Announcement PDF 24 October 2025 The Manager Companies ASX Limited 20 Bridge Street SYDNEY NSW 2000 (74 pages by email) Dear Madam ANNUAL REPORT AND NOTICE OF AGM I attach the Company's Annual Report for the year ended 30 June 2025 and a copy of the Company's Notice of Annual General Meeting to be held on 27 November 2025. To transact any other business that may be brought forward in accordance with the Company's Constitution. By order of the Board Peter J. Nightingale Director pjn12761 ANNUAL REPORT 2025 Fulcrum Lithium Ltd and its controlled entities ABN: 23 665 528 307 Contents Review of Operations 01 Corporate Governance Statement 14 Directors’ Report 15 Lead Auditor’s Independence Declaration 27 Consolidated Statement of Profit or Loss and Other Comprehensive Income 28 Consolidated Statement of Financial Position 29 Consolidated Statement of Changes in Equity 30 Consolidated Statement of Cash Flows 31 Notes to the Consolidated Financial Statements 32 Consolidated Entity Disclosure Statement 53 Directors’ Declaration 54 Independent Auditor’s Report 55 Additional ASX Information 62 Corporate Directory 65 Fulcrum Lithium Ltd 2025 Annual Report 1 Review of Operations The Directors present their report together with the consolidated financial statements of the Group, comprising Fulcrum Lithium Ltd (Fulcrum or the Company) and its controlled entities, for the year ended 30 June 2025. Review of Operations Fulcrum Lithium Ltd listed on the ASX on 22 November 2024, to explore the largest lithium exploration lode claim holding area by a company, of approximately 230 km2, in the heart of Nevada’s ‘lithium belt’ which hosts Albemarle Corporation’s (NYSE: ALB) Silver Peak lithium mine, the only lithium producing mine in the USA. The Company’s three lithium projects in Nevada, USA are: • the Alkali Flats lithium project comprising 2,276 lode claims (approximately 190 km2); • the Fairway lithium project comprising 327 lode claims (approximately 27 km2); and • the Summit lithium project comprising 160 lode claims (approximately 13 km2). Fulcrum’s projects are proximate to, or on trend with, significant lithium projects at various stages of exploration and development in a geologic setting with demonstrated success and a mining friendly jurisdiction (Figure 1). The projects are targeting the Siebert Formation claystones which host in excess of 60 million tonnes of reported lithium carbonate equivalent resources at several deposits in nearby third-party projects. 2 Fulcrum Lithium Ltd 2025 Annual Report Review of Operations During the year ended 30 June 2025, the Company completed 2 drilling programs at the Alkali Flats project and 1 drilling program at the Fairway project. Additionally, a comprehensive geological sampling and mapping program across all 3 projects was completed. Alkali Flats Project The Alkali Flats project comprises 2,276 lode claims, an area of 190 km2, located in the Clayton Valley, Nevada, USA approximately 15km south of the Tonopah Flats and TLC lithium projects and 10km east of Albermarle’s Silver Peak Lithium mine, the only operating lithium mine in the USA. Alkali Flats Phase 1 Drilling Program Fulcrum’s maiden drilling campaign commenced on 10 December 2024, 18 days after listing on the ASX. The drill program was permitted in September 2023 by the USA Bureau of Land Management (BLM). The drilling program, comprising 14 Reverse Circulation (RC) drill holes averaging 171 metres depth on a grid spacing of approximately 800 metres, was designed to test the Siebert Formation; the regional claystone host for lithium (Li) deposits and in a location where Fulcrum’s initial surface sampling results returned lithium concentrations up to 797 ppm Li (Figure 2). Table 1 is a list of the drill holes completed and their coordinates using NAD 83 Zone 11 datum. Figure 1. FULCRUM’S PROJECT LOCATIONS Fulcrum Lithium Ltd 2025 Annual Report 3 Review of Operations Table 1. ALKALI FLATS PHASE 1 DRILL HOLE LOCATIONS AND DEPTH Drill Hole ID Easting Northing Elevation (M) Total Depth (M) AFRC-1 480568 4185258 1581 128.0 AFRC-2 481354 4184335 1600 131.1 AFRC-3 479982 4185235 1574 172.2 AFRC-4 479608 4184480 1585 175.3 