Unaudited Interim Results

16 September 2025

KAVANGO RESOURCES PLC("Kavango" or the "Company")

Unaudited Interim Results

Kavango Resources plc (LSE: KAV, VFEX: KAV.VX), the Southern Africa focused metals exploration company is pleased to announce its unaudited financial results for the six months ended 30 June 2025 ("H1").

SUMMARY

Projects

Hillside Gold Project, Zimbabwe

· Three phases of surface exploration and resource drilling completed, including:

o  1,504.53 metres ("m") of diamond core resource drilling at Nightshift

o  1,296.82m of diamond core resource drilling at Bill's Luck

o  2,358m of reverse circulation (RC) resource drilling at Bill's Luck

o  910.40m of underground diamond core resource drilling at Bill's Luck

o  3,231.89m of diamond core exploration drilling at Steenbok

· Construction commenced of a 50 tonne per day ("tpd") Carbon in Pulp ("CIP") gold processing plant at the Bill's Luck Gold Mine.

· Post H1

o  Start of resource drilling campaign, consisting of 4,000m of diamond drilling and 4,500m of RC drilling, at the Bill's Luck Gold Mine.

Nara Gold Project, Zimbabwe

· Second phase drilling completed at Nara to confirm potential for large-scale gold mineralised system.

· Notice of Exercise served, to acquire 45 claims for US$4 million, completion on or before 9 December 2025.

Karakubis Copper Project, Botswana

· Collaboration completed with First Quantum Minerals ("First Quantum"), in which Kavango ran geophysical surveys over First Quantum's deep drill hole to test the technologies' accuracy for modelling the D'Kar/Ngwako Pan contact.

o  The contact point between the D'Kar and Ngwako Pan rock formations is the main control for large-scale copper/silver mineralisation in the Kalahari Copper Belt.

· The Company has prepared final targets for a follow-up drill programme later this year.

Financing

· Pursuant to an FCA-approved prospectus published on 27 January 2025, the company raised £6,566,000 (US$8,160,448) gross by issuing 938,028,569 shares at £0.007 per share. 547,995,076 shares were also issued at 0.7 pence per share on the conversion of the unsecured convertible loan notes (including accumulated interest at 10% per annum).

· 22 April 2025, a US$5 million interest-free convertible loan note facility was issued by the Company to a consortium of Zimbabwe-registered pension funds, administered by Comarton Consultants (Private) Limited, at a conversion price of £0.01 per share, to be drawn down in three tranches by the Company.

· Post H1

o  8 September 2025, the issue and secondary listing of 333,364,773 ordinary shares admitted to the London Stock Exchange, and the Victoria Falls Stock Exchange ("VFEX"), Zimbabwe by way of a secondary listing, to trade solely on the VFEX comprising:

§ 69,364,667 shares issued to a consortium of nine pension funds, administered by Comarton Consultants (Private) Limited, following the first drawdown totalling US$935,660.00 of the three tranches;

§ 259,240,056 shares issued to Purebond Limited;

§ 1,850,369 shares issued to other Zimbabwean residents.

o  9 September 2025, £2.27 million raised through a subscription and placing of 227,751,720 new ordinary shares at £0.01 per share. Purebond Limited directly subscribed for 111,201,720 shares and the Chairman, Peter Wynter Bee, subscribed for 10,000,000 shares.

The Interim Management Report and financial results are set out in the following pages.

Further information in respect of the Company and its business interests is provided on the Company's website at www.kavangoresources.com and on X at @KavangoRes.

For further information please contact:

INTERIM MANAGEMENT REPORT 30 JUNE 2025

The Company's principal activities are mineral exploration, development and mining. The Company's assets are located in Zimbabwe and Botswana. The Group's focus for 2025 is exploration and development of its Zimbabwean gold assets and the expansion of early-stage gold production.

Financial Highlights

On 29 August 2024, the Company announced the launch of its capital expenditure programme ("Cap-Ex Programme") to explore and develop the Company's mining projects in Zimbabwe. The Cap-Ex Programme comprises staged capital raises for investment into specific value-generating projects. The primary objective has been to define mineral resources, to develop mining plans and to acquire plant and equipment to expand production. Kavango's proposed work programmes are focused principally on the Hillside Gold Project ("Hillside") and Nara Project ("Nara") in Zimbabwe, In Botswana exploration has been focussed on the Kalahari Copper Belt Project ("KCB").

