Announcement PDF VRX SILICA LIMITED ABN 59 142 014 873 ANNUAL REPORT 30 JUNE 2025 CORPORATE DIRECTORY DIRECTORS Paul Boyatzis (Non-executive Chairman) Bruce Maluish (Managing Director) Peter Pawlowitsch (Non-executive Director) David Welch (Non-executive Director) SECRETARY Ian Hobson REGISTERED AND PRINCIPAL OFFICE Ground Floor, 52 Kings Park Road West Perth WA 6005 Telephone: (08) 9226 3780 Website: www.vrxsilica.com.au SHARE REGISTRY Computershare Investor Services Pty Ltd Level 17, 221 St George's Terrace Perth WA 6000 Telephone: (08) 9323 2000 Facsimile: (08) 9323 2033 AUDITORS RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 AUSTRALIAN SECURITIES EXCHANGE VRX Silica Limited shares (VRX) are listed on the Australian Securities Exchange. VRX Silica Limited 1 LETTER FROM THE BOARD OF DIRECTORS TO SHAREHOLDERS Dear Shareholders VRX Silica Limited, your company, continued to make significant progress during the year notwithstanding a continued and well publicised protracted environmental approvals process for the Arrowsmith North silica sand project. Significantly, Austrade’s 2025 Australian Critical Minerals Prospectus has included VRX’s Arrowsmith North and Muchea silica sand projects in its publication confirming the Australian Government’s recognition of silicon and silica sand as critical minerals. VRX continues to have the most advanced Australian silica sand projects of any ASX listed silica sand company. In 2017 VRX commenced planning, Aboriginal heritage surveys, environmental studies, metallurgical test work and plant engineering work for its Arrowsmith North silica sand project. In September 2024, the company lodged with the Environmental Protection Authority of Western Australia what was to be the final version of the Response to Submissions document for Arrowsmith North. This document is the company’s response to the summary of submissions received after the 4-week Public Environmental Review period that was completed in July 2024. In October 2024 VRX conducted a site visit at Arrowsmith North with State and Federal Government agencies. In November 2024 the EPA accepted the RTS and published the document on the EPA website. In early January 2025 the EPA published its Assessment Report for the Arrowsmith North proposal and recommended to the Minister for the Environment that the proposal may be implemented, subject to conditions that had been accepted by VRX following consultation with the EPA. Publication of the Report triggered commencement of a three-week review period during which appeals may be submitted to the Office of the Appeals Convenor. An appeal by one conservation group was lodged in late January 2025. In early May 2025, the OAC confirmed to VRX that its investigation into the appeal was complete and the OAC had provided its report to the Minister for Environment. In late June 2025 VRX received confirmation from the Minister for the Environment that he had determined the EPA assessment of the proposal was adequate, consistent with the policy framework and implementation of the proposal can proceed without further assessment. The Minister allowed the appeal in part and accepted the OAC’s recommendations to amend conditions addressing dieback, which VRX had previously considered and accepted. In late August 2025 the Minister formally approved the proposal and development of Arrowsmith North under Part IV of the Environmental Protection Act 1986. VRX is in an exciting phase, with our key goal of environmental approval having been achieved and development of Arrowsmith North progressing as we focus on securing formal binding offtakes and project finance. On behalf of the Board, I would like to thank all personnel and contractors for their valuable contribution during the year and thank all shareholders for their continued support. Paul Boyatzis Chairman For and on behalf of the Board VRX Silica Limited 2 The most advanced, pure-play silica sand company on ASX Five high-value, long-life, high-grade Western Australian silica sand projects • Five multi-decade-scale contiguous sand deposits – Arrowsmith (North, Brand and Central), Muchea and Boyatup • A combined 1.38 billion tonnes of mineral resources of 99.6% to 99.9% SiO2 grade silica sand on granted mining leases over four projects, all with secure tenure • Arrowsmith North high-purity product of 99.7% SiO2 with <500ppm Fe2O3 and on track to become VRX’s first silica sand mine in production • Muchea boasts ultra-high-purity product of 99.9% SiO2 with <100ppm Fe2O3 after processing, with likely higher quality after further, targeted processing Made-for-purpose, low capex processing plant capable of independent operation • Largely identical 2mtpa processing plants on all projects utilising a unique flotation process, rather than spirals and screening • Flotation will reduce capex and operating costs, and produce a more consistent, high-grade and marketable product • Process circuit detailed engineering