South West Pinnacle Exploration Ltd Management Discussions

1. EXECUTIVE SUMMARY

The fiscal year 2025-26 (FY26) represents a defining milestone in the corporate journey of South West Pinnacle Exploration Limited (SWPEL). Amidst a powerful structural upswing in global resource exploration and intensified national mandates to enhance mineral security, the Company has scaled its operations to deliver the strongest operational and financial performance in its history.

During FY26, SWPEL achieved record consolidated operating revenues of INR 2,430 Million, registering a robust 35% Year-on-Year growth over the previous fiscal. This growth was driven by high capacity utilization across our fleet of 45 state-of-the-art drilling rigs and expanding execution lines across our 20 active pan-India projects alongside our strategic Joint Ventures in the Sultanate of Oman.

By maintaining a rigorous focus on project execution and strict cost management, our Consolidated Profit After Tax (PAT) doubled to INR 330 Million, reflecting a significant expansion in our net profit margin to 13.58%. With an unprecedented, robust consolidated order book standing at INR 7613 Million as on date, SWPEL possesses exceptional multi-year revenue visibility.

We are successfully transitioning from a pure-play exploration services model to an asset-owning commercial developer, anchored by our commercial coal block in Jharkhand and our newly secured status as an accredited prospecting agency for coal and lignite exploration. SWPEL is exceptionally well-positioned to drive long-term value for all stakeholders.

The current Fiscal year has not only achieved major operational milestones, it expanded its technical boundaries too .Our corporate strategy has positioned SWPEL exactly where macroeconomic necessity meets specialized execution capability. The global transition towards clean energy, the domestic infrastructure build out, and the intense push for critical mineral security require an unprecedented volume of exploration, drilling and geophysical data. We have responded by scaling up our capabilities across CBM production/exploration, core mineral drilling, 2D/3D land seismic mapping, and underground drilling verticals.

Furthermore, the strategic breakthrough in being gazetted as an official accredited prospecting agency for coal and lignite exploration significantly fast-tracks the development of our commercial coal asset in Jharkhand, opening up highly profitable long-term revenue streams expected to start in FY 2028-29.

2. GLOBAL ECONOMIC OVERVIEW

The global economic landscape throughout 2025 and into the first half of 2026 has been defined by structural shifts in manufacturing bases, supply chain realignments, and resource security. Despite lingering macro headwinds and variable inflationary environments across major economies, infrastructure spending and industrial production remain robust, driven by the global transition to clean energy and large-scale automation.

This reindustrialization era has initiated a powerful structural supercycle within the global metals, mining, and exploration services industries. Massive industrial demand for baseline non-ferrous commodities (such as copper, aluminum, and zinc) alongside critical battery minerals (including lithium, cobalt, gold, and rare earth elements) has forced corporate entities and sovereign governments to scale up exploratory capital expenditures. The race to map, quantify, and secure long-term primary reserves has shifted early-stage green field exploration from a cyclical operational choice to a top-tier national priority.

Consequently, the global exploration services market is expanding rapidly, on a clear trajectory to eclipse USD 18 billion by 2035 at a CAGR of 5.2% appox. Mineral-rich zones across the GCC region, Africa, Central Asia, and South America have emerged as high-priority, capitalintensive hubs for multi-year deep drilling mandates, creating structural opportunities for technically qualified, mobile service providers.

3. INDIAN ECONOMIC OVERVIEW

India continues to stand out as one of the fastest-growing major economies globally, demonstrating resilience and strong growth momentum into 2026. This economic growth is anchored by sustained public infrastructure investments, strong domestic consumption, and a clear policy focus on expanding the countrys manufacturing base under central localization initiatives.

To support this rapid expansion, the country requires an uninterrupted supply of primary energy and core industrial raw materials. Rapid urbanization, full-scale rural electrification, expanding transport networks, and the growth of the electric vehicle (EV) and renewable energy ecosystems have placed heavy structural demands on Indias primary resource extraction networks.

The Government of India has recognized that reducing high import dependencies on energy and critical minerals is essential to sustaining long-term macroeconomic stability. This has triggered a complete transformation in the domestic resource sector, supported by major regulatory adjustments, fast-tracked clearances, and an active push to mobilize private corporate capital into early-stage geological exploration and commercial mining. The ongoing Iran ·America conflict has reinforced the importance of maximizing exploration and mining of own resources to make the nation Atma Nirbhar.

