Announcement PDF ASX:ARO ASX Announcement 30 September 2026 ANNUAL FINANCIAL REPORT For the Year Ended 30 June 2026 Altoro Metals Limited (ASX:ARO) (“Altoro” or the “Company”), formerly Variscan Mines Limited (ASX:VAR), attaches its Annual Financial Report for the year ended 30 June 2026. This announcement has been authorised for release by the Board of Altoro Metals Limited. ENDS Altoro Metals Limited Tony Wehby Chairman info@altorometals.com Media & Investor enquiries Jane Morgan Director jm@janemorganmanagement.com.au About Altoro Metals Limited Altoro Metals Limited is an ASX-listed exploration company focused on advancing a portfolio of zinc and polymetallic projects in Spain. The Company’s flagship Novales-Udías Project in Cantabria encompasses the former-producing San José underground mine and a broader mineralised district with substantial exploration potential. Altoro is also advancing the Guajaraz Zn-Pb-Ag-Cu Project in central Spain, where a maiden diamond drilling programme is planned to test priority targets within a historically mined but underexplored polymetallic system. With a strengthened balance sheet and active exploration programmes across both projects, Altoro is focused on defining and expanding high- quality base and critical metals opportunities in established European mining jurisdictions. ABN 16 003 254 395 Financial Report For the year ended 30 June 2026 Altoro Metals Limited (ASX:ARO) (formerly Variscan Mines Limited) ABN: 16 003 254 395 Contents Page Corporate Directory 2 Directors’ Report 3 Auditor’s Independence Declaration 16 Consolidated Statement of Profit or Loss and Other Comprehensive Income 17 Consolidated Statement of Financial Position 18 Consolidated Statement of Cash Flows 19 Consolidated Statement of Changes in Equity 20 Notes to the Financial Statements 21 Consolidated Entity Disclosure Statement 44 Directors’ Declaration 45 Independent Auditor’s Report 46 Page | 1 Corporate Directory Directors Mr Anthony Wehby Non-Executive Chairman Mr Vaughan (‘Tom’) Kent Executive Director Dr Frank Bierlein Non-Executive Director Mr Myles Campion Non-Executive Director Company secretary Mr Mark Pitts Registered office Level 5/191 St Georges Terrace Perth, Western Australia Australia P: +61 8 9316 9100 E: info@altorometals.com W: www.altorometals.com Share register Automic Level 5/191 St Georges Terrace Perth, Western Australia Australia P: 1300 288 664 Auditors HLB Mann Judd Level 4, 130 Stirling Street Perth WA 6000 Australia +61 8 9227 7500 Securities Exchange Listing Altoro Metals Limited’s shares are listed on the Australian Securities Exchange (ASX: ARO) Page | 2 Directors’ Report Your directors submit their report together with the financial statements of the Group consisting of Altoro Metals Limited (formerly Variscan Mines Limited) (“the Company”) and its controlled entities for the year ended 30 June 2026, the notes to the financial statements and the auditor’s report thereon. Directors The names and details of the Company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Anthony (‘Tony’) Wehby Non-Executive Chairman (appointed 20 October 2022) Tony is a former Partner of PriceWaterhouseCoopers and Corporate Finance Specialist. Tony is an experienced listed company director with over 50 years of executive and non-executive experience. Having operated in the mining industry for a considerable time, he is currently a non-executive director of Kingston Resources Ltd, a listed Asia Pacific gold producer. Tony has a financial consulting practice focused on strategic advice. Vaughan (‘Tom’) Kent BSc, MAppLing Non-Executive Director (appointed 6 February 2026), Executive Director from 30 March 2026 Tom is a significant shareholder and long-term supporter of the Company. An experienced executive and former ASX-listed chief executive officer, he has a proven record in operational leadership and corporate transactions, holds several senior directorships, and brings over two decades of expertise in risk governance and financial services. Tom holds a BSc in Mathematics and Computer Science from Adelaide University and a Master of Applied Linguistics from Monash University. Dr Frank Bierlein PhD, FAIG, MSED, MSGA Non-Executive Director (appointed 20 October 2022) Frank is a geologist with 30 years of experience as a consultant, researcher, lecturer and industry professional. Additionally, he is an experienced public company director. Frank has held exploration and generative geology management positions with QMSD Mining Co Ltd, Qatar Mining, Afmeco Australia and Aveva NC, and consulted for among others Newmont Gold, Resolute Mining, Goldfields International, Freeport McMoRan, and the International Atomic Energy Agency. He was a non-executive director of Gold Australia Pty Ltd from 2015 to 2019 and chaired the Advisory Board of a Luxembourg based private equity fund