Interim Report and Financial Statements

Golden Prospect Precious Metals Ltd

21 August 2026

21 August 2026

Golden Prospect Precious Metals Limited

(the "Company")

Interim Report and Financial Statements

The Company is pleased to announce its half year results for the period ended 30 June 2026.

For the full report, please click the link below:

http://www.rns-pdf.londonstockexchange.com/rns/5651R_1-2026-8-20.pdf

Half-year highlights:

·    NAV per share down 13.6% to 100.8p in the context of the 5.4% decrease in the sterling gold price, but outperforming the VanEck Junior Gold Miners ETF which declined 14.4% in sterling terms

·    Share price decline of 0.9% to 94.0p as the discount narrowed from 19.4% to 7.5% aided by the initiation of buybacks

·   Portfolio managers Keith Watson and Robert Crayfourd resigned from CQS Investment Management ("Manulife CQS") in March;

·   In response, the Board served 12 months' protective notice and initiated a review of management arrangements options

·   Following Keith and Robert's departure in June, with the Board's approval, Diana Racanelli and Craig Bethune, senior natural resources portfolio managers at Manulife Canada,  took over the management of the portfolio on an interim basis

·    Appointment of Monica Tepes as Chair, succeeding Toby Birch, and appointment of Christopher Waldron as an independent non-executive Director

Post-period events - on 10 July the Board announced:

·    Heads of Terms agreed to appoint Baker Steel Capital Managers LLP as Investment Manager and AIFM, expected to commence in Q3 2026

·    Mark Burridge and Trevor Steel will lead the portfolio management, bringing a track record of strong outperformance

·    The Company's strategy will remain focused on mid and small cap gold and precious metals mining listed equities

·    Improved terms compared with current management arrangements:

o  Reduced management fees

o  Waived management fees for the remainder of the current manager's notice period and contribution to other costs

o  Shorter notice period following a minimum term

·    Introduction of an enhanced dividend policy targeting c. 6% p.a. paid quarterly at a rate of 1.5% of the preceding quarter-end NAV per share

·    The Board is considering a move to the Main Market of the London Stock Exchange

Chair's Statement

Key Financial Metrics

	30 Jun 2026	31 Dec 2025	Change
NAV per Share, undiluted, p	100.80	116.60	-13.6%
Price*, p	93.20	94.00	-0.9%
Discount	-7.5%	-19.4%	11.9 ppts narrowing
Net assets	£82,219,996	£125,734,102	-34.6%
Shares in issue excl. treasury	81,569,526	107,834,428	-24.4%

	6 months to 30 Jun 2026	Year to 31 Dec 2025	Change
Average net assets	£129,064,423	£72,729,087	+77.5%
Ongoing charges ratio (OCR)	1.43%	1.99%	56 bps reduction

	6 months to 30 Jun 2026			Year to 31 Dec 2025
	Closing	Average	Range	Closing	Average	Range
NAV per share, p	100.80	124.99	100.8 - 151.7	116.6	74.4	43.1 - 117.4
Price*, p	93.20	100.5	82.7 - 117.8	94.0	62.3	35.5 - 103.3
Discount %	-7.5	-17.2	-28.2 to -2.3	-19.4	-17.1	-27.8 to +0.9
Gearing**, %	17.1	6.6	0.6 - 17.1	2.1	7.3	2.1 - 11.1

*Closing price

** Gearing calculations are based on month-end data points

Performance in market context

6 months to 30 June 2026	GBP	USD
GPM NAV	-13.6%
VanEck Junior Gold Miners ETF (GDXJ)	-14.4%
VanEck Gold Miners ETF (GDX)	-13.0%
Gold price	-5.4%	-6.7%
Silver price	-17.2%	-18.3%
USD vs GBP	+1.3%
AUD vs GBP	+5.4%
CAD vs GBP	-2.1%

$/oz	Six months change	31 Dec 2025	30 Jun 2026	Average	Range
Gold	-6.7%	4,307	4,017	4,684	4,017 - 5,502
Silver	-18.3%	59	72	79	57 - 119

Source: Morningstar, LSEG Datastream

It is my pleasure to write my first Chair's statement for the Company, having assumed the role at the Annual General Meeting ("AGM") on 5 June 2026.

