Announcement PDF VRX SILICA LIMITED ABN 59 142 014 873 ANNUAL REPORT 30 JUNE 2026 CORPORATE DIRECTORY VRX Silica Limited 1 DIRECTORS Peter Pawlowitsch (Non-executive Director and Interim Chairman) Bruce Maluish (Non-executive Director) (formerly Managing Director, resigned 30 June 2026) David Welch (Non-executive Director) CHIEF EXECUTIVE OFFICER Tony Swiericzuk 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. LETTER FROM THE BOARD OF DIRECTORS TO SHAREHOLDERS VRX Silica Limited 2 Dear Shareholders It has been a transformational year for VRX Silica. The Arrowsmith North silica sand project advanced significantly with State environmental, works and mining approvals granted and our purchase of the adjacent Arramall farm completing, providing a much-improved location for silica sand processing facilities and infrastructure and a reduced environmental impact for the project with substantially less clearing of native vegetation. We also secured binding offtakes for the sale of 960,000 tonnes of silica sand from Arrowsmith North with partners in South Korea, Taiwan, the Philippines and China, amounting to almost half of expected full production. An updated BFS for Arrowsmith North was released, confirming strong financial outcomes including post- tax ungeared NPV8 of A$179.2 million, over a 25-year mine life within a Resource exceeding 100 years. With amendments to regulatory approvals arising from the Arramall farm purchase and final remaining approvals expected later this year, trial shipments from Arrowsmith North are being targeted for late 2027 with sustained production in early 2028. We were also delighted to receive State Government support for VRX’s land swap proposal at our Muchea silica sand project, which substantially increases the volume of high-grade silica sand accessible for mining over an area with lower environmental impact. This secures Muchea’s status as an extensive, long-life, and world-class silica sand project and work is now underway on the approvals process and to update the 2019 BFS for Muchea. We also successfully implemented our management succession plan, with the appointment of seasoned mining executive Tony Swiericzuk, who boasts considerable experience taking mining projects into production, as new VRX CEO and the retirement of Bruce Maluish from the Managing Director role. We are also midway through a Board refresh process with the retirement of long-standing Chair, Paul Boyatzis, from that role and Bruce transitioning to a Non-Executive Director role at the end of the financial year, and myself taking the role of Interim Chair pending the appointment of a permanent new Chair. On behalf of the Board, I would like to thank all personnel for their valuable contribution during the year and all shareholders for their continued support. Peter Pawlowitsch Interim Chairman For and on behalf of the Board COMPANY REVIEW VRX Silica Limited 3 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 2026 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% SiO2 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 primarily to the glassmaking and foundry industries. Arrowsmith North is the Company’s leading project with production targeted for early 2028 following trial shipments in late 2027. The project is underpinned by a JORC-compliant Proved and Probable Ore Reserve of 221Mt at 99.5% SiO₂, supporting the potential for long-term production into the foundry, container glass and flat-glass manufacturing markets, primarily servicing growing demand in Asia. Development of Muchea will rapidly follow Arrowsmith North. Muchea contains a JORC-compliant total Mineral Resource estimated at 208 Mt of silica sand at a grade of 99.6% SiO2. It is a globally significant, very high-grade resource of silica sand suitable for the development of high-quality silica sand products, including premium glass markets. Figure 1: Project Locations COMPANY REVIEW VRX Silica Limited 4 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 and Casting Silica sand is vital to foundry and casting industries. Foundry sand differs from glass sand by requiring specific grain size, shape and thermal properties rather than glassmaking mineralisation. Demand for high-quality silica sand of the type VRX can produce from Arrowsmith North is increasing across Asian markets. Additionally, advances in 3D printing, technology, materials and applications are accelerating growth across foundry, casting and related sectors, offering significant benefits over traditional methods. End-to-end workflow automation, including AI-assisted design and automated post-processing, is creating more efficient production from design to final product while reducing human intervention. 3D printing enables intricate mould geometries and complex internal passages that are difficult to produce with conventional techniques, often without extra tooling or post-processing. Additive manufacturing is increasingly used for mass production of consumer products, combining form and function early to support innovative, efficient design. 