Interim report
Page 1
Syrah Resources Limited ABN 77 125 242 284 INTERIM REPORT for the half-year ended 30 June 2026 Directors' report 1 Auditor’s independence declaration 5 Condensed consolidated statement of comprehensive income or loss 6 Condensed consolidated balance sheet 7 Condensed consolidated statement of changes in equity 8 Condensed consolidated statement of cash flows 9 Notes to the condensed consolidated financial statements 10 Directors’ declaration 34 Independent auditor's review report 35 Level 7, 477 Collins Street Melbourne VIC 3000 Telephone: +61 3 9670 7264 Email: enquiries@syrahresources.com.au Website: www.syrahresources.com.au
Page 2
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 1 DIRECTORS' REPORT The Directors present their report on the Syrah Resources Limited Group (“Syrah”, “the Group” or “the consolidated entity”), consisting of Syrah Resources Limited (“the Company”) and the entities it controlled at the end of, or during, the half -year ended 30 June 202 6. This interim report is presented in United States Dollars (USD) unless otherwise stated. Directors The following persons were Directors of the Company during the whole of the half -year period and up to the date of this report, unless otherwise stated: Samantha Hogg Non-Executive Chair Shaun Verner Managing Director José Manuel Caldeira Non-Executive Director Lisa Bahash Non-Executive Director Sara Watts Non-Executive Director John Beevers Non-Executive Director Robert Edel Non-Executive Director Principal activities The principal continuing activities of the consolidated entity consisted of: • Operations and stakeholder engagement at Balama and production of natural graphite products in Mozambique with a focus on managing operating costs; • Sales and development of natural graphite, including the enhancement of logistics, sales, and marketing strategies with targeted customers; • Development of the use of graphite from Balama as an input into the production of active anode material (“AAM”), anode precursor and industrial products, integrated supply to Vidalia and for 3rd parties; • Operation and optimisation of the Vidalia AAM facility and production of AAM focusing on operating costs; • Intensive technical engagement with customers of Vidalia AAM, deliveries of commercial AAM samples, progression of qualification processes and negotiation of commercial supply agreements; and • Advanced engineering and evaluation of the potential expansion of Vidalia’s production capacity to 45ktpa AAM (“Vidalia Further Expansion Project”). REVIEW OF OPERATIONS Business update During the interim financial period, Balama production and sales increased compared with the prior corresponding period, which was affected by an extended operating disruption. Balama production during the interim financial period was impacted by subdued demand for natural graphite fines outside China . T he Company was focused on managing inventory levels and operating cash outflows whilst satisfying contracted demand. Natural graphite market conditions and Balama sales were negatively affected by oversupply and intense competition from Chinese graphite producers, particularly in the battery segment. Syrah competed with a new Chinese-owned, state-directed natural graphite operation that commenced competing fines exports from Mozambique based on the prevailing policy settings. Policy uncertainty associated with US trade measures, including the final negative antidumping and countervailing duty (“AD/CVD”) determination and import tariff developments, contributed to cautious customer purchasing activity outside of China during the period. Through the interim financial period, Balama produced approximately 25,800 tonnes (H1 2025: 6,500 tonnes) of graphite and sold and shipped approximately 26,600 tonnes (H1 2025: 1,800 tonnes) of graphite to 3rd party customers. No natural graphite was shipped from Balama to the Vidalia AAM facility during the interim financial period with adequate natural graphite inventories being held at the Vidalia AAM facility in the US.
Page 3
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 2 Operations at the Vidalia AAM Facility were focused on progress toward customer qualification, process validation requirements and commercial readiness initiatives while minimising operating costs and working capital requirements. Customer AAM purchasing did not commence during the interim financial period and therefore greater production volume at Vidalia was not warranted . Customer qualification processes under existing offtake contracts and for prospective customers continued but were not completed as at the end of the interim financial period . During the interim financial period, t he Company produced approximately 150 tonnes of AAM that met or exceeded contractual and target specifications for qualification testing, mass production line sampling and process control demonstration activities. The Vidalia operations team focused on process optimisation , automation and reliability improvements, operational and planning documentation, analytical consistency checks, quality assurance systems and laboratory testing procedures. Production campaigns successfully demonstrated operation of all major process areas at or near peak design capacity. AAM sales from the Vidalia AAM Facility are expected to commence in the half ending December 2026, and this, along with further significant customer commitments are important requirements for the Vidalia Further Expansion Project . The timing of a final investment decision for the Vidalia Further Expansion Project is dependent on commercial sales commencement, customer commitments and project financing outcomes. Evolving critical minerals, trade and industrial policy influence d customer procurement strategies and qualification activities during the period. Existing and proposed tariffs on Chinese graphite products, Section 45X production tax credits and broader efforts to support domestic and allied critical mineral supply chain s have increased the strategic importance of ex-China natural graphite and AAM supply. Notwithstanding this, during the interim financial period, the US International Trade Commission reached a final negative determination in the AD/CVD investigation into whether graphite AAM imports into the US from China materially retarded the establishment of a domestic AAM industry . With this determination, which reversed a previous preliminary determination, AD/CVD rates of between 160% and 170%, as determined by US Department of Commerce to offset dumping of products from China producers into the US , did not become effective on graphite AAM imported from China. REVIEW OF FINANCIAL RESULTS Statement of comprehensive income The total loss after income tax amounted to $107.9 million during the interim financial period ended 30 June 2026 (2025: $59.8 million loss). Revenue from continuing operations increased to $18.1 million (2025: $2.0 million), primarily because in prior year production at Balama was suspended for the majority of the period. The consolidated entity incurred a gross loss of $32.3 million (2025: $33.4 million), reflecting the continued recognition of operating costs at Balama and Vidalia. Total distribution costs increased to $4.4 million (2025: $1.4 million) due to higher shipping costs which are in line with higher sales compared to the corresponding period in prior year. Total administrative costs also increased to $7.9 million (2025: $6.5 million) due to increase in legal and consulting expenses and employee benefits expenses. An impairment of fixed assets of $35.2 million (2025: nil) was recognised for the Vidalia AAM facility as a result of impact on the value of this asset from the negative ITC determination. A write-down of inventories of $ 4.5 million (2025: $4.7 million) was also recognised. Finance costs increased to $23.9 million (2025: $16.5 million), primarily driven by the higher interest expense on borrowings and increased legal and advisory costs directly associated with the Group’s financing arrangements, resulting in net finance costs of $22.7 million (2025: $15.4 million). Statement of financial position Total assets of the consolidated entity as at 30 June 2026 were $685.4 million (31 December 2025: $711.2 million). The consolidated entity’s Cash and Cash Equivalents as at 30 June 2026 were $98.3 million (31 December 2025: $77.1 million), including $67.3 million (31 December 202 5: $59.5 million) of restricted cash, which is
Page 4
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 3 subject to certain restrictions under the US Department of Energy (“DOE”) and the US International Development Finance Corporation (“DFC”) loan agreements. The net increase in Cash and Cash Equivalents was mainly due to equity raising activity undertaken during the first half of the year. Property, plant and equipment decreased to $355.4 million as at 30 June 202 6 (31 December 2025: $397.2 million), primarily due to impairment of $35.2 million (2025: nil) and depreciation expenses of $8.9 million (2025: $8.8 million) during the period, partially offset by additions. Mining assets decreased to $110.4 million (31 December 2025: $112.2 million) due to depreciation. Deferred tax assets decreased to $59.5 million (31 D ecember 2025: $ 67.2 million), primarily due to the temporary differences arising from current period tax losses and other deductible timing differences. Deferred tax liabilities also decreased to $40.2 million (31 December 202 5: $ 47.4 million), primarily due to the impairment charge reducing temporary differences between the carrying value and tax base of the Company's assets. Total liabilities of the consolidated entity as at 30 June 2026 were $398.6 million (31 December 2025: $385.4 million), primarily due to an increase in borrowings, which rose to $311.5 million (31 December 2025: $292.8 million). The increase reflects the accrual of interest and foreign exchange t ranslation impacts on AUD denominated debt, resulting from the strengthening of the Australian dollar against the US dollar during the period. Total equity of the consolidated entity as at 30 June 202 6 was $286.8 million (31 December 202 5: $325.7 million), largely reflecting the half -year loss, partially offset by increase in i ssued capital to $1.1 billion (31 December 2025: $985.9 million) due to equity raising undertaken during the half-year. Statement of cash flows Cash flow from operating activities The net cash outflow from operating activities during the interim financial period ended 30 June 202 6 was $46.0 million ( 2025: $35.9 million) and principally consisted of receipts from the sale of natural graphite products, offset by operational expenditures at Balama, operational costs at Vidalia, and corporate office, legal and adviser costs relating to loan facilities, compliance and other employee benefits expenses. Cash flow from investing activities The net cash outflow from investing activities during the interim financial period ended 30 June 2026 was $4.6 million (2025: $4.6 million) and principally consisted of payments for capital expenditure for Vidalia and security deposits. Cash flow from financing activities The net cash inflow from financing activities during the interim financial period ended 30 June 2026 was $72.1 million (2025: net cash outflo w of $4.3 million), primarily reflecting proceeds from the equity raising and the insurance premium financing, partially offset by cash outflows related to share issue transaction costs and repayments of lease liabilities and borrowings. Other The attached financial report for the half year ended 30 June 2026 contains an independent auditor’s report which highlights the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern. For further information, refer to Note 1 in the financial report which highlights a number of initiatives that the Group is undertaking to mitigate this uncertainty in the near term, together with the auditor’s report. Significant changes in state of affairs There were no significant changes in the nature of activities or state of affairs of the consolidated entity during the half-year period other than those included in the review of operations.
