EQ RESOURCES LIMITED — Investor Presentation 2017

Mar 8, 2017

Carbine Tungsten Limited

ASX Code: CNQ

Technology Battery & Speciality Metals

Lithium

Gold

Tungsten

Market Update March 2017

==> picture [109 x 80] intentionally omitted <==

==> picture [142 x 96] intentionally omitted <==

BOARD OF DIRECTORS

==> picture [127 x 120] intentionally omitted <==

Board Member Experience

Russell Krause, Non‐Executive Chairman

==> picture [89 x 96] intentionally omitted <==

Mr Krause was appointed Non‐executive Chairman on 30 June 2013 and has over 25 years’ Executive Management and Director level experience in a range of corporate advisory, stockbroking, and investment banking roles with some of Australia’s leading financial services firms. Mr Krause also has extensive experience in the resources sector providing equity capital markets, capital raising and corporate advisory services to a range of ASX listed mining and energy companies. Mr Krause is currently a Director of Austex Oil Limited (ASX:AOK), ELK Petroleum Limited (ASX:ELK) and Novus Capital Limited.

==> picture [89 x 104] intentionally omitted <==

Jim Morgan, CEO & Managing Director

Jim Morgan has over 30 years experience in the Australian and international mining and construction industries, most recently as General Manager ‐ Project Development for ASX‐listed 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.

Roland Nice, Non‐Executive Director

==> picture [89 x 96] intentionally omitted <==

Roland Nice is a metallurgical engineer with over 45 years experience. Mr Nice has a strong track record in mineral processing and metallurgy. Mr Nice has been the Principal of his consulting firm, R. W. Nice and Associates since 1995. Mr Nice has acted as consulting metallurgical engineer in the role of Senior Associate for Behre Dolbear Australia since 1996. For almost 20 years Mr Nice acted in a range of roles with Pancontinental Mining Limited. Mr Nice has a B.Sc (Metallurgical Engineering) from Queen’s University, Canada, and is a member of the Australian Institute of Engineers and the Canadian Institute for Mining, Metallurgy and Petroleum, and a fellow of the Australian Institute of Mining and Metallurgy and is a member of the Australasian Institute Of Minerals Valuers & Appraisers.

2

==> picture [142 x 96] intentionally omitted <==

CONSULTING GEOLOGISTS

==> picture [82 x 115] intentionally omitted <==

Dr Andrew White ‐ BSc (Hons, Geology) Uni Sydney, PhD UNE

5 years Shell Development, 13 years Comalco (Manager, Exploration), 3 years Poseidon Ltd (Manager, Minerals), 5 years Director, W H Bryan Mining Geology Research Center, UQ, 5 years Director/Chairman Icon Resources Ltd/Carbine Tungsten Limited, and independent geological consulting adding to 54 years' broad exploration, mining geology, mineral development and mining financial evaluation experience. Recipient President's Award, Aus IMM, 1998, author of “Management of Mineral Exploration”.

==> picture [82 x 115] intentionally omitted <==

Rado Jacob Rebek

Joined CRA Exploration in 1970. Worked in exploration for a range of commodities in all parts of Australia and Papua New Guinea. After CRA merged with RTZ, continued working in Rio Tinto Exploration, the last role being Exploration Director for South America, based in Santiago. Leader of field teams or exploration manager responsible for field teams that made discoveries of gold deposits such as Gold Ridge on Guadalcanal and Wafi‐Golpu in New Guinea, as well as Century zinc deposit . After retirement in 2003 worked for small – exploration companies and lead the field teams that made discoveries for example bauxite deposits of Australian Bauxite Ltd. Continues working in Chile – generating new exploration projects .

3

==> picture [142 x 96] intentionally omitted <==

WHERE ARE WE IN THE TYPICAL MINING

INVESTMENT CYCLE?

IS TRUMP THE NEW BOOM CATALYST – - ARE WE FIVE MINUTES TO BOOM TIME?

