Financial Results for the Year Ended 31 March 2026

Tungsten West PLC

03 September 2026

 

3 September 2026

Tungsten West Plc

("Tungsten West", the "Company" or the "Group")

Financial Results for the Year Ended 31 March 2026

Release of Annual Report and Notice of Annual General Meeting

Tungsten West (LON:TUN), the mining company focused on restarting production at the Hemerdon tungsten and tin mine ("Hemerdon" or the "Project") in Devon, UK, is pleased to announce its audited results for the year ended 31 March 2026 and the date of its forthcoming Annual General Meeting ("AGM").

The Company's AGM will be held at the offices of Tungsten West Plc, at Hemerdon Mine, Drakelands, Plympton, Devon, PL7 5BS at 1:00 p.m. on 29 September 2026.

Copies of Tungsten West's Annual Report and Financial Statements for the Financial Year to 31 March 2026, Notice of AGM and Form of Proxy are available to download from the Company's website at www.tungstenwest.com and will shortly be posted to shareholders.

Financial Year Business Highlights

·    Strong safety record maintained with zero Lost Time Incidents as the Project commenced a significant ramp-up in activity with construction and operational readiness.

·    £43 million (gross) of equity funds were raised in February 2026 enabling the commencement of construction, positioning the Company to significantly advance the timeline to production.

·    Continued strength of the tungsten market and ammonium paratungstate (APT) pricing further reinforcing the significantly improved Project economics.

·    Year-end cash position strengthened markedly, with cash and cash equivalents increasing substantially to £25.5 million (2025: £0.02 million), driven predominantly by the Company's funding activities.

·    The Company recorded its first tungsten concentrate sales of £0.6 million in December 2025 from re-commissioning of the pre-existing Mineral Processing Facility ("MPF").

·    Appointment of key leadership and operational roles including, Chief Financial Officer and Chief Operating Officer.

·    Execution of major equipment supply contracts for the MPF improvement plan, notably an Engineering, Procurement, and Construction ("EPC") contract with Duo Group for the New Build Crushing, Screening and Ore Sorter Facility, a supply agreement with Gekko Systems Pty Limited for an In-Line Pressure Jig system and with McHale Komatsu for the supply of mining equipment.

Post-Financial Year Business Highlights

·    The Company has commenced operation of the fines gravity circuit and has produced tungsten and tin concentrate as part of the Company's restart plans.

·    The Company remains on track to fully complete on time and within budget its restart construction activities by the end of Q1 2027.

·    In August 2026, the Company announced an investment of up to £71 million from the UK Government's National Wealth Fund.  This investment ensured the Company is fully funded through to full production.

Financial Year Summary

·    For the financial year ended 31 March 2026, the Company reported an operating loss of £7.9 million (2025: operating loss of £19 million) reflecting the main initiatives conducted during this period, including finalising the feasibility study (published in August 2025) and pre-operational readiness activities.

·    The Group completed multiple fundraising transactions during the year: 

o  £5.2 million was raised from two tranches of Convertible Loan Notes ("CLN"s);

o  £4.0 million was committed under a bridge finance facility in December 2025. £2.0 million was drawn and repaid in February 2026;

o  The CLNs were converted into equity in December 2025 and February 2026. These conversions resulted in the recognition of a non-cash finance adjustment of £167.3 million, arising from the fair value movement on the CLNs due principally to the significant appreciation in the Company's share price relative to the CLN conversion price. The charge was entirely non-cash and had no impact on the Company's cash position;

o  £43 million (gross) of equity funds were raised in February 2026.

Jeff Court, CEO of Tungsten West, commented:

"The financial year ended 31 March 2026 was a period of significant progress for the Company.  The Company is now fully funded, following a funding journey that began during this reporting period and culminated in recent weeks with the National Wealth Fund's landmark investment of up to £71 million.  We have achieved strong progress and remain on-track and on budget for full commissioning in Q1 2027, most importantly, with no lost time injuries. We have also achieved the significant milestone of first production from our restart project already in Q3 2026.

"The financial results reported for the previous financial year reflect the strategic pivot of the Company to a development project and full-scale production early next year. As a direct result of this journey, and the conversion of the Company's Convertible Loan Notes our financials reflect a non-cash finance adjustment of £167.3 million. Importantly, this is a non-cash accounting adjustment only and has had no impact whatsoever on the Company's cash position, liquidity or ability to execute its business plan. 

"I am delighted that we are positioned on a firm financial and operational footing to support the restart of Hemerdon. Initial production is already underway, and we look forward to the progress towards full commissioning in Q1 2027 (calendar year).

"I would like to thank all our stakeholders for their continued support."

Ends

For further information, please contact:

Tungsten West Jeff Court, Chief Executive Officer Phil Povey, Chief Financial Officer Tel: [phone]	Strand Hanson Limited (Nominated Adviser and Financial Adviser) James Spinney / James Dance / Abigail Wennington Tel: [phone]
BlytheRay (Financial PR) Megan Ray / Rachael Brooks Tel: [phone] Email:  [e-mail]	Hannam & Partners (Broker) Andrew Chubb / Matt Hasson Tel: [phone]

Chairman's Statement

I am pleased to present the Group's audited results for the year ended 31 March 2026.

This was a year of significant progress for Tungsten West. The Company completed the technical and commercial work needed to establish a credible pathway to restart the Hemerdon tungsten and tin mine, and made substantial progress towards securing the funding to get there.

Alongside the updated Feasibility Study and the financing steps set out in the CEO's statement, the Group converted its outstanding convert-ible loan notes into equity during the year and completed a series of capital raisings. Together with the funding secured with National Wealth Fund Limited after the year end - comprising an equity raise of £36 million (before costs) and a 366-day, £25 million loan facility, with a £10 million uncommitted accordion - these transactions give the Company a clear route to bring Hemerdon back into production.

We have also built the team to support this: more than 150 employees have joined to support the restart, a significant proportion from the local area, with further recruitment planned as the operation expands. Phased processing activities have commenced (fines gravity circuit), and commissioning is scheduled to progress through to the first quarter of 2027.

The strategic case for Hemerdon has also strengthened. China's introduction of tungsten export controls in February 2025 tightened supply outside China, reinforcing the need for secure Western sources of critical minerals and contributing to stronger tungsten prices - a further improvement to the Project's economics.

Adrian Bougourd and Martin Wood will not be seeking re-election as Directors at the forthcoming AGM.  On behalf of our Board and share-holders, I would like to thank Adrian and Martin for their significant contribution and commitment to Tungsten West.

On behalf of the Board, I would like to thank all our stakeholders including our employees, local residents, regulators, contractors, advisers, financing partners and shareholders for their continued support.

Stephen Harrison

Non-Executive Chairman

Chief Executive Officer's Report

The financial year ended 31 March 2026 was a pivotal year for Tungsten West, as we advanced Hemerdon towards restart and strengthened the technical, operational and financial foundations needed to become a strategically important tungsten and tin producer.

Hemerdon is a rare asset: a substantial resource, a long operating life, significant existing infrastructure and a location in a stable, well-regulated jurisdiction. Few undeveloped tungsten projects globally combine scale with this level of strategic relevance. Tungsten's hardness, density and heat resistance make it essential to cutting tools, aerospace, defence and advanced manufacturing, and Western governments and industrial customers are increasingly focused on securing supply outside a small number of overseas sources.

That strategic case strengthened further during the year. China's introduction of tungsten export controls in February 2025 materially tightened supply outside China, reinforcing the need for secure Western sources and contributing to stronger tungsten prices - further improving the economic outlook for the Project.

We also made concrete progress translating that opportunity into a deliverable plan. Our updated Feasibility Study, published in August 2025, incorporated the lessons of the mine's previous operation and confirmed a revised development plan built around a new crushing, screening and ore-sorting front end, additional gravity separation equipment, refurbishment of the pre-existing mineral processing facility, and enhanced environmental mitigation.

Funding remains our most important objective, and we made substantial progress against it. During the year, the Group converted its outstanding convertible loan notes into equity and completed a series of capital raisings, which together enabled us to finalise the Feasibility Study, place orders with equipment suppliers, progress development works and advance discussions with debt providers. Following the year end, we built on this momentum: securing funding from National Wealth Fund Limited in August 2026, comprising an equity raise of £36 million (before costs) and a 366-day £25 million loan facility, with a £10 million uncommitted accordion. Together, these milestones give the Company a fully funded runway to full scale production in Q1 2027.

The strategic backdrop continues to strengthen more broadly. Governments across the UK, Europe and North America are placing growing emphasis on critical-mineral supply security, and a successful restart would give the UK a substantial domestic tungsten source and a more resilient Western supply chain. We are engaging with potential customers and partners accordingly, with an ambition to be a strategic supplier, not just a producer.

Execution is now the defining task, and it is already under way. Initial processing and commissioning activities have commenced, with commissioning scheduled to progress from Q3 2026 to completion at the end of Q1 2027. We are building an operation that is technically robust, appropriately funded, on the lowest cost quartile of global tungsten producers and built to high standards of safety and environmental performance.

Building the right team behind this restart has been as important as the technical work itself, and recruitment - drawing significantly on the local area - continues as the operation expands. Responsible development sits alongside this: mining activity affects neighbouring communities - noise, dust, traffic and change - and we take that seriously, committing to transparent engagement and appropriate independent monitoring as activity increases. Hemerdon has real potential to deliver multi-generational benefits to the South West, from skilled jobs to local procurement, training and investment.

Safety remains non-negotiable - no target or milestone takes precedence over it - and we continue to strengthen the systems, culture and accountability that underpin it, alongside our environmental and governance commitments.

We enter the next phase with a clearer strategy, a stronger financial footing and a sharper focus on delivery. The task now is to convert Hemerdon's potential into performance.

Thank you to our employees, contractors, advisers, financing partners and shareholders for their continued support and professionalism this year.

Jeffery Court

Chief Executive Officer

Consolidated Statement of Comprehensive Income

Year ended 31 March 2026

	Note	2026 £	2025 £
			Restated*
Revenue	5	601,550	-
Cost of sales		(152,053)	(244,174)
Gross profit / (loss)		449,497	(244,174)
Administrative expenses	8	(8,809,815)	(9,268,993)
Other operating income	6	420,000	6,235
Other gains/(losses)	7	35,000	(9,506,522)
Operating loss	8	(7,905,318)	(19,013,454)
Finance income	9	297,031	898,195
Finance costs	9	(167,972,454)	(6,842,326)
Net finance cost	9	(167,675,423)	(5,944,131)
Loss before tax		(175,580,741)	(24,957,585)
Income tax credit	13	134,470	264,572
Loss for the year		(175,446,271)	(24,693,013)
Total comprehensive loss		(175,446,271)	(24,693,013)
Loss attributable to:
Owners of the Company		(175,446,271)	(24,693,013)
		£	£
Basic and diluted loss per share	14	(0.12)	(0.13)

The above results were derived from continuing operations.

The notes on pages 37 to 67 are an integral part of these financial statements.

*For details of restatement please refer to note 37

Consolidated Statement of Financial Position

Year ended 31 March 2026

	Note	31 March 2026 £	31 March 2025 £ Restated*	1 April 2024 £ Restated*
Assets
Non-current assets
Property, plant and equipment	15	14,640,161	9,455,736	19,266,279
Right-of-use assets	16	1,869,677	1,984,419	1,895,584
Intangible assets	17	8,850	64,760	138,832
Mining rights assets	18	2,272,784	2,306,715	4,189,431
Deferred tax assets	13	406,931	406,931	421,818
Escrow Cash	20	14,912,042	14,633,857	13,740,012
		34,110,445	28,852,418	39,651,956
Current assets
Inventories	23	29,850	29,850	29,850
Trade and other receivables	21	12,574,406	2,986,872	2,809,893
Cash and cash equivalents	22	25,485,511	18,442	1,581,535
		38,089,767	3,035,164	4,421,278
Total assets		72,200,212	31,887,582	44,073,234
Equity and liabilities
Equity
Share capital	28	15,047,487	1,887,313	1,870,741
Share premium	29	277,030,598	51,949,078	51,949,078
Share option reserve	28	226,999	319,526	256,278
Retained earnings		(234,036,348)	(58,590,077)	(33,897,064)
Equity attributable to owners of the Company		58,268,736	(4,434,160)	20,179,033
Non-current liabilities
Loans and borrowings	25	1,742,223	1,870,366	1,803,533
Provisions	26	7,029,253	6,703,821	8,221,081
Deferred tax liabilities	13	406,931	406,931	421,818
		9,178,407	8,981,118	10,446,432
Current liabilities
Trade and other payables	24	4,648,342	2,570,049	1,754,903
Loans and borrowings	25	104,727	24,770,575	11,692,866
		4,753,069	27,340,624	13,447,769
Total liabilities		13,931,476	36,321,742	23,894,201
Total equity and liabilities		72,200,212	31,887,582	44,073,234

*For details of restatement please refer to note 37. The notes on pages 37 to 67 are an integral part of these financial statements.

