EQ RESOURCES LIMITED — AGM Information 2021

Nov 24, 2021

==> picture [178 x 157] intentionally omitted <==

==> picture [638 x 338] intentionally omitted <==

EQ RESOURCES LTD AGM – Project Update

25 November 2021

Disclaimer

Competent Person's Statement

==> picture [110 x 75] intentionally omitted <==

• The information in this presentation relating to the Mineral Resource summary is extracted from the Company's Annual Report 2021, made available through the Company’s website www.eqresources.com.au/. The Company confirms that it is not aware of any new information that materially affects the information included in the corresponding market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

General Disclaimer

• The material contained in this document is a presentation of general information about the Company's activities current as at the date of this presentation. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate.

• This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of the Company. These forward-looking statements are based on estimates, projections and assumptions made by the Company about circumstances and events that have not yet taken place. Although the Company believes the forwardlooking statements to be reasonable, they are not certain. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond the Company's control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results).

• The Company makes no representation or warranty as to the accuracy of any forward-looking statements in this document and undue reliance should not be placed upon such statements.

• Forward-looking statements may be identified by words such as “aim”, “anticipate”, “assume”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “should”, “will”, or “would” or the negative of such terms or other similar expressions that are predictions of or otherwise indicate future events or trends. The forward-looking statements included in this document speak only as of the date of this document. The Company does not intend to update the forward-looking statements in this document in the future.

2

==> picture [110 x 75] intentionally omitted <==

3

Corporate Snapshot

Value Proposition

• Australia’s only primary producer of tungsten

• High-grade resource (expandable)

• Multiple revenue streams

• Low-cost expansion

==> picture [110 x 75] intentionally omitted <==

	22 November 2021
Share Price	A$ 0.068
Issued Shares	1,344m
Market Capitalization	A$ 93,24m
Shareholding: - Top 20 holders	57.88%

• Experienced Board & Leadership Team

Board & Leadership Team

Oliver Kleinhempel German Non-executive Chairman Stephen Layton Australian Non-executive Director Zhui Pei Yeo Singaporean Non-executive Director Richard Morrow Australian Non-executive Director Kevin MacNeill Canadian Chief Executive Officer Tony Bainbridge Australian Chief Geologist

==> picture [446 x 174] intentionally omitted <==

4

Board & Leadership Team

Diverse and Experienced Board & Leadership Team

Oliver Kleinhempel - Non-executive Chairman

Stephen Layton - Non-executive Director

==> picture [77 x 99] intentionally omitted <==

==> picture [77 x 100] intentionally omitted <==

• Appointed Non-executive Director 14 November 2017

• Appointed Non-executive Director 12 August 2019 and Chair on 24 April 2020

• +35 years’ experience in equity capital markets in UK and Australia

• Executive management experience in project development, finance and commodity trading sectors

  • Experience in both principal and director roles with a depth of knowledge in capital raisings, ASX listings and corporate advisory matters

• Corporate experience includes Outotec, Ferrostaal Group and CRONIMET

• Currently an executive director of CRONIMET Holding GmbH

• Currently non-executive director of Mithril Resources Limited, and previously a nonexecutive director on New Age Exploration Limited (both ASX listed)

Kevin MacNeill - Chief Executive Officer

Richard Morrow - Non-Executive Director

==> picture [87 x 101] intentionally omitted <==

Appointed Interim-CEO & Senior Technical Advisor in May 2019 and permanent CEO in January 2020

• Appointed as Non-Executive Director on 16 March 2021

==> picture [74 x 99] intentionally omitted <==

• +30 years' experience as a sharebroker in Melbourne and in London, with a particular interest in the resources space. A long-serving Chairman of Melbourne Mining Club , Australia’s foremost networking organisation for the Australian resources sector.