complete, plant operating parameters determined and optimal products defined • Flotation reagents are organic and rapidly oxidise once used, presenting no environmental issues Environmental and other approvals granted for Arrowsmith North • Extensive environmental studies conducted over a number of seasons • EPA application process completed with recommendation to grant made in January 2025 • Mining Proposal approved by Dept. Mines, Petroleum and Energy in early August 2025 • Environmental approval granted by State Environment Minister in late August 2025 • Works approval for Arrowsmith North granted in early September 2025 • Clears path to development of Arrowsmith North with first production aimed for 2026 • Muchea to follow and largely mirror Arrowsmith North approvals process Rehabilitation at the heart of mining – Vegetation Direct Transfer • VDT provides rapid and comprehensive regeneration of mined areas based on continuous rehabilitation as mining progresses • VDT removes a 3m x 3m, 400mm deep sod, preserving topsoil and containing the vast majority of native flora and invertebrate fauna Substantial offtake interest • Offtake term sheets agreed for supply of Arrowsmith North foundry sand products to prominent South Korean and Japanese foundry sand suppliers and a Taiwanese glass manufacturer, with indicative pricing • Poised to be an Australian first, and only, supplier of foundry sand to South Korea and Japan • Substantial interest from significant manufacturers across the Asia Pacific for silica sand products from all projects COMPANY REVIEW Review of Operations The following is a summary of the activities conducted by VRX Silica Limited (VRX or Company) during the year ended 30 June 2025 at its world-class silica sand projects at Arrowsmith North, Arrowsmith Brand and Arrowsmith Central (located 270 km north of Perth), Muchea (located 50 km north of Perth) and Boyatup (located 100 km east of Esperance), all situated in Western Australia. VRX Silica Sand Projects VRX is a Western Australian based pure-play silica sand exploration and development company with five world-class high-value, advanced, very long-term silica sand projects in Western Australia, a Tier 1 mining region. The Company has multi-decade scale contiguous sand deposits on granted Mining Leases with secure tenure and a combined 1.4Bn tonne Mineral Resource of 95.9% to 99.6% SiO 2 high grade silica sand. The Company and its management team is WA based as are its five silica sand projects. Each project can be run independently and will supply variable grade silica sand to the glassmaking and foundry industries. Figure 1: Project Locations VRX Silica Limited 4 COMPANY REVIEW Applications of Silica Sand Silica sand is the most-used commodity on the planet after air and water and has a number of applications. The largest consumption of lower quality silica sand is for the manufacturing of concrete. Silica sand is a finite resource that is rapidly being exhausted, and the Asia-Pacific region is currently experiencing increasing demand at a time of a diminishing global supply. The Company’s focus is on the foundry and glassmaking sectors. Foundry Silica sand is an essential component of the foundry and casting industries. The largest foundry industry is in South Korea, where fabrication of large marine components dominates. The quality for foundry sand is distinguished from glass sand with the requirement for a grain size and grain shape and thermal property specification rather than the mineralisation required for glassmaking. There have been significant recent developments in the foundry market with the advent of 3D printing and significant advancements in technology, materials and applications, demonstrating the industry's rapid growth impacting various sectors, including the foundry and casting industries. The trend towards end-to-end workflow automation is gaining momentum. This includes AI-assisted design software and automated post-processing, aiming to create a seamless, efficient workflow from design to final product. This automation is expected to reduce human intervention and increase production efficiency. Recent advancements in 3D silica sand printing media for casting have shown significant progress, offering numerous benefits over traditional established methods. 