4. INDUSTRY STRUCTURE & DEVELOPMENTS

The domestic exploration and drilling services sector is undergoing a transformation, moving from legacy, low-depth methods to high- precision, digital, and deep-cover exploration frameworks. The Indian exploration services market is currently valued between INR 15,000 Crore and INR 18,000 Crore, expanding at a steady project-led CAGR of 8% to 10%.

Historically, despite India possessing vast geographical reserves, drilling penetration depths remained low relative to international benchmarks, leaving deep-seated deposits unmapped. The current industry structure is shifting rapidly due to technical upgrades:

The integration of advanced 2D/3D land seismic technologies, high-density wireline logging, 3D computerized geological visualization, and AI-driven predictive modeling has drastically reduced exploration turnaround times and optimized discovery hit-rates. The market is standardizing around fully integrated service operators that can provide end-to-end solutions·from initial surface geological mapping to deep core extraction and final volumetric reporting·enabling asset owners to compress project timelines.

5. GEOLOGICAL RESERVE POSITION (COAL & NON-COAL)

India holds a strong geological reserve position globally, but these resources require extensive detailed drilling to transition from inferred assets into proven, commercially extractable reserves.

• Coal Resources:

The countrys estimated geological coal reserves stand at 344 BillionTonnes, reinforcing coals role as the bedrock of Indias baseline energy mix. Domestic coal production crossed the historic 1 Billion Ton mark during FY 2024-25 and has maintained strong momentum into 2026. However, total domestic demand continues to outpace localized supply, leading to a persistent supply gap that requires substantial coal imports, which stood at 268.24 MT.

• Strategic Non-Coal Minerals:

For non-coal and critical minerals, India holds extensive unmapped deposits of iron ore, bauxite, chromium, manganese ore, and rare earth elements. The mapping of these deep-seated deposits represents a high-upside growth vertical for specialized core drilling operations.

6. MINING SECTOR CONTRIBUTION TO GDP

The metals and mining sector serves as a core engine of industrial GDP, directly feeding upstream manufacturing, heavy engineering, infrastructure development, and primary power production. Production indicators show that metallic mineral production reached USD 14.69 Billion, while non-metallic mineral production stood at USD 1.57 Billion.

Geographically, the domestic mineral production and GDP contribution matrix remains highly concentrated across three key states:

• Odisha·Continues to lead as the premier mining state in the country, commanding a dominant 45% market share.

• Rajasthan · Holds the second position nationwide, contributing a firm 16% market share.

• Chhattisgarh·Remains a critical primary mining center, maintaining a 14% market share.

To optimize the mining sectors contribution to national GDP, the central policy focus has shifted toward fast-tracking early-stage prospecting. This strategy aims to bring hundreds of newly discovered mineral blocks into active commercial production, expanding the order pipelines for integrated exploration companies.

7. IMPORTANCE OF EXPLORATION IN INDIA

Detailed geological exploration is a vital strategic necessity for Indias economic resilience. Without high-density exploratory drilling and precise subsurface modeling, mining operations cannot be planned, capital cannot be efficiently deployed, and mineral recovery remains sub-optimal.

Key Strategic Objectives:

• Reducing Import Dependencies: India continues to import substantial volumes of coal and essential base metals, leading to significant foreign exchange outflows. Accelerating domestic exploration directly targets resource self-reliance.

• Unlocking the Critical Mineral Pipeline: The domestic manufacturing of electric vehicles, advanced energy storage systems, and semiconductor components requires a secure supply of critical minerals and rare earth elements, which can only be unlocked via deep geophysical prospecting.

• De-risking Mining Capital Expenditures: High-precision 2D/3D land seismic surveys and core sampling de-risk large-scale investments for commercial miners by providing definitive data on deposit geometry, grade distribution, and strip ratios before mining begins.

8. GOVERNMENT POLICIES & REGULATORY FRAMEWORK

The Government of India has introduced a series of market-oriented regulatory reforms designed to remove administrative bottlenecks and encourage private sector participation in exploration.

• Mineral Block Auctions: Strategic allocation and fast-tracked commercial auctioning of over 500 non-coal mineral blocks.

