Financial statements
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Unaudited Interim Consolidated Financial Statements ACLARA RESOURCES INC . As of June 30 2026 and 2025
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Unaudited Interim Consolidated Financial Statements 1 Income Statement Three months Six months As at 30 As at 30 As at 30 As at 30 June 2026 June 2025 June 2026 June 2025 Notes US$000 US$000 US$000 US$000 Continuing operations Administration expenses 4 (2,391) (2,259) (4,785) (3,963) Exploration expenses 5 (307) (789) (559) (980) (Loss) from continuing operations before net finance income/(cost) and income tax (2,698) (3,048) (5,344) (4,943) Share of loss of a joint venture 7 (69) (132) (220) (190) Financial income 6 319 283 423 475 Financial costs 6 (142) (33) (263) (90) Foreign exchange differences (59) 92 (131) 111 (Loss) for the period from continuing operations before income tax (2,649) (2,838) (5,535) (4,637) Income tax expense - - - - (Loss) for the period from continuing operations (2,649) (2,838) (5,535) (4,637) Attributable to: Equity shareholders of the Parent (2,627) (2,797) (5,501) (4,559) Non-controlling interests (22) (41) (34) (78) (2,649) (2,838) (5,535) (4,637) Basic loss per share US$ 8 (0.01) (0.01) (0.02) (0.02) Diluted loss per share US$ 8 (0.01) (0.01) (0.02) (0.02) Statement of Comprehensive Income Three months Six months As at 30 As at 30 As at 30 As at 30 June 2026 June 2025 June 2026 June 2025 US$000 US$000 US$000 US$000 (Loss) for the period (2,649) (2,838) (5,535) (4,637) Other comprehensive income that might be reclassified to profit or loss in subsequent periods: Exchange differences on translating foreign operations and share of other comprehensive income/(loss) 512 3,819 (2,263) 9,406 Other comprehensive (loss) profit for the period, net of tax 512 3,819 (2,263) 9,406 Total comprehensive (loss) for the period (2,137) 981 (7,798) 4,769 Total comprehensive (loss) attributable to Equity shareholders of the Parent (2,115) 1,022 (7,764) 4,847 Non-controlling interests (22) (41) (34) (78) Total comprehensive (loss) for the period (2,137) 981 (7,798) 4,769 The attached notes are an integral part of these Unaudited Interim Consolidated Financial Statements.
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Unaudited Interim Consolidated Financial Statements 2 Statement of Financial Position As at 30 As at 31 June 2026 December 2025 Notes US$000 US$000 ASSETS Current assets Cash and cash equivalents 12 42,595 14,011 Trade debtors and other accounts receivable, net, current 11 5,390 3,960 Accounts receivable from related entities, current 17 - 6,937 47,985 24,908 Non-current assets Trade debtors and other accounts receivable, non-current 11 31 32 Accounts receivable from related entities, non-current 17 304 - Property, plant and equipment, net 9 13,233 13,148 Exploration and evaluation assets 10 165,991 146,901 179,559 160,081 Total assets 227,544 184,989 EQUITY AND LIABILITIES Current Liabilities Trade accounts payable and other accounts payable, current 14 5,779 7,131 Accounts payable to related entities, current 17 - 2 Other provisions, current 15 37 2,438 5,816 9,571 Non-current liabilities Investment in a joint venture 7 766 546 Deferred government assistance 13 2,555 825 3,321 1,371 Total liabilities 9,137 10,942 Capital and reserves attributable to shareholders of the Parent Equity share capital 16 244,410 190,296 Retained deficit (44,568) (39,067) Other reserves (369) 3,451 199,473 154,680 Non-controlling interests 18,934 19,367 Total equity 218,407 174,047 Total equity and liabilities 227,544 184,989 The attached notes are an integral part of these Unaudited Interim Consolidated Financial Statements.
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Unaudited Interim Consolidated Financial Statements 3 Statement of Cash Flow As at 30 As at 30 June 2026 June 2025 Notes US$000 US$000 Cash flows from operating activities Cash from / (used in) operations 18 (10,738) 3,068 Interests received 423 475 Net cash from / (used in) operating activities (10,315) 3,544 Cash flows from investing activities Purchase of property, plant and equipment 9 (717) (130) Purchase of exploration and evaluation assets 10 (18,885) (15,621) Net cash from / (used in) investing activities (19,602) (15,750) Cash flows from financing activities Capital contributions 16 50,000 25,000 Capital contribution from minority shareholders 6,937 12,480 Share issuance costs 16 (166) (836) Funds received from the U.S. International Development Finance Corporation 1,730 - Cash flows from / (used in) financing activities 58,501 36,644 Net increase / (decrease) in cash and cash equivalents during the period 28,584 24,438 Cash and cash equivalents at beginning of the period 14,011 15,375 Cash and cash equivalents at end of the period 12 42,595 39,813 The attached notes are an integral part of these Unaudited Interim Consolidated Financial Statements.
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Unaudited Interim Consolidated Financial Statements 4 Statement of Changes in Equity Equity share capital Cumulative translation adjustment Other reserves Total other reserves Retained deficit Capital and reserves attributable to shareholders of the Parent Non- controlling interests Total equity Notes US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000 Balance at 1 January 2026 16 190,296 (17,629) 21,080 3,451 (39,067) 154,680 19,367 174,047 Other comprehensive expense - (2,263) - (2,263) - (2,263) - (2,263) (Loss) of the period - - - - (5,501) (5,501) (34) (5,535) Total comprehensive (loss) for the period - (2,263) - (2,263) (5,501) (7,764) (34) (7,798) Share-based payment expense - - 2,290 2,290 - 2,290 - 2,290 Share-based payments exercised / settled 4,280 - (4,280) (4,280) - - - - Total share-based payments 4,280 - (1,990) (1,990) - 2,290 - 2,290 Capital contribution – shares issued 50,000 - - - - 50,000 - 50,000 Share issuance costs (166) - - - - (166) - (166) Capital contribution from minority shareholders paid - - - - - - 6,937 6,937 Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control - - 433 433 - 433 (7,336) (6,903) Balance at 30 June 2026 16 244,410 (19,892) 19,523 (369) (44,568) 199,473 18,934 218,407 Balance at 1 January 2025 16 165,324 (29,011) 21,950 (7,061) (30,618) 127,645 18,603 146,248 Other comprehensive expense - 9,406 - 9,406 - 9,406 - 9,406 (Loss) of the period - - - - (4,559) (4,559) (78) (4,637) Total comprehensive (loss) for the period - 9,406 - 9,406 (4,559) 4,847 (78) 4,769 Share-based payment expense - - (701) (701) - (701) - (701) Share-based payments exercised / settled 808 - - - - 808 - 808 Total share-based payments 808 - (701) (701) - 107 - 107 Capital contribution from minority shareholders paid 12,480 12,480 Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control - - (1,031) (1,031) - (1,031) (11,371) (12,402) Capital contribution – shares issued 25,000 - - - - 25,000 - 25,000 Share issuance costs (836) - - - - (836) - (836) Balance at 30 June 2025 16 190,296 (19,605) 20,218 613 (35,177) 155,732 19,633 175,366 The attached notes are an integral part of these Unaudited Interim Consolidated Financial Statements.
