2025 Final Results

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

30 June 2026

Harvest Minerals Limited

('Harvest' or the 'Company')

2025 Final Results

Harvest Minerals Limited, the AIM-listed organic fertiliser producer, is pleased to announce its audited Final Results for the year ended 31 December 2025, extracts from which are set out below. The Company's Annual Report & Accounts will today be uploaded to Harvest's website, and the accounts posted to shareholders, where appropriate.

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

During the financial year, the principal activity of the Group was mineral exploration and production of organic natural fertiliser at its Arapua Fertiliser Project. The Group currently holds mining and agricultural related projects in Brazil.

REVIEW OF OPERATIONS

Arapua Fertiliser Project

Arapua is the Company's principal business unit and currently its sole source of revenue. The Company's focus in prior years has been progressing commercial production and revenue generation.

2025 continued to be a challenging year for the Company and its key project, Arapua.  Due to the ongoing challenges globally in the market, during 2025 and continuing into 2026, the focus has been on the preservation of Arapua and addressing the Company's balance sheet - primarily though seeking renegotiation of bank debt facilities in Brazil. Refer to "Significant events after the balance date" below.

Total sales for the year were 25,983 tonnes. The poor trading experienced by the Company during 2025 reflects difficult macroeconomic issues outside the control of the Company. Consequently, during 2025, the Company continued with the reduced scope of its operational activities in an effort took to reduce cash burn.

Arapua Rare Earth Elements Project

During the year the Company announced the results of a limited work programme relating to the potential for rare earth elements (REE) at Arapua. The Company considers the REE potential to be an exciting opportunity and intends to pursue this path further.

Corporate Activity

Issue of Shares

As announced on 23 June 2025, the Company raised gross proceeds of £300,000 through placing 100,000,000 new ordinary shares of no par value at a placing price of 0.3 pence. The Company also issued one warrant per two Placing Shares, exercisable at 0.6p for a period of 2 years from Admission. The proceeds from the raise were received on 2 July 2025.

On 30 June 2025 the Company announced an equity issue package consisting of the settlement of c. £342,000 of director / company secretary fees, through the issue of, in aggregate, 114,000,000 new ordinary shares of no par value at a price of 0.3 pence.

No other shares were issued by the Company during the year.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of the Company during the year, other than as set out in this report.

SIGNIFICANT EVENTS AFTER THE BALANCE DATE

In February 2026, Triunfo Mineracao do Brasil Ltda (Triunfo) made an application to the 5th Corporate Court of the Judicial District of the Capital of the State of Rio de Janeiro seeking preliminary injunctive relief against enforceability of financial obligations owing by Triunfo. On 9 March 2026, injunctive relief was granted for an initial period of 60 days. This is not a formal judicial reorganisation or out-of-court reorganisation. Rather, it is a measure to protect distressed companies by halting creditor enforcement action for a period of time to allow the company to negotiate with creditors.

Since March 2026, Triunfo has been in negotiations with lenders in respect to amounts owed.

In May 2026, Triunfo applied to the Court for an extension of the initial 60-day period. On 2 June 2026, the Court extended the period to 60 days.

In May 2026, Triunfo reached agreement with Banco Itau S.A that provided for settlement of all amounts owing upon payment of R$253,269 (AUD$70,250). This amount was paid in full on 19 May 2026. As such, as at the date of this Report, Banco Itau S.A. is no longer a creditor of Triunfo.

Negotiations with the remaining three lenders in respect of R$11,663,238 (AUD$3,182,330) owing at 31 December 2025 is continuing. Further updates will be provided as and when appropriate.

Mr Mark Reily was appointed as a non-executive director effective 3 March 2026.

There have been no other significant events subsequent to the balance date.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

for the year ended 31 December 2025

Consolidated Statement of Financial Position

as at 31 December 2025

Consolidated Statement of Cash Flows

for the year ended 31 December 2025

Notes to the financial statements at and for the year ended 31 December 2025

NOTE 1: CORPORATE INFORMATION

The financial report of Harvest Minerals Limited ("Harvest Minerals" or "the Company") and its controlled entities ("the Group") for the year ended 31 December 2025 was authorised for issue in accordance with a resolution of the Directors on 30 June 2026.

Harvest Minerals Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the AIM market operated by the London Stock Exchange.

The nature of the operations and the principal activities of the Group are described in the Directors' Report.