• FDI Allowances: Provision of 100% Foreign Direct Investment (FDI) under the automatic route for mineral mining, exploration, and upstream oil and gas sectors.

• Production Sharing Liberalization: Allowing captive miners to sell up to 50% of their annual extraction in the open market, drastically upgrading project economics.

• National Survey Drivers: Broad deployment of the Open Acreage Licensing Policy (OALP) alongside Mission Anveshan to catalyze early-stage land seismic data acquisition.

• Launch of Emergency Credit Line Guarantee Scheme 5 is another welcome step of the Government to extend financial support to the companies like us , in the wake of ongoing conflict in the Middle East Region.

A crucial regulatory milestone directly benefiting SWPEL is the Central Governments focus on expanding the network of approved exploration agencies. Following our official notification as an accredited prospecting agency for the exploration of coal and lignite, our company is authorized to fast-track prospecting operations, create comprehensive Geological Reports (GR), and design formal mining plans. This accreditation enhances our operational authority and places us at the forefront of the national exploration push.

9. COMPANY OVERVIEW & BUSINESS MODEL

Established in 2006, South West Pinnacle Exploration Limited (SWPEL) has grown into one of Indias premier private integrated exploration and mining services providers. Over the past 19 years, the Company has developed deep technical expertise in natural resource exploration, positioning it as a trusted partner for both large public sector undertakings (PSUs) and major private corporate conglomerates.

Our business model balances stable, service-fee-based cash flows from domestic drilling mandates with long-term revenue upside from asset ownership and international j oint ventures.

10. OPERATIONAL CAPABILITIES & SERVICE DOMAINS

SWPEL maintains an extensive array of operational capabilities across eight specialized engineering service domains:

A. CBM Exploration Services

Operational Scope: Identifying and evaluating Coal Bed Methane (CBM) potential in coal-rich basins.

Technical Process: Turnkey execution of exploratory drilling, advanced wireline logging, core analysis, and comprehensive desorbed gas flow testing to establish definitive commercial asset viability.

Milestones: Completed over 60 core wells till date, establishing the single highest operational volume track record in India, with key relationships with Reliance Industries (RIL) etc.

B. CBM Production Drilling Services

Operational Scope: Designing, developing, operating, and maintaining specialized surface and subsurface production infrastructure to optimize continuous methane extraction.

Technical Process: Managed hydrogeological dewatering of target coal seams to lower hydrostatic pressure, enabling the desorption and collection of methane gas under real-time digital monitoring.

Milestones: Successfully drilled over 200 vertical wells and 60 directional drilling wells having 187 laterals upto a depth of 2406 meters.. SWPEL operates as an exclusive partner to RIL, utilizing our specialized fleet of advanced CBM drilling rigs to scale up production.

C. Coal & Other Minerals Exploration Services

Operational Scope: Turnkey Greenfield and brown field prospecting for coal, ferrous, non-ferrous, and atomic minerals.

Technical Process: Multidisciplinary work flows including topography mapping, core sampling, Reverse Circulation (RC), Down-The- Hole (DTH), mud rotary drilling, managed blasting, and large-scale Overburden (OB) removal.

Milestones: Completed approximately 3.5 million (35 Lakh) cumulative meters of drilling, supported by our versatile fleet of 45 deep- capacity rigs.

D. 2D/3D Seismic Exploration

Operational Scope: High-fidelity geophysical structural mapping to identify oil, gas, coal and other deep-seated mineral formations.

Technical Process: Propagating controlled acoustic waves into the ground and capturing subsurface reflections via dense sensor arrays to build detailed 2D profiles and 3D digital block models.

Milestones: Proven land seismic execution tracking 515 sq. km. of 3D Seismic surveys and 411 LKM of 2D seismic surveys, fully equipped with advanced PST Technology for data processing and analysis.

E. Exploration using Passive Seismic Tomography (PST )

Operational Scope : Passive seismic tomography is a geophysical method that constructs 3D subsurface images by measuring natural or ambient vibrations (like micro-earthquakes, ocean waves, or cultural noise) instead of using artificial sources.

Technical Process: It maps geological structures by analyzing the speed and paths of seismic waves as they travel through the earth. Instead of using heavy equipment like dynamite or vibroseis trucks to create vibrations, this technique uses a portable network of seismometers or nodal geophones to "listen" to the ambient noise of the Earth.

