Half Yearly Report and Accounts

HALF YEAR REPORT For the Period Ended 31 December 2025p.1

CORPORATE DIRECTORYp.3

DIRECTORS' REPORTp.4

The Directors present their report, together with the financial statements, on the consolidated entity consisting of Pivotal Metals Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2025 ('H1 FY26').p.4

PRINCIPAL ACTIVITIESp.4

The principal activity of the Group is exploration for and development of copper (Cu), nickel (Ni), platinum group metals (PGM). Pivotal Metals holds the advanced Horden Lake Cu-Ni-Au-PGM project in northwest Quebec, Canada, which has a large established JORC compliant mineral resource estimate. The Company is also actively exploring its Belleterre Angliers Greenstone Belt (Belleterre) exploration projects, prospective for Cu-Ni-PGM and high grade gold, and located in southwest Quebec, Canada.p.4

Company Focus and Missionp.4

The strategic focus of Pivotal Metals is the investment in, and development of, high value projects containing critical metals necessary for the successful transition of modern economies to sustainable technology. The Company has successfully built a portfolio of multiple projects in Quebec which is an established and supportive mining jurisdiction, with access to critical infrastructure necessary to find develop and operate modern mining projects. At its Horden Lake and the Belleterre projects, Pivotal is focused on delineating and expanding the resource base of the properties, and de-risking the assets to create and realise substantial shareholder value.p.4

HORDEN LAKEp.5

Pivotal Metals completed the acquisition of 100% of Horden Lake on 20 December 2022. Horden Lake is located in James Bay, 140km north of Matagami in northwest Quebec, and 10km from the all weather James Bay Highway, linking Matagami to the La Grande Hydroelectric dam network to the north. The James Bay region is an active mining and exploration area, and is serviced by the very large and established mining operational bases of Val d'Or and Rouyn-Noranda servicing the world-famous Abitibi mining camp. Quebec hosts 22 operating mines and many advanced development stage critical and precious metals projects.p.5

Mineral Resources and Exploration Upsidep.5

Pivotal has completed several drill campaigns, building on prior drilling for a total of 55,000m metres diamond drilling on the property. In April 2025, the company completed a significant mineral resource estimate (MRE) update, which now totals 37mt @ 1.1% CuEq, including 19.5mt @ 1.2% CuEq in the higher confidence indicated category (refer Table 1). Importantly, 31mt @ 1.1% CuEq is pit constrained, highlighting the potential for a scalable low cost open pit development scenario.p.5

Horden Lake has significant resource upside potential. The project is open in most directions with the deepest drilling extending to ~500m in the central zone, and 150-250m on the flanks. A large scale electromagnetic (EM) geophysical program has shown multiple large bedrock conductors extending out from established resource areas, as well as along the entire controlling gabbro contact structure that hosts the main Horden Lake deposit. In places, conductors extend to 3x the depth of deepest drilling.p.6

A 1,500m step-out drilling campaign, targeting a newly identified shallow along strike geophysical conductor to the SE of the main deposit was completed in 2025 (refer Figure 3). Drilling intersected an expanded mineralised envelope, including 34.6m @ 0.58% CuEq from 150.5m (HN-24-126), which serves as upside not the current MRE. A resource review is in progress.p.7

The 2025 drilling results provide strong validation that electromagnetic (EM) methods are highly effective for targeting sulphide mineralisation at Horden Lake, and validate the extensive remaining targets as shown in Figure 3. The modelled conductivity of the drilled anomaly was 3,000-5,000 siemens, while conductors beneath the main Horden Lake deposit reach up to 15,000 siemens and remain open at depth, highlighting significant growth potential along and below the Contact Zone.p.7

Metallurgical Testworkp.7

The first full metallurgical program has also been recently completed by Pivotal on the Project. Testwork showed high copper recoveries of 87-94% being demonstrated in locked cycle and variability tests, and significant byproduct metals can be recovered into clean, high grade Cu and Ni concentrates, using a simple conventional flotation flowsheet. Refer ASX announcement 1 May 2024 'Thick Copper Zone and By-Products Confirmed at Horden Lake' for further information.p.7