==> picture [127 x 120] intentionally omitted <==

Cash Takeovers

==> picture [123 x 50] intentionally omitted <==

New Floats (Small Companies)

==> picture [43 x 87] intentionally omitted <==

Mergers

Declining Exploration

==> picture [81 x 65] intentionally omitted <==

Crash

Rising Exploration People Leave Big Companies (Top $ Small Companies Short Careers) Paper Takeovers

New Floats (Big Companies)

Company Liquidations

4

==> picture [142 x 96] intentionally omitted <==

RESOURCE MARKET STATUS

Lithium

Copper

==> picture [127 x 120] intentionally omitted <==

==> picture [351 x 198] intentionally omitted <==

Gold

Iron Ore

5

==> picture [142 x 96] intentionally omitted <==

==> picture [127 x 120] intentionally omitted <==

• Tungsten

• Gold

• Lithium

• Technology

• Geology

• Project Development

• Speciality Metal Marketing

• ASX Publicly Listed Company – New Rules 20 Dec 2016

6

==> picture [142 x 96] intentionally omitted <==

COMPANY STRATEGY

==> picture [424 x 169] intentionally omitted <==

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

Major Resource
Companies
Too big to invest in small
to medium project
interests
----- End of picture text -----

==> picture [127 x 120] intentionally omitted <==

OPPORTUNITY FOR CNQ – SPECIALITY METALS, BATTERY METALS, NEW TECHNOLOGY, SMALL TO MEDIUM PROJECTS

==> picture [464 x 215] intentionally omitted <==

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

Projects too small to be
listed, difficult IPO’s and
diminished small cap
mining companies
(restricted by new ASX
Listing Rules, 20 Dec ‘16)
----- End of picture text -----

7

==> picture [127 x 120] intentionally omitted <==

==> picture [142 x 96] intentionally omitted <==

LITHIUM

==> picture [794 x 435] intentionally omitted <==

8

==> picture [142 x 95] intentionally omitted <==

LITHIUM

YMBOL LI (S )

• Previous main application in glass manufacture ~ $200/t lithium carbonate or direct shipping ore (>4.5% Li).

• Major growth potential in lithium batteries. Prices in China, according to Platts, soared to $25,000 per metric ton in 2016.

==> picture [127 x 120] intentionally omitted <==

==> picture [368 x 201] intentionally omitted <==

• The current upsurge in lithium exploration will undoubtedly show that the earth is awash with lithium.

STRATEGY

• Carbine’s is to itself as a low cost lithium our strategy position very producer, using key

• geological insights into the discovery of lithium brines.

• Carbine's link with the AXT process holds the potential to produce lithium metal directly from brines.

9

==> picture [142 x 95] intentionally omitted <==

LITHIUM

COMPETITIVE ADVANTAGE

==> picture [127 x 120] intentionally omitted <==

Intellectual property developed by Dr Andrew White and Rado Jacob Rebek constituting radical insights into geological habitat of lithium:

• Lithium brines occur in internal drainage basins in continental rifts, and the lithium is one of many metals introduced in solution into the basins as a consequence of rifting.

• Chile a continental rift of the encompasses right

• proportions, and yet is not recognised as such.

• Whilst Chile is a major producer of lithium from brines that occur in modern internal drainage basins in the Altiplano at elevations >3500m, the existence of lithium brines in geologically older basins at much lower altitude (750‐1000m) west of the Altiplano has not been tested.

• These older basins are mostly covered by desert dust, although they have produced nitrates, borates and salt (sodium chloride).

==> picture [234 x 152] intentionally omitted <==

==> picture [234 x 135] intentionally omitted <==

10

==> picture [142 x 95] intentionally omitted <==

LITHIUM

COMPETITIVE ADVANTAGE CONT…

• The older basins have several major logistical advantages:  Evaporation rates are higher for concentration of lithium brines to commercial grades.

• They are closer to modern infrastructure – power, sealed roads and ports.

EXPLORATION TARGET

A commercial lithium brine deposit in a favourable production environment.

STATUS

• Reconnaissance of Atacama Desert region, sampling of lithium salars as

• existing brine‐producing analytical benchmark.

• Applications lodged for 10 exploration concessions (30 square km) over two salars in Chile.