Milestones: Successfully completed two large projects of Oil India over a period of last three years.

F. Geological & Geophysical Services

Operational Scope: Comprehensive studies of Earths structure to guide corporate mining layouts and infrastructure development.

Technical Process: Surface geological mapping paired with subsurface electrical resistivity and seismic surveys to interpret lithological formations.

Milestones: Driven by a core team of 43 experienced geoscientists, completing over 6.5 Lakh meters of geophysical logging across projects.

G. Aquifer Mapping

Operational Scope: Mapping underground water-bearing formations to evaluate hydrogeological quantity and quality.

Technical Process: Combining remote sensing, deep geophysical soundings, and exploratory pump testing to deliver detailed groundwater models.

Milestones: Successfully completed regional aquifer management mapping programs for state namely Madhya Pradesh, Maharashtra and Gujarat. and national water resource departments, including the Central Ground Water Board (CGWB).

H. Underground Core Drilling

Operational Scope: Creating high-precision boreholes from within subterranean mines and confined spaces for exploration or utility routing.

Technical Process: Deploying specialized, compact underground drilling rigs into confined workspaces to extract intact core samples from deep rock strata.

Milestones: Expanded our underground drilling division by deploying advanced, specialized rigs under a commercial contract from Hindustan Copper Ltd.

I. UNDERGROUND COAL GASIFICATION

Operational Scope: It includes geological mapping, coal seam correlation, thickness, moisture etc before drilling vertical, directional or horizontal wells

Technical Process: For underground coal gasification one needs to combine deep coal core drilling, geological and hydrogeological characterisation, downhole logging, resource modelling and specialised drilling support

11. ORDER BOOK POSITION & REVENUE VISIBILITY

SWPEL entered the 2026-27 fiscal year with its strongest order book to date, reflecting a successful bidding strategy and high market demand. As on date, the Companys robust consolidated order book crossed INR Million 7613 (INR 761 Crores).

This order book is distributed across our active pan-India projects, ensuring highly predictable asset utilization and a strong revenue pipeline in near to medium term.

12. OWNED COAL BLOCK DEVELOPMENT IN JHARKHAND

A key element of SWPELs long-term growth strategy is our transition into asset ownership through our commercial coal block in the State of Jharkhand.

Asset Profile and Operational Progress:

• Reserve Parameters: The assigned mining block covers 2.66 sq. km. and contains estimated geological reserves of 84 MillionTonnes (MT) of high-demand W-IV grade coal.

• Accreditation and Exploration Phase: Following the Gazette notification as an accredited prospecting agency for coal and lignite by Government of India, SWPEL has initiated physical on-site exploration and mine development operations.

• Regulatory Milestones: The digital Differential Global Positioning System (DGPS) survey is fully complete.

• Present Status :The Exploration activities have been completed and preparation of definitive Geological report (GR) is underway and is expected to be submitted soon.

• Next Steps & Production Timeline: Upon submission of GR, the formal mining plan will be fast-tracked alongside environmental clearances.

• We are targeting the commencement of commercial coal production by FY 2028·29.

• This asset is projected to generate scalable revenues of INR 700 to INR 800 Crores over the first three years of production, operating with estimated EBITDA margins of 40% to 42%.

13. INTERNATIONAL OPERATIONS (TWO JVs IN OMAN)

SWPEL has built a strong international presence in the Sultanate of Oman through two strategic corporate joint ventures, positioning the company to benefit from the countrys mineral diversification initiatives.

First Joint Venture:

Our first international joint venture entity was awarded a major 11-year copper mining contract with a total contract value of USD 125 million. Commercial mining services operations officially commenced in February 2022 and continue to progress smoothly, generating steady, scalable revenues.

Besides the JV is also imparting exploration services to the local clients using its 4 owned rigs there.

Overall our mining and exploration service operations in Oman continue to perform well, and we project a stable annual net margin between 5% and 6% from this geography.

Second Joint Venture:

Expanding our international footprint, a second joint venture was formally established, comprising four strategic partners, including the highly reputed Alara Resources Ltd., Australia. Under the definitive concession agreement executed directly with the Ministry of Energy and Minerals, Sultanate of Oman, thisJV has been granted exclusive rights to first explore and subsequently exploit a massive mining block comprising of minerals ,mainly copperbesides manganese , basalt , zinc etc.