Post reporting period, on 2 February, 2026, Pivotal announced the results of ore sorting testwork completed on Horden Lake samples where two-phase program that included full-scale TOMRA X-Ray Transmission (XRT), and heavy liquid separation (HLS) programs. Both XRT and HLS testwork showed strong potential to upgrade the Horden Lake ROM, and combined (Table 2) present a compelling opportunity to shape the development of the Horden Lake project by reducing the size of on-site processing facilities.p.7

A significantly upgraded concentrate 2.1x the feed sample grade was produced using a relatively high-selectivity threshold, with rejection of 68% of the mass (i.e. 3 tonnes of ROM ore is reduced and upgraded to 1 tonne of plant feed) and recovering 68% of the copper. Increased metal recoveries up to 86% were demonstrated using less lower selectivity, whilst still delivering a grade uplift of 1.5x and rejecting 44% of the mass (i.e. 3 tonnes of ROM ore is reduced and upgraded to 1.7 tonnes of plant feed).p.8

Recent testwork forms part of the co-funding provided by the Quebec Government under the Mineral Exploration Support Program for Critical and Strategic Minerals (MESP-CSM). As announced on 16 April 2025, Pivotal was awarded C$105k (~A$120k) in no-recourse grant funding for metallurgical testwork on the Horden Lake project, to support future development.p.9

The Company continues to progress a number of optimisation activities focused on resource and exploration upside, and project development scenario reviews.p.9

BELLETERRE PROJECTSp.9

Belleterre is an advanced exploration project, consisting of multiple projects across a 100% owned large scale 157km2 greenstone package located adjacent to the world-famous Abitibi mining district. Historical work has resulted in the discovery of a number of very high-grade Ni-Cu-PGM occurrences, as well as high grade gold and VMS potential. The project has three main component areas: Midrim-Alotta, Lorraine and LaForce.p.9

Midrim-Alottap.10

The FLTEM survey has delineated a conductive plate positioned directly beneath the known zone of massive magmatic sulphide mineralisation at Alotta which hosts known very high-grade copper, nickel, platinum and palladium accumulation from surface to approximately 90 metres depth. Importantly, the new conductor indicates that the optimal drill orientation is from the northeast, contrasting with historic drilling which was completed from the southwest.p.10

New conductors were also delineated in the north of the Midrim property, at Lac Long and Lac Kirwan, adding to the earlier delineated drill ready target at Midrim East. Drilling at Midrim is commencing in March 2026 where a number of the priority geophysical targets will be tested.p.11

Post reporting period, the Company announced a new conductor ~200m east of the Midrim deposit. Historic surface FLTEM surveys have been restricted to small and discrete areas, even though they are ideally suited for the detection of these magmatic sulphide accumulations in this highly prospective zone.p.11

Shanty Lakep.12

The Shanty Lake magmatic sulphide Cu-Ni occurrence lies between the Blondeau and Kelly Lake Cu-Ni deposits. Pivotal's 2025 FLTEM survey identified a large 400m x 150m steeply dipping bedrock conductor (Figure 6), starting from 150m depth beneath the Shanty Lake surface occurrence.p.12

Based on mapping the target horizon is interpreted to be underlain by mafic volcanic and gabbro. Previous drilling and grab and boulder samples returned elevated Ni and Cu concentrations. The combination of known prospective host environment, established mineralisation, VTEM conductor, and FLTEM conductor makes Shanty Lake a highly prospective and priority drill target. The Company intends to drill Shanty Lake in H1 2025 following receipt of permits.p.12

Lorrainep.12

An IP surveying during December (results announced post reporting period) has defined multiple high-priority anomalies immediately east of the past-producing Lorraine Cu-Ni-Au Mine, extending known mineralisation into areas that have seen minimal modern exploration. Gold-focused IP anomalies extend for up to 1.8 kilometres east of the mine, with geophysical signatures coincident with historic underground and surface gold-copper mineralisation, including bonanza grades of 28m @ 45 g/t Au from underground channel sampling. Multiple discrete high-chargeability targets correlate with historic drilling, trenching and surface sampling, supporting the presence of a coherent and laterally extensive gold-bearing structural system.p.12