3D printing allows for the creation of highly intricate and complex mould geometries that are challenging to achieve with conventional techniques. New technologies enable precise and detailed patterns, enhancing the capability to produce complex internal passages without additional tooling or post-processing. Additive manufacturing is increasingly being adopted in the consumer products industry for mass production. It enables the combination of form and function early in the design process, allowing for innovative and efficient product development. The transformative potential of 3D printing across various industries including the foundry and casting industry, driven by advancements in automation, materials, and application-specific solutions, are leading to greater demand for silica sand of a particular quality, that is capable of production by VRX. Accordingly, VRX is engaged with a number foundry companies developing and using these new and innovative technologies with the aim of producing the specification of foundry sand required, particularly from the Arrowsmith North silica sand project. Glassmaking Silica sand is the main ingredient in all types of glassmaking, including specialty solar panel, high-tech and architectural glass. The glass manufacturing industry demand is increasing at a rate of 5-6% per year, or about 8-10 million tonnes pa. Around 47% of the world’s flat and container glass is manufactured in Asia. VRX is actively engaged with a number of glassmaking companies across Asia with the aim of producing the specification of sand required. VRX Silica Limited 5 COMPANY REVIEW Arrowsmith North Silica Sand Project – Key Developments in FY25 State Environmental Approval Process • October 2024: Hosted site visit with WA and Commonwealth agencies. • November 2024: EPA accepted and published the Response to Submissions (RtS). • Early January 2025: EPA published its Assessment Report recommending approval, subject to conditions. • Late January 2025: Appeal lodged by the Conservation Council of WA; VRX responded in February and April. • May 2025: Appeals Convenor completed investigation and delivered report to the Minister. • June 2025: Minister for Environment upheld the EPA’s recommendation, allowing the project to proceed with minor amendments to dieback management conditions. • August 2025: Environment Minister gives environmental approval for development of the project under Part IV of the EP Act. Ancillary Approvals and Permits • August 2025: Department of Mining, Petroleum and Energy approved the Mining Proposal • September 2025: Department of Water and Environmental Regulation granted the Works Approval, allowing for construction and operation of the processing plant and associated infrastructure • Water Abstraction Licence – Application for the Groundwater Abstraction Licence well advanced, with no objections received during public consultation. No issues anticipated for approval. • Federal Environmental Approval – Accredited assessment under EPBC Act. No issues anticipated for approval. Offtake Agreements Non-binding term sheets were signed during the year for 640,000 tonnes per annum of AFS20, 35 and 55 certified foundry sand and Mid West Premium glass sand. Offtake buyers include: • South Korea: Namgwang Casting Materials Ind Co., Ltd and Woori Corporation. • Japan: Yamakawa Sangyo Co., Ltd. • Taiwan: FarnHwa Enterprise Co., Ltd. Terms: 4-year supply agreements, aggregate 440,000 tpa (latest additions) plus 200,000 tpa previously agreed with Dong A and Dong Nam in South Korea. Pricing assumptions consistent with March 2024 BFS: US$38–43/dmt. Planned ramp-up production: 0.8–1.1Mtpa (Years 1–2), full capacity 2.2Mtpa. Project Financing Ongoing engagement with debt and offtake financiers. Argonaut PCF appointed as financial advisor for debt financing. Formal process for debt financing commenced following State environmental approval and completion of independent technical review. Outlook FY25 delivered a landmark environmental approval outcome for Arrowsmith North, positioning VRX to transition into the development phase. Key priorities for FY26 will include: • Conversion of term sheets into binding offtake agreements; • Finalisation of ancillary approvals and permits; • Finalisation of logistics, power and earthmoving contracts; • Completion of financing package for Arrowsmith North; and • Final investment decision. VRX Silica Limited 6 COMPANY REVIEW Arrowsmith North The mining and processing operation is relatively simple and low impact with long-term production expected to commence initially at Arrowsmith North on the 221Mt Proved and Probable Ore Reserve (9.2Mt Proved and 212Mt Probable), subject to final environmental approvals. BFS The initial bankable feasibility study (BFS) prepared and released to ASX in August 2019 was updated following detailed engineering on a tailored 2Mtpa processing plant with all capital and operating components and released to ASX in March 2024. The Updated BFS confirms Arrowsmith North maintains robust economic metrics that will potentially supply up to four silica sand products for a growing Asian market. Following an Independent Technical Review to support the financing due diligence the study will be updated to a Definitive Feasibility Study to support the Final Investment Decision (FID). Process Water A process water bore was previously drilled to access water from the Yarragadee North deep aquifer with aquifer testing to supply data for an abstraction licence application for 0.9GlPa of water for the Arrowsmith North processing plant requirements. Additional monitoring