The global copper market is expected to remain fundamentally strong. Robust demand from electrification, renewable energy, electric vehicles, power infrastructure and AI-driven digital infrastructure is likely to outpace supply growth constrained by declining ore grades, lengthy mine development timelines and geopolitical risks. This structural imbalance is expected to support sustained investment in copper exploration, mining and processing, making copper one of the most strategically important commodities of the coming decade.

The operationalization of the recently awarded mineral block through our second JV thus provides an exceptionally positive long-term outlook for our international revenues.

14. CLIENT SATISFACTION & RETENTION

SWPELs corporate growth is built on strong institutional client retention across both public sector undertakings (PSUs) and premier private sector conglomerates. Our ability to deliver complex projects under challenging geological conditions has established SWPEL as a preferred partner for critical mandates.

• Public Sector Retention: Multi-year contracts and repeat orders from top-tier institutional clients including CMPDI, Hindustan Copper Ltd., Oil India Limited (OIL), and Central Ground Water Board (CGWB).

• Private Sector Alignment: Preferred-vendor and production partner framework with Reliance Industries Limited (RIL) for active CBM blocks, Vedanta Group, Hindalco Industries, Hindustan Zinc for exploration of other minerals

• Our focus on engineering accuracy and timely contract completion has helped us maintain a high retention rate, de-risking our forward order pipelines thus giving clear visibility to medium to long run business.

15. SAFETY / HSE PERFORMANCE

Operating high capacity drilling equipment and managing exploration works at remote and difficult terrains require a strong corporate commitment to health, safety, and environmental protocols. SWPEL maintains an exemplary safety benchmark with a Zero Lost Time Injury (LTI) record across its history.

Our HSE Protocols:

• Rigorous Field Training: Continuous safety induction programs and real-time hazard identification protocols for all field engineers and drilling crews.

• Standardized Equipment Maintenance: Comprehensive preventative maintenance schedules across our fleet of 45 drilling rigs to ensure mechanical safety and integrity.

• Environmental Stewardship: Transitioning toward low-impact, scientific exploration techniques that minimize the environmental footprint on site, ensuring alignment with tightening ESG and statutory requirements.

16. FINANCIAL PERFORMANCE REVIEW

The fiscal year 2025-26 represents the strongest financial performance in the companys history, demonstrating significant growth and improved operating leverage.

Consolidated Financial Performance Summary:

• Operating Income: Consolidated revenue from operations reached INR 2,430 Million, representing a strong 35% Year-on- Year growth compared to the INR 1,803 Million recorded in FY 2024-25.

• Consolidated EBITDA: Surged by 73.5% to INR 583 Million (up from INR 336 Million in FY25), expanding our full-year EBITDA Margin to 23.99% due to strong asset utilization and efficient cost management.

• Net Profit After Tax (PAT): Grew by 101% YoY to INR 330 Million (up from INR 164 Million in FY25), yielding an improved consolidated PAT Margin of 13.58%.

This strong profitability was achieved through proactive corporate expense management combined with improved operating leverage across our expanded revenue base.

17. RATIO ANALYSIS

The following audited performance metrics demonstrate the underlying financial strength and balance sheet structure of the Company:

