Announcement PDF Annual Report Year ended 31 December 2025 PO VALLEY ENERGY LIMITED ABN 33 087 741 571 CONTENTS CORPORATE DIRECTORY ........................................................................................................................................... 1 CHAIRMAN’S LETTER TO SHAREHOLDERS................................................................................................................. 2 DIRECTORS’ REPORT ................................................................................................................................................. 3 REMUNERATION REPORT ....................................................................................................................................... 12 AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................................ 19 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................................................ 20 STATEMENT OF FINANCIAL POSITION .................................................................................................................... 21 STATEMENT OF CHANGES IN EQUITY ..................................................................................................................... 22 STATEMENT OF CASH FLOWS ................................................................................................................................. 23 NOTES TO THE FINANCIAL STATEMENTS................................................................................................................. 24 CONSOLIDATED ENTITY DISCLOSURE STATEMENT ................................................................................................. 56 DIRECTORS’ DECLARATION ..................................................................................................................................... 57 INDEPENDENT AUDITOR’S REPORT ........................................................................................................................ 58 TECHNICAL SUMMARY – RESERVES AND RESOURCES STATEMENT ....................................................................... 63 ASX ADDITIONAL INFORMATION ............................................................................................................................ 72 PO VALLEY ENERGY LIMITED ABN 33 087 741 571 CORPORATE DIRECTORY 1 Directors Kevin Bailey AM Chairman Sara Edmonson Non-Executive Director Joseph Constable Non-Executive Director Katrina O’Leary Non-Executive Director Michael Gentile Non-Executive Director Company Secretary Lucia McLean Registered Office Level 5, 191 St Georges Terrace, Perth WA 6000 Rome Office Via Isonzo 34, Rome 00198 Italy Tel: +39 06 42014968 Share Register Automic Level 5, 191 St Georges Terrace, Perth WA 6000 Tel: 1300 288 664 Auditor HLB Mann Judd Level 4, 130 Stirling Street, Perth WA 6000 Solicitors Steinepreis Paganin Level 14, QV1 Building, 250 St Georges Terrace Perth WA 6000 Stock Exchange Listing Australian Securities Exchange (ASX) under the code PVE OTC Markets Group (OTCQB) under the code PVLEF Website address www.povalley.com PO VALLEY ENERGY LIMITED ABN 33 087 741 571 CHAIRMAN’S LETTER 2 Dear Shareholder, On behalf of the Board of Directors, I am pleased to present Po Valley Energy’s Annual Report for the year ended 31 December 2025, a year in which the Company strengthened its position as a profitable and growing domestic gas producer in Italy. The Company delivered a solid financial performance, with revenue of €7.05 million and net profit after tax of €2.72 million. This result was underpinned by consistent production from the Podere Maiar-1 well and reflects the disciplined execution of our strategy and focus on cost control. The strength of this performance has enabled the Board to introduce a maiden dividend policy, demonstrating our commitment to delivering returns to shareholders. During the year, we also made important progress across our development portfolio. The successful acquisition of 3D seismic data, now in processing and interpreting phase, will improve our understanding of all the fields within the Selva Malvezzi Production Concession and enhance our ability to optimise field development and unlock additional reserves. In parallel, we continued to advance our onshore projects, Selva Malvezzi-1, Casale Guida, Ronchi and Bagnarola through the next phases of environmental and development approvals and permitting, which provide a pathway to incremental production growth. We are continuing to evaluate strategic options to unlock value from our offshore Teodorico asset in a manner aligned with market conditions and regulatory developments. The broader operating environment in Italy remains supportive, with increasing emphasis on domestic gas supply and energy security. As a local producer with established infrastructure and a portfolio of development opportunities, Po Valley is well positioned to benefit from these trends. Looking ahead, the Company is