ANNUAL REPORT For the Year Ended 30 June 2026p.1

CHAIRMAN'S LETTERp.4

On behalf of the Board, I am pleased to present the Annual Report of Pivotal Metals Ltd (ASX:PVT) for the financial year ended 30 June 2026. In the 12 months since our last Annual Report your Company has meaningfully advanced its Québec projects – from resource definition towards development at Horden Lake, while transforming Belleterre from a district-scale exploration opportunity into an active drill-testing programme.p.4

At Horden Lake, our flagship copper-nickel-gold-PGM project, the Company completed a major resource update process following the successful 2025 step-out drilling programme. Subsequent to year-end, this work culminated in the announcement of an enlarged Mineral Resource of 52Mt at 1.05% CuEq, demonstrating both the scale of the deposit and its potential for further growth. Metallurgical testwork completed during and after the reporting period delivered excellent results, including copper recoveries exceeding 90% into a clean, high-grade concentrate. These outcomes reinforce the quality of the Horden Lake resource and provide a strong foundation for the Company's maiden scoping study to be finalised and released in the coming quarter.p.4

At Belleterre, management recently completed the first drill program since acquisition, with encouraging results including hole 26-PIV-02 at Alotta returning 21.8m @ 1.27% Ni, 1.03% Cu and 1.29 g/t PGE from 73m. The drilling program has since been expanded to approximately 3,000m, containing targets east of the past-producing Lorraine Mine. In parallel, the acquisition of the Bambino tenements strengthened our land position and expanded the pipeline of exploration targets across this highly prospective greenstone belt.p.4

During the year, your Company raised A$5.4 million, including A$2.9 million via the issue of flow-through shares and secured Québec Government co-funding for metallurgical testwork.p.4

DIRECTORS' REPORTp.5

The principal activity of the Group is exploration for and development of copper (Cu), precious (Au, Ag), nickel (Ni) and platinum group metals (PGM). Pivotal Metals holds the advanced Horden Lake Cu-Ni-Au-Ag-PGM project in northwest Quebec, Canada, which has a large established JORC compliant mineral resource estimate supporting a soon-to-be released scoping study. The Company is also actively exploring its Belleterre Angliers Greenstone Belt (Belleterre) exploration projects, prospective for Cu-Ni-PGM and high grade gold, and located in southwest Quebec, Canada.p.5

The loss after tax for the year ended 30 June 2026 was $1,312,928 (30 June 2025 $1,550,614).p.5

HORDEN LAKEp.6

Pivotal Metals holds 100% of the Horden Lake project, located in the southern portion of the James Bay region of Quebec. Horden Lake is an advanced exploration project containing a large open-pit amenable copper dominant deposit, with substantial exploration upside. The deposit is 10km from a fully sealed, all season provincial highway that links to the La Grande Hydroelectric Complex to the north.p.6

Subsequent to year end, on 7 July 2026, the Company released a substantially enlarged mineral resource estimate for Horden Lake, prepared in accordance with the 2012 Edition of the JORC Code by independent consultants Caracle Creek International Consulting Inc. and its sub-consultant Atticus Geoscience Consulting S.A.C., with an effective date of 15 June 2026.p.7

The updated estimate totals 52.4Mt @ 1.05% CuEq for 549kt of contained CuEq metal, and delivered significant growth in pit-constrained resources: 45.5Mt constrained within a pit shell; 257kt of in-pit contained copper metal, an increase of 30% over the previous estimate; 485kt of in-pit contained CuEq metal, an increase of 40% over the previous estimate. Copper dominant, with 292kt of contained copper in total, 87% of which sits within the pit-constrained resource. Substantial by-product credits of 237koz gold, 17Moz silver, 312koz palladium plus platinum and 7kt cobalt.p.8

The Deposit extends more than 2,800m along strike and has been intersected at its deepest point approximately 540m vertically below surface, and remains open along its entire strike length and at depth – with only 8 holes penetrating the contact deeper than 300m.p.8