The financial statements were approved by the Board on 2^nd September 2026 and signed on its behalf by:

Stephen Harrison

Chairman

Company Registration Number: 11310159

Consolidated Statement of Changes in Equity

Year ended 31 March 2026

		Share capital £	Share premium £	Share option reserve £	Retained earnings £		Total £
At 31 March 2025 (restated*)		1,887,313	51,949,078	319,526	(58,590,077)		(4,434,160)
Loss for the year		-	-	-	(175,446,271)		(175,446,271)
Total comprehensive loss		-	-	-	(175,446,271)		(175,446,271)
Conversion of convertible loan notes	25	8,181,588	189,030,853				197,212,441
New share capital subscribed net of issue costs	28	4,978,586	36,050,667	-	-		41,029,253
Share options charge		-	-	(92,527)	-		(92,527)
At 31 March 2026		15,047,487	277,030,598	226,999	(234,036,348)		58,268,736

At 01 April 2024 (as originally stated)		1,870,741	51,949,078	256,278	(32,764,067)		21,312,030
Prior year restatement					(1,132,997)		(1,132,997)
At 01 April 2024 (restated*)		1,870,741	51,949,078	256,278	(33,897,064)		20,179,033
Loss for the year (restated*)		-	-	-	(24,693,013)		(24,693,013)
Total comprehensive loss		-	-	-	(24,693,013)		(24,693,013)
New share capital subscribed		16,572	-	-	-		16,572
Share options charge		-	-	63,248	-		63,248
At 31 March 2025 (restated*)		1,887,313	51,949,078	319,526	(58,590,077)		(4,434,160)

The nature and purpose of each reserve is set out in Note 28. The notes on pages 37 to 67 are an integral part of these financial statements.

*For details of restatement please refer to note 37.

Consolidated Statement of Cash Flows

Year ended 31 March 2026

	Note	2026	2025
		£	£
			Restated*
Cash flows from operating activities
Loss for the year		(175,446,271)	(24,693,013)
Adjustments to cash flows from non-cash items
Depreciation and amortisation	8	374,943	470,036
(Gain)/Loss on disposal of tangible fixed assets	8	(35,000)	5,181
Impairment of asset under construction	7	-	9,506,522
Finance income	9	(297,031)	(898,195)
Finance costs	9	167,972,454	6,842,326
share options charge'	10	(92,527)	63,248
Impact of foreign exchange	9	(25,746)	(12,734)
Income tax credit	13	(134,470)	(264,572)
		(7,683,648)	(8,981,201)
Working capital adjustments
Decrease in trade and other receivables	21	(9,587,534)	(176,981)
Increase in trade and other payables	24	2,212,763	1,079,720
Net cash outflow from operating activities		(15,058,419)	(8,078,462)
Cash flows from investing activities
Interest received	9	18,846	4,350
Acquisitions of property, plant and equipment	15	(5,633,715)	(19,885)
Proceeds from property, plant and equipment		280,000	-
Acquisitions of intangibles	17	-	(750)
Net cash outflows from investing activities		(5,334,869)	(16,285)
Cash flows from financing activities
Interest paid	9	(155,154)	(5,766)
Proceeds from issue of ordinary shares, net of issue costs	28	41,029,253	16,572
Proceeds from the issue of convertible loan notes, net of issue costs	28	5,205,000	6,751,000
Proceeds from the issue of bridging loans, net of issues costs	25	2,000,000	-
Repayment of bridging loans	25	(2,000,000)	-
Payments to hire purchase		(6,397)	(31,873)
Payments to lease liabilities		(212,345)	(198,279)
Net cash inflows from financing activities		45,860,357	6,531,654
Net increase/(decrease) in cash and cash equivalents		25,467,069	(1,563,093)
Cash and cash equivalents at 1 April		18,442	1,581,535
Cash and cash equivalents at 31 March		25,485,511	18,442

*For details of restatement please refer to note 37

The notes on pages 37 to 67 are an integral part of these financial statements.

Major non-cash items

During the period, convertible loan notes with a carrying value of £197,212,441 immediately prior to conversion were converted into 584,831,728 ordinary shares and 490,402,989 B shares in the Company. This transaction did not involve the movement of cash and is therefore not reflected within financing activities in the Consolidated Statement of Cash Flows.

The conversion resulted in the derecognition of the convertible loan note liability of £197,212,441 and the recognition of share capital and share premium in respect of the ordinary shares and B shares issued.

Notes to the Consolidated Financial Statements

Year ended 31 March 2026

1 General information

Tungsten West plc ('the Company') is a public limited company, incorporated in England and Wales and domiciled in the United Kingdom.

The address of its registered & principal place of business is:

Hemerdon Mine

Drakelands

Plympton

Devon

PL7 5BS

United Kingdom

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Application of new and revised UK adopted International Financial Reporting Standards (UK-adopted IFRS)

New and amended Standards and Interpretations applied

The following amendments are effective for the year beginning 1 January 2025:

·   Amendments to IAS 21 - Lack of Exchangeability

The adoption of these new standards and amendments did not have a material impact on the Group.

New and revised Standards and Interpretations in issue but not yet effective

At the date of approval of these financial statements, the Company has not early adopted the following amendments to Standards and Interpretations that have been issued but are not yet effective:

Standard or Interpretation	Effective for annual periods commencing on or after
Classification & Measurement of Financial Instruments (Amendments to IFRS 9 & IFRS 7)	1 January 2026
Annual Improvements - Volume 11 (IFRS 1, 7, 9, 10 & IAS 7)	1 January 2026
IFRS 18 Presentation and Disclosure in Financial Statements-Basis for Conclusions	1 January 2027

The Group is assessing the impact of IFRS 18. The Directors do not currently expect the adoption of these standards and amendments to have a material impact on the Group's recognised assets, liabilities or profit, although additional presentation and disclosure requirements may arise.

Basis of preparation

The Group financial statements have been prepared in accordance with International Accounting Standards as adopted in the United Kingdom ('UK adopted IAS') and those parts of the Companies Act 2006 that are applicable to companies which apply UK adopted IAS.

The financial statements are presented in Sterling, which is the functional currency of the Group and Company.

Going Concern

The Group and Company financial statements have been prepared on a going concern basis, which the Directors consider to be appropriate for the reasons set out below, having given careful consideration to the Group's and Company's financial position, funding arrangements and future cash flow forecasts, covering a period of at least twelve months from the date of approval of these financial statements.

The Group's principal asset is the Hemerdon Mine (also known as Drakelands Mine), operated by Drakelands Restoration Limited. During the year ended 31 March 2026 the Group was a developer with low levels of production. A phased restart of commissioning commenced from July 2026 and will ramp up through the remainder of the calendar year and into 2027.

During the year, the Group significantly strengthened its funding position. In February 2026, the Company completed an equity fundraise of approximately £43 million (gross). Separately, the Group's outstanding Convertible Loan Notes converted into equity during the year and were accordingly extinguished, removing the Group's prior reliance on convertible loan note financing and associated short-term bridging finance. Following the year end, the Group secured further funding from National Wealth Fund Limited ("NWF"), comprising an equity raise of approximately £36 million (before expenses) and a new 366-day £25 million loan facility, with a £10 million uncommitted accordion. Together, these transactions secured the funding required for the Group's remaining project capital expenditure at Hemerdon. As at the date of these accounts, the £25 million loan facility had been drawn down in full.

The Directors have prepared detailed cash flow forecasts covering the going concern assessment period, based on the production, cost and pricing assumptions underpinning the Group's Feasibility Study, updated to reflect the phased restart plan, and the funding secured as described above. These forecasts have been sensitised for a range of downside scenarios, consistent with the sensitivity analysis performed as part of the Feasibility Study and the value in use assessment described in note 2, including delays to the production ramp-up schedule, lower than forecast metal prices and recoveries, and unfavourable movements in foreign exchange rates.

The Directors have also modelled a downside scenario addressing the risk of delay to completion of the front-end crushing circuit. Under this scenario, the Group would fall back on its existing mobile front-end crushing and in-pit crushing arrangements with a contractor - the process route already in use earlier in the year - pushing back the ramp-up of the permanent front-end by three months. This fallback route carries a higher per-tonne processing cost than the planned front-end/ore sorter route, increasing operating costs over the delay period by approximately £3 million. The Group has also modelled a corresponding pause to waste mining over the same period, which reduces drill and blast costs but is offset by increased haulage costs to the more distant processing facility under the fallback route; these two effects have been assessed as broadly offsetting.

Under each of the scenarios modelled, the Group retains sufficient liquidity throughout the going concern period, taking into account the £25 million NWF loan facility (with its £10 million uncommitted accordion) and the Group's cash resources.

The Directors have also considered the maturity of the NWF loan facility, which is repayable 366 days from drawdown, and have concluded that the Group's forecast operating cash flows from production, together with the accordion facility and the Group's ongoing relationship with NWF, provide a reasonable basis to expect that the facility can be refinanced or repaid as it falls due.

Having considered the matters set out above, the Directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the going concern assessment period. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements. This represents a change from the prior year, in which a material uncertainty relating to going concern was disclosed pending completion of the Group's longer-term funding arrangements.

Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 March 2026.

A subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries of the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed as at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, including deferred tax if required. Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised as goodwill.

Business Combinations

Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value at the acquisition date and comprises the fair value of the assets transferred, liabilities incurred to former owners of the acquiree and equity interests issued by the Group.

Identifiable assets acquired and liabilities assumed are recognised at their acquisition-date fair values, except where IFRS requires a different measurement basis.

Goodwill is measured as the excess of the aggregate of the consideration transferred, the amount of any non-controlling interest and, in a business combination achieved in stages, the fair value of the Group's previously held interest in the acquiree, over the net fair value of the identifiable assets acquired and liabilities assumed. Where the net fair value of the identifiable assets acquired and liabilities assumed exceeds the aggregate consideration transferred, the excess is recognised immediately in profit or loss as a bargain purchase gain.

Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to the owners of Tungsten West PLC, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

Potential ordinary shares are anti-dilutive when the Group reports a loss and are therefore excluded from the calculation of diluted loss per share.

Revenue recognition

Revenue comprises proceeds from the sale of tungsten and tin concentrate produced by the Group. The sale of concentrate represents a single performance obligation, which is satisfied at the point in time when control of the product transfers to the customer, typically on collection from site or on delivery, in accordance with the agreed shipping terms. Revenue is recognised at the transaction price, net of any applicable discounts, price adjustments, provisional pricing adjustments or selling fees.

Cost of sales

Cost of sales comprises all costs incurred in bringing tungsten and tin concentrate to its present location and condition and is recognised in the period in which the related revenue is recognised.

Cost of sales includes:

·      Direct mining costs, including drilling, blasting, loading and hauling of ore;

·      Processing costs, including crushing, milling, gravity separation and other beneficiation costs incurred in converting ore to saleable concentrate;

·      Directly attributable labour costs, including on-site operational and supervisory salaries, wages and related on-costs;

·      Consumables, reagents and maintenance spares consumed in mining and processing;

·      Depreciation of mining and processing property, plant and equipment, on a units-of-production or straight-line basis as appropriate to the useful economic life of the asset;

·      Site utilities, including power and water directly consumed in production.

In the prior year, the Group had not yet commenced production and generated no revenue. The costs recognised within cost of sales in that period represented the direct costs of maintaining the mine and processing facility in a state of readiness for production - principally care and maintenance of the site - which are of a comparable nature to, and precursor to, the direct production costs incurred once mining operations commenced. These costs were therefore presented on a consistent basis with the current year's cost of sales, notwithstanding the absence of revenue in that period.

Taxation

Income tax expense consists of the sum of current tax and deferred tax.

Current tax is based on taxable profit for the year. Taxable profit differs from profit as reported for accounting purposes because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. A provision is recognised for tax matters that are uncertain if it is considered probable that there will be a future outflow of funds to a tax authority. The provision is measured at the best estimate of the amount expected to become payable. The assessment is based on the judgement of management supported by the advice of tax professionals contracted by the company.

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the reporting date.

The Group recognises research and development tax credits when management considers that the claim is substantially agreed and there is no material uncertainty regarding its recovery. Generally this is considered to be upon receipt of cash.

Property, plant and equipment

Land and buildings are stated at cost less any depreciation or impairment losses subsequently accumulated (cost model). Land and buildings have been uplifted to fair value on consolidation.

Plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The asset under construction relates to costs incurred to upgrade the mineral processing facility and, in accordance with IAS 16, costs have been capitalised if it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Depreciation on the mineral processing facility will be calculated using the units of production ("UOP") method, reflecting the pattern in which the economic benefits of the asset are consumed. Under this method, the depreciable amount of the asset is allocated based on the actual production achieved in the period as a proportion of the total estimated recoverable production over the asset's useful life, capped by the estimated life of the mine. Deprecation will commence when we have successfully commissioned the mineral processing facility.

Estimated recoverable units are based on proved and probable ore reserves, adjusted for expected process recovery rates, and are reviewed at

Property, plant and equipment (continued)

least annually or when there is an indication of significant change (e.g. reserve restatement, mine plan revision, or a change in processing recovery assumptions). Changes are accounted for prospectively as a change in accounting estimate under IAS 8. Depreciation commences when the asset is available for use in the manner intended by management. i.e. when commissioning is complete and the plant is capable of operating at a level consistent with commercial production.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and assets under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land	None
Building	2% - 5% Straight Line
Furniture, fittings and equipment	5% - 20% Straight Line
Computer equipment	33% Straight Line
Motor vehicles	33% Straight Line
Other property, plant and equipment	5% - 33% Straight Line
Mineral Processing Facility	UOP

Intangible assets

Software is recognised as an intangible asset when it is probable that the expected future economic benefits attributable to the asset will flow to the Group and the cost of the asset can be measured reliably. Software is initially measured at cost, including directly attributable costs incurred in acquiring and preparing the asset for its intended use.