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. Key Developments in FY26 and post year end Arrowsmith North Approvals/Permitting and Arramall Farm Purchase • August 2025: Department of Mines, Petroleum and Exploration (DMPE) approved the Mining Proposal at Arrowsmith North (ie. mining operations) subject to standard mining and closure conditions including environmental approval. • September 2025: Environment Minister granted environmental approval for development of the project under Part IV of the EP Act. • September 2025: Department of Water and Environmental Regulation (DWER) granted Works approval for the proposed development of Arrowsmith North, allowing for the construction of the processing plant. • October 2025: Contract signed for Arramall Farm purchase, paving the way for superior location of the processing plant and infrastructure, access to Brand Highway and reduced environmental impact with substantially less clearing of native vegetation. • November 2025 – January 2026: Conducted additional targeted environmental and technical surveys and completed reports required to support the relocation of the processing plant from native vegetation to cleared land on Arramall Farm, and approval of updated environmental offset strategy. • February 2026: Amendment applications lodged for existing regulatory approvals in connection with changes to processing plant location, infrastructure and offset strategy following Arramall Farm purchase, including with: - Environmental Protection Authority of Western Australia (EPA) to change environmental conditions; - DWER for revised works approval, and - DMPE for mining permit. • February 2026: Revised offset strategy lodged with the Federal environmental agency, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) to incorporate Arramall Farm. COMPANY REVIEW VRX Silica Limited 5 • April 2026: DWER granted water abstraction licence for groundwater. • July 2026: Purchase of Arramall Farm completed. Arrowsmith North Offtakes Six binding offtake agreements were signed during the year for 960,000 tonnes per annum of AFS20, 35 and 55 certified foundry sand and Mid West Premium glass sand. Offtake buyers include reputable firms on South Korea, Japan, Taiwan, the Philippines and China. Contract Terms: 4-year supply agreements Pricing assumptions consistent with March 2024 BFS: US$38–43/dmt (affirmed by updated May 2026 BFS). Planned ramp-up production: 0.8–1Mtpa (Years 1–2), full capacity 2Mtpa. Arrowsmith North Project Financing Argonaut PCF appointed as financial advisor for debt financing. Independent technical review of Arrowsmith North completed, forming a key component of financiers’ due diligence when assessing potential support for the project’s development. International investment bank and debt capital markets specialist Pareto Securities was appointed as Manager for fixed income debt financing following a competitive selection process that reflected the strong level of interest in the project. Arrowsmith North Updated BFS Updated BFS released, confirming strong financial outcomes including post-tax ungeared NPV8 of A$179.2 million, over a 25-year mine life within a Resource exceeding 100 years. Muchea Land Swap WA State Government confirmed support for land swap proposal at Muchea, substantially increasing tonnage of high-grade silica sand over an area with lower environmental impact. Board and Management Changes Succession plan implemented with the appointment of Tony Swiericzuk as new Chief Executive Officer and retirement of Bruce Maluish from Managing Director role. Board refresh underway, with retirement of Paul Boyatzis as Chair and change of role for Bruce Maluish to Non-Executive Director. Peter Pawlowitsch appointed as Interim Chair. Key Priorities for FY27 Key priorities for FY27 include: Arrowsmith North • Finalise amendments to State regulatory approvals and permits as a result of Arramall farm purchase and finalise Federal regulatory approval • Finalise logistics, power and mining-related contracts • Finalise project finance • Final investment decision • Commence construction of processing plant and associated infrastructure Muchea • Finalise updated environmental surveys • Lodge applications for environmental and mining approvals • Update BFS COMPANY REVIEW VRX Silica Limited 6 Arrowsmith Hub Arrowsmith North Arrowsmith North hosts a globally significant deposit of high-quality silica sand. Arrowsmith has the potential to establish a new, long-term silica sand industry in Western Australia, delivering substantial economic benefits to the State and the Mid West region. These benefits include sustained direct and indirect employment, royalties, and regional economic development. Arrowsmith has key attributes for the foundry resin coated silica sand market. The final product has single grains (rather than the usual quartz crystal cluster) which have a clean surface for the resin to adhere to and particularly high thermal stability properties, essential for the foundry market. The project continues to have strong support from key stakeholders, including local Traditional Owner groups, local shires, the Mid West Development Commission, the Mid West Chamber of Commerce and Industry, and both State and Federal Governments. The mining and processing operation is relatively simple and low impact. 