Page 5
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 4 Matters subsequent to the end of the interim financial period In July 2026, Syrah Technologies received US$8.4 million under the Section 45X Advanced Manufacturing Production Tax Credit program, a US federal initiative that provides production -based incentives to manufacturers of eligible critical minerals and clean energy components. No other events have occurred subsequent to 30 June 2026 that have significantly affected, or may significantly affect the Group’s operations, the results of those operations, or the state of affairs in future financial periods. Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5. Rounding of amounts The Group is of a kind referred to in ASIC Legislative Instrument 20 26/183, relating to the “rounding off” of amounts in the Directors’ Report and the Condensed Consolidated Financial Statements. Amounts in the Directors’ Report and the Condensed Consolidated Financial Statements have been rounded off in accordance with this Instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar. This report is made in accordance with a resolution of Directors. Shaun Verner Managing Director Melbourne, Australia 9 September 2026
Page 6
PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331 MELBOURNE VIC 3001 T: +61 3 8603 1000, F: +61 3 8603 1999, 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 Syrah Resources Limited's financial report for the half-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 review of the financial report; and b) no contraventions of any applicable code of professional conduct in relation to the review of the financial report. Marc Upcroft Melbourne Partner 9 September 2026 PricewaterhouseCoopers 5
Page 7
6 SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME OR LOSS FOR THE HALF-YEAR ENDED 30 JUNE 2026 30 JUNE 2026 30 JUNE 2025 NOTES US$’000 US$’000 Revenue from continuing operations Revenue 3 18,063 2,006 Cost of sales 4 (50,401) (35,413) Gross loss (32,338) (33,407) Distribution costs 5 (4,440) (1,373) Administrative expenses 6 (7,930) (6,497) Other income - 2,063 Other expenses (318) - Write-down of inventories (4,502) (4,749) Total expenses (17,190) (10,556) Impairment of assets 9 (35,195) - Loss before net finance costs and income tax (84,723) (43,963) Finance income 1,174 1,078 Finance costs (23,909) (16,502) Net finance costs (22,735) (15,424) Loss before income tax (107,458) (59,387) Income tax expense 7 (435) (407) Loss after income tax for the half-year (107,893) (59,794) Other comprehensive income / (loss) Items that may be reclassified subsequently to the profit or loss Exchange differences on translation of foreign subsidiaries 10(c) (3,461) (3,831) Other comprehensive income/(loss) for the period, net of tax (3,461) (3,831) Total comprehensive loss for the period (111,354) (63,625) Total comprehensive loss for the period attributable to: - Equity holders of Syrah Resources Limited (110,326) (62,259) - Non-controlling interest (1,028) (1,366) (111,354) (63,625) Loss per share for loss attributable to the owners of Syrah Resources Limited: Cents Cents Basic loss per share (6.39) (5.98) Diluted loss per share (6.39) (5.98) The above condensed consolidated statement of comprehensive income or loss should be read in conjunction with the accompanying notes.
Page 8
7 SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 CONDENSED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2026 NOTES 30 JUNE 2026 US$’000 31 DECEMBER 2025 US$’000 Assets Current assets Cash and cash equivalents 8(a) 98,256 77,087 Trade and other receivables 8(b) 16,842 19,104 Inventories 9(a) 31,341 29,038 Total current assets 146,439 125,229 Non-current assets Trade and other receivables 8(b) 13,675 9,322 Property, plant and equipment 9(c) 355,371 397,172 Mining assets 9(b) 110,395 112,218 Intangible assets 8 8 Deferred tax assets 9(d) 59,546 67,236 Total non-current assets 538,995 585,956 Total assets 685,434 711,185 Liabilities Current liabilities Trade and other payables 8(c) 26,245 25,004 Borrowings 8(e) 167,341 160,079 Lease liabilities 8(d) 256 187 Current tax liabilities 118 118 Provisions 9(e) 3,295 2,399 Total current liabilities 197,255 187,787 Non-current liabilities Trade and other payables 8(c) 4,111 4,026 Borrowings 8(e) 144,160 132,757 Lease liabilities 8(d) 225 211 Deferred tax liabilities 9(d) 40,182 47,437 Provisions 9(e) 12,654 13,226 Total non-current liabilities 201,332 197,657 Total liabilities 398,587 385,444 Net assets 286,847 325,741 Equity Issued capital 10(a) 1,058,735 985,853 Reserves 10(c) (17,310) (12,650) Accumulated losses (750,044) (643,956) Non-controlling interest 10(d) (4,534) (3,506) Total equity 286,847 325,741 The above condensed consolidated balance sheet should be read in conjunction with the accompanying notes.