As part of the Cap-Ex Programme, on 22 January 2025 shareholders granted authority to the Company to issue up to 1,000,000,000 Ordinary Shares in the capital of Kavango Resources for the Company's planned secondary listing on the VFEX and/or in respect of capital raising linked to the secondary listing on the Victoria Falls Stock Exchange ("VFEX"). Upon expiry, the authority was renewed at the Annual General Meeting held on 29 May 2025. The total proceeds raised on the VFEX, of approximately US$13,500,000, together with £1,500,000 proceeds raised on the Main Market of the London Stock Exchange, will provide working capital, to progress our exploration and development plans.

On 22 April 2025 the Company announced that it had issued a US$5million convertible loan note ("Loan Note") facility to a consortium of Zimbabwe registered pension funds ("Comarton"). The Loan Note is interest free, can be drawn down in three tranches by Kavango, convertible into new Ordinary Shares in Kavango at a conversion price of the USD equivalent of £0.01 per share based on the Bank of England spot price, (the "Comarton Shares"). Pursuant to the Comarton CLN, Tranche 1 of the Comarton Shares were issued and admitted to trading on the VFEX issued on 8 September 2025. Zimbabwean investors will have the option to keep their Ordinary Shares in Zimbabwe, sell them on VFEX or move them to Main Market of the London Stock Exchange ("LSE") through a Branch Register control account set up by Share Registrars Limited (Kavango's registrar in the UK) and receive Ordinary Shares on the LSE. Conversely, if demand for Ordinary Shares increases on VFEX, Kavango may issue additional ordinary shares to subscribing shareholders in Zimbabwe. Kavango has appointed Corpserve Registrars as its registrar and transfer agent in Zimbabwe.

On 1 July 2025, post the Half Year, the Company announced that Kavango has received a written commitment from Purebond Limited (the Company's major shareholder) to subscribe for the equivalent of US$5 million worth of new ordinary shares in the Company at £0.01 per share, in order to fund the exercise of the Nara option.

The Company implemented an employee share scheme to enable eligible employees of the Company and its subsidiaries, subject to certain conditions, to participate in the VFEX listing.

Projects, Zimbabwe

Kavango is exploring for gold deposits that have the potential to be developed into commercial scale production quickly through modern mechanised mining and processing. The Company is targeting both underground and open-pit opportunities.

The Company's principal activities in Zimbabwe are located in the Filabusi Archean Greenstone Belt in Matabeleland, which form part of the central Zimbabwe craton. The Company has two main projects, the Hillside Gold Project ("Hillside") comprising of 44 claims named Bills Luck, Britain, Nightshift and Steenbok, located southeast of Bulawayo, and the Nara Project comprising of 45 claims, covering four historic mines located to the south, near to Bulawayo ("Nara"). In Zimbabwe each gold claim is approximately 10 hectares ("Ha").

Kavango also has a much earlier-stage gold exploration project, called the Leopard Project ("Leopard"). Leopard consists of 30 claims and covers 896Ha.

HILLSIDE

Kavango acquired the Hillside Gold Project and Leopard South Project, having exercised the option in April 2024. Final regulatory approval from the Ministry of Mines for the transfer of the projects into the Company is ongoing at the time of this report and is expected to complete imminently.

Hillside comprises five historic underground mines. The vendors are in the process of transferring the claims to the Company's Zimbabwe subsidiary. The timing of this is subject to legal and regulatory administrative formalities.

At Hillside, the Company has established small-scale gold mining operations and is working towards larger scale mining, subject to drill results. The Company has three high priority targets it aims to develop over the next 18 months: Bill's Luck, Steenbok and Nightshift.

INTERIM MANAGEMENT REPORT 30 JUNE 2025 (continued)

The Company has been producing small amounts of gold since August 2024 at its Bill's Luck mine with plans to increase ore production to 250tpd with an average grade of 2.6g/t Au. Kavango's long-term plan is to produce between 500tpd and 1,000tpd from several localities via modular processing plants and spiral declines for ease of access for underground mining.

Recent structural and kinematic analysis across the Bill's Luck, Night Shift, and Steenbok prospects at Hillside has provided significant insight into the controls on gold mineralisation.

Spiral Decline Mining Spiral decline mining is not currently widely adopted in Zimbabwe, despite the apparent geological similarities with Western Australia's goldfields. Subject to drill results, Kavango believes that spiral decline mining has the potential to unlock significant value in Zimbabwe's goldfields.

