Annual report
Page 1
KGL Resources Limited | FY2026 Annual Report Page 1 of 1 30 September 2026 KGL Resources Limited (ASX:KGL) is pleased release the company’s FY2026 Annual Report. KGL Resources also advises the Annual General Meeting will be held on 24 November 2026. Approved for release by the board of directors of KGL Resources Limited FY20206 Annual Report
Page 2
ANNUAL REPORT 30 June 2026Level 1, 5 Gardner Close, Milton QLD 4064, Australia T: +61 (0) 7 3071 9003 | F: +61 (0) 7 3071 9008 | info@kglresources.com.au kglresources.com.au
Page 3
Contents 1 Corporate Directory 2 Message from the Chairman 5 CEO Operations R eview 12 R eserves and Resources Table 13 Competent person ’s statement 14 Tenement Holdings 16 Sustainability 17 Corporate Governance Statement 19 Financial R eport 82 Additional Information
Page 4
Name of Company Secretary K ylie Anderson Address of Registered Office K GL Resources Limited Level 1, 5 Gardner Close Milton QLD 4064 Australia 07 3071 9003 Name and Address of Share Registry MUFG Corporate Mark ets (AU) Limited Tower 4 727 Collins Street Docklands VIC 3008 Securities Exchange Listing Quotation has been granted for the unrestricted ordinary shares of the company on all member exchanges of the Australian Securities Exchange. Corporate Directory Page 1 | KGL Resources Ltd Annual Report 2026
Page 5
Message from the Chairman Dear Shareholders, FY2026 was a transformational year for KGL Resources Ltd (KGL), culminating in the high-grade Jervois Copper- Silver- Gold Project (Jervois Project) becoming fully funded to production at the time of preparing this report. Over the year, KGL materially advanced the Jervois Project. The Company secured a US$300 million cornerstone precious metals purchase agreement (PMPA) for silver and gold with Wheaton Precious Metals International Ltd (Wheaton) and completed a A$300 million equity raising post balance date. Together with existing cash, these provide approximately A$689 million of aggregate funding that provides a prudent liquidity buffer to complete project construction and commissioning, and to extend the operational life by targeting high potential exploration, adjacent to planned mining areas. KGL’s business plan has attracted strong support from existing shareholders as well as new domestic and international institutional investors and funds. Together with Wheaton’s commitment, we view this support as an endorsement of the quality of the high-grade Jervois Project and the KGL team’s approach. During the financial year, the copper price increased by 24%, from about US$11,000 to about US$13,600 per tonne between July 2025 and June 2026. This upward trend has continued into the 2026/2027 financial year, supported by market analysts’ views suggesting a target of some US$15,000 per metric tonne 1. Importantly, the funding structure does not include conventional project debt and leaves KGL’s copper offtake fully exposed to movements in the copper price. The Baseline Economic Model (BEM) announced in April 2026 confirmed the strength of the Jervois development case, with a post-tax NPV of approximately A$839 million (8% discount rate), a post-tax IRR of 31% and an estimated C1 cost of US$1.65 per pound of copper. The value of Jervois is highly leveraged to the LME copper price which has increased from the BEM modelled price of US$13,360 per metric tonne to circa US$14,400 per metric tonne in less than 6 months since the BEM announcement. The project valuation sensitivity analysis reported in the BEM showed that the value of the project (NPV) increases above the A$839 million valuation by A$140 million for each US$1,000 increase in the copper price per metric tonne. During the year, KGL advanced process-plant engineering, contracting, procurement, long-lead equipment procurement, the open-pit mining contract process and early site works. The Integrated Owner’s Team was strengthened and a separate Project Steering Committee, reporting to the Board, was formed to provide additional oversight and expertise to support project delivery. With funding secured and the development case defined, KGL’s focus has shifted decisively from financing and construction readiness to preparing for project execution, with first copper concentrate production targeted in 2028. During FY2026, KGL strengthened its leadership and governance capability with the appointment of Sam Strohmayr as Chief Executive Officer and Lindi Deguara as an Independent Non-Executive Director. Subsequent to year end, Gerard Hutchinson joined the Board as an Independent Non-Executive Director, adding further finance, governance and executive experience. 1 UBS Global Research, copper price forecast update, reported in “UBS raises copper price target on supply deficit outlook”, Investing.com, 27 February 2026, https://www.investing.com/news/commodities-news/ubs-raises-copper-price-target-on-supply-deficit-outlook-93CH-4530640 Page 2 | KGL Resources Ltd Annual Report 2026
Page 6
Jeff Gerard Chairman Brisbane 29 September 2026 The 2026 financial year has seen an exemplary safety and environmental management record with no incidents. The company also completed a detailed self-assessment of its ESG systems and processes against the Consolidated Mining Standard Initiative (CMSI) international standard that has demonstrated significant compliance and effectiveness, even at this early stage of development. Ongoing interactions with the NT Government, Central Lands Council, local Bonya Community, local landholders, local service providers, contractors and consultants have continued to maintain strong and positive relationships. On behalf of the Board, I thank both our long term and new shareholders, employees, contractors, advisers, and stakeholders for their ongoing support during an important year for KGL. Since the financial year end KGL has been included in the S&P/ASX All Ordinaries index, effective 21 September 2026. Our priorities are clear: achieve Final Investment Decision (FID), safely progress mobilisation and construction, ensure effective environmental and cultural heritage management, disciplined project execution and capital management. In addition, we will be advancing a fully funded exploration program whilst continuing to progress Jervois towards first copper concentrate production in 2028. The year ahead is about converting FY2026’s platform into the safe, disciplined development of Jervois as Australia’s next significant ASX-listed pure-play copper producer. Page 3 | KGL Resources Ltd Annual Report 2026
Page 7
2 Post end of financial year. MILESTONES AT A GLANCE 2025 2026 JUL Integrated 3D inversion targets identified OCT A$11m placement completed NOV Lindi Deguara appointed to Board DEC / JAN Sam Strohmayr appointed / commenced as CEO 2 APR US$300m Wheaton PMPA executed 24 APR Updated BEM released 18 JUN First US$16m Wheaton tranche 29 JUN A$180m Placement book build completed 24 JUL A$120m Entitlement Offer completed FY2026 A TRANSFORMATIONAL YEAR High-Grade Jervois Project — Fully Funded2 to Production FY2026 marked a defining transition for KGL – from an exploration and development-stage company to a fully funded copper developer advancing the high-grade Jervois Project toward production. The transformation was built through key milestones that deepened our understanding of the Jervois mineral system, strengthened institutional and leadership capability, advanced the development case and secured the funding required to deliver Jervois into production. FY2026 KEY OUTCOMES 3D INVERSION POTENTIALL Y LARGER & DEEPER SYSTEM Potentially larger and deeper mineral system identi fied through integrated 3D inversion INSTITUTIONAL SUPPORT Strong institutional support for placement and strengthening shareholder base BOARD + CEO LEADERSHIP STRENGTHENED Board capability enhanced and Sam Strohmayr appointed CEO to lead KGL into project execution A$839m / 31% UPDATED DEVELOPMENT CASE BEM con firms compelling economics with significant leverage to higher copper prices ~A$689m FUNDING PACKAGE 2 Aggregate funding package established with no project debt A LARGER AND DEEPER MINERAL SYSTEM Integrated 3D inversion identifies new priority targets FULL Y FUNDED2 TO PRODUCTION Funding secured to advance Jervois through production FUNDED GROWTH BEYOND THE CURRENT MINE PLAN Exploration program to test resource growth and extend FUNDING SECURED US$300m WHEATON PMPA US$300 million cornerstone development funding secured A$300m EQUITY RAISING 2 A$300 million Equity Raising completed to fully fund development NO PROJECT DEBT Debt-free financing structure preserves balance sheet flexibility ~A$20m FUNDED EXPLORATION Exploration and drilling program funded to test growth and extension potential No project debt Copper offtake unencumbered Funding through construction, commissioning and into production Page 4 | KGL Resources Ltd Annual Report 2026 Page 5 | KGL Resources Ltd Annual Report 2026
Page 8
I was pleased to join KGL as Chief Executive Officer in January 2026 at an important point in the Company’s transition from project development to execution. Since joining, my focus has been on building the capability required to move KGL from exploration to project development and execution, and on advancing the work needed to take the Jervois Project through to FID, construction and ultimately into operations. FY2026 marked an important transition as KGL progressed Jervois from development planning and readiness towards execution. During the year, KGL advanced project enabling and readiness activities, completed the BEM, strengthened its project-delivery capability and materially advanced its understanding of the broader Jervois mineral system. With funding secured, our focus is now firmly on project execution. THE JERVOIS DEVELOPMENT CASE During FY2026, KGL completed further optimisation of the Jervois Project development plan, culminating in the release of the updated BEM in April 2026. The BEM incorporated further open-pit optimisation, improved metallurgical recovery and updated capital and operating cost assumptions. Construction capital increased from approximately A$362 million in FSU25 to A$439 million in the BEM, reflecting scope and risk-mitigation changes incorporated into the development plan. The BEM confirmed a post-tax NPV of A$839 million at an 8% discount rate, a post-tax IRR of 31% and an estimated C1 cost of US$1.65/lb, providing a strong economic foundation for development of Jervois. The BEM is based on a production plan with initial ore supply from the Bellbird and Reward open pits before progressively transitioning to underground mining at Bellbird, Reward, Rockface and Marshall. The current development case is based on an initial 10-year mine life, with average copper production of approximately 30kt per annum. CEO Operations Review ASSUMPTION UNIT BEM Mine life Y ears 10 LOM EBITDA A$m 3,226 LOM FCF (after tax) A$m 1,791 Concentrate produced (LOM) kdmt 1,070 PRODUCTION Avg. Copper LOM ktpa 30 Avg. Silver Mozpa 1.1 Avg. Gold kozpa 9.3 UNIT COSTS (NET OF BY-PRODUCT) C1 Cost US$/Ib 1.65 AISC (incl. 100% of underground capital) US$/Ib 2.51 UPFRONT CAPITAL COSTS Project construction capital A$m 439 Mining & stockpiling (incl. ~4 months of sulphide stockpiles) A$m 145 Peak funding requirement A$m 584 ECONOMIC RETURN Post-tax NPV8 A$m 839 Post-tax IRR % 31 Page 4 | KGL Resources Ltd Annual Report 2026 Page 5 | KGL Resources Ltd Annual Report 2026
Page 9
FID and commencement of the principal construction program remain targeted for H2 CY2026. The development schedule provides for approximately 18 months of construction, followed by commissioning and ramp-up, with first copper concentrate targeted in H1 CY2028 and full processing capacity expected during H2 CY2028. PROJECT DEVELOPMENT AND DELIVERY During FY2026, KGL continued to build the internal management, engineering, procurement and operational capability required to oversee development and to prepare for construction and operations. This included strengthening project controls, contractor management, cost and schedule oversight, safety, commissioning and operational readiness, supported by specialist contractors and advisers. Work also progressed across engineering, procurement, contracting, long-lead equipment planning and project readiness, advancing Jervois towards its next major decision point. With project development activities advancing, KGL is progressing Jervois towards FID and commencement of the principal construction program. CEO OPERATIONS REVIEW (CONTINUED) WORKSTREAM 2026 2027 H1 2028 H2 2028 2029+ PROJECT DEVELOPMENT ACTIVITIES MAJOR CONTRACTS / DESIGN & LONG-LEAD PROCUREMENT PRINCIPAL CONSTRUCTION PROGRAM OPEN-PIT MINING SULPHIDE ORE STOCKPILING PLANT COMMISSIONING / FIRST SULPHIDE MILL FEED FULL PROCESSING CAPACITY UNDERGROUND DEVELOPMENT 3 Post end of financial year. A$839m POST-TAX NPV8 31% POST-TAX IRR US$1.65/lb C1 COST US$10,200/t CAPITAL INTENSITY US$6.06/lb BASE-CASE COPPER PRICE KEY ECONOMICS ~A$689m AGGREGATE FUNDING US$300m WHEATON PMPA A$300m EQUITY RAISING ~A$70m LIQUIDITY BUFFER ~A$20m FUNDED EXPLORATION PROGRAM FUNDING 3 Continuing activities to decision Contracts awarded, design finalised and long-lead items secured ~4 months sulphide ore inventory ahead of commissioning Plant commissioning From 2029 Principal construction commences after FID FID H2 CY2026 Commences mid-2027 First sulphide mill feed Page 6 | KGL Resources Ltd Annual Report 2026 Page 7 | KGL Resources Ltd Annual Report 2026
Page 10
EXPLORATION AND RESOURCE GROWTH Alongside development of the current mine plan, KGL materially advanced its understanding of the broader Jervois mineral system through an Integrated 3D Inversion Modelling program across Jervois and Unca Creek, combining more than a decade of drilling knowledge with gravity, magnetic, magnetotelluric and petrophysics datasets. The integrated modelling improved targeting across the broader mineral system, increased confidence in previously recognised anomalies and identified several new priority exploration targets. The modelling provided what KGL considers its strongest geophysical evidence to date of a larger and deeper mineral system at Jervois. The next phase is focused on testing these opportunities through further geophysics work and drilling. Approximately A$20 million has been allocated to exploration and drilling across Jervois and Unca Creek, targeting near-mine resource growth, mine-life extension and potential new mining areas. Subsequent to year end, KGL commenced preparations for drilling several high-priority targets and further geophysics surveying across the Jervois and Unca Creek tenements. The current BEM does not assign value to future exploration discoveries or potential mine-life extension, meaning successful exploration represents potential upside beyond the 10-year mine life case. LOOKING AHEAD Equipped with achievements to-date, our priorities for FY2027 are clear: complete the remaining development contracts, achieve FID, commence construction and maintain disciplined execution across safety, schedule, cost and quality as Jervois progresses towards first copper concentrate in 2028. FULL Y FUNDED TO PRODUCTION Funding designed to support development, construction, commissioning and ramp-up. NO CONVENTIONAL PROJECT DEBT Funding structure avoids conventional project-debt financing. COPPER REMAINS UNENCUMBERED KGL retains exposure to copper revenues and flexibility over future offtake. LIQUIDITY THROUGH RAMP-UP Approximately A$70 million working capital and liquidity provision. GROWTH FUNDED Approximately A$20 million allocated to geophysics, drilling and analysis. The focus for the year ahead is safe delivery as we move Jervois from project development into construction and towards operations. Sam Strohmayr Chief Executive Officer CEO OPERATIONS REVIEW (CONTINUED) Page 6 | KGL Resources Ltd Annual Report 2026 Page 7 | KGL Resources Ltd Annual Report 2026
Page 11
EXPLORATION Integrating More Than a Decade of Geological Knowledge to Guide the Next Phase of Growth While FY2026 established the funding and development pathway for the current 10-year Jervois mine plan, it also materially advanced KGL’s understanding of the broader mineral system and the potential for future resource growth beyond the current development case. A Major Technical Achievement During FY2026, KGL announced the results of a major Integrated 3D Inversion Modelling program undertaken by Viridien’s Multiphysics team across the Jervois and Unca Creek exploration leases. The work incorporated considerable geological knowledge built up by KGL over more than 10 years of drilling together with extensive gravity, magnetic, magnetotelluric and petrophysics datasets. Historically, many of these datasets had been analysed independently. Advances in computing capability, geoscientific expertise and the enriched geological dataset generated through drilling and core analysis enabled the different data streams to be analysed together through joint inversion modelling. An important precursor was the 2024 structural review undertaken by Dr Warwick Crowe. That work refined KGL’s understanding of the controls on mineralisation at Jervois, including the interpretation that the crustal-scale Jervois Fault may have acted as a major pathway for mineralising fluids feeding subsidiary structures associated with the J-Fold. It also highlighted the importance of subsidiary structural systems, contrasting lithologies and reactivated shear zones in exploration targeting. Improved Resolution and Targeting Precision The integrated approach combined gravity, magnetotelluric, magnetic and petrophysical drilling data to provide improved subsurface resolution and targeting precision compared with single-parameter inversion approaches. The resulting models further delineated known zones of mineralisation, demonstrated strong correlation with existing geological data, increased confidence in previously recognised anomalies and identified several new priority exploration targets. A Potentially Larger and Deeper Mineral System Importantly, the modelling identified prominent deep-seated low-resistivity features beneath the central J-Fold and Bellbird–Rockface trend. Apparent-resistivity mapping identified features extending to greater than 5 kilometres depth, while the integrated model identified prominent conductive zones at approximately 3 kilometres depth. These responses are interpreted as potentially associated with major structurally controlled features, alteration, fluid pathways or mineralising systems associated with the J-Fold and deeper Jervois Fault architecture. They should not be interpreted as demonstrated mineralisation or Mineral Resources. KGL concluded that the study provides its strongest geophysical evidence to date that Jervois hosts a significantly larger and deeper mineral system than previously identified. Priority target corridors include the central J-Fold, a trend south of Bellbird, a parallel trend south of Rockface and the continuation of Reward South/Krak Ridge. Unlocking Growth Potential for Beyond 10 years The Integrated 3D Inversion Model provides an ongoing exploration framework rather than a static interpretation. New geophysical, drilling and geological information can be progressively incorporated to improve resolution and refine subsequent targeting. Approximately A$20 million has been allocated to a staged exploration and drilling program targeting near-mine resource growth, mine-life extension and potential new mining areas across Jervois and Unca Creek. The program will incorporate additional MT, DHEM and other geophysical work together with targeted drilling and core analysis. Subsequent to year end, KGL commenced preparations for exploratory drilling of several high-priority targets and for further MT surveying across the Jervois and Unca Creek tenements. The current BEM does not assign value to potential mine-life extension or future exploration discoveries. Successful exploration therefore represents potential upside beyond the funded 10-year development case. Exploration targets and geophysics anomalies are not Mineral Resources or Ore Reserves and there can be no certainty that exploration will result in additional resources, reserves or mine life. CEO OPERATIONS REVIEW (CONTINUED) Page 8 | KGL Resources Ltd Annual Report 2026 Page 9 | KGL Resources Ltd Annual Report 2026
Page 12
Figure 1. Horizontal slice of the joint magnetic imagery guided MT and gravity inversion model at 0.0 mRL (approximately 350 m below surface). Resistivity is displayed using the colour scale, while inverted density is represented by contour lines. Purple triangles denote MT sounding stations, and black lines indicate structural interpretations derived from magnetic data. Several anomalies have been identified within Jervois Tenement (EL25429): Area 1 is positioned directly over the F3/J-Fold axis, Area 2 defines a distinct parallel trend to Bellbird, Area 3 forms an offset parallel trend to Rockface, and Area 4 aligns closely with the Reward South trend. Figure 2. Cross section at 7492418.00mN looking north highlighting resistivity of Area 1 (J-fold centre). Page 8 | KGL Resources Ltd Annual Report 2026 Page 9 | KGL Resources Ltd Annual Report 2026
Page 13
COPPER MARKET Structural trends support the long-term copper outlook FY2026 saw strong gains in copper, gold and silver prices, providing a supportive commodity backdrop as KGL advanced the Jervois Project towards execution. CEO OPERATIONS REVIEW (CONTINUED) Page 10 | KGL Resources Ltd Annual Report 2026 Page 11 | KGL Resources Ltd Annual Report 2026
Page 14
