Hartshead Resources (HHR) investor relations material

Executive summary

• Entered a binding Scheme Implementation Deed with ACAM for a 100% acquisition via a court-approved scheme of arrangement, offering shareholders A$0.014 per fully paid share and A$0.0007 per partly paid share, a 133% premium to last close and 114% to 30-day VWAP.

• Scheme implies a fully diluted equity value of approximately A$40 million, providing certainty and liquidity to shareholders and mitigating development and funding risks for UK Southern Gas Basin assets.

• Board unanimously recommends the Scheme, with directors holding 10.27% voting power intending to vote in favour, subject to no superior proposal and a positive independent expert conclusion.

• Scheme expected to be implemented in the first half of 2026, pending shareholder and regulatory approvals.

Significant events and developments

• Key Scheme milestones: First Court Hearing (29 April 2026), Scheme Booklet dispatch (early May), Scheme Meeting (early June), Second Court Hearing and Effective Date (mid-June), Implementation Date (late June).

• Scheme not subject to financing conditions; subject to shareholder, court, independent expert, and regulatory approvals.

• No substantive oil and gas production activities during the quarter; focus remained on development and transaction execution.

Financial highlights

• Exploration and evaluation expenditure for the quarter was A$(0.05) million post joint venture contributions.

• Payments to related parties and associates totaled A$346,205 for the quarter, covering salaries, superannuation, and directors' fees.

• Net cash used in operating activities was A$(413,000) for the quarter and A$(745,000) for the nine months.

• Net cash from investing activities was A$64,000 for the quarter, with a year-to-date outflow of A$(1,318,000).

• Cash and cash equivalents at quarter end were A$13.56 million.