Announcement PDF resourcing the new economy for a better tomorrow 28th August 2023 BROWNFIELD DISCOVERY AT RUBY AND EASTERN EXTENSION WITH DRILL TARGETS DEFINED EQ Resources Limited is the 100% owner of the Mt Carbine Tungsten Mine near Cairns, Australia’s leading primary tungsten producer. Highlights: - Exploration work towards the Eastern Extension of the Andy White Open Pit has uncovered a 20.8m @ 0.63% WO3 zone in trench sampling (east of Iron Duke fault) - EQR postulates that Eastern Extension could be the eastern offset of the main ore zone - Sampling at the Ruby Vein indicates that vein package extends for over 350m to the north of the pit - EQR commences reverse circulation drilling at both targets, with currently 20 holes planned as part of work program EQ Resources Limited (“EQR” or “the Company”) is pleased to announce significant discoveries around the Eastern Extension zone which has been defined by soil anomalies and confirmed by trench work with corresponding assays. Additional work at the Ruby Vein package also defined attractive drill targets. The Company plans to drill 6 shallow Reverse Circulation (“RC”) drill holes at the Eastern Extension area to determine the orientation and potential of this new high-grade zone. A further 14 holes will be drilled to outline the surface exposure of the Ruby Veins. Fig.1 - Soil Anomalies around Mt Carbine Open Pit; Red is known Inferred Resources; Updated Open Pit design shown for scale (in grey) 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 Eastern Extension The Eastern Extension of the main Mt Carbine deposit has been postulated since mid-2022 to be offset due to a large strike slip fault located on the eastern end of the deposit. Using the 250m offset observed in dyke offsets, the Company marked an area for testing this concept. Recent trenching of the area has shown subcrop of high-grade vein material and semi continuous chip samples produced the following results. From (m) To (m) Interval (m) % WO3 17.6 0.2 0.55 4.7 15 57 3.6 1.3 20.8 0.25 0.37 0.63 Trench 1 17.4 Trench 2 1.1 13.7 36.2 Table 1 - Summary of Trench Results (Full results in Appendix A); Large boulder of Wolframite taken from the trenches Fig.2 - Location of the two trenches and summary of results (grade shown in % WO3) Page 2 resourcing the new economy for a better tomorrow Ruby Vein The Ruby Vein forms the southern part of the Talis Vein Package within the Iron Duke Formation. The vein was previously ‘worked’ in a shallow slot pit during the 1800’s. The vein is located at the top of the Mt Carbine hill close to the planned BFS pit extent. In recent clean up works using excavators, this vein can now be traced for over 350m and is represented by 3 high-grade veins (30-50cm each) over a 3m wide interval. Recent channel sampling over the veins showed very encouraging results. This vein is part of the next vein package just outside the pit and EQR will be looking to establish whether it could be included in a further pit expansion to the north. Fig.3 - Plan & X-section of Ruby Vein; Location of samples indicated on map above (grade shown in % WO3); Full results in Appendix A Page 3 resourcing the new economy for a better tomorrow EQR’s Chief Executive Officer, Mr Kevin MacNeill, commented: “The Company is focused on looking for further mineralisation close to the pit. Both the Eastern Extension and the Ruby Veins are in close proximity to the pit and would have the most impact for future mining. The scale of these surface results would indicate major mineralisation potential and we look forward to drilling the zones in the coming weeks.” Released on authority of the Board by: Further Enquiries: Kevin MacNeill Chief Executive Officer Peter Taylor Investor Relations 0412 036 231 peter@nwrcommunications.com.au About the Company EQ Resources Limited is an ASX-listed company transforming its world-class tungsten assets at Mt Carbine in North Queensland; leveraging advanced technology, historical stockpiles and unexploited resource with the aim of being the preeminent tungsten producer in Australia. The Company also holds gold exploration licences in New South Wales. The Company aims to create shareholder value through the exploration and development of its current portfolio whilst continuing to evaluate corporate and exploration opportunities within the new economy and critical minerals sector. Competent Person’s Statement EQ Resources’ exploration and resource work is being managed by Mr. Tony Bainbridge, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. 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. 