Interim report
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Ferro-Alloy Resources Limited Interim Financial Report (unaudited) for the six months ended 30 June 2026
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Contents 1 Interim Management Report 4 Directors’ Responsibility Statement 5 Condensed unaudited Statement of Profit or Loss and Other Comprehensive Income 6 Condensed unaudited Statement of Financial Position 7 Condensed unaudited Statement of Changes in Equity 8 Condensed unaudited Statement of Cash Flows 9 Notes to the Condensed unaudited Financial Statements 22 Company Information
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STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 1 Interim Management Report Introduction The Company is primarily engaged with progressing the giant Balasausqandiq vanadium project (“the Project”) to production. The Company also operates a small-scale process plant with a strategic focus on research and development (“R&D”) for the Company’s carbon black substitute (“CBS”) product. Project progression Following the issue of the feasibility study in October 2025, the current stage of the Project’s development is front-end engineering and design, after which the Company expects to receive quotations from construction engineers for the building of the Project. Concurrently, in order to secure finance for the Project, the Company is engaging with various financial institutions and other governmental organisations, particularly in the US, which may support the financing of the Project owing to vanadium and rare earth elements (“REEs”) being critical metals. To that end, the Company has received a letter from a large US government financing institution (“the USGFI”) indicating the USGFI’s willingness to consider a formal application for a loan for the Project, subject to the USGFI’s comprehensive review and approval process. Research and development The Group has focused on two main areas of R&D during the period; the progression of the CBS product and the development of the REEs contained within the Balasausqandiq ore. CBS Following a competitive tender process, the Group has been awarded a new grant of US$500,000 by the Kazakhstan Science Fund. The purpose of the grant is to fund the installation of new equipment that will support the preparation of samples of CBS (40% carbon) for future industrial-scale testing and commercial offtake negotiations. Once installed, the plant will be capable of producing up to 1,000 tonnes of high grade CBS sample. Under the terms of the funding, the Group is required to co-fund the grant with US$227,000. The Group has continued test work and product refinement processes with potential Chinese customers. REEs As identified in the Company’s prospectus and related Competent Persons Report, the ore at the Balasausqandiq deposit is known to contain REEs, as evidenced by historical analytical work conducted at the deposit as part of the Company’s previous studies. The Group has focused on the optimisation of the processes to recover the yttrium and other REEs present in the residual leach solutions produced by the proposed Project processing facility, following the extraction of the vanadium, to produce a mixed rare earth concentrate. Processing Despite the focus of the existing plant being on R&D, the Group procured and treated vanadium-bearing concentrates that were considered profitable to process. As a result, the existing plant produced in the first six months of the year 96 tonnes (2025: 151 tonnes) of vanadium pentoxide (mainly as ammonium metavanadate) and 14.6 tonnes (2025: 27.8 tonnes) of molybdenum (in ferro- molybdenum). Corporate During the period, the Company issued 28,621,701 ordinary shares of nil par value in the capital of the Company for gross proceeds of £1,574,194. See Note 16 for further details. Earnings and cash flow The Group generated total revenues of US$1.8m for the period compared to US$2.5m for the first six months of 2025, representing a decrease in overall revenues of 28%. The decrease in revenues primarily reflects a 35% reduction in the volume of raw materials processed by the plant during the period due to the unavailability of suitable materials available in the market for processing. The cost of sales for the period under review was US$2.3m (2025: US$3.4m) which is line with the volumes of concentrates processed by the existing operation during the period. A gross loss of US$0.5m was recorded for the period (2025: US$0.8m). Administrative expenses for the period were US$1.6m (2025: US$1.5m) while corresponding net finance costs were US$1m (2025: US$1.1m). The Group made a loss before and after tax of US$3.2m (2025: loss of US$3.5m).
