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EX-99.2
5
ea029387201ex99-2.htm
AUDITED FINANCIAL STATEMENTS OF EUROPEAN LITHIUM LTD. FOR THE YEARS ENDED JUNE 30, 2025 AND 2024

 

Exhibit
99.2

 

 

 

 

 

 

 

 

 

EUROPEAN
LITHIUM LIMITED

ABN
45 141 450 624

 

 

 

 

Consolidated
Financial Statements

 

For the Year Ended 30 June 2025 and 2024

 

 

 

 

 

 

  

  

 

 

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 1

  

 

 

 
 CONTENTS

 
  

 

 

 
 Consolidated Statement of Comprehensive Income
  
 3

 
  
  
  

 
 Consolidated Statement of Financial Position
  
 4

 
  
  
  

 
 Consolidated Statement of Changes in Equity
  
 5

 
  
  
  

 
 Consolidated Statement of Cash Flows
  
 7

 
  
  
  

 
 Notes to the Consolidated Financial Statements
  
 8

 
  
  
  

 
 Directors’ Declaration
  
 53

 
  
  
  

 
 Independent Auditor’s Report
  
 54

 
 

 FINANCIAL STATEMENTS 2025 AND 2024Page 2

  

 

 

 
 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 
 FOR THE YEARS ENDED 30 JUNE 2025 AND 2024

 
  

 

 

 
   
 Note 
 2025
 A$
  
 2024
 A$
 

 
 Continuing operations 
   
    
   

 
 Other income 
 4 
  1,244,323  
  451,964 

 
 Employee benefits expense 
   
  (2,701,604) 
  (760,809)

 
 Depreciation and amortisation expense 
 12 
  (8,167) 
  (18,451)

 
 Depreciation and amortisation expense – leased assets 
 18 
  (41,720) 
  (55,620)

 
 Finance costs 
 5 
  (1,051,971) 
  (45,688,280)

 
 Exploration expenditure expensed 
   
  (399,875) 
  (292,246)

 
 Exploration expenditure impairment 
 13 
  (14,496,678) 
  - 

 
 Consulting fees 
 5 
  (20,103,935) 
  (2,946,397)

 
 Travel expenses 
   
  (546,674) 
  (168,025)

 
 Regulatory and compliance costs 
   
  (1,751,481) 
  (1,123,730)

 
 Gain/(Loss) on fair value of financial assets through profit or loss 
 17 
  3,254,138  
  6,811,485 

 
 Share based payment expense 
 27 
  (49,072,093) 
  (1,240,592)

 
 Share of net losses of associate accounted for using the equity method 
 14 
  7,230  
  (15,021)

 
 Loss on disposal of fixed asset 
 12 
  (1,460) 
  - 

 
 Merger expenses 
 5 
  (4,635,221) 
  (4,967,583)

 
 Listing expenses 
 5 
  -  
  (116,840,485)

 
 Gain/(loss) on extinguishment of liability 
   
  363,633  
  - 

 
 Foreign exchange gain/(loss) 
   
  (1,789,586) 
  52,683 

 
 Administration expenses 
   
  (25,959) 
  (149,265)

 
 Promotion / IR / PR 
   
  (2,179,590) 
  (525,008)

 
 Insurance 
   
  (3,296,861) 
  (1,329,897)

 
 Impairment of convertible notes 
 11 
  (698,294) 
  - 

 
 Gain/(loss) on fair value of warrants 
 23 
  76,534  
  (31,455,882)

 
 Share of net losses of JV accounted for using the equity method 
 16 
  1,084,608  
  - 

 
 Other expenses 
   
  (20,288) 
  (17,142)

 
 Loss before income tax 
   
  (96,790,991) 
  (200,278,301)

 
 Income tax expense 
 6 
  -  
  - 

 
 Loss after tax from continuing operations 
   
  (96,790,991) 
  (200,278,301)

 
   
   
     
    

 
 Other comprehensive income, net of income tax 
   
     
    

 
 Items that will be reclassified to profit or loss 
   
     
    

 
 Exchange differences on translation of foreign operations 
   
  8,023,919  
  (2,170,794)

 
 Other comprehensive (loss) for the period, net of income tax 
   
  8,023,919  
  (2,170,794)

 
   
   
     
    

 
 Total comprehensive (loss) for the year 
   
  (88,767,072) 
  (202,449,095)

 
   
   
     
    

 
 Loss for the year attributable to: 
   
     
    

 
 Members of European Lithium Ltd 
   
  (71,492,437) 
  (194,938,978)

 
 Non-controlling interests 
   
  (25,298,554) 
  (5,339,323)

 
   
   
  (96,790,991) 
  (200,278,301)

 
   
   
     
    

 
 Total comprehensive loss for the year attributable to: 
   
     
    

 
 Members of European Lithium Ltd 
   
  (69,758,825) 
  (197,109,772)

 
 Non-controlling interests 
   
  (19,008,247) 
  (5,339,323)

 
   
   
  (88,767,072) 
  (202,449,095)

 
   
   
     
    

 
 Loss per share for the year 
   
     
    

 
 Basic loss per share (cents per share) 
 28 
  (6.80) 
  (14.32)

 
 Diluted loss per share (cents per share) 
 28 
  (6.80) 
  (14.32)

 

 

The
above Consolidated Statement of Comprehensive Income is to be read in conjunction with the 

Notes
to the Financial Statements

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 3

  

 

 

 
 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 
 AS AT 30 JUNE 2025

 
  

 
 

 
   
 Note 
 2025
 A$
  
 2024
 A$
 

 
 ASSETS 
   
    
   

 
 Current Assets 
   
    
   

 
 Cash and cash equivalents 
 7 
  20,021,463  
  5,778,638 

 
 Trade and other receivables 
 8 
  252,237  
  1,485,497 

 
 Prepaid expenses 
 9 
  1,562,246  
  2,500,542 

 
 Indemnification asset 
 22 
  1,714,192  
  1,714,192 

 
 Short term loan receivable 
 10 
  -  
  2,274,383 

 
 Convertible note 
 11 
  -  
  298,869 

 
 Total Current Assets 
   
  23,550,138  
  14,052,121 

 
   
