EQ RESOURCES LIMITED — Capital/Financing Update 2021

Sep 16, 2021

Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Announcement Summary

Entity name

EQ RESOURCES LIMITED

Date of this announcement

Friday September 17, 2021

The +securities the subject of this notification are: Other

Total number of +securities to be issued/transferred

Total number of ASX +security +securities to be code Security description issued/transferred Issue date New class - code Convertible Notes 6,000,000 17/09/2021 to be confirmed

Refer to next page for full details of the announcement

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Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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Part 1 - Entity and announcement details

1.1 Name of entity

EQ RESOURCES LIMITED

We (the entity named above) give notice of the issue, conversion or payment up of the following unquoted +securities.

1.2 Registered number type

ABN

Registration number

77115009106

1.3 ASX issuer code

EQR

1.4 The announcement is

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New announcement

1.5 Date of this announcement

17/9/2021

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Part 2 - Issue details

2.1 The +securities the subject of this notification are:

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Other

Please specify

6,000,000 Convertible Notes, convertible at $0.065 per Share, convertible or redeemed on 17 Sep 2023

2.2a This notification is given in relation to an issue of +securities in a class which is not quoted on ASX and which:

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does not have an existing ASX security code ("new class")

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Part 3C - number and type of +securities the subject of this notification (new class) where issue has not previously been notified to ASX in an Appendix 3B

New +securities ASX +security code +Security description New class - code to be confirmed Convertible Notes +Security type ISIN code +Convertible debt securities Date the +securities the subject of this notification were issued 17/9/2021

Will all the +securities issued in this class rank equally in all respects from their issue date? Yes

Have you received confirmation from ASX that the terms of the +securities are appropriate and equitable under listing rule 6.1? No

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities being issued.

+Convertible debt securities Details

Type of +security Convertible note or bond +Security currency Face value Interest rate type AUD - Australian Dollar AUD 1.00000000 Fixed rate Frequency of coupon/interest payments per year First interest payment date Annual 17/9/2022 Interest rate per annum Is the interest rate per annum estimated at this time? Yes 7.00 %

If the interest rate per annum is estimated, then what is the date for this information to be announced to the market (if known) 17/9/2022

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Notification of Issue, Conversion or Payment up of Unquoted Equity Securities

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s128F of the Income Tax Assessment Act status applicable to the +security

Not applicable

Is the +security perpetual (i.e. no maturity)? No

Maturity date

17/9/2023

Select other feature(s) applicable to the +security Convertible

Is there a first trigger date on which a right of conversion, redemption, call or put can be exercised (whichever is first)? No

Details of the existing class of +security that will be issued if the securities are converted, transformed or exchanged

Other

Description

6,000,000 Convertible Notes, convertible into Shares at a fixed conversion price of $0.065 per Share, convertible or otherwise redeemed within 24 months from the issue date

Any other information the entity wishes to provide about the +securities the subject of this notification

Please provide any further information needed to understand the circumstances in which you are notifying the issue of these +securities to ASX, including why the issue of the +securities has not been previously announced to the market in an Appendix 3B

.

Issue details

Number of +securities

6,000,000

Were the +securities issued for a cash consideration?

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Yes

In what currency was the cash consideration being What was the issue price per +security? paid? AUD - Australian Dollar AUD 1.00000000

Purpose of the issue

Other

Additional Details

The proceeds are to be applied towards the development of the Mt Carbine project and power upgrade.

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Part 4 - +Securities on issue

Following the issue, conversion or payment up of the +securities the subject of this application, the +securities of the entity will comprise:

(A discrepancy in these figures compared to your own may be due to a matter of timing if there is more than one application for quotation/issuance currently with ASX for processing.)

4.1 Quoted +Securities (Total number of each +class of +securities quoted)

	Total number of
ASX +security code and description	+securities on issue
EQR : ORDINARY FULLY PAID	1,313,354,631
4.2 Unquoted +Securities (Total number of each +class of +securities issued but not quoted on ASX)
	Total number of
ASX +security code and description	+securities on issue
EQRAB : OPTION EXPIRING 05-MAY-2023 EX 4C	2,000,000
EQRAC : OPTION EXPIRING 05-MAY-2023 EX 6C	3,000,000
EQRAJ : OPTION EXPIRING 23-JUN-2024 EX $0.06	8,000,000
EQRAI : OPTION EXPIRING 23-JUN-2024 EX $0.06	12,000,000
EQRAF : OPTION EXPIRING 01-FEB-2024 EX $0.04	2,000,000
EQRAD : OPTION EXPIRING 01-JUL-2023 EX 4C	2,000,000
EQRAE : OPTION EXPIRING 01-JUL-2023 EX 6C	3,000,000
EQRAH : OPTION EXPIRING 25-MAY-2024 EX $0.06	22,000,000
EQRAG : OPTION EXPIRING 19-MAR-2024 EX $0.0432	30,000,000
New class - code to be confirmed : Convertible Notes	6,000,000

4.2 Unquoted +Securities (Total number of each +class of +securities issued but not quoted on ASX)

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Part 5 - Other Listing Rule requirements

5.1 Were the +securities issued under an exception in Listing Rule 7.2 and therefore the issue did not need any security holder approval under Listing Rule 7.1? No

5.2 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? No

5.2b Are any of the +securities being issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

5.2b.1 How many +securities are being issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1?

6,000,000 Convertible Notes

5.2c Are any of the +securities being issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

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