Unaudited Interim Statement

Petrel Resources plc (AIM: PET) today announces unaudited financial results for the six months ended 30th June 2025.

Chairman's Statement

Petrel is a junior hydrocarbon explorer with interests in Iraq and Ghana.

Recent months have seen a steady recovery of interest in our sectors: there are now many oil & gas projects available, with promising geology and manageable logistics. There has also been rising interest in energy minerals, from coal to Helium, Lithium and Rare Earths. After a long depression there is rising acceptance that under-exploration since the great financial crisis is causing shortages. So far, the effect has been most dramatic in commodity metals, like gold and copper, but similar trends are emerging elsewhere.

During 2024/25 there has been a quiet swing back to reliable fuels. Investment into renewables continues - boosting demand for minerals, but it is now quietly backed up by reliable fuels. Major energy companies are re-focusing on their cash-generative business, and increasingly stress that this relies on continuation of heavy state subsidies, enhanced prices for consumers and other supports. As a result, fossil fuels continue to grow by circa 1% yearly, and constitute 86% of primary energy supply (EI methodology calculation, 2025).

It is still cheaper to find oil & gas in financial markets than by exploration - though mega-mergers are sensitive.

The European majors who most championed the Green Transition, especially BP and Shell, had been most heavily penalised by financial markets and have now corrected course most vigorously.

Majors are still focused on their core assets in priority basins. They are mostly not entering new basins and are still not heavy participants in farm-in markets. Yet this will change as the cycle progresses.

Both these trends are positive for Petrel: our core business is acquiring high-potential acreage in the Middle East or other neglected area, but to monetise these assets we need either to fund at a premium or farm-out to majors at a premium.

Yet as a long-standing player in industrial minerals, and participants in the EU Commission's Critical Resource Minerals initiative, we can see the West's desperate need to secure independent access both to key deposits as well as processing capacity to deliver high-quality raw materials for the high-tech, defence and Green Transition sectors.

Fiscal terms remain a challenge, as do demands for up-front cash for new acreage. But recent discussions suggest a new realism in how governments are engaging with juniors.

Accordingly the key ingredients may be finally falling into place for greater stock market and farm-out support of juniors embarking on new frontier projects.

Petrel has been investigating acquisition and organic growth opportunities in diverse energy-related sectors and countries. These must be backed by finance and proper legal title. Initial review work gives our experts confidence in the reserve and resource numbers. Potential offtake agreements - both for the EU, as well as China and India are economic at current prices. These are Petrel's strengths.

Based on initial discussions, we do not see offtake, financing, and permitting as insurmountable obstacles in such critical resources.

Financing

The directors, and their supporters, have funded working capital needs, and are prepared to participate in any necessary future fundings.

The board expects to add another one or more Non-Executive Director with the next major deal.

David Horgan

Chairman

The financial information for the six months ended 30 June 2025 and the comparative amounts for the six months ended 30 June 2024 are unaudited.

The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. The interim financial statements have been prepared applying the accounting policies and methods of computation used in the preparation of the published consolidated financial statements for the year ended 31 December 2024.

The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group for the year ended 31 December 2024, which are available on the Company's website www.petrelresources.com

• No dividend is proposed in respect of the period.
• GOING CONCERN

The Group incurred a loss for the financial period of €356,791 (year ended 31 December 2024: loss of €469,878) and had net current liabilities of €1,115,358 (31 December 2024: €1,150,434) at the balance sheet date. These conditions as well as those noted below represent a material uncertainty that may cast significant doubt on the Group and Company's ability to continue as a going concern.

Included in current liabilities is an amount of €1,082,531 (31 December 2024: €1,037,531) owed to key management personnel in respect of remuneration due at the balance sheet date. Key management have confirmed that they will not seek settlement of these amounts in cash for a period of at least one year after the date of approval of the financial statements or until the Group has generated sufficient funds from its operations after paying its third party creditors.

The Group and Company had a cash balance of €42,497 (31 December 2024: €4,838) at the balance sheet date. The directors have prepared cashflow projections for a period of at least twelve months from the date of approval of these financial statements which indicate that additional finance will be required to fund working capital requirements and develop existing projects. As the Group is not revenue or cash generating it relies on raising capital from the public market. On 6 March 2025 the Company raised €298,586 (£250,000) via a placing of shares.

LOSS PER SHARE

Basic loss per share is computed by dividing the loss after taxation for the year attributable to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.

The following table sets out the computation for basic and diluted earnings per share (EPS):

Basic and diluted loss per share The earnings and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:

Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive.

INTANGIBLE ASSETS

As ratification has not yet been achieved in the current year the directors, as a matter of prudence, opted to write down 20% of the carrying value of the Tano 2A Block historic expenditure annually. Accordingly, an impairment charge of €93,316 was recorded in the current period to 30 June 2025. (FY 2024: €186,633).

• Licence obligations;
• Exchange rate risks;
• Uncertainty over development and operational costs;
• Foreign investment risks including increases in taxes, royalties and renegotiation of contracts;
• Financial risk management;
• Going concern and
• Ability to raise finance.
• SHARE CAPITAL

Ordinary Shares -nominal value of €0.0125 Allotted, called-up and fully paid

Movements in issued share capital

On 6 March 2025 the Company announced that it had raised €298,586 (£250,000) through a placing of 23,809,523 new ordinary shares at a placing price of 1.05p per Placing Share. Each Placing Share has one warrant attached with the right to subscribe for one new ordinary share at 2p per new ordinary share for a period of two years.

WARRANTS

On 6 March 2025 a total of 23,809,523 warrants with an exercise price of 2p per warrant were granted as part of the placing. The fair value of the warrants of €73,443 was expensed to the Consolidated Statement of Comprehensive Income. The fair value was calculated using the Black-Scholes valuation model.

The inputs into the Black-Scholes valuation model were as follows:

Grant 6 March 2025

The terms of the warrants granted do not contain any market conditions within the meaning of IFRS 2.

POST BALANCE SHEET EVENTS

There are no material post balance sheets events affecting the Group.

• The Interim Report for the six months to 30th June 2025 was approved by the Directors on 17 September 2025.
• The Interim Report will be available on the Company's website at www.petrelresources.com.