AFRC-5 480493 4184399 1595 213.4 AFRC-6 481342 4183633 1615 105.2 AFRC-7 480497 4183616 1595 228.6 AFRC-8 479182 4186900 1545 141.7 AFRC-9 479183 4186899 1543 105.2 AFRC-10 479368 4183616 1584 181.4 AFRC-11 479223 4185291 1564 227.1 AFRC-12 480494 4182820 1610 146.3 AFRC-13 481295 4182791 1612 182.9 AFRC-14 482534 4181879 1616 228.7 TOTAL 2,367.4 All 14 holes intersected the Seibert Formation at shallow depths, on average at 6.0 metres depth with a maximum alluvial overburden of 14.0 metres being intercepted. Drilling shows that the Seibert Formation geology comprises an interbedded mixture of claystones, volcanic tuffs, tuffaceous volcaniclastic sands and gravels. A weathered and fresh basalt flow was commonly intersected in a number of holes which correlates to the Mira Basalt which is known to be present locally in the Seibert Formation. 4 Fulcrum Lithium Ltd 2025 Annual Report Review of Operations Figure 2. ALKALI FLATS PHASE 1 DRILLING PLAN TRACK MOUNTED RC DRILL RIG ON SITE AT ALKALI FLATS Fulcrum Lithium Ltd 2025 Annual Report 5 Review of Operations Up to 71.1 metres of Seibert Formation claystones were intercepted in the drilling with an average of 26.7 metres, generally correlated in a lower and an upper zone (Figure 3). Assays results for the 14 holes confirm that 8 out of the 14 holes intersected zones of elevated lithium mineralisation, above 300 ppm Li. The highest zones intersected are highlighted as: • AFRC-3: 21.3m @ 507 ppm Li with internal values up to 617 ppm Li • AFRC-4: 13.7m @ 471 ppm Li with internal values up to 594 ppm Li and 9.1m @ 771 ppm Li with internal values up to 919 ppm Li • AFRC-7: 15.2m @ 360 ppm Li with internal values up to 450 ppm Li • AFRC-1: 9.1m @ 427 ppm Li with internal values up to 490 ppm Li Table 2. ASSAY RESULTS SHOWING ZONES ABOVE 300 ppm Li Drill Hole ID From (m) To (m) Length (m) Li (ppm) AFRC-1 24.4 33.5 9.1 427 AFRC-2 1.5 3.0 1.5 304 and 66.5 67.1 1.6 457 AFRC-3 103.6 124.9 21.3 507 AFRC-4 6.1 19.8 13.7 471 and 137.2 146.3 9.1 771 AFRC-5 1.5 4.6 3.1 353 AFRC-6 No zones > 300 ppm Li AFRC-7 44.2 59.4 15.2 360 AFRC-8 No zones > 300 ppm Li AFRC-9 No zones > 300 ppm Li AFRC-10 16.8 18.3 1.5 432 and 24.4 25.9 1.5 336 AFRC-11 79.2 85.3 6.1 335 AFRC-12 No zones > 300 ppm Li AFRC-13 No zones > 300 ppm Li AFRC-14 No zones > 300 ppm Li This drilling program was the first time the Alkali Flats project area has been drilled, providing valuable three- dimensional data to apply to the large Alkali Flats basin covered by Fulcrum’s claims. The presence of lithium mineralisation greater than 300 ppm Li was an encouraging start to Fulcrum’s exploration program. These results confirm that there are significant mineralised intervals of Seibert Formation claystone and that a robust lithium mineralisation system is present at Fulcrum’s Alkali Flats project. However, the intersected lithologies and claystone thicknesses indicate that the south-east corner of the Alkali Flats claims, targeted in the Phase 1 campaign, is not the optimal basin setting to intersect an expanded thickness of lithium-bearing claystones. Fulcrum’s basin analysis including the Phase 1 drilling data, new surface outcrop mapping and interpretation of publicly available geophysical data (e.g. USGS gravity data) subsequently directed exploration focus towards the northern and western areas of the basin (Figure 4) which the Phase 2 Alkali Flats drill program was designed to target. 6 Fulcrum Lithium Ltd 2025 Annual Report Review of Operations Geological Mapping Program On completion of the Phase 1 Alkali Flats drilling program, a comprehensive geological mapping and sampling program across the full 230 km2 of claims at the Alkali Flats, Fairway and Summit projects was initiated. Sedimentary and hydrothermal features as well as structural trends were mapped to build a basin model. The geological mapping results were incorporated along with the full set of drilling results and geological interpretation from Phase 1 Alkali Flats drilling to plan the Phase 2 Alkali Flats drilling and the maiden Fairway Project drilling programs. A total of 95 samples from exposed outcrops and shallow auger holes were collected with