Following initial recognition, software is carried at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is recognised on a straight-line basis over the asset's estimated useful economic life of three years, reflecting the pattern in which the asset's future economic benefits are expected to be consumed. Software is amortised on a straight-line basis using a rate of 33%.

Mining Rights

The mining rights are subject to amortisation over the useful life of the mine which is 27 years (2025: 27 years). Amortisation will be charged from the date the mine is brought into use. Following full commissioning of the Mineral Processing Facility, the mining rights will be reclassified to property, plant and equipment, on the basis that they then form part of the broader mine asset from which future production is derived, and depletion will thereafter be charged on a units-of-production basis, consistent with the basis applied to depreciation of the Mineral Processing Facility.

Research and development activities

All research costs are expensed.

Current and non-current classification  

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no right at the end of the reporting period to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Trade receivables

Trade and other receivables where payment is due within one year do not constitute a financing transaction and are recorded at the undiscounted amount expected to be received, less attributable transaction costs. Any subsequent impairment is recognised as an expense in profit or loss.

All trade and other receivables are subsequently measured at amortised cost, net of impairment.

Trade payables

Trade and other payables are initially recognised at fair value less attributable transaction costs. They are subsequently measured at amortised cost.

Convertible debt

Convertible loan notes issued by the Group are assessed at the date of issuance to determine whether they contain liability and/or equity components in accordance with IAS 32 Financial Instruments: Presentation.

Where the convertible loan notes' conversion feature does not meet the IAS 32 "fixed-for-fixed" test (variable conversion price, capped share allocation), the instrument is classified in full as a financial liability, with no separate equity component.

The convertible loan notes are designated at fair value through profit or loss (FVTPL) on initial recognition, avoiding separate bifurcation of the embedded conversion derivative. Fair value movements are recognised in profit or loss at each reporting date.

Fair value is estimated using a probability-weighted scenario model rather than an option-pricing model, as the conversion terms mean the payoff is not dependent on future share price movements. Two outcomes are modelled: conversion into equity, and cash redemption at maturity. Expected cash flows under each scenario are probability-weighted using Management's best estimate (based on financing and operational milestones) and discounted using a rate benchmarked to the internal rate of return implicit at issuance, itself derived using this same probability-weighted approach applied to the cash proceeds received.

At each reporting date the same approach is reapplied over the shorter remaining period to maturity. Immediately before conversion, the conversion probability is updated to 100% and the discount period is shortened to the actual date of conversion.

On conversion, the convertible loan note liability is derecognised. The consideration for derecognition is measured as the fair value of the ordinary shares issued, determined by reference to the quoted market price of the Group's shares at the conversion date. Any difference between the carrying value of the liability immediately before conversion and the fair value of shares issued is recognised as a gain or loss in profit or loss. This gain or loss principally reflects movement in the Group's quoted share price between the date the fair value model's conversion assumptions were set and the actual conversion date, rather than a change in the substantive terms of the instrument.

Provisions

A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that settlement will be required, and a reliable estimate can be made of the amount. Provisions are measured at the Directors' best estimate of the expenditure required to settle the obligation at the reporting date, discounted to present value where the effect is material.

The Group recognises a provision for restoring and rehabilitating areas disturbed by its mining activities on a full life-of-mine basis, recognised when the disturbance giving rise to the obligation occurs. As the provision is measured on this basis at each reporting date, its balance moves principally through the unwinding of the discount and changes in the discount rate and inflation assumptions applied to an otherwise unchanged cost estimate; no corresponding restoration asset is recognised (see note 26 and note 37).

The underlying cost estimate is only expected to change where there is a genuine change in the scope of restoration required - for example, disturbance beyond that currently approved and estimated, a regulatory change in restoration requirements, or a cost category not contemplated in the original estimate. Management does not expect such a change in the near term, but recognises this may arise if the Group expands operations or exercises options beyond the currently approved plan.

The current mine life is 11 years, based on the mining permits currently held. Should the scope of restoration change, the corresponding cost would be capitalised within mining assets from the point the change is approved and depreciated over the mine's useful life as assessed at that time; useful life is reviewed at each reporting date and revised prospectively where a change in the approved mining plan, resource base, or permitted life extends or shortens it beyond the current 11-year estimate.

The unwinding of the discount is recognised as a finance cost. Expenditure incurred is charged against the provision when it is incurred.

Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group assesses whether it has the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct its use throughout the period of use.

As a lessee, the Group recognises a lease liability and a corresponding right-of-use asset at the lease commencement date, except for short-term leases and leases of low-value assets, for which the recognition exemptions available under IFRS 16 are applied.

The lease liability is initially measured at the present value of lease payments to be made over the lease term that are not paid at the commencement date. Lease payments included in the measurement of the lease liability comprise:

·   fixed lease payments, less any lease incentives receivable;

·   variable lease payments that depend on an index or rate;

·   amounts expected to be payable under residual value guarantees;

·   the exercise price of purchase options where the Group is reasonably certain to exercise such options; and

·   payments of penalties for terminating the lease, where the lease term reflects the exercise of a termination option.

Lease payments are discounted using the interest rate implicit in the lease where that rate can be readily determined. Where this is not readily determinable, the Group applies its incremental borrowing rate, being the rate of interest that it would have to pay to borrow, over a similar term and with similar security, the funds necessary to obtain an asset of similar value in a similar economic environment.

Subsequently, the lease liability is measured at amortised cost using the effective interest method. The carrying amount is increased to reflect interest accrued on the lease liability and reduced for lease payments made. The lease liability is remeasured when there is a change in future lease payments, a reassessment of a lease term, or a lease modification.

Right-of-use assets primarily comprise the lease relating to the Hemerdon Mine together with other property leases. Right-of-use assets are initially measured at cost, comprising:

·   the amount of the initial lease liability;

·   lease payments made at or before the commencement date less any lease incentives received;

·   initial direct costs incurred in obtaining the lease; and

·   an estimate of costs to dismantle, remove or restore the underlying asset or site on which it is located, where applicable.

Subsequently, right-of-use assets are measured at cost less accumulated depreciation and impairment losses and adjusted for certain remeasurements of the associated lease liabilities.

Right-of-use assets are depreciated on a straight-line basis from the commencement date over the shorter of the lease term and the useful life of the underlying asset. Where ownership of the underlying asset transfers to the Group at the end of the lease term, or the cost of the right-of-use asset reflects that a purchase option will be exercised, depreciation is charged over the useful life of the underlying asset.

The Group reviews right-of-use assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable.

Payments associated with short-term leases and leases of low-value assets are recognised as an expense in profit or loss on a straight-line basis over the lease term.

Inventories

Inventories are stated at the lower of cost and net realisable value on a 'first in first out' basis. Cost comprises direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable.

Cost is determined on the following basis: 

(a) Metal concentrate on hand is valued on an average total production cost method

(b) Ore stockpiles are valued at the average cost of mining and stockpiling the ore, including haulage 

(c) A proportion of related depreciation and amortisation charge is included in the cost of inventory

Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Impairment of non-current assets

Property, plant and equipment is assessed for impairment under IAS 36 at each reporting date, or when indicators of impairment exist. For this purpose, assets are grouped into cash-generating units (CGUs), being the smallest group of assets generating largely independent cash inflows. The Group has determined that the Hemerdon Mine, comprising the mining operations and mineral processing facility, is managed and generates cash flows as a single CGU, as mined ore has no realisable value independent of processing through the mineral processing facility. Where an indicator of impairment is identified, the recoverable amount of the CGU (the higher of fair value less costs of disposal and value in use) is compared to its carrying amount, with any shortfall recognised in profit or loss.

Share capital

Ordinary Shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Share options

Share options granted to shareholders classified as equity instruments are accounted for at the fair value of cash received or receivable. Share options granted to shareholders which represent a future obligation for the Company outside of its control are recognised as a financial liability at fair value through profit and loss.

Share options granted to employees are fair valued at the date of grant with the cost recognised over the vesting period. If the employee is employed in a subsidiary company, the cost is added to the investment value, in the financial statements of the parent, and the expense recognised in staff costs in the statements of the subsidiary.

Warrants issued in return for a service are classified as equity instruments and measured at the fair value of the service received. Where the service received relates to the issue of shares the cost is debited against the proceeds received in share premium.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which pension contributions are paid into a separate entity and the group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

For defined contribution plans contributions are paid into publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.

Financial instruments

Initial recognition

Financial assets and financial liabilities comprise all assets and liabilities reflected in the statement of financial position, although excluding property, plant and equipment, intangible assets, right of use assets, inventories, deferred tax assets, prepayments, deferred tax liabilities and the mining restoration provision. The Group recognises financial assets and financial liabilities in the statement of financial position when, and only when, the Group becomes party to the contractual provisions of the financial instrument.

Financial assets are initially recognised at fair value. For financial assets not measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset are added to the fair value on initial recognition.

Financial liabilities are initially recognised at fair value. For financial liabilities not measured at fair value through profit or loss, directly attributable transaction costs are deducted from the fair value of the liability on initial recognition.

Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost or fair value (either through other comprehensive income or through profit or loss).

Derecognition

Financial assets

The Group derecognises a financial asset when:

•    the contractual rights to the cash flows from the financial asset expire;

•    it transfers the right to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred; or

•    the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

On derecognition of a financial asset, the difference between the carrying amount of the asset and the sum of the consideration received is recognised as a gain or loss in the profit or loss.

Financial liabilities

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire.

Significant accounting estimates and judgements

The preparation of the financial statements requires management to make estimates and judgements that affect the reported amounts of certain financial assets, liabilities, income and expenses.

The use of estimates and judgements is principally limited to the determination of provisions for impairment and the valuation of financial instruments as explained in more detail below:

Significant accounting judgements

Impairment of non-current assets

Cash-generating units ("CGUs") are defined in the accounting policies note, with the Hemerdon Mine, comprising the mining operations and mineral processing facility, determined to be a single CGU (see note 2).

Management makes regular checks on internal and external impairment indicators in respect of the Company's investment in subsidiary undertakings, mining rights and properties. During the year ended 31 March 2026 and as of the date of this report, management did not identify any internal or external indicators triggering a detailed impairment review. The group commenced phased commissioning at the Hemerdon Mine in August 2026, in line with management's phased restart plan, and the Group secured the funding required to complete its remaining project capital expenditure through the National Wealth Fund agreement entered into following the year end. Management is confident that the carrying amount of the Company's investment in subsidiaries continues to be fully recoverable, with no impairment of any assets being deemed necessary.

Founder options

The Directors consider the non-EMI portion of the founder options meet the definition of equity in the financial statements of the Group on the basis that the 'fixed for fixed' condition is met and that they were awarded to shareholders relating to investing in the share capital of the Group. The accounting treatment has been applied in accordance with IAS 32, which requires initial recognition at fair value of consideration paid less costs. As there was no consideration received at inception, the value of the options is £nil. When exercised the shares are recognised at option price. Please see note 30.

Key sources of estimation uncertainty

Restoration provision

The restoration provision is the contractual obligation to restore the mining site back to its original state once mining ceases. The provision represents the expected outflows required to settle that obligation, discounted to present value. As restoration work will predominantly be completed towards the end of the mine's useful life, the calculation is subject to a high degree of estimation uncertainty. The key assumptions that would lead to significant changes in the provision are the discount rate, the timing of restoration relative to the term of the Mineral Lease, and the estimated restoration cost (see note 26).

A 1% change in the discount rate applied to the Group's restoration estimate would result in an impact of £1.5 million to £2.0 million (2025: £1.5 million to £2.0 million) on the restoration provision. A 5% change in the estimated restoration cost would result in an impact of £0.4 million (2025: £0.3 million) on the provision for restoration. More information on the restoration provision is disclosed in note 26.

Convertible loan notes

During the year, the convertible loan notes converted into equity shares. Immediately prior to conversion, the instrument was remeasured to fair value, with the conversion scenario weighted at 100% probability and the discount period shortened to the actual conversion date. The resulting shares were recognised in equity at fair value, determined by reference to the Company's quoted share price at the conversion date. As the notes have now converted, no liability remains at the balance sheet date and there is no ongoing estimation uncertainty associated with future settlement.

Prior to conversion, the notes were measured at fair value at each reporting date, with fair value calculated using a scenario pricing model. Management commissioned an external expert to calculate the fair value at the prior year end, with key assumptions being the probabilities assessed for each underlying scenario, the discount rate selected, and the expected dates of conversion or redemption.

Discount rates

The Group has had to assess reasonable discount rates based on market factors to use under IFRS. These discount rates have been used on the value in use model, right-of-use assets and the restoration provision.

The discount rate on the right-of-use asset is the rate for an equivalent debt instrument.

The restoration provision is discounted at the risk-free rate, being the yield on an equivalent maturity UK government bond matched to the expected date of restoration expenditure. Inflation on the underlying cost estimate is derived independently, using the difference between nominal and index-linked government bond yields at the same date, rather than being included as a separate risk premium. No further risk premium has been added to the discount rate, on the basis the original contingency allowance included within the cost estimate is considered to address the specific risks associated with this liability.

The discount rate applied to the value in use model reflects current market assessments of the time value of money and the risks specific to the Hemerdon Mine CGU that are not already reflected in the cash flow forecasts, being a post-tax discount rate derived by reference to a market participant's weighted average cost of capital.

