FY26 was a challenging year both financially and operationally. Atlas Pearls harvested approximately 620k pearls, in line with the 621k pearls harvested in FY25, while the business continued to manage biological challenges within parts of our oyster supply chain. Despite these challenges, the business achieved a record number of oysters seeded during FY26, providing a strong foundation for near-term pearls produced.

Financial performance reflected both the operational challenges experienced during the year and softer market conditions. EBITDA for FY26 was $5.8 million, compared with $18.6 million in FY25. Total revenue was $25.8 million, compared with $44.3 million in the prior year. Despite lower revenue, pearl sales volumes increased to 647k pearls, up from 593k pearls in FY25. This reflected a higher proportion of lower-grade pearls available for sale during the period. Atlas Pearls will carry closing inventory of 159k pearls into FY27 (FY25: 219k pearls). Net loss after tax was $7.9 million, compared with a net profit after tax of $21.6 million in FY25.

As noted in last year’s report, stable pricing is beneficial for both producers and customers, creating confidence and supporting long-term planning across the value chain. While market pricing remained relatively predictable from auction to auction during FY26, average realised prices for FY26 were lower than FY25. Loose pearl auction sales averaged $63 per pearl, compared with $87 per pearl in FY25. This average price reflected a combination of factors, including lower pearl quality, foreign exchange movements, and softer demand from some key private-sale customers amidst geopolitical uncertainty and reduced spending.

The product mix available for sale also influenced results. During FY26, we sold 273k low-grade pearls at an average price of $3.45 per pearl, compared with 149k pearls at an average price of $6.90 per pearl in FY25. As a result, average selling prices were lower in FY26.

Pearl quality for FY26, as measured by our internal Quality Index Score, was below FY25 levels. The overall index score was 18% lower than FY25, including the impact of lower-quality harvests from our Sumba trial site. Excluding Sumba, quality was 15% below the prior year. While these results were disappointing, they reinforce the importance of the investments being made through our genetics, hatchery, and pearl improvement programs.

We expect to begin seeing the benefits of these initiatives in future harvests. Increasing numbers of oysters derived from our breeding matrix program and our probiotic-supported hatchery processes are now entering our harvest schedules. Encouragingly, initial FY27 harvests from both the Alor and Pungu farm sites have delivered Quality Index Scores around 20% above the average achieved since mid-2022. While these early results may not be indicative of the full FY27 harvest, they provide encouraging evidence that quality improvement initiatives are beginning to deliver positive outcomes.

Significant effort during the year was directed towards addressing elevated mortality rates at our nursery operation in North Bali that required action in FY25, and again in FY26. We have acted to strengthen oyster supply through expanded joint venture partnerships and external purchases, and executing the strategic initiatives that will support future growth.

During the year, we again brought together our senior leadership team and farm managers in Sanur to review and present our updated FY30 Strategy. These sessions focused on the Pearl Improvement Plan, Revised Operating Model and other initiatives designed to improve operational performance, pearl quality, and long-term business sustainability. We also strengthened our leadership structure with the appointment of Chief Operating Officer, Mat Pullen. Based in Indonesia and having worked in the business for over 5 years, Mat provides greater focus and coordination as we continue to scale our operations and execute our strategic priorities.

While FY26 presented a number of challenges, we enter FY27 focused on optimising the opportunities in front of us over the next few years, supported by record seeding volumes, expanded oyster supply channels and increased farm capacity. The encouraging improvement in the quality of our initial FY27 harvests reinforces our focus on pearl quality, executing our revised operational model and maximising the value of every pearl we sell, as we continue to build on our solid foundations for future growth and long-term value creation.

Despite the lower earnings result, Atlas Pearls finished FY26 in a sound financial position, with cash on hand of $6.9 million (FY25: $20.2 million) and continued access to an undrawn $2.5 million overdraft facility. This provides the business with flexibility to manage seasonal working capital requirements and pursue strategic opportunities as they arise.

In line with the Company’s dividend policy, and considering the EBITDA performance and cash position, the Board has approved a final dividend (fully franked) of 0.45 cents per share to the holders of fully paid ordinary shares in respect of the year ended 30 June 2026 (FY25: 1.4 cents).

FY30 STRATEGIC ROADMAP, REVIEW AND UPDATE

During FY26, we refined our FY30 Strategic Roadmap and have commenced work to extend the planning horizon through to FY32.