encouraging results. Assay results returned up to 817 ppm Li at Alkali Flats (Figure 4) with 26 samples returning assay values above 300 ppm Li. Figure 3. CROSS SECTION OF SELECTED ALKALI FLATS PHASE 1 DRILL HOLES DISPLAYING INTERCEPTED LITHOLOGIES AND LITHIUM CONCENTRATION (15X VERTICAL EXAGGERATION) GEOLOGICAL MAPPING AND SAMPLING AT ALKALI FLATS Fulcrum Lithium Ltd 2025 Annual Report 7 Review of Operations Alkali Flats Phase 2 Drilling Program The Alkali Flats Phase 2 drilling program comprised 10 RC drill holes averaging 166 metres depth on spacing generally ranging from 1,500 metres to 2,500 metres testing different prospective parts of the basin that were identified following Phase 1 drilling results and the geological mapping program (Figure 4). Based on RC drill logging, 8 of the 10 drill holes intersected Siebert Formation clay zones at depths on average at 42m depth with a maximum alluvial overburden of 100.6m being intercepted. Drilling shows that the Siebert Formation geology comprises predominantly of claystones, with an interbedded mixture of volcanic tuffs, and minor amounts of tuffaceous volcaniclastic sands and gravels. The thickness of claystones intersected in the Siebert Formation in the 8 holes ranges from 27m to 175m, averaging 82m and can be generally correlated in a lower and an upper zone (Figure 6). Table 3 is a list of the drill holes completed and their coordinates using NAD 83 Zone 11 datum. Figure 4. ALKALI FLATS 2025 SURFACE GEOLOGY MAPPING AND PHASE TWO DRILL FOCUS AREAS 8 Fulcrum Lithium Ltd 2025 Annual Report TRUCK MOUNTED RC DRILL RIG ON SITE DURING ALKALI FLATS PHASE 2 PROGRAM Review of Operations Table 3. ALKALI FLATS PHASE 2 DRILL HOLE LOCATIONS AND DEPTH Drill Hole ID Easting Northing Elevation (m) Total Depth (m) AF2-1 474544 4184340 1604 243.9 AF2-2 471969 4185842 1560 213.4 AF2-3 471757 4183531 1621 182.9 AF2-4 474844 4182026 1680 213.4 AF2-5 473357 4183908 1617 228.7 AF2-6 475964 4183727 1620 213.4 AF2-7 467451 4188920 1480 93.0 AF2-8 464599 4192712 1479 93.0 AF2-9 463801 4193633 1529 62.5 AF2-10 463778 4185933 1497 122.0 TOTAL 1,666.2 Fulcrum Lithium Ltd 2025 Annual Report 9 Review of Operations After the reporting period, assay results for the 8 holes that intersected the Siebert Formation have been received and confirm that all 8 holes intersected zones of elevated lithium mineralisation, above 300ppm. The full table of significant lithium assay results can be found in Table 4. The highest zones intersected are highlighted as: • AF2-2: 70.1m @ 629ppm Li with internal values up to 975ppm Li • AF2-5: 53.4m @ 735ppm Li with internal values up to 1067ppm Li • AF2-10: 67.1m @ 644ppm Li with internal values up to 1077ppm Li • AF2-1: 22.9m @ 611ppm Li with internal values up to 882ppm Li • AF2-4: 16.8m@ 801ppm Li with internal values up to 1024ppm Li Figure 5. ALKALI FLATS PHASE 2 COMPLETED DRILLING PROGRAM 10 Fulcrum Lithium Ltd 2025 Annual Report Review of Operations Table 4. ASSAY RESULTS SHOWING ZONES ABOVE 300PPM Li HOLE FROM (m) TO (m) LENGTH (m) Li (ppm) AF2-1 47.3 70.1 22.9 611 including 56.4 62.5 6.1 779 AF2-2 100.6 213.4 112.8 554 including 143.3 213.4 70.1 629 AF2-3 134.1 147.8 13.7 528 AF2-4 16.8 33.5 16.8 801 including 21.3 32.0 10.7 904 AF2-5 53.4 106.7 53.4 735 including 65.5 77.2 12.2 881 AF2-6 30.5 39.6 9.1 667 AF2-7 24.4 45.7 21.3 416 also 48.8 53.4 4.6 502 also 71.6 82.3 10.7 397 AF2-7 86.9 93.0 6.1 364 AF2-8 0.0 6.1 6.1 402 AF2-9 Gravel Cover - No Assays Requested AF2-10 50.3 117.4 67.1 644 including 53.3 59.4 6.1 938 Figure 6. CROSS SECTION OF SELECTED ALKALI FLATS PHASE 2 DRILL HOLES DISPLAYING INTERCEPTED LITHOLOGIES AND LITHIUM CONCENTRATION (15X VERTICAL EXAGGERATION) 2026 Alkali Flats Claims Renewals Based on the drilling results from the two drill programs, a decision has been made to reshape the number of claims of the Alkali Flats project to focus on the highly prospective areas discovered in the southwest of the basin and reduce the lease maintenance costs. After the reporting period, 512 claims were renewed for the 2025/2026 BLM lease maintenance year providing a significant saving in annual claim maintenance costs. Fulcrum Lithium Ltd 2025 