NOTE 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 Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The Group is a for profit entity for financial reporting purposes under Australian Accounting Standards.

The financial report has been prepared on an accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Material accounting policies adopted in preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

The presentation currency is Australian dollars.

Going Concern

These financial statements have been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business.

For the year ended 31 December 2025 the Group recorded a loss after tax of $5,795,297 (31 December 2024: loss of $3,666,673) and had net cash outflows from operating and investing activities of $598,195 (31 December 2024: $405,236) and $1,378,930 of borrowings that fall due within 12 months (31 December 2024: $1,856,489). These conditions indicate a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern

This financial report has been prepared on the basis that the Group is a going concern, which contemplates the continuity of normal business activity, realisation of assets and settlement of liabilities in the normal course of business for the following reasons:

· Management has considered the future capital requirements of the Group and will consider all funding options as required, including (but not limited to) fundraising and/or asset sales.

· The level of the Company's discretionary expenditure (such as advertising fees, consultants fees, directors' fees, wages and salaries and travel expenses) can be managed;

· Continued focus on generating sales as a result of improved market conditions;

· Previously the Directors have agreed to pause drawing their remuneration until such point as the Company is able to pay. The Directors will do so again if necessary;

· As disclosed in the Directors' Report, subsequent to year end, Triunfo was granted injunctive relief from enforcement by creditors that allows it time to negotiate with its lenders around debt repayment. In March 2026, Triunfo reached agreement on a debt restructure with Banco Itau S.A that provided for settlement of all amounts owing being R$1,022,521 (AUD278,996) upon payment of R$253,269 (AUD70,250). This amount was paid in full on 19 May 2026. As such, as at the date of this Report, Banco Itau S.A. is no longer a creditor of Triunfo. Negotiations with the other lenders are ongoing and the Directors are hopeful of successfully restructuring its debts with Banco Bradesco, BDMG and Banco Santander.

As at the date of this report, the Board and Management believe that through the above actions, as and when needed, the Group will have sufficient funds to manage its working capital requirements in the near term and longer term.

Should the above actions not be successful, or not eventuate on a sufficiently timely basis, there is a material uncertainty which may cast significant doubt as to the Group's ability to continue as a going concern and it may be required to realise its assets and discharge its liabilities other than in the ordinary course of business, specifically those pertaining to the Arapua mine assets, property and inventory, and at amounts that differ from those stated in the financial report. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be necessary should the Group not continue as a going concern.

(b)  Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 30.

(c)  Compliance statement

The financial report complies with Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures compliance with International Financial Reporting Standards (IFRS).

(d)  Changes in accounting policies and disclosures

During the year ended 31 December 2025, the Directors have reviewed all new and revised Standards and Interpretations issued by the AASB that are relevant to the Group's operations and effective for current reporting periods beginning on or after 1 January 2025. There was no material impact on the Group accounting policies.

The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year ended 31 December 2025. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group's business and, therefore, no change is necessary to the Group accounting policies.

Where new and amended accounting standards and interpretations have been published but are not mandatory, the Group has decided against early adoption of these standards, and has determined the potential impact on the financial statements from the adoption of these standards and interpretations is not material to the Group.

(e) Mine Properties

Mine properties represent the accumulation of all exploration, evaluation and development expenditure incurred in respect of areas of interest in which mining has commenced or is in the process of commencing. When further development expenditure is incurred in respect of mine property after the commencement of production, such expenditure is carried forward as part of the mine property only when substantial future economic benefits are thereby established, otherwise such expenditure is classified as part of the cost of production.

Amortisation is provided on a unit of production basis which results in a write off against the cost proportional to the depletion of the proven and probable mineral reserves. The net carrying value of each area of interest is reviewed regularly and to the extent to which this value exceeds its recoverable amount, the excess is either fully provided against or written off in the financial year in which this is determined.

The Group provides for environmental restoration and rehabilitation at site which includes any costs to dismantle and remove certain items of plant and equipment. The cost of an item includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs when an item is acquired or as a consequence of having used the item during that period.

This asset is depreciated on the basis of the current estimate of the useful life of the asset. In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets the Group is also required to recognise as a provision the best estimate of the present value of expenditure required to settle this obligation. The present value of estimated future cash flows is measured using a current market discount rate.

Stripping costs

Costs associated with material stripping activity, which is the process of removing mine waste materials to gain access to the mineral deposits underneath, during the production phase of surface mining are accounted for as either inventory or a non-current asset (non-current asset is also referred to as a 'stripping activity asset').