between 2014 and 2023. Frank has worked on six continents spanning multiple commodities and over the course of his career has published and co- authored more than 130 articles in peer reviewed scientific journals. Frank obtained a PhD (Geology) from the University of Melbourne, is a Fellow of the Australian Institute of Geoscientists (AIG) and a member of both the Society of Economic Geologists (SEG) and the Society of Geology Applied to Mineral Deposits. Myles Campion BSc (Hons), GradDipBus, MSc Non-Executive Director (appointed 6 August 2026) Myles has more than 35 years of experience across the natural resources sector, having held senior roles spanning mineral exploration, resource analysis, fund management, equities research and project and debt financing. His career combines technical expertise with capital markets knowledge. He has extensive knowledge of the European zinc sector through his long-standing involvement with the Toral Zinc Project in León in northern Spain, which lies approximately 150 kilometres from the Company’s Novales-Udías Project within the same metallogenic belt, and brings with him an understanding of the regional geology, the permitting framework and the operating environment. Page | 3 Directors’ Report Myles holds a Graduate Diploma of Business (Finance), an M.Sc. in Minerals Exploration from the Royal School of Mines in London and a B.Sc. Honours in Geology from the University of Wales College Cardiff. Myles is a non-executive director of Tusker Minerals Ltd. Stewart Dickson BA (Hons), MBA Managing Director (appointed 1 May 2017, resigned 30 March 2026) Nicholas Farr-Jones AM LLB Non-executive Director (appointed 1 July 2021, resigned 6 February 2026) Company secretary Mark Pitts BBus, FCA, GAICD Company Secretary (appointed 2 March 2018) Mark is a Fellow of Chartered Accountants Australia and New Zealand and a graduate member of the Australian Institute of Company Directors. He has more than 30 years’ experience in statutory reporting and business administration. Mark has been directly involved with and consulted to a number of public companies holding senior financial management positions. He is a Principal in the Company Secretarial and CFO advisory divisions of the Automic Group providing secretarial support and corporate and compliance advice, pursuant to a contract with the Company. He has no fixed term with the option of termination by either party with two months’ written notice. Mr Pitts is not entitled to any termination payments other than for services rendered at time of termination. Directorships of other listed companies Directorships of other ASX listed companies held by Directors in the 3 years immediately before the end of the financial year are as follows: Director Company Mr Anthony Wehby Kingston Resources Ltd (4 July 2016 – current) Ensurance Ltd (3 May 2018 – 17 November 2023) Mr Vaughan (‘Tom’) Kent Ensurance Ltd (February 2022 – 17 November 2023) Dr Frank Bierlein Impact Minerals Ltd (13 October 2021 – current) Blackstone Minerals Ltd (12 November 2021 – 27 June 2025) Firetail Resources Ltd (10 November 2022 – September 2023) Mr Myles Campion Tusker Minerals Ltd (20 March 2023 – current) Directors' interests in shares and options As at the date of this report, the interests of the Directors in the shares and options of Altoro Metals Limited were: Director Number of securities held directly and indirectly Ordinary Shares Options Mr Anthony Wehby 34,497,795 4,166,667 Mr Vaughan (‘Tom’) Kent 281,000,000 38,626,934 Dr Frank Bierlein 388,411 - Mr Myles Campion - - Page | 4 Directors’ Report Principal activities The principal continuing activity of the Group is the exploration for economic metal and mineral deposits. Results The net result of operations of the Group after applicable income tax was a loss of $1,452,095 (2025: $920,387). Dividends No dividends were paid or proposed during the year. Review of operations Group Overview During the financial year the Group’s operations were focused on the exploration and evaluation of its wholly owned zinc and polymetallic projects in Spain — the Novales-Udías Zinc Project in Cantabria and the Guajaraz Zn-Pb-Ag-Cu Project in the province of Toledo. It was a year of transition. The Company delivered the San José Mine Re-Start Study, refreshed its Board and executive leadership, completed two equity placements, withdrew from the proposed Irish zinc earn-in and, by the end of the year, had moved from a single-asset restart proposition to a two-project Spanish exploration and development portfolio. That change of direction was given effect shortly after the end of the year, when the Company changed its name from Variscan Mines Limited to Altoro Metals Limited. The Group capitalised $1,530,178 of exploration and evaluation expenditure during the year, substantially all of it on the Spanish projects, and