Annual Report 11 Review of Operations Fairway Project Fairway Maiden Drilling Program Fairway project’s maiden drill program, comprising 5 RC drill holes averaging 103 metres depth on spacing generally ranging from 1,500 metres to 3,000 metres, was designed to test different prospective parts of the basin identified from the geological mapping program (Figure 2). All 5 holes intersected the Fish Lake Valley Formation at shallow depths, on average at 26 metres depth with a maximum alluvial overburden of 32 metres, however, hole stability issues and strong water influx while drilling prevented the drill rig from reaching the planned depths of several holes. Assay results report that only 1 hole intersected zones of elevated lithium mineralisation, above 300 ppm. 2026 Fairway Claims Renewals Based on the drilling results from the maiden drill campaign, and despite the restricted depths penetrated, the Company believes the Fairway project has been definitively tested for prospectivity and a decision has been reached not to renew the Fairway project lode claims. The Group impaired the carrying value of its Fairway project by not renewing the BLM leases. Figure 6. FAIRWAY PROJECT COMPLETED DRILL PROGRAM AND SURFACE SAMPLING 12 Fulcrum Lithium Ltd 2025 Annual Report Review of Operations Summit Project On completion of the Alkali Flats Phase 1 drilling program, a comprehensive geological mapping and sampling program was completed across the Summit project. Twenty six samples were collected all returning assay results less than 175 ppm Li indicating no significant lithium mineralisation in the outcrops sampled (Figure 7). 2026 Summit Claims Renewals Based on the results from the geological sampling and mapping program, a decision has been reached not to renew the Summit project lode claims. The Group impaired the carrying value of its Summit project by not renewing the BLM leases. Figure 7. SUMMIT 2025 SURFACE GEOLOGY SAMPLE ASSAY RESULTS Fulcrum Lithium Ltd 2025 Annual Report 13 Review of Operations No material changes The Company confirms it is not aware of any new information or data that materially affects the information included in this report and that all material assumptions and technical parameters underpinning the Exploration Results in this announcement continue to apply and have not materially changed. Governance Arrangements The Company’s management and Board of Directors include individuals with many years’ work experience in the mineral exploration and mining industry who monitor all exploration programs and oversee the preparation of reports on behalf of the Company by independent consultants. The exploration data is produced by or under the direct supervision of qualified geoscientists. In the case of drill hole data half core samples are preserved for future studies and quality assurance and quality control. The Company uses only accredited laboratories for analysis of samples and records the information in electronic databases that are automatically backed up for storage and retrieval purposes. Competent Person’s Statement The information in this Report that relates to Exploration Results is based on information compiled by Mr Bill R. Fleshman of Global Geological Services, LLC, a geologist who is a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy and (FAusIMM CP Geology #107342). Mr Fleshman is an independent consultant and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Fleshman consents to the inclusion in this Report of the matters based on the information in the form and context in which it appears. 