Stock-Based Compensation

During the six months ended December 31, 2025, the Group did not grant any new milestone options to its

employees and 12,900,000 milestone options were forfeited.

As a result of the forfeitures during the prior period, there was a reversal of $1.0 million of previously recorded

expense during the six months ended December 31, 2025. The Company accelerated the recognition of the remaining

expense for milestone options during the fiscal year ended June 30, 2025 and the Group recognized $0.1 million as stock-

based compensation expense related to milestone options for the six months ended December 31, 2024.

Employee Restricted Stock Units

On August 6, 2024, the Group adopted the 2024 Incentive Award Plan (the “2024 Plan”). As of December 31, 2025,

the maximum number of shares of common stock that may be issued under the 2024 Plan was 1,600,000 shares.

The 2024 Plan, allows, among other things, for the grant of Restricted Stock Units (“RSUs”). On August 6, 2024, the

Group issued RSUs to certain eligible service providers, employees and executive officers (the “participants”) to provide

them an opportunity to participate in the growth and profits of the Group and to attract, motivate, and retain their services

to promote the long-term success of the Group.

On August 6, 2024, the Company granted 47,400 Restricted Stock Units (“Retention Awards”) to its employees in

Australia and U.S. The Retention Awards granted to Australian employees entitle them to CDIs representing 39,250 shares

of common stock (each CDI represents 1/200th of a share of common stock). Similarly, the Retention Awards granted to

U.S. employees entitle them to 8,150 shares of common stock. The vesting conditions state that all Retention Awards will

vest in full on December 31, 2025, provided the employees remain in service as of the vesting date. The fair value at grant

date of the Retention Awards was $21.73 per common stock and $0.109 per CDI.

On August 6, 2024, the Company also granted 795,000 Restricted Stock Units (“IPO Awards”) to its employees in

Australia and U.S. The IPO Awards granted to Australian employees entitle them to CDIs representing 620,000 shares of

common stock. Similarly, the IPO Awards granted to U.S. employees entitle them to 175,000 shares of common stock. The

IPO Awards will vest in following three tranches:

•Tranche 1 – 397,500 IPO Awards granted to Australian and U.S. employees will vest in full on July 3, 2027,

provided the employee remains in service as of the vesting date. The fair value at grant date of Tranche 1 was

$21.73 per common stock and $0.109 per CDI.

•Tranche 2 – 98,750 IPO Awards granted to Australian and U.S. employees will vest subject to the completion

of the Group’s Phase 1 Development Plan to establish first production of the Shenandoah South Pilot Project

and establish first production of 40 TJ/d measured by completion of the milestones (“Vesting Trigger

Conditions”). Full vesting of Tranche 2 may occur at any time between July 3, 2027, and July 3, 2029, should

the Vesting Trigger Conditions be satisfied, or unless otherwise determined by the Board of the Company. The

fair value at grant date of Tranche 2 was $21.73 per common stock and $0.109 per CDI.

•Tranche 3 – 298,750 IPO Awards granted to Australian and U.S. employees will vest subject to the Company’s

Total Shareholder Return (“TSR”) reaching or exceeding the 75th percentile of the Benchmark Index TSR

between July 3, 2027, and July 3, 2029. TSR will be measured against the S&P SmallCap 600 Energy (or any

other market index determined by the Board in their sole discretion) (“Benchmark Index”) over the same

performance measurement period. The fair value at grant date of Tranche 3 was $19.64 per common stock and

$0.098 per CDI.

The grant date fair value of the Tranche 3 RSUs were determined through the use of the Monte Carlo simulation

method. This method requires the use of subjective assumptions such as the price and the expected volatility of the

Company’s common stock and its self-determined peer group companies’ stock, risk free rate of return, and cross-

correlations between the Company and its peer group companies. Expected volatilities for the Company and each peer

company utilized in the model are estimated using a historical period consistent with the awards’ remaining performance

period as of the grant date. The risk-free interest rate is based on the yield on U.S. Treasury Constant Maturity for a term

consistent with the remaining performance period. The valuation model assumes dividends, if any, are immediately

reinvested.

The following table summarizes the assumptions used to calculate the grant date fair value of the Tranche 3 RSUs

granted on August 6, 2024:


Expected term for performance period (in years)	4.9
Expected volatility	74.6%
Risk-free interest rate	3.7%

The Retention Awards and IPO Awards entitle the participants to receive the equivalent value (in cash or shares of

common stock/CDIs) of dividends paid on shares of common stock and CDIs, respectively.

