSW Ownership 100% From Restart to Revenue The 2026 financial year marked the transformation of Polymetals Resources from a mine restarter into an established Australian silver-zinc-lead producer. At the beginning of the financial year, the Company had only recently returned the Endeavor Mine near Cobar, New South Wales to production following an intensive refurbishment and recommissioning program. Ore treatment commenced in June 2025 and the first saleable silver-lead and zinc concentrates were produced. Twelve months later, Endeavor was generating substantial revenue and positive operating cash flow, mining high-value ore from the Upper North Lode (UNL), advancing development towards the large Deep Zinc Lode (DZL) and drilling the Upper Main Lode which has the potential to materially increase the mine's future inventory. The progression from restart to revenue therefore represents much more than the achievement of commercial production. It captures the broader evolution of Endeavor during FY2026: from recommissioning to operational ramp-up; from first concentrate production to established sales channels; and from executing the restart mine plan to identifying opportunities that have the potential to make Endeavor a larger, longer -life and an increasingly valuable operation. Figure 1. Endeavor combines a substantial underground mining system with existing shaft and decline access, an installed 1.2Mtpa processing plant, grid power, water, rail infrastructure and other established mining assets.
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Polymetals Resources Ltd Review of Operations 30 June 2026 8 Figure 2. Silver-lead and zinc concentrates were transported from site via road and rail to Berth 29 at the Port of Adelaide, establishing the logistics chain required to take Endeavor's production to international customers. Endeavor establishes itself as a producing mine FY2026 began with Endeavor in the early stages of production ramp-up following the successful recommissioning of the underground mine, shaft and processing plant. During the September 2025 quarter, mining, processing and concentrate production continued to build momentum. Silver-lead and zinc concentrates were transported from site via road and rail to Berth 29 at the Port of Adelaide, establishing the logistics chain required to take Endeavor's production to international customers. Importantly, during the quarter, Endeavor generated sufficient revenue to cover operating costs, representing an early demonstration of the commercial potential of the restarted operation. The first shipment of Endeavor zinc concentrate was completed in October 2025, followed by silver -lead concentrate, marking another important step in Polymetals' transition from mine developer to revenue- generating producer. The achievement reflected the considerable work undertaken across the operation during the restart. Endeavor combines a substantial underground mining system with existing shaft and decline access, an installed 1.2Mtpa processing plant, grid power, water, rail infrastructure and other established mining assets. The ability to return this infrastructure to productive use has been central to Polymetals' strategy of extracting value from an ass et that already possessed much of the capital infrastructure required for a long-life mining operation.
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Polymetals Resources Ltd Review of Operations 30 June 2026 9 Responding to an exceptionally difficult period The December quarter was overshadowed by the tragic underground accident on 28 October 2025 that resulted in the deaths of Polymetals employees Patrick ‘Ambrose’ McMullen and Holly Clark. The loss had a profound impact on their families, colleagues, the Company and the wider Cobar community. Operations were suspended following the incident and a rigorous review of explosives handling and use procedures was completed before mining and milling recommenced. Ore hoisting and continuous milling resumed on 15 November, with mining teams subsequently returning to continuous shift operations. The response of the Endeavor workforce and Cobar community throughout this period demonstrated the strength of the relationships surrounding the operation. Safety remained the Company's overriding priority as production was progressively rebuilt. Building operational and financial momentum The June quarter provided the clearest evidence during FY2026 that Endeavor’s restart was translating into a sustainable, cash-generating operation. Mining production increased 48% quarter-on-quarter, with the operation producing 396,485oz of silver, 490oz of gold, 3,268t of zinc and 2,061t of lead. Revenue increased 65% to $45.8 million, while Endeavor generated $10.4 million in operating cash flow. The result marked an important inflection point for Polymetals. Much of the year had necessarily focused on recommissioning infrastructure, rebuilding the workforce, establishing reliable mining and processing performance, and putting in place the logistics and commercial arrangements required to take Endeavor’s concentrates to market. By year-end, that emphasis was shifting decisively toward optimisation and growth - increasing underground production, improving plant utilisation, accessing higher-value ore sources, controlling costs and progressively strengthening the financial capacity of the business. During the year, the consolidated entity completed six product shipments comprising three zinc concentrate shipments (18,612 dry tonnes), one lead shipment (4,516 dry tonnes) and two DSO shipments (11,055 dry tonnes). Monthly product transport to port continues to ramp up towards a steady-state rate of about 10,000 tonnes per month. Polymetals supported its transition to production and shipping through disciplined capital management. During FY2026, the Company strengthened its funding position through equity and working- capital initiatives, ensuring sufficient liquidity to progress the production ramp-up, maintain underground development and preserve financial flexibility during Endeavor’s early operating phase. A key milestone was the completion of a $34.4 million institutional placement, which reinforced the balance sheet and provided additional capacity as operations normalised following the October 2025 interruption. As production increased, however, Endeavor increasingly began generating the capital required to support its own development. At 30 June 2026, cash stood at $29.1 million, up 26% during the June quarter, while debt had reduced 29% to $10.7 million. This strengthening financial position reflected the broader transformation at the heart of FY2026. Capital deployed to bring Endeavor back into production was increasingly being complemented by revenue and operating cash flow generated from the mine itself. With established concentrate sales, growing production, improving cash generation and a stronger balance sheet, Polymetals entered FY2027 with greater financial flexibility to advance the Deep Zinc Lode, increase mill utilisation, pursue exploration opportunities and continue investing in the long- term value of Endeavor.
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Polymetals Resources Ltd Review of Operations 30 June 2026 10 Finding the unlock in the Upper North Lode As operations stabilised, attention increasingly turned to enhancing the value of the existing mine plan. One of the most significant developments during FY2026 was the emergence of the Upper North Lode as an important high-value silver-rich ore source. Development of the UNL was completed in February 2026 and stoping commenced shortly afterwards. Early production reconciliation showed silver grades materially exceeding the modelled Reserve grade, with mineralogical work identifying the presence of native silver within the ore. This prompted the Company to reconsider how the ore could best be monetised. Rather than automatically processing all UNL ore through the Endeavor concentrator, Polymetals identified an opportunity to sell portions of the exceptionally valuable material directly to smelters as direct shipping ore (DSO). This provided the potential to improve returns from the ore, including capturing payable gold that would otherwise not ordinarily be recovered through conventional concentrate production. An initial DSO parcel was subsequently prepared, creating a second revenue pathway alongside the established sale of zinc and silver-lead concentrates. By the March quarter, 18,384 dry metric tonnes of high-grade UNL ore had been mined. Across the operation, the quarter delivered production of 547,302 ounces of silver, 1,064oz of gold, 1,917t of zinc and 1,148t of lead. At quarter end, Polymetals held $22.9 million in cash and approximately $37.9 million in unsold net metal inventory. The UNL opportunity embodies the operating philosophy behind the Polymetals Way - remaining hands-on, questioning assumptions and continually looking for a better way to extract value from the assets already available to the Company. Approximately 400,000t of high-grade UNL ore is planned to be mined over the near term, with the lode providing an important source of silver-rich production as Endeavor continues to ramp up. Upper Main Lode adds high grade resource close to mining infrastructure Particularly encouraging results emerged from drilling of the Upper Main Lode late in FY2026 and continued into the new financial year. The program tested Polymetals’ reinterpretation of the historic 1996 subsidence event and indicated that considerably more mineralisation remained adjacent to existing underground development than previously assumed. The drilling program advanced the geological interpretation from concept through successful testing to a revised Mineral Resource suitable for detailed mine planning. While the principal Upper Main Lode drilling program is now complete, a further eight holes are testing the overlying supergene zone as the Company continues to assess opportunities for additional resource growth. Successive drilling results announced on 24 June, 22 July and 12 August 2026 demonstrated broad and consistent high-grade silver-lead-zinc mineralisation outside the historic subsidence zone and confirmed that its affected footprint was materially smaller than previously interpreted. This work culminated in an updated Mineral Resource Estimate announced on 7 September 2026. The Upper Main Lode now contains 1.6Mt at 8.5% Zn, 6.0% Pb and 234g/t Ag, establishing a significant high- grade resource close to existing mine infrastructure and providing a strong foundation for detailed mine planning and future production opportunities. Deep Zinc Lode - building towards maximum mill capacity The next major component of the Endeavor production strategy is the Deep Zinc Lode, located at depth beneath the existing mine workings.
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Polymetals Resources Ltd Review of Operations 30 June 2026 11 Development towards the DZL commenced during the first half of CY2026, alongside resource- expansion drilling. The objective is to establish the ore volumes required to progressively increase utilisation of Endeavor's processing infrastructure and ultimately fill the mill toward its nameplate treatment capacity of approximately 100,000t per month during H1 CY2027. This strategy is significant because Endeavor already possesses the processing infrastructure required to handle considerably greater volumes than those being treated during the initial ramp- up. Increasing underground ore production to better utilise that installed capacity therefore provides Polymetals with an opportunity to generate operating leverage from infrastructure already in place. As additional ore sources are brought into the production schedule, higher throughput has the potential to improve fixed-cost absorption, support stronger unit economics and enhance the overall cash-generating capacity of the operation. The DZL is therefore important not only as a source of future production, but as a key part of the broader plan to transform Endeavor into a more efficient and consistently utilised mining operation. Its development also provides greater flexibility in mine scheduling by broadening the available ore inventory and reducing reliance on individual mining areas. Importantly, the DZL also remains open along strike and down dip, providing additional resource- growth potential alongside its role within the current mine plan. Continued drilling has the potential to extend the mineralised footprint further and strengthen the longer-term case for Endeavor as a substantial, multi-year silver-zinc-lead operation. Figure 3. Polymetals’ objective is to establish the ore volumes required to progressively increase utilisation of Endeavor's processing infrastructure and ultimately “fill the mill”.
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Polymetals Resources Ltd Review of Operations 30 June 2026 12 Figure 4. Endeavor Mine Long Section – Life of Mine stopes and Upper Main Lode target area.
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Polymetals Resources Ltd Review of Operations 30 June 2026 13 Figure 5. Near-mine drilling around the existing workings was complemented by regional programs across the Company's extensive 1,342km² landholding in the northern Cobar Basin. Exploration begins to reshape the opportunity While production ramp-up dominated much of FY2026, exploration increasingly emerged as another important driver of future value. Polymetals continued both underground and regional exploration throughout the year. Near -mine drilling around the existing workings was complemented by regional programs across the Company's extensive 1,342km² landholding in the northern Cobar Basin. Particularly encouraging results which emerged from drilling in the upper Main Lode area late in the financial year and into August resulted in a resource upgrade in September. Meanwhile, surface drilling continued to evaluate targets generated from the integration of passive seismic interpretation, gravity modelling and geological mapping. Diamond drilling of the PSX001 target was completed during the year. It intersected extensive quartz veining, brecciation and pervasive chlorite-sericite alteration within silicified, fossiliferous sedimentary rocks together with trace chalcopyrite, sphalerite and galena. These observations support continued testing of this newly defined structural corridor which lies about 2km east of the mine. Follow-up drilling began at PSX002, testing the interpreted strike extension of mineralisation intersected in PSX001. Early geological observations show widespread, steeply dipping quartz -carbonate vein arrays, stockwork development and brecciation consistent with an extensive hydrothermal system. A pre- collar (PSX003) has been completed to allow a third drill test of the strike extension of this target.
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Polymetals Resources Ltd Review of Operations 30 June 2026 14 At Tailings Dam South, the diamond tail to PTS004 was completed, adding geological information to refine the structural and alteration model for this emerging target. Drilling around the Northern Pods showed that portable XRF-derived alteration vectors can identify geochemical trends towards mineralisation. Interpretation of recently completed IP data continued at the Ferricartup, Furneys Tank and Kirri targets. New modelling identified several coincident chargeability and conductivity anomalies for follow-up. Geological mapping at Furneys Tank continued alongside interpretation of geophysical data. About 90 regional rock-chip samples have been submitted for laboratory analysis. Planning also progressed for future passive seismic surveying across the Kirri-Ferricartup corridor, to extend the Company's regional targeting program to identify new prospects. Subsequent events strengthen the growth case Results received after 30 June 2026 have provided further continuity to the exploration progress achieved during the financial year. In July, assays from a further nine Main Lode drill holes all intersected significant mineralisation, including broad high-grade intervals such as 96.6m at 604g/t silver equivalent. Further high-grade silver-zinc results were reported in August, continuing the positive drilling momentum established during FY2026. The results further supported the Company's reinterpretation of the upper Main Lode and increased confidence that the area could become a meaningful addition to Endeavor's future mining inventory. An updated Total Mineral Resource Estimate of 20.7 Mt at 7.5% Zn, 4.2% Pb and 82 g/t Ag was completed and reported on 7 September 2026 Another important milestone was achieved on 1 August 2024, when the consolidated entity completed the acquisition of Cobar Operations Pty Ltd and Endeavor Operations Pty Ltd (the owners of the Endeavor Mine and 1,343km 2 of exploration tenements in the Cobar Basin), which included the requirement to replace the existing Endeavor Mine Rehabilitation Bonds by 1 August 2026. During the year ended 30 June 2026, the NSW Resources Regulator increased the Endeavor Mine Rehabilitation Bonds by $2,947,000 to a total of $30,903,000. The increase is being settled under a payment plan agreed with the Regulator, in quarterly instalments to June 2028. Payments of $837,375 relating to the increase were made in the year, with a further seven quarterly payments of $301,375 to be made under the payment plan. Subsequent to the year end, the $27,956,000 Rehabilitation Bond previously held by the vendor was replaced (refer note 32). Together, these subsequent developments reinforce the broader trajectory established during FY2026: Polymetals is no longer solely focused on bringing Endeavor back into production. The Company's attention is increasingly directed toward expanding the value and longevity of the operation. Positioned for the next phase The transformation achieved during FY2026 provides a substantially different starting point for the year ahead. Endeavor entered the period as a newly restarted mine completing its transition from commissioning into production. It ended the year with established concentrate sales, an additional DSO revenue stream, positive quarterly operating cash flow, a strengthening balance sheet, increasing mining rates and an expanding pipeline of potential future ore sources. Polymetals' priorities are to maintain safe and reliable operations; continue increasing underground production; maximise the value of the silver-rich Upper North Lode; advance the Deep Zinc Lode and Upper Main Lode to progressively increase mill utilisation; control costs and capital expenditure; and convert the Company's exploration success into additional Resources, Reserves and ultimately mine life. The strategy remains grounded in the Polymetals Way: hands-on execution, careful stewardship of capital and a willingness to challenge conventional thinking to unlock the potential. The task now is to convert that operating platform into a larger, longer-life and increasingly cash-generative mining business.