2026 Updated BFS In May 2026, the Company announced details of its updated Bankable Feasibility Study (2026 Updated BFS) at Arrowsmith North, leading the development of the Company’s five silica sand projects. The 2026 Updated BFS updates the original study prepared in August 2019 (2019 BFS) and first update prepared in March 2024 (2024 Updated BFS) with all capital and operating components re-tendered and re- estimated as the Company heads towards a Final Investment Decision (FID) on Arrowsmith North in the coming months. The key outcomes from the 2026 Updated BFS* were as follows: * All currency in AUD. The proposed relocation of environmental offset sites together with the processing plant and associated infrastructure to the adjacent Arramall freehold property has delivered capital cost savings, including in areas such as site clearing and road construction. These reductions have been partially offset by higher costs for original equipment manufacturer (OEM) components, copper cabling, concrete, and structural steel. Overall, expected capital expenditure (Capex) has increased by approximately $8.3 million (including contingencies) relative to the 2024 Updated BFS. Despite this uplift, the project continues to demonstrate strong capital efficiency, with an estimated payback period of approximately 4.6 years. COMPANY REVIEW VRX Silica Limited 7 Prior to finalising the updated Capex estimate the Company completed detailed engineering for the relocation of the processing plant, infrastructure and access roads, including geotechnical studies and site selection for the plant, product storage areas, power station, proposed solar farm and administration buildings. Key variations are driven by: • modest increases in OEM component costs; • a material rise in steel, concrete and construction labour costs for the processing plant; • a reduction in costs for construction of the access road and internal site roads; • a reduction in transport costs, driven largely by a significant (approximately 10km) reduction in haulage mileage to Geraldton Port; • a reduction in power costs (and emissions) by incorporating a solar farm into the power supply equation; and • an increase in operating cost with revised tendered rates for mining and equipment hire. The revised Capex estimate includes a 10% contingency as the bulk of the estimate is based on fully tendered and quoted estimates. Some variations may occur in final costs of the supply of copper wiring and potentially concrete, though neither are expected to be material. The impact of the ongoing conflict in the Middle East to operating expense estimates have not been incorporated into the revised model, given the uncertainty of both the length of the conflict and its impact on prices in the medium to long term. This will be reviewed prior to FID if the situation persists. Despite a change in location, the proposed processing plant design and surrounding area for infrastructure is fundamentally unchanged. Figure 2: An aerial view render of the proposed Arrowsmith North processing plant and facilities Sale prices for silica sand products have been left unchanged towards the lower end of the range of estimates provided for in the 2024 Updated BFS, despite the growing market for silica sand products in Asia and upward pricing pressures. Again, this reflects the Company’s conservative approach to pricing when modelling the financial metrics for the project as well as providing an additional contingency. COMPANY REVIEW VRX Silica Limited 8 The 2026 Updated BFS utilises the same production target outlined in the 2024 Updated BFS being the Ore Reserve and Mineral Resource Estimates completed in November 20221. Further grade control drilling will be undertaken prior to commencement of mining within the Mine Development Envelope (MDE). Arrowsmith North Ore Reserves and Mineral Resources are set out below in the Mineral Resources and Ore Reserves Statement section of this report. Regulatory Approvals During the year the Company received the following regulatory approvals for Arrowsmith North: • Approval from DMPE for the Mining Proposal at Arrowsmith North. This allows for the commencement of mining operations at Arrowsmith North, subject to standard mining and closure conditions including environmental approval. • Environmental approval from the Western Australian Minister for the Environment, Hon Matthew Swinbourn MLC, for the proposed development of the project through the issue of a Statement That A Proposal May Be Implemented. This followed an earlier appeal process and subsequent confirmation that the Minister had determined the EPA’s assessment of Arrowsmith North was adequate, and further assessment is not required. Conditions attached to State environmental approval include staged mining, achievement of specified environmental outcomes, rehabilitation and ongoing reporting, which have been previously agreed and align with VRX’s commitment to safe, sustainable and responsible operations at Arrowsmith North. • Works approval from DWER for the proposed development of Arrowsmith North, allowing for the construction of the processing plant. • DWER approval for the grant of a 5C Water Abstraction licence, which authorises the Company to take water from the Yarragadee deep water aquifer to allow processing at Arrowsmith North. Subsequently, the Company entered into an agreement to purchase the Arramall farm site, which sits on freehold land adjacent to Arrowsmith North. Comprising approximately 