Announcement PDF Annual Report 2 Core Lithium | 2025 Annual Report Contents Chair’s Letter 4 Chief Executive Officer’s Letter 6 Review of Operations 8 Sustainability 18 Mineral Resource and Ore Reserves Statement 22 Tenement Schedule 28 Directors’ Report 30 Operating and Financial Review 33 Auditor’s Independence Declaration 50 Financial Report 52 Independent Auditor’s Report 94 ASX Additional Information 97 Corporate Information 99 Important Information This Annual Report covers Core Lithium Ltd (“Core”, the “Parent” or the “Company”) and its subsidiaries, collectively referred to as “the Group”. The financial report is presented in Australian dollars. Core is a company limited by shares, incorporated and domiciled in Australia. The Company’s registered office and principal place of business is: Core Lithium Ltd Level 9, 2 Mill Street Perth 6000 Western Australia Acknowledgment of Country Core acknowledges First Nations people, the traditional custodians of the land on which we work throughout Australia. We pay our respects to the people and cultures, and to their elders past, present and emerging. We recognise their connection to land, water and community, and their rich contribution to society. 3 4 Core Lithium | 2025 Annual Report Chair’s Letter Dear Core shareholders, I am pleased to present Core’s annual report for the financial year ending 30 June 2025. The strategy to reset our Finniss Lithium Project took meaningful steps forward in a year that was amongst, if not the most, challenging for the lithium industry this decade. While these conditions are difficult, they are also cyclical. Core has acted decisively to preserve value, reposition the business, and ensure we are prepared to restart operations when the market stabilises. As we started FY25, all operations at Finniss had ceased and at site we moved into a phase of asset preservation and strict environmental compliance. With the lithium market remaining depressed throughout FY25, our decision to suspend operations and reset the operating model with a lower cost base has been further vindicated. Full credit goes to our team for ensuring the site was maintained in excellent condition during the year, accompanied by an exemplary safety performance. More information on our sustainability activities is included in this report for shareholders to review. With previous investment of more than $250 million in site infrastructure and a large, high-grade mineral endowment, the Finniss assets retain significant value. In FY24, the Board put in place a new management team with senior experience in the operation of lithium projects and project development to seek to realise this latent value for the benefit of our shareholders. Management was tasked with completing a preliminary technical review of Finniss to first establish whether a new operating model could deliver a more robust, lower cost project. Upon determining there was significant scope for this to be achieved, an intensive program of detailed technical review and planning was completed in what was to become the Restart Study released to shareholders in May 2025. As a Board, we are pleased with the outcomes. The Restart Study strikes a balance between minimising pre-production capital needs and reducing operating costs, so we are more insulated from the commodity price cycle. Proposed modifications to our mining and processing strategy are neither novel nor unrealistic, in our view. The assumptions are supported by a large Ore Reserve, detailed testwork and modelling which still present opportunities for improvement. We are not yet at a point where we could consider restarting the operation. Any decision in this regard will be subject to securing an attractive project financing solution and market conditions, amongst other factors. As we start financial year 2026, there has been some early signs of improvement in sentiment towards lithium which we would like to see continue. Core has a highly capable management team and board that are united in their focus on operational readiness. During the year we were pleased to welcome Alicia Sherwood to the Board as a Non-Executive Director. Alicia brings deep experience in large-scale resources projects, operational risk, and stakeholder engagement, complementing the Board’s skills in strategy, finance, and governance. Her appointment enhances our oversight as we complete the operational redesign and prepare for a safe, efficient restart. The executive team led by Chief Executive Officer Paul Brown has demonstrated resilience in navigating the downturn, while the Board has provided strategic oversight to ensure decisions are aligned with shareholder interests. We continued to strengthen governance, enhance risk management systems, and invest in the capability required to deliver a safe and efficient restart. Our people have maintained an unwavering commitment to safety and environmental stewardship throughout the year. While our direct engagement in the region around Finniss and Darwin has contracted in line with our operations, having a positive impact on the community is part of our future commitment. The majority of a future mining workforce will come from this region and as such we remain closely linked with the Northern Territory. This of course extends to traditional owners and the Government who we will continue to communicate with as our restart plans take shape. 