EQ RESOURCES LIMITED - Capital/Financing Update 2024

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4 November 2024

SUMMARY OF CHANGES - EQ RESOURCES LTD RELEASES UPDATED ANNOUNCEMENT OF BARRUECOPARDO ORE RESERVES, WITH NEXT PHASE DRILLING PROGRAM SCHEDULED FOR 2025

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

EQ Resources Ltd (“EQR”) has today released an amended version of its recent Barruecopardo Mine Ore Reserves announcement (“Announcement”) originally released to the Australian Securities Exchange (“ASX”) on 29 October 2024.

The summary of key changes between reports is as follows:

The Announcement has been enhanced to contain disclosure of Ore Reserves in compliance with ASX Listing Rule 5.9.1, including JORC Table Sections 1, 2 and 3 as required under ASX Listing Rule 5.9.2
The Announcement has been enhanced to include cross-references to previous announcements pertaining to the Barruecopardo Mineral Resource Estimates (“MRE”) and improvement plans implemented by EQR.
The Announcement has been enhanced to include statements in compliance with ASX Listing Rule 5.23 pertaining to the Barruecopardo MRE, and inclusion of a category breakdown (JORC 2012 Clause 26) as required.
The Announcement has been enhanced for additional formatting where required.

Released on authority of the Board by:

Kevin MacNeill Chief Executive Officer

Further Enquiries:

Peter Taylor Investor Relations 0412 036 231 [email protected]

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 world-class 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.

EQ RESOURCES LTD RELEASES UPDATED ANNOUNCEMENT OF BARRUECOPARDO ORE RESERVES, WITH NEXT PHASE DRILLING PROGRAM SCHEDULED FOR 2025

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

Highlights:

EQR on 1 February 2024, announced a Mineral Resource Estimate (MRE) for its Barruecopardo Mine in Spain (see ASX Announcement: ‘Saloro Adds 69% of Measured and indicated Resources to EQR’s In-Situ Resources Inventory’).
Total Measured + Indicated + Inferred Resources of 24.4Mt @ 0.20% WO3 (equal to 4.74 million mtu).
EQR has used an optimised pit design, mining plan and economic model with updated market parameters to determine the Ore Reserve Statement for the mine.
Total Proven + Probable Reserves of 10.5Mt @ 0.16% WO3 (equal to 1.64 million mtu).
This Ore Reserve gives EQR at least 7-years open-cut life of mine (“LOM”) base plan by increasing throughput with ongoing XRT ore sorting optimisations and process plant efficiencies.
EQR anticipates that upon completion of the next phase drilling program, scheduled to commence in early 2025, a significant portion of the existing Mineral Resource can be further upgraded to Ore Reserves, and both Resources and Reserves for the Barruecopardo Mine can be further expanded by following the ore body along its strike and at depth.

mtu = 10kg WO3

EQ Resources Limited ("EQR" or "the Company") is pleased to announce the Ore Reserves for its wholly owned Barruecopardo Mine in the Salamanca Province, Spain. EQR completed the acquisition of the Barruecopardo mine on 18 January 2024 ( see ASX Announcement: ‘EQR Completes Acquisition of Saloro S.L.U and $25 Million Placement with Oaktree’ dated 18[th] January 2024 ).

The Ore Reserve Statement attached is the first issue under EQR ownership, using the current 2012 JORC Code Standard.

Since mining recommenced in 2019, the Mineral Resource Estimates / Ore Reserve Statement were completed only on an internal basis, since the project was held by a private company. This Ore Reserve announcement has been completed utilising EQR’s latest assessments of pit design, mine plan expectations and economic parameters for tungsten.

EQ Resources’ CEO, Kevin MacNeill, commented: “The release of the updated tungsten Ore Reserves for our Barruecopardo Mine is a significant development, emphasising the potential for sustained mine life over at least the next seven years. This reflects a base plan which is realised by increasing throughput with ongoing XRT ore sorting optimisations and process plant efficiencies, as we already see first positive effects from our debottlenecking and recovery enhancement programs.”

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With operations and production records recently set at both Barruecopardo and Mt Carbine ( see ASX Announcement ‘EQR hits new production record as China and US trade tensions impact Tungsten market’ ,dated 2 October 2024 ), the Company is confident that this long-term outlook for its Barruecopardo Mine will continue to make EQR a leading supplier of tungsten for many years.

“Located in the Salamanca province of Spain, Barruecopardo has been a key source of tungsten, a critical metal used in various industrial applications including in the defence, aerospace, electronics, and mining industries. This Ore Reserve sets up the company to be a long-term significant producer of tungsten and one of the largest employers in the region”, said Mr MacNeill.

The Ore Reserve Statement is current as of October 2024 and accounts for all mining activities undertaken to this date.

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Figure 1 - Ore Reserve Statement October 2024

The Ore Reserve Statement was updated in accordance with the JORC Code (2012 Edition) guidelines as highlighted in Figure 1 above.

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The Ore Reserves determined are based upon the November 2023 Ore Resources Report as shown in Table 1 below with the full technical report located on our website Mineral Resource Estimation . EQR is not aware of any new information or data that materially affects the information as previously reported in the November 2023 Ore Resources Report. All material assumptions and technical parameters underpinning the estimates in the November 2023 Ore Resources Report continue to apply and have not materially changed, in determining this Ore Reserves Statement. . The information for the Ore Resources is summarised in the Attached JORC Table in Sections 1, 2 & 3.

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Table 1 – Barruecopardo Ore Resource Estimate as of 9 November 2023 and as previously announced on 1 February 2024. All values are rounded to reflect confidence levels in the estimate.

The conversion of 2023 Ore Resources to 2024 Ore Reserve is summarised below in Table 2. For further detailed information, please refer to the Ore Reserve Statement published on the EQ Resources Website: www.eqresources.com.au/site/invest-in-us/technical-reports .

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Table 2 – Conversion summary of Ore Resources to Ore Reserves. Only Measured and Indicated resources were used to determine Proven and Probable Reserves respectively.

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Figure 2 - Barruecopardo Tungsten Mine, 2024

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Figure 3 - Potential extension WD Layout

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Figure 4 - End of Month Surface, August 2024

The Ore Reserves have been limited to a practical pit shell based on current known economic limits for the deposit.

The report completed by independent consultancy, Mining Sense Global SL, was signed off by Competent Person Mr Hugh Thompson who has 40 years’ experience in all aspects of mining.

The reserves identified in this statement are considered economically viable for extraction under current conditions, with positive prospects under future predicted scenarios, ensuring sustainability is integrated into the mine’s longterm planning.

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Figure 5 - End of Year Phase Position – Anticipated evolution of the Pit at the End of Each Year in the LOM.