2,091 hectares over two separate lots, Arramall contains tracts of both cleared land and native vegetation, bordered to the east by the Company’s mining lease at Arrowsmith North and to the west by Brand Highway. Figure 3 shows a plan of the Arrowsmith North project area including the adjacent Arramall farm site. Completion of the purchase occurred post year- end. The site forms part of the Company’s revised environmental offset strategy for the project to satisfy the offset conditions within the State environmental approval and Commonwealth environmental requirements. The site is also suitable for locating the processing plant and associated infrastructure for Arrowsmith North with easy access to Brand Highway for transportation of products to Geraldton Port, with suitability for locating a solar farm and potential future renewable power solution for Arrowsmith North. Relocating the plant from its originally approved location within the Arrowsmith North MDE to cleared, freehold land adjacent to Brand Highway at Arramall will reduce the overall environmental impact of Arrowsmith North as less native vegetation will be disturbed both for the plant and roads to the highway. However, as a consequence of this change, the Company was required to apply for amendments to the existing regulatory approvals. A number of targeted environmental and technical surveys required to support the plant relocation and environmental offset strategy were undertaken and the amendment process required submissions to the State agencies including DMPE, DWER, the EPA and the Federal environmental agency, DCCEEW. The State-based agencies are finalising their decisions on the amendment applications as is DCCEEW on the environmental offset strategy under an accredited assessment process. The Company has been in close consultation with all relevant regulatory authorities during this process. 1 ASX Announcement of 11 November 2022, Arrowsmith North Mineral Resource and Ore Reserve Update. COMPANY REVIEW VRX Silica Limited 9 Figure 3: Arrowsmith North Project Area Arrowsmith Central As the Company turns its attention to Muchea post-development of Arrowsmith North, the Arrowsmith Central remains under 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 predominantly within Exploration Licence E70/5027, partially within E70/5109 and is contiguous with the granted Arrowsmith North Mining Lease (M70/1389). The Company is re-evaluating 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. COMPANY REVIEW VRX Silica Limited 10 Muchea Development of Muchea will follow Arrowsmith North. The Company has received numerous 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 premium glass and other markets. Land Swap Proposal The Western Australian State Government confirmed its support for VRX’s land swap proposal at Muchea, which substantially increases the volume of high-grade silica sand accessible for mining over an area with lower environmental impact and secures Muchea’s status as an extensive, long-life, and world-class silica sand project. The Muchea project contains a JORC-compliant total Mineral Resource estimated at 208 Mt of silica sand at a grade of 99.6% SiO2. It is a globally significant, very high-grade resource of silica sand suitable for the development of high-quality silica sand products. The project has been included in Austrade’s Australian Critical Minerals Prospectus since 2022, demonstrating the Federal Government’s recognition of silicon and silica sand as critical minerals and the importance of the Muchea Project in this regard. A substantial portion of the mineral resource at the project sits within the area of File Notatation Area (FNA) 17231 (Proposed Conservation Reserves and Other Lands of Interest Pending Suitability Assessment for Conservation, Restoration and/or Offsets. Proposals Inconsistent with Conservation Land Use May Be Subject to Review). FNAs are an indication of areas where additional considerations or limitations may apply to land use, such as areas where the State Government has proposed or is considering some change of land tenure for possible implementation and/or areas of some sensitivity to activities by the mining industry that warrant the imposition of specific tenement conditions. The project area was impacted by the former Perth-Peel Green Growth Plan or PPGGP (also known as the Strategic Assessment of the Perth & Peel Region or SAPPR). Both the PPGGP and SAPPR were discontinued by the State Government in December 2022, with the Government instead prioritising regional planning. Despite this, FNA 17231 remains over part of the project area, thereby restricting mining activity in the area. VRX was granted a partial mining lease at the Muchea Project (being M70/1390), which is only approximately one-third of the area applied for with the balance sitting within the FNA (albeit representing a very small proportion of the overall FNA area). In 2022, the Company applied for a new mining lease (M70/1414) over the area not granted under the original application in contemplation of both the PPGGP and SAPPR being discontinued. That mining lease application has not yet been granted. Following ongoing consultation with the State Government, VRX submitted a proposal for the Company to apply for a replacement