3 Financial risk management

Group

This note presents information about the Group's exposure to financial risks and the Group's management of capital.

Credit risk

In order to minimise credit risk, the Group has adopted a policy of only dealing with creditworthy counterparties (banks and debtors) and it obtains sufficient collateral, where appropriate, to mitigate the risk of financial loss from defaults. The most significant credit risk relates to customers that may default in making payments for goods they have purchased.

To date the Group has only made a small number of sales and therefore the credit risk exposure has been low.

Liquidity risk

The Directors regularly monitor forecast and actual cash flows and to match the maturity profiles of financial assets and liabilities to ensure proper liquidity risk management for the day-to-day working capital requirements.

In the view of the Directors, the key risk to liquidity, in the medium term, is raising the additional capital required to meet its estimated Capex spend. The Group's continued future operations depend on the ability to raise sufficient capital through the issue of debt. At present the Group does not have sufficient capital to fund its estimated Capex spend therefore there is a liquidity risk which would result in the Group having to pause its future operations were it to not raise the necessary capital. At present, the Group is in discussions with financing partners to provide this additional capital.

In the short term the key risk is raising sufficient finance to fund the operational costs of the business.

Market risk

Interest rate risk

The Group is exposed to interest rate risk through the impact of rate changes on interest-bearing borrowings. The interest rates and terms of repayment are disclosed in note 23 to the financial statements. The Company's policy is to obtain the most favorable interest rates available for all liabilities. Except as outlined above, the Group has no significant interest-bearing assets and liabilities.

Foreign exchange risk

The Group in the future will also be exposed to exchange rate risk on the basis that tungsten prices are principally denominated in US Dollar. The Group will seek to manage this risk through the supply contracts it agrees with future customers.

The Group does not use any derivative instruments to reduce its economic exposure to changes in interest rates or foreign currency exchange rates at the current time.

Price risk

The Group is exposed to the price fluctuation of its primary products being tungsten and tin. Given the Group is currently in the development phase and is not yet producing any revenue, the costs of managing exposure to commodity price risk exceed any potential benefits. The Directors monitor this risk on an ongoing basis and will review this as the Group moves towards production.

Inflation risk

The Group is exposed to inflationary pressures that impact the core materials required for the operations, mainly being reagents, power and diesel costs. The Directors monitor this risk on an ongoing basis and will review this as the group moves towards production.

4 Operating segments

The Chief Economic Decision Maker of the Group is the Board of Directors which considers that the Group is comprised of one operating segment representing the Group's mining activities at the Hemerdon Mine. All operations and assets are located in the United Kingdom and all revenues are originated in the United Kingdom.

Revenue from customers accounting for 10% or more of Group revenue was as follows:

	2026 £	2025 £
Customer A	601,550	-

5 Revenue from contracts with customers

The analysis of the Group's revenue for the year from continuing operations is as follows:

	2026 £	2025 £
Tungsten	601,550	-
Sale of goods	601,550	-

6 Other income    

The analysis of the Group's other operating income for the year is as follows:

	2026 £	2025 £
Sale of scrap metal	-	3,600
Sublease rental income	-	2,635
Other contract income	420,000	-
	420,000	6,235

Other contract income of £420,000 (2025: £nil) was received during the year. The income represents consideration received under an agreement in connection with a contractor's mobilisation on site and the associated transfer of a crusher. The related gain on disposal of the crusher is presented separately within other gains and losses on disposal of assets. See note 6.

7 Other gains and losses

The analysis of the Group's other gains and losses for the year is as follows:

	2026 £	2025 £
Impairment on assets under construction (property, plant and equipment)	-	(9,506,522)
Gains on disposal of assets	35,000	-
Other gains and losses	35,000	(9,506,522)

8 Operating loss

Arrived at after charging/(crediting)

	2026 £	2025 £
Depreciation of property, plant and equipment	204,290	318,725
Depreciation of right-of-use assets	114,743	76,489
Loss on disposal of right-of-use asset	-	79,712
(Gain)/Loss on disposal of tangible fixed assets	(35,000)	5,181
Impairment of asset under construction assets and deposits	-	9,506,522
Amortisation of intangibles	55,910	74,822
Staff costs	2,587,137	2,481,436

9 Finance income and costs

	2026 £	2025 £
Finance income on financial instruments measured at amortised cost:
Notional interest income on the escrow funds receivable	278,185	893,845
Other interest income	18,846	4,350
	297,031	898,195
Finance costs on financial instruments measured at amortised cost:
Interest expense on other financing liabilities	(107,849)	(111,491)
Interest expense on bridging loan	(150,000)	-
Notional cost on the restoration provision	(359,363)	(365,456)
Bank charges	(5,155)	(5,766)
Foreign exchange losses	(25,746)	(12,734)
Finance costs on financial instruments measured at fair value through profit or loss:
Fair value movement in convertible loan notes designated fair value through profit and loss	(167,324,341)	(6,346,879)
Total finance costs	(167,972,454)	(6,842,326)
Net finance costs	(167,675,423)	(5,944,131)

10 Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

	2026 £	2025 £
Wages and salaries	2,280,452	2,074,586
Social security costs	312,649	253,935
Pension costs, defined contribution scheme	86,563	92,332
Share based payment	-	63,248
Forfeiture of share options	(92,527)	-
	2,587,137	2,484,101

The average number of persons employed by the Group (including Directors) during the year, analysed by category, was as follows:

	2026 No.	2025 No.
Project, maintenance, administration and support	32	26
Directors	9	6
	41	32

11 Directors' remuneration

The Directors' remuneration for the year was as follows:

	2026 £	2025 £
Remuneration	770,949	705,726
Pension contribution	22,729	22,541
Benefits in kind	-	1,489
Total cash remuneration	793,678	729,756
Total remuneration	793,678	729,756

Included in the remuneration above was £nil (2025: £nil) paid in shares rather than cash.

Remuneration by each Director is as follows:

	2026 Salary £		2026 Pension £	2026 Total £
Richard Maxey		29,333	-	29,333
Alistair Stobie		89,425	3,646	93,071
David Cather	29,333		-	29,333
Martin Wood	32,666		-	32,666
Kevin Ross	29,333		-	29,333
Jeffery Court**	350,000		17,500	367,500
Guy Edwards	65,333		-	65,333
Philip Povey	65,526		1,583	67,109
Stephen Harrison	80,000		-	80,000
	770,949		22,729	793,678

** Denotes the highest paid Director.

Alistair Stobie and Philip Povey were only partly employed as a director during the year. All directors salaries represent short term employment benefits whilst pension represents long term. There were no share option costs during the year attributable to the directors.

Directors' interests in share options and warrants are disclosed in the Directors' Report. Please see page 26.

	2025 Salary £		2025 Pension £	2025 Benefits £	2025 Total £
Richard M Maxey		24,000	-	-	24,000
Alistair Stobie		175 916	8,046	-	183,962
David Cather	45,000		-	-	45,000
Martin Wood	29,000		-	-	29,000
Kevin Ross	24,000		-	-	24,000
Jeffery Court	171,410		4,375	-	175,785
Neil Gawthorpe**	202,400		10,120	1,489	214,009
Guy Edwards	24,000		-	-	24,000
Stephen Harrison	10,000		-	-	10,000
	705,726		22,541	1,489	729,756

** Denotes the highest paid Director.

Directors' interests in share options and warrants are disclosed in the Directors' Report.

12 Auditors' remuneration

	2026 £	2025 £
Audit of these financial statements (predecessor auditor)	-	71,000
Audit of these financial statements (current auditor)	130,000	-
Other fees to auditors
Audit of subsidiary financial statements and other assurance services (previous auditor)	-	82,900
Total Auditors' Remuneration	130,000	153,900

13 Income tax

Tax charged/(credited) in the income statement:

	2026 £	2025 £
Current taxation
Adjustments in respect of prior periods	(134,470)	(264,572)

The tax on profit for the year is higher (2025: higher) than the standard rate of corporation tax in the UK of 25% (2025: 25%). The differences are reconciled below:

	2026 £	2025 £
Loss before tax	(175,580,741)	(24,957,585)
Corporation tax at standard rate	(43,895,185)	(6,239,396)
Fixed asset differences	(10,178)	2,433,186
Increase from effect of expenses not deductible in determining taxable profit (tax loss)	42,159,453	1,663,040
Other differences	(27,355)	750
Surrender of tax losses for R&D tax credit refund	(107,416)	(264,572)
Adjustments in respect of prior periods (deferred tax)	7,744	-
Decrease/(increase) from tax losses for which no deferred tax asset was recognised	1,738,467	2,142,420
Total tax credit	(134,470)	(264,572)

Deferred tax

Group

	2026 Intangibles £	2026 Tangibles £	2026 Losses £	2026 Total £
At 1 April 2025 restated*	-	406,931	(406,931)	-
Charged to profit and loss	-	-	-	-
At 31 March 2026	-	406,931	(406,931)	-

The net deferred tax of £nil is made up of a liability of £406,930 and asset of £406,930. The unrecognised deferred tax asset for carried forward losses at 31 March 2026 was £12,590,909

The rate used for the deferred tax is 25% (2025: 25%).

	2025 Intangibles £	2025 Tangibles £	2025 Losses £	2025 Total £
At 1 April 2024 restated*	-	421,818	(421,818)	-
Charged to profit and loss	-	(14,887)	14,887	-
At 31 March 2025 restated*	-	406,931	(406,931)	-

The net deferred tax of £nil is made up of a liability of £406,930 and asset of £406,930. The unrecognised deferred tax asset for carried forward losses at 31 March 2025 was £10,281,434.

The Group has assessed the potential impact of the OECD Pillar Two global minimum tax rules and the legislation enacted in the jurisdictions in which it operates. Based on this assessment, the Group does not expect Pillar Two legislation to have a material impact on its financial position, results of operations or cash flows. The Group has applied the temporary mandatory exception under IAS 12 from recognising and disclosing deferred tax assets and liabilities related to Pillar Two income taxes.

*For details of restatement please refer to note 37.

14 Earnings per share

Basic and diluted loss per share is calculated as follows:

	2026 £	2025 £
		Restated*
Loss for the year	(175,446,271)	(24,693,013)
Weighted average number of shares in issue	1,504,748,756	188,731,307
Basic and diluted loss per share	(0.12)	(0.13)

The diluted loss per share calculations exclude the effects of share options, warrants and convertible debt on the basis that such future potential share transactions are anti-dilutive. Information on share options and warrants is disclosed in note 30.

*For details of restatement please refer to note 37.

15 Property, plant and equipment

See note 2 for accounting policy on property, plant and equipment.

Group	Land and buildings £	Furniture, fittings and equipment £	Computer equipment £	Motor vehicles £	Other property, plant and equipment £	Asset under construction £	Total £
Cost or valuation
At 1 April 2024	5,189,361	114,762	312,363	141,500	251,181	16,411,032	22,420,199
Additions	-	-	-	-	-	19,885	19,885
Disposal	-	-	(23,478)	-	-	-	(23,478)
At 31 March 2025	5,189,361	114,762	288,885	141,500	251,181	16,430,917	22,416,606
Additions	-	1,021	28,068	-	-	5,604,626	5,633,715
Disposal	-	-	-	-	-	(245,000)	(245,000)
At 31 March 2026	5,189,361	115,783	316,953	141,500	251,181	21,790,543	27,805,321
Depreciation
At 1 April 2024	445,117	35,298	183,574	82,130	140,931	2,266,870	3,153,920
Charge for the year	105,428	22,951	89,376	46,695	54,275	-	318,725
Disposal	-	-	(18,297)	-	-	-	(18,297)
Impairment	-	-	-	-	-	9,506,522	9,506,522
At 31 March 2025	550,545	58,249	254,653	128,825	195,206	11,773,392	12,960,870
Charge for the year	105,429	22,675	34,753	12,675	28,758	-	204,290
At 31 March 2026	655,974	80,924	289,406	141,500	223,964	11,773,392	13,165,160
Carrying amount
At 31 March 2026	4,533,387	34,859	27,547	-	27,217	10,017,151	14,640,161
At 31 March 2025	4,638,816	56,513	34,232	12,675	55,975	4,657,525	9,455,736
At 31 March 2024	4,744,244	79,464	128,789	59,370	110,250	14,144,162	19,266,279

Impairment - Asset under construction

The amount of impairment loss included in profit and loss is £nil (2025: £9,506,522). The Group has previously capitalised all costs to Asset Under Construction that relate to the ongoing project to upgrade the processing plant and mine site. The impairment in 2025 principally related to consulting and design work for a new front-end crushing circuit undertaken in 2021/2022 and 2022/2023 which will not now be implemented.

16 Right-of-use assets

	Property £	Total £
Cost or valuation
At 1 April 2024	2,334,763	2,334,763
Additions	165,324	165,324
Write off	(79,712)	(79,712)
At 31 March 2025	2,420,375	2,420,375
At 31 March 2026	2,420,375	2,420,375
Depreciation
At 1 April 2024	439,179	439,179
Charge for the year	76,489	76,489
Write off	(79,713)	(79,713)
At 31 March 2025	435,955	435,955
Charge for the year	114,743	114,743
At 31 March 2026	550,699	550,699
Carrying amount
At 31 March 2026	1,869,677	1,869,677
At 31 March 2025	1,984,419	1,984,419

Depreciation on right-of-use assets charged through the profit and loss totals £114,742 (2025: £76,489). Interest expense on lease liabilities charged through the profit and loss totals £107,849 (2025: £111,491). Certain assets held under right-of-use leases are secured by charges held in favour of Hargreaves (UK) Services Limited or the Trustees of Newnham Estate Trust.