14 Fulcrum Lithium Ltd 2025 Annual Report The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about having a set of core values and behaviours that underpin the Company’s activities and ensure transparency, fair dealing and protection of the interests of stakeholders. The Company has reviewed its corporate governance practices against the Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council. The 2025 Corporate Governance Statement is dated 26 September 2025 and reflects the corporate governance practices throughout the 2025 financial year. The Board approved the 2025 Corporate Governance Statement on 26 September 2025. A description of the Company’s current corporate governance practices is set out in the Company’s corporate governance statement, which can be viewed at https://www.fulcrumlithium.com/corporategovernance. Corporate Governance Statement Fulcrum Lithium Ltd 2025 Annual Report 15 Directors’ Report The Directors present their report together with the consolidated financial statements of the Group, comprising Fulcrum Lithium Ltd (Fulcrum or the Company) and its controlled entities, for the year ended 30 June 2025. Directors Norman A. Seckold Executive Chairman Director since 6 February 2023. Norman Seckold graduated with a Bachelor of Economics degree from the University of Sydney and has spent more than 40 years in the full time management of natural resource companies, both in Australia and overseas. Mr. Seckold has been the Chairman of a number of publicly listed companies including Moruya Gold Mines (1983) N.L., which acquired the Golden Reward heap leach gold deposit in South Dakota, USA, Pangea Resources Limited, which acquired and developed the Pauper’s Dream gold mine in Montana, USA, Timberline Minerals, Inc. which acquired and completed a feasibility study for the development of the MacArthur copper deposit in Nevada, USA, Perseverance Corporation Limited, which discovered and developed the Nagambie gold mine in Victoria, Valdora Minerals N.L., which developed the Rustler’s Roost gold mine in the Northern Territory and the Ballarat East Gold Mine in Victoria, Viking Gold Corporation, which discovered a high grade gold deposit in northern Sweden, Mogul Mining N.L., which drilled out the Magistral and Ocampo gold deposits in Mexico and Bolnisi Gold N.L, which discovered and developed the Palmarejo and Guadalupe gold and silver mines in Mexico. Mr. Seckold is currently Chairman of ASX-listed companies Alpha HPA Limited, Nickel Industries Limited, Sky Metals Limited and Non-executive director of Uvre Limited. Interest in shares - 34,928,005 fully paid ordinary shares. 16 Fulcrum Lithium Ltd 2025 Annual Report Peter J. Nightingale Executive Director, CFO and Company Secretary Director since 6 February 2023. Peter Nightingale graduated with a Bachelor of Economics degree from the University of Sydney and is a member of Chartered Accountants Australia & New Zealand. He has worked as a chartered accountant in both Australia and the USA. As a director or company secretary Mr. Nightingale has, for more than 35 years, been responsible for the financial control, administration, secretarial and in-house legal Anthony Sgro Independent, Non-Executive Director Director since 6 February 2023. Mr. Sgro is a Chemical Engineer, graduating from the University of Sydney. His studies included a thesis on Minerals Chlorination, which focused on the application of chlorination techniques to the extractive metallurgy of various minerals including titanium, nickel, chromium and tungsten ores. He also completed a Graduate Diploma in Marketing from Macquarie University School of Business. In a career spanning 45 years, Mr. Sgro was involved in the technical and commercial aspects Directors’ Report functions of a number of private and public listed companies in Australia and the USA including Bolnisi Gold N.L. and Nickel Industries Limited. Mr. Nightingale is currently a director of ASX listed Alpha HPA Limited, Prospech Limited and Uvre Limited. Interest in shares - 5,050,000 fully paid ordinary shares. of supply of specialised equipment to the major process industries including oil and gas, petrochemical, chemical and mining industries, including equipment specification, material selection, commercial and technical aspects of large tenders, contract negotiation and contract management. Mr Sgro is currently a director of ASX listed Alpha HPA Limited. Interest in shares - 2,000,000 fully paid ordinary shares. Foster V. Wilson Non-Executive Director Director since 6 February 2023. Mr Wilson has over 40 years of experience, with a focus on lithium claystone and brine exploration projects, in roles ranging from reserve drilling and estimation, feasibility studies, mine permitting and development. He