EQ RESOURCES LIMITED — Investor Presentation 2013

Feb 17, 2013

==> picture [720 x 89] intentionally omitted <==

==> picture [216 x 146] intentionally omitted <==

==> picture [364 x 264] intentionally omitted <==

Carbine Tungsten Limited (ASX: CNQ)

==> picture [180 x 89] intentionally omitted <==

Investor Presentation – February 2013

==> picture [99 x 162] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

DISCLAIMER

Forward Looking Statements

Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Carbine Tungsten Limited’s (CNQ) control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation.

Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements and intentions which speak only as at the date of the presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, CNQ does not undertake any obligation to publicly release any updates or revisions to any forward looking statements contained in this presentation, whether as a result of any change in CNQ’s expectations in relation to them, or any change in events, conditions or circumstances on which any such statement is based.

Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified.

Ore Reserves and Mineral Resources Reporting Requirements

As an Australian company with securities listed on the Australian Securities Exchange (“ASX”), CNQ is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia comply with the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) and that CNQ’s ore reserve and mineral resource estimates comply with the JORC Code.

Competent Person’s Statement

The information in this document relating to Exploration Results, Mineral Resources, Production Targets and Ore Reserves is based on information compiled by Dr Andrew White, who is a Fellow of the Australian Institute of Geoscientists and a Director of CNQ. Dr White has sufficient experience relevant to the style of mineralisation, mining and processing the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC code). Dr White consents to the inclusion of matters based on his information in the form and context in which it appears.

==> picture [99 x 162] intentionally omitted <==

==> picture [452 x 65] intentionally omitted <==

• Carbine Tungsten Limited (ASX: CNQ) is a Tungsten producer and project developer focusing on the Mt Carbine Project in Far North Queensland.

• Highly buoyant global Tungsten market with limited supply

• Has focused on tailings retreatment – currently producing approx. 1,500 mtu of high-grade tungsten concentrate per month.

==> picture [95 x 88] intentionally omitted <==

• CNQ’s current focus is securing permits and approvals to commence development of stockpiles and previous hard rock open pit mine (“The Hard Rock Project”)

==> picture [95 x 88] intentionally omitted <==

• Environmental Management Plan (“EMP”) and associated engineering works required with no requirement for Environmental Impact Study (“EIS”)

• Strong production upside through processing on-site stockpiles with 10+ year mine life potential - approvals expected in third quarter C2013

==> picture [95 x 83] intentionally omitted <==

• Adjacent brownfield hard rock exploration and development opportunity has potential to add significantly to resource base and mine life potential – approvals expected in fourth quarter C2013

• Feasibility study based on production of 21,800 mtu/month from the Hard Rock Project and Tailings Retreatment

==> picture [94 x 97] intentionally omitted <==

• Off-take agreements/partnerships with blue chip end-user Mitsubishi Unimetals Corp.

• Board & Management with significant experience in mine development and construction

==> picture [99 x 162] intentionally omitted <==

==> picture [405 x 67] intentionally omitted <==

Junior Diversified Exploration Company

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

Significant Mine Development Major Tungsten Producer

Pure Play Tungsten Company

==> picture [95 x 83] intentionally omitted <==

Tungsten Mining & Production Company

==> picture [94 x 97] intentionally omitted <==

==> picture [210 x 39] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [454 x 68] intentionally omitted <==

Tailings Re-Treatment		Hard Rock Stockpiles		Hard Rock Open Pit Mine
• Established CNQ in the market as a Tungsten producer. • Currently producing ~1,500 mtu of high-grade concentrate per month. • Supplying high grade Tungsten to off- take partner, Mitsubishi Unimetals Corp. • Further refinements planned to increase recovery and throughput. • Will continue to provide CNQ with revenue while the company focuses on the Hard Rock Project		• Commercial resource with a mine life potential of approximately 5 years • Will form immediate focus for CNQ while exploration activity progresses on Hard Rock Project • DEHP approvals expected in third quarter of C2013 • Will be used to rapidly meet increasing demand from off-take partners		• Large scale hard rock deposit previously mined for 13+ years producing a significant profit. • Higher grade material than stockpiles. • Has mine life potential of approximately 10 years. • Mining operation planned below existing open pit. • Approvals expected in fourth quarter C2013 • Drilling program planned on adjacent deposit ‘Iron Duke’ to extend potential resource base.

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

CNQ is making the transition from a tailings retreatment operator to focusing on the development of the Hard Rock Project and advanced exploration to extend the mine life.

