Pensana Plc – Unaudited Interim results for the six months ended 31 December 2025

27 March 2026LSE: PRE

Pensana Plc

(«Pensana», «the company» or «the group»)

Unaudited Interim results for the six months ended 31 December 2025

The board is pleased to present its review of Pensana Plc, the rare earth
exploration, mining and processing group, whose flagship assets are the Longonjo
Rare Earth Mine and the Coola exploration project in Angola alongside its
downstream strategy to establish a U.S. mine-to-magnet supply chain.

Highlights

· Main construction activities at the Longonjo Rare Earth Mine continue at
pace with commissioning scheduled for 2027.
· Strategic investment of US$165 million by Cascade Natural Resources
(Cascade).
· Detailed evaluation of the Longonjo flowsheet has identified the scope to
increase the Heavy Rare Earth Oxides (HREO) up to fivefold contained in the
Mixed Rare Earth Carbonate (MREC).
· Advanced engagement with the Export-Import Bank of the United States (U.S.
-EXIM) to accelerate the company’s mine-to-magnet supply chain and support the
US$160 million debt funding of the Longonjo Rare Earth Mine (Longonjo).
· Equity placing of ~US$10 million from long-term major shareholder M&G
Investment Management (~US$7 million) and other institutional investors (~US$3
million).
· Ongoing support from major shareholder FSDEA via the partial conversion of
their US$15 million loan into equity.
· Memorandum of understanding with Vacuumschmelze GmbH & Co. KG to support the
production of its recently commissioned eVAC Magnetics (eVAC) facility in
Sumter, South Carolina, targeting 2,000 tonnes per annum of rare earth magnets.
· Major drill programme announced to increase Longonjo resource to over one
billion tonnes.
· Completion of Coola drilling programme to test the potential for a deeply
weathered and supergene enrichment central diatreme, as occurs at the Longonjo
carbonatite.
· Appointment of rare earths industry expert Karen Brown as chief operating
officer, effective 1 October 2025.

CEO’s Review

Dear Pensana Shareholders,

It is with great pleasure that I can confirm the significant progress that has
been made on multiple fronts over the Period.

With the engineering team, ably led by Project Manager Kevin Botha, the world
class Longonjo Rare Earth project has now been taken through design, engineering
and pre-construction and into main construction.

The main pre-construction facilities have been installed on-site and are
operational, including the camp and accommodation, construction and site power
and water treatment facilities. The process plant terrace and contractor’s
laydown areas have been completed with preparations for piling operations well
advanced. Bulk earthworks and starter walls for the tailing’s storage facility
are underway following completion of site clearing. At the time of writing, the
aggregate and concrete batching plants are being commissioned for the first
concrete pours scheduled for April 2026. Major equipment vendor packages are
progressing on schedule.

Ongoing community and camp-related activities continue to form a major element
of our on-site development with continued focus on the Resettlement Action Plan
(RAP) and the Livelihood Restoration Programme (LRP) supported by the
demonstration plots under cultivation. The Transitional Support Programme for
Project Affected Households also focussed on the training of local residents in
accommodation and messing-related activities in the camp as well as training in
minor maintenance works associated with the camp and other project-related
activities.

These on-site developments have all been taking place against a backdrop of
continuing tightening in supply chains, with the Company experiencing increased
market interest in expanding the Longonjo Project beyond the planned 2,400
tonnes per annum of NdPr production and further leveraging the scale of the
Longonjo resource base.

Since Q4 2025, the quoted Neodymium/Praseodymium oxide price (CIF North America)
has seen a c. 62% increase and this anticipated strengthening price environment
confirms our view that there will be sustained growth in demand for secure,
independent Western-facing supply of rare earth materials.  It has served to
reinforce the strategic importance of our current focus on delivering first
production in 2027.