   
     
    

 
 Non-Current Assets 
   
     
    

 
 Property, plant and equipment 
 12 
  5,365  
  8,418 

 
 Deferred exploration and evaluation expenditure 
 13 
  60,610,945  
  53,239,237 

 
 Investment in associate 
 14 
  1,008,716  
  806,148 

 
 Restricted cash and other deposits 
 15 
  23,661,204  
  22,564,947 

 
 Investment in joint venture 
 16 
  174,801,266  
  17,681,136 

 
 Financial assets at fair value through profit or loss 
 17 
  5,721,395  
  1,390,256 

 
 Right of use asset 
 18 
  60,919  
  98,314 

 
 Total Non-Current Assets 
   
  265,869,810  
  95,788,456 

 
  TOTAL ASSETS 
   
  289,419,948  
  109,840,577 

 
   
   
     
    

 
 LIABILITIES 
   
     
    

 
 Current Liabilities 
   
     
    

 
 Trade and other payables 
 19 
  27,797,760  
  20,125,155 

 
 Provisions 
 20 
  41,901  
  36,274 

 
 Lease liability 
 21 
  46,637  
  43,246 

 
 Short term loan 
 22 
  1,901,697  
  1,886,948 

 
 Warrants liability 
 23 
  62,452,403  
  56,755,581 

 
 Total Current Liabilities 
   
  92,240,398  
  78,847,204 

 
   
   
     
    

 
 Non-Current Liabilities 
   
     
    

 
 Offtake prepayment 
 24 
  22,893,600  
  22,483,950 

 
 Lease liability 
 21 
  21,685  
  64,725 

 
 Total Non-Current Liabilities 
   
  22,915,285  
  22,548,675 

 
   
   
     
    

 
 TOTAL LIABILITIES 
   
  115,155,683  
  101,395,879 

 
   
   
     
    

 
 NET ASSETS 
   
  174,264,265  
  8,444,698 

 
   
   
     
    

 
 EQUITY 
   
     
    

 
 Issued capital 
 25 
  153,136,087  
  151,356,087 

 
 Reserves 
 26 
  259,198,892  
  86,184,655 

 
 Accumulated losses 
   
  (292,793,642) 
  (221,301,205)

 
 Non controlling interest 
   
  54,722,928  
  (7,794,839)

 
   
   
     
    

 
 TOTAL EQUITY 
   
  174,264,265  
  8,444,698 

 

 

The
above Consolidated Statement of Financial Position is to be read in conjunction with the 

Notes
to the Financial Statements

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 4

  

 

 

 
 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
 AS AT 30 JUNE 2025

 
  

 
 

 
   
 Issued
 Capital 
 A$
  
 Accumulated
 Losses 
 A$
  
 Share-based
 payment Reserve 
 A$
  
 Foreign
 Currency Translation Reserve
 A$
  
 Nasdaq
 Listing Reserve 
 A$
  
 Total 
 A$
  
 Non-
controlling
 Interests 
 A$
  
 Total
 (Deficiency)/
Equity 
 A$
 

 
 At 1 July 2023 
 75,725,376  
 (26,362,227) 
 14,769,159  
 2,171,606  
 -  
 66,303,914  
 -  
 66,303,914 

 
 Loss for the year 
  -  
  (194,938,978) 
  -  
  -  
  -  
  (194,938,978) 
  (5,339,323) 
  (200,278,301)

 
 Foreign
 currency exchange differences arising on translation from functional currency to presentation currency 
  -  
  -  
  -  
  (2,170,794) 
  -  
  (2,170,794) 
  -  
  (2,170,794)

 
 Total comprehensive (loss) for the year 
  -  
  (194,938,978) 
  -  
  (2,170,794) 
  -  
  (197,109,772) 
  (5,339,323) 
  (202,449,095)

 
   
     
     
     
     
     
     
     
    

 
 Share Buy Back 
  (1,302,483) 
  -  
  -  
  -  
  -  
  (1,302,483) 
  -  
  (1,302,483)

 
 Issue of shares – Supplier 
  250,000  
  -  
  -  
  -  
  -  
  250,000  
  -  
  250,000 

 
 Issue of shares - Exercise
 of Options 
  58,341  
  -  
  -  
  -  
  -  
  58,341  
  -  
  58,341 

 
 Issue of listed options 
  -  
  -  
  833,610  
  -  
  -  
  833,610  
  -  
  833,610 

 
 Issue of shares upon completion
 of merger transaction 
  76,624,853  
  -  
  1,185,189  
  926,383  
  68,406,502  
  147,142,927  
  (2,455,516) 
  144,687,411 

 
 Options
 issued to directors 
  -  
  -  
  63,000  
  -  
  -  
  63,000  
  -  
  63,000 

 
 At 30
 June 2024 
  151,356,087  
  (221,301,205) 
  16,850,958  
  927,195  
  68,406,502  
  16,239,537  
  (7,794,839) 
  8,444,698 

 

 

The
above Consolidated Statement of Changes in Equity is to be read in conjunction with the 

Notes
to the Financial Statements

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 5

  

 

 

 
 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
 AS AT 30 JUNE 2025

 
  

 
 

 
   
 Issued
 Capital 
 A$
  
 Accumulated
 Losses 
 A$
  
 Share-based
 payment Reserve 
 A$
  
 Foreign
 Currency Translation Reserve
 A$
  
 Nasdaq
Listing Reserve 
 A$
  
 Total 
 A$
  
 Non-
controlling
 Interests 
 A$
  
 Total
(Deficiency)/
Equity 
 A$
 

 
 At 1 July
 2024 
 151,356,087  
 (221,301,205) 
 16,850,958  
 927,195  
 68,406,502  
 16,239,537  
 (7,794,839) 
 8,444,698 

