Announcement PDF Sea Forest Limited and its Controlled Entities ABN 46 631 662 283 Annual Report - 30 June 2025 Sea Forest Limited and its Controlled Entities Directors' report 30 June 2025 1 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Sea Forest Limited and its Controlled Entities (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled (referred to hereafter as the "Group") at the end of, or during, the year ended 30 June 2025. Directors The following persons were directors of Sea Forest Limited and its Controlled Entities during the whole of the financial year and up to the date of this report, unless otherwise stated: John McKillop* - (Chairman) - appointed 1 March 2025 Sam Elsom (Chief Executive Officer) Stephen Turner (Managing Director) - Stepped down as Chairman on 1 March 2025 Dion Cohen (Chief Financial Officer) – resigned as Director on 5 July 2024 & Company Secretary on 21 August 2025 Alex Berger* Roger Millichamp* Brent Wallace* - appointed 29 April 2025 Patricia Akopiantz* – resigned as Director on 19 December 2024 Mark Kirkby* – resigned as Director on 19 December 2024 Jeremy Atkin* – resigned as Director on 5 August 2024 * non-executive director Principal activities During the financial year the principal continuing activities of the company consisted of the production of its SeaFeed™ Amplify product, a manufactured product, which uses both active components derived from Asparagopsis seaweed and man- made bioactives. As at the date of this report, Sea Forest is transitioning to the manufacture of nature-identical bioactives through a synthetic process. This approach provides a lower-cost, more uniform solution at commercial scale, yielding higher concentrations of the required bioactive compounds than both marine and land-based cultivation. The enhanced SeaFeed™ product - developed using man-made manufactured bioactives, will enable scalable production with consistent quality. Final confirmatory studies on the man-made manufactured bioactives are being completed, after which production will fully transition from seaweed-derived to nature-identical bioactives. Importantly, the chemical composition of the bioactives remains identical to that derived from seaweed. Review of operations The loss for the consolidated entity after providing for income tax amounted to $9,090,241 (30 June 2024: $6,883,479). Operational changes implemented during the year aimed at: · Reducing its production and operational costs, enabling the company to manufacture and market its new SeaFeed™ product (refer above) at commercial scale. The decision to transition to a man-made manufactured bioactive product resulted in a write down of inventory & fixed assets totalling $5.4 million. · Launching and refining new delivery mechanisms for grazing livestock, including lick blocks, granulated based feed additives and water-soluble solutions. · Supporting a renewed focus on research and development, including the reconfiguration of Marine operations at Triabunna and land-based operations at Swansea to serve exclusively as R&D functions. · Focussing R&D activities towards exploring new commercial applications for land-based seaweed operations, including potential uses in fish feed, cosmetics, and nutraceuticals. Significant changes in the state of affairs There were no significant changes in the state of affairs of the consolidated entity during the financial year. Sea Forest Limited and its Controlled Entities Directors' report 30 June 2025 2 Matters subsequent to the end of the financial year IPO-Capital Raising The Company is actively pursuing an initial public offering (IPO) to raise equity capital and a listing on the Australian Securities Exchange (ASX) within the current financial year. Sea Forest has received in-principle confirmation from the ASX that it is suitable for admission to the official list, which is an important milestone in the listing process. In addition, preliminary indications of support have been received for the subscription of new equity to be offered under the proposed IPO. Sale of Assets In line with its strategic objectives, on 1 August 2025 the company sold the assets of its oyster business for $223,500 and entered into a management agreement with Southern Cross Marine Culture Pty Ltd (“Marine Culture”) for the operation of the oyster hatchery through to 30 June 2030. Under this agreement, Marine Culture will assume responsibility for expenses and outgoings and make an annual payment of $75,000 to the company as compensation for operational costs during the agency period. Research Agreement Additionally, on 22 July 2025, the company entered into a research agreement with the Foundation for Food and Agriculture Research to support a project aimed at evaluating the effectiveness of its products in reducing methane emissions and enhancing productivity in ruminant livestock, with a particular focus on dairy systems. The project will run from 1 July 2025 to 30 June 2028 and includes a cash-matched contribution of US$70,305, alongside in-kind contributions totalling US$200,000 over the duration of the project. Commercialisation of Customer Agreements After