17 Intangible assets

Group				Software £	Total £
Cost
At 1 April 2024 (restated*)				231,474	231,474
Additions				750	750
At 31 March 2025 (restated*)				232,224	232,224
At 31 March 2026				232,224	232,224
Amortisation
At 1 April 2024				92,642	92,642
Amortisation charged to the profit and loss				74,822	74,822
At 31 March 2025				167,464	167,464
Amortisation charged to the profit and loss				55,910	55,910
At 31 March 2026				223,374	223,374

Carrying amount
At 31 March 2026			8,850	8,850
At 31 March 2025 (restated*)			64,760	64,760
At 31 March 2024 (restated*)			138,832	138,832

Software amortisation of £55,910 (2025: £74,822) has been charged to the profit and loss presented in administrative expenses.

18 Mining rights assets

Group				Mining rights £	Total £
Cost & carrying amount
At 1 April 2024 (restated*)				4,189,431	4,189,431
Additions				-	-
Decrease in restoration provision capitalised against mining rights				(1,882,716)	(1,882,716)
At 31 March 2025 (restated*)				2,306,715	2,306,715
Increase in restoration provision capitalised against mining rights				(33,931)	(33,931)
At 31 March 2026				2,272,784	2,272,784

The mining rights will begin to be amortised on a units-of-production basis over proved and probable reserves once mining operations restart. Following full commissioning of the Mineral Processing Facility, the mining rights will be reclassified from intangible assets to property, plant and equipment, on the basis that they then form part of the broader mine asset from which future production is derived. See note 2 for more details.

Recoverability of Mining Assets

Management makes regular checks on internal and external impairment indicators. During the year ended 31 March 2026 and as of this report date, Management did not note any internal or external indicators triggering a detailed impairment review. Management is confident on the carrying amounts of its subsidiaries being fully recoverable, with no impairment of any assets being deemed necessary.

*For details of restatement please refer to note 37.

19 Investments

Group subsidiaries

Details of the Group subsidiaries as at 31 March 2026 are as follows:

			Proportion of ownership interest and voting rights held
Name of subsidiary	Principal activity	Registered office	2026	2025
Drakelands Restoration Limited* Company number 11854467	Mining of tungsten and tin	Hemerdon Mine. Drakelands, Plympton, Devon United Kingdom PL7 5BS England and Wales	100%	100%
Tungsten West Services Limited** Company number 12430582	Provision of services to the Group	Hemerdon Mine. Drakelands, Plympton, Devon United Kingdom PL7 5BS England and Wales	100%	100%
Aggregates West Limited** Company number 12575686	Sales of aggregates	Hemerdon Mine. Drakelands, Plympton, Devon United Kingdom PL7 5BS England and Wales	100%	100%

*  Indicates direct investment of Tungsten West plc in the subsidiary.

** Tungsten West Services Limited and Aggregates West Limited are exempt from the Companies Act 2006 requirements relating to the audit of their individual accounts by virtue of Section 479A of the Act as Tungsten West  plc has guaranteed the subsidiary company under Section 479C of the Act.

20 Escrow Cash

	31 March 2026 £	31 March 2025 £
		Restated*
Non-current financial assets
Escrow Cash (held in escrow)	14,912,042	14,633,857

The Group holds funds with an escrow agent held on trust in connection with the Group's restoration obligations in respect of the Hemerdon Mine. The funds are held partly in a fixed-term deposit account and partly in a current account and are not available for the Group's general corporate use.

The escrow balance is recognised as a financial asset under IFRS 9 and is measured at amortised cost, being the cash balance held by the escrow agent plus accrued interest income. As the balance represents actual cash deposits held on the Group's behalf rather than a long-term receivable subject to significant discounting, no separate discount unwind is recognised.

Interest income is recognised as it accrues on the underlying deposit.

21 Trade and other receivables

	31 March 2026 £	31 March 2025 £
Trade receivables	346	5,074
Deposits	10,642,212	2,765,284
Prepayments	107,340	145,317
Other receivables	1,824,508	71,197
	12,574,406	2,986,872

The increase in deposits and other receivables during the year primarily reflects deposits paid against capital expenditure purchase orders placed in connection with the plant rebuild, together with a corresponding increase in VAT recoverable as a result of the increased level of capital spend.

The average credit period on sales of goods is 30 days (2025: 30 days). No interest is charged on outstanding trade receivables. The carrying amount of trade and other receivables approximates the fair value.

As the Group is in the early phases of operation and making a few minor sales, expected credit losses are being considered on a customer-by-customer basis. At the year-end, trade receivables include a provision of £66,751 (2025: £66,751).

22 Cash and cash equivalents

	31 March 2026 £	31 March 2025 £
Cash at bank	25,485,511	18,442

23 Inventories

	31 March 2026 £	31 March 2025 £
Inventories	29,850	29,850

24 Trade and other payables

	31 March 2026 £	31 March 2025 £
Trade payables	1,861,191	1,177,693
Accrued expenses	2,616,051	1,089,820
Social security and other taxes	155,255	284,625
Outstanding defined contribution pension costs	15,845	17,744
Other payables	-	167
	4,648,342	2,570,049

Trade payables and accruals comprise amounts outstanding for trade purchases and ongoing costs. The average credit period for trade purchases is 45 days (2025: 45 days). No interest is charged on overdue amounts.

The carrying amount of trade and other payables approximates the fair value.

25 Loans and borrowings

	31 March 2026 £	31 March 2025 £
Non-current loans and borrowings
Lease liabilities	1,742,223	1,863,807
Hire purchase	-	6,559
Total Non-current loans and borrowings	1,742,223	1,870,366

	31 March 2026 £	31 March 2025 £
Current loans and borrowings
Lease liabilities	79,477	62,387
Hire purchase	25,250	25,088
Convertible loan notes	-	24,683,100
Total Current loans and borrowings	104,727	24,770,575

Lease liabilities

	2026 Future lease payments £	2026 Discount £	2026 Lease liability £
Within one year	184,309	(104,832)	79,477
In two to five years	405,080	(295,509)	109,571
In over five years	3,329,803	(1,697,151)	1,632,652
	3,919,193	(2,097,493)	1,821,700

	2025 Future lease payments £	2025 Discount £	2025 Lease liability £
Within one year	163,664	(101,277)	62,387
In two to five years	459,003	(276,523)	182,480
In over five years	2,908,135	(1,226,808)	1,681,327
	3,530,802	(1,604,608)	1,926,194

	2026 £	2025 £
Opening lease liability as at 1 April	1,926,194	1,852,083
Revaluation	-	165,324
Interest charged in statement of comprehensive income	101,747	107,066
Lease payments	(206,241)	(198,279)
Closing lease liability as at 31 March	1,821,700	1,926,194

The lease liabilities are presented as follows:

	31 March 2026 £	31 March 2025 £
Current liabilities	79,477	62,387
Non-current liabilities	1,742,223	1,863,807
	1,821,700	1,926,194

Convertible loan notes

Throughout the last three financial years the Group has issued 8 tranches of Convertible Loan Notes with a nominal value of £22,312,043 of which £5,205,000 was issued in the current year. The notes bore interest at 20% per annum and were secured by a charge over certain assets of the Group held by the security agent, Kroll Trustee Services Limited.

During July 2023 the Group notified Lansdowne Partners, the majority holder, of multiple breaches of the terms of the loan, arising from measures taken by management to conserve cash flow to match available sources of finance. The note holders agreed successive waivers of these breaches.

On 31 December 2025, the Company completed a partial conversion of the Notes at a price of 3 pence per ordinary share, issuing 584,831,728 new Ordinary Shares to noteholders. Any conversion that would have triggered an obligation under Rule 9 of the City Code on Takeovers and Mergers was restricted: Lansdowne Partners and the two key members of the Drakewood Concert Party were capped such that each held approximately 29.90% of the Company's issued share capital immediately following the conversion, with a Rule 9 waiver not being available in the circumstances.

The remaining £12.9 million of Notes held by these parties (including accrued interest, held by Lansdowne, Drakewood Investments Limited and Henry Maxey) was instead converted into 490,402,989 non-voting B-Shares, following shareholder approval of this new class of capital, extinguishing the Notes in full. See note 28 for details of B-shares.

As the instrument was designated as a single instrument at fair value through profit or loss, comprising a host liability and an embedded derivative option, the liability continued to be fair valued through profit or loss up to the date of conversion. On conversion, the liability was derecognised and equity recognised at the same fair value, such that no separate gain or loss arose on conversion itself, distinct from the fair value movements recognised in the period up to that date.

Movement in liability

	31 March 2026 £	31 March 2025 £
Brought forward	24,683,100	11,587,221
Cash received (Convertible Loan Notes)	5,205,000	6,751,000
Fair value movement in year	167,324,341	6,346,879
Conversion	(197,212,441)	(2,000)
Carried forward	-	24,683,100

The fair value movement of £167,324,341 (2025: £6,346,879) in the year principally reflects the remeasurement of the Notes to fair value immediately prior to conversion, with the conversion scenario weighted at 100% probability, the discount period shortened to the actual conversion date, and fair value determined by reference to the Company's quoted share price at the conversion date. On conversion, the liability of £197,212,441 (2025: £2,000) was derecognised and equity recognised at the same fair value, such that no separate gain or loss arose on conversion itself, distinct from the fair value movements recognised in the period up to that date.

Bridge Facility

In order to provide sufficient working capital to secure the Project Financing commitments and continue to progress the Project's development, the Company agreed a bridge loan facility of up to £4.0 million with Lansdowne Partners (UK) Ltd, Drakewood Investments Limited and Henry Maxey, being the three largest noteholders (or affiliated entities) and, as such, related parties of the Company.

The facility was unsecured and accrued interest at 15% per annum, capitalising monthly (increasing by 2% in the event of default), and was repayable on the earlier of six months from drawdown or completion of any debt or equity raise equal to or greater than the facility balance, with any smaller equity raise applied as a prepayment. The facility was available in two tranches of £2.0 million each, the first available immediately and the second from 31 January 2026 subject to conditions including completion of the Conversion process of the Notes.

The Company drew down only the first tranche of £2.0 million ("Tranche 1"), which was used to fund project restart costs included within the Feasibility Study. Tranche 1, together with accrued interest, was repaid from the net proceeds of the fundraise.

26 Provisions

Group

	Restoration provision £	Total £
At 1 April 2025 (restated*)	6,703,821	6,703,821
Change in inflation and discount rate	(33,931)	(33,931)
Increase due to passage of time or unwinding of discount	359,363	359,363
At 31 March 2026	7,029,253	7,029,253
Non-current liabilities	7,029,253	7,029,253

	Restoration provision £	Total £
At 1 April 2024 (restated*)	8,221,081	8,221,081
Change in inflation and discount rate	(1,882,716)	(1,882,716)
Increase due to passage of time or unwinding of discount	365,456	365,456
At 31 March 2025 (restated*)	6,703,821	6,703,821
Non-current liabilities	6,703,821	6,703,821

This provision is for the obligation to restore the mine to its original state once mining operations cease, discounted back to present value based on the term of the Mineral Lease. The Directors' cost estimate is based on the original technical assessment of restoration costs commissioned for the site, adjusted to remove the inflation and VAT embedded within that estimate: prior to inflation, this real cost base is £8,208,833 (2025: £8,208,833), comprising direct costs and a contingency allowance.

The provision has been discounted using a nominal discount rate that reflects current market assessments of the time value of money, being the yield on UK government bonds matched to the expected date of expenditure. Inflation on the cost base is derived independently, using the difference between nominal and index-linked UK government bond yields at the same date, rather than being included as a separate assumption. The ultimate costs to restore the mine remain uncertain, and cost estimates can vary in response to many factors, including the extent and cost of rehabilitation activities, technological and regulatory change, and cost increases outside of general inflation.

Management has considered these risks and concluded that the original contingency allowance included within the cost base continues to represent an appropriate allowance for this uncertainty, rather than applying a separate risk premium to the discount rate; this treatment will be kept under review. The discount rate used was 5.65% (2025: 5.4%), with inflation derived from market gilt yields at each reporting date rather than a fixed assumed range, and restoration expenditure is assumed to occur towards the end of the Mineral Lease's term, rather than by reference to an estimated mining period based on the site's original operator's business plan. At the reporting date, these assumptions represent management's best estimate of the present value of the future restoration costs.

27 Retirement benefits

Defined contribution pension scheme

The Group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Group to the scheme and amounted to £86,563 (2025: £92,332).

Contributions totaling £15,845 (2025: £17,744) were payable to the scheme at the end of the year and are included in creditors.

28 Share capital

Allotted, called up and fully paid shares

	31 March 2026		31 March 2025
	No.	£	No.	£
Ordinary Shares of £0.01 each	1,247,672,923	12,476,729	188,731,307	1,887,313
B shares of £0.01 each	257,075,833	2,570,758	-	-

The holders of Ordinary Shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All Ordinary Shares rank equally with regard to the Company's residual assets.

Following the partial conversion of the Convertible Loan Notes on 31 December 2025, the Company issued 490,402,989 B Shares.

The B Shares carry the same economic rights as Ordinary Shares, including in respect of dividends, on a winding up, and in a takeover situation, and rank pari passu with the Ordinary Shares, but carry no right to vote at general meetings. They are transferable but are not listed or admitted to any trading facility.