 
 Loss for the year 
  -  
  (71,492,437) 
  -  
  -  
  -  
  (71,492,437) 
  (25,298,554) 
  (96,790,991)

 
 Foreign
 currency exchange differences arising on translation from functional currency to presentation currency 
  -  
  -  
  -  
  1,733,612  
  -  
  1,733,612  
  6,290,307  
  8,023,919 

 
 Total comprehensive (loss) for the year 
  -  
  (71,492,437) 
  -  
  1,733,612  
  -  
  (69,758,825) 
  (19,008,247) 
  (88,767,072)

 
   
     
     
     
     
     
     
     
    

 
 Issue of shares –
 Placement 
  2,000,000  
  -  
  -  
  -  
  -  
  2,000,000  
  -  
  2,000,000 

 
 Issue of listed options 
  -  
  -  
  356,837  
  -  
  -  
  356,837  
  -  
  356,837 

 
 Issue of listed options
 to advisor 
  (100,000) 
  -  
  100,000  
  -  
  -  
  -  
  -  
  - 

 
 CRML – Movements
 during the year 
     
     
     
     
     
     
     
    

 
 - Issue of CRML shares
 for TM1 acquisition 
  -  
  -  
  12,339,524  
  -  
  -  
  12,339,524  
  1,297,353  
  13,636,877 

 
 - Issue of shares for
 Tanbreez acquisition 
  -  
  -  
  135,582,284  
  -  
  -  
  135,582,284  
  43,214,764  
  178,797,048 

 
 - Other issue of shares
 and RSU’s by CRML 
  -  
  -  
  22,831,930  
  -  
  -  
  22,831,930  
  37,013,897  
  59,845,827 

 
 Options issued to directors 
  -  
  -  
  70,050  
  -  
  -  
  70,050  
  -  
  70,050 

 
 Share
 issue costs 
  (120,000) 
  -  
  -  
  -  
  -  
  (120,000) 
  -  
  (120,000)

 
 At
 30 June 2025 
  153,136,087  
  (292,793,642) 
  188,131,583  
  2,660,807  
  68,406,502  
  119,541,337  
  54,722,928  
  174,264,265 

 

 

The
above Consolidated Statement of Changes in Equity is to be read in conjunction with the 

Notes
to the Financial Statements

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 6

  

 

 

 
 CONSOLIDATED STATEMENT OF CASH FLOWS

 
 FOR THE YEARS ENDED 30 JUNE 2025 AND 2024

 
  

 
 

 
   
 Note 
 2025
 A$
  
 2024
 A$
 

 
 Cash flows from operating activities 
   
    
   

 
 Payments to suppliers and employees 
   
  (20,631,203) 
  (3,411,630)

 
 Interest received 
   
  282,981  
  168,995 

 
 Tax paid 
   
  -  
  (987,003)

 
 Merger expenses 
   
  (4,635,221) 
  (16,654,847)

 
 Grants received 
   
  151,797  
  114,886 

 
 Net cash (used in) operating activities 
 31 
  (24,831,646) 
  (20,769,599)

 
   
   
     
    

 
 Cash flows from investing activities 
   
     
    

 
 Cash acquired on Sizzle acquisition 
   
  -  
  15,117,905 

 
 Funding of Tanbreez 
 16 
  (8,095,849) 
  (7,494,650)

 
 Payments for exploration and evaluation 
   
  (2,263,608) 
  (1,605,918)

 
 Investment in listed shares 
   
  (1,092,808) 
  - 

 
 Proceeds from the sale of investments 
   
  8,047,094  
  - 

 
 Cash acquired on acquisition of subsidiary 
   
  883  
  - 

 
 Costs associated with Obeikan Investment Group 
   
  (611,921) 
  - 

 
 Payment for property, plant and equipment 
   
  (3,362) 
  - 

 
 Net cash provided by / (used in) investing activities 
   
  (4,019,571) 
  6,017,337 

 
   
   
     
    

 
 Cash flows from financing activities 
   
     
    

 
 Proceeds from capital raisings 
   
  39,469,192  
  2,423,882 

 
 Funds advanced under Convertible note 
   
  (350,000) 
    

 
 Payment for share issue costs 
   
  (2,627,612) 
  - 

 
 Proceeds from the exercise of options 
   
  4,115,598  
  9,307,763 

 
 Transaction costs related to issue of equity securities or convertible debt securities 
   
  -  
  (76,338)

 
 Receipt of funds from offtake 
   
  -  
  (22,483,950)

 
 Transfer funds to restricted account 
   
  -  
  22,483,950 

 
 Short term loan facility 
   
  -  
  (2,290,000)

 
 Repayment of borrowing 
 10 
  2,370,986  
  90,518 

 
 Proceeds from issue of new option 
   
  356,837  
  - 

 
 Payment for convertible note facility 
 11 
  (399,425) 
  (298,869)

 
 Principal repayment of lease liability 
   
  (47,999) 
  (31,907)

 
 Share buyback 
   
  -  
  (1,302,483)

 
 Net cash provided by / (used in) financing activities 
   
  42,887,577  
  7,822,566 

 
   
   
     
    

 
 Net (decrease) / increase in cash and cash equivalents 
   
  14,036,360  
  (6,929,696)

 
 Cash and cash equivalents at beginning of year 
   
  5,778,638  
  13,144,813 

 
 Effects on exchange rate fluctuations on cash held 
   
  206,465  
  (436,479)

 
 Cash and cash equivalents at end of year 
 7 
  20,021,463  
  5,778,638 

 

 

The
above Consolidated Statement of Cash Flows is to be read in conjunction with the 

Notes
to the Financial Statements

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 7

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 
 

1.CORPORATE
INFORMATION

 

The
financial report of European Lithium Limited (the Company) and its controlled entities (the Group) for the year ended 30
June 2024 and 2025 was authorised for issue in accordance with a resolution of the directors on 19 June 2026.

