IONDRIVE LIMITED ANNUAL

Directors' Report

Directors’ Report The Directors present their report of Iondrive Limited (ASX: ION) (the Company or Iondrive) and its controlled entities (the “Consolidated Group” or the “Group”) for the financial year ended 30 June 2026 (“2026 Financial Year” or “FY2026”). Principal Activities The principal continuing activities of the Group during the year relates to the commercialisation of the IONSolvTM recycling technology, including its application to the extraction of critical minerals from recycled magnets, e-waste, solar cells, Lithium-ion batteries. During the year, the Group sold its mineral exploration business based in South Korea. Financial Results The net result of operations for the Group for the year was a loss after income tax of $7,019,907 (2025: loss of $4,619,688). Dividends No dividends were declared in relation to the current financial year ended 30 June 2026, and the directors do not recommend the payment of dividends in respect of the financial year. Review of Operations The 2026 financial year marked a strategic pivot for Iondrive as it moved from research and technology development into commercial execution, centred around its proprietary IONSolv™ metal extraction platform technology. Iondrive achieved a number of critical milestones pertaining to preparations for commercial roll-out and initial commercialisation efforts, including milestones for the validation of IONSolv™ recoveries, an initial entry into the United States market along with government support and early commercial arrangements, as well as key changes to the Group to support the transition to the new focus. Rare Earth Recovery: Process Improvements & Independent Validation Exceeds Initial Assumptions Independent testwork in the United States has now validated the IONSolv™ platform’s performance across both light and heavy rare earth elements (“REE”) using feedstocks commercially sourced from domestic providers, with results confirming that recoveries exceeded the assumptions of the Group’s initial Techno-Economic Analysis (“TEA”). The testing was conducted by Kingston Process Metallurgy Inc. (under the direction of ProProcess Engineering), and utilised both magnet and e-waste feedstocks, which were supplied by Colt Recycling LLC (“Colt Recycling”) via the binding agreement taking effect from September 2025 (ASX announcement – 1 September 2025). • Light Rare Earths (Initial Performa