Annual report
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Silex Systems Limited Annual Report 2026 Annual Report 2026
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Silex Annual Report 2026 2 Highlights and Progress 4 Our ESG Commitment 6 Chair’s and CEO’s Report 10 About Silex 26 Directors’ Report 46 Auditor’s Independence Declaration 47 Corporate Governance Statement 48 Annual Financial Report 86 Consolidated entity disclosure statement 87 Directors’ declaration 88 Independent auditor’s report 93 Shareholder Information 95 Corporate Directory About Silex Systems Limited (ASX: SLX) (OTCQX: SILXY) Silex Systems Limited ABN 69 003 372 067 (Silex or the Company) is a technology commercialisation company, the primary asset of which is the SILEX laser enrichment technology (SILEX technology), originally developed at the Company’s technology facility in Sydney, Australia. The SILEX technology has been under development for uranium enrichment jointly with 51% owned US-based exclusive licensee, Global Laser Enrichment LLC (GLE), for a number of years. Success of the SILEX uranium enrichment technology development program and the proposed Paducah commercial project remain subject to a number of factors, including the satisfactory completion of the SILEX technology maturation program, nuclear fuel market conditions, industry and government support, project feasibility, and commercial plant licensing, and, therefore, remains subject to associated risks. Silex also is at various stages of development of additional commercial applications of the SILEX technology, including the production of ‘Quantum Silicon’ (Q-Si) for the emerging technology of silicon-based quantum computing. The Q-Si Project remains dependent on the outcomes of the Project, as well as the successful development of silicon-based quantum computing technology by third parties, and is, therefore, subject to various risks. Silex is also conducting early- stage research activities in its Stable Isotope Project (SIP), which focuses on additional enriched isotopes required for semiconductor and medical applications and is also subject to various risks and outcomes. The commercial future of the SILEX technology in application to uranium, silicon, stable, and other isotopes therefore is uncertain, and any plans for commercial deployment are speculative. Forward Looking Statements The commercial potential of the abovementioned technologies and activities is currently unknown. Accordingly, no guarantees as to the future performance of these technologies can be made. The nature of the statements in this Report regarding the future of the SILEX technology as applied to uranium enrichment, Q-Si production, stable and other isotope separation projects, and any associated commercial prospects, including technology maturation activities and other commercialisation milestones at GLE, are forward-looking and are subject to a number of variables, including, but not limited to, known and unknown risks, contingencies, and assumptions that may be beyond the control of Silex, its directors, and management. You should not place reliance on any forward- looking statements as actual results could be materially different from those expressed or implied by such forward-looking statements, as a result of various risk factors. Further, the forward-looking statements contained in this disclosure involve subjective judgement and analysis and, accordingly, are subject to: change at any time due to variations in the outlook for, and management of, Silex’s business activities (including project outcomes); changes in industry trends and government policies; and new or unforeseen circumstances. The Company’s management believes that there are reasonable grounds to make such statements as at the date of this disclosure. Silex does not intend, and is not obligated, to update the forward-looking statements except to the extent required by law or the ASX Listing Rules. None of Silex, its related companies, or any of their respective officers, directors, employees, affiliates, partners, representatives, consultants, agents, or advisers makes any representation or warranty as to the accuracy of any forward-looking statements contained in this Report. Not Advice Information in this Report, including forecast financial information, should not be considered as investment, legal, tax, or other advice. You should make your own assessment and seek independent professional advice in connection with any investment decision. Risk Factors Risk factors that could affect the future results and commercial prospects of Silex include, but are not limited to: ongoing economic and social uncertainty, including in relation to global economic stresses, such as interest rates; inflation; tariffs (including tariffs imposed by the United States); geopolitical risks, in particular, those relating to Russia’s invasion of Ukraine, the war between Iran and the US and tensions between China and Taiwan, which may affect global supply chains and capital markets; uncertainties related to the effects of climate change and mitigation efforts; the results of the GLE/SILEX uranium enrichment technology maturation program; the market demand for natural uranium and enriched uranium; the outcome of the Q-Si Project for the production of enriched silicon for the emerging silicon-based quantum computing industry; the outcome of the SIP Project; the potential development of, or competition from, alternative technologies; the regulatory changes and uncertainties related to various US Government funding initiatives, the potential for third party claims against the Company’s ownership of Intellectual Property; the potential impact of prevailing laws or government regulations or policies in the US, Australia, or elsewhere; actions taken by the Company’s commercialisation partners and other stakeholders that could adversely affect the technology development programs and commercialisation strategies of Silex; and the outcomes of various strategies and projects undertaken by the Company. Important Notice Contents
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Silicon enrichment (silicon quantum computing) Uranium production and enrichment (nuclear power) Our strategy is focused on extracting maximum value from our core SILEX technology and expertise. Stable isotope enrichment (including medical isotope enrichment) Silex Systems Limited (Silex) is an Australian technology company focused on the commercialisation of its innovative SILEX laser-based enrichment technology for application to three key global markets:
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The SILEX Laser Uranium Enrichment Technology Silex’s principal focus is on the commercialisation of our unique, third-generation SILEX laser-based uranium enrichment technology for nuclear fuel production, in conjunction with 51% owned and US-based Global Laser Enrichment (GLE) who holds an exclusive licence for the SILEX technology. Global nuclear company Cameco owns the 49% remaining interest in GLE. 1. Technology Readiness Level 6 (TRL -6), as defined by DOE Technology Readiness Assessment Guide (G 413.3-4A) 2. MRL: Manufacturing Readiness Level (DOD Guide at dodmrl.com/MRL_Definitions_2010.pdf) Validation of the SILEX enrichment technology at TRL-6 In October 2025, Silex and GLE announced the conclusion of an independent, third-party validation of the SILEX enrichment technology, conducted by a leading Fortune 1000 technology provider, confirming that the technology had achieved the pivotal TRL -61 maturity level involving a large-scale (pilot plant) demonstration program at GLE’s Wilmington, NC, Test Loop facility. Milestone payment The TRL -6 achievement triggered a US$5 million milestone payment from GLE to Silex, which was received in December 2025. The PLEF Having achieved the significant TRL -6 milestone, the current focus is on design and demonstration of full-scale commercial production technology and manufacturing maturation programs (TRL -7/MRL -7)2, as well as preliminary detailed design for the first commercial plant – the Paducah Laser Enrichment Facility (PLEF). GLE’s Commercialisation plan GLE’s commercialisation plan is based on deploying the SILEX technology to re-enrich US Department of Energy (DOE) legacy inventories of high-grade depleted uranium tails to produce natural grade uranium (as UF6) at its planned PLEF, in Paducah, KY, with the aim of commencing commercial operations by 2030. Under a contract signed in 2016 with the DOE, GLE has exclusive access to over 200,000 metric tonnes of tails inventories, which will provide around 30 years of feedstock to produce the natural grade UF6 at an annual output rate equivalent to a uranium mine producing up to 5 million pounds of uranium, as well as 2 million kilograms of conversion annually. PLEF – NRC licence application GLE’s application for a licence to construct and operate the PLEF was accepted by the US Nuclear Regulatory Commission (NRC) for review in August 2025, with the NRC publishing its draft environmental impact study for the plant in March 2026. GLE continues to work with the NRC to secure the PLEF licence, with the process expected to be completed in early CY2027. PLEF – feasibility study GLE and its owners continue work to define the scope and requirements for a PLEF feasibility study and to detail the criteria for a Final Investment Decision (FID) for the world’s first commercial laser-based uranium enrichment plant. US funding In January 2026, DOE notified GLE that it had been selected for a funding award of US$28.5 million to advance next-generation laser-based uranium enrichment technology. In March 2026, GLE received preliminary approval for a comprehensive package of incentives from the Commonwealth of Kentucky and McCracken County to support the development of the PLEF, which is expected to be the single largest capital investment in Western Kentucky’s history. The performance-based incentives package will provide up to US$98.9 million in tax and other economic incentives subject to GLE reaching agreed investment and job creation thresholds. Highlights and Progress Silex Annual Report 2026 2
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Quantum Silicon (Q-Si) Technology Construction of the first full-scale Q-Si Production Plant was completed during the year at the Company’s Sydney facility, with functional integration and commissioning now advancing. Q-Si commercialisation Enriched silicon-28 in the form of high-purity Q-Si is required for next-generation silicon-based quantum computers. With sample production expected to commence in Q1 CY2027, commercial engagement with potential customers continues to increase. Other Highlights Capital raising and Share Purchase Plan A $130 million institutional placement equity raising was successfully completed on 7 August 2025, followed by the completion of a Share Purchase Plan (SPP) on 29 August 2025, with eligible applications received totalling ~$19.4 million. Cash and term deposits The Company held cash and term deposits at 30 June 2026 of ~$180.7 million, with no corporate debt. Highlights and Progress Q-Si Production Plant Silex Annual Report 2026 3
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Our ESG Commitment Our drive for success at Silex focuses on having a positive impact on our stakeholders and the world at large. Sustainability is core to our mission and values, and is achieved by prioritising the health and safety of our people and by ensuring environmental responsibility in everything we do. We are focused on safely delivering value through the responsible development and commercialisation of our technology and by continually addressing any potential social and environmental impacts of our operations. At Silex, we have a well-defined Environmental, Social and Governance (ESG) commitment, with three focus areas: Health, safety, and wellbeing At the core of our ESG commitment is the health, safety, and wellbeing of our people, as well as the safety of our operations and the communities in which we operate. We proactively manage our WHS Management System with in-house and third-party WHS specialists to ensure risks and hazards in our workplace are appropriately addressed and mitigated on a continuous basis. Furthermore, our workplace ethics are defined by respect for each other and embracing diversity and inclusion. We recognise the benefits of diversity and promoting equal opportunities at all times. Environmental responsibility We are committed to bringing innovative technologies to market that can have a positive impact on the global environment. In particular, our SILEX technology is currently focused on: – improving efficiencies and reliability in nuclear fuel production for the generation of zero-emissions electricity from nuclear power and contributing to climate change mitigation efforts; – developing sovereign capability for the production of isotopically enriched materials that are key to enabling next-generation quantum computing and other advanced technologies, including nuclear medicine cancer therapies, potentially providing disruptive tools to help address global-scale health, social, and environmental issues. At the same time, we are committed to protecting the environment in which we operate by mitigating any potential risks or impacts of our activities. Governance Silex is committed to demonstrating the highest standards of corporate governance. The Board’s focus is on enhancing the interests of shareholders and other key stakeholders while ensuring the Company is operating responsibly so that risks are effectively managed or mitigated and our operations are consistent with our ESG commitments at all times. Silex Annual Report 2026 4
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Silex Annual Report 2026 5
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Chair’s and CEO’s Report Dear Fellow Shareholders, The year ended 30 June 2026 marked an important year for Silex as we advanced our SILEX uranium enrichment technology through Technology Readiness Level 6 (TR L- 6) – successfully demonstrated at large-scale pilot plant level with full independent validation. This milestone is a pivotal achievement and represents a key technology de-risking event as our joint venture with Cameco – Global Laser Enrichment (GLE) – progresses the SILEX technology towards commercialisation in the US at a time of resurgence in the global nuclear power industry. The year also marked the completion of construction of the world’s first silicon laser-based enrichment plant at the Company’s Lucas Heights, Sydney facility – another major milestone for Silex. Our achievements this year reflect the tenacious focus of the Silex and GLE teams on execution and the strength of our leadership. The global revival of nuclear power, widely known as the ‘Nuclear Renaissance’, continues to gather momentum, driven by three key macro trends: governments’ prioritisation of energy security (as an analogue for national security); emergent decarbonisation priorities in response to climate change; and rapid electrification of the global economy stimulating surging electricity demand. These three entrenched trends are creating the strongest tailwinds that the nuclear industry has ever seen, with 38 countries signing a declaration to triple nuclear capacity by 2050 and global bank, Morgan Stanley, estimating investment in the nuclear value chain could reach US$2.2 trillion over the same period. Even these figures may turn out to be conservative, as a new wave of increasing electricity consumption from AI, data centres, and hyperscalers compounds the demand outlook for future clean energy requirements. Against this backdrop, your Company, Silex Systems, and GLE – the exclusive licensee of the SILEX laser-based uranium enrichment technology, have continued to make excellent progress in the commercialisation of the SILEX uranium enrichment technology over the course of the last year, as outlined below. We believe that the SILEX technology could make the production of nuclear fuel more efficient and cost effective compared to existing methods, and ultimately enable the nuclear renaissance to provide solutions for resilient, affordable, and sustainable carbon-free, baseload electricity generation. As noted, the highlight of the year in review was the successful achievement of the large-scale enrichment demonstration of the SILEX technology at GLE’s Test Loop facility in Wilmington, North Carolina, in October 2025. This is the first time a third-generation laser enrichment technology has been demonstrated at large-scale pilot plant level with full independent validation by a top-tier, third-party engineering consultancy. After more than two decades of world-class research, development, and engineering scale-up, this achievement represents a key de-risking event that sets Silex and GLE on a solid path to complete the maturation of the SILEX technology and prepare for commercial deployment at the planned Paducah Laser Enrichment Facility (PLEF) in Kentucky by 2030, subject to market conditions, industry support, and other factors. GLE’s owners, Silex (51%) and Cameco Corporation (49%), continue to support activities focused on two key areas: final detailed design and demonstration of the SILEX technology at full-scale commercial system performance under plant-like conditions (TRL -7); and planning for disciplined commercial deployment of the PLEF, subject to a feasibility assessment and Final Investment Decision (FID). The planned PLEF represents a unique single-site solution for US domestic production of uranium, conversion, and enrichment services. With significantly higher efficiency and orders of magnitude increase in process throughput, the SILEX technology potentially places GLE in a strong position to serve the growing Western demand for nuclear fuel. During the year, we also continued to strengthen and diversify the business case for the SILEX technology, including the recent completion of construction of the world’s first laser-based enrichment plant for commercial production of Quantum Silicon (Q-Si) at the Company’s Sydney facility, with functional integration and commissioning now advancing. Commercial engagement with potential customers for Q-Si products also increased during the reporting period. Silex Annual Report 2026 6
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Chair’s and CEO’s Report The year ended 30 June 2026 marked an important year for Silex as we advanced our SILEX uranium enrichment technology through Technology Readiness Level 6 – successfully demonstrated at large-scale pilot plant level with full independent validation. “ Craig Roy, Chair Michael Goldsworthy, CEO/Managing Director ” Silex Annual Report 2026 7
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Nuclear Fuel Markets and the Triple Opportunity Events over the past few years have had a profound impact on nuclear fuel markets, underpinned by the strong fundamentals for nuclear power as a reliable source of baseload electricity for the world’s surging clean energy needs. In particular, increasing geopolitical tensions and climate change have prompted many countries to re-prioritise government energy policy initiatives to achieve urgent decarbonisation targets and to accelerate energy security measures through sovereign energy platforms. These factors, coupled with disruptions in the Western nuclear fuel supply chain precipitated by the Russian invasion of Ukraine (and an increasingly assertive China), have resulted in market conditions and opportunities that have not previously been seen in the nuclear industry. We believe that global nuclear fuel markets will continue to undergo a fundamental bifurcation over the near term, resulting in the need for a more resilient and sustainable nuclear fuel supply chain in the Western hemisphere. This realignment could endure for decades, given the renewed focus on long-term energy security. The nuclear renaissance is in full swing, as evidenced in the granting of life extensions for existing reactors, the planned return to service of idled reactors, including restarts announced in response to surging electricity demand, and construction of, and planning for, hundreds of new nuclear power units around the world. Furthermore, it is expected that a significant proportion of the expansion in nuclear capacity may be provided by next-generation advanced reactors, including small modular reactors (SMRs), which could provide greater flexibility and lower-cost deployment. After three decades of decline of its nuclear industry, the US has moved decisively to reverse this trend and re-establish itself as the global leader in civilian nuclear power. Major legislative measures have been passed by the US Congress in recent years, and four key executive orders relating to the expansion of nuclear energy in the US were signed by President Trump in May 2025. US-based GLE could benefit materially from these initiatives as the company progresses its commercialisation plans, as outlined below. Commercialisation of the SILEX uranium enrichment technology in the US provides GLE with the unique opportunity to produce all three grades of nuclear fuel required for current and future nuclear plants at the proposed PLEF, which we call the ‘Triple Opportunity’: 1) production of natural grade uranium in the form of converted UF6; 2) production of low enriched uranium (LEU/LEU+) for conventional nuclear power plants; 3) production of high-assay LEU (HALEU) fuel for next-generation advanced reactors, including SMRs. Subject to various factors, including the successful completion of technology maturation, industry and government support, a feasibility study for the PLEF, and supportive market conditions, GLE will continue to advance its commercialisation activities to support the potential commencement of commercial operations at the PLEF by 2030. GLE’s Commercialisation Program After the completion of the large-scale pilot plant demonstration, including independent validation that TRL -6 had been achieved, GLE and Silex immediately ramped up activities in the TRL -7 program, which is focused on detailed design and demonstration of the SILEX technology with full-scale production equipment capable of benchmarking commercial system performance. At the time of writing, construction of full-scale system components was well advanced at GLE’s Test Loop facility. The TRL -7 full-scale demonstration will culminate in the final technology design for the PLEF and allow the focus to transition to a PLEF feasibility study and an FID thereafter. The TRL technology maturation scale is more fully described in the main body of this report. During the year, GLE also made considerable progress in key regulatory and commercialisation activities in parallel with the technology maturation and demonstration program. GLE’s application for a licence to construct and operate the PLEF was accepted by the Nuclear Regulatory Commission (NRC) for review in August 2025, with the NRC currently completing its review process, including the Environmental Impact Statement and Safety Evaluation Report, which, combined, form the basis of the final NRC licence for the planned commercial SILEX laser enrichment facility in Paducah, Kentucky. GLE continues to work with the NRC to finalise the licence for the PLEF as early as CY2027. Chair’s and CEO’s Report Silex Annual Report 2026 8
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The US Department of Energy (DOE) notified GLE in January 2026 that it had been selected for an award of US$28.5 million to advance next-generation laser-based uranium enrichment technology. In addition, GLE received preliminary approval in March 2026 for a comprehensive package of incentives from the Commonwealth of Kentucky and McCracken County to support the development of the PLEF. The performance-based incentives package will provide up to US$98.9 million in tax and other economic incentives subject to GLE reaching agreed investment and job creation thresholds. Preliminary site clearing works also continued during the year at GLE’s ~700-acre PLEF site, which was acquired in November 2024. The site is strategically located adjacent the DOE’s former first-generation Paducah Gaseous Diffusion Plant (PGDP) and provides access to the cylinder yards where over 200,000 metric tonnes of high-grade depleted tails inventories are stored – to be used as feed for the planned PLEF. GLE has exclusive access to this inventory, which will be used to produce natural grade UF6 with the SILEX technology at an equivalent annual output rate of up to 5 million pounds of uranium a year for ~30 years – akin to an ‘above-ground uranium mine’, with the additional output of 2 million kilograms of conversion per year. Quantum Silicon (Q-Si) Production Project In June this year, Silex completed construction of the world’s first silicon laser enrichment plant at its Sydney facility, which will shortly be deployed to produce highly enriched silicon-28. This valuable material will then be used to make Q-Si products for customers developing silicon-based quantum computers. Silex continues to engage with potential customers on- and offshore to build a customer base for the Company’s products. Sample production of initial Q-Si products is anticipated to commence in Q1 CY2027. Prioritising Health and Safety, ESG Core to our operations and values is the prioritisation of the health, safety, and wellbeing of our team members. During the year, we reported no lost time injuries – an outstanding achievement. That said, there is no complacency in the Company as the team diligently continues to manage work health and safety risks across our activities. Silex has strong Environmental, Social and Governance (ESG) credentials, and our activities at all times support our mission to be environmentally responsible. Our focus on environmental sustainability is underpinned by our aspirations in the nuclear fuel industry, which will help make zero-emissions nuclear energy more affordable and potentially lead to greater uptake of this critical technology. Furthermore, our focus on social responsibility is leveraged through our Q-Si Production Project for silicon-based quantum computers, an emerging technology that will drive innovation and support solutions to many of society’s intractable problems, such as climate change. The Silex and GLE Teams Our exceptionally talented teams at Silex and GLE are the essence of our business and at the core of our activities and achievements. Collectively, we are focused on harnessing creativity and excellence in technology innovation. We focus strongly on team retention with an attractive employee incentive plan and recruit carefully and strategically to ensure that we have the right people and expertise to deliver on our priorities and create shareholder value. We would like to congratulate the Silex and GLE teams for their commitment and tenacity in achieving the important TRL -6 milestone over the past year. We also extend our gratitude to our fellow Directors for their continued support and leadership of the Company’s strategy. In addition, we take this opportunity to thank you, our shareholders, for your ongoing support, particularly those existing and new shareholders who participated in the equity raise in August 2025. With the strongest tailwinds ever seen for the nuclear industry and the current focus on transitioning our technology from final engineering to commercial deployment, we believe the outlook for your Company is very encouraging. The potential to supply unique high-value isotopes for other global industries represents key opportunities for Silex to deliver additional long-term value for shareholders. We look forward to providing a further update at the 2026 Annual General Meeting. Craig Roy Chair 27 August 2026 Michael Goldsworthy CEO/Managing Director Chair’s and CEO’s Report Silex Annual Report 2026 9
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Our Strategy We are committed to the commercialisation of our innovative SILEX laser-based enrichment technology across multiple global markets, with a primary focus on contributing to the reliable and sustainable supply of nuclear fuel for the global nuclear power industry, a vital enabler of the world’s energy security and clean energy needs. The execution of this strategy focuses on the pursuit of the ‘Triple Opportunity’ in the global nuclear fuel supply chain, through GLE’s commercial deployment of the SILEX technology at the planned Paducah Laser Enrichment Facility (PLEF), in what could become a ‘single-site solution’ for the production of multiple grades of nuclear fuel. About Silex Silex Annual Report 2026 10
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About Silex SILEX Laser Uranium Enrichment Technology invented in Australia The SILEX laser uranium enrichment technology was invented by Silex Systems scientists Dr Michael Goldsworthy (our CEO) and Dr Horst Struve (retired), in the 1990s at Lucas Heights, Sydney. In order to facilitate the potential commercial deployment of the technology in the United States, an Agreement for Cooperation between the governments of the United States and Australia was signed in May 2000. In June 2001, the technology was officially Classified by the United States and Australian Governments, bringing the SILEX technology commercialisation project formally under the strict nuclear safeguards, security, and regulatory protocols of each country. Since 2006, the development and commercialisation program for the SILEX uranium enrichment technology has been undertaken jointly by Silex (at its Lucas Heights, Sydney facility) and US-based GLE – the exclusive licensee and commercialisation vehicle for the SILEX uranium enrichment technology (with sites in Wilmington, NC and Paducah, KY). GLE is a jointly-controlled venture between Silex and Canadian-based Cameco Corporation, one of the world’s leading uranium producers and nuclear fuel suppliers, with 51% and 49% ownership interest respectively. The Nuclear Fuel Supply Chain Uranium production, conversion, and enrichment are the key value drivers of the nuclear fuel supply chain, accounting for nearly 85% of the value of a reactor fuel bundle. Importantly, successful commercialisation of the SILEX uranium enrichment technology through GLE could create leverage into all three of these nuclear fuel supply chain sectors, and could enable the SILEX technology to become a unique, nuclear fuel production platform for existing and emerging nuclear power generation systems. Silex Annual Report 2026 11 The Nuclear Fuel Supply Chain Zero-Emissions Electricity Uranium Production Power Distribution Conversion Power Plant Enrichment Fuel Fabrication SILEX/GLE Other