Our strategy is built around four core pillars:

1. Quality Operations
2. Innovation
3. People & Culture
4. Customers & Stakeholders

The roadmap provides a clear framework for sustainable growth and value creation, supported by a dynamic operating model and our comprehensive Pearl Improvement Plan. Together, these programs coordinate a range of initiatives commenced in FY25, and provide a disciplined approach to improving production, quality, operational efficiency, and long-term returns.

Our focus remains on growing pearl production, improving pearl quality, and reducing the real cost of production through operational excellence, scale, and innovation. We continue to progress a number of strategic initiatives, including:

• Expanding our network of joint venture nursery partners that utilise Atlas Pearls’ genetic stock, increasing oyster supply while lowering the average cost of oysters available for nucleation, and providing geographic diversity of nursery locations to reduce risk. By now, having a large number of joint venture nursery partners of varying sizes, we have developed a map of the best locations for nurseries, based on results achieved to date, which we will use to help make decisions on future Atlas Pearls nursery operations in the future.
• Driving organic growth through capacity expansion across existing farms, optimisation of farming techniques and stocking densities, and the identification and development of new farming locations.
• Optimising site by site stocking levels and cultivation cycles to improve asset utilisation, increase production throughput, and reduce losses associated with oyster mortality.

Beyond operational initiatives, we continue to strengthen our relationships with government agencies and key stakeholders across Indonesia. Our strategic direction aligns closely with the Indonesian Government’s Blue Economy Roadmap 2023-2045, particularly within the priority sectors of aquaculture and marine industries.

During the year, Atlas Pearls received valuable support from government partners in relation to licensing approvals for multi-species hatchery and farming operations. We have also worked collaboratively with government stakeholders to progress the approvals and partnerships required to undertake a pilot lobster aquaculture project. This lobster initiative has the potential to provide a complementary revenue stream while aligning with Indonesia’s objective of increasing the value captured from its marine resources through domestic aquaculture development.

To further strengthen these relationships, Atlas Pearls implemented a formal Government and Stakeholder Engagement Plan during FY26. The framework provides structured engagement across all levels of government, industry groups and local communities, ensuring regular communication, stronger collaboration, and greater recognition of the economic, environmental, and social benefits that Atlas Pearls delivers throughout the regions in which we operate.

SALES INITIATIVES

The global pearl market, consistent with the broader luxury goods sector, faced a more challenging operating environment during FY26. Ongoing geopolitical uncertainty, softer consumer confidence, and subdued economic conditions across several key markets contributed to more cautious purchasing behaviour and increased pricing pressure throughout the year.

Against this backdrop, Atlas Pearls continued to execute and evolve the sales strategy established over recent years, with a focus on strengthening market resilience, expanding customer relationships, and maximising value across all sales channels. A key component of this strategy has been the continued development of a diversified multi-channel sales model designed to reduce reliance on the auction channel and individual customers, and create more consistent demand across varying market conditions.

Throughout FY26, we further enhanced our sales and pricing discipline through detailed market analysis, customer insights, and ongoing evaluation of sales performance by product category, channel and customers. This increasingly data-driven approach enables us to optimise pricing outcomes and identify opportunities, while maintaining market integrity and building mutual benefits for Atlas Pearls and its long-term customer relationships.

While pearl sales volumes increased during FY26, total revenue was lower than FY25. This outcome reflected the mix of pearls available for sale, not just the underlying demand. Harvest results, combined with inventory carried forward from FY25, resulted in a higher proportion of lower-grade pearls, including C2, low grade and reject pearls, being offered to market and, as a result, average realised selling prices were lower.

Importantly, the Company’s diversified sales platform continues to provide flexibility in how different pearl categories are marketed and sold. Our focus remains on identifying the most appropriate channel and customers for each product category while continuing to broaden and deepen our customer base across all regions and channels.

As part of this strategy, we are actively reviewing product categories that generate lower wholesale/auction margins and assessing opportunities to redirect suitable inventory into higher-value channels, including value-add wholesale programs, and retail sales. By aligning product categories with the channels best positioned to maximise value, we aim to improve overall margins, while further strengthening customer diversification and long-term market positioning.

Despite the challenges experienced across the luxury goods sector during FY26, Atlas Pearls continues to benefit from a strong and increasingly diversified customer base. We remain focused on enhancing customer relationships, refining our sales mix, and expanding market opportunities to support sustainable revenue growth and long-term value creation.