	Capital Structure			Board of Directors Dr. Leon Pretorius Chairman Jim Morgan Managing Director/CEO Tony Gordon Non-Executive Director
	ASX Code CNQ
	Shares on Issue 275,962,719
	Market Cap ($) 20 million
	Share Price (52 week High/Low) $0.14 - $0.08
	Cash at Bank (At 31 December) ~ $1.02 million
	Debt Nil
	Shareholders 1,198
				Top Shareholders %
	Top 10 35.65%
		~~Dr L~~		Pretorius 11.55
		Mota Engil Minerals & Mining Investments BV 5.86
		Baglora Pty Ltd 4.16
		Neil Kenneth Watson and Margaret Helen Moroney 3.22
		Silva Pty Ltd 2.72

==> picture [99 x 162] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

==> picture [386 x 68] intentionally omitted <==

Dr Leon Pretorius – Chairman

Dr Pretorius has 41 years international mineral and mining experience. He has also been involved as a public Company director in Australia and overseas for more than 25 years and most recently in Australia prior to joining Icon's Board he was an Executive Director of Paladin Energy Limited and Managing Director of Deep Yellow Limited.

Jim Morgan – Chief Executive Officer, Managing Director

Mr Morgan has over 30 years of experience in the Australian and international mining and construction industries, most recently as General Manager - Project Development for ASXlisted Paladin Energy Ltd. Before joining Paladin, he held senior positions and played key roles in the mine development of Lafayette Mining Limited (Owner's Representative), Rapu Rapu mine in the Philippines and Ticor (Owner's Representative) at the Richards Bay mineral sands mining and titanium smelter project in South Africa.

Tony Gordon – Non-Executive Director

Mr Gordon has over 25 years experience in financial markets primarily stockbroking and has held directorships and senior management positions with a number of Australian stockbroking and financial services companies. Over this time his focus has been the listed resources sector. More recently Mr Gordon has provided advice to a number of Chinese, South East Asian and North American projects that are held by Australian Listed and un-listed entities. Mr Gordon is also currently CEO of Hanuman Investments Pty Limited.

==> picture [99 x 162] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

==> picture [422 x 65] intentionally omitted <==

• CNQ has launched a Share Purchase Plan (“SPP”) to raise $3 million

• $0.075 purchase price of new shares available to shareholders is an 18.5% discount to volume weighted average price (“VWAP”)

• Shareholders can subscribe for up to $15,000 of new shares

• Funding to be used to finalise permitting and approvals process required to advance the for Hard Rock Project to the development and construction execution phase

	SPP Schedule
Friday 1 February 2013	Record Date
Wednesday 13 February 2013	Documents mailed to Eligible Shareholders
Wednesday 13 February 2013	Offer under SPP opens
Wednesday 27 February 2013	Offer under SPP closes
Wednesday 6 March 2013	Issue of shares under the SPP
Wednesday 6 March 2013	Expected dispatch of holding statements and confirmation advices
Thursday 7 March 2013	Quotation of Shares on ASX

==> picture [472 x 55] intentionally omitted <==

==> picture [141 x 147] intentionally omitted <==

==> picture [125 x 132] intentionally omitted <==

• Strategic metal for modern industrialised manufacturing based economies.

• Few viable substitutes.

• Unique capability to maintain strength at high temperatures

• Estimated global consumption: 71,000t (virgin demand), 95,000t (incl scrap)

Uses of Tungsten include?

• High-strength, high-speed steel for cutting, stamping, casting tools, dies & rock/concrete drilling;

==> picture [125 x 126] intentionally omitted <==

• Alloy steel armour for military vehicles, warships and specialised armour piercing ammunition;

• High temperature coating materials in the construction of jet engines;

• Filaments for incandescent lamps; and

• Very specialised surgical instructions.

==> picture [214 x 139] intentionally omitted <==

==> picture [183 x 138] intentionally omitted <==

==> picture [94 x 95] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [520 x 65] intentionally omitted <==

==> picture [535 x 245] intentionally omitted <==

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

Russia 0
United States Europe
26
5 9 11
9
4 Japan
20 70
8 11
66
11
China
72 11
7 67
Cemented Carbides
Mill Products 28
Steels/Alloys 54
Other
11
Source: International Tungsten Industry Association 2011
----- End of picture text -----

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

China

United States of America

North America

==> picture [95 x 83] intentionally omitted <==

• Produces 80% of the world’s tungsten.

• Production not dedicated to domestic market.

• Domestic demand is approx. 20,000 MT per year.

• Domestic demand is overtaking supply.

  • 75% of this demand is imported while the balance is recovered domestically from recycling scrap.

• Generally sold to the highest bidder.

• Rapidly eliminating export subsidies.

• Asia becoming a major customer.

==> picture [94 x 97] intentionally omitted <==

• Approximately 50% of mines have closed - China cannot be considered an exporter of tungsten.

