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[Ferro-Alloys.com]  Element 25 Quarterly Highlights-Butcherbird Manganese Ore Operations – Western Australia

Element 25 is progressing works on its Butcherbird Expansion Project (BBX) in Western Australia, which targeting manganese concentrate production of 1.1 million tonnes per annum (Mtpa)1.

The planned increased production will supply customers in the established ferroalloys (steel) market as well as securing long term feedstock for its proposed high purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA.

Discussions with preferred ore offtake partners continue, with completion expected in Q2 CY2026.

Element 25 expects to award BBX Construction Contract in Q2 CY2026, with applicants now shortlisted.

First main plant item, the logwasher, shipped on schedule and is in transit for delivery to site.

Procurement of other key items including DMS drum, cyclone cluster, apron feeders, screens, conveyors and thickener progressing in line with the project plan.

Mining services, haulage and site services contracts expected to be awarded in Q2 CY2026.

Element 25 is targeting BBX mechanical completion and commissioning in Q1 CY2027.

Corporate

•Extension of At-the-Market Subscription Agreement with Acuity Capital Investment Management Pty Ltd for up to AU$30 million standby equity over 36 months2.

•Completion of $18M equity raise to new shareholders to fund the BBX Project and for working capital purposes.

BUTCHERBIRD MANGANESE PROJECT, WA

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

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

The expanded processing operation at the Project will target 1.1Mtpa manganese concentrate production, based on an updated January 2025 Feasibility Study and an updated Ore Reserve of 101.4Mt at 10.4% Mn (10.54Mt contained manganese), supporting an 18+ year life of mine (LOM) at the planned rate. Butcherbird’s planned increased production will enable it to supply feedstock to its planned Louisiana based HPMSM) facility as well as traditional steel markets.

The Company progressed key components for the Butcherbird Expansion Project (BBX) during the quarter, underpinned by strong engagement with key stakeholders and contractors, Element 25 is implementing robust project management practices to ensure transparent communication, timely consultation, and alignment of stakeholder expectations throughout the project lifecycle. Collaborative partnerships with contractors are being fostered through a structured procurement process, with regular assessment of contractor proposals based on experience, capability, and value for money.

Element 25 is closely tracking project milestones and deliverables to maintain schedule integrity and mitigate potential risks. This integrated approach supports effective issue resolution, informed decision-making, and the successful achievement of project expansion objectives. The Company remains committed to best-practice engagement and the delivery of long-term value for all stakeholders involved in the BBX Project.

Element 25 updated progress on several key project components in February6, and will continue to share updates on BBX as developments are finalised.

PROJECT FINANCE

As announced in June 2025, the Northern Australia Infrastructure Facility (NAIF) approved a senior debt facility of up to AU$50 million, including AU$42.5 million in senior debt and a AU$7.5 million cost overrun facility, to support Element 25’s Butcherbird Manganese Expansion Project in Western Australia’s Pilbara region.

Element 25 has completed a comprehensive review of potential counterparties to secure the remaining funding required for BBX and has engaged the services of leading consultancy firm SLR to assist in finalising the due diligence process with NAIF and potential subordinated funders.

SLR has been working closely with Element 25 to substantially complete the final stage of due diligence activities, ensuring that all financial, technical, and regulatory requirements are thoroughly reviewed in accordance with financiers’ requirements.

Project Engineering (Altris)

Since its appointment as Lead Project Engineer in October 2025, Altris Engineering (Altris) and the Company have been working closely on several key project deliverables. The project is progressing positively, with the following key deliverable being completed in recent weeks:

•Project Execution Plan (PEP) has been finalised.

•30% process design review has been completed.

•Concrete and structural engineering detailed works are currently well progressed in accordance with the

project plan.

•With the completion of the technical requirements and specification documents, several Request for Quotations (RFQs) have been released to the market.

•Procurement is on schedule for key long lead items.

Construction Contract

Following the Construction Contract Expression of Interest (EOI) process, the Company has completed its review and shortlisted applicants.

The EOI formed part of Element 25’s ongoing activities to progress BBX toward construction, following completion of detailed engineering and continued advancement of project financing and procurement

activities previously disclosed to the market, with construction works covering three principal discipline areas: civil and earthworks; structural, mechanical and piping; and electrical and instrumentation.

The EOI identified suitably qualified construction contractors with the capability and capacity to deliver the BBX site construction works. Element 25’s preferred contracting strategy is the engagement of a single head contractor responsible for managing the integrated construction scope, with specialist subcontractors engaged as required.