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Unaudited Interim Consolidated Financial Statements 5 Index 1 Corporate information ............................................................................................................................................................................................................. 6 2 Basis of preparation and changes to the groups accounting policies ................................................................................................................................... 8 (a) Basis of preparation ................................................................................................................................................................................................... 8 (c) Currency translation ................................................................................................................................................................................................. 11 (d) Exploration and evaluation assets .......................................................................................................................................................................... 11 (e) Determination of ore reserves and resources......................................................................................................................................................... 11 (f) Property, plant and equipment ................................................................................................................................................................................ 11 (g) Impairment of non-financial assets ......................................................................................................................................................................... 12 (h) Trade and other receivables .................................................................................................................................................................................... 13 (i) Income Tax .............................................................................................................................................................................................................. 13 (j) Financial instruments ............................................................................................................................................................................................... 14 (k) Cash and cash equivalents ..................................................................................................................................................................................... 16 3 Subsidiary, joint venture and branch companies ................................................................................................................................................................. 17 4 Administration expenses....................................................................................................................................................................................................... 18 (a) Administration expenses .................................................................................................................................................................................................... 18 5 Exploration expenses and other (expenses) income .......................................................................................................................................................... 18 6 Financial income and costs .................................................................................................................................................................................................. 18 7 Share of loss of a joint venture ............................................................................................................................................................................................. 19 8 Basic and diluted earnings per share ................................................................................................................................................................................... 19 9 Property, plant and equipment ............................................................................................................................................................................................. 20 10 Exploration and evaluation assets ..................................................................................................................................................................................... 21 11 Trade and other receivables ............................................................................................................................................................................................... 22 12 Cash and cash equivalents ................................................................................................................................................................................................ 22 13 Deferred government assistance ....................................................................................................................................................................................... 22 14 Trade and other accounts payables ................................................................................................................................................................................... 23 15 Other provisions .................................................................................................................................................................................................................. 23 16 Equity ................................................................................................................................................................................................................................... 23 (a) Share capital ............................................................................................................................................................................................................ 23 (b) Other reserves ......................................................................................................................................................................................................... 24 17 Related-party balances and transactions........................................................................................................................................................................... 25 (a) Related-party accounts receivable and payable..................................................................................................................................................... 25 (b) Compensation of key management personnel of the Company ........................................................................................................................... 25 18 Notes to the statement of cash flows ................................................................................................................................................................................. 26 19 Contingencies ..................................................................................................................................................................................................................... 26 a) Taxation: ................................................................................................................................................................................................................... 26 b) Guarantees: ............................................................................................................................................................................................................. 26 c) Litigations: ................................................................................................................................................................................................................ 26 20 Financial risk management ................................................................................................................................................................................................ 26 (a) Foreign currency risk ...................................................................................................................................................................................................... 26 (b) Credit risk ........................................................................................................................................................................................................................ 26 (c) Liquidity risk ..................................................................................................................................................................................................................... 26 (d) Capital risk management ................................................................................................................................................................................................ 27 (e) Environmental risk .......................................................................................................................................................................................................... 27 (f) New mining royalty risk .................................................................................................................................................................................................... 27 21 Subsequent events ............................................................................................................................................................................................................. 27
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Unaudited Interim Consolidated Financial Statements 6 Notes to the Unaudited Interim Consolidated Financial Statements 1 Corporate information Aclara Resources Inc., formerly 1303714 B,C, Ltd, (hereinafter the ‘Company’) is a limited Company incorporated under the Business Corporations Act (British Columbia) on May 5, 2021. The Company’s registered office is located at Suite 1700, Park Place, 666 Burrard Street, Vancouver BC V6C 2X8, Canada. On August 5, 2021, the Company established 1303714 B.C. LTD., Agencia en Chile (hereinafter the ‘Agencia’), a foreign legal entity branch in Chile. On October 4, 2021, the Company changed its name to “Aclara Resources Inc.”. On October 15, 2021, Agencia changed its name to “Aclara Resources Inc., Agencia en Chile”. Investment in subsidiaries and joint venture - On October 2, 2019, Minera Hochschild Chile S.C.M., a Chilean subsidiary of the Hochschild Mining Group, acquired an 100% interest in Ree Uno SpA, a Chilean company incorporated on October 28, 2011. On November 27, 2020, Minera Hochschild Chile S.C.M. sold its 100% interest in Ree Uno SpA to Hochschild Mining Holdings Ltd, a UK-based subsidiary of the Hochschild Group. On October 15, 2021, Hochschild Mining Holdings Ltd contributed 100% of its ownership interest in Ree Uno SpA’s shares to the Company in exchange for a total of 88,262,106 common shares in the capital of the Company as part of Hochschild Mining Group’s and the Company’s reorganization strategy. Immediately thereafter, the Company allocated all of its shares in the capital of Ree Uno SpA to its Chilean branch. Ree Uno SpA’s registered office is located in Chile, and its principal business is the development of the Penco Module, which is also located in Chile. As of April 16, 2024, CAP S.A., a company listed on the Chilean Stock Exchange, subscribed to shares representing 20% of the capital of REE Uno SpA, a subsidiary of the Company, for a total value of US$ 29.125 million payable in three installments: (i) US$ 9.708 million, paid on April 17, 2024, (ii) US$ 12.480 paid on January 15, 2025, and (iii) US$ 6.937 million payable on the last business day of January 2026. This subscription allows CAP S.A. to become a shareholder of REE Uno SpA and acquire an option to purchase an additional 20%, reaching 40% of the company's capital, for an additional US$ 50,000,000, provided that the Company's project receives favorab le environmental evaluation. CAP S.A. can appoint 2 of the 5 members of the committee managing the Company, designate certain executives, and veto specific actions of the Company, including substantial budget modifications, asset disposals, and changes to the company's business line. As of the date of the Company’s Unaudited Interim Consolidated Financial Statements, CAP S.A. has acquired a 12.92% equity interest in the Company through a capital contribution. The option to acquire an additional interest in REE Uno SpA, or up to an additional 20% interest in the Company, has not yet been granted. - On February 25, 2022, Aclara Resources Peru SAC was acquired. Aclara Resources Peru SAC’s registered office is located in Peru. Aclara Resources Peru SAC’s principal business is to provide management and administration services. On November 28, 2024 the Agencia acquired 0.1%, while the Company retained the remaining 99.9%. The controlling party of Aclara Resources Peru SAC is the Company. - Ree Uno SpA is the direct owner of 100% of the issued and outstanding share capital of Prospecciones Greenfield SpA, which was incorporated on October 4, 2021. Prospecciones Greenfield SpA’s registered office is located in Chile. Prospecciones Greenfield SpA’s principal business is managing exploration concessions for Ree Uno SpA for the potential development of new modules in Chile. The immediate controlling party of Prospecciones Greenfield SpA is Ree Uno SpA. - On September 16, 2022, Aclara Resources Mineracao Ltda. was incorporated with a capital contribution from Ree Uno SpA, which acquired 100% of the issued and outstanding share capital. On February 16, 2023, Aclara Resources Mineracao Ltda. increased the capital and the Company acquired an 89,63% interest in Aclara Resources Mineracao Ltda., therefore, Ree Uno SpA was the owner of 10,37% of the issued and outstanding share capital of Aclara Resources Mineracao Ltda. On May 06, 2024, the capital of Aclara Resources Mineracao Ltda. was reduced for the total of US$ 200,000 which representing the investment made by Ree Uno SpA., resulting in the Company being the owner of 100% of the interest in Aclara Resources Mineracao Ltda. Aclara Resources Mineracao Ltda.’s registered office is located in Brazil. Aclara Resources Mineracao Ltda.’s principal business is mining research, geological studies, exploration and extraction of mining products. The controlling party of Aclara Resources Mineracao Ltda. is the Company. - Ree Uno SpA is the direct owner of 100% of the issued and outstanding share capital of Fundaci on de Benefic iencia P ublica, Medioambiental, Cientifica, Cultural y Social Queule (hereinafter the ‘Fundacion Queule’), which was incorporated on September 27, 2022. Fundacion Queule’s registered office is located in Chile, Fundacion Queule’s principal business is carry out, encourage and support initiatives, programs, projects and activities for environmental conservation, heritage rescue and social, cultural and scientific development. The immediate controlling party of Fundacion Queule is Ree Uno SpA. - On March 11, 2024, Ree Alloys SpA was incorporated with a capital contribution from the Company, which acquired 100% of the issued and outstanding share capital. Ree Alloys SpA’s registered office is located in Chile. Ree Alloys SpA’s principal business is the research and develop of technologies applicable to the production and transformation of rare earths, from the extraction and refining of minerals to the manufacture of final products. On April 16, 2024, CAP S.A. acquired a 50% interest in the joint venture Ree Alloys SpA for US$ 3,000,000 as part of the strategic investment agreement to develop metals and alloys for the rare earths permanent magnet industry. On May 2, 2025, Ree Alloys SpA changed its name to “Aclara Metals SpA”.
