First Class Metals PLC

Half Yearly Report

For the Six Months Ended 30 June 2025

First Class Metals PLC ("First Class Metals", "FCM", or the "Company"), UK listed company focused on the discovery of economic metal deposits across its exploration properties in Ontario, Canada, is pleased to present its interim results for the six months ended 30 June 2025.

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For further information, please contact:

James Knowles, Executive Chair
Email: [email protected]
Tel: 07488 362641

Marc J Sale, CEO and Executive Director
Email: [email protected]
Tel: 07711 093532

Novum Securities Limited (Financial Adviser)
David Coffman
Website: www.novumsecurities.com
Tel: (0)20 7399 9400

Axis Capital Markets (Broker)
Lewis Jones
Website: Axcap247.com
Tel: (0)203 026 0449

Chairman's Statement

The first half of 2025 has been one of both operational progress and significant corporate developments for First Class Metals PLC. Our exploration efforts in Ontario, Canada, have advanced materially, particularly at the flagship Sunbeam and North Hemlo Properties. We have also taken important steps in corporate governance, funding strategy, and portfolio management to position the Company for sustainable growth.

The early part of the year saw the Board focus on completing the strategic investment from 79th GRP Limited ("79th GRP") that had been announced in December 2024.  The first stage of this investment was completed on 25 February 2025 following the passing of the necessary resolutions at a General Meeting of the Company and the publication of an FCA approved prospectus. This also saw  David Webster appointed as a director and Non-Executive Chairman. Immediately following this, the media reported that allegations had been made by the City of London Police concerning 79th GRP and as result the second stage of the investment did not proceed and Mr Webster resigned from the Board.  79th GRP subsequently appointed administrators.

Despite the second stage of a planned strategic investment not proceeding, the Board moved swiftly to secure the Company's financial flexibility through alternative funding arrangements. This decisive action has allowed us to maintain momentum across our exploration programmes without disruption. Encouragingly, we have received strong interest from a range of potential partners - both equity and non-equity, reflecting continued market recognition of the quality, scale, and strategic positioning of our asset portfolio.

At Board level, my return as Executive Chairman has provided continuity of leadership and sharpened our strategic focus. We have reinforced our governance framework and operational discipline to ensure that the Company remains agile in both its technical execution and its corporate decision-making.

With a robust project pipeline, a clear technical roadmap, and a well-capitalised plan for the months ahead, we have entered the second half of the year with renewed energy. Our focus is on delivering tangible progress at our priority projects, advancing towards defined value milestones, and ensuring that First Class Metals continues to strengthen its standing as one of the most active and ambitious exploration companies in Ontario.

James Knowles
Executive Chairman

Operational Review

Sunbeam Project

Work at Sunbeam during the first half of 2025 has centred on the winter exploration programme and the ramp-up of the current field season. Winter lake sediment sampling was undertaken across both the original property and the recently staked extension ground, marking the first systematic geochemical coverage of these new areas. Reference samples were also collected around the historic Sunbeam, Roy, and Pettigrew developments to benchmark anomalism levels.

Preliminary results have highlighted several new gold-anomalous catchments within the extension ground, extending the known mineralised footprint and providing fresh targets for follow-up. Importantly, the winter fieldwork was complemented by the input of Professor Mary Louise Hill, whose on-site structural observations at Roy have sharpened our understanding of the controls on mineralisation. This insight is now being integrated with soil geochemistry, geophysics, and LiDAR interpretation to further refine drill targeting.

The late-2024 orientation soil survey, which revealed cohesive gold anomalies, most notably around the Roy zone, is now being expanded into a wider grid, focussed on a section of the Roy lineament. This larger survey aims to identify additional zones along the Roy structure, prioritising those with the strongest gold-in-soil responses for drilling consideration.

This systematic approach, combining Professor Hill's structural expertise with targeted geochemical and geophysical programmes, is designed to rapidly build the geological model for Sunbeam. By moving from orientation work to a wider coverage sampling and prioritised follow-up, the focus is on enabling cost-effective drill targeting while preserving optionality across the district-scale property.