To the extent that the benefit from the stripping activity is realised in the form of inventory produced, the Group accounts for the costs of that stripping activity in accordance with the principles of AASB 102 Inventories. To the extent the benefit is improved access to ore, the Group recognises these costs as a non-current asset provided that:

· it is probable that the future economic benefit (improved access to the ore body) associated with the stripping activity will flow to the Group;

· the Group can identify the component of the ore body for which access has been improved; and

· the costs relating to the stripping activity associated with that component can be measured reliably.

Stripping activity assets are initially measured at cost, being the accumulation of costs directly incurred to perform the stripping activity that improves access to the identified component of ore plus an allocation of directly attributable overhead costs. In addition, stripping activity assets are accounted for as an addition to, or as an enhancement to, an existing asset.

Accordingly, the nature of the existing asset determines:

· whether the Group classifies the stripping activity asset as tangible or intangible; and

· the basis on which the stripping activity asset is measured subsequent to initial recognition

In circumstances where the costs of the stripping activity asset and the inventory produced are not separately identifiable, the Group allocates the production stripping costs between the inventory produced and the stripping activity asset by using an allocation basis that is based on volume of waste extracted compared with expected volume, for a given volume of ore production.

(f) Revenue

Revenue arises mainly from the sale of fertiliser. The Group generates revenue in Brazil. Revenue is recognized when customers takes physical delivery of the fertiliser. The transaction price is estimated at contract inception for the amount to which the Company expects to be entitled and has rights to under the present contract.

(g)  Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition is accounted for as follows:

· Raw materials - purchase cost; and

· Finished goods - cost of direct materials and labour and an appropriate proportion of variable and fixed overheads based on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(h)  Basis of Consolidation

The consolidated financial statements comprise the financial statements of Harvest Minerals Limited and its subsidiaries as at 31 December 2025, and the prior year to 31 December 2024.

Subsidiaries are all those entities over which the Company has control. The Company controls an entity when the Company 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.

The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies.

In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-company transactions have been eliminated in full. Subsidiaries are fully consolidated from the date on which control is obtained by the Company and cease to be consolidated from the date on which control is transferred out of the Company.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The acquisition method of accounting involves recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. The identifiable assets acquired, and the liabilities assumed are measured at their acquisition date fair values.

The difference between the above items and the fair value of the consideration (including the fair value of any pre-existing investment in the acquiree) is goodwill or a discount on acquisition.

A change in the ownership interest of a subsidiary that does not result in a loss of control, is accounted for as an equity transaction.

(i) Foreign Currency Translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Company's controlled entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The functional and presentation currency of Harvest Minerals Limited is Australian dollars. The functional currency of the overseas subsidiaries is Brazilian Reals.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year‑end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

(iii) Group entities

The results and financial position of all the Company's controlled 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 comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation 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 as a separate component of equity.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to the foreign currency translation reserve. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the statement of comprehensive income, as part of the gain or loss on sale where applicable.

(j) Plant and Equipment

Each class of plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Repairs and maintenance expenditure is charged to the statement of comprehensive income during the financial period in which it is incurred.

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the Group commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation Rate

Plant and equipment 33% - 50%

Furniture, Fixtures and Fittings 10%

Computer and software 20%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date.

Derecognition

Additions of plant and equipment are derecognised upon disposal or when no further future economic benefits are expected from their use or disposal. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in the statement of comprehensive income. 

(k)  Impairment of non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets of the Group and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in the statement of comprehensive income.

An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss.

After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

(l) Deferred exploration and evaluation expenditure

Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area of interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure but does not include general overheads or administrative expenditure not having a specific nexus with a particular area of interest.

Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a mining operation. Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided that one of the following conditions is met:

· such costs are expected to be recouped through successful development and exploitation of the area of interest or, alternatively, by its sale; or

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

Expenditure which fails to meet the conditions outlined above is written off. Furthermore, the directors regularly review the carrying value of exploration and evaluation expenditure and make write downs if the values are not expected to be recoverable.

Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as determined by the requirements of AASB 6 Exploration for and Evaluation of Mineral Resources. Exploration assets acquired are reassessed on a regular basis and these costs are carried forward provided that at least one of the conditions referred to in AASB 6 is met.

Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an exploration asset acquired is accounted for in accordance with the policy outlined above for exploration expenditure incurred by or on behalf of the entity. Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not expected to be recovered. When an area of interest is abandoned, any expenditure carried forward in respect of that area is written off.

Expenditure is not carried forward in respect of any area of interest/mineral resource unless the Group's rights of tenure to that area of interest are current.

(m) Trade and Other Receivables

Trade receivables are measured on initial recognition at fair value and are subsequently measured at amortised cost using the effective interest rate method, less any allowance for impairment.

AASB 9's impairment requirements use more forward-looking information to recognise expected credit losses. The Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

(n)  Cash and Cash Equivalents

Cash and cash equivalent in the statement of financial position include cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown as current liabilities in the statement of financial position. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as described above and bank overdrafts.

(o)  Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Where the Group expects some, or all, of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money, and where appropriate, the risks specific to the liability.

Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

(p)  Trade and other payables

Liabilities for trade creditors and other amounts are measured at amortised cost, which is the fair value of the consideration to be paid in the future for goods and services received that are unpaid, whether or not billed to the Group.

(q)  Income Tax

Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes.

No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

No deferred income tax will be recognised in respect of temporary differences associated with investments in subsidiaries if the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary differences will not reverse in the near future.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is charged or credited in the statement of comprehensive income except where it relates to items that may be charged or credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and unused tax losses to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account, or which may be realised in the future is based on tax rates (and tax laws) that have been enacted or substantially enacted at the balance date and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that sufficient future assessable income is expected to be obtained.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of comprehensive income.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

(r) Issued capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

(s)  Earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing the profit / loss attributable to equity holders of the Company, excluding any costs of servicing equity other than dividends, by the weighted average number of ordinary shares, adjusted for any bonus elements.

Diluted earnings per share

Diluted earnings per share is calculated as profit / loss attributable to members of the Company, adjusted for:

· costs of servicing equity (other than dividends);

· the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and

· other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares;

divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus elements.

(t) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of GST/sales tax, except where the amount of GST/sales tax incurred is not recoverable from the relevant Tax Authority. In these circumstances, the GST/sales tax is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST/sales tax.

The net amount of GST/sales tax recoverable from, or payable to, the Tax Authority is included as part of receivables or payables in the statement of financial position.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which is receivable from or payable to the ATO, being disclosed as operating cash flows.

(u)  Share-based payment transactions

The Group provides benefits to individuals acting as, and providing services similar to employees (including Directors) of the Group in the form of share -based payment transactions, whereby individuals render services in exchange for shares or rights over shares ('equity settled transactions').

The cost of these equity settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by using an option pricing formula taking into account the terms and conditions upon which the instruments were granted.

In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Harvest Minerals ('market conditions'). The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award ('vesting date').

The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects:

(i) the extent to which the vesting period has expired and

(ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of the market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The statement of comprehensive income charge or credit for a period represents the movement in cumulative expense recognised at the beginning and end of the period.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition. Where the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of the modification.

Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

The cost of equity-settled transactions with non-employees is measured by reference to the fair value of goods and services received unless this cannot be measured reliably, in which case the cost is measured by reference to the fair value of the equity instruments granted. The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share (see note 25).

(v)  Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(w)  Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either in the principle market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interest. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed each reporting date and transfers between levels are determined based on a reassessment of the lowest level input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

(x)  Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Amortisation of mine properties

The Group uses the concept of life of mine to determine the amortisation of mine properties. In determining life of mine, the Group prepares mineral reserve estimates which by their very nature, require judgements, estimates and assumptions. Where the proved and probable reserve estimates need to be modified, the amortisation expense is accounted for prospectively from the date of the assessment until the end of the revised mine life (for both the current and future years).

The Group defers advanced stripping costs incurred during the production stage of its mining operations. This calculation requires the use of judgements and estimates, such as estimates of tonnes of waste to be removes over the life of the mining area and economically recoverable reserve extracted as a result. Changes in a mine's life and design may result in changes to the expected stripping ratio (waste to mineral reserves ratio). Any resulting changes are accounted for prospectively.

Capitalised exploration and evaluation expenditure

The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources, future technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices and exchange rules.

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made. In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and net assets in the period in which this determination is made.