boreholes for the borefield have been completed. The abstraction licence application was progressed with the required advertising of the proposed Abstraction Licence Application being published on 7 August 2024 in both 'The West Australian' and the ‘Midwest Times’ newspapers, with a 15 day written objection submission period. The relevant agency DWER has confirmed that no further information is required and approval is expected imminently. Engineering The following areas/items are detail designed, peer reviewed and ready to progress to execution: • Site and plant layout drawings. • The attritioning/flotation building (structural, mechanical, and concrete packages). • The product area (structural, mechanical, and concrete packages). • Rejects cyclone stacker. • Civil works for the plant & product area. • Civil works for the southern access road. • Civil works for the Brand Highway interface. (Note that this has been fully approved by Main Roads WA). • Concrete has been detail designed. • Electrical reticulation design and single line diagrams. • Process Flow Diagrams (PFDs). • Piping & Instrumentation Diagrams (PIDs). • Circuit mass balance. • Water management. • Mechanical Equipment List (MEL). • Fabrication drawings verified. • 3D design model. VRX Silica Limited 7 COMPANY REVIEW Figure 2: An aerial view render of the proposed Arrowsmith North processing plant and facilities Figure 3: Close up render of proposed processing plant at Arrowsmith North VRX Silica Limited 8 COMPANY REVIEW Equipment The following major equipment OEMs have been selected as preferred and used in the detailed design: • Cyclone cluster. • Attritioners. • Hydrofloat separators. • Classifiers. • Conditioning tank. • Thickener. • Transformers. • Ring main unit. • MCC/switchrooms. • Product dewatering screens. • Feed hopper and conveyors. • Slurry pumps. • Water pumps. • Air compressors. The following minor equipment is yet to be officially tendered: • • • • • Bore pumpset. Transportable buildings. Samplers. Pipe supply. Fabricated steelwork, chutes, etc. Power Supply VRX has been considering for some time how to best take advantage of the abundant supply of LNG from nearby gas fields to meet power requirements at Arrowsmith North. Desktop modelling indicates that a gas-driven powerhouse and transmission solution is not only cost effective but will reduce the project’s carbon footprint and expected greenhouse gas emissions. VRX has engaged with ResourcesWA to pursue a power supply solution for Arrowsmith North utilising gas directly from a local wellhead. This power solution has the potential to provide the most economic low emission power supply to Arrowsmith North. The Company continues to investigate the potential for a gas fired power supply also with a potential solar power supply hybrid system. Logistics The Company is engaging with the Mid West Ports Authority (MWPA) for export of silica sand product from Geraldton Port to enable a storage area and shiploading within their Port Maximisation Plan. Proposed sites for future storage and berth access for shiploading have been identified. The Company has access to the adjacent Brand Highway from the Arrowsmith North processing plant site and an approved road intersection construction plan from Main Roads WA to enable road transport of silica sand product in the short-term. The Company has prepared tender documents for the short-term haulage operations. Arrowsmith North Environmental Approvals Process VRX has conducted extensive environmental studies on its silica sand projects over a number of seasons in anticipation of requirements of the State and Federal environmental regulation authorities to undertake approvals assessments. These surveys commenced shortly after the tenements were acquired and the number and extent of these surveys have expanded following further consultation with these authorities. The Company has initially concentrated on gaining approval for development of the Arrowsmith North project. VRX Silica Limited 9 COMPANY REVIEW VRX has received confirmation from the Commonwealth Department of Agriculture, Water and the Environment (now Department of Climate Change, Energy, the Environment and Water) (DCCEEW) for accredited approval under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Accreditation of the EPA’s assessment processes means that the Commonwealth can rely on environmental assessments undertaken by the EPA for the purpose of its approval decisions under the EPBC Act on proposals that are likely to have a significant impact on a matter of national environmental significance. The commencement of assessment of the Arrowsmith North proposal was a referral to the Western Australian Department of Water and Environmental Regulation (DWER) and the EPA for assessment under Part IV, Section 38 of the Environmental Protection Act 1986 (WA) (EP Act). This was lodged in March 2021. The referral was reviewed, and the EPA determined in May 2021 that