 

European
Lithium Limited is a public company incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.

 

2.SUMMARY
OF MATERIAL ACCOUNTING POLICIES

 

a)Basis
of preparation

 

The
financial report is a general-purpose financial report, which has been prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The Company is a for-profit entity for the purpose
of preparing the consolidated financial statements.

 

The
financial report has also been prepared on the accruals basis and historical cost basis with the exception of the Group’s listed
investment which is stated at fair value.

 

The
accounting policies set out below have been applied consistently to all periods presented in the financial report except where stated.

 

b)Going
concern

 

The
consolidated financial statements of the Group have been prepared on a going concern basis which contemplates the continuity of normal
business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.

 

For
the year ended 30 June 2025 the Group incurred a loss after income tax of A$96,790,991 (30 June 2024: A$200,278,301), net cash outflows
from operating activities of A$24,831,646 (30 June 2024: A$20,769,599), a working capital deficit of A$68,690,260 (30 June 2024: A$64,795,083)
or a working capital deficit of A$6,237,857 (30 June 2024: A$8,039,502) when excluding warrants liabilities that will be settled in CRML
shares and at that date had cash on hand of A$20,021,463 (30 June 2024: A$5,778,638).

 

For
the year ended 30 June 2025, the Group’s ability to continue as a going concern and to continue to fund its planned expanded activities
was dependent on:

 

■Raising
 further capital by CRML;

 

■Receiving
 funds from the exercise of warrants;

 

■Receiving
 funds from the divestment of its listed shares;

 

■Continued
 support from non-related party creditors in respect to the payment of overdue amounts; and

 

■Reducing
 operational costs and spend on exploration.

 

Subsequent
to 30 June 2025, commencing 9 July 2025 through to 5 February 2026, the Group has divested a portion of its shareholding in CRML through
a series of transactions, receiving aggregate net proceeds of approximately A$357,405,903. As a result of these transactions, the Group's
cash position has increased substantially

 

As
at 15 June 2026, the Group had cash on hand of approximately A$293.5 million and current liabilities of approximately A$0.3 million and
as such the consolidated financial statements of the Group have been prepared on a going concern basis which contemplates the continuity
of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 8

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 

 

c)Application
of new and revised accounting standards

 

Changes
in accounting policies on initial application of Accounting Standards

 

In
the year ended 30 June 2025, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the IASB
that are relevant to the Group and effective for the full year reporting periods beginning on or after 1 July 2024. As a result of this
review, the Directors have applied all new and amended Standards and Interpretations that were effective as at 1 July 2024 with no material
impact on the amounts presented and the disclosures included in the financial report.

 

New
accounting standards and interpretations not yet adopted

 

Certain
new accounting standards and interpretations have been published that are not mandatory for 30 June 2025 reporting periods and have not
been early adopted by the Group. The Group’s assessment of the impact of these new standards and interpretations has not identified
any impact.

 

d)Principles
of consolidation

 

Subsidiaries
are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has 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 deconsolidated from
the date that control ceases. A list of controlled entities is contained in Note 34 to the financial statements.

 

Non-controlling
interests in subsidiaries are identified separately from the Group’s equity and are initially measured at fair value or at the
non-controlling interests’ proportionate share of the fair value of the identifiable net assets. This election is made on an acquisition-by-acquisition
basis. Subsequent to acquisition date, the carrying amounts of non-controlling interests are adjusted for the non-controlling interests’
share of changes in equity.

 

All
inter-group balances and transactions between entities in the Group, including any unrealised profits or losses, have been eliminated
on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those adopted by the
Parent Entity.

 

e)Significant
accounting estimates and assumptions

 

The
carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key
estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and
liabilities within the next annual reporting period are:

 

Share-based
payment transactions

 

The
Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which
they are granted. The fair value of unlisted equity-settled transaction is determined using a Black-Scholes option pricing model taking
into account the terms and conditions upon which the instruments were granted. The fair value of listed equity-settled share options
granted was based on the fair value of financial instruments traded in active markets based on the quoted market prices at the grant
date (note 27).

 

Warrants

 

The
Group measures the cost of warrants by reference to the fair value of the equity instruments at the date at which they are granted and
at reporting date. The fair value of the unlisted warrants is determined using a Black-Scholes or Monte Carlo Simulation (MCS) option
pricing model taking into account the terms and conditions upon which the instruments were granted. The fair value of listed warrants
was based on the fair value of financial instruments traded in active markets based on the quoted market prices at reporting date (note
23).

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 9

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 

 

Deferred
taxation 

 

Potential
future income tax benefits have not been brought to account at 30 June 2025 because the Directors do not believe that it is appropriate
to regard realisations of future income tax benefits as probable.

 

Deferred
exploration and evaluation expenditure

 

The
application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement in determining whether
it is likely that future economic benefits are likely from future exploitation or sale or where activities have not reached a stage which
permits a reasonable assumption of the existence of reserves.

 

f)Foreign
Currency

 

Foreign
currency transactions and balances

 

All
foreign currency transactions occurring during the financial year are recognised at the exchange rate in effect at the date of the transaction.
Foreign currency monetary items at reporting date are translated at the exchange rate existing at reporting date. Non-monetary assets
and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when
the fair value was determined.

 

Exchange
differences are recognised in the profit or loss in the period in which they arise except those exchange differences which relate to
assets under construction for future productive use which are included in the cost of those assets where they are regarded as an adjustment
to interest costs on foreign currency borrowings.

 

Functional
and presentation currency

 

Items
included in the financial statements of each of the companies within the Group are measured using the currency of the primary economic
environment in which they operate (the functional currency). The consolidated financial statements are presented in Australian dollars,
which is the Group’s functional and presentation currency.