Over the Period, our engagement with US-based magnet producers has further
intensified, particularly in relation to heavy rare earth supply. This has led
to the identification of an enhanced heavy rare earth recovery stream with the
potential to increase Dy and Tb output by up to fivefold, as announced in
November 2025. At full scale, this would position Pensana as one of the
significant producers of heavy rare earths in the Western market.

This combination of increased heavy rare earth production potential and the
substantial scale of the Longonjo orebody, positions Pensana at the centre of
the emerging US-focused rare earth supply chain. It also highlights the
strategic significance of the Project as it enters a period of intensive
construction over the next twelve months, ahead of the 2027 U.S. ban on the use
of Chinese-origin rare earth magnets and materials in defence systems.

Post-period end we announced a US$165 million strategic investment with Cascade.
This strategic funding milestone represents a significant inflection point in
the Company’s development and will unlock several key workstreams that are
contingent on securing this capital. Once complete, the funds will be used to
further advance the Longonjo mine development, satisfy the equity funding
conditions precedent for the Absa debt financing facility, fund additional
drilling programmes to extend the Longonjo life of mine, progress the developing
co-products including HREOs alongside the currently contemplated magnet metals,
and supporting the Nasdaq listing process.

I would once again like to thank our largest shareholder the Angolan Sovereign
Wealth Fund for their continued support and their alignment with our long-term
mine-to-magnet strategy, M&G for their backing and recent equity investment and
the Pensana team for continued commitment in addressing the complexities of
developing a world-class operation and delivering on our mine-to-magnet vision.

Principal activities

Pensana is currently constructing one of the world’s largest rare earth mines at
the Longonjo Rare Earth Mine. Having successfully advanced the Longonjo Project
in Angola through its development phase, the Company has established itself as
one of the most important rare earth developers in over a decade. This progress
comes against the backdrop of a strong Western drive to secure critical
minerals, particularly rare earths for permanent magnets, as part of the biggest
energy and technological transition in history.

Also included in the current portfolio of assets is the Coola Exploration
Project in Angola and a downstream rare earth separation facility. The timing
around the development of these assets is largely dependent on strategic
sequencing in line with the relevant financing frameworks being secured and
evidence of ongoing support from the relevant governments and associated
development agencies.

Activities conducted in the current period were centred around the main
construction of Longonjo which commenced in July 2025, optimisation of the
overall funding structure which resulted in the initial deployment of US$25
million equity invested by FSDEA and the announcement of a US$165 million
strategic investment by Cascade combined with a strategic shift to establish a
mine-to-magnet supply chain in the United States of America (U.S.) through the
potential of a NASDAQ listing, advanced engagement with U.S.-EXIM and partnering
with ReElement and eVAC to support the growing demand in the U.S. market.

The Longonjo construction programme is supported by a fully executed feasibility
study and a JORC-compliant Ore Reserve. The reserve has an average grade of
3.04% total rare earth oxide (TREO) containing 139,000 tonnes of neodymium and
praseodymium (NdPr) oxide for a mine life of over 20 years. The Project is
underpinned by an execution plan centred around an optimised, industry leading
low capital envelope. All of these elements have been subject to a full
technical due diligence review as part of the various funding approval
processes. The current financing package amounts to c. US$268 million for the
Longonjo Rare Earth Project, through the majority owned subsidiary Ozango which
owns 100% of the Longonjo Project.

Exploration activities mainly revolve around mineralogical studies to confirm
processing potential of the rare earth host minerals at the Coola carbonatite
and Sulima West exploration targets, with future plans to advance metallurgical
testwork programmes on the Coola concession orebodies and initial focus on the
surface Sulima West laterite deposit to accelerate plans to use this as
additional feedstock for the Longonjo processing plant.

Strategic equity placement

During March 2026 the company announced a US$165 million strategic investment to
support U.S. mine-to-magnet strategy, by Cascade. This is further to the
announcements of 9 December 2025 and 10 February 2026 and the Notice of General
Meeting dated 10 February 2026 which concluded in an increased total investment
amount of US$165million.