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Unaudited Interim Consolidated Financial Statements 7 - On March 22, 2024, Aclara Technologies Inc. was incorporated with a capital contribution from the Company, which acquired 100% of the issued and outstanding share capital. Aclara Technologies Inc.’s registered office is located in USA. Aclara Technologies Inc.’s principal business is developing technologies and production flowsheet capable of processing mixed rare earth carbonates. The controlling party of Aclara Technologies Inc. is the Company. - As of February 7, 2025, Polaris Creek LLC was incorporated in the United States as a wholly owned subsidiary of Aclara Technologies Inc., which is itself wholly owned by the Company. - On May 12, 2025, Aclara Metals Inc. was incorporated with a capital contribution from the Company, which acquired a 50% interest in the joint venture for US$ 500. In parallel CAP S.A. acquired a 50% interest for US$ 500 as part of the strategic investment agreement to develop metals and alloys for the rare earths permanent magnet industry. Aclara Metals Inc.’s registered office is located in the USA, and its principal business is the research and develop of technologies applicable to the production and transformation of rare earths, from the extraction and refining of minerals to the manufacture of final products. Business segment The Company is involved in the exploration of rare-earth elements, operating two business segments: (a) Chile ("Penco Module") and (b) Brazil ("Carina Project"). The operations of the Penco module are conducted through the Company's partially-owned subsidiary, Ree Uno SpA. In addition, the operations of the Carina Project are conducted through the Company's wholly-owned subsidiary, Aclara Resources Mineracao Ltda. With approximately 85,585 hectares of mining concessions in the Maule, Ñuble, Biobío, and Araucanía regions of Chile, and 72,227 hectares in the Minas Gerais, Paraná, and Goiás states of Brazil, the Company is focused on developing the Penco Module and Carina Project, which contain ionic clays rich in Rare Earth Elements. The Penco Module covers a surface area of approximately 600 ha. In comparison, the Carina Project covers a surface area of approximately 9,900 ha. The Company’s future development stages will include optimizing the metallurgical process and expanding production capabilities. Additionally, the Company, through its U.S.-based subsidiary, Aclara Technologies, is advancing the U.S. Separation Project (“Project Dynamo”), which involves developing a rare earth separation plant to refine and separate Super Pure Rare Earth Carbonate (“SPREC”) expected to be produced from its mining projects into individual rare earth oxides (REOs). The Company, through its joint venture with CAP S.A., is advancing the Metals and Alloys Project to develop alloy-making capabilities to convert refined rare earth oxides into alloys for permanent magnets, positioning itself to establish a vertically integrated supply chain that meets the demand for geopolitically independent, traceable, cost-competitive, and environmentally sustainable permanent magnets. At the Penco Module, the Company is progressing through a two-stage Environmental Impact Assessment strategy (EIA 1 and EIA 2). EIA 1, submitted in June 2024, addresses the initial phase of the project and incorporates specific design improvements to mitigate impacts on native forests, a key concern raised by the Environmental Assessment Service (SEA) in response to the previous EIA filed in 2023. Following the issuance of a third ICSARA in November 2025 and the submission of the corresponding Exceptional Addendum on March 31, 2026, the favorable Environmental Qualification Resolution (“RCA”) was formally issued in June 2026, concluding the environmental assessment process for EIA 1. The Company is now advancing the sectoral permits required for construction and operation, while also undertaking the technical work required to prepare EIA 2. At the Carina Project, located in Goiás, Brazil, the Company updated its Preliminary Economic Assessment (PEA) on September 5, 2024, and announced the results and filing of the PFS based on Mineral Reserves on November 6, 2025, supporting the continued technical advancement of the project. On May 29, 2025, the EIA was submitted to the State Secretariat for the Environment and Sustainable Development (SEMAD), and during Q3 2025, the Company resubmitted it following regulatory, normative, and system updates introduced by the environmental authority. The approval process remains underway, with a decision anticipated in Q2 2026. Loss from continuing operations by segment as of June 30, 2026, is as follows: Penco Module Carina Project US$000 US$000 Administration expenses (325) (364) Exploration expenses - (556) Financial income 261 159 Financial costs (5) (232) Operating Expenses (69) (993)
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Unaudited Interim Consolidated Financial Statements 8 Segment assets and liabilities are presented as follows: Penco Module Carina Project US$000 US$000 Cash and cash equivalents 4,099 7,736 Trade debtors and other accounts receivable, net, current 894 2,685 Accounts receivable from related entities, current 237 10 Total current assets 5,230 10,431 Trade debtors and other accounts receivable, non-current 12 - Accounts receivable from related entities, non-current 7,518 - Investments accounted for using the equity method 1,741 - Property, plant and equipment, net 9,169 478 Evaluation and exploration assets 74,641 49,969 Total non-current assets 93,081 50,447 Total assets 98,311 60,878 Trade accounts payable and other accounts payable, current 2,863 1,967 Accounts payable to related entities, current 777 397 Other provisions, current - 37 Total current liabilities 3,640 2,401 Deferred government assistance - 2,555 Total non-current liabilities - 2,555 Total liabilities 3,640 4,956 Presentation of Financial Statements These Unaudited Interim Consolidated Financial Statements were approved for issue by the Board of Directors on August 6, 2026. 2 Basis of preparation and changes to the groups accounting policies (a) Basis of preparation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with IAS 34, Interim Financial Reporting. The basis of preparation and accounting policies used in preparing these Unaudited Interim Consolidated Financial Statements have been consistently applied and are set out below. The Unaudited Interim Consolidated Financial Statements have been prepared on a historical cost basis. The Unaudited Interim Consolidated Financial Statements are presented in US dollars (US$) and all monetary amounts are rounded to the nearest thousand ($000) except when otherwise indicated. The Company is a development stage company and has not generated any revenue. The economic analysis contained in the technical report titled “Amended and Restated NI 43 – 101 Technical Report – Preliminary Economic Assessment for Penco Module Project” (“Technical Report”) is based, in part, on inferred mineral resources, and is preliminary in nature. Inferred mineral resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as mineral reserves. There is no certainty that economic forecasts on which the preliminary economic assessment contained in the Technical Report is based will be realized. The Company completed a private placement of common shares in two tranches, on April 2 and May 13, 2026, for aggregate gross proceeds of US$50 million. The net proceeds received will be used to fund activities in connection with its projects, such as the development of the feasibility studies and piloting, brownfield exploration and infill drilling, permitting and ESG-related activities, surface land purchases, mining concessions, and construction capital expenditures. In addition, the Company intends to advance activities in connection with potential new modules, such as exploration, permitting processes, and engineering. The Company is fully funded for the next eighteen months in terms of contemplated capital and operating expenditures. Accordingly, the Unaudited Interim Consolidated Financial Statements have been prepared on a going concern basis. Changes in accounting policy and disclosures Amendments to standards and interpretations which came into force during the 2026 and 2025 periods do not have an impact on the Company's Unaudited Interim Consolidated Financial Statements and are as follows: - IAS 21 – Lack of Exchangeability The amendments to IAS 21 specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require the disclosure of information that enables users of the financial statements to understand how the lack of exchangeability between currencies affects, or is expected to affect, the entity’s financial performance, financial position and cash flows.
