Announcement PDF AUSQUEST LIMITED ABN 35 091 542 451 FINANCIAL REPORT for the financial year ended 30 June 2025 AusQuest Limited | Contents Corporate Directory .................................................................................................................................. 1 Chairman’s Letter ...................................................................................................................................... 2 Directors’ Report ....................................................................................................................................... 3 Auditor’s Independence Declaration....................................................................................................... 28 Independent Auditor’s Report ................................................................................................................ 29 Directors’ Declaration ............................................................................................................................. 33 Financial statements ............................................................................................................................... 34 Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................................... 34 Consolidated Statement of Financial Position .......................................................................... 35 Consolidated Statement of Changes in Equity .......................................................................... 36 Consolidated Statement of Cash Flows..................................................................................... 37 Notes to the Consolidated Financial Statements ...................................................................... 38 Consolidated Entity Disclosure Statement .............................................................................................. 72 Additional securities exchange information............................................................................................ 73 Tenements............................................................................................................................................... 76 AusQuest Limited | Corporate Directory Board of Directors Mr Greg Hancock - Chairman and Non-Executive Director Mr Graeme Drew - Managing Director Mr Chris Ellis - Non-Executive Director Company Secretary Mr Henko Vos Registered Office C/- Nexia Perth Level 4, 88 William Street Perth WA 6000 Telephone: +61 8 9463 2463 Website: www.nexia.com.au Corporate Office 8 Kearns Crescent Ardross WA 6153 Telephone: +61 8 9364 3866 Facsimile: +61 8 9364 4892 Website: www.ausquest.com.au Auditors HLB Mann Judd Level 4, 130 Stirling Street Perth WA 6000 Share Registry Automic Pty Ltd Level 5, 126 Phillip Street Sydney NSW 6000 Investor Services: 1300 288 664 General Enquiries: +61 2 9698 5414 Website: www.automicgroup.com.au Securities Exchange Listing Australian Securities Exchange (Home Exchange: Perth, WA) Code: AQD Banker Australia and New Zealand Banking Group 135 Riseley Street Booragoon WA 6154 AusQuest Limited | 1 Chairmans’ Letter Dear Shareholder It is my pleasure to present our 2025 Annual Report and to report on what has been a transformative year for AusQuest, highlighted by the maiden drilling success which delivered the Cangallo porphyry copper discovery in Peru in January 2025. The initial drilling program confirmed the presence of a large mineralised porphyry copper system which extends from near surface to the current ~350m drill limit and remains open in all directions. This outstanding discovery, on what is a 100%-owned asset, underpinned a $7.5 million capital raising and the commencement of a second phase of Reverse Circulation drilling in June 2025. Results from this second phase of drilling have further expanded the size of the discovery both laterally and at depth, paving the way for deeper diamond drilling in September, followed by a third phase of RC drilling commencing in October that will aim to extend the discovery to the south. Importantly, Cangallo is strategically located close to the coast, at a low elevation, with access to nearby power and transport infrastructure, and without competing agricultural land use – a significant advantage for future development. Our exploration team is enthusiastic about the project’s growth potential, with mineralisation believed to extend at least a kilometre to the south, which would substantially increase the scale of the deposit. Significant effort is being put into securing regulatory approvals to enable efficient ongoing drilling programs, while our other nearby projects in the area – Lantana and Playa Kali – are also being advanced towards drill readiness. In Australia, our ongoing Strategic Alliance Agreement (SAA) with a subsidiary of South32 has continued to deliver an active and diverse exploration