Copper Demand — Structural Growth S&P Global forecasts global copper demand to increase by approximately 50%, from 28 million tonnes in 2025 to 42 million tonnes by 2040. Traditional copper demand continues to grow with population, urbanisation, industrialisation and rising living standards, while demand from electrification, electricity infrastructure and emerging technologies is accelerating growth. Energy transition and electricity infrastructure are forecast to be major sources of incremental demand, including renewable generation, transmission and distribution, battery storage and electric vehicles. The expansion of electricity networks is an important part of this growth. S&P Global estimates more than US$7.5 trillion of global transmission and distribution investment through 2040. EV-related copper demand is forecast to rise from 2.6 million tonnes in 2025 to 6.3 million tonnes by 2040, while data- centre-related copper demand is forecast to increase from approximately 1.1 million tonnes to 2.5 million tonnes. 50% total demand growth | >US$7.5tn grid investment | 2.6 → 6.3 Mt EV demand Copper supply — tightening and increasingly strategic Near-term market conditions are already reflecting the longer-term supply challenge. UBS forecasts a refined copper deficit of approximately 520,000 tonnes in 2026, against a backdrop of continued constraints on new and existing supply. Declining grades, ageing mines, greater mining depth and complexity, long development timelines and rising capital requirements are making replacement supply progressively more difficult and expensive. S&P Global forecasts primary mined supply peaking around 2030 without sufficient new development and expansion, contributing to a potential annual shortfall of approximately 10 million tonnes by 2040. Competition to secure and diversify copper supply chains is also intensifying. Copper recognised as a critical or strategic material by the United States, European Union and Australia, reflecting its importance to electricity infrastructure, advanced manufacturing, digital technologies and defence. Jervois — New Supply into a Tightening Market First copper concentrate from Jervois is targeted in 2028, positioning KGL to introduce new Australian copper supply into a market in which deficits are forecast to deepen and new mine development is becoming increasingly capital intensive. The BEM indicates Jervois capital intensity of approximately US$10,200/t of annual copper production capacity, compared with an average of approximately US$22,400/t across 26 global copper projects assessed by Simon et al. (2026). Jervois’ high-grade resource, relatively low capital intensity and projected operating margins position the Project well as the industry seeks to bring additional copper supply to market. 2028 first copper | ~US$10,200/t Jervois capital intensity | >US$22,400/t peer project average Precious Metals — Additional Support Gold and silver also provide meaningful by-product credits to Jervois, providing additional support to the Project’s economics. Sources: S&P Global, Copper in the Age of AI, January 2026; S&P Global Ratings; UBS CIO; Cochilco; Codelco; Simon et al., 2026; KGL June 2026 Quarterly Activities Report. Page 10 | KGL Resources Ltd Annual Report 2026 Page 11 | KGL Resources Ltd Annual Report 2026
Page 15
Reserves and Resources Table RESOURCE MATERIAL GRADE METAL Area Category Mt Copper (%) Silver (g/t) Gold (g/t) Copper (kt) Silver (Moz) Gold (koz) Open Cut Potential > 0.5% Cu Reward Measured 2.57 1.95 48.2 0.43 50.0 4.0 35.4 Indicated 1.02 1.39 37.4 0.23 14.3 1.2 7.6 Inferred 0.61 0.95 10.7 0.08 5.8 0.2 1.5 Bellbird Measured 1.23 2.53 15.1 0.14 31.2 0.6 5.6 Indicated 1.26 1.45 9.1 0.17 18.2 0.4 6.8 Inferred 1.02 1.24 10.6 0.12 12.7 0.3 4.0 Sub Total 7.72 1.71 27.2 0.25 132.1 6.7 60.9 Underground Potential > 0.8% Cu Reward Indicated 6.22 1.87 38.4 0.38 116 7.67 75.5 Inferred 4.71 1.35 18.6 0.17 63.6 2.82 25.5 Bellbird Indicated 0.35 2.26 19.0 0.14 8.0 0.22 1.6 Inferred 3.20 1.95 12.1 0.10 62.4 1.24 10.4 Rockface Indicated 3.94 2.81 24.5 0.26 110.9 3.10 32.71 Inferred 1.32 1.55 13.7 0.19 20.42 0.58 8.02 Sub Total 19.74 1.93 24.6 0.24 381.3 15.63 153.7 TOTAL 27.45 1.87 25.3 0.24 513.4 22.37 214.5 Refer to ASX announcement on 25 November 2024. * Cut-off grades: 0.5% Cu above 200 mRL (~150 m below surface) and 0.8% Cu below 200 mRL. GRADE METAL RESERVES Mt CuEq (%) Cu (%) Au (g/t) Ag (g/t) Cu (kt) Au (koz) Ag (Moz) Reward Open Pit Proven 2.68 2.19 1.71 0.39 41.96 45.7 33.6 3.6 Probable 2.2 1.54 1.19 0.22 36.3 26.1 15.6 2.6 Bellbird Open Pit Proven 1.51 2.07 1.94 0.11 11.59 29.2 5.3 0.6 Probable 0.48 1.1 1.04 0.06 5.55 5 0.9 0.1 Rockface Underground Proven - - - - - - - - Probable 2.96 2.74 2.55 0.18 16.58 75.4 17.0 1.6 Bellbird Underground Proven - - - - - - - - Probable 0.37 1.77 1.65 0.08 13.23 6.0 1.0 0.2 Reward Underground Proven - - - - - - - - Probable 2.48 2.28 1.88 0.49 25.77 46.7 38.8 2.1 Marshall Underground Proven - - - - - - - - Probable 1.71 1.51 1.16 0.19 39.52 19.8 10.2 2.2 Sub-total 1.71 1.51 1.16 0.19 39.52 19.8 10.2 2.2 Total Proven 4.19 2.15 1.79 0.29 31.03 74.9 39 4.2 Total Probable 10.19 2.05 1.76 0.25 26.27 179 83.4 8.6 TOTAL RESERVE 14.38 2.08 1.77 0.26 27.66 254 122.4 12.8 Refer to ASX announcement on 10 February 2025. * Quantities and grades in the above table may not add exactly due to rounding or weighting. The ore reserves reported are contained within the mineral resources. Page 12 | KGL Resources Ltd Annual Report 2026 Page 13 | KGL Resources Ltd Annual Report 2026
Page 16
Competent person’s statement The information in this report that relates to a Production Target and the forecast financial information derived from the production was first released to the market on 24 April 2026. KGL confirms that all the material assumptions underpinning the production target and forecast financial information derived from the production target continue to apply and have not materially changed. The information relating to 3D Inversion results was originally reported on 30 July 2025. The Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The information in this report that relates to the Jervois Mineral Resources Estimates was first released to the market on 25 November 2024 and prepared in accordance with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. The information in this report that relates to the Jervois Ore Reserves Estimate was first released to the market on 10 February 2025 and prepared in accordance with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Page 12 | KGL Resources Ltd Annual Report 2026 Page 13 | KGL Resources Ltd Annual Report 2026
Page 17
TENEMENT NUMBER PROJECT BENEFICIAL HOLDING EXPIRY DATE ML 30180 Jervois Project, Northern Territory 100% 27/01/2034 ML 30182 Jervois Project, Northern Territory 100% 25/03/2034 ML 30829 Jervois Project, Northern Territory 100% 17/08/2032 ML 32277 Jervois Project, Northern Territory 100% 17/08/2032 EL 25429 Jervois Project, Northern Territory 100% 01/02/2027 EL28082 Unca Creek, Northern Territory 100% 29/12/2027 EL 30242 Mt Cornish, Northern Territory 100% 25/11/2027 EL 28340 Yambah, Northern Territory 100% 03/07/2027 Tenement Holdings The Company’s current tenement holdings cover over 252km2 of Jervois Exploration Leases, 37.9km2 of Jervois Exploration Licences and 72.7km2 of Unca Creek Exploration Licences. Page 14 | KGL Resources Ltd Annual Report 2026 Page 15 | KGL Resources Ltd Annual Report 2026
Page 18
JERVOIS PROJECT TENEMENTS MAP Page 14 | KGL Resources Ltd Annual Report 2026 Page 15 | KGL Resources Ltd Annual Report 2026
Page 19
Sustainability Environmental, social and governance (ESG) reporting and Indigenous relations continued to be key focus areas for KGL during the reporting period. The Company further strengthened its commitment to health and safety through ongoing monitoring, continuous improvement initiatives and the maintenance of effective operational controls across its activities. The health, safety and wellbeing of KGL’s workforce remained a core priority throughout the year. KGL’s Risk Management Plan as required under the NT Work Health and Safety Regulations 2011 has also been approved by NT Worksafe. KGL continued its engagement with key local stakeholders through regular consultation and site visits, enabling the Company to assess and respond to material sustainability matters affecting the local community. These activities will support the further refinement of the Company’s sustainability objectives, targets and performance metrics. The Company maintained its commitment to supporting local employment and economic development through the engagement of local personnel, contractors and suppliers wherever practicable. During the reporting period, KGL undertook an internal assessment of its activities, management systems and existing practices against the requirements of the Consolidated Mining Standard Initiative (CMSI). The assessment provides a structured evaluation of the Company’s performance across a broad range of environmental, social and governance criteria, including environmental stewardship, Indigenous and community relations, workforce wellbeing, business integrity and governance. The review identified areas of strong alignment as well as opportunities for further enhancement, with the findings informing the ongoing development of KGL’s policies, procedures, ESG framework, performance objectives and management plans. This process supports the Company’s commitment to continuous improvement and alignment with emerging global expectations for responsible mining practices. KGL’s approach to environmental management, progressive rehabilitation and regulatory compliance remained aligned with its approved Mining Management Plans. Environmental and sustainability risks were subject to regular review and assessment throughout the year. No environmental, social, economic, health or safety risks were identified with an extreme initial or residual risk rating during the reporting period. Progress was made in further integrating water efficiency objectives into project planning, with optimisation and water reuse measures incorporated into detailed project design, construction planning and future operating strategies. As KGL progresses the Jervois Project, the Company remains focused on enhancing its ESG performance, strengthening stakeholder relationships and embedding sustainable practices across all aspects of project development and future operations. Page 16 | KGL Resources Ltd Annual Report 2026 Page 17 | KGL Resources Ltd Annual Report 2026
Page 20
Corporate Governance Statement as at 30 June 2026 The Company is required to disclose the extent to which it has followed the ASX Corporate Governance Principles and Recommendations (4th Edition). This information is set out in the Company’s Corporate Governance Statement listed on the Company’s Website www.kglresources.com.au/corporate-governance. Page 16 | KGL Resources Ltd Annual Report 2026 Page 17 | KGL Resources Ltd Annual Report 2026
Page 21
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 Page 18 | KGL Resources Ltd Annual Report 2026
Page 22
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 20 Directors’ R eport 41 Competent P erson’s Statement 42 A uditor’s Independence Declaration 43 Statement of Pro fi t or Loss and Other Comprehensive Income 44 Statement of Financial P osition 45 Statement of Cash Flows 46 Statement of Changes in Equity 47 Notes to the Financial Statements 76 Directors’ Declaration 77 Independent A uditor’s Report KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ABN 52 082 658 080 Financial Report FOR THE YEAR ENDED 30 JUNE 2026 Page 19 | KGL Resources Ltd Annual Report 2026
Page 23
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 REVIEW OF OPERATIONS FY2026 A Transformational Y ear KGL’s transformation was driven by technical, leadership, development and funding milestones. The company has deepened its understanding of the Jervois mineral system, expanded its shareholder base, strengthened governance, advanced project readiness, updated its BEM, executed a PMPA with Wheaton and completed a $300 million Equity Raising shortly after year end. In July 2025, the resulting integrated 3D inversion modelling combined with more than a decade of extensive drilling knowledge and geophysical datasets have provided strong evidence of a larger, deeper Jervois mineral system. This sets up the platform to identify new priority targets for future exploration discoveries or potential extensions to the initial 10-year mine life. In the midst of progressing the project enabling and readiness work funded by an $11 million Placement offer in November 2025, leadership was strengthened by the appointments of Lindi Deguara as an Independent Non-Executive Director and Sam Strohmayr as Chief Executive Officer, commencing in November 2025 and January 2026 respectively. The transformation milestones continued in April 2026 when KGL executed the US$300 million PMPA with Wheaton. The PMPA reaffirmed the Jervois Project’s economic viability and further recognised its value of gold and silver. The BEM was released shortly after the PMPA, confirming a post-tax NPV of $839 million at an 8% discount rate, a 31% post-tax IRR, C1 costs of US$1.65/lb and average copper production of about 30kt per annum. On 18 June 2026, KGL received the first early deposit payment of US$16 million from Wheaton. This has enabled critical-path engineering, procurement of long-lead items and further project development preparation activities to continue. On 25 June 2026, KGL launched the $300 million equity raising to complete the funding package for the development of the Jervois Project. Together with the PMPA, it established an approximately A$689 million funding package to advance Jervois through construction, commissioning and production without conventional project debt, leaving copper revenues unencumbered. The equity raising attracted substantial support from KGL’s existing shareholder base and new domestic and international institutional investors. KGL’s largest shareholder supported the raising through its entitlement and shortfall arrangements, while Wheaton invested $33.5 million underpinning its confidence in the project. The equity raising was completed after shareholder approval was obtained at the 30 July 2026 Extraordinary General Meeting. The raise includes a $70m liquidity buffer strengthening KGL’s balance sheet and a $20 million allocation for exploration and drilling to support near-mine resource growth, mine-life extension and potential new mining areas across Jervois and Unca Creek tenements. The BEM released on 24 April 2026, was an update from the previous Feasibility Study Update (FSU25) released in February 2025. The BEM incorporated further open-pit optimisation improved metallurgical recovery, updated market inputs and cost escalation and additional project assessment. Construction capital increased from approximately A$362 million in FSU25 to A$439 million in the BEM inclusive of scope/risk-mitigation changes. Directors’ Report Y our directors present their report on the consolidated entity (Group) consisting of KGL Resources Limited (KGL, Company) and the entities it controlled at the end of, or during, the year ended 30 June 2026. All amounts are in Australian dollars unless otherwise stated. DIRECTORS The following persons were directors of KGL Resources Limited during the whole of the financial year and up to the date of this report, unless otherwise stated. DIRECTOR ROLE CHANGES IN TENURE Current Directors Mr J. Gerard Chairman Mr F. Purnamasidi Non-Executive Director Mr B. Gell Independent Non-Executive Director Ms L. Deguara Independent Non-Executive Director Appointed 28 November 2025 Mr G. Hutchinson Independent Non-Executive Director Appointed 28 August 2026 Directors’ Report Page 20 | KGL Resources Ltd Annual Report 2026
Page 24
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 The resulting BEM confirmed the attractive economics supporting the advancement of the Jervois Project. KGL in FY2026 has also continued to build its leadership, engineering, procurement and operational capability required to deliver Jervois and transition into construction and operations. The appointment of Lindi Deguara as an Independent Non-Executive Director and Sam Strohmayr as Chief Executive Officer strengthened the Company’s governance, operating and major-project expertise as it moved from financing and planning into execution. Subsequent to the end of the financial year, the Company has also appointed Mr Gerard Hutchinson as an Independent Non-Executive Director who will Chair the Company’s re-formed Audit and Risk Committee. Internal capability is being scaled across cost and schedule management, project controls, contractor oversight, safety, commissioning and operational readiness, supported by specialist contractors and advisers where appropriate. Enabling work completed during FY2026 materially strengthened Jervois’ technical definition and updated current industry costs and execution conditions. With funding secured and development activities advancing, KGL is preparing Jervois for its next critical milestone: FID and commencement of the principal construction program. FID is the formal decision gate between pre- construction preparatory work and full project execution. The schedule provides for approximately 18 months of construction, including six months of commissioning and ramp-up. First copper concentrate is targeted for H1 CY2028, with full processing capacity expected in H2 CY2028. KGL also in FY2026 reported the results of the Integrated 3D Inversion Modelling analysis completed by Viridien’s Multiphysics team across the Jervois and Unca Creek exploration tenements. The program integrated more than a decade of drilling-derived geological knowledge with extensive gravity, magnetic, magnetotelluric and petrophysical datasets. Historically assessed as separate datasets, these information streams could now be analysed together through joint inversion modelling, supported by advances in computing, geoscientific capability and the richer geological dataset generated from drilling and core analysis. COMPARISON (BEFORE FINANCING) FSU FEB-25 BEM APR-26 CHANGE Copper US$/lb 4.58 6.06 32% Silver US$/0z 32.62 80.75 148% Gold US$/oz 2,667 4,834 81% Currency Exchange Rate USD:AUD 0.64 0.717 12% Contained Metal in Concentrate kt Cu Eq 301 352 17% Sales Revenue (payable) A$m (real) 4,437 6,457 46% Direct Operating Costs A$m (real) 2,330 2,852 22% Royalty A$m (real) 251 379 51% EBITDA (A$m) A$m (real) 1,859 3,226 74% NPV (8% real, before tax) A$m (real) 601 1,226 104% NPV (8% real, after tax) A$m (real) 405 839 107% IRR (pre tax) % 30% 37% 23% IRR (post tax) % 24% 31% 29% C1 Costs (net of byproducts) US$/lb 2.19 1.65 (0.54) Construction Capital A$m (real) 362 439 21% Peak Funding (A$m) A$m (real) 497 584 18% Simple Payback Y ears 3.4 3.1 (9%) The BEM commodity and foreign-exchange assumptions were US$6.06/lb copper, US$80.75/oz silver, US$4,834/oz gold and AUD/USD 0.717. Life-of-mine post-tax-free cash flow is estimated at approximately $1.79 billion. The BEM is based on the current development plan and does not assign value to future exploration discoveries or potential extensions to the initial 10-year mine life. The funded exploration program therefore represents potential upside beyond the current BEM development case. A comparison between FSU25 and BEM is tabled below. REVIEW OF OPERATIONS (CONTINUED) FY2026 A Transformational Y ear (continued) Directors’ Report Page 21 | KGL Resources Ltd Annual Report 2026
Page 25
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 REVIEW OF OPERATIONS (CONTINUED) FY2026 A Transformational Y ear (continued) The modelling also incorporated insights from Dr Warwick Crowe’s 2024 structural review, which refined KGL’s understanding of the controls on mineralisation. The review identified the crustal-scale Jervois Fault as a potential pathway for mineralising fluids feeding subsidiary structures associated with the J-Fold, and highlighted the exploration significance of subsidiary structures, contrasting lithologies and reactivated shear zones. The Integrated 3D analysis delivered a high-priority exploration blueprint for near-mine resource growth, mine-life extension and potential new mining areas across the Jervois and Unca Creek tenements. The $20 million exploration program will be based on this. MATERIAL BUSINESS RISKS The Group’s operations including exploration and mining will be subject to the normal risks of mining and any revenues will be subject to numerous factors beyond the Group’s control. The material business risks that may affect the Group are summarised below. Exploration risk The success of the Group depends on the delineation of economically mineable reserves and resources, access to required development capital, movement in the price of commodities, securing and maintaining title to the Group’s exploration and mining tenements and obtaining all consents and approvals necessary for the conduct of its exploration activities. Exploration on the Group’s existing tenements may be unsuccessful, resulting in a reduction in the value of those tenements, diminution in the cash reserves of the Group and possible relinquishment of the tenements. The exploration costs of the Group are based on certain assumptions with respect to the method and timing of exploration. By their nature, these estimates and assumptions are subject to significant uncertainties and, accordingly, the actual costs may materially differ from these estimates and assumptions. Accordingly, no assurance can be given that the cost estimates and the underlying assumptions will be realised in practice, which may materially adversely affect the Group’s viability. If the level of operating expenditure required is higher than expected, the financial position of the Group may be adversely affected. The Group may also experience unexpected shortages or increases in the costs of consumables, spare parts, plant and equipment. Feasibility and development risks It may not always be possible for the Group to exploit successful discoveries which may be made in areas in which the Group has an interest. Such exploitation would involve obtaining the necessary licences or clearances from relevant authorities and or stakeholders that may require conditions to be satisfied and/or the exercise of discretions by such authorities. It may or may not be possible for such conditions to be satisfied. The Group continues to assess the economic viability of a potential mine through completion of FID works, including contract negotiations being undertaken in 2026 aimed at reducing development risks for the Jervois Project. There is a risk, even if satisfactory contractual arrangements are put in place, the Jervois Project may not be successfully developed for commercial and/or financial reasons. Regulatory risk The Group’s operations are subject to various Commonwealth, State and local laws and plans, including those relating to mining, prospecting, development permit and licence requirements, industrial relations, environment, land use, royalties, water, native title and cultural heritage, mine safety and occupational health. Approvals, licences and permits required to comply with such rules are subject to the discretion of the applicable government officials. No assurance can be given that the Group will be successful in obtaining or maintaining such approvals, licences and permits in full force and effect without modification or revocation. To the extent such approvals are required and not retained or obtained in a timely manner or at all, the Group may be curtailed or prohibited from continuing or proceeding with production and exploration. The Group’s business and results of operations could be adversely affected if applications lodged for exploration licences are not granted. Mining and exploration tenements are subject to periodic renewal. The renewal of the term of a granted tenement is also subject to the discretion of the relevant Minister. Renewal conditions may include increased expenditure and work commitments or compulsory relinquishment of areas of the tenements comprising the Group’s projects. The imposition of new conditions, or the inability to meet those conditions, may adversely affect the operations, financial position and/or performance of the Group. It is also possible that, in relation to tenements which the Group has an interest in or will in the future acquire such an interest in, there may be areas over which legitimate common law native title rights of Aboriginal Australians exist. If native title rights do exist, the ability of the Group to gain access to tenements (through obtaining consent of any relevant landowner), or to progress from the exploration phase to the development and mining phases of operations, may be affected. The Group has a registered Indigenous Land Use Agreement with the traditional owners for its Jervois Project. Directors’ Report Page 22 | KGL Resources Ltd Annual Report 2026
