Cue Energy Resources Limited Annual Report 2024

Cue Energy Resources Limited Notes to the financial statements 30 June 2024 48 Note 13. Equity - reserves Movements in reserves Movements in each class of reserve during the current and previous financial year are set out below: Foreign currency reserve Options reserve General reserve Total Consolidated $'000 $'000 $'000 $'000 Balance at 1 July 2022 581 551 - 1,132 Foreign currency translation 947 - - 947 Share-based payments - 96 - 96 Transfer from accumulated losses - - 4,218 4,218 Balance at 30 June 2023 1,528 647 4,218 6,393 Foreign currency translation 388 - - 388 Share-based payments - (27) - (27) Transfer from accumulated losses - - 61,440 61,440 Transfer upon exercise of options - (127) - (127) Dividends declared - - (13,967) (13,967) Balance at 30 June 2024 1,916 493 51,691 54,100 Foreign currency reserve The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. Options reserve The reserve is used to recognise the value of equity benefits provided to employees under the Employee Share Option Plan. General reserve The reserve is used to quarantine the Company's standalone accumulated profits generated in a reporting period. Note 14. Financial instruments The Consolidated Entity’s principal financial instruments comprise receivables, payables, cash and cash equivalents (inclusive of restricted balances) and borrowings. The Consolidated Entity manages its exposure to key financial risks, including interest rate and currency risk through management’s regular assessment of financial risks. The objective of the assessment is to support the delivery of the Consolidated Entity’s financial targets whilst protecting future financial security. The main risks arising from the Consolidated Entity’s financial instruments are interest rate risk, foreign currency risk, commodity price risk, credit risk and liquidity risk. The Consolidated Entity uses different methods to measure and manage different types of risk to which it is exposed. These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest rates, foreign exchange and commodity prices. These risks are summarised below. Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have established an appropriate liquidity risk management framework for the management of the Consolidated Entity’s short, medium and long-term funding and liquidity management requirements. The Board reviews and agrees management’s assessment for managing each of the risks identified below. 62 Cue Energy Resources Limited Annual Report 2024

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