Sydney | Melbourne | Canberra MNSA Pty Ltd ABN 59 133 605 400 Level 1, 283 George St Sydney NSW 2000 GPO Box 2943 Sydney 2001 Tel (02) 9299 0901 Fax (02) 9299 8104 Email admin@mnsa.com.au Liability limited by a scheme approved under Professional Standards Legislation. Exploration and Evaluation Assets The Key Audit Matter How the matter was addressed in the audit As at 30 June 2026, the carrying value of exploration and evaluation assets was $ 3,798,807. In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the Group is required to assess at each reporting date if there are any triggers for impairment which may suggest the carrying value is in excess of the recoverable value. The process undertaken by management to assess whether there are any impairment triggers in each area of interest involves an element of management judgement. This area is a key audit matter due to the significant judgement involved in determining the existence of impairment triggers. During our audit, we assessed management assumptions when capitalising exploration assets and reviewing for indicators of impairment. Our procedures included: • Reviewing managements reconciliation of capitalised exploration and evaluation expenditure and ensuring it agrees to the general ledger; • Assessing the impact of farm-out agreements including recovery of prior exploration expenditure in relation to Cuba Block 9; • Evaluating costs capitalised during the period and testing on a sample basis; • Enquiring of management regarding their intentions to carry out exploration and evaluation activity in the relevant exploration areas; • Determining whether any data exists to suggest that the carrying value of these exploration and evaluation assets are unlikely to be recovered through development or sale; • Assessing management judgement in impairment assessment; and • Reviewing the appropriateness of the related disclosures within the financial statements. There were no restrictions on our reporting of Key Audit Matters. Independent Auditor’s Report continued 82 Melbana Energy Limited Annual Report 2026
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