Pinnacle Minerals Limited (ASX:PIM), an ASX-listed mineral explorer focused on critical minerals in Australia and Canada, released its Annual Report for the year ended 30 June 2026. The company incurred a loss after tax of $4,319,930, compared with a loss of $891,224 in the prior year. The increased loss was primarily driven by a non-cash Impairment of exploration Assets of $2,333,472. The company ended the year with cash and cash equivalents of $2,353,250 and a focused portfolio of three core assets — Capel Mineral Sands in Western Australia, the Wirrulla Rare Earth Element and Uranium Project in South Australia, and the Adina East Lithium Project in Québec, Canada.

About Pinnacle Minerals

Pinnacle Minerals Limited (ASX:PIM) is an ASX-listed mineral exploration company that is also listed on the OTCQB Venture Market in the United States (PIMLF). The company is led by Non-Executive Chairman Stephen Ross, who was appointed during the year, and Managing Director and CEO William Witham. Pinnacle holds a portfolio of Australian and Canadian critical minerals projects and is focused on disciplined Capital management and exploration advancement across its core assets.

FY26 Annual Report — Key Developments

During FY26, Pinnacle Minerals completed its first Placement since listing, raising approximately $3.18 million (before costs) early in the year. The Board was refreshed with Stephen Ross appointed as Chairman and Aharon (Ari) Zaetz joining as Non-Executive Director. Jay Stephenson transitioned from the Board to focus on the Company Secretary role.

The company maintained a focused portfolio during FY26. The Capel Mineral Sands Project in Western Australia, the Wirrulla Rare Earth Element and Uranium Project in South Australia, and the 75%-owned Adina East Lithium Project in Québec, Canada, were all maintained in good standing throughout the year. The company also assessed a critical-minerals opportunity in the United States but elected not to proceed following review; the related heads of agreement were mutually terminated in February 2026 with no adverse financial impact.

The non-cash impairment of exploration assets of $2,333,472 was recognised during the year. Including this impairment, the total loss after tax was $4,319,930 (2025: $891,224). Cash and cash equivalents at 30 June 2026 were $2,353,250. The company also reviewed other project opportunities across critical minerals, precious metals, and battery minerals but did not proceed with any acquisitions during the year.

Industry Context

Critical minerals exploration — encompassing rare earth elements, lithium, uranium, and mineral sands — has been one of the most active areas of ASX exploration Investment in recent years, driven by Demand from the electric vehicle battery Supply chain, nuclear energy, and rare earth permanent magnet applications. Pinnacle's three-asset portfolio spans three geopolitically stable jurisdictions (Australia and Canada), which are increasingly important as supply chain Diversification becomes a priority for governments and corporations globally.

Risks and Uncertainties

Pinnacle Minerals has recognised a $2.33 million exploration impairment in FY26, indicating that the carrying value of some exploration assets has been written down. The company's loss is substantially higher than the prior year, largely due to this non-cash charge. Cash of $2.35 million at year end provides a Working Capital buffer, though further capital will be required to fund meaningful exploration programs across the three core projects. Exploration and pre-feasibility timelines for critical minerals projects can be lengthy, requiring patient capital.