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Ferro-Alloy Resources Limited Interim Financial Report 2026 2 Interim Management Report continued Net cash outflows used in operating activities were US$2.4m (2025: cash outflow of US$0.5m). Net cash used in investing activities during the period was US$0.4m (2025: cash outflow of US$2.2m) representing a decrease outflow of US$1.8m attributable to the completion of the Company’s feasibility study, the costs of which have historically been capitalised by the Company. Net cash inflow from financing activities was US$1m (2025: net cash outflow of US$1.1m) representing the proceeds of the equity issued noted above less interest paid on the bonds previously issued by the Company under the 2023 US$20 million Kazakhstan bond programme (“the Bond Programme”). Balance sheet review At the period end, non-current assets totalled US$14.4m (2025: US$13.2m) reflecting the completion of the feasibility study during October 2025 and the conclusion of the capitalisation of the vast majority of the costs of same. Current assets, excluding cash balances, totalled US$4.4m at the period end in comparison to US$5m for the prior period. The Group held an aggregate cash balance of US$0.8m at the period end (2025: US$0.4m). Non-current liabilities at the period end were US$5.1m (2025: US$17.2m) reflecting the accounting reclassification of several tranches of bonds, previously issued under the Bond Programme, to current liabilities given their maturity dates. Current liabilities at the period end were US$16.1m (2025:US$4.6m) the difference between the periods being attributable to the accounting reclassification noted above. Environmental, social and governance Both the existing operation and the planned process plant for Balasausqandiq will have a strongly positive environmental impact. The vanadium from production will benefit energy storage in both vanadium redox flow batteries, the front-running technology for fixed ground long-term energy storage, but also potentially in certain technologies for mobile batteries used in electric vehicles. The CO2 emissions created by our production at Balasausqandiq are expected to be a fraction of most other producers which generally require concentration and high- temperature roasting to liberate the vanadium. The CBS which we plan to market as a replacement for carbon black is produced without burning hydrocarbons, as is the usual production process. Description of principal risks, uncertainties and how they are managed (a) Current processing operations Current processing operations make up a small part of the Company’s expected future value and allow the Group to gain valuable experience of the vanadium and carbon black industries and will provide an experienced workforce ready to build and operate the planned operating plant. The principal risks of this operation are the prices of its products (vanadium, molybdenum and nickel), availability of vanadium- bearing concentrates and the efficiency of recovery of products from those concentrates. The Group is constantly reviewing the market opportunities for supplies of vanadium-bearing concentrates from reliable suppliers that can deliver concentrates that are profitable to treat and on a timely basis. (b) Balasausqandiq project The Project is primarily dependent on long-term vanadium prices. The Project is also dependent on raising finance to meet projected capital costs (see below) and the successful construction and commissioning of the Project’s proposed mine processing facilities. It is not unusual for new mining projects to experience unforeseen problems, incur unexpected costs and be exposed to delays during construction, commissioning, and initial production, all of which could have a material adverse effect on the Company’s operations and financial position. The Company has taken steps to mitigate such potential adverse effects by engaging globally recognised engineers and consultants to assist with the development and design of the key elements of the Project in addition to the Group’s own highly qualified workforce. (c) Geopolitical situation While the ongoing invasion of Ukraine by Russia is not directly impacting the Group, the Directors remain vigilant of the situation. The continued main risk of the conflict is to the Group’s transport routes, many of which involve transit through Russia. Whilst these are currently operating without issue, sanctions have been made against Russian and Belarusian vehicles transiting through Europe (but not against vehicles registered in other jurisdictions in the region such as Kazakhstan). There is a risk that further sanctions might prevent transit through Russia into Latvia,
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STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 3 through which the majority of the Company’s exports flow. The Company continues to review alternative transit routes for raw material imports and product exports through the West of Kazakhstan via the Caspian Sea. Routes to China are working normally. With respect to the global sanctions imposed on certain Russian entities and individuals, the Group monitors the implications of those sanctions on the Group’s trading activities on an ongoing basis. The Company has not yet identified any risks applicable to the Group due to the ongoing conflict in the Middle East but will continue to monitor the situation. (d) Financing risk The Project will require substantial funds to be raised in debt and equity which will be dependent upon market conditions at the time. In March 2021 the Company signed an investment agreement with Vision Blue Resources Ltd (“Vision Blue”). Under the terms of this agreement and in addition to Vision Blue’s participation in various secondary equity fundraises completed by the Company, investments totalling US$19m have been made by Vision Blue. Vision Blue holds options to subscribe up to US$30m at pre-agreed prices to partially finance the construction of the Project. (e) Climate change risk The Group has not identified any particular climate change related scenarios that would likely have a significant impact on the Project or the existing operation. The existing operation already functions in an environment that is subject to extreme weather conditions and is, therefore, considered to have a strong resilience to existing and future climate- related scenarios. (f) Risks associated with the developing nature of the Kazakh economy According to the World Bank, Kazakhstan has transitioned from lower-middle-income to upper-middle-income status in less than two decades. Kazakhstan’s regulatory environment has similarly developed and the Company believes that the period of rapid change and high risk is coming to an end. Nevertheless, the economic and social regulatory environment continues to develop and there remain some areas where regulatory risk is greater than in developed economies. The Company mitigates this risk by monitoring developments in these regulatory environments on a regular basis and taking relevant actions where required. (g) Commodity price risk As already noted above, the success of the Company is dependent upon the long-term prices of the products to be produced by the planned mine processing facilities. As a result of there being no formally established trading markets for the Company’s principal products from the Project, there is a risk that price fluctuations and volatility for these products may have an adverse impact on the Company’s future financial performance. The Company will mitigate this risk by regularly reviewing third party commodity pricing forecasts and considering hedging opportunities, as appropriate. (h) Key personnel risk The Group is dependent upon its executive management team. Whilst it has entered into contractual agreements at market rates with the aim of securing the services of these personnel, the retention of their services cannot be guaranteed. The development and success of the Group depends on its ability to recruit and retain high quality and experienced staff. The loss of the service of key personnel or the inability to attract additional qualified personnel as the Group grows could have an adverse effect on future financial performance. The Company mitigates this risk by regularly reviewing and revising, where necessary, executive management remuneration and incentivisation packages against market rates and by maintaining an open dialogue on key personnel matters. (i) Foreign currency risk Fluctuations in currency exchange rates, principally between the US Dollar and Kazakhstan Tenge could adversely impact the Group’s future earnings and cash flows. The Company mitigates this risk by maintaining appropriate internal foreign exchange rate policies.