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Unaudited Interim Consolidated Financial Statements 9 The amendments became effective for annual periods beginning on or after January 1, 2025. When applying the amendments, entities are not permitted to restate comparative information. The amendments had no impact on the Company’s Unaudited Interim Consolidated Financial Statements. - IAS 21 - Translation to a Hyperinflationary Presentation Currency In November 2025, the IASB issued Translation to a Hyperinflationary Presentation Currency – Amendments to IAS 21. The amendments require translation from a non-hyperinflationary functional currency to a hyperinflationary presentation currency using the closing exchange rate. If an entity’s functional currency is the currency of a non-hyperinflationary economy but its presentation currency is the currency of a hyperinflationary economy, its results and financial position are translated into the presentation currency by translating all amounts (i.e., assets, liabilities, equity items, income and expenses) and all comparative figures using the closing exchange rate at the date of the most recent statement of financial position. An entity whose functional currency and presentation currency are the currency of a hyperinflationary economy restates the comparative amounts of a foreign operation whose functional currency is that of a non-hyperinflationary economy by applying the general price index, in accordance with paragraph 34 of IAS 29, to the comparative figures of that foreign operation. The amendments apply to annual periods beginning on or after January 1, 2027, with early application permitted. The amendments had no impact on the Company’s Unaudited Interim Consolidated Financial Statements. - IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments In May 2024, IASB issued amendments related to the classification and measurement of financial instruments that: - Clarify that a financial liability is derecognized on the settlement date, that is, when the related obligation is discharged, cancelled, expires, or otherwise qualifies for derecognition. The amendments also introduce an accounting policy option to derecognize financial liabilities settled through an electronic payment system before the settlement date if certain conditions are met. - Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG) features and other similar contingent features. - Clarify the accounting treatment of non-recourse financial assets and contractually linked instruments. - Require additional disclosures under IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those linked to ESG features) and for equity instruments classified at fair value through other comprehensive income. The amendments are effective for annual periods beginning on or after January 1, 2026. Entities may early adopt the amendments related to the classification of financial assets together with the related disclosures and apply the other amendments at a later date. The new requirements will be applied retrospectively, with an adjustment to the opening balance of retained earnings. Restatement of prior periods is not required. In addition, an entity is required to disclose information about financial assets that change their measurement category as a result of the amendments. The amendments had no impact on the Company’s Unaudited Interim Consolidated Financial Statements. - Annual Improvements to IFRS Accounting Standards In July 2024, the IASB issued the Annual Improvements to IFRS Accounting Standards affecting IFRS 1, IFRS 7, IFRS 9, IFRS 10, and IAS 7. The annual improvements are limited to changes that clarify the wording of a standard or correct relatively minor unintended consequences, oversights, or conflicts between the requirements of IFRS Accounting Standards that may arise from imprecise wording. These amendments apply to annual reporting periods beginning on or after January 1, 2026. Early application is permitted. The amendments had no impact on the Company’s Unaudited Interim Consolidated Financial Statements. - IFRS 19 – Subsidiaries without Public Accountability: Disclosures In May 2024, IASB issued IFRS 19, which allows eligible entities to apply reduced disclosure requirements while continuing to apply the recognition, measurement and presentation requirements of other IFRS Accounting Standards. To be eligible, at the end of the reporting period an entity must be a subsidiary as defined in IFRS 10, must not have public accountability, and must have a parent (either ultimate or intermediate) that prepares Unaudited Interim Consolidated Financial Statements available for public use that comply with IFRS Accounting Standards. IFRS 19 will be effective for reporting periods beginning on or after January 1, 2027. Early application is permitted. The adoption of IFRS 19 is not expected to have an impact on the Company’s Unaudited Interim Consolidated Financial Statements. - IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
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Unaudited Interim Consolidated Financial Statements 10 The amendments to IFRS 10 and IAS 28 (2011) address a recognized inconsistency between the requirements of IFRS 10 and IAS 28 (2011) in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments, issued in September 2014, establish that when the transaction involves a business (whether it is housed in a subsidiary or not), the full gain or loss generated is recognized. A partial gain or loss is recognized when the transaction involves assets that do not constitute a business, even when those assets are housed in a subsidiary. The mandatory effective date of these amendments has yet to be determined, as the International Accounting Standards Board (IASB) is awaiting the results of its research project on the accounting for the equity method. These amendments must be applied retrospectively, and early adoption is permitted, which must be disclosed. The amendments had no impact on the Company’s Unaudited Interim Consolidated Financial Statements. Standards, interpretations, and amendments to existing standards that are not yet effective and have not been previously adopted by the Company. Certain new standards, amendments and interpretations to existing standards have been issued but are not yet effective for the Company’s accounting periods beginning on or after January 1, 2027. The Company has not early adopted these standards. These are as follows: - IFRS 18 – Presentation and Disclosure in Financial Statements In April 2024, the International Accounting Standards Board (IASB) issued IFRS 18, which replaces IAS 1. While several sections of IAS 1 have been incorporated with limited changes, IFRS 18 introduces new presentation requirements in the statement of profit or loss, including specific totals and subtotals. It also requires disclosure of management -defined performance measures and includes new requirements for the aggregation and disaggregation of financial information based on the identified functions of the primary financial statements and the notes. Limited amendments have been made to IAS 7, and certain requirements previously included in IAS 1 have been moved to IAS 8, which has been renamed IAS 8 – Basis of Preparation of Financial Statements. IFRS 18 and all consequential amendments are effective for annual periods beginning on or after January 1, 2027. Early application is permitted. The standard must be applied retrospectively. The Company will assess the impact of this new standard once it becomes effective. (b) Judgements in applying accounting policies and key sources of estimation uncertainty Many of the amounts included in the Unaudited Interim Consolidated Financial Statements involve the use of judgement and/or estimation. These judgements and estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the Unaudited Interim Consolidated Financial Statements. Information about such judgements and estimates is contained in the accounting policies and/or the Notes to the Unaudited Interim Consolidated Financial Statements. Significant areas of estimation uncertainty and critical judgements made by management in preparing the Unaudited Interim Consolidated Financial Statements include: Significant estimates: • Ore reserves and resources – 2(e) There are numerous uncertainties inherent in estimating ore reserves and resources. Assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and resources and may, ultimately, result in the reserves and resources being restated. • Recoverable values of mining asset The value of the Company’s mining assets is sensitive to a range of characteristics unique to each mine project. Key sources of estimation for all assets include uncertainty around ore resource estimates. In performing impairment reviews, the Company assesses the recoverable amount of its operating assets principally with reference to fair value less costs of disposal, assessed using an in-situ valuation to estimate the amount that would be paid by a willing third party in an arm’s length transaction. There is judgement involved in determining the assumptions that are considered to be reasonable and consistent with those that would be applied by market participants. Key judgments include the estimation of future rare earths prices, future capital requirements, and exploration potential. Changes in these assumptions will affect the recoverable amount of the exploration and evaluation assets, and intangibles. The first resources and reserves report was issued on October 18, 2021. • Income tax Judgement is required in determining whether deferred tax assets are recognized on the statement of financial position. Deferred tax assets, including those arising from un-utilized tax losses require management to assess the likelihood that the Company will generate taxable earnings in future periods, in order to utilize recognized deferred tax assets. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the balance sheet date could be impacted. Critical judgements: • Determination of functional currencies – 2(c)
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Unaudited Interim Consolidated Financial Statements 11 The determination of functional currency requires management judgement, particularly where there may be several currencies in which transactions are undertaken, and which impact the economic environment in which the entity operates. • Recognition of exploration and evaluation assets – notes 2(d) and 10. Exploration and evaluation expenses are capitalized when the future economic benefit of a project can be regarded as assured with supporting studies and analysis. For this purpose, the future economic benefit of the project can reasonably be regarded as assured when the Board authorizes management to conduct a feasibility study, mine-site exploration is being conducted to convert resources to reserves, or mine-site exploration is being conducted to confirm resources, all of which are based on supporting geological information. This includes the assessment of whether there is sufficient evidence of the probability of the existence of economically recoverable minerals to justify the commencement of capitalization of costs; the timing of the end of the exploration phase, the start of the development phase; and the commencement of the production phase. (c) Currency translation The functional currency for the Company is in US dollars and is determined by the currency of the primary economic environment in which it operates. Unaudited Interim Consolidated Financial Statements expressed in their corresponding functional currencies are translated into US dollars by applying the exchange rate at period-end for assets and liabilities and the transaction date exchange rate for income statement items. The resulting difference is included as cumulative translation adjustment in equity. The Unaudited Interim Consolidated Financial Statements are presented in US dollars (US$). (d) Exploration and evaluation assets Based on IFRS 6 “Exploration for and evaluation of mineral resources” costs of mineral properties are capitalized as exploration and evaluation assets on a project-by-project basis. Costs related to the project that could be capitalized among others are; acquisition of rights to explore; topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; sampling; and activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource. Exploration and evaluation assets are transferred to mine development costs within property, plant and equipment once the work completed to date supports the future development of the property and such development receives appropriate approval. (e) Determination of ore reserves and resources The Company estimates its ore reserves and mineral resources based on information compiled by internal competent persons. Reports to support these estimates are prepared each year and are stated in conformity with Canadian securities law requirements including National Instrument 41 – Standards of Disclosure for Mineral Projects (“NI 43-101”). It is the Company’s policy to have the report audited by a Qualified Person. Reserves and resources are used in the units of production calculation for depreciation as well as the determination of the timing of mine closure cost and impairment analysis. As at June 30, 2026 and December 31, 2025 there is no provision of mine closure costs. (f) Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation. Cost comprises its purchase price and directly attributable costs of acquisition or construction required to bring the asset to the condition necessary for the asset to be capable of operating in the manner intended by management. Economical and physical conditions of assets have not changed substantially over this period. The cost less residual value of each item of property, plant and equipment is depreciated over its useful life. Each item’s estimated useful life has been assessed with regard to both its own physical life limitations and the present assessment of economically recoverable reserves and resources of the mine property at which the item is located. Estimates of remaining useful lives are made on a regular basis for all mine buildings, machinery and equipment, with annual reassessments for major items. Depreciation is charged to cost of production on a unit of production basis for mine buildings and installations and plant and equipment used in the mining production process or charged directly to the income statement over the estimated useful life of the individual asset on a straight-line basis when not related to the mining production process. Changes in estimates, which mainly affect units of production calculations, are accounted for prospectively. Depreciation commences when assets are available for use. Land is not depreciated. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the net proceeds with the carrying amount and are recognized within other income/expenses, in the income statement. The expected useful lives under the straight-line method are as follows: Years Buildings 3 to 33 Plant and equipment 5 to 10
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Unaudited Interim Consolidated Financial Statements 12 Vehicles 5 Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily takes a substantial period of time to be ready for its intended use are capitalized as part of the cost of the asset. All other borrowing costs are expensed where incurred. For borrowings associated with a specific asset, the actual rate on that borrowing is used. Otherwise, a weighted average cost of borrowing is used. The Company capitalizes the borrowing costs related to qualifying assets with a value of US$1,000,000 or more, considering that the substantial period of time to be ready is six or more months. The Company has not capitalized interest as it is in a pre-construction stage of operations and consequently does not meet IAS 23 requirements. Mining properties and development costs Purchased mining properties are recognized as assets at their cost of acquisition or at fair value if purchased as part of a business combination. Costs associated with developments of mining properties are capitalized when incurred. Mine development costs are, upon commencement of commercial production, depreciated using the units of production method based on the estimated economically recoverable reserves and resources to which they relate. When a mine construction project moves into the production stage, the capitalization of certain mine construction costs ceases and costs are either regarded as part of the cost of inventory or expensed, except for costs which qualify for capitalization relating to mining asset additions or improvements, underground mine development or mineable reserve development. Construction in progress and capital advances Assets in the course of construction are capitalized as a separate component of property, plant and equipment when incurred. Once the asset is moved into the production phase, the cost of construction is transferred to the appropriate category. Construction in progress is not depreciated. Subsequent expenditure Expenditure incurred to replace a component of an item of property, plant and equipment is capitalized separately with the carrying amount of the component being written off. Other subsequent expenditure is capitalized if future economic benefits will arise from the expenditure. All other expenditure including repairs and maintenance expenditures are recognized in the income statement as incurred. As of June 30, 2026, and December 31, 2025, the Company does not have any balance of mining properties and development costs and construction in progress and capital advances. (g) Impairment of non-financial assets Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. The Company does not have intangible assets with an indefinite useful life. The carrying amounts of exploration and evaluation assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable. If there are indicators of impairment, an exercise is undertaken to determine whether the carrying values are in excess of their recoverable amount. Such review is undertaken on an asset-by-asset basis, except where such assets do not generate cash flows independent of other assets, and then the review is undertaken at the cash-generating unit (“CGU”) level. The assessment requires the use of estimates and assumptions such as long-term commodity prices, future capital requirements, and exploration potential. Changes in these assumptions will affect the recoverable amount of the exploration and evaluation assets. If the carrying amount of an asset or its CGU exceeds the recoverable amount, an impairment provision is recorded to reflect the asset at the lower amount. Impairment losses are recognized in the income statement. Calculation of recoverable amount The recoverable amount of assets is the greater of their value in use (“VIU”) and fair value less costs of disposal (“FVLCD”) to sell. FVLCD is based on an estimate of the amount that the Company may obtain in a sale transaction on an arm’s length basis. VIU is based on estimated future cash flows discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the CGU to which the asset belongs. The recoverable values of the CGU are determined using a FVLCD methodology. FVLCD was determined using level 3 inputs to estimate the amount that would be paid by a willing third party in an arm's length transaction. Recoverable values are assessed only for CGUs that present impairment indicators. Reversal of impairment An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
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Unaudited Interim Consolidated Financial Statements 13 (h) Trade and other receivables Current trade receivables are carried at the original invoice amount less provision made for impairment of these receivables. Non-current receivables are stated at amortized cost. Impairment of financial assets – The company recognizes a value adjustment on expected credit losses (“ECL”) related to financial assets measured at amortized cost or at FVTOCI, lease accounts receivable, amounts owed by customers under construction contracts, as well as loan commitment and financial guarantee contracts. The amount of the expected credit losses is restated at each reporting date to reflect changes in the credit risk since the initial recognition of the corresponding financial asset. The company always recognizes ECL over the life of the asset for trade accounts receivable. The expected credit losses of these financial assets are estimated using provisions matrix based on the historical experience of the Company’s credit losses, adjusted for factors that are specific to the debtors, general economic conditions and an evaluation both of the real and budgeted direction of the conditions on the reporting date, including the time value of money when appropriate. For all other financial instruments, the Company recognizes ECL over the life of the asset when there has been a significant increase in the credit risk since initial recognition. If, on the other hand, the credit risk of the financial instrument has not significantly increased since initial recognition, the Company measures the value restatement for losses for this financial instrument at an amount equal to the expected credit losses in the next twelve months. The evaluation as to whether ECL should be recognized over the life of the asset is based on a significant increase in the probability or risk of non-compliance occurring since initial recognition instead of on evidence of a credit-impaired financial asset as of the reporting date or the existence of a non-compliance event. ECL over the life of the asset represent the expected credit losses that will result from all possible non-compliance events during the expected life of a financial instrument. In contrast, the ECL in the next twelve months represents the portion of the s ECL during the life of the asset that are expected to result from a non-compliance event on a financial instrument that is possible within 12 months after the reporting date. The Company applied a simplified focus to recognize expected credit losses over the life of the asset for its trade and other accounts receivable, as required by IFRS 9. In relation to related parties, management believes that there has not been a significant increase in the credit risk of loans with related parties from initial recognition to June 30, 2026, and December 31, 2025. Consequently, management does not expect to recognize expected credit losses in the next 12 months for loans with related companies. The amount of the provision is the difference between the carrying amount and the recoverable amount and this difference is recognized in the income statement. (i) Income Tax Income tax for the year comprises current and deferred tax. Income tax is recognized in the income statement except to the extent that it relates to items charged or credited directly to equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted at the consolidated statement of financial position date, and any adjustment to tax payable in respect of previous years. The applicable tax rates are as follows: Name Country 2026 2025 Aclara Resources Inc. Canada 27% 0% Aclara Resources Peru SAC Peru 29.5% 29.5% Aclara Technologies Inc. USA 21% 21% Polaris Creek LLC USA 21% 21% Aclara Metals Inc. USA 21% 21% Aclara Resources Mineracao Ltda Brazil 34% 34% Aclara Resources Inc., Agencia en Chile Chile 27% 27% Ree Uno SpA Chile 27% 27% Prospecciones Greenfield SpA Chile 12.5% 12.5% Fundacion Queule Chile 25% 25% Aclara Metals SpA Chile 12.5% 12.5% Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes, with the following exceptions: - where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss; and - in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will n ot reverse in the foreseeable future. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized, or the liability is settled based on the tax rates (and tax laws) that have been enacted or substantively enacted at the statement of financial position date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
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Unaudited Interim Consolidated Financial Statements 14 The Company has not recognized deferred tax assets as the recoverability in the foreseeable future is not more-likely-than-not to occur. Deferred taxes not recognized as of June 30, 2026, and December 31, 2025, amount to US$ 20,381,146 and US$ 19,516,797 respectively. As of June 30, 2026, and December 31, 2025, the result for the year of the Company, its branch, and subsidiaries are a tax loss, for which no tax expense was recognized. The accumulated tax (income) losses as of June 30, 2026, and December 31, 2025, by entity are as follows: June 30, 2026 Name Country US$000 Aclara Resources Inc. Canada 15,189 Aclara Resources Inc., Agencia en Chile Chile 18 Ree Uno SpA Chile 13,080 Aclara Resources Peru SAC Peru 168 Prospecciones Greenfield SpA Chile 3,005 Aclara Resources Mineracao Ltda Brazil 9,399 Fundacion Queule Chile 18 Aclara Metals SpA Chile 877 Aclara Technologies Inc. USA 1,507 Polaris Creek LLC USA 999 Aclara Metals Inc. USA - December 31, 2025 Name Country US$000 Aclara Resources Inc. Canada 14,017 Aclara Resources Inc., Agencia en Chile Chile 10 Ree Uno SpA Chile 14,940 Aclara Resources Peru SAC Peru 621 Prospecciones Greenfield SpA Chile 2,882 Aclara Resources Mineracao Ltda Brazil 7,817 Fundacion Queule Chile - Aclara Metals SpA Chile 1,321 Polaris Creek LLC USA 982 Aclara Technologies Inc. USA 997 Aclara Metals Inc. USA - (j) Financial instruments Financial instruments — initial recognition and subsequent measurement A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (a) Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, and subsequently measured at amortized cost, fair value through OCI, or fair value through profit or loss. The classification of financial assets at initial recognition that are debt instruments depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient for contracts that have a maturity of one year or less, are measured at the transaction price. In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.