In parallel, copper-nickel-gold targets have been identified by coincident high-chargeability and low-resistivity responses, consistent with gabbro-hosted magmatic sulphide mineralisation analogous to the Lorraine deposit. This interpretation is reinforced by historic surface samples grading up to 0.63% Cu and 0.93% Ni, highlighting the potential for additional Cu-Ni sulphide accumulations east of the mine. The proximity of these targets to the Lorraine Mine - which historically produced approximately 600kt at 1.4% Cu, 0.6% Ni and 0.6 g/t Au (1964-1968) - underscores the fertility of the mineral system and the opportunity for further discovery. Additional EM and drilling is targeted for H1 2026.p.13

Kelly Lake Eastp.13

A new copper-gold target area at Kelly Lake East has been defined following recent fieldwork, confirming a widespread and highly anomalous Cu-Au footprint and outlining a new exploration priority within Pivotal's Belleterre exploration program. Kelly Lake East is located 6.6km southeast of the past-producing Lorraine Mine, which historically delivered high-grade copper and gold mineralisation, including 28m @ 45 g/t Au from underground channel sampling. Prior trenching at Kelly Lake East exposed broad Cu-Au anomalous bands up to 25m wide, with multiple outcrops returning grades of up to 1.9 g/t Au, 2.0% Cu and 0.71% Zn. Mineralisation extends across the eastern project boundary onto neighbouring ground held by Vior Inc (TSXV: VIOR), where grab samples assayed up to 4.1% Cu and 2.1 g/t Au, supporting the interpretation of a laterally extensive mineralised system.p.13

The target area remains underexplored, with limited historical drilling conducted sub-parallel to the interpreted mineralised trend, reducing its effectiveness. Undrilled VTEM conductors and large copper soil anomalies define a ~1km x 1.5km exploration corridor, with geological characteristics - including multiple quartz veins and shear structures - analogous to those associated with the high-grade Lorraine gold system located approximately 7km to the northwest. Follow-up outcrop mapping, soil sampling and geophysics planned at Kelly Lake East in Q2 2026 to refine drill targets.p.14

OTHER PROJECTSp.14

Pivotal is undertaking an orderly wind-down of its entity in Spain in order to complete its exit from the country. During the reporting period the cash bond was released from escrow following satisfaction of its closure obligations. The carrying value of the entity was written down in 2023 Financial Report.p.14

CORPORATEp.14

During the reporting period, the Company completed a two tranche capital raise for A$5.4m in gross funding via the issue of equity. A portion of the raise was completed through the issue of Canadian critical metals flow through shares, which, in effect, meant A$1.1m of the raise was non-dilutive funding when compared to the concurrent placement. The raise was strongly supported by institutional and strategic investors and significant scale backs were applied.p.14

REVIEW OF RESULTSp.17

The loss after tax for the period ended 31 December 2025 was $932,024 (31 December 2024: loss of $937,469).p.17

EVENTS SUBSEQUENT TO REPORTING DATEp.17

On 7 January 2026, as approved by shareholders at the 17 December 2025 general meeting, the Company granted 12,000,000 Director unlisted options exercisable at $0.025 expiring 7 January 2029 with vesting conditions.p.17

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEp.20

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONp.21

CONSOLIDATED STATEMENT OF CASH FLOWSp.23

NOTES TO THE FINANCIAL STATEMENTSp.24

This half year report covers Pivotal Metals Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2025. The presentation currency of the Group is Australian Dollars. The financial statements were authorised for issue on 4 March 2026 by the Directors.p.24

As at 31 December 2025, the contingent liability arises from the acquisition of the Horden Lake project. The Horden Lake project is subject to two separate 1% net smelter return royalties. Belleterre is comprised of almost 300 separate mining claims, various of which are subject to net smelter return royalties of up to 2.5%. Any royalties on the projects are payable only upon commercial production.p.32

DIRECTORS' DECLARATIONp.34

In the Directors' opinion, the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', give a true and fair view of the Group's financial position as at 31 December 2025, and there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.p.34

INDEPENDENT AUDITOR'S REVIEW REPORTp.35

Criterion Audit Pty Ltd concluded that they have not become aware of any matter that makes them believe that the half-year financial report does not comply with the Corporations Act 2001, including giving a true and fair view of the Group's financial position as at 31 December 2025 and complying with AASB 134.p.35