5 With previous investment of more than $250 million in site infrastructure and a large, high-grade mineral endowment, the Finniss assets retain significant value. Although the lithium industry is at a low point, history shows that cycles turn. Demand growth from electric vehicles, energy storage, and renewable integration will require substantial new supply. Projects like Finniss, with approvals, infrastructure, and demonstrated product quality, are well placed to respond. Looking forward, Core is committed to restarting mining at Finniss when conditions are right and delivering a more efficient and profitable operation. We will continue to enhance the Finniss resource base through targeted exploration and drilling, preserve our strong safety and environmental record during care and maintenance, and maintain financial discipline to ensure Core remains resilient. In conclusion, I would like to thank my fellow directors for their contribution this year and on behalf of the Board, I congratulate the Core team for everything achieved together in FY25. To our shareholders, we are grateful for your support and reiterate our strong commitment to generate value from the Company’s assets in a responsible and considered manner. Yours sincerely, Greg English Non-Executive Chair Core Lithium Ltd. 6 Core Lithium | 2025 Annual Report Chief Executive Officer’s Letter Dear Core shareholders, I am pleased to provide an overview of Core Lithium’s activities in the 2025 Financial Year. We are moving ahead with our strategy to reposition the Finniss Lithium Operation as a lower cost, more sustainable operation capable of operating through the lithium price cycle. The completion and release of the Restart Study for Finniss in May 2025 was the capstone on an active period for the business. However, we are not slowing down in this next phase as we strive to maximise the value for our shareholders from the Finniss assets and the new platform we have created. Our mandate in the Restart Study was to complete a bottom-up analysis of the asset and reset the operating strategy to capitalise on the existing site infrastructure and geological characteristics of the deposits. We used the deep experience within our team to challenge previous assumptions and develop a new operating model built around delivering a materially lower cost base. I’m pleased to say we achieved this outcome, with a reduction of 40% for mining costs and 33% for processing costs to deliver highly competitive unit operating costs over a 20-year life of mine . What is particularly pleasing is that these outcomes are accompanied by a 29% reduction in pre-production capital expenditures (capex)1. The key drivers of this significant improvement are the revised operating model for the site, transition to 100% ownership of all infrastructure and improved throughput and recovery from the DMS plant. Finniss has the benefit of high-grade, continuous and steeply dipping orebodies which are ideal for low cost underground mining. The Ore Reserve increased by 16% with the Restart Study and underpins the first 10 years of operations, providing a high confidence production plan from previously mined areas located close to the processing plant. We plan to upgrade the processing plant with a series of low capex improvements. Together they will increase throughput by 20% to 1.2 million tonnes per annum and enhance lithium recovery to an average of 78%. This is expected to be achieved without the need to install a flotation circuit which serves to minimise pre-production capital. 1. Refer to ASX announcement “Finniss Repositioned as a Highly Attractive Low-Cost Operation with a 20-Year Life“ on 14 May 2025. We concluded all remaining operating contracts at Finniss during the period. Our agreement to acquire the crushing circuit, which was announced in March 2025, gave us full ownership of all infrastructure at the site and will halve future crushing costs under a new operating model. In addition, we finalised an offtake agreement with Yahua International Investment and Development Co. These milestones mark a significant simplification of our operating framework as we engage with potential financiers and strategic partners. The outcomes of engagement with these groups, alongside lithium market conditions, will be critical factors in shaping our strategy in the 2026 financial year. We