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Polymetals Resources Ltd Review of Operations 30 June 2026 15 Mineral Resources & Ore Reserves In accordance with Listing Rule 5.21, Polymetals provides the following information concerning its Endeavor Mine Mineral Resources and Ore Reserves which have been prepared to JORC 2012 standards: Endeavor Mine Underground JORC (2012) Mineral Resource1 1 Refer ASX announcement “Endeavour Mine 2026 Mineral Resource” dated 7 September 2026. Endeavor Mine Mineral Resource at 5% Pb + Zn cut-off as of 31st July 2026 Sector 1 Tailings JORC (2012) Mineral Resource 2 2 Refer ASX announcement “Endeavor Silver Lead Zinc Mine Restart Study completed” dated 16th October 2023. Stage 1 Endeavor Mine Plan JORC (2012) Ore Reserve3 3 Refer ASX announcement “Significantly improved Endeavor Silver Lead Zinc Mine plan” dated 5th August 2024”. JORC Category Mt Zinc % Lead % Silver g/t Zinc Mt Lead Mt Silver Moz Measured 5.9 7.6 4.6 82 3.8 0.45 0.27 Indicated 11.1 7.5 4.3 86 3.7 0.83 0.48 Inferred 3.7 7.4 3.1 70 3.5 0.27 0.11 TOTAL 20.7 7.5 4. 2 82 3.7 1.55 0.86 JORC Category Mt Zinc % Lead % Silver g/t Indicated 3.6 2.14 1.56 80 Inferred 1.6 2.07 1.53 77 TOTAL 5.2 2.12 1.55 79 JORC Category Mt Zinc % Lead % Silver g/t Zinc Kt Lead Kt Silver Moz Proved (UG) 0.9 6.17 3.82 92 56 34 2.7 Probable (UG) 2.3 6.8 2.07 55 156 48 4.1 Probable (tailings) 3.4 2.14 1.56 80 73 53 8.7 TOTAL 6.6 4.32 4.5 73 285 135 15.5
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Polymetals Resources Ltd Review of Operations 30 June 2026 16 Important Notices References The information in this report references to previously released ASX Announcements. • 23 May 2023. ASX announcement “Endeavor Near Surface Resource 94% Measured & Indicated” • 16 October 2023. ASX announcement “Endeavor Silver Lead Zinc Mine Restart Study completed” • 5 August 2024 ASX announcement “Significantly improved Endeavor Silver Lead Zinc Mine plan” • 16 June 2025. ASX Announcement "Production underway at the Endeavor Silver Zinc Mine" • 24 June 2025. ASX Announcement "POL delivers silver and zinc concentrate at Endeavor Mine" • 7 July 2025. ASX Announcement "Debt Reduction and Equity Raise" • 9 July 2025. ASX Announcement "Quarterly Activities/Appendix 5B Cash Flow Report" • 14 July 2025. ASX Announcement "Completion of Equity Raise" • 22 July 2025. ASX Announcement "Appendix 5B amended Section 7 (only)" • 4 August 2025. ASX Announcement "Endeavor Production Meets Operating Costs in First Full Month" • 5 September 2025. ASX Announcement "S&P DJI Announces September 2025 Quarterly Rebalance" • 9 September 2025. ASX Announcement "Endeavor Silver Zinc Mine-September Update" • 10 October 2025. ASX Announcement "September 2025 Quarterly Report" • 23 October 2025. ASX Announcement "Exploration Update-Endeavor Silver Zinc Mine" • 28 October 2025. ASX Announcement "Pause in Trading" • 29 October 2025. ASX Announcement "Trading Halt" • 30 October 2025. ASX Announcement "Suspension from Quotation" • 31 October 2025. ASX Announcement "Significant Incident Endeavor Mine" • 31 October 2025. ASX Announcement "Reinstatement to Quotation" • 6 November 2025. ASX Announcement "Operations Resume at Endeavor Mine" • 18 November 2025. ASX Announcement "Endeavor Silver Zinc Mine-November Update" • 28 November 2025. ASX Announcement "Endeavor Mine Working Capital Facilities Secured" • 1 December 2025. ASX Announcement "Trading Halt" • 3 December 2025. ASX Announcement "Polymetals raises $34m for the Endeavor Silver Zinc Mine" • 14 January 2026. ASX Announcement "31 December 2025 Quarterly Report" • 27 February 2026. ASX Announcement "Half Year Accounts" • 9 March 2026. ASX Announcement "Endeavor Silver Mine" • 14 April 2026. ASX Announcement "March 2026 Quarterly Report" • 24 June 2026. ASX Announcement "High-Grade results from Endeavor Main Lode" • 14 July 2026. ASX Announcement "30 June Quarterly Report" • 22 July 2026. ASX Announcement "Further High Grade Results from Main Lode-Amended" • 28 July 2026. ASX Announcement "Exchange of Endeavor Mine Rehabilitation Bond" • 31 July 2026. ASX Announcement "Completion of Endeavor Mine Acquisition" • 12 August 2026. ASX Announcement "High-Grade Silver-Zinc Hits Continue at Endeavor Mine" • 31 August 2026. ASX Announcement "Appendix 4E-Preliminary Final Report-30 June 2026" • 7 September 2023. ASX announcement “Endeavour Mine 2026 Mineral Resource” The Company confirms that it is not aware of any information or data that materially affects the information included in the relevant market announcement and all material assumptions and technical parameters underpinning the estimates in the Original Announcement continue to apply and have not materially changed. Competent Persons Statement The information supplied in this release regarding Exploration Targets & Exploration Results of the Endeavor Project is based on information compiled by Mr Jess Oram. Mr Oram is an Executive Director of Polymetals Resources Ltd. The information supplied in this release regarding Mineral Resources of the Endeavor Project is based on information compiled by Mr John Horton. Mr Horton is a consultant to Polymetals Resources Ltd. The information supplied in this release regarding Ore Reserves of the Endeavor Project is based on information compiled by Mr Simon Youds. Mr Youds is a consultant to Polymetals Resources Ltd. Mr Jess Oram, Mr John Horton and Mr Simon Youds are each Competent Persons and Members of the Australian Institute of Mining and Metallurgy. Mr Jess Oram, Mr John Horton and Mr Simon Youds each have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify
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Polymetals Resources Ltd Review of Operations 30 June 2026 17 as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Jess Oram, Mr John Horton and Mr Simon Youds consent to the inclusion of matters based on information in the form and context in which it appears. Forward Looking Statement This report prepared by Polymetals Resources Limited (or ‘the Company’) includes forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘continue’, and ‘guidance’, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, exploration results, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Such forward- looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the Directors and management of the Company. The Company cannot and does not give assurances that the results, performance or achievements expressed or implied in the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements.
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Polymetals Resources Ltd Review of Operations 30 June 2026 18 Tenement Position In accordance with Listing Rule 5.3.3, Polymetals provides the following Information concerning Its mining tenements: (a) no applications were made during the quarter by the Company to acquire new or surrender its existing licences; and (b) the following table lists the Company’s mining tenements held at the end of the quarter and their location: Table 1: Polymetals - Exploration Licences & Mining Leases: Endeavor and Guinea. Project Licence Location Expiry Ownership Endeavor (NSW) Exploration Licence EL 5785 NSW 5/10/2027 100% Exploration Licence EL 8583 NSW 2/6/2029 100% Exploration Licence EL 8752 NSW 27/6/2027 100% Mining Lease ML 158 NSW 20/5/2028 100% Mining Lease ML 159 NSW 12/3/2028 100% Mining Lease ML 160 NSW 12/3/2028 100% Mining Lease ML 161 NSW 12/3/2028 100% Mining Lease ML 930 NSW 20/5/2028 100% Guinea Alahiné EL22123 Republic of Guinea Awaiting renewal 100% Mansala EL22694 Republic of Guinea Awaiting renewal 100%
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Polymetals Resources Ltd Directors' report 30 June 2026 19 Directors’ Report
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Polymetals Resources Ltd Directors' report 30 June 2026 20 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity' or the 'group') consisting of Polymetals Resources Ltd (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2026. Di rectors The following persons were directors of Polymetals Resources Ltd during the whole of the financial year and up to the date of this report, unless otherwise stated: David Sproule - Executive Chairman Jess Oram - Executive Director Alistair Barton - Non-Executive Director Principal activities The principal activities of the consolidated entity during the year were the exploration, development and mining of mineral resources - in particular silver-lead and zinc. During the year, the first shipments of zinc and silver/lead concentrate were made from the Endeavor silver-lead-zinc mine in the Cobar Basin, NSW. Di vidends There were no dividends paid, recommended or declared during the current or previous financial year. Operating Results The loss for the consolidated entity after providing for income tax amounted to $47,042,826 (30 June 2025: $47,848,266). Review of Operations Information on the operations of the Group during the financial year and up to the date of this report is set out separately in the Annual Report under Review of Operations. Performance Year ended 30 June 2026 Silver produced oz 1,108,400 Gold produced oz 1,554 Zinc produced t 10,272 Lead produced t 5,165 Group operating costs* A$M A$/t ore 128.45 358.9 Exploration A$M 3.66 *Group operating costs include mining, processing, site admin, transport and logistics, treatment charges, refining charges, royalties, finance costs & corporate.
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Polymetals Resources Ltd Directors' report 30 June 2026 21 Production physicals Year ended 30 June 2026 Ore mined tonnes 357,876 Ore processed tonnes 357,658 Ore grade (processed) Silver (g/t) Gold (g/t) Zinc (%) Lead (%) 122.5 0.14 3.6% 1.8% Recovery** Silver (%) Gold (%) Zinc (%) Lead (%) 79% 100% 80% 79% Metal recovered*** Silver (oz) Gold (oz) Zinc (t) Lead (t) 1,108,400 1,554 10,272 5,165 **Production figures include both concentrate and direct shipping ore (DSO). There is no payable gold in concentrates, but DSO assumes 100% silver gold recovery. ***Metal recovered is after on-site milling and processing which does not recover 100% of the metals produced Corporate Refer to Significant changes in the state of affairs section below. Significant changes in the state of affairs In July 2025, the Ocean Partners UK Limited loan facility limit was reduced to US$10,000,000 (refer note 16). On 14 July 2025, the Company issued 18,750,000 ordinary shares at $0.80 per share to raise $15,000,000 to replace the undrawn facility that is no longer available from Ocean Partners (refer note 20). On 5 December 2025, Ocean Partners exercised 1,250,000 options at $1.00 per share (refer note 20). On 11 December 2025, the Company issued 39,500,000 ordinary shares at $0.87 per share, which represented a 15.9% discount on the last traded price of $1.04 per share. The $34,365,000 raised (before share issue costs) was applied to furthering near -mine drilling and exploration, and to strengthen the Company's balance sheet (refer note 20). On 19 December 2025, 743,750 loan-funded shares vested and were issued under the loan- funded share plan. Due to an ASX reporting breach, the Company obtained shareholder approval to implement a selective buy-back of the loan-funded shares to Directors (bei ng 250,000 issued to David Sproule, 187,500 to Alistair Barton, and 125,000 to Jess Oram). The 562,500 loan funded shares were bought back and cancelled by the Company and the corresponding Company-provided loans were cancelled (refer note 20). For other significant changes in the state of affairs, refer to the above Review of operations . Ther e were no other significant changes in the state of affairs of the consolidated entity during the financial year. Matters subsequent to the end of the financial year On 28 July 2026, the consolidated entity used existing cash reserves to replace the Environmental Bonds of $27,956,000 that were previously held by the vendor of the Endeavor Mine (note 13 and note 27). The Environmental Bonds replaced are in the form of a bank guarantee provided by Macquarie Bank Limited. The cash reserves utilised will remain as restricted cash in an interest-bearing account.
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Polymetals Resources Ltd Directors' report 30 June 2026 22 As a result of the above Environmental Bond replacement, the vendor of the Endeavor Mine no longer holds senior security over the project, and the 100% ownership of Cobar Infrastructure Ltd transferred to the consolidated entity. Cobar Infrastructure Ltd owns a significant real estate portfolio in Cobar comprising of 42 houses, four large unit blocks (total of 51 rooms) and an amount of industrial land. On 6 August 2026, 618,750 loan-funded shares vested and were issued. The associated loans at $0.35 per share are repayable on the latter of the date of sale of the shares or 19 December 2028. On 12 August 2026, the Company announced further drilling results from the Upper North Lode at the Endeavor Mine, which identified broad zones of high-grade silver-lead-zinc mineralisation adjacent to existing underground development. The Ocean Partners UK Limited facility in use at 30 June 2026 was fully repaid post year end, then in August 2026, the consolidated entity drew down US$9.9 million (US$10 million before costs). On 7 September 2026 the company released an updated Statement of Mineral Resources as at 31 July 2026. Endeavor’s global in-situ total Mineral Resource (excluding tailings) has increased to 20.7 Mt at 7.5% Zn, 4.2% Pb and 82 g/t Ag, reported at a 5% Pb + Zn cut-off, containing about 1.55 Mt of zinc, 0.86 Mt of lead and 54.3 Moz of silver despite on-going mine depletion and the adoption of a 5% lower density. The Mineral Resource comprises: o Measured 5.9 Mt at 7.6% Zn, 4.6% Pb and 82 g/t Ag o Indicated 11.1 Mt at 7.5% Zn, 4.3% Pb and 86 g/t Ag o Inferred 3.7 Mt at 7.4% Zn, 3.1% Pb and 70 g/t Ag o Total 20.7 Mt at 7.5% Zn, 4.2% Pb and 82 g/t Ag No other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. Likely developments and expected results of operations On 1 August 2024 the acquisition of Cobar Operations Pty Ltd and Endeavor Operations Pty Ltd was completed. The consolidated entity had two years from completion to replace the $27.956 million Environmental Bonds. Since acquisition, a further $2,947,000 in bonds was levied, which by 30 June 2026, $837,375 of this increase had been paid with the balance to be paid via a quarterly payment plan of $301,375 to be completed by June 2028. Cobar Operations Pty Ltd and Endeavor Operations Pty Ltd own the mining tenements and exploration licences relating to the plant and equipment located at the Endeavor Mine. Following the acquisition, the consolidated entity accessed external debt and equit y funding to support the development of the Endeavor Mine. Following the receipt of funding, the consolidated entity was able to expeditiously move towards the recommencement of production at the Endeavor Mine with the added benefit that any revenues generated from the project were ultimately available to support the replacement of the Environmental Bonds. The Company holds a loan facility with Ocean Partners UK Ltd totalling US$10,000,000 (drawn down to US$4,000,000 at 30 June 2026). In conjunction with this facility arrangement, the Company executed a six -year offtake agreement with Ocean Partners UK Ltd relating to zinc and silver -lead concentrates produced from the Endeavor Mine. The offtake is dependent on future production benchmarks which may or may not occur.
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Polymetals Resources Ltd Directors' report 30 June 2026 23 Material business risks Access to future funding There is no assurance that the funding required by the consolidated entity from time to time to meet its business requirements and objectives will be available to it on favourable terms, or at all. However, the consolidated entity has a US$10,000,000 loan facility from Ocean Partners UK Ltd. The consolidated entity also has a proven ability to raise the necessary funding or settle debts via the issuance of shares, as evidenced by the raising of $38,483,500 in cash (before share issue transaction costs) from shares issued during the year ended 30 June 2025, and a further $15,000,000 and $34,365,000 in cash (before share issue transaction costs) from shares issued in July 2025 and December 2025 respectively. Regulation changes Unforeseen changes to the mining laws, regulations, standards and practices applicable may significantly affect the Endeavor Mine tenements in Australia and therefore the ability of the Company to operate in Australia. Any such changes in Australia is monitored by the Company which maintains a close watching brief of state and federal regulatory changes with regular updates circulated to members. Ore Reserves and production The consolidated entity is now in its production stage. A key risk is that the Ore Reserves underground may be less extensive, or of lower grade, than currently estimated. This could result in reduced production volumes, higher operating costs, or a shorter mine life than planned. Ongoing drilling, geological modelling, and mine planning are undertaken to improve confidence in the Mineral Resource and Ore Reserve base. The Board and Management maintain close oversight of production performance, mine plannin g, and reserve reconciliation to mitigate this risk. Regulatory investigation risk The site accident which resulted in two fatalities is currently the subject of an internal review and external reviews by the relevant regulators. At this stage, no action has been taken against, or notified to, the Company. Any liability which may result (if any) is currently uncertain and unquantifiable. Occupational health and safety risk Exploration and operations carry occupational health and safety risks which remains well managed by training, site hygiene practices and qualified staff who have implemented industry standard operating and monitoring procedures. In addition to these measures, the consolidated entity maintains comprehensive insurance coverage, including workers' compensation policies through Icare NSW, to address potential liabilities and provide financial support in the event of workplace incidents. These policies are designed to safeguard the consolidated entity and its employees against unforeseen events, ensuring compliance with statutory obligations and supporting the consolidated entity’s commitment to workplace safety. The site accident which resulted in two fatalities is currently the subject of an internal review and external reviews by the relevant regulators. At this stage, no action has been taken against, or notified to, the Company. Any liability which may result (if any) is currently uncertain and unquantifiable. Environmental regulation The consolidated entity is subject to environmental regulations under Australian and international laws, including the Endeavor Mine in New South Wales. Mining and milling operations commenced in May 2025 and first shipments of concentrate occurred during the year. The consolidated entity continued to meet all regulatory obligations during this year. Additionally, the consolidated entity holds mineral tenements in Guinea under the Guinea Mining Act 1992, which are subject to renewal and include standard environmental conditions. The Company complies with these conditions, and the directors are not aware of any non-compliance with environmental laws.
