EQ RESOURCES LIMITED — Capital/Financing Update 2012

Aug 29, 2012

==> picture [136 x 91] intentionally omitted <==

CARBINE TUNGSTEN ANNOUNCES UPGRADE TO MT CARBINE RESOURCE ESTIMATE

The Board of directors of Carbine Tungsten Limited (ASX:CNQ) is pleased to announce that in addition to the findings of its feasibility study (ASX announcement 28 August 2012), as a culmination of the recent investigations included in their feasibility study, the Company announces a major upgrade to the resource estimate for the Mt Carbine tungsten deposit. The resource estimate was previously announced to be a 47 million tonnes Inferred Resource at an average grade of 0.13% WO3, using a cut off of 0.05% WO3. The Company advises of an upgrade to the Status of the resource as shown in Table 1.

Table 1. Resource estimate Mt Carbine Tungsten deposit, using cut-off grade of 0.05% WO3.

Indicated Mineral Resource	Inferred Resource
18.1 million Tonnes at 0.14% WO3.	29.3 million tonnes at 0.12 % WO3

Within this resource estimate and due to the completion of a number of studies for the purpose of the feasibility study, Carbine Tungsten Limited also considers that at a mining production rate of 3Mtpa, a cut-off of 0.05% WO3 and a price of US$290 per mtu, the Indicated Mineral Resource is also a Probable Ore Reserve (18 million tonnes at 0.14% WO3).

The resource estimate upgrade is based on a number of key components:

• Historical records from the mine operation between 1974 and 1987, including recent sampling, logging and assaying of the complete set of historical drill core from 49 drill holes that formed the basis for that mining operation.

• Previous successful open pit extraction of ore that was only terminated following a global collapse in tungsten price.

• Previous ore sorting and milling records.

• A detailed understanding and experience of the previous mine operation by the Competent Person.

• An independent geostatistical study of the project in 1993-94.

• The recent independent geostatistical analysis and resource estimates already announced (CNQ ASX announcement June 2012).

• Reviews of milling and concentrate production carried out at the end of the previous mining operation.

• The drilling and assaying of an additional 14 cored holes in the immediate environs of the open pit,

• Geometallurgical investigations carried out by Carbine Tungsten including the results from the tailings re-treatment project. The latter played an important part

Carbine Tungsten Limited

ACN 115 009 106

Cairns Office : 50 Scott Street, Bungalow, Cairns QLD 4870, Tel: +61 7 4052 2400, Fax: +61 7 4052 2444

==> picture [73 x 49] intentionally omitted <==

in the geometallurgical assessment of the economic potential of the Mt Carbine tungsten deposit and low grade stockpiles, as it has established that overall mill recovery of WO3 can be increased by 37% from the historical 60% average recovery to be approximately 82% average recovery by the additional recovery of tungsten that previously was lost to fines/slimes.

• Sampling, assaying and X-ray ore sorter trials of the low grade stockpile, optical ore sorter reject stockpile and Run of Mine stockpile (CNQ ASX announcement March 2011).

• Pit optimisation studies of the current resource as part of the Feasibility Study.

• Confidence in the grade estimate and the amenability to open pit mining is strongly reinforced by the fact that the previous mine extracted 13.5 million tonnes of ore from the open pit to produce 14,800 tonnes of high grade wolframite (72% WO3) and scheelite (68% WO3) products (in essence a 13.5 million tonne bulk sample). This “bulk sample” demonstrated beyond doubt that the deposit on a very large scale is reasonably homogeneous although with well understood higher grade zones, and given the approach to processing (ore sorting and gravity separation) reliably and predictably is able to produce a saleable product on a consistent basis over many years of production. Further, the drilling information on which this “bulk sample” was based which commenced in 1974 has been augmented by the further recent drilling program which confirms that the mineralisation is still consistent in the directions of the proposed open pit extension.

Carbine Tungsten Limited

A James Morgan

Managing Director

30 August 2012

General Enquiries

Contact Jim Morgan 0487 144 834.

The information in this announcement that relates to Exploration Results and Mineral Resources and Ore Reserves is based on information compiled by Dr Andrew White, who is a Fellow of the Australian Institute of Geoscientists and a Director of Carbine Tungsten Limited. Dr White has sufficient experience relevant to the style of mineralisation, mining and processing the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr White consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Page 2