BILLS LUCK

During H1 2025, the Company drilled 1,296.82m of diamond core resource drilling at Bill's Luck, 2,358m of reverse circulation resource drilling and 910.40m of underground diamond core resource drilling. These results significantly upgraded the Company's view Bill's Luck's potential and Kavango is now focussed on building gold production and processing capacity here to 250tpd.

On 11 August 2025, the Company announced the start of resource diamond drilling at Bills Luck, consisting of 1,400 metres around the main shaft and between Roscor and West Shafts at the Bill's Luck Gold Mine, the first phase of a 4,000m diamond drilling campaign, alongside 4,500m of RC drilling, expected to be completed by year end. The aim of the programme is to provide enough information to inform a three year mine plan. The structural complexity, combined with the presence of high-strain domains, linking shear structures, and favourable vein-hosting environments, makes the Bill's Luck area a high-potential brownfield target for structurally-controlled gold exploration within a dextral transpressional regime.

Carbon in Pulp Plant ("CIP Test Plant")

On 27 June 2025 the Company announced that it had commenced construction of a 50tpd CIP Test Plant at Bills Luck Gold Mine, to increase gold production. The intention is that ore produced from the main shaft at Bills Luck, mined by Kavango's mining team, will feed the CIP Test Plant. Commissioning of a 200tpd plant is expected in H1 2026.

NIGHTSHIFT

Kavango is investigating the potential for a selective open-pit mining operation, followed by underground mining, after a successful trenching and drilling programme. The Company drilled 1,504.53m of diamond core resource drilling at Nightshift. From this programme, Kavango has sufficient geological information and positive assay results to begin its first direct resource definition.

STEENBOK

Kavango is pursuing a high-grade mechanised underground mining opportunity. The Nightshift, Bill's Luck, and Steenbok Prospects at Hillside, within Zimbabwe's Filabusi Greenstone Belt, gold-bearing quartz veins have been confirmed to occur within well-developed shear zones. Preliminary structural interpretations highlight the importance of understanding the broader kinematic framework of these shear zones, as it provides critical insights into the controls on mineralisation. This knowledge is expected to inform the anticipated geometry of mineralised domains, guide more effective exploration strategies, and assist with vein recognition in drill core. Furthermore, if stretching lineation influenced fluid flow during mineralisation, the associated shear zone kinematics may offer valuable predictive guidance on the plunge orientation of potential orebodies.

In the first half of 2025, Kavango drilled 3,231.89m of diamond core drilling at Steenbok. Multiple zones of gold carrying mineralisation were intersected, over 400m of confirmed strike. The Company is currently analysing these results to design future exploration and testing of 1.5 kilometres ("km") of total potential strike.

BRITAIN

Kavango is assessing options for further drilling. The goal is to establish whether Britain can support small-scale selective mining and provide ore to supplement gold production at Hillside.

NARA

Nara comprises 45 contiguous gold claims of approximately 10 Ha each. Nara has a total area of 414.9 Ha.

INTERIM MANAGEMENT REPORT 30 JUNE 2025 (continued)

In June 2023 Kavango signed an exclusive two year option to acquire 100% of a producing gold exploration project in Matabeleland, southern Zimbabwe. The Nara claims have, in the past, supported high-grade underground mining and small-scale open pit mining and custom milling over the last 30 years. Metallurgical test work and engineering design and costing enabled the Company to delineate a JORC Mineral Resource over two tailings dumps at Nara (see Figure 1) in 2024.

Figure 1: JORC Mineral Resource over two tailings dumps at Nara

Technical studies are ongoing to determine the optimal route for processing the tailings at a nearby facility.

The primary target zone is around the historic N1 mine, where the Company is assessing the potential to expand artisanal workings both at depth and along strike. 

The Company exercised the option to acquire 100% of Nara for US$4,000,000 on 27 June 2025, with a completion date of 9 December 2025 or sooner. The Company has already paid US$260,000 of the Nara acquisition price.

In the first half of 2025, Kavango completed analysis of diamond drill cores taken from Nara in 2024. This informed the Company's decision to exercise the Nara option.

Projects, Botswana

In Botswana, Kavango holds prospecting licences (directly and through joint ventures) for three projects: the Kalahari Copper Belt Project ("KCB"), the Kalahari Suture Zone Project ("KSZ"), and the Ditau Project ("Ditau"). The focus is on copper-silver at the KCB, copper-nickel-platinum group elements at the KSZ, and gold-copper at Ditau.