OPERATIONS INITIATIVES

As part of the ongoing execution of our FY30 Strategy, we have identified several continuous improvement initiatives under our Quality Operations pillar. These initiatives have been consolidated into three key business-wide programs to ensure clear ownership, alignment and execution:

1. Pearl Improvement Plan
2. Revised Operating Model
3. Revenue Diversification Opportunities

A key focus during FY26 was improving our understanding of the factors influencing oyster health and pearl quality. Elevated mortality rates at our North Bali nursery, which remain above historical levels, have required significant investigation and operational adjustment. Extensive reviews of hatchery procedures and spat production processes have not identified any operational causes. As a result, our Innovation and R&D teams have undertaken extensive environmental analysis in North Bali. While no single cause has yet been isolated, a number of potential factors have been eliminated, and current evidence suggests environmental conditions are the most likely major contributor.

In response, we modified our operating plans during the second half of FY26. All spat produced at the North Bali hatchery is now being directed to other Atlas Pearls farms and JV nursery partners, while the transfer of juvenile and virgin oysters into North Bali has been suspended pending further environmental assessment. We have also expanded environmental monitoring across all farming locations to establish deeper baseline datasets and enable ongoing comparison between sites.

Additional spat survival and growth trials are being conducted across our farms and JV partner locations to identify areas delivering the strongest biological performance. At the same time, we continue to expand the JV nursery network and increase capacity at both the Lembata and West Lembata hatcheries and nurseries.

Despite these challenges, Atlas Pearls seeded a record number of oysters during FY26, with FY27 seeding projections remaining strong relative to our historic averages. Our focus is now on ensuring future production volumes continue to grow, and addressing any potential production shortfall that elevated mortality rates may otherwise create in future years to ensure that we maintain a baseline in line with historical volumes.

During FY26, we also selectively reintroduced a process to reseed oysters that reject the nucleus during their initial seeding operation. Historically, these oysters were sold to other farmers at minimal value. By reseeding these oysters, we expect to generate additional value from an asset where much of the cultivation cost has already been incurred in the two years of growing and taking care of the oysters until seeding. While the pearls from reseeding operations typically achieve lower quality outcomes than first operation pearls, our analysis indicates this initiative could contribute between $1.0 million and $1.5 million of additional annual earnings from FY29 onwards, reflecting a broader focus on optimising overall value rather than assessing opportunities solely through a quality lens.

We also continue to evaluate complementary revenue streams that leverage our existing infrastructure and operating footprint. One opportunity under assessment is lobster aquaculture. During FY26, our Innovation and R&D team completed a review of the Indonesian lobster industry and identified potential opportunities aligned with the Indonesian Government’s Blue Economy agenda, which seeks to increase domestic grow-out capacity and capture greater value from Indonesia’s natural lobster seed stock resources. Indonesia has one of the largest wild sea stock resources in the world, with the majority of puerulus caught being exported to Vietnam for grow-out. Our intention is to run a pilot program to prove we can grow lobster in Indonesia on a commercial scale for export into major Asian markets. As a result, Atlas Pearls has commenced a pilot lobster grow-out trial in FY27. The trial will focus on husbandry practices, feed formulation, feed conversion ratios and growth performance to assess the commercial viability of the opportunity and develop a business case for potential future investment.

SITE DEVELOPMENT AND GROWTH PLAN

As outlined in FY25, Atlas Pearls has several levers available to drive future production growth. During FY26, we continued to execute our FY30 Strategy by leveraging the advantages of our 30-plus years of operating experience in Indonesia, established infrastructure, and expanding oyster supply network.

Our growth strategy remains focused on:

• Expanding production through joint ventures, production-sharing arrangements, and selective oyster purchases.
• Growing organically through capacity expansion at existing sites.
• Optimising cultivation cycles to increase biological asset turnover and improve production efficiency.

A key component of our growth strategy is the continued expansion of our joint venture nursery network. During FY26, we increased the number of long-term JV partners growing Atlas Pearls-produced spat using our genetic stock. This capital-light approach enhances oyster supply, increases geographic diversification, and helps mitigate biological risks across the production cycle, which are an increasingly impactful feature of pearl cultivation.

