EQ RESOURCES LIMITED — Interim / Quarterly Report 2011

Jan 30, 2012

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

Carbine Tungsten Limited

ABN 77 115 009 106	Quarter ended (“current quarter”)
77 115 009 106	31 December 2011

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – tenement security deposits - sundry income - R&D grant (net) NetOperating Cash Flows	Current quarter 31 December 2011 $A’000	Year to date (6 months) 31 December 2011 $A’000
	0 (613) (2,019) 0 (119) 0 60 0 0 6 11 0	0 (884) (2,019) 0 (283) 0 86 0 0 (11) 11 0
	(2,674)	(3,100)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	0 0 (693) 0 0 0 0 0 0	0 0 (1,518) 0 0 0 0 0 0
	(693)	(1,518)
	(3,367)	(4,618)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(3,367)	(4,618)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – share issue costs Net financing cash flows	200 0 0 0 0 (10)	7,140 0 0 0 0 (10)
	190	7,130
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(3,177) 6,064	2,512 375
	2,887	2,887

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
			33
			0
1.25 Explanation necessaryfor an understandingof the transactions 1.23 – Executive director salary, consulting fees and reimbursement of expenses paid to entities associated with directors at normal commercial rates. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest		Explanation necessaryfor an understandingof the transactions
		1.23 – Executive director salary, consulting fees and reimbursement of e associated with directors at normal commercial rates.	xpenses paid to entities
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	0	0
	0	0

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	166
	2,387
	0
	150
Total	2,703

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	101	33
	2,786	6,031
	0	0
	0	0
Total: cash at end of quarter(item 1.22)	2,887	6,064

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	EL 6648 EL 7725 EL 7726 EL 6620		100% 100% 100% 100%	Nil Nil Nil Nil

• See chapter 19 for defined terms.

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Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference+securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs,redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	215,802,149	215,802,149	Fully Paid	Fully Paid
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,260,870 400,000 1,500,000 450,000 950,000	0 0 0 0 0	Exercise price (cents) 45 30 35 15 20	Expiry date 30 Nov 2012 30 Nov 2012 30 Nov 2013 17 Nov 2014 17 Nov 2014
	0
	0
	0
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here:

___ Robert J Waring_

____ Date: 31 January 2012 ( ~~Director~~ /Company Secretary)

Print name: Robert J Waring

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Schedule of Tenements as at 27 January 2012

	Tenement Name		Number		Expiry	Comment
New South Wales
Tara		EL6532		Icon	14 Mar 2013
Queensland
ElizabethCreek		EPM14589		Cast Resources	4 Aug2013
“New Century”		EPMA15904 EPMA16228 EPMA16229 EPMA16230 EPMA16232		Troutstone
Burketown		EPM15368		Troutstone	1 Aug2011
Iron PotCreek		EPM17071		Icon	7Jul 2011
Constance Range		EPMA17895		Troutstone
Mt Carbine		ML 4867 ML 4919		Icon –Mineral Rights		Sub-Lease
MtCarbine Extended		EPM14871		Tungsten Resources	11 Dec 2012
Mt Holmes		EPM 14872		Tungsten Resources	12 Dec 2012
Tasmania
Henty Rd		EL47/2004		South Eastern Resources	10 Feb 2012

EL = exploration licence ELA = exploration licence application

EPM = exploration permit

EPMA = exploration permit application

• See chapter 19 for defined terms.

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