Page 9
8 SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR HALF-YEAR ENDED 30 JUNE 2026 CONTRIBUTED EQUITY OTHER EQUITY ACCUMULATED LOSSES NON- CONTROLLING INTEREST RESERVES TOTAL EQUITY US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Balance at 1 January 2026 985,853 - (643,956) (3,506) (12,650) 325,741 Loss after income tax expense for the period - - (106,865) - - (106,865) Non-controlling interest - - - (1,028) - (1,028) Other comprehensive income/(loss) for the period, net of tax - - - - (3,461) (3,461) Total comprehensive income/(loss) for the period - - (106,865) (1,028) (3,461) (111,354) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs 71,086 - - - - 71,086 Share-based payments - - - - 1,374 1,374 Issue of new shares to the Employee Share Trust 1,796 (1,796) - - - - Transfers from share-based payment reserve: - Issuance of treasury shares - 1,796 - - (1,796) - - Expired/lapsed performance rights - - 777 - (777) - 72,882 - 777 - (1,199) 72,460 Balance at 30 June 2026 1,058,735 - (750,044) (4,534) (17,310) 286,847 Balance at 1 January 2025 940,086 - (547,386) (641) (9,834) 382,225 Loss after income tax expense for the period - - (58,428) - - (58,428) Non-controlling interest - - - (1,366) - (1,366) Other comprehensive income/(loss) for the period, net of tax - - - - (3,831) (3,831) Total comprehensive income/(loss) for the period - - (58,428) (1,366) (3,831) (63,625) Transactions with owners in their capacity as owners: Share-based payments - - - - 1,509 1,509 Issue of new shares to the Employee Share Trust 1,930 (1,930) - - - - Transfers from share-based payment reserve: - Issuance of shares 28 - - - (28) - - Issuance of treasury shares - 1,930 - - (1,930) - - Expired/lapsed performance rights - - 1,228 - (1,228) - 1,958 - 1,228 - (1,677) 1,509 Balance at 30 June 2025 942,044 - (604,586) (2,007) (15,342) 320,109 The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Page 10
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 9 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 JUNE 2026 30 JUNE 2026 30 JUNE 2025 NOTES US$’000 US$’000 Cash flows from operating activities Receipts from customers 22,148 4,683 Payments to suppliers and employees (inclusive of goods and services tax) (69,278) (41,703) Interest received 1,174 1,078 Net cash outflow from operating activities (45,956) (35,942) Cash flows from investing activities Payments for property, plant and equipment (2,395) (4,584) Payments for security deposits (2,192) - Net cash outflow from investing activities (4,587) (4,584) Cash flows from financing activities Proceeds from issue of shares 73,465 - Share issue transaction costs (2,379) - Payment of principal and interest on lease liabilities (106) (780) Repayment of principal and interest on borrowings (889) (5,584) Net proceeds from borrowings 1,934 2,038 Proceeds from sale of treasury shares to settle employee withholding taxes 97 76 Net cash inflow/(outflow) from financing activities 72,122 (4,250) Net (decrease)/increase in cash and cash equivalents 21,579 (44,776) Cash and cash equivalents at the beginning of the half-year 77,087 87,467 Effects of exchange rate changes on cash and cash equivalents (410) 93 Cash and cash equivalents at the end of the half-year 8(a) 98,256 42,784 The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Page 11
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 10 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS These condensed consolidated financial statements are for the Consolidated entity consisting of Syrah Resources Limited and its subsidiaries and are presented in United States Dollars (USD). Syrah Resources Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office is at c/ - Vistra Australia (Melbourne) Pty Ltd, Suite 2, Level 11, 385 Bourke Street, Melbourne VIC 3000 and principal place of business is at Level 7, 477 Collins Street, Melbourne, Victoria 3000. Its shares are listed on the Australian Securities Exchange (ASX: SYR). NOTE 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (a) Basis of preparation The condensed consolidated interim financial report for the half -year reporting period ended 30 June 2026 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This condensed consolidated interim financial report does not include all the notes of the type normally included in an Annual Financial Report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 31 December 2025 and any public announcements made by Syrah during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. Going concern basis of preparation The financial statements have been prepared on the going concern basis which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. For the half -year ended 30 June 2026, the Group incurred a loss after income tax of $ 107.9 million (30 June 2025: $59.8 million) and incurred net cash outflows from operating activities of $ 46.0 million (30 June 2025: $35.9 million). As of 30 June 2026, the Group had a Cash and Cash Equivalents balance of $ 98.3 million (31 December 2025: $77.1 million), of which $ 31.0 million is unrestricted cash, and net current liabilities of $ 50.8 million (31 December 2025: net current liabilities of $62.6 million). The Group requires significant capital to develop and grow its business and expects to incur operating losses and net cash outflows, including those relating to general and administrative costs, customer qualification, procurement of equipment, research an d development, regulatory compliance, legal and advisor expenses, operations, and sales and distribution as the Group builds its brand and markets its products. The Group’s ability to become profitable in the future will depend on its ability to successfully market its products and to control its costs. An inability to o btain finance on acceptable terms, or at all, may cause, among other things, substantial delays in, or prevention of, the operation of Balama and the operation and further expansion of the Vidalia AAM Facility. Regarding the DFC and DOE loans, while certain waivers, forbearance arrangements and loan disbursements have been completed, unresolved events of default existed under both loans as at the end of the interim financial period. Such events of default gave DFC and DOE enforcement rights including requiring the full loan repayment under respective loan agreements as at balance sheet date. As a result, all outstanding balances associated with the DOE and DFC loan are classified as current liabilities. Balama production and sales Through the half -year ending 30 June 202 6, Balama production was limited to campaign operations due to subdued market demand, to contain operating costs . For the first six months, Balama produced approximately 25,800 tonnes of natural graphite and sold approximately 26,600 tonnes during the period. While first half production and sales were low, they were higher than the corresponding period in 2025 due to the blockade of the Balama site (2025 H1 production and sales were approximately 6,500 tonnes and 1,800 tonnes, respectively).
Page 12
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 11 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (CONTINUED) (a) Basis of preparation (Continued) Vidalia qualification and production Since the completion of construction in 2024, and including the first half of 2026, Vidalia production has been limited because of extended qualification processes with customers. Qualification timelines and AAM sales from Vidalia are influenced by US Government policy , including tariff settings and tax credit eligibility . While these measures support ex-China producers such as Syrah, they have not yet been developed and implemented sufficiently to counter aggressive market activity that is impeding the development of ex-China producers. The Group engaged with its offtakers and other potential customers on technical qualification processes and supplied qualification AAM volumes to support such processes. The Group also optimised operations of the Vidalia AAM facility and prepared to ramp up production of the Vidalia AAM facility to supply and sell commercial AAM volumes to offtake customers. The Group is also undertaking activities to prepare for a Final Investment Decision (“FID”) for the Vidalia Further Expansion Project. Timing of the FID will be determined by customer and financing commitments, clarity in relation to US Government policy to offset China market manipulation, as well as consideration of funding conditions, and is subject to Syrah Board approval. The Group continues to assess scenarios for the Group’s cash flow and liquidity profile based on a broad range of factors. Graphite market conditions and policy impacts Historically, the Group has experienced challenging market conditions for sales of natural graphite from Balama due to the impacts of excessive production capacity development for synthetic graphite AAM in China. More recently, those challenging market conditions have been exacerbated by an increase in mining and production capacity of natural graphite products by Chinese companies operating outside China, and aggressive market tactics by these companies. Changes to U.S. Government policy relating to battery manufacturing and critical minerals, including tax credits and import tariffs on competing merchandise imported from China to the United States, are expected to stimulate ex-China demand once implemented, including differentiating between Chinese and non-Chinese companies operating outside China. Elements of the One Big Beautiful Bill Act signed into law on 4 July 2025 are expected to support key aspects of Syrah’s business in the short, medium and long- term. This includes Prohibited Foreign Entity (“PFE”) requirements and new material assistance rules for US battery manufacturers to qualify for Section 45X Production Tax Credits, which mandates an increasing proportion of input material and component costs to be sourced from non -PFEs (e.g. Syrah). In February 2026, antidumping and countervailing duties (“AD/CVD”) on Chinese graphite AAM imported into the United States were finalised by the U.S. Department of Commerce (“DOC”), concluding a detailed assessment of the extent to which China AAM imports into the US were being subsidized by Chinese producers and the Chinese government, and the duties required to offset that dumping activit y. However, in March 2026, the US International Trade Commission (“ITC”) reached a final negative determination in the AD/CVD investigation into whether graphite AAM imports into the United States from China are materially retarding the establishment of a domestic AAM industry. With this determination, the AD/CVD rates of between 160% and 170% determined by DOC did not become effective on AAM imported from China. The final negative determination reversed the preliminary affirmative determination in January 2025, in which ITC determined there was a reasonable indication that Chinese AAM imports were materially retarding the establishment of a US AAM industry. In the first half of 2026, the ITC final negative determination impacted sales of natural graphite from Balama in particular, given minimal immediate incentive for customers to purchase ex -China material. Absent supportive policy development to counter Chi na market manipulation, the negative determination may also impact further investment in downstream capacity expansion in the US, including the Vidalia Further Expansion Project.