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4 Ferro-Alloy Resources Limited Interim Financial Report 2026 We confirm that to the best of our knowledge: a. the condensed set of unaudited financial statements which have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and its undertakings included in the consolidation as a whole, as required by DTR 4.2.4R; b. the interim management report includes a fair review of the information required by DTR 4.2.7R; and c. the interim management report includes a fair review of the information required by DTR 4.2.8R. This interim financial report for the six months ended 30 June 2026 has been approved by the Board and signed on its behalf by: William Callewaert Director 25 September 2026 Directors’ Responsibility Statement
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Ferro-Alloy Resources Limited Interim Financial Report 2026 5 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Note Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Revenue from customers (pricing at shipment) 2 1,818 2,533 4,524 Final pricing adjustments after delivery 2 - (4) 7 Total revenue 2 1,818 2,529 4,531 Cost of sales 3 (2,320) (3,354) (6,253) Gross loss (502) (825) (1,722) Other income 4 4 42 70 Administrative expenses 5 (1,620) (1,547) (3,565) Distribution expenses (111) (59) (137) Other expenses 6 (22) (36) (504) Loss from operating activities (2,251) (2,425) (5,858) Net finance cost 8 (966) (1,072) (2,557) Loss before income tax (3,217) (3,497) (8,415) Income tax - - - Loss for the period (3,217) (3,497) (8,415) Other comprehensive loss Items that may be reclassified subsequently to profit or loss Exchange differences arising on translation of foreign operations 2,308 (523) (261) Total comprehensive loss for the period (909) (4,020) (8,676) Loss per share (basic and diluted) 16 (0.006) (0.007) (0.017) These condensed unaudited financial statements were approved by the directors on 25 September 2026 and signed by: William Callewaert Director Condensed unaudited Statement of Profit or Loss and Other Comprehensive Income for the six months ended 30 June 2026
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Ferro-Alloy Resources Limited Interim Financial Report 2026 6 Note Unaudited 30 June 2026 $000 Unaudited 30 June 2025 $000 Audited 31 December 2025 $000 ASSETS Non-current assets Property, plant and equipment 9 3,322 3,237 3,605 Exploration and evaluation assets 10 11,066 8,975 10,480 Intangible assets 11 18 17 18 Prepayments 14 3 944 - Total non-current assets 14,409 13,173 14,103 Current assets Inventories 12 1,311 2,198 1,318 Trade and other receivables 13 1,940 2,083 1,307 Prepayments 14 1,188 732 931 Cash and cash equivalents 15 832 391 1,684 Total current assets 5,271 5,404 5,240 Total assets 19,680 18,577 19,343 EQUITY AND LIABILITIES Equity Share capital 63,313 56,118 61,212 Additional paid-in capital 397 397 397 Share-based payment reserve 76 42 76 Foreign currency translation reserve (3,156) (5,725) (5,464) Accumulated losses (62,167) (54,032) (58,950) Total equity (1,537) (3,200) (2,729) Non-current liabilities Loans and borrowings 17 5,000 17,134 5,000 Long-term liabilities 84 - 85 Provisions 30 24 29 Total non-current liabilities 5,114 17,158 5,114 Current liabilities Loans and borrowings 17 12,563 - 12,872 Trade and other payables 18 3,235 4,316 4,086 Interest payable 17 305 303 - Total current liabilities 16,103 4,619 16,958 Total liabilities 21,217 21,777 22,072 Total equity and liabilities 19,680 18,577 19,343 Condensed unaudited Statement of Financial Position for the six months ended 30 June 2026
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Ferro-Alloy Resources Limited Interim Financial Report 2026 7 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Condensed unaudited Statement of Changes in Equity for the six months ended 30 June 2026 Share capital $000 Additional paid in capital $000 Share- based payment reserve $000 Foreign currency translation reserve $000 Accumulated losses $000 Total $000 Balance at 1 January 2025 55,027 397 42 (5,202) (50,535) (271) Loss for the year - - - - (3,497) (3,497) Other comprehensive income Exchange differences arising on translation of foreign operations - - - (523) - (523) Total comprehensive loss for the period - - - (523) (3,497) (4,020) Transactions with owners, recorded directly in equity Shares issued, net of issue costs 1,091 - - - - 1,091 Balance at 30 June 2025 56,118 397 42 (5,725) (54,032) (3,200) Balance at 31 December 2025 61,212 397 76 (5,464) (58,950) (2,729) Balance at 1 January 2026 61,212 397 76 (5,464) (58,950) (2,729) Loss for the period - - - - (3,217) (3,217) Other comprehensive loss Exchange differences arising on translation of foreign operations - - - 2,308 - 2,308 Total comprehensive loss for the period - - - 2,308 (3,217) (909) Transactions with owners, recorded directly in equity Shares issued, net of issue costs 2,101 - - - - 2,101 Balance at 30 June 2026 63,313 397 76 (3,156) (62,167) (1,537)
