EQ RESOURCES LIMITED — Capital/Financing Update 2012

Jul 4, 2012

==> picture [128 x 86] intentionally omitted <==

First Shipment of Concentrate from Mt Carbine Tailings Recovery Plant Initiates Cash Inflows for Carbine Tungsten Limited

The Board of Directors of Carbine Tungsten Limited (ASX Code: CNQ) is pleased to announce that its first consignment of bulk tungsten concentrate product was despatched to Brisbane for shipment from its tailings recovery facility on 28 June 2012. Payment terms are 85% from bill of lading with the estimated date for sailing being 8 July 2012. The 15% balance of payment is subject to final adjustment once the shipment is received and assayed by the end-use customer. The tailings recovery project is continuing in its production ramp-up phase.

The 1,134 metric tonne units (mtu) of tungsten (WO3) have undergone inspection by representatives of CNQ’s major customer Mitsubishi Corporation Unimetals Ltd (MCU). The grade of concentrate produced has greatly exceeded the anticipated W03 content expected from the Tailings Recovery Feasibility Study.

The successful confirmation of the tailings recovery process and the better than predicted recovery results have significant positive financial implications for the Company’s hard rock project financial model.

MCU and a number of other key potential project participants are scheduled to visit Mt Carbine at the end of July 2012 to review the Company’s hard rock feasibility study and discuss funding options for the hard rock project phase.

The Company intends to commence construction activities on its hard rock project in early 2013 and to be producing 250,000 mtu per annum of high-grade tungsten concentrate commencing in 2014.

==> picture [247 x 204] intentionally omitted <==

----- Start of picture text ----- Mt Carbine Tailings Recovery Facility----- End of picture text -----

==> picture [246 x 203] intentionally omitted <==

----- Start of picture text ----- Part consignment en-route to Brisbane----- End of picture text -----

Carbine Tungsten Limited

A James Morgan Managing Director

General Enquiries

Contact Jim Morgan on 0487 144 834

Carbine Tungsten Limited ACN 115 009 106 50 Scott Street, Bungalow, Cairns QLD 4870 - PO Box 1040, Bungalow, Cairns QLD 4870 Telephone: +61 (0)7 4052 2400 - Facsimile: +61 (0)7 4052 2444 www.carbinetungsten.com.au