+33-year career dedicated to developing and leading mining projects globally

• •

• Expertise in project development, mineral processing, specialty

processing applications & mining waste processing

• Richard’s investment experience includes a role as director of Lowell Resources Fund Management, manager of the ASXlisted Lowell Resources Fund. He is a Fellow of the AusIMM and an honorary member of the AusIMM Investment Advisory Committee.

• Held Executive appointments as President of Etruscan Diamonds (part of TSX-listed Etruscan Resources) & founded Specialized Metallurgical Projects Pty Ltd

• Currently Non-Executive director of Zimbabwe Lithium, a company developing the Kamativi Lithium Tailings Project

==> picture [110 x 75] intentionally omitted <==

Zhui Pei Yeo - Non-executive Director

==> picture [82 x 99] intentionally omitted <==

• Appointed Non-executive Director 12 August 2019

• Has held executive, management and supervisory roles with a range of experience from project planning to resource management

• Has been working at a leading system integrator in the telecommunications industry in South-East Asia

• Currently an executive director of a steel-product manufacturer

Tony Bainbridge - Chief Geologist

• EQR’s Chief Geologist, focusing on developing Mt Carbine’s underground resource to define & extract ‘King-Vein’ style mineralisation

• • Experience in tungsten projects in South Korea & Africa – including building, owning and managing a tungsten mining operation in South Korea

==> picture [81 x 102] intentionally omitted <==

• Expertise include tungsten, gold, resource definition, mine exploration, feasibility studies, mine development, mine production efficiencies, and dayto-day operations

• Currently director of Asia Intercept Mining Ltd and AMB Exploration Pty Ltd

5

Highlights of Last 12-Months

==> picture [110 x 75] intentionally omitted <==

• Drilling under the pit (defined a high-grade resource), setting the scene for Bankable Feasibility Study work

• Continuously enhanced HSE standard at site, implemented training programs

• Completed large quarry contract, promotion with overseas customers

• Completed grant funded METS Ignited XRT project in collaboration with valuable partners

• Upgraded and stabilized gravity plant production (improving recoveries and feed grade)

• Initiatives around energy efficiency and critical minerals traceability

• Coordinating with other Australian tungsten developers on suitable routes for down-streaming and value-adding (strong customer engagement)

6

Our Values & Culture

Act Safe. Feel Safe.

Act safe at work. Care and respect each other. Feel safe to be yourself.

Embrace Difference

Diversity of thinking, skills and background creates value and drives innovation.

Tread Lightly

Embed resource efficiency to minimise environmental footprint and deliver positive societal impact.

Dig Deep

Go one better. Strive to continuously learn and improve. Challenge the status quo.

Buddy Up

Collaboration is key to realising shared value.

Lead with Integrity

Have courage to do the right thing. Be accountable.

==> picture [110 x 75] intentionally omitted <==

==> picture [363 x 393] intentionally omitted <==

7

==> picture [110 x 75] intentionally omitted <==

Corporate ESG Strategy Development

==> picture [460 x 459] intentionally omitted <==

ESG Stakeholder Sentiments

EQR recently engaged JukesTodd on an ESG insights piece to better unpack our ESG position to assist in developing our ESG Strategy further.

Sentiments Survey:

A Stakeholder ESG Sentiment survey was disseminated to a range of stakeholders. The purpose of the survey was to gather information with regards to ESG themes they feel are of material importance to EQR. Questions were broken into 12 themes aligning to the 3 ESG pillars.

8

Stakeholder ESG Sentiments

ESG Organisational Performance

Stakeholders were asked to rate whether the organisation was perceived to be leading or lagging across each of the 12 ESG themes. They were asked to do this for current state, as well as for where they felt the Organisation should be positioned / aiming to be.

==> picture [119 x 64] intentionally omitted <==

----- Start of picture text -----

Current
Aspiration
Materiality 1 2 3
----- End of picture text -----

==> picture [110 x 75] intentionally omitted <==

This information has been overlayed with the top 3 themes considered to be most material across the stakeholder groups.