Page 26
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MATERIAL BUSINESS RISKS (CONTINUED) Occupational health and safety The Company’s operations and business activities are subject to a variety of health and safety laws and regulations which are formulated to improve and protect the safety and health of employees. The Company’s employees are at risk of workplace accidents and incidents given the nature of the Company’s exploration and development activities (and especially if these activities progress to mining activities). In the event that an employee is injured in the course of their employment, or the Company fails to comply with applicable requirements, the Company may be liable for penalties or damages under relevant work health and safety legislation, including under workers’ compensation claims, related common law claims and potential occupational health and safety prosecutions. This has the potential to harm both the reputation and financial performance of the Company. Further, the production processes used in conducting any of its future mining activities can be hazardous. The Company has, and intends to maintain, a range of workplace practices, procedures and policies which seek to provide a safe and healthy working environment for its employees, visitors and the community. Limited operating history of the group The Group has limited operating history on which it can base an evaluation of its future prospects. If the Group’s business model does not prove to be profitable, investors may lose their investment. The Group’s historical financial information is of limited value because of the Group’s lack of operating history and the emerging nature of its business. The prospects of the Group must be considered in the light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly in the mineral exploration sector, which has a high level of inherent uncertainty. Key personnel In formulating its exploration programs, feasibility studies and development strategies, the Group relies to a significant extent upon the experience and expertise of the directors and management. A number of key personnel are important to attaining the business goals of the Group. One or more of these key employees could leave their employment, and this may adversely affect the ability of the Group to conduct its business and, accordingly, affect the financial performance of the Group and its share price. Recruiting and retaining qualified personnel is important to the Group’s success. The number of persons skilled in the exploration and development of mining properties is limited and competition for such persons is strong. The loss of any of the Company’s key employees, or the inability to recruit relevant personnel, as needed, may adversely affect the ability of the Company to conduct its business and, accordingly, affect the Company’s business, financial performance, results of future operations and its share price. Mineral Resource and Ore reserve estimate risk Mineral resource and Ore Reserve estimates are expressions of judgement based on knowledge, experience and industry practice. Estimates publicly reported by the Company were appropriate when made but may change significantly or become uncertain when new information becomes available with respect to the Company’s exploration, research, testing and engineering activities and investigations conducted over the life of a project. In addition, mineral resource and reserve estimates are necessarily imprecise and depend to some extent on interpretations, which may ultimately prove to be inaccurate and require adjustment. Adjustments to resource and reserve estimates could affect the Company’s future plans and ultimately its financial performance and share price. Copper, silver and gold price fluctuations, as well as increased production costs or reduced throughput and/ or recovery rates may render Mineral Resources containing relatively lower grades uneconomic and may materially adversely affect the Mineral Resource and Ore Reserve estimates. If the Company’s Mineral Resource and Ore Reserve estimates overstate actual outcomes, it may adversely affect the Company’s business and operations, financial condition, share price, and prospects. Directors’ Report Page 23 | KGL Resources Ltd Annual Report 2026
Page 27
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MATERIAL BUSINESS RISKS (CONTINUED) Metallurgy Risk Metallurgical testwork is used to develop the mineral processing required to convert ore into final products. Scale up, technology and materials handling risks remain as the Company, subject to making an FID on the Jervois Project, moves from development to commissioning and production. Product recoveries are dependent upon the mineral processing, and by their nature contain elements of significant risk such as: • developing and identifying mineral processing processes through testwork to produce a saleable product; • scale-up and design of processes into a commercial flowsheet based on laboratory and pilot scale testwork results; • the representative nature of the samples used for the metallurgical testwork of the ore that is mined for processing over the life of mine; • developing an economic process route to produce a saleable product; and • changes in mineralogy in the ore deposit resulting in inconsistent product recovery, adversely affecting the economic viability of the Jervois Project. Environmental risk The operations and activities of the Group are subject to the environmental laws and regulations of Australia. As with most exploration projects and mining operations, the Group’s operations and activities are expected to have an impact on the environment, particularly as advanced exploration or mine development proceeds. The Group attempts to conduct its operations and activities to the highest standard of environmental obligation, including compliance with all environmental laws and regulations. The Group is unable to predict the effect of additional environmental laws and regulations which may come into effect in the future, including whether any such laws or regulations would materially increase the Group’s cost of doing business or affect its operations in any area. However, there can be no assurances that new environmental laws, regulations or stricter enforcement policies, once implemented, will not oblige the Group to incur significant expenses and undertake significant investments which could have a material adverse effect on the Group’s business, financial condition and performance. Precious Metals Purchase Agreement (PMPA) As announced to the ASX on 2 April 2026, the Company entered into a PMPA totalling US$300 million with Wheaton, a wholly owned subsidiary of Wheaton Precious Metals Corp. Under the PMPA, Wheaton will make available US$275 million via an upfront payment and US$25 million as a contingent cost overrun facility. As at the date of this report, Wheaton has made available US$16 million of the Stream Upfront Consideration to the Company. The Company receiving the balance of the Stream Upfront Consideration, being US$259 million, is subject to the Company satisfying certain conditions, including: • ongoing compliance with customary working capital testing; • achievement of minimum expenditure and construction milestones relative to the agreed construction timeline; • appointment of the open pit mining contractor, as well as execution of other material development and construction contracts; • the provision of ongoing sustainability reporting; • receipt and maintenance of FIRB Approval; and • the Company satisfying Wheaton that it has raised all required equity and secured additional financing necessary to complete construction of the Jervois Project. Baseline Production Targets, Forecast Financial Performance and Project Cost Risk Profile The ability of the Company to achieve the recovery and production targets, forecast financial outputs and/ or meet operating and capital expenditure estimates as disclosed in the Company’s BEM relevant to the Jervois Project, including as updated for certainty around its funding initiatives (see ASX announcements dated 24 April 2026 BEM), is subject to a number of factors and cannot be assured. Production targets, recovery targets, project valuations and operating and capital expenditure estimations are estimates based on assumptions and contingencies which are subject to change as operational performance and market conditions change or other unexpected events arise. There is no certainty that the assumptions and contingencies will prove to be correct or that the range of outcomes indicated will be achieved and, accordingly, no assurance can be given that any targets, estimates, and any underlying assumptions (including those disclosed in the previously mentioned ASX announcements) will be realised in practice, which may materially and adversely affect the Company’s viability. Directors’ Report Page 24 | KGL Resources Ltd Annual Report 2026
Page 28
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MATERIAL BUSINESS RISKS (CONTINUED) Baseline Production Targets, Forecasted Financial Performance and Project Cost Risk Profile (continued) If the Company proceeds to making an FID on the Jervois Project, any future mining activities, as with any other mining operations, are subject to a number of uncertainties, including in relation to ore tonnes, grade, metallurgical recovery, actual realised values and grades of stockpiles, ground conditions, operational environment, continued funding for development, regulatory changes, weather, accidents, difficulties in operating plant and equipment and other unforeseen circumstances such as unplanned mechanical failure of plant or equipment. No assurance can be given that estimates previously disclosed will be achieved. Availability of equipment and contractors Appropriate equipment, including drill rigs, can be in short supply. There is also high demand for skilled contractors providing other services to the mining industry and other projects. Current economic conditions, global and domestic, have only served to exacerbate these issues. Consequently, there is a risk that the Group may not be able to source all the equipment and contractors required to fulfil its proposed activities. There is also a risk that hired contractors may underperform or that equipment may malfunction, either of which may affect the progress of the Group’s activities. The availability of equipment, material and contractors is also a key consideration of the Company’s board of directors in relation to the timing of the FID. Construction Risk Subject to FID, the Group will undertake the construction and development of the Jervois Project. Risks associated with this substantial development in a remote location may include schedule delays, cost escalation, contractor performance issues, and or technical failures, which can materially affect project economics and shareholder value. Tenure Risk The tenements comprising the Company’s projects are granted under and governed by the laws of the Northern Territory and are granted subject to conditions, including minimum annual expenditure commitments and reporting commitments. Similar conditions may be applied to future tenements acquired by the Company. Failure to comply with these conditions may result in forfeiture of the Company’s tenements. Further, the Company’s tenements (and any additional future tenements held by the Company) are subject to periodic renewal. The renewal of the term of a granted tenement is also subject to the discretion of the relevant Minister. New renewal conditions may also be imposed, including increased expenditure and work commitments or compulsory relinquishment of areas of the tenements comprising the Company’s projects. The imposition of new conditions or the inability to meet those conditions may adversely affect the operations, financial position and performance of the Company. It is also possible that, in relation to tenements which the Company has an interest in or will in the future acquire such an interest in, there may be areas over which legitimate common law native title rights of Aboriginal Australians exist. If native title rights do exist, the ability of the Company to gain access to tenements (through obtaining consent of any relevant landowner), or to progress from the exploration phase to the development and mining phases of operations, may be affected. Currently, the Company has a registered Indigenous Land Use Agreement with the Central Land Council, who represents the traditional owners for the land upon which the Jervois Project is based. Approval and Permitting Risks The Company’s operations are subject to various Commonwealth, Territory and local laws and plans, including those relating to mining, prospecting, development permit and licence requirements, industrial relations, environment, land use, royalties, water, native title and cultural heritage, mine safety and occupational health. Approvals, licences, and permits required to comply with such rules are subject to the discretion of the applicable government officials. Any material adverse changes in government policies or legislation in the Northern Territory and Australia that affect mining, processing, development and mineral exploration activities, income tax laws, royalty regulations, government subsidies and environmental issues may affect the viability and profitability of the Jervois Project. No assurance can be given that new rules and regulations will not be enacted or that existing rules will not be applied in a manner which could adversely impact the Company’s mineral properties. No assurance can be given that the Company will be successful in maintaining such key approvals, licences and permits in full force and effect without modification or revocation. A delay or failure to obtain or maintain or amend existing permits in order to support the Company’s ongoing operations may affect the Company’s development schedule or ability to continue the operations. The Company’s business and results of operations could be adversely affected if applications lodged for exploration licences are not granted. Directors’ Report Page 25 | KGL Resources Ltd Annual Report 2026
Page 29
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MATERIAL BUSINESS RISKS (CONTINUED) Fuel Access Risk The development of, and ultimate production from, the Jervois Project will be dependent on a reliable supply of energy and fuel. Any disruption to fuel or energy supply arising from geopolitical conflicts, natural disasters, regulatory intervention (including the impost of tariffs or export controls) or other causes, may adversely affect the Company’s ability to bring the Jervois Project into commercial production. The Company notes that the Company’s BEM is based on a standalone fuel price assumption which has been selected with regard to increased global fuel prices observed during the first half of 2026 (as a result of ongoing conflict in the Middle East). Despite this, fuel and energy prices continue to be subject to significant volatility driven by global crude oil prices, currency fluctuations, regulatory changes, global economic conditions and global conflicts (including the ongoing conflict in the Middle East and associated disruption to shipping routes and fuel supply). A sustained increase in fuel and energy costs could increase development expenses and supply-chain costs, adversely affecting the Company’s operational and financial performance. FID Delay Risk FID delay can occur due to a number of factors, including financing issues, market demand, third party consents and regulatory approvals. There are a variety of factors beyond the Company’s control which may delay achieving an FID for the Jervois Project, for example, ongoing inflationary pressure resulting in a need to regularly review estimated construction costs for anticipated increases. Delays in FID can, in turn, result in cost escalations due to inflationary pressure and supply chain disruptions. Delays in FID may also jeopardise the availability of long lead items, causing further delays. Any material delays in achieving FID may also adversely affect the Company’s ability to receive the total Stream Upfront Consideration and trigger adjustments to the Company’s scheduled delivery obligations under the PMPA. Such adverse effects may change the economics of the Jervois Project (as presented in the Company’s BEM) which can, in turn, have a material adverse effect on its share price and require interim equity funding to support the Company’s ongoing operations until the Jervois Project is successfully commissioned. Fluctuations in copper price and Australian dollar exchange rate As the Company’s potential earnings will be largely derived from the sale of mineral commodities, the Company’s future revenues and cash flows will be impacted by changes in the prices and available markets of these commodities. The copper mining industry is competitive. There can be no assurance that copper, silver and gold prices will be such that the Company can mine its deposits at a profit. Copper, silver and gold prices fluctuate due to a variety of factors outside of the Company’s control, including supply and demand fundamentals, international economic and geopolitical conditions, expectations of inflation, currency exchange fluctuations, interest rates, global or regional consumption patterns and speculative activities. Furthermore, the international prices of most commodities are denominated in United States dollars while the Company’s cost base will be in Australian dollars. Consequently, changes in the Australian dollar exchange rate will impact on the Company’s earnings. As with commodity prices, exchange rates are affected by a variety of factors beyond the Company’s control including, international markets, demand and supply of capital and currencies, forward trading activities, inflation, interest rates and Australian and global economic and geopolitical conditions. Climate change risk The operations and activities of the Group are subject to changes in local or international compliance regulations related to climate change mitigation efforts, specific taxation or penalties for carbon emissions or environmental damage, and other possible restraints on industry that may further impact the Group and its profitability. While the Group will endeavour to manage these risks and limit any consequential impacts, there can be no guarantee that the Group will not be impacted by these occurrences. Climate change may also cause certain physical and environmental risks that cannot be predicted by the Group, including events such as increased severity of weather patterns, incidence of extreme weather events and longer-term physical risks such as shifting climate patterns, drought and water supply. All these risks associated with climate change may significantly change the industry in which the Group operates. The Company is working proactively to increase the level of renewable energy penetration at its Jervois Project and is considering a range of technologies that could be applied to the Jervois Project for the benefit of all stakeholders. Page 26 | KGL Resources Ltd Annual Report 2026
Page 30
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MATERIAL BUSINESS RISKS (CONTINUED) Macro-economic risks In 2026, the world continues to experience global supply chain disruptions, and labour and equipment shortages. Inflationary pressures for appropriately skilled labour, oil and capital items are being seen across many industries, including the mining industry, and the recent geopolitical tensions across a number of areas worldwide (including the ongoing conflict between Ukraine and Russia, and the Iranian war and disruption in the Strait of Hormuz) may also continue to adversely affect capital markets and cause spikes in materials prices, including diesel prices. SHARES UNDER PERFORMANCE RIGHTS At the date of this report, the unissued ordinary shares of the Company under Performance Rights are as follows: ISSUE DATE EXPIRY DATE EXERCISE PRICE NUMBER OF RIGHTS Performance rights offered 28 April 2026 28 April 2029 - 1,250,000 During the year ended 30 June 2026, the Company granted 1,250,000 Performance Rights. DIVIDENDS No dividends in respect of the current year have been paid, declared or recommended for payment. ENVIRONMENTAL REGULATION The Group’s operations in the Northern Territory are subject to significant environmental regulations under Northern Territory legislation. The Group is also subject to certain environmental obligations under the Commonwealth Native Title Act 1993. There have been no breaches by the Company or its subsidiaries. INDEMNITY AND INSURANCE OF DIRECTORS AND OFFICERS The Company has entered into Deeds of Access, Insurance and Indemnity with each of the directors, senior executives and the company secretary, indemnifying them against certain liabilities and costs to the extent permitted by law. The Company has also agreed to pay a premium in respect of a contract insuring the directors and officers of the Company. Full details of the cover and premium are not disclosed in this report as the insurance policy prohibits their disclosure. NON-AUDIT SERVICES No amounts have been paid or are payable to the auditor for non-audit services provided during the financial year. Refer to Note 25 to the financial statements for further information on the remuneration of auditors. OFFICERS OF THE COMPANY WHO ARE FORMER AUDIT PARTNERS OF BDO AUDIT PTY LTD There are no officers of the Company who are former audit partners of BDO Audit Pty Ltd. PROCEEDINGS ON BEHALF OF THE COMPANY No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001. Page 27 | KGL Resources Ltd Annual Report 2026
Page 31