year end, the Group has made substantial progress towards commercialisation through the signing of customer agreements with two significant feedlot operators in Australia, as well as the extension of its wool trial with a large global fashion retailer. Customer ‘scale-up' activities are expected to extend across most of the 2026 financial year and the Group anticipates that revenue contributions will continue to build into the following financial year. No other matter or circumstance has arisen since 30 June 2025 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. Likely developments and expected results of operations Information on likely developments in the operations of the consolidated entity and the expected results of operations have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the consolidated entity. Environmental regulation Sea Forest’s current seaweed cultivation in Tasmania is governed by the provisions of the Marine Farming Planning Act 1995 and the Living Marine Resources Management Act 1995. Sea Forest either holds or is authorised to use the relevant licenses and permits for its activities under these Acts. Sea Forest Limited and its Controlled Entities Directors' report 30 June 2025 3 Information on Executive directors Name: Sam Elsom Title: Chief Executive Officer Experience and expertise: Sam is the 2025 Tasmanian Australian of the Year and a dedicated eco-entrepreneur with over 20 years’ experience in sustainability. He founded one of Australia’s first sustainable apparel businesses and has led initiatives to measure social and environmental impact across supply chains. Sam also established a satellite factory in India, supporting disadvantaged communities with income, training, clean water, and education. He is passionate about methane mitigation as a critical near-term strategy to address global warming and enhance economic outcomes. Name: Stephen Turner (Stepped down as Chairman on 1 March 2025) Title: Managing Director Experience and expertise: Stephen is an accomplished executive with a proven track record in delivering large- scale greenfield projects in the mining sector. He co-founded International Ferro Metals, a mining and smelting company responsible for 4% of global ferrochrome supply and listed on the London Stock Exchange, where he served as CEO for seven years. Stephen was also a founding director and CEO of South American Ferro Metals, a Brazilian iron ore producer listed on the ASX. He previously served as a non-executive director of Iluka Resources, the world’s largest zircon producer. Name: Dion Cohen (resigned as Director on 4 July 2024, and Company Secretary on 21 August 2025) Title: Chief Financial Officer and Company Secretary Experience and expertise: Dion is a Chartered Accountant with extensive experience in the resources and investment banking sectors. Over the past 15 years, he has played a pivotal role in several greenfield operations that have successfully transitioned to primary stock exchange listings. He has served as CFO for multiple companies listed on both the ASX and LSE. Dion resigned as CFO on 17 June 2025 and continues to act in a role of Business Development Manager. Information on Non-Executive directors Name: John McKillop (appointed on 1 March 2025) Title: Non-executive chairman Experience and expertise: John is a highly respected leader in Australia’s agricultural sector, with significant board and executive experience across the industry. He has held board positions with Dairy Australia, Meat & Livestock Australia, Dairy Farmers Milk Cooperative, and Compass Agribusiness. John’s management career includes leading some of the nation’s largest cattle operations, notably in senior roles at Stanbroke Pastoral Company and as CEO of both Hancock Agriculture and S. Kidman & Co. He currently serves as Chair of the Red Meat Advisory Council, Regional Livestock Exchange, Manor Estates Holding, MaxSil Fertilizer, and agri-tech innovator Black Box Co. Name: Alex Berger Title: Non-executive director Experience and expertise: Alex brings advanced investment banking expertise and a strong background in sustainable development to Sea Forest. Sea Forest Limited and its Controlled Entities Directors' report 30 June 2025 4 With experience at leading global financial institutions, Alex has led private asset development initiatives across Africa and the Asia Pacific, focusing on carbon abatement and climate change. His leadership has enabled the origination, capitalisation, and delivery of major projects, providing Sea Forest with access to sustainable development capital and global carbon asset markets. Name: Roger Millichamp Title: Non-executive director Experience and expertise: Roger brings high level pharmaceutical product and market development to Sea Forest. He led Pharmaceutical company Apotex as Managing Director for 12 years, holds a Master’s degree in Natural Sciences from Oxford University, an MBA, and a Diploma in Marketing. With over 25 years of international general management experience, Roger has worked across Australia, China, the UK, Latin America, Africa, the Middle East, Eastern Europe, and Southeast