EQ RESOURCES LIMITED — Capital/Financing Update 2024

Nov 11, 2024

resourcing the new economy for a better tomorrow

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12 November 2024

TUNGSTEN CONCENTRATE TO COMMENCE FOR ELMET TECHNOLOGIES AS EQR’s BARRUECOPARDO OPERATION ACHIEVES MONTHLY PRODUCTION RECORD

EQ Resources Ltd is a global tungsten producer with mining activities in Australia and Spain.

Highlights:

• EQR has executed the definitive supply agreement with leading US-owned and fully integrated tungsten manufacturer, Elmet Technologies LLC, for a 5-year tungsten concentrate offtake arrangement valued at approx. A$30 million.

• EQR and Elmet are jointly working on US Government funding opportunities linked to the US Defence Industrial Base Consortium (DIBC) to enhance critical materials supply and progress further downstream integration of EQR’s tungsten concentrate into the US tungsten supply chain.

• EQR’s supply commitments are supported by a continued production expansion at its Barruecopardo Operations, which in October 2024, recorded a further monthly production record of 11,007 mtu* (up 9% from September production of 10,136 mtu, and up 22% from August production of 9,018 mtu).

• Recovery rates – as a key performance indicator for EQR’s turnaround program at the Barruecopardo Operations – have improved consistently over recent months, from 55.6% in August to 61.8% in October; the operations are targeting a long-term recovery rate of >70%.

• Scheelite (tungsten) concentrate from EQR’s Barruecopardo Operations will be the primary source of tungsten concentrate under the Elmet offtake contract.

mtu = 10kg WO3

EQR / Elmet Long-Term Concentrate Supply Agreement

EQ Resources Limited (EQR or "the Company") is pleased to announce it has executed the definitive supply agreement with leading US-owned and fully integrated tungsten manufacturer, Elmet Technologies LLC, for a 5-year tungsten concentrate offtake arrangement valued at approx. A$30 million. EQR announced the basic framework of the Strategic Collaboration Agreement (Agreement) between the Company and Elmet on 2 September 2024 (see ASX Announcement: ‘EQR and Elmet Technologies agree to a Strategic Collaboration and long-term Offtake Contract’).

The Agreement provides the parties a pathway to jointly work on US Government funding opportunities, with the aim to enhance critical materials supply and further downstream integration of EQR’s tungsten concentrate into the US tungsten supply chain. The parties have submitted a joint white paper under the US DIBC (Defence Industrial Base Consortium) grant program, which is open to industry partners in Australia, Canada and the UK. An outcome of the application is pending.

Barruecopardo Operations October Production Record

EQR announces that its tungsten operation at Barruecopardo has achieved a further monthly production record for the month of October 2024. The operations achieved production of 11,007 mtu, up 9% compared to the prior record of 10,136 mtu set in September 2024, and up 22% (9,018 mtu) as compared to August 2024.

PRINCIPAL PLACE OF BUSINESS: 6888 Mulligan Highway, Mt Carbine Qld 4871 POSTAL ADDRESS: PO Box 1496, Mareeba Qld 4880 ABN: 77 115 009 106 (ASX: EQR) T: (07) 4094 3072 | F: (07) 4094 3036 | W: eqresources.com.au

resourcing the new economy for a better tomorrow

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The increases in production are primarily driven by the continuously improving recovery rates in the gravity plant. The enhancements at the mine are multi-faceted and stem from an improvement program related to existing equipment and modifications to the processing circuit with newly installed equipment. Since its acquisition by EQR in January 2024, the mine has realised a steady increase in production and recovery rates.

Commenting on the signing of the definitive supply agreement with Elmet and the monthly production record at Barruecopardo, EQR’s Chief Executive Officer, Kevin MacNeill, said: “Formalising arrangements with USowned Elmet Technologies is a key strategic pillar in the path forward for EQR as we continue to build our reputation as a reliable western producer of tungsten concentrate to the world. Critical mineral security continues to be a top priority globally as the world navigates geopolitical events and a shortage of quality critical mineral deposits. This is why EQR is joined by its key strategic partners and continues to invest in its high-quality tungsten operations in Spain and Australia.”

“It is extremely pleasing to see our operations in Spain continue to outperform and produce new production and recovery records in October on the back of significant improvement works in recent months. The outcomes of the improvement plans are testament to the dedication of the quality team and management we have in place at the operation.”

Released on authority of the Board by:

Kevin MacNeill Chief Executive Officer

Further Enquiries:

Peter Taylor Investor Relations 0412 036 231 peter@nwrcommunications.com.au

About the Company

EQ Resources Limited is a leading tungsten mining company dedicated to sustainable mining and processing practices. The Company is listed on the Australian Securities Exchange, with a focus on expanding its worldclass tungsten assets at Mt Carbine in North Queensland (Australia) and at Barruecopardo in the Salamanca Province (Spain). The Company leverages advanced minerals processing technology and unexploited resources across multiple jurisdictions, with the aim of being a globally leading supplier of the critical mineral, tungsten. While the Company also holds gold exploration licences in New South Wales (Australia), it aims to create shareholder value through the exploration and development of its current project portfolio whilst continuing to evaluate corporate and exploration opportunities within the new economy and critical minerals sector globally.

Forward-looking Statements

This announcement may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this announcement include risks associated with planned production, including the ability of the Company to achieve its targeted production outline due to regulatory, technical or economic factors. In addition, there are risks associated with estimates of resources, and there is no guarantee that a resource will have demonstrated economic viability as necessary to be classified as a reserve. There is no guarantee that additional exploration work will result in significant increases to resource estimates. Neither the Australian Securities Exchange nor its Regulation Services Provider (as that term is defined in policies of the Australian Securities Exchange) accepts responsibility for the adequacy or accuracy of this announcement.

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