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MR JEFFERY GERARD GRADUATE OF CAPRICORNIA INSTITUTE OF ADVANCED EDUCATION (CIAE) GRADUATE OF AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS (GAICD) NON-EXECUTIVE CHAIRMAN: Resumed 19 January 2026 EXECUTIVE CHAIRMAN: Appointed 21 January 2025 INDEPENDENT NON-EXECUTIVE CHAIRMAN: Appointed 31 March 2024 INDEPENDENT NON-EXECUTIVE DIRECTOR: Appointed 31 May 2022 Mr Gerard has over 40 years’ experience in the resources industry, both domestically and abroad, in various technical, operational, commercial and executive management roles. His wide-ranging career has included roles as Strategy and Global Business Development Executive for Xstrata Coal, Chief Operating Officer for Xstrata Coal’s operations in the Americas and Xstrata Coal South Africa. Following Glencore’s 2013 merger with Xstrata, Mr Gerard served as Chief Development Officer for Glencore Coal and then as CEO of TSX-listed Katanga Mining, a subsidiary of Glencore, and as head of Glencore’s assets in the Democratic Republic of Congo. Following his retirement from Glencore in 2020, Mr Gerard established a management consulting business providing services to domestic and international companies in the areas of business strategy, technical evaluations, funding, investment and divestments. Special Responsibilities: None. Other Current Directorships of ASX Listed Companies: None. Former Directorships of ASX Listed Companies in Last Three Y ears:Australian Pacific Coal Limited – resigned 30 June 2025. Interests in Shares and Options: 6,900,717 ordinary shares. OTHER CORPORATE INFORMATION Principal Activity The principal activity of the Group during the financial year was the exploration and development of the Jervois Project in the Northern Territory. Employees The Group had 14 employees as of 30 June 2026 (30 Jun 2025: 16 employees). INFORMATION ON DIRECTORS The following information is current as at the date of this report. Directors’ Report Page 28 | KGL Resources Ltd Annual Report 2026
Page 32
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MR FERDIAN PURNAMASIDI BACHELOR OF COMMERCE DIPLOMA OF BUSINESS MANAGEMENT NON-EXECUTIVE DIRECTOR: Appointed 26 April 2016 Mr Purnamasidi is an executive at the Salim Group and a representative for KMP Investments Pte Ltd, a subsidiary of Salim Group. He is responsible for managing the Salim Group’s investments in Australia. The Salim Group is a diversified multinational business group which owns various interests in the mining, food products, agribusiness, retail, automobile, banking and financial and property sectors. Mr Purnamasidi is the Managing Director of Mach Energy Australia Pty Ltd and Rex Minerals Pty Ltd. Mach Energy owns the world-class Mt Pleasant coal operation in the Hunter Valley region, New South Wales whilst Rex Minerals is undertaking the development of the Hillside Copper Project in South Australia. Special Responsibilities: None. Other Current Directorships of ASX Listed Companies: None. Former Directorships of ASX Listed Companies in Last Three Y ears:None. Interests in Shares and Options: 3,472,097 ordinary shares. INFORMATION ON DIRECTORS (CONTINUED) MR BRIAN GELL INDEPENDENT NON-EXECUTIVE DIRECTOR: Appointed 4 April 2023 Mr Gell has over 40 years’ experience in the construction industry having delivered projects in civil and municipal infrastructure, ferrous and non-ferrous metal minerals processing, petrochemical, mining and industrial sectors. His responsibilities have included project management, business development, contract negotiations and leading business units charged with delivery of mineral processing plants and related facilities. Mr Gell’s career has included roles as General Manager for Mining and Metals – Eastern Region for Ausenco, Director of Projects for QCoal as well as positions with Leighton Asia and Leighton Contractors. In 2014, Mr Gell established a company providing management advisory services in the areas of civil infrastructure, mining infrastructure, contract mining and process plant design, construction, commissioning and operations. Special Responsibilities: None. Other Current Directorships of ASX Listed Companies: None. Former Directorships of ASX Listed Companies in Last Three Y ears:None. Interests in Shares and Options: None. Directors’ Report Page 29 | KGL Resources Ltd Annual Report 2026
Page 33
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MS LINDI DEGUARA BACHELOR OF LAWS (HONS) BACHELOR OF CREATIVE INDUSTRIES (MEDIA COMMS) FELLOW OF GOVERNANCE INSTITUTE OF AUSTRALIA GRADUATE OF THE AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS INDEPENDENT NON-EXECUTIVE DIRECTOR: Appointed 28 November 2025 Ms Lindi Deguara is an accomplished director and executive with more than two decades of experience across governance, legal, commercial, and corporate services in the energy, infrastructure, and resources sectors. She currently serves as an Independent Non Executive Director at Tennis Queensland and Jabiru Community Services, chairing both Governance and Risk Committees respectively. Her broader governance portfolio includes previous directorships at Axiom Project Services, and Golden West Apprenticeships, alongside committee roles such as Independent Member of the Audit & Risk Committee at the Residential Tenancies Authority (Qld). Lindi’s executive background includes senior leadership roles at MPC Kinetic, where she served as Executive General Manager, General Counsel, and Company Secretary, overseeing corporate services, governance, risk, HR, and M&A activities, including two ASX IPOs. She has also held senior legal and commercial positions at Golding Contractors, Connell Wagner (now Aurecon), Ansaldo STS Australia (now Hitachi Rail STS), and the Queensland Department of Premier & Cabinet. As Managing Director of Strategic & Commercial Outcomes, she advises on major energy, infrastructure, and resources projects. Special Responsibilities: Chair of the Remuneration Committee. Other Current Directorships of ASX Listed Companies: None. Former Directorships of ASX Listed Companies in Last Three Y ears:None. Interests in Shares and Options: 125,000. INFORMATION ON DIRECTORS (CONTINUED) Page 30 | KGL Resources Ltd Annual Report 2026
Page 34
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MR GERARD HUTCHINSON BACHELOR OF ECONOMICS MASTER OF BUSINESS ADMINISTRATION, INFORMATION SYSTEMS MANAGEMENT LAW AND ARTS FELLOW OF CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND FELLOW OF AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS INDEPENDENT NON-EXECUTIVE DIRECTOR: Appointed 28 August 2026 Mr Gerard Hutchinson is a highly experienced director and senior executive with more than 15 years of board service and over three decades of leadership across listed, multinational and private companies. His governance background includes roles as Non Executive Director and Chair of the Audit & Risk Committee at Korvest Ltd, Non Executive Director at NASDAQ Dubai listed Depa Group PLC, and inaugural Non Executive Director and Audit Committee Chair at Benthic Geotech Pty Ltd. He has also contributed to broader industry governance through his membership of the Australian Institute of Company Directors’ Middle East Advisory Committee and continues to serve on advisory boards in the digital workflow automation and allied medical services sectors. Gerard’s executive career spans more than 25 years in C suite roles, including Chief Financial Officer positions at Al Futtaim Contracting, Estithmar Holding Q.P.S.C., EFS Facilities Services Group and Galfar Engineering & Contracting SAOG, as well as Managing Director and Chief Financial Officer of AusGroup Limited. Special Responsibilities: Chair of the Audit and Risk Committee. Other Current Directorships of ASX Listed Companies: TerraCom Ltd on 8 September 2026. Former Directorships of ASX Listed Companies in Last Three Y ears:None. Interests in Shares and Options: None. INFORMATION ON DIRECTORS (CONTINUED) Page 31 | KGL Resources Ltd Annual Report 2026
Page 35
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 MEETINGS OF DIRECTORS The number of meetings of the Company’s Board of Directors (Board), and of each Board committee, held during the year ended 30 June 2026, and the number of meetings attended by each director were: FULL BOARD AUDIT AND RISK COMMITTEE 2 REMUNERATION COMMITTEE 2 ATTENDED HELD 1 ATTENDED HELD 1 ATTENDED HELD 1 Current Directors J. Gerard 13 13 - - - - F. Purnamasidi 12 13 - - - - B. Gell 13 13 - - - - L. Deguara 7 7 - - - - G. Hutchinson 3 - - - - - - 1 Held is the number of meetings held during the time the director held office or was a member of the relevant committee . 2 In FY 2026 as a function of the size of the Board, all matters that would normally have been considered by the R emuneration Committee and the Audit and Risk Committee have been considered by the Board as a whole. 3 Appointed subsequent to the end of the FY2026 fi nancial year. COMPANY SECRETARY MS KYLIE ANDERSON BSC. MBA (INT. BUS.) MPA, MAICD COMPANY SECRETARY: Appointed 2 January 2008 Ms Anderson has held senior financial and company secretarial roles with a number of companies in the resources sector. Directors’ Report Page 32 | KGL Resources Ltd Annual Report 2026
Page 36
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 REMUNERATION REPORT – AUDITED The Remuneration Report, which has been audited, outlines the director and executive remuneration arrangements for the Group in accordance with the requirements of the Corporations Act 2001 and its regulations. A. R emuneration Philosophy The Group’s remuneration philosophy is to ensure that remuneration packages accurately reflect employees’ duties and responsibilities, with the overall objective of ensuring maximum stakeholder benefit from the attraction and retention of a high-quality Board and executive team members. The key principles underpinning the Group’s remuneration philosophy are: • remuneration that is comparable and market-competitive, • an appropriate balance between fixed and variable (at-risk) remuneration components, • the alignment of directors’ and executives’ interests with those of shareholders, and • fairness and transparency. The Group’s remuneration philosophy and practices are overseen by the Remuneration Committee. The Remuneration Committee is responsible for: • monitoring and reporting to the Board material risks insofar as they relate to people and remuneration matters, • reviewing on an annual basis the remuneration levels of the Board and senior management and recommending changes to the Board as appropriate, • overseeing management incentive schemes including employee short-term (STI) and long-term (LTI) incentives, • developing and recommending to the Board performance goals for executives, and • assisting the Board in evaluating the achievement of performance goals. Where the Remuneration Committee is not properly constituted according to the terms of the Remuneration Committee Charter (having at least 3 director members with majority independent), the Board will perform the role and duties of the Remuneration Committee until such time that it is properly constituted. During the exploration and evaluation phase, the Company’s remuneration arrangements were tailored to its stage of development and the size of its Board and executive team, with remuneration matters considered by the Board as a whole. With the Jervois Project fully funded following the equity raising completed after year end, and the Company moving towards development, the Board has established a Remuneration Committee on 27 August 2026. The Committee is reviewing the Company’s remuneration framework appropriate for its size and stage, and aligned with shareholder interests and the Company’s key priorities. B. K ey Management Personnel The Key Management Personnel (KMP) of the Group, comprising the Chairman, the Non-executive Directors, the Chief Executive Officer and the Chief Financial Officer, are those individuals considered to have significant influence over the Group’s operating performance and decision making. The KMP of the Group are listed in the following table. Unless otherwise indicated, KMP have held the stated position since the commencement of the financial year and up to the date of this report. NAME POSITION CHANGES IN TENURE Directors Mr J. Gerard Chairman Mr F. Purnamasidi Non-Executive Director Mr B. Gell Independent Non-Executive Director Ms L. Deguara Independent Non-Executive Director Appointed 28 November 2025 Mr G. Hutchinson Independent Non-Executive Director Appointed 28 August 2026 Other KMP Mr S. Strohmayr Chief Executive Officer Appointed 27 January 2026 Mr A. Liaw Chief Financial Officer Directors’ Report Page 33 | KGL Resources Ltd Annual Report 2026
Page 37
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 REMUNERATION REPORT – AUDITED (CONTINUED) C. R emuneration Structure In accordance with best practice corporate governance, the structure of non-executive director and executive remuneration is separate and distinct. i) Non-Ex ecutive Director Remuneration Objective The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and retain non-executive directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders. Structure The Constitution of the Company and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to time by a general meeting. The current aggregate remuneration so determined is $500,000. An amount not exceeding $500,000 is divided between the directors. When appropriate, the Board considers advice from external consultants as well as the fees paid to non-executive directors of comparable companies when undertaking the annual review process. No remuneration consultants were engaged to review non-executive remuneration in the year to 30 June 2026. Each director receives a fee for being a director of the Company. Directors who are called upon to perform extra services beyond the director’s ordinary duties may be paid additional fees for those services. Non-executive directors do not receive any form of equity incentive entitlement, bonus, options, other form of incentive entitlement or retirement benefits. All non-executive directors are entitled to superannuation contributions up to the statutory capped rates. In order to align with shareholder interests, non-executive directors are encouraged to hold shares in the Company. ii) Ex ecutive Remuneration Objective The Company aims to attract, motivate and retain high-performing and high-quality executives, to reward them with a level of remuneration commensurate with their position and responsibilities within the Group and to align their interests with those of shareholders. Structure Executive remuneration has three components, a combination of which comprises the executive’s total remuneration: • fixed remuneration comprising a base salary, employer superannuation contributions and non-monetary benefits, • other remuneration, including annual leave and long service leave benefits, and • a performance-based incentive. Executives can receive the fixed component of their remuneration in the form of cash or other fringe benefits (for example car parking benefits) where it does not create any additional costs to the Group and adds value for the executive. Any awards over and above contractual fixed remuneration and associated statutory entitlements are made at the discretion of the Board. Upon retirement or termination, executive KMP are paid employee benefits accrued to date of retirement or termination. No other termination benefits are payable under service contracts. In determining the level and make-up of executive remuneration, the Board may obtain independent advice from external consultants on market levels of remuneration for comparable executive roles. No remuneration consultants were engaged to review executive remuneration in the year to 30 June 2026. It is the Board’s policy that employment contracts are entered into with all the senior executives. Directors’ Report Page 34 | KGL Resources Ltd Annual Report 2026
Page 38
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 30 JUN 2026 12 months $ 30 JUN 2025 12 months $ 30 JUN 2024 12 months $ 30 JUN 2023 12 months $ 30 JUN 2022 6 months 2 $ Sales revenue – – – – – EBITDA 1 (3,770,137) (2,899,322) (2,563,152) (2,312,867) (1,629,523) EBIT 1 (3,822,359) (2,998,722) (2,663,959) (2,402,535) (1,673,985) Loss before income tax (3,836,795) (3,015,417) (2,671,410) (2,404,468) (1,676,050) Total KMP remuneration 1,202,487 983,280 1,044,622 1,277,590 534,242 1 EBIT and EBITD A are non-IFRS measures. They are calculated as follows: EBIT : Total comprehensive income for the year, less income tax bene fi t and fi nance expense. EBITD A: Total comprehensive income for the year, less income tax bene fi t, fi nance expense and depreciation and amortisation expense. 2 K GL Resources Limited year-end reporting period changed from December to June hence the 6-month reporting period for 30 June 2022. The factors that are considered to affect Total Shareholders’ Return are summarised below: 30 JUN 2026 12 months 30 JUN 2025 12 months 30 JUN 2024 12 months 30 JUN 2023 12 months 30 JUN 2022 6 months Share price at financial year / period end ($) $0.21 $0.09 $0.10 $0.18 $0.195 Total dividends declared (cents per share) - - - - - Basic loss per share (cents per share) (0.52) (0.46) (0.47) (0.52) (0.41) E. Employment Contracts Employment contracts have been entered into by the Group with key management personnel, documenting the components and level of remuneration applicable to their appointments. These contracts do not fix the amount of remuneration increases from year to year. Remuneration levels are generally reviewed each year by the Remuneration Committee, when properly constituted, to align with changes in job responsibilities and market salary expectations. Employment contracts are currently reviewed annually by the Board as a whole. F. R emuneration of Directors and Executives (1) R emuneration of Chairman The Board, with Mr Gerard abstaining, has approved the payment to Mr Gerard of $2,000 per day whilst undertaking the Executive Chairman role from 21 January 2025. (2) R emuneration of Non-Executive Directors There have been no changes to the remuneration of non-executive directors in the current financial year. All non-executive directors receive an annual fee of $47,250 plus superannuation at the statutory rate, subject to annual review. There are no additional fees paid for additional roles such as committee members, or chair positions. The annual fees have been apportioned in accordance with each director’s period of tenure during the financial year. (3) R emuneration of the other Key Management Personnel Refer to Section G: Service Contracts for further information. REMUNERATION REPORT – AUDITED (CONTINUED) D. R elationship between Remuneration and the Company’s Performance The earnings of the Group for the five years / periods to 30 June 2026 are summarised below: Directors’ Report Page 35 | KGL Resources Ltd Annual Report 2026
Page 39
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 REMUNERATION REPORT – AUDITED (CONTINUED) F. R emuneration of Directors and Executives (continued) 4) R emuneration Summary Directors and other key management personnel received the following compensation for their services during the year ended 30 June 2026 and the comparative year ended 30 June 2025: YEAR ENDED 30 JUNE 2025 CASH SALARY AND FEES $ OTHER SHORT-TERM BENEFITS $ OTHER LONG-TERM BENEFITS $ POST- EMPLOYMENT BENEFITS SHARE-BASED PAYMENTS (A) $ TOTAL $ TOTAL PERFORMANCE RELATED % SUPERANNUATION $ Executive Chairman J. Gerard 3 262,000 - - - - 262,000 - Current Directors J. Gerard 47,250 - - 5,434 - 52,684 - F. Purnamasidi 47,250 - - 5,434 - 52,684 - B. Gell 47,250 - - 5,434 - 52,684 - Other KMP A. Liaw 280,000 - 4,055 29,932 - 313,987 - K. Anderson 1 31,195 - - 3,587 - 34,782 - Former KMP P. Condon 2 197,594 - - 16,865 - 214,459 - 912,539 - 4,055 66,686 - 983,280 - 1 Appointed interim CEO March 2024.R esigned 29 July 2024. 2 Appointed CEO 29 July 2024. R esigned 21 January 2025. 3 Appointed Ex ecutive Chairman 21 January 2025. This amount was accrued at June 2025. It will be paid out of the Directors Remuneration Pool. YEAR ENDED 30 JUN 2026 CASH SALARY AND FEES $ OTHER SHORT-TERM BENEFITS $ OTHER LONG-TERM BENEFITS $ POST- EMPLOYMENT BENEFITS SHARE-BASED PAYMENTS (A) $ TOTAL $ TOTAL PERFORMANCE RELATED % SUPERANNUATION $ Executive Chairman J. Gerard 1 272,000 - - - - 272,000 - Current Directors J. Gerard 1 47,250 - - 5,670 - 52,920 - F. Purnamasidi 47,250 - - 5,670 - 52,920 - B. Gell 47,250 - - 5,670 - 52,920 - L. Deguara 2 27,563 - - 3,307 - 30,870 - Other KMP S. Strohmayr 3 181,364 - 22,421 15,000 161,237 380,022 3.6% A. Liaw 300,000 - 17,098 30,000 13,737 360,835 3.8% 922,677 - 39,519 65,317 174,974 1,202,487 2.3% 1 Mr Gerard was appointed Executive Chairman on 21 January 2025 and resumed as Non-Executive Chairman on 19 January 2026. He continued to act as interim Chief Executive Officer until the end of February 2026. Remuneration for FY26 comprises director’s fees of $52,920 including superannuation, and chairman and interim Chief Executive Officer fees of $272,000. A further $250,000 was paid during FY26 from the Directors Remuneration Pool in respect of FY25 services, against the $262,000 accrued at 30 June 2025. The balance of $12,000 was released to profit or loss in FY26. 2 Appointed Non Ex ecutive Independent Director from 28 November 2025. 3 Appointed CEO 27 January 2026. Directors’ Report Page 36 | KGL Resources Ltd Annual Report 2026
Page 40
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 REMUNERATION REPORT – AUDITED (CONTINUED) F. R emuneration of Directors and Executives (continued) 4) R emuneration Summary (continued) The remuneration of non-executive directors is fixed. For all other key management personnel, the proportion of remuneration that is fixed and the proportion of remuneration that is linked to performance is outlined below. FIXED REMUNERATION AT RISK – STI AT RISK – LTI % % % Executive Chairman J. Gerard 30 June 2026 100 - - 30 June 2025 100 - - Current Directors L. Deguara 30 June 2026 100 - - 30 June 2025 - - - F. Purnamasidi 30 June 2026 100 - - 30 June 2025 100 - - B. Gell 30 June 2026 100 - - 30 June 2025 100 - - Executive Key Management Personnel S. Strohmayr 30 June 2026 96.4 - 3.6 30 June 2025 - - - A. Liaw 30 June 2026 96.2 - 3.8 30 June 2025 100 - - On 28 April 2026 the Company announced an update to the Chief Executive Officer’s remuneration to introduce a variable component. The Chief Executive Officer received 500,000 KGL ordinary shares effective immediately, and was granted 500,000 Performance Rights subject to the vesting conditions set out in Section I. During FY27 the company will be transitioning to a more traditional split of fixed and variable remuneration structures. G. Service Contracts Remuneration and other terms of employment for key management personnel, other than non-executive directors, are formalised in service agreements. Details of these agreements are as follows: COMPONENT CEO OTHER SENIOR EXECUTIVE Base salary Range between $350,000 and $453,000. Range between $250,000 and $320,000. STI Provides for eligibility for an STI plan, at rules and rates to be agreed between the executive and the Board. Contract duration Until terminated in accordance with the provisions of the agreement. Notice by individual / Company 6 months’ notice in writing to be given by either party. Range between 1 month’s notice in writing and 6 months’ notice in writing. Termination of employment Executives are entitled to receive their statutory entitlement of accrued annual leave, together with any superannuation benefits. No other termination benefits are payable. Directors’ Report Page 37 | KGL Resources Ltd Annual Report 2026