B Shares convert into Ordinary Shares on a one-for-one basis at the holder's election, subject to the holder (together with any transferee and persons acting in concert) remaining below the mandatory offer threshold under Rule 9 of the City Code, or the Company ceasing to be subject to the Code; a holder may also elect to convert sufficient B Shares to exceed that threshold where it wishes to make a mandatory offer in compliance with the Code.

During the year, 233,327,156 B Shares were converted into Ordinary Shares leaving 257,075,833 B Shares in issue at 31 March 2026.

The B Shares, comprising the core settlement tranche and the Additional B Shares, have been classified as equity instruments in accordance with IAS 32, on the basis they carry no obligation to deliver cash, no mandatory redemption feature, and convert into Ordinary Shares on a fixed one-for-one basis.

A reconciliation of the number of shares outstanding at the end of each year is presented as follows:

	31 March 2026		31 March 2026		31 March 2025	31 March 2025
	Ordinary Shares		B shares		Ordinary Shares	B Shares
Number of shares brought forward		188,731,307	-		187,074,111	-
Issue of ordinary shares, founder share incentives, on 22 May 2024 at £0.01 per share		-	-		1,657,196	-
Issue of ordinary shares, founder share incentives, on 24 December 2025 at £0.01 per share		1,657,196	-		-	-
Issue of ordinary shares in respect of convertible loan note conversion, on 06 January 2026		584,831,728	-		-	-
Issue of B shares in respect of convertible loan note conversion, on 03 February 2026		-	490,402,989		-	-
Issue of Ordinary shares, following the equity raise, on 11 February 2026		100,000,000	-		-	-
Issue of Ordinary shares, following the equity raise, on 27 February 2026		139,125,536	-		-	-
Issue or Ordinary shares, following the conversion of B shares, on 24 February 2026		199,520,870	(199,520,870)		-	-
Issue or Ordinary shares, following the conversion of B shares, on 17 March 2026		33,806,286	(33,806,286)		-	-
Number of shares carried forward		1,247,672,923	257,075,833		188,731,307	-

A reconciliation of the cash and non-cash movement of Share Capital is presented as follows

	31 March 2026		31 March 2026		31 March 2026	31 March 2026
	Ordinary Shares		B shares		Cash	Non Cash
	Number		Number		£	£
Issue of ordinary shares, founder share incentives, on 24 December 2025 at £0.01 per share		1,657,196	-		16,572	-
Issue of ordinary shares in respect of convertible loan note conversion, on 06 January 2026		584,831,728	-		-	67,255,649
Issue of B shares in respect of convertible loan note conversion, on 03 February 2026		-	490,402,989		-	129,956,792
Issue of Ordinary shares, following the equity raise, on 11 February 2026		100,000,000	-		18,000,000	-
Issue of Ordinary shares, following the equity raise, on 27 February 2026		139,125,536	-		25,042,596	-
Issue costs from equity raise		-	-		(2,029,915)	-
Issue or Ordinary shares, following the conversion of B shares, on 24 February 2026		199,520,870	(199,520,870)
Issue or Ordinary shares, following the conversion of B shares, on 17 March 2026		33,806,286	(33,806,286)		-	-
Total movement during the year		1,058,941,616	257,075,833		41,029,253	197,212,441

During the year the Company issued 1,058,941,616 Ordinary shares (2025: 1,657,196) and 490,402,989 B shares (2025: nil). The charge to share capital and premium comprised £41,029,253 cash and £197,212,441 non-cash on conversion of convertible loan notes.

Of the B shares issued, 33,806,286 were converted into Ordinary shares on 17 March 2026 for nil consideration. This represents a movement between share classes rather than a new issue of capital, and has been excluded from the cash and non-cash totals above. As a result, 257,075,833 B shares remained in issue at 31 March 2026.

29 Reserves

Share premium

Share premium represents the excess of consideration received over the nominal value of shares issued, net of issue costs.

Share option reserve

The share option reserve represents the cumulative fair value of share options granted by the Group that have been recognised in accordance with IFRS 2. The reserve increases as the related expense is recognised over the vesting period and is transferred within equity upon exercise, lapse or expiry of the awards.

Retained earnings

Retained earnings represents cumulative profits and losses recognised in the consolidated income statement, less dividends paid and other distributions to shareholders.

30 Share-based payments

Founder share incentives - Details and movements

The founder shareholders have a right to receive shares at a nominal value once certain milestones are hit.

The movements in the number of share options during the year were as follows:

	31 March 2026 No.	31 March 2025 No.
Outstanding, start of year	16,571,952	18,229,148
Exercised during the year	(1,657,196)	(1,657,196)
Outstanding, end of year	14,914,756	16,571,952

Upon admission to AIM, the original founder agreement was terminated and the Company granted replacement founder options to the founder shareholders with effect from admission.

The founder options meet the definition of equity in the financial statements of the Company on the basis that the 'fixed for fixed' condition is met. No consideration was received for the founder options at grant date, therefore no accounting for the issue of the equity instruments is required under IFRS. On exercise, the shares are recognised at the fair value of consideration received, being the option price of £0.01.

EMI share options - Details and movements

Share options have been issued to key employees as an incentive to stay with the Company. These options can be exercised within four years following the grant date once the option has vested.

The movements in the number of share options during the year were as follows:

	31 March 2026 No.	31 March 2025 No.
Outstanding, start of year	400,002	400,002
Outstanding, end of year	-	400,002

Share options have been valued using the Black Scholes model. Inputs to the pricing model were as follows:

Date of grant	2022
Share price at date of grant	£0.45 - £0.60
Exercise price	£0.01 - £0.45
Risk-free interest rate	1.5%
Expected life of options	1-4 years
Volatility	33%

Volatility has been estimated based upon observable market volatilities of similar entities.

The exercise price of share options outstanding at 31 March is £0.45 (2025: £0.45) and their remaining contractual life is estimated at 24 months (2025: 24 months).

	31 March 2026		31 March 2025
	Average Exercise Price £	Options	Average Exercise Price £	Options
Outstanding, start of year	0.45	400,002	0.37	1,533,335
Lapsed during the year	(0.45)	(400,002)	(0.34)	(1,133,333)
Outstanding, end of year	-	-	0.45	400,002

CSOP share options - Details and movements

Share options have been issued to key employees as an incentive to stay with the Company. These options can be exercised within ten years following the grant date once the option has vested.

	31 March 2026 No.	31 March 2025 No.
Outstanding, start of year	333,330	333,330
Lapsed during the year	(116,666)	-
Outstanding, end of year	216,664	333,330

Share options have been valued using the Black Scholes model. Inputs to the pricing model were as follows:

Date of grant	2023
Share price at date of grant	£0.275
Exercise price	£0.275
Risk-free interest rate	3.5%
Expected life of options	3 years
Volatility	62%

Volatility has been estimated based upon observable market volatility of Tungsten West PLC.

The exercise price of share options outstanding at 31 March was £0.275 (2025: £0.275) and their remaining contractual life was 6 months (2025: 6 months). The options lapse after 7 years and 6 months from the balance sheet date (2025: 7 years and 6 months).

	31 March 2026		31 March 2025
	Average Exercise Price £	Options	Average Exercise Price £	Options
Outstanding, start of year	0.275	333,330	0.275	333,330
Outstanding, end of year	0.275	216,664	0.275	333,330

The total amount recognised in profit or loss in respect of share-based payment arrangements was a net credit of £92,527 (2025: charge of £60,583), comprising a credit arising on the forfeiture of previously expensed share options during the year (2025: an expense recognised in respect of options vesting over the period).

31 Commitments

Capital commitments

As at 31 March 2026 the Group contracted to purchase plant and machinery amounting to £nil (2025: £1,178,774). Of this an amount of £nil (2025: £123,320) is dependent on the commencement of mining operations. As at 31 March 2026 the Group contracted to purchase buildings amounting to £2,550,000 (2025: £nil).

Other financial commitments

The total amount of other financial commitments not provided in the financial statements was £5,550,000 (2025: £8,329,000), comprising of:

£1,000,000 payable in respect of a prepaid royalty, conditional on the commencement of mining operations;

£1,000,000 further committed payment to the funds held in the Escrow Account under the Escrow Agreement;

£2,550,000 payable in respect of property transactions; and

£1,000,000 payable to the mining contractor under the Mining Services Contract.

Of the above, £nil (2025: £3,000,000) is payable between one and five years after mining operations commence, and £5,550,000 is payable within one year (2025: £5,329,000).

Subsequent to the year end, the prepaid royalty of £1,000,000 was paid as a condition of restarting mining operations; the restoration top-up of £1,000,000 remains committed, payable within 30 days of reaching financial close of the debt facility; of the £2,500,000 property commitment, £1,100,000 has completed, with £1,400,000 remaining under contractual negotiation; and the commitment to the mining contractor was settled following termination of the Mining Services Contract. See note 36 for more details.

Contingent liabilities

As at 31 March 2026 the Group had an obligation to dispose of waste materials found onsite. It is the intention of management to dispose of the waste through the onsite Mine Waste Facility. If external disposal is required, the Company would incur third party disposal fees estimated at £1,000,000 (2025: £700,000). As third-party costs were not deemed probable no provision is included in the financial statements but are considered to represent a contingent liability at the year end.

As at 31 March 2025, the Group was liable for payment of any withholding tax arising on the convertible loan notes then in issue, and had estimated the contingent liability, based on interest accrued to that year-end, at £1,000,000, on the basis that it considered the likelihood of a withholding tax liability arising as unlikely and accordingly made no provision. During the year, the convertible loan notes converted into equity, and as at 31 March 2026 the Group has no outstanding convertible loan notes and therefore no contingent withholding tax liability in respect of them (2025: £1,000,000).

32 Reconciliation of liabilities arising from financing activities

	At 1 April 2025 £	Interest Accrued £		Financing cash flows £		New finance £		Repayments £	Fair value movement (P&L) £		Other changes £	At 31 March 2026 £
Lease liabilities	1,957,841	-		(212,639)		-		-	-		101,748	1,846,950
Convertible loan notes	24,683,100	-		-		5,205,000		-	167,324,341		(197,212,441)	-
Bridging loan		250,000		(250,000)		2,000,000		(2,000,000)	-		-	-
	26,640,941	250,000		(462,639)		7,205,000		(2,000,000)	167,324,341		(197,110,693)	1,846,950

	At 1 April 2024 £	Financing cash flows £	New finance £	Other changes £	At 31 March 2025 £
Lease liabilities	1,909,178	(227,792)	-	276,455	1,957,841
Convertible loan notes	11,587,221	-	6,751,000	6,344,879	24,683,100
	13,496,399	(227,792)	6,751,000	6,621,334	26,640,941

33 Classification of financial and non-financial assets and liabilities

The classification of financial assets and liabilities for the year ending 31 March 2026 was as follows:

	2026 Financial assets at amortised cost £	2025 Financial assets at amortised cost £	2026 Financial assets at FVTPL £	2025 Financial assets at FVTPL £
Assets
Non-current assets
Escrow Cash	14,912,042	14,633,857	-	-
Current assets
Trade and other receivables	12,574,406	2,986,872	-	-
Cash and cash equivalents	25,485,511	18,442	-	-
	52,971,959	17,639,171	-	-

	2026 Financial liabilities at amortised cost £	2025 Financial liabilities at amortised cost £	2026 Financial liabilities at FVTPL £	2025 Financial liabilities at FVTPL £
Liabilities
Non-current liabilities
Loans and borrowings	(1,742,223)	(1,870,366)	-	-
Current liabilities
Trade and other payables	(4,648,341)	(2,570,049)	-	-
Loans and borrowings	(104,727)	(87,475)	-	-
Convertible loan notes			-	(24,683,100)
	(6,495,291)	(4,527,890)	-	(24,683,100)

Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis

IFRS 13 requires the provision of information about how the company establishes the fair values of financial instruments. Valuation techniques are divided into three levels based on the quality of inputs:

•  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

•  Level 2 inputs are inputs other than quoted prices included in level 1 that are observable, directly or indirectly.

•  Level 3 inputs are unobservable.

The group's convertible loan notes are measured at fair value of £nil (2025: £24,683,100). These are classified as level 3. They are valued based on a scenario pricing model. A number of inputs such as the market value of shares are observable inputs but there are also significant unobservable inputs such as the discount rate and the probabilities assessed for each scenario.

34 Financial risk review

Group

This note presents information about the Group's exposure to financial risks and the Group's management of capital.

Credit risk

In order to minimise credit risk, the Group has adopted a policy of dealing only with creditworthy counterparties (including banks and customers) and obtains sufficient collateral, where appropriate, to mitigate the risk of financial loss arising from default. The Group's most significant credit risk relates to customers that may default on payments for goods sold.

To date, the Group has made only a limited number of sales and, accordingly, its exposure to credit risk has been low.

Liquidity risk

The Directors regularly monitor forecast and actual cash flows and align the maturity profiles of financial assets and liabilities to ensure effective liquidity management and maintain adequate cash reserves and borrowing facilities. In the Directors' view, the principal liquidity risk relates to meeting short-term cash flow requirements. Further discussion of short-term liquidity risk is included in the going concern assessment in note 2.

Market risk

Other than the convertible loan notes, the Group has no significant interest-bearing financial assets or liabilities. In the future, the Group may also be exposed to foreign exchange risk, as tungsten prices are principally denominated in US dollars. The Group intends to manage this risk through the terms agreed in supply contracts with future customers.