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Polymetals Resources Ltd Directors' report 30 June 2026 24 Information on directors Name: David Sproule Title: Executive Chairman Qualifications: BE (Hons, Extractive Metallurgy), Member AusIMM Experience and expertise: David Sproule has specialised in value creation within the minerals industry, founding and managing the private Polymetals Group which developed numerous mining projects over 25 years. An "owner build" model was applied to all operations significantly redu cing typical mine development costs. The projects collectively returned +2,000% in fully franked dividends on initial shareholder investment. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: Chairman and Acting CEO Interests in shares: 73,250,000 Interests in options: Nil Name: Alistair Barton Title: Non-Executive Director Qualifications: Associate Diploma and Fellowship Diploma in Geology and a Graduate Diploma in Finance and Investment. Experience and expertise: Alistair has over 45 years' exploration, operational and corporate experience. Alistair has operated his own consultancy practice providing technical and corporate advice to the resources sector, carrying out numerous resource project due diligence studies , feasibility studies and independent experts reports for project funding and developments. Alistair has held the positions of Managing Director for ASX -listed Probe Resources, General Manager of Exploration for Barrack Mines, General Manager of Operations for Barrack Mines, Operations Manager for McIlwraith Minerals and various Project Management positions. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: None Interests in shares: 937,196 Interests in options: Nil Name: Jess Oram Title: Executive Director Qualifications: B.Sc.,(Geol), Member AIG Experience and expertise: Jess is an experienced exploration geologist with over 30 years' practice in mineral exploration and management across a variety of commodities, companies and countries. He has significant experience in uranium, base and precious metals exploration and has been involved in mineral discovery, resource delineation and expansion and mining feasibility studies. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: Technical Director Interests in shares: 188,000 Interests in options: Nil 'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. 'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.
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Polymetals Resources Ltd Directors' report 30 June 2026 25 Company secretary John Haley is the Company Secretary. John is a Chartered Accountant and has over 40 years of extensive Board, company secretarial and corporate finance experience, predominantly within the mining and resources industry. Me etings of directors The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2026, and the number of meetings attended by each director were: Full Board Attended Held David Sproule 6 6 Alistair Barton 6 6 Jess Oram 6 6 Held: represents the number of meetings held during the time the director held office. There were two meetings of the Audit and Risk Committee during the financial year. The Board comprised no more than four directors during the financial year, the Board also constituted the Audit and Risk Committee and all attended the two meetings. Re muneration report (audited) The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors. The remuneration report is set out under the following main headings: ● Principles used to determine the nature and amount of remuneration ● Details of remuneration ● Service agreements ● Share-based compensation ● Additional information ● Additional disclosures relating to key management personnel Principles used to determine the nature and amount of remuneration The remuneration policy of the consolidated entity has been designed to align key management personnel objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives based on key performance areas affecting the consolidated entity's financial results. The Board of Directors ("the Board") believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best key management personnel to run and manage the consolidated entity, as well as create goal congruence between directors, executives and shareholders. All remuneration paid to directors and executives is valued at the cost to the consolidated entity and expensed. Shares given to directors and executives are valued as the difference between the market price of those shares and the amount paid by the director or executive. Options are valued using the Black -Scholes methodology. The Company had entered into a Loan Funded Share Plan (LFSP) whereby limited recourse loans had been provided to directors and key management personnel to acquire shares in the Company. 3,525,000 in-substance options were granted under the LFSP during the prior year and 618,750 remain unvested at 30 June 2026. The remaining 618,750 loan-funded shares vested and were issued subsequent to the year-end (refer note 32). The B oard believes that it has implemented suitable practices and procedures that are appropriate for an organisation of this size and maturity. In accordance with best practice corporate governance, the structure of non- executive director and executive director remuneration is separate.
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Polymetals Resources Ltd Directors' report 30 June 2026 26 Non-executive directors remuneration The Board policy is to remunerate non- executive directors at market rates for comparable companies for time, commitment and responsibilities. The Board determines payments to the non- executive directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. Fees for non- executive directors are not linked to the performance of the consolidated entity. The directors are not required to hold any shares in the Company under the Constitution of the Company; however, to align directors' interest with shareholder interests, the directors are encouraged to hold shares in the Company. ASX listing rules require the aggregate non- executive directors' remuneration be determined periodically by a general meeting. The most recent determination was during the 2021 Annual General Meeting where the shareholders approved a maximum annual aggregate remuneration of $250,000. The amount paid to non- executive directors of the parent entity (Polymetals Resources Limited) during the year to 30 June 2026 was $36,284 excluding any remuneration from options (2025: $60,163). Ex ecutive remuneration Executive directors can be employed by the consolidated entity on a consultancy basis, on Board approval, with remuneration and terms stipulated in individual consultancy agreements. The Board reviews executive packages annually by reference to the consolidated entity's performance, executive performance and comparable information from industry sectors and other listed companies in similar industries. In addition, external consultants may be used to provide analysis and advice to ensure the directors' and senior executives' remuneration is competitive in the market place. The remuneration of the executives employed by the Company for the year ended 30 June 2026 is detailed in this Remuneration Report. Cons olidated entity performance and link to remuneration As the Company has only recently transitioned into production, the relationship between executive remuneration, Company performance and shareholder wealth is continuing to develop. During this phase, share price movements are influenced by a range of factors, including operational ramp- up, mineral and metals prices, exploration outcomes and broader market sentiment toward the resources sector, which may fluctuate independently of executive performance or remuneration outcomes. At 30 June 2026 the market price of the Company’s ordinary shares was $0.76 per share (30 June 2025: $0.81 per share). No dividends were paid during the year ended 30 June 2026. Remu neration committee During the year ended 30 June 2026, the Company did not have a separately established remuneration committee. Considering the size of the consolidated entity, the number of directors and the consolidated entity's transition from development into early production, the directors are of the view that these functions can be efficiently performed with full Board participation. Us e of remuneration consultants The Company did not engage remuneration consultants to prepare a formal remuneration report during the financial year ended 30 June 2026. Voting and comments made at the Company's 21 November 2025 Annual General Meeting ('AGM') At the 21 November 2025 AGM, 94.84% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2025. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. De tails of remuneration Amounts of remuneration Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
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Polymetals Resources Ltd Directors' report 30 June 2026 27 The key management personnel of the consolidated entity consisted of the following directors of Polymetals Resources Ltd: ● David Sproule ● Alistair Barton ● Jess Oram And the following persons: ● John Haley - Company Secretary and Chief Financial Officer ● Matthew Gill - General Manager of the Endeavor Mine (resigned on 11 March 2026) ● Brad Stanmore - General Manager of the Endeavor Mine (appointed on 11 March 2026) Short-term benefits Post- employment benefits Long-term benefits Share-based payments Cash salary Super- Long service Equity- and fees annuation leave settled Total 2026 $ $ $ $ $ Non-Executive Directors: Alistair Barton 32,433 3,851 - 6,477 42,761 Executive Directors: David Sproule 120,000 - - 8,636 128,636 Jess Oram 295,964 35,516 - 4,318 335,798 Other Key Management Personnel: John Haley 120,000 - - 4,318 124,318 Matthew Gill(a) 338,892 40,807 - 6,909 386,608 Brad Stanmore(b) 123,224 14,538 - - 137,762 1,030,513 94,712 - 30,658 1,155,883 (a) Matthew Gill resigned on 11 March 2026. (b) Brad Stanmore was appointed on 11 March 2026. Short-term benefits Post- employment benefits Long-term benefits Share-based payments Cash salary Super- Long service Equity- and fees annuation leave settled Total 2025 $ $ $ $ $ Non-Executive Directors: Alistair Barton 32,433 3,730 - 6,735 42,898 Executive Directors: David Sproule 120,000 - - 8,980 128,980 Jess Oram(a) 122,655 11,345 - 4,490 138,490 Other Key Management Personnel: John Haley 120,000 - - 4,490 124,490 Matthew Gill(b) 363,583 41,812 - 7,184 412,579 758,671 56,887 - 31,879 847,437 (a) Jess Oram was appointed as Executive Director on 13 January 2025 (formerly Non -Executive Director) (b) Matthew Gill resigned as a Director on 18 July 2024 and commenced employment as General Manager of the Endeavor Mine
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Polymetals Resources Ltd Directors' report 30 June 2026 28 The proportion of remuneration linked to performance and the fixed proportion are as follows: Fixed remuneration At risk - STI At risk - LTI Name 2026 2025 2026 2025 2026 2025 Non-Executive Directors: Alistair Barton 85% 84% - - 15% 16% Executive Directors: David Sproule 93% 93% - - 7% 7% Jess Oram 99% 97% - - 1% 3% Other Key Management Personnel: John Haley 97% 96% - - 3% 4% Matthew Gill 98% 98% - - 2% 2% Brad Stanmore 100% - - - - - Service agreements All directors and key management personnel invoice the Company under their personal name, except for the following: ● David Sproule is Executive Chairman under a contract for services (the Contract) which commenced on 10 November 2022, with no fixed term duration, for an annual fee of $120,000. No annual leave, long service or other leave is provided for under the Contract. The termination notice period is 1 month and may be paid out in lieu of notice by the Company. ● John Haley is Company Secretary and Chief Financial Officer. John is paid through a contract for services which commenced on 1 February 2023, with no fixed term duration. From 1 July 2024 the fixed fee was $10,000 per month. The termination notice period is 1 month. ● On 1 March 2025, Jess Oram commenced as Executive Director Technical for a base remuneration of $330,000 per annum. The contract has no fixed term duration. The termination notice period is 3 months. Share-based compensation Issue of shares On 19 December 2025, the following loan- funded shares were issued to directors and other key management personnel as part of compensation upon the vesting of the loan-funded shares that were granted under the Loan Funded Share Plan (refer note 35): Fair value per option at Name Date Shares Issue Price $ grant date Alistair Barton 19 December 2025 93,750 $0.35 32,813 $0.109 David Sproule 19 December 2025 125,000 $0.35 43,750 $0.109 Jess Oram 19 December 2025 62,500 $0.35 21,875 $0.109 John Haley 19 December 2025 62,500 $0.35 21,875 $0.109 Matthew Gill 19 December 2025 100,000 $0.35 35,000 $0.109 These loan-funded shares continue to be treated as in-substance options until repayment of the loans. The loans are repayable only from the proceeds of the sale of the share or their market value at the time of repayment. The following are the remaining loan- funded shares that were granted on 5 September 2024 and have not yet vested by 30 June 2026:
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Polymetals Resources Ltd Directors' report 30 June 2026 29 Number of Fair value loan-funded Vesting and Exercise per option at Name shares granted Grant date exercisable date Expiry date price grant date Alistair Barton 93,750 5 September 2024 Refer note 35 5 September 2027 $0.35 $0.109 David Sproule 125,000 5 September 2024 Refer note 35 5 September 2027 $0.35 $0.109 Jess Oram 62,500 5 September 2024 Refer note 35 5 September 2027 $0.35 $0.109 John Haley 62,500 5 September 2024 Refer note 35 5 September 2027 $0.35 $0.109 On 6 August 2026, the remaining loan-funded shares vested and were issued (refer note 32). Options granted carry no dividend or voting rights. Additional information The earnings of the consolidated entity for the five years to 30 June 2026 are summarised below: 2026 2025 2024 2023 2022 $ $ $ $ $ Loss after income tax (47,042,826) (47,848,266) (3,273,241) (7,799,397) (1,156,988) The factors that are considered to affect total shareholders return ('TSR') are summarised below: 2026 2025 2024 2023 2022 Share price at financial year end (cents) 76.0 81.0 25.0 38.0 8.9 Basic earnings per share (cents per share) (16.2) (22.4) (2.1) (8.7) (1.5) Additional disclosures relating to key management personnel Shareholding The number of shares in the Company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below: Balance at Received Disposed/ Balance at the start of as part of forfeited/ the end of the year remuneration Additions other* the year Ordinary shares Directors: David Sproule 73,112,500 125,000 137,500 (250,000) 73,125,000 Alistair Barton 937,196 93,750 - (187,500) 843,446 Jess Oram 188,000 62,500 - (125,000) 125,500 Other Key Management Personnel: John Haley 430,000 62,500 - (250,000) 242,500 Matthew Gill 200,000 100,000 - (300,000) - Brad Stanmore - - - - - 74,867,696 443,750 137,500 (1,112,500) 74,336,446 * Included in disposed/forfeited/other is the loan -funded share buy -back by the Company that took place in March 2026 (refer note 20).
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Polymetals Resources Ltd Directors' report 30 June 2026 30 Option holding The number of options over ordinary shares in the Company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below: Balance at Expired/ Balance at the start of forfeited/ the end of the year Granted Exercised other* the year Loan Funded Share Plan** Directors: Alistair Barton 187,500 - (93,750) - 93,750 David Sproule 250,000 - (125,000) - 125,000 Jess Oram 125,000 - (62,500) - 62,500 Other Key Management Personnel: John Haley 125,000 - (62,500) - 62,500 Matthew Gill 200,000 - (100,000) (100,000) - Brad Stanmore - - - - - 887,500 - (443,750) (100,000) 343,750 * Included in expired/forfeited/other is the removal from the table of the options for key management personnel who have resigned during the period or are no longer considered to be a key management person. ** All options noted above are options that have been issued under the Loan Funded Share Plan (refer note 35). Other transactions with key management personnel and their related parties During the year ended 30 June 2026, an entity controlled by David Sproule agreed to provide the consolidated entity with a loan facility of up to $5,000,000 (refer note 16). The loan is unsecured, interest free and for a term of 12 months. On 17 July 2024, $1,400,000 of a related party loan from Meadowhead Investments Pty Ltd, an entity controlled by David Sproule, was repaid by the issue of 5,000,000 shares in the Company (refer note 20) and the remaining $1,555,512 loan was repaid by cash. In February 2024, a company controlled by David Sproule's spouse, Deering Nominees Pty Ltd, loaned $950,000 to the consolidated entity. The loan was repaid in full during the year ended 30 June 2025. Aggregate amounts of each of the above types of other transactions with key management personnel and their related entities are included in the financial statements as follows: Consolidated statement of financial position: Amounts recognised as trade and other payables, being the unpaid or accrued key management personnel remuneration: Trade and other payables: $120,000 (2025: $120,000) Borrowings: $5,000,000 (2025: $nil) Th is concludes the remuneration report, which has been audited. Shares under option Unissued ordinary shares of Polymetals Resources Ltd under option at the date of this report are as follows: Exercise Number Grant date Expiry date price under option 13 September 2024 23 November 2026 $1.00 1,250,000 No person entitled to exercise the options issued on 13 September 2024 had or has any right by virtue of the option to participate in any share issue of the Company or of any other body corporate.
