2024 ANNUAL REPORT Buru Energy Limited Annual Report For the year ended 31 December 2024 ABN 71 130 651 437 Buru recognises the Aboriginal People of this nation and their ongoing connection to culture and country. We acknowledge Aboriginal People as the Traditional Owners and Custodians of the world’s oldest living culture and pay respects to their Elders past, present and emerging. Aboriginal readers are warned that the following report may contain images of deceased persons. About this Report This 2024 Annual Report is a summary of Buru Energy’s operations, activities and financial position for the 12-month period ended 31 December 2024. In this report, unless otherwise stated, references to ‘Buru’, the ‘Company’, ‘we’, ‘us’ and ‘our’ refer to Buru Energy Limited and its subsidiaries. This report contains forward-looking statements. Please refer to page 2, which contains a notice in respect of these statements. All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated. An electronic version of this report is available on Buru’s website www.buruenergy.com. The 2024 Corporate Governance Statement can be viewed on our website on the Corporate Governance page. CORPORATE REGISTER Directors Mr David Maxwell Independent Non-Executive Chair Ms Joanne Williams Independent Non-Executive Director Mr Malcolm King Independent Non-Executive Director Mr Robert Willes Independent Non-Executive Director Chief Executive Officer Mr Thomas Z Nador Company Secretary Mr Paul Bird Registered and Principal Office Address: Level 2, 16 Ord Street, West Perth WA 6005 Telephone: +61 (08) 9215 1800 Email: info@buruenergy.com Website: www.buruenergy.com Share Registry: Auditors: MUFG Corporate Markets Address: Level 12, QV1 Building 250 St Georges Terrace, Perth WA 6000 Telephone: +61 (08) 9262 6700 Email: info@mpms.mufg.com Website: https://www.mpms.mufg.com KPMG Address: Stock Exchange: 235 St George’s Terrace, Perth WA 6000 Australian Securities Exchange Address: Exchange Plaza, 2 The Esplanade, Perth WA 6000 ASX Code: BRU Current Issued Capital Trading History Fully paid ordinary shares 779,409,607 Unlisted employee share options 1,000,000 Unlisted employee performance rights 3,870,000 Share price range during 2024 $0.032 to $0.125 Liquidity (annual turnover as % of average issued capital) 19.40% Average number of shares traded per day ~0.532 million Buru Energy Ltd - Annual Report 2024 1 CONTENTS About Buru Energy 3 Chair’s Letter 4 Chief Executive Officer’s Report 6 Our Strategy 8 Review of Operations 10 Directors’ Report 19 Remuneration Report 29 Auditor’s Independence Declaration 35 Consolidated Statement of Financial Position 36 Consolidated Statement of Comprehensive Income or Loss 37 Consolidated Statement of Changes in Equity 38 Consolidated Statement of Cash Flows 39 Notes to the Financial Statements 40 Consolidated Entity Disclosure Statement 68 Directors’ Declaration 69 Independent Auditor’s Report 70 Additional ASX Information 75 Disclaimer and Forward-Looking Statements This report contains forward-looking statements that are subject to risk factors associated with the oil and gas, carbon capture and storage, natural hydrogen and helium exploration and battery minerals exploration industries. All statements in this Report regarding forward plans, forecasts and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward looking statements are based on management’s current expectations and reflect judgments, assumptions, estimates and other information available as at the date of this document, and are subject to known and unknown risks and significant uncertainties, many of which are outside the control of Buru. Actual results, performance, actions, and developments by Buru may differ materially from those expressed or implied by the forward-looking statements in this Report. Except as required by applicable law or the Australian Securities Exchange (ASX) Listing Rules, Buru disclaims any obligation or undertaking to publicly update any forward-looking statements. 2 Buru Energy Ltd - Annual Report 2024 ABOUT BURU ENERGY Who We Are Our Purpose Buru Energy Limited (ASX:BRU; “Buru” or “the Company”) is a Western Australian energy company focused on exploration and production of gas and oil resources in Australia. The Company is headquartered in Perth with a regional operational office in Broome. To bring energy resource developments to life in a way that creates long term value for our shareholders, the communities and Traditional Owners of the lands on which we operate, our employees, joint venture partners and other stakeholders. What We Do Our Vision The Company’s primary focus is the development and commercialisation of the Rafael Gas Project, based on its wholly owned and operated conventional gas and condensate discovery located in the Canning Basin in the southwest Kimberley region of Western Australia. The Company’s vision is to be a valued Australian