continued to maintain the Finniss site in good standing in accordance with our obligations and commitment to the environment and community. Central to this was water management during the Northern Territory wet season. This was completed safely and efficiently, with the installation of a submersible pump plant in the Grants pit providing significant benefits in terms of cost and diesel consumption. Targeted exploration is an important pillar of our strategy and will remain so. We have a large, strategic landholding around our Finniss infrastructure which is where our focus has been recently. Adding to our lithium inventory or making a discovery in a different commodity on our existing tenements are the biggest opportunities to create value for shareholders through target exploration. I’m pleased to report that we had success on both fronts. We completed sufficient drilling to support the establishment of a high-grade lithium exploration target at Blackbeard of 7-10 million tonnes at grade of 1.5-1.7% Li2O and promising early stage work on the Shoobridge gold project. Cautionary Statement: The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. 7 Work programs across the Restart Study, site management and exploration were completed safely by our teams, with no lost time injuries being reported in the year. Maintaining the safety of our people in future operations at Finniss is clearly a critical part of our future restart planning. Activities during FY25 were funded by our existing cash reserves and we finished the year with a healthy cash balance of $23.5 million and no debt. We ensured capital discipline with strict adherence to our budget and expenditure was in line with plan. Protection of our cash balance and minimising dilution for shareholders will continue to shape our funding strategy. I extend my thanks to the Management team, the Board and all of my colleagues at Core for their sustained efforts throughout the year. Your support has been invaluable as we progress the Project and progressively build our group. We remain committed to being responsible stewards of Finniss and working hard to grow shareholder value as we reshape the asset for the current lithium market. Yours faithfully, Paul Brown Chief Executive Officer Core Lithium Ltd. Finniss has the benefit of high-grade, continuous and steeply dipping orebodies which are ideal for low cost underground mining. 8 Core Lithium | 2025 Annual Report Review of Operations 2016 2017 2019 Lithium discovery at Finniss Maiden Mineral Resource Mineral Lease granted 2022 2023 2025 Construction of DMS Plant First concentrate production Restart Study completed Finniss Lithium Project Grants Ore Reserves BP33 Ore Reserves The Company holds tenements covering more than 500km2 over the most prospective portions of the Bynoe pegmatite field in the Northern Territory, collectively called the Finniss Lithium Project (Finniss or Project). Core first discovered lithium in the region in 2016 and subsequent exploration resulted in a rapid growth in Mineral Resources. This underpinned the development of a Dense Media Separation (DMS) processing plant, the Grants open pit and associated infrastructure (Figure 1). Early development of an underground mine at BP33 was initiated after mining was underway at Grants. More than $250 million has been invested across the Project. Production of a lithium concentrate from Finniss commenced in early 2023 and was suspended in 2024 in response to weak lithium market conditions. Infrastructure at the site has been well maintained in expectation of a future operational restart. During FY25 a Restart Study was completed which involved a comprehensive, bottom-up assessment of the Project. The aim was to develop a new mining and processing plan to reduce the Project’s operating and capital cost base and improve operating efficiency. Figure 1: The Finniss Lithium Project including key deposits and infrastructure Exploration activities during FY25 were aimed at expanding Mineral Resources and drill testing lithium and gold resource potential across Core’s broader exploration portfolio. 9 Positioning Finniss to be Restart Ready Full Ownership of Site Infrastructure Further commentary on the updated MRE and Ore Reserve, including tables, is provided in this report on pages 23 to 26. To support the ability to restart Finniss as a more sustainable operation in future, in FY25 the Company successfully transitioned to 100% ownership of all site infrastructure and ended its remaining contracts pertaining to the operational period at Finniss. Cautionary Statement: The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Principally this related to the crushing services contract which included demobilisation arrangements and asset transfers for a total consideration of $19.5 million. Securing full ownership of all site infrastructure marks a strategic