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Polymetals Resources Ltd Directors' report 30 June 2026 31 Shares issued on the exercise of options The following ordinary shares of Polymetals Resources Ltd were issued during the year ended 30 June 2026 and up to the date of this report on the exercise of options granted: Exercise Number of Date options granted price shares issued 5 September 2022 $0.35 800,000 13 September 2022 $1.00 1,250,000 2,050,000 Indemnity and insurance of officers The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. Indemnity and insurance of auditor The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Proceedings on behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Non-audit services There were no non-audit services provided during the financial year by the auditor. Officers of the Company who are former partners of RSM Australia Partners There are no officers of the Company who are former partners of RSM Australia Partners. 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 immediately after this directors' report. Rounding of amounts The Company is of a kind referred to in ASIC Legislative Instrument 2026/183, relating to 'rounding- off' of amounts in the directors’ report. Amounts in the directors’ report have been rounded off in accordance with the instrument to the nearest dollar. Au ditor RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
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Polymetals Resources Ltd Directors' report 30 June 2026 32 This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors __________________________ David Sproule Executive Chairman 8 September 2026
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Polymetals Resources Ltd Contents 30 June 2026 33 Financial Report Contents Auditor's independence declaration 34 Consolidated statement of profit or loss and other comprehensive income 35 Consolidated statement of financial position 36 Consolidated statement of changes in equity 37 Consolidated statement of cash flows 38 Notes to the consolidated financial statements 39 Consolidated entity disclosure statement 73 Directors' declaration 74 Independent auditor's report to the members of Polymetals Resources Ltd 75 Shareholder information 80 General information The financial statements cover Polymetals Resources Ltd as a consolidated entity consisting of Polymetals Resources Ltd and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Polymetals Resources Ltd's functional and presentation currency. Polymetals Resources Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business Solution Accountants Endeavor Mine 627 Stafford Road Louth Road Stafford, QLD, 4053 Cobar, NSW, 2835 A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors on 7 September 2026. The directors have the power to amend and reissue the financial statements.
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RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation RSM Australia Partners Level 27, 120 Collins Street, Melbourne, VIC 3000 PO Box 248 Collins Street West VIC 8007 T +61 (0) 3 9286 8000 F +61 (0) 3 9286 8199 www.rsm.com.au AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Polymetals Resources Ltd for the year ended 30 June 2026, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. RSM AUSTRALIA PARTNERS R J MORILLO MALDONADO Partner Melbourne, VIC Dated: 8 September 2026 34
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Polymetals Resources Ltd Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2026 Consolidated Note 2026 2025 $ $ The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 35 Revenue 4 100,002,365 1,425 Other income 84,847 89,236 Interest revenue 173,323 244,762 Expenses Production costs (65,032,203) - Repairs and maintenance - (2,374,161) Royalties (7,169,148) - Depreciation and amortisation expense 5 (10,080,047) (3,323,169) Employee benefits expense 5 (40,295,804) (16,399,623) Exploration expenses (3,658,955) (812,548) Freight and shipping (9,283,242) - Insurance (2,826,659) (1,257,368) Short term lease expense (13,818) (779,911) Site establishment costs - (14,478,250) Write off of assets 11 - (567,524) Finance costs 5 (3,938,266) (2,333,500) Foreign exchange gains 916,357 7,911 Other corporate costs (5,921,576) (5,865,546) Total expenses (147,303,361) (48,183,689) Loss before income tax expense (47,042,826) (47,848,266) Income tax expense 6 - - Loss after income tax expense for the year attributable to the owners of Polymetals Resources Ltd (47,042,826) (47,848,266) Other comprehensive income for the year, net of tax - - Total comprehensive income for the year attributable to the owners of Polymetals Resources Ltd (47,042,826) (47,848,266) Cents Cents Basic earnings per share 34 (16.2) (22.4) Diluted earnings per share 34 (16.2) (22.4)
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Polymetals Resources Ltd Consolidated statement of financial position As at 30 June 2026 Consolidated Note 2026 2025 $ $ The above consolidated statement of financial position should be read in conjunction with the accompanying notes 36 Assets Current assets Cash and cash equivalents 7 19,658,063 8,375,993 Trade and other receivables 8 24,772 21,881 Inventories 9 10,656,368 3,920,470 Other assets 10 805,452 448,602 Total current assets 31,144,655 12,766,946 Non-current assets Inventories 9 - 4,592,141 Property, plant and equipment 11 75,713,413 68,679,871 Right-of-use assets 12 1,326,019 2,086,331 Intangible assets 13 9,100,000 9,100,000 Other assets 10 1,179,073 41,900 Total non-current assets 87,318,505 84,500,243 Total assets 118,463,160 97,267,189 Liabilities Current liabilities Trade and other payables 14 33,816,033 16,483,791 Contract liabilities 15 2,474,487 - Borrowings 16 19,884,468 18,258,546 Lease liabilities 17 1,085,028 1,191,821 Employee benefits 18 2,014,311 1,024,570 Total current liabilities 59,274,327 36,958,728 Non-current liabilities Borrowings 16 6,566,703 6,446,516 Lease liabilities 17 279,951 933,941 Employee benefits 18 127,638 43,222 Provisions 19 31,127,047 34,092,000 Total non-current liabilities 38,101,339 41,515,679 Total liabilities 97,375,666 78,474,407 Net assets 21,087,494 18,792,782 Equity Issued capital 20 128,281,723 79,621,946 Reserves 21 636,062 (41,699) Accumulated losses (107,830,291) (60,787,465) Total equity 21,087,494 18,792,782
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Polymetals Resources Ltd Consolidated statement of changes in equity For the year ended 30 June 2026 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 37 Issued Accumulated Total equity capital Reserves losses Consolidated $ $ $ $ Balance at 1 July 2024 39,765,767 451,145 (13,390,344) 26,826,568 Loss after income tax expense for the year - - (47,848,266) (47,848,266) Other comprehensive income for the year, net of tax - - - - Total comprehensive income for the year - - (47,848,266) (47,848,266) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 20) 39,856,179 - - 39,856,179 Share-based payments (note 35) - 575,176 - 575,176 Transfer from reserves to accumulated losses upon expiry of options - (451,145) 451,145 - Loan-funded share reserve recognition (note 21) - (616,875) - (616,875) Balance at 30 June 2025 79,621,946 (41,699) (60,787,465) 18,792,782 Issued Accumulated Total equity capital Reserves losses Consolidated $ $ $ $ Balance at 1 July 2025 79,621,946 (41,699) (60,787,465) 18,792,782 Loss after income tax expense for the year - - (47,042,826) (47,042,826) Other comprehensive income for the year, net of tax - - - - Total comprehensive income for the year - - (47,042,826) (47,042,826) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 20) 48,659,777 - - 48,659,777 Share-based payments (note 35) - 60,886 - 60,886 Loan-funded share reserve reversal (note 21) - 616,875 - 616,875 Balance at 30 June 2026 128,281,723 636,062 (107,830,291) 21,087,494
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Polymetals Resources Ltd Consolidated statement of cash flows For the year ended 30 June 2026 Consolidated Note 2026 2025 $ $ The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 38 Cash flows from operating activities Receipts from customers (inclusive of GST) 102,558,808 - Payments to suppliers and employees (inclusive of GST) (121,918,846) (36,609,777) Interest received 173,323 246,095 Government grants - 75,000 Interest and other finance costs paid (2,620,434) (554,793) Net cash used in operating activities 33 (21,807,149) (36,843,475) Cash flows from investing activities Net cash acquired in asset acquisition - 2,494 Payments for property, plant and equipment (8,120,668) (12,584,371) Payments for security deposits (1,137,173) (40,000) Net cash used in investing activities (9,257,841) (12,621,877) Cash flows from financing activities Proceeds from issue of shares 20 50,826,750 38,483,500 Share issue transaction costs 20 (1,550,098) (1,724,196) Repayment of lease liability (1,266,672) (498,208) Proceeds from related party loans 16 5,000,000 - Proceeds from borrowings - 15,963,960 Repayment of borrowings (10,562,107) (2,359,811) Net cash from financing activities 42,447,873 49,865,245 Net increase in cash and cash equivalents 11,382,883 399,893 Cash and cash equivalents at the beginning of the financial year 8,275,180 7,875,287 Cash and cash equivalents at the end of the financial year 7 19,658,063 8,275,180
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 39 Note 1. Material accounting policy information The accounting policies that are material to the consolidated entity are set out either in the respective notes or below. The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The consolidated entity 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. Adoption of these new and amended accounting standards and interpretations did not have a material impact to the financial statements. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Going concern The financial statements have been prepared on the going concern basis, which assumes the realisation of assets and extinguishment of liabilities in the normal course of business at the amounts stated in the financial report. The consolidated entity recorded a loss after tax of $47,042,826 and had net cash outflows from operating and investing activities of $21,807,149 and $9,257,841 respectively for the year ended 30 June 2026. At 30 June 2026, the consolidated entity's net current liabilities exceed the current assets by $28,129,672. In addition, the consolidated entity had a commitment to pay a further $30,065,625 of Environmental Bonds in favour of the Government of New South Wales to meet the environmental obligations of the Endeavor Mine tenements (refer to note 27). The continuing viability of the consolidated entity is dependent upon the consolidated entity continuing its transition successfully as a mining producer which would be substantially bolstered by successful exploration. These factors indicate a material uncertainty which may cast significant doubt as to whether the consolidated entity will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The Directors have prepared a cash flow budget for the 12-month period after the signing of this financial report; and concluded that there are reasonable grounds to believe that the consolidated entity will be able to continue as a going concern. The Directors’ conclusion on this matter considers the following factors: ● On 6 November 2024, the consolidated entity entered into a six -year offtake agreement for zinc and silver - lead concentrates produced from the Endeavor Mine. The Company is able to obtain prepayments for concentrate production under this Offtake Agreement, and has utilised this prepayment facility in the year, and may continue to do so (unused facility as at 30 June 2026: US$6 million). Subsequent to year end, the facility was fully repaid, and then in late August 2026, the Company drew down the full US$10 million; ● The consolidated entity commenced productions and sales of product in July 2025. Revenue earned in the year ended 30 June 2026 was $100,002,365; ● Subsequent to the year end, $27,956,000 of the Environmental Bonds were replaced in the form of a bank guarantee provided by Macquarie Bank Limited. As a result, the seller of the Endeavor Mine no longer holds senior security over the project, and the 100% ownership of Cobar Infrastructure Ltd transferred to the consolidated entity (refer note 26 and note 32); ● The New South Wales government regulator accepted a payment plan for the remaining $2,947,000 Environmental Bonds that were not paid post year-end, to be paid progressively until 31 March 2028; ● In addition, the Company is listed on the ASX and has the ability to apply for additional funds in the future. The Directors are of the opinion that, if required, the Company will be successful in raising funds, as it has been demonstrated in the past evidenced by the raising of $15 million and $34.4 million in cash (before share issue transaction costs) from shares issued in July 2025 and December 2025 respectively. Accordingly, the Directors believe that the consolidated entity will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 1. Material accounting policy information (continued) 40 The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the consolidated entity does not continue as a going concern. Ba sis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with IFRS Accounting Standards as issued by the International Accounting Standards Board ('IASB'). Historical cost convention The financial statements have been prepared under the historical cost convention. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2. Comparative information Some comparative information has been reclassified for presentation purposes. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 29. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Polymetals Resources Ltd ('Company' or 'parent entity') as at 30 June 2026 and the results of all subsidiaries for the year then ended. Polymetals Resources Ltd and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'. The consolidated financial statements have been prepared on the basis that the wholly-owned subsidiary, Golden Guinea Resources SARL, is the accounting parent entity. Foreign currency translation The financial statements are presented in Australian dollars, which is Polymetals Resources Ltd's functional and presentation currency. Foreign currency transactions Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at fina ncial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign operations The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity. The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 1. Material accounting policy information (continued) 41 Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off. Financial assets at amortised cost A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. Impairment of financial assets The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12- month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss. Rounding of amounts The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2026/183, relating to 'rounding- off' of amounts in the report. Amounts in the report have been rounded off in accordance with the instrument to the nearest dollar. Ne w Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2026. The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 1. Material accounting policy information (continued) 42 AASB 18 Presentation and Disclosure in Financial Statements This standard is applicable to annual reporting periods beginning on or after 1 January 2027 and early adoption is permitted. The standard replaces AASB 101 'Presentation of Financial Statements', with many of the original disclosure requirements retained and there will be no impact on the recognition and measurement of items in the financial statements. But the standard will affect presentation and disclosure in the financial statements, including introducing five categories in the statement of profit or loss and other comprehensive income: operating, investing, financing, income taxes and discontinued operations. The standard introduces two mandatory sub- totals in the statement: 'Operating profit' and 'Profit before financing and income taxes'. There are also new disclosure requirements for 'management -defined performance measures', such as earnings before interest, taxes, depreciation and amortisation ('EBITDA') or 'adjusted profit'. The standard provides enhanced guidance on grouping of information (aggregation and disaggregation), including whether to present this information in the primary financial statements or in the notes. The consolidated entity will adopt this standard from 1 July 2027 and it is expected that there will be a significant change to the layout of the statement of profit or loss and other comprehensive income. AA SB S1 General Requirements for Disclosure of Sustainability-related Financial Information and AASB S2 Climate-related Disclosures AASB S1 General Requirements for Disclosure of Sustainability -related Financial Information (AASB S1) and AASB S2 Climate-related Disclosures (AASB S2) were issued by the Australian Accounting Standards Board (AASB) on 20 September 2024. AASB S1 is a voluntary Standard, while AASB S2 is mandatory for entities within the scope of the sustainability reporting requirements under the Corporations Act 2001. Based on the applicable reporting thresholds, management has determined that the consolidated entity is a Group 2 entity for sustainability reporting purposes. Accordingly, the financial year ending 30 June 2027 will be the first reporting period for which the consolidated entity is required to prepare a sustainability report in accordance with AASB S2. The consolidated entity is continuing to assess the disclosure requirements of AASB S2 and has prepared an indicative AASB S2-aligned climate statement as part of its assessment and preparation for the first applicable reporting period. The consolidated entity does not intend to voluntarily apply AASB S1. Note 2. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Estimation of useful lives of property, plant and equipment The estimations of useful lives, residual values and depreciation methods require significant management judgements and are regularly reviewed. The useful lives could change significantly as a result of a change in mine life or some other event. If they need to be modified, the depreciation and amortisation expense is accounted for prospectively from the date of the assessment until the end of the revised useful life (for both the current and future years). Impairment of property, plant and equipment The consolidated entity assesses impairment of property, plant and equipment and mine assets in accordance with AASB 136 'Impairment of Assets'. Where indicators of impairment exists, the recoverable amount of these assets is determined based on the value in use. The value in use calculation is based on discounted cashflow model. This requires the use of estimates and judgements in relation to a range of inputs including: commodity prices; exchange rates; reserves and mine planning scheduling; production costs; and discount rates.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 2. Critical accounting judgements, estimates and assumptions (continued) 43 It is reasonably possible that the underlying metal price assumption may change which may then impact the estimated life of mine determinant and may then require a material adjustment to the carrying value of mining plant and equipment, mining infrastructure and mining development assets. Furthermore, the expected future cash flows used to determine the value- in-use of these assets are inherently uncertain and could materially change over time. They are significantly affected by a number of factors including reserves and production estimates, together with economic factors such as metal spot prices, discount rates, estimates of costs to produce reserves and future capital expenditure. The consolidated entity has regard to external forecasts of key assumptions where available (e.g. commodity price and exchange rates). The recoverable amount is particularly sensitive to fluctuations in the AUD commodity price. No impairment to property, plant and equipment occurred for the year ended 30 June 2026. Lease t erm The lease term is a significant component in the measurement of both the right -of-use asset and lease liability. Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the consolidated entity's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The consolidated entity reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances. Incremental borrowing rate Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the consolidated entity estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right -of-use asset, with similar terms, security and economic environment. Rehabilitation provision A provision has been made for the present value of anticipated costs for future rehabilitation of the Endeavor Mine. The consolidated entity's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The consolidated entity recognises management's best estimate for assets retirement obligations and site rehabilitations in the period in which they are incurred. Actual costs incurred in the future periods could differ materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates could affect the carrying amount of this provision. Rev enue recognition The consolidated entity applies judgement in determining the point at which control of concentrate transfers to customers under offtake agreements. While contractual terms provide for legal title to pass on receipt of advance or provisional payments, management has determined that control transfers only when the concentrate is loaded on board the vessel at the port of shipment. This judgement is based on an assessment of the Incoterms applied, the transfer of risk, retention of physical possession prior to shipment, and the customer’s inability to direct the use of the concentrate before loading. Management considers this assessment to appropriately reflect the satisfaction of the Group’s performance obligations under AASB 15.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 44 Note 3. Operating segments Identification of reportable operating segments The consolidated entity is organised into two operating segments: a silver-zinc-lead mine located in Cobar, NSW and gold exploration within Guinea, West Africa. No exploration activity occurred in Guinea in the 2026 financial year. The operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments. Concentrate production is underway at the silver -zinc-lead mine, with multiple shipments of concentrate in the year ended 30 June 2026. The i nformation reported to the CODM is on at least a quarterly basis. Unallocated items The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment: ● interest revenue; ● income tax benefit; ● corporate costs; ● cash at bank of Polymetals Resources Ltd (for 30 June 2025); and ● receivables and payables associated with corporate costs. Operating segment information Silver-Zinc- Lead Gold Unallocated Total Consolidated - 2026 $ $ $ $ Operating loss (31,285,998) - (1,911,836) (33,197,834) Depreciation and amortisation (10,080,048) - - (10,080,048) Interest revenue 2,248 - 171,074 173,322 Finance costs (3,938,266) - - (3,938,266) Loss before income tax expense (45,302,064) - (1,740,762) (47,042,826) Income tax expense - Loss after income tax expense (47,042,826) Assets Segment assets 118,462,757 403 - 118,463,160 Total assets 118,463,160 Total assets includes: Acquisition of non-current assets 12,113,818 - - 12,113,818 Liabilities Segment liabilities 97,375,666 - - 97,375,666 Total liabilities 97,375,666
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 3. Operating segments (continued) 45 Silver-Zinc- Lead Gold Unallocated Total Consolidated - 2025 $ $ $ $ Operating loss (43,357,116) (5,010) (1,407,733) (44,769,859) Depreciation and amortisation (3,323,169) - - (3,323,169) Interest revenue 1,295 - 243,467 244,762 Loss before income tax expense (46,678,990) (5,010) (1,164,266) (47,848,266) Income tax expense - Loss after income tax expense (47,848,266) Assets Segment assets 88,505,668 403 8,761,118 97,267,189 Total assets 97,267,189 Total assets includes: Acquisition of non-current assets 60,810,555 - - 60,810,555 Liabilities Segment liabilities 78,474,407 - - 78,474,407 Total liabilities 78,474,407 Geographical information Geographical non- current assets 2026 2025 $ $ Australia 87,318,505 84,500,243 The geographical non-current assets above are exclusive of, where applicable, financial instruments and deferred tax assets. Accounting policy for operating segments Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. Note 4. Revenue Consolidated 2026 2025 $ $ Revenue from contracts with customers Silver sales 53,085,166 - Zinc sales 31,238,110 - Lead sales 11,860,111 - Gold sales 3,818,978 - 100,002,365 - Other revenue Other revenue - 1,425 Revenue 100,002,365 1,425
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 4. Revenue (continued) 46 Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Consolidated 2026 2025 $ $ Geographical regions Europe 100,002,365 - Accounting policy for revenue recognition Revenue from the sale of mineral concentrate under offtake agreements is recognised when control of the concentrate transfers to the customer. Offtake sales are conducted under contracts incorporating CIF Incoterms 2020. Delivery, and the transfer of control, occurs when the concentrate is loaded on board the vessel at the port of shipment. At this point, the customer obtains the significant risks and rewards of ownership and the ability to direct the use of, and obtain substantially all remaining benefits from, the concentrate. Under the terms of the offtake agreements, legal title to the concentrate may transfer upon receipt of advance or provisional payments. However, such payments do not result in the transfer of control, as the Group retains physical possession of the concentrate and bears the risks associated with the goods until shipment. Accordingly, amounts received prior to loading are recognised as contract liabilities until the concentrate is loaded on board the vessel. The Group’s offtake contract includes provisional pricing arrangements whereby the final selling price for concentrate is determined by reference to observable market prices over a specified quotational period following shipment. At the time of shipment, revenue is measured based on the estimated consideration receivable, reflecting provisional pricing, estimated payable metal content and any pricing fixed under early pricing options. Subsequent adjustments arising from changes in metal prices, final weight s and assays, and over or under quantities are recognised as adjustments to revenue in the period in which they are determined.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 47 Note 5. Expenses Consolidated 2026 2025 $ $ Loss before income tax includes the following specific expenses: Depreciation Plant and equipment 8,673,620 2,758,295 Fixtures and fittings 7,101 2,789 Motor vehicles 133,125 24,446 Accommodation right-of-use assets 986,668 411,112 Plant and equipment right-of-use assets 32,840 - Motor vehicles right-of-use assets 246,693 126,527 Total depreciation 10,080,047 3,323,169 Finance costs Interest and finance charges on borrowings 2,345,085 2,231,897 Interest and finance charges paid/payable on lease liabilities 122,012 75,331 Unwinding of the discount on rehabilitation provision 1,317,832 - General interest charge paid/payable to the ATO - 26,272 Interest payable on bond guarantee 153,337 - Finance costs expensed 3,938,266 2,333,500 Employee benefits expense Wages and salaries 36,644,089 14,863,081 Defined contribution superannuation expense 3,590,829 1,409,918 Share-based payments expense 60,886 126,624 40,295,804 16,399,623 Note 6. Income tax Consolidated 2026 2025 $ $ Numerical reconciliation of income tax expense and tax at the statutory rate Loss before income tax expense (47,042,826) (47,848,266) Tax at the statutory tax rate of 30% (14,112,848) (14,354,480) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-deductible expenses 711,881 453,330 (13,400,967) (13,901,150) Current year tax losses and temporary differences not recognised 13,400,967 13,901,150 Income tax expense - -
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 6. Income tax (continued) 48 Consolidated 2026 2025 $ $ Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised 79,365,252 47,047,917 Potential tax benefit @ 30% 23,809,576 14,114,375 The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed. Deferred tax assets not recognised Deferred tax assets not recognised also comprises temporary differences amounting to $13,155,263 (2025: $1,766,811). The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised in the statement of financial position as the recovery of this benefit is uncertain. Accounting policy for income tax Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Polymetals Resources Ltd (the 'head entity') and its wholly -owned Australian subsidiaries formed an income tax consolidated group from 31 July 2024 under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the 'separate taxpayer within group' approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group. No te 7. Cash and cash equivalents Consolidated 2026 2025 $ $ Current assets Cash at bank 19,658,063 8,375,993 Reconciliation to cash and cash equivalents at the end of the financial year The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the statement of cash flows as follows: Balances as above 19,658,063 8,375,993 Bank overdraft (note 16) - (100,813) Balance as per statement of cash flows 19,658,063 8,275,180 Accounting policy for cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short - term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 7. Cash and cash equivalents (continued) 49 Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short - term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Note 8. Trade and other receivables Consolidated 2026 2025 $ $ Current assets Other receivables - 21,881 Fuel rebate 24,772 - 24,772 21,881 Note 9. Inventories Consolidated 2026 2025 $ $ Current assets Concentrate inventory 10,656,368 2,697,486 Consumables inventory - 1,222,984 10,656,368 3,920,470 Non-current assets Spares on hand - 4,592,141 10,656,368 8,512,611 Accounting policy for inventories Inventory is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable. Spares on hand were determined using fair value on acquisition date (refer to note 30) which became their deemed cost upon initial recognition. 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. Note 10. Other assets Consolidated 2026 2025 $ $ Current assets Prepayments 805,452 448,602 Non-current assets Security deposits 1,179,073 41,900 1,984,525 490,502
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 50 Note 11. Property, plant and equipment Consolidated 2026 2025 $ $ Non-current assets Plant and equipment - at cost 76,352,884 70,855,625 Less: Accumulated depreciation (11,181,228) (2,767,438) 65,171,656 68,088,187 Fixtures and fittings - at cost 13,695 13,695 Less: Accumulated depreciation (9,890) (2,789) 3,805 10,906 Motor vehicles - at cost 1,540,694 605,224 Less: Accumulated depreciation (188,554) (24,446) 1,352,140 580,778 Equipment tools - at cost 9,185,812 - 75,713,413 68,679,871 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Plant and Fixtures and Motor Equipment equipment fittings vehicles tools Total Consolidated $ $ $ $ $ Balance at 1 July 2024 12,819 - - - 12,819 Additions 25,439,013 13,695 605,224 - 26,057,932 Additions through asset acquisition (note 30) 45,962,174 - - - 45,962,174 Write off of assets (567,524) - - - (567,524) Depreciation expense (2,758,295) (2,789) (24,446) - (2,785,530) Balance at 30 June 2025 68,088,187 10,906 580,778 - 68,679,871 Additions 10,459,553 - 1,148,376 4,593,671 16,201,600 Disposals (491,349) - (172,219) - (663,568) Rehabilitation provision remeasurement (4,282,785) - - - (4,282,785) Transfer of spares tools - - - 4,592,141 4,592,141 Transfers in/(out) 71,670 - (71,670) - - Depreciation expense (8,673,620) (7,101) (133,125) - (8,813,846) Balance at 30 June 2026 65,171,656 3,805 1,352,140 9,185,812 75,713,413 Assets under finance At 30 June 2026, the carrying amount of property, plant and equipment includes assets subject to equipment finance arrangements with a net book value of $16,751,177 (2025: $9,237,628). The equipment finance liabilities are secured over the related assets (refer note 16). Security over property, plant and equipment The seller of the Endeavor Mine companies held security over the Endeavor Mine companies, including property, plant and equipment with a carrying value of $5,138,245 at 30 June 2026 (2025: $6,239,215), and could reclaim ownership if the consolidated entity was not able to replace the Environmental Bonds - MLs by 1 August 2026 or pay $27,956,000 in cash. Subsequent to the year end, these Environmental Bonds were replaced and the seller no longer holds security over the Endeavor Mine companies (refer note 32).
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 11. Property, plant and equipment (continued) 51 Accounting policy for property, plant and equipment Plant and equipment, including mining plant, processing facilities and supporting infrastructure, is stated at historical cost less accumulated depreciation and impairment. Cost includes the fair value of assets acquired on acquisition of the Endeavor mine, together with any subsequent expenditure that is directly attributable to bringing the assets to the condition necessary for them to be capable of operating in the manner intended by management. Expenditure incurred to restart operations after the Endeavor mine acquisition is capitalised where it relates directly to the refurbishment, replacement or upgrading of plant and infrastructure. Expenditure that is not directly attributable, including utilities and administrative overheads, is expensed as incurred. Depr eciation is calculated on a straight line basis to write off the net cost of each item of plant and equipment over their expected useful lives as follows: Plant and equipment 1 to 10 years Fixtures and fittings 2.5 years Motor vehicles 5 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the consolidated statement of profit and loss and other comprehensive income. Equ ipment tools Equipment tools include tools and spares parts for replacement and services of Plant and equipment. These assets are initially recognised at cost, and subsequently remeasured at cost less, if any, impairment. Cost includes the fair value of assets acquired on acquisition of the Endeavor mine. Equipment tools are depreciated after transferring to Plant and equipment. Note 12. Right-of-use assets Consolidated 2026 2025 $ $ Non-current assets Accommodation - right-of-use 1,973,336 1,973,336 Less: Accumulated depreciation (1,397,780) (411,112) 575,556 1,562,224 Plant and equipment - right-of-use 394,082 - Less: Accumulated depreciation (32,840) - 361,242 - Motor vehicles - right-of-use 762,441 650,634 Less: Accumulated depreciation (373,220) (126,527) 389,221 524,107 1,326,019 2,086,331
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 12. Right-of-use assets (continued) 52 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Accommodation Plant and equipment Motor vehicles right-of-use right-of-use right-of-use Total Consolidated $ $ $ $ Balance at 1 July 2024 - - - - Additions 1,973,336 - 650,634 2,623,970 Depreciation expense (411,112) - (126,527) (537,639) Balance at 30 June 2025 1,562,224 - 524,107 2,086,331 Additions - 394,082 111,807 505,889 Depreciation expense (986,668) (32,840) (246,693) (1,266,201) Balance at 30 June 2026 575,556 361,242 389,221 1,326,019 For more information on the associated leases, refer to note 17. Ac counting policy for right-of-use assets Right-of-use assets are depreciated on a straight -line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right- of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The consolidated entity has elected not to recognise a right -of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low -value assets. Lease payments on these assets are expensed to profit or loss as incurred. Note 13. Intangible assets Consolidated 2026 2025 $ $ Non-current assets Right to acquire the Endeavor properties 9,100,000 9,100,000 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Right to acquire Endeavor properties Consolidated $ Balance at 1 July 2024 22,933,519 Completion of the acquisition of Endeavor mine assets (note 30) (13,833,519) Balance at 30 June 2025 9,100,000 Balance at 30 June 2026 9,100,000
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 13. Intangible assets (continued) 53 Right to acquire the Endeavor properties On 12 May 2023, the Company acquired the right to purchase the shares in three companies, two of which (Cobar Operations Pty Ltd and Endeavor Operations Pty Ltd) own the Endeavor silver -zinc mine in Cobar, NSW (the Endeavor Mine) and the third (Cobar Infrastructure Pty Ltd) holds residential properties. On 1 August 2024, the consolidated entity acquired Cobar Operations Pty Ltd and Endeavor Operations Pty Ltd and the balance of the right to acquire the Endeavor Mine asset has been allocated to the assets acquired (refer note 30). To be eligible to acquire Cobar Infrastructure Pty Ltd, the consolidated entity will need to replace the Vendors exposure to existing Environmental Bond guarantees by 1 August 2026, therefore the remaining balance represents the right to acquire Cobar Infrastructure Pty Ltd. Subsequent to the year end, the Environmental Bond guarantees were replaced by the consolidated entity (refer note 32), and the consolidated entity finalised the acquisition of the related properties. No te 14. Trade and other payables Consolidated 2026 2025 $ $ Current liabilities Trade payables 13,236,130 9,995,239 Payable to Cobar Water Board 2,004,568 2,216,554 Payroll tax payable 177,106 280,512 Royalties 4,414,468 - Accruals 10,447,543 3,082,768 BAS payable 2,452,033 65,616 Other payables 1,084,185 843,102 33,816,033 16,483,791 Included in Trade payables and Accruals is $120,000 (2025: 120,000) payable to directors at 30 June 2026. Ref er to note 23 for further information on financial instruments. Accounting policy for trade and other payables Due to their short-term nature, trade and other payables are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. No te 15. Contract liabilities Consolidated 2026 2025 $ $ Current liabilities Contract liabilities 2,474,487 - Accounting policy for contract liabilities Contract liabilities represent advance or provisional payments received from the consolidated entity’s offtake partner in respect of concentrate for which control has not yet transferred to the buyer. The consolidated entity retains physical possession and the risks associated with the concentrate until it is loaded on board the vessel. Accordingly, amounts received prior to loading are recognised as contract liabilities and are recognised as revenue when control of the concentrate transfers upon loading.