For the Barruecopardo tungsten deposit, ramps were integrated into the pit shell with appropriate widths and grades to accommodate the planned open-cut mining fleet. The open pit shell and the low-grade stockpile (LGS) were subdivided into detailed mining blocks, which were fully scheduled, including haulage modelling, for the planned LOM. The resulting schedule was evaluated within a financial model to assess the overall economic viability of the project. Revenue generation was based solely on Ore Reserves, including the LGS, while all other materials were classified as waste.

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Concentrate Price / Cost Assumptions

Revenue assumptions are based on the forecast for ammonium paratungstate (APT) price starting at US$316/mtu (metric tonne unit, 1mtu=10kg WO3) in 2024 increasing to US$330/mtu in 2031.

EQR believes the pricing strategy applied in the financial model to determine the Ore Reserves exhibits a conservative approach compared to actual APT prices observed in 2024.

While the adopted financial model bases its revenue assumptions on a starting APT price of US$316/mtu in 2024, increasing only to US$344/mtu by 2026, and decreasing to US$330/mtu from 2027 until 2031, EQR’s internal budget reflects assumptions closer to current market conditions, with prices starting at approx. US$330/mtu in 2024 and peaking close to US$350/mtu. EQR’s internal budget approach ensures that the company's financial planning is responsive to real-world pricing trends, enhancing its accuracy and relevance in forecasting revenue.

This Ore Reserve Statement uses the actual costs for mining, processing and administration at the Barruecopardo mine the past 5 years and includes future costs derived from the current mine contracts for forward estimates as and where appropriate. These parameters are listed in the attached JORC Table Section 4. On this basis, Mining Sense generated, through Whittle Optimizer, the economic mine pit shells. This Ore Reserves Statement uses the base model which was designed to include dilution and mining recovery for assessment of economics.

The financial outcome determined from the base case Ore Reserve Model is positive, supporting EQR’s position that the Barruecopardo mine is a financially viable and critical project on a global scale for the supply of tungsten. EQR’s current upgrade programs ( See recent Ore Sorter & Recovery ASX announcements: 1. ‘XRT Ore Sorter Trials at Barruecopardo Mine Hitting targets’ dated 19 September 2023; 2. ‘Saloro’s XRT Sorting Performance Exceeds Expectations, Adding 26% More material to Gravity Plant’ dated 15[th] February 2024; and 3. ‘ MtCarbine and Saloro Operations Hit New Production Records’ dated 25[th] June 2024. ) include planned drilling works to bring further resources into Indicated Category over the next 6 months.

Completion of this drilling program is expected to further improve the economics of the project.

Other Information

In accordance with ASX Listing Rules 5.9.1, below is a summary of the material information relating to the reported estimates of Ore Reserves for the Barruecopardo mine. A full detailed table is included in Appendix 2 / Section 4 titled ‘ Section 4 Estimation and Reporting of Ore Reserves: Barruecopardo WO3 mine; Reserve date 01 September 2024’. The below points are a summary only of the detailed table in the appendices and supplement additional information already included in the body of this announcement relating to the Barruecopardo Ore Reserves.

Criteria used for classification:
The criteria used for classification of Proven and Probable Reserves is as follows:
- Proven Reserves: Inside Pit Design and Cut-off above 0.06% WO3 and of Measured Resource Category and/or reported in the different stockpiles.
- Probable Reserves: Inside Pit Design and Cut-off above 0.06% WO3 and of Indicated Resource Category.
Mining method selected and other mining assumptions:
The mining method selected is Open Pit mining and reflects current mining operations and assumptions.
Open Pit mining is conducted by standard techniques using contractor operated equipment for drill and blast, load and haul, and auxiliary services.
No Inferred Resources are considered in the LOM planning schedule.

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Current cost factors applied reflect the current cost structure of the mine, including costs for activities completed by the current mining contractor.
Dilution factors: 12% planned dilution plus 15% operational dilution, for a total of 27%.
Recovery factors: 2% planned losses plus 6% operational losses, for a total of 8%.
Processing method selected and other processing assumptions:
- The metallurgical process is based mainly on a gravimetric concentration, the standard in high density ores mining. The process includes a crushing circuit, scalping and or sorting, wet gravimetric concentration, flotation to remove sulphides, drying, magnetic separation and final product packaging.
- This metallurgical process is well known around the world for this type of deposit, with many examples in Spain and in other locations.
- The expected recovery for the Ore Reserves is based on the recently implemented improvement plan at the mine. The improvement plan is detailed further in this report. The LOM assumes 58% recovery in Year 1, rising to 71%.
- Some deleterious elements are noted, however have been assessed to have very limited influence on the project economics.
Basis of cut-off grades and quality parameters:
- The key cut-off parameters used are:
  - Processing and administration costs: US$11.13/t
  - Selling costs: US$2.14/mtu
  - Metallurgical recovery from 58% (Year 1) to 71% (all other years)
  - Selling price: Long term US$330/mtu (WO3)
  - Foreign exchange rate: $US/EURO 1.1
  - Selling contract conditions: Payability 78%
Estimation methodology:
- This is the first declaration of Ore Reserves under JORC (2012) since the operations commenced in 2019.
- The level of the study has been focused on analysis of the current operation, and making specific checks to validate the data used in the reserve and economic models to ensure they reflect the reality of the current operations. This has been combined with an assessment of non-modelled Modifying Factors such as permitting and closure assessment.
- The Mineral Resources Estimate (MRE) that forms the basis of the Ore Reserves determined for the Barruecopardo mine was announced to the ASX in February 2024. Mineral Resources are reported inclusive of Ore Reserves.
- The competent person, Mr Hugh Thompson, has relied on Mining Sense in his assessment. Mr Thompson has known Mining Sense professionally for 10 years. Mining Sense are located in Spain. Mining Sense have visited the site six times during the Ore Reserve estimation process.

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Material modifying factors:
Environmental approvals:
- The project environmental impact assessment has been completed. The required operating permit(s) was granted in December 2014.
- There has been no non-compliance registered against these operating permits since the site came into operation.
- The rehabilitation of the waste storage facilities is well underway, and progressively completed during the mine life.
Mining tenements, other governmental factors and infrastructure requirements:
- An application to increase the waste storage capacity of the mine will be made during 2024. As the footprint of the final waste storage facility is well inside the general concession perimeter, there is every reason to expect this variation will be swiftly granted.
- Changes to the waste storage capacity may require a new environmental assessment if the changes are deemed to be ‘material changes in the project permit’.
- Good relations with local municipality and regional governments are maintained.
- The operation is in far western rural Spain, near the border with Portugal. The location is well served with local roads and social infrastructure. Process water and electricity are sourced from offsite providers with nearby networks. No accommodation is required onsite.
- Any mine life extension implied by this Ore Reserve announcement should be served by the current infrastructure.