energy company, committed to business and financial success, that has a positive impact on society and the environment. Buru also operates the conventional Ungani Oilfield, and a basin wide portfolio of exploration permits and licences prospective for conventional and unconventional hydrocarbon resources with working interests ranging from 60% to 100%. Buru Energy Ltd - Annual Report 2024 3 CHAIR’S LETTER Dear Shareholders, This is the first annual report in 16 years since Buru was listed in 2008 that Eric Streitberg has not been a director. He was Chairman for 11 years and instrumental in developing and growing the Company’s core Canning Basin business. I acknowledge and thank Eric for his dedication and significant contribution. Buru has developed deep connections with the Kimberley community and the Government. We acknowledge and thank the Traditional Owners of the areas in which we operate. We deeply respect their connection to country and understand our role to ensure that our activities create benefit for all parties. We will strive to maintain and further improve these relationships with trust and commitment. I was appointed a Non-executive Director of your company in July 2024 and elected as Chair in August 2024. The skills required for the development of the Rafael Gas Project are consistent with my executive and leadership career. This is what attracted me to Buru Energy. The global and Australian energy scene is undergoing a significant transition. It is becoming increasingly evident that the pace of the transition is not going to be as rapid as some may hope and the costs will be higher. It is also very clear that gas is a vital enabler and a required energy form as a part of the transition. In this context, the Rafael conventional onshore gas discovery in the Canning Basin late in 2021 provides Buru Energy with a unique opportunity to: - enable the energy transition in the greater Kimberley region; and - provide significant long-term economic benefit and growth for both the Company’s shareholders and the other stakeholders in the broader Kimberley community. 4 Buru Energy Ltd - Annual Report 2024 The competition and alternative to Rafael gas and condensate is much higher cost energy and gas and liquid fuels (such as diesel) which are all imported from outside the greater Kimberley region. It is imperative that the Company prioritise what is required to deliver on the development of the valuable Rafael Gas Project. This has required some significant changes including: divesting non-core assets; reducing costs; and prioritising capital allocation and resources to the development of the Rafael Gas Project. The successful development of gas projects, such as Rafael, requires a carefully coordinated and managed integration of multiple work streams and prudent risk management. Uppermost in the mind of your Board is ensuring the Rafael Gas Project is set up for success whilst ensuring appropriate funding which balances the return for shareholders and risk. The selection of partners who complement the skills and capabilities of Buru will be important. To establish the long-term strong foundation cash flow the Rafael Gas Project can deliver from late 2027, careful management of this project will remain the priority of the Board in the year ahead. When I joined the Board in July 2024, the Company was preparing for a two well Canning Basin drilling campaign to be funded by Sabre Energy Pty Ltd. In September 2024 it became clear that Sabre did not have access to the funds they had committed and which had been separately verified. Quick action was undertaken by the Buru Board and Management. The campaign was reduced to one well and alternative funding put in place, including a placement to Options to restart the Ungani oil field production remain under review. Engagement with parties linked with potential crude oil offtake and sales is continuing for this late life asset. The company’s refined and clearly focussed strategy is appropriate for a company of our size and prioritises the development the Rafael Gas Project. On behalf of the Board, I express my appreciation to shareholders for their support and patience. I acknowledge that the share price has declined during a year of challenge and change. The priority focus on the Rafael development and delivery of the key milestones will hopefully underline improved outcomes for shareholders. I thank my fellow directors, the management team and all staff for their hard work, support and resilience in what has been a difficult year. In particular, I thank and acknowledge our CEO, Thomas Nador, who has led the team with clarity and clear purpose. We look forward to achieving and reporting on key milestones in the year ahead. “ The global and Australian energy scene is undergoing a significant transition. It is becoming clearly evident that the pace of the transition is not going to be as rapid