CATALYST METALS LIMITED ANNUAL

Risk Management

RISK MANAGEMENT Figure 2 summarises Catalyst’s current process for identifying, assessing, prioritising and documenting climate-related risks and opportunities, and intended next steps relating to enterprise and climate related risks.. Catalyst’s approach is supported by its broader governance and risk management framework with the Plutonic Risk Management Plan being aligned with ISO 31000 principles. Further information on the Board, Audit and Risk Committee and management responsibilities for climate-related risks and opportunities is provided in the Governance section. Further information on the scenarios applied, including the baseline physical risk assessment, lower-warming physical risk assessment and Net Zero 2050 transition scenario, is provided in the Strategy section. Figure 2 – Climate Risk Identification and Management Process Identification of climate-related risks and opportunities Commencing in FY2025 and continuing in FY2026, Catalyst established foundational processes to support AASB S2 reporting, including the identification and assessment of climate-related risks and opportunities. The assessment was completed by a third-party consultant in two phases, relying on management input, operational knowledge, review of Catalyst’s asset base and value chain, and climate scenario analysis to identify relevant climate related risks and opportunities. The assessment considered physical and transition risks and opportunities across the short, medium and long term, consistent with the time horizons outlined in the Strategy section. Phase one considered physical risks, including exposure to extreme rainfall, flooding, heat stress, water-related impacts and weather-related operational disruption. Phase two considered transition risks and opportunities associated with carbon pricing, energy markets, regulatory change, investor expectations, technology change and supply chain impacts. Assessment and prioritisation Based on the assessments undertaken, Catalyst identified climate-related risks that could reasonably be expected to affect the Company through operational disruption and impacts on productivity, energy transition requirements or regulatory change. The risks were assessed using Catalyst’s enterprise risk framework, with risks rated High or above generally considered material. Management also considered whether information about each risk could re