b'Centaurus Metals Limited and its controlled entitiesCentaurus Metals Limited and its controlled entities CENTAURUS METALS ANNUAL REPORT 2024Financial Report 31 December 2024Financial Report 31 December 2024Recycling Program Mineral Resources and Ore Reserves RiskDuring the reporting period, in partnership with local governments, Centaurus prepared a study of the average compositionMineral Resources and Ore Reserves are estimates, based on interpretations of geological data obtained from drill holes and volume of waste generated in the three municipalities around the Jaguar Project and implemented an educationaland other sampling techniques. Actual mineralisation or geological conditions may be different from those predicted. campaign to reduce, re-use and segregate domestic waste; and a domestic waste recycle program.Market price fluctuations of nickel and iron ore as well as increased costs may render Ore Reserves unprofitable to develop During 2024, the Company set up a total of 15 recyclable waste bins in the towns of So Flix do Xingu (including Minerasulat a particular site or sites for periods of time or may render Ore Reserves containing relatively lower grade mineralisation and Ladeira Vermelha villages), Tucum and Ourilndia do Norte. This initiative reduced the amount of waste taken to theuneconomic. Any of these factors may require the Company to reduce its Mineral Resources and Ore Reserves, which could regional waste dumps, as well as created revenue streams for local waste recycling businesses. At the end of the period,have a negative impact on the Companys performance. 11.5 tonnes had been removed and on completion of the program, the recyclable waste bins were donated to theDevelopment Riskmunicipalities so they could continue the recycling program. Environmental Education The future development of the Jaguar project is dependent on the outcome of feasibility studies and will require the ongoing undertakingofEnvironmental,Resource,Mining,Geotechnical,Metallurgical,PlantandNon-PlantInfrastructure, During 2024, a number of educational lectures were offered to over 800 students attending across 5 schools, in LadeiraOperational and Capital cost studies (Studies). There is a risk, where the studies are not as expected or are unfavourable, Vermelha & Minerasul villages, So Flix do Xingu and Ourilndia do Norte, issues covered included, waste segregation andthat the Company will not proceed with the development of the Jaguar project or that the estimated capital expenditure, recycling, permanent preservation areas and forest fire prevention, prevention of domestic accidents and the future ofoperating costs or proposed timing of the project are less favourable than anticipated or otherwise determined in the women workers in mining.Studies. Road Upgrade & Maintenance Dependence on Key PersonnelCentaurus also continued to fund road maintenance and dust suppression work through the donation of fuel to the localA number of key personnel are important to attaining the business goals of the Company. One or more of these key municipalities. employees could leave their employment, and this may adversely affect the ability of the Company to conduct its business Plant Nurseryand, accordingly, affect the financial performance of the Company and its Share price. Difficulties attracting and retaining such personnel may adversely affect the ability of the Company to conduct its business. The Company mitigates this risk by The Company continued to plant tree seedlings native to the Amazon Rainforest, with 7.64Ha planted during the reportingimplementing market-based remuneration arrangements which include long and short term incentives. period to revegetate previously cleared farmland, provided maintenance of already planted seedlings and collected newGeopolitical Uncertainty seeds for the seedling nursery.Since the start of the revegetation program in January 2022, more than 32ha has been revegetated and about 13k nativeAn increasing level of geopolitical risks such as political instability, regulatory change, trade restrictions and diplomatic seedlings have been planted. The Company has now revegetated 9ha more than the forested areas that were cleared attensions could disrupt supply chains and market access and create an environment in which investor confidence is negatively Jaguar since 2022. The planned revegetation will allow new forest corridors to be established around the site to assist withimpacted. This risk potentially impacts on the Companys ability to raise funding when required, both for working capital the movement, protection and biodiversity of flora and fauna.purposes and for the development of its projects. The effect of changing trade policy settings by countries that are both major producers and market destinations for critical minerals is likely to have an impact on commodity prices but as well as 4.8Factors and Business Risks Affecting Future Business Performancepresenting risks, may deliver opportunity. The current and future activities of the Company are influenced by numerous factors, many of which are impacted by events4.9Market Announcements external to the control of the Company. The following factors and business risks could have a material impact on theThis report contains information extracted from a number of cross referenced ASX market announcements made by the Companys success in delivering its strategy:Company. Access to FundingThe Company confirms that it is not aware of any new information or data that materially affects the information included The Companys ability to further develop the Jaguar Nickel Sulphide Project and successfully develop future projects isin the original market announcements and, in the case of estimates of Mineral Resources and Ore Reserves, that all material contingent on the ability to fund those projects from operating cash flows or through affordable debt and equity raisings.assumptions and technical parameters underpinning the estimates in the original market announcements continue to apply Ongoing exploration and future development of the Companys projects is contingent on accessing appropriate fundingand have not materially changed. The Company confirms that the form and context in which the competent persons findings solutions.were presented have not been materially modified from the original announcements. Commodity Prices5Significant Changes in the State of Affairs Commodity prices including nickel, iron ore and copper fluctuate according to changes in demand and supply.The CompanyIn the opinion of directors, other than as outlined in this report, there were no significant changes in the state of affairs of is exposed to changes in the price of a number these commodities, which could affect the future profitability of thethe Group that occurred during the financial year under review. Companys projects.Significant adverse movements in commodity prices could also affect the ability to raise debt and equity to fund future exploration and development of projects.6Principal Activities Exchange RatesDuring the period the principal activities of the Group consisted of exploration and evaluation activities related to mineral The Company is exposed to changes in the US Dollar and the Brazilian Real. Sales of most commodities are denominated inresources in Brazil.There were no significant changes in the nature of the activities of the Group during the year. US Dollars. The Companys capital and operating costs will be primarily denominated in Brazilian Real. Weakening of the7Events Subsequent to Reporting Date Australian dollar may impact the feasibility of an exploration or development project being pursued by the Company and may reduce the Companys ability to continue to undertake exploration and development activities in accordance with itsOn 3 March 2025 the Company advised that it had been issued the Installation License (LI) for the Jaguar Nickel Sulphide business plans.project by the Par State Environmental Agency SEMAS. The LI is the key environmental license for the project. Refer to Note 22 for details regarding liabilities which were contingent on this approval.Page 11 of 60Page 12 of 6036 ANNUAL REPORT CENTAURUS METALS LIMITED'