Cascade intends to advance the strategic investment to Pensana and its group
companies by way of:

· Investment of US$15 million into Pensana by way of a subscription for 13.55
million new ordinary shares at 80 pence per share representing a 3.8 % interest
in the Company.
· Investment of US$150 million into the Company’s wholly owned subsidiary
Sable Min Unipessoal Lda (Sable) which is a majority shareholder in Ozango
Minerais S.A. (Ozango) the developer of the Longonjo Rare Earth Mine for a 38.2%
interest in Sable.
· As a result of the strategic investment, Cascade will own 3.8% of Pensana
and 38.2% of Sable.

The strategic investment remains subject to long-form documentation and share
applications which is currently underway.

Alongside the proposed US$160 million Absa debt funding package (U.S.-EXIM
guaranteed) the strategic investment would provide for the construction of the
Longonjo mine, including execution of the recently announced drill programme and
HREE recovery facility, early downstream development initiatives and the costs
associated with the proposed NASDAQ listing along with all corporate costs ahead
of Longonjo’s first production scheduled for 2027.

ABG Sundal Collier, a leading independent Nordic investment bank, has acted as
Pensana’s financial advisor for the strategic investment.

Operating and Financial Review

During the period ended 31 December 2025, the Group reported a consolidated
total comprehensive loss of US$4,521,717 (2024: US$3,191,700). This comprised
administration expenses of US$4,668,792 (2024: US$2,545,911), finance costs of
US$725,908 (2024: US$nil), and net foreign exchange gains of US$321,588 (2024:
US$704,864 loss).

The increase in total comprehensive loss of US$1,330,017 (42%) compared to the
prior period was primarily attributable to:

· An increase in administration expenses of US$2,122,881 (83%), largely driven
by increased site activity and corporate activity, including customs and other
tax payments at Ozango (US$249k), equity raising fees at corporate level
(US$403k), higher legal fees (US$209k), an increased share-based payment charge
(US$608k), and higher employee benefit costs due to additional staff (US$421k);
and
· Partially offset by a favourable movement in foreign exchange of
US$1,026,452, from a loss of US$704,864 in the prior period to a gain of
US$321,588 in the current period. These gains and losses arose from the
settlement of invoices in currencies other than the relevant functional
currencies (USD, GBP, AUD and AOA), as well as the translation of foreign
currency denominated balances.

Net assets as at 31 December 2025 amounted to US$96,855,684 (30 June 2025:
US$50,525,938), primarily comprising capitalised property, plant and equipment
relating to the development of the Longonjo Project. The increase in net assets
of US$46.3 million (92%) compared to 30 June 2025 was principally attributable
to capital injections during the period and continued investment in the Longonjo
project execution.

The Group raised total capital of approximately US$38.4 million during the
period, comprising US$36.7 million of equity and US$1.7 million of short-term
debt. The equity funding included a US$25.0 million investment in Ozango
Minerais S.A. by FSDEA, US$6.7 million from M&G Investments, and US$3.5 million
from other institutional investors.

The capital raised were primarily applied towards:

· Investment in property, plant and equipment relating to the continued roll
-out of the Longonjo capital programme (US$16.0 million);
· Cash outflows supporting ongoing operations (US$3.7 million); and
· Increase in cash on hand at 31 December 2025 (US$19.6 million).

Going concern

The directors have prepared a cash flow forecast for the period ending 30 June
2027 to support the going concern assessment, including estimated timing and
sources of funds to support ongoing operations and project development.

In assessing the going concern basis of preparation, the directors have also
considered the availability of funding and its impact on the progression of the
Longonjo and separation facility projects. Similarly, the directors have also
considered the impact of the ongoing geopolitical landscape, including ongoing
global wars as it relates to availability of funding, costs, marketability of
our product and the potential volatility in the debt and equity markets.