==> picture [127 x 120] intentionally omitted <==

==> picture [229 x 200] intentionally omitted <==

==> picture [229 x 226] intentionally omitted <==

11

==> picture [142 x 95] intentionally omitted <==

LITHIUM

WHY CHILE?

Chile contains 27% of the global reserves of lithium and contributes to more than 50% of the global production.

All major international miners active in Chile:

• BHP Billiton, Anglo American, Rio Tinto, Xstrata, Teck Cominco, Kinross, Phelps Dodge, Barrick Gold and Newmont.

Strategically positioned to service Asia and North America:

• Export orientated country.

• Good access to existing ports road and power.

• One of South America’s most stable and prosperous nations:

• Over 150 of with well defined years mining history mining

• and environmental regulations.

• Consistently one of Latin America’s fastest growing economies.

• Open market economy, high level of foreign trade and macro‐economic stability.

==> picture [127 x 120] intentionally omitted <==

==> picture [184 x 115] intentionally omitted <==

Chile’s national flag.

==> picture [184 x 234] intentionally omitted <==

Map showing Chile in relation to South America.

12

==> picture [142 x 95] intentionally omitted <==

LITHIUM

WHY CHILE CONT…

==> picture [307 x 183] intentionally omitted <==

Sources: KPMG Global Mining Institute (2014).

==> picture [307 x 182] intentionally omitted <==

Sources: Brook Hunt, Codelco and AON Group (2011).

==> picture [127 x 120] intentionally omitted <==

==> picture [307 x 183] intentionally omitted <==

Sources: KPMG Global Mining Institute (2014).

==> picture [307 x 183] intentionally omitted <==

Sources: KPMG Global Mining Institute (2014).

13

==> picture [142 x 95] intentionally omitted <==

LITHIUM

WHY CHILE CONT….

==> picture [127 x 120] intentionally omitted <==

Mining Regime

• Clear legislation and well‐established procedures.

• Favourable mining royalty regime.

• Chilean mining law permits:

• 100% foreign ownership.

• Legal protection of mining concessions.

• Concessions granted on a first come first serve basis.

• Independent judicial system.

• Clear foreign investment framework.

==> picture [239 x 180] intentionally omitted <==

Chile’s capital city, Santiago.

Knowledgeable Workforce

• La Serena School of Mines, access to high quality and knowledgeable workforce.

‐

.

Taxation Regime

• Individuals and companies pay 19% VAT on sales and services.

• Small mining companies subject to income tax at a fixed rate.

International Treaties

• Chile has International Treaties that to the a signed apply mining industry including

• double taxation treaty with Australia and nearly 90% of Chile’s trade is conducted within free trade agreements (KPMG Global Mining Institute).

14

==> picture [142 x 95] intentionally omitted <==

LITHIUM

EXPLORATION STRATEGY

==> picture [127 x 120] intentionally omitted <==

• Test existing applications for lithium brines by shallow (initially 10m) drilling.

• Continue prospecting reconnaissance to sample salars not already sampled.

• Anticipate applications for more ground.

• Expand drill testing and sampling with the intention to outline potentially commercial lithium brines within 12‐18 months depending on continued success as for shadowed by the initial reconnaissance.

2017 Budget	AUD$
Initial Shallow Drilling	120,000
Further Reconnaissance	100,000
Further Applications	40,000
Second Round of Shallow Drilling	120,000
Rent, Travel, Administration Costs	80,000
TOTAL	460,000

OUTCOME:

Delineation and substantial concession position on one or more lithium brine targets for sampling by deeper drilling (500m) in 2018.

TARGET:

Flow of significant announcements through 2017 regarding lithium sampling.