While elevated mortality rates continued to impact our North Bali nursery during FY26, we have taken proactive steps to minimise the effect on future production. This has included expanding our JV network, increasing nursery capacity at the Pungu, Banyu Biru, and Lembata farm sites, and redirecting hatchery output to alternative locations while environmental investigations continue. Encouragingly, mortality and growth data gathered from JV partners has identified several locations performing at or near historical norms. Initial results at Pungu have been particularly positive, and the site is being developed into a hybrid nursery and grow-out operation to further strengthen supply security.

Our hatcheries and nurseries remain the foundation of our long-term growth plans, while JV partnerships and external oyster purchases provide valuable flexibility, growth opportunities, and resilience within the broader oyster supply chain.

Organic Growth and Capacity Expansion

During FY26, we continued to expand capacity across several existing farm sites:

• Alor: Additional capacity of 50k nucleated oysters.
• Alyui: Additional capacity of 25k nucleated oysters.
• West Lembata: Additional spat capacity equivalent to capacity for 30k nucleated oysters.
• Pungu: Additional spat capacity equivalent to capacity for 50k nucleated oysters.

These expansions are relatively low-cost and help further dilute site fixed costs, while reducing the average cost of pearl production over time.

A particularly significant milestone is the future expansion of our Alyui operation. During the year, approval was received for an additional seven blocks adjacent to the existing lease, with approvals for a further five blocks currently progressing. Combined with the transition to an 18-month cultivation cycle, from the current 24-month cycle post-seeding, this expansion is expected to more than double the annual pearl production at the Alyui site over the medium to long-term, increasing output from approximately 180k pearls per annum to more than 400k pearls at the site. The first stage of expansion, involving the launch of two to four new blocks, is scheduled to commence in the second half of FY27.

Site Portfolio Optimisation

Following 12 months of evaluation and three harvest cycles, the Sumba trial site did not meet our operational or quality expectations. As a result, the decision has been made to mothball the site and reallocate assets and future oyster placements to higher-performing locations. This reflects our disciplined approach to capital allocation and focus on directing resources to sites offering the greatest long-term value.

We continue to actively assess new greenfield opportunities across the Indonesian archipelago. Supported by our growing environmental and operational database, we have identified approximately 20 prospective locations for further assessment and testing. Recognising that new farm development typically requires several years from identification to operation, maintaining a strong pipeline of potential sites remains an important component of our long-term growth strategy.

Production Cycle Optimisation

Following extensive trials across 18-month, 21-month, and 24-month cultivation cycles, we have identified opportunities to improve production efficiency at two of our largest grow-out sites.

As stated above, in FY27 Alyui will transition approximately 80% of production to an 18-month cycle, while Alor will initially transition approximately 20% of production. These changes are expected to reduce production costs, improve asset utilisation, and increase pearl production. The shorter cultivation cycle is expected to reduce mortalities experienced during the final six months of production at Alyui and so enabling harvests of those pearls that would have been lost in that last six month. We will also increase long-term production throughput by approximately 25% by maintaining optimal stocking densities, with the space made available by the shorter growing cycle of 18 months verse the traditional 24 months.

As Alor and Alyui currently contribute approximately two-thirds of Atlas Pearls’ total pearl production, these cultivation cycle improvements have the potential to deliver meaningful increases in production volumes, and lower average production costs over time, subject to maintaining target stocking levels. Further expansion of the 18-month harvesting cycle at Alor will be assessed as additional results become available. While most other sites are expected to remain on a 24-month cycle, the optimisation work undertaken during FY26 represents a significant opportunity to enhance future productivity and returns.

HR AND SAFETY

FY26 was a year of meaningful progress across both Health, Safety & Environment (HSE) and Human Resources (HR). We continued to strengthen systems, processes and capabilities across the business while building momentum towards key certification milestones. Investment in training, leadership development, and workforce systems is helping create a safer, more capable, and resilient organisation to support our long-term growth strategy.

Health & Safety

Safety remains a core priority for Atlas Pearls, and FY26 saw continued progress in building a more consistent and proactive safety culture across our operations.

Key achievements during the year included:

• Enhanced safety training programs across all sites, including implementation of first-aid training and initiatives aimed at reducing communicable disease risks.
• Continued advancement towards ISO 45001 accreditation, including substantial progress in risk assessments, control registers, and the introduction of a Just Culture framework that encourages open reporting and continuous learning.
• Improved consistency in safety standards through stronger HSE systems, enhanced emergency preparedness, standardised reporting processes, and a strengthened food and hygiene program.
• Development of vessel-specific safety and risk management plans for major vessels, supported by enhanced crew training and competency requirements.
• Improved accountability through a centralised HSE action tracking system and implementation of incident cause analysis method (ICAM) investigations for all serious incidents.
• Initial work on digitising HSE processes and enhancing data capture to support more effective risk management and decision-making.
• Collectively, these initiatives reflect the continued maturity of our safety culture, with leaders and employees increasingly engaged in driving safe behaviours and operational excellence.