focused on building on its existing production base while progressing its development assets in a disciplined manner. We believe this approach provides a clear pathway to sustainable growth and the creation of long-term shareholder value. I would like to acknowledge the dedication of our Board, management team and staff, whose efforts continue to drive the Company forward. I also thank our shareholders for your continued support as we build on this momentum. Yours faithfully, Kevin Bailey AM Chairman PO VALLEY ENERGY LIMITED DIRECTORS’ REPORT 3 The Directors of Po Valley Energy Limited (“the Company” or “PVE”) present their report together with the financial report for the year ended 31 December 2025 of the Group, being the Company and its controlled entities (“the Group” or “Po Valley”). 1. Directors The Directors of the Company at any time during or since the end of the financial year are: Kevin Bailey AM — Director since 22 April 2016 Non-Executive Chairman DipFP, Age 65 Kevin was appointed as a director on 22 April 2016 and as Chairman on 2 May 2022. He has been a shareholder of PVE since April 2008 and brings significant business acumen and experience to the Board. Kevin is a highly successful businessman with a range of business interests, both local and overseas. He worked for 28 years as a Certified Financial Planner and was a founding director of Shadforth Financial Group Limited. He was a member of the Prime Minister’s Community Business Partnership and devotes considerable time to philanthropic interests. Kevin is currently Chairman of Parousia Media Pty Ltd and has served as director of various entities including the Investment Advisory Board of the Timor Leste Petroleum Fund, the $17bn Sovereign Wealth Fund of Timor Leste, Outward Looking International Pty Ltd, Halftime Australia Pty Ltd, Alpha Australia, Empart Inc, and Dads4Kids Fatherhood Foundation. In the past three years, Kevin has not been a director of any other listed company. Sara Edmonson — Director since 23 December 2019 Non-Executive Director BSBA, MBA, Age 46 Sara was appointed as a director on 23 December 2019. Sara has extensive experience in natural gas, the critical transition fuel for a low carbon future. Sara is a former President at Associazione Energia Nazionale, an Italian association created to promote sustainable production, transportation and use of domestic energy and is fluent in Italian, having previously worked both in Italy and internationally for Ernst & Young Transaction Advisory Services. During her tenure at EY, Sara advised numerous blue-chip corporate clients on transactions in Russia, Romania, Turkey and the US including the US$5 billion acquisition of DRS Technologies by Finmeccanica in 2008. She holds an MBA from St John’s University in New York City and a Masters in Sustainability Sciences from Harvard University. Sara led PVE as CEO from July 2010 to 2017 and served on the board of Coro Energy Plc from November 2017 to October 2018 and as executive until March 2019. Sara has spent the last several years focused on the energy transition leading large commercial-scale development of green hydrogen projects in Europe. She has been deeply involved in the policy shaping around decarbonisation and climate targets at EU and Member State level. In the past three years, Sara has not been a director of any other listed company. PO VALLEY ENERGY LIMITED DIRECTORS’ REPORT 4 Joseph Constable — Director since 30 November 2021 Non-Executive Director BA(Hons) MPhil, Age 34 Joseph was appointed as a director on 30 November 2021. Joseph has been a long term shareholder of PVE and has a detailed understanding of the company’s assets and brings his significant financial skills to PVE and the Board. Joseph was previously an executive director of Hancock & Gore (ASX: HNG), and portfolio manager at H&G Investment Management Limited and Executive Director at H&G High Conviction Limited (ASX: HCF). Jospeh is a non-executive director of The Hydration Pharmaceuticals Company Limited (ASX:HPC). Other than as listed above, in the past three years, Joseph has not been a director of any other listed company. Katrina O’Leary — Director since 2 May 2022 Non-Executive Director BA LLB, LLM, Age 62 Katrina was appointed as a director on 2 May 2022. Katrina is an Intellectual Property (IP) and Information Technology lawyer with decades of experience in IP management, commercial and litigious matters. Katrina also advises on ESG compliance especially in the area of ethical sourcing. Her practice is international, and she has worked in Italy, the USA and Australia representing government and international organisations and major public companies. Katrina brings to the board her strength in legal compliance, governance, and risk management. In the past three years, Katrina has not been a director of any other listed company. Michael Gentile — Director since 25 November 2024 Non-Executive Director CFA Charter Holder, Age 46 Michael