15

==> picture [71 x 48] intentionally omitted <==

Lithium Brine Project Chile – Proposed Timeline

==> picture [771 x 530] intentionally omitted <==

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

CNQ decision to diversify to other metals firstly lithium (brines)
CNQ focused to position the company as a very low cost lithium producer, using lithium brines deposits
Geological analysis of
potential brine lithium targets
CNQ Management Planning Meeting evaluated results and approved further investigation of lithium prospects in Chile
Proposal for surface exploration within Chile
Approval for surface exploration of targeted areas in Chile
Surface exploration
Analysis of
samples, review of
results
Concession application lodged by CNQ (low depth drilling)
Confirmation by authorities of CNQ application lodgement
Approval period -
approval expected in April-17
Receive required permits
Mobilise drilling contractor
Apply for additional government concessions
Drilling
Programme
Analysis of
drilling results
Announcement of drilling results
Apply for production concessions
Environmental Assessment
Commence Pilot of Trial Production
Production
Pilot
Analysis Pilot
test results
Announcement of
production test results 16
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
----- End of picture text -----

==> picture [142 x 95] intentionally omitted <==

GOLD

Carbine holds two tenements:

• Panama Hat 20km from Broken Hill; and

• Crow Mt 20km from Barraba, north western NSW.

Both logistically well situated.

Both subjected to substantial prior investigation by White and Rebek and comparison with other gold prospects, resulting in their selection as premier prospects.

==> picture [386 x 236] intentionally omitted <==

Above map shows maximum gold values obtained by rock chip or mineralised rocks by previous explorers on EL 8024.

==> picture [127 x 120] intentionally omitted <==

==> picture [310 x 450] intentionally omitted <==

Location of EL 6648, showing historical gold workings (yellow triangles) adjacent to the Peel Fault.

17

==> picture [142 x 95] intentionally omitted <==

EXPLORATION

GOLD

==> picture [127 x 120] intentionally omitted <==

TARGET:

>500,000 ounce open pit oxide gold at grades of 2‐3g/t.

STATUS:

• Previous drilling and sampling vindicates their selection.

• Fresh geological interpretations ready to be tested.

STRATEGY:

Confirmation of new geological interpretations by shallow (20m) drilling and rapid confirmation of resource potential. Assuming confirmation, expanded drilling to develop open pit resources in each tenement.

2017 Budget	AUD$
Drilling	120,000
Geology	80,000
Logistics (landowner compensation,
compliance, etc)	60,000
TOTAL	260,000

OUTCOME:

Continuous reporting stream of gold analyses through 2017.

Robust statement of exploration target by end 2017.

18

==> picture [142 x 96] intentionally omitted <==

MT CARBINE MINE ‐ OVERVIEW

==> picture [561 x 320] intentionally omitted <==

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

Mining Leases cover ~ 367 hectares
----- End of picture text -----

==> picture [127 x 120] intentionally omitted <==

Mt Carbine Mining Leases cover ~367 hectares.

The historical Mt Carbine tungsten mine is located 130km by sealed highway from the port of Cairns in North Queensland, Australia.

19

==> picture [127 x 120] intentionally omitted <==

TUNGSTEN.... INDUSTRIAL ENABLING METAL WITH STRATEGIC IMPORTANCE

==> picture [235 x 152] intentionally omitted <==

==> picture [247 x 150] intentionally omitted <==

==> picture [151 x 157] intentionally omitted <==

Aeronautical & Automobile Manufacturing

==> picture [244 x 159] intentionally omitted <==

==> picture [235 x 154] intentionally omitted <==

With a density of 19.25 g/cm3, tungsten is also among the heaviest metals.

==> picture [158 x 154] intentionally omitted <==

Rail & Heavy Earthmoving

==> picture [366 x 138] intentionally omitted <==

Highest melting point of all metals at 3,422 ± 15[o] C and a boiling point which corresponds approx. to the temperature of the sun’s surface, 5,700 ± 15[o] C .

Military & Mining

20

==> picture [142 x 95] intentionally omitted <==

TUNGSTEN MARKET

==> picture [127 x 120] intentionally omitted <==

The tungsten market has faced significant changes however:

• Geo-political situation

• favouring price increases.

• The West’s diminishing reliance on China.

==> picture [73 x 32] intentionally omitted <==

==> picture [78 x 19] intentionally omitted <==

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

APT European Prices
$210‐$217/mtu
----- End of picture text -----**

==> picture [106 x 64] intentionally omitted <==

Source: 2016 ITIA Conference, Stockholm

** SP Angel Report

21

==> picture [142 x 95] intentionally omitted <==

HARD ROCK STOCKPILE PROJECT

Project Ready Status Maintained

==> picture [127 x 120] intentionally omitted <==

• Funding: Technical due diligence phase of the funding negotiations with Mitsubishi RtMJ completed in April 2014. US$15 million secured loan (including prepayment fund of previous US$1 million loan) approved by Mitsubishi RtMJ Board in late September 2014.