step forward, expected to deliver substantial operational and financial advantages. It reduces ongoing care and maintenance costs whilst operations are paused and enables Core to pursue a simplified, lowercost and more flexible operating model in any future restart scenario. Full ownership ensures complete control over critical infrastructure, enhancing planning and execution capabilities. Additionally, the acquisition of the crushing infrastructure is anticipated to generate significant cost savings, with operating costs reduced to approximately half under a revised structure. Maintaining Readiness Core continues to maintain the Finniss site in a safe, secure, and functional state. Routine operational work includes inspections of key infrastructure, ongoing servicing of power and pumping equipment, and improvements to inventory management processes. These actions are aimed at ensuring the site remains fully prepared to support restart activities and aligns with Core’s commitment to safety and operational discipline. Table 1 Tonnes (Mt) Li2O (%) Exploration Target Low High Low High Blackbeard 7.0 10.0 1.5 1.7 BP33 3.9 6.5 1.5 1.6 Total 10.9 16.5 1.5 1.7 Corporate Settlement of Offtake agreement Core has settled its existing offtake agreement with Yahua International Investment and Development Co. (Yahua) in relation to sale of spodumene concentrate. This agreement was signed with Yahua in 2019 and subsequently updated through a supplementary agreement in 2022. The agreement is now terminated through the execution of a comprehensive, legally binding deed of release. As part of the settlement, the Company agreed to pay $3.1 million (US$2.0 million) cash settlement. Termination of the offtake agreement will unlock previously contracted offtake tonnes and provide greater flexibility for the Company to engage with new strategic partners. Mineral Resource and Reserve Growth Charger Metals and the Bynoe Project Exploration activities during FY25 were aimed at expanding Mineral Resources and drill testing lithium and gold resource potential across Core’s broader exploration portfolio. In September 2024, Core purchased 7.6 million shares in Charger Metals NL (ASX:CHR) (Charger) held by Lithium Australia Ltd (ASX:LIT) (Lithium Australia) (name changed to Livium Ltd) (Charger Shares) through the issue of 6.08 million Core shares to Lithium Australia (being 0.8 Core shares for each Charger Share). As part of the Restart Study, the Mineral Resource Estimate (MRE) and Ore Reserves for Finniss were updated during the period and an updated Ore Reserve at Carlton was announced on 10 September 2025. This resulted in an increase of 0.6% to the MRE with an additional 310kt @ 0.66% Li2O estimated for mineralised material within the Tailings Storage Facility and coarse reject stockpiles. The Finniss Ore Reserve increased by 15.9% with 8.4% increase in contained metal. The Grants Ore Reserve doubled to 1.15Mt @ 1.31% Li2O by changing from an open pit to underground mining method. The BP33 Ore Reserve increased by 7.0% to 9.29Mt @ 1.31% Li2O as a result of updated modifying factors. An Exploration Target of 10.9Mt – 16.5Mt at a grade of between 1.5% and 1.7% Li2O was defined by the Company across the Blackbeard target and BP33 Deeps target. Charger holds a project in the Bynoe Pegmatite District adjacent to Finniss. Core remains interested in the possibility of a mutually beneficial transaction with Charger. This review of operations forms part of the Operating and Financial Review. The financial performance is addressed on page 33 and key risks on pages 14 to 17. 10 Core Lithium | 2025 Annual Report Restart Ready In May 2025 the Company released a Restart Study (Study) for Finniss. The Study involved a comprehensive, bottom-up assessment of Finniss with the aim of developing a new mining and processing plan to reduce the Project’s operating and capital cost base and improve operating efficiency. This Study delivers a more resilient operation that will be able to operate through the commodity cycle and deliver significant shareholder value. The Study includes: Optimised mine plans for the Grants, BP33 and Carlton deposits and mining schedules An enhanced process flowsheet and proposed process plant upgrades Detailed operating and capital cost estimates Future upside opportunities An updated Ore Reserve and Exploration Targets for the Blackbeard and BP33 Deeps were also completed to support the Study. The Study demonstrates a robust operation with an updated potential Mine Life of 20 years and future extension potential. The Project boasts exceptional potential to grow beyond this Study’s production estimate. Table 2 Key Metrics Units Amount Life of Mine (LOM) Years 20 Annual Production Throughput ktpa 1,200 Ore Processed (Ore Reserves) kt 10,726 Ore Processed (feed total) kt 17,575 Average Feed Grade % 1.27 Global Recovery % 78 Nameplate Annual Concentrate Produced (SC6 eq.) ktpa 205 Concentrate Produced (SC6 eq.) kt 2,911 $/t mined 63 – 72 Processing & Tailings $/t processed 40 – 46 Site General & Administration $/t processed 9 – 10 Transport $/t product 22 – 25 $/t 690 – 785 $M 175 – 200 $/t mined 20 – 22 Operating Costs Mining Unit Operating Costs (FOB SC6 eq. excluding royalties) Capital Costs Pre-Production Capital Sustaining Capital Refer to ASX announcement “Restart Study Repositions Finniss Operations” as released on 14 May 2025. 