The Company's exploration strategy in Botswana is primarily led by geophysics. The ground covered by the Company's PLs is historically underexplored, or even unexplored, which means there has been little reliable regional data to guide drilling. The stratigraphy is often unknown, meaning that it can be highly challenging to predict ground conditions and to drill through the layers of geology safely. The presence of sand cover obscuring regional geology across the Company's Botswana PLs has meant there has been a lack of geological evidence of the rock formations the Company is targeting. These formations can only be confirmed by successfully drilling them and extracting core samples.

Exact amounts and timing of further drilling will depend on the success of geophysical and other surveys in prioritising drill targets, depths of drilling, drilling conditions and results. 

In Botswana, Parliament has passed a law that limits the total land holding by any one company to 10,000 square kilometres ("km2"). With the recent pronouncement by the new Minister of Minerals and Energy that companies who have not converted their PLs to mining licences will lose them, management took a decision to withdraw the renewal applications of the old PLs to show good faith. Kavango is currently undergoing a review of its licence holdings in Botswana, to bring its total land package size to below the 10,000km2 limit.

KALAHARI COPPER BELT

The KCB Project is located within an area of recently discovered sediment-hosted copper deposits. The KCB extends 1,000km by 250km from NE Botswana to central Namibia. The Company has interests in a total of 18 licences in the KCB, covering 6,212.78km2.

Kavango has spent six months improving the interpretation of geophysical survey data taken over recent years at Karakubis to develop a target model for discovery of potential Tier 1 copper-silver mineralisation. The Company is encouraged by the results of this and is currently preparing final targets for a follow-up drill programme later this year.

In collaboration with First Quantum Minerals ("First Quantum"), Kavango gathered additional Controlled-Source Audio-frequency Magnetotelluric and Induced Polarization data along a section line located over First Quantum's deep (1,266.40m) mineral systems exploration hole. This has provided Kavango with access to important drill core, across the key target horizon for copper-silver mineralisation in the KCB. Such physical data acts as a crucial control for interpretation of geophysical survey data to identify higher-confidence drill targets.

INTERIM MANAGEMENT REPORT 30 JUNE 2025 (continued)

DITAU

Kanye Botswana has 100% working interests in four prospecting licences ("PLs") (PL169/2012, PL010/2019, PL2506/2023, and PL 2507/2023) in the Ditau Project that cover an area of 2,652.87km2. Kavango is operator. At the Ditau Project, geophysical analyses by Kavango in the area have identified 12 geophysical anomalies. Drilling by Kavango has identified anomalous levels of copper and gold and evidence of brecciation and hydrothermal activity at one of these. Analysis work by a recognised expert in Banded Iron Formation-hosted lode gold mineralising systems, has identified the potential for a lode-gold system at Ditau. A Technical Report has been released for Ditau which concluded that Ditau is an attractive early-stage exploration project with the potential to host a variety of mineralisation styles, warranting a systematic exploration effort consisting of detailed geophysical surveying and a significant amount of drilling.

KALAHARI SUTURE ZONE

The KSZ project is a 450km long magnetic structure of continental significance in SW Botswana where Kavango hold 11 PLs covering 5,361.41km2. It is considered prospective for massive sulphides and the Company's management believes the geological setting and formation is similar to the giant copper-nickelPGE deposits at Norilsk in Siberia.

While Kavango's work in the KSZ has focussed on the Ni-Cu-PGE model, the Company is also investigating a second mineralisation style within the "Great Red Spot" target. Located in Prospecting Licence PL365/2018, the Great Red Spot is a 5km x 8km magnetic anomaly on the western margin of the Kaapvaal Craton, which Kavango interprets as a promising location for magmatic intrusions and mineralising systems. It lies at the nexus of 4 interpreted regional geological structures. A Technical Report for KSZ is in preparation. 

Kavango is presently considering recommendations regarding Ditau and next steps for the KSZ.

Principal risks and uncertainties

The principal risks and uncertainties facing our business are monitored on an ongoing basis. The Board of Directors (the "Board") have reviewed the principal risks and uncertainties disclosed in the 2024 annual report and concluded that they remain applicable for the second half of the financial year. A detailed description of these risks and uncertainties is set out on pages 18 to 22 of the 2024 annual report.