Functional currency

Under Accounting Standards, each entity within the Group is required to determine its functional currency, which is the currency of the primary economic environment in which the entity operates. Management considers the Brazilian subsidiaries to be foreign operations with Brazilian Reals as the functional currency. In arriving at this determination, management has given priority to the currency that influences the labour, materials and other costs of exploration activities as they consider this to be a primary indicator of the functional currency.

Allowance for expected credit losses

The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience, historical collection rates, the impact of the Straits of Hormuz crisis and forward-looking information that is available. Refer to note 9 for further information. The actual credit losses in future years may be higher or lower.

Provision for rehabilitation

The Group is responsible for rehabilitation related to environmental recovery costs at the Arapua mine site. The Group records these costs against production and is reflected in the cost of goods sold mine operating costs. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money, and where appropriate, the risks specific to the liability.

Recoverable value of Arapua Project

The recoverable value of the Arapua Project cash generating unit was estimated using fair value less costs to sell. The fair value was estimated by an independent expert using the income approach and based on a discounted cash flow model (level 3 in the fair value hierarchy). For more details refer to note 13.

NOTE 3: SEGMENT INFORMATION

For management purposes, the Group is organised into one main operating segment, which involves mining exploration processing and sale of fertiliser. All of the Group's activities are interrelated, and discrete financial information is reported to the Board (Chief Operating Decision Makers) as a single segment. No revenue is derived from a single external customer.

Accordingly, all significant operating decisions are based upon analysis of the Group as one segment. The financial results from this segment are equivalent to the financial statements of the Group as a whole. Revenue earned by the Group is generated in Brazil and all of the Group's non-current assets reside in Brazil.

Information about major customers

The Group has one customer to whom it sold goods where the revenue from that customer was in excess of 10% of the Group's revenue. The customer generated 12.8% of the Group's revenue for the year.

NOTE 4: REVENUE FROM CONTRACTS WITH CUSTOMERS

The Group derives its revenue from the sale of goods at a point in time in the major category of Fertiliser.

NOTE 5: COST OF GOODS SOLD

NOTE 6: OTHER EXPENSES

NOTE 7: INCOME TAX BENEFIT

The benefit of the tax losses will only be obtained if:

(i) the Group derives future assessable income in Australia of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised, and

(ii) the Group continues to comply with the conditions for deductibility imposed by tax legislation in Australia and

(iii) no changes in tax legislation in Australia adversely affect the Group in realising the benefit from the deductions for the losses.

NOTE 8: CASH AND CASH EQUIVALENTS

In March 2023, the Group obtained a $R5,000,000 loan with BDMG bank. The loan is partially secured by $R1,000,000 cash collateral held by BDMG bank in a separate Investment Account. During the year, this cash collateral was released to BDMG bank as required under the lending agreement.

NOTE 9: TRADE AND OTHER RECEIVABLES

Trade debtors, other debtors and goods and services tax are receivable on varying collection terms. Due to the short-term nature of these receivables, their carrying value is assumed to approximate their fair value. Some debtors are given industry standard longer payment terms which may cross over more than one accounting period. These trade terms are widely used in the agricultural market in Brazil and are considered industry norms.

1The Company recognised an impairment expense relating to the trade debtors balance as at 31 December 2025 for the amount of $57,643 (2024: $703,921) from third parties.

2In September 2020, the Company instigated legal proceedings to recover the debt owed by Agrocerrado Produtos Agricolas ("Agrocerrado"). On 25 September 2020, the Tribunal de Justiça do Estado de Minas Gerais issued judgment against Agrocerrado for the full amount of the debt plus costs. The Company took steps to enforce the judgment. In February 2023, the Company received confirmation that in the execution lawsuit against Agrocerrado, the Court rejected Agrocerrado's motion to dismiss the execution. The Company considers the amount to be fully recoverable and continues to pursue recovery. The Company has no control over the timing of the judicial processes.

NOTE 10: INVENTORY

During the year, there was an impairment expense of $nil (2024: $nil) in relation to finished goods.

NOTE 11: INVESTMENT IN SUBSIDIARIES

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2(h).

NOTE 12: PROPERTY, PLANT AND EQUIPMENT

NOTE 13: MINE PROPERTIES

Management identified indicators of impairment in relation to the Group's Arapua project assets as the Company's market capitalisation is below its net assets and the subsidiary is loss making due to difficult market conditions. The Arapua project cash generating unit has a carrying value of $5.643 million consisting of Mine Properties, Plant and Equipment, Deferred Exploration and Evaluation Expenditure and provision for rehabilitation. An assessment for impairment on the Arapua project cash generating unit was undertaken utilising fair value less costs of disposal and an impairment of $2.918 million was recognised as a result of this assessment. The impairment was applied to plant and equipment ($1.235 million), mine properties ($1.607 million), exploration expenditure ($0.049 million) with the balance of ($0.067 million) being a foreign exchange adjustment.