On behalf of the Board, I would like to express sincere thanks to my predecessor, Toby Birch, for his leadership as Chair over the last three years and his unwavering commitment since joining the Board in 2014. He guided the Company through periods in which the precious metals sector experienced both severe headwinds and remarkable resurgences, while maintaining steadfast conviction in the sector's long-term prospects. His dedication and stewardship helped position the Company for the exciting next phase of its development, and we are grateful for the strong foundations he has left for the Board to build upon.

It has been an eventful six months and post period end for the Company.

·   The portfolio managers resigned from Manulife CQS in early March, and the Board served 12-months' protective notice and undertook a strategic review of management options.

·    As the gold price fell 5.4% (in sterling) the NAV recorded a 13.6% decline to 100.8p in the first half of the year, having at its highest point on 28 February 2026 quintupled to 151.7p since the 30p lows of early October 2023.

·    The Company commenced share buybacks in mid-April and the discount narrowed from 19.4% to 7.6%

·    Heads of Terms were agreed in July for the appointment of Baker Steel Capital Managers LLP as investment manager and AIFM, expected to commence in Q3 2026.

·    A new dividend policy of 1.5% per quarter (c. 6% per annum) was introduced in July to attract new investor demand and help prevent the shares from trading at excessive discounts to NAV.

·    The Board announced in July it is considering a move to the Main Market, which the Board believes should enhance the Company's profile with investors, remove some trading limitations which exist on some platforms, lessen restrictions on the quantum of share issuance and reduce the cost of tap issues.

Resignation of portfolio managers and interim arrangements

In March, the Company announced it had been informed of the resignation by its portfolio managers, Keith Watson and Robert Crayfourd, from CQS Investment Management, the Company's Investment Manager and part of the Manulife Group. It was later announced that they would be joining Tufton Investment Management ("Tufton"). Shortly after their resignations the Company served 12 months' protective notice to Manulife CQS and started exploring options for the future management of the Company and received a number of proposals, including from Manulife CQS and Tufton.

Effective from 18 May 2026 two senior Manulife Investment Management Limited ("Manulife Canada"), portfolio managers, Diana Racanelli and Craig Bethune, assumed responsibility for the management of the portfolio. Keith and Robert provided advice in respect of the portfolio management process until their notice period expired on 2 June 2026. There was no change to the Company's investment process, strategy or operations.

Diana Racanelli, CFA and Craig Bethune, CFA, based in Toronto, are senior portfolio managers at Manulife Canada, have been with the firm for the past 12 years and, as of 31 July 2026, together managed USD 508 million in metals & mining and energy assets with a further USD 1,152 million in metals & mining and energy exposure within team managed assets.

Performance and portfolio positioning

Following NAV total returns of 20.4% in 2024 and 170.4% in 2025, the NAV recorded a 13.6% decline in the first six months of 2026. This is against a backdrop of the gold price initially gaining over 27% to a record price exceeding $5,500/oz level , before falling back to just over $4,000/oz and ending the period down 6.7% in US dollar terms (down 5.4% in sterling) as inflation fears led to a spike in US treasury yields on market expectations of rate hikes. The Trust's NAV similarly gained nearly 30% initially, reaching an all-time high of 151.7p on 2 March, before falling back and closing the period at 100.8p.

Gearing detracted 2.1% from the NAV return, while buybacks contributed c. 1.4%.

It was however encouraging to see the NAV return was ahead of the VanEck Junior Gold Miners ETF (GDXJ) which was down 14.4% in sterling terms during the period under review. The Board is using the aforementioned ETF as a performance comparator, as the Company does not have a formal performance benchmark.

At period end, the company's portfolio remained weighted towards gold equities with 77.2% of portfolio exposure. Silver equities represented 21.7% and other metals were at 1.1%. In terms of stage of development, 65.9% of the portfolio was allocated to producers, 21.4% to developers and 12.7% to explorers.

