Earnings release
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21 October 2025 September 2025 Quarterly Activities Report 1 Operations improved across all key production metrics, with investment in overburden removal providing the solid foundation to deliver strong output in the fourth quarter “Operations have continued to safely deliver on the full-year recovery plan, with both ROM production and saleable production increasing from the second quarter. As anticipated, the second half is shaping up to be a tale of two quarters, with the third quarter characterised by a higher prime strip ratio as we caught up with our waste volumes in preparation for the fourth quarter. As expected, this will support stronger ROM coal mining, washing, and shipments in the December quarter, translating to a much lower prime strip ratio quarter-on-quarter. Barring any further adverse weather conditions, the business remains well -placed to deliver on our slightly revised full- year saleable production Guidance. This is supported by healthy inventory levels entering the fourth quarter and the back-ended production and sales profile, which is also expected to result in finishing the year with healthy ROM and in- pit coal inventories ahead of the wet season. Prime hard coking coal prices improved modestly over the quarter, as market sentiment in reaction to planned measures of enforcement of domestic coal production limits in China and stable demand unfolded against what is typically a seasonally weaker quarter for metallurgical coal. This was particularly favourable for Tier-2 hard coking coals, which rebounded to relativities more consistent with historical norms. Nonetheless, prices remain deep within the global cost curve, with industry commentary continuing to highlight concerns regarding the sustainability of current levels without a shift in supply-demand dynamics. For Stanmore, however, w e are proud to have continually demonstrated our financial resilience during this challenging period in the commodity price cycle, with cash improving over the quarter and a corresponding reduction in net debt.” Marcelo Matos, Chief Executive Officer & Executive Director Highlights • Continued safety discipline, with the rolling twelve-month Serious Accident Frequency Rate maintained at zero • ROM coal production of 5.3Mt, up from 4.9Mt in the p revious quarter and underpinned by robust operational performance • Record quarterly ROM and Saleable production at South Walker Creek , following investment in higher stripping and pit preparation activities earlier in the quarter • Saleable production of 3.6Mt, up ~1 4% on the previous quarter, which, when combined with healthy closing inventories, positions the portfolio well to deliver against full-year operational targets and Guidance • Adjustment of the upper end of our full year saleable production Guidance to reflect lower output from the Isaac Plains Complex, partially offset by a stronger performance expected at Poitrel, with no other changes to Guidance at this time • Despite elevated stripping activity and a back -ended sales profile, net debt improved to US$9 0 million as at 30 September compared to US$99 million net debt as at 30 June • Total liquidity is US$420 million as at September 30 , with all working capital facilities remaining undrawn , reflecting a resilient balance sheet amid continued softness in metallurgical coal markets For personal use only
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2 Consolidated Production & Sales Performance1 Quarter-Ended Year-to-Date Sep-25 Jun-25 Sep-25 Sep-24 ROM Coal Mined Mt 5.3 4.9 14.5 15.3 ROM Strip Ratio Prime 8.8 8.3 8.7 8.3 Saleable Coal Produced Mt 3.6 3.2 10.1 10.6 Sales of Produced Coal Mt 3.6 3.3 10.1 10.7 Sales of Purchased Coal Mt 0.0 0.0 0.0 0.1 Total Coal Sales Mt 3.6 3.3 10.1 10.8 Average Sales Price US$/t 132 127 132 173 Safety Stanmore’s operations continued their strong safety performance in the third quarter, with no serious accidents recorded, maintaining a twelve-month rolling Serious Accident Frequency Rate of zero. This is a continuation of the downward trend from previous quarters and remains well below the industry average. The rate of total recordable injuries also remained significantly lower than the same period last year, reinforcing the effectiveness of ongoing risk mitigation strategies