Asia. Roger, transformed it into a market leader and established strong strategic partnerships within the global pharmaceutical industry. Name: Brent Wallace (appointed on 29 April 2025) Title: Non-executive director Experience and expertise: Brent has over 20 years of Board-level experience across environmental, FMCG, finance and technology companies. He has experience in growth strategy, brand development and consumer research. Brent was formerly Non-Executive Director and Chairman at Blackmores (ASX:BLK) and has held directorships at environmental organisations including Chair and Non- Executive Director at the Environmental Defender’s Office and Governor of the WWF. Name: Patricia Akopiantz (resigned as Director on 19 December 2024) Title: Non-executive director Experience and expertise: Patricia has deep expertise across the consumer-facing landscape having spent over 35 years as an ASX Board Director and Senior Manager in companies including Coles Myer, Energy Australia, Ramsay Healthcare, AMP, McKinsey, and David Jones. She is a Co-Founder of Assembly Climate Capital which invests in companies that can significantly impact climate change. She is a Member of the Climate Change Authority, an independent statutory body established to provide expert advice to the Australian Government. As Chair of Environmental Leadership Australia, she works to build bi- partisan support for climate action. Patty is also a Non-Executive Director of KPMG Australia and The Hunger Project. Name: Mark Kirkby (resigned as Director on 19 December 2024) Title: Non-executive director Experience and expertise: Mark Kirkby is a Chartered Accountant and works for the PGA Group as its Commercial Director. Mark is a member of PGA’s Advisory and Investment Committees and provides support as a non-executive director to the group’s various operating businesses. Mark has experience in chairing Finance, Audit and Risk Committees. Prior to joining PGA, Mark held various senior financial executive roles in diverse industry sectors for both listed and unlisted companies. Name: Jeremy Atkin (resigned on 5 August 2024) Title: Non-executive director Experience and expertise: Jeremy is an experienced consultant with an extensive track-record of driving innovation within companies ranging from start-ups through to large enterprises within the technology, media and retail sectors. Jeremy is an active investor in early-stage start- ups with a focus on sustainability and brings a broad network of connections within the Australian venture capital community and the broader agriculture sector. Mr Atkin Sea Forest Limited and its Controlled Entities Directors' report 30 June 2025 5 commenced an executive engagement with Sea Forest Limited on 5 August 2024 which terminated on 5 January 2025. Company secretary Ms Teresa Garces was appointed as Company Secretary on 21 August 2025, succeeding Mr Cohen, who resigned from the role on the same day. Mr Cohen had served as Company Secretary since his appointment on 22 October 2019. Meetings of directors The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2025, and the number of meetings attended by each director were: Nomination and Nomination and Audit and Audit and Full Board Full Board Remuneration Committee Remuneration Committee Risk Committee Risk Committee Attended Held Attended Held Attended Held Sam Elsom 9 9 - - - - Stephen Turner 9 9 - - - - Dion Cohen 1 1 - - 4 4 Alexander Berger 9 9 4 4 4 4 Jeremy Atkin 2 2 2 4 - - Mark Kirkby 5 5 - - 2 4 Patricia Akopiantz 5 5 - - 2 4 Roger Millichamp 9 9 4 4 - - Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee. There were 9 meetings of directors held during the year ended 30 June 2025. Shareholder options There were no outstanding shareholder options at 30 June 2025. A total number of 3,225,000 employee options have been issued under the Sea Forest Share Option Plan (refer note 35). Going Concern During the year the Group incurred a loss after tax of $9,090,241 (30 June 2024: $6,883,479), net operating cash outflows of $5,938,904 (30 June 2024: $1,514,671), net investing cash inflows of $6,072,777 (30 June 2024: cash outflows of $204,612), and net financing cash outflows of $476,940 (30 June 2024: inflow of $468,168). As at 30 June 2025 the Group has cash and cash equivalents, of $12,615,332 (30 June 2024: $12,958,399) and term deposits of $260,566 (30 June 2024: $7,329,901). The Group has made substantial progress towards commercialisation through the signing of customer agreements with two significant feedlot operators in Australia, as well as the extension of its wool trial with a large global fashion retailer Customer ‘scale-up activities are expected to extend across most of the 2026 financial year and, the Group anticipates that revenue contributions will continue to build into the following financial year. The Group has significantly reduced its workforce and operating costs at Triabunna, with the marine farm and land based production now repositioned to focus solely on research activities. While the Board and management are confident that the Group has sufficient cash to remain operational through 2026 