was appointed as director on 25 November 2024. Michael is considered one of the leading strategic investors in the junior resource sector in Canada, owning significant top-five ownership stakes in over 20 small- cap mining companies, and is also a shareholder of PVE. He is currently a director of Group Eleven Resources (TSX-V: ZNG), Northern Superior Resources (TSXV:SUP), OnGold (TSX-V:ONAU) Radisson Mining Resources (TSX-V: RDS), Roscan Gold (TSX-V: ROS) and Solstice Gold (TSX-V: SGC) and a Strategic Advisor to Northisle Copper and Gold (TSX-V: NCX). Michael cofounded Bastion Asset Management in January 2022 a rapidly growing money management firm in Montreal focused on small to mid-cap equities in the USA and Canada. Michael was previously a Vice President and Senior Portfolio Manager with Formula Growth Limited where he worked from 2002 to 2018. In the past three years, Michael has not been a director of any other ASX listed company. 2. Company Secretary Kevin Hart – Company Secretary, B.Comm, FCA – Resigned 26 March 2026 Kevin Hart is a Chartered Accountant and was appointed to the position of Company Secretary on 17 April 2018. He has over 30 years’ experience in accounting , management and administration of public listed entities in the mining, mining services and exploration industry. Kevin is a Principal in the Company Secretarial and CFO divisions of the Automic Group which provides Company Secretarial, CFO support and corporate compliance advice to a number of ASX listed entities. Kevin retired on 26th March 2026. PO VALLEY ENERGY LIMITED DIRECTORS’ REPORT 5 Lucia McLean – Company Secretary, B.Comm, HDipAcc CA –Appointed 26 March 2026 Lucia is a Chartered Accountant with over 30 years’ experience in finance, accounting and company secretarial services in private, public and listed companies in Australia, UK and South Africa. She holds a Bachelor of Commerce and Higher Diploma in Accountancy form Rhodes University, South Africa and is a member of the Chartered Accountants Australia & New Zealand. Lucia is a Senior Manager with Automic Group Professional Services. Lucia has been appointed as Company Secretary following Kevin Hart’s retirement on 26 March 2026. 3. Directors’ Meetings The number of meetings of the Board of Directors held during the financial year and the number of meetings attended by each director are provided below: Director Attended Held Kevin Bailey AM 7 7 Sara Edmonson 7 7 Joseph Constable 7 7 Katrina O’Leary 7 7 Michael Gentile 6 7 Held: represents the number of meetings held during the time director held office. The roles and responsibilities normally undertaken by the Audit and Risk Committee and the Remuneration and Nominations Committee have been dealt with by the full board as part of its duly convened meetings rather than through separate committees. 4. Principal Activities The principal continuing activities of the Group in the course of the year were: • Production of gas at Podere-Maiar 1 in the Selva Malvezzi concession. • The exploration for gas and oil in the Po Valley region in Italy. • Appraisal and development of gas and oil fields. 5. Operating and financial review Overview During the reporting period, Po Valley Energy Limited maintained stable production performance from its Selva Malvezzi gas field while advancing key development initiatives to support future growth. The Company continues to operate as a low-cost, cash-generative onshore gas producer in Italy, with a focus on disciplined capital management and progression of its development pipeline. The Company continued to progress its Selva Malvezzi development strategy, which represents the primary source of near-term growth. Plans include the drilling of additional wells within the Selva Concession , including the Casale Guida 1d, Ronchi 1d , Bagnarola1d and Selva Malvezzi-1d prospects. During the period, a 3D geophysical survey was completed to refine subsurface understanding and optimise future drilling locations. Environmental and regulatory approval processes for the expansion program continued, with engagement ongoing with relevant Italian authorities. PO VALLEY ENERGY LIMITED DIRECTORS’ REPORT 6 In addition to Selva, the Company maintains a portfolio of exploration and development assets, including Teodorico (offshore Adriatic) and other onshore exploration permits such as Cadelbosco di Sopra, Grattasasso and Torre del Moro. These assets provide longer-term optionality for production growth. Financial results for the year During the reporting period, Po Valley Energy Limited maintained stable production performance from its Selva Malvezzi gas field while advancing key development initiatives to support future growth. The Company continues to operate as a low-cost, cash-generative onshore gas producer in Italy, with a focus on disciplined capital management and progression of its development pipeline. Production from the Group’s primary asset, the PM-1 well at Selva Malvezzi, remained consistent