has worked in various capacities for Placer Dome Inc., Echo Bay Mines Ltd., American Bonanza Gold Corp. and various junior exploration companies. Mr. Wilson currently serves as a director of TSX-V listed Alpha Lithium Corporation and Atomic Minerals Corp. and is President of Mesa Exploration Corporation. Interest in shares - 21,212,000 fully paid ordinary shares Fulcrum Lithium Ltd 2025 Annual Report 17 Meetings of Directors Director Directors’ Meetings Number of eligible meetings to attend Number of meetings attended Norman A. Seckold 9 9 Peter J. Nightingale 8 8 Foster V . Wilson 9 9 Anthony Sgro 8 8 Performance Rights The Company upon listing on 22 November 2024 issued 3,000,000 performance rights which vested on 21 February 2025 when both conditions below were met. Number of rights Basis Vesting 3,000,000 Performance-based Subject to the following: (a) The Company receiving conditional approval to be admitted to Official Quotation on the ASX; and (b) The Company completing at least 10 drill holes, of which a minimum of 450 metres is drilled in total across the 10 holes and with at least one intersection returning a minimum grade of 750 ppm lithium. On 2 June 2025, the Company converted the 3,000,000 performance rights to 3,000,000 fully paid ordinary shares which are subject to escrow restrictions until 22 November 2026, that is, 24 months from the Company being admitted to the official list of ASX. Directors’ Interests The relevant interest of each director in the shares or other securities issued by the Company and other related bodies corporate, at the date of this report is as follows: Director Fully Paid Ordinary Shares Norman A. Seckold 34,928,005 Peter J. Nightingale 5,050,000 Foster V . Wilson 21,212,000 Anthony Sgro 2,000,000 Directors’ Report 18 Fulcrum Lithium Ltd 2025 Annual Report Shares Issued on Exercise of Performance Rights During the year ended 30 June 2025, 2,000,000 performance rights were granted to Mr Nightingale and 1,000,000 performance rights were granted to Mr Sgro. On 2 June 2025, 3,000,000 performance rights were converted into 3,000,000 ordinary shares at an issue price of 10 cents. The shares are escrowed until 22 November 2026. Options During the year ended 30 June 2025, no options were granted as compensation to directors of the Company (2024 : nil). Corporate Information Corporate Structure Fulcrum Lithium Ltd is a limited liability company that is incorporated and domiciled in Australia. It has prepared a consolidated financial report incorporating the entities that it controlled during the financial year. The Group’s structure at 30 June 2025 is outlined below. Directors’ Report Fulcrum Nevada LLC (E30187922023-3) (Nevada, USA) USA Intermediary Holding Company Incorporated 10 March 2023 Last Basin LLC (E29019642023-3) (Nevada, USA) Nevada, USA Exploration Company Alkali Flats and Summit Projects Incorporated 24 January 2023 Flasher LLC (E33613412023-5) (Nevada, USA) Nevada, USA Exploration Company Fairway Project Incorporated 20 July 2023 Fulcrum Lithium Ltd (ACN 665 528 307) (Australia) Australia Parent Incorporated 6 February 2023 100% Fulcrum Lithium Ltd and Subsidiaries Group Structure 100% 100% Fulcrum Lithium Ltd 2025 Annual Report 19 Principal Activities The principal activities of the Company an its controlled enities is the exploration and development of mineral projects. Financial Results The consolidated loss after income tax attributable to members of the Company for the year was $2,221,795 (2024 : $1,025,351 loss). Review of Operations A review of the Group’s operations for the year ended 30 June 2025 is set out on pages 1 to 13 of this Annual Report. Dividends The Directors do not recommend the payment of a dividend in respect of the financial year ended 30 June 2025. No dividends have been paid or declared during the financial year (2024 : nil). Environmental Regulations The operations and proposed activities of the Group are subject to State and Federal laws and regulations in the USA concerning the environment. As with most exploration projects and mining operations, the Group’s activities are expected to have an impact on the environment, particularly