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About Silex Uranium Enrichment Naturally occurring uranium consists of two main isotopes, U235 and U238. Nuclear energy is produced by the splitting (or ‘fissioning’) of the U235 atoms. Natural uranium is made up of ~0.7% of the ‘active’ U235 isotope, with the balance (~99.3%) comprised of the inactive U238 isotope. Uranium enrichment is the process of concentrating or ‘enriching’ the U235 isotope for use as fuel in a conventional nuclear power reactor. Enrichment is a technically difficult process and accounts for around 30% of the cost of nuclear fuel and approximately 5% of the total cost of the electricity generated by nuclear power. The Separation of Isotopes by Laser EXcitation (SILEX) process is the only third-generation enrichment technology known to be in the advanced stages of commercial development today. The SILEX technology can effectively enrich uranium through highly selective laser excitation of the 235UF6 isotopic molecule to produce ‘reactor fuel grade’ uranium, which contains an assay of U235 of around 5%. Uranium hexafluoride (UF6) is the fluorinated gaseous form of uranium, which is made via chemical conversion from the uranium oxide produced by miners. The two methods of uranium enrichment used to date are Gas Diffusion (first generation – obsolete) and Gas Centrifuge (second generation). Silex’s third-generation laser-based process provides much higher enrichment process efficiency and throughput compared to these earlier methods, potentially offering lower overall costs. Key features of the SILEX Uranium Enrichment Technology The SILEX technology is a unique laser-based process that has the potential to economically separate uranium isotopes (as well as other commercially valuable isotopes). It has a number of advantages over other uranium enrichment processes, including: – inherently higher efficiency and throughput, resulting in lower enrichment costs; – smaller environmental footprint than centrifuge and diffusion plants; – greater flexibility in producing fuels for advanced reactors, including SMRs; and – anticipated lowest capital costs. Evolution of Enrichment Technology SILEX laser process higher separation efficiency and throughput vs centrifuge technology 1st Generation Technology 2nd Generation Technology 3rd Generation Technology Silex Annual Report 2026 12
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About Silex GLE’s planned PLEF represents a unique single-site solution for US domestic production of natural grade uranium, conversion, and enrichment services with the flexibility to produce NUF6, LEU, LEU+, and HALEU in the future. SILEX Uranium Enrichment for Nuclear Fuel Production Overview and Future Prospects The ‘Triple Opportunity’ for GLE and the SILEX Uranium Enrichment Technology GLE’s path to market is focused on its potential to address the ‘Triple Opportunity’ for nuclear fuel production, which is being driven by geopolitical and environmental developments that are transforming the global nuclear fuel supply chain. The ‘Triple Opportunity’ specifically involves GLE’s potential production of three different grades of nuclear fuel in the US, commencing with natural UF6 production at the planned PLEF: Low-enriched Uranium (LEU) Production of LEU (U235 assays up to 5%) and LEU+ (assays from 5% to 10%), achieved with additional SILEX enrichment capacity – to supply fuel for existing and future large-scale conventional and advanced reactors UF6 Production of natural grade uranium hexafluoride (NUF6) (with U235 assays of 0.7%) via enrichment of depleted UF6 tails (U235 assays of 0.25% to 0.5%) with the SILEX technology. Since the tails are already converted, this would also help to alleviate UF6 conversion supply pressures 1. 2. 3. High-Assay, Low-enriched Uranium (HALEU) Production of HALEU (U235 assays up to ~20%) via further enrichment with the SILEX technology – to supply fuel for next-generation advanced reactors, including small modular reactors including SMRs NUF6 Natural Grade Uranium (as UF6) LEU Low-enriched Uranium HALEU High Assay LEU Silex Annual Report 2026 13
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Paducah Laser Enrichment Facility (PLEF) – ~700-acre site strategically located adjacent to the US DOE’s former Paducah Gaseous Diffusion Plant (PGDP) – Tails processing project ‘equivalent to an above-ground uranium mine’, with potential production of up to 5 million lbs p.a. for up to 30 years (as UF6) and 2 million kgs p.a. conversion capacity – PLEF is a potential single-site solution for US uranium, conversion, and enrichment services GLE Headquarters and Test Loop Facility – Currently operating in Wilmington, NC – Large-scale enrichment demonstration completed – key technology de-risking milestone (TRL -6) – Wilmington classified manufacturing facility PADUCAH, KY WILMINGTON, NC About Silex GLE is the exclusive licensee of the SILEX uranium enrichment technology. GLE is a jointly-controlled venture between Silex (51%) and global uranium and nuclear fuel provider, Cameco Corporation (49%). GLE’s exclusive worldwide licence to commercialise the SILEX technology for uranium enrichment is founded on the 2006 Technology Commercialisation and Licence Agreement, amended in 2021. The technology commercialisation project is being conducted jointly at GLE’s Wilmington, NC facilities and at Silex’s Sydney facility. GLE is the only company in the world to be operating large-scale, third-generation laser-based uranium enrichment technology under plant-like conditions (i.e., at TRL -6, with full independent validation of TRL -6 achievement provided by a leading Fortune 1000 technology provider in October 2025). GLE and Silex remain focused on the TRL -7 program, which will result in the detailed design and demonstration of the SILEX technology with full-scale production equipment capable of benchmarking commercial system performance. The TRL index is a globally accepted benchmarking tool for tracking progress in the development and maturation of a new technology through the early-stage blue sky research (TRL -1) to actual system operation over the full range of expected conditions and initial commercial operations (TRL -9). In general terms, TRL -6 represents the pivotal demonstration of large-scale systems in a pilot plant facility. The reference document used by GLE is the US DOE Technology Readiness Assessment Guide (G413.3-4A). Also used is the Manufacturing Readiness Level (MRL) scale, which addresses the maturity of manufacturing capability and supply chains for the establishment of commercial production capacity. GLE – the commercialisation vehicle for the SILEX laser-based Uranium Enrichment Technology Silex Annual Report 2026 14 Technology Readiness Level (TRL)1 Framework 1. Technology Readiness Level (TRL), as defined by DOE Technology Readiness Assessment Guide (G413.3-4A) 2. All scheduling estimates shown are tentative and subject to change and/or unforeseen delays
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About Silex During the year, GLE made considerable progress in key commercialisation activities for the PLEF in parallel with the completion of the TRL -6 demonstration program: – Currently progressing towards advancing technology maturation (TRL -7) and manufacturing activities (MRL -7), including the continued expansion of in-house manufacturing capabilities at GLE’s headquarters in Wilmington, NC; – Continued development of supply chains, with outreach to vendors, identification of long-lead procurement items, and planning for onshoring of critical component and system manufacture; – Preliminary site works, including initial site clearing and electrical supply infrastructure at GLE’s PLEF site in Western Kentucky; – Continued work with the NRC to support its licence assessment for the planned PLEF, which is expected to be completed in early CY2027. The NRC completed its acceptance review of GLE’s licence application in August 2025 and published its draft environmental impact study for the PLEF in March 2026. GLE is first in line with the NRC for licence approval, which would provide GLE with the required licence to construct and operate the PLEF; – The DOE notified GLE in January 2026 that it had been selected for a funding award of US$28.5 million to advance next-generation laser-based uranium enrichment technology. In addition, GLE received preliminary approval in March 2026 for a comprehensive package of incentives from the Commonwealth of Kentucky and McCracken County to support the development of the PLEF. The performance-based incentives package will provide up to US$98.9 million in tax and other economic incentives subject to GLE reaching agreed investment and job creation thresholds; – Extensive engagement with the Wilmington, NC, and Paducah, KY, communities, including GLE’s provision of support for local economic and business development and the expansion of regional education and training programs to enable future GLE workforce development, as well as relationship building and stakeholder engagement. Notably, GLE, hosted ‘open house’ sessions with the Paducah community to answer community members’ questions about the planned PLEF. Subject to various factors, including industry and government support, a feasibility study for the PLEF, and supportive market conditions and other factors, GLE will continue to advance these commercialisation activities in order to support the potential commencement of commercial operations at the PLEF by 2030. The SILEX Technology Commercialisation and Licence Agreement with GLE The Technology Commercialisation and Licence Agreement between Silex and GLE is an exclusive worldwide licence for exploitation of the SILEX technology for uranium enrichment. The Licence Agreement is independent of Silex’s 51% equity interest in GLE and related commercial benefits flowing from that equity interest. The Licence Agreement includes royalty revenues and milestone payments to Silex as follows: Licence Agreement Royalty Revenues and Milestone Payments 7%+ Perpetual Royalty Of a minimum of 7% on GLE’s enrichment SWU revenues from use of the SILEX technology US$20M in Milestone Payments* Triggered by commercial development milestones * TRL -6 achievement triggered a US$5m Milestone Payment from GLE to Silex, which was received in December 2025. The Licence Agreement provides for a further US$15m in Milestone Payments. The Cameco Option Silex and Cameco have agreed terms on a call option for Cameco to purchase from Silex, at fair market value, an additional 26% interest in GLE, potentially increasing Cameco’s interest to 75% (subject to US Government approvals). This option opened in February 2023 and can be exercised by Cameco up until April 2028. Silex Annual Report 2026 15 GLE’s Indicative Target Commercialisation Timeline1 1. Indicative target timeline subject to schedule risks, such as technology maturation outcomes, market conditions, licensing, industry and government support, PLEF feasibility assessment, unforeseen delays, and other factors, and may vary according to changing circumstances and differing scenarios 2. Technology Readiness Level 6 (TRL -6), as defined by DOE Technology Readiness Assessment Guide (G413.3-4A) 3. MRL: Manufacturing Readiness Level (DOD Guide at dodmrl.com/MRL_Definitions_2010.pdf) 4. NRC: Nuclear Regulatory Commission 5. PLEF: Paducah Laser Enrichment Facility 6. FID: Final Investment Decision 7. EPC: Engineering, Procurement, and Construction of commercial plant
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About Silex PLEF Commercial Plant Opportunities GLE’s PLEF – Competitive Edge from a Potential Single-site Solution The PLEF is the only potential single-site solution for US-based uranium, conversion, and enrichment production. GLE’s planned annual NUF6 production of up to 2,000 MTU equates to the supply of around 10% of the current US uranium and conversion demand for the US nuclear reactor fleet. This also represents a nearly tenfold increase in US domestic natural uranium output, significantly enhancing US national energy security and fuel independence. The initial PLEF commercial plant opportunity is underpinned by a 2016 agreement between GLE and the DOE, which, through the acquisition of over 200,000 metric tonnes of high-grade depleted tails owned by the DOE, provides the feedstock for the production of natural grade UF6 for up to 30 years. The output of the proposed plant would be sold at an expected production rate equivalent to a uranium mine with an annual output of up to 5 million pounds of uranium oxide, which would rank in the top 10 of today’s uranium mines. Preliminary analysis by Silex of PLEF UF6 production indicates it could rank equal to a ‘Tier 1’ uranium project based on current estimates of longevity and low cost of production. Silex Annual Report 2026 16 Source: GLE, PLEF Commercial Plant (conceptual) PLEF Commercial Plant Opportunities HALEU ~15 MTU PLEF NUF6 ~2,000 MTU AS NUF6 POTENTIAL FUTURE EXPANSION LEU/ LEU+ GLE’s PLEF in the Nuclear Fuel Supply Chain Uranium Production, Conversion and Enrichment Zero-Emissions Electricity Power Distribution Power Plant Fuel Fabrication Production Conversion Enrichment PLEF LEU 2MSWU AND UP TO 6MSWU
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About Silex GLE’s NRC Licence Application for the PLEF GLE’s application for a licence to construct and operate the PLEF was accepted by the Nuclear Regulatory Commission (NRC) for review in August 2025. At the time of writing, the NRC’s review process is ongoing, including the preparation of the Environmental Impact Statement and Safety Evaluation Report, which, when combined, will form the basis of the final NRC licence for the planned PLEF. If, as is expected, GLE is granted the licence, it will be permitted to construct up to 8 million Separative Work Units (SWU) at the PLEF to produce NUF 6 and then LEU and, potentially, LEU+. SILEX uranium enrichment technology commercialisation The joint owners of GLE continue to take a considered approach to the SILEX uranium enrichment technology commercialisation program in line with current market conditions and opportunities. Ultimately, the future of the technology and likelihood of success in the remaining commercialisation program is dependent on the continued growth in the global markets for natural and enriched uranium. Commercialisation of the SILEX uranium enrichment technology therefore remains subject to these and other risks. GLE’s NRC Licence Application for the PLEF, 2 July 2025 From Left to Right: Stephen Long (GLE: Chief Executive Officer), Scott Steuer (GLE: Project Director), Jesus Diaz-Quiroz (GLE: ISA Manager), Nima Ashkeboussi (GLE: VP Government Relations and Communications), Timothy Knowles (GLE: Licensing & Regulatory Affairs Manager), Matt Bartlett (NRC: Sr. Project Manager, Fuel Cycle Licensing Branch), Samantha Lav (NRC: Chief, Fuel Cycle Licensing Branch), Robert Sun (NRC: Environmental Project Management Branch 2), Shana Helton (NRC: Director, Division of Fuel Management), Andrea Kock (NRC: Acting Officer Director, Nuclear Material Safety and Safeguards), and Kimyata Morgan-Butler (NRC: Acting Director, Division of Rulemaking, Environmental and Financial Support) PLEF Site Clearing, Paducah, KYPLEF Feedstock: DOE Depleted Uranium Tails, Paducah, KY Source: US DOE Office of Environmental Management, 2025 Silex Annual Report 2026 17
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About Silex Nuclear power is playing an increasingly important role in the supply of carbon-free, baseload electricity, and is anticipated to play a much greater role in the global energy mix as countries around the world adopt policies to meet more urgent net-zero emissions targets and race to assure their energy security and energy fuel supply chains. There is strong global growth in demand for nuclear power, as evidenced in the granting of life extensions for existing reactors, the planned return to service of idled reactors, including restarts announced in response to growing electricity demand from AI and data centres (‘hyperscalers’), as well as construction of, and planning for, hundreds of new nuclear power units around the world. The Declaration to Triple Nuclear Energy, launched at COP28 in Dubai in 2023 and now signed by 38 countries, established a 1,200 GWe nuclear capacity expansion target by 2050. The World Nuclear Association’s January 2026 World Nuclear Outlook Report concluded that total nuclear capacity could reach 1,446 GWe by 2050 when considering current operable reactors, reactors under construction, planned, proposed, and potential reactors, together with current government targets. Today, there are 440 operable reactors globally, 79 reactors currently under construction, with a further 120 reactors planned and 327 proposed. The US is currently the largest producer of nuclear power in the world, with ~30% of global nuclear generation today. Nuclear power in the US represents ~20% of its total electricity production across 28 states. The US government set targets in 2025 to quadruple nuclear power capacity by 2050, to ~400 GWe from the current capacity of ~100 GWe, underscoring the expected continued importance of nuclear in the production of energy in the US. In pursuit of the US Government’s objectives, an US$80 billion strategic partnership between the US Department of Commerce, Westinghouse, and its owners, Brookfield Asset Management and Cameco, was announced in October 2025, with a plan outlined to deploy a new fleet of Westinghouse AP1000 nuclear reactors across the United States. Furthermore, in June 2026, the US DOE announced a conditional loan commitment to finance the purchase of long-lead time items needed to rebuild America’s commercial nuclear supply chain. The US$17.5 billion American Nuclear Supply Chain Loans will help to finance the construction of 10 Westinghouse AP1000 reactor units across five sites in the US, with each reactor generating 1.1 GW electrical power output. There also is significant international investment in the development of next-generation advanced reactor technologies, including SMRs. With substantial growth forecast in the demand for electricity, SMRs, with their anticipated lower build costs, reduced construction times, smaller footprints, inherent safety features, and ability to load follow, offer greater flexibility and grid stability, particularly with today’s electricity grids relying more heavily on disperse, intermittent renewable energy sources. In the new age of electrification of the global economy and in a carbon-constrained and geopolitically challenged world, we are greatly encouraged by the outlook for zero-emissions nuclear energy and the multiple opportunities for the SILEX uranium enrichment technology and GLE. Nuclear Power Outlook Silex Annual Report 2026 18 World Nuclear Reactor Population Source: WNA Nuclear Power Reactors & Uranium Requirements, July 2026 440 120 79 327 966 Total Potential ReactorsProposedPlannedUnder ConstructionOperable
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About Silex Over the last three decades, global energy markets have become highly dependent on cheap, Russian-sourced nuclear fuel. However, the shift by Western markets away from Russian material precipitated by its February 2022 invasion of Ukraine, along with other significant market developments, has created urgency in establishing alternative supply sources for the medium to long term, leading to sustained increases in prices across the key components of the nuclear fuel cycle: – the term price for uranium is currently at ~US$94 per pound, which is near its highest level in over 20 years; – term conversion prices also continue to increase, with the North American conversion price at ~US$55/kgU; and – the term enrichment price has risen to ~US$180/SWU and is expected to continue to strengthen. It is clear that demand for nuclear fuel continues to be elevated by positive developments over and above the War in Ukraine, creating significant opportunities for GLE to participate in supply-constrained Western/open markets – across a range of different fuel grades. There remains an ongoing focus by nuclear fuel buyers to contract long-term fuel requirements. GLE is the only US enrichment company that has the potential to offer a single-site solution for production of uranium, conversion, and enrichment – a unique offering to nuclear power generators in the US and other key customer markets, making GLE a highly strategic energy security partner. Fuel Market Update Silex Annual Report 2026 19
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About Silex Silex’s Q-Si Production Project, which commenced in August 2023, is being undertaken in conjunction with initial offtake partner, Silicon Quantum Computing Pty Ltd (SQC), and UNSW Sydney. The Project will result in the establishment of world’s first laser-based enrichment plant to produce highly enriched silicon-28. The ~3.5-year Project is supported with $5.1 million in funding from the Federal Government’s Defence Trailblazer for Concept to Sovereign Capability program and a cash contribution of $4.35 million from SQC. In June 2026, construction of the silicon enrichment plant (the Q-Si Production Plant) at our facility in Sydney was completed, with plant integration and commissioning activities to be completed later this calendar year. Sample production of highly enriched silicon-28 is expected to commence in Q1 CY2027. The initial production plant is expected to produce up to 20kg of Q-Si annually (depending on several factors, such as market demand and customer purity requirements), which will be converted into gaseous and solid product forms, as required by various customers around the world. Potential expansion of modular production capacity at a new dedicated site could occur over the coming years if market demand grows. Internal market analysis indicates the current market is small (less than 50 kgs per year); however, we expect this market to expand significantly over the next five to 10 years as silicon- based quantum computers are commercialised. Enriched silicon-28 in the form of high-purity Q-Si is required for next-generation silicon-based quantum computers being developed by advanced semiconductor companies around the world. Quantum computers could revolutionise the computing industry by providing an immense increase in computing power, when compared with today’s most advanced classical chips made by companies such as Intel, NVIDIA, IBM, GlobalFoundries, TSMC, and Samsung. Quantum computing, therefore, is expected to underpin a transformational performance uplift in the emerging AI industry. Q-Si products are used by silicon-based quantum computing developers as the substrate material for the fabrication of ‘nuclear spin’ and ‘quantum well’ qubits – the building blocks of quantum computers, akin to transistor devices in classical silicon chips, but on a much smaller atomic scale. Silex has been working with SQC, to qualify Q-Si products with the highest possible levels of isotopic and chemical purity. Increasing levels of engagement with other potential customers offshore is expected to result in additional product offtake arrangements being concluded over the next year and beyond. Silex retains 100% ownership of the Q-Si production technology and related Intellectual Property (IP) developed through the Project. Commercialising Quantum Silicon (Q-Si) for Quantum Computing Chips Overview and Future Prospects Silex Annual Report 2026 20
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About Silex Key risk Risk overview Risk mitigants include: Market conditions Decreases in the market prices of the components of nuclear fuel or in the demand for uranium, conversion, enrichment, or other forms of uranium, including LEU, LEU+ , HALEU, or enriched uranium products, could affect the ability of GLE and Silex to commercialise the SILEX uranium enrichment technology. The prices and demand for the various components of nuclear fuel remain sensitive to a number of factors that are beyond the control of the Company and the Company cannot provide assurances regarding factors that are beyond its control that may affect the commercialisation plans of Silex and/or GLE. For example, the Western nuclear industry has been moving away from reliance on importing low-cost Russian-produced nuclear fuel since the invasion of Ukraine, through both the imposition of trade sanctions and voluntary actions by Western utilities/ governments and multilateral bodies. Whether this situation changes, and whether trade with Russia for nuclear fuel increases or resumes in the future, is unknown. In addition, the market for Q-Si (silicon-28) products may not develop as expected, due to, for example, the advancement of other modalities to fabricate quantum computers, resulting in lower-than-expected return on investment and reduced shareholder value. • Continuous monitoring of market conditions • Flexible commercial planning • Modularity of SILEX technology, allowing for incremental capacity expansion should market conditions be supportive • Execution of a multilayered contracting portfolio, including provisions for exposure to increasing market prices and downside protection for negative market fluctuations. Technology commercialisation program The Company is currently undertaking the commercialisation of the SILEX laser-based uranium enrichment technology together with GLE. The outcomes of the technology maturation program, the success of which is a pre-condition to the commercialisation of the SILEX technology, cannot be assured, noting that the success of the program will be assessed by an independent engineering contractor engaged by GLE on behalf of its owners. Additionally, the Q-Si Production Project and the early-stage Stable Isotope Project, including the Company’s Medical Isotope Separation Technology (MIST) Project, involve various execution risks and are subject to unknowns and uncertain outcomes, which may affect the commercial viability of these technologies. Changes in scope or delays to Silex’s various technology commercialisation programs may occur at any time due to multiple factors, including: the outcomes of technology development and maturation programs; project resource prioritisation and allocation; interproject dependencies; actions taken by the Company’s commercialisation partners and other stakeholders that could adversely affect the programs and commercialisation strategies; macro-economic and geopolitical factors that may affect commercial opportunities and/or the demand for the Company’s products; increasing costs; competition from alternative technologies and suppliers/ enrichment companies; and impacts from potential third-party claims against the Company’s ownership of IP . • Structured technology development programs with diligent risk analysis • Rigorous project governance with regular progress reviews • Prioritisation of annual budgeting allocations on projects with high-value potential and implementation of staged investment decisions for continued capital allocation • Independent technical reviews when appropriate • Utilisation of appropriately qualified engineering, scientific, and project management staff • Strategic partnerships with technology partners and end-users/customers. Key Business Risks for Silex and the SILEX Technology Silex Annual Report 2026 21
