Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which revenues and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 2 to the consolidated financial statements.

The main risks the Company is exposed to through its financial instruments are credit risk, foreign currency risk, interest rate risk, and liquidity risk.

Credit risk represents the loss that would be recognized if the counterparties default on their contractual obligations resulting in financial loss to the Company. The Company has adopted the policy of only dealing with creditworthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults.

Cash at bank is held with high credit quality financial institutions.

The Group is exposed to movements in market interest rates on cash. The policy is to monitor the interest rate yield curve out to 120 days to ensure a balance is maintained between the liquidity of cash assets and the interest rate of return. The entire balance of cash for the Group of $102,476,578 (30 June 2025: $7,297,328) is subject to interest rate risk.

The balance of cash held on deposit against the offtake prepayment of $15,359,960 (30 June 2025: $15,470,178) is subject to interest rate risk. At 30 June 2026, if interest rates at that date had been 10 basis points higher with all other variables held constant, post-tax profit for the year would have been $14,959 (30 June 2025: $14,959) higher, arising mainly as a result of higher interest revenue from its cash balances at bank. If interest rates had been 10 basis points lower, with all other variables held constant, post-tax profit would have been $14,959 (30 June 2025: $14,959) lower.

The Company manages liquidity risk by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. Surplus funds are generally only invested in short term bank deposits.

Contractual maturities of financial liabilities

In accordance with the accounting policies disclosed in Note 2 of the consolidated financial statement, the Group measures and recognizes the following assets and liabilities at fair value on a recurring basis after initial recognition:

IFRS 13 Fair Value Measurement requires the disclosure of fair value information by level of the fair value hierarchy, which categorizes fair value measurements into one of three possible levels based on the lowest level input that is significant to the measurement can be categorized into as follows:

Set out below is an overview of financial assets and liabilities recorded in the consolidated financial statements held by the Group as at 30 June 2026:

Set out below is an overview of financial assets and liabilities recorded in the consolidated financial statements held by the Group as at 30 June 2025:

Information about the significant unobservable inputs used in the level 3 fair value measurement are set out in Note 21.

Reconciliation of fair value measurement of warrants liability (level 3):

Warrants liability

The fair value of the warrant liability is sensitive to changes in the key assumptions used in the valuation, particularly expected share price volatility. All other assumptions being equal, an increase in expected volatility would generally result in an increase in the fair value of the warrant liability, with a corresponding loss recognised in profit or loss. Conversely, a decrease in expected volatility would generally result in a decrease in the fair value of the warrant liability, with a corresponding gain recognised in profit or loss.

The valuation may also be sensitive to changes in other key inputs, including the Company’s share price, expected term and risk-free interest rate. Changes in these assumptions could result in a materially different fair value of the warrant liability.

Details of the valuation techniques and significant unobservable inputs used in measuring the warrant liability at fair value, including quantitative information about those inputs, are disclosed in Note 21.

The Group operates internationally and is exposed to foreign exchange risk arising from commercial transactions. The Group converted assets and liabilities into the functional currency where balances were denominated in a currency other than the US dollar.

At 30 June 2026, the Company had an Australian denominated funding arrangement with European Lithium Ltd (note 19). At 30 June 2026, if the Australian dollar had strengthened by 10% against the US Dollar with all other variables held constant, post-tax profit for the year would have been $515,557 (30 June 2025: $532,259) higher, arising mainly from foreign exchange losses/gains taken to the profit and loss account on translation. If the Australian dollar had weakened by 10% against the US Dollar with all other variables held constant, post-tax profit for the year would have been $630,125 (30 June 2025: $650,539) higher, arising mainly from foreign exchange losses/gains taken to the profit and loss account on translation.

At 30 June 2026, the Company incurred EURO denominated expenses in ECM Lithium AT GmbH. At 30 June 2026, if the EURO had strengthened by 10% against the US Dollar with all other variables held constant, post-tax profit for the year would have been $44,168 higher, arising mainly from foreign exchange losses/gain taken to the profit and loss account on profit and loss figures. If the EURO had weakened by 10% against the US Dollar with all other variables held constant, post-tax for the year would have been $53,983 higher, arising mainly from foreign exchange losses/gain taken to the profit and loss account on profit and loss figures.

At 30 June 2026, the Company incurred DKK denominated expenses in Tanbreez Mining Greenland A/S. At 30 June 2026, if the DKK had strengthened by 10% against the US Dollar with all other variables held constant, post-tax profit for the year would have been $1,024,847 lower, arising mainly from foreign exchange losses/gain taken to the profit and loss account on profit and loss figures. If the DKK had weakened by 10% against the US Dollar with all other variables held constant, post-tax for the year would have been $1,252,590 lower, arising mainly from foreign exchange losses/gain taken to the profit and loss account on profit and loss figures.

Set out below is an overview of financial instruments, other than cash and short-term deposits, held by the Group as at 30 June 2026:

Set out below is an overview of financial instruments, other than cash and short-term deposits, held by the Group as at 30 June 2025:

The Company manages its contributed equity as capital, with the objective of maintaining sufficient funding to support its exploration activities and continue as a going concern. The Company manages its capital requirements through equity raisings, warrant exercises and, where available, related-party support.

Details of the Group’s contributed equity and movements during the year are set out in Note 24 and the Statement of Changes in Equity.

The Company is not subject to any externally imposed capital requirements.