as some may hope and the costs will be higher. It is also very clear that gas is a vital enabler and a required energy form as a part of the transition. “ some large existing and new shareholders. Further information on this is provided in the CEO Report and Review of Operations. David P Maxwell Independent Non-Executive Chair 25 March 2025 Buru Energy Ltd - Annual Report 2024 5 CHIEF EXECUTIVE OFFICER’S REPORT Dear Shareholders, I am pleased to present Buru Energy’s Annual Report for 2024. As we reflect on our journey through the year, I want to express my heartfelt gratitude for your continued support in the Company. This year has been pivotal for us as we advance our plans to establish a Kimberley based gas and liquids business that can generate long term cashflows from late 2027. The oil and gas sector is undergoing significant transformation, with a growing emphasis on sustainability and the responsible management of natural resources. Despite the ongoing debate about the nature and pace towards decarbonisation, Buru is well-positioned to capitalise on the forecast demand for natural gas in Western Australia, which is essential for both economic development and energy security. Our commitment to sustainable and responsible development continues to guide our forward plans. We are dedicated to minimising environmental impact while maximising economic potential for the Company and the communities we serve. Throughout 2024, we have made substantial progress in moving the Rafael Gas Project forward, achieving milestones that have strengthened our understanding of the Rafael resource base and project feasibility. Our dedicated team, with the support of international experts, has interpreted and analysed the results from the Rafael 3D seismic survey to assess the full potential of this promising conventional gas and condensate discovery – the first of its kind in onshore Western Australia north of Karratha. This work has further derisked the Rafael Gas Project by confirming that the project can be supported by the identified and independently assessed 1C resource in EP 428 which is 100% owned by Buru Energy. This high confidence, 1C resource case of 85 Bcf is perfectly sized to meet the current and forecast energy demands of the Kimberley for 20 years. It creates a unique opportunity for the Company to transform the regional energy system by replacing the existing longhaul trucked or imported fuel used for power generation 6 Buru Energy Ltd - Annual Report 2024 and mining with a local source of trucked Liquified Natural Gas (LNG) and liquids. This provides a cost competitive, secure and emissions reduced source of dispatchable energy for the region. We are focusing on securing the necessary approvals and partnerships to develop the Rafael Gas Project. In 2025, we are planning to partner with parties who share the same vision for the creation of a regional gas business in the Kimberley as Buru Energy. The Company also plans to re-test the Rafael resource to further derisk the planned development ahead of a Final Investment Decision, currently forecast for late 2025. Reflecting on our other activities, the year saw the drilling of the Rafael Shallow 1 prospect in EP 428 in October, a high potential oil prospect that was identified as a result of the newly acquired Rafael 3D seismic survey. Following the failed farmout of the prospect to Sabre Energy Pty Ltd, drilling of the well took place with the funding support of entities associated with the Company’s long-term shareholders. The decision was taken to test this prospect as a discovery would have added substantial value to Buru and provide an alternate funding path for the Rafael Gas Project. Although the well did not encounter movable hydrocarbons it is important to note that the lack of success at Rafael Shallow 1 does not impact the Rafael Gas Project. On our Ungani assets, during the year we continued working with third parties to review opportunities to recommence production and sales revenue from the Ungani Oilfield by establishing an alternative regional export route to the previous Wyndham trucking, storage and shipping model. This work is ongoing and will require further technical and commercial assessment during 2025 to underpin a decision on the forward plans for the asset. One of the critical elements of our Rafael development strategy is our commitment to cultural and environmental stewardship. We are actively working to implement best practices in these fields, ensuring that our operations are aligned with the appropriate standards. We understand the importance of preserving the unique environmental and cultural ecosystems of the Kimberley region, and we are dedicated to conducting our activities in a manner that protects this heritage. I assure you that our commitment to transparency and open communication remains a priority. We understand that our shareholders are vital partners