Page 41
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 REMUNERATION REPORT – AUDITED (CONTINUED) H. Cash Bonuses There were no cash bonuses granted to Key Management Personnel in relation to either the year ended 30 June 2026, or the year ended 30 June 2025. I. Options and P erformance Rights Granted as Remuneration On 28 April 2026 the Chief Executive Officer received 500,000 fully paid ordinary shares for nil consideration as the variable component of his remuneration. The shares carried no vesting conditions and vested immediately, at a grant date fair value of $0.295 per share, being $147,500. On the same date the Chief Executive Officer and the Chief Financial Officer were each granted 500,000 Performance Rights, at a grant date fair value of $0.2429 per Right, being $121,450 each. The Rights have a nil exercise price and expire on 28 April 2029. Vesting requires the raising of the remaining funding to take the Jervois Project to an FID, a subsequent 20-day volume weighted average share price above $0.325, and continued engagement with the Company. No Rights had vested at 30 June 2026. Refer to Note 19. No options were on issue to key management personnel at 30 June 2026, and no options vested or were exercised during the year. J. Shareholdings of Directors and K ey Management Personnel The numbers of ordinary shares in the Company held during the financial year by each director and by each other member of key management personnel of the Group, including their personally related parties, are as follows: 30 JUNE 2026 BALANCE AT BEGINNING OF YEAR NUMBER ENTITLEMENT OFFER NUMBER ISSUED ON EXERCISE OF OPTIONS NUMBER OTHER CHANGES NUMBER BALANCE AT END OF YEAR NUMBER Current Directors J. Gerard 1,900,716 - - - 1,900,716 F. Purnamasidi 1,472,097 - - - 1,472,097 B. Gell - - - - - L. Deguara 1 - - - - - Other Key Management Personnel S. Strohmayr - - - 706,769 706,769 A. Liaw - - - - - TOTAL 3,372,813 - - 706,769 4,079,582 1 Appointed 28 November 2025. Performance Rights held by Directors and Key Management Personnel Mr Strohmayr and Mr Liaw each held nil Performance Rights at the beginning of the year and 500,000 each at the end of the year. None had vested or were exercisable at 30 June 2026. No other director or member of key management personnel held Performance Rights during the year. Directors’ Report Page 38 | KGL Resources Ltd Annual Report 2026
Page 42
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 REMUNERATION REPORT – AUDITED (CONTINUED) K. Other T ransactions with Key Management Personnel and / or their Related Parties 1) Amounts Payable to Key Management Personnel There were no amounts due to members of key management personnel outstanding at 30 June 2026. The comparative amounts outstanding at 30 June 2025 were as follows: CONSOLIDATED PAYABLE TO KEY MANAGEMENT PERSONNEL 30 JUN 2026 $ 30 JUN 2025 $ Director’s fees and superannuation - 4,390 Executive Chairman’s fees - 262,000 Total - 266,390 2) Other R elated Party Transactions There were no other transactions conducted between the Group and key management personnel or their related parties, apart from those disclosed above relating to equity and compensation, that were conducted other than in accordance with normal employee or supplier relationships on terms no more favourable than those reasonably expected under arm’s length dealings with unrelated parties . THIS IS THE END OF THE REMUNERATION REPORT – AUDITED Directors’ Report Page 39 | KGL Resources Ltd Annual Report 2026
Page 43
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 Directors’ Report EVENTS AFTER THE REPORTING DATE On 30 July 2026, the Group completed its equity raise of $300 million, following approval being obtained at an Extraordinary General Meeting of shareholders, to progress the development of its Jervois Project. On 28 August 2026, Mr G Hutchinson was appointed as an Independent Non-Executive Director. No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods. AUDITOR INDEPENDENCE The auditor’s independence declaration as required under section 307C of the Corporations Act 2001, is set out on page 42 of the financial report. This report is made in accordance with a resolution of the directors. On behalf of the Board, Jeff Gerard Chairman Brisbane Dated: 29 September 2026 Page 40 | KGL Resources Ltd Annual Report 2026
Page 44
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 Competent Person’s Statement The information in this report that relates to a Production Target and the forecast financial information derived from the production was first released to the market on 24 April 2026. KGL confirms that all the material assumptions underpinning the production target and forecast financial information derived from the production target continue to apply and have not materially changed. The information relating to 3D Inversion results was originally reported on 30 July 2025. The Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The information in this report that relates to the Jervois Mineral Resources Estimates was first released to the market on 25 November 2024 and prepared in accordance with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. The information in this report that relates to the Jervois Ore Reserves Estimate was first released to the market on 10 February 2025 and prepared in accordance with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Page 41 | KGL Resources Ltd Annual Report 2026
Page 45
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 Auditor’s Independence Declaration Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au Level 18, 360 Queen Street Brisbane QLD 4000 GPO Box 457 Brisbane QLD 4001 Australia BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of B DO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member fi rms. Liability limited by a scheme approved under Professional Standards Legislation. DECLARATION OF INDEPENDENCE BY A J WHYTE TO THE DIRECTORS OF KGL RESOURCES LIMITED As lead auditor of KGL Resources Limited for the year ended 30 June 2026, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of KGL Resources Limited and the entities it controlled during the period. A J Whyte Director BDO Audit Pty Ltd Brisbane, 29 September 2026 Page 42 | KGL Resources Ltd Annual Report 2026
Page 46
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 CONSOLIDATED 30 JUN 2026 $ 30 JUN 2025 $ NOTE $ $ Other income 3 309,215 252,963 Fair value gain on financial liability at FVTPL 20 15,441,538 - Administrative expenses 4(a) (17,215,895) (1,592,865) Employee benefits expense 4(b) (1,237,254) (1,213,527) Other expenses (559,237) (239,712) Foreign exchange loss on financial liability at FVTPL 20 (519,473) - Depreciation and amortisation expense (52,222) (99,400) Impairment expense 4(d) - (119,092) Finance expense 4(c) (3,467) (3,784) Loss before income tax (3,836,795) (3,015,417) Income tax benefit 5 - - Net loss for the year (3,836,795) (3,015,417) Other comprehensive income, net of tax - - Total comprehensive income for the year (3,836,795) (3,015,417) Loss per share attributable to the owners of the Company Basic loss per share (cents per share) 6 (0.52) (0.46) Diluted loss per share (cents per share) 6 (0.52) (0.46) Statement of Profit or Loss and Other Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2026 This financial statement should be read in conjunction with the accompanying notes. Page 43 | KGL Resources Ltd Annual Report 2026
Page 47
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 CONSOLIDATED 30 JUN 2026 30 JUN 2025 NOTE $ $ Current assets Cash and cash equivalents 7 25,283,503 5,116,103 Trade and other receivables 8 1,291,169 77,813 Financial assets 9 148,765 148,765 Prepayments 10 291,639 184,124 Total current assets 27,015,076 5,526,805 Non-current assets Financial assets 9 417,831 417,831 Property, plant and equipment 11 330,459 408,477 Right-of-use assets 12 185,687 25,050 Exploration and evaluation assets 13 134,630,512 125,293,186 Intangible assets 3,162 4,822 Total non-current assets 135,567,651 126,149,366 Total assets 162,582,727 131,676,171 Current liabilities Trade and other payables 14 17,872,043 1,439,701 Lease liabilities 12 110,411 27,203 Total current liabilities 17,982,454 1,466,904 Non-current liabilities Lease liabilities 12 78,687 - Other financial liabilities 15, 20 7,683,191 - Total non-current liabilities 7,761,878 - Total liabilities 25,744,332 1,466,904 Net assets 136,838,395 130,209,267 Equity Contributed equity 17 273,253,409 262,686,028 Reserves 18 34,342 135,800 Accumulated losses (136,449,356) (132,612,561) Total equity 136,838,395 130,209,267 Statement of Financial Position AS AT 30 JUNE 2026 This financial statement should be read in conjunction with the accompanying notes. Page 44 | KGL Resources Ltd Annual Report 2026
Page 48
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 CONSOLIDATED 30 JUN 2026 30 JUN 2025 NOTE $ $ Cash flows from operating activities Receipts in the course of operations 685,477 1,028,885 Payments to suppliers and employees (6,573,228) (3,389,242) Interest received 325,997 249,260 Finance costs (15,086) (18,759) Net cash used in operating activities 7(a) (5,576,840) (2,129,856) Cash flows from investing activities Payment for exploration and evaluation assets (7,215,832) (10,791,617) Payment for property, plant and equipment (17,006) (42,962) Payment for other financial assets - (114,519) Net cash used in investing activities (7,232,838) (10,949,098) Cash flows from financing activities Proceeds from issue of shares 17 11,000,000 12,281,594 Payment of share issue costs (565,119) (274,611) Principal element of lease payments 7(d) (63,059) (141,722) Deposit for refined gold and silver 15 22,605,256 - Net cash provided by / (used in) financing activities 32,977,078 11,865,261 Net increase / (decrease) in cash and cash equivalents 20,167,400 (1,213,693) Cash and cash equivalents at the beginning of the year 5,116,103 6,329,796 Cash and cash equivalents at the end of the year 7 25,283,503 5,116,103 Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2026 This financial statement should be read in conjunction with the accompanying notes. Page 45 | KGL Resources Ltd Annual Report 2026
Page 49
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 CONSOLIDATED CONTRIBUTED EQUITY SHARE-BASED PAYMENT RESERVE ACCUMULATED LOSSES TOTAL EQUITY $ $ $ $ Balance as at 1 July 2025 262,686,028 135,800 (132,612,561) 130,209,267 Loss for the year - - (3,836,795) (3,836,795) Other comprehensive income, net of tax - - - - Total comprehensive income for the year - - (3,836,795) (3,836,795) Transactions with owners in their capacity as owners Issue of share capital (before costs) 11,000,000 - - 11,000,000 Share issue costs (580,119) - - (580,119) Shares issued to employees 147,500 - - 147,500 Share-based payments – expensed - 34,342 - 34,342 Share-based payments – forfeited - (135,800) - (135,800) Balance as at 30 June 2026 273,253,409 34,342 (136,449,356) 136,838,395 Balance as at 1 July 2024 250,645,610 163,800 (129,597,144) 121,212,266 Loss for the year - - (3,015,417) (3,015,417) Other comprehensive income, net of tax - - - - Total comprehensive income for the year - - (3,015,417) (3,015,417) Transactions with owners in their capacity as owners Issue of share capital (before costs) 12,281,594 - - 12,281,594 Share issue costs (241,176) - - (241,176) Share-based payments – reversed 1 - (28,000) - (28,000) Balance as at 30 June 2025 262,686,028 135,800 (132,612,561) 130,209,267 1 The value of share-based payments to employees of the Jervois Project to has been reversed as part of the exploration and evalu ation asset (Refer to Note 1). Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2026 This financial statement should be read in conjunction with the accompanying notes. Page 46 | KGL Resources Ltd Annual Report 2026
Page 50
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 1. Basis of preparation The financial statements of Group for the year ended 30 June 2026 cover the consolidated entity consisting of KGL (Company, Parent Entity) and its controlled entities (Consolidated Entity) as required by the Corporations Act 2001. The registered office and principal place of business is Level 1, 5 Gardner Close, Milton, Queensland, 4064, Australia. The financial statements are presented in the Australian currency. KGL is a public company, incorporated and domiciled in Australia. The principal activity of the Group during the year was exploration and evaluation of the Jervois Project in the Northern Territory. There have been no significant changes in the nature of these activities during the year. The consolidated general-purpose financial report of the Group for the year ended 30 June 2026 was authorised for issue in accordance with a resolution of the directors on 29 September 2026. The directors have the power to amend and reissue the financial report. The financial report is a general-purpose financial report which: • Has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. • Adopts all new and amended Accounting Standards and Interpretations issued by the AASB and IFRS that are relevant to the operations of the Group and effective for reporting period beginning on or after 1 July 2025. The impact of adopting these standards did not have any impact on the Group’s accounting policies and did not require retrospective adjustments. • Does not early adopt any Australian Accounting Standards and Interpretations that have been issued or amended but are not yet effective. The financial statements have been prepared on a historical cost basis. The Company is a for-profit entity for the purposes of Australian Accounting Standards. Key judgements and estimates In the process of applying the Group’s accounting policies, management has made a number of judgements and applied estimates of future events. Judgements and estimates which are material to the financial report are found in the following notes: • Note 5: Income taxes • Note 13: Exploration and evaluation assets • Note 15, 20: PMPA financial liability at fair value through profit or loss Basis of consolidation Subsidiaries are those entities over which KGL has control. The Group controls an entity when the Group is exposed, or has the rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. All intercompany balances and transactions, including unrealised profits arising from intragroup transactions have been eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. The financial statements of subsidiaries are prepared for the same reporting period as the parent, using consistent accounting policies. Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2026 Page 47 | KGL Resources Ltd Annual Report 2026
Page 51
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 1. Basis of preparation (continued) Other accounting policies Material accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial statements are provided throughout the notes to the financial statements. The notes to the financial statements The notes include information which is required to understand the financial statements and is material and relevant to the operations, financial position and performance of the Group. Information is considered relevant and material if, for example: • The amount in question is significant because of its size or nature, • It is important for understanding the results of the Group, • It helps to explain the impact of significant changes in the Group’s business, for example acquisitions and impairment write-downs, or • It is related to an aspect of the Group’s operations that is important to its future performance. Going concern The financial report has been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business. The Group may be required to raise additional funds prior to the completion of mine development or prior to the operations of the mine being able to sustain the cashflow requirements of the Group. 2. Segment information The Group identifies its operating segments based on the internal reports that are reviewed and used by the Board, the chief operating decision makers, in assessing performance and determining the allocation of resources. All information provided to the Board is consolidated information. Accordingly, management currently identifies the Group as having only one reportable segment, being exploration at the Jervois Project in the Northern Territory. The financial results from this segment are equivalent to the financial statements of the Group as a whole. All significant operating decisions are based upon analysis of the Group as one segment. All assets of the Group are in Australia. The Group does not yet have any products or services from which it derives an income. 3. Other income CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Interest revenue – third parties 309,215 252,963 Total other income 309,215 252,963 Recognition and measurement Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 48 | KGL Resources Ltd Annual Report 2026
Page 52
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 4. Expenses CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ a) Administrative expenses Professional and consulting fees 16,306,191 815,068 Business development and investor relations expenses 59,228 154,900 Corporate office overheads 449,731 206,274 Corporate fees 117,608 104,282 Insurance 279,186 308,765 Expenses relating to leases of low-value assets 3,951 3,576 17,215,895 1,592,865 b) Employee benefits expense Salaries, wages, and related costs 800,807 954,812 Directors’ fees (excluding superannuation) 178,290 147,184 Share based payment expense 181,842 - Superannuation contributions 76,315 111,531 1,237,254 1,213,527 c) Finance expense Interest on lease liabilities (refer to Note 12) 3,467 3,784 3,467 3,784 d) Impairment expense Exploration and evaluation assets (refer to Note 13) - 119,092 - 119,092 Recognition and measurement Post-employment benefits plans – defined contribution plans The Group provides post-employment benefits through defined contribution plans. The Group pays fixed contributions into independent entities in relation to several plans. The Group has no legal or constructive obligations to pay contributions in addition to its fixed contributions which are recognised as an expense in the period in which the relevant employee services are received. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 49 | KGL Resources Ltd Annual Report 2026
Page 53
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 5. Income tax es CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ a) Components of tax expense Current tax benefit on loss for the year - - Deferred tax arising from origination and reversal of temporary differences - - Total income tax benefit in profit or loss - - b) The prima facie income tax on the loss is reconciled to income tax benefit as follows: Loss before income tax (3,836,795) (3,015,417) Prima facie tax benefit on loss before income tax at 30% (2025: 25%) (1,151,039) (753,854) Other deductible expenses (68,927) (84,994) Adjustment recognised for prior periods - - Deferred tax assets arising from temporary differences not recognised 1,219,966 838,848 Income tax benefit attributable to the Group - - c) Unrecognised deferred tax assets Prior year tax losses brought forward – gross 210,128,942 197,060,134 Adjustment to prior period losses – gross (1,978) 2,473 Total losses recognised – gross (141,888,907) (120,239,029) Current period tax losses – gross 25,578,776 13,066,335 Unrecognised tax losses – gross 93,816,833 89,889,913 Deferred tax assets not taken up – at 30% (2025: 25%) 28,145,050 22,472,478 d) R ecognised net deferred tax assets Deferred tax liabilities Exploration and evaluation (39,110,532) (30,259,428) PMPA financial liability (4,476,619) - (43,587,151) (30,259,428) Deferred tax assets Tax losses recognised at 30% (2025: 25%) 42,566,672 30,059,757 Provisions / accruals 1,020,479 199,671 43,587,151 30,259,428 Net deferred tax asset recognised - - e) Franking credits There are no franking credits available. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 50 | KGL Resources Ltd Annual Report 2026
Page 54
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 5. Income tax es (continued) Recognition and measurement The income tax expense / (benefit) for the year comprises current income tax expense / (benefit) and deferred tax expense / (benefit). Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities / (assets) are measured at the amounts expected to be paid to / (recovered from) the relevant taxation authority using tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax expense / (benefit) reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused tax losses. Current and deferred income tax expense / (benefit) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss. Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 51 | KGL Resources Ltd Annual Report 2026
Page 55
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 6. Loss per share CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Loss after income tax attributable to the owners of the Company used in calculating basic and diluted loss per share. (3,836,795) (3,015,417) Basic loss per share (cents per share) (0.52) (0.46) Diluted loss per share (cents per share) (0.52) (0.46) # SHARES # SHARES Weighted average number of ordinary shares used in the calculation of basic and diluted loss per share. 740,623,527 650,799,287 At 30 June 2026, the Company had granted 1,250,000 Performance Rights (30 Jun 2025: 194,000 options) over unissued ordinary shares. No options and rights had vested or were exercisable at financial year end. As the Company has generated losses, the options have been treated as anti-dilutive for the purposes of determining diluted loss per share (Refer to Note 19). Recognition and measurement Basic earnings per share Basic earnings / (loss) per share is calculated by dividing the profit / (loss) attributable to the owners of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings / (loss) per share adjusts the figures used in the determination of basic earnings / (loss) per share to take into account the after-tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. 7. Cash and cash equivalents CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Cash at bank 21,781,406 1,616,103 Term deposits with short-term maturity 3,502,097 3,500,000 Total cash and cash equivalents 25,283,503 5,116,103 Cash at bank balances bear floating interest rates between 0% and 4.59% (30 Jun 2025: 0% and 3.85%). Term deposits bear fixed interest rates between 4.00% and 4.93% (30 Jun 2025: 4.00% and 4.52%). Recognition and measurement For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents includes cash on hand and at bank, deposits held at call with financial institutions and other short term, highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 52 | KGL Resources Ltd Annual Report 2026