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Ferro-Alloy Resources Limited Interim Financial Report 2026 8 Note Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Cash flows from operating activities Loss for the period (3,217) (3,497) (8,415) Adjustments for: Depreciation and amortisation 3, 5 354 404 441 Write-down of inventory to net realisable value - - 205 Write-off of prepayments - - 40 Share-based payment expense - - 34 Net finance costs 8 966 1,072 2,557 Cash used in operating activities before changes in working capital (1,897) (2,021) (5,138) Change in inventories 887 (1,324) (444) Change in trade and other receivables 143 (846) (70) Change in prepayments (456) 148 893 Change in trade and other payables (1,081) 3,451 4,004 Change in deferred income 19 - 102 (102) Net cash used in operating activities (2,404) (490) (857) Cash flows from investing activities Acquisition of property, plant and equipment 9 (54) (104) (281) Acquisition of exploration and evaluation assets 10 (386) (2,101) (3,387) Proceeds from disposal of plant and equipment - - 59 Net cash used in investing activities (440) (2,205) (3,609) Cash flows from financing activities Proceeds from issue of share capital 2,040 10 4,381 Interest paid 17 (998) (1,123) (2,120) Net cash used in financing activities 1,042 (1,113) 2,261 Net decrease in cash and cash equivalents (1,802) (3,808) (2,205) Cash and cash equivalents at the beginning of the period / year 15 1,684 3,777 3,777 Effect of movements in exchange rates on cash and cash equivalents 950 422 112 Cash and cash equivalents at the end of the period/year 832 391 1,684 Condensed unaudited Statement of Cash Flows for the six months ended 30 June 2026
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9 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 1 (a) Basis of preparation These Condensed unaudited Financial Statements have been prepared in accordance with IAS34 ‘Interim Financial Reporting’ and International Financial Reporting Standards as adopted by the European Union (“IFRS”) on a going concern basis. The same accounting policies and basis of preparation have been followed as adopted in the annual financial statements of the Group which were published on 30 April 2026. (b) Going concern The consolidated unaudited financial statements for the six months ended 30 June 2026 have been prepared in accordance with IFRS on a going concern basis. The operations of the Group are financed from a combination of cash flows generated by the existing operation, bond issues and funds raised from shareholders and strategic investors. In common with many pre-production entities, the Group will need to raise further funds in order to progress from the feasibility study phase into construction and ultimately into production. The Directors consider the ability of the Company to raise further funding to be a material uncertainty. With respect to the Bond Programme, a number of the tranches previously issued under the Bond Programme will come to maturity during 2026 and 2027 and the Company will need to either fund these redemptions in cash or by alternative non- cash methods. The Directors consider the ability of the Company to fund the upcoming redemptions required by the Bond Programme to be a material uncertainty. Further information on the tranches issued under the Bond Programme is disclosed at Note 17. These conditions indicate the existence of a material uncertainty, which may cast doubt over the Group’s ability to continue as a going concern, and therefore that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include adjustments that would arise in the event of the Group not being able to continue as a going concern. The Directors believe that the Company will be able to secure further funding to address the material uncertainties noted above and, therefore, the Company will continue as a going concern for at least the next 12 months. Accordingly, the Directors consider that it is appropriate that the Company adopts the going concern basis of accounting in preparation of these financial statements. (c) Use of estimates and judgements Preparing the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Judgements that relate to estimation uncertainty Inventories (Note 12) The Group holds material inventories which are assessed for impairment at each reporting date. The assessment of net realisable value requires consideration of future cost to process and sell and spot market prices at period end less applicable discounts. The estimates are based on market data and historical trends. Trade and other receivables (Note 13) The Group holds trade and other receivable balances at the period end which are assessed for recoverability at each reporting date. The assessment of recoverability is based on estimates of future receipts taking into consideration past receipt patterns and trends. Notes to the Condensed unaudited Financial Statements for the six months ended 30 June 2026
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10 Ferro-Alloy Resources Limited Interim Financial Report 2026 Notes to the Condensed unaudited Financial Statements continued Judgements that do not relate to estimation uncertainty Exploration and evaluation assets (Note 10) The Group holds material exploration and evaluation assets and judgement is applied in determining whether impairment indicators exist under the Group’s accounting policy. In determining whether an impairment indicator exists management have considered the Group’s Feasibility Study on the asset, the strategic plans for exploration and future development and the status of the Subsoil Use Agreement. Judgement was required in determining that the application for deferral of obligations under the Subsoil Use Agreement is expected to be granted. In the event that approval is not received, the Group will consider the options available to it to effect approval under the provisions of the Kazakhstan national Subsoil Use legislation. Additionally, judgement was required in determining that the Group’s exploration and evaluation asset should continue to be classified as such an asset rather than transitioning to classification as a development asset. Management has concluded that until the final investment decision for the development of the asset has been determined by the Board then the asset should continue to be classified as an exploration and evaluation asset. (d) Unaudited status These Condensed unaudited Financial Statements have not been audited or reviewed by the Group’s auditor. 