 

Group
companies

 

The
results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a
functional currency different from the presentation currency are translated into the presentation currency as follows:

 

■assets
 and liabilities for each statement of financial position presented are translated at the
 closing rate at the date of that statement of financial position;

 

■income
 and expenses for each statement of profit or loss and other comprehensive income are translated
 at average exchange rates (unless this is not a reasonable approximation of the cumulative
 effect of the rates prevailing on the transaction dates, in which case income and expenses
 are translated at the dates of the transactions), and

 

■all
 resulting exchange differences are recognised in other comprehensive income.

 

On
consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in other comprehensive
income. When a foreign operation is sold, a proportionate share of such exchange differences is reclassified to profit or loss, as part
of the gain or loss on sale where applicable.

 

Goodwill
and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entities
and translated at the closing rate.

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 10

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 

 

g)Exploration
 and evaluation expenditure

 

Exploration
and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the
year in which they are incurred where the following conditions are satisfied:

 

■the
 rights to tenure of the area of interest are current; and

 

■at
 least one of the following conditions is also met: 

 

■the
 exploration and evaluation expenditures are expected to be recouped through successful development
 and exploration of the area of interest, or alternatively, by its sale; or

 

■exploration
 and evaluation activities in the area of interest have not at the balance date reached a
 stage which permits a reasonable assessment of the existence or otherwise of economically
 recoverable reserves, and active and significant operations in, or in relation to, the area
 of interest are continuing. 

 

Exploration
and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching
and sampling and associated activities and an allocation of depreciation and amortised of assets used in exploration and evaluation activities.
General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly
to operational activities in a particular area of interest.

 

Exploration
and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and
evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating
unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the asset in previous years.

 

Where
a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation
asset is tested for impairment and the balance is then reclassified to development.

 

h)Joint
 venture

 

A
joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the Group has rights
to a share of the arrangement’s net assets rather than direct rights to underlying assets and obligations for underlying liabilities.

 

The
joint venture is accounted for using the equity method. Under the equity method, the share of the profits or losses of the joint venture
is recognized in profit or loss and the share of the movements in equity is recognized in other comprehensive income. Investments in
joint ventures are carried in the statement of financial position at cost plus post-acquisition changes in the Group’s share of
net assets of the joint venture.

 

Any
goodwill or fair value adjustment attributable to the Group’s share in the joint venture is not recognized separately and is included
in the amount recognized as investment.

 

The
carrying amount of the investment in joint venture is increased or decreased to recognize the Group’s share of the profit or loss
and other comprehensive income of the joint venture, adjusted where necessary to ensure consistency with the accounting policies of the
Group.

 

Unrealised
gains and losses on transactions between the Group and the joint venture are eliminated to the extent of the Group’s interest in
those entities. Where unrealised losses are eliminated, the underlying asset is also tested for impairment.

 

i)Warrants

 

Warrants
as classified as liabilities because the warrants do not meet the criteria for equity treatment. Accordingly, the Group will classify
each warrant as a liability at its fair value. This liability is subject to re-measurement at each balance sheet date. With each such
re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized in the Groups consolidated
statement of comprehensive income.

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 11

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 
 

3.SEGMENT
 INFORMATION

 

IFRS
8 Operating Segments requires operating segments to be identified on the basis of internal reports that are regularly reviewed by
the Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance,
and for which discrete financial information is available. In the case of the Group the CODM are the executive management team and all
information reported to the CODM is based on the consolidated results of the Group as one operating segment, as the Group’s activities
relate to mineral exploration.

 

Minerals
Exploration cover’s the Group’s main projects including:

 

■Wolfsberg
 (Austria)

 

■Tanbreez
 (Greenland)

 

■Bretstein-Lachtal
 Project, Klementkogel Project, and the Wildbachgraben Project (Austria)

 

■Weinebene
 and Eastern Alps Projects (Austria)

 

■Leinster
 Lithium (Ireland)

 

■Dobra
 and Shevchenkivske Projects (Ukraine)

 

Whilst
the Group receives separate report for each of these projects, these projects have been aggregated into one reporting segment because
management considers that they have similar economic characteristics as all three are exploration projects.

 

The
measure of profit or loss for this reportable segment are the same as the amounts presented on the face of the Consolidated Statement
of Profit or loss and Other Comprehensive Income. The measure of total assets and liabilities and the amount of investment in associated
and JV accounted for by the equity method for this reportable segment are the same as the amounts presented on the face of the Consolidated
Statement of Financial position.

 

Accordingly,
the Group has only one reportable segment and the results are the same as the Group results.

 

a)Information
 by geographical region

 

The
analysis of the location of non-current assets is as follows:

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Australia 
  6,274,133  
  1,791,093 

 
 Austria 
  84,794,412  
  76,316,227 

 
 Greenland 
  174,801,265  
  17,681,136 

 
   
  265,869,810  
  95,788,456 

 

 

4.OTHER
 INCOME

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Interest revenue 
  744,121  
  231,388 

 
 Interest on short term loan (note 10) 
  96,603  
  74,901 

 
 Interest on convertible loan note 
  11,411  
  - 

 
 Grants received 
  152,533  
  114,885 

 
 Other income 
  239,655  
  30,790 

 
   
  1,244,323  
  451,964 

 

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 12

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 

 

5.EXPENSES
 FROM CONTINUING OPERATIONS

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Finance expenses 
    
   

 
 Issue of 1,000,000 warrants to Empery (note 23) 
  -  
  (556,718)

 
 Issue of 1,814,797 warrants to GEM (note 23) 
  -  
  (41,486,893)

 
 Issue of 294,600 warrants to PIPE brokers 
  (39,713) 
  - 

 
 GEM payable 
  170,218  
  (3,271,089)

 
 Interest expense - leased assets 
  (8,431) 
  (18,398)

 
 Bank fees 
  (89,629) 
  (96,648)

 
 Brokerage fees 
  (3,772) 
  (13,025)

 
 Financing costs 
  (818,765) 
  (168,441)

 
 Other expenses 
  (261,879) 
  (77,068)

 
   
  (1,051,971) 
  (45,688,280)

 

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Consulting fees 
    
   

 
 Taxation advisors 
  (511,081) 
  (37,208)

 
 Strategy 
  (452,016) 
  (26,770)

 
 Company secretarial advisors 
  (60,000) 
  (60,000)

 
 Legal fees (a) 
  (17,380,804) 
  (1,939,074)

 
 Accounting fees 
  (764,313) 
  (214,581)

 
 Government Affairs 
  (259,623) 
  - 

 
 General 
  (676,098) 
  (668,764)

 
   
  (20,103,935) 
  (2,946,397)

 

 

(a)The
legal fees of CRML include an accrued amount of US$8,300,000 (A$12,824,110) in respect to the BTC convertible note (non-recourse against
BTC price) transaction (refer to ASX announcement released 22 January 2025).