Page 56
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 7. Cash and cash equivalents (continued) CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ a) R econciliation of loss after tax to net cash flows from operations Loss for the year after income tax benefit (3,836,795) (3,015,417) Non-cash flows in loss: Depreciation and amortisation expense 52,222 99,400 Impairment expense - 119,092 Share-based payments expense 181,842 - (Gain) / loss on disposal of property, plant and equipment - 499 (Gain) / loss on foreign exchange (28) - Fair value gain on PMPA financial liability (15,441,538) - Foreign exchange loss on PMPA financial liability 519,473 - Capitalised expenditure classified as cash flows from operating activity: Interest expense (677) (2,064) Change in operating assets and liabilities: (Increase) / decrease in trade and other receivables (1,184,365) 105,843 (Increase) / decrease in prepayments 292,384 377,667 Increase / (decrease) in trade and other payables 13,840,642 185,124 Net cash used from operating activities (5,576,840) (2,129,856) b) Facilities There are no borrowing facilities at the reporting date (30 Jun 2025: Nil). Refer to Note 20 for further detail regarding the PMPA facility. c) Non-cash financing and investing activities Non-cash investing and financing activities disclosed in other notes are: • Additions to right-of-use assets of $224,954 • Ordinary shares and options issued to employees for no cash consideration of $147,500 – refer to the contributed equity and share-based payments notes, and • Share issue costs of $15,000 incurred but unpaid at 30 June 2026. Share issue costs of $580,119 have been recognised in equity, of which $565,119 was paid in cash during the year – refer to the contributed equity note d) Cash and non-cash movements in liabilities arising from financing activities The following table reconciles the cash and non-cash movements in liabilities arising from financing activities: Opening Balance Non-cash Cash Additions / Revaluations Receipts / (Payments) Closing Balance $ $ $ $ 30 Jun 2026 Lease liabilities 27,203 224,954 (63,059) 189,098 Other financial liabilities - (14,922,065) 22,605,256 7,683,191 30 Jun 2025 Lease liabilities 159,608 9,317 (141,722) 27,203 Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 53 | KGL Resources Ltd Annual Report 2026
Page 57
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 8. T rade and other receivables CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ GST receivable (net) 235,207 29,099 Other receivables 1,055,962 48,714 Total trade and other receivables 1,291,169 77,813 Other receivables are non-interest bearing and have repayment terms up to thirty days. 9. Financial assets CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Current Term deposits 148,765 148,765 Total current financial assets 148,765 148,765 Non-current Security deposits 417,831 417,831 Total non-current financial assets 417,831 417,831 Financial assets are comprised of rental bonds, rolling interest-bearing term deposits supporting environmental bank guarantees with the Department of Mines and other guarantees. Guarantee of $417,831 (30 Jun 2025: $417,831 security deposit) has been provided to the Department of Mines. 10. Prepayments CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Prepayment for infrastructure i 122,888 138,478 Other operating prepayments ii 168,751 45,646 Total prepayments 291,639 184,124 i This is a credit held with the supplier from a progress payment for communications hardware at the Jervois Project. The credit is applied against the supplier’s invoices as services are provided. ii Other operating prepayments include prepayments for software subscriptions, insurance , office rent, IT hosting, tenement rents and other operating expenditure. 11. Property , plant and equipment CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Plant and equipment Cost 1,083,139 1,066,134 Accumulated depreciation (752,680) (657,657) Total plant and equipment 330,459 408,477 Recognition and measurement Each class of property, plant and equipment is carried at historical cost less, where applicable, any accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably measured. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. At each reporting period end, the carrying amount of property, plant and equipment is reviewed to ensure that carrying values are not in excess of the recoverable amounts. The assets’ residual values and useful lives are also reviewed, and adjusted if appropriate, at each reporting date. The depreciable amount of all property, plant and equipment is depreciated on a straight-line basis to allocate cost, net of any residual value, over the estimated useful lives to the Group commencing from the time the asset is held ready for use. The useful lives of assets classified as plant and equipment are between 3 and 10 years. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 54 | KGL Resources Ltd Annual Report 2026
Page 58
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 11. Property , plant and equipment (continued) Movements in carrying amount of property, plant and equipment: 30 JUNE 2026 PLANT AND EQUIPMENT $ Carrying amount at 1 July 2025 408,477 Additions 17,006 Depreciation 1 (95,024) Disposals - Carrying amount at 30 June 2026 330,459 i $84,479 (30 Jun 2025: $102,336) of depreciation expense on property , plant and equipment acquired to advance the Jervois Project has been capitalised as part of the exploration and evaluation asset. 30 JUNE 2025 PLANT AND EQUIPMENT $ Carrying amount at 1 July 2024 484,371 Additions 38,712 Depreciation (114,107) Disposals (499) Carrying amount at 30 June 2025 408,477 12. Leases This note provides information on the Group as a lessee. Amounts recognised in the statement of financial position The statement of financial position shows the following amounts relating to leases: CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Right-of-use assets Property 179,192 14,420 Motor vehicles 6,495 10,630 Total right-of-use assets 185,687 25,050 Lease liabilities Current 110,411 27,203 Non-current 78,687 - Total lease liabilities 189,098 27,203 Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 55 | KGL Resources Ltd Annual Report 2026
Page 59
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 12. L eases (continued) Amounts recognised in the statement of profit or loss and other comprehensive income The statement of profit or loss and other comprehensive income includes the following amounts relating to leases: CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Amortisation expense i 40,018 86,518 Interest expense ii 3,467 3,784 Expense relating to leases of low value assets 10,965 3,576 i Amortisation of $24,300 (30 Jun 2025: $51, 163) relating to leased vehicle assets acquired for the Jervois Project that has been capitalised as part of the Exploration and Evaluation asset. ii Interest of $677 (30 Jun 2025: $2, 064) recognised on vehicle leases for the Jervois Project which has been capitalised as part of the Exploration and Evaluation asset. Recognition and measurement The Group leases property and various motor vehicles. Lease contracts are typically made for periods of two to five years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide variety of terms and conditions. Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for the lease of real estate for which the Group is the lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments, less any lease incentive receivable, • Variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date, • Amounts expected to be payable by the Group under residual value guarantees, • The exercise price of a purchase option if the Group is reasonably certain to exercise that option, and • Payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rates implicit in the lease. If that rate cannot be determined, the Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms, security and conditions. T o determine the incremental borrowing rate, the Group, where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third-party financing was received. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: • The amount of the initial measurement of the lease liability, • Any lease payments made at or before the commencement date, less any lease incentives received, • Any initial direct costs, and • Restoration costs. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 56 | KGL Resources Ltd Annual Report 2026
Page 60
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 12. L eases (continued) Recognition and measurement (continued) Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight- line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Payments associated with short-term leases and leases of low value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a term of 12 months or less. Low value assets are small items of office equipment. Key judgements and estimations In determining both the right-of-use asset and the lease liability certain estimates and judgements were made. These included the following: • Impairment identification. No impairments of right-of-use assets were identified at 30 June 2026. Each of the right-of-use assets was allocated to a cash generating unit (CGU) and the CGUs were assessed for impairment based on value in use. No impairments to CGUs have been identified. 13. Exploration and evaluation assets CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Deferred exploration and evaluation assets 134,630,512 125,293,186 Deferred exploration and evaluation assets Balance at the beginning of the year 125,293,186 115,774,199 Current year expenditure 9,337,326 9,638,079 Impairment of area of interest - (119,092) Balance at the end of the year 134,630,512 125,293,186 The ultimate recovery of exploration and evaluation assets is dependent upon successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. Recognition and measurement The Group applies AASB 6 Exploration for and Evaluation of Mineral Resources. Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full in profit or loss in the year in which the decision to abandon the area is made. When production commences, the accumulated costs for the relevant area of interest are transferred to mine development and amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Where incidental income and other research and development grants are received that relate to capitalised exploration and evaluation expenditure, these amounts are offset against the amounts capitalised . Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 57 | KGL Resources Ltd Annual Report 2026
Page 61
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 13. Exploration and evaluation assets (continued) Key estimates and judgements The directors determine when an area of interest should be abandoned. When a decision is made that an area of interest is not commercially viable, all costs that have been capitalised in respect of that area of interest are written off. The directors’ decisions are made after considering the likelihood of finding commercially viable outcomes balanced with acceptable political and environmental assessment. No tenements were abandoned in the current financial year. Work undertaken in the current year has advanced the technical aspects of the Project, however, until FID is made by the Board, the vast majority of work undertaken is eligible for capitalisation under AASB6 Exploration for and Evaluation of Mineral Resources. Until such time as FID has been made, the directors believe that the Jervois Project is still in the exploration and evaluation phase and have capitalised expenses to the Exploration and Evaluation asset in accordance with the prescribed accounting treatment. 14. T rade and other payables CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Trade payables 14,412,137 420,235 Accrued expenses 3,243,484 774,291 PAYG withholding payable 50,023 55,315 Employee benefits 166,399 189,860 Total trade and other payables 17,872,043 1,439,701 Recognition and measurement Trade and other payables Trade and other payables represent liabilities for goods and services provided to the Group prior to the year-end which are unpaid. These amounts are unsecured and have 7-to-45-day payment terms. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. No assets of the Group have been pledged as security for the trade and other payables. Short-term employee benefits Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries, superannuation, annual leave and long service leave. Based on past experience, the Group does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the Group does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlements. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the obligation is settled. 15 Other Financial Liabilities CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Deposit received 22,605,256 - Foreign exchange loss on retranslation 519,473 - Fair value gain (15,441,538) - Financial liability designated at fair value through profit or loss 7,683,191 - Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 58 | KGL Resources Ltd Annual Report 2026
Page 62
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 15 Other Financial Liabilities (continued) KGL Marketing Pty Ltd, a wholly owned subsidiary, entered into a PMPA with Wheaton on 1 April 2026, guaranteed by KGL. Under the terms and conditions of the agreement, the Group will receive refundable deposits in consideration for future deliveries of refined gold and silver equal to certain payable gold and silver respectively produced at the Jervois mine. The Group has received US$16,000,000 equivalent to $22,605,256 of refundable deposit in 2026. Further details in regard to the PMPA can be found in Note 20. 16 Interests in other entities Subsidiaries The subsidiaries listed below have share capital consisting solely of ordinary shares which are held directly by the Group. The proportion of ownership interests held equals the voting rights held by Group. NAME COUNTRY OF INCORPORATION 30 JUN 2026 % HELD 30 JUN 2025 % HELD Jinka Minerals Limited Australia 100 100 Jervois Holdings Pty Ltd Australia 100 100 Jervois Operations Pty Ltd Australia 100 100 KGL Resources Sales Pty Ltd Australia 100 100 KGL Marketing Pty Ltd Australia 100 100 17. Contributed equity CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Ordinary shares – fully paid 273,253,409 262,686,028 Movement in shares on issue DETAILS 30 JUN 2026 30 JUN 2025 SHARES ISSUED NO. ISSUED CAPITAL $ SHARES ISSUED NO. ISSUED CAPITAL $ Beginning of the financial year 692,318,047 262,686,028 567,291,863 250,645,610 Entitlement offer – 5 August 2024 80,821,185 8,082,119 Entitlement offer – 3 April 2025 44,204,999 4,199,475 Institutional placement – 31 October 2025 78,571,429 11,000,000 Share issue costs (580,119) (241,176) Employee share plan 500,000 147,500 End of the financial year 771,389,476 273,253,409 692,318,047 262,686,028 Capital raising On 31 October 2025, the Group completed an $11,000,000 placement through the issuance of 78,571,429 new fully paid ordinary shares at an issue price of $0.14 per share. Shares issued to employees On 28 April 2026 the Company granted 500,000 fully paid ordinary shares to the Chief Executive Officer as part of his variable remuneration. The shares vested immediately on granting and were measured at their grant date fair value of $0.295 per share. Accordingly, $147,500 was recognised as an expense in the current year with a corresponding increase in contributed equity. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 59 | KGL Resources Ltd Annual Report 2026
Page 63
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 17. Contributed equity (continued) Ordinary shares Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of, and amounts paid up on, shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. Ordinary shares have no par-value, and the Company does not have a limited amount of authorised capital. Capital risk management The capital structure of the Group consists of equity as disclosed in the statement of financial position, together with the Deposit received under the PMPA. Management controls the capital of the Group to generate long-term shareholder value, maximising the return to shareholders and ensuring that the Group can fund its operations and continue as a going concern. The Group’s capital is effectively managed by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues. Under the PMPA, the advance of each remaining tranche of the Deposit is conditional on the Group satisfying specified conditions precedent, including maintaining a positive working capital position. Where those conditions are not met at a tranche date, the relevant payment is deferred until they are satisfied rather than forfeited. The Deposit may be applied only to early works, construction and development of the Mine, and to general working capital. Other than the working capital condition under the PMPA, there are no externally imposed capital requirements. There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year. Recognition and measurement Issued and paid-up capital is recognised at the fair value of the consideration received by the Group. Transaction costs arising on the issue of equity instruments are recognised directly in equity as a reduction in the proceeds of the equity instruments to which the costs relate. Transaction costs are the costs that are incurred directly in connection with the issue of those equity instruments, and which would not have been incurred had those instruments not been issued. 18. Reserves CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Share-based payments reserve 34,342 135,800 Total reserves 34,342 135,800 Nature and purpose of reserves Share-based payments reserve The reserve is used to recognise the value of equity benefits provided to directors and other employees as part of their remuneration (Refer to Note 19). 19 Share-based payments Share options granted to key management personnel and other employees Zero-priced share options were offered by the Board in prior financial years to incentivise members of key management personnel and other senior employees and to align their interests with those of shareholders. The zero-priced options were issued in two equal tranches, each with performance related vesting conditions. These options expired on 22 June 2026 and were cancelled by the Company on 5 August 2026. Performance Rights issued during the year On 28 April 2026 the Company issued 1,250,000 Performance Rights to executives of the Company. Each Right, once vested, entitles the holder to the issue of one fully paid ordinary share for nil consideration. The Performance Rights expire on 28 April 2029. Vesting is subject to the successful raising of the remaining funding required to take the Jervois Project to an FID as determined by the Board, the Company’s share price achieving a volume weighted average price over a 20-day period of at least $0.325 subsequent to that raising, and the holder remaining an employee, director or otherwise engaged by the Company until vesting. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 60 | KGL Resources Ltd Annual Report 2026
Page 64
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 19. Share-based payments (continued) TRANCHE CONDITIONS Non-market -based vesting criteria FY26 - Performance Rights Successful raising of remaining funding required to take the Jervois Project to FID (success as determined by the Board) Market-based vesting criteria FY26 - Performance Rights KGL Share price achieving a volume weighted average price over a 20-day period of greater than $0.325 subsequent to the above term [successful raising] The expected vesting period was estimated at grant date as 1.53 years, being the average period to vesting across all simulations, consistent with the assumptions used in determining the fair value of the Performance Rights. In accordance with AASB 2, that estimate is not subsequently revised in respect of the market-based share price hurdle. The probability of achieving the market-based hurdle is reflected in the fair value per Right. The inputs to that valuation were: grant date 28 April 2026; 1,250,000 Rights; underlying share price $0.295; exercise price $nil; term 3.00 years; expected volatility 80.0%; risk-free rate 4.740%; dividend yield nil; and a resulting fair value of $0.2429 per Right. Summary A summary of the movements of all options and performance rights issued for the year ended 30 June 2026 is as follows: GRANT DATE EXPIRY DATE BALANCE AT START OF YEAR NO. GRANTED NO. EXERCISED NO. LAPSED / CANCELLED / FORFEITED NO. BALANCE AT END OF YEAR NO. TOTAL VALUE $ Tranche 1 31 May 21 22 Jun 26 97,000 - - (97,000) - - Tranche 2 31 May 21 22 Jun 26 97,000 - - (97,000) - - FY26 – Performance Rights 2026 28 Apr 26 28 Apr 29 - 500,000 - - 500,000 121,450 28 Apr 26 28 Apr 29 - 500,000 - - 500,000 121,450 28 Apr 26 28 Apr 29 - 250,000 - - 250,000 60,725 Total 194,000 1,250,000 - (194,000) 1,250,000 303,625 Recognition and measurement Equity-settled share-based payments with directors and employees are measured at the fair value of the equity instrument at the grant date. Fair value is measured by use of the Monte Carlo Simulation (MCS) Methodology, which utilises the Binomial Option Pricing Model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. The fair value determined at the grant date of the share-based payments is expensed on a straight-line basis over the vesting period with a corresponding increase in equity. No expense is recognised for awards that do not ultimately vest because internal conditions were not met. An expense is still recognised for options that do not ultimately vest because a market condition was not met. Where options are cancelled, they are treated as if they had vested on the date of cancellation and any unrecognised expenses are taken immediately to profit or loss. However, if new options are substituted for the cancelled options and designated as a replacement on grant date, the combined impact of the cancellation and replacement is treated as if it were a modification. Where share-based payments are forfeited due to a failure by the employee to satisfy the service conditions, any expenses previously recognised in relation to such share-based payments are reversed to the profit or loss effective from the date of forfeiture. In accordance with AASB 2 Share-based Payment, the total expense recognised in profit or loss for the year in respect of equity-settled share-based payment transactions with employees was $181,842 (2025: nil). This comprises $147,500 for the 500,000 ordinary shares issued to the Chief Executive Officer on 28 April 2026 and $34,342 of amortisation of the grant date fair value of the Performance Rights. A credit of $135,800 arising on the forfeiture of 194,000 expired options was capitalised to exploration and evaluation assets and is not included in this amount. Equity-settled share-based payment transactions with other parties are measured at fair value of the goods and services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date goods or services were obtained. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 61 | KGL Resources Ltd Annual Report 2026