The RSUs are not transferable. There are no participation rights or entitlements inherent in the RSUs, and the

participants will not be entitled to participate in new issues of capital offered to stockholders or holders of CDIs.

If the Company makes a bonus issue of common stock, CDIs, or other securities to existing stockholders or holders

of CDIs (other than an issue in lieu or in satisfaction of dividends or by way of dividend reinvestment), the number of

shares of common stock or CDIs that must be issued on the exercise of a Retention Award or IPO Award, respectively, will

be increased by the number of shares of common stock or CDIs that the participant would have received if the participant

had exercised the RSUs before the record date for the bonus issue.

A summary of the Group's employee RSUs activity for the six months ended December 31, 2025 is as follows (in

numbers and dollars):


	Balance at July 1, 2025	Granted	Vested	Forfeited	Balance at December 31, 2025
IPO Awards:
Tranche 1	395,000	—	(50,000)	(55,000)	290,000
Tranche 2	97,500	—	—	(2,500)	95,000
Tranche 3	297,500	—	—	(102,500)	195,000
Retention Awards	46,650	25,000	(46,150)	(500)	25,000
Total RSUs (1)	836,650	25,000	(96,150)	(160,500)	605,000
Weighted average grant date fair value	$20.99	$19.94	$21.73	$20.40	$20.98

(1) As of December 31, 2025, 605,000 RSU's are expected to vest.

The following table presents the stock-based compensation costs recognized related to our RSUs for the three months

ended December 31, 2025 (in thousands, expect remaining contractual term):


	Three months ended December 31, 2025
	Stock-Based Compensation Cost Incurred	Remaining costs to recognize, if all vesting conditions are met	Weighted average remaining contractual term (in years)
IPO Awards (Tranche 1)	$552	$3,246	1.50
IPO Awards (Tranche 2)	181	1,063	1.50
IPO Awards (Tranche 3)	335	1,973	1.50
Retention Awards - granted FY25	178	—	1.50
Retention Awards - granted FY26	42	414	2.50
Less: Forfeitures	—	—
Total cost incurred	$1,288	$6,696

Total stock compensation costs capitalized	$703
Total stock compensation costs expensed	585
Total cost incurred	$1,288


	Six months ended December 31, 2025
	Stock-Based Compensation Cost Incurred	Remaining costs to recognize, if all vesting conditions are met	Weighted average remaining contractual term (in years)
IPO Awards (Tranche 1)	$1,112	$3,246	1.50
IPO Awards (Tranche 2)	366	1,063	1.50
IPO Awards (Tranche 3)	675	1,973	1.50
Retention Awards - granted FY25	377	—	1.50
Retention Awards - granted FY26	85	414	2.50
Less: Forfeitures	(1,354)	—
Total cost incurred	$1,260	$6,696

Total stock compensation costs capitalized	$1,281
Total stock compensation costs expensed	(22)
Total cost incurred	$1,260

2025 Director Restricted Stock Units

On January 1, 2025, the Company granted 27,281 Director RSUs for which each awarded RSU represented an

unfunded, unsecured right to receive a share of the Company’s common stock. These awards have a cliff-vesting period of

one year. The fair value on grant date of the RSUs was $20.99 per unit.

Additionally on May 16, 2025, in conjunction with the TB1 A&R JVSA, the Company granted 35,014 Director

RSUs under the 2024 plan for which each awarded RSU represented an unfunded, unsecured right to receive a share of the

Company’s common stock. The awards vesting date is the earlier of the one year anniversary of the grant date and the date

of the next annual shareholders’ meeting occurring after the grant date, subject to continued service. The Company used a

vesting date of the next shareholders meeting subsequent to the grant date, which took place in December 2025. The fair

value on the grant date of these RSUs was $19.99 per unit.

On December 4, 2025, the Company granted 25,271 fully vested Director RSUs under the 2024 plan to Mr. Richard

Stoneburner, one of the directors (then Interim “CEO”) for which each awarded RSU represented a right to receive a share

of the Company’s common stock. For the three months and six months ended December 31, 2025, the Company

recognized $0.7 million, respectively, in stock-based compensation expense related to these awards.

As of December 31, 2025 a total of 37,323 RSUs had vested in relation to RSUs issued in May of 2025 and

December of 2024. For the three months and six months ended December 31, 2025, the Company recognized $0.3 million