• Jury returned verdict on supplier's claim against DUG US subsidiary
• Damages awarded significantly less than claimed amount
• DUG US intends to file post-trial motions and appeal the decision

DUG Technology Ltd (ASX: DUG) has provided an update on legal proceedings commenced by a supplier against its subsidiary, DownUnder GeoSolutions (America) LLC ('DUG US'), in the United States District Court for the Southern District of Texas. The proceedings related to a disputed supplier invoice received under an energy management services agreement. Following the trial in October 2025, the jury returned a verdict that DUG US was liable to the supplier for breach of the agreement and awarded the supplier around US$270 thousand in damages. This was significantly less than the US$2.4 million (plus interest) being claimed by the supplier. The jury also returned a verdict on DUG US's counterclaim that the supplier was not liable to DUG US for breach of a related agreement. The supplier subsequently filed a motion for attorney's fees, court costs and other expenses. DUG US opposed the motion as excessive, given the supplier's limited recovery of damages at trial and other legal factors. The Court has now entered its final judgment ordering DUG US to pay the damages, around US$1.85 million in attorney's fees, and around US$8 thousand in court costs and expenses. DUG US intends to file post-trial motions seeking to have the judgment set aside and, pending the outcomes of those motions, intends to appeal the decision.