expensed a further $225,690, principally the cost of evaluating the Irish zinc opportunity which the Company did not proceed with. Deferred exploration and evaluation expenditure at 30 June 2026 was $12,179,767 (2025: $10,672,695), of which $11,339,829 relates to Novales-Udías and $839,938 to Guajaraz. The loss after income tax for the year was $1,452,095 (2025: $920,387) and cash on hand at 30 June 2026 was $411,730 (2025: $451,939). Novales-Udías Zinc Project The Novales-Udías Project is an advanced zinc-lead project in the Basque-Cantabrian Basin, approximately 30 kilometres south-west of Santander in northern Spain. It comprises approximately 111 square kilometres of granted tenements over a 12-kilometre mineralised trend and is centred on the former producing San José and Udías underground mines. The Mineral Resource Estimate for the Project is 3.4 million tonnes at 7.6% Zn and 0.9% Pb (Refer ASX Announcement dated 9 December 2024) and was unchanged during the year. Permitting and approvals In September 2025 the Government of Cantabria formally approved the Restoration Plan over the San José and Udías mining licences, a key regulatory step towards a restart of production (Refer ASX Announcement dated 3 September 2025). In the December 2025 quarter the Government of Cantabria approved the Preliminary Mining Plan (Anteproyecto) over the same licences. The Anteproyecto defines the general characteristics of the proposed operation and, together with the mining licences, the Restoration Plan and the annual Plan de Labores, allows the Company to undertake pre-works, underground development, trial mining and small-scale exploitation ahead of a restart. The mining licences are valid to 2035 and may be extended for a further 30 years. Additional permit applications and the associated workstreams to support them are underway, and further permitting is required to support a final investment decision. San José Mine Re-Start Study The San José Mine Re-Start Study was completed and released during the March 2026 quarter (Refer ASX Announcement dated 25 March 2026). The Study set out a staged, low capital ‘starter operation’ leveraging approximately 1.6 kilometres of existing underground development, with an initial mine life of 11 years drawing on approximately half of the current Mineral Resource. On the base case the Study indicated:  pre-production capital of approximately €19 million (A$33 million) over a pre-production period of approximately 2.5 years;  a post-tax net present value at a 5% discount rate of approximately €38 million (A$67 million), and an internal rate of return of 45%;  post-tax free cash flow of approximately €53 million (A$93 million) and payback of approximately 3.8 years; and Page | 5 Directors’ Report  total cash costs of approximately €63 per tonne (A$110 per tonne), with first concentrate targeted for 2028. The Study is preliminary in nature. It is based in part on Inferred Mineral Resources and on low-level technical and economic assessments, and is insufficient to support the estimation of Ore Reserves or to provide any assurance of economic development. There is no certainty that the Company will be able to raise the funding required to implement the Study, or that the outcomes set out in it will be realised. Following the Study the Company turned its attention to funding, early works planning and the permitting pathway required to support a final investment decision, prioritising non-dilutive financing options. The Study contemplates only part of the current Mineral Resource and does not include the adjacent Udías Mine, which the Company regards as the principal avenue for scaling the operation over time. Exploration In September 2025 the Company acquired and integrated 146 historic surface drillhole records totalling 52,034 metres over the recently granted Hipólita, Esperanza and Ana Isabel licences. Intersections reported, all outside the current Mineral Resource footprint, included (Refer ASX Announcement dated 16 September 2025):  S-10: 24.0 metres at 12.3% Zn and 0.4% Pb from 254 metres;  S-457: 20.9 metres at 14.0% Zn and 0.8% Pb from 370 metres;  S-414: 17.6 metres at 14.7% Zn and 0.7% Pb from 382 metres;  S-17: 9.5 metres at 24.7% Zn and 1.2% Pb from 365 metres; and  S-6: 2.7 metres at 36.3% Zn and 2.2% Pb from 271 metres. The acquisition took the Project drilling database to 1,221 drillholes for 138,570 metres. In the same quarter a high- resolution 3D laser survey of the Udías Mine mapped the historical underground workings and improved the Company’s ability to model and target mineralisation beyond the current Mineral Resource (Refer ASX Announcement dated 29 September 2025). Underground diamond drilling at the Udías Mine returned the highest-grade intercept drilled by the Company to date, being 6.43 metres at 20.76% Zn and 2.77% Pb in hole UDDT024, together with 