program throughout the year. Notably, at the Morrisey Magnetite Project in Western Australia, Davis Tube Recovery test-work results announced in September 2024 confirmed the potential to produce a premium iron product (>70% Fe). A 5,000m drilling program was completed in July 2025, to test six additional targets, four of which delivered significant mineralisation for which Davis Tube Recovery test results are pending. The Coober Pedy and Mt Davis Projects were added to the SAA in November and March respectively, while an 8,000m RC drilling program was completed at Balladonia during the year, with the results still being assessed. Each of these projects will be the subject of further reporting as exploration efforts continue to advance. With a strong pipeline of activity across both Peru and Australia, AusQuest is well positioned for a period of significant exploration progress and news-flow in the coming year. The Company remains well-funded to pursue this aggressive strategy, supported by the strength of our relationship with South32 and the professionalism of their team. In conclusion, I would like to thank our dedicated staff and consultants for their continued efforts throughout the year. We look forward to building further value for shareholders through ongoing exploration success in the year ahead. I also encourage all shareholders to register on our InvestorHub platform for regular updates and direct communication with the Company. Yours faithfully Greg Hancock Chair AusQuest Limited | 2 Directors’ Report The Directors of AusQuest Limited (“AQD” or the “Company”) herewith submit the financial report of the Company and the entities it controlled (“Group”) for the year ended 30 June 2025. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: Board of Directors The names of directors who held office during the year and up to the date of this report are as follows. Directors were in office for the entire period unless otherwise stated. Mr Greg Hancock Mr Graeme Drew Mr Chris Ellis Non-Executive Chairman Managing Director Non-Executive Director Company Secretary Henko Vos Principal Activities The principal activity of the Group is mineral exploration throughout Australia and Peru. Review of Operations A review of the Group’s exploration projects and activities during the year is discussed in the Review of Operations included in this Annual Report. The loss of the Group after income tax for the year was $1,610,656 (2024: profit after tax of $256,727). Changes in state of affairs During the year ended 30 June 2025 there was no significant change in the state of affairs of the Group other than as referred to in the financial statements or notes thereto. Events Occurring after the Reporting Date There has been no matter or circumstance that has arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs in future financial years. Future developments Disclosure of information regarding the likely developments in the operations of the Group in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the Group. Accordingly, this information has not been disclosed in this report. Safety and environmental regulations The Group is aware of its occupational health and safety and environmental obligations with regard to its exploration activities and ensures that it complies with all regulations when carrying out exploration work. Dividends No dividends were paid or declared since the start of the financial year. No recommendation for the payment of dividends has been made. Proceedings on behalf of the Company No persons have applied for leave pursuant to s.237 of the Corporation Act 2001 to bring, or intervene in, proceedings on behalf of AusQuest Limited. AusQuest Limited | 3 Directors’ Report Information about directors and senior management The names and particulars of the directors of the Company during or since the end of the financial year and up to the date of this report are noted below. Except where indicated, directors have held office during and since the end of the financial year: Greg Hancock BA Econs., BEd Hons. Non-Executive Director and Chairman Greg has had over 25 years’ experience in capital markets practicing in the area of corporate finance. He maintains close links with the stockbroking and investment banking community on behalf of the Company. Directorships held in listed companies over the last three years are as follows: • Group 6 Metals Ltd – Feb 2019 – 4 December 2024 • BMG Resources Ltd – Feb 2017 – current • Golden State Mining Limited – Nov 2018 – current • Cobra Resources PLC – Nov 2018 – current • Triangle Energy Limited – Feb 2022 - current Graeme Drew B.Sc.Hons., FAIMM, MASEG Managing Director Graeme has over 40 years’ experience in the exploration industry in Australia and overseas. Prior to co-founding AusQuest Limited he was an Exploration Manager for CRAE and Rio Tinto Exploration Pty Ltd in Western