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Merger expenses 
    
   

 
 Merger expenses (a) 
  (4,635,221) 
  (4,967,583)

 
   
  (4,635,221) 
  (4,967,583)

 

 

(a)On
1 March 2024, the Company announced the completion of the business combination agreement with Sizzle Acquisition Corp., a US special
purpose acquisition company listed on NASDAQ (NASDAQ:SZZL) (Sizzle), pursuant to which EUR combined its wholly owned Wolfsberg Lithium
Project (Wolfsberg Project) with Sizzle via a newly-formed, lithium exploration and development company named “Critical Metals
Corp” (Critical Metals or CRML) which is listed on the NASDAQ (Transaction). Critical Metals commenced trading on the NASDAQ on
28 February 2024. Merger expenses relate directly to this Transaction.

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Listing expenses 
    
   

 
 IFRS 2 listing expenses (note 31) 
  -  
  (104,220,007)

 
 Issue of 122,549 CRML shares to GEM to settle financing costs 
  -  
  (2,882,306)

 
 Gain/loss on extinguishment of liabilities 
  -  
  (9,738,172)

 
   
  -  
  (116,840,485)

 

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 13

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 
 

6.INCOME
 TAX

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Major components of income tax expense for the year are: 
    
   

 
   
    
   

 
 Income statement 
    
   

 
 Current income tax charge/(benefit) 
      -  
      - 

 
   
     
    

 
 Statement of changes in equity 
     
    

 
 Income tax expense reported in equity 
  -  
  - 

 

 

A
reconciliation of income tax expense/(benefit) applicable to accounting profit/(loss) before income as at the statutory income tax rate
to income tax expense/(benefit) at the Groups effective income tax rate for the year is as follows:

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Loss from ordinary activities before income tax expense 
  (96,790,991) 
  (200,278,301)

 
 Prima facie tax benefit on loss from ordinary activities at 30.0% (2024: 30%) 
  (29,037,297) 
  (60,083,490)

 
   
     
    

 
 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: 
     
    

 
 Non-deductible expenses 
  15,426,119  
  54,588,440 

 
 Deferred tax movements not recognised 
  10,049,683  
  865,959 

 
 Taxable capital gain 
  4,370,813  
  - 

 
 Tax rate differential 
  3,800,334  
  1,141,788 

 
 Recognition of previously unrecognised deferred tax amounts 
  (4,609,652) 
  3,487,303 

 
   
  -  
  - 

 

 

Unrecognised
deferred tax assets have not been recognised in respect of the following items:

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Unrecognised temporary differences 
    
   

 
 Deferred tax assets (at 30.0%) (2024: 30%) 
    
   

 
 Accrued expenses 
  -  
  2,400 

 
 Exploration expenditure 
  7,532,365  
  117,708 

 
 Financial assets 
  (2,598,213) 
  (1,612,987)

 
 Capital raising costs 
  33,185  
  74,735 

 
 Joint venture 
  9,981  
  - 

 
 Fixed assets 
  (415) 
  - 

 
 Right of use assets 
  (1,561) 
  (3,122)

 
 Lease liabilities 
  1,711  
  3,269 

 
 Trade and other receivables 
  152  
  - 

 
 Start up organisation expenses (foreign) 
  -  
  301,132 

 
 Carry forward tax losses – revenue 
  10,167,923  
  12,285,772 

 
 Carry forward tax losses – capital 
  -  
  1,688,459 

 
 Other 
  7,780,976  
  (22,164)

 
   
  22,926,104  
  12,835,202 

 
   
     
    

 
 Deferred tax liabilities (at 30.0%) (2024: 30%) 
     
    

 
 Net unrecognised deferred tax asset/(liability) 
  22,926,104  
  12,835,202 

 

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 14

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 
 

Potential
future income tax benefits arising from tax losses have not been brought to account at 30 June 2025 and 2024 because the directors do
not believe it is appropriate to regard realisation of the future income tax benefits as probable. These benefits will only be obtained
if:

 

■assessable
 income is derived of a nature and of amount sufficient to enable the benefit from the deductions
 to be realised;

 

■the
 Group continues to comply with the conditions for deductibility imposed by law; and

 

■no
 changes in tax legislation adversely affect the realisation of the benefit from the deductions.

 

The
Group is subject to taxation for its consolidated subsidiaries at the rates applicable in the respective tax jurisdictions:

 

■Australia
 – Profits are taxed at the standard corporate income tax rate of 30%.

 

■Austria
 - Profits are taxed at the standard corporate income tax (CIT) rate of 23% in Austria (2024:
 23%), regardless of whether profits are retained or distributed. For the net unrecognised
 deferred tax asset as of 30 June 2025 a tax rate of 23% was used and for the net unrecognised
 deferred tax asset as of 30 June 2024 a tax rate of 23% was used based on the assessment
 of the future utilization by the management. Tax losses can be carried forward in Austria
 without time limitation. In general tax losses carried forward can be offset against taxable
 income only up to a maximum of 75% of the taxable income for any given year.

