The notes on pages 4 to 13 form part of these financial statements.

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 4 to 13 form part of these financial statements.

Argo Natural Resources Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lynton House, 7-12 Tavistock Square, London, WC1H 9BQ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

Going concerntrue

The financial statements are prepared on a going concern basis of accounting.

The company's primary activity is the development of a novel process to recycle metals from electronic waste and other end of life products using a patented chemical process. The company's product is still in the developmental stage, and as such the business is pre-revenue and is cash consumptive with significant operating and capital cash outflows which are funded by equity funding rounds and grants received. The developed product is a number of years away from being market ready.

The company is reliant on equity funding to progress the commercialisation of its technology and has been successful in raising considerable funds to date. These funds are being used to maintain the development of its technology as it transitions from lab-based work to large scale engineering. The company is currently constructing a large-scale pilot plant as part of the next phase of its development. The pilot plant will be used to demonstrate the company's technology on a larger scale. At the time of approval of these financial statements, the construction of the pilot plant is nearing completion, with commissioning anticipated to commence in July 2026.

At the year end the company has net current assets of £3.8m and total shareholders' equity of £8.5m, including cash at bank of £6.0m. The company has the support of its investors, it has raised equity funds of £16.5m in total to date. Post year end, a further £453k has been raised (note 15) with an additional £1.6m received by the company for shares still to be issued. Should it be necessary the directors are confident, based upon the demonstrable history of raising equity, and enthusiasm for the product, that further equity funding could be obtained.

Budgets and cashflow forecasts for continuing to develop the product have been prepared, these include the cost of completing construction of the company's pilot plant. The cashflow forecast prepared through to December 2028 shows that the company will have sufficient resources for the foreseeable future. The forecasts indicate that no additional funding will be required during the forecast period, other than that already received. However, further funding is anticipated to be required prior to the product generating sufficient incoming cashflows to cover outgoings. The directors anticipate that further equity funding will be forthcoming when required.

Whilst the directors are confident in the company's concept and that the eventual product will be a success, the product is yet to be developed ready for market. The future outcome of the product development and commercialisation of the company's technology, and the ability to put the product to market is uncertain. Future demand for the product and future revenue generation is uncertain. Furthermore, whilst the directors expect that further equity funds can be raised when required, the ability of the company to raise further equity funds is inherently uncertain. The past successes in raising capital are not necessarily indicative of the future, and although the directors have no current concerns, the appetite of investors may change.

The directors continuously monitor costs and cashflows, and re-forecast through to December 2028 every two months. This approach allows the directors to anticipate future cashflows over an extended period, allowing them to plan future funding rounds well in advance. Should it be required, the directors can also take action to reduce outgoings.

Based on the above, the directors have concluded that the company has control of more than adequate resources to continue to meet its liabilities as they fall due for a period of at least 12 months from the signing of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Consultancy

Revenue from contracts for the provision of consultancy services is recognised based on the percentage completeness of the service being provided.

Revenue from contracts for the provision of continuous consultancy services provided over a period of time is recognised straight line over the period that the services are provided.

Research and development expenditure is written off against profits in the year in which it is incurred.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Assets in the course of construction are not depreciated.

Interests in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using entity specific observable market data. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

Fair value is determined using an appropriate pricing model. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. If all or part of a grant related costs to be incurred in future periods, the grant is deferred and recognised as deferred.

Government grants relating to assets are recognised as income systematically over the assets' expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the assets' carrying amount.

Government grant income is recognised in the Income Statement as other operating income.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The directors judge that the company is a going concern. The basis of this judgement is set out in the accounting policy above.

Research and development credits are provided for based upon the applicable surrender rate applied to the expected amount, and tax credits are recognised once the claim has been prepared and submitted to the relevant tax authorities. This judgement is made on the basis that until the claim has been prepared, it is not possible to reliably estimate the benefit to the company.

The directors judge that valuing granted share options based on a recent share issuance is representative of their fair value at the grant date.

The directors have made judgements in their assessment of which pre-construction costs are directly attributable to the company's pilot plant and therefore form part of the cost of the asset.

There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

The average monthly number of persons (including directors) employed by the company during the year was:

Plant and equipment relates to the pilot plant which was under construction at the end of the reporting date, and includes related equipment. No depreciation has been charged on the pilot plant as it is under construction.

At the reporting date, the estimated unprovided contracted amount is approximately £2.2m (2024: £nil). No asset or liability has been recognised in respect of this additional commitment.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Contributions totalling £9,429 (2024: £9,122) were payable to the fund at the reporting date and are included in other creditors.

The company operates a share option scheme. During the year to 31 December 2025, 165,000 (2024: 3,300,000) share options were granted to advisors. There are no performance obligations attached to any of the share options granted up to the reporting date other than continuing employment of the employee receiving the option up to the exercise date. The share options were valued based on a recent share issue.

The share options are recognised over the vesting period, as an expense and an increase in equity. At 31 December 2025 a share based payment reserve of £1,301,340 (2024: £919,080) is recognised within equity.

None of the granted options have been exercised at the year end. At 31 December 2025 3,465,000 (2024: 3,300,000) options are outstanding.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The company has entered into an agreement with minimum royalty payments for 10 years. At the reporting date, the minimum royalties payable are as follows:

• Within one year £24,375 (2024: £19,583)

• Between two to five years £111,875 (2024: £114,167)

• Greater than five years £11,250 (2024: £32,500)

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

On the 2nd April 2026 the company issued 1,028,334 A Ordinary shares for a total consideration of £473,034. An additional £1.6m has been received by the company post period end for shares still to be issued.

Subsequent to the reporting date, an operating lease agreement was signed for a suitable premises, and subsequently installation and construction of the pilot plant commenced. At the date of signing the audit report, the pilot plant was not fully constructed. The minimum non-cancellable commitment in respect of the operating lease was £903,428, and the minimum lease term was 5 years.

The company has taken advantage of the exemption available under FRS 102 from disclosing transactions entered into between wholly owned group members.