The balance sheet position as at 31 December 2025 reflects a significant
improvement compared to prior periods, with a net current asset position of
US$9.5 million (30 June 2025: US$ 29.1 million net current liability), with the
movement of US$38.6 million mainly a result of net changes in net
creditors/debtors of US$13.8 million driven by settlement of long outstanding
creditors and conversion of US$7.5 million of the FSDEA bridging loan facility
combined with cash available at year-end of US$19.6 million consisting of
US$10.2 million Ozango equity available and US$7.0 million available to support
ongoing corporate expenditure (net of short term borrowings, excluding FSDEA
debt). The overall increase in cash position was mainly a result of equity
raises to the value of US$10 million as announced in December 2025 and the
deployment of US$25 million equity by FSDEA as part of the first tranche of
equity funding deployed at Ozango subsidiary level.

As at 31 December 2025, the uncertainty around going concern is limited to the
company’s ability to settle the remaining balance outstanding under the FSDEA
bridging loan (US$ 8.7 million) as well as the deployment of the remaining funds
towards the construction of the Longonjo Rare Earth Mine, currently underway.
The Board is of the opinion that these uncertainties are sufficiently mitigated
based on the staged conversion of the bridging loan as agreed with FSDEA along
with existing funding approvals in place to support construction of the Longonjo
Rare Earth Mine.

It is anticipated that the contemplated financing across the group may include
further issues of equity, export credit-backed debt financing and/or issuing a
green bond. The ability of the company and group to continue as a going concern
is dependent on securing such additional funding given the forecast expenditure.

Although conditions regarding the financing and cash flow mentioned above
indicate a material uncertainty which may result in the Group being unable to
realise its assets and discharge its liabilities in the normal course of
business, the funding approvals received have provided comfort to the Board of
the Group’s ability to continue as a going concern and work towards raising the
requisite funding as outlined above.

Refer to note 3 to the financial statements for more details on the going
concern statement.

Update on construction activities at Longonjo

Main construction activities at the Longonjo Rare Earth Mine continue at pace
with a twelve-month period of intense activity currently planned as we work
towards commissioning scheduled for 2027.

Initial annual production will be 2,400 tonnes of light magnet metals (NdPr)
accompanied by 73 tonnes heavy magnet metals (DyTb) in the form of clean high
value mixed rare earth carbonate with plans to double production to 4,200 tonnes
NdPr and 122 tonnes DyTb post 2030.

Current resources are over 300 million tonnes and as previously announced an
11,000-metre drill programme has been planned which is designed to increase
resources towards one billion tonnes, which would make Longonjo one of the
world’s largest rare earth deposits ever developed.

The mine will be powered by low cost sustainable hydro-electricity supplied from
the Laúca dam hydropower project. A Power Purchase Agreement (PPA) is in place
with RNT, for the supply of renewable hydropower, providing the Project with a
reliable source of low-carbon energy and further strengthening its
sustainability credentials.

The mine is connected to the Port of Lobito via the U.S. Government backed
Lobito corridor rail and services which are connecting Ivanhoe’s recently
commissioned Kamoa-Kakula copper smelter in the DRC to the Atlantic seaboard.

Discussions are well advanced with a number of parties to establish a U.S. mine
-to-magnet supply chain realigning a major long term supply chain of critical
minerals from Angola to OEM backed magnet producers in the U.S.

Key milestones completed to date are summarised below:

· The main pre-construction facilities have been installed and are
operational, including the camp and accommodation, construction and site power
and water treatment facilities;
· The process plant terrace and contractor’s laydown areas have been completed
with preparations for piling operations well advanced;
· Bulk earthworks and starter walls for the tailings storage facility are
underway following completion of site clearing;
· The aggregate and concrete batching plants are being commissioned for the
first large concrete pours scheduled for March; and
· Major equipment vendor packages are progressing on schedule.

The immediate focus areas over the coming months include TSF bulk excavation and
construction as well as process plant piling and civil construction. This
follows the topsoil stripping completed at the TSF and successful compaction of
the 68,000m2 plant terrace area which was independently verified by SRK
undertaking DPSH/DCP testing across the entire area, mapping load bearing
characteristics in detail to inform final civil design and piling requirements
for individual major equipment installation.

