[Ferro-Alloys.com] Element 25 September 2025 Quarterly Report

QUARTERLY HIGHLIGHTS

Butcherbird Manganese Ore Operations – Western Australia

•Element 25 completes AU$10 million Share Placement to fund it’s the Butcherbird Expansion Project (BBX) in Western Australia and for working capital.

•Element 25 initiates detailed engineering design for the Butcherbird Expansion Project (BBX) appointing Perth-based Altris Engineering (Altris) as lead engineering consultant.

•Butcherbird is a world-class manganese resource with an Ore Reserve of 101Mt at 10.4% Mn for 10.5 million tonnes of contained manganese.

•BBX is designed to increase Butcherbird’s production capacity to 1.1 million tonnes per annum with January 2025 Feasibility Study update estimating a capital cost of AU$64.8 million with a pre-tax Net Present Value (NPV) of AU$561 million and 96% pre-tax Internal Rate of Return (IRR) .

•Increased production capacity via BBX will support Element 25’s planned high-purity manganese sulphate monohydrate (HPMSM) production facility in Louisiana, USA.

•Element 25 secured AU$50 million senior debt facility from Northern Australia Infrastructure Facility (NAIF)

•BBX fully approved under WA Regulatory Framework including WA Department of Water (DWER)5 and Environmental Regulation and WA Department of Energy, Mines, Industry Regulation and Safety (DEMIRS).

Battery Grade High Purity Manganese (HPMSM)

•Element 25 is working to finalise project financing solution for its planned Louisiana HPMSM refinery.

•Current financing comprises US$166 million in grant funding from the US Department of Energy, US$85 million in senior debt from General Motors LLC and US$30 million from Stellantis N.V. as equity and offtake prepayment.

BUTCHERBIRD MANGANESE PROJECT, WA

Project Finance

During the quarter, Element 25 completed an AU$10 million share placement8 to fund expansion of its Butcherbird Manganese Project in Western Australia.

The Placement followed the AU$50 million senior debt facility secured from Northern Australia Infrastructure Facility (NAIF) for BBX, announced in June 2025.

Element 25 plans to expand Butcherbird’s production capacity to 1.1 million tonnes per annum (Mtpa) of manganese oxide concentrate. Butcherbird’s expansion will enable it to supply manganese concentrate feedstock for Element 25’s planned battery grade, high purity manganese sulphate monohydrate (HPMSM) processing facility which it plans to build in Louisiana, USA, as well as securing concentrate sales to other customers.

Under the Placement, Element 25 issued 36,323,146 shares (13,461,906 under ASX Listing Rule 7.1 and 22,861,240 under ASX Listing Rule 7.1A) at a price of AU$0.28 per share, representing a 13.4% discount to the 10-day volume weighted average price (VWAP) of AU$0.323/share and a 16.4% discount to Element 25’s previous close price of AU$0.335/share.

The Placement settled on 19 September. Petra Capital was Sole Lead Manager and Sole Bookrunner to the Offer.

A Feasibility Study for BBX updated in January 2025 estimated a capital cost of AU$64.8 million with a pre-tax Net Present Value (NPV) of AU$561 million with a 96% pre-tax Internal Rate of Return (IRR), generating an average of AU$70.5 million per year cashflow over a mine life of more than 18 years.

Engineering Design

In October, Element 25 announced the appointment of Perth-based Altris Engineering to lead BBX, undertaking all detailed engineering design for the project.

About Altris Engineering

Altris is an engineering consultancy providing practical and innovative solutions to clients in the mineral processing sector. The team combines multi-disciplinary expertise with extensive experience, having previously delivered a range of recognised and technically challenging projects across the industry. Altris supports projects from early concept through to operation, with a focus on constructability, cost-effectiveness, and operability.

The company is committed to delivering efficient, high-quality outcomes that maximise value while maintaining strong technical standards and a client-focused approach. The Altris team has delivered multiple scoping, prefeasibility, and feasibility studies, and has led Engineering, Procurement and Construction (EPC) and Engineering, Procurement and Construction Management (EPCM) project execution for battery and critical minerals projects across multiple global jurisdictions.

With strong experience in project delivery, Altris is recognised for producing fit-for-purpose designs that minimise capital expenditure while maintaining high standards of operability and safety.

Altris and Element 25 will form an integrated project team which will lead the development of the detailed engineering design for the project as well as support services such as procurement, project management, and construction support.

Element 25 is actively engaged with multiple counterparties in relation to other key commercial contracts for BBX both in terms of construction and operations including offtake, construction, equipment procurement, mining, ore haulage, port, camp services and the like.

HPMSM REFINERY PROJECT – LOUISIANA, USA

The Company plans to produce HPMSM from manganese ore sourced from its Butcherbird Project, which will be shipped to the planned Louisiana site. Element 25 has developed an innovative, advanced processing flowsheet to convert Butcherbird manganese concentrate into high purity manganese sulphate monohydrate (HPMSM), a critical raw material for the manufacture of lithium-ion batteries. The proprietary Element 25 flowsheet reduces energy consumption, virtually eliminates waste and delivers the lowest reported carbon intensity HPMSM globally.

In January 2025, Element 25 announced formal awarding and signing of a Grant Agreement for US$166 million (AU$268 million) in grant funding from the DoE under the MESC Battery Materials Processing Grant Program. This will support construction of the proposed Louisiana refinery to bring domestic production of a key critical battery raw material to mainland USA. The MESC grant forms a key component of Element 25’s financing strategy, in addition to the US$115 million already committed by offtake partners GM and Stellantis, and its execution team will now work to finalise the project schedule, subject to grant finalisation.

HPMSM REFINERY PROJECT – TOKYO, JAPAN

In September 2024, Element 25 signed a non-binding Memorandum of Understanding with Nissan Chemical Corporation and NC Tokyo Bay Corporation to complete a pre-feasibility study into a battery grade HPMSM facility to be located at the existing NCTB site in Chiba prefecture, Japan. The potential for a HPMSM facility to be built using the unique Element 25 flowsheet supplied with Butcherbird manganese concentrate fits well with Element 25’s strategy of building multiple refineries to serve various global markets.

As announced in April 2025, the parties completed a high-level scoping study, which examined a range of factors, including permitting, logistics, reagent supply, labour, capital and operating costs. The Study confirmed the potential feasibility of the Facility and identified no fatal flaws, and the parties have agreed to proceed to a more detailed investigation.

Site investigation activities are ongoing and the parties have a targeted final investment decision date of June 2026.

• [Editor:tianyawei]