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 54 Note 16. Borrowings Consolidated 2026 2025 $ $ Current liabilities Bank overdraft - 100,813 Related party loans 5,000,000 - Equipment finance 8,037,925 3,049,466 Ocean Partners loan facility 6,376,426 14,903,643 Premium finance 470,117 187,124 Employee loans - 17,500 19,884,468 18,258,546 Non-current liabilities Equipment finance 6,566,703 6,446,516 26,451,171 24,705,062 Refer to note 23 for further information on financial instruments. Financing arrangements Unrestricted access was available at the reporting date to the following lines of credit: Consolidated 2026 2025 $ $ Total facilities Related party loans 5,000,000 - Ocean Partners loan facility 14,558,160 30,683,412 19,558,160 30,683,412 Used at the reporting date Related party loans 5,000,000 - Ocean Partners loan facility 6,376,426 14,903,643 11,376,426 14,903,643 Unused at the reporting date Related party loans - - Ocean Partners loan facility 8,181,734 15,779,769 8,181,734 15,779,769 Related party loans In November 2025, a related company to one of the Directors, David Sproule, loaned $5,000,000 to the Company. The loan is interest free and for a term of 12 months. Equipment finance The consolidated entity has various finance arrangements for motor vehicles and other equipment. Borrowings are measured at amortised cost using the effective interest method. Interest rates are fixed and secured over specific assets with a net book value of $16,751,177 at 30 June 2026 (2025: $9,237,628). Most arrangements are for a term of 36 months, with interest rates ranging from 6.25% to 8.75%.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 16. Borrowings (continued) 55 Ocean Partners loan facility On 27 June 2023 the consolidated entity announced that it has entered into a binding Term Sheet with Ocean Partners UK Limited (OPUK) for an unsecured US$10,000,000 pre-payment funding facility, subject to certain conditions, to provide development funding and working capital for the recommencement of mining and processing operation at the Company's underground silver-zinc-lead Endeavor Mine in the Cobar basin, NSW. On 16 September 2024, the pre-payment funding facility was replaced by an upgraded US$20,000,000 revolving loan facility for the same purpose, which was then reduced back to US10,000,000 in July 2025. The k ey terms of the facility are as follows: (i) Facility limit - US$10,000,000 (at 30 June 2026, this translates to A$14,558,160) (ii) Contract - six-year offtake of zinc and silver -lead concentrates produced from the Endeavor Mine. No offtake on toll treated ores. Zinc: Pricing is derived from the average London Metal Exchange price over the five days prior to shipment. Treatment charge costs are derived from reference to 50% benchmark (Korea Zinc-Teck) and 50% of the non-benchmark spot treatment charges. Silver-lead: Lead pricing is derived from the average London Metal Exchange price over the five days prior to shipment. Silver pricing is derived from the average London Bullion Market Association price over the five days prior to shipment. Treatment and r efining charge costs are levied with reference to Cannington benchmark. (iii) Interest - 12-month Secured Overnight Financing Rate + 6.0% (iv) Term - Revolving facility up to 36 months from first drawdown (v) Share subscription - 1,118,280 fully paid POL shares and 2,500,000 share options (vi) Arrangement fee - 1% of drawn funds. (vii) Security - General security over Cobar Operations Pty Ltd ranked pari -passu with the Endeavor Mine rehabilitation bond and parent company guarantee (viii) Repayment - 10% of facility amount to be repaid quarterly, with the repayment period starting after the 6 - month grace period. Repaid amounts can be redrawn on the same terms revolving over the 36 -month term. Outstanding balances upon maturity shall be subject to a bullet repayment. Early repayment can be made any time with five days' notice. (ix) Grace period - six months Note 17. Lease liabilities Consolidated 2026 2025 $ $ Current liabilities Lease liability - Cobar accommodation 615,643 976,954 Lease liability - Motor vehicles 278,149 214,867 Lease liability - Plant and equipment 191,236 - 1,085,028 1,191,821 Non-current liabilities Lease liability - Cobar accommodation - 615,643 Lease liability - Motor vehicles 107,394 318,298 Lease liability - Plant and equipment 172,557 - 279,951 933,941 1,364,979 2,125,762 Refer to note 23 for further information on financial instruments.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 17. Lease liabilities (continued) 56 On 1 February 2025 a lease commenced for all 26 rooms at Cobar Crossroads Motel, Town & Country and Cobar Motor Inn. The lease is for two years to 31 January 2027, with two options for a further two years each. A daily unoccupied room rate of $110 plus GST is payable per room and this is increased to $145 plus GST for an occupied room. The lease liability on commencement of the lease was $1,973,336. Management are not reasonably certain that the options will be exercised therefore these are excluded from the calculation of the lease liability. The leases for 7 Toyota Landcruisers and a 12- seater bus commenced in December 2024 and are for terms ranging from 24 months to 36 months. During the year ended 30 June 2026, 2 new leases commenced for an Isuzu fire truck and a surface drill, both with a term of 2 years. Lease liabilities are secured by the related leased assets. Ac counting policy for lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right -of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. Note 18. Employee benefits Consolidated 2026 2025 $ $ Current liabilities Annual leave 2,014,311 1,024,570 Non-current liabilities Long service leave 127,638 43,222 2,141,949 1,067,792 Note 19. Provisions Consolidated 2026 2025 $ $ Non-current liabilities Rehabilitation provision 31,127,047 34,092,000
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 19. Provisions (continued) 57 Rehabilitation provision The provision for rehabilitation costs relate to a present assessment of the costs to reinstate the disturbed area of the Endeavor Mine in accordance with the relevant consent. Provisions have been made to rehabilitate all areas of disturbance including surface infrastructure, buildings, underground mine workings and underground entries, using internal and external expert assessments of each aspect to calculate an anticipated cash outflow discounted to net present value. At each reporting date the rehabilitation provision is re-measured in line with the then-current level of disturbance, cost estimates, and other key inputs. Movem ents in provisions Movements in each class of provision during the current financial year, other than employee benefits, are set out below: Rehabilitation provision Consolidated - 2026 $ Carrying amount at the start of the year 34,092,000 Reassessment of provision (4,282,785) Unwinding of discount 1,317,832 Carrying amount at the end of the year 31,127,047 Accounting policy for provisions Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. Note 20. Issued capital Consolidated 2026 2025 2026 2025 Shares Shares $ $ Ordinary shares - fully paid 308,744,927 249,063,677 128,281,723 79,621,946
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 20. Issued capital (continued) 58 Movements in ordinary share capital Details Date Shares Issue price $ Balance 1 July 2024 186,760,665 39,765,767 Shares issued to settle debts (a) 17 July 2024 5,000,000 $0.28 1,400,000 Placement (b) 23 July 2024 2,000,000 $0.28 560,000 Shares issued to vendor of the Endeavor Mine companies (c) 1 August 2024 1,000,000 $0.28 280,000 Shares issued to lender (d) 13 November 2024 1,118,280 $0.72 800,000 Shares issued under loan-funded share plan (e) 19 December 2024 1,762,500 $0.35 616,875 Placement (b) 17 February 2025 43,750,000 $0.80 35,000,000 Shares issued under Share Purchase Plan (f) 17 March 2025 529,375 $0.80 423,500 Shares issued under agreement dated 27 May 2024 (g) 1 April 2025 7,142,857 $0.35 2,500,000 Share issue costs (1,724,196) Balance 30 June 2025 249,063,677 79,621,946 Reversal of loan-funded share reserve 1 July 2025 (616,875) Placement (b) 14 July 2025 18,750,000 $0.80 15,000,000 Options exercised (h) 5 December 2025 1,250,000 $1.00 1,250,000 Placement (b) 11 December 2025 39,500,000 $0.87 34,365,000 Shares issued under loan-funded share plan (e) 19 December 2025 743,750 Loans under loan-funded share plan repaid (e) 23 December 2025 - $0.35 54,250 Selective buyback of shares issued under the loan-funded share plan (e) 17 March 2026 (562,500) Loans under loan-funded share plan repaid (e) 1 January 2026 - $0.35 15,750 Loans under loan-funded share plan repaid (e) 23 January 2026 - $0.35 12,250 Loans under loan-funded share plan repaid (e) 11 April 2026 - $0.35 7,000 Loans under loan-funded share plan repaid (e) 3 May 2026 - $0.35 17,500 Loans under loan-funded share plan repaid (e) 7 May 2026 - $0.00 100,000 Loans under loan-funded share plan repaid (e) 8 May 2026 - $0.00 5,000 Share issue costs (1,550,098) Balance 30 June 2026 308,744,927 128,281,723 Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital. On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. (a) Shares issued to settle debts On 17 July 2024, 5,000,000 ordinary shares were issued to a related party, Meadowhead Investments Pty Ltd, in settlement of $1,400,000 of the loan outstanding (refer note 16).
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 20. Issued capital (continued) 59 (b) Placement 30 June 2025 On 23 July 2024, 2,000,000 ordinary shares were issued at $0.28 per share to raise working capital totalling $560,000. On 17 February 2025, the Company issued 43,750,000 ordinary shares for $0.80 per share to strengthen the balance sheet as the Endeavor Mine progresses to production, and to increase the Company's exploration activities. The placement raised $35,000,000. 30 Jun e 2026 On 14 July 2025, the Company issued 18,750,000 ordinary shares at $0.80 per share to raise $15,000,000 to replace the undrawn facility that is no longer available from Ocean Partners. On 11 December 2025, the Company issued 39,500,000 ordinary shares at $0.87 per share, which represented a 15.9% discount on the last traded price of $1.04 per share. The $34,365,000 raised (before share issue costs) is to be used for furthering near-mine drilling and exploration, and to strengthen the Company's balance sheet. (c) Shares issued to vendor of the Endeavor Mine companies On 1 August 2024, 1,000,000 ordinary shares were issued to the vendors of the Endeavor Mine companies, valued at $280,000 (refer note 30). (d) Shares issued to lender As required under the Ocean Partners UK Ltd loan facility, on 13 September 2024 the consolidated entity issued 1,118,280 ordinary shares to Ocean Partners UK Ltd at $0.72 per share (refer note 11). (e) Loan-funded share plan On 5 September 2024, the Company granted 3,525,000 loan- funded shares under a loan- funded share plan, split between 15 staff including the Board, Executives and Senior Management. On 19 December 2024 and 19 December 2025 respectively, 1,762,500 and 743,750 loan-funded shares vested and were issued. The loans are repayable only from the proceeds of the sale of the shares or their market value at the time of repayment. Due to an ASX reporting breach, the Company obtained shareholder approval to implement a selective buy-back of the loan-funded shares to Directors (being 250,000 issued to David Sproule, 187,500 to Alistair Barton, and 125,000 to Jess Oram). The 562,500 loan funded shares were bought back and cancelled by the Company and the corresponding Company-provided loans were cancelled. The fair value of the share-based payment expense is recognised in profit or loss over the vesting period. As at 30 June 2026, after the selective buy-back, the total number of shares exercised under the plan was 1,943,750, the outstanding loan balance was $468,563 and 593,750 loan-funded shares had not yet vested. During the year ended 30 June 2026, $211,750 of the loans relating to the loan -funded shares were repaid by shareholders. Issued capital has been recognised for the $211,750 received. (f) Shares issued under Share Purchase Plan On 17 March 2025, 529,375 shares were issued to existing shareholders at $0.80 per share under a Share Purchase Plan. (g) Shares issued under agreement with Metals Acquisitions Limited The Company had previously entered into an alliance with Metals Acquisitions Limited ("Metals Acquisitions") (ASX: MAC), a company that owns and operates the CSA copper mine located 5km north of Cobar, to allow each company to exploit synergies between the neighbouring mines. Under the alliance, Metals Acquisitions subscribed to an initial $2.5m of ordinary shares in the Company in the year ended 30 June 2024, then on 1 April 2025, 7,142,857 shares were issued to Metals Acquisitions for $0.35 per share, as all conditions precedent were met.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 20. Issued capital (continued) 60 (h) Options exercised As required under the Ocean Partners UK Ltd loan facility, on 13 September 2024 the consolidated entity issued 2,500,000 share options to Ocean Partners UK Ltd with an exercise price of $1.00 that expire on 23 November 2026 (refer to note 35). On 5 December 2025, Ocean Partners exercised 1,250,000 of the share options at $1.00 per share. Shar e buy-back There is no current on-market share buy-back. Capital risk management The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital. Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings and lease liabilities (current and non-current) less cash and cash equivalents. The consolidated entity is not exposed to externally imposed capital requirements. The consolidated entity monitors capital through the gearing ratio, which is calculated as net debt divided by total equity. Net debt is calculated as total borrowings less cash and cash equivalents. Total equity is defined as equity per the statement of financial position. The Board reviews the capital structure on an annual basis. As a part of this review the Board considers the cost of capital and risks associated with each class of capital. A high gearing ratio will be expected as the consolidated entity enters into its development stage and more debts are required to fund the operation and development activities. The capital risk management policy remains unchanged from the 2025 Annual Report. The gearing ratio at the reporting date was as follows: Consolidated Note 2026 2025 $ $ Current liabilities - trade and other payables 14 33,816,033 16,483,791 Current liabilities - borrowings 16 19,884,468 18,258,546 Non-current liabilities - borrowings 16 6,566,703 6,446,516 Total borrowings 60,267,204 41,188,853 Current assets - cash and cash equivalents 7 (19,658,063) (8,375,993) Net debt 40,609,141 32,812,860 Total equity 21,087,494 18,792,782 Gearing ratio 193% 175%
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 61 Note 21. Reserves Consolidated 2026 2025 $ $ Share-based payments reserve 636,062 575,176 Loan-funded shares reserve - (616,875) 636,062 (41,699) Share-based payments reserve The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration. Options reserve The reserve is used to recognise the value of share options provided to other parties as part of their compensation for services. Loan-funded shares reserve The loan-funded shares reserve represents the equity component of the Company’s loan- funded share plan. Under the plan, shares are issued to employees only when the relevant vesting conditions have been satisfied. The shares are funded by non-recourse loans provided by the Company. The loans are repayable only from the proceeds of the sale of the shares. The amount repayable to the Company is limited to the lesser of the loan amount of $0.35 per share and the proceeds from the sale of the shares. Movem ents in reserves Movements in each class of reserve during the current and previous financial year are set out below: Share-based Loan-funded payments reserve Options reserve shares reserve Total Consolidated $ $ $ $ Balance at 1 July 2024 206,145 245,000 - 451,145 Share-based payments 575,176 - - 575,176 Transfer from reserves to accumulated losses upon expiry of options (206,145) (245,000) - (451,145) Loan-funded share reserve recognition - - (616,875) (616,875) Balance at 30 June 2025 575,176 - (616,875) (41,699) Share-based payments (note 35) 60,886 - - 60,886 Loan-funded share reserve reversal - - 616,875 616,875 Balance at 30 June 2026 636,062 - - 636,062 Note 22. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. Note 23. Financial instruments Financial risk management objectives In common with all other businesses, the consolidated entity is exposed to risks that arise from its use of financial instruments. This note describes the consolidated entity’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 23. Financial instruments (continued) 62 There have been no substantive changes in the consolidated entity’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous years unless otherwise stated in this note. The consolidated entity’s financial instruments consist mainly of cash and cash equivalents, receivables, payables, and borrowings. The B oard has overall responsibility for the determination of the consolidated entity’s risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the consolidated entity’s finance function. The overall objective of the Board is to set polices that seek to reduce risk as far as possible without unduly affecting the consolidated entity’s competitiveness and flexibility. Further details regarding these policies are set out below. Market risk Foreign currency risk The consolidated entity undertakes certain transactions denominated in foreign currency (mainly sales of concentrate) and is exposed to foreign currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. At 30 June 2026, the consolidated entity had a USD$10,000,000 (2025: US$20,000,000) revolving credit facility with Ocean Partners. The consolidated entity also held USD -denominated cash balances and contract liabilities at the reporting date. These USD-denominated monetary assets and liabilities expose the consolidated entity to foreign currency risk arising from changes in the AUD/USD exchange rate. At 30 June 2026, if the Australian dollar had weakened/strengthened by 10% against the US dollar, with all other variables held constant, the post -tax loss would have been approximately $701,300 higher/ $573,800 lower, respectively. This sensitivity is attributable to foreign exchange gains and losses arising from USD-denominated cash balances, contract liabilities and the revolving credit facility. Apart from the USD$10,000,000 revolving credit facility, the Cash and cash equivalents and the Contract liability, the consolidated entity has no other significant exposure to foreign exchange risk, as there are effectively no other foreign currency transactions outstanding. The likely impact of this risk is considered minimal at this stage due to the exploration nature of the assets and the current level of utilisation of the facility. Pr ice risk The consolidated entity’s revenue and future operating results will be exposed to fluctuations in the prices of silver, zinc and lead. No sales were made during the reporting period; however, fluctuations in commodity prices could have a material impact on future financial performance and cash flows once sales commence. The entity does not currently hedge its commodity price risk. The Board and Management monitor market conditions and commodity prices to assess potential impacts on financial results and future capital and operating plans. Int erest rate risk Interest rate risk arises principally from cash and cash equivalents and borrowings. The consolidated entity’s borrowings include a USD$10,000,000 revolving credit facility at a variable interest rate (12- month Secured Overnight Financing Rate + 6.0%). Variable rate borrowings expose the consolidated entity to cash flow interest rate risk, while fixed rate borrowings expose it to fair value interest rate risk. At 30 June 2026, the used facility totalled $6,376,426 (2025: $14,903,643). The objective of interest rate risk management is to manage and control interest rate exposures within acceptable parameters while optimising returns.