NOTES TO THE FINANCIAL STATEMENTS

1.   General information

The Company is a public limited company incorporated and domiciled in England (registered number: 06275976), which is listed on the London Stock Exchange. The registered office of the Company is 167-169 Great Portland Street, Fifth Floor, London, England, W1W 5PF.

2.   Basis of preparation of Financial Statements

The condensed interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Statements" as adopted by the United Kingdom and the Disclosure and Transparency Rules of the UK Financial Conduct Authority. The condensed interim financial statements should be read in conjunction with the annual financial statements for the period ended 30 June 2025, which have been prepared in accordance with UK-adopted international accounting standards.

The interim financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006. It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of UK-adopted International Accounting Standards.

Statutory financial statements for the period ended 30 June 2025 were approved by the Board of Directors on 24 October 2025 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified and concluded that a material uncertainty exists that may cast doubt on the group's ability to continue as a going concern. The condensed interim financial statements are unaudited. 

Going concern

These financial statements have been prepared on the going concern basis. The Group incurred losses of £523,218 and had net liabilities of £413,647 at 31 December 2025.  Following the period end, in January 2026, the Group successfully raised £1,850,000 before placing costs through the issue equity.  These funds will be used to further the Group's exploration and evaluation activities at its Australian Licences.  The Board have prepared forecasts for the next 12 months and consider that the cash position at the date of this report will be sufficient to meet the Group's ongoing commitments as they fall due over the course of the next 12 months.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2025 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.cloudbreakdiscovery.com. The key financial risks are liquidity risk, credit risk, interest rate risk and unlisted investments.

Critical accounting estimates

The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in Note 4 of the Company's 2025 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

2.1. Accounting policies

The same accounting policies, presentation and methods of computation are followed in the interim consolidated financial information as were applied in the Group's latest annual audited financial statements except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 July 2025, and will be adopted in the 2026 annual financial statements. 

Changes in accounting policy and disclosures

i)    New standards and amendments adopted by the Group

The International Accounting Standards Board (IASB) issued various amendments and revisions to International Financial Reporting Standards and IFRIC interpretations. The amendments and revisions were applicable for the period ended 31 December 2025 but did not result in any material changes to the financial statements of the Group or Company.

ii) New standards, amendments and interpretations in issue but not yet effective or not early adopted

Standards, amendments and interpretations that are not yet effective and have not been early adopted are as follows:

The Group is evaluating the impact of the new and amended standards above which are not expected to have a material impact on the Group's results or shareholders' funds.

3.   Dividends

No dividend has been declared or paid by the Company during the six months ended 31 December 2025 (2024: £nil).

4.   Investments held by subsidiaries

Financial assets at fair value through profit or loss are as follows:

Investments were classified as held for trading and recorded at their fair values based on quoted market prices (if available). Investments that do not have quoted market prices are measured at cost due to the limited amount of information available related to the fair value of the investments.

5.   Debentures Receivable

Masten Unit, United States (G2 Energy Corp ("G2"))

In August 2025 the Company agreed the sale of a Debenture previously provided to G2 for a total consideration of £175,000, as disclosed in the year end 30 June 2025 Financial Statements, comprising of an upfront payment of £50,000, a deferred payment of £50,000 and the elimination of a debt owed by the Company of £75,000.  As a result, the value of the debenture was written down to the sales value of £175,000 at the 30 June 2025.  At 31 December 2025 the deferred consideration of £50,000 remained outstanding and is included within Trade and other receivables.

6.   Convertible loan notes

7.   Share capital and premium

On 28 August 2025 the Company issued 120,000,000 new ordinary shares of £0.001 each at a placing price of £0.0025 per share for gross proceeds of £300,000.

On 5 September 2025 the Company raised gross proceeds of £600,000 through the placing of 126,315,790 ordinary shares at a price of £0.00475 per share.  The company issued 30,615,127 ordinary shares pursuant to this placing and borrowed the remaining 95,700,663 ordinary shares from an existing shareholder, Crestmont Invest Inc ("Crestmont") through a Stock Lending Agreement ("Loan Shares").  The Loan shares will be issued to Crestmont following the approval of a prospectus in early 2026.  The Stock Lending Agreement does not provide for any interest payments of other cash consideration to be made to Crestmont.   At the balance sheet date, £462,232 is included in current liabilities reflecting the cash received in relation to the loan shares.

8.   Earnings per share

The calculation of the basic loss per share of 0.04p (2024: 0.1p) is based on the loss attributable to equity owners of the group of £523,218 (2024: loss of £1,022,322)), and on the weighted average number of ordinary shares of 1,354,064,599 (2024: 905,140,901) in issue during the period.

In accordance with IAS 33, no diluted earnings per share is presented as the effect on the exercise of share options or warrants would be to decrease the loss per share.

9.   Events after the reporting date

On 21 January 2026 the Company completed the acquisition of certain tenements through the issuance of an aggregate of 117,000,000 new ordinary shares of £0.001 each.

On 22 January 2026 the Company raised gross proceeds of £1,850,000 through the issuance of 330,357,145 new ordinary shares at a placing price of £0.0056 per share.  The Company also announced that it will issue 330,357,145 warrants exercisable at a 50% premium to the placing price, with a three-year term, upon approval of the prospectus in early 2026.

10.  Approval of interim financial statements

The Condensed interim financial statements were approved by the Board of Directors on 24 March 2025.