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Unaudited Interim Consolidated Financial Statements 15 Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: • Financial assets at amortized cost (debt instruments) • Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) • Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) • Financial assets at fair value through profit or loss Financial assets at amortized cost (debt instruments) Financial assets at amortized cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Interest received is recognized as part of finance income in the statement of profit or loss and other comprehensive income. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Company’s financial assets at amortized cost include trade receivables (not subject to provisional pricing), trade receivable from related entities and other receivables. The Company’s financial assets at fair value through profit or loss include short term investments (time deposit 6 months). Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e., removed from the Company’s Consolidated Statement of financial position) when: • The rights to receive cash flows from the asset have expired or; • The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay. (b) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables and loans. Subsequent measurement For purposes of subsequent measurement, financial liabilities are classified in two categories: • Financial liabilities at fair value through profit or loss • Financial liabilities at amortized cost (loans and trade and other payables) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities at amortized cost (loans and trade and other payables)
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Unaudited Interim Consolidated Financial Statements 16 After initial recognition, interest-bearing loans and borrowings and trade and other payables are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in the statement of profit or loss and other comprehensive income when the liabilities are derecognized, as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss and other comprehensive income. This category generally applies to interest- bearing loans and borrowings and trade and other payables. Derecognition A financial liability is derecognized when the associated obligation is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in profit or loss and other comprehensive income. (c) Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. (k) Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost. For the purposes of the statement of financial position, cash and cash equivalents comprise cash on hand and deposits held with banks that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. For the purposes of the cash flow statement, cash and cash equivalents, as defined above, are shown net of outstanding bank overdrafts. Liquidity funds are classified as cash equivalents if the amount of cash that will be received is known at the time of the in itial investment and the risk of changes in value is considered insignificant. The Company uses the valuation technique level 1, that is, quoted (unadjusted) prices in active markets for identical assets or liabilities, for determining and disclosing the fair value of cash and cash equivalents. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: - In the principal market for the asset or liability, or - In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non -financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the Unaudited Interim Consolidated Financial Statements are categorized within the fair value hierarchy. For assets and liabilities that are recognized in the Unaudited Interim Consolidated Financial Statements on a recurring basis at fair value, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. At each reporting date, the Company analyses the movements in the values of assets and liabilities which are required to be r e-measured or re-assessed as per the Company’s accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. The Company, in conjunction with its external valuers, where applicable, also compares each the changes in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
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Unaudited Interim Consolidated Financial Statements 17 Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. As of June 30, 2026, and December 31, 2025, the Company does not have financial assets fair valued with these valuation techniques. 3 Subsidiary, joint venture and branch companies Summary of subsidiaries, joint venture, and branch companies Voting power percentage Participation % 2026 & 2025 Name Country Functional Currency Direct Indirect Aclara Resources Inc., Agencia en Chile Chile Chilean Pesos 100% 100% - Ree Uno SpA Chile Chilean Pesos 80% 80% - Aclara Resources Peru SAC Peru Peruvian Soles 100% 100% - Prospecciones Greenfield SpA Chile Chilean Pesos 80% - 80% Aclara Resources Mineracao Ltda. Brazil Brazilian real 100% 100% - Fundacion Queule Chile Chilean Pesos 80% - 80% Aclara Metals SpA Chile Chilean Pesos 50% 50% - Aclara Technologies Inc. USA American dollars 100% 100% - Polaris Creek LLC USA American dollars 100% - 100% Aclara Metals Inc. USA American dollars 50% - 50% As of June 30, 2026, and December 31, 2025, no dividends have been declared or distributed by the Company, its subsidiaries, or joint ventures. Consolidation basis (a) Subsidiaries or affiliates Subsidiaries or affiliates are all entities over which the Company has control. The Company is considered to have control when it: - Has power over the entity, - Is exposed, or has rights to variable returns from its involvement with the entity; and - Has the ability to affect those returns through its power over the entity. The Company has power and control over the subsidiaries due to the shares that the Company owns, which give it the current ability to direct the entity. relevant activities, that is, activities that significantly affect the entity's returns. Subsidiaries are consolidated from the date on which control is transferred and excluded from consolidation on the date on which it ceases. Intercompany transactions, balances, and unrealized gains by transactions between related entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment loss of the transferred asset. The functional currency for subsidiaries, joint venture and branch of the company is the U.S. dollar for Aclara Technologies Inc., Polaris Creek LLC, Aclara Metals Inc., Aclara Resources Peru SAC, the Brazilian real for Aclara Resources Mineracao Ltda. and the Chilean peso for Agencia, Ree Uno SpA, Prospecciones Greenfield SpA, Aclara Metals SpA and Fundacion Queule. The functional currency is determined by the currency of the primary economic environment in which it operates. The results and financial situation of all the subsidiaries, joint venture, and branch of the Company, which have a functional currency different from the currency of presentation are translated into the presentation currency US dollars by applying the exchange rate at period-end for assets and liabilities and the transaction date exchange rate for income statement items. The resulting difference is included as cumulative translation adjustment in equity. Changes in the scope of consolidation (a) Direct & indirect consolidation scope The following changes occurred in the scope of the Company’s direct and indirect consolidation for the periods ended June 30, 2026 and December 31, 2025: On February 7, 2025, Polaris Creek LLC was incorporated. On May 12, 2025, Aclara Metals Inc. was incorporated with a capital contribution of US$500 made by the Company, resulting in a 50% ownership stake.
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Unaudited Interim Consolidated Financial Statements 18 4 Administration expenses (a) Administration expenses Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 US$000 US$000 US$000 US$000 Personnel expenses (1) 914 869 2,017 1,607 Professional fees 444 410 1,025 740 Depreciation and amortization 206 187 382 363 Contractors and services 396 548 596 734 Travel expenses 271 110 428 239 Marketing expenses 40 99 160 195 Others 118 36 175 85 Total 2,391 2,259 4,785 3,963 The following expenses are not directly related to the project executed in the subsidiary Ree Uno SpA, Aclara Resources Mineracao Ltda. and Aclara Technologies Inc.: (1) Majority of the personnel expenses were capitalized for the periods ended June 30, 2026, and December 31, 2025. Non-capitalized personnel expenses belong to Aclara Resources Inc., and Aclara Resources Peru SAC. 5 Exploration expenses (a) Exploration expenses Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 US$000 US$000 US$000 US$000 Personnel expenses 141 37 240 83 Professional fees - 537 13 575 Mining rights - 90 - 90 Rentals 19 9 26 22 Analysis & technical - - 25 - Studies 14 54 14 56 Technology and system 19 - 52 11 Contractors and services 10 - 30 2 Travel expenses 24 41 40 97 Laboratory supplies and materials - 3 1 6 Others 80 18 118 38 Total 307 789 559 980 6 Financial income and costs (a) Financial income Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 US$000 US$000 US$000 US$000 Interests 319 283 423 475 Total 319 283 423 475 (b) Financial costs Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 US$000 US$000 US$000 US$000 Bank commissions 142 33 263 90 Total 142 33 263 90
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Unaudited Interim Consolidated Financial Statements 19 7 Share of loss of a joint venture (a) Share of loss of a joint venture Three months ended June 30 Six months ended June 30 Aclara Metals SpA 2026 2025 2026 2025 US$000 US$000 US$000 US$000 Administration expenses (1) 135 263 439 378 Financial income 3 2 - 2 Loss for the period from continuing operations 137 265 439 380 Share of loss of a joint venture 69 132 220 190 Investment in a joint venture - - - (1) Investment in a joint venture at beginning of the year - - 546 114 Total share of loss of a joint venture 50% 69 133 766 304 (1) The administration expenses refer to the results of the Chilean joint venture Aclara Metals SpA. As of June 30, 2026, there have been no material transactions and results between the Company and Aclara Metals SpA that impact the Unaudited Interim Consolidated Financial Statements. 8 Basic and diluted earnings per share Earnings per share (‘EPS’) is calculated by dividing profit for the year attributable to equity shareholders by the weighted average number of common shares issued during the period. The Company does not have dilutive potential common shares. As of June 30, 2026, and June 30, 2025, EPS has been calculated as follows: Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 US$ US$ US$ US$ Total basic loss per share for the period and from continuing operations (0.01) (0.01) (0.02) (0.02) Total diluted loss per share for the period and from continuing operations (0.01) (0.01) (0.02) (0.02) Loss from continuing operations attributable to equity holders is derived as follows: Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 US$000 US$000 US$000 US$000 Loss attributable to equity holders – continuing operations (2,627) (2,797) (5,501) (4,559) The following reflects the share data used in the basic and diluted EPS computations: Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 US$000 US$000 US$000 US$000 Basic weighted average number of ordinary shares in issue 226,652 185,529 226,652 185,529 Effect of dilutive potential ordinary shares related to contingently issuable shares - - - - Weighted average number of ordinary shares in issue for the purpose of diluted earnings per share 226,652 185,529 226,652 185,529 The calculation of the weighted average number of common shares is as follows: Total Balance as at January 1, 2025 166,409,223 Issuance April 01, 2025 2,272,425 Issuance February 19, 2025 51,303,573 Balance as at June 30, 2025 219,985,221 Weighted average number of ordinary shares as at June 30, 2025 185,529,394
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Unaudited Interim Consolidated Financial Statements 20 Total Balance as at January 1, 2026 219,985,221 Issuance January 02, 2026 1,405,676 Issuance January 06, 2026 804,089 Issuance January 07, 2026 166,763 Issuance April 02, 2026 20,078,697 Issuance May 13, 2026 4,136,851 Balance as at June 30, 2026 246,577,297 Weighted average number of ordinary shares as at June 30, 2026 226,652,381 9 Property, plant and equipment Land Plant and equipment Total US$000 US$000 US$000 Cost property, plant and equipment Balance as at January 1, 2025 8,128 3,186 11,314 Additions - 2,502 2,502 Foreign exchange effect 800 149 949 Balance as at December 31, 2025 8,928 5,837 14,765 Additions - 413 413 Foreign exchange effect (146) (7) (153) Balance as at June 30, 2026 8,782 6,243 15,025 Accumulated depreciation plant and equipment Balance as at January 1, 2025 - 1,394 1,394 Depreciation of the period - 195 195 Foreign exchange effect - 28 28 Balance as at December 31, 2025 - 1,617 1,617 Depreciation of the period - 271 271 Foreign exchange effect - (96) (96) Balance as at June 30, 2026 - 1,792 1,792 Net book value as at December 31, 2025 8,928 4,220 13,148 Net book value as at June 30, 2026 8,782 4,451 13,233 There were no borrowing costs capitalized in property, plant and equipment as there are no qualifying assets. There are no restrictions on ownership of property, plant and equipment. There are no capital commitments for property, plant and equipment. The company incurred in expenses of US$ 2,042,882.52 in connection with the separation pilot plant in the United States, which was constructed during 2026 and 2025. As of June 30, 2026, and December 31, 2025, the Company has not recognized any impairment. As of November 23, 2020, a purchase agreement was signed between Ree Uno SpA and Forestal Arauco SA for the purchase of land located in Concepción, Chile. As of June 30, 2026, the company has paid six of the seven instalments indicated in the agreement described above. The Company has the right to cancel the contract at any moment if the project is proven unfeasible. As of December 31, 2023, the company has decided to continue with the purchase and settle the remaining installment of US$ 1,300,000 in 2026.