==> picture [425 x 49] intentionally omitted <==

Organisational Performance Scale

Lagging - Organisation is not investing in this category. Meets compliance obligation but nothing additional.

Leading - Substantial investment in this category. Significantly advanced compared to industry average

==> picture [406 x 132] intentionally omitted <==

----- Start of picture text -----

Limited; 1
Respondent Understanding of ESG
Strong; 4
When rating their own understanding
Moderate; 4
of ESG, most stakeholders felt they
had moderate to strong knowledge of
what ESG is.
Good; 10
.
----- End of picture text -----

Limited Moderate Good Strong

9

Tungsten Industry Fundamentals & Outlook

• Unique properties, difficult to substitute

• Steady demand growth of 1.5% CAGR projected (2021-2030)

1

• High supply concentration (5 mines account for 23% of global output)

• EQR investigating value-add product

==> picture [186 x 198] intentionally omitted <==

----- Start of picture text -----

3
----- End of picture text -----

==> picture [373 x 204] intentionally omitted <==

==> picture [110 x 75] intentionally omitted <==

China mine output declining

2

1

20kt W of new 2 supply needed Solid floor 3

Solid floor pricing

End Use by Region (2019)

==> picture [195 x 184] intentionally omitted <==

Source: ITIA (2019); Roskill – ‘The data and information provided by Roskill should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by Roskill in writing. To the fullest extent permitted by law, Roskill accepts no responsibility for your use of this data and information’.

10

==> picture [110 x 75] intentionally omitted <==

11

Mt Carbine Mineral Resource Development

High-Grade / Well-Defined / More To Come

==> picture [625 x 348] intentionally omitted <==

==> picture [110 x 75] intentionally omitted <==

Completed

• Stage 1 – Define Resources for Open Cut Mine

• Detailed Drilling allowed high grade zones to be linked, around the Andy White pit

• Independent Resource Statement released on 23 September 2021

• • First open pit design to include 14.4% of the known resources

2022

Stage 2 – Drill & Expand

• Drill out further shallow open cut resources

• Convert 6Mt@0.59%WO3 Inferred to Indicated ; So far conversion has increased tonnes & grade

• Drill Exploration Targets - Dazzler & Daisy

For further details refer to ASX Release on the 23[rd] of September 2021: Mineral Resource Update Drives Mt Carbine BFS Optimization

12

Schematic of Planned Pit

==> picture [391 x 299] intentionally omitted <==

----- Start of picture text -----

Underground Resources
Planned Decline
Grid S
3 Year Pit Reserves
----- End of picture text -----

Perspective View showing

• Planned Open Cut Extension

• Color Coded Ore Zones in the pit

• Highlights additional resources outside planned pit, a lot of this ore will be accessed from existing decline

Stage 1 (under Bankable Feasibility Study)

• Preferred Pit - 15Mt Pit Extension contains 1.1Mt@0.83%WO3

• 14.4% of known resources

Stage 2 (planned Scoping Study)

• Long Life Underground Mine

• • 85.6% of known resources

Current Pit

==> picture [110 x 75] intentionally omitted <==

Cut-Away Section thru the Planned Pit shows

• Existing & new pit extension

• Bounding South Wall Fault

• Ore is open to the West & North and to Depth

• Pit extends on low side not touching the high wall

13

Brownfield Exploration

• 4 Key Areas to investigate within the Mining License

• Completing Detailed Geophysics (Blue Zone) & Soil Program

==> picture [589 x 385] intentionally omitted <==

----- Start of picture text -----

Legend Pit Resources Iron Duke Zone
BFS being completed Indicated 1.0Mt @ 0.68% WO 3
Granite – Progenitor Approx. 1.1Mt @ 0.83% WO 3 Inferred 5.8Mt @ 0.59% WO 3
Metavolcanics
Metasediments
Arenites Exploration Target Area
Underway
• 360 line Km Ground Geophysics
Tungsten workings • 4,500 Soil Samples
Surface Tungsten Zone
4
1
3
2 2
500m
TN
----- End of picture text -----