Page 13
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 12 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (CONTINUED) (a) Basis of preparation (Continued) Notwithstanding this negative ITC determination, significant policy directions from the current and prior US administrations supports domestic ex -China production sources of natural graphite and AAM . Once implemented, these additional US Government policy measures are expected to improve the competitive position of Vidalia to supply AAM, potentially driving accelerated sales and expanded demand for Vidalia AAM, demand for Balama natural graphite as feedstock for both integra ted and non-integrated AAM facilities outside of China, and the commercial position of Syrah with customers through the supply chain . Downstream customers are also incentivised to develop ex -China supply options because of the Chinese Government’s export licence controls on designated graphite products. Chinese Government export licence controls have led to material reduction in the trade of natural graphite, spherical graphite and AAM to certain countries, contributed to supply insecurity and resulted in a higher focus on ex-China alternative suppliers such as Syrah. Equity raising and strategic funding proposals On 26 March 2026, Syrah announced a fully underwritten pro rata accelerated non -renounceable entitlement offer to raise a total of A$104 million (US$72 million). In addition, non -binding strategic funding proposals were received from US International Devel opment Finance Corporation (“DFC”) and AustralianSuper, and the US Department of Energy (“DOE”) which are detailed in the annual report for the year ending 31 December 2025. The Strategic Funding Proposals align key stakeholders, support Syrah’s leading position in ex -China natural graphite and active anode material (“AAM”) supply and propose providing the Company financial flexibility to operate and ramp -up its assets as grap hite markets continue to evolve. The Company and key stakeholders continue to work towards agreeing proposed transactions to implement the intent of the Strategic Funding Proposals. Syrah is progressing a further US$15 million DFC loan disbursement to Syrah's subsidiary, Twigg Exploration and Mining Limitada, to fund working and sustaining capital at Balama, which remains subject to DFC approvals and other conditions. Syrah now expects this further loan disbursement to be completed in October 2026. The proposed transactions contemplated in the Strategic Funding Proposal continue to be advanced by Syrah together with AustralianSuper, DFC and DOE. However, agreement of binding documentation is taking longer than expected, including due to the current focus on terms for the US$15 million disbursement, and accordingly the Strategic Funding Proposals remain subject to execution of binding transaction documentation, receipt of approvals and satisfaction of conditions precedent. Funding and operational initiatives Certain initiatives were identified during the period and have continued to be executed. These include: • At Balama the Group has been managing production during this period of lower sales through the implementation of a revised operating mode to reduce costs. Through this initiative, the Group targets ~30- day high capacity utilisation production campaigns followed by curtailment periods determined by inventory levels and new sales demand. Production campaigns are dependent on sales from inventory and new sales orders at production volumes averaging at least 10kt per month, in line with a revised Balama operating mode and a lower unit operating cost. The Group has the capability to return to higher capacity utilisation should natural graphite demand increase, while focusing on strengthening plant reliability and identifying and implementing operational efficiencies during the shutdown periods to ensure strong operational performance in future production periods. Equally, if demand conditions remain subdued, further action will be taken to reduce costs.
Page 14
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 13 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (CONTINUED) (a) Basis of preparation (Continued) • Pursuit of a sales strategy that diversifies sales of fines material beyond customers in China, to also grow volumes with customers developing anode production facilities in other geographic locations which is expected to deliver a higher price for that ma terial and overall, a more stable utilisation of Balama’s production capacity. • Ensuring that key government stakeholders understand the impacts on sales from Balama and Vidalia from the negative ITC determination and ongoing China market manipulation, with US policy required to offset the impacts from that market activity, and providing input into that policy framework . • Expediting qualification processes at Vidalia with its offtakers and other potential customers to achieve sales of AAM and revenue as soon as possible. At the same time, costs are being managed through minimisation of production to meet potential sales volumes, and optimisation of workforce size to existing production requirements. • Reviewing potential industry strategic and consolidation opportunities, including consideration of potential opportunities for capital injections at the Group level, or partnerships, working with an investment bank to execute on those initiatives. • Continuing to execute the Strategic Funding Proposals and support short, medium and longer term funding arrangements. The Group believes that if it is able to execute on the above initiatives, and there is increasing clarity in relation to policies of the US Government to address the demand for material produced outside China, then the conditions will be supportive of higher prices and volumes, and potential alternative capital opportunities, as required. Notwithstanding the above, the Directors are mindful of the fact that additional capital may be needed. Material uncertainty relating to going concern The ability of the Group to continue as a going concern is dependent on the Group continuing to implement its key funding and operational initiatives. The Group may require additional financing, in addition to existing cash reserves and the Strategic Funding Proposals , to meet activities associated with the Vidalia AAM facility, the Vidalia Further Expansion Project, operating and capital expenditure requirements for Balama and Vidalia, and general and administrative expenditures. We continue to assess possible scenari os for the Group’s cash flow and liquidity profile based on a broad range of factors. Due to ongoing uncertainty in production and sales volumes from the Balama operation and timing of sales from Vidalia, and that the non-binding strategic funding proposals from its lenders remain subject to documentation and approvals, as well as uncertainty around future funding, it has been determined that there is material uncertainty which may cast significant doubt on the Group’s ability to continue as a going concern and therefore should these initiatives not be completed as expected, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. However, the Directors are confident that the Group will be successful in the above matters, including obtaining adequate cash resources to meet its obligations and continue its business activities in all scenarios that they consider reasonably possible an d accordingly have adopted the going concern basis of accounting in the preparation of these financial statements.
Page 15
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 14 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (CONTINUED) (b) Material accounting policies The accounting policies, methods of computation and areas of critical accounting judgements, estimates and assumptions are the same as those adopted in the most recent Annual Financial Report for the year ended 31 December 2025 unless otherwise stated in this report. No new or amended accounting standards and interpretations became applicable for the current reporting period which had an impact on the Group’s accounting policies. AASB 18 Presentation and Disclosure in Financial Statements is effective for annual reporting periods beginning on or after 1 January 2027. The Standard introduces new presentation and disclosure requirements, including changes to the statement of profit or loss. The Group is currently assessing the impact of AASB 18 on its financial statements. (c) Comparative figures Where necessary, comparative figures have been adjusted to conform to changes in the presentation in the current period.
Page 16
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 15 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 2. SEGMENT INFORMATION (a) Description of segments Management has determined and presented operating segments based on the reports reviewed by the Executive Management Team, who are the Group’s chief operating decision makers in terms of assessing performance and allocating resources. The Board of Director s reviews the performance of the Group on a similar basis. The Group primarily monitors performance according to the following segments: Balama Production, distribution, and sale of natural graphite from the Balama Graphite Operation in Mozambique. Vidalia Production, qualification and sale of natural graphite AAM from the Vidalia AAM Facility, evaluation of the Vidalia Further Expansion Project, customer engagement and commercial negotiations, and research and development. Corporate Corporate administration, treasury and investing activities. (b) Segment information provided to the Executive Management Team BALAMA VIDALIA CORPORATE CONSOLIDATED US$’000 US$’000 US$’000 US$’000 Half-year ended 30 June 2026 Total segment revenue 18,000 85 - 18,085 Inter-segment revenue (22) - - (22) Revenue from external customers 17,978 85 - 18,063 Loss after income tax for the half- year (33,317) (59,089) (15,487) (107,893) Finance income (205) (610) (359) (1,174) Finance costs 10,678 5,131 8,100 23,909 Depreciation and amortisation expenses 4,240 6,170 60 10,470 Income tax expenses 435 - - 435 Adjusted EBITDA 2026 (18,169) (48,398) (7,686) (74,253) Half-year ended 30 June 2025 Total segment revenue 1,843 163 - 2,006 Inter-segment revenue - - - - Revenue from external customers 1,843 163 - 2,006 Loss after income tax for the half- year (23,438) (21,953) (14,403) (59,794) Finance income (229) (536) (313) (1,078) Finance costs 5,009 4,923 6,570 16,502 Depreciation and amortisation expenses 4,266 6,091 52 10,409 Income tax expenses 407 - - 407 Adjusted EBITDA 2025 (13,985) (11,475) (8,094) (33,554)
Page 17