Australia (9 years) and Eastern Australia (4 years). He has wide experience in the search for, and evaluation of, most base and precious metals (notably nickel, copper, gold, uranium, zinc and diamonds). Graeme has developed a passion for the ‘big picture’ and ‘big project’ generation which he strongly believes are the building blocks for successful exploration outcomes. Graeme has held no other directorships in listed companies over the last three years. Christopher Ellis B.Sc.Hons. Non-Executive Director Chris is an experienced mining executive with over 30 years’ experience in geology, exploration, mine planning and project development in Australia and overseas. He was a founding member and Executive Director of Excel Coal Limited which was the subject of a take-over bid by the US coal giant Peabody Energy Inc, and has held senior positions within Shell Coal’s Exploration, BP Coal (London and USA), Agipcoal Australia and the Stratford Joint Venture. Directorships held in listed companies over the last three years are as follows: • Group 6 Metals Ltd - 8 November 2012 - current Henko Vos Company secretary Mr Vos is a member of the Governance Institute of Australia, the Australian Institute of Company Directors and Chartered Accountants Australia & New Zealand with more than 25 years’ experience working within public practice. He holds similar secretarial roles in various other listed public companies in both industrial and resource sectors. He is a Director of Nexia Perth, a mid-tier corporate advisory and accounting practice. AusQuest Limited | 4 Directors’ Report Directors’ meetings The following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the financial year and the number of meetings attended by each director (while they were a director or committee member). During the financial year 5 board meetings, 2 audit committee meetings and 1 nomination and remuneration committee meeting were held. Board of Directors Directors Greg Hancock Graeme Drew Christopher Ellis Eligible to attend 5 5 5 Attended 5 5 4 Nomination and Remuneration committee Eligible to Attended attend 1 1 1 1 1 1 Audit committee Eligible to attend 2 2 2 Attended 2 2 1 Directors’ shareholdings The following table sets out each director’s relevant interest in shares, debentures, and rights or options in shares or debentures of the Company or a related body corporate as at the date of this report. Directors Greg Hancock Graeme Drew Chris Ellis Fully paid ordinary shares Number Share options (Unlisted) Number Performance Rights Number 4,586,415 29,274,995 277,244,366 5,000,000 13,864,681 38,681,704 12,000,000 22,000,000 - AusQuest Limited | 5 Directors’ Report Review Of Operations HIGHLIGHTS – YEAR IN REVIEW Peru – Copper-Gold  New large-scale porphyry copper-gold discovery confirmed by drilling at the Cangallo Project in southern Peru, located close to infrastructure and within 10km of the coast.  Mineralisation occurs from surface and is open in all directions, including at depth, demonstrating the potential for both a shallow copper oxide resource and supergene enriched zone, as well as deeper sulphide mineralisation.  All copper intersections occur within the volcanic host rocks or narrow tonalite (porphyry) dykes which contain higher copper grades, highlighting the potential for higher copper grades within the source porphyry.  Preliminary metallurgical test-work on selected drill samples suggests that the copper oxides could be amenable to heap leaching.  Additional Reverse Circulation (RC) and initial diamond drilling planned in H1 FY26 to extend the copper mineralisation defined to date and provide geological controls for vectoring to the source porphyry.  Drill permits for the Lantana and Playa Kali Copper Projects, located along strike from Cangallo, have been advanced and are expected in Q1 FY26. Australia – Copper, Gold, Zinc, Nickel  At Balladonia, a major RC drilling program (comprising 42 holes for a total of 8,006m) was completed late in the year to test multiple magnetic, gravity and electromagnetic (EM) targets. Prospective host rocks for base metal mineralisation were intersected in the drilling and assessment of the multi-element geochemical data is ongoing.  At Morrisey, a premium grade iron product (>70% Fe) with very low impurities was confirmed at the Waterfall Prospect following Davis Tube Recovery (DTR) test work. Excellent magnetite recoveries were achieved from a coarse grind.  RC drilling (~5,000m) of other magnetic/gravity targets within the Morrisey Project identified additional magnetite prospects that could add to the potential scale of the mineralisation of the project. Further assays and Davis Tube Recovery (DTR) test results are awaited.  The Coober Pedy and Mt Davis Base Metal Projects were accepted as new ‘Exploration Opportunities’ under the Strategic Alliance Agreement (SAA) with a wholly owned subsidiary of South32 (South32).  