Note 20. Financial instruments (continued) The Consolidated Entity’s exposure to unhedged financial assets and liabilities at balance date is as follows: 30-June-26 $ 30-June-25 $ USD Financial assets Cash on hand at bank16 275,299 3,469,669 USD Financial liabilities Payables 394,409 97,027 EUR Financial assets Cash on hand at bank16 20,126 1,338,450 EUR Financial liabilities Payables 4,785,320 516,693 CAD Financial liabilities Payables 2,494,196 491,555 CUP Financial Liabilities Payables18 4,687,585 6,070,846 The Consolidated Entity had net liabilities denominated in foreign currencies as at 30 June 2026 of $10,623,669 (2025: net liabilities of $6,091,952). Based on this exposure, had the Australian dollar strengthened by 10% / weakened by 10% (2025: strengthened by 10% and weakened by 10%) against these foreign currencies with all other variables held constant, the Consolidated Entity’s loss before tax for the year would have been $965,788 lower and $1,180,407 higher (2025: $553,813 higher / $676,883 lower) and equity would have been $965,788 lower/ $1,180407 higher (2025: $553,813 higher / $676,883 lower). The percentage change is the expected overall volatility of the significant currencies, which is based on management’s assessment of reasonable possible fluctuations taking into consideration movements over the last 12 months and the spot rate at each reporting date. An analysis of the exchange rate sensitivity by foreign currency is as follows: AUD strengthened AUD weakened Change Effect on profit before tax Effect on equity Change Effect on profit before tax Effect on equity 30-Jun-26 USD net financial assets/liabilities 10% 15,715 (15,715) 10% (19,207) 19,207 EUR net financial assets/liabilities 10% 718,349 (718,349) 10% (877,982) 877,982 CAD net financial assets/liabilities 10% 231,724 (231,724) 10% (283,218) 283,218 Cash on hand at bank 965,788 (965,788) (1,180,407) 1,180,407 AUD strengthened AUD weakened Change Effect on profit before tax Effect on equity Change Effect on profit before tax Effect on equity 30-Jun-25 USD net financial assets/liabilities 10% (469,603) 469,603 10% 573,959 (573,959) EUR net financial assets/liabilities 10% (134,180) 134,180 10% 163,998 (163,998) CAD net financial assets/liabilities 10% 49,970 (49,970) 10% (61,074) 61,074 Cash on hand at bank (553,813) 553,813 676,883 (676,883) 18 CUP payables include CUP 4,687,585 which cannot be settled as the counterparty owed is a US designated entity,as per the ASX announcement on 18 June 2026. 69 Melbana Energy Limited Annual Report 2026
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