The Board

Changes in Board composition in 2025 are set out below.

As announced on 9 June 2025, David Smith indicated his intention to retire from the Board on 30 June 2025, at which time Peter Wynter Bee stepped into the role of Chairman. Peter Wynter Bee joined the Board as a non-executive director on 16 January 2023 and became deputy Chairman. On 1 July 2025 Gautam Dalal was appointed a non-executive director.

Other Changes

Chief Operating Officer: As announced on 3 March 2025 Alexandra Rose Gorman ("Alex") was appointed Chief Operating Officer ("COO") in June 2025. Alex has been Company director since June 2024 and continues in that role in an executive capacity. 

Broker: On 18 June 2025 the Company announced the appointment of Shard Capital as the Company's sole broker.

Closing comments

During H1 2025 the Company, has made significant progress in Zimbabwe and achieved strategic milestones. The Board would like to especially thank our loyal shareholders and our employees as well as our contractors, for their continuing support and belief in the Company strategy. The Board extends its gratitude to our CEO and COO and their diligent and loyal teams for their continued hard work, who have helped to make possible all that the Company has achieved to date and as we move forward with the Cap-Ex Programme.

As noted above, Alex was appointed as COO and moved to Zimbabwe in June 2025 and is already proving to be a strong asset to the team in Zimbabwe and Botswana. Post the Half Year we welcomed Gautam Dalal ("Gautam") to the Board. Gautam brings a great deal of board-level experience and will further strengthen the Board as we move into the next phase of the Company's development.

Directors' Responsibility Statement

We confirm that to the best of our knowledge:

- The condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted for use in the United Kingdom.

- Give a true and fair view of the assets, liabilities, financial position and loss of the Group.

- The Interim Management Report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the set of interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

- The Interim Management Report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.

The Interim Management Report was approved by the Board, and the above responsibility statement was signed on its behalf by:

Peter Wynter Bee, Chairman

16 September 2025

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Condensed Consolidated Statement of Total Comprehensive Income

For the Interim Period Ended 30 June 2025

​

Condensed Consolidated Statement of Financial Position

For the Interim Period Ended 30 June 2025

Condensed Consolidated Statement of Changes in Equity

For the Interim Period Ended 30 June 2025

Condensed Consolidated Statement of Cash Flows

For the Interim Period Ended 30 June 2025

NOTES TO THE INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2025

1. Basis of preparation

These condensed consolidated interim financial statements include results of Kavango Resources Plc (the "Company") and its subsidiaries (the "Group") and have been prepared under the historical cost convention except for revaluation of certain financial instruments and on a going concern basis and in accordance with UK-adopted International Accounting Standards.

In the opinion of the Directors, the condensed consolidated interim financial statement for this period fairly presents the financial position, results of operations and cash flows for this period. 

The Board of Directors approved these condensed consolidated interim financial statements on 15 September 2025.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with UK-adopted International Accounting Standard 34 'Interim Financial Reporting'. They do not constitute statutory accounts as defined in s434 of the Companies Act 2006.

The condensed consolidated financial statements should be read in conjunction with the audited consolidated annual financial statements for the year ended 31 December 2024, which have been prepared in accordance with UK-adopted International Accounting Standards. 

The condensed consolidated financial information for the year ended 31 December 2024 does not constitute the Company's statutory accounts for that year but is derived from those accounts. Statutory accounts for the year ended 31 December 2024 have been delivered to the Registrar of Companies. The auditors reported on those accounts and their report was unqualified and did not contain a statement under s498(2) or (3) of the Companies Act 2006.

The condensed consolidated interim financial statements for the period ended 30 June 2025 have not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Financial Reporting Council (FRC).

Accounting policies

The condensed consolidated interim financial statements have been prepared using applicable accounting policies and practices consistent with those adopted in the statutory audited consolidated annual financial statements for the year ended 31 December 2024 and those expected to be in force for the year ended 31 December 2025.

Critical accounting judgements and estimates

The preparation of the condensed consolidated interim financial statements requires Directors to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these judgements and estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited consolidated financial statements for the year ended 31 December 2024.