Potential drill targets were identified at both the Coober Pedy (SA) and Mt Davis (WA) Projects, with clearances underway to enable drilling to be completed during FY26. Corporate  During the year, a Non-Renounceable Rights Offer and Shortfall Placement raised a total of ~$2.4 million (before costs) to provide funds for exploration drilling at the Company’s 100%-owned Cangallo Project in Peru, as well as ongoing work over new exploration opportunities in Australia.  In March 2025, a Placement to institutional, sophisticated and professional investors successfully raised a further $7.5 million (before costs) to accelerate drilling at Cangallo, following the discovery of a copper-gold porphyry by the maiden drilling program. AusQuest Limited | 6 Directors’ Report Figure 1: AusQuest project locations in Australia and Peru. REVIEW OF PROJECTS PERU: COPPER-GOLD AusQuest controls ~310km² of exploration title within southern Peru – one of the world’s most prominent destinations for international copper exploration (Figure 2). Detailed aeromagnetic data acquired by the Company has been used to identify prospective areas for porphyry copper and/or IOCG deposits that are likely to occur beneath the extensive cover in the south of the country. During the year, the Company made the decision to drill test its 100%-owned copper prospects in southern Peru with the aim of enhancing their value ahead of any further discussions with parties interested in acquiring an equity interest in one or more of the Company’s Projects. Drill permitting was completed at the Cangallo Prospect with the maiden drill program providing the Company with its first copper discovery in Peru, and significantly enhancing the prospectivity of all the adjoining prospects from Playa Kali to Lantana, spanning a total strike length of ~60km. AusQuest Limited | 7 Directors’ Report Figure 2: Peru – project locations in relation to major copper mines and new developments in southern Peru. Cangallo Copper Project (AQD 100%) The Cangallo Project covers an area of ~40km² and is located ~10km from the coast, close to infrastructure. It occurs within a major E-W structural corridor that is thought to control the emplacement of potential porphyry copper systems in the region. During the year, the Company’s maiden drilling program at Cangallo identified a new, large-scale porphyry copper system containing broad zones of highly anomalous copper and gold – both as oxides (malachite, chrysocolla and brochantite) and as sulphide (mainly chalcopyrite) mineralisation. The results confirmed the presence of extensive copper mineralisation (with gold credits) throughout the area being tested, and highlighted the potential to delineate a near-surface copper oxide resource as well as locating deeper sulphide mineralisation. A total of 21 RC drill-holes for ~8,100m of drilling have now been completed in two stages of drilling with holes spaced at ~300m to 400m apart. Drilling to date has only tested a very small fraction of the prospective target area and further RC and diamond drilling is planned in H1 FY2026. A selection of significant copper intersections is provided below, demonstrating the continuity and scale of the mineralisation intersected to date. Drill-hole locations are provided in Figure 3. The copper occurs at shallow depths, commencing from near-surface and continuing to the ‘end-of-hole’ in most drillholes. Copper dominantly occurs in the host volcanics, which are variably veined and fractured, and also within thin tonalite (porphyry) dykes, that are thought to emanate from the source porphyry, providing an insight into the higher copper grades that could be expected within the centre of the porphyry system. AusQuest Limited | 8 Directors’ Report Significant copper intersections1: • 154 metres @ 0.37% Cu, 0.06 ppm Au from 36m (CANRC003) • 304 metres @ 0.30% Cu, 0.06ppm Au from 34m (CANRC008) • 324 metres @ 0.30% Cu, 0.07ppm Au from 36m (CANRC012) • 234 metres @ 0.30% Cu, 0.06ppm Au from 110m (CANRC013) • 330 metres @ 0.30% Cu, 0.06ppm Au from 32m (CANRC014) • 188 metres @ 0.28% Cu, 0.07ppm Au from 214m (CANRC002). • 121 metres @ 0.26% Cu, 0.04ppm Au from 256m (CANRC007) • 348 metres @ 0.26% Cu, 0.06 ppm Au from 6m (CANRC001) • 136 metres @ 0.25% Cu, 0.06ppm Au from 22m (CANRC007) • 136 metres @ 0.24% Cu, 0.06ppm Au from 230m (CANRC003) • 130 metres @ 0.23% Cu, 0.03ppm Au from 18m (CANRC009) • 126 metres @ 0.23% Cu, 0.03ppm Au from 226m (CANRC011) Figure 3: Cangallo Prospect showing drill-hole locations and assay results1. Several phases of mineralised porphyry intrusion have been recognised both at surface and by drilling, with the stronger copper values occurring within the tonalite porphyry dykes that intrude the host volcanics – suggesting there is potential for a large mineralised intrusive stock nearby. 