==> picture [110 x 75] intentionally omitted <==

Development Targets

1. Iron Duke upgrade Inferred Resource of 5.81Mt@0.59%WO3 to Indicated Resource.

2. Investigate Strike & Depth Extents: Veins extend for 1km westwards & depth remains open

3. Daisy & True Blue Zones – can trace back to Iron Duke

4. McDonalds & Red Cap – substantial workings with good tungsten

14

Greenfield Exploration

EQR has 115km[2] of very prospective ground containing 18 tungsten showings & 12 tin showings, including the historic Mt Holmes Tin Mine.

==> picture [110 x 75] intentionally omitted <==

==> picture [299 x 412] intentionally omitted <==

==> picture [262 x 403] intentionally omitted <==

----- Start of picture text -----

Mossman Granite
Tungsten Prospects
Tin Prospects
Gold Prospects
----- End of picture text -----

Current Work Programs

• Completed 360 line kilometers of close spaced ground magnetics

• 5,000 soil samples, assaying underway

• Collaborated with QLD Geological Survey to complete Core Alteration Scans (Hylogging) on the best 11 intersections of core

• Collaborated with QLD University to complete a micro-XRF alteration study to understand mineralization

15

==> picture [960 x 467] intentionally omitted <==

----- Start of picture text -----

Mt Carbine Crushing &
Screening Operation
Operations &
Expansion Program
----- End of picture text -----

16

Health & Safety Performance

Pro-active HSE culture through upskilling of employees

==> picture [395 x 219] intentionally omitted <==

• Pro-active indicators of risk assessments, JSEAs, Take-5, safety permits, drug testing, safety meetings, inspections, pre-starts, etc has been steadily increasing

• Strong focus on training and upskilling of employees through on-site trainer and specific courses

==> picture [110 x 75] intentionally omitted <==

==> picture [412 x 192] intentionally omitted <==

• No new lost time injuries since Q4 2020 FY

• Actively working to promote a Think First, pro-active safety culture

• Conducted review of Safety Health Management System and have an action plan to continue positive improvement – will have a positive effect on overall lead indicators

17

==> picture [110 x 75] intentionally omitted <==

Production – Performance, Improvements, Trends Extensive test work resulted in improved recoveries, XRT sorter ramp up improved plant feed grade

==> picture [363 x 201] intentionally omitted <==

==> picture [369 x 201] intentionally omitted <==

==> picture [369 x 200] intentionally omitted <==

==> picture [363 x 200] intentionally omitted <==

18

Mt Carbine Quarry Update

Significant value-add in wider ESG context

==> picture [178 x 178] intentionally omitted <==

----- Start of picture text -----

Mt Carbine
Quarry
Development
----- End of picture text -----

==> picture [93 x 93] intentionally omitted <==

Historic Stockpiles – new uses

• New markets

• Sales of Gravity Plant Rejects

• Concrete aggregates

==> picture [93 x 93] intentionally omitted <==

Site Assessment

• Stockpiles low OPEX

• Equipment review

• Personnel requirement

==> picture [110 x 75] intentionally omitted <==

==> picture [94 x 94] intentionally omitted <==

Growth Planning

• Value-Add Product

• Leverage Government Infrastructure Plans

• Target off-shore contracts

==> picture [94 x 93] intentionally omitted <==

Beneficial Reuse

• XRT and Gravity Plant Waste used as Quarry Materials

• • 18 Quarry Products

==> picture [94 x 93] intentionally omitted <==

Developing New Relationships

• Working as a wholesaler for regional suppliers - maximises margin on low-value products