Human Resources

During FY26, our HR team continued to strengthen the foundations required to attract, develop, and retain a high-performing workforce.

Key achievements included:

• Further improvements to HR systems, payroll accuracy, compliance processes, and progress towards ISO-based HR standards.
• Enhanced employee engagement through targeted programs focused on communication, wellbeing, and workplace culture.
• Expanded learning and development initiatives, including structured onboarding programs, career development pathways, leadership training, and the continued rollout of the Farm Manager Apprenticeship Program.
• Significant progress in succession planning, workforce capability development, and initiatives designed to mitigate key-person risk across the business.
• Advancement of broader organisational initiatives, including sustainability-focused employee programs, reviews aimed at improving operational efficiency, and workplace support services.

Taken together, FY26 delivered stronger systems, improved workforce capability, and a more consistent approach to people management across the organisation. Safety, leadership development, and employee wellbeing will remain key priorities as we continue to build capability and support the Company’s long-term growth objectives.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG), SUSTAINABILITY AND COMMUNITY ENGAGEMENT (CSR)

For more than 30 years, Atlas Pearls has been committed to supporting the communities and environments in which we operate. During FY26, we continued to strengthen our sustainability framework, reporting processes and stakeholder engagement, building on the foundations established in previous years.

A key milestone was the completion of our updated Sustainability Framework and three-year roadmap. The framework is built around three pillars:

1. Environmental Stewardship.
2. Thriving Communities.
3. Responsible & Ethical Business Operations.

These pillars are supported by 13 strategic pathways and six sustainability KPIs, providing a clear structure for prioritisation, performance measurement and long-term value creation. Progress against these KPIs will be reported through our interim and annual Sustainability Reports.

During the year, we also further enhanced our sustainability data collection and reporting systems, improving consistency and transparency across our operations. Alongside this Annual Report, we will publish our FY26 Sustainability Report, which is aligned with the Global Reporting Initiative (GRI) Standards, and references the United Nations Sustainable Development Goals (SDGs). Our sustainability approach also remains closely aligned with relevant Indonesian government priorities.

Community investment continues to be an important part of our long-term commitment to the regions in which we operate. Our established CSR programs are increasingly delivered through partnerships with government agencies, non-government organisations, educational institutions, and community groups. These collaborations enhance the reach and effectiveness of our initiatives across education, environmental stewardship, women’s and children’s health, and broader community development.

While our approach to measuring and reporting sustainability performance continues to evolve, the values underpinning our commitment remain unchanged. Through stronger systems, meaningful partnerships and decades of community engagement, Atlas Pearls continues to create lasting value for our stakeholders, our communities, and the environments that support our business.

I would like to acknowledge the dedication, resilience and hard work of our management team and employees across Indonesia and Australia. Their commitment throughout FY26 has been instrumental in navigating a challenging operating environment, while continuing to execute our strategy, and position the business for future growth.

Atlas Pearls has built a culture of continuous improvement that extends across every aspect of our operations. This commitment drives not only how we cultivate and produce pearls, but also how we measure performance, embrace innovation, develop our people, and create long-term value for all stakeholders. Through disciplined execution, data-driven decision-making, and a willingness to challenge conventional practices, we continue to strengthen the foundations of the business for the years ahead.

Our focus remains unchanged: to produce and market the world’s finest South Sea pearls, while operating responsibly, sustainably, and with respect for the environments and communities in which we work.

Atlas Pearls’ progress during FY26 was made possible through the dedication and resilience of our employees across Australia and Indonesia. I thank them all for their efforts, resilience, and commitment looking forward to FY27 and beyond, as we rise to meet the challenges and the great opportunities that lie ahead.

This commitment is reflected in our Vision and Mission:

OUR VISION

To be the global leader in the production of the world’s finest South Sea pearls.20

OUR MISSION

Producing the world’s best South Sea pearls in a way that is sustainable, respectful, and caring of our environment, people, communities and shareholders.

Michael Ricci

CEO – 25 August 2026