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 16 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 2. SEGMENT INFORMATION (CONTINUED) (b) Segment information provided to the Executive Management Team (Continued) BALAMA VIDALIA CORPORATE CONSOLIDATED US$’000 US$’000 US$’000 US$’000 Total segment current assets 30 June 2026 53,753 61,149 31,537 146,439 31 December 2025 42,698 64,678 17,853 125,229 Total segment non-current assets 30 June 2026 244,521 294,248 226 538,995 31 December 2025 243,495 342,191 270 585,956 Total segment liabilities 30 June 2026 (105,662) (144,026) (148,899) (398,587) 31 December 2025 (101,150) (147,042) (137,252) (385,444) Sales between segments are carried out at arm’s length and are eliminated on consolidation. Segment assets are allocated based on the operations of the segment and the physical location of the asset. NOTE 3. REVENUE 30 JUNE 2026 US$’000 30 JUNE 2025 US$’000 Revenue from external customers 18,063 2,006 (a) Geographical information Revenues from sales to external customers based on the geographical location of the port of discharge . (b) Major customer information Revenue from five major customers (one in Asia excluding China and India, two in Europe, one in America and one in India), each of which individually accounted for 6% or more of total revenues, amounted to $12.5 million. Sales to customers in Asia (excluding China and India), Europe, India and the Americas represented 32%, 28%, 24% and 15% of total revenue, respectively. 30 JUNE 2026 US$’000 30 JUNE 2025 US$’000 Europe 4,985 357 India 4,394 419 Asia (exc. China and India) 5,811 45 Americas 2,741 1,172 Other locations 132 13 18,063 2,006
Page 18
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 17 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 4. COST OF SALES 30 JUNE 2026 US$’000 30 JUNE 2025 US$’000 Mining and production costs 40,020 27,325 Logistics costs 4,455 3,477 Government royalties 299 34 Depreciation and amortisation expense 10,428 10,357 Changes in inventories (4,805) (6,082) Other costs 4 302 50,401 35,413 NOTE 5. DISTRIBUTION COSTS 30 JUNE 2026 US$’000 30 JUNE 2025 US$’000 Shipping costs 3,296 553 Other selling costs 1,144 820 4,440 1,373 NOTE 6. ADMINISTRATIVE EXPENSES 30 JUNE 2026 US$’000 30 JUNE 2025 US$’000 Employee benefits expense Salaries and wages 2,935 2,090 Share-based payments 1,296 1,665 Employee entitlements 254 233 Employer contribution superannuation expense 269 205 Total employee benefits expenses 4,754 4,193 Legal and consulting expenses Legal expenses 296 348 Consulting expenses 1,313 993 Total legal and consulting expenses 1,609 1,341 Other expenses Other administrative expenses 1,567 963 Total other expenses 1,567 963 Total administrative expenses 7,930 6,497
Page 19
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 18 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 7. INCOME TAX EXPENSE (a) Income tax expense 30 JUNE 2026 30 JUNE 2025 US$’000 US$’000 Current tax expense - - Deferred tax expense 435 407 Total tax expense 435 407 Deferred income tax (Increase)/decrease in deferred tax assets 7,690 (34,895) Increase/(decrease) in deferred tax liabilities (7,255) 35,302 Total deferred tax expense 435 407 (b) Numerical reconciliation of income tax expense to prima facie tax payable 30 JUNE 2026 30 JUNE 2025 US$’000 US$’000 Loss before income tax expense from continuing operations (107,458) (59,387) Tax at the Australian tax rate of 30% (30 June 2025: 30%) (32,237) (17,816) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: - Share-based payments 197 195 - Thin Capitalisation 2,362 1,909 - Other non-deductible expenses 1,821 638 - Differences in overseas tax rate 3,467 (1,625) - Movement in unrecognised temporary differences - (181) - Current period taxation losses not recognised as deferred tax assets 24,259 17,198 - Other differences 566 89 Income tax expense 435 407
Page 20
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 8. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (a) Cash and cash equivalents 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Cash at bank and in hand 12,252 2,385 Deposits at call 18,705 15,222 Other - restricted cash 67,299 59,480 Total cash and cash equivalents 98,256 77,087 Cash and Cash Equivalents comprise cash on hand, deposits and cash at call held at financial institutions, other short -term, highly liquid investments with maturities of three months or less that are readily convertible to amounts of cash and which are subject to an insignificant risk of changes in value. Total cash is held in current accounts or money market deposits with major financial institutions under normal terms and conditions appropriate to the operation of the accounts. These deposits earn interest at rates set by these institutions. As at 30 June 2026, the weighted average interest rate on current accounts and term deposits was 2.91% (31 December 2025: 2.88%). Restricted cash is cash held in bank accounts which are subject to loan agreement restrictions and are therefore not available for general use by other entities within the group. (b) Trade and other receivables 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Current Trade receivables 3,289 7,454 Prepayments 4,307 2,699 Other receivables (1) 9,010 8,928 Input tax credits 236 23 Total current trade and other receivables 16,842 19,104 Non-current Input tax credits 5,213 3,137 Provision for impairment of input tax credits (2) (485) (485) Prepayments 6,726 6,640 Security deposits 2,221 30 Total non-current trade and other receivables 13,675 9,322 (1) Other receivables primarily comprise an estimated amount in respect of the Section 45X Production Tax Credit for FY2 025. The amount recognised was based on management’s assessment of eligible sales and applicable credit rates. Subsequent to 30 June 2026, the company received $8.4 million in respect of this credit. (2) The Group regularly assesses the recoverability of input tax credits. In 2022, the Group conducted an assessment and determined that there was some doubt relating to the recoverability of input tax credits at Twigg Exploration and Mining Limitada prior to 2017. As a result, a provision of $0.5 million for impairment of input tax credits was recognised. The balance remains unchanged for the interim financial period.
Page 21
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 20 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 8. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED) (c) Trade and other payables 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Current Trade payables and accruals 23,134 22,153 Other payables 3,111 2,851 Total current trade and other payables 26,245 25,004 Non-current Trade payables and accruals 4,111 4,026 Total non-current trade and other payables 4,111 4,026 (d) Leases 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Current 256 187 Non-current 225 211 Total lease liabilities 481 398 (e) Borrowings 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Current borrowings Initial face value of current borrowings 167,934 168,470 Interest expense 24,489 18,355 Deferred transaction costs (15,188) (15,189) Repayment of principal and interest (9,894) (11,557) Total current borrowings 167,341 160,079
Page 22
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 21 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 8. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED) (e) Borrowings (Continued) 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Non-current borrowings Initial face value of non-current borrowings 101,550 101,550 Transaction costs capitalised to principal outstanding 2,031 2,031 Interest expense 38,267 30,572 Deferred transaction costs (851) (1,067) Exchange differences 3,163 (329) Total non-current borrowings 144,160 132,757 Convertible Notes Syrah Resources Limited issued A$150 .0 million (US$101.6 million) unsecured Convertible Notes to AustralianSuper in three equal series (Series 4, 5 and 6 Convertible Notes at A$50 .0 million principal per series) with maturity date on 12 May 2028 . The Series 4, 5 and 6 Convertible Notes were issued in full to AustralianSuper on 12 May 2023, 8 August 2023 and 23 October 2023, respectively. Prior to approval of the Shareholder Resolutions for the issuance of these Convertible Notes , interest accrued on the Series 4 Convertible Note principal outstanding at a rate of 14% per annum, compounded daily, capitalised quarterly in arrears and added to principal outstanding. Following approval of the Shareholder Resolutions on 28 July 2023, interest accrued on these Convertible Notes at a rate of 11% per annum, compounded daily, capitalised quarterly in arrears and added to principal outstanding for Series 4, 5 and 6. DOE loan Syrah Technologies LLC drew down on the DOE loan on 15 February 2023, 25 April 2023 and 3 October 2023 for a total amount of $98.0 million. The maturity date of the loan is 20 April 2032 and carries a weighted average fixed interest rate of 4.48% per annum. Effective from 30 July 2025, Syrah entered into a two-year forbearance agreement with the DOE, subject to compliance with agreed covenants and no early termination events . DFC loan Disbursements of US$68 million in aggregate to Twigg Exploration and Mining Limitada from a $150.0 million DFC loan w ere completed on 11 November 2024 , 18 August 2025 and 20 November 2025 . Th ese disbursements carry a weighted average fixed interest rate of 8. 95% per annum and have a maturity date in May 2037. In May 2026, Twigg Exploration and Mining Limitada did not make a scheduled interest payment of approximately US$8.1 million under the DFC loan agreement, resulting in an event of default. As a result , default interest applies to the overdue amounts in accordance with the terms of the DFC loan agreement. The default interest rate applicable to the overdue amount was 10.82% per annum at 30 June 2026. Debt Covenants As at 30 June 2026, the Group had outstanding defaults under both the DFC and the DOE loan agreements , but as an aspect of the Strategic Funding Proposals, was in discussions with both DOE and DFC to extend and ultimately waive those defaults. As at 30 June 202 6, the DOE loan and the DFC loan are classified as current liabilities as they would have contractually become payable as at balance sheet date if either lender enforced their rights due to Events of Default under the respective loan agreements (subject, in the case of DOE, to the terms of the forbearance agreement). The terms of the AustralianSuper Convertible Notes were assessed for any risk of cross -default in the current period, and it was concluded that their classification as a non -current liability remains appropriate as of 3 0 June 2026. Insurance Premium Funding Syrah Technologies LLC entered into a $1.9 million insurance premium funding facility with AFCO Direct to finance the annual insurance renewal for the Vidalia operations. This facility bears interest at a rate of 8.15% per annum and is scheduled to be fully repaid in November 2026.