The Group does not currently use derivative financial instruments to manage its exposure to changes in interest rates or foreign exchange rates.

The Group may require additional borrowings in the future to fund upgrades to its mineral processing facilities and, as a result, may be exposed to increases in interest rates.

35 Related party transactions

Convertible loan notes

During the year, the Group issued convertible loan notes of £5,205,000 (2025: £5,250,000) to entities connected with certain Directors of the Group. Interest of £nil (2025: £2,057,797) accrued on these convertible loan notes during the year.

Bridge loan facility

During the year, the Group agreed an unsecured bridge loan facility of up to £4.0 million with Lansdowne Partners (UK) Ltd, Drakewood Investments Limited and Henry Maxey, being the three largest noteholders (or affiliated entities) and, as such, related parties of the Group.

The facility accrued interest at 15% per annum, capitalising monthly (increasing by 2% in the event of default), and was repayable on the earlier of six months from drawdown or completion of any debt or equity raise equal to or greater than the facility balance, with any smaller equity raise applied as a prepayment.

The facility was available in two tranches of £2.0 million each: the first available immediately, and the second from 31 January 2026, subject to conditions including completion of the Conversion process of the Notes.

The Group drew down only the first tranche of £2.0 million ("Tranche 1"), which was used to fund project restart costs included within the Feasibility Study. Tranche 1, together with accrued interest, was repaid from the net proceeds of the fundraise.

Key management personnel

Key management personnel are deemed to be the Directors. Their remuneration can be seen in note 11.

36 Post balance sheet events

Mining Service Contract

Subsequent to the year end, the Group has agreed with Hargreaves Services plc ("Hargreaves") to terminate the existing mining service contract.  As per the terms of the contract, the Company made payments to Hargreaves of £3.0 million in April 2026, after which they released security held over the mineral lease, and a further payment of £7.0 million by 15 May 2027. 

LTIP grant to Directors

On 22 July 2026, subsequent to the balance sheet date, the Company granted options under its Long Term Incentive Plan (approved by shareholders on 30 January 2026 and 26 February 2026) to three Directors, as follows:

Director	Total Awards	Exercisable at 3p	Exercisable at 18p*
Stephen Harrison (Non-Executive Chairman)	30,260,695	30,260,695	-
Jeffery Court (CEO)	75,651,737	60,521,388	15,130,349
Philip Povey (CFO)	37,825,868	30,260,695	7,565,173

*Options subject to 'stretch' performance targets, representing performance significantly in excess of the Group's base case business plan.

The Awards are subject to performance conditions linked to commercial production and operational milestones, as assessed by the Remuneration Committee. Awards lapse on the fifteenth anniversary of grant unless they lapse earlier under their terms, and vesting accelerates on a change of control, subject to the LTIP rules and relevant option agreements.

This is a non-adjusting post balance sheet event under IAS 10, as the grant occurred, and the grant date (for IFRS 2 purposes) arose, after 31 March 2026. No liability or expense has been recognised in these financial statements in respect of these Awards. A share-based payment charge will be recognised prospectively over the relevant vesting period(s) in future reporting periods, based on the fair value of the Awards at grant date.

Funding

Subsequent to the year end, in August 2026, the Group secured funding from National Wealth Fund Limited ("NWF"), comprising an equity raise of approximately £36 million and a new 366-day £25 million loan facility, with a £10 million accordion. This funding secured the amount required to complete the Group's remaining project capital expenditure at Hemerdon. As at the date of these accounts, the £25 million loan facility had been drawn down in full.

37 Prior year adjustments

Restoration Provision and Escrow Cash

Management reviewed the application of IAS 37 to the restoration obligation assumed by Drakelands Restoration Limited ("DRL") under the Mineral Lease at Hemerdon Mine, and to DRL's related entitlement to reimbursement from an Escrow Account.

A restoration provision and a corresponding escrow receivable had previously been recognised in the financial statements. A subsequent review identified errors in the assumptions, inputs and methodology applied in measuring both balances.

Restoration Provision

The restoration provision had been determined using the escrow balance as a proxy for the underlying restoration obligation, rather than being based on an independent estimate of expected restoration costs. In addition, the provision incorporated inflation and risk adjustments applied more than once, and included amounts relating to VAT, resulting in an overstatement of the liability.

Management has recalculated the restoration provision at £8,221,081 as at 31 March 2024, using the cost estimate obtained by the previous site operator, adjusted to exclude the inflation embedded within it and VAT, and independently inflated and discounted using market-observable gilt rates at the relevant valuation date, with drawdown timing aligned to the contractual term of the Mineral Lease. The resulting correction to the restoration provision as at 1 April 2024 has been recognised through opening retained earnings, as the corresponding adjustment relates to the correction of an error existing at that date rather than a change arising during a subsequent period.

The subsequent remeasurement of the restoration provision during the year ended 31 March 2025 has been recognised as an adjustment to the related mining rights asset, consistent with the Group's accounting policy under IFRIC 1, rather than through profit or loss or retained earnings, on the basis that this remeasurement reflects a change in the estimated timing or amount of the restoration obligation arising after initial recognition.

Escrow Cash

The escrow receivable had been measured as a discounted long-term receivable, rather than by reference to the underlying escrow cash balances. The corresponding credit arising on initial recognition had not been recognised through the income statement. As a result, both the asset and retained earnings were misstated.

DRL's entitlement under the Escrow Agreement has been reassessed as a financial asset under IFRS 9. The escrow funds are held by the escrow agent, partly in a fixed-term deposit account and partly in a current account, and are not available for the Group's general use. As the balance represents actual cash deposits held on the Group's behalf, rather than a long-dated receivable requiring separate discounting, it is measured at the underlying cash balance confirmed by the escrow agent, plus accrued interest income.

Consequently, the prior period statement of financial position has been restated in accordance with IAS 8. The restatement corrected the restoration provision to £8,221,081 and reclassified the escrow receivable from a discounted long-term receivable to £13,740,012, presented within cash and cash equivalents, being the escrow cash balance confirmed by the escrow agent, with the corresponding adjustments recognised through opening retained earnings.

Goodwill

On review of Goodwill, management identified that the purchase price allocation performed on acquisition of DRL, under the Group's previous GAAP (FRS 102), had not correctly identified and measured all separable identifiable assets acquired, including intangible assets such as mining rights, ahead of determining the residual goodwill balance. Drakelands Restoration Limited was acquired prior to the Group's date of transition to IFRS. On first-time adoption of IFRS, the Group elected to apply the exemption available under IFRS 1 and therefore did not restate business combinations that occurred before the transition date. Accordingly, the acquisition continued to be accounted for using the carrying amounts arising under the previous GAAP purchase price allocation as deemed cost at the date of transition.

The previous calculation did not correctly sequence this allocation, resulting in £1,075,520 being recognised as goodwill that should instead have been allocated to mining rights and the associated deferred tax balances. Management has recalculated the purchase price allocation applying the correct sequencing required under FRS 102, reallocating the goodwill balance of £1,075,520 in full, with £345,097 allocated to mining rights and the balance reflected through the associated deferred tax asset and liability. There was no impact on retained earnings

P&L Cost Classification

During the year, management identified that a mining service fee of £1.0m, previously classified within cost of sales in the year ended 31 March 2025 related to a period in which mining activities had not yet commenced and the site was under care and maintenance only. As the cost did not relate to production activity, it has been reclassified to administrative expenses as this better reflects its nature. This reclassification has no impact on reported profit, net assets or earnings per share for the prior year.

The combined impact of these restatements is set out below:

Impact on Balance Sheet, Profit and Loss and Retained Earnings

Impact as at 31 March 2024
Restatement	As previously reported £		Adjustment £		As restated £
Restoration provision	(5,137,646)		(3,083,435)		(8,221,081)
Escrow reimbursement asset	11,059,151		2,680,861		13,740,012
Goodwill	1,075,520		(1,075,520)		-
Mining rights	3,844,334		345,097		4,189,431
Deferred tax asset	1,382,901		(961,083)		421,818
Deferred tax liability	(1,382,901)		961,083		(421,818)
Retained earnings (opening, cumulative impact)	(32,764,067)		(1,132,997)		(33,897,064)
Impact as at 31 March 2025
Restatement	As previously reported £		Adjustment £		As restated £
Restoration provision	(4,006,771)		(2,697,050)		(6,703,821)
Escrow reimbursement asset (capped, IFRIC 5.9)	13,237,420		1,396,437		14,633,857
Goodwill	1,075,520		(1,075,520)		0
Mining rights	3,844,334		(1,537,619)		2,306,715
Deferred tax asset	1,368,014		(961,083)		406,931
Deferred tax liability	(1,368,014)		961,083		(406,931)
Profit and loss	(21,912,258)		(2,780,755)		(24,693,013)
Retained earnings (cumulative impact)	(54,676,325)		(3,913,752)		(58,590,077)

Impact on Cashflow

The prior period restatements described above are all non-cash in nature, relating to the correction of the restoration provision, the associated escrow cash reclassification, and the goodwill and mining rights reallocation. As these adjustments do not represent cash inflows or outflows, they are reflected as reconciling items within the reconciliation of loss for the year to net operating cash flow, with no impact on the total net cash flows from operating, investing or financing activities as previously reported.

Company Statement of Financial Position

Year ended 31 March 2026

	Note	2026 £	2025 £
Non-current assets
Tangible fixed assets	41	26,985	28,935
Investments in subsidiary undertakings	42	4,190,460	4,190,460
Receivables due after more than one year	43	52,159,851	35,941,304
		56,377,296	40,160,699
Current assets
Receivables due within one year	43	1,641,150	167,076
Cash at bank and in hand	44	24,806,505	13,093
		26,447,654	180,169
Total Assets		82,824,950	40,340,868
Equity and liabilities
Equity
Share capital	47	15,047,487	1,887,313
Share premium		277,030,598	51,949,078
Share option reserve		226,999	319,526
Retained earnings		(210,340,421)	(39,398,958)
Equity attributable to owners of the Company		81,964,663	14,756,959
Current liabilities
Trade and other payables	45	860,287	900,809
Convertible loan notes	46	-	24,683,100
Total liabilities		860,287	25,583,909
Total equity and liabilities		82,824,950	40,340,868

The Company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The Company made a loss for the financial year of £170,941,463 (2025: £10,601,728).

The notes on pages 70 to 76 are an integral part of these financial statements.

The Company accounts were approved by the Board on 2^nd September  2026 and signed on its behalf by:

Philip Povey

Director

Company Registration Number: 11310159

Company Statement of Changes in Equity

Year ended 31 March 2026

	Share capital £	Share premium £	Share option reserve £	Retained earnings £	Total £
At 31 March 2024	1,870,741	51,949,078	256,278	(28,797,230)	25,278,867
Loss for the year	-	-	-	(10,601,728)	(10,601,728)
Total comprehensive income	-	-	-	(10,601,728)	(10,601,728)
New share capital subscribed	16,572	-	-	-	16,572
Share options charge	-	-	63,248	-	63,248
At 31 March 2025	1,887,313	51,949,078	319,526	(39,398,958)	14,756,959
Loss for the year	-	-	-	(170,941,463)	(170,941,463)
Total comprehensive income	-	-	-	(170,941,463)	(170,941,463)
Conversion of convertible loan notes	8,181,588	189,030,853	-	-	197,212,441
New share capital subscribed net of issue costs	4,978,586	36,050,667			41,029,253
Share options charge	-	-	(92,527)	-	(92,527)
At 31 March 2026	15,047,487	277,030,598	226,999	(210,340,421)	81,964,663

The nature and purpose of each reserve is set out in Note 49.

The notes on pages 70 to 76 are an integral part of these financial statements.

Notes to the Company Financial Statements

Year ended 31 March 2026

38 General information

Tungsten West plc ('the Company') is a public limited company, incorporated in England and Wales and domiciled in the United Kingdom.

The address of its registered office and principal place of business is:
Hemerdon Mine
Drakelands
Plympton
Devon
PL7 5BS
United Kingdom

39 Accounting policies

Basis of preparation

The Company financial statements have been prepared in accordance with FRS 101 Reduced Disclosure Framework ('FRS 101').

No profit and loss account is presented for Tungsten West plc, as permitted by section 408 of the Companies Act 2006.

The financial statements are presented in Sterling, which is the functional currency of the Company.

Reduced disclosures applied

In preparing the Company financial statements the Company has applied the following disclosure exemptions allowed under FRS 101, therefore the following are omitted:

·      A Company statement of cash flows as required by IAS 1 and IAS 7.

·      Financial instruments disclosures under IFRS 7.

·      Fair value disclosure under IFRS 13.

·      Related party disclosures with wholly owned subsidiaries of the Group.

·      Reconciliations of share capital movements required by IAS 1.

·      Comparative information for property, plant and equipment.

·      Disclosing information on leases required by IFRS 16 in a single note.

The Group's financial statements are included within this document.

Going concern

The Company financial statements have been prepared on a going concern basis, which the Directors consider to be appropriate for the reasons set out below, having given careful consideration to the Company's financial position, funding arrangements and future cash flow forecasts, covering a period of at least twelve months from the date of approval of these financial statements.