if advanced exploration or field development proceeds. It is the Group’s intention to conduct its activities to the highest standard of environmental obligation, including compliance with all applicable environmental laws. Changes in State of Affairs In the opinion of the Directors, significant changes in the state of affairs of the Group that occurred during the year ended 30 June 2025 were as follows: • The Company was admitted to the Official List of ASX on Wednesday, 20 November 2024 and commenced quotation on 22 November 2024. • The Company, through the successful Initial Public Offer (IPO), issued 48,500,000 ordinary fully paid shares at 20 cents each, raising $9,700,000 before costs. • The Company issued 3,000,000 performance rights to Directors of the Company expiring 18 months from the date of issue at nil consideration. • The performance rights converted on a 1 for 1 basis into ordinary shares for nil consideration upon the satisfaction of the Company admission to the ASX official quotation and completing at least 10 drill holes of which a minimum of 450 metres is drilled in total across the 10 holes, with at least one intersection returning a minimum grade of 750 ppm lithium. • The Group impaired the carrying value of $601,410 for its Fairway project and $252,742 for its Summit project. Other than the matters detailed above, there were no other significant changes in the affairs of the Company during the year. Directors’ Report 20 Fulcrum Lithium Ltd 2025 Annual Report Likely Developments Likely developments in the operations of the Group and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Group. Indemnification and Insurance of Officers and Auditors During or since the end of the financial year, the Company has not indemnified or made a relevant agreement to indemnify an officer or auditor of the Company against a liability incurred as such by an officer or auditor. The Group has not paid or agreed to pay, a premium in respect of a contract insuring against a liability incurred by an officer or auditor. Subsequent Events After the Reporting Date No matters or circumstances have arisen since the end of the reporting period which materially affected or may materially affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. Use of Funds and Expenditures The Company confirms that it has used its available cash and assets at the time of admission to the ASX consistent with the business objectives. Total cash expenditure during the financial year ended 30 June 2025 was $4,591,947. Exploration and evaluation cash expenditure was $1,844,514. Approximately 79% of this expenditure was spent on exploration activities at the Alkali Flats project, 15% at the Fairway project and 6% at the Summit project. Activities included mapping, geological field work and significant drilling. Used of Funds Prospectus Year 1 Budget Actuals 30 June 2025 YTD Expenses of the Offer 807,923 640,200 Repayment of Loan Facility 1,000,000 1,000,000 Exploration program year 1 2,060,077 1,844,514 Exploration program year 2 4,786,000 - Working Capital 800,000 1,107,233 Total $9,454,000 $4,591,947 Directors’ Report Fulcrum Lithium Ltd 2025 Annual Report 21 Remuneration Report - Audited Principals of compensation - Audited Key management personnel have authority and responsibility for planning, directing and controlling the activities of the Group. Key management personnel comprise the directors of the Company. No other employees have been deemed to be key management personnel. The remuneration policy of Directors is to ensure the remuneration package properly reflects the person’s duties and responsibilities and that remuneration is competitive in attracting, retaining and motivating people of the highest quality. The Board is responsible for reviewing its own performance. The evaluation process is designed to assess the Group’s business performance, whether long-term strategic objectives are being achieved and the achievement of individual performance objectives. The Constitution and ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time to time by a general meeting. Remuneration generally comprises of salary and superannuat