The fair value was calculated using the income approach and an independent expert was engaged to assist Management. The fair value is a level 3 on the fair value hierarchy and the key assumptions used in the model are as follows:

The below movements in assumptions would in isolation result in an additional impairment charge of $0.250 million:

· An increase in the discount rate to 21.22%

· A decrease of 7% in the average forecast price

· An increase of 13.5% in the estimated costs of production.

NOTE 14: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE

The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful development and commercial exploitation or sale of the respective mining areas.

NOTE 15: TRADE AND OTHER PAYABLES

Trade creditors, other creditors and goods and services tax are non-interest bearing. Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value.

NOTE 16: BORROWINGS

At 31 December 2025 all loan facilities for the Group were fully drawn down and are as follows:

In March 2025, the Group announced it has successfully renegotiated its R$5.0 million (c. £675,000) working capital debt, obtaining a 12-month grace period and an extended 36-month repayment plan. Refer to note 23 for details of refinancing negotiations that occurred subsequent to 31 December 2025.

NOTE 17: PROVISIONS

The provision for rehabilitation relates to environmental recovery costs at the Arapua mine site. The Group records these costs against production and is reflected in the cost of goods sold mine operating costs (see note 5).

The provision for legal claims relates to claims by former outsourced contractors claiming employment status with the Group. These claims are subject to legal action that is ongoing as at the date of the report.

NOTE 18: CONTRIBUTED EQUITY

(c) Ordinary shares

The Company does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the Company.

The equity issue in June 2025 included 100,000,000 new ordinary shares at the issue price of 3 pence which raised £300,000 ($582,892) and 114,000,000 new ordinary shares at the issue price of 3 pence to the three Board members and to Palisade Business Consulting Pty Ltd to settle outstanding fees of £342,000 ($716,061). The Company also issued one warrant per two Placing Shares, exercisable at 0.6p for a period of 2 years from Admission. 

(d) Capital risk management

The Group's capital comprises share capital, reserves less accumulated losses amounting to $264,093 at 31 December 2025 (31 December 2024: $4,514,525). The Group manages its capital to ensure its ability to continue as a going concern and to optimise returns to its shareholders. The Group also has borrowings as disclosed in note 16. Refer to note 26 for further information on the Group's financial risk management policies.

(e)  Share options and warrants

As at balance date, there were nil unissued ordinary shares under options and nil unissued ordinary shares under warrants. 

No option holder has any right under the options to participate in any other share issue of the Company or any other entity.

No options were exercised during or since the end of the financial year.

NOTE 19: RESERVES

The option reserve is used to record the value of equity benefits provided to Directors and Executives as part of their remuneration and to employees for their services.

The foreign currency translation reserve is used to record the cumulative gains and losses on the translation of subsidiaries with foreign currencies other than Australian dollars which was recognised in the other comprehensive income.

NOTE 20: ACCUMULATED LOSSES

NOTE 21: EXPENDITURE COMMITMENTS

These obligations arose pursuant to the Sergi acquisition agreement. The amounts are only due if the development of the Sergi project commences and reaches material milestones. The Company has elected to write off the value of the Sergi project in a previous financial year. The Company relinquished the Sergi Project during 2025. As such, there are no expenditure commitments associated with this project.

NOTE 22: AUDITOR'S REMUNERATION

NOTE 23: SUBSEQUENT EVENTS

In February 2026, Triunfo Mineracao do Brasil Ltda (Triunfo) made an application to the 5th Corporate Court of the Judicial District of the Capital of the State of Rio de Janeiro seeking preliminary injunctive relief against enforceability of financial obligations owing by Triunfo. On 9 March 2026, injunctive relief was granted for an initial period of 60 days. This is not a formal judicial reorganisation or out-of-court reorganisation. Rather, it is a measure to protect distressed companies by halting creditor enforcement action for a period of time to allow the company to negotiate with creditors. Since March 2026, Triunfo has been in negotiations with lenders in respect to amounts owed.