Gearing

Gearing averaged 6.6% over the period, ranging between 0.6% and 17.1%, and detracted 2.1% from the NAV return. This compares to average levels of 7.3% over the last financial year, ranging from 2.1% to 11.1%, which contributed 7.3% to the NAV return.

Gearing is used tactically by the Investment Manager, the maximum permitted level being 20%. At period end, gearing stood at 17.1% as the portfolio managers continued to remain positive on precious metal equities and believed that several structural issues remain in play for the metals.

Discount & Buybacks

Over the first half of the year the discount narrowed from 19.4% to 7.5% as a result of the Company commencing share buybacks, as explained below.

The Company ended its last financial year with the shares trading at a 19.4% discount to NAV despite delivering a stellar 170.5% NAV total return in 2025. While the NAV rose a further 29.5% by the beginning of March, to reach a peak of 151.7p, the discount proceeded to increase to its widest level of 28.2% at the end of February.

Following six months of progressive widening of the discount from single digits to in excess of 25% despite a share price quadrupling, and following the resignation of the portfolio managers, the Directors decided to commence buying back Shares.

Overall, since the commencement of buybacks on 14 April 2026 and up to the Company's AGM on 5 June 2026, 13,950,211 shares were repurchased and placed into treasury, representing 12.9% of the issued share capital prior to commencing buybacks.

Following the renewal of the buyback authority at the 5 June AGM and up to 7 July 2026 the Company bought back a further 12,476,444 shares, representing 13.3% of the 14.99% AGM authority, leaving the Company with a very small remaining buyback authority of 1.7% of the shares in issue at the time of the AGM. The Company therefore sought and received Shareholder approval to renew its buyback authority at an Extraordinary General Meeting held on 8 July 2026. To date, no shares have been bought back under this renewed authority, with the shares having traded mostly at single digit and low teens discount levels.

Total shares bought back over the period have enhanced the NAV per share by c. 1.4%.

Ongoing charges

The ongoing charges ratio ("OCR") over the period declined to 1.43% from 1.99% over the last financial year. The 56 basis points reduction was a result of the significant increase in net assets - net assets over the period averaged £129.1 million compared to £72.7 million over the previous twelve months.

Board Changes

As noted at the time of the last Annual Report, on 26 March 2026 the Company appointed Christopher Waldron as an independent non-executive Director following a search conducted by an independent recruitment consultant.

Christopher was appointed to replace Toby Birch, who will retire from the Board over the coming months. At the AGM on 5 June 2026, in accordance with the Company's succession planning, Toby stepped down from the Chair role having joined the Board in 2014 and been Chairman since 2023. He was succeeded in the Chair role by Monica Tepes, who has been a non-executive director of the Company since May 2024.

Following the AGM, the Company's committees are chaired as follows:

Committee	Chair
Audit	Helen Green
Management engagement	Monica Tepes
Remuneration and Nomination	Christopher Waldron

Each committee has as members all four directors, with the exception of the Audit Committee, where, in line with best practice, Monica Tepes, the Chair of the Board, is not a member.

Post period end developments

On 10 July 2026 the Company announced:

1.    Heads of Terms agreed to appoint Baker Steel Capital Managers LLP as Investment Manager and AIFM, expected to commence Q3 2026.

·      Mark Burridge and Trevor Steel will lead the portfolio management, bringing a track record of strong outperformance

·     The Company's strategy will remain focused on smaller cap gold and precious metals mining listed equities

·      Improved terms compared with current management arrangements:

o  Reduced management fees

Annual management fee	New arrangements	Current arrangements
Charged on	The average of market capitalisation and net assets, capped at net assets	Net assets
Rate	0.9% up to £250 million 0.8% over £250 million	1.25% up to £20 million 1.00% over £20 million

Based on net asset values and market capitalisations over the six months to 30 June 2026, the new management fee arrangement would have been equivalent to 0.82% of net assets per annum (vs 1.04% under the current arrangement) representing a 0.22% of NAV p.a. saving and equivalent to a 21.3% reduction in management fees.