North Hemlo Project

The 2025 field season has built upon the work completed in 2024. Results from stripping, channel sampling, and soil surveys along the Dead Otter Trend (DOT) have confirmed a significantly wider gold anomalous corridor, now interpreted to be approximately 30m in width over a strike length exceeding 3km. High-grade grab samples up to 19.6 g/t Au, along with strong molybdenum pathfinder signatures, highlight the trend's geological significance and its similarity to the Barrick Hemlo gold system.

Winter work, including lake sediment sampling and Very Low Frequency (VLF) geophysics, has refined target areas for future drilling campaigns. Structural analysis, integration of LiDAR data, and magnetic survey results are expected to optimise drill targeting and improve the cost-effectiveness of exploration.

Kerrs Gold Project

The Kerrs Gold Project remains an important strategic holding within the portfolio, located in the prolific Abitibi Greenstone Belt, one of the most established and well-endowed gold-producing regions in the world. The property hosts a historical NI 43-101 inferred resource of 386,467 ounces of gold at an average grade of 1.71 g/t, underscoring its potential as a meaningful gold asset within a highly competitive district.

During the first half of 2025, work has focused on a detailed geophysical interpretation of the high-resolution magnetic survey completed in 2024. This exercise is aimed at enhancing the geological understanding of the property and identifying areas of structural and lithological interest that could offer future optionality. Discussions are also progressing to secure access to the complete historical drill database, which would allow for a more comprehensive evaluation of the resource and surrounding exploration potential.

While no immediate plans are in place to advance Kerrs to drilling, the property's combination of historical work, district location, and resource pedigree provides First Class Metals with flexibility in how best to unlock its value. This could include selective technical studies, further geophysical analysis, or strategic transactions, depending on how its best fits within the wider corporate and operational objectives.

Activities on Other Properties

·      Esa Project: Infill soil lines are being planned to refine the large gold anomaly and identify stripping targets.

·      Zigzag Lithium Project: Metallurgical studies are under consideration for the hard rock lithium mineralisation.

·      Quinlan Lithium Property In line with the Company's ongoing portfolio review, First Class Metals PLC confirms that it will not be proceeding with the Quinlan Lithium Property earn-in agreement originally announced on 21 March 2024. This decision reflects the Company's focus on advancing its core gold projects where the Board believes the potential to deliver near- to medium-term value for shareholders is strongest.

Corporate Developments

·      Board Changes: David Webster was appointed and subsequently stepped down as Non-Executive Chairman during the period. Following his resignation, James Knowles resumed the role of Executive Chairman to ensure continuity of leadership and to maintain strategic momentum.

·      Fundraising: In June 2025, the Company successfully raised gross proceeds of £520,000 through the issue of 26,000,000 new ordinary shares at 2p per share - a modest 7% discount to the prevailing market price.

The placing, arranged by Clear Capital Markets, was strongly supported by institutional and high-net-worth investors. The proceeds have strengthened the Company's working capital position and are being deployed towards targeted early-summer exploration programmes across our portfolio, aimed at refining key targets ahead of more intensive fieldwork later in the season.

·    Strategic Innovation in Funding: In July 2025, First Class Metals signed a non-binding Memorandum of Understanding (MOU) with Valereum Plc, a market-leading digital asset infrastructure group, to explore the potential application of regulated tokenisation for mineral exploration project funding

This initiative seeks to evaluate whether a digital, project-level funding model could provide non-dilutive capital, broaden access to global investors, and align with emerging ESG-focused investment trends. While exploratory in nature, this collaboration positions First Class Metals at the forefront of innovative financing within the junior exploration sector, with the potential to transform how early-stage mineral projects are funded and advanced.