on our journey, and we will continue to provide regular updates on our progress and any developments that may impact our plans and operations. Our corporate governance framework is designed to ensure accountability and integrity in all our dealings, and we are continuously reviewing our policies and practices to align with industry best practices. During the year we undertook a comprehensive business review and implemented measures to reset the Company’s focus and capital to the development of the Rafael Gas Project, assessed as the most value accretive opportunity in Buru Energy’s portfolio. These measures include the deferral of all non-core Canning Basin exploration activities, a rationalisation of Buru Energy’s acreage position in the basin, and the monetisation of the Company’s 2H Resources and Battmin subsidiary companies or assets. We will continue to review our activities and practices to ensure all capital and resources are directed toward the realisation of the Rafael Gas Project and the generation of material cashflows from late 2027. In closing, I extend my sincere appreciation to our shareholders, the Chair and the Board, our talented staff and wide-ranging stakeholders for their support of our Company. Together, we are poised to capitalise on the opportunities that lie ahead. I am excited about the future of the Company and the role it will play in the energy landscape of the Kimberley region. Thank you for your continued support. We are on a promising path, and I look forward to sharing our progress with you in the coming year. Thomas Z Nador Chief Executive Officer 25 March 2025 The review resulted in a targeted headcount reduction by 40% and measures to deliver a $3 million reduction in annual general and administration expenditure. Buru Energy Ltd - Annual Report 2024 7 OUR STRATEGY The Company’s goal is to deliver material benefits to its shareholders, the Traditional Owners, the Government, and communities of the areas in which it operates. The Company plans to achieve this goal by building a compelling foundation Kimberley-based energy supply business based on its wholly owned Rafael conventional gas and condensate discovery. 8 Buru Energy Ltd - Annual Report 2024 In 2024, we continued to execute and deliver against our three-pronged strategy. Find energy resources safely and competitively - Incurred no lost time injuries across our operations. - Interpreted and analysed the Rafael 3D seismic survey data, providing increased confidence in the low volume, high confidence resource as the basis for project development. - Completed specialist carbonate reservoir studies which highlighted areas of potential improved Rafael reservoir characteristics. - Matured several leads as potential backfill for a Rafael gas development. - Commenced Canning Basin acreage rationalisation to focus on the core Rafael development. Enable opportunities through right partnerships and funding structures - Commenced discussions with potential downstream development partners (LNG facility builders) to participate in the Rafael Gas Project. - Commenced Rafael gas and condensate marketing activities. - Commenced engagement with the Northern Australian Infrastructure Facility (NAIF), the Australian Government entity that supports economic and population growth in northern Australia, to provide project financing options. Develop with aligned partners whilst maintaining a material interest in producing assets Rafael 1 drilling - Confirmed preferred Rafael Gas Project concept consisting of a small-scale LNG facility (250 tonnes per day LNG and 250 barrels per day of condensate production) situated on the Rafael 1 well pad. - Ongoing negotiation with the Traditional Owners on a Rafael Gas Project agreement. - Ongoing care and maintenance activities at the Ungani oilfield, whilst exploring options to restart production. Buru Energy Ltd - Annual Report 2024 9 REVIEW OF OPERATIONS Exploration and Appraisal Rafael Gas Project The Rafael 1 well is located in Exploration Permit 428 in the Canning Basin, some 50 kilometres to the east of the Ungani Oilfield and some 150 kilometres east of Broome. The well was drilled in late 2021 and defined a significant conventional gas and condensate resource in the Ungani Dolomite equivalent reservoir and in the dolomitised Upper Laurel Carbonate reservoir. A limited section of the interpreted hydrocarbon column in the Ungani Dolomite reservoir was flow tested in 2022 and confirmed high quality gas with low reservoir CO2, and a high condensate content of 40 barrels per million cubic feet of gas. 10 Buru Energy Ltd - Annual Report 2024 Rafael is uniquely positioned; it is the only proven conventional gas and liquids resource located in the greater Kimberley region. The Rafael Gas Project is targeting the replacement of long-haul trucked or imported fuel used for power generation in the region with a local source of trucked