EQ RESOURCES LIMITED — Capital/Financing Update 2012

Feb 13, 2012

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14 February 2012

Company Announcements Office Australian Securities Exchange

Non-Renounceable, One-for-Five Rights Issue

Further to the announcements on 13 and 14 February 2012 by Carbine Tungsten Limited (the Company) regarding a non-renounceable Rights Issue, the Company confirms that the following letter informing shareholders of the Rights Issue will be despatched to them tomorrow. It is noted that the date for the despatch of the Offer Document, together with an Entitlement and Acceptance Form, has been brought forward to 27 February from 28 February 2012.

Carbine Tungsten Limited

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Robert Waring Company Secretary

Carbine Tungsten Limited ACN 115 009 106 Registered Office: Suite 505, Level 5, 35 Lime Street, Sydney NSW 2000, Tel: +61 2 9279 1252, Fax: +61 2 9279 2727 Cairns Office: 50 Scott Street, Bungalow Queensland 4870, Tel: +61 7 4052 2400, Fax: +61 7 4052 2444

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15 February 2012

Dear Carbine Tungsten shareholder

NON-RENOUNCEABLE RIGHTS ISSUE

This notice is provided to inform you that on 14 February 2012 Carbine Tungsten Limited (Carbine Tungsten, CNQ or the Company) lodged an Offer Document with the Australian Securities Exchange (ASX) in respect of a pro-rata, non-renounceable rights issue of shares at an issue price of 9 cents per share (Rights Issue), to be issued on the basis of one New Share for every five existing shares held.

A copy of the Offer Document together with an Entitlement and Acceptance Form will be mailed to eligible shareholders on 27 February 2012 .

Under the Rights Issue, shareholders with a registered address in Australia, New Zealand or Singapore (“Eligible Shareholders”) are being invited to subscribe for one New Share for every five existing shares held on the Record Date being 22 February 2012.

The Rights Issue will raise up to $3.88 million before costs. The Issue is not underwritten. Eligible Shareholders will have the opportunity to apply for additional New Shares and Directors reserve the right, at their discretion, to place any New Shares not taken up by Eligible Shareholders.

The proceeds of the Rights Issue will primarily be applied to the advancement of the Company’s Mt Carbine Tungsten Project. The additional working capital will ensure the successful commissioning of the tailings re-treatment plant and continuation of the feasibility study for the second stage of development, namely the processing of approximately 12 million tonnes of previously-mined stockpiled material. Construction of the tailings re-treatment plant is nearing completion, and a programme for commissioning and production ramp-up is about to be implemented. The Directors see no further obstacles that might prevent commissioning and bringing the plant into production from the end of February through March 2012. The first revenues are now budgeted for receipt towards the end of May 2012, after allowing for time to deliver product to the customer.

Eligible Shareholders’ entitlements pursuant to this Rights Issue are non-renounceable and accordingly, Eligible Shareholders may:

• take up their Rights in full or in part;

• do nothing, in which case their Rights will lapse; or

• take up their Rights in full and apply for additional New Shares.

No action is required to be taken at this stage . If you intend to take up your Rights in full or in part, or apply for additional New Shares, then you should take appropriate action when you receive a copy of the Offer Document together with an Entitlement and Acceptance Form, which will be mailed to Eligible Shareholders on 27 February 2012 .

Carbine Tungsten Limited ACN 115 009 106 Registered Office: Suite 505, Level 5, 35 Lime Street, Sydney NSW 2000, Tel: +61 2 9279 1252, Fax: +61 2 9279 2727 Cairns Office: 50 Scott Street, Bungalow Queensland 4870, Tel: +61 7 4052 2400, Fax: +61 7 4052 2444

Carbine Tungsten Limited

Rights Issue

Shareholders with a registered address outside of Australia, New Zealand or Singapore are not eligible to participate in the Rights Issue.

Further details of the courses of action available to Eligible Shareholders are set out in the Offer Document.

Key information and indicative dates in respect of the Rights Issue are as follows:

Offer Document was lodged with ASX	14 February 2012
Existing Shares are quoted on an “Ex” basis	16 February 2012
Record Date(date for determining entitlements of Eligible Shareholders to participate in the Offer)	22 February 2012
Offer Document to be Despatched to Eligible Shareholders(expected date of despatch of Offer Document, and Entitlement and Acceptance Form)	27 February 2012
Opening Date	28 February 2012
Closing Date	13 March 2012
Securities quoted on a deferred settlement basis	14 March 2012
Company notifies ASX of under subscriptions / shortfall (if any)	16 March 2012
Allotment Date and deferred settlement trading ends	21 March 2012
Anticipated despatch date of holding statements for New Shares	21 March 2012
Trading commences for New Shares on ASX	22 March 2012

This timetable is indicative only. The Company reserves the right to vary the above dates subject to the ASX Listing Rules.

Further details on the Rights Issue are contained in the Offer Document. A copy of the Rights Issue Offer Document will be available for review on the ASX website www.asx.com.au and on the Company’s website www.carbinetungsten.com.au.

Carbine Tungsten shareholders should consult their stockbroker, solicitor, accountant or other financial adviser if they are in any doubt as to the Rights Issue.

Carbine Tungsten’s Board welcomes you to participate further in the continued development and growth of the Company by subscribing for these New Shares. If you have any queries, please contact the undersigned.

Yours sincerely

Carbine Tungsten Limited

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Robert J Waring Company Secretary

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