Going Concern

The condensed consolidated interim financial statements are prepared on a going concern basis. In assessing whether the going concern assumption is appropriate, the Directors have considered all relevant available information about the current and future position of the Group, including the Group's cash position and the budgeted level of spending on exploration and corporate activities. The Directors are satisfied that following the successful completion of fundraising in August and September 2025, which raised gross proceeds of approximately US$6.6 million, together with the Comarton funds totalling US$5 million, to be drawndown in three tranches the Group has sufficient cash reserves to sustain the minimum level of exploration spending that is required as part of licence conditions and minimum corporate overheads activities for a period of not less than 12 months from the date of signing these financial statements. Therefore, the Directors continue to adopt the going concern basis of accounting in the preparation of the financial statements.

2. Financial risk management and financial instruments

Risks and uncertainties

The Board continually assesses and monitors the key financial risks of the business. The key financial risks that could affect the Group's medium-term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2024 Annual Report and Financial Statements, a copy of which is available from the Group's website: www.kavangoresources.com. The key financial risks are market risk (including currency risk and equity price risk), credit risk and liquidity risk.

NOTES TO THE INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2025 (continued)

3. Segmental disclosures

The Group's reportable segments are as follows:

Exploration: the exploration operating segment is presented as an aggregate of all licences in which the Group has economic interest as well as pre-licence expenditure. Expenditure on exploration activities for each licence is used to measure agreed upon expenditure targets for each licence to ensure the licence clauses are met;

Mining: includes the results of the Group's mining contract operations in Zimbabwe; 

Corporate: the corporate segment includes the holding and intermediate holding companies' costs in respect of managing the Group.

Segmental results are detailed below:

NOTES TO THE INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2025 (continued)

3. Segmental disclosures (continued)

Segmental assets and liabilities are detailed below:

4. Administrative expenses

Administrative expenses for the period ended 30 June 2025 of US$ 661,000 (June 2024: US$ 1,045,000) include a share-based payment charge of US$30,000 (June 2024: US$ 131,000) in relation to the Company's share options.

5. Pre-licence exploration costs

During the period ended 30 June 2025, the Group incurred pre-licence exploration costs of US$4,817,000 (June 2024: US$1,060,000) in Zimbabwe. The Group has options over several licence areas in Zimbabwe, consisting of the Nara Project, and the Leopard and Hillside Projects. The Group incurs option fees to gain access to the licence areas and perform exploration work to evaluate the potential of each project. The ownership of exploration data collected remains with the licence holders until the options are exercised and the acquisitions are completed. Further details on each project can be found in the Interim Management Report.

Nara Project

The Nara Project comprises 45 contiguous gold claims. On 26 June 2023, the Group entered into an exclusive two-year option agreement to acquire the claims for US$ 4,000,000 in cash, plus an earn-out based on a declaration of a code-compliant resource estimate.

The option fee is $220,000 payable in 6-monthly instalments in advance and as part of the agreement the Company is required to spend a minimum of US$ 500,000 on exploration in the first year, with a total exploration spend of US$ 2,000,000 over the option term. 

The Group exercised the option on 30 June 2025, and the acquisition is expected to be completed by 9 December 2025.

NOTES TO THE INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2025 (continued)

5. Pre-licence exploration costs (continued)

Leopard and Hillside Projects

The Hillside Project comprises 44 gold claims, plus additional claims covering an area of 896Ha at Leopard North and Leopard South. The Group exercised the option over Hillside and Leopard South in April.

The acquisition of the Hillside Project and Leopard South has not completed by 30 June 2025. The terms of the acquisition are as follows:

a) US$ 600,000 cash consideration payment to the sellers of Hillside and US$ 50,000 cash consideration to the sellers of Leopard South. The total cash payable of US$ 650,000 remains in escrow and is included within the other receivables balance (note 18) whilst the transaction completes.

b) A further US$ 1,000,000 of shares are to be issued in the Company in the event that a code compliant resource in excess of 200,000 oz gold is defined.

c) The Group to assume responsibility for up to $350,000 of debt owed, which is repayable at $10,000 per month.

d) The Group granted a royalty of 5% of gold production on the properties, capped at a value of $1,500,000, and which the Company may at its option buy out within 12 months for an issue of 63,125,000 shares in the Company.

e) Completion is subject to satisfactory transfer by the sellers of the mining claims into Kavango's Zimbabwe subsidiary, and on the Company paying the Zimbabwe Special Capital Gains Tax ("SCGT") due on the transaction.

6. Loss per share

The calculation of earnings per share is based on the loss attributable to equity holders divided by the weighted average number of shares in issue during the period.