For further detailed information, please refer to the ‘Barruecopardo Ore Reserve Statement, October 2024’ published on the EQ Resources Website: www.eqresources.com.au/site/invest-in-us/technical-reports

Released on authority of the Board by:

Kevin MacNeill Chief Executive Officer

Further Enquiries:

Peter Taylor Investor Relations 0412 036 231 [email protected]

About the Company

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Competent Person’s Statements

This Ore Reserve Statement for the Barruecopardo Mine has been prepared by independent consultant Mining Sense Global SL under the guidance of Mr Hugh Thompson.

The Barruecopardo Mine consists of (a) the Barruecopardo open pit and (b) Stockpiles A, B & QP. The estimates of Open Cut Ore Reserves for the Barruecopardo Mine Project as at October, 2024 presented in the announcement and corresponding report have been prepared in accordance with the requirements of the 2012 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (2012 JORC Code). Mr Thompson is a qualified Mining Engineer, (BE (Mining), has over 40 years of experience in in the feasibility, design, and operations of mining projects in Australia, Asia-Pacific, Africa and South America. He led numerous multi-discipline projects, working with professionals from backgrounds such as Environmental, Community, Geology, Mining, Processing, Infrastructure and Corporate aspects of projects. He has a B. Eng (mining), and a Grad. Dip (Finance). He is both a Fellow of the AusIMM and a CP mining. He holds First Class Mine Managers Certificates for; Western Australia, Queensland and Papua New Guinea and is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr Thompson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activity being undertaken to qualify as a Competent Person as defined in the JORC Code. Mr Thompson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Neither Mr Thompson or Mining Sense Global SL has any material interest or entitlement, direct or indirect, in the securities of EQ Resources Limited or any associated companies. Fees for the preparation of this report are on a time and materials basis only. Mr Thompson consents to the release of the report, in the form and context in which it appears.

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.

Appendix 2 – JORC Table –

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Section 4 Ore Reserves

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Appendix 3 – Consent of Qualified Person

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Appendix 4 - MATERIAL INFORMATION SUMMARY OF BARRUECOPARDO MINE

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2024 ORE RESERVE ESTIMATE FOR THE BARRUECOPARDO W MINE

Prepared by: MiningSense Global, SL

And reviewed by: Mr. Hugh Thompson

For: Saloro SLU

October 2024

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EXECUTIVE SUMMARY

Introduction

Saloro S.L.U. (a subsidiary of EQ Resources) is currently mining the Barruecopardo Tungsten deposit located in the municipality of Barruecopardo in the Castilla y León region of Western Spain. The mining operation began in 2019, and the annual production is 260.000mtu of high quality WO3 scheelite concentrate. Operations consisting of an open pit mine and a processing plant.

Mining Sense Global SL has been requested by Saloro SLU to complete a Ore Reserve Estimates report (ORE) compliant with JORC (2012) code for reporting reserve estimates. Where JORC is the Joint Ore Reserves Committee (https://jorc.org/). To do so, Mining Sense Global SL, based in Salamanca Spain, has worked with Mr. Hugh Thompson, from Teneriffe Services Ltd. Based in Brisbane, Australia, who has acted as the Competent Person.

The Table 1 Summarises the Competent Person and other experts who assisted in completing this Ore Reserve Estimation report.

Table 1 -Table 1 Competent Person and Other Experts

	List of Competent Persons	List of Competent Persons	List of Competent Persons
	Position /		Independent
		Responsibility company		Professional
Competent Person	of Saloro			Designation
	Teneriffe
		Overall Reserves CP	Yes
Hugh Thompson	Services			F. AusIMM, CP (mining)
	Other Experts assisted the competent person
	Position /	Responsibility	Independent	Professional
Expert	company	Chapters	of Saloro	Designation
		2.1, 3.1, 3.2, 6, 10,
		11 12, 13, 14, 16,		M. AusIMM, IMEB
		17 Appendix1, 2,		Member, Mining Eng.
Jesús Montero	MiningSense	4, 5	Yes	Col. 526-Sur
María de los Ángeles Ramos	MiningSense	3.5, 3.6, 7.4, 9	Yes	Mining Eng. Col. 713- Sur
Carlos Mezquita	MiningSense	4, 5	Yes	Geologist
		1, 2.2, 2.3, 3.3,
		3.4,
Mercedes Mallo	MiningSense	3.5, 3.7.1, 7.2, 7.3,	Yes	Mining Eng. Col. 4980
		7.4, 7.5, 8, 10, 15,
		18, Appendix 3, 6
Pedro Jiménez	Saloro SLU	Metallurgic, Ch.11	No
		Mineral
		Processing,
Evren Ören	Saloro SLU	Ch.11.3.1 & 11.3.2	Yes

1 B a r r u e c o p a r d o W M i n e D o c . N o . S L O _ O R E _ 2 4 1 0

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This report is more extensive than is usual for a typical JORC 2012 ORE report. This is primarily due to the time that has passed since the previously released Ore Reserves Estimate for this property, there have been numerous updates and changes in many areas fundamental to the estimate of the ore reserve. Therefore, the documentation contained herein is correspondingly more comprehensive.

Background

The Barruecopardo Tungsten deposit was sporadically mined from the early 1900’s until the 1980’s. The mining activity was re-started in 2019 and, up to December 2023, a total of 35.5Mt of total rock has been mined. Of this, 6.5Mt was mined as ore to produce a scheelite saleable concentrate, and the rest, 29Mt, was considered waste and sent to the waste dump.

The most important documents in the recent history of the project are:

The current Mining License was requested via submission to the Mining Authority as the request for Exploitation Project (EP), C.E. Barruecopardo, Nº6.432-11 (“Proyecto de Explotación”. Sadim, 2011). Sadim is a Spanish consulting firm. The submission for the EP included the required components of the Rehabilitation Plan and the Environmental Impact Assessment. The latest has not been provided for its review to develop this ORE report. The EP request was granted in 2014, as noted below.
Mineral Resource Estimation Barruecopardo Tungsten Deposit. CSA Global Resources, 2012.
Feasibility Study Saloro SLU Barruecopardo Tungsten Project. CSA Global Resources, 2012.
Mineral Resource Estimation Barruecopardo deposit. JORC Code Edition 2012 technical report. Jörg Pohl, 2024.

The base technical information date is December 2023, and the effective date of the Ore Reserve Estimate is the 1st of September 2024.