Page 65
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 20. Financial assets and liabilities Fair value estimation of financial assets and financial liabilities The net fair values of financial assets and liabilities approximate their carrying value as disclosed in the statement of financial position. No financial assets or liabilities are readily traded on organised markets in standardised form. Recognition and measurement Fair values may be used for asset and liability measurement as well as for sundry disclosures. 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. It is based on the presumption that the transaction 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. The principal or most advantageous market must be accessible to, or by, the Group. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interests. The fair value measurement of a non-financial asset takes into account the market participant’s ability to generate economic benefits by using the asset at its highest and best use or by selling it to another market participant who would use the asset at its highest and best use. In measuring fair value, the Group uses valuation techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. The fair values of financial assets and financial liabilities are presented in the following table. For financial assets and financial liabilities measured at amortised cost, the carrying amount is considered a reasonable approximation of fair value. The PMPA financial liability is measured at fair value. CONSOLIDATED 30 JUN 2026 30 JUN 2025 NOTE $ $ Financial assets measured at amortised cost Cash and cash equivalents 7 25,283,503 5,116,103 Financial assets 9 566,596 566,596 Trade and other receivables 8 1,291,169 77,813 Total financial assets 27,141,268 5,760,512 Financial liabilities measured at amortised cost Trade and other payables 14 (17,705,644) (1,249,841) Lease liabilities 12 (189,098) (27,203) Total financial liabilities measured at amortised cost (17,894,742) (1,277,044) Financial liabilities measured at fair value through profit or loss PMPA financial liability 15 (7,683,191) - Total financial liabilities measured at fair value through profit or loss (7,683,191) - Total financial liabilities (25,577,933) (1,277,044) Recognition, initial measurement and derecognition Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are measured initially at fair value. The subsequent measurement of financial assets and financial liabilities is described below. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or it expires. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 62 | KGL Resources Ltd Annual Report 2026
Page 66
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 20. Financial assets and liabilities (continued) Classification and subsequent measurement of financial assets a) Investments and other financial assets Classification The Group classifies its financial assets in the following measurement categories: • Those to be measured subsequently at fair value (either through other comprehensive income (OCI), or through profit or loss); and • Those to be measured at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The Group reclassifies debt investments when and only when its business model for managing those assets changes. Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. b) Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments: • Amortised cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the statement of profit or loss and other comprehensive income. • FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as a separate line item in the statement of profit or loss and other comprehensive income. • FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within other gains/(losses) in the period in which it arises. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 63 | KGL Resources Ltd Annual Report 2026
Page 67
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 20. Financial assets and liabilities (continued) Classification and subsequent measurement of financial assets (continued) c) Impairment The Group assesses, on a forward-looking basis, the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Financial liability designated at fair value through profit or loss The Group’s financial liabilities comprise trade and other payables, lease liabilities and the PMPA. Trade and other payables and lease liabilities are measured subsequently at amortised cost using the effective interest method. The PMPA is a hybrid financial instrument within the scope of AASB 9, which the Group has elected to account for as a single financial liability measured at fair value through profit or loss, as set out below. (a) Nature and designation On 1 April 2026, the Group entered into a PMPA with Wheaton. Under the terms of the PMPA, in exchange for an upfront cash deposit of up to US$275,000,000 (Deposit), the Group is required to deliver to Wheaton refined gold and silver (Delivery) equal to the applicable stream percentage of the payable gold and silver produced from the Group’s mine (Mine) over the life of the Mine. The Deposit is advanced in tranches, conditional on the satisfaction of specified conditions precedent, and is to be applied towards the construction and development of the Mine. The first tranche of the Deposit, being US$16,000,000, was received on 18 June 2026. For each Delivery, Wheaton pays the Group a cash amount equal to 20% of the prevailing market price of the metal at the time of delivery (Production Payment). During the period in which the Delivery has not been fully delivered against the Deposit, the balance of the market value of the Delivery (being 80% of the market price) is credited against the outstanding Deposit. Once the Delivery has been fully delivered against the Deposit, the Group continues to deliver refined gold and silver for the remaining life of the Mine, with Wheaton paying only the Production Payment. The volume of refined gold and silver to be delivered to Wheaton is determined by applying the applicable stream percentage, and a payability factor of 90%, to the gold and silver produced from the Mine. The stream percentages reduce over the life of the arrangement as cumulative delivery thresholds are met, as follows: GOLD Period Gold stream percentage From the effective date until 45,000 ounces of refined gold have been delivered 75.0% Thereafter until a further 15,000 ounces of refined gold have been delivered 37.5% Thereafter 25.0% SILVER Period Silver stream percentage From the effective date until 4,300,000 ounces of refined silver have been delivered 75.0% Thereafter until a further 1,700,000 ounces of refined silver have been delivered 37.5% Thereafter 25.0% Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 64 | KGL Resources Ltd Annual Report 2026
Page 68
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 20. Financial assets and liabilities (continued) Financial liability designated at fair value through profit or loss (continued) (a) Nature and designation (continued) The Group is contractually prohibited from delivering to Wheaton the physical gold and silver produced from the Mine. The Mine’s production is sold to a separate offtaker, and the Group sources the refined precious metal delivered to Wheaton on-market. The PMPA for accounting purposes is treated as a financial liability under the scope AASB 9. It is denominated in US dollars and has been designated as at fair value through profit or loss on initial recognition. Transaction costs directly attributable to the PMPA are expensed as incurred. Changes in the fair value of the liability are recognised in profit or loss, except for the component attributable to changes in the Group’s own credit risk, which is recognised in other comprehensive income unless doing so would create or enlarge an accounting mismatch. Amounts recognised in other comprehensive income are not subsequently reclassified to profit or loss. (b) Amounts recognised in the statement of financial position 2026 $ 2025 $ Current - - Non-current 7,683,191 - Total financial liability designated at FVTPL 7,683,191 - As at 30 June 2026, the committed but undrawn portion of the deposit was US$259,000,000 (A$374,331,551). The advancement of the remaining deposit is subject to the satisfaction of conditions precedent under the PMPA. The fair value of the liability reflects the expected future funding to be received, net of the expected future metal deliveries required to settle the liability. (c) Amounts recognised in profit or loss and other comprehensive income 2026 $ 2025 $ Fair value (gains)/losses recognised in profit or loss (15,441,538) - Foreign exchange (gains)/losses recognised in profit or loss 519,473 - Fair value changes attributable to own credit risk recognised in OCI - - Cumulative amount recognised in OCI at reporting date - - The amount of the change in fair value attributable to changes in own credit risk is determined as the change in fair value that is not attributable to changes in observable market conditions giving rise to market risk (being movements in gold and silver prices, foreign exchange rates, the risk-free discount rate and market credit spreads). Movements in credit spreads over the period, including the widening in spreads across the broader high yield metals and mining sector, have been treated as market and sector movements rather than movements in the Group’s own credit risk. Given the short period between initial recognition and the reporting date, and in the absence of any material Group- specific developments affecting its ability to meet its obligations under the PMPA, no fair value movement has been attributed to changes in the Group’s own credit risk during the period. Amounts recognised in other comprehensive income are not reclassified to profit or loss but are transferred within equity to retained earnings when the liability is derecognised. (d) Fair value measurement The PMPA liability is measured at fair value at each reporting date and is classified within Level 3 of the fair value hierarchy, as its measurement relies on significant unobservable inputs. There were no transfers into or out of Level 3 during the year. The fair value is determined using a discounted cash flow technique, performed in US dollars and translated to Australian dollars at the exchange rate at the reporting date. The fair value reflects the expected future funding to be received under the arrangement, net of the expected future metal deliveries required to settle the liability, taking into account forward gold and silver prices, the expected volume and timing of metal deliveries over the life of the mine, the embedded options and termination features of the arrangement, and a risk-adjusted discount rate. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 65 | KGL Resources Ltd Annual Report 2026
Page 69
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 20. Financial assets and liabilities (continued) Financial liability designated at fair value through profit or loss (continued) (d) Fair value measurement (continued) The significant unobservable inputs used in the fair value measurement, and their relationship to fair value, are: UNOBSERVABLE INPUT RANGE (PROBABILITY-WEIGHTED AVERAGE) 2026 RELATIONSHIP TO FAIR VALUE Life-of-mine gold and silver production 48,339 oz payable gold and 5,281,935 oz payable silver, cumulative over 10 contract years from 30 April 2028 Higher expected production increases the fair value of the liability Forward gold and silver prices (US$/oz) Forward curves to the last observable tenor, interpolated to Consensus Economics long-term forecasts at 31 December 2035, escalated at 0.9% p.a. thereafter Higher prices increase the fair value of the liability Risk-adjusted discount rate 14.3% – 15.2% A higher discount rate decreases the fair value of the liability Probability of exercise or occurrence of embedded features 70% full funding / 20% first early deposit only / 10% first and second early deposits only. The cost overrun facility and buy-back option are assumed not to be exercised. Varies There were no significant inter-relationships between the unobservable inputs that materially affect fair value. The effect on the fair value of the liability of a reasonably possible change in each significant unobservable input, with all other inputs held constant, is: CHANGE INCREASE/(DECREASE) IN FAIR VALUE $ Gold and silver prices +/– 10% 22,442,304 / (22,442,304) Production volumes +/– 10% 15,996,346 / (17,072,024) The fair value of the PMPA liability is determined by an external, independent valuer engaged by the Group. Management reviews the valuation, including the key assumptions and inputs, and the reasons for movements in fair value, at each reporting date before it is adopted for financial reporting purposes. (e) Reconciliation of the Level 3 measurement 2026 $ 2025 $ Opening balance - - Deposit tranches received during the year 22,605,256 - Fair value (gains)/losses recognised in profit or loss (15,441,538) - Foreign exchange (gains)/losses recognised in profit or loss 519,473 - Fair value changes attributable to own credit risk in OCI - - Closing balance 7,683,191 - The fair value gains and losses recognised in profit or loss during the year relating to the liability held at the reporting date were a gain of A$14.9 million (2025: nil). (f) Risk exposures Commodity price risk. The fair value of the liability is determined by reference to forward gold and silver prices and will fluctuate with movements in those prices. The sensitivity of the liability to reasonably possible changes in gold and silver prices is set out in (d) above. Foreign currency risk. The liability is denominated in US dollars, whereas the functional currency of the relevant Group entity is Australian dollars. A 10% strengthening of the AUD would decrease the liability and the loss by A$698,471; a 10% weakening would increase them by A$853,688. Liquidity risk. The PMPA is settled principally through the delivery of refined gold and silver rather than cash. However, the Group may be required to repay the advanced or uncredited deposit in cash on early termination, default, or a shortfall against production targets, and to deliver additional metal in the event of a delay in achieving completion. The contractual cash repayment obligations under the PMPA, based on the amounts that would be repayable if the relevant events occurred at the reporting date, are set out below. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 66 | KGL Resources Ltd Annual Report 2026
Page 70
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 20. Financial assets and liabilities (continued) Financial liability designated at fair value through profit or loss (continued) (f) Risk exposures (continued) CONSOLIDATED ON DEMAND / <1 YEAR 1 – 5 YEARS TOTAL CASHFLOWS CARRYING AMOUNT $ $ $ $ 30 June 2026 Uncredited deposit repayable on early termination or default 23,124,729 - 23,124,729 7,683,191 Total contractual repayment obligation 23,124,729 - 23,124,729 7,683,191 30 June 2025 Uncredited deposit repayable on early termination or default - - - - Total contractual repayment obligation - - - - Credit risk / security. The Group’s obligations under the PMPA are secured by first-ranking charges over its interests in the mine and related assets. (g) Critical judgements and estimates Judgement — classification of the PMPA. The Group entered into the PMPA during the year. Significant judgement was required in determining the appropriate accounting for the arrangement, including whether it falls within the scope of AASB 9 Financial Instruments or AASB 15 Revenue from Contracts with Customers. In making this assessment, the Group considered the economic substance of the arrangement and the nature of the precious metal delivered to Wheaton. The Group concluded that the PMPA does not qualify for the “own use” exemption in AASB 9, because the Group is contractually prohibited from delivering to Wheaton the gold and silver produced from the Mine (which is committed to a separate offtaker), and instead satisfies its delivery obligations using refined precious metal acquired on market that is readily convertible to cash. On this basis, the arrangement is considered to be settled net in cash and is a financial liability within the scope of AASB 9, rather than a contract with a customer. Having concluded that the PMPA is a financial liability, the Group elected, on initial recognition, to designate the entire arrangement as at fair value through profit or loss. This is an irrevocable accounting policy choice available under AASB 9 for a hybrid contract of this nature, and results in the arrangement being measured as a single financial instrument rather than separating the embedded derivative features from the host contract. Estimate — fair value of the PMPA liability. Significant judgement and estimation are required in determining the future expected delivery of ounces of refined gold and silver over the term of the PMPA and the associated cash flows, which drive the fair value of the liability. The fair value is measured using a valuation technique with significant unobservable inputs (a Level 3 measurement). In undertaking this assessment, management is required to make significant estimates of, among other things, future production volumes, reserve and resource quantities, the expected timing of deliveries, forward gold and silver prices, discount rates, and the probability that the Group elects to terminate the PMPA prior to the commencement of construction and repay the deposit. These estimates are subject to various risks and uncertainties which may ultimately have a material effect on the fair value of the liability. Details of the inputs and the effect of reasonably possible changes are set out in the fair value measurement note. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 67 | KGL Resources Ltd Annual Report 2026
Page 71
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 21. Financial risk management Financial risk management objectives and policies Management monitors and manages the financial risks relating to the operations of the Group through regular reviews of the risks. These risks include market risk (including interest rate risk, foreign currency risk and commodity price risk), credit risk, and liquidity risk. The primary responsibility for identification and control of financial risks rests with the Board. The Group’s financial and commodity risk management program supports the achievement of the Group’s objectives by enabling the identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks and implementing policies and procedures to manage and monitor the risks. These written policies establish the financial and commodity risk management framework and define the procedures and controls for the effective management of the Group’s risks that arise through the Group’s current exploration and development activities and those risks which may arise through other mining activities in the future. The policy ensures all financial and commodity risks are fully recognised and treated in a manner consistent with: • The Board’s management philosophy, • Commonly accepted industry practice and corporate governance, and • Shareholders’ expectations of becoming a copper, silver and gold producer. The policies are reviewed by the Board annually, at a minimum, as the Group’s financial and commodity risks are likely to change over time. Other than entering the PMPA, there have been no other substantive changes in the Group’s exposure to financial instrument risks. There have been no substantive changes in the Group’s objectives, policies and processes for managing its financial instrument risk or the methods used to measure them from the previous period. The Group’s principal financial instruments comprise cash at bank, security deposits, trade and other payables, other financial liabilities and lease liabilities. Exposure limits are reviewed by management on a continuous basis. The Group does not enter into, or trade, financial instruments for speculative purposes. Credit risk exposures Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Credit risk arises principally from cash on deposit and trade and other receivables. The objective of the Group is to minimize risk of loss from credit risk exposure. The maximum exposure to credit risk, excluding the value of any collateral or other security at reporting date, is the carrying amount of those assets, net of any impairment, as disclosed in the statement of financial position and notes to the financial statements. In both the year ended 30 June 2026 and the year ended 30 June 2025, there has been no concentration of credit risk in trade and other receivables as the Group did not have customers at either year end. At year end, the Group has one material exposure of $25,283,503 to ANZ (30 Jun 2025: $5,682,699) relating to funds on deposit and cash at bank. The Group manages its credit risk associated with funds on deposit and cash at bank by only dealing with reputable financial institutions. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The objective of managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they fall due. Working capital is primarily comprised of cash. The Group has established policies and processes for managing liquidity risk including: • Monitoring actual cashflows against budgeted cashflows, • Regularly forecasting long term cashflows and stress testing, and • Regularly monitoring the availability of equity capital and current market conditions. Page 68 | KGL Resources Ltd Annual Report 2026
Page 72
