Quarterly Activities/Appendix 5B Cash Flow Report

• Ore Purchase Agreement with Gold Fields Ltd now unconditional, 70% share of future free cash flow
• Feasibility Study released for Lady Herial, Board approved Final Investment Decision
• Cash balance of $9.9 million, supporting ongoing exploration and Lady Herial site establishment

Lunnon Metals Limited (ASX: LM8) has reported on activities undertaken during the December 2025 quarter. The key highlights include: the Ore Purchase Agreement with Gold Fields Ltd is now unconditional, with Lunnon Metals to receive 70% of future free cash flow; the Feasibility Study for the Lady Herial gold deposit was released, allowing the Board to make a Final Investment Decision; the Company had a cash balance of $9.9 million as of 31 December 2025, supporting ongoing exploration, technical and permitting activities, and Lady Herial site establishment. The Company continued its 100% gold-focused drilling and exploration program at the Foster-Baker project, with a total of 12.98km drilled during the quarter and over 38km for the 2025 calendar year. Significant drilling results were reported from the Lady Herial deposit, offering upside potential on the Northwest Prospect and the Upper Structure beyond the current planned open pit. The Company announced Hampton Mining and Civil Services as the preferred tenderer for the Lady Herial mining contract, and received final regulatory approvals to commence mining at the deposit. A Feasibility Study for Lady Herial was completed, documenting the excellent potential cash flows that will be generated in the current high Australian dollar gold price environment. The Company's focus for the upcoming quarter will be on delivering the first ore parcels under the Ore Purchase Agreement, finalizing the targeting of the second Exploration Incentive Scheme-sponsored drill program at Plentiful, and assessing the potential for a cutback at Lady Herial.

Applying an Australian dollar gold price of $6,250/oz to the mining and processing of gold bearing material from the Lady Herial open pit generates extremely positive financial outcomes. Based on 70% of the potential free cash as agreed in the Ore Purchase Agreement with Gold Fields, operating free cash flow (pre-tax) was recorded as $40.4M, ranging between $27.8M (@ $5,000/oz) and $47.9M (@ $7,000/oz).

The Company's focus for the upcoming quarter will be on delivering the first ore parcels under the Ore Purchase Agreement, finalizing the targeting of the second Exploration Incentive Scheme-sponsored drill program at Plentiful, and assessing the potential for a cutback at Lady Herial. The Company will also continue to monitor nickel sector price movements and any news regarding the Kambalda Nickel Concentrator.