2 Revenue Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Sales of vanadium products 558 1,457 2,550 Sales of ferro-molybdenum 1,250 1,055 1,929 Sales of gravel and waste rock - - 45 Service revenue 10 21 - Total revenue from customers under IFRS 15 1,818 2,533 4,524 Other revenue (adjustments to price after delivery and fair value changes) - (4) 7 Total revenue 1,818 2,529 4,531 Vanadium products Under certain sales contracts the single performance obligation is the delivery of ammonium metavanadate (“AMV”) to the designated delivery point at which point possession, title and risk on the product transfers to the buyer. The buyer makes an initial provisional payment based on volumes and quantities assessed by the Company and market spot prices of vanadium pentoxide for AMV at the date of shipment. The final payment is received once the product has reached its final destination with adjustments for quality / quantity and pricing. The final pricing is based on the historical average market prices during a quotation period based on the date the product reaches the port of destination and an adjusting payment or receipt will be made to the revenue initially received. Where the final payment for a shipment made prior to the end of an accounting period has not been determined before the end of that period, the revenue is recognised based on the spot price that prevails at the end of the accounting period. Other revenue related to the change in the fair value of amounts receivable and payable under the sales contracts between the date of initial recognition and the period end resulting from market prices are recorded as other revenue.
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11 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 3 Cost of sales Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Materials 1,418 2,162 4,361 Wages, salaries and related taxes 466 600 1,225 Depreciation 323 366 375 Electricity 59 67 136 Other 54 159 156 2,320 3,354 6,253 4 Other income Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Currency conversion gain 4 9 11 Other - 33 59 4 42 70 5 Administrative expenses Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Wages, salaries and related taxes 706 867 1,781 Professional services 92 63 235 Taxes other than income tax - 18 54 Listing and financing expenses 456 234 498 Audit 71 136 170 Materials 16 16 36 Rent 37 21 64 Depreciation and amortisation 31 38 66 Insurance 30 14 46 Bank fees 9 10 18 Travel expenses 8 12 37 Communication and information services 7 7 15 Other 157 111 545 1,620 1,547 3,565
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12 Ferro-Alloy Resources Limited Interim Financial Report 2026 Notes to the Condensed unaudited Financial Statements continued 6 Other expenses Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Currency conversion loss 22 35 57 Write-down of inventory to net realisable value - - 205 Share-based payment expense - - 34 Other - 1 208 22 36 504 7 Personnel costs Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Wages, salaries and related taxes 1,293 1,532 2,997 1,293 1,532 2,997 Personnel costs of US$450,000 (2025: US$502,000) have been charged to cost of sales, US$706,000 (2025: US$867,000) to administrative expenses and US$137,000 (2025: US$163,000) were charged to cost of inventories which were not yet sold as at the end of the period. 8 Finance costs Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Net foreign exchange gain (28) 79 558 Unwinding of discount on bonds - - 3 Interest expense on financial liabilities (bonds) 994 993 1,996 Net finance costs 966 1,072 2,557
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13 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 9 Property, plant and equipment Land and buildings $000 Plant and equipment $000 Vehicles $000 Computers $000 Other $000 Construction in progress $000 Total $000 Cost Balance at 1 January 2025 4,410 3,448 452 42 267 66 8,685 Additions - 101 - - 3 - 104 Disposals - (12) - (4) (2) - (18) Foreign currency translation difference 27 20 3 - 1 - 51 Balance at 30 June 2025 4,437 3,557 455 38 269 66 8,822 Balance at 31 December 2025 4,623 3,723 470 33 257 68 9,174 Balance at 1 January 2026 4,623 3,723 470 33 257 68 9,174 Additions 35 13 - - 6 - 54 Disposals - (4) - - - - (4) Foreign currency translation difference 159 128 17 1 8 3 316 Balance at 30 June 2026 4,817 3,860 487 34 271 71 9,540 Depreciation Balance at 1 January 2025 1,208 3,448 341 31 122 - 5,150 Depreciation for the period 200 201 15 3 10 - 429 Disposals - (12) - (4) (2) - (18) Foreign currency translation difference 97 (80) 1 - 6 - 24 Balance at 30 June 2025 1,505 3,557 357 30 136 - 5,585 Balance at 31 December 2025 1,647 3,363 382 26 151 - 5,569 Balance at 1 January 2026 1,647 3,363 382 26 151 - 5,569 Depreciation for the period 212 222 12 1 7 - 454 Disposals - (4) - - - - (4) Foreign currency translation difference 54 121 13 2 9 - 199 Balance at 30 June 2026 1,913 3,702 407 29 167 - 6,218 Carrying amounts At 1 January 2025 3,202 - 111 11 145 66 3,535 At 30 June 2025 2,932 - 98 8 133 66 3,237 At 31 December 2025 2,976 360 88 7 106 68 3,605 At 30 June 2026 2,904 158 80 5 104 71 3,322 Depreciation expense of US$323,000 (2025: US$366,000) has been charged to cost of sales, excluding cost of finished goods that were not sold at period end, US$31,000 (2025: US$38,000) to administrative expenses, and US$100,000 has been charged to the cost of finished goods that were not sold at the end of the period (2025: US$9,000).