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About Silex Key risk Risk overview Risk mitigants include: Competition Silex and GLE face an increasingly competitive environment, and GLE’s planned PLEF may have to compete for market share with established uranium producers and established and emerging uranium enrichment companies – around the world. These competitors could have greater financial resources than GLE, including support from their governments and/or other stakeholders. In addition, decisions by GLE’s competitors may be influenced by political, economic, and industrial policy considerations – rather than commercial considerations. Over the last few years, a number of companies proposing to develop and deploy new or upgraded uranium enrichment technologies have gained traction in the nuclear fuel markets and have been aggressively pursuing their commercialisation strategies. These competitors, along with incumbent enrichment suppliers, pose a potential threat to Silex and GLE in terms of: i) economic performance of different technologies at commercial scale; ii) vying for limited funding resources either through the financial markets or from government-funded initiatives; and iii) trying to establish and/or expand market positions with a finite number of customers. Accordingly, the Company cannot provide assurances regarding competitive factors that are beyond its control that may affect the commercialisation plans of Silex and GLE. • Regular assessment of risks and opportunities for commercial deployment of the SILEX uranium enrichment technology, including ongoing competitor assessment • Robust business plans, predicated on deep sectoral/industry understanding and strong stakeholder/commercial relationships • Effective execution of business and operations plans in line with schedule and budgets • Scale-up and adequate resourcing of project delivery teams. Nuclear industry contractions If the SILEX laser-based uranium enrichment technology ultimately is commercially deployed, income earned in the form of revenues and/or milestone payments and royalties could be affected by any growth or decline in the size of the global nuclear industry. Examples of factors that may constrain growth in the nuclear industry include concerns about: • the nuclear industry’s social licence to operate around the world in the face of historic opposition to nuclear power generation from many interest groups and political organisations, some of which primarily are dedicated to halting the use of nuclear power specifically and nuclear technology in general • the safety of nuclear power generation and associated technologies, including the effects of any major nuclear accident • nuclear proliferation and the spread of nuclear weapons • the safe disposal of nuclear waste • the cost of building new nuclear power reactors and delays in the deployment of new nuclear power capacity • the commercialisation and timing of the commercial deployment of new power reactor designs, including advanced reactors and small modular reactors. • Active monitoring of the nuclear fuel market and maintenance of close relationships with industry-leading nuclear fuel market participants • Business plans mapped to evolving market dynamics • Modularity of SILEX technology, which allows for incremental production expansion • Project plans and decision gates closely tied to market conditions and opportunities • Execution of multilayered customer contracts through established channels. Government and regulatory risks The activities of the Company and GLE are subject to extensive laws and regulations. Various permits and licences are required for operations today and into the future. Adherence to legislation and regulations, and obtaining permits and licences, may cause restrictions, additional cost, and potential delays to GLE’s commercialisation plans. Effective January 2021, GLE became 100% non-US owned, with Silex holding a 51% ownership interest and Cameco Corporation holding a 49% interest in GLE. Silex and Cameco are subject to certain regulations and directives relating to the mitigation of Foreign Ownership, Control or Influence (FOCI) over GLE, as mandated by the US Government. These regulations and directives are administered on behalf of the US Government by the US NRC and DOE. While the regulations and directives are generally supportive of GLE’s business activities and strategies, there may be situations in which the interests of the US Government with respect to FOCI mitigation(s) are not fully aligned with the business interests of GLE or its owners. This may cause frustrations or delays with respect to the execution of GLE’s business strategies, which ultimately could affect the economic value of GLE and its commercial projects. • Silex and GLE maintain in-house specialists and expertise, together with external counsel and advisers to provide guidance and advice • Regular engagement with US Government representatives and other relevant authorities • Effective regulatory strategy, planning, and execution • Appointment and retention of qualified and experienced regulatory personnel at GLE and Silex • Maintenance of full regulatory compliance, including timely submissions of licence and permit reports and deliverables • Performance of all operations within regulatory/licence boundaries, including regular training and awareness of regulatory and compliance environments and operating responsibilities. Silex Annual Report 2026 22
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About Silex Key risk Risk overview Risk mitigants include: Geopolitical conditions and sovereign risk Deteriorating geopolitical conditions have not only created significant shifts in the global risk landscape, creating attendant economic impacts, they also have the potential to affect the Company in its cross-border activities with GLE. Political instability, regulatory uncertainty, armed conflict, trade tensions, or other geopolitical events in key target markets or regions could adversely affect business confidence, disrupt supply chains, and increase operational risk. These conditions also may create currency volatility, while trade barriers and restrictions, including tariffs, have the potential to increase business costs – both for GLE and Silex. In addition, current world events, including a heightened focus on national economic interests, are contributing to elevated levels of sovereign risk. This may have implications for the Company’s cross border investments and commercialisation plans, the impacts of which are unknown. • Geographic diversification of opportunities • Ongoing market monitoring • Financial management and use of hedging tools to reduce currency exposure • Participation in government-supported fuel security initiatives • Rigorous financial planning and adherence to technology development and commercialisation budgets and programs to ensure the best utilisation of resources • Flexible commercial planning. Contractual risks Effective January 2021, Silex signed an agreement with Cameco – as its joint venture partner in GLE – relating to the governance and conduct of GLE’s business, and to the formulation of commercial priorities and strategies that are developed for GLE. While Silex and Cameco are generally aligned in their business aspirations and priorities for GLE, there could be situations in which Silex and Cameco may not be fully aligned, which could lead to disagreements between Silex and Cameco. While there are provisions in the agreements between Silex and Cameco to resolve such disagreements, some matters may not be easily resolved and, accordingly, they could affect GLE’s economic value and commercial prospects. In 2016, an agreement was signed between GLE and the US DOE, which facilitates the future purchase of hundreds of thousands of metric tonnes of depleted uranium hexafluoride (DUF6) inventories (also known as depleted ‘tails’) owned by the US Government. This agreement relates primarily to the legacy depleted uranium inventories that are located at the DOE reservation in Paducah, KY. The agreement, which was amended in 2020 to align it with then market conditions and US Government priorities, underpins GLE’s commercialisation program, including the planned PLEF Project. Silex is reliant on these various agreements, partners, and stakeholders for the successful commercialisation of the SILEX uranium enrichment technology. Problems arising or caused through these contracts or agreements, or by or with the counterparties and other contracted parties, may have the potential to affect the performance and operations of Silex and/or GLE, as well as the commercial outcomes being pursued by Silex and/or GLE. Any disagreements in the interpretation of contracts or agreements, and any failure by counterparties to perform their obligations under such agreements or contracts, could have a materially adverse effect on Silex and GLE. Further, as Silex transitions into commercial manufacture of Q-Si products, offtake agreements with customers may not be enforceable in the event of Silex product quality issues or lower-than-expected demand, due to slower commercialisation of quantum computing technologies. In addition, third-party customers may default on their contractual obligations to the detriment of Silex. • Ongoing leadership of the SILEX technology maturation and commercialisation program, in conjunction with GLE and support from Cameco • Periodic in-person meetings between joint venture partners • Diversified commercial opportunities with credit-worthy customers • Regular governance forums between partners • Continued engagement with government stakeholders and prospective customers. Silex Annual Report 2026 23
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About Silex Key risk Risk overview Risk mitigants include: Intellectual property As with any IP , potential exists for a third party to dispute Silex’s rights to the SILEX technology or any other technologies it develops or uses, or upon which the Company relies. Furthermore, application of the SILEX technology to uranium enrichment has been classified by the Australian and US Governments, and, as a consequence, the Company is not permitted to apply for patent protection for uranium enrichment technology and any similar variant of the SILEX technology applied to fields beyond uranium, including silicon-28 enrichment, to the extent there is overlap in such IP . The SILEX technology is, therefore, protected proactively by government-mandated trade-secret protocols, as well as by strict security controls. These include, but are not limited to, high security infrastructure, including security fencing and multi- layered access control, 24/7 CCTV surveillance and armed guard patrols, an extensive cybersecurity program, and vetting of all staff. While the Company believes its protection of IP is at a very high standard, there are always risks associated with breaches of security and information leaks, which could adversely affect the value of the Company’s IP . • IP protection plans and periodic review of IP strategy in changing competitive landscapes • Proactive defence of Company’s IP rights and assurance of robust contractual confidentiality obligations and controls with regard to the sharing of the Company’s information • Clearly defined in-house policies and procedures for protection of the Company’s confidential information and IP • Employee training to ensure capture of new IP and implementation of an appropriate IP protection strategy. Cyber security Actual or attempted cyber-attacks and hacking, ransomware, malware, data breach, accident, or other unauthorised access to the Company’s information systems, business data, and personal information of Silex staff, partners, visitors, and customers could result in the potentially irrecoverable loss of data and could affect both the revenue-generating potential and reputation of Silex, as well as result in privacy breaches. In such situations, there is a risk that Silex fails to meet the requirements of its permit to possess technical information and operate. Silex deploys extensive controls to ensure that these risks are minimised or mitigated; however, the cyber-security domain is never free of risks by its very nature. • Multi-layered cyber security controls • Implementation of Essential 8 mitigations as per the Australian Cyber Security Centre (ACSC) with regular reviews, protections, and practices in place • Independent security assessments • Mandatory employee awareness training • Incident response planning • Protection of sensitive information and IP . Reliance on key staff and retention The ability to retain specialist team members who are integral to the execution and delivery of the Company’s technology commercialisation programs is imperative. Silex relies on the knowledge and expertise of several long-serving senior technology experts and corporate personnel. The loss of any of these specialists may affect progress in the Company’s various projects and is a key focus of the Company’s succession planning, staff development activities, and retention practices. • Competitive remuneration framework, including an attractive Employee Incentive Plan • Succession planning • Advanced planning for recruitment of additional employees as business opportunities evolve • Career development/progression and tailored training programs for key staff in strategically important positions within the Company • Knowledge information systems effectively documented and centralised to assist with efficient knowledge transfer • Workplace culture focused on innovation and safety. Health and safety Silex aims to conduct all its activities to the highest standards of workplace health and safety (WHS) and has systems in place for the management of WHS risks, including managing the employee psychosocial environment. Laser technology and nuclear industry operations carry inherent risks, including managing the employee psychosocial environment. The Company also utilises potentially harmful gases, materials, and equipment in its operations. Silex executes its WHS strategy and manages its WHS obligations with strong internal controls, including extensive technical controls, process safety, a focus on continuous improvement of its WHS management system, and on the auditing and monitoring of its operations by both internal and external experts. • Integrated comprehensive WHS management systems with active risk management, and a focus on monitoring leading and lagging indicators and continuous improvement • Implementation of controls to mitigate safety incidents, injuries, and illnesses including a focus on physical, mental and social wellbeing • Regulatory compliance • Baseline health monitoring • Provision of personal protective equipment (PPE) • Regular internal audits of safety practices and task execution • Regular employee training and communications about safety. Silex Annual Report 2026 24
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About Silex Key risk Risk overview Risk mitigants include: Climate change and environment The Company has a responsibility to ensure that its operations have the lowest possible impact on the environment. Climate change presents an evolving set of risks and opportunities, including: • the tr ansition to low carbon-emissions power generating technologies • ri sks arising from an increase in weather events and adverse weather patterns due to climate change. Furthermore, the increased regulation of greenhouse gas emissions could adversely affect the Company’s and GLE’s future cost of operations as a result of increased energy costs and the cost of production at the planned PLEF. Regulatory change by governments in response to climate change may also result in increased compliance costs. Conversely, the planned move to a net-zero emissions economy strengthens the role of nuclear energy and GLE as a potential producer of zero-emissions nuclear fuels. • Clear and tr ansparent ESG Policy/Charter • Clear Purpose and V alues set across the Company • Emer gency planning and ongoing enhancement to business continuity plans and procedures • Pr operty and business interruption insurance maintenance • Cl imate risk assessment and preparation for implementation of AASB S1 and S2 (reporting requirements) and the Company’s first sustainability report (for financial year commencing 1 July 2027). Silex Annual Report 2026 25
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Directors’ Report Silex Annual Report 2026 26
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Directors’ Report 1. Directors The following persons were directors of Silex Systems Limited during the whole of the financial year and up to the date of this report: – Mr C A Roy – Dr M P Goldsworthy – Ms S J Corlett – Mr C D Wilks Company Secretary Ms J E Russell BBus, CA, MBA (Exec), GAICD was appointed to the position of Company Secretary in 2010. Before joining Silex, Ms Russell held a senior finance position in the Construction industry in the Middle East and prior to that worked as a Senior Associate with a Chartered Accounting Practice. 2. Principal activities Silex is primarily focused on the commercialisation of its innovative SILEX laser enrichment technology across multiple global markets, with a priority focus on contributing to the reliable and sustainable supply of nuclear fuel for the global nuclear power industry, a vital part of the world’s clean energy needs. The development and commercialisation program for the SILEX uranium enrichment technology is being undertaken jointly by Silex (at its Lucas Heights, Sydney, NSW facility) and by Global Laser Enrichment LLC (GLE) (in Wilmington, North Carolina (NC)). GLE is the exclusive licensee and commercialisation vehicle for the SILEX uranium enrichment technology and is a jointly-controlled venture between Silex and global uranium and nuclear fuel provider Cameco Corporation (Cameco), with 51% and 49% ownership interest respectively. The Company continues to pursue the ‘Triple Opportunity’ in the global nuclear fuel supply chain for the SILEX uranium enrichment technology through GLE and the commercial deployment of the SILEX technology at the Paducah Laser Enrichment Facility (PLEF) at Paducah, Kentucky (KY). Silex is also progressing the commercial deployment of the SILEX technology for the production of highly enriched silicon-28 (Quantum Silicon (Q-Si)) – a key enabling material required for silicon quantum computer chip fabrication, and to further leveraging and exploiting Silex’s core capabilities, through the potential production of other high-value stable isotopes, including medical isotopes. 3. Dividend No dividend payments were made during the year. No dividend has been recommended or declared by the Board. 4. Operating and financial review A review of and information about the operations of the Company during the financial year, and the Company’s business strategy, future prospects and key business risks is contained on pages 10 to 25 of the Annual Report, which forms part of this Directors’ report. Financial Result A summary of consolidated revenue and the financial result is set out below: 2026 $ 2025 $ Revenue from continuing operations 21,585,715 12,204,289 Other income 5,157,120 6,409,422 (Loss) before tax (38,620,683) (42,557,236) Income tax expense – – Net (loss) from continuing operations (38,620,683) (42,557,236) Net (loss) for the year (38,620,683) (42,557,236) Net (loss) is attributable to: Owners of Silex Systems Limited (38,620,683) (42,557,236) The net loss from continuing operations was $38.6m compared to $42.6m in the prior year. The decrease in net loss from continuing operations is primarily attributable to the $9.4m increase in revenue from continuing operations to $21.6m in the current year. The increase is mainly due to milestone revenue of $7.6m compared to $nil in the prior year. In accordance with the Company’s exclusive licence agreement with GLE for the SILEX uranium enrichment technology, with the milestone payable by GLE following TRL -6 achievement in October 2025. Interest revenue also increased by $2.9m compared to the prior period, due to larger cash holdings as a result of the August 2025 capital raise. Other income decreased by $1.3m to $5.2m in the current year, primarily due to a $1.1m decrease in the research and development tax incentive due to lower materials expenditure, and a $0.3m decrease in government grants. The improvement in revenue from continuing operations was partially offset by the continued increase in GLE’s operating budget to support GLE’s commercialisation program for the SILEX uranium enrichment technology. Silex’s 51% share of the GLE loss increased by $3.7m in the current year to $45.5m (reported as share of net loss of associates and joint ventures accounted for using the equity method). Employee benefits expense was also higher in the current year, increasing by $2.0m compared to the prior period, as the Company’s headcount and project activities increased. Further details on the Company’s financial result can be found in the annual Financial Report that follows. Your directors present their report on the consolidated entity consisting of Silex Systems Limited (Silex or the Company) and the entities it controlled at the end of, or during, the year ended 30 June 2026. Silex Annual Report 2026 27
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Directors’ Report Financial Position A summary of our consolidated statement of financial position is set out below: 30 June 2026 $ 30 June 2025 $ Assets Total current assets 190,201,029 89,670,850 Total non-current assets 17,871,305 9,288,638 Total assets 208,072,334 98,959,488 Liabilities Total current liabilities 6,455,223 7,273,308 Total non-current liabilities 420,514 738,313 Total liabilities 6,875,737 8,011,621 Net assets 201,196,597 90,947,867 Equity Total equity 201,196,597 90,947,867 The Company’s net assets as at 30 June 2026 of $201.2m increased by 121% compared with the previous year, largely attributable to the August 2025 capital raise and Share Purchase Plan (SPP), raising $142.7m net of transaction costs. Significant assets include cash holdings of $180.7m (cash and term deposits) and investments accounted for using the equity method (investment in GLE) of $17.0m. The Company holds no corporate debt. 5. Significant changes in state of affairs Share capital increased by $147.1m (from $392.7m to $539.8m) as a result of the August 2025 institutional placement, SPP , and the various issues of shares on the exercise of performance rights and options granted under the Silex Systems Limited Employee Incentive Plan. Details of the changes in share capital are disclosed in note 10(a) to the consolidated financial statements. 6. Matters subsequent to the end of the financial year The consolidated entity is not aware of any matters or circumstances which are not otherwise dealt with in the consolidated financial statements that have significantly, or may significantly, affect the operations of the consolidated entity, the results of its operations or the state of the consolidated entity in subsequent years other than those referred to in this Directors’ Report. 7. Information on directors The qualifications, experience and special responsibilities of the Directors are provided on page 29, and is current as at the date of this Annual Report. The following director is a former director of the Silex Board: Ms Helen Cook LLM, LLB (Hons), BA. Independent Non-executive Director until 22 November 2024 Experience and expertise: – Independent non-executive director for three years Former listed company directorships in last 3 years: – None Special responsibilities: – Member of Audit and Risk Committee (until 22 November 2024) – Member of Remuneration and Nomination Committee (until 22 November 2024) 8. Meetings The number of meetings of the Company’s Board of Directors and of each Board Committee held during the financial year, and the number of meetings attended by each director were: Directors’ Meetings Audit and Risk Committee Meetings Remuneration and Nomination Committee Meetings Director’s Name (Number) Held* (Number) Attended (Number) Held* (Number) Attended (Number) Held* (Number) Attended Mr C A Roy 14 14 4 4 2 2 Dr M P Goldsworthy 14 14 • • • • Ms S J Corlett 14 14 4 4 2 2 Mr C D Wilks 14 14 4 4 2 2 * Number of meetings held during the time the director held office or was a member of the committee during the year • Not a member of the relevant committee at the time the scheduled meetings were held Silex Annual Report 2026 28
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Board of Directors Mr Craig Roy MBA, MSc, FAICD. Dr Michael Goldsworthy BSc (Hons), MSc, PhD, FAIP , GAICD. Ms Susan Corlett BSc (Geo, Hons), FAUSIMM, GAICD. Mr Christopher Wilks BCom, FAICD. Chair – Independent Non-executive Director CEO/Managing Director – Executive Director Independent Non-executive Director Non-executive Director Experience and expertise: – Independent non-executive director and Chair since January 2019. – Former Deputy CEO of the CSIRO. – Extensive experience as a company director and is currently Chair of the Australian Research Data Commons (ARDC), and a Non-executive Director of Australian Composites Manufacturing CRC Limited, and Omico, a medical oncology not-for-profit organisation. Other current listed company directorships: – None Former listed company directorships in last 3 years: – None Special responsibilities: – Chair of the Board – Member of Audit and Risk Committee – Chair of Remuneration and Nomination Committee – Director and Chair of Global Laser Enrichment Holdings LLC (Chair from 01/01/2026) Interests in shares, options and rights: – Number of ordinary shares: 130,000 – Number of options: Nil – Number of rights: Nil Experience and expertise: – CEO/Managing Director since 1992. – Founder of the Company and co-inventor of the SILEX laser isotope separation technology. – Dr Goldsworthy has been the driving force behind the commercialisation program for the SILEX technology. Other current listed company directorships: – None Former listed company directorships in last 3 years: – None Special responsibilities: – CEO/Managing Director – Director of Global Laser Enrichment Holdings LLC Interests in shares, options and rights: – Number of ordinary shares: 5,780,118 – Number of options: 300,000 – Number of rights: 208,600 Experience and expertise: – Independent non-executive director since November 2024. – A professional company director following an executive career in mining, investment banking and private equity. – Serves as a non-executive director on various public company boards. Other current listed company directorships: – Iluka Resources Limited – Aurelia Metals Limited Former listed company directorships in last 3 years: – Mineral Resources Limited Special responsibilities: – Chair of Audit and Risk Committee – Member of Remuneration and Nomination Committee Interests in shares, options and rights: – Number of ordinary shares: 9,842 – Number of options: Nil – Number of rights: Nil Experience and expertise: – Non-executive director since 1988. – Finance director and CFO of Sonic Healthcare Limited. – Various directorships of public companies held over the years. Other current listed company directorships: – Executive director of Sonic Healthcare Limited since 1989 (Finance director since 1993) Former listed company directorships in last 3 years: – None Special responsibilities: – Member of Audit and Risk Committee – Member of Remuneration and Nomination Committee Interests in shares, options and rights: – Number of ordinary shares: 1,983,716 – Number of options: Nil – Number of rights: Nil Silex Annual Report 2026 29
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Directors’ Report 9. Remuneration Report Letter from the Chair of the Remuneration and Nomination Committee On behalf of the Silex Board, I am pleased to present the Company’s Remuneration Report for the year ended 30 June 2026. Our Remuneration Report provides information on the remuneration arrangements for our Key Management Personnel (KMP) which includes our executive KMP , being our CEO/MD and CFO/Company Secretary, and the non-executive directors of the Company. The Board’s underlying approach to remuneration is to ensure that remuneration outcomes have strong alignment with building long-term shareholder wealth, underpinned by prudent risk and capital management. There were no increases to the fixed remuneration of the CEO and CFO, or our non-executive directors during FY2026. The year ended 30 June 2026 was a year of significant strategic and operational progress for the Company’s core project – the commercialisation of the SILEX uranium enrichment technology, in collaboration with our exclusive licensee Global Laser Enrichment (GLE). Accordingly, this project remained the primary focus of the Company’s performance-based remuneration incentives to ensure that reward is linked to the delivery of long-term value as the SILEX technology is commercialised. The key milestone in FY2026 was the achievement of Technology Readiness Level 6 (TRL -6) for the SILEX uranium enrichment technology, which was confirmed through an independent assessment by a top-tier engineering consultant in October 2025. The TRL -6 milestone involved large-scale enrichment demonstration with a fully integrated pilot plant built by Silex and GLE and operated at GLE’s Wilmington, NC, Test Loop facility. This represented a major technology de-risking milestone and an important step in progressing the SILEX technology towards commercial deployment at the planned Paducah Laser Enrichment Facility (PLEF). The year also saw GLE’s continued progress on other fronts, including the securing of additional funding to support its strategic and commercialisation objectives, and advancement of GLE’s application for a licence to construct and operate the PLEF, which was accepted by the US Nuclear Regulatory Commission (NRC) for review in August 2025, and is currently in the latter stages of review by the NRC. This is all whilst advancing technology maturation and manufacturing activities at GLE’s new headquarters facility. All of these activities contribute to positioning GLE for the potential initial commercial production of nuclear fuel by 2030. In addition, Silex successfully completed construction of the world’s first laser-based silicon enrichment plant. This establishes an important manufacturing capability that supports the Company’s strategic entry into the critical supply chain for silicon-based quantum computing and provides a vital strategic material in the form of highly enriched Quantum Silicon (Q-Si). These achievements demonstrate meaningful progress in the execution of Silex’s ultimate strategy of commercialising our innovative SILEX laser-based enrichment technology across multiple global markets for high value enriched critical materials. The incentive-based remuneration outcomes for the CEO and CFO during the year ended 30 June 2026 were primarily driven by the vesting of Extended Long-term Incentive (LTI) awards that were granted in prior years, and earned through the achievement of significant and challenging performance objectives and sustained value creation over a number of years. In the case of the CEO, the vesting of his Extended LTI related primarily to the achievement of TRL -6 in October 2025, and for the CFO, the delivery of performance-based criteria linked directly to increased shareholder value. Independent Remuneration Framework Review implemented in FY2025 The Company completed an independent remuneration benchmarking and design review of the remuneration framework for executive KMP and of non-executive directors in early FY2025. The review resulted in changes being implemented to the remuneration for our CEO and CFO, and our non-executive directors from 1 July 2024. The changes were implemented whilst ensuring that at all times our remuneration practices reflect good governance, and are aligned to market and incorporate best practice guidelines to ensure our decisions with respect to executive KMP remuneration are appropriate in relation to the Company’s performance. The arrangements implemented are outlined in this Remuneration Report, including details of the CEO’s new multi-year equity-based incentives that were approved by shareholders at the 2025 AGM. As a result of the independent remuneration review, the Company also implemented a Minimum Shareholding Requirements Policy for non-executive directors and executives, effective 1 July 2024. The Board regularly reviews the Company’s remuneration framework to ensure it remains competitive, supports the Company’s strategy and aligns the interests of executives with those of shareholders. Remuneration Report Silex Annual Report 2026 30