Furthermore, the Board believes that the new fee arrangements are among the most competitive fees in the natural resources investment company sector.

o  Waived management fees for the remainder of the current manager's notice period and contribution to other costs

o  Shorter notice period (six months vs 12 months currently) following a minimum term

2.    Introduction of an enhanced dividend policy targeting c. 6% p.a. paid quarterly at a rate of 1.5% of the preceding quarter-end NAV per share

In accordance with this policy, on 13 July 2026, the Company declared an interim dividend of 1.51 pence per Share in respect of the quarter ended 30 June 2026 and is due to be paid on 27 August 2026. Dividends are paid gross of tax.

3.    The Board is considering a move to the Main Market of the London Stock Exchange

The Board is considering making applications to the Financial Conduct Authority and the London Stock Exchange for the Company's ordinary shares to be admitted to the closed-ended investment funds category of the Official List and to trading on the Main Market ("the Admission") and cancelling the Company's listing from The International Stock Exchange.

The Board believes the Admission:

·    Has the potential to enhance the Company's profile with investors

·    Potentially removes some trading limitations which exist on some platforms

·    Will lessen restrictions on the quantum of share issuance and reduce the cost of tap issues

·    Make the Company eligible for inclusion in the FTSE UK Index Series, including the FTSE All-Share Index, subject to FTSE Russell's index eligibility criteria and review timetable.

If the Company does proceed with an application for Admission, this is expected to occur following the commencement of Baker Steel's appointment and prior to the period in November 2026 when shareholders are able to exercise their subscription rights under the Company's articles. This would mean that the Company would no longer be subject to the maximum £5 million issuance limit which currently applies. A further announcement will be made in due course.

Closing remarks

As the Company approaches its twentieth anniversary, the Board believes these initiatives will strengthen the Company's competitive position and provide a solid platform from which to pursue attractive long-term returns in the smaller cap gold and precious metals mining sector.

Monica Tepes

Chair

August 2026

Investment Manager's Report

Review and Performance

The gold and silver commodity markets began 2026 by rising to all-time highs at the end of January before entering a severe multi-month correction triggered by a hawkish macroeconomic background and escalating interest rate expectations.

The year opened with massive speculative activities. Gold went through the US$5,000 per ounce level for the first time in history, whilst silver surged past US$120 per ounce due to severe spot liquidity squeezes in major physical markets. This initial rally was bolstered by the ongoing Middle East geopolitical premium (most notably from the US and Iran conflict), solid central bank buying, and momentum from a spectacular 2025 bull run.

The primary catalyst for the subsequent correction was a stark reversal in monetary policy expectations. As the first half of the year progressed, inflation fears flared anew, leading major financial institutions began to project aggressive rate hikes in the US rather than the easing that had been previously assumed. This caused real yields in the Government bond markets to jump sharply, which increased the opportunity cost of holding non-yielding precious metals and crushed the speculative "scarcity trade".

The Company's net asset value ("NAV") also experienced extreme volatility. The NAV started the year at 116.6p per share and rose to a high of 151.7p per share on 2 March 2026. It subsequently retreated and ended on 30 June at 100.80p per share which equated to a decline of 13.6% over the six-month period under review. The VanEck Junior Gold Miners ETF fell slightly more, by 14.4% over the same period.

Macro

At the start of the year investor focus increasingly centred on currency debasement risks amid elevated government debt levels and expectations of future Federal Reserve rate cuts, while President Trump's comments suggesting indifference to dollar volatility further supported demand for gold and other precious metals. Gold rallied strongly on the back of these developments and movements in silver were even more pronounced. The silver rally followed five consecutive years of supply deficits, as highlighted by the Silver Institute, and was exacerbated by China's decision to restrict exports of refined silver due to its strategic importance for their high‑tech and defence industries. Central bank gold purchases continued at strong levels and Physical ETFs also maintained their positive momentum. In the run up to the Iranian conflict in early March safe‑haven assets such as gold and silver continued to do well with both commodities rising.