Particulars	Numerator	Denominator	FY 2025-26	FY 2024-25	Variance / Analysis
Debt-Equity Ratio	Total Debt	Shareholders Equity	0.39	0.37	Retains strong leverage comfort and a conservative balance sheet position.
Return on Capital Employed (ROCE)	EBIT	Capital Employed	23.00%	16.00%	Nearly doubled, driven by high capacity utilization across our specialized drilling vertical.
Current Ratio	Current Assets	Current Liabilities	1.86	2.17	Reflects strong short -term liquidity and a solid working capital buffer.
Debt Service Coverage Ratio (DSCR)	Earnings for Debt Servic e	Debt Service	1.79	1.05	Comfortable coverage across all outstanding term repayment requirements.
Return on Equity (ROE)	Net Profit After Taxes	Avg. Equity	16.21%	10.01%	Supported by increased net profitability across our high-margin segments.
Inventory Turnover Ratio	Revenu e	Avg. Inventory	5.00	4.00	Reflects efficient field inventory management and steady project execution speeds.
Debtor Turnover Ratio	Revenue	Avg. Receivables	2.55	2.74	Stable collections profile across our public sector and corporate client base.
Trade Payable Turnover Ratio	Purchases + Operating Exp.	Avg. Payables	7.33	9.79	Balanced settlement cycle with our suppliers and sub-contractors.
Net Capital Turnover Ratio	Revenue	Avg. Working Capital	2.57	2.27	Steady working capital efficiency supporting our revenue expansion.
Net Profit Margin	Net Profit	Revenue	13.58%	8.27%	Significant margin expansion driven by revenue scaling and disciplined expense management.
Return on Investment (ROI)	Interest + Rental Income	Investment	12.03%	4.54%	Reflects baseline interest income from bank fixed deposits.
Interest Coverage Ratio	Earning before Interest and Tax	Finance Cost including Interest on LT	5.90%	3.28%	Coverage increased due to higher profits
Operating Profit Margin	Gross Margin	Revenue	29%	23%	Efficient use of resources led to higher margin
Return on Net worth	Net Profit after Tax	Net Worth	16%	9%	Higher post tax profit led to improvised return on net worth

Note: In accordance with standard accounting practices, the financial ratios derived from our standalone balance sheet do not factor in the non-distributed equity accounting profits from our strategic international holdings, such as Alara Resources LLC and a wholly owned subsidiary i.e. South West Resources Pvt Ltd. Incorporating these equity returns on a fully consolidated basis significantly improves our asset/ equity returnprofile.

18. SWOT ANALYSIS

STRENGTHS

• Full-Spectrum Services Portfolio: Integrated capabilities across high-barrier drilling, seismic mapping, CBM extraction, and specialized underground exploration verticals.

• Proven Operational Track Record: Successful completion of 165+ complex projects with over 3.5 million meters drilled across diverse terrains.

• Versatile Equipment Base: Complete ownership of a modern fleet of 45 specialized drilling rigs.

• Strong Balance Sheet: Strong financial positioning with a conservative 0.39 Debt/Equity ratio and an expanding 23% ROCE.

• Strategic Resource Assets: Direct ownership of our commercialJharkhand coal block and

• Growing presence in Oman via two active JVs.

WEAKNESSES

• Competitive Bidding Framework: Operating within a tender-based procurement system can create pricing pressures during competitive bidding rounds.

• Dependency on Statutory Clearances: Project execution timelines can be affected by standard timelines for obtaining forest, environmental, and regional clearances.

• Weather Sensitivity: Field drilling velocity and seasonal seismic surveys remain subject to weather conditions and monsoon disruptions.

OPPORTUNITIES

• Expanding Mineral Block Auctions: The Central Governments mandate to auction 500+ non-coal mineral blocks expands our project pipeline.

• Upstream Energy Initiatives: 100% FDI allowances in the oil & gas sector paired with active OALP and Mission Anveshan rollouts drive domestic seismic exploration.

• National Aquifer Mandates: The shift toward scientific groundwater management via the CGWB creates opportunities for large-scale hydrogeological mapping contracts.

• GCC Region Expansion: Significant mineral potential within our dual j oint ventures in Oman.

• Copper is increasingly viewed as the "new oil of electrification." Governments and mining companies are accelerating exploration and mine development, but the long lead times mean new supply will take years to materialize. For exploration and drilling companies, this creates significant opportunities because:

• More greenfield and brownfield exploration will be required.

• Existing mines need resource expansion through continued drilling.

THREATS

• Evolving Environmental Regulations: Changes in environmental compliance standards or sudden adjustments in legislative frameworks.

• Macro-Policy and Fiscal Volatility: Unanticipated adjustments to baseline tax regulations, royalty matrix structures, or operational mining guidelines.

• Localized Field Obstacles: Occasional localized logistical delays or non-cooperation from community clusters, which can temporarily impact site mobilization.

19. RISK MANAGEMENT FRAMEWORK

SWPEL utilizes an enterprise-wide risk management framework to identify, assess, and mitigate operational and financial risks before they

impact performance.

• Tender Pricing Pressures · Addressed by shifting asset weight toward specialized, high-barrier technical segments where competition is scarce.