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Directors’ Report Remuneration outcomes for FY2026 As detailed in this Remuneration Report, the implementation of the independent remuneration review resulted in new multi-year, equity-based incentives for the CEO that were approved by shareholders at the 2025 AGM. The underlying short-term and long-term Key Performance Indicators (KPIs) and objectives for our CEO and CFO remain laser-focused in their intent to align performance incentives with value creation for our shareholders, and to drive positive outcomes in the longer term. The Committee and the Board assessed the performance of executive KMP against their respective KPIs and objectives. Section c. of the Remuneration Report details the FY2026 Short-term Incentive (STI) payments and includes a final assessment of the KPIs, and whilst reflecting strong personal performance and achievement of deliverables for FY2026, the final STIs paid were reduced following the exercising of Board discretion. The underlying KPIs and objectives for the FY2026 LTI have a performance period ending 30 June 2028, with good progress made towards the underlying deliverables during the year. Following the achievement of TRL -6 for the SILEX uranium enrichment technology, the CEO’s Extended LTI, comprising 412,500 Performance Rights fully vested, reflecting very significant performance over a 5.5-year performance period. Furthermore, the final tranche of the CFO’s Extended LTI comprising 75,000 Performance Rights fully vested at the conclusion of FY2026 following the achievement of performance criteria directly linked to the 35% increase in the Company’s share price over the 3-year performance period. Following the conclusion of the respective Extended LTIs, no further Extended LTIs will be offered. Reflecting the significance of TRL -6 achievement to the Company, a one-off strategic cash award of $100,000 gross was paid to the CEO and $80,000 gross to the CFO in December 2025. These awards reflect the performance of our executive KMP over the preceding years resulting in the successful delivery of a pivotal technology maturation milestone (TRL -6) which is a key step towards the commercialisation to the SILEX uranium enrichment technology. We believe that our remuneration programs have been appropriately set and create alignment between our executive KMP and the long-term success of the Company and creation of shareholder value. We invite you to review the full Remuneration Report and we look forward to answering any questions you may have at our AGM later this year. Craig Roy Chair, Remuneration and Nomination Committee Remuneration Report The directors present the Remuneration Report for the year ended 30 June 2026, outlining key aspects of our remuneration policy and framework, and remuneration awarded for the Company’s non-executive directors, executive directors and other executive Key Management Personnel (KMP). In this report: a. Directors and KMP disclosed in this report b. Remuneration governance and link to performance c. Elements of executive KMP remuneration d. Link between FY2026 remuneration and performance e. Contractual arrangements with executive KMP f. Non-executive directors’ remuneration arrangements g. Statutory remuneration disclosures for KMP remuneration h. Performance-based remuneration granted and forfeited during the year i. Terms and conditions of the equity-based payment arrangements j. Reconciliation of options, rights and ordinary shares held by executive KMP k. Use of external remuneration consultants l. Voting at the Company’s 2025 Annual General Meeting a. Directors and KMP disclosed in this report The 2026 Remuneration Report forms part of the Directors’ Report and has been prepared and audited in accordance with the requirements of section 300A of the Corporations Act 2001 (Cth). The Remuneration Report has been prepared in respect of the KMP of the Company. KMP are defined as those persons who have authority and responsibility for planning, directing and controlling the activities of the Company. The KMP covered in this report are as follows: Non-executive and executive directors Mr C A Roy Chair and Non-executive Director Dr M P Goldsworthy CEO/Managing Director – Executive Director Ms S J Corlett Non-executive Director Mr C D Wilks Non-executive Director Former Non-executive directors Ms H G Cook Non-executive Director until 22 November 2024 Other executive KMP Ms J E Russell CFO/Company Secretary Silex Annual Report 2026 31
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Directors’ Report b. Remuneration governance and link to performance Remuneration and Nomination Committee structure The Remuneration and Nomination Committee is a committee of the Board comprised of a majority of independent non-executive directors. The Chair of the Committee is also an independent non-executive director. Its role is to make recommendations to the Board regarding the Company’s remuneration policies and practices, including those applicable to the Company’s KMP and to perform a range of nomination responsibilities including addressing the selection, appointment and review of Directors. The Committee obtains independent expert external advice on an as needed basis. The role and responsibilities of the Remuneration and Nomination Committee are set out in the Committee’s Charter, which is available on the Company’s website at: www.silex.com.au. Board oversight The Silex Board is ultimately responsible for ensuring that the Company’s remuneration structure is fit for purpose and reflects the Company’s values, strategic objectives and risk appetite, aligned with the long-term interests of shareholders, and is transparent and easily understood. The Board and its advisors are independent of management when making decisions affecting employee remuneration. Linking remuneration to performance In determining executive KMP remuneration, the Board’s policy is based on the principle of aligning remuneration outcomes with the successful delivery of strategy, whilst ensuring our remuneration practices are designed to attract, motivate and retain highly qualified and specialised personnel. High regard for contemporary market practice, good governance and alignment to changing business circumstances is maintained at all times. The Company aims to reward executive KMP with a level and mix of remuneration commensurate with their position and responsibilities within the Company that is competitive within the market. Remuneration for executive KMP is reviewed annually and considers market data, insights into remuneration trends, the performance of the Company and the individual, and the broader economic and operating environment. The Company completed an independent remuneration benchmarking and design review of the remuneration framework for the Company’s KMP and of non-executive directors in early FY2025. The various outcomes of the review were implemented with effect from 1 July 2024, with the recommendations with regard to the CEO’s multi-year, equity-based incentives approved by shareholders at the 2025 AGM implemented with effect from the commencement of FY2026. The full implementation of the outcomes of the independent remuneration review will take several years to take effect. In accordance with the independent remuneration review outcomes, the executive KMP remuneration framework comprises of two components: – Total fixed remuneration; and – At-risk incentives. The at-risk incentives include an annual STI and LTI, which is assessed over a 3-year period. For equity-based incentives, sustainability of results is aligned through the impost of a 2-year trading restriction on any underlying equity issued. The FY2025 independent remuneration review recommended a target remuneration mix for executive KMP as follows. It is noted that it will take several years to take effect. The actual remuneration mix for executive KMP for FY2026 can be found in section g. of this Remuneration Report: Target Remuneration Mix for Executive KMP CEO 35% 30% 35% CFO 40% 30% 30% TFR STI LTI Assessing performance and claw back of remuneration The Remuneration and Nomination Committee is responsible for assessing performance against KPIs and determining the incentive awards to be paid to all senior executives and management. To assist in this assessment, the Committee receives detailed reports on performance from management which are based on independently verifiable data such as financial measures, market information, technology assessments, and data from independently run surveys. At all times, the Board has the discretion to make a final determination and as previously noted, Board discretion was exercised when assessing remuneration outcomes for FY2026. In the unlikely event of serious misconduct or a material misstatement in the Company’s financial statements, the Board can cancel or defer performance-based remuneration and may also claw back performance- based remuneration paid in previous financial years. Silex Annual Report 2026 32
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Directors’ Report c. Elements of executive KMP remuneration The following table reflects the implementation of the independent remuneration review with effect from 1 July 2024, noting that the multi-year equity-based incentives for the CEO were in accordance with shareholder approval granted at the 2025 AGM and implemented with effect from the commencement of FY2026. Element Purpose Performance Metrics Delivery Potential Value1 Total Fixed Remuneration (TFR) Provide competitive market salary, including superannuation and non-monetary benefits Reviewed annually, taking into account performance, and benchmarked against market data for comparable roles in companies in a similar industry and with a similar market capitalisation Cash (100%) CEO: $800,000 CFO: $425,000 Positioned at median market rate STI2 Reward for in-year performance, aligned with long-term value creation. Retention via 2-year escrow period applied to any equity incentive award Performance assessed against financial metrics such as cash flow management and to non-financial measures, such as commercial deliverables, and other specific operational and strategic deliverables for the Company CEO: 88,600 Performance Rights3 (Nb. FY2026 to FY2028 – award of a maximum of 100,000 Performance Rights to the equivalent value of $585,000 per annum to be issued annually. Underlying performance criteria to be set by the Board at the commencement of each financial year) $434,369 For 88,600 Performance Rights for FY2026 Maximum gross cash STI performance payment of $100,000 $77,000 awarded for FY2026 CFO: 70,000 Performance Rights (Nb. Underlying performance criteria to be set by the Board at the commencement of each financial year) $171,024 For 70,000 Performance Rights for FY2026 Maximum gross cash STI performance payment of $80,000 $64,000 awarded for FY2026 LTI2 Alignment to long-term shareholder value. Retention via 2-year escrow period applied to any equity incentive award Performance linked to contribution to the delivery of the Company’s strategic plan and creation of shareholder value. LTIs are assessed over a 3-year performance period and are designed to promote long-term stability in share price appreciation CEO: 120,000 Performance Rights3 (Nb. FY2026 to FY2028 – award of a maximum of 120,000 Performance Rights per annum to be issued annually. Underlying performance criteria underpinned by a 3-year performance period to be set by the Board at the commencement of each financial year) $567,774 Expensed over FY2026 to FY2029 CFO: 75,000 Performance Rights $354,859 Expensed over FY2026 to FY2029 Extended LTI2 No further Extended LTIs to be issued following expiry of current incentives Alignment to long-term shareholder value. Retention via 2-year escrow period applied to any equity incentive award Performance linked to scale-up of the unique SILEX uranium enrichment technology (i.e., TRL -6 demonstration) by no later than 31 December 2025 CEO: 412,500 Performance Rights4 (to cover 5.5 performance years commencing 1 July 2020 and ending 31 December 2025) $466,950 Expensed over FY2021 to FY2026 Performance linked to long-term shareholder value CFO: 300,000 Performance Rights (to cover 5 performance years commencing 1 July 2021 and ending 30 June 2026) $239,550 Expensed over FY2022 to FY2026 One-off strategic bonus award Reward reflects multi-year performance resulting in the successful delivery of a pivotal technology maturation milestone (TRL -6), and aligned with long-term value creation Performance linked to successful TRL -6 demonstration CEO: Gross cash STI performance payment of $100,000 $100,000 awarded CFO: Gross cash STI performance payment of $80,000 $80,000 awarded 1. Potential Value assessed at 30 June 2026, based on a current estimate of vesting. This is subject to ongoing performance, assessment and potential revision 2. At risk remuneration. At all times the Board has the discretion to make a final determination based on Company performance or other factors. Incentive awards may be clawed back or cancelled if the relevant executive acts fraudulently or dishonestly or breaches their obligations to the Company 3. Approved by shareholders at the 2025 AGM 4. Approved by shareholders at the 2021 AGM Silex Annual Report 2026 33
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Directors’ Report i. Short-term Incentives CEO/MD Composition An equity-based STI may be granted annually at the discretion of the Board. As per shareholder approval at the 2025 AGM, the CEO’s STI for the years ending 30 June 2026, 2027 and 2028 comprises an annual grant of a maximum of 100,000 Performance Rights to the equivalent value of $585,000. Underlying performance criteria to be set by the Board at the commencement of each financial year. The CEO is also eligible for an annual gross cash performance payment. For FY2026, the maximum annual gross cash performance payment was $100,000. Equity Opportunity Maximum of 100,000 Performance Rights to the equivalent value of $585,000. For FY2026, 88,600 Performance Rights were issued. Cash STI The CEO was eligible for a gross cash performance payment of $100,000 for FY2026. Performance Metrics / Assessment The STI KPIs were focussed on delivering priorities associated with increasing shareholder value, including: Vesting Condition 1 (45% STI weighting): reflecting the strategic significance of the Company’s uranium enrichment technology and investment in commercialisation vehicle GLE, the STI objective was linked to specific FY2026 outcomes associated with the US-based commercialisation program. Vesting Condition 2 (10% STI weighting): the STI KPI was linked to the Company’s Q-Si Production Project and reflected efforts to complete FY2026 milestones and deliverables that progress the Company’s technology towards initial market entry in CY2027. Vesting Condition 3 (45% STI weighting): the STI KPIs reflected various corporate objectives that underpin the Company’s operations. Various safety related targets were included, and reflected the continuing focus on the ongoing implementation of a comprehensive WHS framework in support of the Company’s Q-Si Production Project. Other corporate objectives included performance related to investor engagement, capital management and risk management. The final assessment of Vesting Condition 3 reflected individual strategic performance measures. Assessment: 77% (following Board discretion to reduce award) Performance Rights Vesting: The Board determined to award 77%, and therefore 68,222 of the maximum total of 88,600 Performance Rights will vest. 68,222 shares are pending for issue to the CEO. The shares to be issued are subject to a 2-year trading restriction from the date of issue. Cash STI: A gross cash payment of $77,000 was paid to the CEO on 30 June 2026. Board discretion The Board has discretion to adjust remuneration outcomes up or down to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any STI award. CFO/Company Secretary Composition An equity-based STI may be granted annually at the discretion of the Board. The FY2026 STI comprises an annual grant of 70,000 Performance Rights. The CFO is also eligible for an annual gross cash performance payment. For FY2026, the maximum annual gross cash performance payment was $80,000. Equity Opportunity 70,000 Performance Rights Cash STI The CFO was eligible for a cash performance payment of $80,000 for FY2026. Performance Metrics / Assessment The STI KPIs were focussed on delivering priorities associated with increasing shareholder value, including: Vesting Condition 1 (35% STI weighting): reflecting the strategic significance of the Company’s uranium enrichment technology and investment in commercialisation vehicle GLE, the STI objective was linked to specific FY2026 outcomes associated with the US-based commercialisation program. Vesting Condition 2 (65% STI weighting): the STI KPIs reflected various corporate objectives that underpin the Company’s operations. This included delivery of a Company reorganisation and resourcing plan, and various safety related targets that also reflected the continuing focus on the ongoing implementation of a comprehensive WHS framework in support of the Company’s Q-Si Production Project. Other corporate objectives included performance related to investor engagement, capital management and risk management. The final assessment of Vesting Condition 2 reflected individual strategic performance measures. Assessment: 80% (following Board discretion to reduce award) Performance Rights Vesting: The Board determined to award 80%, and therefore 56,000 of the maximum total of 70,000 Performance Rights will vest. 56,000 shares are pending for issue to the CFO. The shares to be issued are subject to a 2-year trading restriction from the date of issue. Cash STI: A gross cash payment of $64,000 was paid to the CFO on 30 June 2026. Board discretion The Board has discretion to adjust remuneration outcomes up or down to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any STI award. Silex Annual Report 2026 34
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Directors’ Report ii. Long-term Incentives CEO/MD Composition As per shareholder approval at the 2025 AGM, the CEO’s LTI for the years ending 30 June 2026, 2027 and 2028 comprises an annual grant of a maximum of 120,000 Performance Rights. Accordingly, an equity-based LTI to cover the initial three performance years (i.e., FY2026 through to and including FY2028) was granted on 20 October 2025. Underlying performance criteria for the FY2026 LTI were set by the Board for the three-year performance period commencing 1 July 2025. Opportunity 120,000 Performance Rights Performance Metrics / Assessment The equity-based LTI is subject to performance and service-based vesting conditions for the 3-year performance period ending 30 June 2028. The performance-based vesting conditions align with Silex’s primary strategic priority of commercialisation of the SILEX uranium enrichment technology and the delivery of priorities associated with increasing shareholder value, including a specific performance condition tied to Silex’s share price performance throughout the performance period. The performance metrics include the following vesting conditions: Vesting Condition 1 (50% LTI weighting): linked to sustained Silex Share Price appreciation and value creation for Silex shareholders. Share price appreciation will be measured by reference to the Company’s inclusion in the S&P/ASX 200. Vesting Conditions 2 & 3 (50% LTI weighting): relate to specific strategic deliverables associated with the Company’s investment in GLE, including positioning GLE for a successful Final Investment Decision. Due to commercial sensitivities and confidentiality, additional specificity is unable to be disclosed at this time. The service-based vesting condition requires that the CEO continues to be an eligible employee as at the date of payment of the LTI (i.e., date of issue of Silex Systems Limited shares following the vesting of Performance Rights). In the event the Performance Rights vest, any resulting allotment of Silex Systems Limited shares will be subject to a further escrow period of two years. Assessment: N/A for FY2026 Forfeiture and termination Performance Rights will lapse if vesting conditions are not met. Rights will be forfeited on cessation of employment unless the Board determines otherwise. Board discretion The Board has discretion to adjust remuneration outcomes up or down to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any LTI award. CFO/Company Secretary Composition An equity-based LTI has been issued for FY2026, subject to performance-based and service-based vesting conditions. The FY2026 LTI has a three-year performance period commencing 1 July 2025. Opportunity 75,000 Performance Rights Performance Metrics / Assessment The equity-based LTI is subject to performance and service-based vesting conditions for the 3-year performance period ending 30 June 2028. The performance-based vesting conditions align with Silex’s primary strategic priority of commercialisation of the SILEX uranium enrichment technology and the delivery of priorities associated with increasing shareholder value, including a specific performance condition tied to Silex’s share price performance throughout the performance period. The performance metrics include the following vesting conditions: Vesting Condition 1 (50% LTI weighting): linked to sustained Silex Share Price appreciation and value creation for Silex shareholders. Share price appreciation will be measured by reference to the Company’s inclusion in the S&P/ASX 200. Vesting Conditions 2 & 3 (50% LTI weighting): relate to specific strategic deliverables associated with the Company’s investment in GLE, including positioning GLE for a successful Final Investment Decision. Due to commercial sensitivities and confidentiality, additional specificity is unable to be disclosed at this time. The service-based vesting condition requires that the CFO continues to be an eligible employee as at the date of payment of the LTI (i.e., date of issue of Silex Systems Limited shares following the vesting of Performance Rights). In the event the Performance Rights vest, any resulting allotment of Silex Systems Limited shares will be subject to a further escrow period of two years. Assessment: N/A for FY2026 Forfeiture and termination Performance Rights will lapse if vesting conditions are not met. Rights will be forfeited on cessation of employment unless the Board determines otherwise. Board discretion The Board has discretion to adjust remuneration outcomes up or down to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any LTI award. Silex Annual Report 2026 35
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Directors’ Report iii. Extended Long-term Incentives CEO/MD Composition As per shareholder approval at the 2021 AGM, the equity-based Extended LTI is a multi-year incentive equivalent to 412,500 Performance Rights for a 5.5-year performance period ending 31 December 2025. Opportunity 412,500 Performance Rights Performance Metrics / Assessment The performance period of the Extended LTI commenced on 1 July 2020 and ended 31 December 2025. The performance criteria were linked to specifically tailored outcomes relating to the scale-up of the unique SILEX uranium enrichment technology (i.e., TRL -6 demonstration) and assessed over a performance period ending no later than 31 December 2025. Achievement is subject to independent Board verification and the Extended LTI may be subject to early-vesting. In the event the performance and vesting criteria are achieved, any resulting allotment of Silex Systems Limited shares will be subject to a further escrow period of two years. Assessment: Following the achievement of TRL -6 for the SILEX uranium enrichment technology as announced to the ASX on 23 October 2025, the CEO’s Extended LTI comprising 412,500 Performance Rights fully vested. The shares issued are subject to a 2-year trading restriction from the date of issue, being 15 December 2025. Forfeiture and termination Performance Rights will lapse if performance conditions are not met. Rights will be forfeited on cessation of employment unless the Board determines otherwise. Board discretion The Board has discretion to adjust remuneration outcomes up or down to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any Extended LTI award. CFO/Company Secretary Composition The equity-based Extended LTI is a multi-year incentive equivalent to 300,000 Performance Rights for a five-year performance period ending 30 June 2026. Opportunity 300,000 Performance Rights Performance Metrics / Assessment The performance period of the Extended LTI commenced on 1 July 2021 and ended on 30 June 2026. The Extended LTI is subject to service-based and performance-based criteria linked to increased shareholder value. The Extended LTI is subject to four assessment points throughout the performance period, being at 30 June 2023, 2024, 2025 and 2026. In the event the vesting criteria are achieved at each assessment date, any resulting allotment of Silex Systems Limited shares will be subject to a further escrow period of two years. Assessment: With respect to performance-based and service-based criteria for the 3-year period ending 30 June 2026, it was assessed that the vesting criteria had been met and 75,000 Performance Rights vested. 75,000 shares are pending for issue to the CFO. The shares to be issued are subject to a 2-year trading restriction from the date of issue. Forfeiture and termination Performance Rights will lapse if performance conditions are not met. Rights will be forfeited on cessation of employment unless the Board determines otherwise. Board discretion The Board has discretion to adjust remuneration outcomes up or down to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any Extended LTI award. Silex Annual Report 2026 36
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Directors’ Report Silex’s (SLX:ASX) trading performance over various trading periods is as follows: Period ended 30 June 2026 Total Shareholder Return 12-months 26% 3-years 35% 5-years 490% Of note during the year was the Company’s achievement of TRL -6 in October 2025 and progress with activities contributing to positioning GLE for the potential commercial production of nuclear fuel by 2030. Our remuneration approach of ensuring remuneration outcomes have strong alignment with our shareholders’ interests, has been reflected in the Board’s decisions with respect to remuneration outcomes this year for our executive KMP , as detailed in section c. For further information on the Company’s performance during the year, refer to the Operating and Financial Review in section 4 of this Directors’ Report. Statutory performance indicators We aim to align executive KMP remuneration to our strategic and business objectives and the creation of shareholder wealth. The below table shows measures of the Company’s financial performance over the last five years as required by the Corporations Act 2001. However, as a pre-revenue company, the below measures are generally not the measures used in determining the variable amounts of remuneration to be awarded to executive KMP . As a consequence, there is only a partial correlation between the statutory key performance measures and the variable remuneration awarded. Year ended 30 June Earnings per share Cents Total STI awards to KMP $ Share price at 30 June $ 2022 (4.8) 228,601 2.10 2023 (8.1) 466,751 3.94 2024 (9.6) 482,192 5.33 2025 (17.9) 336,834 4.22 2026 (14.2) 746,393 5.30 d. Link between FY2026 remuneration and performance FY2026 performance and impact on remuneration The graph below provides the overview of the Company’s 5-year share price performance relative to S&P/ASX 200 (XJO:ASX), noting that the Company entered the ASX 200 on 22 December 2025. Silex’s 5-year trading performance (i.e., from 1 July 2021 to 30 June 2026) achieved a Total Shareholder Return of ~500% over the period. Silex Annual Report 2026 37