and field -level safety engagement. This quarter, we focused on improving our Principal Hazard Management, which involved continued integration of critical controls into our hazard management plans and ongoing in-field verification. Operational Highlights South Walker Creek Quarter-Ended Year-to-Date Sep-25 Jun-25 Sep-25 Sep-24 ROM Coal Mined Mt 2.5 2.3 6.8 6.4 ROM Strip Ratio Prime 8.2 8.0 8.4 8.7 Saleable Coal Produced Mt 1.8 1.4 4.8 4.8 Total Coal Sales Mt 1.8 1.5 4.9 5.0 Run-of-mine (ROM) production continued its upward trajectory in unison with the mine capacity ramp-up, surpassing the previous record set in the June quarter. This recovery from earlier in the year was underpinned by robust overburden removal and a strong finish to the quarter, with over one million tonnes produced in September alone. This record ROM coal production also translated to a quarterly record for saleable production, over and above the previous record from September 2023 . The Coal Handling and Preparation Plant (CHPP) operated above its upgraded nameplate capacity throughout the quarter, further supporting output. With planned volume increases in the second half and healthy ROM stocks for the September quarter, South Walker Creek is well-positioned to meet its saleable production G uidance for the full year , which has remained unchanged since the last update. 1 Rounding may impact totals when computed in this table For personal use only
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3 Poitrel Quarter-Ended Year-to-Date Sep-25 Jun-25 Sep-25 Sep-24 ROM Coal Mined Mt 1.9 1.7 5.1 5.5 ROM Strip Ratio Prime 9.2 8.6 8.5 7.9 Saleable Coal Produced Mt 1.2 1.2 3.7 3.4 Total Coal Sales Mt 1.2 1.3 3.6 3.5 Poitrel delivered another solid quarter, with ROM production up ten percent quarter- on-quarter, recovering from weather related impacts in the first half. The modified mining sequence to address those impacts resulted in greater dozer push and higher stripping in the September quarter, temporarily lifting the strip ratio . These pit establishment activities have provided a strong foundation for the December quarter, where strip ratios are expected to normalise to round out the year. Saleable production and sales remained steady quarter-on-quarter, influenced by coal feed timing, which also led to higher ROM inventories compared to the June quarter. Y ear-to-date saleable production is tracking eight percent ahead of the prior year, which has supported an upward revision to the saleable production Guidance range. Isaac Plains Complex Quarter-Ended Year-to-Date Sep-25 Jun-25 Sep-25 Sep-24 ROM Coal Mined Mt 1.0 0.9 2.5 3.1 ROM Strip Ratio Prime 9.3 8.4 10.1 8.6 Saleable Coal Produced Mt 0.6 0.6 1.6 2.1 Total Coal Sales Mt 0.6 0.5 1.6 2.1 The Isaac Plains Complex continued its recovery efforts, with quarterly ROM coal production exceeding one million tonnes for the first time in twelve -months. This milestone reflects a more consistent production level, achieved despite fleet availability constraints, adverse weather conditions and low wall remediation activities in the southern pit at Isaac Downs. Overburden removal in Pit-5N increased during the period , driven by geotechnical challenges and the narrowing of work areas as the pit approaches completion in the fourth quarter. Saleable production remained steady quarter-on- quarter, supported by stable CHPP performance throughout the period – with closing ROM coal stocks now at their highest levels for the year. Production at the Isaac Plains Complex has stabilised and is now tracking in line with expectations. While we anticipate further improvement in the fourth quarter, the severe weather earlier in the year had a disproportionate impact on this site compared to others in the portfolio. Recovery efforts have therefore taken longer than initially projected, with the CHPP becoming the bottleneck for the remainder of the year. Considering this, we have revised our Guidance range to more accurately reflect current operating conditions. Development and Exploration Projects Exploration A total of A$5.4 million was spent on exploration activities across our operations during the quarter. Works included completion of key groundwater bore programs at the Isaac Downs Extension and Eagle Downs, along with structural, coal quality and gas drilling works also taking place at the Isaac Downs Extension and South Walker Creek. The 2025 seismic program commenced in August with completion of a 2D survey at South Walker Creek that same month, before moving to a 3D program at Isaac Downs Extension – which remains ongoing at the end of the quarter. Preparations also began for a planned 3D seismic program at the Lancewood project in mid-September, which will commence in quarter four. For personal use only