7.40 metres at 11.22% Zn in UDDT030 and 7.65 metres at 8.59% Zn and 1.77% Pb in UDDT022 (Refer ASX Announcement dated 11 November 2025). All of the drilling completed at Udías during the year lies outside the current Mineral Resource Estimate. Drilling recommenced in the March 2026 quarter, targeting extensions to known mineralisation and testing new zones along strike towards the San José Mine (Refer ASX Announcement dated 21 January 2026). In May 2026 the Company completed a review and integration of a further historical exploration database covering the Emilia and Margarita mines within the Project, comprising 109 drillholes for approximately 6,720 metres together with underground sampling, geological mapping and mine development records. Historical drilling beneath the Emilia Mine returned 0.85 metres at 23.47% Zn, 1.50 metres at 14.22% Zn and 2.00 metres at 11.29% Zn, and historical underground channel sampling returned 2.85 metres at 33.50% Zn and 3.85 metres at 24.50% Zn with 11.76% Pb (Refer ASX Announcement dated 11 May 2026). The database is being incorporated into the Company’s three-dimensional geological model to support future target generation. Underground geological mapping, structural interpretation and channel sampling continued throughout the year, alongside infrastructure inspections, rehabilitation planning and the technical, environmental and permitting workstreams supporting the proposed restart of the San José Mine. In June 2026 the Board and senior management visited the Project with the Company’s technical consultants and met the President of Cantabria, Ms María José Sáenz de Buruaga, the Regional Minister for Industry, Employment, Innovation and Trade, and the Mayors of Novales and Udías. Guajaraz Project The Guajaraz Zn-Pb-Ag-Cu Project is wholly owned and lies within the historic La Unión Mining District in the province of Toledo, central Spain. During the year the Company completed detailed geological interpretation and drill planning over the Project, drawing on historical mining records and Deep Ground Penetrating Radar surveys to define targets beneath the historically mined David, Stewart and May workings. Capitalised exploration and evaluation expenditure on the Project at 30 June 2026 was $839,938. Page | 6 Directors’ Report Subsequent to the end of the financial year the Company announced the commencement of its maiden diamond drilling programme at Guajaraz, comprising five diamond drillholes for approximately 1,430 metres designed to test extensions to the historically mined polymetallic mineralisation together with additional high-priority structural targets (Refer ASX Announcement dated 10 July 2026). This is the first modern drilling undertaken at the Project and establishes a second active exploration programme alongside Novales-Udías. Midlands and Waterford projects, Republic of Ireland Shareholders approved the proposed earn-in and joint venture with BMEx Pty Ltd, MDF Global Limited and Zinc GroupCo Pty Ltd over the Midlands and Waterford zinc projects in the Republic of Ireland at the annual general meeting held on 28 November 2025. The approval required the definitive agreement to be executed within three months of the meeting. Certain conditions precedent were not satisfied within that period and the agreement was not executed. On 2 July 2026 the Company received written notice terminating the term sheet and has no ongoing rights or obligations in respect of the proposed transaction. No amount was recognised as an exploration and evaluation asset in respect of the Irish projects at any time; the costs incurred in evaluating the opportunity are included in exploration expenditure expensed and written off. Corporate In August and September 2025 the Company issued 413,000,000 ordinary shares at $0.005 per share under the placement announced on 5 August 2025, raising $2,065,000 before costs. On 29 September 2025, following shareholder approval, the Company issued a further 51,301,372 ordinary shares in full satisfaction of a $250,000 shareholder loan and $6,507 of accrued interest. Free-attaching options were issued to participants in the placement on the basis of one option for every two shares subscribed for, exercisable at $0.008 on or before 29 September 2028. In January 2026 the Company entered into a binding term sheet for an unsecured $1,000,000 convertible loan note facility with a syndicate of professional and sophisticated investors (Refer ASX Announcement dated 30 January 2026) and issued 13,125,000 options to the participants. The facility was never drawn and was cancelled on 19 May 2026. The fair value of the options of $74,812 has been recognised in finance expenses. On 19 May 2026 the Company issued 174,064,708 ordinary shares at $0.004 per share under tranche 1 of the placement announced on that date, raising $696,259 before costs. Tranche 