 

■United
 States - The profits are taxed at the rate of 21% at the US Federal taxation level, without
 being subject to state taxation in the United States.

 

■United
 Kingdom – Profits are taxed at the rate of 25%.

 

■British
 Virgin Islands - BVI Business companies are exempt from any taxation, regardless their source
 of income.

 

7.CASH
 AND CASH EQUIVALENTS

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Cash at bank and in hand 
  20,021,463  
  5,778,638 

 
   
  20,021,463  
  5,778,638 

 

 

Cash
at bank earns interest at floating rates based on daily bank deposit rates.

 

8.TRADE
 AND OTHER RECEIVABLES

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Trade and other receivables 
  75,353  
  118,874 

 
 Security deposit 
  7,097  
  6,359 

 
 GST / VAT receivable 
  151,019  
  211,616 

 
 Interest receivable on restricted cash 
  -  
  62,393 

 
 Funds receivable in respect to the exercise of CRML warrants 
  -  
  1,063,118 

 
 Other receivables 
  18,768  
  23,137 

 
   
  252,237  
  1,485,497 

 

 

These
amounts arise from the usual operating activities of the Group and, with the exception of interest receivable on restricted cash, are
non-interest bearing. The debtors do not contain any overdue or impaired receivables. The lifetime expected credit loss allowance is
not material.

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 15

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 

 

 

9.PREPAID
 EXPENSES

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Prepaid insurance 
  1,433,702  
  2,446,701 

 
 Other prepaid expenses 
  128,544  
  53,841 

 
   
  1,562,246  
  2,500,542 

 

 

10.SHORT
 TERM LOAN

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Short term loan 
  -  
  2,274,383 

 
   
  -  
  2,274,383 

 

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Balance at beginning of year 
  2,274,383  
  - 

 
 Drawdown of loan 
  -  
  2,290,000 

 
 Repayment of loan 
  (2,370,986) 
  (90,518)

 
 Accrued interest (note 4) 
  96,603  
  74,901 

 
 Balance at end of year 
  -  
  2,274,383 

 

 

On
14 September 2023, the Company entered into a loan agreement and advanced funds of A$200,000 to Cyclone Metals Ltd (ASX: CLE). This loan
was repayable by 31 December 2024 and accrued interest of 7.5% per annum. On 19 October 2023, the Company entered into a further loan
agreement with CLE and advanced funds of A$90,000. On 16 November 2023, CLE repaid this loan, including accrued interest of A$518 to
the Company. On 12 March 2024, the Company entered into a further loan agreement with CLE and advanced funds of A$2,000,000. This loan
was repayable on 31 December 2024 and accrued interest of 10.0% per annum. During the year, the loans of A$2,370,986 were repaid in full,
with the associated security over assets of CLE removed, with a nil balance owing at 30 June 2025.

 

11.CONVERTIBLE
 NOTE

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Convertible loan note 
  -  
  298,869 

 
   
  -  
  298,869 

 

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Carrying value at beginning of year 
  298,869  
  - 

 
 Additions 
  399,425  
  298,869 

 
 Impairment of convertible notes 
  (698,294) 
  - 

 
 Carrying value at end of year 
  -  
  298,869 

 

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 16

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 

 

On
4 January 2024, the Company subscribed for convertible loan notes of US$200,000 in Pan African Niger Limited (PANL). Interest
accrues at 20% per annum and is repayable or convertible by 31 December 2025 (Convertible Note). The Company may elect to convert
the Convertible Note into shares based on the market value price per PANL share at the date of conversion discounted by 50%.

 

On
7 March 2025, the Company subscribed for convertible loan notes of US$250,000 (A$399,425) with PANL which accrues interest at 20% per
annum and is repayable or convertible by 7 March 2026. The Company may elect to convert the Convertible Note into shares based on the
market value price per PANL share at the date of conversion discounted by 50%.

 

As
at 30 June 2025, the Company impaired the carrying values of the convertible notes to nil.

 

12.PROPERTY,
 PLANT AND EQUIPMENT

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Cost 
  74,350  
  64,176 

 
 Accumulated depreciation 
  (68,985) 
  (55,758)

 
   
  5,365  
  8,418 

 

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Carrying value at beginning of year 
  8,418  
  26,837 

 
 Additions 
  3,362  
  - 

 
 Assets written off 
  (1,460) 
  - 

 
 Depreciation charge for the year 
  (8,167) 
  (18,451)

 
 Foreign exchange 
  3,212  
  32 

 
 Carrying value at end of year 
  5,365  
  8,418 

 

 

13.DEFERRED
 EXPLORATION AND EVALUATION EXPENDITURE

 

 
  
 2025
 A$
  
 2024
 A$
 

 
 Exploration and evaluation phases: 
    
   

 
 Balance at beginning of period 
  53,239,237  
  52,694,287 

 
 Expenditure incurred 
  1,877,163  
  1,558,682 

 
 Acquisition of tenements (note 30) 
  13,632,279  
  - 

 
 Impairment of exploration expenditure (i) 
  (14,496,678) 
  - 

 
 Foreign exchange movement 
  6,358,944  
  (1,013,732)

 
 Balance at end of period 
  60,610,945  
  53,239,237 

 

 

(i)During
 the year ended 30 June 2025, the Group recognised impairment losses in respect of capitalised
 exploration and evaluation of A$14,496,678 (30 June 2024: A$nil). The impairment made was
 recognised in respect to the Leinster Lithium Project and the Austrian Lithium Project noting
 that current and planned exploration activities on these projects is relatively minimal given
 global lithium prices. The Group continues to expend amounts in order to meet minimum spend
 commitments on the Leinster Lithium Project and the Austrian Lithium Project in order to
 retain tenure.

 

The
recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is dependent upon the successful
development and commercial exploitation or sale of the respective areas.