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14 Ferro-Alloy Resources Limited Interim Financial Report 2026 Notes to the Condensed unaudited Financial Statements continued 10 Exploration and evaluation assets The Group’s exploration and evaluation assets relate to the Balasausqandiq deposit. As at 30 June 2026, the carrying value of exploration and evaluation assets was US$11.1m (2025: US$9.0m). Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Balance at 1 January 10,480 7,999 7,999 Additions (Stage 1 feasibility study) 386 2,101 3,387 Foreign currency translation difference 200 (1,125) (906) Balance at 30 June / 31 December 11,066 8,975 10,480 11 Intangible assets Mineral rights $000 Patents $000 Computer software $000 Total $000 Cost Balance at 1 January 2025 73 31 3 107 Additions - - - - Foreign currency translation difference - 1 - 1 Balance at 30 June 2025 73 32 3 108 Balance at 31 December 2025 76 33 3 112 Balance at 1 January 2026 76 33 3 112 Additions - - - - Foreign currency translation difference 3 1 - 4 Balance at 30 June 2026 79 34 3 116 Amortisation Balance at 1 January 2025 73 13 3 89 Amortisation for the year - 1 - 1 Foreign currency translation difference - 1 - 1 Balance at 30 June 2025 73 15 3 91 Balance at 31 December 2025 76 15 3 94 Balance at 1 January 2026 76 15 3 94 Amortisation for the year - 1 - 1 Foreign currency translation difference 3 - - 3 Balance at 30 June 2026 79 16 3 98 Carrying amounts At 1 January 2025 - 18 - 18 At 30 June 2025 - 17 - 17 At 31 December 2025 - 18 - 18 At 30 June 2026 - 18 - 18 During the six months ended 30 June 2026 and 2025, amortisation of intangible assets was charged to administrative expenses.
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15 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 12 Inventories Unaudited 30 June 2026 $000 Unaudited 30 June 2025 $000 Audited 31 December 2025 $000 Raw materials and consumables 703 1,548 1,060 Finished goods 580 528 230 Work in progress 28 122 28 1,311 2,198 1,318 During the six months ended 30 June 2026, inventories expensed to profit and loss amounted to US$1.4m (2025:US$2.2m). 13 Trade and other receivables Unaudited 30 June 2026 $000 Unaudited 30 June 2025 $000 Audited 31 December 2025 $000 Current Trade receivables from third parties 637 914 264 Due from employees 98 37 76 VAT receivable 1,281 1,190 1,040 2,016 2,141 1,380 Expected credit loss provision for receivables (76) (58) (73) 1,940 2,083 1,307 The expected credit loss provision for receivables relates to credit impaired receivables which are in default and the Group considers the probability of collection to be remote given the age of the receivables and default status. 14 Prepayments Unaudited 30 June 2026 $000 Unaudited 30 June 2025 $000 Audited 31 December 2025 $000 Non-current Prepayments 3 944 1 3 944 1 Current Prepayments for goods and services 1,188 732 931 1,188 732 931
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16 Ferro-Alloy Resources Limited Interim Financial Report 2026 Notes to the Condensed unaudited Financial Statements continued 15 Cash and cash equivalents Unaudited 30 June 2026 $000 Unaudited 30 June 2025 $000 Audited 31 December 2025 $000 Cash at current bank accounts 753 324 1,613 Cash at bank deposits 72 67 70 Petty cash 7 - 1 Cash and cash equivalents 832 391 1,684 16 Equity (a) Share capital Number of shares unless otherwise stated Ordinary shares Unaudited 30 June 2026 Unaudited 30 June 2025 Audited 31 December 2025 Par value - - - Outstanding at beginning of period / year 559,129,629 483,222,238 483,222,238 Shares issued 28,621,701 10,422,098 75,907,391 Outstanding at end of period / year 587,751,330 493,644,336 559,129,629 Ordinary shares All shares rank equally. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. On 10 March 2026, the Company issued 28,621,701 ordinary shares of nil par value in the capital of the Company for gross proceeds of £1,574,194. Reserves Share capital: Value of shares issued less costs of issuance. Additional paid in capital: Amounts due to shareholders which were waived. Share-based payment: Share options issued during the period. Foreign currency translation reserve: Foreign currency differences on retranslation of results from functional to presentational currency and foreign exchange movements on intercompany balances considered to represent net investments which are considered as permanent equity. Accumulated losses: Cumulative net losses. (b) Dividends No dividends were declared for the six months ended 30 June 2026 (2025: US$ nil). (c) Loss per share (basic and diluted) The calculation of basic and diluted loss per share has been based on the loss attributable to ordinary shareholders and the weighted-average number of ordinary shares outstanding. There are no convertible bonds and convertible preferred stock, so basic and diluted losses are equal.