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Directors’ Report e. Contractual arrangements with executive KMP Component CEO/MD CFO/Company Secretary Total Fixed Remuneration (including superannuation) $800,000 $425,000 Contract duration Ongoing Common Law Contract Ongoing Common Law Contract Notice by the individual or Company 6 months 6 months Termination of employment (without cause) Partial payment for pro-rata STI, if applicable, may be at Board discretion. Unvested LTI may remain on foot subject to achievement of the performance criteria at the original date of testing. Partial payment for pro-rata STI, if applicable, may be at Board discretion. Unvested LTI may remain on foot subject to achievement of the performance criteria at the original date of testing. Termination of employment (with cause) or by the individual STI is not awarded and all unvested LTI will lapse. Vested and unexercised LTI may be exercised following termination at Board discretion. STI is not awarded and all unvested LTI will lapse. Vested and unexercised LTI may be exercised following termination at Board discretion. f. Non-executive directors’ remuneration arrangements The remuneration of non-executive directors is set to ensure that the Company can attract and retain the services of highly qualified and experienced non-executive directors. The fees payable to our Chair and other non-executive directors are reviewed annually and are positioned with reference to median fees of a selected group of comparator companies and are exclusive of superannuation. Directors do not receive performance-based pay. Additional fees may be payable to non-executive directors should they undertake specific consulting projects for the Company in the areas of their expertise. No additional fees were paid for additional services or consulting rendered during FY2026. All non-executive directors enter into a written agreement with the Company in the form of a letter of appointment. The maximum annual aggregate directors’ fee pool limit is $750,000 and was approved by shareholders at the 2011 AGM. Non-executive directors’ fees for FY2026 are detailed in the table below, noting that the fees were unchanged from FY2025. The fees were recently reviewed and the Directors’ fees to take effect from 1 July 2026 are also detailed below. Annual Directors’ fees From 1 July 2025 to 30 June 20261 From 1 July 20261 Base fees Chair (all-inclusive fee) 235,000 243,500 Other Non-executive directors 120,000 124,500 Committee fees2 Audit and Risk Committee – Chair 10,000 10,000 Audit and Risk Committee – Member 8,000 8,000 Remuneration and Nomination Committee – Chair 10,000 10,000 Remuneration and Nomination Committee – Member 8,000 8,000 Other Global Laser Enrichment Holdings LLC – Chair3 – 6 months 37,500 – Global Laser Enrichment Holdings LLC – Chair3 – 12 months – 75,000 1. Amounts are exclusive of superannuation 2. Payable in event position is held by a non-executive director who is not Chair of the Board 3. Fee of $75,000 p.a. payable in cash from 1 January 2026 to 31 December 2027 Silex Annual Report 2026 38
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Directors’ Report g. Statutory remuneration disclosures for KMP remuneration The table below has been prepared in accordance with the requirements of the Corporations Act 2001 and relevant accounting standards in Australia. This table details the remuneration for the Company’s KMP for the current and previous financial year. Fixed remuneration Variable remuneration Cash salary and fees1 Annual and long service leave2 Post- employment benefits Performance Payments (cash)1 Performance Rights (deferred shares)3 Options3 Total Performance related Name Year $ $ $ $ $ $ $ % Executive directors Dr M P Goldsworthy 2026 770,000 49,769 30,000 177,000 640,732 48,478 1,715,979 50% 2025 770,068 80,649 29,932 – 226,961 76,157 1,183,767 26% Non-executive directors Mr C A Roy 2026 305,200 – – – – – 305,200 – 2025 255,269 – 6,756 – – – 262,025 – Ms S J Corlett 2026 138,000 – 16,560 – – – 154,560 – (from 22 Nov 2024) 2025 83,770 – 9,634 – – – 93,404 – Mr C D Wilks 2026 148,240 – 4,080 – – – 152,320 – 2025 136,802 – 15,732 – – – 152,534 – Former directors Ms H G Cook 2026 – – – – – – – – (until 22 Nov 2024) 2025 54,865 – 6,309 – – – 61,174 – Other KMP and group executives Ms J E Russell 2026 395,000 18,683 30,000 144,000 327,146 11,764 926,593 52% 2025 395,068 19,274 29,932 – 263,744 22,915 730,933 39% Total executive directors and other KMPs 2026 1,165,000 68,452 60,000 321,000 967,878 60,242 2,642,572 2025 1,165,136 99,923 59,864 – 490,705 99,072 1,914,700 Total non-executive director remuneration 2026 591,440 – 20,640 – – – 612,080 2025 530,706 – 38,431 – – – 569,137 Total KMP remuneration 2026 1,756,440 68,452 80,640 321,000 967,878 60,242 3,254,652 2025 1,695,842 99,923 98,295 – 490,705 99,072 2,483,837 1. Short-term benefits as per Corporations Regulations 2M 3.03(1) Item 6 2. Other long-term benefits as per Corporations Regulations 2M 3.03(1) Item 8. The amounts disclosed in this column represent the increase/(decrease) in the associated provisions 3. Equity-settled share-based payments as per Corporations Regulations 2M.3.03(1) Item 11. With regard to the group’s executives, this includes STI (via Performance Rights), LTI (via Options and Performance Rights) and Extended LTI (via Performance Rights) Silex Annual Report 2026 39
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Directors’ Report h. Performance-based remuneration granted and forfeited during the year A summary of the performance-based remuneration granted and forfeited to executive KMP during FY2026 follows: STI (Rights)1 STI (Cash) Total opportunity Awarded Forfeited Total opportunity Awarded Forfeited Name $ % % $ % % Dr M P Goldsworthy 564,116 77% 23% 100,000 77% 23% Ms J E Russell 213,780 80% 20% 80,000 80% 20% 1. STI (Rights) Awards subject to completion of service-based condition ending 31 July 2026 Name LTI (Options) LTI (Rights) Extended LTI (Rights)1 Value granted Value exercised Value granted Awarded Forfeited Value granted Awarded Forfeited $ $ $ % % $ % % Dr M P Goldsworthy – 1,119,000 682,380 – – – 100% – Ms J E Russell – 2,329,850 426,488 – – – 25% – 1. For the CFO/Company Secretary, the Extended LTI comprises 300,000 Performance Rights to cover 5 performance years commencing 1 July 2021 and ending 30 June 2026. The award for FY2026 of 75,000 rights is with respect to the 3-year performance and service period ended 30 June 2026. Shares are pending for issue. The Extended LTI was granted on 21 June 2022. The value at grant date is calculated in accordance with AASB 2 Share-based Payment i. Terms and conditions of the equity-based payment arrangements STI – Performance Rights An annual STI in the form of Performance Rights is granted to executive KMP . The rights vest at the end of a 12-month performance period subject to the achievement of individually tailored KPIs. Each right that vests is converted into one ordinary share. The rights carry no dividend or voting rights. The fair value of the rights is determined based on the market price of the Company’s shares at the grant date or for those rights which are subject to a market condition, with reference to a Monte Carlo simulation taking into account the volatility of the Company’s shares and other factors. Grant date Vesting date Value per right at grant date $ Performance achieved % Vested % 26/08/20241 31/07/2025 $1.211 0% – 26/08/2024 31/07/2025 $3.713 65% 65% 25/08/2025 31/07/2026 $3.054 80%2 – 17/10/2025 31/07/2026 $6.367 77%2 – 1. These rights have market conditions and have been valued using a Monte Carlo simulation approach 2. Award subject to completion of service-based condition ending 31 July 2026 Silex Annual Report 2026 40
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Directors’ Report LTI – Options A 3-year LTI comprising options over ordinary shares in the Company was provided as remuneration to executive KMP with respect to FY2021 to FY2025 for the CEO and FY2022 to FY2024 for the CFO. The options carry no dividend or voting rights. The options are subject to a service-based condition which must be satisfied for the options to vest. When exercisable, each option is convertible into one ordinary share of Silex Systems Limited. The exercise price of options is based on the volume weighted average price at which the Company’s shares are traded on the Australian Stock Exchange for the 10-trading days preceding a Board resolution to grant options. Details of options vested during the year are shown below. Following the completion of the independent remuneration review, no additional options are planned for issue to executive KMP at the current time. The terms and conditions of each grant of options affecting remuneration in the current or a future reporting period are as follows: Grant date Vesting date Expiry date Exercise price $ Value per option at grant date $ Performance achieved % Vested % 26/07/2021 30/06/2025 30/06/2027 $0.94 $0.4714 100% 100% 26/07/2021 30/06/2026 30/06/2028 $0.94 $0.4904 100% 100% 14/10/2021 25/06/2024 28/10/2026 $0.94 $0.7249 100% 100% 14/10/2021 30/06/2024 28/10/2026 $0.94 $0.7249 100% 100% 14/10/2021 30/06/2025 28/10/2027 $0.94 $0.7727 100% 100% 14/10/2021 30/06/2026 28/10/2028 $0.94 $0.7965 100% 100% 14/10/2021 30/06/2027 28/10/2029 $0.94 $0.8308 To be determined To be determined LTI – Performance Rights Following the completion of the independent remuneration review, the issue of LTIs to executive KMP will be in the form of Performance Rights. The Performance Rights vest at the end of multi-year performance periods, subject to the achievement of individually tailored objectives. Each right that vests is converted into one ordinary share of Silex Systems Limited. The rights carry no dividend or voting rights. The CFO received an LTI underpinned by Performance Rights for FY2025 with a 3-year performance period ending 30 June 2027. Following shareholder approval at the 2025 AGM for the CEO’s multi-year LTI, a FY2026 LTI was issued to both the CEO and CFO, for a 3-year performance period ending 30 June 2028. The fair value of the rights is determined based on the market price of the Company’s shares at the grant date or for those rights which are subject to a market condition, with reference to a Monte Carlo simulation taking into account the volatility of the Company’s shares and other factors. Grant date Vesting date Value per right at grant date $ Performance achieved % Vested % 17/12/2024 30/06/2027 $4.076 To be determined To be determined 17/12/20241 30/06/2027 $2.878 To be determined To be determined 17/10/2025 31/07/2028 $6.367 To be determined To be determined 17/10/20251 31/07/2028 $5.006 To be determined To be determined 1. These rights have market conditions and have been valued using a Monte Carlo simulation approach Extended LTI – Performance Rights Extended LTIs in the form of Performance Rights were granted to executive KMP . The rights vest at the end of multi-year performance periods, subject to the achievement of individually tailored objectives. Each right that vests is converted into one ordinary share of Silex Systems Limited. The rights carry no dividend or voting rights. The fair value of the rights is determined based on the market price of the Company’s shares at the grant date or for those rights which are subject to a market condition, with reference to a Monte Carlo simulation taking into account the volatility of the Company’s shares and other factors. Following the conclusion of the respective Extended LTIs for the CEO and CFO in FY2026, no further Extended LTIs will be offered. Grant date Vesting date Value per right at grant date $ Performance achieved % Vested % 14/10/2021 31/12/2025 $1.132 100% 100% 21/06/20221 30/06/2026 $0.835 100% 100% 1. These rights have market conditions and have been valued using a Monte Carlo simulation approach Silex Annual Report 2026 41
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Directors’ Report j. Reconciliation of options, rights and ordinary shares held by executive KMP Options held by KMP The table below shows a reconciliation of options held by each executive KMP from the beginning to the end of FY2026. Name and grant date Balance at the start of the year (Number) Granted as compensation (Number) Vested Exercised (Number) Balance at end of year Vested and exercisable (Number) Unvested (Number)(Number) % Dr M P Goldsworthy 14/10/2021 450,000 – 300,000 67% 150,000 150,000 150,000 450,000 – 300,000 150,000 150,000 150,000 Ms J E Russell 24/03/2021 155,000 – 155,000 100% 155,000 – – 26/07/2021 260,000 – 260,000 100% 160,000 100,000 – 415,000 – 415,000 315,000 100,000 – Rights held by KMP The table below shows a reconciliation of rights held by each KMP from the beginning to the end of FY2026. Name and grant date Balance at the start of the year (Number) Granted as compensation (Number) Vested Forfeited Balance at end of year Unvested (Number)(Number) % % Dr M P Goldsworthy 14/10/2021 412,500 – 412,500 100% – – – 26/08/2024 75,000 – 45,000 60% 30,000 40% – 17/10/20251 – 88,600 – – – – 88,600 17/10/2025 – 120,000 – – – – 120,000 487,500 208,600 457,500 30,000 208,600 Ms J E Russell 21/06/20222 75,000 – 75,000 100% – – – 26/08/2024 70,000 – 42,000 60% 28,000 40% – 17/12/2024 50,000 – – – – – 50,000 25/08/20253 – 70,000 – – – – 70,000 17/10/2025 – 75,000 – – – – 75,000 195,000 145,000 117,000 28,000 195,000 1. 77% of the Performance Rights will vest subject to completion of an underlying service-condition on 31 July 2026 2. 75,000 rights vested with respect to the 3-year performance and service period ending 30 June 2026. Shares are pending for issue 3. 80% of the Performance Rights will vest subject to completion of an underlying service-condition on 31 July 2026 Silex Annual Report 2026 42
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Directors’ Report Shares held by KMP The below table shows the number of ordinary shares in the Company that were held during the financial year by KMP of the Company, including by entities related to them: Name Balance at the start of the year (Number) Received during the year on the exercise of options (Number) Received on vesting of rights to shares (Number) Other changes during the year (Number) Balance at the end of the year (Number) Directors of Silex Systems Limited Mr C A Roy 259,507 – – (129,507) 130,000 Dr M P Goldsworthy 6,385,118 150,000 457,500 (1,212,500) 5,780,118 Ms S J Corlett 9,842 – – – 9,842 Mr C D Wilks 2,833,716 – – (850,000) 1,983,716 Other executive KMP Ms J E Russell 419,566 315,000 117,000 (235,850) 615,716 The Company implemented a Minimum Shareholding Requirements (MSR) Policy for non-executive directors and executives effective 1 July 2024. The Policy requires a MSR as follows: – Non-executive directors: 100% of gross annual base fees – Executive KMP (CEO & CFO): 100% of TFR – Other Company executives: 100% of TFR Compliance is required within five years of appointment and MSR compliance references the aggregate value of current shareholdings at the completion of each financial year. The table below shows the status of the MSR for each non-executive director and executive KMP as at 30 June 2026: Name Balance at the end of the year (Number) Target MSR $ MSR Achieved at 30 June 20261 MSR on Track Non-executive directors of Silex Systems Limited Mr C A Roy2 130,000 $235,000 Yes N/A Ms S J Corlett 9,842 $120,000 No Yes Mr C D Wilks 1,983,716 $120,000 Yes N/A Other executive KMP Dr M P Goldsworthy 5,780,118 $800,000 Yes N/A Ms J E Russell 615,716 $425,000 Yes N/A 1. MSR achievement assessed on basis of Silex’s share price of $5.30 as at 30 June 2026 2. Excludes fees payable with regard to the 2-year appointment as Chair of Global Laser Enrichment Holdings LLC ending 31 December 2027 Securities Trading Policy The Silex Securities Trading Policy applies to all staff including KMP . It prohibits staff from buying or selling Silex securities at times when they are in possession of inside information. In addition, staff are only permitted to trade in Silex securities during certain open periods. The Silex Securities Trading Policy is available on the Company’s website at: www.silex.com.au. k. Use of external remuneration consultants The Company engaged EY to complete an independent remuneration benchmarking and design review of the remuneration framework for executive KMP and non-executive directors. This review was completed in early FY2025. No remuneration recommendations were provided. As the review included multi-year recommendations that were implemented in FY2025, and with respect to equity-incentives for the CEO approved by shareholders at the 2025 AGM, a remuneration consultant was not engaged in FY2026. l. Voting at the Company’s 2025 Annual General Meeting Silex Systems Limited received more than 99% of “yes” votes on its Remuneration Report for the 2025 financial year. Silex Annual Report 2026 43
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Directors’ Report 10. Shares under option Unissued ordinary shares of Silex Systems Limited under option at the date of this report are as follows: Date options granted1 Expiry date Issue price of shares $ Under option (Number) 26/07/2021 Various 0.94 100,000 14/10/2021 Various 0.94 300,000 18/03/2022 17/03/2027 1.19 113,500 17/04/2023 16/04/2028 3.77 530,800 19/12/2023 18/12/2026 3.47 50,000 23/04/2024 22/04/2029 5.00 650,000 05/12/2024 04/12/2027 4.50 75,000 27/11/2025 30/06/2030 4.06 120,000 02/12/2025 01/12/2028 5.37 75,000 1. The options granted include issues to eligible employees in accordance with the Silex Systems Limited Employee Incentive Plan and includes options granted as remuneration to executive KMP No option holder has any right under the options to participate in any other share issue of the Company or any other entity. No options were granted since the end of the financial year. 11. Indemnification and insurance of directors The Company has entered into Deeds to indemnify the directors and executive officers of the Company against all liabilities to persons (other than the Company or related body corporate) which arise out of the performance of their normal duties as directors or executive officers unless the liability relates to conduct involving lack of good faith. The Company has agreed to indemnify the directors and executive officers against all costs and expenses incurred in defending an action that falls within the scope of the indemnity. The Directors’ & Officers’ Liability Insurance provides cover against all costs and expenses involved in defending legal actions and any resulting payments arising from a liability to persons (other than the Company) incurred in their position as a director or executive officer unless the conduct involves a wilful breach of duty or an improper use of inside information or position to gain advantage. The insurance policy does not allow specific disclosure of the nature of the liabilities insured against or the premium paid under the policy. 12. Indemnity of auditors To the extent permitted by law, Silex has agreed to indemnify its auditors, PricewaterhouseCoopers (PwC), as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to PwC by the Company pursuant to this indemnify, either during or since the end of the financial year. 13. Environmental regulation Silex seeks to be compliant with all environmental laws and regulations relevant to its operations. The Company monitors compliance on a regular basis. The Audit and Risk Committee has oversight of environmental risks and compliance. The Company is subject to the environmental and health and safety regulations applicable to tenants of the Lucas Heights Science and Technology Centre. The Company is also bound by the rules and regulations set out in the Australian Radiation Protection and Nuclear Safety Act, 1998, and is a licensee under the Act. To the best of the Directors’ knowledge, all environmental and health and safety regulatory requirements have been met and there have been no claims made, prosecutions commenced or fines incurred during the financial year. Silex Annual Report 2026 44
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Directors’ Report 14. Audit and non-audit services Details of the amounts paid or payable to the auditor PwC for audit and non-audit services during the year are disclosed in note 20 Remuneration of auditors. The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Company and/or the consolidated entity are important. The Board of Directors, in accordance with advice provided by the Audit and Risk Committee, is satisfied that the provision of non-audit services in FY2025 is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of non-audit services by the auditor did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons: – All non-audit services have been reviewed by the Audit and Risk Committee to ensure they do not impact the impartiality and objectivity of the auditor, and – None of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants. 15. Auditors’ independence declaration A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 46. 16. Rounding of amounts The Company is of a kind referred to in ASIC Legislative Instrument 2026/183, relating to the ‘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 thousand dollars, or in certain cases, to the nearest dollar. This report is made in accordance with a resolution of the Directors. Dr M P Goldsworthy CEO/MD Sydney 27 August 2026 Mr C A Roy Chair Silex Annual Report 2026 45
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PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, BARANGAROO NSW 2000, GPO BOX 2650 SYDNEY NSW 2001 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation. Auditor’s Independence Declaration As lead auditor of Silex Systems Limited's financial report for the year ended 30 June 2026, I declare that, to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit of the financial report; and b) no contraventions of any applicable code of professional conduct in relation to the audit of the financial report. Aishwarya Chandran Sydney Partner 27 August 2026 PricewaterhouseCoopers Auditors’ independence declaration Silex Annual Report 2026 46
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Corporate Governance Statement Silex Systems Limited (the Company) and the Board are committed to achieving and demonstrating the highest standards of corporate governance. The Company has reviewed its corporate governance practices against the Corporate Governance Principles and Recommendations (4th Edition) published by the ASX Corporate Governance Council. The 2026 Corporate Governance Statement reflects the corporate governance practices in place throughout the 2026 financial year. The 2026 Corporate Governance Statement was approved by the Board and lodged with the ASX Appendix 4G on 27 August 2026. A description of the Company’s current corporate governance practices is set out in the Company’s Corporate Governance Statement which can be viewed on the Company’s website at www.silex.com.au. Silex Annual Report 2026 47
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Directors’ Report Annual Financial Report Silex Annual Report 2026 48
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Annual Financial Report For the Financial Year 30 June 2026 Silex Systems Limited ABN 69 003 372 067 This financial report covers the consolidated entity consisting of Silex Systems Limited and its subsidiaries. A list of subsidiaries is included in note 15. The financial report is presented in the Australian currency. Silex Systems Limited is a company limited by its shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Silex Systems Limited Building 64 Lucas Heights Science & Technology Centre New Illawarra Road Lucas Heights NSW 2234 Australia The financial report was authorised for issue by the Directors on 27 August 2026. The Directors have the power to amend and reissue the financial report. All announcements, financial reports and other information are available on our website: www.silex.com.au. Consolidated Financial Statements 50 Consolidated statement of profit or loss 51 Consolidated statement of comprehensive income 52 Consolidated statement of financial position 53 Consolidated statement of changes in equity 54 Consolidated statement of cash flows 55 Notes to the consolidated financial statements 86 Consolidated entity disclosure statement 87 Directors’ declaration 88 Independent auditor’s report 93 Shareholder Information Silex Annual Report 2026 49
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Consolidated Financial Statements Notes 2026 $ 2025 $ Revenue from contracts with customers 3 13,708,525 7,267,654 Interest revenue 3 7,877,190 4,936,635 Revenue from continuing operations 21,585,715 12,204,289 Other income 4 5,157,120 6,409,422 Research and development materials (2,246,441) (4,955,346) Finance costs 5 (67,597) (90,578) Depreciation and amortisation expense 5 (505,603) (496,596) Employee benefits expense (12,659,376) (10,697,353) Consultants and professional fees (1,572,645) (2,047,149) Printing, postage, freight, stationery and communications (62,104) (74,352) Property outgoings (107,186) (89,825) Net foreign exchange gains and (losses) 5 (1,631,010) 294,832 Share of net loss of associates and joint ventures accounted for using the equity method 15(b) (45,465,291) (41,740,072) Other expenses from continuing activities (1,046,265) (1,274,508) (Loss) before income tax expense (38,620,683) (42,557,236) Income tax expense 6 – – Net (loss) from continuing operations (38,620,683) (42,557,236) Net (loss) for the year (38,620,683) (42,557,236) Net (loss) is attributable to: Owners of Silex Systems Limited (38,620,683) (42,557,236) Notes 2026 Cents 2025 Cents Earnings per share for (loss) from continuing operations attributable to the ordinary equity holders of the Company Basic earnings per share 21 (14.2) (17.9) Diluted earnings per share 21 (14.2) (17.9) Earnings per share for (loss) attributable to the ordinary equity holders of the Company Basic earnings per share 21 (14.2) (17.9) Diluted earnings per share 21 (14.2) (17.9) The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes Consolidated statement of profit or loss For the year ended 30 June 2026 50 Silex Annual Report 2026
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Consolidated Financial Statements Notes 2026 $ 2025 $ Net (loss) for the year (38,620,683) (42,557,236) Other comprehensive income Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations (1,135,478) 744,832 Items that will not be reclassified to profit or loss: Changes in the fair value of equity investments at fair value through other comprehensive income 7(e) 4,569,107 (2,573,925) Other comprehensive income/(loss) for the year, net of tax 3,433,629 (1,829,093) Total comprehensive income/(loss) for the year (35,187,054) (44,386,329) Attributable to: Owners of Silex Systems Limited (35,187,054) (44,386,329) Total comprehensive income/(loss) for the year (35,187,054) (44,386,329) The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes Consolidated statement of comprehensive income For the year ended 30 June 2026 Silex Annual Report 2026 51
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Consolidated Financial Statements Notes 2026 $ 2025 $ Assets Current assets Cash and cash equivalents 7(a) 16,033,107 19,750,436 Other financial assets at amortised cost - term deposits 7(b) 164,711,632 37,100,000 Financial assets at fair value through profit or loss – dual currency term deposits 7(b) – 23,704,684 Trade and other receivables 7(c) 8,591,213 6,638,679 Other current assets 7(d) 783,447 597,120 Financial assets at fair value through other comprehensive income 7(e) – 1,403,516 Derivative financial instruments 7(f) 81,630 476,415 Total current assets 190,201,029 89,670,850 Non-current assets Investments accounted for using the equity method 15(b) 16,995,520 8,047,420 Right-of-use assets 9(a) 564,541 842,108 Property, plant and equipment 7(g) 311,244 399,110 Total non-current assets 17,871,305 9,288,638 Total assets 208,072,334 98,959,488 Liabilities Current liabilities Trade and other payables 8(a) 5,182,737 6,039,212 Lease liabilities 9(a) 306,735 281,066 Provisions 8(b) 965,751 953,030 Total current liabilities 6,455,223 7,273,308 Non-current liabilities Lease liabilities 9(a) 335,462 629,138 Provisions 8(b) 85,052 109,175 Total non-current liabilities 420,514 738,313 Total liabilities 6,875,737 8,011,621 Net assets 201,196,597 90,947,867 Equity Contributed equity 10(a) 539,792,843 392,701,992 Reserves 10(b) 17,001,474 12,939,064 Accumulated losses 10(c) (355,597,720) (314,693,189) Total equity 201,196,597 90,947,867 The above consolidated statement of financial position should be read in conjunction with the accompanying notes Consolidated statement of financial position As at 30 June 2026 Silex Annual Report 2026 52
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Consolidated Financial Statements Attributable to owners of Silex Systems Limited Contributed equity $ Reserves $ Accumulated losses $ Total $ Balance at 30 June 2024 390,665,622 13,408,671 (272,135,953) 131,938,340 Net (loss) for the year – – (42,557,236) (42,557,236) Other comprehensive income/(loss) – (1,829,093) – (1,829,093) Total comprehensive income/(loss) for the year – (1,829,093) (42,557,236) (44,386,329) Transactions with owners in their capacity as owners Contributions of equity net of transaction costs 697,777 – – 697,777 Share-based payments – value of services – 2,698,079 – 2,698,079 Transfer from share-based payments reserve 1,338,593 (1,338,593) – – 2,036,370 1,359,486 – 3,395,856 Balance at 30 June 2025 392,701,992 12,939,064 (314,693,189) 90,947,867 Net (loss) for the year – – (38,620,683) (38,620,683) Other comprehensive income – 3,433,629 – 3,433,629 Total comprehensive income/(loss) for the year – 3,433,629 (38,620,683) (35,187,054) Transactions with owners in their capacity as owners Contributions of equity net of transaction costs 144,230,290 – – 144,230,290 Transfer of (loss) on disposal of equity investments at fair value through other comprehensive income to accumulated losses – – (2,283,848) (2,283,848) Share-based payments – value of services – 3,489,342 – 3,489,342 Transfer from share-based payments reserve 2,860,561 (2,860,561) – – 147,090,851 628,781 (2,283,848) 145,435,784 Balance at 30 June 2026 539,792,843 17,001,474 (355,597,720) 201,196,597 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes Consolidated statement of changes in equity For the year ended 30 June 2026 Silex Annual Report 2026 53