Liquified Natural Gas (LNG) and liquids. This provides a cost competitive, secure and emissions reduced source of dispatchable energy for the region. REVIEW OF OPERATIONS Rafael conventional gas and condensate discovery flow testing 2022 During the year, the farmout of Buru’s 100% owned Rafael conventional gas and condensate discovery was deferred to allow for specialist technical evaluations to be completed on the Rafael 3D seismic survey data, resulting in the delay of further on-ground Rafael appraisal activities to the 2025 operating season. These studies subsequently confirmed that the 1C and 2C resource volumes are robust and that the 1C volume contained within the Location declared within the 100% Buru-owned EP 428 is well suited to fully underpin the planned commercialisation of the Rafael resource via a competitive local, small scale Liquified Natural Gas (LNG) and condensate project. The pre-Front End Engineering Design for the development was delivered to Buru by GHD Pty Ltd during the year, with the study delivering an added level of design maturity, and associated cost and schedule information to underpin confidence in the commercialisation pathway for the Rafael Gas Project. Final Investment Decision for the Rafael Gas Project is currently planned for late 2025 with production scheduled to commence in 2H 2027. This opportunity will enable Buru to establish itself as the sole future gas and liquids energy producer in the Kimberley Region. This timeline to commence production aligns with the Western Australian State Government’s plans to overhaul the Kimberley energy system by 2028. With the Rafael development concept selection now complete, Buru’s near-term priority is to secure commercial agreements for the Rafael Gas Project development and gas and liquids offtake. Discussions with several parties are underway, including potential customers, LNG facility builders, owners and operators. The discussions include funding facilities and customers seeking supply from late 2027/ early 2028. This project is designed to meet the forecast energy needs of the Kimberley, significantly reducing the reliance of imported LNG and diesel fuel to support electricity generation and the broader energy needs of the region. Buru Energy Ltd - Annual Report 2024 11 REVIEW OF OPERATIONS Figure 1 below illustrates the Rafael Gas Project development timeline which is subject to future discussions with potential asset partners, offtake arrangements, land access, regulatory approvals and capital availability. Figure 1 – Rafael Gas Project Timeline 2023 ACTIVITY 2024 2025 2026 2027 2028 SUBSURFACE STUDIES AND SURVEY Acquire & Process Rafael 3D Seismic Survey Interpret Results Data Interpretation Confirm adequacy of 1C volume for Rafael Project The Rafael Project Feasibility studies Feasibility Studies Technical Definition Gas & Condensate Offtake Marketing Basis of Design Concept Definition Market Testing Engineering Draft Sales Binding Agreements Agreements Approvals, and consultation with Nyikina Mangala Final Investment Decision FID PROJECT CONSTRUCTION Re-test Drill Rafael 1 Rafael B Drilling Phase First Gas Engineering, Procurement, Construction (18 MONTHS) Project Execution DECʼ24 Timeline is indicative and is subject to capital availability, future discussions with potential asset partners, offtake arrangements, land access and regulatory approvals. Indicative well locations (Rafael 1 and Rafael B) 12 Buru Energy Ltd - Annual Report 2024 Production 2029 REVIEW OF OPERATIONS Ungani Oilfield (L20/L21 - Buru Energy 100%) At the beginning of the year Buru executed a Deed of Settlement, Termination and Release with Roc Oil Company Pty Limited (ROC) for ROC’s share of liability for costs associated with future decommissioning activities for Production Licences L 20 and L 21. A settlement of $3.4 million was received on 12 March 2024 by Buru in relation to this Deed. Buru entered into a Farm-in Agreement (Ungani FIA) with Sabre Energy Pty Ltd (Sabre) on 17 June 2024, for a 70% interest in the Ungani Oilfield production and exploration assets in Petroleum Production Licences L 20 and L 21. The Ungani FIA was a transaction whereby Sabre would contribute $1.0 million towards the costs associated with the recommencement of production operations at the Ungani Oilfield. Under the Ungani FIA Sabre would further assume an agreed proportion of the future abandonment costs in relation to the Ungani Oilfield, thereby significantly reducing Buru’s current abandonment liabilities. Sabre was to also provide a $5.0 million carry towards the costs of drilling the Mars well in the L 20 production licence. Buru is continuing work with third parties to review opportunities to recommence production and sales revenue from the Ungani Oilfield by establishing an alternative regional export route to the previous Wyndham trucking, storage and shipping model. Analysis to date