Dear Shareholders,

FY26 was a year that tested our business. While Atlas Pearls remained financially resilient, the year was marked by lower pearl quality, softer market conditions, and operational challenges that impacted both revenue and earnings. The global luxury goods market faced challenges with geopolitical issues, and we were not immune to these pressures. As a result, we have reported sales revenue of $25.8 million (FY25: $44.3 million), normalised EBITDA of $5.8 million (FY25: $18.6 million) and a statutory net loss after tax of $7.9 million (FY25: net profit after tax of $21.6 million).

This loss includes non-cash losses totalling $11.9 million (FY25 non-cash net gains of $4.1 million). This means that the business remained financially positive despite the lower revenues.

Despite these challenges, I am encouraged by the strength and adaptability shown by our people and by the progress we have made in positioning the Company for future growth. Importantly, we seeded a record number of oysters during the year and continued to invest in the long-term drivers of value rather than focusing solely on short-term results.

Management responded decisively to elevated oyster mortalities experienced at our North Bali nursery by expanding our network of joint venture nursery partners, increasing geographic diversification of our oyster supply, and accelerating investment in data, research and environmental monitoring. While the immediate impact was challenging, these actions have strengthened the resilience of our production model in order to mitigate future risk.

We also continued to execute our FY30 Strategic Roadmap. Significant progress was made across our key priorities of operational quality, innovation, people and culture, and customer development. The expansion of our Alyui farm, improvements to cultivation practices, advances in genetics and hatchery programs, and the introduction of a dedicated Chief Operating Officer position all support our objective of producing more pearls, at lower cost, and with higher quality outcomes over time.

Encouragingly, early FY27 harvest results at several sites have shown meaningful improvements in quality. While it is too early to draw firm conclusions, these outcomes provide confidence that the investments made over recent years in breeding, husbandry and operational excellence are beginning to deliver measurable results.

Beyond our core pearling operations, Atlas continues to strengthen its sustainability framework, deepen relationships with government and local communities, and evaluate carefully selected diversification opportunities that leverage our aquaculture expertise and established operating footprint in Indonesia.

On behalf of the Board, I would like to thank the leadership team, and all employees across Atlas Pearls for their dedication and commitment during a demanding year. Their efforts have ensured the Company remains well positioned for the future.

Despite a challenging year, the Board is pleased to declare a fully franked dividend of 0.45 cents per share (FY25: 1.4 cents). The dividend is consistent with the Company's policy and reflects the underlying profitability of the business.

While we remain mindful of ongoing market uncertainty, we enter FY27 with confidence in our strategy, a strong operational platform, and clear opportunities to improve quality, increase production and create long-term value for shareholders.

Sincerely

José Martins

Chairman - 25 August 2026