On 2 February 2026, Pivotal announced results from a two phase ore sorting testwork program on Horden Lake material, comprising full-scale TOMRA X-Ray Transmission (XRT) sorting in combination with heavy liquid separation (HLS) testwork. A significantly upgraded product at 2.1x the feed sample grade was produced using a relatively high selectivity threshold: 68% of mass rejected while recovering 69% of the contained copper. An alternative, lower selectivity setting delivered increased copper recovery of up to 86%, while still achieving a 1.5x grade uplift and rejecting 44% of mass.p.9

Post reporting period, on 1 September 2026, the Company announced the results of the Phase 2 metallurgical program, which extended the Horden Lake metallurgical database to 17 samples. The second locked cycle test recovered 90.5% of copper at the tested composite head grade, into a concentrate grading 26% Cu, 293 g/t Ag, 2 g/t Au and 2.5 g/t Pd. At the 2026 MRE in-pit head grades, total recoveries are now estimated at 92% copper (88% to a clean, high-grade 24% Cu concentrate plus 4% payable in the nickel concentrate), 46% nickel, 61% gold, 73% silver, 60% palladium, 29% platinum and 42% cobalt.p.10

The program was supported by Québec Government funding as part of the C$105k (~A$120k) no-recourse grant awarded to Pivotal under the Mineral Exploration Support Program for Critical and Strategic Minerals (MESP-CSM).p.9

Horden Lake remains a substantially under-drilled deposit. The mineralised Contact Zone extends more than 2,800m along strike and has been intersected to approximately 540m vertically below surface. Every hole drilled into the Contact Zone to date has encountered mineralisation, only eight holes penetrate the zone deeper than 300m vertical, and just seven of more than 200 holes drilled into it do not contribute directly to the mineral resource.p.9

The remaining conductor inventory provides a pipeline of drill-ready targets along strike and beneath the current resource, and forms the basis of the resource infill and expansion drilling planned for the 2026-27 winter season.p.10

BELLETERRE PROJECTSp.11

Pivotal has consolidated a large 160km2 (increased to 200km2 post reporting period) landholding in the highly prospective Belleterre-Angliers Greenstone Belt, consisting of 3 main project areas: Midrim, Lorraine and Laforce. The package holds numerous discoveries of ultra-high grade magmatic Cu-Ni-Au-PGM and high-grade vein hosted gold.p.11

Four holes for 671m tested the Alotta target, and a northerly-plunging FLTEM conductor. Hole 26-PIV-02 intersected multiple zones of sulphide mineralisation, returning 21.8m @ 1.27% Ni, 1.03% Cu & 1.29 g/t 3PGE from 73m, including 3.2m @ 2.91% Ni, 1.14% Cu & 2.09 g/t 3PGE from 77.2m and 4.7m @ 2.63% Ni, 1.67% Cu & 2.35 g/t 3PGE from 85.3m, and 5.2m @ 0.57% Ni, 0.93% Cu & 1.0 g/t 3PGE from 104m.p.15

The Lorraine Mine is a gabbro-hosted massive sulphide Cu-Ni-Au deposit, the most advanced occurrence within the Company's 100% owned Belleterre package. Between 1964 and 1968 the mine produced approximately 600kt at 1.4% Cu, 0.6% Ni and 0.6 g/t Au. Historic underground channel sampling across a development crosscut returned 28m @ 45 g/t Au and 3.2% Cu.p.17

Induced polarisation (IP) surveying completed in December 2025 outlined multiple high-priority targets immediately east of the mine. Subsequent to year end, the Company announced a 1,500m expansion of its diamond drilling program at Belleterre, targeting the Lorraine Mine East area. At the date of this report, approximately 1,400m is in processing or awaiting assay, with approximately 300m remaining to be drilled.p.18