Reliance on other experts

Hugh Thompson as Competent Persons accomplished mining professional with 40 years of experience in the feasibility, design, and operations of mining projects in Australia, Asia-Pacific, Africa and South America. He led numerous multi-discipline projects, working with professionals from backgrounds such as Environmental, Community, Geology, Mining, Processing, Infrastructure and Corporate aspects of projects. He has a B. Eng (mining), and a Grad. Dip (Finance). He is both a Fellow of the AusIMM and a CP mining. He holds First Class Mine Managers Certificates for; Western Australia, Queensland and Papua New Guinea.

The competent person, Hugh Thompson, has not visited the site. He has relied on Mining Sense Global SL for their site visit verifications, noting the long relationship Mining Sense Global SL has had with Saloro since they began operations in 2019. Hugh Thompson has known Mining Sense Global SL professionally for 10+ years. Hugh Thompson held regular meetings with Mining Sense Global SL during the delivery of this service; mostly via video conferences and one in-person meeting.

Mineral asset

Barruecopardo mine licence and operating permit were submitted for approval on 11 January 2011. These permits were granted, as follows:

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• On the 16[th] of January 2014 the Environmental License, (“Declaración de Impacto Ambiental”) (DIA), was granted, and published on the 6[th] of February 2014 in the public bulletin “Boletín Oficial de Castilla y León” ORDEN FYM/2014.

The Mining License was granted on the 19[th] of December 2014 as “Concesión de Explotación
Barruecopardo” (C.E. BARRUECOPARDO Nº6.432-10). This allows the extraction of Tungsten, according to the Spanish mining regulation. The validity of the Mining License is for 30 years, being renewable two more times for the same period. The project site, and mining concession is 100% owned by Saloro SLU.

On August 2023 EQ Resources Limited (EQR) acquired a 100% interest in Saloro from Oaktree. Oaktree remains a substantial shareholder in EQR, because of the transaction.

The Barruecopardo project, covers 6.052km[2] is in the municipality of Barruecopardo, Figure 1, in the Salamanca province of Castilla y León, in Western Spain. This is 260km WNW of Spain’s capital Madrid and close to the Portuguese border. The mine is 4 Kms south of Barruecopardo village and is accessed by the public roads DSA-573 and DSA-570 public roads. These roads connect through with the town of Vitigudino (population2,700), and through to the regional capital of Salamanca (population 150,000) 95 Kms from the mine.

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Figure 1 Location of Barruecopardo

Mineral Resource Estimate

This section is based on the document “JORC TECHNICAL REPORT Mineral Resource Estimation of Barruecopardo Tungsten deposit”, prepared by Jörg Pohl (EurGeol. #1728) for SALORO SLU. in November 2023.

The first JORC resource reported by CSA in 2012 was based on 83 diamond drill holes (DD) drilled between 2006 and 2011. Seven more DD holes were added in 2012 and 2015 to test the deposit's eastern extension. In 2019, 27 DD holes were drilled to investigate structural control. Between 2021 and 2023, 26 more DD holes explored depth continuity, totalling 143 DD holes. After each campaign, the block model was updated, and

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378 reverse circulation holes (RC) drilled between 2018 and 2020 were used for grade control. Holes drilled between 2021 and April 2022 aimed to explore deeper levels, referred to as “Phase 6”, with May 2022 resource estimates using only DD holes.

Regarding regional geology, the deposit area is part of the Central Iberian Zone (CIZ) of the Iberian massif. The basement rocks are metasedimentary units and a large volume of granitic Variscan rocks. The Palaeozoic metasediments are part of the Shist-Grauwacke Complex (CEG). Predominant rocks in the area are massive intrusive granites and a metamorphic sediment sequence. The granite intrusions took place during the Variscan age (326-311 Ma) and have been deformed during the Variscan orogeny.

The deposit area is comprised of the following geological units:

13: Granite "Ala de Mosca", of medium to large grain size
14: Zone of occurrence of quartz dikes, and 14a pegmatites
18: Granite of Barruecopardo
19: Metasediments (pellitic-psamitic) with quarzitic intercalations

Two main orientations of structures exist in the area being NW-SE (mainly dextral) with a general dip of 40-60 degrees towards S-SW.

Mineralisation occurs within the pegmatitic veinlets cutting through the granite complex. Two main Tungsten minerals are present: scheelite (CaWO4) and wolframite ((Fe, Mn) WO4). Other abundant minerals are quartz, muscovite, pyrite, chalcopyrite and arsenopyrite. The mineralised veins, which correspond to the main stress orientation during the Variscan and later the Alpine orogeny, are oriented along a strike with a main orientation of NNE 10-15º, and they usually range between 1mm and 10 cm of thickness.

The Barruecopardo deposit is interpreted as a sheeted vein system deposit, with its veins being filled after hydraulic fracturing during the orogenic phases.

Regarding the resource estimation method, based on the drillholes (both DD and RC) and the grade control and geological mapping, wireframes representing packages of veins used as resource estimation domains were modelled and a rotated block model representing the orebody was developed. Parent block size is 6x6x5m (x-y-z), allowing two times sub blocking in the x and y direction, for a maximum resolution of 1.5x1.5x5m subblocks. Tungsten was interpolated using ordinary kriging. The estimation method consists of a separate validation of deleterious elements, application of top cut to avoid a nugget effect, definition of ordinary kriging parameters, and explanation of the estimation process.

Reporting of the MRE for the Barruecopardo deposit is based on the guidelines defined in the JORC code (2012 edition). The MRE has been classified as a Measured, Indicated and Inferred Mineral Resource of 24.4 Mt at an average grade of 0.195 % WO3. The following table shows the MRE at a 0.05% WO3 cut-off grade, the values in the table are rounded to reflect confidence levels in the estimate.

Table 2 Barruecopardo Mineral Resource Estimate as of 9th November 2023


Category	Tonnes (Mt)	Grade (WO3 %)	Contained Metal (t of WO3)
Measured	10.05	0.191	19,204
Indicated	10.46	0.174	18,200
Inferred	3.86	0.259	9,993
Grand Total	24.37	0.195	47,527

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Geotechnical

The geotechnical performance and parameters of the Barruecopardo open pit have been comprehensively reviewed in 2023 and 2024. The geotechnical review was conducted by Mr Leandro Alejano, Professor of Rock Mechanics, School of Mining and Energy Engineering, University of Vigo. During the study the historical information has been analysed and site visits undertaken to map exposed faces, measure the in-situ conditions of the rockmass and take samples for laboratory analysis of physical properties.

The rock mass was characterized using discontinuity samples from the mine, data from Golder’s 2020 report and bi-monthly updates by Saloro and Mining Sense Global SL. This update categorized the rock mass as a medium to good quality with a GSI of 62, identifying four main joint sets: three sub-vertical and one subhorizontal.