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Unaudited Interim Consolidated Financial Statements 21 10 Exploration and evaluation assets Total US$000 Cost Balance as at January 1, 2025 102,224 Additions (1) 36,651 Disposals (90) Foreign exchange effect 10,909 Balance as at December 31, 2025 149,694 Additions (1) 18,885 Foreign exchange effect 92 Balance as at June 30, 2026 168,671 Accumulated amortization and impairment Balance as at January 1, 2025 1,712 Additions 929 Foreign exchange effect 152 Balance as at December 31, 2025 2,793 Additions 105 Foreign exchange effect (218) Balance as at June 30, 2026 2,680 Net book value as at December 31, 2025 146,901 Net book value as at June 30, 2026 165,991 Notes: (1) The total investment in the Penco Module, Carina Project, Project Dynamo and mining concessions capitalized as of June 30, 2026, and December 31, 2025, amounting to US$ 18,885 and US$ 36,651, respectively, is detailed below: June 30 December 31 2026 2025 US$000 US$000 Personnel expenses 5,638 8,240 Professional fees 4,863 7,043 Environmental impact study 945 2,736 Geochemical study 5 18 Drilling services - 2,532 Engineering services 63 585 Mining rights 479 439 Feasibility studies 1.690 2,947 Rent building, vehicles, others 603 2,129 Analysis & technical 447 1,918 Contractors and Services 2.713 5,608 Travel expenses 460 1,033 Other 979 1,420 Total 18,885 36,651 According to the policy of capitalization of evaluation and exploration expenses, costs of mineral properties are capitalized as exploration and evaluation assets on a project-by-project basis. As of June 30, 2026, and December 31, 2025, the Company has three projects capitalized and named Penco Module (Chile), Carina Project (Brazil) and Project Dynamo (USA). The Penco Module and Carina Project aim to produce a rare earth concentrate through their respective processing plants, which will be fed by clays from nearby deposits. The resulting carbonate will subsequently be refined and separated into high-purity individual REOs at the Company’s U.S. separation plant. Accordingly, the Company capitalizes expenses related to researching and analyzing historical exploration data, gathering exploration data through geophysical studies, exploratory drilling, and sampling, determining and examining the volume and grade of the resource, surveying transportation and infrastructure requirements, and conducting market and financial studies. There were no borrowing costs capitalized in exploration and evaluation assets as there are no qualifying assets. There are no capital commitments and restrictions on ownership of exploration and evaluation assets.
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Unaudited Interim Consolidated Financial Statements 22 As of June 30, 2026, and December 31, 2025, the Company has not recognized any impairment. Since the projects are subject to approval by local environmental authorities, the Company evaluated impairment indicators for the Penco Module and Carina Project and conducted an impairment test, which determined that the recoverable amount exceeds the carrying value of these assets. 11 Trade and other receivables June 30 December 31 2026 2025 US$000 US$000 Current Advances to suppliers 3,864 2,486 Loans to employees 3 4 Others 414 200 Assets classified as receivables 4,281 2,690 Prepaid expenses 43 25 Value added tax 1,066 1,245 Total 5,390 3,960 Non-current Others 31 32 Total 31 32 The fair values of trade and other receivables approximate their book value. As of June 30, 2026, and December 31, 2025, none of the financial assets classified as receivables (net of impairment) were past due. 12 Cash and cash equivalents June 30 December 31 2026 2025 US$000 US$000 Current demand deposit accounts 42,595 14,011 Cash and cash equivalents considered for the statement of cash flows 42,595 14,011 The fair value of cash and cash equivalents approximates their book value. The Company does not have undrawn borrowing facilities available in the future for operating activities or capital commitments. The composition of the item by currency as of June 30, 2026, and December 31, 2025, is as follows: June 30 December 31 2026 2025 US$000 US$000 Chilean pesos (equivalent US$) 937 1,248 Canadian dollar (equivalent US$) 214 88 Peruvian soles (equivalent US$) 39 17 Brazilian real (equivalent US$) 7,635 420 American dollar 33,770 12,238 Total 42,595 14,011 13 Deferred government assistance June 30 December 31 2026 2025 US$000 US$000 Funds received from the U.S. International Development Finance Corporation 2,555 825 Total 2,555 825 On September 2, 2025, the U.S. International Development Finance Corporation (DFC) committed up to US$ 5,000,000 in project development funding to support the Carina Project. The funding bears no interest and does not include any security interest. Repayment is conditional upon the occurrence of a qualifying financing event related to the construction of the Carina Project, which may occur within ten years from the agreement’s effective date.