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Consolidated Financial Statements Consolidated statement of cash flows For the year ended 30 June 2026 Notes 2026 $ 2025 $ Cash flows from operating activities Receipts from customers and government grants (inclusive of GST) 19,639,802 17,027,104 Payments to suppliers and employees (inclusive of GST) (16,684,374) (20,018,219) Interest received 5,296,849 6,098,360 Interest paid (67,597) (90,578) Net cash inflows from operating activities 11(a) 8,184,680 3,016,667 Cash flows from investing activities Payments for investments accounted for using the equity method (55,088,943) (35,851,480) Payments for other financial assets at amortised cost – term deposits (275,411,632) (14,000,000) Proceeds from other financial assets at amortised cost – term deposits 147,800,000 71,100,000 Payments for financial assets at fair value through profit or loss – dual currency term deposits (81,463,860) (116,851,460) Proceeds from financial assets at fair value through profit or loss – dual currency term deposits 105,168,544 93,146,776 Proceeds from financial assets at fair value through other comprehensive income 3,432,540 – Payments for property, plant and equipment 7(g) (107,663) (161,274) Proceeds from sale of property, plant and equipment – 4,321 Net cash (outflows) from investing activities (155,671,014) (2,613,117) Cash flows from financing activities Proceeds from issue of shares, net of transaction costs 10(a) 144,230,290 697,777 Repayment of principal elements of leases (301,861) (294,719) Net cash inflows from financing activities 143,928,429 403,058 Net (decrease)/increase in cash and cash equivalents (3,557,905) 806,608 Cash and cash equivalents at the beginning of the financial year 19,750,436 18,889,379 Effects of exchange rate changes on cash (159,424) 54,449 Cash and cash equivalents at end of year1, 2 16,033,107 19,750,436 Non-cash financing and investing activities 11(b) 1. Term deposits excluded from cash and cash equivalents 164,711,632 37,100,000 2. Dual currency term deposits excluded from cash and cash equivalents – 23,704,684 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes Silex Annual Report 2026 54
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Notes to the consolidated financial statements 56 Note 1 Significant changes in the current reporting period How numbers are calculated 56 Note 2 Segment information 58 Note 3 Revenue from continuing operations 58 Note 4 Other income 59 Note 5 Expenses 59 Note 6 Income tax expense 60 Note 7 Assets 63 Note 8 Liabilities 65 Note 9 Leases 66 Note 10 Equity 68 Note 11 Cash flow information Risk 68 Note 12 Critical accounting estimates and judgements 69 Note 13 Financial risk management 71 Note 14 Climate change Group structure 72 Note 15 Interests in other entities Additional notes to the financial statements 74 Note 16 Commitments for expenditure and guarantees 74 Note 17 Events occurring after the reporting date 74 Note 18 Related party transactions 75 Note 19 Share-based payments 79 Note 20 Remuneration of auditors 79 Note 21 Earnings per share 80 Note 22 Parent entity financial information 81 Note 23 Summary of other potentially material accounting policies Silex Annual Report 2026 55
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Notes to the consolidated financial statements Note 1 Significant changes in the current reporting period Share capital increased by $147,090,851 (from $392,701,992 to $539,792,843) as a result of the August 2025 institutional placement, SPP , and the various issues of shares on the exercise of performance rights and options granted under the Silex Systems Limited Employee Incentive Plan. Details of the changes in share capital are disclosed in note 10(a) to the consolidated financial statements. Note 2 Segment information a. Description of segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors. Management has determined that there are three operating segments based on the reports reviewed by Management and the Board of Directors to make strategic decisions. These segments are Silex Systems, Translucent and Silex USA. Silex Systems is based in New South Wales. The main activities of the Silex Systems operating segment are to conduct development and commercialisation activities across the SILEX laser-based uranium enrichment technology project, silicon enrichment project and other early- stage research activities in the stable isotope project. Translucent is based in North Carolina and is entitled to royalty revenue for the sale of the cREO® technology in 2018. Silex USA is also based in North Carolina and indirectly holds the equity accounted investment in GLE, and the corresponding share of the loss from GLE. b. Segment information provided to Management and the Board of Directors The segment information provided to Management and the Board of Directors for the reportable segments for the year ended 30 June 2026 is as follows: 2026 Silex Systems Translucent Silex USA Total $ $ $ $ Total segment revenue 13,283,319 2,087,385 – 15,370,704 Inter-segment revenue eliminated – (1,662,179) – (1,662,179) Revenue from external customers 13,283,319 425,206 – 13,708,525 Interest revenue 7,877,190 – – 7,877,190 Revenue from continuing operations 21,160,509 425,206 – 21,585,715 Segment result 6,428,743 456,234 (45,505,660) (38,620,683) Other profit and loss disclosures Depreciation and amortisation 505,603 – – 505,603 Interest expense 67,597 – – 67,597 Income tax expense – – – – Share of net loss of joint venture using the equity method – – 45,465,291 45,465,291 Total segment assets 186,917,992 3,883,389 17,270,953 208,072,334 Total assets include: Additions to non-current assets (other than deferred tax and investments in joint ventures) 141,517 – – 141,517 Amount invested in joint ventures accounted for using the equity method – – 55,088,943 55,088,943 Total segment liabilities 6,532,211 2,880 340,646 6,875,737 Silex Annual Report 2026 56
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Notes to the consolidated financial statements Note 2 (b)Segment information provided to Management and the Board of Directors (continued) 2025 Silex Systems Translucent Silex USA Total $ $ $ $ Total segment revenue 6,850,523 2,023,423 – 8,873,946 Inter-segment revenue eliminated (58,126) (1,548,166) – (1,606,292) Revenue from external customers 6,792,397 475,257 – 7,267,654 Interest revenue 4,936,635 – – 4,936,635 Revenue from continuing operations 11,729,032 475,257 – 12,204,289 Segment result (693,412) 410,238 (42,274,062) (42,557,236) Other profit and loss disclosures Depreciation and amortisation 496,596 – – 496,596 Interest expense 90,578 – – 90,578 Income tax expense – – – – Share of net loss of joint venture using the equity method – – 41,740,072 41,740,072 Total segment assets 86,065,685 4,836,383 8,057,420 98,959,488 Total assets include: Additions to non-current assets (other than deferred tax and investments in joint ventures) 184,223 – – 184,223 Amount invested in joint ventures accounted for using the equity method – – 35,851,480 35,851,480 Total segment liabilities 7,909,636 14,594 87,391 8,011,621 c. Other segment information i. Segment revenue Sales between Silex entities are carried out at arm’s length and are eliminated on consolidation. Silex is domiciled in Australia. Translucent and Silex USA are domiciled in the United States. Segment revenues are allocated based on the country in which the customer is located. The amount of the Company’s revenue from external customers in the United States is $13,283,319 (2025: $6,792,397) and the total segment revenue from external customers in Wales, United Kingdom is $425,206 (2025: $475,257). ii. Segment result The Board of Directors assess the performance of the operating segments based on results that excludes exchange gains and losses on intercompany loans which eliminate on consolidation. The segment result is the profit/(loss) before tax for each operating segment. iii. Segment assets Assets which eliminate on consolidation such as investments in controlled entities and intercompany receivables are excluded from segment assets. Segment assets agree to the consolidated statement of financial position for both periods. The total of non-current assets located in Australia is $814,279 (2025: $1,152,275) and the total of these non-current assets located in the United States is $17,057,026 (2025: $8,136,363). iv. Segment liabilities Reportable segment liabilities exclude intercompany loans, income tax payable and deferred tax liabilities. Segment liabilities agree to the consolidated statement of financial position for both periods. Silex Annual Report 2026 57
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Notes to the consolidated financial statements Note 3 Revenue from continuing operations 2026 2025 $ $ Milestone revenue 7,577,020 – Recoverable project costs 5,706,299 6,792,397 Royalty revenue - sale of cREO® technology 425,206 475,257 13,708,525 7,267,654 Interest revenue 7,877,190 4,936,635 21,585,715 12,204,289 Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised for the following business activities: i. Recoverable project costs Project costs recoverable from GLE for the Company’s costs incurred for the SILEX uranium enrichment development program are recorded as revenue when the related costs are incurred. The performance obligation is to provide technology development activities. The obligation is fulfilled as and when the activities occur, under the exclusive Licence Agreement for the SILEX uranium enrichment technology. Revenues of $5,706,299 (2025: $6,792,397) were derived from GLE for recoverable project costs on the uranium enrichment project. GLE is based in the United States. Because the customer simultaneously receives and consumes the benefits of the activities, the revenue is recognised over time. The Company applies the practical expedient in AASB 15 Revenue from Contracts with Customers and recognises revenue at the amount it has a right to invoice. Therefore, revenue recognised equals the costs incurred by Silex during the period. This corresponds to the value transferred to the licensee in accordance with the Licence Agreement. ii. Milestone revenue Milestone revenue represents revenue in accordance with the exclusive Licence Agreement for the SILEX uranium enrichment technology. Milestone revenue is recognised when it is highly probable that a significant reversal of revenue will not occur. The constraint is lifted when the milestone is achieved and, in this case, when independent verification of TRL -6 was achieved in October 2025, the revenue was recognised. iii. Royalty revenue – sale of intellectual property – cREO® technology – accounting policy and significant judgements Variable consideration from the sale of Translucent’s cREO® technology is required to be estimated in accordance with AASB 15. The variable consideration in the form of royalties relating to the sale of the cREO® technology is calculated using the most likely amount method. Royalty revenue of $425,206 was recognised during the year (2025: $475,257). IQE Plc is based in Wales, United Kingdom. The revenue is currently recognised at a point in time and estimated at each reporting date. iv. Interest revenue Interest revenue is recognised on a time proportion basis using the effective interest method. Interest revenue was derived from the investment of the Company’s cash reserves in Australia. Note 4 Other income 2026 2025 $ $ Research and development tax incentive 3,130,054 4,209,827 Government grants – Defence Trailblazer1 1,230,438 1,517,909 Other income – project subsidies 796,628 681,686 5,157,120 6,409,422 1. Defence Trailblazer for Concept to Sovereign Capability Program With respect to the research and development tax incentive and government grants, other income is recognised when there is reasonable assurance that the incentive/grant will be received and the amount can be reliably calculated. Silex Annual Report 2026 58
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Notes to the consolidated financial statements Note 5 Expenses Net (loss) from continuing operations before income tax includes the following expenses: 2026 2025 $ $ Depreciation of plant and equipment – refer note 7(g) 194,183 184,352 Depreciation on right-of-use assets – refer note 9(b) 311,420 312,244 Total depreciation and amortisation 505,603 496,596 Finance costs Interest and finance charges paid/payable 67,597 90,578 Finance costs expensed 67,597 90,578 Defined contribution superannuation expense 617,847 570,032 Foreign exchange losses/(gains) (net) 1,631,010 (294,832) Note 6 Income tax expense This note provides an analysis of the Company’s income tax expense and explains why a deferred tax asset has not been recognised by the Company. a. Numerical reconciliation of income tax expense to prima facie tax payable 2026 2025 $ $ (Loss) before income tax expense (38,620,683) (42,557,236) Income tax calculated @ 25.0% (9,655,171) (10,639,309) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Share-based payments 872,336 674,520 Research and development tax incentive 1,297,939 2,511,748 Sundry items 4,000 4,000 (7,480,896) (7,449,041) Net deferred tax asset not recognised 6,805,155 6,821,084 Difference in overseas tax rates 675,741 627,957 Income tax expense – – b. Tax losses 2026 2025 $ $ Unused tax losses for which no deferred tax asset has been recognised 235,557,333 222,126,813 Potential tax benefit at tax rate 55,275,619 52,394,799 A deferred tax asset has not been recognised as the consolidated entity has a history of tax losses. The benefit of a deferred tax asset will only be obtained if: i. the consolidated entity derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised; ii. the consolidated entity continues to comply with the conditions for deductibility imposed by tax legislation; and iii. no changes in tax legislation adversely affect the consolidated entity in realising the benefit from the deductions for the losses. . Silex Annual Report 2026 59
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Notes to the consolidated financial statements Note 7 Assets This note provides information about the Company’s assets. Note 7(a) Current assets – Cash and cash equivalents 2026 2025 $ $ Cash at bank 16,033,107 19,750,436 Cash and cash equivalents include 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, and bank overdrafts. Additional information on the Company’s exposure to interest rate risk is discussed in note 13. Note 7(b) (i) Current assets – Other financial assets at amortised cost – Term deposits 2026 2025 $ $ Bank deposits – term deposits 164,711,632 37,100,000 Other financial assets at amortised cost are assets held to collect the contractual cash flows and the contractual terms give rise to cash flows that are solely payments of principal and interest. Other financial assets at amortised cost are included in current assets as all have maturities less than 12 months from the end of the reporting period. The bank deposits at 30 June 2026 earn interest at between 3.69% and 5.45% (2025: between 4.15% and 5.40%). Note 7(b) (ii) Current assets – Financial assets at fair value through profit or loss – Dual currency term deposits 2026 2025 $ $ Level 21 Bank deposits – dual currency term deposits – 23,704,684 1. Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Financial assets at fair value through profit or loss held at 30 June 2025 had maturities of 2 months or less. They were held to collect the contractual cash flows. There were no deposits at 30 June 2026 (2025: deposits earned interest at between 8.00% and 9.00%). Silex Annual Report 2026 60
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Notes to the consolidated financial statements Note 7(c) Current assets – Trade and other receivables 2026 2025 $ $ Trade receivables from contracts with customers 1,097,302 875,442 Accrued income – other 7,473,535 5,745,132 Other receivables 20,376 18,105 8,591,213 6,638,679 i. Accrued income - other Accrued income includes accrued research and development tax incentive, accrued interest and accrued project subsidy income. ii. Impairment of receivables Information about the impairment of receivables can be found in note 13(c). iii. Foreign exchange and interest rate risk Information concerning the Company’s exposure to foreign currency in relation to trade and other receivables is provided in note 13(b). iv. Fair value and credit risk Due to the short-term nature of these receivables, their carrying value is assumed to approximate their fair value. Refer to note 13(c) for information on credit risk. Note 7(d) Current assets – Other current assets 2026 2025 $ $ Prepayments 783,447 597,120 Note 7(e) Current assets – Financial assets at fair value through other comprehensive income 2026 2025 $ $ Level 11 Listed securities Equity securities – shares in IQE Plc – 1,403,516 1. Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Company is the current bid price. On 15 April 2026, the Company sold its remaining shares in IQE Plc and received $3,432,540 (US$2,450,147). The gain is included in other comprehensive income. Refer also to point (ii) below. i. Classification and measurement of financial assets at fair value through other comprehensive income The Company irrevocably elected to value its shares in IQE at 30 June 2019 as financial assets at fair value through other comprehensive income. This election was made so that large movements in the value of the shares do not significantly impact the consolidated statement of profit or loss. The shares are classified as Level 1 in the fair value hierarchy. There were no dividends received during the current or prior years. The IQE shares were disposed on 15 April 2026, with the remaining reserve being reallocated to accumulated losses. ii. Amounts recognised in other comprehensive income During the year, the following gains/(losses) were recognised in other comprehensive income: 2026 2025 $ $ Gains/(losses) recognised in other comprehensive income – refer note 10(b) 4,569,107 (2,573,925) Note 7(f) Current assets – Derivative financial instruments 2026 2025 $ $ Foreign currency forwards – refer note 13(a) 81,630 476,415 Silex Annual Report 2026 61
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Notes to the consolidated financial statements Note 7(g) Non-current assets – Property, plant and equipment Plant and equipment Motor vehicles Total $ $ $ At 30 June 2024 Cost 1,545,988 102,844 1,648,832 Accumulated depreciation (1,193,053) (29,181) (1,222,234) Net book amount 352,935 73,663 426,598 Year ended 30 June 2025 Opening net book amount 352,935 73,663 426,598 Additions 161,274 – 161,274 Disposals (5,319) – (5,319) Depreciation charge (164,760) (19,592) (184,352) Exchange differences – 909 909 Closing net book value 344,130 54,980 399,110 At 30 June 2025 Cost 1,699,252 103,787 1,803,039 Accumulated depreciation (1,355,122) (48,807) (1,403,929) Net book amount 344,130 54,980 399,110 Year ended 30 June 2026 Opening net book amount 344,130 54,980 399,110 Additions 107,663 – 107,663 Disposals – – – Depreciation charge (176,751) (17,432) (194,183) Exchange differences – (1,346) (1,346) Closing net book value 275,042 36,202 311,244 At 30 June 2026 Cost 1,806,639 101,351 1,907,990 Accumulated depreciation (1,531,597) (65,149) (1,596,746) Net book amount 275,042 36,202 311,244 Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the consolidated statement of profit or loss during the financial period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their cost or revalued amounts of the assets, net of their residual values, over their estimated useful lives, as follows: – Plant and equipment 1–10 years – Motor Vehicles 3–5 years The asset’s residual value and useful life are reviewed, and adjusted if appropriate, at each balance date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (refer note 23(g)). Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the consolidated statement of profit or loss. When revalued assets are sold, it is Company policy to transfer the amounts included in other reserves in respect of those assets to accumulated losses. Silex Annual Report 2026 62
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Notes to the consolidated financial statements Note 7(h) Deferred tax assets 2026 2025 $ $ The balance comprises temporary differences attributable to: Amounts recognised in profit or loss Provision for employee entitlements, warranties, restructuring and decommissioning 262,701 265,551 Payables and other provisions 1,924,241 955,647 Financial assets at fair value through other comprehensive income – 793,278 Lease liabilities 160,549 227,551 Depreciation and amortisation 297,668 277,054 Credit losses 102,635 107,634 Foreign currency cash balances 10,809 32,448 Tax losses 55,275,619 52,394,799 58,034,222 55,053,962 Set off deferred tax liabilities pursuant to set-off provisions (1,252,272) (652,810) Net deferred tax assets not recognised (56,781,950) (54,401,152) Net deferred tax assets – – A deferred tax asset has not been recognised as the consolidated entity has a history of tax losses. Note 8 Liabilities This note provides information about the Company’s liabilities. Note 8(a) Current liabilities – Trade and other payables 2026 2025 $ $ Trade creditors 1,224,324 1,092,579 Unearned income 3,489,944 4,407,591 Other payables 468,469 539,042 5,182,737 6,039,212 These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured. Trade creditors are usually paid within 45 days of recognition. Trade creditors, derivative financial instruments and other payables are presented as current liabilities unless payment is not due within 12 months from the reporting date. i. Amounts not expected to be settled within the next 12 months Other payables include accruals for annual leave. The entire annual leave obligation is presented as current, since the Company does not have an unconditional right to defer settlement. However, based on past experience, the Company does not expect all employees to take the full amount of accrued annual leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months: 2026 2025 $ $ Current annual leave obligations expected to be settled after 12 months 65,136 47,736 ii. Risk exposure Information about the Company’s exposure to foreign exchange risk is provided in note 13(b). Silex Annual Report 2026 63
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Notes to the consolidated financial statements Note 8(b) Provisions 2026 2025 Current Non-current Total Current Non-current Total $ $ $ $ $ $ Employee benefits – long service leave 819,670 45,052 864,722 806,949 69,175 876,124 Other 146,081 40,000 186,081 146,081 40,000 186,081 965,751 85,052 1,050,803 953,030 109,175 1,062,205 i. Amounts not expected to be settled within the next 12 months The current portion of the provision for long service leave includes all unconditional entitlements where employees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The present component of $819,670 (2025: $806,949) is presented as current, since the Company does not have an unconditional right to defer settlement. However, based on past experience, the Company does not expect all employees to take the full amount of accrued long service leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months. 2026 2025 $ $ Current long service leave obligations expected to be settled after 12 months 737,703 737,015 Movements in each class of provision during the financial year, other than long service leave, are set out below: Other $ Carrying amount at start of the year 186,081 Carrying amount at end of the year 186,081 The Company is required to restore its leased premises under the terms of the lease contract. A provision has been recognised for the present value of the estimated expenditure required to meet these obligations. Provision is also made for the estimated warranty claims in respect of solar panels that were previously sold by the Company. The claims may be settled in the next financial year and this may be extended into future years. Note 8(c) Non-current liabilities – Deferred tax liabilities 2026 2025 $ $ The balance comprising temporary differences attributable to: Right-of-use assets 146,388 210,527 Accrued income 1,105,884 442,283 1,252,272 652,810 Set off deferred tax liabilities pursuant to set-off provisions (1,252,272) (652,810) Net deferred tax liabilities – – Silex Annual Report 2026 64
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Notes to the consolidated financial statements Note 9 Leases This note provides information for leases where the Company is a lessee. Note 9(a) Amounts recognised in the consolidated statement of financial position The consolidated statement of financial position shows the following amounts relating to leases: 2026 2025 $ $ Right-of-use assets Buildings 564,541 842,108 Lease liabilities Current 306,735 281,066 Non-current 335,462 629,138 642,197 910,204 Additions to the right-of-use assets during the current year were $nil (2025: $nil). Increases to right-of-use assets as a result of lease modifications were $33,854 (2025: $22,949). Note 9(b) Amounts recognised in the consolidated statement of profit or loss The consolidated statement of profit or loss shows the following amounts related to leases: 2026 2025 $ $ Depreciation charge on right-of-use assets Buildings 311,420 312,244 Interest expense (included in finance costs) 67,597 90,578 The total cash outflow for leases during the current year was $369,458 (2025: $385,297). Note 9(c) The Company’s leasing activities and how these are accounted for The Company leases buildings and equipment. Rental contracts are generally for fixed periods of 1 year to 5 years but may have extension options. Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: – fixed payments less any lease incentive receivable; – variable lease payments that are based on an index or rate, initially measured using the index or rate as at the commencement date; – amounts expected to be payable by the Company under residual value guarantees; – the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and – payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. Lease payments are allocated between principal and finance cost. The finance costs are charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: – the amount of the initial measurement of lease liability; – any lease payments made before the commencement date less any lease incentives received; and – any initial direct costs. Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Silex Annual Report 2026 65
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Notes to the consolidated financial statements Note 10 Equity The note provides information about the Company’s equity. Note 10(a) Contributed equity i. Share capital Parent entity Parent entity 2026 2025 2026 2025 Shares Shares $ $ Ordinary shares Fully paid 278,438,291 238,105,724 539,792,843 392,701,992 ii. Movements in ordinary share capital Date Details Number of shares $ 30 June 2024 Balance 236,875,501 390,665,622 5 September 2024 Issue of shares – performance rights 366,023 874,184 Various Issue of shares – options exercise 864,200 712,551 Various Transfer from share-based payments reserve – options – 464,409 238,105,724 392,716,766 Less: Transaction costs arising on share issues – (14,774) 30 June 2025 Balance 238,105,724 392,701,992 14 August 2025 Issue of shares – capital raise 33,333,334 130,000,003 5 September 2025 Issue of shares – share purchase plan 4,978,649 19,413,788 Various Issue of shares – performance rights 841,534 1,915,895 Various Issue of shares – options exercise 1,179,050 1,627,458 Various Transfer from share-based payments reserve – options – 944,666 278,438,291 546,603,802 Less: Transaction costs arising on share issues – (6,810,959) 30 June 2026 Balance 278,438,291 539,792,843 iii. Ordinary shares Ordinary shares are classified as equity. Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options, or for the acquisition of a business, are not included in the cost of the acquisition as part of the purchase consideration. The ordinary shares have no par value. In order to maintain or adjust the capital structure, the Company may issue new shares. The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern and to maintain an optimal capital structure to reduce the cost of capital. iv. Options Information relating to the Silex Systems Limited Employee Incentive Plan, including details of options issued, exercised and lapsed during the financial year and options outstanding at the end of the financial year, is set out in note 19(b). v. Performance Rights Information relating to the Silex Systems Limited Employee Incentive Plan, including details of Performance Rights issued, vested, forfeited and lapsed during the financial year and rights outstanding at the end of the financial year, is set out in note 19(c). Silex Annual Report 2026 66
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Notes to the consolidated financial statements Note 10(b) Reserves 2026 2025 $ $ Foreign currency translation reserve (279,974) 855,504 Revaluation – Fair value through other comprehensive income – (4,569,107) Transactions with non-controlling interests (2,906,913) (2,906,913) Share-based payments reserve 20,188,361 19,559,580 17,001,474 12,939,064 i. Movements in reserves 2026 2025 Foreign currency translation reserve $ $ Balance at the beginning of the financial year 855,504 110,672 Net exchange differences on translation of foreign controlled entities (1,135,478) 744,832 Balance at the end of the financial year (279,974) 855,504 2026 2025 Revaluation – Fair value through other comprehensive income $ $ Balance at the beginning of the financial year (4,569,107) (1,995,182) Differences on revaluation 2,285,259 (2,573,925) Transfer to accumulated losses 2,283,848 – Balance at the end of the financial year – (4,569,107) 2026 2025 Transactions with non-controlling interests $ $ Balance at the beginning of the financial year (2,906,913) (2,906,913) Balance at the end of the financial year (2,906,913) (2,906,913) 2026 2025 Share-based payments reserve $ $ Balance at the beginning of the financial year 19,559,580 18,200,094 Share-based payment expense 3,489,342 2,698,079 Transfer to share capital (2,860,561) (1,338,593) Balance at the end of the financial year 20,188,361 19,559,580 ii. Nature and purpose of reserves Foreign currency translation reserve Exchange differences arising on translation of the foreign controlled entities are taken to the foreign currency translation reserve, as described in note 23(c). The reserve is recognised in profit or loss when the net investment is disposed. Revaluation – Fair value through other comprehensive income Changes in the fair value of investments that are classified as fair value through other comprehensive income are recognised in other comprehensive income and accumulated in a separate reserve within equity. Amounts are not reclassified to profit or loss when the associated assets are sold or impaired. The investment in IQE shares was disposed on 15 April 2026, with the remaining reserve being reallocated to accumulated losses. Transactions with non-controlling interests This reserve is used to record the differences described in note 23(b) which may arise as a result of transactions with non-controlling interests that do not result in a loss of control. Share-based payments reserve The share-based payments reserve is used to recognise: – the grant date fair value of options issued to employees and consultants but not exercised; – the grant date fair value of deferred shares (i.e., performance rights) granted to employees but not yet vested; and – the grant date fair value of shares to be issued. Note 10(c) Accumulated losses 2026 2025 $ $ Accumulated losses at the beginning of the financial year (314,693,189) (272,135,953) Reclassification of loss on disposal of equity instruments at fair value through other comprehensive income (2,283,848) – Net (loss) attributable to members of Silex Systems Limited (38,620,683) (42,557,236) Accumulated losses at the end of the financial year (355,597,720) (314,693,189) Silex Annual Report 2026 67
