[Ferro-Alloys.com]  Element 25 JUNE 2026 QUARTERLY REPORT

QUARTERLY HIGHLIGHTS

Butcherbird Manganese Ore Operations – Western Australia

•Element 25 is progressing works on multiple fronts in relation to its Butcherbird Expansion Project (BBX) in Western Australia’s Pilbara region.

•BBX is targeting manganese concentrate production of 1.1 million tonnes per annum (Mtpa) with a commissioning date scheduled for Q1 2027.

•First key equipment item – logwasher manufactured by KISA in Germany – arrived in WA during the quarter and will be delivered to site in accordance with the construction schedule.

•Element 25 appointed ReGroup Australia Pty Ltd (ReGroup) as contractor for both mining and haulage contracts, extending the companies’ long-term collaboration.

oAn integrated contractor model delivers end-to-end operational alignment, improving cost performance and efficiency and reducing interface risk.

oThe contracts include a structured performance framework aligned with operational success, incorporating KPIs and continuous improvement obligations.

•The balance of key contracting and equipment procurement activities continue in accordance with the project execution plan.

HPMSM Development

•Review of HPMSM Project Execution Plan (Execution Plan) underway to optimise development strategy in response to evolving electric vehicle (EV) market conditions and emerging battery chemistries.

•U.S Department of Energy (DoE) and Element 25 agree terms for updated grant agreement for US$166 million to fund E25’s planned Louisiana HPMSM Project under the Battery Materials Processing Grant Program.

•The Manufacturing and Energy Supply Chains (MESC) grant funding remains a cornerstone of the project’s development strategy and financing structure.

•Updated agreement re-confirms U.S. Government support for the revised Execution Plan with strong alignment with U.S. critical minerals and battery supply chain objectives.

•Continued strong engagement with U.S. Government and key strategic partners.

•Integrated development strategy linking BBX with the Louisiana facility underpins long-term supply.

BUTCHERBIRD MANGANESE PROJECT, WA

During the quarter, Element 25 Limited (Element 25, E25, the Company) (ASX:E25) continued to advance the expansion and of its Butcherbird Manganese Mine (Project) in Western Australia (WA).

The Company is expanding production capacity at Butcherbird to supply manganese concentrate to traditional steel markets and as feedstock for its own proposed battery grade, high purity manganese sulphate monohydrate (HPMSM) processing facility planned to be built in Louisiana, USA.

The expanded processing operation at the Project will target 1.1Mtpa manganese concentrate production, based on an updated January 2025 Feasibility Study (FS) and an updated Ore Reserve of 101.4Mt at 10.4% Mn (10.54Mt contained manganese), supporting an 18+ year life of mine (LOM) at the planned rate.

The Project’s planned increased production will enable it to supply feedstock to the planned Louisiana based HPMSM facility as well as traditional steel markets.

First Equipment Arrives in Western Australia

In June 2026, the Company received delivery of the first main plant item for BBX, with the logwasher arriving at Fremantle Port7. The logwasher was manufactured by KISA in Germany. Following post-shipment inspections, it has been transported to a safe storage location in preparation for construction.

The logwasher has a 600-tonne per hour design throughput, comprises a 10m x 3,5m main trough containing two large counter-rotating shafts equipped with custom designed, hardened paddles with the capability to wash feed material up to 250mm in size. It has hydraulic height adjustment to control scrubbing intensity, advanced washing technology to improve clay removal, and specially reinforced shafts for abrasive operating conditions, it provides a new benchmark in performance, durability, and innovation as part of the BBX process design.

Other key long lead equipment items for BBX, including the primary and secondary sizers from Mining Machinery Developments (MMD), are enroute to WA. Orders have been placed for the balance of main plant items, including the apron feeder, conveyors and stackers, thickener and screens, with the remaining packages including structural steel, pumps and drives in the final stages of award.

Contracts Awarded

During the quarter, Element 25 announced the signing of integrated Mining Services and Ore Haulage Services Agreements with Regroup Australia Pty Ltd in May (ReGroup)8, representing another major milestone for BBX.

By securing a single contractor across mining and haulage activities, Element 25 is establishing an integrated operating model designed to optimise productivity, reduce operating costs, minimise commercial interface risk and enhance overall project efficiency.

Under the Mining Services Agreement, ReGroup will deliver open pit mining services, including ore extraction in accordance with the Company’s rolling mine plans and associated activities required to support processing, waste removal and stockpiling operations.

The Ore Haulage Services Agreement provides for the loading and transportation of ore from site to the Utah Point port facility in Port Hedland under a structured and scalable logistics framework. Ore haulage from BBX to Utah Point is a core component of Element 25’s Pit-to-Port (P2P) supply chain.

Taken together, the contracts cover on-site material handling, stockpile management and loading; road transport logistics from mine to port, and real-time fleet monitoring and operational data integration to support end-to-end visibility in line with the Company’s P2P business intelligence framework which will be designed to provide clear transparency and visibility on all elements of the Project supply chain.