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17 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 (i) Loss attributable to ordinary shareholders (basic and diluted) Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Loss for the period, attributable to owners of the Company (3,217) (3,497) (8,415) Loss attributable to ordinary shareholders (3,217) (3,497) (8,415) (ii) Weighted-average number of ordinary shares (basic and diluted) Shares Unaudited six-month period ended 30 June 2026 Unaudited six-month period ended 30 June 2025 Audited year ended 31 December 2025 Issued ordinary shares at 1 January (after subdivision) 559,129,629 483,222,238 483,222,238 Effect of shares issued (weighted) 22,975,776 7,313,189 22,090,787 Weighted-average number of ordinary shares at period / year end 582,105,405 490,535,427 505,313,025 Loss per share of common stock attributable to the Company: (0.0055) (0.0071) (0.017) (Basic and diluted / US$) 17 Loans and borrowings In 2023 the Company launched the Bond Programme and has issued four tranches of unsecured corporate bonds under the Programme with effective interest rates of 9.2%, 10.4%, 11% and 13.5% respectively. With respect to the first tranche of bonds (2023), investors subscribed for a total of 1,500 bonds with a nominal value of US$2,000 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 9%, paid twice-yearly. The bonds have been listed on the Astana International Exchange (“AIX”) with ISIN number KZX000001474. These bonds were redeemed in full after the period end, see Note 22. With respect to the second tranche of bonds (2023), investors subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 10%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000001623. With respect to the third tranche of bonds (2024), investors subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 11%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000001946. These bonds were redeemed in full after the period end, see Note 22. With respect to the fourth tranche of bonds (2024), investors subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term with an option to redeem 12 months early and bear a coupon rate of 13.5%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000003348.
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18 Ferro-Alloy Resources Limited Interim Financial Report 2026 Notes to the Condensed unaudited Financial Statements continued Unaudited 30 June 2026 $000 Unaudited 30 June 2025 $000 Audited 31 December 2025 $000 Non-current liabilities Bonds payable 5,000 17,134 5,000 5,000 17,134 5,000 Current liabilities Bonds payable 12,563 - 12,563 Interest payable 305 303 309 12,868 303 12,872 Non-cash transactions from financing activities are shown in the reconciliation of liabilities from financing transactions below: Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 At 1 January 17,872 17,566 17,566 Cash flows: – Interest paid (998) (1,123) (2,120) Total 16,874 16,443 15,446 Non-cash flows: – Interest accruing in the period 994 993 1,996 – Bond discount / premium - - 430 At 30 June / 31 December 17,868 17,436 17,872 18 Trade and other payables Unaudited 30 June 2026 $000 Unaudited 30 June 2025 $000 Audited 31 December 2025 $000 Trade payables 2,297 2,861 2,910 Debt to employees 49 269 189 Other taxes 245 381 186 Advances received 644 805 801 3,235 4,316 4,086
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19 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 19 Contingencies (a) Insurance The insurance industry in the Kazakhstan is in a developing state and many forms of insurance protection common in other parts of the world are not yet generally or economically available. The Group does not have full coverage for its plant facilities, business interruption or third-party liability in respect of property or environmental damage arising from accidents on Group property or relating to Group operations. There is a risk that the loss or destruction of certain assets could have a material adverse effect on the Group’s operations and financial position. (b) Taxation contingencies The taxation system in Kazakhstan is relatively new and is characterised by frequent changes in legislation, official pronouncements and court decisions which are often unclear, contradictory and subject to varying interpretations by different tax authorities. Taxes are subject to review and investigation by various levels of authorities which have the authority to impose severe fines, penalties and interest charges. A tax year generally remains open for review by the tax authorities for five subsequent calendar years but under certain circumstances a tax year may remain open for longer. These circumstances may create tax risks in Kazakhstan that are more significant than in other countries. Management believes that it has provided adequately for tax liabilities based on its interpretations of applicable tax legislation, official pronouncements and court decisions. However, the interpretations of the relevant authorities could differ and the effect on these consolidated financial statements, if the authorities were successful in enforcing their interpretations, could be significant. There are no tax claims or disputes at present. 