2 was approved by shareholders at a general meeting held on 10 July 2026 and completed on 16 July 2026 through the issue of 1,075,935,292 ordinary shares at $0.004 per share, raising $4,303,741 before costs. During the year 772,306 ordinary shares were issued on the exercise of options at $0.008 per share. Ordinary shares on issue increased from 782,857,706 at the beginning of the year to 1,421,996,092 at 30 June 2026. On 22 July 2026 the Company changed its name to Altoro Metals Limited and its ASX code changed from VAR to ARO on 23 July 2026, reflecting its focus on zinc and polymetallic exploration and development in Spain. Australian interests The Company retains a 49% interest in the Callabonna Project in South Australia. During the year Red Metal Limited entered into an earn-in agreement with Chalice Mining Limited under which Chalice may earn into Red Metal’s 51% interest through exploration expenditure, including a minimum commitment to basement drilling within the first twelve months. The Company’s interest and its rights under the existing agreement are unchanged. The Company’s remaining Australian interests are held as royalty or net smelter return interests only, and no exploration expenditure was capitalised in respect of them during the year. Board & Management Changes Mr Nicholas Farr-Jones resigned as a Non-Executive Director on 6 February 2026 and Mr Vaughan (‘Tom’) Kent was appointed a Non-Executive Director on the same date. Mr Stewart Dickson resigned as a director on 30 March 2026. On the same date Mr Kent moved from a non-executive to an executive role. The Company currently does not have a managing director. Subsequent to the end of the financial year, Mr Myles Campion was appointed a Non-Executive Director on 6 August 2026. Page | 7 Directors’ Report Competent Person’s Statement - Previously reported information The information in this report that relates to exploration results and to the Mineral Resource Estimate for the Novales-Udías Project is extracted from the ASX announcements referred to above, each of which is available at www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in those announcements and that all material assumptions and technical parameters underpinning the results and estimates in them continue to apply and have not materially changed. No new exploration information is reported in this report. Certain of the exploration results referred to above are historical in nature and were prepared before the 2012 edition of the JORC Code. It is the opinion of the Company that the exploration data is reliable; although some of the data is incomplete, nothing has come to the Company’s attention that causes it to question its accuracy or reliability. Risk Management The Company takes a proactive approach to risk management. The Board is responsible for ensuring that risks, including emerging risks, and also opportunities, are identified on a timely basis and the Company’s objectives and activities are aligned with the risks and opportunities identified by the Board. Given the size of the Company and its stage of development all Board members are involved and have responsibility for management of risk. Material business risks There are inherent risks associated with the exploration for minerals. The Group faces the usual risks encountered by companies engaged in the exploration, evaluation and development of minerals. The material business risks for the Group include: External Risks Environmental risks The Company’s operations and projects are subject to the laws and regulations of the jurisdictions in which it has interests and carries on business (Spain) regarding environmental compliance and relevant hazards. There is also a risk that the environmental laws and regulations may become more onerous, making the Group’s operations more expensive which may adversely affect the financial position and /or performance of the Group. The Directors are not aware of any Breaches of environmental law by the Company. Government regulations and tenement risks Changes in laws and regulations or government policies may adversely affect the Group’s operations. There is no guarantee that current or future exploration claim applications or existing tenancy renewals will be granted, that they will be granted without undue delay, or that the Company can economically comply with any conditions imposed on any granted exploration tenements. Loss of tenements may adversely affect the financial position and /or performance of the Group. Operating Risks Exploration and development risk The exploration for and development of mineral deposits involves significant risks that even a combination of careful evaluation, experience and knowledge may not eliminate. While the discovery of an ore body may result in substantial rewards, not all exploration activity will lead to the discovery