throughout the year. Daily production rates averaged approximately 75,000 to 80,000 standard cubic metres per day, resulting in total production for the year was 28,205 Mcm of gas (gross, net to the Group of 63% or 17,769 Mcm) generating revenue of €7 million for the Group. This sustained performance reflects stable reservoir characteristics and effective field operations. The asset continues to provide a reliable base level of production with minimal operational disruption. The Company delivered continued positive operating cash flow across the reporting period supported by steady production and favourable gas pricing conditions during parts of the year. Operating costs remained tightly controlled. This cost discipline underpins the Company’s strong operating leverage and resilience to commodity price movements. The Company maintained a strong financial position, ending the period with cash and financial investments of approximately €8 million and no debt. A portion of surplus liquidity was allocated to low-risk government bond investments, reflecting a conservative treasury management approach. The profit after tax for the year from continuing operations was €2,724,263 (2024: €2,391,151). The Group’s cash reserves as at 31 December 2025 were €2,462,580 (31 December 2024: €4,993,913). A review of the operations and the results of those operations of the Group during the year is as follows: Summary of results table: 2025 2024 Mcm Mcm Production volume (net) 17,769 17,364 €’000 €’000 Gas Sales 7,047 6,524 EBITDA1 4,482 4,004 Depreciation and amortisation – production (547) (532) Depreciation (28) (27) Unwind of discount of restoration provision (41) (39) EBIT1 3,866 3,405 Finance income (costs) other than restoration provision discounting 19 (14) Taxation (1,161) (1,000) Net profit after tax attributable to shareholders 2,724 2,391 1EBITDA (earnings before interest, tax, depreciation and depletion, exploration expensed and impairment losses) and EBIT (earnings before interest and tax) are non-IFRS measures that are presented to provide an understanding of the Group’s operations. The non-IFRS measures are unaudited, however, the numbers have been extracted from the financial statements that have been subject to audit by the Company’s auditor. PO VALLEY ENERGY LIMITED DIRECTORS’ REPORT 7 Share issues There were no new shares issued in the financial year. Earnings per share The basic earnings per share for the Group from continuing operations was 0.24 € cents (2024: 0.21 € cents). Operations Selva Gas Field (63% PVO) - Selva Malvezzi Production Concession The Selva Malvezzi Production Concession is an onshore natural gas asset in the eastern Po Plain, Bologna province, Emilia-Romagna Region. Granted in July 2022, the 80.68 km² concession was carved out of the former Podere Gallina Exploration Permit and includes the producing Podere Maiar gas field alongside nearby gas prospects of Selva Malvezzi 1d, Casale Guida 1d, Ronchi 1d and Bagnarola 1d. Po Valley Operations Pty Limited (‘PVO’), a wholly owned subsidiary of the Company, operates the concession and holds a 63% interest, with the remaining 37% held by the Prospex Group. Podere Maiar-1 (“PM-1”) gas facility and production: Production has been consistent throughout the year averaging ~75,000-80,000 scm per day, with the exception of days during which slick line operations were undertaken and/or brief scheduled production halts for routine plant maintenance. Routine slick line operations in the year confirmed pressure evolution as per expectations and there was no sand or water detected during the slick lines. There also has not been any unexpected readings on surface sand detection equipment during the year. Gas is currently sold under the gas sales agreement (GSA) with Hera Trading S.r.l, a group entity headed by Hera S.p.A with operational headquarters in the Bologna province. This partnership offers the Group an opportunity to collaborate with local business and has strengthened its engagement with local community. The 12-month contract with potential to extend commenced 1 October 2025, replaced the previous GSA with BP Gas marketing. The Group completed 2 ½ successful years with partner BP Gas Marketing from its first gas flow in July 2023 to 30 September 2025 delivering ~58.6 million scm (gross) of gas from PM1-d to BP Gas Marketing. Under the Hera GSA, the Group will deliver an estimated 27,9m scm (gross) in the 12 months with the gas supply price linked to the Italian Gas Index (IG INDEX GME). The table below summarises the production results for the year: Podere Maiar-1 (PM-1) Production Results Mar 2025 Quarter Jun 2025 Quarter Sept 2025 Quarter Dec 2025 Quarter Dec 2025 Year Avg. daily production (scm) [gross] 77,292 79,793 78,795 79,220 78,900 Quarterly production ('000 scm) [net] 4,236 4,574 4,566 4,392 17,769 Weighted average price (per scm) €0.50 €0.39 €0.37 €0.33 €0.39 Revenue ('000) [net] €2,103 €1,805 €1,689 €1,450 €7,047 Field