Commercial terms for the contracts are generally in line with the Butcherbird Expansion Feasibility Study (BBX FS), with volumes and performance KPIs directly linked to the BBX mine plan. The contracts include variable cost structure with a monthly floor for mining services and a scalable take or pay obligation for haulage, with cross defaults for underperformance in either contract providing a robust risk management structure for Element 25 and clear performance incentives for ReGroup. This structure will provide clear alignment between all parts of the P2P supply chain.

The camp services, offtake and port contracts are close to finalisation pending agreement on final commercial details. Element 25 has issued a construction contract tender package for BBX to several pre-qualified bidders, and initial bid evaluations are underway.

Project Execution

In parallel with equipment procurement, the Company continues to advance project execution activities across multiple workstreams, including contractor engagement, detailed engineering, and construction planning. These coordinated activities are designed to ensure readiness for the commencement of construction and efficient progression through the build phase.

The Company maintains a disciplined project management framework, with ongoing tracking of milestones, supplier deliverables and schedule alignment to support timely delivery and proactive risk management across the project.

Element 25 continues to progress the remaining workstreams required to move into full construction, including finalisation of key commercial arrangements and integration of suppliers and contractors into the overall execution plan.

All permits remain in place for construction and BBX remains on track for mechanical completion and commissioning in Q1 CY2027.

HPMSM DEVELOPMENT

During the quarter, Element 25 advised that following discussions with the U.S. Department of Energy (DoE), the Company had agreed terms on a revised grant agreement for US$166 million in funding under the DoE’s Battery Materials Processing Grant Program for the Company’s proposed high-purity manganese sulphate monohydrate (HPMSM) facility planned in Louisiana, USA (Project).

The DoE’s continued support reflects strong alignment between the Company’s updated project execution strategy and the objectives of the U.S. Government to strengthen critical domestic manufacturing and supply chains while increasing critical minerals production for key critical materials used in batteries and other applications.

The material obligations under the grant remain consistent with those previously announced, with the scope of work, budget-period tasks and associated milestones updated.

The signing of the revised agreement is part of the DoE and Element 25’s ongoing review and repositioning of the planned HPMSM Project to align with evolving market conditions, emerging battery chemistries, and long-term demand for manganese-based cathode materials for electrification across multiple sectors including transport, grid storage, defence and aviation.

US DoE Grant Reinforces Strategic Importance of HPMSM Project

The DoE’s Battery Materials Processing Grant Program is designed to support the development of domestic battery materials processing capacity in the United States, ensuring a resilient and secure supply chain for batteries and other applications.

The grant funding from the DoE reinforces the importance of high purity manganese as a critical raw material for USA’s strategic requirements and Element 25 looks forward to re-engaging with project stakeholders to implement the updated project execution plan and progress towards delivery of this Project.

The Company will continue to work closely with the DoE and its strategic partners to advance the updated HPMSM PEP, including progressing key workstreams. Element 25 will provide further updates to the market as the revised execution plan is finalised.

Review of Project Execution Plan

The updated DoE agreement followed an earlier announcement that Element 25 is undertaking a review of its Project Execution Plan for proposed production of HPMSM in the U.S.13

The review is in response to evolving electric vehicle (EV) demands in the US and globally, alongside ongoing assessment of emerging EV battery chemistries and the Company’s near-term focus on delivering the planned expansion of the Butcherbird Manganese Project.

Lithium manganese-rich (LMR) and lithium-manganese-iron-phosphate (LMFP) battery chemistries are expected to materially increase global manganese demand, with LMR battery cells using around 50% to 70% manganese, increasing the required manganese by up to 10X compared to high nickel ternary chemistries.

Element 25 is working to commercialise innovative proprietary technology to produce battery-grade HPMSM for use in EV battery manufacturing. Its first HPMSM refinery, proposed for Louisiana, USA, would produce raw material for the U.S. EV market. Element 25’s integrated development strategy, linking BBX with its proposed US-based HPMSM processing facility, places the Company in a strong position to capitalise on these emerging market dynamics and support the evolving requirements of global EV manufacturers.

Element 25 will provide a further update to the market upon completion of the HPMSM Project Execution Plan review.

Integrated Development Strategy driven by BBX

A key component of the Company’s strategy is the integration of BBX with the proposed Louisiana HPMSM facility.

BBX is designed to increase manganese concentrate production to approximately 1.1Mtpa14 of medium-grade high silica manganese ore support downstream processing into HPMSM, providing a secure, long-term feedstock supply for the planned U.S. facility.

This integrated “mine-to-market” strategy positions Element 25 to:

•Deliver secure, long-term, supply of manganese from an allied source to the planned Louisiana facility.

•Support growing demand from battery manufacturers across multiple industry sectors.

•Capitalise on the increasing adoption of manganese-rich battery chemistries.

•Strengthen supply chain security for U.S. battery customers.

By linking its upstream resource base at Butcherbird with downstream processing in the United States, Element 25 is seeking to establish a globally competitive, vertically integrated battery materials platform.

• [Editor:tianyawei]