mining lease over an area that straddles parts of the project area within both the existing mining lease and the FNA area. An illustration of the Proposal is contained in Figure 4 below. The Proposal is to be facilitated by way of a land swap of ground within the FNA area for ground currently held within the existing mining lease area. COMPANY REVIEW VRX Silica Limited 11 Figure 4: Illustration of land swap proposal COMPANY REVIEW VRX Silica Limited 12 The key features of this are: • Exploration activities conducted to-date over Muchea have identified a resource with high prospectivity of a significantly greater tonnage of high-grade silica sand in the new project area. • The area is a topographic high which will enable mining to easily maintain the Department of Water and Environmental Regulation requirement for mining to be at least 3 metres above the year 2000 groundwater level. The project will not impact local water resources. • The conservation value of land to be held by the State will be enhanced by the proposed land swap by maintaining Black-Cockatoo breeding and roosting habitats outside the proposed mining lease area, with minimal impact on foraging value, and increasing the area of land set aside for conservation. • Previous Aboriginal Cultural Heritage surveys conducted over the project area have not identified any areas of cultural or heritage significance. Following grant of the replacement mining lease the Company will relinquish the existing granted mining lease and withdraw the current mining lease application. The relinquished mining lease will make available 818 Ha from the existing lease area which, once relinquished, is expected to be incorporated into the FNA area. The new replacement mining lease is proposed over a smaller area, being 721 Ha of land currently in the FNA area. Figure 5 below shows a schematic profile of the Muchea project area and the significant impact of the FNA on tonnages. The bulk of the estimated 208 million tonnes aggregate resource lies within the FNA area as illustrated by this diagram. Figure 5: Schematic profile of existing mining lease and replacement lease land areas, and impact of FNA In addition to premium glass products, VRX’s silica test work program has determined further opportunities for production of specialised silica flour and silica powder. These are products that are essential for the manufacturing of LCDs, pharmaceutical glass, epoxy moulding compound (EMC) encapsulant (for solar panels), high tensile fibreglass yarn (for wind turbine blade covers), thermal protection blades (for industrial scale batteries), cristobalite (road marking paint), quartz crucibles (for manufacture of solar panel poly silicon ingots), gorilla glass (for mobile phone glass), and semi-conductors. Next Steps A number of baseline environmental surveys have been conducted over the Muchea 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. Additional targeted surveys will be conducted ahead of submission of referrals for environmental, mining and other regulatory approvals for the project. COMPANY REVIEW VRX Silica Limited 13 The Company will also update the 2019 bankable feasibility study for Muchea. 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. 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. Silica Flour Program During the year, the Company paused its silica flour program following a review of the market for the by- product of silica flour, being fine silica powder. The review included the domestic and Asian export markets which have been disrupted by an increase in production of silica flour for the LCD market resulting in an increase in the by-product production. As a result of this increase, the economics of producing silica flour from the Muchea raw material at this stage are unfavourable at present, despite the results of the Company’s testwork determining that Muchea silica sand is suitable for producing high grade silica flour for the rapidly expanding LCD glass market. The Company continues to monitor the situation. In accordance with the terms of grant for the Western Australian State Government’s Investment Attraction Fund (IAF) that was previously given to the Company, the State Government and the Company have agreed to terminate the Financial Assistance Agreement (FAA) for the grant. The grant under the IAF was awarded on a matched funding, dollar for dollar basis, for a financial contribution to VRX up to $2 million on the basis that the silica flour program continued. As a result of the termination, the Company is required to repay to the State the sum of $266,035 previously paid to VRX under the grant program. A payment plan is in the process of being agreed with the State. Austrade Critical Minerals Prospectus Arrowsmith North and Muchea were first included in the initial Australian Critical Minerals Prospectus for 2022 published by Austrade, and were again included in the Prospectus for 2024, 2025 and 2026. The prospectus includes technical, commercial, and geological data to facilitate investment into projects for Australia’s identified critical minerals. To-date, the prospectus has received significant recognition among interested foreign investors and buyers, Australian corporates, and the Australian government for its significant role in mark