1. Refer ASX announcements 23 January 2025 (Significant Porphyry Discovery at Cangallo), 6 February 2025 (Cangallo Discovery Confirmed), 21 July 2025 (Cangallo Drilling Progress Report) and 28 August 2025 (Cangallo Porphyry Copper Discovery continues to grow). The depth of oxidation is highly variable, extending to more than 200 metres in a number of drill-holes, providing strong evidence that supergene processes have been active in the area – with higher copper grades present as oxide minerals near-surface. The possibility of an enriched supergene blanket with high copper grades occurring beneath the cover will be tested by further drilling planned in H1 FY2026. AusQuest Limited | 9 Directors’ Report Initial geological mapping and rock-chip sampling has identified a partially exposed copper (+/- gold) porphyry system within a large-scale (5km x 2km) caldera-like structure that contains extensive colluvial and younger sediment cover. Recent mapping and sampling has extended the mineralisation at least 1,200m to the south, where highly anomalous copper (>0.5% Cu) and gold (>1.0ppm Au) values were found to occur within dykes intruding the volcanics, suggesting further porphyry mineralisation nearby. This will be tested by drilling in H1 FY26 (Figure 4). Figure 4: Cangallo Porphyry Copper-Gold Prospect showing surface copper assays in relation to the Stage 1 and 2 drill programs and the planned Stage 3 drill-pads2 2. Refer ASX announcement 28 August 2025 (Cangallo Porphyry Copper Discovery continues to grow). Preliminary metallurgical test work on selected RC samples from the maiden drill program was completed to provide an early indication of the leachability of copper from a range of depths and mineralogy types. While the results are not conclusive, at least seven of the 10 samples reported “generally good but variable oxide leach performance”. The distribution of mineral species that were subject to the metallurgical test work is not known at this time. AusQuest Limited | 10 Directors’ Report Cerro de Fierro Copper Project (AQD 100%) The Cerro de Fierro Project is located in southern Peru ~150km SE of the Mina Justa copper deposit (~475Mt @ 0.68% Cu), which is being developed by the Marcobre Joint Venture. Exploration within the project area has to date located widespread copper anomalism at surface and anomalous copper grades within reconnaissance drill-holes, suggesting the potential for both iron-oxide copper-gold (IOCG) and/or porphyry copper mineralisation in the area. Alteration and pathfinder geochemistry from surface and existing drill-hole data supports the potential of the area to host multiple mineralised systems. During the year, environmental studies and community consultations were completed over the Lantana Porphyry Copper Prospect as part of the drill permitting process. Final drill permits for eight of the 20 drill pads were received, with the remainder expected shortly. The drill pads have been sighted to test the Lantana porphyry copper prospect, which is considered to be a highpriority copper target due to its scale (~2,000m x 800m) and the widespread occurrence of highly anomalous copper, molybdenum and bismuth values obtained from surface sampling programs completed in 2023 (Figure 5). Figure 5: Lantana Porphyry Prospect showing anomalous Cu, Mo and Bi values and planned drill sites3. 3. Refer ASX announcements Quarterly Reports lodged on 28 April 2023, 31 July 2023 and 30 October 2023. Playa Kali Copper-Gold Project (AQD 100%) The Playa Kali Project is located ~120km SE of the Mina Justa copper deposit and covers an area of ~40km² along the coastline in southern Peru. The project was acquired after manto-style iron and copper mineralisation was located in outcrops at numerous locations along the coast east of Chala. Geological mapping, rock-chip sampling and ground magnetic surveys have defined manto-style copper-gold targets that are ready for drilling. Numerous iron-rich outcrops with visual evidence of copper mineralisation have been mapped, providing strong evidence for extensive manto development in the area (Figure 6). Environmental studies and community consultations were completed during the year as part of the drill-permitting process, in order to approve 20 drill pads to enable the Playa Kali manto copper prospects to be tested by drilling. Permits are expected to be approved in H1 FY2026. AusQuest Limited | 11 Directors’ Report Figure 6: Playa Kali Prospect showing magnetic modelling, priority targets and planned drill pads4. 