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 21. Financial risk management (continued) Maturity Analysis The following table shows the periods in which financial liabilities mature. Contractual cash flows shown in the table are at undiscounted values (including future interest expected to be paid). Accordingly, these values may not agree to the carrying amount. CONSOLIDATED <1 YEAR 1 – 5 YEARS TOTAL CASHFLOWS CARRYING AMOUNT $ $ $ $ 30 June 2026 Financial liabilities Trade and other payables 17,872,043 - 17,872,043 17,872,043 PMPA financial liability - 7,683,191 7,683,191 7,683,191 Lease liabilities 116,412 84,857 201,269 189,098 Total financial liabilities 17,988,455 7,768,048 25,756,503 25,744,332 30 June 2025 Financial liabilities Trade and other payables 1,249,841 - 1,249,841 1,249,841 Lease liabilities 27,203 - 27,203 27,203 Total financial liabilities 1,277,044 - 1,277,044 1,277,044 Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in commodity prices (commodity price risk); foreign exchange rates (foreign currency risk) or interest rates (interest rate risk). The objective of market risk management is to manage and control risk exposure within acceptable parameters whilst optimising returns. It is the policy of the Group to manage the foreign currency risk on highly probable forecast capital expenditure by utilising foreign currency hedging where appropriate. There was no foreign currency held as a hedging instrument at either 30 June 2026 or 30 June 2025. At 30 June 2026 the Group held a United States dollar denominated financial liability of A$7,683,191 and a United States dollar bank account. The sensitivity of the financial liability to movements in the exchange rate is set out in Note 20(f). Hedging of commodity exposure and interest rate swap will be considered where appropriate. Page 69 | KGL Resources Ltd Annual Report 2026
Page 73
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 Interest rate risk The Group has established policies and processes for managing interest rate risk. These include monitoring risk exposure continuously and utilising fixed rate facilities where required. The Group’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial assets and liabilities is set out in the following table: CONSOLIDATED 30 JUNE 2026 WEIGHTED AVERAGE INTEREST RATE FLOATING INTEREST RATE FIXED INTEREST RATE MATURING IN NON- INTEREST BEARING TOTAL< 1 YEAR 1 TO 5 YEARS % $ $ $ $ $ Financial assets Cash and cash equivalents 4.39 24,955,434 - - 328,069 25,283,503 Security deposits 4.59 - 148,765 417,831 - 566,596 Trade and other receivables N/A - - - 1,291,169 1,291,169 Total financial assets 24,955,434 148,765 417,831 1,619,238 27,141,268 Financial liabilities Trade and other payables - - - - (17,705,643) (17,705,643) Financial liability – PMPA - - - - (7,683,191) (7,683,191) Lease liabilities 7.02 - (110,411) (78,687) - (189,098) Total financial liabilities - - (110,411) (78,687) (25,388,834) (25,577,932) 30 June 2025 Financial assets Cash and cash equivalents 3.81 1,057,959 3,500,000 - 558,144 5,116,103 Security deposits 4.38 - 148,765 417,831 - 566,596 Trade and other receivables N/A - - - 77,813 77,813 Total financial assets 1,057,959 3,648,765 417,831 635,957 5,760,512 Financial liabilities Trade and other payables N/A - - - (1,249,841) (1,249,841) Lease liabilities 6.93 - (27,203) - - (27,203) Total financial liabilities - (27,203) - (1,249,841) (1,277,044) Interest rate risk (continued) The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date. At 30 June 2026, if interest rates had moved, as illustrated in the table below, with all other variables held constant, net loss and other comprehensive income would have been affected as follows: CONSOLIDATED NET LOSS HIGHER / (LOWER) OTHER COMPREHENSIVE INCOME HIGHER / (LOWER) 30 JUN 2026 30 JUN 2025 30 JUN 2026 30 JUN 2025 $ $ $ $ +0.5% (50 basis points) 127,610 34,843 - - -0.5% (50 basis points) (127,610) (34,843) - - The analysis reflects the Group’s floating rate cash balances only and does not include the PMPA financial liability, which bears no contractual interest but whose fair value is sensitive to the risk-free discount rate applied in its valuation. Refer to Note 20 for the valuation inputs and sensitivities applicable to that liability. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 70 | KGL Resources Ltd Annual Report 2026
Page 74
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 22. Commitments CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Capital expenditure commitments – exploration and evaluation assets No longer than 1 year 1,657,708 615,639 Between 1 and 5 years - Total capital expenditure commitments – exploration and evaluation assets 1,657,708 615,639 Capital expenditure commitments of less than one year are outstanding purchase order commitments relating to the Jervois Project. Non-cancellable rental commitments – tenements Commitments for rental payments in relation to tenements are payable: No longer than 1 year 77,534 76,902 Between 1 and 5 years 242,791 242,650 Greater than 5 years 172,748 172,627 Total commitments for rental payments in relation to tenements 493,073 492,179 Rental commitments comprise the tenement rentals at Jervois, Unca Creek, Mt Cornish and Yambah. The annual rental commitments on these leases range from $1,132 to $36,232 per annum with expiry terms of between 1 and 10 years. AASB 16 Leases does not apply to mining tenements. Capital expenditure commitments – other lease commitments No longer than 1 year 109,879 52,386 Between 1 and 5 years 84,857 - Total commitments for rental payments in relation to tenements 194,736 52,386 Other lease commitments are commitments relating to occupation of the Brisbane, Milton corporate office. 23. R elated party transactions Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Other than key management personnel compensation and transactions disclosed in the Remuneration Report and Note 24, there were no other related party transactions during the year. Parent entity The parent entity is KGL Resources Limited, which is incorporated in Australia. Subsidiaries Interests in subsidiaries are disclosed in Note 16. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 71 | KGL Resources Ltd Annual Report 2026
Page 75
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 24. Key management personnel compensation Information regarding the identity of key management personnel and their compensation can be found in the audited Remuneration Report contained in the Directors’ Report. The directors, the Chief Executive Officer, the Chief Financial Officer, and former staff holding these positions are the only key management personnel. The total remuneration paid to key management personnel of the Company and the Group during the year is as follows: CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Key management personnel compensation Short-term employee benefits 922,677 912,539 Post-employment benefits 65,317 66,686 Other long-term benefits 39,519 4,055 Share-based payments 174,974 - Total key management personnel compensation 1,202,487 983,280 Short-term employee benefits These amounts include fees and benefits paid to the Board as well as salary, paid leave benefits, fringe benefits and cash bonuses awarded to executive directors and other key management personnel. Post-employment benefits These amounts are superannuation contributions made during the year. Share-based payments These amounts represent the expense recognised in respect of the participation of key management personnel in equity-settled share-based payment arrangements, measured at the grant date fair value of the ordinary shares and Performance Rights granted. Refer to Note 19 for further information. Detailed remuneration disclosures are provided in the Remuneration Report. Amounts payable to key management personnel At 30 June 2026, the following amounts due to members of key management personnel were outstanding: CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Payable to key management personnel Executive Chairman’s fees - 262,000 Director’s fees and superannuation - 4,390 Total payable to key management personnel - 266,390 Other related party transactions Other than as noted above, there were no other transactions with other related parties during the year. 25. A uditor’s remuneration CONSOLIDATED 30 JUN 2026 30 JUN 2025 $ $ Amounts paid or payable to BDO Audit Pty Ltd for audit or review of the financial statements of the Company and any other entity in the Group 104,786 80,730 Other assurance services - - Total services provided by BDO Audit Pty Ltd 104,786 80,730 Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 72 | KGL Resources Ltd Annual Report 2026
Page 76
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 26. Contingent liabilities and contingent assets Contingent assets There were no contingent assets at 30 June 2026 or at 30 June 2025. Contingent liabilities There were no contingent liabilities at 30 June 2026. 27. Events after reporting date On 30 July 2026, the Group completed its equity raise of A$300m to progress the development of its Jervois Project. No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods. 28. P arent entity information The consolidated financial statements incorporate the assets, liabilities and results of the parent entity in accordance with the Group accounting policies. The financial information for the parent entity, KGL, has been prepared on the same basis as the consolidated financial statements, except as set out below: i) Investment in Subsidiaries Investments in subsidiaries are accounted for at cost in the financial statements of KGL. 30 JUN 2026 30 JUN 2025 $ $ Parent entity Current assets 26,468,840 4,963,972 Non-current assets 133,454,670 126,224,564 Total assets 159,923,510 131,188,536 Current liabilities (15,326,402) (1,015,625) Non-current liabilities (7,761,878) - Total liabilities (23,088,280) (1,015,625) Net assets 136,835,230 130,172,911 Contributed equity 273,253,410 262,686,028 Share-based payment reserve 34,342 135,800 Accumulated losses (136,452,522) (132,648,917) Total shareholders’ equity 136,835,230 130,172,911 30 JUN 2026 30 JUN 2025 $ $ Total comprehensive loss for the year (3,803,605) (3,033,035) Guarantees KGL Resources Limited has guaranteed the payment and performance of all obligations of KGL Marketing Pty Ltd under the PMPA with Wheaton. Refer to Note 20. Contractual commitments Other than a lease commitment in respect of the Brisbane corporate office (refer to Note 12), the parent entity has no capital commitments. Contingent liabilities The parent entity has no known contingent liabilities. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 73 | KGL Resources Ltd Annual Report 2026
Page 77
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 29. Other accounting policies Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except: • Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable, and • Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Cash flows are included in the statement of cashflows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, is classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 74 | KGL Resources Ltd Annual Report 2026
Page 78
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 30. Consolidated Entity Disclosure Statement As at 30 June 2026 Name of entity* KGL Resources Limited Jinka Minerals Limited Jervois Holdings Pty Ltd Jervois Operations Pty Ltd KGL Resources Sales Pty Ltd KGL Marketing Pty Ltd Type of entity Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Trustee, partner or participant in joint venture** - - - - - - % of share capital held N/A 100 100 100 100 100 Country of incorporation Australia Australia Australia Australia Australia Australia Australian resident Ye s Ye s Ye s Ye s Ye s Ye s Foreign jurisdiction(s) in which the entity is a resident for tax purposes (according to the law of the foreign jurisdiction)*** N/A N/A N/A N/A N/A N/A * Entities listed here are those that are part of the consolidated entity at the end of the fi nancial year. Entities disposed of during the year, or where the entity has lost control by the reporting date, are not included here. This means that entities listed could be different to the ‘Interests in subsidiaries’ note contained in the notes to the financial statements. ** This means whether , at that time, the entity was a trustee of a trust within the consolidated entity, a partner in a partnership within the consolidated entity, or a participant in a joint venture within the consolidated entity. *** The de fi nitions of ‘Australian resident’ and ‘foreign resident’ in the ITAA 1997 are mutually exclusive. This means if an entity is an ‘Australian resident’ it cannot be a ‘foreign resident’ for the purposes of the public company disclosures in the consolidated entity disclosure statement (only applicable to financial years beginning 1 July 2023 – 30 June 2024, for financial years beginning on or after 1 July 2024 the disclosure requirements have changed). Basis of Preparation This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001, reflecting the amendments to section 295(3A)(vi) and (vii) which clarify the definition of foreign resident as being an entity that is treated as a resident of a foreign country under the tax laws of that foreign country. The CEDS includes certain information for each entity that was part of the consolidated entity at the end of the financial year in accordance with AASB 10 Consolidated Financial Statements. Determination of Tax Residency Section 295(3B)(a) of the Corporations Act 2001 defines Australian resident as having the meaning in the Income Tax Assessment Act 1997. The determination of tax residency involves judgement as there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency. Section 295(3A)(a)(vii) requires the determination of tax residency in a foreign jurisdiction to be based on the law of the foreign jurisdiction relating to foreign income tax. In determining tax residency, the consolidated entity has applied the following interpretations: 1. Australian tax residency The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner’s public guidance in Tax Ruling TR 2018/5. 2. Foreign tax residency Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in determining tax residency in those foreign jurisdictions and ensure compliance with applicable foreign tax legislation. Notes to the financial statements for the year ended 30 June 2026 Notes to the financial statements for the year ended 30 June 2026 Page 75 | KGL Resources Ltd Annual Report 2026
Page 79
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 1. In the opinion of the directors of K GL Resources Limited: (a) The financial statements and notes set out on pages 43 to 75 are in accordance with the Corporations Act 2001, including: (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and (ii) giving a true and fair view of the Group ’s fi nancial position as at 30 June 2026 and of its performance for the year ended on that date, and (b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable, and (c) The consolidated entity disclosure statement on page 75 is true and correct. 2. Note 1 con fi rms that the fi nancial statements also comply with International Financial reporting Standards as issued by the International Accounting Standards Board. 3. The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the chief executive officer and chief financial officer for the year ended 30 June 2026. This declaration is made in accordance with a resolution of the directors. On behalf of the Board Jeff Gerard Chairman Brisbane Dated: 29 September 2026 Directors’ Declaration Page 76 | KGL Resources Ltd Annual Report 2026
Page 80
Independent Auditor’s Report Page 77 | KGL Resources Annual Report 2026
Page 81
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 Level 18, 360 Queen Street Brisbane QLD 4000 GPO Box 457 Brisbane QLD 4001 Australia Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of B DO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member fi rms. Liability limited by a scheme approved under Professional Standards Legislation. INDEPENDENT AUDITOR'S REPORT To the members of KGL Resources Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of KGL Resources Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2026, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial report, including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration. In our opinion the accompanying financial report of the Group, is in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its financial performance for the year ended on that date; and (ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Page 78 | KGL Resources Ltd Annual Report 2026
Page 82
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of B DO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member fi rms. Liability limited by a scheme approved under Professional Standards Legislation. Carrying value of exploration and evaluation assets Key audit matter How the matter was addressed in our audit Refer to note 13 in the financial report. There is a significant balance of exploration and evaluation assets as at 30 June 2026. The carrying value of these assets was a key audit matter due to the significance of the balance and the judgement required in assessing whether the requirements of AASB 6 Exploration for and Evaluation of Mineral Resources continue to be met. Our audit procedures included, amongst others: • Obtaining supporting documentation to confirm that the Group has valid rights to explore the areas represented by the capitalised expenditure and that the relevant tenements remained in good standing. • Assessing additions to exploration and evaluation assets to determine whether the expenditure met the recognition requirements of AASB 6. • Enquiring of management regarding the status of exploration programs and assessing the Group’s approved expenditure plans for the relevant areas of interest. • Enquiring of management the steps to be taken to reach final investment decision and considering whether classification as an exploration and evaluation asset is appropriate. Accounting treatment of PMPA Key audit matter How the matter was addressed in our audit Refer to notes 15 and 20 in the financial report. During the year, the Group entered into a Precious Metals Purchase Agreement (PMPA) and recognised a financial liability measured at fair value through profit or loss. This was considered a key audit matter due to the significant judgement involved in determining the appropriate accounting treatment under AASB 9 Financial Instruments and the valuation of the liability using a Level 3 valuation model. Our audit procedures included, amongst others: • Reviewing the PMPA agreement to obtain an understanding of the relevant terms and conditions of the contract. • Reviewing managements position paper and their external expert’s advice on the appropriate accounting treatment. • Engaging with our internal experts to assist in reviewing managements assessment of the appropriate accounting treatment. • Engaging with our internal experts to assess managements external expert’s valuation of the PMPA financial liability at initial recognition and at balance date. This assessment included consideration of the methods adopted, assumptions used and conclusion reached. • Assessing the professional competence and objectivity of managements external experts. • Assessing the adequacy of the related financial statement disclosures. Page 79 | KGL Resources Ltd Annual Report 2026
Page 83
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of B DO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member fi rms. Liability limited by a scheme approved under Professional Standards Legislation. Other information The directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 30 June 2026, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the Financial Report The directors of the Company are responsible for the preparation of: a) the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: i) the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. Page 80 | KGL Resources Ltd Annual Report 2026
Page 84
KGL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES | ABN 52 082 658 080 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of B DO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member fi rms. Liability limited by a scheme approved under Professional Standards Legislation. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at: https://www.auasb.gov.au/media/bwvjcgre/ar1_2024.pdf This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 33 to 39 of the directors’ report for the year ended 30 June 2026. In our opinion, the Remuneration Report of KGL Resources Limited, for the year ended 30 June 2026, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. BDO Audit Pty Ltd A J Whyte Director Brisbane, 29 September 2026 Page 81 | KGL Resources Ltd Annual Report 2026
Page 85
Additional Information AS AT 9 SEPTEMBER 2026 1. Names of substantial holders NAME OF HOLDER NO. OF SECURITIES ISSUED CAPITAL % KMP INVESTMENTS PTE LTD 822,470,130 36.21% CITICORP NOMINEES PTY LIMITED 374,164,601 16.47% HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 154,685,638 6.81% HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 115,882,214 5.10% 2. Number of holders in each class of equities NO. OF HOLDERS NO. OF UNITS Ordinary Shares 3,328 2,271,390,766 Performance Rights 3 1,250,000 3. V oting rights attached to each class of security Each fully paid ordinary share is entitled to one vote . 4. Distribution schedule RANGE SECURITIES NO. OF HOLDERS 100,001 and Over 2,220,271,528 465 10,001 to 100,000 44,840,879 1,173 5,001 to 10,000 3,435,486 444 1,001 to 5,000 2,751,943 944 1 to 1,000 90,930 302 TOTAL 2,271,390,766 3,328 Page 82 | KGL Resources Ltd Annual Report 2026 Page 83 | KGL Resources Ltd Annual Report 2026
Page 86
6. 20 L argest holders: Ordinary shares RANK NAME 9 SEPTEMBER 2026 ISSUED CAPITAL % 1 KMP INVESTMENTS PTE LTD 822,470,130 36.21 2 CITICORP NOMINEES PTY LIMITED 410,961,338 18.09 3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 154,871,909 6.82 4 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 115,882,214 5.10 5 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 79,506,465 3.50 6 UBS NOMINEES PTY LTD 77,320,485 3.40 7 BNP PARIBAS NOMS PTY LTD 65,036,517 2.86 8 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2 59,676,213 2.63 9 MARSHALL PLENTY INVESTMENTS 39,295,022 1.73 10 BNP PARIBAS NOMINEES PTY LTD 35,954,913 1.58 11 WARBONT NOMINEES PTY LTD 28,872,487 1.27 12 IMMEUBLE PTY LTD 21,000,000 0.92 13 ROBRIAN PTY LTD 20,000,000 0.88 14 RCF VIII AIV-A PTY LTD 18,711,742 0.82 15 CERTANE CT PTY LTD 18,156,534 0.80 16 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 16,578,375 0.73 17 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 10,827,485 0.48 18 TREASURY SERVICES GROUP PTY LTD 10,000,000 0.44 19 BNP PARIBAS NOMINEES PTY LTD 8,485,196 0.37 20 PALM BEACH NOMINEES PTY LIMITED 7,178,267 0.32 Page 82 | KGL Resources Ltd Annual Report 2026 Page 83 | KGL Resources Ltd Annual Report 2026
Page 87
ANNUAL REPORT 30 June 2026Level 1, 5 Gardner Close, Milton QLD 4064, Australia T: +61 (0) 7 3071 9003 | F: +61 (0) 7 3071 9008 | info@kglresources.com.au kglresources.com.au