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4 Projects The Isaac Downs Extension project approvals pathway remains on target , with environmental fieldwork and supporting studies well advanced. Mine planning and optimisation is largely complete. The project is progressing in line with expectations, targeting submission of the Environmental Impact Statement in early 2026. Eagle Downs development studies and design work have continued to progress. Underground mine planning and geological work is significantly advanced as is work around optimising the underground services and drift construction methodology. Surface infrastructure design reviews have commenced, and environmental approvals work is underway for providing the interconnection infrastructure between Eagle Downs and Stanmore’s adjoining tenements, which may facilitate efficiencies through shared infrastructure and resources. The s tudy work remains on track and will continue through 2026. Corporate We are pleased to report an improvement in cash in the third quarter , reaching US$190 million as of 30 September 2025. Net debt finished the quarter lower at US$9 0 million1 and, when combined with total liquidity of US$4 20 million2, the Company maintains a robust balance sheet to continue to withstand the current softness in the metallurgical coal market. The improvement in our cash position and net debt aligned with expectation s for the quarter, driven by the previously anticipated increase in stripping activity and US$22 million of capital expenditures. Guidance3 The upper end of consolidated s aleable production Guidance for 2025 has been revised to reflect lower output expected from the Isaac Plains Complex, partially offset by stronger expected performance from Poitrel. Importantly, the lower end of consolidated saleable production remains unchanged, and our plans are currently tracking around the mid-point of the adjusted Guidance range ( and well within the original Guidance range ), despite this adjustment – highlighting our significant operational recovery following the severe wet weather earlier in the year. FOB Cash Cost Guidance for 2025 remains unchanged at US$85- 90/t, which reflects the improvement made earlier this year from the original range of US$89-94/t. As previously flagged, we continue to anticipate full-years costs will trend towards the upper end of the current range, subject to prevailing macroeconomic conditions. Capital expenditure Guidance remains unchanged. 2025 Full-Year Guidance Updated Guidance Range Previous Guidance Range Saleable Production Mt 13.8 – 14.2 13.8 – 14.4 South Walker Creek Mt 6.5 – 6.7 6.5 – 6.7 Poitrel Mt 4.9 – 5.0 4.7 – 4.9 Isaac Plains Complex Mt 2.4 – 2.5 2.6 – 2.8 FOB Cash Cost US$/t 85 – 90 85 – 90 Capital Expenditure US$m 80 – 90 80 – 90 1 Unaudited net cash / debt is calculated as the outstanding principal balance of any long-term balance sheet debt facilities, excluding lease liabilities accounted for under IFRS-16 and finance leases, less consolidated unrestricted cash on hand, including cash in transit. 2 Unaudited total liquidity includes available cash and US$230 million of available debt capacity, comprised of the undrawn US$160 million bank revolving credit facility and the US$70 million GEAR working capital facility 3 Assumes average AUD/USD of 0.6450 for 2025, in-line with consensus. All figures presented on a nominal basis and may differ due to rounding. Investors are cautioned not to place undue reliance on the forecasts provided, particularly in light of the general volatility in coal prices as well as the significant uncertainty surrounding global inflation and global economic outlook For personal use only