The final slope design proposed confirms the previous Golder’s report: double-benching of 10m resulting in 20m benches, at 75º inclination and 7m berms to a maximum depth of 290m.

Potential instabilities such as toppling, planar, and wedge failures were reviewed and recommendations to control their effects are included in the geotechnical report.

General pit slope stability was assessed using four representative sections of a similar pit design to the final pit obtained as per the current ORE, with 20m slopes and 59º overall slope angle. This resulted in safety factors above acceptable levels (FoS > 1.6, SRF > 1.4), ensuring stability if structural homogeneity and fault absence assumptions hold.

Mining operations

Mining is carried out by a contractor responsible for: Drill and blast, load and haul, maintenance of roads and sumps, and refeeding from the ROM stockpiles into the ROM Ore bin. All ore goes through the stockpiles, with no direct truck dumping into the ROM hopper. All waste goes to the ex-pit waste storage facility immediately to the west of the pit. All waste has been characterised as Non-Potential Acid Forming. Dried tailings from the concentrator are codisposed inside the waste storage facility, along with the run-of-mine waste.

Saloro, as the owner, provides overall supervision, and mine technical services such as resource estimation, grade control in—pit, and pit design. As well Saloro directly conducts the progressive rehabilitation of the waste storage facility. Saloro operates the processing plant and uses a separate contractor for the offsite truck transport of concentrate as final product.

The water used in the operation comes from the mine drainage system, stored in various ponds on surface depending on the intended use.

The mining operation uses two 120 Tonne excavators with loading 100-tonne trucks on both ore and waste. Mining benches are nominally 5m high, with double-benched 10m heights used in bulk waste.

The mine works two 12-hour shifts Monday to Friday, with a 12-hour shift on weekends. Generally, day shift operates 1 excavator plus two drills, and the night shift operates two excavators and one drill.

Grade control

Grade control is based on the collection and analysis of data from blast holes after initial review with a UV lamp. The visual positive blasthole samples are analysed in the on-site laboratory, typically providing results within 1-2 days. These results are used to define polygons representing different grade zones within the blasting area. The definition of the polygons after blasting, that is their translation in space, is supported with on-site specialised software.

The material is classified into five categories:

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A+: Ore with a grade higher than 0.15% WO3 and high sulphide content.
A-: Ore with a grade higher than 0.15% WO3 and low sulphide content.
B+: Ore with a grade between the 0.07% and 0.15% WO3, and high sulphide content.
B-: Ore with a grade between 0.07% and 0.15% WO3, and low sulphide content.
OP: Ore assigned outside the geological model according to grade control.

Mine optimization and design

The resource block model used for grade estimation, has been re-blocked up to the SMU (Selective Mining Unit) of 6x6x5m for optimisation and design. This includes the addition of 12% planned dilution and 2% losses. Further to these planned losses and dilution, an additional operational loss and dilution of 6% and 15%, respectively, are applied in the mine plan.

To identify measured and indicated category resources for the optimization process a cut-off of 0.05% WO3 has been applied using the domains defined as class 1 and 2.

The MRE resource block model has been checked for alignment along the main orientation of the mineralised veins’ strike which is 15º NNE. The rotation is applied to minimise any dilution which might occur through misalignment between mineralisation and blocks. The extents of the block model are 1800m in the NNE-SSW direction, 800m across strike in a WNW-ESE direction with vertical extension between 755m and 300m RL. Good lateral definition along strike, and reasonable vertical continuity mean that mining to minimise loss and dilution should be successful.

The ORE block model has been depleted with the end of period surface as of 31 December 2023, to account for mining operations continuing from 1 January 2024, the date of record of the model, until 31 August 2024, date of record for the ORE estimate.

In the economic scenarios different mining limits have been set for total material moved from 6.2Mt to 9Mt of total material moved. A fixed plant throughput of 1.3Mt of ore is targeted per year and a minimum production of 9,000mtu/month.

The 8% discount rate has been applied to this optimization. All the cost and revenues have been denominated in US$ in the optimization software with the exchange rate of 1.10 €/US$ applied when the base data was provided in Euros.

The long-term scenario, used for selecting the ultimate pit-shell, considers a 54º slope angle, 71% metallurgical recovery and 330US$/mtu price scenario. This was done whilst including the material selected as ore for the short-term scenario. The pit-shell selected delivers 11.1Mt of ore at an average grade of 0.153% WO3 and 48.6Mt of waste at a Cut-off grade of 0.059% WO3.

Two pit-shells, maximum cash flow (pit-shell 36), pit-shell selected (pit-shell 45) and current phase in operation design boundary have been displayed in plan view, Figure 2, and section view, Figure 3.

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Figure 2 Pit-shell 36 versus Pit-shell 45 selected plan view

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Figure 3 Pit-shell 36 versus Pit-shell 45 selected, section view

Final pit design has been performed after several iterations to optimize material ore/waste balance, and allowing for haul ramps etc. After that, practical phases have been designed for schedule and operational purposes with a minimum of 25 meters working width.

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The phased design was then assessed in Whittle, with the assumption that the pit must be mined in a feasible sequence which delays, as much as possible the North area. This resulted in a Whittle DCF NPV reduction of 1.6M€ - if the northern phase is included. Furthermore, mining of the northern phase would require the removal of currently existing surface infrastructure, thus incurs a capital cost (not included in this analysis). As a result, the northern phase is not included in the production plan. The final design considered for planning is shown in Figure 4 in plain view, and Figure 6 in section view.

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Figure 4 Final Pit Design

Figure 5 shows the final, selected pit design and the excluded “Northern Phase” As the North area is not considered in the final design due to the proximity of the current infrastructure and the high strip ratio in this area, it may be studied further for inclusion in a future reserve estimate.

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Figure 5 Final Pit Design vs Pit shell plan view

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Figure 6 Final pit design long section view

Mine schedule

The pit has been scheduled out to the end of its’ Life of Mine (LoM) so that it exhausts the reserves. Scheduling has been at monthly for the first two years, quarterly the following two and yearly for the remaining LoM. Reports are shown here only at an annual level. The existing stockpiles form part of the ore reserves, Table 3, shows the status as of 31 Dec 2023. These

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have been depleted to their levels as of 31 August 2024, for the mining conducted in the interim. These have been included in the mine plan.

Table 3 Stockpile status included in the Production Plan

Stockpile status	Tonnage Dec 2023	WO3 %	After sorting t	% WO3 after sorting
A	92,373	0.182
B	125,695	0.101
OP	54,684	0.095
MAR (not included)	574,763	0.064
Scalping (concentrate included)	332,458	0.058	29,921	0.55
To plan/reserves
HG (A stockpile + scalping)	122,294	0.272
LG (B stockpile + OP stockpile)	180,379	0.099
MAR (updated 09/24 to plan)	335,375	0.061

The production plan targets the ramp-up from 1.45Mt of ore in the first year to the stable target of 1.8Mt per year of ore fed to the process plant. Ore feed could come from either existing stockpiles, or ore direct mined from the pit. The increase in plant capacity is based on the successful conclusion of the current debottlenecking campaign as described in 11.3.1 of the 2024 Ore Reserve Estimate.