In May 2026, Triunfo applied to the Court for an extension of the initial 60 day period. On 2 June 2026, the Court extended the period to 60 days.

In May 2026, Triunfo reached agreement with Banco Itau S.A that provided for settlement of all amounts owing upon payment of R$253,269 (AUD70,250). This amount was paid in full on 19 May 2026. As such, as at the date of this Report, Banco Itau S.A. is no longer a creditor of Triunfo. Negotiations with the remaining three lenders in respect of R$11,663,238 (AUD$3,182,330) owing at 31 December 2025 is continuing. Further updates will be provided as and when appropriate.

Mr Mark Reily was appointed as a non-executive director effective 3 March 2026.

There have been no other significant events subsequent to the balance date.

NOTE 24: RELATED PARTY DISCLOSURES

The ultimate parent entity is Harvest Minerals Limited. Refer to note 11 for a list of all subsidiaries within the Group.

FFA Legal Ltda, a company in which Mr Azevedo is a director, provided the Group with legal and accounting services in Brazil totalling $183,821 (31 December 2024: $293,293). $122,023 (31 December 2024: $136,648) were outstanding at year end.

Palisade Business Consulting Pty Ltd, a company in which Mr James is a director and shareholder, provided the Company with accounting and company secretarial services and provided a serviced office. Fees for Mr James' services as a director and company secretary are paid into this company. Fees received by Palisade Business Consulting Pty Ltd totalled $149,965 (31 December 2024: $218,552). $13,750 (31 December 2024: $110,000) was outstanding at year end.

Mr McMaster's consulting fees of $418,637 (31 December 2024: $253,574) are paid to Gemstar Investments Pty Ltd, a company in which Mr McMaster is a director and shareholder. $20,141 (31 December 2024: $266,758) was outstanding at year end.

These transactions have been entered into on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

NOTE 25: LOSS PER SHARE

NOTE 26: FINANCIAL RISK MANAGEMENT

Exposure to interest rate, liquidity and credit risk arises in the normal course of the Group's business. The Group does not hold or issue derivative financial instruments.

The Group uses different methods as discussed below to manage risks that arise from these financial instruments. The objective is to support the delivery of the financial targets while protecting future financial security.

(a) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities.

The Group manages liquidity risk by maintaining sufficient cash facilities to meet the operating requirements of the business and investing excess funds in highly liquid short-term investments. The responsibility for liquidity risk management rests with the Board of Directors.

Alternatives for sourcing the Group's future capital needs include the cash position and the issue of equity instruments. These alternatives are evaluated to determine the optimal mix of capital resources for our capital needs. We expect that, absent a material adverse change in a combination of our sources of liquidity, present levels of liquidity along with future capital raising will be adequate to meet our expected capital needs.

Below is a maturity analysis of undiscounted financial liabilities:

Maturity analysis for financial liabilities

Financial liabilities of the Group comprise trade and other payables and borrowings. As at 31 December 2025 and 31 December 2024 all trade and other payables are contractually matured within 60 days and so the carrying value equals the contractual cash flows. The fair value of borrowings are based on nominal amounts within the agreements and no assumptions have been used to determine the present value of the future payments based on a discount rate as the amounts are deemed insignificant. The principal payments are contractually required in Brazilian Reals.

(b) Foreign currency exchange rate risk

The Company holds cash balances in foreign currency (Great British Pounds ('GBP'), US Dollars ('USD') and Brazilian Reals ('BRL')). The carrying amounts of the Group's foreign currency denominated cash balances at 31 December 2025 is GBP 223,345 (A$449,839) (2024: GBP 205,613 (A$415,522), USD nil (A$nil) (2024: USD 1,126 (A$1,815) and BRL 2,424,573 (A$4661,547). (2024: BRL 2,275,547 (A$593,328)

Foreign currency sensitivity analysis

A 10% increase and decrease in the GBP against the Australian dollar would lead to a $40,894 increase / decrease in net assets (2024: $41,734 increase / decrease in net assets) and a 10% increase and decrease in the BRL against the Australian dollar would lead to a $66,155 increase / decrease in net assets (2024: $59,333 increase / decrease in net assets).

(c) Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments.

The Group's exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash and term deposits. The Group manages the risk by investing in short term deposits.

Interest rate sensitivity

The following table demonstrates the sensitivity of the Group's statement of comprehensive income to a reasonably possible change in interest rates, with all other variables constant.