Operating costs ('000)1 €196 €126 €276 €146 €744 Note: All figures in the table above, other than the daily production rate, are quoted on a net-63% share to PVE 1.Cash outflows field operating costs per quarter excludes accrued royalties PO VALLEY ENERGY LIMITED DIRECTORS’ REPORT 8 Cumulative production since initial flow has reached 65.6million scm from the C2 level, equating to approximately 95% of the certified P1 reserves reported in the July 2022 CPR (PVE’s net share is 63%). Selva Malvezzi Prospects: Casale Guida 1d, Ronchi 1d, Bagnarola 1d, Selva Malvezzi 1d wells The key area of focus for the Company with the next stages of development is at Casale Guida 1d (Selva North discovery), Ronchi 1d (South Selva discovery), Selva Malvezzi 1d (East Selva prospect) and Bagnarola 1d (Riccardina prospect) all of which are located within the Selva Malvezzi Production Concession. The EIA covering the drilling, development, construction and production phases of the four wells filed in December 2024 is presently under review in order to incorporate recommendations and amendments received from the Ministry in order to update the project including the full scope of potential works and impacts (treatment facilities, pipelines, Podere Maiar upgrade). The additional specialist studies requested by the EIA commission are in progress and expected to be submitted to the Ministry in Q2 2026. 3D Geophysical survey The Company completed the 3D geophysical data acquisition over the Selva Malvezzi concession area. The program covered approximately 140 km². After laying out 8,380 wireless geophones, the data acquisition commenced on 13 November 2025 using single sweeps from four vibroseis trucks operating simultaneously in separate quadrants. The data acquisition was completed on time and under budget, benefitting from unusually dry weather for November, but its success was driven by extensive planning and outstanding execution by contractors, Geotec for permitting and Geofyzika Torun (GT) for acquisition & data recording, and PVO technical team tight supervision. The data acquired collated and prepared by GT for next data processing and interpretation over the next quarter. This work will deliver a high-resolution three-dimensional subsurface model to support future field development planning and potential resource upgrades at Selva Malvezzi. Schlumberger have been engaged for this portion of work in February 2026. Subsequent interpretation of the data will be done in-house. The Company is targeting communication of these results with the market in Q2/2026. The data acquired will be instrumental in fine tuning the Company's 4 well development program in this license. Teodorico Offshore Gas field development (100% PVO) The Teodorico gas field is located in shallow waters (approximately 30m deep) off the east coast in the northern Adriatic Sea; the primary source of domestic gas production for much of Italy; and in close proximity to existing east coast offshore gas production facilities. Teodorico has the largest gas-in-place of all of Po Valley Energy’s gas fields and is at an advanced stage of assessment, ready for development. The Group holds a preliminary production concession for this area. The Company has progressed the preparation of an updated new EIA addressing the additional requirements, particularly in relation to the two environment protection areas that required further study following the Regional Administrative Court (TAR) ruling in 2024. This new EIA study will incorporate the recommendations of the Directorate of the Ministry of Environment, specifically addressing the protected areas that were not included in the original submission because they were established after that time. PVO has sought further information on technical requirements for Teodorico connection and gas treatment at the Naomi-Pandora facility operated by ENI. The Company has commenced discussion with ENI and will evaluate outcomes and impact on the EIA that is in progress. The Company plans to finalise and submit the updated EIA at the earliest opportunity. PO VALLEY ENERGY LIMITED DIRECTORS’ REPORT 9 Torre del Moro, Cadelbosco di Sopra and Grattasasso exploration licences (100% PVO) The Company is continuing reviewing optimal exploration and development paths for the other onshore exploration assets (Cadelbosco di Sopra, Grattasasso and Torre del Moro), including the possibility of third- party investors / partners interested in participating in their exploration and development. Cadelbosco di Sopra and Grattasasso are shallow gas opportunities which fit neatly within the Company’s proven exploration and development capabilities, whilst Torre del Moro is a large deep gas/condensate prospect. In addition, these areas include oil contingent resources at Cadelbosco and Grattasasso discoveries as well as gas prospective resources at Torre del Moro. Health, safety and environment Paramount to Po Valley’s ability to pursue its strategic