5E Advanced Materials, Inc.

Construction in progress represents the equipment which has been acquired and is not in use, costs incurred for design, engineering (including related vendor testing), construction, installation services in relation to the development of the Project, and any amounts of interest that have been capitalized related to such balances.

During fiscal year 2026, the Company drilled horizontal sidetracks from two of its existing injection and recovery wells and therefore transferred approximately $2.1 million of costs incurred, that were previously recorded as construction in progress to property, plant and equipment, inclusive of amounts capitalized as construction in progress related to injection and recovery wells as of June 30, 2025. The horizontal sidetrack wells were subsequently impaired. Refer to Note 4-Properties, Plant and Equipment, Net for additional details. As of June 30, 2026, the amounts that continue to be reported as construction in progress relate to costs incurred in connection with the proposed commercial-scale facility, and related interest capitalized thereon. The Company ceased interest capitalization upon the extinguishment of the Convertible Notes, refer to Note 7-Debt.

Construction in progress consisted of the following at the end of each period presented.