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5 Metallurgical Coal Markets Prices for prime hard coking coal increased from US$174 per tonne to US$190 per tonne during the quarter, reflecting a steady upward trend. Notably, Tier-2 low-vol hard coking coal outperformed, with its price relativity to premium low- vol hard coking coal improving by approximately eight percent , equating to a US$28 per tonne uplift in absolute terms. Lower Mongolia imports and the expected tightening of domestic metallurgical coal production in China, following announcements of plans to enforce production limits by the Chinese authorities , played an influential role . While China’s steel exports moderated earlier in the quarter from elevated levels in the first half of this year , they remain well above prior-year averages as the property sector and internal demand remains subdued. Ex-China market conditions were stable, with India continuing a diversified procurement strategy, and inventory cover remaining low during the monsoon season with no aggressive re-stocking taking place to date. Demand is expected to strengthen over the coming year, supported by new coke capacity rollouts and a resumption of Government infrastructure investment. Australian supply stabilised relative to the heavily weather-disrupted first half, though constrains persisted in specific product segments – particularly the premium mid -vol market, which continued to be affected by outages at key mines. - 50 100 150 200 250 300 350 400 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Prem Low Vol HCC FOB Aus Low Vol PCI FOB Australia $/Mt US$ Price / Metric Tonne Source: S&P Global Commodity Insights Platts Premium Low Vol HCC FOB Australia and Low Vol PCI FOB Australia indices: 2 October 2023 to 17 October 2025 Platts Premium Low Vol HCC FOB Australia Platts Low Vol PCI FOB Australia For personal use only
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6 Summarised Production Statistics1,2 Quarter-Ended Year-to-Date Sep-25 Jun-25 Sep-25 Sep-24 ROM Coal Mined Mt 5.341 4.905 14.512 15.282 South Walker Creek Mt 2.460 2.289 6.849 6.388 Poitrel Mt 1.855 1.684 5.119 5.512 Isaac Plains Complex Mt 1.026 0.932 2.544 3.139 Millennium Mt - - - 0.242 Strip Ratio Prime 8.8 8.3 8.7 8.3 South Walker Creek Prime 8.2 8.0 8.4 8.7 Poitrel Prime 9.2 8.6 8.5 7.9 Isaac Plains Complex Prime 9.3 8.4 10.1 8.6 Saleable Production Mt 3.608 3.177 10.118 10.560 South Walker Creek Mt 1.824 1.414 4.845 4.823 Poitrel Mt 1.185 1.188 3.683 3.402 Isaac Plains Complex Mt 0.600 0.575 1.590 2.110 Millennium Mt - - - 0.224 Total Coal Sales Mt 3.584 3.315 10.138 10.847 South Walker Creek Mt 1.811 1.488 4.894 4.986 Poitrel Mt 1.185 1.284 3.595 3.543 Isaac Plains Complex Mt 0.587 0.543 1.649 2.050 Millennium Mt - - - 0.267 Sales – Coking Coals % 21% 26% 24% 30% Sales – PCI % 72% 68% 70% 64% Sales – Thermal Coals % 7% 6% 6% 6% Average Sales Price US$/t 132 127 132 173 Product Coal Stockpile Mt 0.367 0.351 0.367 0.535 South Walker Creek Mt 0.071 0.066 0.071 0.138 Poitrel Mt 0.170 0.170 0.170 0.200 Isaac Plains Complex Mt 0.126 0.115 0.126 0.197 - ROM Coal Stockpile Mt 1.066 0.856 1.066 1.601 South Walker Creek Mt 0.448 0.418 0.448 0.351 Poitrel Mt 0.461 0.395 0.461 1.076 Isaac Plains Complex Mt 0.157 0.042 0.157 0.173 1 Rounding may impact totals when computed in this table 2 Note that Millennium underground operations ceased June 30, 2024 For personal use only
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7 This announcement has been approved for release by the Board of Directors of Stanmore Resources Limited. Further Information Investors Investors@stanmore.net.au Media Media@stanmore.net.au Our Brisbane corporate office is located on Turrbul and Jagera Country, on the banks of Meanjin, while our mining leases sit within Barada Barna, Jangga and Widi country. Follow us on LinkedIn. About Stanmore Resources Limited (ASX: SMR) Stanmore Resources Limited controls and operates the South Walker Creek, Poitrel and Isaac Plains Complex metallurgical coal mines as well as the undeveloped Isaac Downs Extension, Eagle Downs, Lancewood and Isaac Plains underground projects, in Queensland’s prime Bowen Basin region. Stanmore Resources holds several additional high-quality prospective coal tenements located in Queensland’s Bowen and Surat basins. The Company is focused on the cre ation of shareholder value via the efficient operation of its mining assets and the identification of further development opportunities within the region. More information about Stanmore can be found at stanmore.au For personal use only