Ongoing community and camp related activities include successful execution of
the Resettlement Action Plan (RAP), the Livelihood Restoration Programme (LRP)
supported by the demonstration plots under cultivation and the Transitional
Support Programme for Project Affected Households (PAH).

Strong demand for product and rare earth prices boasting economics

Since Q4 2025, the quoted NdPr oxide price (CIF North America) has increased
materially, rising from approximately US$83/kg in November 2025 to over
US$135/kg in March 2026.

This strengthening price environment reflects sustained growth in demand for
secure, independent Western-facing supply of rare earth materials and reinforces
the strategic importance of delivering first production in 2027 as scheduled.
The improving pricing backdrop has a direct and favourable impact on projected
project economics.

Against a backdrop of tightening supply chains, the company is experiencing
increasing market interest in expanding beyond the planned 2,400 tonnes per
annum of NdPr production and further leveraging the scale of the Longonjo
resource base.

In particular, engagement with US-based magnet producers has intensified around
heavy rare earth supply. This has led to the identification of an enhanced heavy
rare earth recovery stream with the potential to increase dysprosium and terbium
output up to fivefold as announced in November 2025.

At full scale, this would position Pensana as one of the significant producers
of heavy rare earths in the Western market. The technical team continues to
assess additional recovery pathways to further optimise output. The review has
shown installing a selective Heavy Rare Earth Oxide (HREO) recovery circuit
upstream of product precipitation could materially increase the recovery of Dy
and Tb into the MREC product.

The combination of increased heavy rare earth production potential and the
substantial scale of the Longonjo orebody, positions Pensana at the centre of
the emerging U.S.-focused rare earth supply chain.

Following the partnerships signed in June 2025 with ReElement Technologies,
Hanwa and Toyota Tsusho, and the cooperation agreement executed in October 2025
with Vacuumschmelze, the Company continues to receive interest from additional
magnet producers, including Vulcan Elements, which has partnered directly with
the U.S. Department of War.

Importantly, demand signals are increasingly originating downstream from OEM
sectors spanning defence, automotive, aerospace and hyperscale data
infrastructure, including companies such as Amazon and Microsoft. This
structural pull from end users underscores the strategic relevance of
establishing large-scale, secure and transparent rare earth supply chains
aligned to Western industrial policy priorities.

Environment Social Governance (ESG)

The Group continues to embed ESG at the core of its strategy, underpinned by its
objective of delivering a sustainable source of rare earth materials to the
global market. A strong HSE culture remains central to project execution, with
zero recordable injuries and zero environmental incidents during the period.

Environmental compliance remains robust, with no licence breaches recorded. The
Project has received the required water abstraction licence and an extension to
its environmental installation licence, with broader environmental permitting
progressing in accordance with the development schedule. A Power Purchase
Agreement (PPA) is in place with RNT, for the supply of renewable hydropower,
providing the Project with a reliable source of low-carbon energy and further
strengthening its sustainability credentials.

The Resettlement Action Plan (RAP) continues to advance positively, with strong
stakeholder engagement and over 140 resettlement plots now acquired with full
consent. Following completion of Phase One of the RAP in October 2022, the 28
project-affected households continue to receive transitional livelihood support
through food supplementation packages. Regular engagement is maintained through
the community advisory committee, traditional leadership structures and
authorities at regional, provincial and national levels.

Investment in agricultural test and demonstration plots has progressed, with the
facilities now operational and serving as a hub for community agricultural
training and skills development. The programme continues to evaluate optimal
crop selection and cultivation techniques to enhance productivity and support
sustainable livelihoods. Work has also expanded to include development of the
site tree line, in line with environmental licence requirements.

The Group remains committed to maximising local procurement and employment
opportunities wherever feasible and practical, supporting long-term socio
-economic development in the host region. In parallel, the Company continues to
leverage innovative research to strengthen its sustainability approach,
including ongoing collaboration with leading academic and industry partners to
better understand and quantify the broader societal value of rare earth
development.