• Statutory Clearance Pipeline · Controlled by specialized internal legal and land groups executing compliance files ahead of physical equipment schedules.

• Macro-Currency Exposure · Handled by framing secure, long-term international joint venture metrics around stable, dollar- denominated copper extraction assets in Oman.

20. INTERNAL CONTROL SYSTEMS

The Company operates an internal control framework that is fully commensurate with the size, scope, and operational complexity of its business. We utilize system-enforced workflows accompanied by a strict, multi-tiered corporate authorization matrix to ensure all financial and operational transactions are executed under proper management review.

SWPEL employs a dedicated, qualified Internal Auditor alongside specialized field compliance personnel who closely monitor day-to-day operations to ensure adherence to our standard operating procedures (SOPs). The Internal Auditor submits independent review reports periodically, which are reviewed by executive management, the Audit Committee, and the Board. Furthermore, our internal audit team collaborates closely with our Statutory Auditors to ensure accurate transaction recording, rigorous physical inventory counts, and verification of the companys fixed assets and rig machinery.

21. HUMAN RESOURCES / INDUSTRIAL RELATIONS

As a specialized, technical service provider, SWPEL considers its workforce to be a core competitive asset. The Company is supported by a highly skilled technical workforce, with our current head-count standing at dedicated corporate and field employees. We continue to maintain a low employee attrition rate that sits well below the broader engineering and mining industry averages.

The companys track record for timely project delivery is driven by our field engineers and crew members, who execute complex drilling schedules within tight timelines under diverse field conditions. This commitment has earned the company strong client testimonials from major PSU and corporate asset owners. Management remains committed to nurturing an open, transparent corporate culture where continuous dialogue is encouraged, and employee insights are integrated into operational planning. Relations across all operating project sites remain positive and cooperative.

22. STRETEGIC OUTLOOK

The intermediate and long-term outlook for SWPEL remains positive across all operating divisions. Backed by a healthy consolidated order book of INR 7613 Million, our core exploration service business lines are projected to sustain a steady compound growth rate of 15% to 20% per annum over the near to medium term, with core EBITDA margins expected to remain in the range of 24-25 %>. Long-term growth will be supported by the commercialization of our Jharkhand coal block and the expansion of our mining concessions in the Sultanate of Oman .

Looking ahead, our priorities are clear:

• To strengthen operational capacity and technology adoption

• To deepen our presence in emerging exploration segments

• To maintain industry-leading safety standards

• To improve margins through better execution efficiency

• To remain focussed on Oman Business

• To operationalise Coal block as early as possible

• And above all, to deliver sustainable value to our shareholders.

Keeping above in mind, we remain focused on expanding our capabilities with experienced manpower, maintaining execution excellence on pan India basis, and creating sustainable value for all stakeholders.

23. DISCLAIMER CLAUSE

Statements contained within this Management Discussion and Analysis report outlining the Companys operational objectives, forwardlooking projections, financial estimates, and strategic market expectations constitute "forward-looking statements" under applicable securities laws and regulatory frameworks. These statements involve inherent risks, macro uncertainties, and external market shifts. A variety of external and internal economic factors·including shifting geopolitical landscapes, domestic policy updates, monsoon severity, and global commodity price cycles·are beyond the direct control of corporate management and could cause actual operational outcomes to differ materially from expressed projections. The Company assumes no obligation to publicly update or amend any forward-looking statements based on subsequent developments, new information, or future events.

*Source of Information: https://www.wiseguvreports.com/reports/mineral-exploration-services-market

https://coal.gov.in/maior-statistics/coal-lignite-resource

https://mines.gov.in/webportal/content/national-critical-mineral-mission

https://www.mines.gov.in/admin/download/685a87fl26d2bl750763505.pdf

https://mines.gov.in/admin/storage/ckeditor/24 pages desktop 1752835317.pdf

https://www.coal.gov.in/whats-new

https://financialservices.gov.in/eclgs

https://www.dghindia.gov.in/admin/storage/bid documents/file/SFAhHi06ys3mIMT2xfyv3zKDUiRU1cHy4EKx80Hf.p df

By Order of the Board

For South West Pinnacle Exploration Limited

Sd/-

Vikas Jain

Chairman & Managing Director

DIN: 00049217