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Notes to the consolidated financial statements Note 11 Cash flow information Note 11(a) Reconciliation of net (loss) after income tax to net cash inflows from operating activities 2026 2025 $ $ Net (loss) after income tax (38,620,683) (42,557,236) Adjustments for: Depreciation and amortisation 505,603 496,596 Non cash benefits expense – share-based payments 3,489,342 2,698,079 Net exchange differences (42,920) (47,824) Share of net losses of joint ventures 45,465,291 41,740,072 Decrease in prepayments and other current assets 208,458 56,240 (Increase)/decrease in trade and other debtors (224,131) 2,006,121 (Increase) in accrued income - other (1,728,403) (35,821) (Decrease) in trade and other creditors (856,475) (1,429,758) (Decrease)/increase in provisions (11,402) 90,198 Net cash inflows from operating activities 8,184,680 3,016,667 Note 11(b) Non-cash investing and financing activities Details regarding non-cash investing and financing activities are disclosed in other notes. The acquisition of right-of-use assets is detailed in note 9 and options and rights issued under the Silex Systems Limited Employee Incentive Plan in note 19. Note 12 Critical accounting estimates and judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. An area involving significant estimates or judgements is the recognition of variable consideration (in the form of revenue royalties) from the sale of the cREO® technology (note 3). Silex Annual Report 2026 68
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Notes to the consolidated financial statements Note 13 Financial risk management The Company’s activities expose it to a variety of financial risks, market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The Company uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and foreign exchange risk. Risk management is carried out by senior management under policies approved by the Board of Directors. Senior management identifies, evaluates and manages financial risks. The Board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk and credit risk and investing excess liquidity. a. Derivatives Foreign exchange contracts are used to manage foreign exchange risk. The Company may enter into forward exchange contracts which are economic hedges for foreign currencies to be traded at a future date but do not satisfy the requirements for hedge accounting. These contracts are fair valued by comparing the contracted rate to the current market rate for a contract with the same remaining period to maturity. Any changes in fair values are taken to the consolidated statement of profit or loss immediately. The Company’s policy is to hedge a proportion of its anticipated cash flows in USD. At year end, the Company held US$8,000,000 in forward exchange contracts (contracted at AU$11,564,898) with contractual dates up to October 2026 (2025: US$14,100,000 of forward exchange contracts (contracted at AU$21,050,303) with contractual dates up to November 2025) to purchase USD as part of its strategy to minimise the financial effects of foreign currency fluctuations. The Board monitors the Company’s hedging strategy on a continuing basis. The fair value of derivative contracts outstanding at year end totals $81,630 (2025: $476,415) and is recorded in Current assets – Derivative financial instruments. b. Market risk i. Foreign exchange risk The Company operates internationally and is exposed to foreign exchange risk arising from currency exposures, primarily with respect to the USD. Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company’s functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. The Company’s exposure to USD foreign currency risk at the reporting date, expressed in Australian dollars, was as follows: 2026 2025 AUD AUD Cash and cash equivalents 4,429,450 14,514,675 Financial assets at fair value through profit or loss – dual currency term deposits – 23,704,684 Trade and other receivables 926,830 917,023 Trade and other payables 60,867 17,691 Forward exchange contracts – buy foreign currency 11,564,898 21,050,303 Profit or loss is sensitive to the value of the AUD compared to the USD. Impact on post-tax profit Impact on other components of equity 2026 2025 2026 2025 $ $ $ $ AUD/USD – increase by 15% (2,209,818) (5,998,242) (2,209,818) (5,998,242) AUD/USD – decrease by 15% 2,989,754 9,113,894 2,989,754 9,113,894 Silex Annual Report 2026 69
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Notes to the consolidated financial statements Note 13 Financial risk management continued ii. Cash flow and fair value interest rate risk As the Company has interest-bearing assets, the Company’s income and operating cash flows are influenced by changes in market interest rates. Company policy is to maintain the majority of cash and cash equivalents at fixed rates by the use of term deposits. The Company manages its cash flow interest rate risk by having a spread of maturity dates with different institutions. As at the reporting date, the Company had the following variable interest rate cash and cash equivalents: 30 June 2026 30 June 2025 Weighted average interest rate Balance Weighted average interest rate Balance % $ % $ Cash and cash equivalents 3.73 12,157,460 3.78 16,317,569 Profit or loss is sensitive to higher / lower interest income from cash and cash equivalents as a result of changes in interest rates. Impact on post-tax profit Impact on other components of equity 2026 2025 2026 2025 $ $ $ $ Interest rates – increase by 1.00% 116,910 127,239 116,910 127,239 Interest rates – decrease by 1.00% (116,910) (127,239) (116,910) (127,239) iii. Price risk The Company does not hold any investments that are exposed to price risk. c. Credit risk Credit risk arises from cash and cash equivalents, term deposits, dual currency term deposits and receivables. The Company has a concentration of credit risk with its main receipts coming from GLE for recoverable project costs, banks (interest income), government (research and development tax incentive and Defence Trailblazer Grant), and IQE Plc (in relation to the sale of the cREO® technology). The Company has policies in place to ensure that transactions are with entities with an appropriate credit history. For banks and financial institutions, only independently rated parties with a minimum rating as approved by the Board are accepted. Cash transactions are limited to high credit quality financial institutions. The Company has policies that limit the amount of credit exposure to any one financial institution. The credit quality of customers, banks and governments can be assessed by reference to external credit ratings (if available). If they are independently rated, these ratings are used. Otherwise, if there is no independent rating, the Company assesses the credit quality by taking into account the financial position, past experience and other factors. As the Company holds a 51% interest in GLE, the credit risk with respect to recoverable project costs is mitigated. Impairment of financial assets While cash and cash equivalents are subject to the impairment requirements of AASB 9 Financial Instruments, the identified impairment loss was immaterial. All of the Company’s term deposits and dual currency term deposits (disclosed under AASB 9 as other financial assets at amortised cost and financial assets at fair value through profit or loss – dual currency term deposits) are considered to have low credit risk given the credit ratings of the bank where the deposits are held. The Company has reviewed the credit ratings and corporate default rates of the various banks by credit rating agencies. Applying the expected credit loss model, the identified impairment loss was immaterial at 30 June 2026 (and at 30 June 2025). Cash and cash equivalents, other financial assets at amortised cost – term deposits, and financial assets at fair value through profit or loss – dual currency term deposits 2026 $ 2025 $ ANZ Banking Group Limited 76,869,092 46,122,253 Westpac Banking Corporation 55,000,000 20,000,000 National Australia Bank 35,000,000 11,000,000 Macquarie Group Limited 10,000,000 – Bank of America 3,875,647 3,432,867 180,744,739 80,555,120 Trade and other receivables are also subject to the expected credit loss model. Trade receivables include $436,745 (2025: $458,015) for royalties from the sale of the Company’s cREO® technology. Impairment losses for trade and other receivables were immaterial at 30 June 2026 (and at 30 June 2025). Silex Annual Report 2026 70
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Notes to the consolidated financial statements Note 13 Financial risk management continued d. Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Company manages liquidity by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Financing arrangements The Company had access to the following undrawn borrowing facilities at the reporting date: 2026 2025 Floating rate $ $ Expiring within one year (documentary credit facility and visa facility) 200,000 200,000 The borrowing facilities are a documentary credit facility and visa facility that may be drawn at any time and is subject to annual review. Maturities of financial liabilities The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the tables are the contractual undiscounted cash flows. At 30 June 2026 Less than 6 months 6-12 months Between 1 and 2 years Between 2 and 5 years Over 5 years Total contractual cash flows Carrying Amounts (assets)/ liabilities $ $ $ $ $ $ $ Non-derivatives Non-interest bearing 1,077,445 – – – – 1,077,445 1,077,445 Lease liabilities 163,349 191,564 354,470 – – 709,383 642,197 Total non-derivatives 1,240,794 191,564 354,470 – – 1,786,828 1,719,642 At 30 June 2025 Less than 6 months 6-12 months Between 1 and 2 years Between 2 and 5 years Over 5 years Total contractual cash flows Carrying Amounts (assets)/ liabilities $ $ $ $ $ $ $ Non-derivatives Non-interest bearing 1,114,579 – – – – 1,114,579 1,114,579 Lease liabilities 157,258 184,588 346,367 347,045 – 1,035,258 910,204 Total non-derivatives 1,271,837 184,588 346,367 347,045 – 2,149,837 2,024,783 e. Fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual values at the current market interest rates that is available to the Company for similar instruments. Note 14 Climate change In preparing these consolidated financial statements the group has considered the impact of climate change risks on the assets and liabilities recognised and presented within the consolidated financial statements. There is no material impact on the value of assets and liabilities at 30 June 2026 as a result of climate change risks. The Company is continuing to develop its assessment of the impact of climate change in line with emerging industry and regulatory guidance. Silex Annual Report 2026 71
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Notes to the consolidated financial statements Note 15 Interests in other entities a. Subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 23(b). Name of entity Place of business/ country of incorporation Class of shares 2026 % 2025 % Translucent Inc US Ordinary 100% 100% Total 100% 100% Silex USA LLC US Interest 100% 100% Total 100% 100% b. Interests in joint ventures Set out below are details of the Global Laser Enrichment Holdings LLC (GLEH) joint venture as at 30 June 2026, which is material to the Company: Name of entity Place of business/ country of incorporation Ownership interest Nature of relationship Measurement method Carrying amount 2026 2025 2026 2025 % % $ $ Global Laser Enrichment Holdings LLC US 51% 51% Joint venture Equity method 16,995,520 8,047,420 GLEH acquired Global Laser Enrichment LLC (GLE) on 31 January 2021. GLE holds the exclusive worldwide licence to commercialise the SILEX technology for uranium enrichment. Cameco Corporation indirectly owns the remaining 49% of GLEH. i. Significant judgement: existence of joint control In accordance with the Amended and Restated Limited Liability Company Agreement of GLEH, decisions of the Governing Board are based on the voting of percentage of interests held by the GLEH Governing Board Members. Silex’s Governing Board Members hold a 51% interest and the Cameco Governing Board Members hold a 49% interest. The affirmative vote of Governing Board members representing greater than 51% of the total percentage interests is required for an affirmative vote. Therefore, Silex has joint control of GLEH with Cameco. ii. Commitments and contingent liabilities in respect of the GLEH joint venture 2026 2025 $ $ Commitments – joint ventures Commitments to provide funding for joint venture’s capital commitments, if called 25,986,315 34,259,542 Contingent liabilities – joint venture Share of joint venture’s contingent liabilities 3,545,511 4,112,266 On 28 July 2023, GLE entered into a lease for a new facility in Wilmington, NC. A parent company guarantee was required to be provided by the Company and Cameco Corporation in relation to the rent and other lease related obligations associated with the premises tenanted by GLE. The guarantee will reduce over the term of the lease. Silex Annual Report 2026 72
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Notes to the consolidated financial statements Note 15 b. Interests in joint ventures (continued) iii. Summarised financial information for GLEH joint venture The tables below provide summarised financial information for the GLEH joint venture. The information disclosed reflects the amounts presented in the financial statements of GLEH and not Silex’s share of those amounts. The information has been amended to reflect adjustments made by the Company when using the equity method, including fair value adjustments and modifications for differences in accounting policy. 2026 2025 Summarised statement of financial position $ $ Current assets Cash and cash equivalents 24,308,400 6,458,805 Other current assets 8,044,982 5,020,139 Total current assets 32,353,382 11,478,944 Non-current assets 23,715,552 26,691,342 Total assets 56,068,934 38,170,286 Current liabilities Lease liabilities 640,100 1,283,356 Other current liabilities 9,338,926 8,601,333 Total current liabilities 9,979,026 9,884,689 Non-current liabilities Lease liabilities 4,492,249 5,289,296 Other non-current liabilities 8,273,110 7,217,047 Total non-current liabilities 12,765,359 12,506,343 Total liabilities 22,744,385 22,391,032 Net assets 33,324,549 15,779,254 2026 2025 Reconciliation to carrying amounts $ $ Opening net assets 15,779,254 26,018,069 Additional capital contributed 108,017,536 70,297,020 (Loss) for the period (89,147,630) (81,843,279) Other comprehensive income/(loss) (1,324,611) 1,307,444 Closing net assets 33,324,549 15,779,254 Company’s share in % 51% 51% Company’s share in $ 16,995,520 8,047,420 Carrying amount 16,995,520 8,047,420 2026 2025 Summarised statement of comprehensive income $ $ Revenue 356,608 - Interest income 596,618 639,239 Depreciation and amortisation (3,928,317) (3,694,106) Interest expense (447,128) (497,473) Income tax expense – – (Loss) from continuing operations (89,147,630) (81,843,279) (Loss) for the period (89,147,630) (81,843,279) Other comprehensive income/(loss) (1,324,611) 1,307,444 Total comprehensive income/(loss) (90,472,241) (80,535,835) Company’s share in % 51% 51% Company’s share in $ (45,465,291) (41,740,072) Company’s share of net (loss) for the period (45,465,291) (41,740,072) Silex Annual Report 2026 73
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Notes to the consolidated financial statements Note 16 Commitments for expenditure and guarantees The Company did not have any capital expenditure contracted at the reporting date that was not recognised as a liability (2025: $nil). On 28 July 2023, GLE entered into a lease for a new facility in Wilmington, NC. A parent company guarantee was required to be provided by the Company and Cameco Corporation in relation to the rent and other lease related obligations associated with the premises tenanted by GLE. As at 30 June 2026, the Company’s 51% share of the parent company guarantee was $3,545,511 (2025: $4,112,266). The guarantee will reduce over the term of the lease. Note 17 Events occurring after the reporting date The consolidated entity is not aware of any matters or circumstances which are not otherwise dealt with in the consolidated financial statements that have significantly or may significantly, affect the operations of the consolidated entity, the results of its operations or the state of the consolidated entity in subsequent years other than those referred to in this report. Note 18 Related party transactions a. Subsidiaries Interests in subsidiaries are set out in note 15(a). b. Key management personnel compensation 2026 2025 $ $ Short-term employee benefits 2,077,440 1,695,842 Post-employment benefits 80,640 98,295 Long-term benefits 68,452 99,923 Share-based payments 1,028,120 589,777 3,254,652 2,483,837 Silex Annual Report 2026 74
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Notes to the consolidated financial statements Note 19 Share-based payments a. Silex Systems Limited Employee Incentive Plan The Silex Systems Limited Employee Incentive Plan (the Plan) was established in May 2019 by a resolution of the Silex Board. Shareholder approval of the Plan was renewed at the 2025 Annual General Meeting. All full-time and part-time staff and executive directors of the consolidated entity are eligible to participate in the Plan. The Company established the Plan to encourage employees to share in the ownership of the Company and to promote the long-term success of the Company as a goal shared by all employees. In accordance with the Plan, an award of options, performance rights or exempt share awards may be granted. Participation in the Plan is at the Board’s discretion and no individual has a contractual right to participate in the Plan or to receive any guaranteed benefits. b. Options Under the Plan, options issued were granted for no consideration. The options granted to staff become exercisable at the conclusion of the vesting period. The options can be exercised up to two years after the vesting period. The contractual term of each option granted is up to five years. The options lapse if the holder ceases to be an eligible employee, unless the Board determines otherwise in its absolute discretion. Options granted under the plan carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share. The exercise price of an option is based on the volume weighted average price at which the Company’s shares are traded on the Australian Stock Exchange for the 10-trading days before the options are granted or for the 10-trading days preceding a Board resolution to grant options. Amounts received on the exercise of options are recognised as share capital. Set out below are summaries of options granted under the Plan including the options outstanding at the end of the year: Consolidated and parent entity – 2026 Grant Expiry Exercise price Balance at start of year Issued during the year Lapsed/ forfeited during the year Exercised during the year Balance at the end of the year Exercisable at end of the year date date (cents) (Number) (Number) (Number) (Number) (Number) (Number) 24/03/2021 23/03/2026 120 384,500 – (7,500) (377,000) – – 26/07/2021 28/10/2026 94 60,000 – – (60,000) – – 26/07/2021 30/06/2027 94 100,000 – – (100,000) – – 26/07/2021 30/06/2028 94 100,000 – – – 100,000 100,000 14/10/2021 28/10/2027 94 150,000 – – (150,000) – – 14/10/2021 28/10/2028 94 150,000 – – – 150,000 150,000 14/10/2021 28/10/2029 94 150,000 – – – 150,000 – 18/03/2022 17/03/2027 119 490,000 – – (376,500) 113,500 113,500 17/04/2023 16/04/2028 377 650,000 – (3,650) (115,550) 530,800 530,800 23/04/2024 22/04/2029 500 650,000 – – – 650,000 – 27/11/2025 30/06/2030 406 – 120,000 – – 120,000 – 2,884,500 120,000 (11,150) (1,179,050) 1,814,300 894,300 Weighted average exercise price $2.57 $4.06 $2.04 $1.38 $3.44 $2.65 Silex Annual Report 2026 75
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Notes to the consolidated financial statements Note 19 Share-based payments (continued) Consolidated and parent entity – 2025 Grant Expiry Exercise price Balance at start of year Issued during the year Lapsed/ forfeited during the year Exercised during the year Balance at the end of the year Exercisable at end of the year date date (cents) (Number) (Number) (Number) (Number) (Number) (Number) 01/04/2020 31/03/2025 21 148,000 – (6,000) (142,000) – – 23/11/2020 22/11/2025 57 150,000 – – (150,000) – – 24/03/2021 23/03/2026 120 515,750 – – (131,250) 384,500 384,500 26/07/2021 28/10/2026 94 100,000 – – (40,000) 60,000 60,000 26/07/2021 30/06/2027 94 100,000 – – – 100,000 100,000 26/07/2021 30/06/2028 94 100,000 – – – 100,000 – 14/10/2021 28/10/2026 94 150,000 – – (150,000) – – 14/10/2021 28/10/2026 94 150,000 – – (150,000) – – 14/10/2021 28/10/2027 94 150,000 – – – 150,000 150,000 14/10/2021 28/10/2028 94 150,000 – – – 150,000 – 14/10/2021 28/10/2029 94 150,000 – – – 150,000 – 18/03/2022 17/03/2027 119 600,000 – (9,050) (100,950) 490,000 490,000 17/04/2023 16/04/2028 377 650,000 – – – 650,000 – 23/04/2024 22/04/2029 500 650,000 – – – 650,000 – 3,763,750 – (15,050) (864,200) 2,884,500 1,184,500 Weighted average exercise price $2.16 – $0.80 $0.82 $2.57 $1.13 The market price of shares under option at 30 June 2026 was $5.30 (2025: $4.22). The weighted average remaining contractual life of share options outstanding at the end of the period was 2.4 years (2025: 2.6 years). Fair value of options granted The assessed fair value at grant date of options granted during the year ended 30 June 2026 was determined using a Binomial option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the options. Set out below is a summary of options granted under the Plan during the year ended 30 June 2026, together with the model inputs applied to assess the fair value of options at grant date. No options were granted under the Plan during the year ended 30 June 2025. Fair value Grant Vesting Exercise Price Expiry Share price at grant date Expected volatility Expected dividend yield Risk-free interest rate Days to (cents) date date (cents) date (cents) % % % expiration 553.05 27/11/2025 01/07/2028 406 30/06/2030 838 63 - 3.89 1,190 The expected price volatility is based on the historical volatility adjusted for any expected changes to future volatility due to publicly available information. Silex Annual Report 2026 76
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Notes to the consolidated financial statements Note 19 Share-based payments (continued) c. Performance Rights The rights issued under the Plan were subject to performance-based and service-based vesting conditions. Rights convert into one ordinary share each on vesting at an exercise price of $nil, subject to the satisfaction of vesting conditions. The rights lapse if the holder ceases to be an eligible employee, unless the Board determines otherwise in its absolute discretion. Set out below is a summary of rights granted under the Plan: Consolidated and parent entity – 2026 Exercise Balance at start of year Issued during the year Lapsed/ forfeited during the year Exercised during the year Balance at end of year Grant date Price (Number) (Number) (Number) (Number) (Number) 14/10/2021 nil 412,500 – – (412,500) – 21/06/2022 nil 150,000 – – (75,000) 75,000 29/09/2023 nil 131,000 – (15,963) (106,537) 8,500 26/08/2024 nil 175,000 – (65,500) (109,500) – 18/10/2024 nil 325,000 – (173,703) (137,997) 13,300 17/12/2024 nil 70,000 – – – 70,000 25/08/2025 nil – 135,000 – – 135,000 17/10/2025 nil – 283,600 – – 283,600 03/12/2025 nil – 170,000 – – 170,000 1,263,500 588,600 (255,166) (841,534) 755,400 The following table lists the model inputs for the rights granted during the year ended 30 June 2026. The rights were granted for $nil consideration. 25 August 25 August 17 October 17 October 3 December Grant date 2025 2025 2025 2025 2025 Model used – Monte Carlo – Monte Carlo – Market conditions No Yes No Yes No Exercise price $nil $nil $nil $nil $nil Vesting date1 31/07/2026 and 31/07/2028 31/07/2028 31/07/2026 and 31/07/2028 31/07/2028 31/07/2026 Share price at grant date $3.77 $3.77 $7.86 $7.86 $8.71 Expected dividend yield (%) nil nil nil nil nil Expected volatility (%) N/A 86% N/A 81% N/A Risk-free interest rate (%) N/A 3.36% N/A 3.30% N/A DLOM2 (%) 19% 19% 19% 19% 0% Fair value $3.054 $2.130 $6.367 $5.006 $8.710 1. Multiple vesting dates where rights issue contains both a short-term and long-term incentive component 2. Discount for lack of marketability (DLOM) applied as the rights have a two-year restriction on trading following conversion of vested rights to ordinary shares Silex Annual Report 2026 77
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Notes to the consolidated financial statements Note 19 Share-based payments (continued) Consolidated and parent entity – 2025 Exercise Balance at start of year Issued during the year Lapsed/ forfeited during the year Exercised during the year Balance at end of year Grant date Price (Number) (Number) (Number) (Number) (Number) 14/10/2021 nil 412,500 – – – 412,500 21/06/2022 nil 225,000 – – (75,000) 150,000 21/08/2023 nil 185,000 – (10,275) (174,725) – 29/09/2023 nil 300,000 – (52,702) (116,298) 131,000 26/08/2024 nil – 175,000 – – 175,000 18/10/2024 nil – 325,000 – – 325,000 17/12/2024 nil – 70,000 – – 70,000 1,122,500 570,000 (62,977) (366,023) 1,263,500 The following table lists the model inputs for the rights granted during the year ended 30 June 2025. The rights were granted for $nil consideration. 26 August 26 August 18 October 17 December 17 December Grant date 2024 2024 2024 2024 2024 Model used – Monte Carlo – – Monte Carlo Market conditions No Yes No No Yes Exercise price $nil $nil $nil $nil $nil Vesting date 31/07/2025 31/07/2025 31/07/2025 30/06/2027 30/06/2027 Share price at grant date $4.42 $4.42 $5.06 $5.16 $5.16 Expected dividend yield (%) nil nil nil nil nil Expected volatility (%) N/A 52% N/A N/A 66% Risk-free interest rate (%) N/A 3.57% N/A N/A 3.85% DLOM1 (%) 16% 16% 8% 21% 21% Fair value $3.713 $1.211 $4.655 $4.076 $2.878 1. Discount for lack of marketability (DLOM) applied. The rights granted on 26 August 2024 and 17 December 2024 have a two-year restriction on trading following conversion of vested rights to ordinary shares. The rights granted on 18 October 2024 have a one-year restriction on trading following conversion of vested rights to ordinary shares d. Options issued to consultants At 30 June 2026, a total of 200,000 options were on issue to a consultant of the Company. 25 August 19 December 5 December 2 December Grant date 2022 2023 2024 2025 Model used Binomial Binomial Binomial Binomial Exercise price $3.19 $3.47 $4.50 $5.37 Share price at grant date $3.71 $4.19 $6.07 $8.42 Expected volatility (%) 80% 60% 72% 63% Risk-free interest rate (%) 3.15% 3.87% 3.86% 3.95% Days to expiration 730 730 730 1,095 Fair value at grant date $1.820 $1.781 $3.109 $4.933 Options granted 50,000 50,000 75,000 75,000 Options exercisable 50,000 50,000 75,000 37,500 Options cancelled (50,000) – – – Options exercised – – – – Options remaining – 50,000 75,000 75,000 e. Expenses arising from share-based transactions Total expenses arising from share-based payment transactions recognised during the period as part of remuneration expense were as follows: 2026 2025 $ $ Options granted and to be granted 1,444,762 1,317,693 Performance rights granted and to be granted 2,044,580 1,380,386 3,489,342 2,698,079 Silex Annual Report 2026 78
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Notes to the consolidated financial statements Note 20 Remuneration of auditors During the year the following fees were paid or payable for services provided by PricewaterhouseCoopers Australia (PwC) as auditor of the parent entity, Silex Systems Limited, its related practices and non-audit firms: 2026 2025 Auditors of the Company – PwC $ $ Audit and review of financial reports Company 151,520 118,750 Total remuneration for audit and assurance services 151,520 118,750 Other services Consulting services – 22,500 Total services provided by PwC 151,520 141,250 Note 21 Earnings per share a. Basic earnings per share 2026 2025 Cents Cents Total basic earnings per share attributable to the ordinary equity holders of the Company (14.2) (17.9) Basic earnings per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year. b. Diluted earnings per share 2026 2025 Cents Cents Total diluted earnings per share attributable to the ordinary equity holders of the Company (14.2) (17.9) Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. c. Reconciliation of earnings used in calculating earnings per share 2026 2025 Basic earnings per share $ $ (Loss) attributable to the ordinary equity holders of the Company used in calculating basic earnings per share (38,620,683) (42,557,236) 2026 2025 Diluted earnings per share $ $ (Loss) attributable to the ordinary equity holders of the Company used in calculating diluted earnings per share (38,620,683) (42,557,236) d. Weighted average number of shares used in the denominator 2026 2025 (Number) (Number) Weighted average number of ordinary shares on issue used in the calculation of basic earnings per share 272,544,201 237,492,255 Weighted average number of ordinary shares on issue used in the calculation of diluted earnings per share 272,544,201 237,492,255 e. Information concerning the classification of securities Options and rights granted in the current and prior years were not included in the calculation of diluted earnings per share as they are anti- dilutive for the year ended 30 June 2026. The options and rights could potentially dilute basic earnings per share in the future. Further information about options and rights is included in note 19. Silex Annual Report 2026 79