==> picture [93 x 93] intentionally omitted <==

Equipment Modernisation

==> picture [93 x 93] intentionally omitted <==

Completed Large Scale Contracts

• Proves ability to deliver high quality products at large scale

• E.g. Road Development FNQ / Boat Ramp

• New Crushers & Modifications

• Electrical Upgrade

• New Earth Moving Fleet

19

==> picture [927 x 501] intentionally omitted <==

----- Start of picture text -----

Development Timeline
Phased approach for early cash flow
Early Works
Funding & Internal
UG Environmental Facilitation Doc Engineering Study Bankable Feasibility Secure Expansion Full Scale
Approval Approval Complete Complete Funding & Drawdown Operation
  
2020 2021 2022
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Feasibility – Mineralised Stockpile Secure Funding
1 MTPA Plant Construction
& Open Pit Facility
Gravity Plant Early Works
Upgrade to Upgrade – Crushing Restart -
1,000tpd Plant OC Mining
Processing of Mineralised Stockpile – increasing with plant capacities
20
----- End of picture text -----

Target Production Ramp-Up

BFS scope targets significant production uplift

==> picture [116 x 55] intentionally omitted <==

----- Start of picture text -----

OC Mine opening
subject to positive
outcome of feasibility
work & permitting
----- End of picture text -----

==> picture [708 x 364] intentionally omitted <==

----- Start of picture text -----

Tonnes installed subject to positive
capacity outcome of feasibility
work & permitting
3000 - 5000
XRT Sorter Upgrade
subject to Early Works
Production Guidance
upgrades
2021
with current plant 900 - 1200
arrangement & METS
Ignited pilot program
240 - 360
----- End of picture text -----*

Next 24-36 months

==> picture [90 x 10] intentionally omitted <==

----- Start of picture text -----

Next 12 months
----- End of picture text -----

Current

==> picture [110 x 75] intentionally omitted <==

*Basis 50% WO3 concentrate

**The company is currently compiling independent feasibility reports for (1) the XRT sorter expansion (based on METS program results) and (2) an OC/UG mine development planning

21

‘Early Works’ Implementation Currently On-Time and On-Budget

• Upgrade of power supply line and new substation

• Addition of 2[nd] Tomra XRT Sorter

• Wet screening circuit at primary crushing station

• Upgrade of conveying systems to cope with higher throughput

==> picture [406 x 240] intentionally omitted <==

----- Start of picture text -----

New power line
----- End of picture text -----

==> picture [110 x 75] intentionally omitted <==

==> picture [258 x 160] intentionally omitted <==

==> picture [321 x 241] intentionally omitted <==

----- Start of picture text -----

Sandvik wet screen
----- End of picture text -----

22

‘Early Works’ – Phase 1 Expansion

==> picture [110 x 75] intentionally omitted <==

==> picture [610 x 389] intentionally omitted <==

23

Phase 2 – Expanded Crushing & XRT Sorting Circuit

• In line with 1MTPA extraction permit

• Allowing for combined feed material from stockpile and open pit

==> picture [110 x 75] intentionally omitted <==

==> picture [867 x 359] intentionally omitted <==

----- Start of picture text -----

2x XRT Sorters
Crushing &
Screening
Circuit
2x XRT
Sorters
Crushing & 2x XRT
Screening Sorters
Circuit
Crushing &
Screening
Circuit
----- End of picture text -----

24

Priorities of Coming 12-Months

==> picture [110 x 75] intentionally omitted <==

• Phase 1 completed and increase production to 70 to 90tpm tungsten concentrate, becoming profitable

• Financial Close for Phase 2 Expansion (BFS scope)

• Drill Mt Carbine exploration targets and increase open pit optimization tonnage, drill inferred resource to indicated

• Further enhancing HSE standard at site, extending training program for employees

• Amendment to environmental licence to start mining open pit

• Further promote ”green aggregate” products to reduce environmental footprint of regional construction sector

25

==> picture [110 x 75] intentionally omitted <==

EQ Resources aims for a leadership role in the sustainable development of critical minerals projects.

26

==> picture [345 x 171] intentionally omitted <==

THANK YOU

Follow us