indicates that the most economic path to produce the remaining Ungani resources involves a field production rate of between 200-250 bopd. This is lower than the previous operating model that required field production rates of 400 bopd or higher to account for the higher fixed costs associated with the Wyndam export route. The restart of Ungani production at the optimised production level and a different route to market requires the renegotiation of certain commercial terms pursuant to the existing Ungani Native Title agreements and requisite field management regulatory approvals. Discussions with potential partners to participate in the high impact Mars exploration prospect within the Ungani Production Licences continue. On 26 September 2024 Buru terminated the Ungani FIA with Sabre due to Sabre’s inability to meet their commitments under the Ungani FIA. Ungani Production Facility Buru Energy Ltd - Annual Report 2024 13 REVIEW OF OPERATIONS Derby EP 129 WA L 17 L8 EP 436 Yulleroo EP 436 Broome EP 391 L6 EP 428 L 20 L 21 EP 428 Ungani EP 391 EP 428 EP 428 Rafael EP 457 EP 428 Legend Buru Canning Acreage 2025 EP 457 PL Buru 100% EP Buru 100% EP 391 EP Buru 60%, Rey 40% EP 431 Oil & Gas Fields EP 431 Canning Basin Exploration Rafael Shallow Prospect (EP 428 – Buru 75%) On 5 August 2024 Buru announced it had entered into a Farm-in Agreement (Rafael Shallow FIA) with Sabre Energy Pty Ltd (Sabre) for the drilling of the Rafael Shallow 1 exploration well in EP 428 in Western Australia’s onshore Canning Basin. The transaction involved Sabre carrying Buru for $6 million of the costs associated with the drilling and testing of the Rafael Shallow exploration well to earn a 50% interest in a commercial discovery and subsequent Production Licence, with Buru retaining a 50% interest and Operatorship. Following lengthy discussions, Sabre failed to meet their financial obligations under the Rafael Shallow FIA. Therefore, on 25 September 2024 Buru and Sabre executed agreements to terminate the Rafael Shallow FIA. 14 Buru Energy Ltd - Annual Report 2024 On 26 September 2024, Buru executed binding Term Sheets to secure alternative funding of $3 million for the Rafael Shallow 1 exploration well, with two entities associated with long-term Buru shareholders to collectively earn a total 25% interest in a commercial discovery and subsequent Production Licence. On 26 September 2024, Buru executed a Rig Hire Agreement with Silver City Drilling for Rig 24, and on 9 October 2024, the Rafael Shallow 1 well was spudded. On 23 October 2024, Buru announced that the Rafael Shallow 1 well was drilled safely, on schedule and on budget but did not encounter moveable hydrocarbons. The well was subsequently plugged and abandoned. “ The lack of exploration success at Rafael Shallow 1 does not impact the development plans for the Rafael Gas Project. “ On 24 April 2024 Buru announced that following the interpretation of the Rafael 3D seismic survey data, it had identified a high potential, relatively shallow oil prospect in EP 428, partially overlying the Rafael 1 gas and condensate accumulation. REVIEW OF OPERATIONS Other Assets L6, L8, L17, EP 129, EP 391, EP 428, EP 431, EP 436, EP 457 (Buru 100% - 60% and Operator) In late 2024, Buru commenced a process with the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) to rationalise the Company’s exploration acreage in the Canning Basin. The rationalisation is aimed at: - holding and maintaining a corridor of key exploration areas around known assets and the highest potential prospects and leads and surrendering non-core acreage; - surrendering areas with operational limitations and low value within the Fitzroy River Buffer; and - retaining areas with outstanding decommissioning and rehabilitation obligations. EP 458 (Rey Resources 100% and Operator) The EP 458 exploration permit lies in the Canning Basin in a remote area to the east of the main prospectivity trends. As a result of previous exploration activity in the area by Buru, the permit is considered to have low prospectivity, with Buru having identified no drillable targets to be able to fulfil the drilling commitment in the next permit year. Therefore, Buru issued a notice of withdrawal to Rey Resources (Rey) under the EP 458 Joint Operating Agreement with effect from 1 January 2024, with Buru assigning its 60% interest and Operatorship of the permit to Rey. The results from this process are forecast to deliver: - a significant reduction in the exploration permits and production licence areas from 13,200 km2 (165 blocks) to 5,440 km2 (68 blocks); - a material reduction in exploration work program commitments and expenditure associated with surrendered areas; and - reduced internal costs, annual fees, levies and surcharges. Buru Energy Ltd - Annual Report 2024 15 REVIEW OF OPERATIONS Integrated New Energy Businesses Natural Hydrogen and Helium Exploration and Development (2H R