Aeris Capital Raising Details

Risk Factors (cont.) Share market risk We are Aeris The market price of listed securities can be expected to rise and fall in accordance with general market conditions and factors specifically affecting the Australian resources sector and exploration companies in particular. The New Shares carry no guarantee in respect of profitability, dividends, return on capital, or the price at which they may trade on the ASX. There are a number of factors (both national and international) that may affect the share market price and neither Aeris nor its Directors have control of those factors. Financial solvency risk Aeris seeks to maintain an adequate cash balance to provide sufficient liquidity to operate, given the business has a substantial working capital requirement owing to the pattern of commodity sales and variability of commodity prices. Maintaining sufficient liquidity to operate the business is impacted by various operational and financial risk factors. The production of multiple commodities (copper, zinc, gold, and silver) and asset diversification provides Aeris with reduced risk exposure given the spread and separation of risks, however these cannot guarantee events or circumstances won't arise that may cause financial solvency risk to increase. Liquidity and solvency will also be dependent on the business operations performing as forecast in FY24 and beyond. The Board and management monitors solvency at all times and aims to manage the business with an acceptable level of working capital to mitigate solvency risk. For example, the Company ordinarily manages the timing of payment of creditors in line with its working capital fluctuations. In addition, the Company has from time to time (with engagement with creditors as appropriate) further delayed the payment of some of its creditors. While this practice has been useful in managing the Company's solvency at times of low liquidity, if creditors were to insist upon strict compliance with contractual payment terms this may negatively impact the Company's ability to maintain its solvency. Failure to maintain liquidity could lead to a material adverse effect in the ability to continue to operate as a going concern. There is a risk that there will be insufficient liquidity for the business given that only $10 million of the WHSP Facility remains undrawn and assuming other sources of capital may not be available at a particular time. Under the WHSP Facility Agreement, the Company must adhere to financial undertakings (Financial Covenants) throughout the term of the agreement to avoid default. The Financial Covenants will be re- negotiated by the parties in August 2024, but if no agreement is reached, they will remain on their current terms. There is a risk that the Company will fail to adhere to one or more of the Financial Covenants, therefore defaulting under the agreement and causing all secured moneys immediately due and payable. General economic conditions Changes in the general economic climate in which Aeris operates may adversely affect the financial performance of Aeris. Factors that may contribute to that economic climate include the general level of economic activity, interest rates, inflation, supply and demand, industrial disruption and other economic factors. The price of commodities will also be of particular relevance to Aeris. These factors are beyond the control of Aeris and Aeris cannot, with any degree of certainty, predict how they will impact on Aeris. Share price fluctuations The market price of Aeris' securities will be subject to varied and often unpredictable influences in the share market. Both domestic and world economic conditions may affect the performance of Aeris. Factors such as the level of industrial production, inflation and interest rates impact all commodity prices. Environmental impact Aeris could be subject to claims due to environmental damage arising out of current or former activities at sites that Aeris owns or operates, including new projects. This could subject Aeris to potential liability and have a material adverse effect on Aeris' financial and operational performance. Legislative change Changes in government regulations and policies may adversely affect the financial performance or the current and proposed operations generally of Aeris. 40 40

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