of economic deposits. Major expenditure may be required to locate and establish Ore Reserves, to establish rights to mine, to receive all necessary operating permits, to develop metallurgical processes and to construct mining and processing facilities at a particular site. In addition to the risks described above, the Group’s ability to successfully develop projects is contingent on the Group’s ability to fund those projects through debt or equity raisings. Significant changes in the state of affairs The Directors are not aware of any significant changes in the state of affairs of the Group occurring during the financial period, other than as disclosed in this report. Significant events after the reporting date On 2 July 2026 the Company received written notice terminating the BMEx term sheet, bringing to an end the proposed transaction in respect of the Midlands and Waterford zinc projects in the Republic of Ireland. No amount has been Page | 8 Directors’ Report recognised as an exploration and evaluation asset in respect of those projects at any time; the costs incurred during the year were expensed as incurred. On 16 July 2026 the Company issued 1,075,935,292 ordinary shares at $0.004 per share under tranche 2 of the placement announced on 19 May 2026. On the same date the Company issued 416,666,666 lead manager options, exercisable at $0.008 on or before 29 September 2028, and 16,875,000 ordinary shares to Feldi Limited in lieu of fees. On 22 July 2026 the Company changed its name to Altoro Metals Limited, and its ASX code changed from VAR to ARO on 23 July 2026. Mr Myles Campion was appointed a Non-Executive Director on 6 August 2026. On 14 August 2026 the Company made an investment of $255,000 in Fidelity Minerals Corp. Other than noted above, there were, at the date of this report, no matters or circumstances which have arisen since 30 June 2026 that have significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years. Indemnification and insurance of directors and officers The Company has not, during or since the end of the financial period, in respect of any person who is or has been an officer of the Company or a related body corporate, indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings. The Company maintains adequate Directors and Officers insurance coverage. Insurance premiums During the financial period the Company has paid premiums to insure each of the directors and officers against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director or officer of the Company, other than conduct involving a wilful breach of duty in relation to the Company. The premiums paid are not disclosed as such disclosure is prohibited under the terms of the contract. Likely developments and expected results As the Group’s mineral projects are at an early stage of exploration, it is not appropriate to speculate on likely future developments or results. Shares under option or issued on exercise of options Details of unissued shares or interests under option for Altoro Metals Limited as at the date of this report are: Exercise Price of Option Expiry Date of Options Class of Share received upon exercise Number of Shares under option $0.015 30 November 2026 ORD 152,666,746 $0.01 30 November 2026 ORD 42,619,048 $0.008 29 September 2028 ORD 773,670,039 968,955,833 The above includes 416,666,666 options issued on 16 July 2026. At 30 June 2026 there were 552,289,167 options on issue; refer to Note 13. The holders of these options do not have the right, by virtue of the option, to participate in any share issue of the Company or of any other body corporate or registered scheme. Refer to the Remuneration Report and Notes 12 & 13 to the financial statements for further details of the options outstanding. Page | 9 Directors’ Report During the period, 357,775,679 options were issued, 772,306 options were exercised, and no options lapsed. From 1 July 2026 to the date of this report, 416,666,666 options (included in the table above) have been issued, and no other options have been issued, exercised, cancelled or have lapsed. During the period, no performance rights were issued, cancelled or exercised. From 1 July 2026 to the date of this report, no performance rights have been issued, exercised, cancelled or have lapsed. Remuneration report (audited) This remuneration report for the year ended 30 June 2026 outlines the remuneration arrangements of the Group in accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This information has been audited as required by section 308(3C) of the Act. The remuneration report details the remuneration arrangements for key management personnel (KMP) who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly, including any director (whether executive or otherwise) of the parent company. Details of Key Management Personnel Details of the Key Management Personnel of