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 23. Financial instruments (continued) 63 The consolidated entity's main interest rate risk arises from long-term borrowings obtained at variable rates. Cash and cash equivalent balances are subject to interest rate risk as changes in market interest rates can affect the interest income earned on these balances. Exposure to interest rate risk arises on financial assets and financial liabilities at reporting date whereby a future change in interest rates will affect future cash flows. Basis points increase Basis points decrease Basis points change Effect on profit before tax Effect on equity Basis points change Effect on profit before tax Effect on equity Consolidated - 2026 $ $ $ $ Cash and cash equivalents 100 196,581 196,581 (100) (196,581) (196,581) Borrowings 100 (63,764) 63,764 (100) 63,764 (63,764) 132,817 260,345 (132,817) (260,345) Basis points increase Basis points decrease Basis points change Effect on profit before tax Effect on equity Basis points change Effect on profit before tax Effect on equity Consolidated - 2025 $ $ $ $ Cash and cash equivalents 100 83,760 83,760 (100) (83,760) (83,760) Borrowings 100 (149,036) (149,036) (100) 149,036 149,036 (65,276) (65,276) 65,276 65,276 Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity. This usually occurs when debtors fail to settle their obligations owing to the consolidated entity. The consolidated entity ’s objective is to minimise the risk of loss from credit risk exposure. The max imum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to recognised financial assets, is the carrying amount as disclosed in the statement of financial position and notes to the financial statements. Credit risk is reviewed regularly by the Board. It arises from exposure to receivables as well as through deposits with financial institutions. The consolidated entity does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the consolidated entity and at the reporting date. The consolidated entity’s cash at bank is wholly held with the Commonwealth Bank of Australia. Li quidity risk Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable. The consolidated entity manages liquidity risk by monitoring forecast cash flows for the possible need to obtain debt or equity finance. A related party provided the consolidated entity with a loan facility of $5,000,000 (refer note 16). The loan was fully utilised at 30 June 2026 and is repayable within 12 months.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 23. Financial instruments (continued) 64 The consolidated entity has entered into a binding Term Sheet with Ocean Partners UK Limited (OPUK) for an unsecured US$10,000,000 (A$14,558,160) concentrate pre- payment funding facility which will provide development funding and working capital for the recommencement of mining and processing operation at the Company's underground Silver-Zinc Endeavor Mine in the Cobar basin, NSW (refer note 16). Rema ining contractual maturities The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which t he financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position. 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities Consolidated - 2026 $ $ $ $ $ Non-derivatives Non-interest bearing Trade and other payables 33,816,033 - - - 33,816,033 Interest-bearing - variable Borrowings 6,846,543 - - - 6,846,543 Interest-bearing - fixed rate Borrowings 8,271,571 6,138,415 521,183 - 14,931,169 Lease liability 1,136,679 286,967 - - 1,423,646 Total non-derivatives 50,070,826 6,425,382 521,183 - 57,017,391 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities Consolidated - 2025 $ $ $ $ $ Non-derivatives Non-interest bearing Trade and other payables 16,483,791 - - - 16,483,791 Interest-bearing - variable Bank overdraft 100,813 - - - 100,813 Bank loans 15,090,767 - - - 15,090,767 Interest-bearing - fixed rate Borrowings 3,695,847 3,658,203 3,298,500 - 10,652,550 Lease liability 1,304,789 862,800 98,734 - 2,266,323 Total non-derivatives 36,676,007 4,521,003 3,397,234 - 44,594,244 The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above. Fair value of financial instruments Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 65 Note 24. Key management personnel disclosures Compensation The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is set out below: Consolidated 2026 2025 $ $ Short-term employee benefits 1,030,513 758,671 Post-employment benefits 94,712 56,887 Share-based payments 30,658 31,879 1,155,883 847,437 Note 25. Remuneration of auditors During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the auditor of the Company: Consolidated 2026 2025 $ $ Audit services - RSM Australia Partners Audit or review of the financial statements 208,993 123,000 Note 26. Contingent liabilities and contingent assets Under the terms of the acquisition of the Endeavor Mine companies (refer note 30), the consolidated entity had until 1 August 2026 to procure the replacement of the Environmental Bonds - MLs. If these bonds were not replaced before this date, the seller may exercise its security over the Endeavor Mine companies and reclaim ownership, or the consolidated entity could pay $27,956,000 in cash to replace the Environmental Bonds - MLs. Subs equent to the year end, the $27,956,000 of Environmental Bonds were replaced. As a result, the seller of the Endeavor Mine no longer holds senior security over the project, and the 100% ownership of Cobar Infrastructure Ltd transferred to the consolidated entity (refer note 32). The consolidated entity holds a US$10,000,000 loan facility with Ocean Partners UK Ltd (refer note 32). In conjunction with this facility arrangement, the Company executed a six -year offtake agreement with Ocean Partners UK Ltd relating to zinc and silver -lead concentrates produced from the Endeavor Mine. The offtake is dependent on future production benchmarks which may or may not occur. The consolidated entity is not aware of any other contingent liabilities or contingent assets as at the date of this financial report. No te 27. Commitments Consolidated 2026 2025 $ $ Committed at the reporting date but not recognised as liabilities, payable: Within one year 30,065,625 34,092,000
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 27. Commitments (continued) 66 The consolidated entity was required to pay $30,903,000 (decreased from $34,092,000 at 30 June 2025) of Environmental Bonds in favour of the Minister of the Government of New South Wales to meet the environmental obligations of the Endeavor Mine tenements. During the year, the New South Wales government regulator accepted a payment plan for approximately $6 million of the Environmental Bonds to be paid progressively from 31 March 2026 to 31 March 2028. By 30 June 2026, $837,375 had been paid, therefore the remaining commitment was $30,065,625. Subsequent to the year end, the consolidated entity replaced the Environmental Bonds that were previously held by the seller of the Endeavor Mine totalling $27,956,000 (note 32). No te 28. Related party transactions Legal parent entity Polymetals Resources Ltd is the legal parent entity. Subsidiaries Interests in subsidiaries are set out in note 31. Key management personnel Disclosures relating to key management personnel are set out in note 24 and the remuneration report included in the directors' report. Transactions with related parties The following transactions occurred with related parties: Receivable from and payable to related parties The following balances are outstanding at the reporting date in relation to transactions with related parties: Consolidated 2026 2025 $ $ Current payables: Trade and other payables to key management personnel 120,000 120,000 Loans to/from related parties During the year ended 30 June 2026, an entity controlled by David Sproule agreed to provide the consolidated entity with a loan facility of up to $5,000,000 (refer note 16). The loan is unsecured, interest free and for a term of 12 months. On 17 J uly 2024, $1,400,000 of a related party loan from Meadowhead Investments Pty Ltd, an entity controlled by David Sproule, was repaid by the issue of 5,000,000 shares in the Company (refer note 20) and the remaining $1,555,512 loan was repaid by cash. In February 2024, a company controlled by David Sproule's spouse, Deering Nominees Pty Ltd, loaned $950,000 to the consolidated entity. The loan was repaid in full during the prior year ended 30 June 2025. The f ollowing balances are outstanding at the reporting date in relation to loans with related parties: Consolidated 2026 2025 $ $ Current borrowings: Loan from other related party 5,000,000 -
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 67 Note 29. Parent entity information Set out below is the supplementary information about the legal parent entity. Statement of profit or loss and other comprehensive income Parent 2026 2025 $ $ Loss after income tax (10,523,114) (7,794,409) Total comprehensive income (10,523,114) (7,794,409) Statement of financial position Parent 2026 2025 $ $ Total current assets 20,204,352 8,761,117 Total assets 111,081,962 75,162,651 Total current liabilities 13,606,657 16,280,898 Total liabilities 13,704,082 16,599,196 Net assets 97,377,880 58,563,455 Equity Issued capital 133,422,824 84,763,047 Share-based payments reserve 636,062 575,176 Loan-funded shares reserve - (616,875) Accumulated losses (36,681,006) (26,157,893) Total equity 97,377,880 58,563,455 Guarantees entered into by the parent entity in relation to the debts of its subsidiaries The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2026 and 30 June 2025. Contingent liabilities The parent entity had no contingent liabilities as at 30 June 2026 and 30 June 2025. Capital commitments - Property, plant and equipment The parent entity had no capital commitments for property, plant and equipment as at 30 June 2026 and 30 June 2025. Material accounting policy information The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except for the following: ● Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 68 Note 30. Asset acquisition On 12 May 2023 the Company acquired the right to purchase the shares in three companies holding the Endeavor silver-zinc mine in Cobar, NSW (the Mine). During the year ended 30 June 2024, the terms of the agreement were amended to entitle the consolidated entity to acquire two of the three companies, with the acquisition of the third subsidiary holding residential properties deferred until Environmental Bond guarantees of $27,956,000 were replaced. Cobar Operations Pty Ltd and Endeavor Operations Pty Ltd (the 'Endeavor Mine companies') together held the Endeavor Mine assets and the acquisition of the Endeavor Mine companies completed on 1 August 2024. The new SSA allowed a further two years from completion of the acquisition of the Endeavor Mine companies to procure the replacement of the Environmental Bond guarantees, otherwise the consolidated entity was liable to pay cash to the vendor to release it from its obligations on rehabilitation of the Endeavor Mine site. Subs equent to the year end, the consolidated entity used existing cash reserves to replace the Environmental Bonds of $27,956,000 that were previously held by the seller of the Endeavor Mine. The Environmental Bonds replaced are in the form of a bank guarantee provided by Macquarie Bank Limited. The cash reserves utilised will remain as restricted cash in an interest-bearing account. As a result of the above Environmental Bond replacement, the seller of the Endeavor Mine no longer holds senior security over the project, and the 100% ownership of Cobar Infrastructure Ltd transferred to the consolidated entity (refer note 32). Details of the acquisition that completed in the prior year on 1 August 2024 are as follows: Fair value $ Cash and cash equivalents 121,838 Inventories 4,592,141 Mining assets 45,962,174 Employee benefits (134,735) Rehabilitation provision (34,092,000) Other liabilities assumed (2,216,554) Assets acquired and liabilities assumed on acquisition date 14,232,864 Right to acquire Endeavor assets at the beginning of the year 13,833,519 Stamp duty paid during the year as part of consideration 119,345 Shares issued by the Company during the year as part of consideration 280,000 Total fair value of consideration transferred 14,232,864 Note 31. Interests in subsidiaries Polymetals Resources Ltd is the legal parent entity of the consolidated entity and Golden Guinea Resources SARL is the accounting parent entity.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 31. Interests in subsidiaries (continued) 69 The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 1: Ownership interest Principal place of business / 2026 2025 Name Country of incorporation % % Golden Guinea Resources SARL Guinea, Africa 100% 100% Société Oro Tree Guinea Resources SARL Guinea, Africa 100% 100% Orana Minerals Pty Ltd Australia 100% 100% Cobar Metals Pty Ltd* Australia 100% 100% Cobar Operations Pty Ltd** Australia 100% 100% Endeavor Operations Pty Ltd** Australia 100% 100% Polymetals (Endeavor) Pty Ltd Australia 100% 100% Polymetals Rehabilitation Pty Ltd*** Australia 100% - * Subsidiary of Orana Minerals Pty Ltd. ** Subsidiaries of Cobar Metals Pty Ltd, acquired during the year ended 30 June 2025 (refer note 30). ***Incorporated on 3 June 2026. Unl ess otherwise stated, the subsidiaries have share capital consisting solely of ordinary shares that are held directly by the consolidated entity, and the proportion of ownership interests is equal to the proportion of voting rights held by the consolidated entity. Note 32. Events after the reporting period On 28 July 2026, the consolidated entity used existing cash reserves to replace the Environmental Bonds of $27,956,000 that were previously held by the vendor of the Endeavor Mine (note 13 and note 27). The Environmental Bonds replaced are in the form of a bank guarantee provided by Macquarie Bank Limited. The cash reserves utilised will remain as restricted cash in an interest-bearing account. As a result of the above Environmental Bond replacement, the vendor of the Endeavor Mine no longer holds senior security over the project, and the 100% ownership of Cobar Infrastructure Ltd transferred to the consolidated entity. Cobar Infrastructure Ltd owns a significant real estate portfolio in Cobar comprising of 42 houses, four large unit blocks (total of 51 rooms) and an amount of industrial land. On 6 August 2026, 618,750 loan-funded shares vested and were issued. The associated loans at $0.35 per share are repayable on the latter of the date of sale of the shares or 19 December 2028. On 12 August 2026, the Company announced further drilling results from the Upper North Lode at the Endeavor Mine, which identified broad zones of high-grade silver-lead-zinc mineralisation adjacent to existing underground development. The drilling results are expected to contribute to an updated Mineral Resource Estimate and assessment of the potential inclusion of additional mineralisation in the Company's mine plan. The Ocean Partners UK Limited facility in use at 30 June 2026 was fully repaid post year end, then in August 2026, the consolidated entity drew down US$9.9 million (US$10 million before costs). On 7 S eptember 2026 the company released an updated Statement of Mineral Resources as at 31 July 2026. Endeavor’s global in-situ total Mineral Resource (excluding tailings) has increased to 20.7 Mt at 7.5% Zn, 4.2% Pb and 82 g/t Ag, reported at a 5% Pb + Zn cut-off, containing about 1.55 Mt of zinc, 0.86 Mt of lead and 54.3 Moz of silver despite on-going mine depletion and the adoption of a 5% lower density. The Mineral Resource comprises: o Measured 5.9 Mt at 7.6% Zn, 4.6% Pb and 82 g/t Ag o Indicated 11.1 Mt at 7.5% Zn, 4.3% Pb and 86 g/t Ag o Inferred 3.7 Mt at 7.4% Zn, 3.1% Pb and 70 g/t Ag o Total 20.7 Mt at 7.5% Zn, 4.2% Pb and 82 g/t Ag
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 32. Events after the reporting period (continued) 70 No other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. Note 33. Cash flow information Reconciliation of loss after income tax to net cash used in operating activities Consolidated 2026 2025 $ $ Loss after income tax expense for the year (47,042,826) (47,848,266) Adjustments for: Depreciation and amortisation 10,080,047 3,323,169 Share-based payments 60,886 126,624 Write off of assets - 567,524 Net gain on disposal of non-current assets (8,335) - Finance costs - non-cash 1,317,832 1,778,707 Change in operating assets and liabilities (excluding operating assets (acquired)/assumed on asset acquisition – note 30): Decrease/(increase) in trade and other receivables (2,891) 94,714 Increase in inventories (6,735,898) (3,920,470) Increase in prepayments (356,850) (448,602) Increase in trade and other payables 17,332,242 8,550,068 Increase in contract liabilities 2,474,487 - Increase in employee benefits 1,074,157 933,057 Net cash used in operating activities (21,807,149) (36,843,475) Changes in liabilities arising from financing activities Lease liabilities Borrowings Consolidated $ $ Balance at 1 July 2024 - 2,505,512 Net cash from/(used in) financing activities (498,208) 13,604,149 Equity-settled (note 20) - (1,400,000) Acquisition of plant and equipment by means of leases - 9,894,588 Acquisition of leases 2,623,970 - Balance at 30 June 2025 2,125,762 24,604,249 Net cash used in financing activities (1,266,672) (5,562,107) Acquisition of plant and equipment by means of leases - 7,589,583 Acquisition of leases 505,889 - Other changes - (180,554) Balance at 30 June 2026 1,364,979 26,451,171
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 71 Note 34. Earnings per share Consolidated 2026 2025 $ $ Loss after income tax attributable to the owners of Polymetals Resources Ltd (47,042,826) (47,848,266) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 290,353,195 213,908,060 Weighted average number of ordinary shares used in calculating diluted earnings per share 290,353,195 213,908,060 Cents Cents Basic earnings per share (16.2) (22.4) Diluted earnings per share (16.2) (22.4) Note 35. Share-based payments A Loan Funded Share Plan (the plan) has been established by the consolidated entity whereby the consolidated entity may, at the discretion of the Board, grant Restricted Shares in the Company to certain key management personnel of the consolidated entity. The Plan was established to attract, motivate and retain current and prospective directors, employees and certain contractors of the consolidated entity and provide them with an incentive to deliver growth and value to all shareholders. On 5 September 2024, the Company granted 3,525,000 loan- funded shares under the plan, split between 15 staff including the Board, Executives and Senior Management. The options vest in the following circumstances: ● 25% upon drawdown of a debt facility to fund the restart of the Endeavor Mine ● 25% upon the Company’s shares trading at a 30-day VWAP above $0.50 ● 25% upon first zinc or silver-lead concentrate shipment from the Endeavor Mine ● 25% upon exchange of Endeavor Mine Environmental Rehabilitation Bonds The exercise conditions are as follows: ● Exercise price of $0.35 per share ● 3-year term ● Participants must remain engaged with the Company throughout the 3-year term ● 100% of options vest in the event of a change of control transaction Under Accounting Standard AASB 2 Share- based Payment, the issuance of these shares has been accounted for as an in-substance option award. The fair value of these equity instruments was assessed by Directors based on an independent valuation (using an option- pricing model) and were recorded in the Share- based payments reserve (note 21). The total fair value of the in-substance options at grant date was $191,914. On 19 December 2024 and 19 December 2025 respectively, 1,762,500 and 743,750 loan- funded shares vested and were issued. The loans are repayable only from the proceeds of the sale of the shares or their market value at the time of repayment. Due to an ASX reporting breach, the Company obtained shareholder approval to implement a selective buy-back of the loan-funded shares to Directors (being 250,000 issued to David Sproule, 187,500 to Alistair Barton, and 125,000 to Jess Oram). The 562,500 loan funded shares were bought back and cancelled by the Company and the corresponding Company-provided loans were cancelled.