·      Strategic Portfolio Activity: During the same period, the Company signed a non-binding Letter of Intent for a potential disposal of one of its properties for an all-cash consideration. While there is no certainty that this transaction will proceed, due diligence is progressing positively, and the proposal reflects growing third-party interest in the Company's highly prospective portfolio.

Outlook

The exploration results continue to validate the geological potential of the core assets, with North Hemlo and Sunbeam leading the pipeline of growth opportunities. With targeted work programmes ready for execution and ongoing funding initiatives, the Board is confident in its ability to advance the projects and deliver value for shareholders.

The current strength in the gold price, underpinned by persistent macroeconomic uncertainty, strong central bank buying, and a tightening supply-demand balance, is creating a supportive environment for junior explorers. Historically, such conditions have driven renewed investor interest in early-stage companies with quality projects and credible exploration strategies - a dynamic that First Class Metals is well positioned to benefit from.

At Sunbeam, both the expanded soil sampling programme and the VLF geophysical survey have been completed, with results expected in the coming weeks. These datasets will be integrated to refine target definition, with drilling at priority targets at both Sunbeam and North Hemlo considered probable based on current planning and resourcing. Work at Kerrs and Esa is also anticipated to progress in parallel, with activity paced to align with our disciplined capital management approach. Across all projects, the Board remains committed to technical excellence and to maintaining clear, transparent engagement with all stakeholders.

Financial Review

As an exploration company without current revenues, the financial position is managed to prioritise expenditure on value-accretive exploration activities. The equity issue in February 2025 provided working capital to advance our projects while alternative funding options are explored.

Operating costs for the period reflect the execution of winter and early spring exploration programmes, along with corporate expenses associated with governance changes, regulatory compliance, and stakeholder communications. Cash resources at the end of the period provide a sufficient runway into the second half of the year, with additional funding discussions ongoing.

Post Period Highlights

Sunbeam Expansion: First Class Metals expanded the Sunbeam property by entering into an option agreement over two additional claim blocks, increasing the land package to more than 90km². This strategic addition strengthens the project's position between Agnico Eagle's Hammond Reef deposit and its regional holdings, further enhancing the scale and prospectivity of Sunbeam.

Geophysical & Soil Programmes:  A Very Low Frequency (VLF)-magnetic survey covering 17.1km of grid and an extensive soil sampling programme was completed at Sunbeam. Results are now undergoing interpretation, with both datasets expected to refine drill target selection across the >10km Roy lineament and associated structures.

Corporate Development - Issue of Equity:  On 10 September 2025, 276,924 ordinary shares were issued to satisfy the first Sunbeam South-East share payment, bringing the Company's issued share capital to 233,932,820 ordinary shares.

Board Strengthening:  In September 2025, the Board was further strengthened by the reappointment of Marc J. Sale as an executive director. Having remained CEO throughout, his return to the Board ensures leadership and alignment at a pivotal stage in advancing the Company's Ontario gold portfolio.

Quinlan Lithium Property In line with the Company's ongoing portfolio review, First Class Metals PLC confirms that it will not be proceeding with the Quinlan Lithium Property earn-in agreement originally announced on 21 March 2024. This decision reflects the Company's focus on advancing its core gold projects where the Board believes the potential to deliver near- to medium-term value for shareholders is strongest.

Interim Financial Report

This interim financial report does not include all the notes of the type normally included in an annual financial report.  Accordingly, this report should be read in conjunction with the financial statements for the year ended 31 December 2024 and any public announcements made by First Class Metals Plc during and subsequent to the interim reporting period.

Principal Risks

The principal risks and uncertainties for the remaining six months of the financial year remain the same as those contained within the annual report and accounts as at 31 December 2024.

Related- party transactions

See note 13 for a list of the related party transactions that have taken place in the first six months of the current financial year. There have been no changes in the related party transactions described in the last annual report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year.

Post Reporting Date Events

See note 12 for a list of these events.