4. Refer ASX announcements Quarterly Reports lodged on 31 July 2023 and 30 October 2023. Other Opportunities (Peru) The Company continues to hold title over the Parcoy and Chololo Projects, although exploration work during the year was limited while exploration activities continue to be prioritised at other projects. AUSTRALIA BASE METALS: COPPER, GOLD, ZINC and NICKEL AusQuest controls approximately 4,100km² of exploration title within Australia – 3,700km² within Western Australia (WA), 250km² within Queensland (QLD) and 165km² in South Australia (SA). Five of the six projects (Balladonia, Morrisey, Jubilee, Coober Pedy and Mt Davis) are currently subject to the Strategic Alliance Agreement (SAA), while the Hamilton Project in NW Queensland is 100%-owned by AusQuest (Figure 1). Balladonia Base Metal Project (AQD 100% subject to SAA) The Balladonia Project covers an area of 1,370km² and is located ~50km south of the Nova-Bollinger nickel-copper deposit within the Fraser Range region of WA. Exploration results to date have indicated the potential for multiple mineralisation styles with many potential targets identified, including areas that are prospective for nickel and copper mineralisation similar to the Nova deposit as well as iron-oxide copper-gold (IOCG) and Broken Hill Type (BHT) deposits similar to those found in the Eastern Succession (NW Queensland) and in NSW, and rare earth elements (REE) associated with carbonatite intrusions. During the year, an extensive RC drill program (42 holes for a total of 8,006m) was completed to test a range of priority magnetic, gravity and electromagnetic (EM) targets for base and precious metals within host rocks considered to be similar to those found in NW Queensland and in the Broken Hill District, where numerous base metal mines have been discovered. AusQuest Limited | 12 Directors’ Report Figure 7: Detailed magnetic (image) showing the location of the RC drill-holes. Drilling was semi-regional in nature (600m x 200m) providing broad coverage over the Tea Tree Prospect, where Broken Hill type (BHT) stratigraphy and alteration was identified by earlier diamond drilling, as well as testing EM conductors identified within the adjoining sequences (Figure 7). Numerous banded iron formation and garnet quartzite intervals were intersected by this drill program, supporting the concept of an extensive belt of prospective host rocks for base metal mineralisation. Final assay data were received late in the year and are currently being assessed and compiled with other datasets in order to identify potential target areas for further exploration, including drilling. EM targets were found to be caused by graphitic units at three of the four targets drilled. The fourth and deepest target (Anomaly K) was not explained by drilling. Down-hole EM (DHEM) confirmed that the target had not been intersected and is now known to occur below the trace of the drill-hole. Deeper drilling is being considered. A submission to commence drilling and geophysical surveys inside the Dundas Nature Reserve was submitted to the Department of Biodiversity Conservation and Attractions. AusQuest Limited | 13 Directors’ Report Morrisey Magnetite Project (100% AQD subject to SAA) The Morrisey Project, which covers an area of ~1,100km², is located within the Mid-West Mining District ~170km from the Port of Geraldton in WA. Reverse Circulation (RC) drilling completed at the Waterfall Prospect in 2024 confirmed that a premium iron product grading >70% Fe with excellent magnetite recoveries (~34%) could be achieved at this prospect (Figure 8). Figure 8: Waterfall Prospect: Gravity image showing location of drill holes and DTR product grades5. 5. Refer ASX announcements 18 September 2024 (DTR Produces Premium Grade Product (Fe) at Morrisey) and 10 June 2025 (RC Drilling commences at Morrisey). During the year, a further six prospects were tested by RC drilling (25 holes for 4,990m) to help determine the overall magnetite potential of the area and future commercial pathways for the Project. Significant intersections of banded iron formation with strong magnetic susceptibilities (>200 x 10-3 SI Units), indicative of coarse magnetite mineralisation, were obtained at four of the prospects, providing encouragement for the potential to define multiple magnetite resources in the area (Figures 9 & 10). Drilling was reconnaissance in nature, with three to five holes drilled per prospect. All magnetite intervals were sent for Davis Tube Recovery (DTR) test work, to determine their potential for upgrading to a premium iron product. The results of the DTR test work are expected in Q1 FY2026. AusQuest Limited | 14 Directors’ Report Figure 9: Murchison and Murchison South Prospects showing drill-holes and magnetic/gravity anomalies6. Figure 10: Sandfly and Waterfall Prospects showing drill-holes and magnetic/gravity anomalies6. 6. Refer ASX announcements 29 July 2025 (RC Drilling locates more magnetite at Morrisey). Coober Pedy Copper-Gold Project (100% AQD subject to SAA) The Coober Pedy Project, which covers an area of ~170km², is located ~100km NW of the Prominent Hill copper-gold deposit in SA. The project sits on the north-eastern margin of the Gawler Craton in a similar geological setting to known IOCG deposits in the region. During the year, the Coober Pedy Proj