11 Mining The Restart study plan for Finniss incorporates underground mining. This capitalises on the high-grade, steeply dipping and continuous nature of the ore bodies which are typical of the deposits in the Bynoe Pegmatite Field. Underground mining will significantly reduce waste movements and enable greater control of the quality of feed being delivered to the process plant. The Study contains more tonnes at a lower cost compared to the previous plan, while maintaining a similar high-grade ore feed of 1.27% Li2O. The first ten years of the Study mine schedule (Figure 1) is 94% sourced from Ore Reserves. The Study contemplates mining from Grants, BP33 and Carlton to feed the existing processing facilities. Mining will initially be undertaken at Grants. Advancement of underground development at BP33 will be undertaken concurrently with ore from BP33 entering the mine schedule in year two. Figure 2: Study Mining Schedule • • • A gravity separation circuit to process ultra-fine material and produce a dry stack tails system. Reconfiguration of the rolls crusher, into a close circuit, enhancing and improving Ultra fine DMS performance, increasing recovery. Increased screening capacity by the simple addition of static screens in front of vibrating screens. The Company is currently exploring the potential of using the dry-stacked tailings stream to divert materials that would traditionally be stored at the Tailings Storage Facility. These materials could instead be back-hauled and used underground at BP33, potentially eliminating the need for a tails dam lift in the medium term. In addition to improving recovery, the processing upgrade is forecast to stabilise the concentrate quality, reduce concentrate handling costs, and provide a highquality and consistent source of underground paste fill material for BP33. As a result of the above test work and the simplified flow sheet, a high cost grinding and a flotation circuit is no longer required. The DMS plant spodumene concentrate grade, has a design range between 5.0 and 6.0%, providing the Company with material flexibility to tailor its product to maximise value and meet customer requirements over time. This review of the operations forms part of the Operating and Financial Review. The Financial performance is addressed on page 33 and key risks on pages 14 to 17. Upside Opportunities Processing Finniss has a DMS plant with a nominal processing capacity of 1.0Mtpa that will be expanded to 1.2Mtpa as part of the Study. The Study has identified several opportunities to enhance the restart plan, including pathways to improve returns, extend mine life, and increase production. Crushing and processing activities will be integrated into a more efficient operating model, which forecasts crushing costs to halve as a result of its acquisition in FY25. Overall processing costs will reduce by 33% to $40-$46 per tonne processed. Process improvements Within the Study, a detailed program of metallurgical testwork and optimisation studies, was completed both internally and independently. This confirmed that the most cost-effective process plant configuration at Finniss is an enhanced DMS plant without the need to install a flotation circuit. The Study proposes certain upgrades to the current processing plant. This is designed to increase throughput to 1.2Mtpa and average global recovery to 78% through: • Adoption of 10mm plant feed size which brings product size distribution within original plant design envelope. Increased production and LOM extension Improving DMS feed efficiency, recovery, and mining practices can boost processing performance and plant outcomes. Immediate potential to boost ore production and extend mine life, with future work planned beyond the current Grants, BP33, and Carlton deposits. Throughput expansion Further studies are assessing options to boost plant throughput beyond 1.2Mtpa, supported by earlier Carlton mining and potential Blackbeard feed. 12 Core Lithium | 2025 Annual Report Corporate Executive management Our team Paul Brown Chief Executive Officer James Virgo Chief Financial Officer Strategy leadership and value creation Financial management and governance Paul Brown is a well-credentialled mining executive with 25 years of experience in the Australian resources industry. Prior to his appointment as Chief Executive Officer in May 2024, Paul has