Once the US and Iran conflict escalated and the Strait of Hormuz was closed, precious metals retraced lower, in a move that bears similarities to the initial reactions post the global financial crisis in 2008 and with Covid in 2020, where the initial price action is lower as they are initially a source of liquidity, whilst in this case, market expectations on interest rates shifting upward also weighed. Higher oil and gas prices have reinforced inflationary pressures, leading to firmer interest‑rate expectations and limiting further gains.

After heavy falls in the gold and silver prices in March 2026, April and May were quieter months as markets discounted a relatively benign view of the energy-related supply shock and its potential impact on the global economy. While the global economy is somewhat less reliant on oil than in the 1970s, and the US is more energy independent, energy costs still feed through to most industries. The current environment is not solely an oil shock, but also reflects higher gas and fertiliser prices, with knock-on effects across power generation, transportation and soft commodity markets.

The period ended with a steep market correction in the price of gold which saw the price briefly fall below US$4,000 per ounce and ending the month at US$4,017. These falls were primarily driven by a stronger US Dollar, a softening of geopolitical tensions and expectations that US interest rates may rise.

Portfolio

We take a long-term view on the holdings in the portfolio and even after the volatility seen in the first half of 2026, 8 of the top 10 holdings as at 31 December 2025 remain in the top 10 as at the end of June 2026. We have summarised some of the positions below.

The largest position in the portfolio is Emerald Resources, an Australian-listed gold miner with a large project in Cambodia. Its gold production continues to be in line with market expectations, and it is continuing to develop a nearby gold project in Cambodia. Its share price fell by 8.7% during the period under review.

G Mining Ventures is a Canadian-listed gold miner with a production mine in Brazil. It had a strong first half of 2026 with record operating margins. Despite the strong financial performance, the share price was flat over the six months.

Equinox Gold had the largest share price decline of the top 10 names falling by 31% even though its balance sheet was strengthened during the first half of the year. Despite this setback we remain supportive of company management and the ability of the company to grow.

The Company's portfolio remains weighted towards gold equities with 77.2% of portfolio exposure. Silver equities represent 21.7% and other metals are at 1.1%. Analysis of the portfolio shows that some 65.9% are producers, 21.4% are developers and 12.7% are explorers.

The Company's gearing was fairly modest during the period under review and the average for the six months was 6.6%. Gearing did rise towards the end of the period and was 17.1% as at 30 June 2026. We estimate that gearing detracted 2.1% from the NAV total return over the period.

Outlook

We remain positive on precious metal equities and believe that several structural drivers remain in place for the metals. De-dollarisation and debasement trades kept demand resilient, with central banks continuing to add to reserves. Continued purchases at elevated prices suggest that reserve diversification remains an important source of underlying demand, even as short-term volatility continues. Silver remains a meaningful position in the Company at 21.7%, reflecting its dual role as both a precious and industrial metal.

Diana Racanelli and Craig Bethune

Manulife CQS Investment Management

Enquiries
Golden Prospect Previous Metals Limited Monica Tepes, Chair	Via Company Secretary: GPPMCoSec@apexgroup.com
Manulife | CQS Investment Management       Craig Cleland	+44 (0) 20 7201 5368
Cavendish Capital Markets Limited Robert Peel (Corporate Finance) Daniel Balabanoff / Pauline Tribe (Sales)	+44 (0) 20 7908 6000 +44 (0) 20 7720 0500
Apex Fund and Corporate Services (Guernsey) Limited James Taylor	+44 (0) 20 3530 3600
Tavistock Jos Simson / Gareth Tredway / Eliza Logan	+44 (0) 20 7920 3150

About Golden Prospect Precious Metals

Golden Prospect Precious Metals Limited is a closed-ended investment company incorporated with limited liability in Guernsey on 16 October 2006. The Company's investment objective is to provide Shareholders with capital growth from a portfolio of companies involved in the gold and precious metals sector. For the latest factsheet and other information, click here.

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