priorities is a safe workplace and a culture of safety first. The Group regards environmental awareness and sustainability as key strengths in planning and carrying out business activities. Po Valley’s daily operations are conducted in a way that adheres to these principles and management is committed to their continuous improvement. Whilst growing from exploration roots, the Group has strived to continually improve underlying safety performance. The Group has adopted an HSE Management System which provides for a series of procedures and routine checks (including periodical audits) to ensure compliance with all legal and regulatory requirements and best practices in this area. In 2025, the Group maintained its outstanding occupational health safety and environmental track record with no incidents or near misses to report. Principal risks and uncertainties Oil and gas exploration and appraisal involves significant risk. The future profitability of the Group and the value of the Company’s shares are directly related to the results of exploration and appraisal activities. There are inherent risks in these activities. No assurances can be given that funds spent on exploration and appraisal will result in discoveries that will be commercially viable. Future exploration and appraisal activities, including drilling and seismic acquisition, may result in changes to current perceptions of individual prospects, leads and permits. The Group identifies and assesses the potential consequences of strategic, safety, environmental, operational, legal, reputational and financial risks in accordance with the Group’s risk management policy. Po Valley management continually monitors the effectiveness of the Group’s risk management, internal compliance and control systems which includes insurance coverage over major operational activities, and reports to the Board on areas where there is scope for improvement. The Board as a whole is responsible for oversight of the Group’s risk management and control system. The principal risks and uncertainties that could materially affect PVE’s future performance are described below. External risks Exposure to gas pricing Volatile gas prices make it difficult to predict future price movements with any certainty. Decline in gas prices could have an adverse effect on PVE. The Group does not currently hedge its exposures to gas price movements long term. The profitability of the Group’s prospective gas assets will be determined by the future market for domestic gas. Gas prices can vary significantly depending on other European gas markets, worldwide supply and the terms under which long term take or pay arrangements are agreed. PO VALLEY ENERGY LIMITED DIRECTORS’ REPORT 10 Changes to law, regulations or Government policy Changes in laws and regulations or government policy may adversely affect PVE’s business. Examples include changes to land access or the introduction of legislation that restricts or inhibits exploration and production. Similarly changes to direct or indirect tax legislation may have an adverse impact on the Group’s profitability, net assets and cash flow. Uncertainty of timing of regulatory approvals Delays in the regulatory process could hinder the Group’s ability to pursue operational activities in a timely manner including drilling exploration and development wells, installing infrastructure, and to producing gas. In particular, oil and gas operations in Italy are subject to both Regional and Federal approvals. Operating risks Exploration, development and production The future value of PVE will depend on its ability to find, develop, and produce gas that is economically recoverable. The ultimate success or otherwise of such ventures requires successful exploration, establishment of commercial reserves, establishment of and successful effective production from processing facilities, and transport and marketing of the end product. Through this process, the business is exposed to a wide variety of risks, including failure to locate hydrocarbons, changes to reserve estimates or production volumes, variable quality of hydrocarbons, weather impacts, facility malfunctions, lack of access to appropriate skills or equipment and cost overruns. Estimation of reserves The estimation of oil and natural gas reserves involves subjective judgments and determinations based on geological, technical, contractual and economic information. It is not an exact calculation. The estimate may change because of new information from production or drilling activities. Tenure security Exploration licences held by PVE are subject to the granting and approval by relevant government bodies. Government regulatory authorities generally require the holder of the licences to undertake certain proposed exploration commitments and failure to meet these obligations could result in forfeiture. Exploration licences are also subject to partial or full relinquishments after the stipulated period of tenure if