held various executive positions at companies including Mineral Resources and Hastings Technology Metals. James Virgo is a Chartered Accountant and an experienced finance and commercial professional with over 15 years of experience in the mining and professional services industries. He was appointed to the role of CFO in June 2024 and has served as Interim CFO since March 2024. Prior to his executive role as CEO of Hastings, Paul spent eight years at Mineral Resources, rising to the position of Chief Executive Officer Lithium and Iron Ore where he was responsible for the safe and efficient operation of the company’s iron ore and lithium operations. Throughout his career, James has held various senior finance and leadership roles. Before joining Core, James was the General Manager of Finance and Investor Relations at ASX-listed gold miner Resolute Mining. In this role, he was responsible for all finance-related activities, managing key business processes including resolving and mitigating taxation issues, driving business development initiatives, handling capital management and maintaining strong investor relations. His mining expertise provides deep knowledge of the strategic and operational issues facing Core at the Finniss Lithium Project. While at Mineral Resources and Fortescue, Paul played a vital role in delivering significant mining operations, including Solomon Hub, the Mount Marion and Wodigna lithium projects and the Wonmunna iron ore mine. James possesses a comprehensive understanding of the financial landscape within the mining sector and demonstrates the ability to manage complex financial operations. 13 James Bruce Chief Operational Officer Mining operations and strategic growth James Bruce is a mining engineer and corporate executive with over 30 years of experience in the resources industry, with a career spanning Australia and the USA. Raised and educated in Western Australia, he began his professional career with WMC Resources, where he advanced to the role of Underground Mine Manager. He then joined Perpetual Investments in Sydney and went on to found SailingStone Capital in San Francisco. After returning to Perth, James served as Executive General Manager of Corporate Development at Mineral Resources Limited. He has also been a Director at Reed Advanced Materials and a Committee Member for the Lithium Industry at Standards Australia. He brings to Core Lithium a diverse skillset in mining and finance, with global asset management expertise spanning mining operations, development assessment, corporate development, and sustainability. Over his career, he has successfully managed complex operational assessments and study work across multiple commodities. A proven team with an operation which can be rapidly restarted for minimal capital in the right market conditions 14 Core Lithium | 2025 Annual Report Risk Management Operating and Financial Review During FY25, Core’s risk management focused on key activities and risks associated with the operational suspension at Finniss. We continue to prioritise a strong risk culture, ensuring that potential threats and opportunities are identified and integrated into corporate strategy decisions. Core’s risk management framework was consistent with the risk plan completed in the previous period. This reflects Core’s current operational context, including seasonal factors and a focus on safety. Preliminary, qualitative statements of risk appetite and key risk indicators which provide a quantitative measure of risk appetite and provide the important “guard rails” for management to operate within have been developed with input from the senior leadership team. Carefully selected Key Risk Indicator’s to indicate both leading and lagging indicators of business performance and organisational health that reflect the dynamic nature of the industry incorporating local and global influences are being refined. A number of risks have been identified as threats to the viability of the business and included in the enterprise risk profile update. These risks can be categorised below. This risk management section forms part of the Operating and Financial Review of the Group. Financial performance is address on page 33 and operations on pages 8 to 9. Operational Health, Safety, Sustainability and Environmental Growth and Development Strategy and Innovation People and Culture Financial Legal 15 The key enterprise risks and overview of how they are currently managed are outlined in Table 3 below. The risks are not listed in order of importance, nor are they intended to be an exhaustive list of all the known and unknown risks and uncertainties associated with the business. Table 3 Context Potential impacts Mitigating Factors • • Fatality Permanent disability (physical or psychological) Injury/illness Reputational damage Financial loss Legal and other regulatory consequences • • • R