Page 23
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 22 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (a) Inventories 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Stores and materials 23,932 22,210 Work in progress 272 362 Finished goods 7,137 6,466 Total inventories 31,341 29,038 Inventory write-down Write-down of product inventories to net realisable value totaled $ 4.5 million in the interim period (3 0 June 2025: $4.7 million) and was recognised as an expense in the Condensed Consolidated Statement of Comprehensive Income or Loss. (b) Mining assets 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Exploration and evaluation 1,305 1,304 Mine properties and development 109,090 110,914 Total mining assets 110,395 112,218 Movements in mining assets during the interim period are set out below: EXPLORATION AND EVALUATION MINE PROPERTIES AND DEVELOPMENT TOTAL US$’000 US$’000 US$’000 At 1 January 2026 Cost 1,304 190,022 191,326 Accumulated depreciation and impairment - (79,108) (79,108) Net book amount 1,304 110,914 112,218 6 months to 30 June 2026 Balance at beginning of period 1,304 110,914 112,218 Change in rehabilitation estimate - (210) (210) Amortisation expenses - (1,614) (1,614) Exchange differences 1 - 1 Balance at end of period 1,305 109,090 110,395
Page 24
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 23 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (CONTINUED) (b) Mining assets (Continued) Exploration and evaluation The balance of Exploration and Evaluation relates to the Vanadium project at Balama and continues to be carried forward in accordance with the exploration and evaluation accounting policy. The ultimate recoupment of exploration and evaluation expenditure i s dependent upon successful development and commercial exploitation or alternatively, the sale of the respective areas of interest at an amount at least equal to book value. Mine properties and development Mine Properties and Development mainly relate to the development , construction and pre -commercial production costs of the Balama Graphite Operation in Mozambique. (c) Property, Plant and Equipment LAND AND BUILDINGS PLANT AND EQUIPMENT COMPUTER EQUIPMENT ASSETS UNDER CONSTRUCTION RIGHT- OF-USE ASSETS TOTAL US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 At 1 January 2026 Cost 115,459 354,327 1,075 25,021 690 496,572 Accumulated depreciation and impairment (13,395) (84,699) (978) - (328) (99,400) Net book amount 102,064 269,628 97 25,021 362 397,172 For the half year ended 30 June 2026 Balance at beginning of period 102,064 269,628 97 25,021 362 397,172 Additions - - 7 2,388 182 2,577 Disposals (at net book value) - (319) - - - (319) Transfers from Assets Under Construction 259 - - (259) - - Depreciation charge (1,890) (6,838) (37) - (107) (8,872) Impairment losses (11,262) (23,933) - - - (35,195) Exchange differences - - - - 8 8 Balance at end of period 89,171 238,538 67 27,150 445 355,371 At 30 June 2026 Cost 115,718 353,926 1,083 27,150 886 498,763 Accumulated depreciation and impairment (26,547) (115,388) (1,016) - (441) (143,392) Net book amount 89,171 238,538 67 27,150 445 355,371 Assets under construction Assets Under Construction as at 30 June 2026 consists of the capitalisation of costs associated with the Vidalia Further Expansion of $7.6 million and capital costs for Balama of $ 19.6 million, which mainly relates to Tailing Storage Facility Cell 2.
Page 25
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 24 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (CONTINUED) (c) Property, Plant and Equipment (Continued) Significant estimates and judgements Impairment of non-financial assets At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. The Group conducts a review of the key drivers of the recoverable amount of cash generating units (“CGUs”) annually, which is used as a source of information to determine whether there is an indication of impairment. Other factors, such as changes in assumptions in future commodity prices, exchange rates, production rates and input costs, are also monitored to assess for indications of impairment. Where an indicator of impairment exists, a detailed estimate of the recoverable amount is de termined. An impairment loss is recognised for a CGU when the recoverable amount is less than the carrying amount. As at 30 June 2026, the market capitalisation of the Company was below the book value of net assets which is considered an indicator of a potential trigger for the impairment of assets. CGUs represent a grouping of assets at the lowest level for which there are separately identifiable cash flows that are largely independent of the cash inflows from other assets or groups of assets. The Group has identified Balama and Vidalia as CGUs for which impairment testing is undertaken. Balama Graphite Operation CGU (i) Methodology An impairment loss is recognised for a CGU when the recoverable amount is less than the carrying amount. The recoverable amount of Balama CGU was determined by assessing the fair value less costs of disposal (“FVLCOD”) of the underlying assets. FVLCOD is estimated based on the net present value of estimated future cash flows (the valuation is classified as level 3 in the fair value hierarchy due to unobservable inputs in the valuation). The Fair Value estimates are considered to be level 3 fair value measurements (as defined by accounting standard AASB 13) as they are derived from valuation techniques that include inputs that are not based on observable market data. Future cash flows and recoverable amount are based on a number of assumptions, including commodity and product price expectations, foreign exchange rates, discount rates, reserves and resources and expectations regarding future operating performance and capital requirements which are subject to risk and uncertainty. An adverse change in one or more of the assumptions used to estimate fair value could result in a reduction of the CGU’s fair value. The costs of disposal have been estimated by management. (ii) Key Assumptions The net present value of estimated future cash flows for Balama CGU as at 30 June 2026 is based on a number of assumptions. Those key assumptions that the recoverable amount is most sensitive to include: • Commodity prices – future weighted average product prices are estimated with reference to the Group’s assessment of short and long-term prices for each key flake and fines graphite product and also based on an estimate of the flake to fines size distribution ratio that impro ves to a long -term assumption over a period of 6 years. The short-term prices take account of existing sales contracts and increases to the Group’s assessment of long -term price over a period of six years in line with industry supply and demand forecasts. The long -term prices for each graphite product are derived from a combination of management assessments of the marginal costs of current producers and of the incentive price for future potential producers which management estimates to be consistent with the assumptions that a market participant would be expected to use on a FVLCOD basis based on available published analyst information. Short and long-term prices were updated for 30 June 2026 reporting purposes and are reviewed at least annually.
Page 26
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 25 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (CONTINUED) (c) Property, Plant and Equipment (Continued) • Foreign exchange rates – future exchange rates for the Mozambique Metical (MZN) compared to the US dollar are forecast based on external information and are kept constant for modelling purposes. • Reserves and resources – life of mine production is based on Ore Reserves and a portion of the Mineral Resources (totaling approximately 9% of the total mineral resources excluding ore reserves) as compiled by a Competent Person in accordance with the Aust ralasian code for Reporting of Exploration Results, Mineral Resources and Ore Reserves of December 2012 (the JORC 2012 code). The extraction, processing and sale of Mineral Resources that do not qualify for inclusion as Ore Reserves is only included when there is a high degree of confidence that they are economically recoverable. The additional evaluation required to achieve Ore Reserves status for Mineral Resources has not yet been performed as this would involve incurring evaluation costs earlier than is required for efficient planning and operation of the mine. There are numerous uncertainties inherent in estimating Ore Reserves and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in forecast prices of commodities, exchange rat es, production costs or recovery rates may change the economic status of Ore Reserves and may, ultimately, result in the Reserves being restated. Such changes in Reserves could impact on depreciation and amortisation rates, asset carrying values and provisions for decommissioning and restoration. • Operating performance (production, operating costs and capital costs) – life of mine production, operating cost and capital cost assumptions are based on the Group’s most recent life of mine plan with consideration of near-term supply and demand market considerations in relation to progressive ramp-up to name -plate production. Operating costs are based on the existing fixed and variable cost base. As production ramp -up continues, the production capability of the plant at design capacity is informed by the as built design, review of physical parameters by independent technical experts and production improvement plans and assessments by the operations team at Balama. • Discount rate - estimated future cash flows have been discounted to their present value using a capital asset pricing model to estimate a post -tax real discount rate that reflects a current market assessment of the time value of money and risks specific to the CGU. Discount rate of 12.9% (real post-tax) has been applied to 30 June 2026 impairment testing.