Statement of directors' responsibilities

The directors confirm that these condensed interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

·    an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·    material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

By order of the board

James Knowles

Executive Chairman

29 September 2025

Consolidated Income Statement for the Period from 1 January 2025 to 30 June 2025

Consolidated Statement of Financial Position as at 30 June 2025

Consolidated Statement of Changes in Equity for the Period from 1 January 2025 to 30 June 2025

Consolidated Statement of Cash Flows for the Period from 1 January 2024 to 30 June 2024

Notes to the Financial Statements for the Period from 1 January 2024 to 30 June 2024

The Company is a public company limited by share capital, incorporated and domiciled in England and Wales.

The principal activity of the Company was that of a holding company.

The principal activity of the Group was that of the exploration of gold and other semi-precious metals as well as battery metals critical to energy storage and power generation solutions.

The Company's ordinary shares are traded on the London Stock Exchange (LSE) under the ticker symbol FCM.

The address of its registered office is:

Suite 24 Manor Court Offices

Salesbury Old Road

Ribchester Preston

Lancashire PR3 3XR

United Kingdom

These unaudited interim results comprise the Company and its subsidiary, First Class Metals Canada Inc.

The Company's interim report and accounts for the six months ended 30 June 2025 have been prepared using the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006.

These interim financial statements for the six months ended 30 June 2025 should be read in conjunction with the financial statements for the year ended 31 December 2024, which have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as applied in accordance with the provisions of the Companies Act 2006. The interim report and accounts do not include all the information and disclosures required in the annual financial statements. 

The interim report and accounts have been prepared in accordance with IAS34 (interim financial statements) and on the basis of the accounting policies, presentation and methods of computation as set out in the Company's December 2024 Annual Report and Accounts, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 January 2025 and will be adopted in the 2025 annual financial statements. 

The financial information is presented in Pounds Sterling, rounded to the nearest pound and has been prepared under the historical cost convention.

The interim report and accounts do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. These interim financial statements were approved by the Board of Directors on XX September 2025. The results for the six months to 30 June 2025 and the comparative results for the six months to 30 June 2024 are unaudited.  The figures for the year ended 31 December 2024 are extracted from the audited statutory accounts of the Company for that period.

Going Concern

The Directors have confirmed their intention to support the Company whilst it is in the process of raising funds to achieve its business plans. The Directors consider that sufficient resources are available to support the Company's operations for the foreseeable future and therefore believe that the going concern basis of preparation is appropriate.

2  Loss per share

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

There are potentially issuable shares all of which relate to share warrants issued as part of placings in 2022. However, due to the losses for the year the impact of the potential additional shares is anti-dilutive and has therefore not been recognised in the calculation of the fully diluted loss per share. 

The calculation of the basic and diluted earnings per share (EPS) has been based on the loss attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding.

Group

Group subsidiaries

Details of the group subsidiaries as at 30 June 2025 are as follows:

* indicates direct investment of the company.

Allotted, called up and fully paid shares

The group's exposure to market and liquidity risks, including maturity analysis, relating to loans and borrowings is disclosed in note 15 "Financial risk review".

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities.

During the period, the Group incurred consultancy and travel expenses in relation to the intangible assets from Specialist Exploration Services (Scotland) Limited, a company controlled by a common director. The services were for £73,084  (Dec 2024: £111,116) of which £ nil was outstanding at 30 June 2025.

During the year, the Group incurred director's fees for A Williamson through Vrynwy Limited. The services were for £20,650 (2024: £ 39,315) of which £nil was outstanding at 30 June 2025.

During the year, the Group incurred director's fees for M Bamber through Bufalo Associates Limited, a company controlled by a common director. The services were for £23,000 (Dec 2024: £15,750) of which £Nil was outstanding at 30 June 2025.

During the year ended 30 June 2025, the Company repaid in full the director's share loan of 9,500,001 ordinary shares previously provided by James Knowles, by issuing 9,500,001 ordinary shares back to him. No new share loans were made by James Knowles in the year. At 30 June 2025, the amount outstanding in respect of directors' share loans was nil (Dec 2024 9,500,001).