5E Advanced Materials, Inc.

During the fourth fiscal quarter of 2024, the Company placed the SSF and its related injection and recovery wells, equipment and facilities into operation and therefore transferred approximately $75.9 million previously recorded as construction in progress to property plant and equipment. This amount represents the engineering services, equipment and construction costs related to the SSF and its related facilities, including any amounts of interest that were capitalized thereon. This amount was categorized into small-scale facility, injection and recovery wells, buildings and other plant and equipment, as appropriate. The Company intends to operate the SSF until we advance to the commercial construction stage for our proposed commercial facility, and therefore assigned a corresponding useful life. The useful life of the injection and recovery wells was based on their estimated productive life. The other assets placed into service will be depreciated in accordance with the Company’s established estimated useful life policy.

Properties, plant and equipment, net consisted of the following at the end of each period presented.

The Company recognized depreciation expense of approximately $19.9 million and $5.2 million for the years ended June 30, 2025 and 2024, respectively. Included in depreciation expense was amortization related to asset retirement costs (refer to Note 2–Mineral Rights and Properties, Net) of approximately $22 thousand and $21 thousand for the years ended June 30, 2025 and 2024, respectively.