The Company's principal asset is its investment in, and amounts due from, its subsidiary Drakelands Restoration Limited, which operates the Hemerdon Mine (also known as Drakelands Mine). During the year ended 31 March 2026, Drakelands Restoration Limited was a developer with low levels of production. A phased restart of commissioning commenced from July 2026 and will ramp up through the remainder of the calendar year and into 2027.

During the year, the Company significantly strengthened its funding position. In February 2026, the Company completed an equity fundraise of approximately £43 million (gross). Separately, the Company's outstanding Convertible Loan Notes converted into equity during the year and were accordingly extinguished, removing the Company's prior reliance on convertible loan note financing and associated short-term bridging finance. Following the year end, the Company secured further funding from National Wealth Fund Limited ("NWF"), comprising an equity raise of approximately £36 million and a new 366-day £25 million loan facility, with a £10 million uncommitted accordion. Together, these transactions secured the funding required for the remaining project capital expenditure at Hemerdon.

The Directors have prepared detailed cash flow forecasts covering the going concern assessment period, based on the production, cost and pricing assumptions underpinning the Feasibility Study for the Hemerdon Mine, updated to reflect the phased restart plan, and the funding secured as described above. These forecasts have been sensitised for a range of downside scenarios, consistent with the sensitivity analysis performed as part of the Feasibility Study and the value in use assessment described in note 2, including delays to the production ramp-up schedule, lower than forecast metal prices and recoveries, and unfavourable movements in foreign exchange rates.

The Directors have also modelled a downside scenario addressing the risk of delay to completion of the front-end crushing circuit. Under this scenario, Drakelands Restoration Limited would fall back on its existing mobile front-end crushing and in-pit crushing arrangements with a contractor - the process route already in use earlier in the year - pushing back the ramp-up of the permanent front-end by three months. This fallback route carries a higher per-tonne processing cost than the planned front-end/ore sorter route, increasing operating costs over the delay period by approximately £3 million. A corresponding pause to waste mining over the same period has also been modelled, reducing drill and blast costs but offset by increased haulage costs to the more distant processing facility under the fallback route; these two effects have been assessed as broadly offsetting.

Under each of the scenarios modelled, the Company retains sufficient liquidity throughout the going concern assessment period, taking into account the £25 million NWF loan facility (with its £10 million accordion) and the Company's cash resources.

The Directors have also considered the maturity of the NWF loan facility, which is repayable 366 days from drawdown, and have concluded that the Company's forecast operating cash flows, together with the accordion facility and the Company's ongoing relationship with NWF, provide a reasonable basis to expect that the facility can be refinanced or repaid as it falls due.

Having considered the matters set out above, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the going concern assessment period. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements. This represents a change from the prior year, in which a material uncertainty relating to going concern was disclosed pending completion of the Company's longer-term funding arrangements.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below and are consistent with those of the Group, as set out in note 2 to the consolidated financial statements, except as set out below. These policies have been consistently applied to all years presented, unless otherwise stated.

Investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Expected credit losses on inter-company loans

The Company has extended loans to its subsidiaries (inter-company loans) and calculates expected credit losses on these loans in accordance with IFRS 9 Financial Instruments.

The expected credit losses for inter-company loans are measured based on a forward-looking assessment of credit risk, taking into consideration both historical data and reasonable and supportable information about future events. The Company classifies inter-company loans and measures the corresponding expected credit losses using the following stages:

Stage 1 - loans with no significant increase in credit risk since initial recognition: a loss allowance equal to 12-month expected credit losses is recognised.

Stage 2 - loans with a significant increase in credit risk since initial recognition: a loss allowance equal to lifetime expected credit losses is recognised.

Stage 3 - loans that are credit-impaired, where there is evidence of a measurable decrease in estimated future cash flows since initial recognition: a loss allowance equal to lifetime expected credit losses is recognised.

The determination of expected credit losses involves assessing a range of possible outcomes and their respective probabilities, incorporating historical data, economic conditions, industry-specific information, and forward-looking information.

Key sources of estimation uncertainty - probability estimates in calculating expected credit losses

The calculation of expected credit losses involves the incorporation of probability estimates to reflect the likelihood of different credit events occurring. The most significant economic risk to the Company is lenders' appetite to invest long term in the Company. Management estimates the chance of success at 85%.

The expected credit loss provision at year-end is £25,085,361 (2025: £25,085,361), representing a 32% (2025: 41%) effective provision rate. This rate is higher than would be expected based on the overall probability of recovery estimate of 72%, due to the 100% provision held against the loan to Tungsten West Services Limited, as that company is not expected to generate future profits to repay the inter-company loan.

Sensitivity analysis

The Company has performed a sensitivity analysis to assess the impact of changes in the probability estimate on the expected credit loss provision. A 10% increase in the probability estimate would reduce the expected credit loss by £6.1 million (2025: £6.1 million). A 10% decrease would increase the expected credit loss by £6.1 million (2025: £6.1 million).

Based on this analysis, management believes the loss allowance recognised is appropriate given the current economic environment and the specific characteristics of the inter-company loans.

Significant accounting estimates and judgements

The preparation of the Company financial statements requires management to make estimates and judgements that affect the reported amounts of certain assets and liabilities. The use of estimates and judgements in the Company financial statements is principally limited to the following two areas:

Significant accounting judgements

Investments in subsidiary undertakings

Investments in subsidiary undertakings are carried at cost less accumulated impairment losses. At each reporting date, management assesses whether there are indicators of impairment, having regard to the trading performance, net asset position and future funding requirements of each subsidiary, in particular Drakelands Restoration Limited given the Group's continued pre-production status and reliance on external financing to complete the MPF rebuild.

The recoverable amount of the investment is assessed by reference to the value in use of the Hemerdon Mine cash-generating unit, as determined in note 2 to the consolidated financial statements, on the basis that the underlying value of the subsidiary is derived from that asset. Management has concluded that the carrying value of the Company's investment in subsidiaries of £4,190,460 (2025: £4,190,460) continues to be supported and that no impairment is required in the year (2025: £nil).

Key sources of estimation uncertainty

Recoverability of intercompany receivables

The Company has extended loans to its subsidiaries and assesses expected credit losses on these balances in accordance with IFRS 9. This requires management to estimate the probability of the Company's subsidiaries generating sufficient future profits, and of the Group securing the financing required to complete the mine restart, to enable repayment of the intercompany balances.

The most significant economic risk affecting recoverability is lenders' appetite to invest long term in the Company. Management estimates the chance of success at 85%.

The Company has recognised a loss allowance against its intercompany loans as follows:

Stage 1 (12-month expected credit losses): £nil

Stage 2 (lifetime expected credit losses): £0.1 million

Stage 3 (lifetime expected credit losses): £13.1 million

The total loss allowance for intercompany loans as of the reporting date is £13.2 million (2025: £25.1 million), representing an effective provision rate of 17% (2025: 41%). The reduction in the year reflects the significant progress made in securing funding, advancing the mine permitting process, and moving closer to sustained revenue generation, which has strengthened management's assessment of the recoverability of balances due from the majority of the Company's subsidiaries. Substantially the whole of the remaining provision relates to the loan to Tungsten West Services Limited, which is not expected to generate future profits to repay the intercompany loan, and against which a 100% provision continues to be held.

40 Company staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

	2026 £	2025 £
Wages and salaries	255,998	112,000
Social security costs	36,020	12,140
Share based payments	(92,527)	60,583
	199,491	184,723

The average number of persons employed by the Company (including Directors) during the year, analysed by category was as follows:

	2026 No.	2025 No.
Management	5	5
Total	5	5

Remuneration of the Directors is disclosed in note 11 to the Consolidated Financial Statements.

41 Tangible fixed assets

	Furniture, fittings and equipment £	Other property, plant and equipment £	Total £
Cost
At 1 April 2025	2,048	36,983	39,031
At 31 March 2026	2,048	36,983	39,031
Depreciation
At 1 April 2025	1,947	8,149	10,096
Charge for the year	101	1,849	1,950
At 31 March 2026	2,048	9,998	12,046
Carrying amount
At 31 March 2026	-	26,985	26,985
At 31 March 2025	101	28,834	28,935

42 Investment in subsidiary undertakings

Summary of the Company investments

	31 March 2026 £	31 March 2025 £
Investments in subsidiaries	4,190,460	4,190,460
Subsidiaries
Cost
Opening cost	4,558,310	4,555,646
Additions	-	2,664
Closing cost	4,558,310	4,558,310

Provision
Opening provision	(367,850)	(367,850)
Closing provision	(367,850)	(367,850)

Valuation
Opening Valuation	4,190,460	4,187,796
Carrying value as at 31 March 2025	4,190,460	4,190,460

Additions in the current year relate to further investment in subsidiaries as a result of share options in the Company granted to employees of those subsidiaries.

Management makes regular checks on internal and external impairment indicators in respect of the Company's investment in subsidiary undertakings. During the year ended 31 March 2026 and as of the date of this report, management did not identify any internal or external indicators triggering a detailed impairment review.

The group commenced phased commissioning at the Hemerdon Mine in July 2026, in line with management's phased restart plan, and the Group secured the funding required to complete its remaining project capital expenditure through the National Wealth Fund agreement entered into following the year end. Management is confident that the carrying amount of the Company's investment in subsidiaries continues to be fully recoverable, with no impairment of any assets being deemed necessary.

Information on the Company's subsidiary undertakings is disclosed in note 19 to the Consolidated Financial Statements.

43 Receivables

	31 March 2026 £	31 March 2025 £
Net receivables from subsidiaries	52,159,851	35,941,304
Prepayments	70,582	129,491
Other receivables	1,570,568	37,585
	53,801,001	36,108,380
Less - amount due after more than one year	(52,159,851)	(35,941,304)
Amounts due within one year	1,641,150	167,076

The full balance within net receivables from subsidiaries is due on demand. It is unlikely that recovery of this balance will be made within one year of the balance sheet date and therefore the balance has been presented in amounts due after more than one year.

The average credit period on sales of goods is 30 days. No interest is charged on outstanding trade receivables. The carrying amount of trade and other receivables approximates the fair value.

As the company is in the early phases of operations and making a few minor sales, credit losses are being considered on a customer-by-customer basis. No credit losses against trade receivables were identified as at year end.

Loss allowance for inter-company loans

Amounts due from group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

As of the reporting date, the Company has assessed the expected credit losses on its inter-company loans and recognised a loss allowance as follows:

Stage 1: £nil representing the 12-month expected credit losses

Stage 2: £10.6 million representing the lifetime expected credit losses

Stage 3: £14.5 million representing the lifetime expected credit losses

The total loss allowance for inter-company loans as of the reporting date is £25.1 million (2025: 25.1m)

The overall credit loss of 41% allows for factors including restructuring of the group and non-recoverable balances from subsidiaries for which income is now no longer planned due to corporate restructuring activities and other internal factors.

	31 March 2026 £
At 1 April 2025	35,941,304
Increase during the year	16,218,547
Change in expected credit loss	-
At 31 March 2026	52,159,851
Gross receivables from subsidiaries	77,245,210
Overall credit loss	(25,085,359)
Net receivables from subsidiaries	52,159,851

44 Cash at bank and in hand

	31 March 2026 £	31 March 2025 £
Cash at bank	24,806,505	13,093

45 Trade and other payables

	31 March 2026 £	31 March 2025 £
Trade payables	748,801	700,669
Accrued expenses	103,071	189,548
Social security and other taxes	8,415	10,592
	860,287	900,809

Trade payables and accruals comprise amounts outstanding for trade purchases and ongoing costs. The average credit period for trade purchases is 45 days (2025: 45 days). No interest is charged on overdue amounts.

The carrying amount of trade and other payables approximates the fair value.

46 Convertible loan notes

Please refer to group note 25.

Movement in liability

	31 March 2026 £	31 March 2025 £
Brought forward	24,683,100	11,587,221
Cash received	5,205,000	6,751,000
Directly attributable costs incurred	-	(2,000)
Fair value movement in year	167,324,341	6,346,879
Conversion	(197,212,441)	-
Carried forward	-	24,683,100

47 Share capital

Please refer to group note 28.

48 Share-based payments

Information on share-based payments is disclosed in note 30 to the Consolidated Financial Statements.

49 Reserves

Share premium

Share premium represents the excess of consideration received over the nominal value of shares issued, net of issue costs.

Share option reserve

The share option reserve represents the cumulative fair value of share options granted by the Group that have been recognised in accordance with IFRS 2. The reserve increases as the related expense is recognised over the vesting period and is transferred within equity upon exercise, lapse or expiry of the awards.

Retained earnings

Retained earnings represents cumulative profits and losses recognised in the consolidated income statement, less dividends paid and other distributions to shareholders.

50 Commitments

During a previous financial year the Company signed a contract to pay £200,000 (2025: £200,000) compensation to a third party once mining operations commenced.

Contingent liabilities

As at 31 March 2025, the Company was liable for payment of any withholding tax arising on the convertible loan notes then in issue, and had estimated the contingent liability, based on interest accrued to that year-end, at £1,000,000, on the basis that it considered the likelihood of a withholding tax liability arising as unlikely and accordingly made no provision. During the year, the convertible loan notes converted into equity, and as at 31 March 2026 the Company has no outstanding convertible loan notes and therefore no contingent withholding tax liability in respect of them (2025: £1,000,000).

51 Related party transactions

Information on related party transactions is disclosed in note 35 to the Consolidated Financial Statements.

52 Post balance sheet events

Information on post balance sheet events is disclosed in note 36 to the Consolidated Financial Statements.

 

END