==> picture [99 x 162] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [491 x 67] intentionally omitted <==

==> picture [430 x 310] intentionally omitted <==

Major Phases

• Price Stabilisation 2006-2008

• Price Deterioration 2008-2009

• Price Increase 2010-2011

• Price Deterioration or Stabilisation? 2012-2013

==> picture [94 x 97] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [258 x 67] intentionally omitted <==

The mine is located 130km by sealed highway from the port of Cairns , and a 45 minute drive from Port Douglas.

==> picture [95 x 88] intentionally omitted <==

The northern face of the open pit mine is visible from the highway.

==> picture [95 x 88] intentionally omitted <==

==> picture [609 x 254] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

==> picture [573 x 59] intentionally omitted <==

• The Mt Carbine project mining leases cover approx. 367 hectares.

• Previous large scale, open cut mining operation – operated for 13+ years until 1987

• CNQ has detailed technical information from historical exploration and mining activity

• Supporting current and planned CNQ activity

• Transport infrastructure in place:

• The historical Mt Carbine tungsten mine is located 130km by sealed highway from the port of Cairns

• 45 minutes drive from Port Douglas

• CNQ currently producing high-grade Tungsten from tailings re-treatment operation

==> picture [328 x 203] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

==> picture [534 x 59] intentionally omitted <==

• CNQ has successfully established a Tailings Retreatment Plant recovering a high-grade wolframite/scheelite product.

• Tailings to support current operations for 2 years.

==> picture [284 x 202] intentionally omitted <==

• Existing resource base of approximately 2MT @ 0.1% WO3 in tailings Dam #4.

• Strong recoveries – approx. 50% of tungsten in feed.

• Off-take partner Mitsubishi Unimetals Corp. currently purchasing all product.

• Experienced CNQ technical team managing Tailings Retreatment Project.

Tailings Retreatment Plant

• Further optimisation planned for increased recovery and throughput.

==> picture [99 x 162] intentionally omitted <==

==> picture [401 x 68] intentionally omitted <==

==> picture [64 x 68] intentionally omitted <==

	Mt. Carbine Project Outline	Mt. Carbine Project Outline	• CNQ completed a feasibility study in July 2012 confirming the viability of the Mt Carbine Project. • Key outcomes confirm potential for: o Recommencement of mining operation below existing open pit. o Recovery and processing of ore from stockpiles. o X-Ray ore sorting process. o Simple gravity separation process.
	NPV	$161 million
	Resources
	Mine	47Mt @ 0.13% WO3
	Stockpile	12Mt @ 0.07% WO3
	Tailings	2Mt @ 0.1% WO3
	Reserves
	Mine	18Mt @ 0.14% WO3
	Rock feed rate	3 Mtpa
	Rock feed grade	0.12% WO3
	Ore sorted feed rate	350 ktpa
	Ore sorted feed grade	0.7% WO3
	Processing recovery	76%
	Production WO3	261,550 MTUpa
	Project capital	$55M
	Operating costs	137 $/MTU
	Budget sale price	290 $/MTU

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

o Recommencement of mining operation below existing open pit. o Recovery and processing of ore from stockpiles. o X-Ray ore sorting process. o Simple gravity separation process.

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [515 x 50] intentionally omitted <==

==> picture [194 x 134] intentionally omitted <==

• Former operations between 1972 and 1987 confirms operational viability.

==> picture [95 x 88] intentionally omitted <==

• CNQ has detailed data from past mining and processing activity.

• CNQ processing outlook aligned with previous operations.

==> picture [193 x 131] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

• Establishment of gravity plant will be improved version of historical plant.

==> picture [95 x 83] intentionally omitted <==

• Former mine site has in place:

• Transport infrastructure;

==> picture [193 x 130] intentionally omitted <==

• Plant foundations;

• Facilities;

• Power infrastructure.

==> picture [94 x 97] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [401 x 68] intentionally omitted <==

==> picture [64 x 68] intentionally omitted <==

• Commercial low-grade resource with a mine life potential of approximately 5 years.

• Minimal additional permitting/approvals required to commence processing.

==> picture [95 x 88] intentionally omitted <==

• DEHP approvals expected by the third quarter 2012.

• Objective is to process stockpile concurrently with ore from open pit.

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

Processing to rapidly increase production to meet strong demand from off-take partner.

==> picture [99 x 162] intentionally omitted <==

==> picture [401 x 68] intentionally omitted <==

==> picture [64 x 68] intentionally omitted <==

• Large scale open-cut mine operated successfully & profitably for over 13 years.

• DEHP approvals expected to be granted by third quarter of 2013.

==> picture [95 x 88] intentionally omitted <==

• Environmental Management Plan (“EMP”) and engineering works in progress.

• Contains higher grade material than the Hard Rock stockpiles.

• 10 year mine life.