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. Follow us: Page 4 resourcing the new economy for a better tomorrow APPENDIX 1 – Trench Work / Channel Results Trench 1 No. From To Lithology SampleID % WO3 EQC001 0.0 0.8 Sandstone NS 0.000 EQC001 0.8 1.2 Quartz E10026 0.017 EQC001 1.2 6.9 Siltstone NS 0.000 EQC001 6.9 7.1 Volcanic NS 0.000 EQC001 7.1 7.3 Quartz E10027 0.024 EQC001 7.3 9.3 Volcanic NS 0.000 EQC001 9.3 10.8 Sandstone NS 0.000 EQC001 10.8 11.0 Quartz E10028 0.026 EQC001 11.0 13.7 Volcanic NS 0.000 EQC001 13.7 14.5 Volcanic E10029 0.051 EQC001 14.4 17.4 Volcanic NS 0.000 EQC001 17.4 17.6 Quartz E10030 0.547 EQC001 17.6 19.2 Sandstone NS 0.000 EQC001 19.2 20.2 Sandstone E10031 0.086 EQC001 20.2 24.8 Sandstone NS 0.000 EQC001 24.8 31.5 Volcanic NS 0.000 EQC001 31.5 32.5 Volcanic E10032 0.029 EQC001 32.5 32.9 Sandstone E10033 0.068 EQC001 32.9 33.9 Volcanic E10034 0.028 EQC001 33.9 51.8 Volcanic NS 0.000 No. From To Lithology SampleID % WO3 EQC002 0.0 0.5 Volcanic NS 0.000 EQC002 0.5 1.1 Quartz E10035 0.065 EQC002 1.1 1.7 Hornfels E10036 0.128 EQC002 1.7 2.7 Quartz E10037 0.316 EQC002 2.7 3.7 Quartz E10038 0.157 EQC002 3.7 4.7 Quartz E10039 0.334 EQC002 4.7 5.7 Volcanic E10040 0.055 EQC002 5.7 7.0 Volcanic NS 0.000 EQC002 7.0 7.4 Volcanic E10041 0.053 EQC002 7.4 8.5 Volcanic NS 0.000 EQC002 8.5 9.5 Volcanic E10042 0.069 EQC002 9.5 9.7 Quartz E10043 0.008 EQC002 9.7 10.7 Volcanic E10044 0.195 EQC002 10.7 12.8 Volcanic NS 0.000 EQC002 12.8 13.7 Volcanic E10045 0.072 EQC002 13.7 14.0 Quartz E10046 1.022 EQC002 14.0 15.0 Volcanic E10047 0.17 EQC002 15.0 17.8 Volcanic NS 0.000 Trench 2 Page 5 resourcing the new economy for a better tomorrow EQC002 17.8 18.7 Volcanic E10048 0.086 EQC002 18.7 19.2 Quartz E10049 0.409 EQC002 19.2 19.6 Volcanic E10050 0.139 EQC002 19.6 20.1 Quartz E10051 0.069 EQC002 20.1 20.7 Volcanic E10052 0.107 EQC002 20.7 22.2 Volcanic NS 0.000 EQC002 22.2 22.4 Quartz E10053 0.037 EQC002 22.4 24.5 Volcanic NS 0.000 EQC002 24.5 24.8 Quartz E10054 0.082 EQC002 24.8 26.3 Volcanic NS 0.000 EQC002 26.3 26.6 Quartz E10055 0.313 EQC002 26.6 27.8 Volcanic NS 0.000 EQC002 27.8 27.9 Quartz NS 0.000 EQC002 27.9 28.4 Volcanic NS 0.000 EQC002 28.4 28.5 Quartz NS 0.000 EQC002 28.5 30.9 Volcanic NS 0.000 EQC002 30.9 31.2 Quartz E10056 0.013 EQC002 31.2 36.2 Volcanic NS 0.000 EQC002 36.2 37.0 Quartz E10057 6.469 EQC002 37.0 37.6 Volcanic NS 0.000 EQC002 37.6 38.0 Quartz E10058 2.712 EQC002 38.0 38.4 Volcanic NS 0.000 EQC002 38.4 39.0 Quartz E10059 0.172 EQC002 39.0 41.0 Volcanic NS 0.000 EQC002 41.0 41.2 Quartz E10060 2.256 EQC002 41.2 46.8 Volcanic NS 0.000 EQC002 46.8 50.0 Siltstone NS 0.000 EQC002 50.0 55.9 Volcanic NS 0.000 EQC002 55.9 56.4 Quartz E10061 7.654 EQC002 56.4 57.0 Quartz E10062 4.232 EQC002 57.0 57.4 Quartz E10063 0.101 EQC002 57.4 61.8 Siltstone NS 0.000 EQC002 61.8 62.0 Quartz E10064 0.662 EQC002 62.0 64.5 Siltstone NS 0.000 EQC002 64.5 64.7 Quartz E10065 0.2 EQC002 64.7 65.2 Volcanic NS 0.000 EQC002 65.2 65.4 Quartz E10066 1.221 EQC002 65.4 66.3 Volcanic E10073 0.065 EQC002 66.3 66.6 Quartz E10067 0.038 EQC002 66.6 67.2 Volcanic NS 0.000 EQC002 67.2 67.6 Quartz E10068 0.039 EQC002 67.6 68.3 Volcanic E10072 0.134 EQC002 68.3 68.6 Quartz E10069 0.04 EQC002 68.6 68.9 Volcanic NS 0.000 Page 6 resourcing the new economy for a better tomorrow EQC002 68.9 69.2 Quartz E10070 0.617 EQC002 69.2 69.6 Volcanic NS EQC002 69.6 69.8 Quartz E10071 0.149 EQC002 69.8 77.3 Siltstone NS 0.000 Highlighted in green those assays included in intervals as per Fig.2 of main announcement. Ruby Vein sampling at regular intervals along the 350m strike exposure: No. E10003 Sample Type Float Sample Lithology Quartz Description (internal notes) 10cm Quartz vein w min % WO3 3.658 E10004 Selective Rock Chip Quartz Several mineralised Quartz vein 0.063 E10005 Selective Rock Chip Quartz 20cm mineralised Quartz vein 0.034 E10006 Selective Rock Chip Quartz 15cm Quartz vein outcrop 0.14 E10007 Selective Rock Chip Quartz Quartz vein 10cm 0.02 E10008 Selective Rock Chip Quartz Quartz vein to 15cm w Fe Ox tr W 0.012 E10009 Selective Rock Chip Quartz Quartz vein 20cm Fe ox w Wk W 0.957 E10010 Selective Rock Chip Quartz Quartz vein to 5cm 0.633 E10011 Selective Rock Chip Quartz Quartz vein 5cm 6.928 E10012 Selective Rock Chip Quartz Quartz to 20cm w Fe ox mod W 0.664 E10013 Selective Rock Chip Selective Dump E10015 Selective Dump E10016 Selective Rock Chip Quartz variable to 15cm w Fe ox minor W Fe alt metased? mottled maybe volcanic? test for scheelite Fe alt metased? maybe volcanic? test for scheelite Milky white Quartz w W 0.041 E10014 Quartz Metasediment Metasediment Quartz E10017 Selective Rock Chip Quartz 5cm torm/biotite alt vein 1.889 E10018 Selective Rock Chip Quartz Variable Quartz