Announcement PDF resourcing the new economy for a better tomorrow 7 February 2024 SUPPLEMENT INFORMATION TO SALORO MRE (ASX ANNOUNCEMENT 01 FEBRUARY 2024) EQ Resources Ltd is a global tungsten producer with mining activities in Australia and Spain. Highlights: - A new JORC 2012 compliant Mineral Resource Estimate (“MRE”) has been compiled, updating Saloro’s historical resource statement. - 4.74M mtu* will be added to EQR’s resource inventory with the addition of the Saloro mining operation. - 78% of the Saloro MRE is in Indicated and Measured Category, giving great confidence to the longevity of the project. - Both Saloro and Mt Carbine currently have 10-year mine plans. - Updated geological modelling including nine (9) recent drill holes has highlighted excellent Exploration Potential at Saloro with a significant resource increase likely to occur with infill drilling. - Overall, EQR’s Indicated and Measured In-Situ Resources increase by 69%. - An Ore Reserve Statement is currently being compiled, supporting the update of the Saloro financial model, due by the end of the quarter. - For detailed information, please refer to the Full MRE Report on EQR Website (www.eqresources.com.au/site/invest-in-us/technical-reports). Resource Table Barruecopardo as of 2nd November, 2023 Resource Tonnes Orebody Classification (Mt) Category Tonnage (Mt) Measured In-Situ Measured Indicated Inferred Grand Total Grade (% WO3) WO3 (mtu) Mmtu Grade (WO 30.191 %) 10.05 1,920,400 Indicated 10.05 10.46 0.191 0.174 1,820,000 1.92 10.46 Inferred 3.86 0.174 0.259 1.82 999,300 3.86 Total 24.37 0.259 24.37 0.195 0.195 4,739,700 1.00 4.75 • Resource has been calculated using Normal Krigging Modelling • Variogram used a search engine of 75m strike x 75m depth x 10m width with a 85 0 dip to the south west. • No upper cut was used across the database. • A lower cut of 0.05% was determined as being a sensible lower cut based on economics • Assays were composited by weighted averages on 5m intervals to group together the narrow high grade zones into more consistent lenses for modelling. Table 1 - Barruecopardo Mineral Resource Estimate as of 9th of November 2023. All values are rounded to reflect confidence levels in the estimate. * Mtu = 10kg WO3 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 EQ Resources Limited (“EQR” or “the Company”) is pleased to provide supplementary information to the Saloro Resource Report based on the announcement ‘Saloro Adds 69% Of Measured And Indicated Resources To EQR’s In-Situ Resource Inventory’ dated February 1, 2024 with reference to new updates as required under Listing Rule 5.8.1. EQR’s Chief Executive Officer, Mr Kevin MacNeill, commented: “At the request of our stakeholders, we are pleased to provide supplement information to give a more complete summary of the JORC report that was published on the company’s website.” The Company announced an updated JORC 2012 compliant MRE for the Barruecopardo mine operated by Saloro S.L.U. in Spain. A total of 4.74M mtu will be added to EQR’s resource inventory with the addition of the Saloro mining operation. 78% of the Saloro MRE is in Indicated and Measured Category, giving great confidence to the longevity of the project. An Ore Reserve Statement is currently being compiled, supporting the update of the Saloro financial model, due by the end of the quarter. As a result, EQR’s Indicated and Measured In-Situ Resources increase by 69%. Geology The deposit sits within a differentiated granite complex that has been part of the Iberian Orogeny occurring during the Devonian age. The basement rocks of lower Ordovician Age are schists and greywackes and are represented in green in the geological map below. The pinks to orange reflect the phases of intrusive. Barruecopardo Tungsten Mine Fig. 1 - Regional Geological Map & detailed mine geology maps. Veins shown as strokes in red. Page 2 resourcing the new economy for a better tomorrow The mineralisation at site is represented by two main Tungsten minerals with 85%-90% represented as Scheelite (CaWO4) which is fluorescent under UV light and 10-15% as Wolframite ((Fe, Mn) WO4). Other abundant minerals are Quartz, muscovite, pyrite, chalcopyrite and arsenopyrite. Structure has been incorporated into the modelling with several competent hornfelse structural blocks are seen within a dominantly granitic host rock. Alterations assemblages from sericitic to potassic are observed with enrichment of the ore occurring in the structurally controlled sericitic zones where secondary remobilised scheelite is also observed. The mineralised veins are oriented along strike with a main orientation of NNE 1015º and usually range between 1mm and 10 cm of thickness. The following table shows the drilling completed at Barruecopardo with a total of 143 Diamond holes and 378 Recirculation Drilling (RC) holes. Total drilling at the site is 45,443m in 521 holes. Table 2 - Drill hole statistics Detailed logging procedures are in place with Rock Quality Designation (RQD) and recoveries being logged first, followed by the identification of Scheelite with the help of a handheld UV lamp and finally geological and structural logging. For the geology log the following features are recorded: lithology, alterations, mineralisation, structures and paying special attention for the presence of quartz veins. For those position, relative angle in respect to the drill core axis, and their thickness is recorded. In addition, observations of sulphides are annotated. Fig. 2 - Long section of the deposit (North on left) showing topography, the pit and drill holes. QAQC of subsampling stages QAQC samples have been added to the sample chain at a frequency of approximately 15%. Those include blanks, standards, and duplicates. See results plotted in below figure. Page 3 resourcing the new economy for a better tomorrow Fig. 3 - Plots of QAQC Results Resources The MRE has been recalculated from first principles using the latest geological interpretation and best practices as defined under the JORC 2012 Code. The MRE has been estimated by Independent Contractor Jorg Pohl (A Competent Person under the 2012 JORC code). The Saloro deposit (veins) was historically mined in a small open