Page 27
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 26 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (CONTINUED) (c) Property, Plant and Equipment (Continued) (iii) Future changes in assumptions It is estimated that reasonably possible changes in the following key assumptions within the next 12 months would have the following approximate impact on the recoverable amount of Balama CGU as at 30 June 2026 of $373 million: US$10 per tonne decrease in graphite price (CIF Nacala) $15 million 1 MZN increase in the USD:MZN exchange rate $2 million 5% increase in estimated operating costs $24 million 10% increase in the discount rate $56 million A reasonably possible change in circumstances may affect these key assumptions, the fair value and potentially result in a material adjustment to the recoverable value of Balama. Action is usually taken to respond to adverse changes in assumptions to mitigate the impact of any such change. If the carrying amount is assessed to be impaired as a result of any such changes, the impairment charge is recognised in the profit or loss in the period in which the changes arise. Vidalia CGU (i) Methodology The recoverable amount of Vidalia CGU was determined by assessing the FVLCOD of the underlying assets. FVLCOD is estimated based on the net present value of estimated future cash flows (the valuation is classified as level 3 in the fair value hierarchy due to unobservable inputs in the valuation). The Fair Value estimates are considered to be level 3 fair value measurements (as defined by accounting standard AASB 13) as they are derived from valuation techniques that include inputs that are not based on observable market data. Future cash flows and recoverable amount are based on a number of assumptions, including Active Anode Material price expectations, discount rates, and expectations regarding future operating performance and capital requirements which are subject to risk and uncertainty, including future development of the Vid alia Further Expansion Project. An adverse change in one or more of the assumptions used to estimate fair value could result in a reduction of the CGU’s fair value. (ii) Key Assumptions The net present value of estimated future cash flows for Vidalia CGU as at 30 June 2026 is based on a number of assumptions. Those key assumptions that the recoverable amount is most sensitive to include: • AAM pricing – future prices are estimated with reference to the Group’s assessment of short and long-term prices. Short-term prices take account of existing sales contracts and increases towards the Group’s assessment of long -term price in line with industry supply and demand forecasts for the lithium-ion battery industry. The long-term price is derived from a combination of management assessments of sales prices of current producers and the incentive price for future potential producers which management estimates to be consistent with the assumptions that a market participant would be expected to use on a FVLCOD basis based on available published analyst information. Short and long-term prices were updated for 30 June 2026 reporting purposes and are reviewed at least annually . The Group’s l ong-term price forecast at 30 June 2026 was revised downward by 12% as compared to 31 December 2025 , primarily reflecting the US International Trade Commission's final negative determination in the AD/CVD investigation in March 2026 and ongoing US policy uncertainty, which reduced the assumed level and durability of trade measures on Chinese AAM imports into the United States.
Page 28
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 27 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (CONTINUED) (c) Property, Plant and Equipment (Continued) • Operating performance (production, operating costs and capital costs) – production, operating cost and capital cost assumptions are based on Phase 2 installed plant performance design parameters, with consideration of near-term customer product qualification schedules to progress ramp-up to name- plate production. Operating costs are based on the existing fixed and variable cost base. As production ramp-up continues, the production capability of the plant at design capacity is informed by the as built design. The forecast operating cost profile has not changed substantially over the period and is not considered a key driver of the recoverable amount. • Discount rate - estimated future cash flows have been discounted to their present value using a capital asset pricing model to estimate a post -tax nominal discount rate that reflects a current market assessment of the time value of money and risks specific to the CGU. A nominal post-tax discount rate of 10.3% (31 December 2025: 10.2%) has been applied to 30 June 2026 impairment testing. • Vidalia Further Expansion Project investment - Syrah is progressing transition engineering, permitting and other long lead procurement activities for the Vidalia Further Expansion project ahead of a FID to be considered. The Company is also progressing offtake agreements and funding options in preparation of a FID. Commercial AAM sales from the existing 11.25ktpa AAM Vidalia Phase 2 facility are vital for the Company to finalise project financing and will determine FID timing for the Vidalia Further Expansion Project. Consideration has been given to the project, financing, and offtake risk associated with the Vidalia Further Expansion Project, and an appropriate risk weighting has been applied to the cash flows associated with the Vidalia Further Expansion Project. The recoverable amount of Vidalia would reduce further with additional delay in the timing of the Vidalia Further Expansion Project or if this project does not proceed, which is dependent to a large degree on policy initiatives to counter prevailing distortive market activity. (iii) Impact The carrying value of Vidalia CGU before impairment charges was $303m at 30 June 2026. After determining the fair value of Vidalia CGU using the discounted cash flow (“DCF”) analysis, Syrah has determined the recoverable amount of Vidalia was less than the carrying value and a pre-tax impairment of $35 million has been recognised at 30 June 2026. (iv) Future changes in assumptions It is estimated that reasonably possible changes in the following key assumptions within the next 12 months would have the following approximate impact on the recoverable amount of Vidalia CGU as at 30 June 2026 of $268 million: 5% decrease in long-term uncontracted AAM price $59 million 5% increase in estimated operating costs $23 million 10% increase in the discount rate $47 million 6-month delay in Vidalia Further Expansion FID $8 million
Page 29
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 28 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (CONTINUED) (c) Property, Plant and Equipment (Continued) A reasonably possible change in circumstances may affect these key assumptions, the fair value and potentially result in a further adjustment to the impairment of Vidalia. Action is usually taken to respond to adverse changes in assumptions to mitigate the impact of any such change. If the carrying amount is assessed to be impaired as a result of any such changes, the impairment charge is recognised in the profit or loss in the period in which the changes arise. Estimation of useful lives of assets The Group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of change in Ore Reserves and Mineral Resources, technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non- strategic assets are abandoned or sold and written off or written down. Determination of Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves are based on information compiled by a Competent Person as defined in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves of December 2012 (the JORC 2012 code). There are numerous uncertainties inherent in estimating ore reserves and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of ore reserves and may, ultimately, result in the reserves being restated. Such changes in reserves could impact on depreciation and amortisation rates, asset carrying values and provisions for decommissioning and restoration. Impairment of exploration and evaluation expenditure The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to develop and exploit an area of interest or, if not, whether it recovers the related exploration and evaluation asset through sale. Factors that could impact the future recoverability include; the level of reserves and resources, future technological changes which could impact the cost of mining, future legal changes and changes to commodity prices and foreign exchange rates. To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits and net assets will be reduced in the period this determination is made. In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent it is determined in the future that this capitalised expenditure should be written off, profits and net assets will be reduced in the period in which this determination is made.