the Proposal would be assessed at a Public Environmental Review (PER) level, with a requirement for a four-week public review period. The second step was the lodgment of an Environmental Scoping Document (ESD) which was lodged with the EPA in September 2021 and approved in April 2022. The third step was to lodge with the EPA the Environmental Review Document (ERD) for Arrowsmith North. This was lodged in May 2022. The ERD is required under the EPA’s public environmental review process and was released for public review following assessment and acceptance by the EPA and other relevant authorities. The ERD is a comprehensive summary of the project environmental setting, the physical elements of the mine and infrastructure, operational elements, the extent of effects on the environment and the proposed rehabilitation and closure plan. The Company received a request from the EPA for further information in early July 2022 and the response was submitted later that month. As per the Procedures Manual, the ERD was distributed for review by relevant government agencies, subsequently a request for additional information was received in November 2022. The Company lodged a revised ERD (Revision D) in December 2022. In June 2023 DWER confirmed the ERD for Arrowsmith North had been accepted for publication and a fourweek PER period. The PER process commenced on 19 June 2023 for a four-week period and included a requirement for VRX to respond to all comments received with a Response to Submission (RtS) document. Following the PER period DWER compiled public submissions and were provided to the Company in September 2023 to review and respond. The Company prepared a RtS and lodged with EPA on 31 September 2023. Following review by the EPA and DCCEEW comments were received on 10 April 2024. The RtS was revised, and a second Version B was lodged on 24 May 2024. Following meetings with the EPA a final version has been compiled that includes a comprehensive Rehabilitation Management Plan (RMP). This document was peer reviewed before re-lodging with the EPA in September 2024. Importantly the RMP will establish the credentials for the use of VDT in Kwongan Heath, which is the vegetation encountered at Arrowsmith North and also for the grasses and sedges within Banksia Woodland at our other projects. It is estimated to result in the best restoration of the mine area vegetation and habitat within the mine area. The ERD and further information on the proposal is available on the EPA website at: https://www.epa.wa.gov.au/proposals/arrowsmith-north-silica-sand-project A copy of the ERD is also available on the VRX website at: https://vrxsilica.com.au/arrowsmith-north-erd-documents/ The VDT methodology can be viewed at: https://vrxsilica.com.au/miningandrehabilitationmethodology/ VRX Silica Limited 10 COMPANY REVIEW Figure 4: VDT Modified Loader Bucket In October 2024, the Company facilitated a site visit to the project area with representatives from the EPA Board, the EPA Services division of DWER, the Department of Biodiversity, Conservation and Attraction (DBCA) and DCCEEW. The site visit was arranged by VRX to enable key regulatory stakeholders a firsthand observation and understanding of the environment relevant to the Arrowsmith North mining and processing proposal. The site visit was a pre-requisite for final assessment of the Project by the EPA. Figure 5: Site visit at Arrowsmith North with State and Federal Government agencies VRX Silica Limited 11 COMPANY REVIEW In November 2024 the EPA formally accepted the RtS and in early January 2025 published and released its Assessment Report, which recommended the Arrowsmith North development proposal may be implemented subject to conditions that had already been agreed to by VRX. Publication of the Report triggered commencement of a three-week review period during which appeals against the content and recommendations in the Report may be submitted to the Office of the Appeals Convenor (OAC) for the State Government. In late January 2025, VRX received notice from the OAC that an appeal was lodged by the Conservation Council of WA. The OAC has confirmed in May 2025 that its investigation into the appeal had completed and in June 2025 the State Minister for Environment confirmed his determination that the EPA’s assessment of the proposal was adequate, and further assessment is not required. The Minister allowed the appeal in part and accepted the OAC’s recommendations to amend conditions addressing dieback on terms previously considered and accepted by VRX. In late August 2025, the Company received approval under Part IV of the EP Act for the development of Arrowsmith North through the issue of a Statement That A Proposal May Be Implemented (Statement 1252) signed by the Minister for the Environment. Objectives and Principles of Offsets No Net Loss Principle: Offsets aim to ensure that there is no net loss of biodiversity and ecological values. This principle underpins