NOTES TO THE INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2025 (continued)

7. Intangible assets

Intangible assets comprise entirely of exploration and evaluation assets.

During the period ended 30 June 2025, the additions balance relates to the Group's exploration activity in Botswana. Details on the exploration activity can be found in the Interim Management Report.

Impairment review

The Directors have undertaken a review to assess whether the following impairment indicators existed as at 30 June 2025 or subsequently prior to the approval of these condensed consolidated interim financial statements:

1. Licences to explore specific areas have expired or will expire in the near future and are not expected to be renewed;

2. No further substantive exploration expenditure is planned for a specific licence;

3. Exploration and evaluation activity in a specific licence area have not led to the discovery of commercially viable quantities of mineral resources and the Board has decided to discontinue such activities in the specific area; and

4. Sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full of successful development or by sale.

Following their assessment, the Directors concluded that no impairment indicators exist and thus no impairment charge is necessary.

8. Trade and other receivables

Other receivables and prepayments include the following:

In the year ended 31 December 2024, the Group advanced a short-term working capital loan to Pambili Natural Resources Corporation ("Pambili"), a gold exploration company listed on the TSX-V in Canada, of US$ 68,000. During the period ended 30 June 2025, the working capital loan was refinanced as disclosed in note 9.

In April 2024, the Company exercised the option to acquire the Hillside and Leopard South Projects and transferred the exercise price of US$ 650,000 into an escrow account. The acquisition has not completed by 30 June 2025 and the funds remained in escrow.

NOTES TO THE INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2025 (continued)

9. Loans receivables

Loan advanced to Pambili

During the year ended 31 December 2024, the Group provided a loan to Pambili of US$ 152,000. The loan was unsecured and repayable by no later than 31 January 2025. The loan included an arrangement fee of US$ 15,000 which was accounted for as interest, with interest income of US$ 4,900 recognised in the period ended 30 June 2025 (June 2024: US$ 6,000).

In March 2025, the loan, together with the working capital advance of US$ 68,000 (note 8) was refinanced as a convertible loan note ("CLN") with a term of 12 months and is convertible at the Group's discretion into "Units" at a fixed price of CAD 0.05 per Unit. Each Unit comprises one Pambili common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional share at a strike price of CAD 0.10, exercisable for 12 months following the date of conversion. Noting Pambili's financial difficulties, the Directors consider the fair value of the CLN to be nil with a corresponding loss of US$ 163,000 recognised within administrative expenses in Condensed Consolidated Statement of Total Comprehensive Income.

Loan advanced to Equity Drilling

During the year ended 31 December 2024, the Group provided a US$ 478,000 loan to its drilling contractor, Equity Drilling Zimbabwe (Pvt) Limited, to facilitate acquisition of drilling equipment in Zimbabwe. The loan is secured against the assets and is interest-free. The loan was repayable no later than 31 December 2025 and a total of $70,000 was repaid by 31 December 2024. During the period ended 31 June 2025, the remainder of the loan offset against pre-licence exploration expense.

10. Financial assets at fair value through profit or loss

Listed securities

Interest in listed entities comprises of the Company's investments in Power Metal Resources PLC ("Power Metals") and Pambili. The fair values of the shares is based on their unadjusted quoted market price, which represents a Level 1 input within the fair value hierarchy of IFRS 13 Fair value measurement ("IFRS 13").

At 31 December 2024, the fair value of Group's investment in Power Metals, an AIM-listed metal exploration company, was US$ 96,000. The fair value subsequently decreased to US$ 90,000 as at 30 June 2025 with a loss of US$ 14,000 recognised in profit or loss. A foreign exchange gain of US$ 8,000 has also been recognised.

As 31 December 2024, the fair value of the Group's shares in Pambili was US$ 322,000. As at 30 June 2025, the Group's interest decreased to US$ 311,000 as with the corresponding loss of US$ 40,000 recognised in profit or loss. A foreign exchange gain of US$ 29,000 has also been recognised.

The Group's other financial assets at fair value through profit or loss include the CLN issued by Pambili and disclosed in note 9. The fair value of the CLN is not based on observable market inputs which represent a Level 3 input within the fair value hierarchy of IFRS 13. The Directors consider the fair value of the CLN to be nil.

NOTES TO THE INTERIM REPORT FOR SIX MONTHS ENDED 30 JUNE 2025 (continued)

11. Share capital and share premium