Table 4 shows the LOM mine plan by phases in each year, with Table 5 showing the plant feed and concentrate production for the same periods. The mine plan table shows the potentially deleterious elements of arsenic, sulphur and phosphorus.

In this production plan, material coming from the pit has been prioritised for feeding the crusher. Higher grades are available in the first years.

The stockpiles secure consistent plant feed if any disruption occurs in the pit during the first five years. The last two quarters in year 5 includes some marginal material blended with the low grade reaching a 0.12-0.10% WO3 head grade after blending. The 6[th] year is processing the remaining marginal material for feeding the crusher reaching 1.2Mt of ore at head grade of 0.13%WO3. During this year the phase 4 of in-pit mining exhausts the last of its’ ore and phase 3 reaches a vertical development face of 60 meter.

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BARRUECOPARDO 2024 ORE RESERVE ESTIMATE

Table 4 Mine Plan

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BARRUECOPARDO 2024 ORE RESERVE ESTIMATE

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Table 5 Plant Feed


Ore Feed by Source Units		1 2 3 4 5 6 7 Total
From Pit HG Tonnes From Pit LG Tonnes From Stockpile HG Tonnes From Stockpile LG Tonnes Plant Feed - Total Tonnes Plant Feed WO3Grade % mtu Contained Metallurgical Recovery % mtu Produced		946,205 1,074,091 677,646 509,877 603,627 308,408 962,532 5,082,386 409,612 744,930 783,341 711,439 1,215,377 526,621 813,641 5,204,960 99,976 - 157,433 - - - - 257,409 - - 200,666 597,930 - 354,374 - 1,152,970 1,455,793 1,819,021 1,819,086 1,819,246 1,819,004 1,189,403 1,776,173 11,697,725 0.22 0.18 0.16 0.12 0.13 0.12 0.16 0.16 317,808 347,726 292,046 215,249 232,395 137,624 292,643 1,835,490 58 71 71 71 71 71 71 69.2 184,329 246,885 207,352 152,826 165,000 97,713 207,777 1,261,883

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The Figure 7 shows the ore and waste mine production by phase each year. First year has been limited to 7.5 MT total movement and 1.45MT of ore to align with the current year production on site. The tonnage declines in absolute terms from year 6 onwards will be offset by deeper pit hauls, therefore total equipment fleets are expected to be constant until the later years of the mine life.

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----- Start of picture text -----

Total Material moved by Phase
----- End of picture text -----

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----- Start of picture text -----

14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
0 1 2 3 4 5 6 7
Year
----- End of picture text -----

Ore phase 1 Ore Phase 2 Ore Phase 3 Ore Phase 4 Waste Phase1 Waste Phase 2 Waste phase 3 Waste phase 4

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Figure 7 Mine Ore and Waste Production Plan per Phase

The Figure 8 shows the different source contributors to plant feed, the average head grade and the expected mtu contained.

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----- Start of picture text -----

Crusher feed
2,000,000
0.24 1,900,000
0.22 1,800,000
1,700,000
0.20
1,600,000
0.18 1,500,000
0.16 1,400,000
1,300,000
0.14 1,200,000
0.12 1,100,000
0.10 1,000,000
900,000
0.08 800,000
0.06 700,000
0.04 600,000
500,000
0.02 400,000
- 300,000
1 2 3 4 5 6 7 200,000
Year 100,000
From Pit HG From Pit LG From Stockpile HG From Stockpile LG MTU Contained
MTU Produced MTU target target Grade to crusher
Figure 8 - Plant Feed Production Plan
----- End of picture text -----

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As the mine is in operation, phase position and stockpiles, Table 6, have been updated with the endof-month surface in Aug 2024. During this eight month of operations a total of 4.4Mt of material has been excavated according to the reserves block model to produce 502kt of highgrade ore and 414kt of low-grade ore. A total of 0.9Mt of ore at an average grade of 0.20% that contains 175,564 mtu.

Table 6 - Stockpile update EOM Aug 24

Stockpile status	Tonnage		Concentrate	Concentrate	mtu
	EOM Aug	Grade	t (after	WO3% (after
	2024		sorting)	sorting)
A	144,883	0.194			28,058
B	157,290	0.102			16,009
OP
MAR (not included)	337,399	0.064			21,593.5 4
scalping (concentrate included)	139,450		12,550	0.058	20,076
To plan/reserves
HG (A stockpile + scalping)	157,433	0.183			48,134
LG (B stockpile + OP stockpile)	157,290	0.102			16,009
MAR (updated 09/24 to plan)	335,375	0.061			20,572
Total	650,098	0.10			84,715

Mineral processing

The processing route is gravimetric concentration. The ore is stockpiled and blended before feed to the crushing circuit. This has the objective of reducing the size of the ore from 800mm to 5mm.

Once the material is reduced a preliminary concentration is affected by removing some of the coarse particles that contain mainly gangue from which the potential mineralized particles are recovered in the following ore sorting stage. This ore sorting stage can remove 25% of the waste included in the crusher feed material with a minimum loss of metal.

The process continues with the gravimetric plant where the heavy minerals are separated from the lighter ones by a combination of screens, cyclones, spirals and shaking tables. The gravimetric product includes sulphides. These deleterious elements are then removed by two stages of flotation followed by a further gravimetric concentration using shaking tables.

The underflow material from the flotation circuit is dried and passes through a cascade of magnetic separators to remove deleterious elements, increasing also the concentrate grade and producing the final scheelite concentrate.

The scheelite concentrates range from 60% to 70% WO3, it has been used 64% for the ORE. The mine plan supporting the ORE report includes the production of 1,257,064 WO3 mtu in a scheelite concentrate weighting 19,642 t of concentrate

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The processing plant was built in 2019 and has operated for five years and is in good condition. Nevertheless, the metallurgical recoveries achieved have been low in comparison with both other similar projects, and with the plant design criteria.

Recently Saloro management has put in place a program to upgrade the plant, and thereby improve recovery. This program identifies the recoveries per area and equipment, prioritising the improvements with the highest impact on the recovery. The plan to implement these changes was initiated in January 2024. The complete plan will take some 18 months to implement, and thus be complete circa December 2025. These initial results, which are ‘tracking to plan’ so far and the detailed future works defined by Saloro are encouraging. This provides credibility to that recovery will lift from the existing (dec 2023) of ~ 50% to the 71% assumed in this report.