both state and federal environmental policies. Additionality: Offsets must provide benefits that are additional to what would have occurred in the absence of the offset. They cannot merely protect what is already protected by law or under threat of degradation. Proportionality: The scale and nature of the offset must be proportionate to the residual impacts of the project. Durability: Offsets should be enduring, lasting at least as long as the impacts they are compensating for. Arrowsmith Central As the environmental approval process for Arrowsmith North nears completion and the Company turns its attention to Muchea, the Company has postponed the approval process for Arrowsmith Central and withdrawn the referrals to both DWER and DCCEEW. With the extended timetable for approvals experienced to date the development of Arrowsmith Central has been deferred. The project area has been converted to a Retention Licence with reduced rates and no required financial commitments. Arrowsmith Brand The Arrowsmith Brand Mining Lease (M70/1418) has an area of 1,994 Ha and sits predominately within Exploration Licence E70/5027, partially within E70/5109 and is contiguous with the granted Arrowsmith North Mining Lease (M70/1389). The Company is reevaluating the holding at Arrowsmith Brand and its priority in the development hierarchy of its extensive silica sand projects. The project area has also been converted to a Retention Licence with reduced rates and no required financial commitments. Muchea Development of Muchea will follow Arrowsmith North. The Company has had many offtake enquiries for Muchea silica sand from Asian markets and believes that the consistent production of such high-grade silica sand with a low iron content will be in high demand as raw material for the manufacture of predominately premium ultra-clear glass production, particularly for the burgeoning solar panel manufacturing industry. VRX continues to receive these enquiries on a regular basis. Environmental Studies Detailed springtime flora and vegetation studies were undertaken during the springtime months on a selected priority area of 450Ha. This survey will comply with the requirements of the Environment Protection Authority Environmental Factor Guideline: Flora and Vegetation, and Technical Guidance – Flora and Vegetation Surveys for Environmental Impact Assessment (2016a and 2016b). VRX Silica Limited 12 COMPANY REVIEW The final flora and vegetation report includes previous survey results and the recent survey results from quadrats, targeted searches as well as historical information that relates to the root structure, density and distribution of the key species. The Priority Area has been selected as an area that has only two vegetation types and is restricted to Low Banksia Woodland on loose sand, which covers the Company’s production target area. Work to date indicates that the selected area has no Priority Species of flora and no thickets of paperbark which are restricted to low lying areas and generally have more fauna species. Exploration No further exploration was undertaken during the year. Boyatup An examination of the Particle Size Distribution (PSD) data indicates that the Boyatup project contains a generally finer sand than that encountered at the Company’s other projects. The potential products that can be produced have been identified and a marketing study completed. What is apparent is that the potential products are different to the products from the Company’s other projects and will be aimed at yet another potential market and not conflict with already identified markets. A desktop flora and vegetation study indicates that the Boyatup silica sand project will be amenable to the Company’s proposed VDT rehabilitation methodology. Figure 6: Boyatup typical vegetation In reviewing the holding at Boyatup and its priority in the development hierarchy of the Company’s extensive silica sand projects. the project area was converted to a Retention Licence during FY25 with reduced rates and no required financial commitments. VRX Silica Limited 13 COMPANY REVIEW Silica Flour Program and Investment Attraction Fund Grant In FY24 VRX announced it had received confirmation from the Western Australian State Government that the Company’s grant application for $2 million in matched funding under the Investment Attraction Fund (IAF) has been approved with a Financial Assistance Agreement (FAA) for the grant executed that day. The IAF is part of the State Government’s Diversify WA initiative, a collaboration between government, industry and the community supporting the WA Government’s focus on creating secure, quality jobs, growing and diversifying the economy and attracting new investment. The grant under the IAF is being awarded on a matched funding, dollar for dollar basis, whereby the IAF will provide a financial contribution to VRX up to $2m. To-date the Company has received $400,000 under the grant program. The three