financial year, its ongoing ability to continue as a going concern, recover the carrying value of its assets and meet its commitments as and when they fall due is dependent upon securing additional funding. At this time, the Board and management believe that the Group’s assets are realisable for an amount not less than their recorded value as at 30 June 2025. Accordingly, no adjustments, other than those recorded within the financial statements, have been made relating to the recoverability and classification of the asset carrying amounts or the amounts and classification of liabilities. The Board and management are actively exploring funding options and accordingly, have prepared the 30 June 2025 financial statements on a going concern basis. Sea Forest Limited and its Controlled Entities Directors' report 30 June 2025 6 Indemnity and insurance of officers The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. Proceedings on behalf of the company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ ___________________________ Stephen Turner Sam Elsom Director Director 12 September 2025 12 September 2025 SEA FOREST LIMITED ABN: 46 631 662 283 AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF SEA FOREST LIMITED I declare that, to the best of my knowledge and belief, during the year ended 30 June 2025 there have been no contraventions of: (i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Name of Firm Logicca Assurance Pty Limited Name of Partner Peter Hersh OAM Date 12 September 2025 Address Level 9, 151 Macquarie Street, Sydney NSW 2000 Sea Forest Limited and its Controlled Entities Contents 30 June 2025 8 Statement of profit or loss and other comprehensive income 9 Statement of financial position 10 Statement of changes in equity 11 Statement of cash flows 12 Notes to the financial statements 13 Consolidated entity disclosure statement 41 Directors' declaration 42 Independent auditor's report to the members of Sea Forest Limited and its Controlled Entities 43 General information The financial statements cover Sea Forest Limited and its Controlled Entities as a consolidated entity consisting of Sea Forest Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars (AUD), which is the functional and presentation currency of Sea Forest Limited. The functional currency of each controlled entity within the group is the currency of the country in which it operates. Sea Forest Limited and its Controlled Entities is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: 488 Freestone Point Road, Triabunna, TAS 7190 A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on September 2025. The directors have the power to amend and reissue the financial statements. Sea Forest Limited and its Controlled Entities Statement of profit or loss and other comprehensive income For the year ended 30 June 2025 Consolidated Note 2025 2024 $ $ The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 9 Total revenue 3 6,606,009 5,532,128 Expenses Consulting expense (137,675) (327,350) Depreciation and amortisation expense (1,606,050) (1,696,137) Employee benefits expense (6,037,478) (6,611,938) Finance costs 4 (165,125) (446,278) Impairment of assets 9,12 (5,440,852) (444,704) Loss on disposal of assets (87,179) (221,405) Operating expenses (2,221,891) (2,667,795) Total expenses (15,696,250) (12,415,607) Loss before income tax expense (9,090,241) (6,883,479) Income tax expense 5 - - Loss after income tax expense for the year attributable to the owners of Sea Forest Limited and its Controlled Entities 23 (9,090,241) (6,883,479) Other comprehensive loss for the year, net of tax - - Total comprehensive loss for the year attributable to the owners of Sea Forest Limited and its Controlled Entities (9,090,241) (6,883,479) Cents Cents Basic earnings per share 34 (19.84) (15.03) Diluted earnings per share 34 (19.84) (15.03) Sea Forest Limited and its Controlled Entities Statement of financial position As at 30 June 2025 Consolidated Note 2025 2024 $ $ The above statement of financial position should be read in conjunction with the accompanying notes 10 Assets Current assets Cash and cash equivalents 6 12,615,332 12,958,399 Trade and other receivables 7 2,225,248 2,688,598 Prepayments 8 1,011,762 979,306 Inventories 9 770,367 3,321,773 Cash on deposits 10 - 7,329,901 Restricted cash 11 260,566 - Total current assets 16,883,275 27,277,977 Non-current assets Property, plant and equipment 12 14,712,814 16,614,977 Right-of-use assets 13 1,274,722 5,601,642 Total non-current assets 15,987,536 22,216,619 Total assets 32,870,811 49,494,596 Liabilities Current liabilities Trade and other payables 14 824,456 1,268,224 Lease liabilities 15 342,947 89,137 Employee benefits 16 632,123 602,909 Other 17 825,606 3,216,172 Total current liabilities 2,625,132 5,176,442 Non-current liabilities Lease liabilities 18 1,712,925 6,352,166 Employee benefits 19 139,559 105,598 Deferred Income 20 2,948,449 4,123,398 Total non-current liabilities 4,800,933 10,581,162 Total liabilities 7,426,065 15,757,604 Net assets 25,444,746 33,736,992 Equity Issued capital 21 55,853,528 55,853,528 Reserves 22 2,071,191 1,273,196 Accumulated