Subsequent to year end, the Company secured an option to acquire 100% of the Bambino project, consolidating control of a 5km trend of high-grade copper-nickel-PGM occurrences within the Belleterre package. The 57-claim, 3,320-hectare property substantially surrounds the Company's Delphi-Patry and Zullo occurrences. Historical drilling at Delphi-Patry returned 17.5m @ 0.86% Cu, 0.52% Ni and 0.53 g/t PGE from 38m, with individual historical results reported up to 6.77% Cu and 9.73% Ni.p.19

Consideration for Bambino comprises staged cash payments totalling C$125,000, the issue of 9,615,000 shares and $500,000 of exploration expenditure over three years, with the vendors retaining a 2% net smelter return royalty, 1% of which may be bought back by the Company for C$1m.p.20

MATERIAL BUSINESS RISKSp.22

The Directors' Report sets out material business risks including foreign jurisdiction risk (Canadian government regulation), exploration, development and operating risks and costs, financing risk, land access risk, access to equipment, commodity price and exchange rate risks, risk of adverse publicity, third party risk, climate change, occupational health and safety, sovereign risk, geopolitical risks, and cyber security risks.p.22

CORPORATEp.26

During the year the Company undertook a number of security issues and lapses, including a placement announced 24 October 2025 comprising 159,090,909 shares issued at $0.0182 each as part of a flow-through placement on 31 October 2025, 65,465,558 shares issued at $0.011 each on 3 November 2025, 161,807,170 placement shares issued at $0.011 each on 22 December 2025, 17,332,982 broker fee shares, and 40,000,000 broker fee options exercisable at $0.025 expiring 22 December 2028.p.26

REMUNERATION REPORT (AUDITED)p.34

The maximum aggregate amount of fees that can be paid to Non-Executive Directors has been set at $250,000 per annum. At the 2025 AGM, 100% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2025.p.34

EVENTS SUBSEQUENT TO REPORTING DATEp.43

On 7 July 2026 the Company announced a resource estimate update. On 20 August 2026 the Company announced the acquisition of the Bambino project and issued the first tranche of 1,923,000 shares as well as an initial payment of C$12,500 as partial consideration, with remaining C$112,500 cash, 7,692,000 shares (subject to shareholder approval), and $500,000 of exploration work scheduled as annual instalments over a three-year term. The vendors retain a 2.0% Net Smelter Return royalty, 1% of which the Company may buy back for C$1,000,000 cash. Milestone payments of C$500,000 at decision to mine and C$1,000,000 at commercial production will be made, offset against future royalty payments.p.43

CORPORATE GOVERNANCEp.48

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEp.50

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONp.51

CONSOLIDATED STATEMENT OF CASH FLOWSp.53

NOTES TO THE FINANCIAL STATEMENTSp.54

For the year ended 30 June 2026 the Group incurred a total comprehensive loss of $2,311,552 (30 June 2025: total comprehensive loss of $1,065,032) and had working capital of $3,408,507 (30 June 2025: $1,579,490). The Directors believe that the Company will be able to raise additional funds through an issue of new equity and reduce its discretionary expenditure where necessary, and consider the going concern basis of preparation appropriate.p.54

As at 30 June 2026, the contingent liability arises from the acquisition of the Horden Lake project, which is subject to two separate 1% net smelter return royalties. Bambino (BABG) is comprised of almost 300 separate mining claims, various of which are subject to net smelter return royalties of up to 2.5%. Any royalties on the projects are payable only upon commercial production.p.77

INDEPENDENT AUDITOR'S REPORTp.84

In the auditor's opinion, the financial report of Pivotal Metals Limited is in accordance with the Corporations Act 2001, giving a true and fair view of the Consolidated Entity's financial position as at 30 June 2026 and financial performance for the year then ended, and complying with Australian Accounting Standards and Corporations Regulations 2001. Key audit matters identified were Exploration and Evaluation Expenditure ($14,505,072) and Share-based payments.p.84

ADDITIONAL INFORMATION FOR PUBLIC LISTED COMPANIESp.89