20 Segment reporting The Group’s operations are split into three segments based on the nature of operations: processing, subsoil operations (being operations related to exploration and mining) and corporate segment for the purposes of IFRS 8 Operating Segments. The Group’s assets are primarily concentrated in the Republic of Kazakhstan and the Group’s revenues are derived from operations in, and connected with, the Republic of Kazakhstan. Unaudited six-month period ended 30 June 2026 Processing $000 Subsoil $000 Corporate $000 Total $000 Revenue 1,818 - - 1,818 Cost of sales (2,320) - - (2,320) Other income 3 - 1 4 Administrative expenses (375) (30) (1,215) (1,620) Distribution & other expenses (133) - - (133) Finance costs (16) - (950) (966) Loss before tax (1,023) (30) (2,164) (3,217)
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20 Ferro-Alloy Resources Limited Interim Financial Report 2026 Notes to the Condensed unaudited Financial Statements continued Unaudited six-month period ended 30 June 2025 Processing $000 Subsoil $000 Corporate $000 Total $000 Revenue 2,529 - - 2,529 Cost of sales (3,354) - - (3,354) Other income 42 - - 42 Administrative expenses (390) (28) (1,129) (1,547) Distribution & other expenses (95) - - (95) Finance costs (283) - (789) (1,072) Loss before tax (1,551) (28) (1,918) (3,497) Audited year ended 31 December 2025 Processing $000 Subsoil $000 Corporate $000 Total $000 Revenue 4,531 - - 4,531 Cost of sales (6,253) - - (6,253) Other income 69 - 1 70 Administrative expenses (1,078) (28) (2,459) (3,565) Impairment charge (470) - (34) (504) Distribution & other expenses (137) - - (137) Finance costs (525) - (2,032) (2,557) Loss before tax (3,863) (28) (4,524) (8,415) Included in revenue arising from processing are revenues of US$1.5m (2025: US$2.2m) which arose from sales to two of three Group’ largest customers. No other single customer contributes 10 per cent or more to the Group’s revenue. All of the Group’s assets are attributable to the Group’s processing operations. Sales to the Group’s largest customers during the six months ended 30 June 2026 were as follows: Customer A US$ 0.8m (49%) (2025:US$ nil) Customer B US$ 0.4m (26%) (2025: US$0.8m) Customer C US$ 0.3m (20%) (2025: US$nil) 21 Related party transactions Transactions with management and close family members Management remuneration Key management personnel received the following remuneration during the year, which is included in personnel costs (see Note 7): Unaudited six-month period ended 30 June 2026 $000 Unaudited six-month period ended 30 June 2025 $000 Audited year ended 31 December 2025 $000 Wages, salaries and related taxes 450 538 1,074 Wages and salaries outstanding at 30 June 2026 is equal to US$ nil (2025: US$ nil).
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21 STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENTS Ferro-Alloy Resources Limited Interim Financial Report 2026 22 Subsequent events On 31 July 2026 the Company issued 167,647,046 ordinary shares of nil par value in the Company raising gross proceeds of £5,700,000. The funds raised were used to repay the outstanding principal and accrued interest due to the bondholders of Tranche 1 and Tranche 3 of the Bond Programme.
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22 Ferro-Alloy Resources Limited Interim Financial Report 2026 Ferro-Alloy Resources Limited Company Registration Number 63449 Registered Office Maison Allaire Smith Street St Peter Port Guernsey GY1 2NG Directors Sir Mick Davis Nicholas Bridgen Andrey Kuznetsov William Callewaert Christopher Thomas Petrus Nienaber James Turian Corporate Brokers Shore Capital Stockbrokers Limited 57 St James’s Street, Cassini House London, SW1A 1LD Panmure Liberum Limited Ropemaker Place, Level 12 25 Ropemaker Street London, EC2Y 9LY Auditors Crowe U.K. LLP 55 Ludgate Hill London, EC4M 7JW Registrar Computershare Investor Services (Guernsey) Limited 1st Floor, Tudor House Le Bordage St Peter Port Guernsey, GY1 1DB Financial Press Relations BlytheRay Ltd 73 Watling Street London, EC4M 9BJ Company Information
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Ferro-Alloy Resources Limited Maison Allaire Smith Street St Peter Port Guernsey GY1 2NG www.ferro-alloy.com