Exploration

During the period, Pensana Plc advanced exploration and resource development
activities across its Angolan portfolio, with a primary focus on Longonjo and
the Coola Exploration Project.

i. Longonjo

Preparation has commenced for a 7,000 metre infill drill programme at Longonjo,
designed to provide detailed geological and grade control information ahead of
the planned commencement of mining and stockpiling/blending activities in early
2027. The programme will run in parallel with the previously announced resource
expansion drilling campaign.

Two reverse circulation drilling rigs are expected to be mobilised for drilling
activities during the dry season from May to October 2026. The programme targets
completion of a 10 x 10 metre drill grid across the weathered run-of-mine
material within the initial production zones.

The Longonjo deposit comprises a near-surface blanket of high-grade, NdPr-rich
total rare earth oxides («TREO»), with an average depth of approximately 30
metres. Previous drilling has confirmed that mineralisation extends to depths
exceeding 100 metres beneath the current resource envelope, highlighting
significant resource expansion potential.

The campaign will also include deeper sampling to better define the full
vertical extent of mineralisation and to assess the potential to increase
inferred resources from the current 313 million tonnes at 1.43% TREO towards a
conceptual target of up to one billion tonnes at a similar grade.

To support the programme, a containerised on-site laboratory is being procured,
incorporating sample preparation facilities and an automated XRF analyser to
enable timely and cost-efficient multi-element analysis. Grade control drilling
is expected to remain ongoing throughout most of the life of mine, maintaining a
position approximately one year ahead of mine planning.

The results of the infill and expansion drilling programmes will further support
and refine the current mine and stockpile blending strategy developed with
Practara, strengthening the dataset well in advance of commissioning.

ii. Coola Exploration Project

The Coola Exploration Project licence is located approximately 160km east of the
Port of Lobito in Angola. Pensana, through Coola Mining Lda (in which it holds
an effective 90% interest), was granted the licence in May 2020. The licence
area was initially 7,456km² and has since been reduced to 824km² following three
years of intensive prospecting.

Systematic phased exploration over the past four years has identified two
prospective REE-bearing complexes: the Sulima West alkaline complex and the
Coola carbonatite, located approximately 90km and 40km north of Longonjo,
respectively.

a. Sulima West

Metallurgical testwork on the monazite-rich Sulima West laterite continued
during 2025 with the objective to assess physical separation techniques (gravity
and/or magnetic separation) to produce a concentrate exceeding 35% TREO on site,
which could potentially be economically transported to Longonjo for further
processing.

Results indicate that magnetic separation is more effective than gravity
separation in upgrading the TREO content. However, thus far, both techniques
have failed to achieve the target of 35% TREO at satisfactory recoveries.
Consequently, other alternative processing routes are under consideration.

b. Coola Carbonatite

The Coola carbonatite ring dyke is composed predominantly of dolomite and
ankerite, with minor gangue minerals including iron oxides, barite and quartz.
The principal REE mineral is bastnaesite, with minor monazite and florencite. A
representative sample grading 3.98% TREO was subjected to extensive
metallurgical testwork.

Testwork, including magnetic, enhanced gravity separation and flotation
processes, indicated that the material is not amenable to conventional
beneficiation techniques. Mineralogical analysis demonstrated that REE minerals
are disseminated and largely locked within the dolomite matrix, limiting
upgrading potential.

During 2025, exploration focused on drilling the central sand- and ferricrete
-covered diatreme, identified as a compelling magnetic target from ground
geophysical surveys and interpreted as a potential deeply weathered, supergene
-enriched carbonatite. Seven reverse circulation boreholes were completed.
Drilling intersected shallow transported sands and alluvium overlying nodular
ferricrete, beneath which a serpentinised dunite pipe was encountered intruding
the carbonatitic breccias. TREO grades within the dunite were low (