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Unaudited Interim Consolidated Financial Statements 23 14 Trade and other accounts payables June 30 December 31 2026 2025 US$000 US$000 Current Trade payables (1) 1,231 2,201 Lands 1,300 1,300 Taxes and contributions 348 316 Salaries and wages payable 2,639 3,048 Others 262 266 Total 5,779 7,131 As of June 30, 2026, and December 31, 2025, the Company has no non-current trade and other payable. The fair value of trade and other payables approximate their book values. (1) Trade payables relate mainly to the acquisition of materials, supplies and contractors’ services. These payables do not accrue interest, and no guarantees have been granted. 15 Other provisions June 30 December 31 2026 2025 US$000 US$000 Contractors and Services 37 2,438 Total 37 2,438 16 Equity (a) Share capital Issued share capital and additional capital The changes in share capital are as follows: Number of shares type A - Aclara Resources Inc. Total US$ 000 Balance as at January 31, 2025 166,409,223 165,324 Shares issued 51,303,573 25,000 Share issuance costs - (836) Shares issued (1) 2,272,425 808 Balance as at December 31, 2025 219,985,221 190,296 Shares issued (1) 2,376,528 4,280 Shares issued 24,215,548 50,000 Share issuance costs - (166) Balance as at June 30, 2026 246,577,297 244,410 (1) Shares issued to settle Restricted Share Units in accordance with the Company’s long-term incentive plan. Shareholder Shares subscribed Percentage share Hochschild Mining Holdings Ltd 47,630,213 19,32% New Hartsdale Capital Inc 90,027,095 36,52% CAP S.A. 31,849,363 12,92% Other Investors 77,070,626 31,24% Total 246,577,297 100,00%
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Unaudited Interim Consolidated Financial Statements 24 Dividends will be paid exclusively from the net earnings for the year, or from the retained earnings from balance sheets approved by the general shareholders' meeting. If the Company has accumulated losses, the profits for the year will first be used to absorb them, if there are losses for a year, these will be absorbed with retained earnings, if any. The Chairman of the Board of Directors may, under his personal responsibility, distribute provisional dividends during the fiscal year charged to the profits thereof, if there are no accumulated losses. (b) Other reserves Cumulative translation adjustment The cumulative translation adjustment account is used to record foreign exchange differences arising from the translation of the financial with a functional currency different to the reporting currency of the Company. Other reserves (1) Shared-based payments As part of the Company’s long-term compensation program, the Company grants Restricted Share Units (“RSUs”) to employees, executives and members of the Board of Directors under the Omnibus Long-Term Incentive Plan. RSUs entitle the holder to receive one common share of the Company upon vesting and are equity-settled share-based payment awards. RSUs generally vest over a three-year period from the date of grant, subject to continued employment. The vesting conditions are determined by the Board of Directors at the grant date. The awards remain outstanding for a maximum contractual term determined by the Board of Directors, which may not exceed ten years from the date of grant. Upon a change of control of the Company, any unvested equity-based awards (including RSUs) will vest immediately. As of June 30, 2026, and December 31, 2025, the Company had 1,611,893 RSUs outstanding under this plan. The movement in RSUs during the period is as follows: Total As at January 1, 2025 4,614,811 RSUs settled during the period (2,272,425) RSUs cancelled during the period (310,608) RSUs granted 1,945,442 As at December 31, 2025 3,977,220 RSUs settled during the period 42,320 RSUs cancelled during the period (31,119) RSUs granted (2,376,528) As at June 30, 2026 1,611,893 The fair value of RSUs is measured at the grant date. The fair value is determined based on the market price of the Company’s common shares on the grant date and incorporates assumptions related to expected forfeitures and employee turnover. For certain awards, the Company uses option-pricing techniques, including the Black-Scholes model, to estimate the grant-date fair value of the awards. Key assumptions used in the valuation of RSUs granted during the year include the average of the following assumptions: 2025 Share price at grant date (Canadian dollar) 0.56 Expected volatility 67.72% Risk-free interest rate 2.41% Expected forfeiture rate 10% The Company recognized share-based payment expense related to RSUs as follows: Total US$000 As at January 1, 2025 1,433 RSUs settled during the period (808) Share – based payments expense during the period 702 As at December 31, 2025 1,327 RSUs settled during the period (4,280) Share – based payments expense during the period 2,290 As at June 30, 2026 (663)
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Unaudited Interim Consolidated Financial Statements 25 The total share-based payment expense related to RSUs exercised and settled increase by US$ 2,090 thousand as of June 30, 2026, compared to an increase of US$106 thousand as of December 31, 2025. 17 Related-party balances and transactions The Company had the following related-party balances and transactions as of June 30, 2026, and December 31, 2025, the related parties are companies owned or controlled by the principal shareholder of the Company or associates. Accounts receivable June 30 December 31 2026 2025 Current related party balances US$000 US$000 Aclara Metals SpA – Joint venture 304 - CAP S.A. - 6,937 Total 304 6,937 (1) Capital contribution from CAP S.A. to the subsidiary Ree Uno SpA (refer to Note 1 for additional details). Accounts payable June 30 December 31 2026 2025 Current related party balances US$000 US$000 Compañia Minera Ares S.A.C. - 2 Total - 2 (a) Related-party accounts receivable and payable No security has been granted or guarantees given by the Company in respect of these related party balances. Principal transactions (all these amounts have been capitalized) between related parties are as follows: June 30 December 31 2026 2025 US$000 US$000 Expense recognized for the services performed by Compañia Minera Ares S.A.C. 21 31 Expense recognized for the services performed by CAP SA 88 45 Related parties are as follows: Type of transaction Relationship Compañía Minera Ares S.A.C. Intercompany administrative services Related parties - Shareholder CAP S.A. Capital contribution to subsidiaries and rental services Related parties - Shareholder (b) Compensation of key management personnel of the Company June 30 December 31 2026 2025 Compensation of key management personnel US$000 US$000 Shared-based payments 88 702 Short-term employee benefits 5,286 4,410 Total compensation paid to key management personnel 5,374 5,112 Number of key management personnel of the Company was six at June 30, 2026 and seven at December 31, 2025.
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Unaudited Interim Consolidated Financial Statements 26 18 Notes to the statement of cash flows June 30 June 30 2026 2025 US$000 US$000 Reconciliation of loss for the year to net cash generated from operating activities (Loss) of the period (5,535) (4,637) Adjustments to reconcile Company loss to net cash inflows from operating activities Depreciation and amortization of the period 382 363 Movements related to minority interest and other that do not represent flows (198) (62) Increase/(decrease) of cash flows from operations due to changes in assets and liabilities Trade debtors and other accounts receivable (1,852) 4,953 Trade accounts payable and other accounts payable (1,132) 3,494 Accounts payable to related entities (2) (25) Other provisions (2,401) (1,018) Cash generated from operations (10,738) 3,068 19 Contingencies a) Taxation: As of June 30, 2026, and December 31, 2025, the Company is not subject to any contingencies. b) Guarantees: As of June 30, 2026, and December 31, 2025, the Company does not have any guarantee in respect of exploration activities. c) Litigations: As of June 30, 2026, and December 31, 2025, there are no major litigations currently affecting the Penco Module, Carina Project and Project Dynamo. 20 Financial risk management The Company is exposed to a variety of risks and uncertainties which may have a financial impact on the Company. The Company identify and, where appropriate, implement the controls to mitigate the impact of significant risks. (a) Foreign currency risk The Company is in the pre-operational stage, and no income or operating costs have been recorded. The main disbursements are in Chilean pesos, As of June 30, 2026, and December 31, 2025, the Company has deposits, trade and other payables and account payables to related parties stated in US dollars, The sensitivity of financial assets and liabilities, on June 30, 2026, to a +/- 10% change in the US dollar exchange rate, with all other variables held constant, is -/+ US$ 2,650,000 for Canadian dollars, US$ 547,000 for Brazilian real, US$ 373,500 for Peruvian soles and US$ 918,000 for Chilean pesos. (b) Credit risk Credit risk arises from debtors’ inability to make payment of their obligations to the Company as they become due (without taking into account the fair value of any guarantee or pledged assets). The Company does not have material exposure to credit risk since it does not have commercial activities. (c) Liquidity risk Liquidity risk arises from the Company’s inability to obtain the funds it requires to comply with its commitments, including the inability to sell a financial asset quickly enough and at a price close to its fair value. Management constantly monitors the Company’s level of short- and medium-term liquidity, and their access to credit lines, in order to ensure appropriate financing is available for its operations. The table below categorizes the undiscounted cash flows of Company’s financial liabilities into relevant maturity groupings based on the remaining period as at the statement of financial position to the contractual maturity date.
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Unaudited Interim Consolidated Financial Statements 27 Between Between Less than 1 and 2 and Over 1 year 2 years 5 years 5 years Total Note US$000 US$000 US$000 US$000 US$000 As at June 30, 2026 Trade and other payables 14 5,779 - - - 5,779 Trade and other payables related parties 17 - - - - - Total 5,779 - - - 5,779 As at December 31, 2025 Trade and other payables 14 7,131 - - - 7,131 Trade and other payables related parties 17 2 - - - 2 Total 7,133 - - - 7,133 (d) Capital risk management The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders, benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. Management considers as part of its capital, the financial sources of funding from shareholders and third parties. (e) Environmental risk Following the issuance of the favorable RCA for EIA 1 in June 2026, the Penco Module remains subject to environmental and permitting risks. These risks relate to compliance with the conditions of the RCA, obtaining the sectoral permits required for construction and operation. (f) New mining royalty risk On August 10, 2023, the new Mining Royalty Law N° 21,591, was published in the Official Gazette. This law creates a royalty that certain mining exploiters must pay in favour of the State due to the exploitation of mining resources that belong to such State. This royalty is applicable only to exploiters with annual sales of mining products over and above the equivalent of 12,000 metric tonnes of copper equivalent (today over and above annual sales of US$ 99,320,520). 21 Subsequent events As of July 07, 2026, the Company issued 1,466,303 common shares for a total amount of $ 5,601,277.46 Canadian dollars equivalent to US$ 3,944,839.