vein to 15cm w W 0.509 E10019 Selective Rock Chip Quartz Mineralised Quartz vein to 15cm 1.412 E10020 Selective Rock Chip Quartz Quartz vein to 15cm w Fe Ox and Tr W 3.645 E10021 Selective Rock Chip Quartz Quartz vein 3cm w tr W 0.353 E10022 Selective Rock Chip Quartz - 1.775 E10023 Selective Rock Chip Quartz Quartz vein, gossanous to 10cm mod W 2.252 E10024 Selective Rock Chip Quartz Quartz vein to 8cm w tr W 9.291 E10025 Selective Rock Chip Quartz Quartz vein to 5cm minor W 2.397 0.041 0.029 0.019 Page 7 resourcing the new economy for a better tomorrow JORC Table 1 – Exploration Results Section 1 - Sampling Techniques and Data Criteria Sampling techniques Drilling techniques Drill sample recovery Logging Explanation Commentary Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. The total length and percentage of the relevant intersections logged. Sampling was taken in bulldozed trenches that were cut down to bedrock. The sample locations were marked out using DGPS locator staff and sampling was taken as channel continuous sample of outcrop. The samples were logged for geology and alteration and zones with mineralisation marked out. The veins that host the mineralisation were clearly marked on mapping and interpreted to the nearest drill holes. The sample size of each channel sample was around 5kg and taken in a calico sample bag. The sample was weighed and dried before being crushed and split down to 200gms of fine powder (P80 – 200 mesh) N/A The samples were recorded on the maps and also on the digitial survey instrument (Texas DGPS). There does not appear to be any link between sample recovery and grade. Mapping occurred on outcrop within the trench and was mapped for alteration, geology, mineralisation and structure. The veins shown were measured for strike and continuity. Page 8 resourcing the new economy for a better tomorrow Criteria Explanation Commentary If core, whether cut or sawn and whether Sub-sampling quarter, half or all core taken. techniques and If non-core, whether riffled, tube sampled, sample rotary split, etc. and whether sampled wet preparation or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all subsampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and appropriateness of the Quality of assaying and laboratory procedures used assay data and and whether the technique is considered laboratory tests partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. The verification of significant intersections by Verification of either independent or alternative company sampling and personnel. assaying The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data The 5kg samples were crushed in Jaw initially and split at <5mm to get down to 1kg. Finer crushing then occurred until we could achieve a representative 500gm sample. This was pulverized in LM2 grinder and a subset of 200mesh powder of 200gm was split off. Approximately 10grams of this fine powder was then taken for assay internally using our own XRF analysis machine using full QAQC protocols. Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Data spacing Results. and distribution Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Whether the orientation of sampling achieves Orientation of unbiased sampling of possible structures data in relation The samples collected are representative and our QAQC sampling in comparison to ALS laboratories in Brisbane Australia resides with 2% of their results during checks. A calibration curve is regularly checked for consistency in our XRF machine. Location of data points The sample assay was taken with 10% of the samples in the batch were standards with known tungsten / Arsenic values. A further 10% blanks was inserted to ensure there was no carryover of sample nor any variance in the drift curve for the Thermofisher XRF machine. Sampling was undertaken by Joel Cullen who is a 15 year experience field geologist. The samples and methodology for these samples was also supervised by Tony Bainbridge as QP for the Mt Carbine Project. It can be verified the custody of the sample and that all QAQC was checked before these results have been reported here. Sample locations are shown in Figure 2. The sampling was taken across the strike of the veins and as such represent a true width to the mineralisation encountered. Sufficient sample Page 9 resourcing the new economy for a better tomorrow Criteria Explanation Commentary to geological structure and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The measures taken to ensure sample security. was taken to ensure a representative result in the assay. Sample security Audits or reviews The results of any audits or reviews of sampling techniques