The current BBX high-level schedule anticipates award of construction contract(s) in Q2 2026, mobilisation in Q3 2026, and currently forecasts mechanical completion and commissioning in Q1 CY2027.

Offtake

The Company has identified preferred offtake partners for the increased production from the BBX Project. Discussions continue, with commercial terms currently being finalised.

Mining Services Contract

Following a comprehensive and competitive tender process, Element 25 has completed an extensive review of the short-listed candidates for the Mining Services contract. This process involved a thorough evaluation of each submission, with particular attention paid to the candidates’ experience, operational capacity, and alignment with the broader objectives of the Project.

Having selected a preferred contractor based on these criteria, Element 25 will now enter negotiations to finalise commercial arrangements in support of BBX.

The Company anticipates that the commercial contract for Mining Services will be executed by the end of Q2 2026, marking a key milestone for the Project

PROCUREMENT

Crushing and Mineral Sizer Solutions (MMD)

Altris has worked closely with MMD to finalise the design of the MMD Plant and supporting structures. Designs for the Primary and Secondary Sizers are now complete, with fabrication of key components such as breaker shafts and gearboxes underway.

MMD is currently focused on procuring materials to finish the sizer mainframe and case, and the MMD sizers are scheduled to ship to Australia in mid-2026, in line with the project’s overall timeline.

Logwasher (KISA)

The Company has been working closely with KISA to finalise the build and assembly of the logwasher, a key component of the Project’s processing circuit. Over recent months, this collaboration has focused on ensuring the logwasher meets all technical specifications and site-specific operational requirements.

KISA has now completed final quality assurance inspections and functional testing, confirming the logwasher is ready for shipment. The unit has been prepared for transport and has departed KISA’s facility en-route to Australia.

Upon arrival at the Butcherbird site, the logwasher will undergo post-shipment inspections before being installed in accordance with the project plan and requirements. This schedule aligns with the broader BBX Project procurement and construction program and supports the planned mobilisation and mechanical completion milestones.

Main Plant Items

Following the successful completion of all technical requirements for the remaining main plant items, Element 25 has proceeded to release and shortlist the outstanding procurement packages to the market. These packages cover a range of essential equipment and components necessary for the ongoing development and operation of BBX. The current procurement scope includes:

•Apron Feeders

•Screens

•Conveyors

•DMS Drum

•Thickener

•Cyclone Cluster.

Responses from the market have been encouraging, with a number of competitive proposals received from suppliers. The Company is undertaking a thorough evaluation and negotiation process with shortlisted vendors to ensure the selected solutions deliver technical excellence, reliability, and value for money.

Core Operating Systems

Having identified and selected Microsoft Dynamics 365 as the Company's preferred Enterprise and Resource Planning (ERP) system, Element 25 has awarded contracts to Ray Business Technologies Pty Ltd and Barter Technologies Pty Ltd. The solution design and system architecture has been completed, with the new finance and operations environment being implemented, and development works currently underway. Phase 1 of the ERP release is scheduled for Q2 CY2026, with a complete transition to the new ERP scheduled for later this year prior to transition to operations.

The company is also engaging several key suppliers of other IT systems and applications to support the implementation of a pit to port data model of BBX operations. Both Ray Business Technologies and Barter Technologies will also work with the Company to implement Microsoft Fabric, Power BI and the latest AI technologies to enable and present a complete overview of BBX operations.

Site Services Provider

Element 25 has undertaken an extensive procurement review for site services for the Butcherbird Expansion Project, taking a long-term perspective that extends well into the operations phase. Element 25 has shortlisted preferred service providers, each assessed for their ability to deliver ongoing value and reliability.

The Company will now commence a more intensive evaluation of these candidates and anticipates entering into an agreement with the preferred contractor in Q2 CY2026.

PROJECT SCHEDULE UPDATE

The BBX Project schedule is dynamically maintained, with regular updates to reflect evolving contract arrangements, supplier engagement, completed tasks, and integration with the overarching project plan. This approach ensures that every stage of activity, whether forecasted, planned, in progress, or delivered, is carefully monitored and adjusted to keep the project advancing as intended.

Underpinned by a comprehensive work breakdown structure (WBS), the project management process identifies and manages the interdependencies between various tasks. The project team remains focused on upholding scheduled milestones and budget objectives, striving for efficient and effective delivery throughout the project's lifecycle.

HPMSM DEVELOPMENT

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 HPMSM, a critical raw material for the manufacture of lithium-ion batteries. The proprietary flowsheet reduces energy consumption, virtually eliminates waste and delivers the lowest reported carbon intensity HPMSM globally.

• [Editor:tianyawei]