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Notes to the consolidated financial statements Note 22 Parent entity financial information a. Summary financial information The individual financial statements for the parent entity show the following aggregate amounts: 2026 2025 $ $ Statement of financial position Current assets 186,024,658 84,825,934 Total assets 186,881,114 86,036,671 Current liabilities 6,111,697 7,171,323 Total liabilities 6,532,211 7,909,636 Net assets 180,348,903 78,127,035 Shareholders’ equity Issued capital 539,792,843 392,701,992 Reserves Share-based payments 19,993,487 19,364,706 Accumulated losses (379,437,427) (333,939,663) Total equity 180,348,903 78,127,035 Net (loss) for the period (45,497,764) (37,013,686) Total comprehensive income/(loss) (45,497,764) (37,013,686) The net (loss) for the period above differs from the segment result disclosed in note 2 as the segment result excludes exchange gains and losses on intercompany loans, write-downs of intercompany loans and impairment charges for investments in subsidiaries, all of which eliminate on consolidation. b. Guarantees entered into by the parent company Refer to note 15(b) for detail of parent company guarantee. c. Contractual commitments for the acquisition of property, plant or equipment As at 30 June 2026 (and 30 June 2025), the parent entity did not have any contractual commitments for the acquisition of property, plant or equipment. d. Basis of preparation This parent entity financial information has been prepared on the same basis as the consolidated financial statements except as set out below: Investments in subsidiaries, associates and joint venture entities Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of Silex Systems Limited. Dividends received from associates are recognised in the parent entity’s profit or loss, rather than being deducted from the carrying amount of these investments. Silex Annual Report 2026 80
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Notes to the consolidated financial statements This note provides a list of the other potentially material accounting policies adopted in the preparation of these consolidated financial statements to the extent that they have not already been disclosed in the other notes above. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the group consisting of Silex Systems Limited and its subsidiaries. Silex Systems Limited and its subsidiaries together are referred to in this financial report as the Company, Silex, the consolidated entity or the group. a. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Silex Systems Limited is a for-profit entity for the purposes of preparing the financial statements. i. Compliance with IFRS The consolidated financial statements of the Silex Systems Limited group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). ii. Historical cost convention These financial statements have been prepared on a historical cost basis, except for financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss which are both measured at fair value. iii. New and amended standards adopted by the Company The Company has not applied any new standard or amendment for the first time for its annual reporting period commencing 1 July 2025. iv. New standards and interpretations not yet adopted by the Company Certain amendments to accounting standards have been published that are not mandatory for 30 June 2026 reporting periods and have not been adopted early by the Company. The Company’s assessment of the impact of these new standards and amendments is as follows: – AASB 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2027) AASB 18 will replace AASB 101 Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though AASB 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements. Management is currently assessing the detailed implications of applying the new standard on the Company’s consolidated financial statements. From the high-level preliminary assessment performed, the following potential impacts have been identified: – Although the adoption of AASB 18 will have no impact on the Company’s net profit or loss, the Company expects that grouping items of income and expenses in the statement of profit or loss into the new categories will impact how operating profit is calculated and reported. – The line items presented on the primary financial statements might change as a result of the application of the concept of ‘useful structured summary’ and the enhanced principles on aggregation and disaggregation. – The Company does not expect there to be a significant change in the information that is currently disclosed in the notes because the requirement to disclose material information remains unchanged. However, the way in which the information is grouped might change as a result of the aggregation/ disaggregation principles. – For the cash flow statement, interest received will be presented as investing cash flows and interest paid will be presented as financing cash flows. This is a change from the current presentation as part of operating cash flows. The Company will apply the new standard from its mandatory effective date. Retrospective application is required, and the comparative information for the year ended 30 June 2027 will be restated in accordance with AASB 18. b. Principles of consolidation and equity accounting i. Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Silex Systems Limited (the parent entity) as at 30 June 2026 and the results of all subsidiaries for the year then ended. Subsidiaries are all those entities over which the Company has control. The Company controls an entity where the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date when control ceases. The acquisition method of accounting is used to account for business combinations by the Company. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Company. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of financial position respectively. Note 23 Summary of other potentially material accounting policies Silex Annual Report 2026 81
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Notes to the consolidated financial statements ii. Joint arrangements Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Company’s investment in GLEH is a joint venture. Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost in the consolidated statement of financial position. iii. Equity method of accounting for joint ventures Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the Company’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Company’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from joint ventures are recognised as a reduction in the carrying amount of the investment. Where the Company’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Company does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealised gains on transactions between the Company and its joint ventures are eliminated to the extent of the Company’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Company. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in note 23(g). iv. Changes in ownership interests The Company treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Company. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of Silex Systems Limited. When the Company ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Company had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate. c. Foreign currency translation i. Functional and presentation currency Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Australian dollars, which is Silex Systems Limited’s functional and presentation currency. ii. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated statement of profit or loss. iii. Group companies The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: – assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position; – income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and – all resulting exchange differences are recognised in other comprehensive income. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings, are recognised in other comprehensive income. The Company’s funding of its investment in its subsidiaries has been deemed part of its net investment. When a foreign operation is sold or borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the consolidated statement of profit or loss as part of the gain or loss on sale. d. Revenue recognition The accounting policies for the Company’s revenue from contracts with customers are explained in note 3. e. Government grants and Research and development tax incentive income Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions. Note 4 provides further information on how the Company accounts for government grants. Research and development tax incentive income is based on eligible activities in the period. Note 23 Summary of other potentially material accounting policies (continued) Note 23 b. Principles of consolidation and equity accounting (continued) Silex Annual Report 2026 82
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Notes to the consolidated financial statements f. Income tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, which at the time of the transaction did not affect either accounting profit or taxable profit or loss. 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. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. g. Impairment of assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. h. Investments and other financial assets i. Classification The Company classifies its financial assets in the following categories: – those to be measured subsequently at fair value (either through other comprehensive income (OCI) or through profit or loss); and – those to be at amortised cost. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The Company reclassifies debt investments when and only when its business model for managing those assets changes. ii. Recognition and derecognition Regular way purchases and sales of financial assets are recognised on trade date, being the date on which the Company commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. iii. Measurement At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets at fair value through profit or loss are expensed in profit or loss. Debt instruments Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: a. Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest revenue from these financial assets is included in revenue using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or loss. Note 23 Summary of other potentially material accounting policies (continued) Silex Annual Report 2026 83
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Notes to the consolidated financial statements b. FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as a separate line item in the statement of profit or loss. c. FVTPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within other gains/(losses) in the period in which it arises. Equity instruments The Company subsequently measures all equity investments at fair value. Where the Company’s Management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments are recognised in profit or loss as other income when the group’s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised in other gains/(losses) in the statement of profit or loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. iv. Impairment The Company assesses on a forward-looking basis, the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Refer note 13(c) for further details. i. Measurement and fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available for sale securities) is based on quoted market prices at the balance date. The fair value of financial instruments that are not traded in an active market (for example, over the counter derivatives) is determined using valuation techniques. The Company uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for long term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. The fair value of forward exchange contracts is determined using forward exchange market rates at the balance date. The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company for similar financial instruments. j. Employee benefits i. Wages and salaries, annual leave and personal leave Liabilities for wages and salaries, including non monetary benefits and annual leave are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non accumulating personal leave are recognised when the leave is taken and measured at the rates paid or payable. ii. Long service leave The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. iii. Retirement benefit obligations Employees of the Company are entitled to benefits on retirement, disability or death from the Company’s defined contribution retirement plans. The fund receives fixed contributions from the Company and the Company’s legal or constructive obligation is limited to these contributions. Contributions to the defined contribution fund are recognised as an expense as they become payable. Note 23 Summary of other potentially material accounting policies (continued) Silex Annual Report 2026 84
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Notes to the consolidated financial statements iv. Share-based payments Share-based compensation benefits have been provided to employees via the Silex Systems Limited Employee Incentive Plan (the Plan) which was established in May 2019. Information relating to the Plan is set out in note 19. Options The fair value of options granted under the Plan is recognised as an employee benefits expense with a corresponding increase in equity in the share-based payments reserve. The fair value is measured at grant date and recognised over the period during which the employees become unconditionally entitled to the options. The fair value at grant date is determined using a Binomial option pricing model that takes into account the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the non tradeable nature of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. The fair value of the options granted excludes the impact of any non market vesting conditions. Non market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. At each balance date, the Company revises its estimate of the number of options that are expected to become exercisable. The employee benefit expense recognised each period takes into account the most recent estimate. Upon the exercise of options, the relevant balance of the share-based payments reserve is transferred to share capital. Performance Rights Performance Rights granted under the Plan are a right to acquire fully paid ordinary shares in the Company for $nil consideration, subject to meeting certain pre-determined key performance indicators and vesting conditions. These may be used as a short-term or long-term incentive vehicle. For Performance Rights with non-market vesting conditions, the estimated number of rights that will vest are revised at the end of each reporting period and adjustments are recognised in profit or loss and the share-based payments reserve. For Performance Rights with market vesting conditions, the fair value at grant date is calculated using a Monte Carlo simulation and recognised in profit or loss. No adjustment is made for the estimated number of rights that will vest at each reporting date as this has already been factored into the grant date fair value of the rights. The fair value is recognised over the relevant service period. v. Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or to providing termination benefits as a result of an offer made to encourage voluntary redundancy. k. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the consolidated statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the taxation authority are presented as operating cash flow. l. Research and development costs Expenditure on research activities, undertaken with the prospect of obtaining new scientific or technical knowledge and understanding, is recognised in the consolidated statement of profit or loss as an expense when it is incurred. Costs incurred on development projects relating to the design and testing of new or improved products are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technical feasibility and its costs can be measured reliably. Other expenditure that does not meet this expenditure criteria are recognised as an expense as incurred. Given the stage of development of the Company’s technologies, research and development costs are currently expensed as incurred. m. Contributed equity Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Note 23 Summary of other potentially material accounting policies (continued) Silex Annual Report 2026 85
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Consolidated entity disclosure statement As at 30 June 2026 Name of entity Type of entity Trustee, partner or participant in JV % of share capital Place of incorporation Australian resident Foreign jurisdiction Silex Systems Limited Body corporate – n/a Australia Yes n/a Translucent Inc Body corporate – 100% US Yes US Silex USA LLC1 Body corporate – 100% US Yes n/a 1. Silex USA LLC is 100% owned by Translucent Inc and is treated as a disregarded entity for US Federal tax purposes. Therefore, its taxable income and expenses are reflected in Translucent Inc’s tax return. Silex Annual Report 2026 86
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Directors’ declaration In the directors’ opinion: (a) the financial statements and notes set out on pages 49 to 85 are in accordance with the Corporations Act 2001, including: (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (ii) giving 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; (b) 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 (c) the consolidated entity disclosure statement on page 86 is true and correct. Note 23(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board. The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001. This declaration is made in accordance with a resolution of the directors. Michael Goldsworthy CEO/Managing Director 27 August 2026 Craig Roy Chair Silex Annual Report 2026 87
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PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, Barangaroo NSW 2000, GPO BOX 2650 Sydney NSW 2001 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation. Independent auditor’s report To the members of Silex Systems Limited Report on the audit of the financial report Our opinion In our opinion, the accompanying financial report of Silex Systems Limited (the Company) and its controlled entities (together the Group) is in accordance with the Corporations Act 2001, including: a) giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its financial performance for the year then ended; and b) complying with Australian Accounting Standards and the Corporations Regulations 2001. What we have audited The financial report comprises: the consolidated statement of financial position as at 30 June 2026; the consolidated statement of profit or loss for the year then ended; the consolidated statement of comprehensive income for the year then ended; the consolidated statement of changes in equity for the year then ended; the consolidated statement of cash flows for the year then ended; the notes to the consolidated financial statements, including material accounting policy information and other explanatory information; the consolidated entity disclosure statement as at 30 June 2026; and the directors’ declaration. Silex Annual Report 2026 88
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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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. Our audit approach An audit is designed to provide reasonable assurance about whether the financial report is free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial report as a whole, taking into account the geographic and management structure of the Group, its accounting processes and controls and the industry in which it operates. Audit Scope Our audit focused on where the Group made subjective judgements; for example, significant accounting estimates involving assumptions and inherently uncertain future events. The Group's operational and financial processes are managed by a corporate function in Sydney, where all of our audit procedures are performed. Silex Annual Report 2026 89
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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 for the current period. The key audit 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. Further, any commentary on the outcomes of a particular audit procedure is made in that context. We communicated the key audit matters to the Audit and Risk Committee. Key audit matter How our audit addressed the key audit matter Recoverable project costs Refer to note 3 Costs incurred by Silex Systems Limited in relation to the Uranium Enrichment Project (“UEP”) are recharged to Global Laser Enrichment LLC (“GLE”). We considered this a key audit matter due to the magnitude of the revenue, and the judgemental nature of determining which expenses can be recharged. Our audit procedures included: •considering the Group’s accounting policy in line with the Australian Accounting Standards; •developing an understanding and, evaluating the design and implementation of key controls over the revenue to receivables business process; •for a sample of revenue transactions, obtaining source documents, evidencing cash receipts, assessing that the costs incurred were recognised in the right period and eligible to be recharged; •assessing reasonableness of the related financial statement disclosures in light of the requirements of Australian Accounting Standards Investment accounted for using the equity method Refer to note 15b Silex Systems Limited holds a 51% equity interest in Global Laser Enrichment Holdings LLC (GLEH). The share of net loss of GLEH is recognised within the Group’s consolidated statement of profit or loss and the carrying value of the investment in GLEH is recognised within the consolidated statement of financial position. We considered this a key audit matter due to the financial significance of GLEH to the Group’s financial report. Our audit procedures included: • agreeing the loss incurred for GLEH to underlying financial records; • agreeing capital contributions to bank statements; • assessing the recoverability of the carrying value of the GLEH investment; • testing the mathematical accuracy of the Group’s share in GLEH and the share of net loss recognised; • assessing reasonableness of the related financial statement disclosures in light of the requirements of Australian Accounting Standards Silex Annual Report 2026 90
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Other information The directors are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2026, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon through our opinion on the financial report. We have issued a separate opinion on the remuneration report. 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 on the other information that we obtained prior to the date of this auditor’s report, 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. Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of the financial report in accordance with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with 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 the financial report. Silex Annual Report 2026 91
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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://auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This description forms part of our auditor’s report. Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included in the directors’ report for the year ended 30 June 2026. In our opinion, the remuneration report of Silex Systems Limited for the year ended 30 June 2026 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. PricewaterhouseCoopers Aishwarya Chandran Sydney Partner 27 August 2026 Silex Annual Report 2026 92
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a. Distribution of equity securities Analysis of the number of equity security holders by size of holding and the total percentage of securities in that class held by the holders in each category: Class of equity security: Ordinary Shares Options Performance rights Holding No. of holders % of shares No. of holders % of options No. of holders % of rights 1 – 1,000 3,912 0.60% – – 3 0.40% 1,001 – 5,000 2,875 2.68% 8 1.19% 19 7.21% 5,001 – 10,000 862 2.34% – – 9 9.53% 10,001 – 100,000 1,075 11.28% 27 56.16% 4 19.50% 100,001 and over 193 83.10% 3 42.65% 2 63.36% Total number of holders 8,917 100.00% 38 100.00% 37 100.00% There were 561 holders of less than a marketable parcel of ordinary shares. b. Names of twenty largest quoted equity security holders as at 13 August 2026 Name Number of securities Percentage held HSBC Custody Nominees (Australia) Limited 62,910,728 22.59% Jardvan Pty Ltd 28,602,608 10.27% JP Morgan Nominees Australia Pty Limited 22,531,764 8.09% Citicorp Nominees Pty Limited 19,214,793 6.90% Pure Gold Pty Ltd 5,893,717 2.12% BNP Paribas Noms Pty Ltd 5,512,736 1.98% BNP Paribas Nominees Pty Ltd <IB AU Noms RetailClient> 4,797,291 1.72% Majenta Holdings Pty Ltd 4,491,423 1.61% Hillboi Nominees Pty Ltd 4,488,146 1.61% McCusker Holdings Pty Ltd 3,450,000 1.24% Throvena Pty Ltd 2,978,203 1.07% Spar Nominees Pty Ltd <The Devereux A/C> 2,819,000 1.01% Mr Christopher David Wilks 1,983,716 0.71% BNP Paribas Nominees Pty Ltd <Hub24 Custodial Serv Ltd> 1,893,193 0.68% RD Super Pty Ltd <RD Super Fund A/C> 1,812,775 0.65% Sporran Lean Pty Ltd <Sporran Lean S/F A/C> 1,679,000 0.60% Hamlac Pty Ltd 1,625,937 0.58% Quintal Pty Ltd <Harken Family A/C> 1,502,952 0.54% Dr Michael Philip Goldsworthy 1,288,695 0.46% Mr Xiangyang Wu 1,125,057 0.40% 180,601,734 64.83% c. Substantial holders Name Number of securities Percentage held Jardvan Pty Ltd 28,602,608 10.27% Van Eck Associates Corporation 23,679,491 8.50% State Street Corporation 17,442,656 6.26% Shareholder Information The shareholder information set out below was applicable as at 13 August 2026. Silex Annual Report 2026 93
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Shareholder Information d. Voting rights The voting rights attaching to each class of equity securities are set out below: – Ordinary 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. – Options: No voting rights. – Performance rights: No voting rights. e. Securities subject to voluntary escrow as at 13 August 2026 As at 13 August 2026, shares subject to voluntary escrow were as follows: Number of shares Escrow period ends 129,497 28/08/2026 249,725 04/09/2026 110,037 18/11/2026 40,000 16/12/2026 450,000 04/03/2027 189,500 28/08/2027 160,000 03/11/2027 562,500 14/12/2027 155,000 03/03/2028 f. Unquoted equity securities as at 13 August 2026 As at 13 August 2026, unquoted equity securities were as follows: Number on issue Number of holders Options issued under the Silex Systems Limited Employee Incentive Plan 1,814,300 37 Performance rights issued under the Silex Systems Limited Employee Incentive Plan 755,400 37 Options issued to Hyde Park Partners 200,000 1 Silex Annual Report 2026 94
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Corporate Directory Directors Mr C A Roy Chair Dr M P Goldsworthy CEO/Managing Director Ms S J Corlett Mr C D Wilks Ms J E Russell Company Secretary Audit and Risk Committee Ms S J Corlett Chair Mr C A Roy Mr C D Wilks Ms J E Russell Committee Secretary Remuneration and Nomination Committee Mr C A Roy Chair Ms S J Corlett Mr C D Wilks Ms K A Corbett Committee Secretary Registered Office and Principal Place of Business Building 64 Lucas Heights Science & Technology Centre New Illawarra Road Lucas Heights NSW 2234 Australia Postal address PO Box 75 Menai Central NSW 2234 Australia Phone: +61 2 9704 8888 Fax: +61 2 9704 8851 Email: investor.relations@silex.com.au Website: www.silex.com.au Share Registry Computershare Registry Services Pty Limited Level 5, 115 Grenfell Street Adelaide SA 5000 Australia GPO Box 1903 Adelaide SA 5001 Australia Enquiries: 1300 556 161 (within Australia) Enquiries: +61 8 8236 2300 (outside Australia) Email: web.queries@computershare.com.au Website: www.computershare.com.au Stock Exchange Listed on the Australian Stock Exchange: Ticker: SLX Listed on the OTCQX International: Ticker: SILXY American Depository Receipts (ADR) Information Silex Systems Limited’s ADRs may be purchased on the US OTCQX market. Details are as follows: Ratio: 1 ADR = 5 ordinary shares Symbol: SILXY CUSIP: 827046 10 3 9414F102 Exchange: OTCQX Country: Australia Auditors PricewaterhouseCoopers Solicitors Dentons Australia Limited Bankers Australia and New Zealand Banking Group Limited Silex Annual Report 2026 95
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Silex Systems Limited Annual Report 2026 www.silex.com.au