The 7-stage improvement plan covers:

Homogenization of the feed material passing through different stages.
• Increased Recovery of fines.
Pre-concentration by removing part of the waste by adding new circuits of ore sorting and scalping. These are already in place by May 2024.
Replacement of certain equipment for others with easier maintenance and improved control.
Reduction in source rock fines production.

This plan is costed into the economic analysis conducted in this ORE, as is the monthly variable recovery scheduled in 2024 to 2025 whilst the improvement plan is being enacted.

Waste Storage

Over the life of the current Barruecopardo mine Project, there have been several waste storage facility designs. The various changes and extensions have been required and implemented. Essentially growing the same footprint. As and when relevant these have been presented with their corresponding documentation to the relevant mining authorities as re-permitting has been required. The last of these was in 2021, whereby a total volume of 25.2 Mm[3] has been approved for waste storage on this project.

Noting that the plant tailings are co-disposed with the run-of-mine waste into the same waste storage facility. Therefore, the facility needs to be of sufficient volume to allow for both the tailings storage as well as the mine waste.

The total waste volume required to be stored, in order to support this 2024 reserve estimation is 6.50Mm[3] of tailings, including ore mined and stocked material, and 23.44Mm[3] of waste rock, as shown in Table 7.

Table 7 Waste volume LOM Storage

* Calculated by Topo_Origen	Volume (m3)
Taillings	6,498,736
Waste	23,443,589
Total volume with swell and compaction	29,941,325

The currently approved dump currently has a capacity of 25.2Mm[3] , of which 19.3Mm[3] have already been filled. This leaves some 5.9Mm[3] of remaining volume approved. Figure 9 shows the waste storage facility as of May

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Therefore, some 24 Mm3 (30 – 6) of extra approved waste storage is required to support this 2024 ore reserve estimate.

During the second half of 2024 a new waste dump project will be presented to the mining and environmental regulators for permitting. This will have a total volume of almost 69Mm[3] , an increase of 43 Mm[3] in total storage capacity, and more than sufficient to satisfy the LOM waste storage requirements. The extended waste storage facility is entirely within the currently approved Barrauecopardo project site and is required to be in place by late 2026. This is considered feasible timing, given the prior history of re-permitting waste storage, the technical aspects involved, and discussions with regulators.

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Figure 9 Waste storage - May 2024

Table 8 Waste Storage Facility design criteria

Waste Storage Facility design criteria
Slope angle	33 degrees
Berm width	8m
Bench height	10-30m
Final slope angle after reclamation	18/20 degrees
Swelled density	2.3t/m3
Swell factor	25%
Rampwidth	25m
Ramp gradient between	7/10%
Overall slope angle	16 degrees
Heigh aboveground	90m
Total volume capacity	69.4Mm3

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Water Management

The water management system is based on controlling water flows to separate clean water from the process water. Aiming to minimise the discharge of used water into the natural environment and optimize the use of water in all process during the LoM.

Surface drainage system to collect run-off water outside the pit and all facilities are maintained to optimize the water balance and to minimize the environmental impact.

The drainage network consists of 4 water ponds lined with high-density geosynthetic plastic (PEAD) equipped with their own pumping systems. Several local sumps and an external drainage system collects pit bottom water and rainfall and delivers that water to the ponds. After settlement this is then sent to the water treatment plant, from where it goes to either the process plant or discharged off-site.

The water table level is monitored through a series of perimeter observation holes. An underground and surface monitoring plan is in place to detect any early-stage change in the performance of the aquifers.

Environmental Social and Permitting

The project currently has valid and appropriate Environmental License(s) and Mining License to operate until 2044. The project also has the appropriate construction authorisation that enabled the 2018 construction of the plant and the project associated facilities.

The water usage and water discharge permits are in place with a water consumption permit of 884,774m[3] /year and a water discharge permit of 12,000m[3] /year. Most of the water consumed is retained in the tailings and used for rehabilitation and dust control. With this permit, the mine has been able to work continuously since 2019 without any interruption due to water permit restrictions. Saloro in any case is currently requesting an increase in their discharge permit to improve the operation flexibility.

The current open pit is authorised for a limited footprint, that supports operations until the end of the year 2 of the mine plan reported in this ORE. To support the full LOM considered for this ORE, it will be necessary to seek approval to increase the waste dump footprint, as described above, and to increase the permitted open pit footprint. Both items are planned to be requested in 2024.

These will, likely, be considered a ‘material change’ to the existing operating licence for the project, therefore it is likely that a new, or revised Environmental Impact Assessment will also be required. This process usually takes 1 to 2 years to be assessed by regulators.

As the mine is in operation and the changes triggering an environmental impact assessment are not new or substantial, it is likely that time between submission and approval may be shorter. Furthermore, although the project is in an environmentally sensitive area, it is expected that the new authorizations are likely to be granted based on the exceptional performance of the project to date on the environmental aspects, as well as the positive social perception of the operation.

Capital and Operating Cost

The cost base used for the model have provided by Saloro in Euro as per 2024Q1.

The capital costs are limited to the investment needed in the plant to improve recovery, as described above, plus a reasonable allowance for overall sustaining capital Table 9 summarises this CAPEX.

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Table 9 CAPEX summary

Item	Unit	Total LoM
Plant improvements	k€	630
Sustaining capital	k€	700
Total CAPEX	k€	1,330

The operating cost is composed of:

Mining costs – contractor operation.
Processing cost – own operation.
General and administrative costs.
Selling costs.

Table 10 summarises the operating costs used, that are aligned to the current Saloro costs.

Table 10 OPEX summary

Item	Yearly Cost (k€/year)	Total LoM Cost (k€)	Per total Mined Tonne	Per Ore tonne	Per metal con tonne produced
			€/t(o+w)	€/t ore	€/mtuWO3
Mine	13,582	122,235	1.90	11.05	97.24
Process	9,294	83,644	1.30	7.56	66.54
G&A	1,842	16,578	0.26	1.50	13.19
Selling	399	3,587	0.06	0.32	2.85
Total OPEX	25,116	226,044	3.51	20.43	179.82

The rehabilitation costs considered includes the waste storage facility slope restoration, progressively undertaken during the operating life of the mine, and the final site decommissioning including stockpiles, built facilities, ponds and haul roads. The pit will be maintained partially backfilled. The pit slopes will be rehabilitated to be used for future nests for the birds. Table 11 shows the rehabilitation costs

Table 11 Rehabilitation costs

Item	Unit	Total LoM
Waste dumprecovery	k€	1,224
Decommissioning	k€	3,928
Total Rehabilitation	k€	5,152

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Technical Economic Model

A life of mine economic model has been developed, to satisfy the Reasonable Prospects for Economic Extraction criteria of JORC. This has been developed only for the purposes of testing that the mine reserves show a likelihood of supporting an economically viable proposition. This economic work is general in nature and limited to assessing probable economic exploitation. It is not meant to be a fully detailed financial model and should not be understood in terms of assessing the project value or used for that purpose.