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Polymetals Resources Ltd Notes to the consolidated financial statements 30 June 2026 Note 35. Share-based payments (continued) 72 The fair value of the share-based payment expense is recognised in profit or loss over the vesting period. As at 30 June 2026, after the selective buy-back, the total number of shares exercised under the plan was 1,943,750, the outstanding loan balance was $468,563 and 618,750 loan-funded shares had not yet vested. On 6 August 2026, 618,750 of the remaining loan-funded shares vested and were issued (refer note 32). Other share options As required under the Ocean Partners UK Ltd loan facility, on 13 September 2024 the consolidated entity issued 2,500,000 share options to Ocean Partners UK Ltd with an exercise price of $1.00 that expire on 23 November 2026. On 5 December 2025, Ocean Partners exercised 1,250,000 of the share options at $1.00 per share. Number of options Weighted average exercise price Number of options Weighted average exercise price 2026 2026 2025 2025 Outstanding at the beginning of the financial year 4,262,500 $0.73 - $0.00 Granted - $0.00 6,025,000 $0.62 Exercised (1,993,750) $0.76 (1,762,500) $0.35 Expired (400,000) $0.35 - $0.00 Outstanding at the end of the financial year 1,868,750 $0.78 4,262,500 $0.73 Exercisable at the end of the financial year 1,250,000 $1.00 4,262,500 $0.73 The weighted average remaining contractual life of options outstanding at the end of the 2026 financial year was 0.66 years (2025: 1.86 years)
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Polymetals Resources Ltd Consolidated entity disclosure statement As at 30 June 2026 73 Basis of preparation The Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001. It includes certain information for each entity that was part of the consolidated entity at the end of the financial year. Determination of tax residency Section 295 (3A) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997. The determination of tax residency involves judgment as there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the consolidated entity has applied the following interpretations: (a) Australian tax residency The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner's public guidance in Tax Ruling TR 2018/5. (b) Foreign tax residency Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in determining tax residency and ensure compliance with applicable foreign tax legislation. Place formed / Ownership interest Entity name Entity type Country of incorporation % Tax residency Polymetals Resources Ltd (parent entity) Body corporate Australia Australia Golden Guinea Resources SARL Body corporate Guinea, Africa 100% Guinea Société Oro Tree Guinea Resources SARL Body corporate Guinea, Africa 100% Guinea Orana Minerals Pty Ltd Body corporate Australia 100% Australia Cobar Metals Pty Ltd Body corporate Australia 100% Australia Cobar Operations Pty Ltd Body corporate Australia 100% Australia Endeavor Operations Pty Ltd Body corporate Australia 100% Australia Polymetals (Endeavor) Pty Ltd Body corporate Australia 100% Australia Polymetals Rehabilitation Pty Ltd Body corporate Australia 100% Australia
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Polymetals Resources Ltd Directors' declaration 30 June 2026 74 In the directors' opinion: ● the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; ● the attached financial statements and notes comply with IFRS Accounting Standards as issued by the International Accounting Standards Board as described in note 1 to the financial statements; ● the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30 June 2026 and of its performance for the financial year ended on that date; ● there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and ● the information disclosed in the attached consolidated entity disclosure statement is true and correct. The directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ David Sproule Executive Chairman 8 September 2026
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RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation RSM Australia Partners Level 27, 120 Collins Street Melbourne VIC 3000 PO Box 248 Collins Street West VIC 8007 T +61 (0) 3 9286 8000 F +61 (0) 3 9286 8199 www.rsm.com.au INDEPENDE NT AUDITOR’S REPORT To the Members of Polymetals Resources Ltd REPORT ON THE AUDIT OF THE FINANCIAL REPORT Opinion We have audited the financial report of Polymetals Resources Ltd (‘the Company’) and its subsidiaries (together ‘the Consolidated entity ’), which comprises the consolidated statement of financial position as at 30 June 2026 , the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement and the directors' declaration. In our opinion the accompanying financial report of the Consolidated entity is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Consolidated entity's financial position as at 30 June 202 6 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Consolidated entity 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 our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion 75
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Material Uncertainty Related to Going Concern We draw attention to Note 1 in the financial report, which indicates that during the year ended 30 June 2026 the Consolidated entity incurred a loss after tax of $47,042,826 and had net cash outflows from operating and investing activities of $21,807,149 and $9,257,841, respectively. As at 30 June 2026, the Consolidated entity’s current liabilities exceeded its current assets by $28,129,672. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Consolidated entity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. Key Audit Matter How our audit addressed this matter Revenue recognition Refer to Note 4 to the financial statements The financial year ended 30 June 2026 is the first year in which Polymetals generated revenue, following the commencement of production and first shipments in July 2025. Revenue for the year ended 30 June 2026 amounted to $100 million (2025: nil). Revenue recognition was considered a key audit matter due to the significant o f the transactions and because the complexity and management’s judgements involve in its determination, including: • Identification of the different performance • obligations in the offtake agreement; • Determination of the timing of meeting the performance obligations under the offtake agreement; and • The estimation of variation in the final sale price. Our audit procedures in relation to the recognition of revenue included: • Assessing whether the Consolidated entity’s revenue recognition policies are in compliance with AASB 15 Revenue from Contracts with Customers . Along with other procedures, our audit included reviewing the offtake agreements to understand terms and conditions of sale, the performance obligations involved and the timing of meeting the performance obligations; • Evaluating the appropriateness of the design of the internal controls related to revenue recognition, including walk-through testing; • Performing tests of detail transaction to test the validity and accuracy of revenue transactions and corroborating the appropriate of the revenue recognition; • Performing cut -off testing to ensure that revenues were recorded in the appropriate period; and • Assessing the appropriateness of the disclosures in the financial report. 76
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Key Audit Matters (continued) Key Audit Matter How our audit addressed this matter Carrying value of Property, plant and equipment Refer to Notes 11 to the financial statements As at 30 June 202 6, the Consolidated entity had significant Property, plant and equipment , which relates mainly to plant and equipment and mining assets at the Endeavor mine. During the year ended 30 June 2026 , the Consolidated entity incurred a net loss of $47 million and had net cash outflows from operating and investing activities of $31 million. Given consideration to the requirements of AASB 136 Impairment of Assets, management conducted an impairment test to estimate the recoverable amount the cash generating unit (‘CGU’) Property, plant and equipment belongs to. The recoverable amount was determined based on the value-in-use calculation and it was then compared to the CGU's carrying amount. We consider this to be a key audit matter due to the significance of these assets (approx. 55% of the Consolidated entity’s total assets) and the significant management’s judgments and estimates involved in: • calculating the value in use for the CGU using a discounted cash flow model. This model used cash flows (estimation of the future underlying cashflows of the CGU); and • the use of a discount rate to estimate the net present value of these cashflows using the entity’s weighted average cost of capital (‘WACC’). Our audi t procedures included, among others: • Assessing management’s determination that Property, plant and equipment should be allocated to a single CGU based on the nature of the Consolidated entity’s business and because it does not generate cashflows largely independent from other assets of the Consolidated entity; • Evaluating the valuation methodology used to determine the recoverable amount of the CGU. This included: o Holding discussions with management, reviewing ASX announcements and minutes of the directors' meetings to gather information regarding the operations, as well as the plans and expectations going forward; o Corroborating the mathematical accuracy of the cash flow model, and reconciling input data to supporting evidence, such as approved budgets and considering the reasonableness of these budgets; o Challenging the reasonableness of key assumptions, including the cash flow projections, expected revenue growth, exchange rates and sensitivities used; and o In conjunction with our Corporate Finance experts, we assessed the appropriateness of the discount factor used for the estimation of the recoverable amount. 77
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Key Audit Matters (continued) Key Audit Matter How our audit addressed this matter Provision for rehabilitation Refer to Notes 19 in the financial statements As at 30 June 2026, the Consolidated entity’s provision for rehabilitation costs to reinstate the disturbed area of the Endeavor Mine amounted to $31 million, which was determined by an assessment conducted during the year of the work required to rehabilitate all areas of disturbance. The provision for rehabilitation represents the estimates of the cost required to rehabilitate the areas of disturbance, including surface infrastructure, buildings, underground mine workings and underground entries. The provision for site rehabilitation was considered a key audit matter due to the materiality of this liability , the significant management’s judgements and estimation s involved, as well as the complexity in the quantification of it. Our audit procedures included, among others: • Obtaining the calculations for the provision for site rehabilitation and verifying that the methodology used is in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets; • Evaluating the competence, capabilities and objectivity of management’s expert involved in determining the rehabilitation cost estimate; • Obtaining an understanding of the process involved in the determination of the site rehabilitation liability, including the reasonableness for changes during the period; • Assessing the reasonable of key assumptions used in the calculations , and testing the accounting journals to account for the movement unwinding of the discount of the provision; and • Reviewing the appropriateness of the disclosures included in the financial statements in relation to the provision for site rehabilitation. Other Information The directors are responsible for the other information. The other information comprises the information included in the Consolidated entity 's annual report for the year ended 30 June 2026; but does not include the financial report and the auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 78
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Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of: a. the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and b. the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: i. the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ii. the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Consolidated entity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Consolidated entity or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf This description forms part of our auditor's report. REPORT ON THE REMUNERATION REPORT Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 25 to 30 of the directors' report for the year ended 30 June 2026. In our opinion, the Remuneration Report of Polymetals Resources Ltd, for the year ended 30 June 2026, complies with section 300A of the Corporations Act 2001. 79
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REPORT ON THE REMUNERATION REPORT (continued) Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. RSM AUSTRAL IA PARTNERS R J MORILLO MALDONADO Partner Melbourne, VIC Dated: 8 September 2026 80
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Polymetals Resources Ltd Shareholder information 30 June 2026 81 The shareholder information set out below was applicable as at 30 July 2026 D is tribution of equitable securities Analysis of number of equitable security holders by size of holding: Ordinary shares % of total Number shares of holders issued 1 to 1,000 594 0.13 1,001 to 5,000 1,114 0.99 5,001 to 10,000 560 1.44 10,001 to 100,000 801 8.01 100,001 and over 174 89.43 3,243 100.00 Holding less than a marketable parcel 291 0.04 E quity security holders T wenty largest quoted equity security holders The names of the twenty largest security holders of quoted equity securities are listed below: Ordinary shares % of total shares Number held issued HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 49,189,668 15.93 MEADOWHEAD INVESTMENTS PTY LTD 25,698,697 8.32 DEERING NOMINEES PTY LTD 21,537,348 6.98 MEADOWHEAD INVESTMENTS PTY LTD 20,034,931 6.49 BNP PARIBAS NOMINESS PTY LTD - IB AU NOMS RETAILCLIENT 15,285,909 4.95 P & D SUPER AUSTRALIA PTY LTD - P & D SUPER FUND 10,747,153 3.48 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 10,492,881 3.40 MR STEPHEN LEE JACKSON 9,230,162 2.99 BNP PARIBAS NOMS PTY LTD - GLOBAL MARKETS 8,311,970 2.69 BNP PARIBAS NOMS PTY LTD 7,767,081 2.52 CITICORP NOMINEES PTY LIMITED 7,705,516 2.50 TA SECURITIES HOLDINGS BERHAD 5,333,935 1.73 METALS ACQUISITION CORP. (AUSTRALIA) PTY LTD 5,327,479 1.73 OCEAN PARTNERS UK LIMITED 4,875,000 1.58 MR PAUL ROBERT MCCALLUM 3,146,078 1.02 ANG HUI YING 2,662,938 0.86 AGUIBOU BAH 2,293,472 0.74 SPROULE SUPER FUND PTY LTD - SPROULE SUPER FUND A/C 2,162,500 0.70 DEERING NOMINESS PTY LTD - THE DEERING FAMILY A/C 2,142,194 0.69 MR BRIAN DONALD ROEBIG 2,008,000 0.65 215,952,912 69.95 U nquoted equity securities There are no unquoted equity securities.
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Polymetals Resources Ltd Shareholder information 30 June 2026 82 Substantial holders Substantial holders in the Company are set out below: Ordinary shares % of total shares Number held issued HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 49,189,668 15.93 MEADOWHEAD INVESTMENTS PTY LTD 25,698,697 8.32 DEERING NOMINEES PTY LTD 21,537,348 6.98 MEADOWHEAD INVESTMENTS PTY LTD 20,034,931 6.49 V oting rights The voting rights attached to ordinary shares are set out below: O rdinary shares On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. T here are no other classes of equity securities. T enements A s at the date of this report, the Company has an interest in the following tenements: Tenement Holder % Interest Expiry date Area km2 ELA 7027 Polymetals 100 236 EL 5785 Polymetals 100 05/10/2027 765 EL 8583 Polymetals 100 02/06/2029 295 EL 8762 Polymetals 100 27/06/2027 29 ML 158 Polymetals 100 12/03/2028 3 ML 159 Polymetals 100 12/03/2028 3 ML 160 Polymetals 100 12/03/2028 3 ML 161 Polymetals 100 12/03/2028 3 ML 930 Polymetals 100 20/05/2028 30
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Polymetals Resources Ltd Shareholder information 30 June 2026 82 info@polymetals.com polymetals.com Polymetals Resources Limited ACN 644 736 247 ASX POL Registered Office Solution Accountants 627 Stafford Road Stafford Qld 4053