Chairman’s Letter

I am pleased to take this opportunity to share with you my views over the period, along with our vision for the future of our Company.

Black Mountain is an energy and resources Company focused on natural gas exploration, development and production, which was founded on the premise that unconventional oil and gas reservoirs could be developed safely and commercially in Australia.

Our long-term strategy is to continue to develop the Company’s flagship asset in the Canning Basin, Project Valhalla, which remains potentially one of Australia’s last large scale onshore unconventional undeveloped gas projects.

During the period, Black Mountain’s Environmental Review Document (ERD), submitted to the WA Environmental Protection Authority Services (EPA Services), was progressed through the prescribed approvals process. All requested materials relating to this workflow were provided and subsequently the EPA has issued its assessment report on the Company’s Valhalla Gas Exploration and Appraisal Program in the Canning Basin. On the 20th of January 2026, the EPA recommended to the Minister that, with conditions in place, the project is unlikely to have a significant environmental impact and recommends that the implementation of the Project be approved. We believe this recommendation validates the Company’s submission, views and workflows which have taken place over the last several years.

Additionally, the Commonwealth environmental assessment, being conducted with the Department of Climate Changes, Energy, the Environment and Water (DCCEEW), was progressed with responses to RFI requests (request for information) and with the IESC (Independent Expert Scientific Committee) report being published in December.

The main focus for the period was progressing the EPA and DCCEEW environmental approvals. However, the Company did take the opportunity to showcase Project Valhalla as a world class opportunity, at NAPE (North American Prospect Expo) and at SEAPEX (South Asia Petroleum Exploration Society).

The Company continues to benefit from strong and consistent support from the project areas traditional owners. The Noonkanbah Community has been waiting over 10 years for the project to progress. Their advocacy, determination and patience are greatly appreciated.

Black Mountain Energy remains steadfast and determined with its vision around its Canning Basin project. The Company has the right experience and competency to progress Project Valhalla which it continues to believe is a significantly large on-shore unconventional undeveloped gas opportunity. Our strategy is to develop the project with our expertise, creating long-term value for customers and stakeholders. Beneficiaries of this success will include local communities, traditional owners (TO’s), Western Australian government through taxes/royalties and material job creation.

On behalf of the board, I thank shareholders for their continued patience and support.

As a fellow shareholder, I continue to be excited by the journey that lays ahead of us.

The Company remains well funded with approximately $3.5m in cash and we remain focussed on progressing Project Valhalla.

Thank you,

Rhett Bennett
Executive Chairman and Chief Executive Officer

29 April 2026