Loan agreement to be finalised upon:

• completion of conditions precedent; and

• an improvement in tungsten market conditions.

• Off‐take: MoU in place with Mitsubishi for 80% off‐take of the stockpiles’ output.

• Environmental: Environmental Authority for EPML00956913 issued August 2013.

• Bonds and Permits: Plan of Operations (2015‐2016) approved by Department of Environment and Heritage Protection. Financial assurances in place.

==> picture [669 x 160] intentionally omitted <==

22

==> picture [127 x 120] intentionally omitted <==

==> picture [142 x 95] intentionally omitted <==

TUNGSTEN EXPLORATION POTENTIAL

MT CARBINE, QUEENSLAND

==> picture [375 x 457] intentionally omitted <==

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

Present mapped
extent of Iron
Low grade
Duke prospect
stockpile
6 holes in
Iron Duke
prospect
Tailings
Mt Carbine
village
Existing open pit
----- End of picture text -----

• Two prospects, Iron Duke and Petersen’s Lode, exist within EPM 14871 and 14872 and in the case of Iron Duke, the mining leases.

• These prospects are dominated by scheelite mineralisation.

• Mapping and sampling indicate both prospects have extensive strike length.

• Work is underway to prepare these prospects for exploration drilling.

• Maintaining project ready status.

2017 Budget	AUD$
Maintaining Permits & Licences	200,000
Exploration	60,000
TOTAL	260,000

23

==> picture [142 x 95] intentionally omitted <==

==> picture [127 x 120] intentionally omitted <==

NEW MINERAL PROCESSING TECHNOLOGY

==> picture [332 x 321] intentionally omitted <==

http://www.atomexchangetechnology.com/

24

==> picture [141 x 96] intentionally omitted <==

Corporate Overview

==> picture [127 x 120] intentionally omitted <==

**CAPITAL **	STRUCTURE
ASX Code	CNQ
Shares on Issue	418,876,418
Unlisted Options Expiry 12/11/17	8,000,000
Market Cap	~ $8.4 million
Share Price (52 Week High/Low)	$0.013 - $0.034
Debt (USD)	~ $180,000
R&D Tax Refund
(Historic 4 Year	~ $1.49 million p.a.
Annual Average )
Shareholders	~ 1,154
Top 10	43.65%

BOARD OF DIRECTORS
Russell Krause Non-Executive Chairman
Jim Morgan Managing Director/CEO
Roland Nice Non-Executive Director
MAJOR SHAREHOLDERS
BNP Pariba S Nominees Pty Ltd <Global Prime Omni	17.91%
DRP A/c>
Dr Leon Eugene Pretorius	8.59%
Mota Engil Minerals & Mining Investments BV	3.82%
Baglora Pty Ltd	3.78%
TBB NSW Pty Ltd	3.27%

25

==> picture [142 x 95] intentionally omitted <==

==> picture [127 x 120] intentionally omitted <==

Thank‐you

Carbine Tungsten Limited | ACN 115 009 106 | (ASX:CNQ) Level 2, 420 Collins Street, MELBOURNE VIC 3000 | PO Box 1496, MAREEBA QLD 4880 Telephone: +61 (0)3 8687 2176 ‐ Facsimile: +61 (0)7 4094 3036 www.carbinetungsten.com.au

==> picture [142 x 96] intentionally omitted <==

Forward Looking Statements

Disclaimer

==> picture [127 x 120] intentionally omitted <==

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 (“Carbine” or “the Company”) 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, Carbine 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 Carbine’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”), Carbine 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) and that Carbine’s ore reserve and mineral resource estimates comply with the JORC Code.

Competent Person’s Statement

The information in this document relating to Exploration Targets, 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 Consultant to Carbine. 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 2012 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 in this presentation. The potential quantity and grade of exploration targets is conceptual in nature. Where Exploration Targets are stated, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.