EQ RESOURCES LIMITED — Capital/Financing Update 2024

Jan 29, 2024

resourcing the new economy for a better tomorrow

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30[th] January 2024

MAJOR DRILLING CAMPAIGN AT MT CARBINE TO INFILL UNDERGROUND RESOURCES AND EXPLORE EXTENTS OF KNOWN HIGH-GRADE ZONES

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

Highlights:

• Mt Carbine Phase 1 2024 diamond drilling campaign for 24,000m scheduled for infill drilling of underground targets and extensions of known high-grade zones*:

  • Major drilling campaign, in comparison to total drilling to date of 22,545m

  • 75% of the drilling targets an upgrade of 2 million tonnes of Inferred Resources that is above 0.5% WO3 into Indicated category, to provide the basis for a Stage 1 underground mining feasibility study

• 25% of the drilling targets extensions of known high-grade zones towards new areas in the east, west and north of the open pit (Iron Duke)

• o Several deeper holes are designed to understand the depth extents of the deposit o The campaign is budgeted with $2.88 million and will mostly be drilled from the existing pit

• * See ASX announcement ‘Underground Scoping Study Gives Confidence To Proceed With Pre-Feasibility Work’ dated 12 April 2022 ** See ASX announcements ‘Drilling Results Highlight Significant Iron Duke Discovery And Potential For Additional Pit Expansion’ dated 13 February 2023, and ‘Drilling Confirms High-Grade Mineralised System In Western Extension’ dated 27 February 2023

EQ Resources Limited (“EQR” or “the Company”) is pleased to announce its Mt Carbine Phase 1 2024 diamond drilling campaign, which represents a major campaign in comparison to total drilling to date of 22,545m. The current open pit mine plan at Mt Carbine will mine only 19.3% of the known mineral resource (see ASX Announcement ‘43% Increase In Mt Carbine Ore Reserves From Western Pit Extension’ dated 18 May 2023), while significant potential exists to better define the remaining 80.7% of the resources, as most of the untapped resource sits in the Inferred category.

A total of 18,000m of the planned 24,000m are targeting the upgrade of 2 million tonnes of Inferred Resources that are above 0.5% WO3 into Indicated category, to provide the basis for a Stage 1 underground (“UG”) mining feasibility study. The Mt Carbine UG Scoping Study* indicated there were 4.2 million tonnes @ 0.52% WO3 available in the Inferred Resource. The Company plans to drill those resources which are located immediately north of the open pit.

A further 6,000m are targeting East & West Extensions of the Iron Duke Vein Package and the Western Deep High-Grade System encountered in previous drilling campaigns**. Some of this drilling is planned from the existing 430m decline once refurbishment has occurred. This drilling has the potential to increase the strike extent of the mineralisation by a further 30%. The campaign is budgeted with $2.88 million.

REGISTERED OFFICE: Level 4, 100 Albert Road, South Melbourne, VIC 3205 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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Fig. 1 - Location of the two drill zones to be investigated for underground potential

The bottom limits of the system have not been found except on the faulted southern boundary where a reverse dip-slip post-mineral South Wall Fault truncates the Iolanthe, Bluff and Johnson vein packages. The footwall off set of these veins are postulated to be dropped 250-300m along this structure.

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Fig. 2 - Targets shown on a schematic cutaway section of the Mt Carbine Deposit

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Fig. 3 - Sections showing the planned drilling from the open pit with the red being existing resources and white are open space for additional resources

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Fig. 4 - Picture showing the continuity of the veining in open pit, tests are planned to follow some of these veins underground

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Fig. 5 - Targeted zones for drilling out inferred resources to indicated resources

EQR’s Chief Executive Officer, Mr Kevin MacNeill, commented: “Our exploration team has demonstrated past success and today there remains several open high-grade zones above 1% WO3. With this major program we aim to understand the extent of these zones as well as fast track an underground development that will potentially enable additional high-grade mineralization into our processing plant.”

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 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.

Competent Person’s Statements

EQ Resources’ exploration and resource work is being managed by Mr. Tony Bainbridge, AusIMM. Mr. Bainbridge is engaged as a contractor by the Company and is not "independent" within the meaning of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr. Bainbridge has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in JORC Code 2012. The technical information contained in this announcement relating exploration results are based on, and fairly represents, information compiled by Mr. Bainbridge.

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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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