Notes to the condensed consolidated financial statements (unaudited)

For the six months ended 30 June 2025

1.   Corporate Information

The interim condensed consolidated financial statements of Asiamet Resources Limited and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2025 were authorised for issue in accordance with a resolution of the directors on 28 August 2025.

Asiamet Resources Limited (the "Company") is a public company incorporated under the laws of Bermuda.  The Company's shares are admitted to trading on the AIM market of the London Stock Exchange ("AIM") under the symbol "ARS". The Company's corporate office is located at 2^nd Floor, Suite 201 Gedung Ventura, Jl. RA Kartini No. 26, Jakarta Indonesia 12430.

The Group is principally engaged in the exploration and development of mineral properties. The Company's principal mineral property interests are located in Indonesia.

2.   Significant accounting policies

2.1 Basis of preparation

The interim condensed consolidated financial statements for the six months ended 30 June 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2024.

The interim condensed consolidated financial statements for the six months ended 30 June 2025 and 30 June 2024 were not subject to review and were unaudited. The comparative information for the year ended 31 December 2024 was approved by the Board of directors on 29 May 2025 and the Independent Auditor's Report on those accounts was unqualified.

2.2 Going concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realisation of assets and the satisfaction of liabilities in the normal course of business.

For the six months ended 30 June 2025, the Group incurred a loss of US$2.491 million (30 June 2024: US$2.444 million) and had cash outflows from operations of US$2.331 million (30 June 2024: US$2.322 million). The Group's cash balance as at 30 June 2025 was US$0.861 million (31 December 2024: US$2.279 million) and current assets exceeded its current liabilities by US$0.376 million (31 December 2024: net current assets of US$2.554 million).

On 29 May 2025, the Company announced that PT BUMA International Group had agreed to subscribe for an additional 236,516,658 new common shares of US$0.01 each, to be issued in two tranches at a price of 0.80 pence per share. The subscription generated gross proceeds of approximately £1.9 million (approximately US$2.5 million).

Tranche 1, comprising 94,606,663 new shares, was settled on 3 June 2025, raising approximately US$1.0 million. Tranche 2, comprising 141,909,995 new shares, was settled subsequent to the reporting date, on 15 July 2025, raising approximately US$1.5 million.  

Based on the Group's cash forecast, the Board is aware that the Group will require additional funding in the next 12 months to ensure the Group will be able to realise its assets and discharge its liabilities in the normal course of business. 

During the period, the Company also completed the updated BKM Stage 1 Copper Project OFS which has been engineered as a simplified, lower-capex, staged-build heap-leach operation focused on near-surface, higher-grade ore and producing approximately 10,000 tonnes of copper cathode annually.  The OFS confirms that BKM Stage 1 is a technically robust, technically robust project with attractive economics, compliant with Indonesian downstream processing requirements and aligned with national development priorities. Following completion of the OFS, the Company has now commenced the debt financing process for BKM Stage 1 and appointed Grant Samuel to lead a strategic investor engagement program targeting potential partners with the financial, technical, operational, or regional capabilities to support successful project delivery.

The Board has also considered the Company's demonstrated ability to raise equity capital to fund development, exploration, and working capital needs, as well as its capacity to manage the timing of cash flows, implement cost control measures, and adjust expenditure commitments as required. At this stage, based on ongoing discussions with several strategic partners and financing institutions for funding and financing arrangements, there are reasonable grounds to believe that debt and/or equity funding will be available to the Group as and when required.

Based on these factors, the Board is satisfied that the Group has adequate resources to meet its obligations as they fall due and that the going concern basis remains appropriate for these financial statements.

While the Company has been successful in the past in obtaining financing largely through private placements and equity raises, as and when required, there is no assurance that it will be able to obtain and/or conclude adequate debt or equity financing arrangements in an acceptable timeframe or that such financing will be on terms acceptable to the Company, as future funding is uncertain until secured. These factors indicate the existence of an uncertainty which may cast a significant doubt on the Group's ability to continue as a going concern. 

The financial report does not contain any adjustments relating to the recoverability and classification of recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary should the Group not be able to continue as a going concern.

2.3 New standards, interpretations and amendments adopted by the Group

The Group has adopted all of the new or amended standards and interpretations issued that are mandatory for the current reporting period. The impact on the financial performance and position of the Company from the adoption of the new or amended Accounting Standards and Interpretations was not material. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

3.   Exploration and evaluation expenditures

The details of exploration and evaluation expenditures expensed during the period ended 30 June 2025 and 30 June 2024 are as follows:

4.   Property, Plant & Equipment

5.   Receivables and other assets

(1)   The Group has provided an allowance for impairment against the Indonesian VAT receivables which will be recoverable once production commences in accordance with Indonesian regulation. An impairment expense of $0.053 million was recognised for the half year ended 30 June 2025 (30 June 2024: $0.043 million).

6. Related party transactions

On 29 May 2025, the Company announced that PT BUMA International Group Tbk (IDX: DOID) increased its stake in Asiamet Limited from 40.2% to 44.6% through a subscription of US$2.5 million. The placement was undertaken at 80 pence per share. The Subscription was completed in two tranches:

•     Tranche 1: 94,606,663 new Common Shares ("Tranche 1 Shares") raising approximately US$1.0 million, settled on 3 June 2025; and

•     Tranche 2: 141,909,995 new Common Shares ("Tranche 2 Shares") raising approximately US$1.5 million, settled on 15 July 2025, subsequent to the end of the reporting period. See note 8.

7. Share based compensation expenses

For the six months ended 30 June 2025, the Group has recognised US$0.100 million (30 June 2024: US$0.110 million) of share-based compensation expense in the statement of profit and loss for performance rights to non-executive Directors in respect of their 2025 director fees.

8.  Subsequent events

On 15 July 2025, the Company announced the settlement of Tranche 2 of the subscription with PT BUMA International Group, raising gross proceeds of approximately US$1.5 million through the issue of 141,909,995 Tranche 2 Shares.  Following Tranche 2 Admission, PT BUMA International Group hold 44.6% of Asiamet's issued share capital.