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 17

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 
 

14.INVESTMENT
 IN ASSOCIATE

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Investments in associates 
  1,008,716  
  806,148 

 

 

a)Investment
 details

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Percentage held at reporting date – EV Resources (i) 
  20% 
  20%

 
 Percentage held at reporting date – John Wally (ii) 
  50% 
  50%

 

 

(i)On
 11 May 2021, the Company announced that it had entered into a Collaboration Agreement with
 EV Resources Limited (ASX: EVR) (EVR) and an agreement to acquire a 20% interest in
 Jadar’s Austrian Lithium assets. EVR holds an 80% interest in the Austrian incorporate
 subsidiary EV Resources GmbH, the holder of the Weinebene and Eastern Alps Projects which
 lies 20km to the east of the Company’s Wolfsberg Project. On 29 February 2024 in accordance
 with the terms of the merger Transaction, the 20% interest in EV Resources GmbH was transferred
 from the Company to Critical Metals Corp.

 

(ii)The
 Company holds a 50% interest in the Australian incorporated entity John Wally Resources Pty
 Ltd (John Wally). This investment is equity accounted given the existence of joint
 control and the significant influence the Company has on John Wally through Mr Sage’s
 role on the board and the interchange of management personnel.

 

b)Movement
 in the carrying amount of the investment in associates

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Balance at beginning of year 
  806,148  
  666,390 

 
 Cash investment 
  186,092  
  168,056 

 
 Share of net losses recognised during the year 
  7,230  
  (15,021)

 
 Foreign exchange 
  9,246  
  (13,277)

 
 Balance at end of year 
  1,008,716  
  806,148 

 

 

c)Summarised
 financial information based on unaudited accounts

 

EV
Resources GmbH

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Current assets 
  13,819  
  5,119 

 
 Non-current assets 
  524,015  
  450,255 

 
 Current liabilities 
  (699,097) 
  (646,596)

 
 Non-current liabilities 
  -  
  - 

 
 Equity 
  161,263  
  191,222 

 
 Group’s carrying amount of the investment 
  534,288  
  514,491 

 

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 18

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 

 

EV
Resources GmbH has no contingent liabilities, capital commitments or bank guarantees on issue as at 30 June 2025.

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Revenue and other income 
  -  
  - 

 
 Depreciation 
  -  
  - 

 
 Profit/(Loss) before tax 
  52,757  
  (34,738)

 
 Income tax expense 
  -  
  - 

 
 Profit/(Loss) for the year 
  52,757  
  (34,738)

 
 Total comprehensive (loss) for the year 
  -  
  - 

 
 Group’s share of profit/(loss) for the year 
  10,551  
  (6,948)

 

 

John
Wally

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Current assets 
  -  
  - 

 
 Non-current assets 
  441,158  
  261,708 

 
 Current liabilities 
  -  
  - 

 
 Non-current liabilities 
  -  
  - 

 
 Equity 
  447,158  
  261,708 

 
 Group’s carrying amount of the investment 
  474,428  
  291,657 

 

 

John
Wally has no contingent liabilities, capital commitments or bank guarantees on issue as at 30 June 2025.

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Revenue and other income 
  -  
  - 

 
 Depreciation 
  -  
  - 

 
 Loss before tax 
  (6,642) 
  (16,145)

 
 Income tax expense 
  -  
  - 

 
 Loss for the year 
  (6,642) 
  (16,145)

 
 Total comprehensive (loss) for the year 
  (6,642) 
  (16,145)

 
 Group’s share of (loss) for the year 
  (3,321) 
  (8,073)

 

 

d)Impairment
 assessment

 

The
carrying amount of the investments in associates were assessed for impairment at 30 June 2025 and 2024. As at 30 June 2025 and 2024,
management are of the view that no indication of impairment at the reporting date.

 

 FINANCIAL STATEMENTS 2025 AND 2024Page 19

  

 

 

 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 
  

 

 

15.RESTRICTED
 CASH AND OTHER DEPOSITS

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Term deposits (i) 
  84,588  
  80,997 

 
 Funds held on deposit against offtake prepayment (ii) 
  23,576,616  
  22,483,950 

 
   
  23,661,204  
  22,564,947 

 

 

(i)Restricted
cash relates to the bank guarantees provided by ECM Lithium AT GmbH to the value of €20,000 in respect of any unrepaired damage
to property at the Wolfsberg Project. These deposits are subject to restrictions and are therefore not available for general use by the
entities within the Group.

 

(ii)On
 1 June 2024, Bayerische Motoren Werkte Aktiengesellschaft (BMW) transferred funds of US $15
 million to ECM Lithium GmbH in relation to the offtake of battery grade lithium hydroxide
 (LiOH) from the Wolfsberg Project. The Balance at 30 June 2025 includes accrued interest
 of US$447,516. The funds are held in a deposit account secured against a bank guarantee (note
 24) and are to be offset against LiOH delivered to BMW.

 

16.INVESTMENT
 IN JOINT VENTURE

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Shares in Tanbreez Mining Greenland A/S 
  174,801,266  
  17,681,136 

 
   
  174,801,266  
  17,681,136 

 

 

Tanbreez
Mining Greenland A/S (Tanbreez) is a company incorporated and domiciled in Greenland.

 

a)Movement
 in the carrying amount of the investment in joint venture

 

 
   
 2025
 A$
  
 2024
 A$
 

 
 Balance at beginning of year 
  17,681,136  
  - 

 
 Purchase of shares in Tanbreez Mining Greenland A/S (i) 
  147,816,344  
  7,494,650 

 
 Cash investments 
  3,144,054  
  - 

 
 Invoices paid by CRML on behalf of JV 
  4,951,794  
  - 

 
 Share of profits recognised during the year 
  1,084,608  
  - 

 
 Foreign exchange 
  123,330  
  - 

 
 Reclassification from financial assets at fair value through profit or loss (note 17) 
  -  
  10,186,486 

 
 Financial assets at fair value through profit or loss at end of period 
  174,801,266  
  17,681,136 

 

 

(i)On
 5 June 2024,