Page 30
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 29 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (CONTINUED) (d) Deferred tax balances 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 The balance comprises temporary differences attributable to: Deferred tax assets Taxation losses (1) 40,182 47,437 Mining assets 19,364 19,799 Total deferred tax assets 59,546 67,236 Deferred tax liabilities Non-financial assets (40,182) (47,437) Total deferred tax liabilities (40,182) (47,437) (1) Relates to tax losses held by Syrah Technologies LLC up to the balance of Deferred Tax Liabilities held. Losses can be carried forward for 20 years and are considered recoverable based on future forecasted profitability of Vidalia. Movements in deferred tax balances BALANCE AT 1 JANUARY 2026 (CHARGED)/ CREDITED TO PROFIT OR LOSS BALANCE AT 30 JUNE 2026 US$’000 US$’000 US$’000 Deferred tax assets Taxation losses 47,437 (7,255) 40,182 Mining assets 19,799 (435) 19,364 Total deferred tax assets 67,236 (7,690) 59,546 Deferred tax liabilities Non-financial assets (47,437) 7,255 (40,182) Total deferred tax liabilities (47,437) 7,255 (40,182)
Page 31
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 30 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 9. NON-FINANCIAL ASSETS AND NON-FINANCIAL LIABILITIES (CONTINUED) (e) Provisions 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Current Employee benefits 1,719 1,392 Community development provision 1,576 1,007 Total current provisions 3,295 2,399 Non-current Employee benefits 116 107 Decommissioning and restoration provision 5,689 5,826 Community development provision 6,849 7,293 Total non-current provisions 12,654 13,226 Movements in decommissioning and restoration provision 6 MONTHS TO 30 JUNE 2026 US$’000 Balance at beginning of period 5,826 Movements: - Capitalised to Mine Properties and Development (note 9b) (210) - Unwind of discount 73 Balance at end of period 5,689 Movements in community development provision 6 MONTHS TO 30 JUNE 2026 US$’000 Balance at beginning of period 8,300 Movements: - Unwind of discount 196 Amounts used during the half-year (71) Balance at end of period 8,425
Page 32
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 31 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 10. EQUITY (a) Issued Capital 30 JUNE 2026 31 DECEMBER 2025 30 JUNE 2026 31 DECEMBER 2025 SHARES SHARES US$’000 US$’000 Issued and fully paid ordinary shares 2,321,927,497 1,311,538,739 1,058,735 985,853 Total issued and fully paid ordinary shares 2,321,927,497 1,311,538,739 1,058,735 985,853 Movements in ordinary share capital during the interim period are set out below: NUMBER OF SHARES WEIGHTED AVERAGE ISSUED PRICE (A$) US$’000 6 months to 30 June 2026 Balance at beginning of period 1,311,538,739 985,853 Issue of new shares: - Entitlement offer 993,596,651 AUD 0.105 73,465 - Issue of new shares to the Employee Share Trust 16,792,107 -(1) - Transfers from share-based payment reserve (2) - - 1,796 Capital raising costs - - (2,379) Balance at end of period 2,321,927,497 1,058,735 (1) The cost associated with issuance of these shares is included in the transfers from the share-based payments reserve line item. (2) Represents transfers from the share-based payment reserves on issuance of shares under the Group Short Term Incentive (STI) and Long Term Incentive (LTI) plans. (b) Other Equities 30 JUNE 2026 31 DECEMBER 2025 30 JUNE 2026 31 DECEMBER 2025 SHARES SHARES US$’000 US$’000 Treasury shares - - - - Total other equity - - - - Treasury shares are shares in Syrah Resources Limited that are held by the Syrah Resources Employee Share Trust for the purpose of issuing shares under the Syrah employee share scheme and the executive short-term incentive scheme. Shares issued to employees are recognised on a first-in-first-out basis. Movements in treasury shares during the interim period are set out below: NUMBER OF SHARES US$’000 6 months to 30 June 2026 Opening balance 1 January 2026 - - - Issue of new shares to the Employee Share Trust (16,792,107) (1,796) - Issue of treasury shares to employees 16,792,107 1,796 Balance at end of period - -
Page 33
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 32 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 10. EQUITY (CONTINUED) (c) Reserves 30 JUNE 2026 31 DECEMBER 2025 US$’000 US$’000 Foreign currency translation reserve (28,090) (24,629) Share-based payments reserve 7,299 8,498 Warrants reserve 3,481 3,481 Total reserves (17,310) (12,650) (i) Movements in reserves Movements in each class of reserve are set out below: FOREIGN CURRENCY RESERVE SHARE-BASED PAYMENTS RESERVE WARRANTS RESERVE TOTAL US$’000 US$’000 US$’000 US$’000 6 months to 30 June 2026 Balance at beginning of period (24,629) 8,498 3,481 (12,650) Foreign currency translation (3,461) - - (3,461) Share-based payments - 1,374 - 1,374 Issuance of treasury shares - (1,796) - (1,796) Transfer of expired performance rights - (777) - (777) Balance at end of period (28,090) 7,299 3,481 (17,310) (ii) Nature and purpose of reserves Foreign currency reserve Exchange differences arising on translation of foreign controlled entities are recognised in other comprehensive income and accumulated in a separate reserve within equity. The cumulative amount is reclassified to the profit and loss when the net investment is disposed of. The Group assesses the functional currency of each entity in the consolidated group when there are changes in circumstances that could result in a change in the currency that predominantly influences the economic results of each respective entity. Share-based payments reserve The share-based payments reserve is used to recognise the fair value of equity benefits and equity- settled contractual obligations issued by the Company. Warrants reserve The warrants reserve represents the fair value of equity -classified warrants contractually committed to be issued to DFC under Waiver No. 9 to the DFC loan facility. The warrants are recognised in equity upon execution of the Waiver No. 9 agreement and are not remeasured subsequently. (d) Non-controlling Interest Sociedade Gestora de Concessões – Sociedade Unipessoal, S.A. (“SOGEC”) holds a 5% quota interest in Twigg Exploration and Mining Limitada, in accordance with Twigg Exploration and Mining Limitada ’s obligations under the Mining Agreement with the Mozambique Government.
Page 34
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 33 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 11. COMMITMENTS, CONTINGENCIES AND GUARANTEES (a) Capital expenditure commitments Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows: 30 JUNE 2026 US$’000 31 DECEMBER 2025 US$’000 Property, plant and equipment 24,313 23,057 Total capital commitments 24,313 23,057 The above capital expenditure commitments are in relation to the continued development of Balama in Mozambique (mainly relates to TSF Cell 2 and installation of a 11.25 MWp solar photovoltaic) and investment in the Vidalia Further Expansion Project. (b) Contingencies The Group did not have any contingent assets or liabilities at the end of the current and previous financial periods. (c) Guarantees A parent guarantee is provided by Syrah Resources Limited to DOE to support the obligations of Syrah Technologies LLC under the DOE loan. A parent guarantee is provided by Syrah Resources Limited to DFC to support the obligations of Twigg Exploration and Mining Limitada under the DFC loan. Twigg Exploration and Mining Lda has provided a bank guarantee of MZN 139.9 million (approximately US$2.19 million) to the Pemba Large Taxpayers Unit (UGC -Pemba), Mozambique Tax Authority, in connection with a disputed tax assessment under appeal. NOTE 12. EVENTS OCCURRING AFTER THE REPORTING PERIOD In July 2026, Syrah Technologies received US$8.4 million under the Section 45X Advanced Manufacturing Production Tax Credit program, a US federal initiative that provides production -based incentives to manufacturers of eligible critical minerals and clean energy components. No other events have occurred subsequent to 30 June 2026 that have significantly affected, or may significantly affect the Group’s operations, the results of those operations, or the state of affairs in future financial periods.
Page 35
SYRAH RESOURCES LIMITED ABN 77 125 242 284 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2026 34 DIRECTORS’ DECLARATION In the Directors’ opinion: (a) the interim financial statements and notes set out on pages 6 to 33 are in accordance with the Corporations Act 2001, including: (i) complying with Accounting Standard AASB 134 Interim Financial Reporting , the Corporations Regulations 2001 and other mandatory professional reporting requirements, and (ii) giving true and fair view of the consolidated entity’s financial position as at 30 June 2026 and of its performance for the half-year financial period ended on that date, and (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. This declaration is made in accordance with a resolution of the Directors. Shaun Verner Managing Director Melbourne, Australia 9 September 2026
Page 36
PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331 MELBOURNE VIC 3001 T: +61 3 8603 1000, F: +61 3 8603 1999, www.pwc.com.au Li ability limited by a scheme approved under Professional Standards Legislation. pwc.com.au Independent auditor’s review report to the members of Syrah Resources Limited Report on the half-year financial report Conclusion We have reviewed the half-year financial report of Syrah Resources Limited (the Company) and the entities it controlled during the half-year (together the Group), which comprises the condensed consolidated balance sheet as at 30 June 2026, the condensed consolidated statement of comprehensive income or loss, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors’ declaration. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of Syrah Resources Limited does not comply with the Corporations Act 2001 including: 1. giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the half-year ended on that date; and 2. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Basis for conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor’s responsibilities for the review of the half-year financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. 35
Page 37
36 Material uncertainty relating to going concern We draw attention to Note 1a) in the half-year financial report, which describes the directors’ assessment of the ability of the Group to continue as a going concern. The events or conditions as stated in Note 1a) indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter. Responsibilities of the directors for the half-year financial report The directors of the Company are responsible for the preparation of the half-year 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 half-year financial report that is free from material misstatement whether due to fraud or error. Auditor’s responsibilities for the review of the half-year financial report Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Pr icewaterhouseCoopers Marc Upcroft Melbourne Partner 9 September 2026