and data. The sample is taken to the Company’s internal laboratory on the same day as taken. The lab has a perimeter fence and secured during the night. No audit of the sampling has as yet been undertaken and it is planned to drill shallow percussion holes to validate this trench result. Section 2 - Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria Mineral tenement and land tenure status Exploration done by other parties Geology Explanation Commentary Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Acknowledgment and appraisal of exploration by other parties. The resource estimates reported herein are all within Mining Leases 4867 (358.5ha, expiry 31-07-2048) and 4919 (7.891ha, expiry 31-08-2049), held by Mt Carbine Quarries Pty Ltd. The Mining Leases lie within Brooklyn Grazing Homestead Perpetual Lease. Native Title has been extinguished in the Mining Leases by Deed of Grant. No previous examination of these results have been reported. Historical (1974-1987) mine records: A nearly complete record of mine production, including amounts of mined rock consigned to the LGS has been compiled using published and unpublished archives, including reporting for State Royalty returns. Deposit type, geological setting and style of mineralisation. The Deposit The Mt Carbine tungsten deposit is a sheeted quartz vein deposit. Many sub-parallel, sub-vertical quartz veins have been deposited in fractures developed in the host rocks metasediments in a zone that drilling and mapping of historical surface workings have shown to be approximately 300m wide and at least 1.4km long, trending at about 315 degrees. Grade Variation Sampling, drill core logging, geostatistical analysis of drill core assay data and mapping of the open pit have determined that all the material mined during the previous operation was mineralised to some extent and that the mineralogy of the deposit was uniform. There is little doubt that the mineralogy of Page 10 resourcing the new economy for a better tomorrow Criteria Explanation Commentary the stockpile material is identical to that mined and processed. The material in the stockpile comprises a single formation, the result of the alteration of Siluro-Devonian meta-sedimentary host rocks (Forsythe and Higgins, 1990). The amount of quartz veining varies within the mineralised zone and previous mining and exploration have been concentrated at the southeastern end of the mineralised zone. It is well understood that there are high-grade zones within the mineralisation in this part of the deposit and that the higher-grade zones are surrounded by lower grade mineralisation. Interpretation of recent drilling suggests that the main high-grade zone may plunge to the north of the present open pit. The previous mine assumption that quartz vein abundance is directly correlated with grade is not supported by an independent review of quartz vein abundance and grade. Drill hole Information Data aggregation methods Relationship between mineralisation A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated These relationships are particularly important in the reporting of Exploration Results. N/A The samples have been composited on a weighted average for the distance of each sample. No cut off grades were used. As the trench was at right angles to the vein direction it is likely these intervals reflect closely the true width of the zones. Page 11 resourcing the new economy for a better tomorrow Criteria Explanation widths and If the geometry of the mineralisation with intercept length respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). Appropriate maps and sections (with Diagrams scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Where comprehensive reporting of all Balanced Exploration Results is not practicable, reporting representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other substantive exploration data Further work Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Commentary Sample locations are shown in Figure 1. The trench is within the weathered surface layer of the deposit. Although no supergene mineralisation has been observed there could be differences between surface exposures and at depth. Although it would appear this is sub crop in the trench there is no guarantee that these samples are all in true bedrock. Some parts of the sample may be in loose D horizon with potential of transportation. All sample results collected have been reported including high and low intervals. N/A The company plans to drill using an RC rig for the top 50m around these veins to ensure they are outcrop and the mineralisation is not just something that has come off Mt Carbine Hill. Page 12