• Successful annual harvest with total oil production of 752,600 litres
• Over 95% of oil produced is of high extra virgin quality
• Improved cashflows expected from increased production and higher prices
• Grower lease renewals confirmed for second project, first project assets to be managed

Australian Agricultural Projects Ltd (ASX: AAP) has reported its quarterly update for the period ended 30 June 2025. The key highlights include:- The annual harvest was completed in the first week of July 2025 with total oil production of 752,600 litres, a significant increase from the previous year's 551,500 litres. This result was within the range of management's expectations and comparable to the previous 'on-year' in 2023.- Testing has confirmed that over 95% of this season's oil produced is of a high extra virgin quality, a pleasing result compared to previous seasons.- The continued strong retail prices for Australian extra virgin olive oil have underwritten the budgeted price for the sale of the olive oil from the 2025 harvest. This, combined with the increased volume of oil produced, is expected to generate the most valuable harvest in the history of the business, leading to improved cashflows over the next twelve months.- The company is focused on ensuring that resilience is returned to the business following the expansion of debt facilities to fund the replanting of a large portion of the orchard between 2018 and 2022. With the replanted trees now in commercial production, the company expects to generate surplus working capital which will be prioritized for future debt reduction, ongoing upgrade of orchard equipment, and the continued restructuring and simplification of the managed investment schemes.- The first term of the grower leases, which form the foundation of the Projects the Company manages, expired on 30 June 2025. No growers in the first of the two projects have elected to extend their lease, whereas all of the growers in the second project have taken up the lease extension. The company will look to manage the sale of the remaining assets of the first project as well as review the ongoing operating structure of the second project.- The June quarter operating cash deficit of $1,138,000 was as expected, as it included only $359,000 in receipts (being the last of the previous season's harvest proceeds) and the majority of the costs associated with the recent harvest. Future operating cash flows are expected to return to positive as the proceeds from the sale of the current harvest are received.

The company expects the most valuable harvest in the history of the business, which will generate improved cashflows over the next twelve months.