==> picture [95 x 88] intentionally omitted <==

• Significant exploration upside – mineralisation remains open at depth.

• Low planned strip ratio.

==> picture [95 x 83] intentionally omitted <==

• Capital costs to be funded via off-take agreements with established tungsten producers.

==> picture [94 x 97] intentionally omitted <==

==> picture [94 x 12] intentionally omitted <==

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

Historical Open Pit
----- End of picture text -----

==> picture [99 x 162] intentionally omitted <==

==> picture [421 x 67] intentionally omitted <==

Crushing/Screening

- X Ray Sorting

==> picture [95 x 88] intentionally omitted <==

==> picture [58 x 38] intentionally omitted <==

==> picture [71 x 159] intentionally omitted <==

• Total feed of 3MTPA

• Easily assess average grade of rock

• Extensive testing of stockpile already undertaken

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

Product

Gravity Processing

• Fines

• • 76% overall recovery producing 65% concentrate

==> picture [58 x 38] intentionally omitted <==

==> picture [58 x 38] intentionally omitted <==

• Very high quality

• • Off-take agreements already in place

• Throughput capacity of 0.5MTPA

==> picture [94 x 97] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [435 x 67] intentionally omitted <==

• Transport – project site located within 250 metres of Mulligan Highway leading to Port Douglas and Cairns.

==> picture [95 x 88] intentionally omitted <==

• Port – Cairns Port located approximately 130km by road from site.

• Power - Access to grid power.

==> picture [95 x 88] intentionally omitted <==

• Water – Existing facilities expected to provide for planned operations.

• Labour – Surrounding cities and townships provide strong access to labour.

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [480 x 67] intentionally omitted <==

• Environmental Permit already in place for Tailings Retreatment operation.

• Construction and operating permit for stockpile processing already underway.

==> picture [95 x 88] intentionally omitted <==

• Additional permitting required for open pit operation – baseline studies currently underway:

• Environmental Management Plan required

• o Associated engineering studies required

==> picture [95 x 88] intentionally omitted <==

• Approval of required permits for processing of stockpiles expected by the third quarter in 2013.

==> picture [95 x 83] intentionally omitted <==

• Approval of required permits for commencement of operations at the former open pit mine site expected by the fourth quarter in 2013.

==> picture [94 x 97] intentionally omitted <==

==> picture [99 x 162] intentionally omitted <==

==> picture [280 x 54] intentionally omitted <==

Low Grade Stockpile processing 12 million ton (indicated resource) - feed 3mtpa / mill 800tph Permitting Process Permit for L/G Stockpile Processing - No EIS Required Engineering Procurement Long Lead Items Delivery PLANT CONSTRUCTION 10 month Use Water from Open Pit for Operation ~~COMMISSIONING~~ Dam Water Supply Relocate ~~RAMP UP Low Grade Stockpile Operation 4+ years~~ Hard Rock processing 47 million ton (18m indicated and 29m inferred recourse) - feed 3mtpa / mill 800tph Permitting Process Permit for Open Pit Processing Approval Date If EIS Required Drain Pit for Access Alternate Dam Water Supply Open Pit Mining Establishment Open Pit Operation - 3mtpa 10+ years ploration Projectsloration Projectsjectsects Exploration Activities Development Work on new deposits Iron Duke

Low Grade Stockpile processing 12 million ton (indicated resource) - feed 3mtpa / mill 800tph

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

Exploration Projectsloration Projectsjectsects

==> picture [99 x 162] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [94 x 97] intentionally omitted <==

==> picture [444 x 68] intentionally omitted <==

• CNQ making transition from tailings production to hard rock development and production company.

• Diversified asset base provides a range of low cost tungsten feed options.

• Combined assets to provide 14 years potential mine life on current resource estimates.

• Availability of historical data allows CNQ to optimise exploration and production activity.

• Blue chip off-take partner already in place – Mitsubishi Unimetals Corp.

• Immediate opportunity to increase production through stockpiles to meet increasing demand from off-takers.

• Low-cost mining and processing program.

• Initial Feasibility Study on Hard Rock Project already completed – significant NPV outlined.

• Advanced Hard Rock exploration projects present significant opportunity to increase potential resource base.

• Board and senior management have successful track record of bringing hard rock projects into production.

==> picture [99 x 162] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 88] intentionally omitted <==

==> picture [95 x 83] intentionally omitted <==

==> picture [205 x 55] intentionally omitted <==

Carbine Tungsten Limited

50 Scott Street, Bungalow, Cairns, Qld 4870 PO Box 1040, Bungalow, Queensland 4870 Email: info@carbinetungsten.com.au Website: www.carbinetungsten.com.au Phone: +61 (0)7 4052 8400 Fax: +61 (0)7 4052 8444

==> picture [94 x 97] intentionally omitted <==