Financial assessment was completed to check reasonable prospects of positive economic outcome using these factors and assumptions.

This resulted in the Competent Person being of the opinion that there indeed are reasonable prospects of economic extraction.

Ore Reserve Statement

After technical and economic analysis done considering the modifying factors, described in previous sections, the Ore Reserve Statement can be declared with sufficient confidence.

The Table 12 shows the Resource conversion into Reserves.

Table 12 Resource to reserve and design conversion

	Mineral Resource	Ore Reserve Cut-Off 0.06%
			Pit Design Cut-off 0.06%
	Estimation Cut-Off 0.05%	*WO3 **
			*WO3 **
	WO3

	Tonnes (Mt) Contained Grade Metal (WO3 %) (t of WO3)	Tonnes (Mt) Contained Grade Metal (WO3 %) (t of WO3)	Tonnes (Mt) Contained Grade Metal (WO3 %) (t of WO3)
Category				Category

Measured Indicated Inferred Grand Total	10.05 0.191 19,196 10.46 0.174 18,200 3.86 0.259 9,997 24.37 0.195 47,522	7.13 0.155 11,021 3. 33 0.141 4,704 10.46 0.156 16,367	7.68 0.164 12,581 3.40 0.141 4,770 11.07 0.157 17,351	Proven Probable
*Includes loss and dilution

The Ore Reserve Estimation updated in August 2024, in accordance with the JORC Code (2012 Edition) guidelines are reported in the Table 13.

“An Ore Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include the application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified.” JORC Code (2012 Edition)

After technical and economic analysis done considering the modifying factors, described in previous sections, the Ore Reserve Statement, included in Table 13, can be declared with sufficient confidence extending the Life of Mine.

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Table 13 Ore Reserves Statement September 2024

Classification Category	Mining Type	Tonnes (t)	Grade (WO3%)	Metal contained (mtu)
Proven Open-Pit Stockpile		6,816,530 314,723 0.16 0.14 1,102,148
Total Proven		7,131,253 0.155 1,102,148
Probable Open-Pit Stockpile		3,332,177 0.14 470,387
Total Probable		3,332,177 0.141 470,387
Total Open-Pit Stockpile		10,148,707 314,723 0.16 0.14 1,572,535 64,143
Total Ore Reserve		10,463,430 0.156 1,636,678

Notes:

Reported from the reserves block model “saloro_202310_res_rot_6x6x5.mdl” regularized block model from the resources block model saloro_202310_res_rot.mdl.
Cut-off grade 0.06 % WO3 for the long-term use for all the stages of the project.
Modifying factors operational loss 6% and 15% operational dilution over a regularised model that includes 2% loss and 12% dilution against the resource model.
Metallurgical recovery of 58% during the first year of production and the rest of LoM metallurgical recovery of 71%.
Stockpiles A, B, OP and scalping have been considered. No marginal stockpile is included in this Ore Reserve Statement. Although it has been included in the LOM mine plan developed to test reasonable economic extraction. This is minor in quantity, and described in section 8.
The reporting standard adopted for the reporting of the ORE uses the terminology, definitions and guidelines given in the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012).

It is considered that last report completed in 2012 scheduled 9 years of production starting in 2019 and this ORE reports additional 7 years of production plan which means the LoMP has been extended a total of 3 years of production since last ore reserves declaration. Below, in Table 14, 2012 MRE and reserves included in the production plan in the exploitation project for reference.

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Table 14 2012 MRE and Reserves

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Risks overview

The main risk in the estimate of these reserves is in not achieving the planned metallurgical recovery. Lower than planned recovery will compromise the economics of the project. To mitigate this risk, it is recommended that clear KPIs’ are defined to measure the incremental and long-term performance of the recovery improvement plan currently underway.

The other risks of note are;

The risks inherent in mining veined deposits such as Barruecopardo whereby loss and dilution
control require tight operational supervision, and vigilance.
Delays in obtaining the required variations to operating permits and authorisations, as
necessitated by the extension of the Life of Mine.

Forward work plan

It is recommended to perform a detailed study to reduce planned and operational loss and dilution. Although economic viability is proven, profitability could be increased by optimizing these parameters and delivering increased value to the project. Work is suggested in both how loss and dilution are operationally controlled through all stages of mining, as well as how it is modelled and assessed for planning.

The reserves are highly influenced by the expected recovery, a considered program on how these improvements in the plant produce the expected recovery, on a near to real-time basis is critical and must be aligned with an accurate reporting system to track the changes and improve future planning.

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EQ RESOURCES LIMITED — Capital/Financing Update 2024

64867_rns_2024-11-03_0a582ed2-84df-4d4a-943b-f0306833dc64.pdf

SUMMARY OF CHANGES - EQ RESOURCES LTD RELEASES UPDATED ANNOUNCEMENT OF BARRUECOPARDO ORE RESERVES, WITH NEXT PHASE DRILLING PROGRAM SCHEDULED FOR 2025

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

Released on authority of the Board by:

Further Enquiries:

About the Company

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EQ RESOURCES LTD RELEASES UPDATED ANNOUNCEMENT OF BARRUECOPARDO ORE RESERVES, WITH NEXT PHASE DRILLING PROGRAM SCHEDULED FOR 2025

Concentrate Price / Cost Assumptions

Other Information

Released on authority of the Board by:

Further Enquiries:

About the Company

Competent Person’s Statements

Forward-looking Statements

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Appendix 2 – JORC Table –

Section 4 Ore Reserves

Appendix 3 – Consent of Qualified Person

Appendix 4 - MATERIAL INFORMATION SUMMARY OF BARRUECOPARDO MINE

EXECUTIVE SUMMARY

Introduction

Background

Reliance on other experts

Mineral asset

Mineral Resource Estimate

Geotechnical

Mining operations

Grade control

Mine optimization and design

Mine schedule

BARRUECOPARDO 2024 ORE RESERVE ESTIMATE

BARRUECOPARDO 2024 ORE RESERVE ESTIMATE

Table 5 Plant Feed

Mineral processing

Waste Storage

Water Management

Environmental Social and Permitting

Capital and Operating Cost

Technical Economic Model

Ore Reserve Statement

Table 14 2012 MRE and Reserves

Risks overview

Forward work plan

More from EQ RESOURCES LIMITED

EQ RESOURCES LIMITED Capital/Financing Update 2024