losses 23 (32,479,973) (23,389,732) Total equity 25,444,746 33,736,992 Sea Forest Limited and its Controlled Entities Statement of changes in equity For the year ended 30 June 2025 The above statement of changes in equity should be read in conjunction with the accompanying notes 11 Issued Accumulated capital Reserves losses Total equity Consolidated $ $ $ $ Balance at 1 July 2023 55,853,528 699,099 (16,506,253) 40,046,374 Loss after income tax expense for the year - - (6,883,479) (6,883,479) Other comprehensive loss for the year, net of tax - - - - Total comprehensive loss for the year - - (6,883,479) (6,883,479) Transactions with owners in their capacity as owners: Share-based payments (note 35) - 574,097 - 574,097 Balance at 30 June 2024 55,853,528 1,273,196 (23,389,732) 33,736,992 Issued Accumulated capital Reserves losses Total equity Consolidated $ $ $ $ Balance at 1 July 2024 55,853,528 1,273,196 (23,389,732) 33,736,992 Loss after income tax expense for the year - - (9,090,241) (9,090,241) Other comprehensive loss for the year, net of tax - - - - Total comprehensive loss for the year - - (9,090,241) (9,090,241) Transactions with owners in their capacity as owners: Share-based payments (note 35) - 797,995 - 797,995 Balance at 30 June 2025 55,853,528 2,071,191 (32,479,973) 25,444,746 Sea Forest Limited and its Controlled Entities Statement of cash flows For the year ended 30 June 2025 Consolidated Note 2025 2024 $ $ The above statement of cash flows should be read in conjunction with the accompanying notes 12 Cash flows from operating activities Receipts from customers and others (inclusive of GST) 1,081,875 1,501,072 Payments to suppliers (inclusive of GST) (10,092,846) (10,828,372) Government grants and subsidies 322,211 2,223,911 Research and development rebate 1,976,696 4,702,949 (6,712,064) (2,400,440) Interest received 773,160 885,769 Net cash used in operating activities 33 (5,938,904) (1,514,671) Cash flows from investing activities Proceeds / (payments) for term deposits 7,069,335 (329,901) Payments for property, plant and equipment 12 (1,887,649) (744,623) Proceeds from other related parties 62,857 - Proceeds from disposal of property, plant and equipment 828,234 869,912 Net cash from/(used in) investing activities 6,072,777 (204,612) Cash flows from financing activities Repayment of lease liabilities (476,940) (468,168) Net cash used in financing activities (476,940) (468,168) Net decrease in cash and cash equivalents (343,067) (2,187,451) Cash and cash equivalents at the beginning of the financial year 12,958,399 15,145,850 Cash and cash equivalents at the end of the financial year 6 12,615,332 12,958,399 Sea Forest Limited and its Controlled Entities Notes to the financial statements 30 June 2025 13 Note 1. Material accounting policy information The accounting policies that are material to the consolidated entity are set out below. The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Going concern During the year the Group incurred a loss after tax of $9,090,241 (30 June 2024: $6,883,479), net operating cash outflows of $5,938,904 (30 June 2024: $1,514,671), net investing cash inflows of $6,072,777 (30 June 2024: cash outflows of $204,612), and net financing cash outflows of $476,940 (30 June 2024: inflow of $468,168). As at 30 June 2025 the Group has cash and cash equivalents, of $12,615,332 (30 June 2024: $12,958,399) and term deposits of $260,566 (30 June 2024: $7,329,901). The Group has made substantial progress towards commercialisation through the signing of customer agreements with two significant feedlot operators in Australia, as well as the extension of its wool trial with a large global fashion retailer Customer ‘scale-up activities are expected to extend across most of the 2026 financial year and, the Group anticipates that revenue contributions will continue to build into the following financial year. The Group has significantly reduced its workforce and operating costs at Triabunna, with the marine farm and land based production now repositioned to focus solely on research activities. While the Board and management are confident that the Group has sufficient cash to remain operational through 2026 financial year, its ongoing ability to continue as a going concern, recover the carrying value of its assets and meet its commitments as and when they fall due is dependent upon securing additional funding. At this time, the Board and management believe that the Group’s assets are realisable for an amount not less than their recorded value as at 30 June 2025. Accordingly, no adjustments, other than those recorded within the financial statements, have been made relating to the recoverability and classification of the asset carrying amounts or the amounts and classification of liabilities. The Board and management are actively exploring funding options and accordingly, have prepared the 30 June 2025 financial statements on a going concern basis. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 30. Sea Forest Limited and its Controlled Entities Notes to the financial statements 30 June 2025 Note 1. Material accounting policy information (conti