cut and underground by artisans in the 1900’s followed in 1970’s by a larger 8Mt pit open cut operation operated by Coto Minero Merladet. The current mining phase began in 2019 complemented by the installation of a new 2,500tpd processing plant. The recalculated MRE is as follows: Tonnes Resource Table BarruecopardoResource as of 2nd November, 2023 Orebody Classification (Mt) Grade (% WO3) Category Tonnage (Mt) Measured In-Situ Measured Indicated Inferred Grand Total Indicated 10.05 10.46 0.191 0.174 10.46 Inferred 3.860.174 0.259 3.86 Total 24.37 0.259 24.37 0.195 0.195 Grade 10.05 (WO 3%) 0.191 WO3 (mtu) Mmtu 1,920,400 1,820,000 1.92 1.82 999,300 1.00 4,739,700 4.75 • Resource has been calculated using Normal Krigging Modelling • Variogram used a search engine of 75m strike x 75m depth x 10m width with a 85 0 dip to the south west. • No upper cut was used across the database. • A lower cut of 0.05% was determined as being a sensible lower cut based on economics • Assays were composited by weighted averages on 5m intervals to group together the narrow high grade zones into more consistent lenses for modelling. Table 1 - Barruecopardo Mineral Resource Estimate as of 9th of November 2023. All values are rounded to reflect confidence levels in the estimate. Methodology The Barruecopardo MRE was based upon geological interpretation using drill section gelogical logs and detailed surface mapping to define 9 geological mineralized domains. The domains form hard boundaries to the ore resource shapes. Modelling of the grade and distribution of the resources within the domains was completed using Ordinary Kriging Methodology on block sizes of 6x6x5m (x-y-z), All drill hole assay data from Reverse Circulation and Diamond drilling was used. A lower grade of 0.05% WO3 was used, and no upper cuts as composited grade values showed good continuity. The new model is a rotated block model with orientation 15º NNE to align with the strike of the mineralised formation. Block size is 6x6x5m with a maximum sub blocking size allowed to 1.5x1.5x5m. Nine individual wireframes have been interpreted from the geological and the geochemical dataset with a predominant strike direction of 15º (domains 1, 2, 3, 4, 6) and 10º (domains 7, 8, 9). The Page 4 resourcing the new economy for a better tomorrow estimation takes place within those 9 wireframes using the latest available topography dated, June 2023. A common density value of 2.62 SG has been assigned to the entire rock mass below surface. Fig. 4 - Plans and Isometrics showing the resource categories of the deposit and their location. Variogram statistics reflect that the veins are continuous along strike for over 1.2km, have drilled extents over 300m vertical down to 420m RL from a surface of 750m and the individual ore zones are less than 20m widths. The veins continue through to surface outcrop and have been mapped and sampled in detail. A strike direction of 10º NNE is applied for veinlets at the north-western part of the main structure. For all structures a steep dip of +/-85º towards the ESE (+/-105º) has been observed. The classification of the current MRE was assigned according to a certain level of confidence into the data and geological knowledge, which depended on drill hole spacing, interpolation parameters used per pass and several QAQC kriging attributes, calculated during the ordinary kriging process. To gauge where the tungsten lies, the following swath plots highlight the distribution. Page 5 resourcing the new economy for a better tomorrow Fig. 5 - The Swath Plots show the distribution of tungsten along strike, being 1,200m in length. Fig. 6 - The Swath plot for width distribution shows the deposit occurs over 140m widths. Page 6 resourcing the new economy for a better tomorrow Fig. 7 - Elevation Distribution swath shows how the tungsten occurs from surface (725m RL) down to 505m RL which is a vertical distance of 220m. There does appear to also be narrow high-grade intervals below. Mining Methods The Barruecopardo mine has been mined by conventional open cut mining methods since 2019. The open cut follows a Geotech engineered 59-degree pit wall slope, which has proven to be stable. The prime mining fleet over the past 4 years has been 2 x Hitachi 1200 excavators and 10 x Caterpillar 75t trucks plus auxiliary equipment. The Competent Person was aware of all mine costs when considering the resource calculations and feels the resource has the potential to be mined under current circumstances. Reserves are being optimized by Mine Sense Consultants Group using a more complete set of parameters in its optimisation of Mine Reserves, for example tungsten price, tungsten recoveries, stripping ratio, etc... The reserves are planned to be released this quarter. Discussion The tungsten system remains open in strike and depth extents with 9 holes drilled in 2022 that indicate this continuation. The Exploration Potential of the resource could significantly increase the existing resource size with further infill drilling. The inclusion of Saloro resources of 4.74M mtu into EQR’s resource inventory will represent an increase of 49%. Current mine life at Saloro based on the current internal Pit 6 design is until 2033 with extensions possible giving EQR a clear, planned 10 years of production on both of its tungsten assets. Given the high proportion of Measured and Indicated Resources (78%), it is expected a significant amount of this resource will go into Ore Reserves. Page 7 resourcing the new economy for a better tomorrow Fig. 8 - Plans showing ore domains on left and grade in domains on right. Page 8 resourcing the new economy for a better tomorrow Fig. 9 - Sections A & B across the ore body showing block grades. Section markers are shown in Fig.2. Page 9 resourcing the new economy for a better tomorrow Fig.10 - Sections C & D across the ore body showing block grades. Section markers are shown in Fig.2. Page 10 resourcing the new economy for a better tomorrow Fig.11 - Current pit design with the 10-year Pit 6 expansion shown in grey. Fig.12 - View of Barruecopardo Open Pit looking west. Shows Pit 4 in pit floor and Pit 5 cut down. For detailed information, please refer to the Full MRE Report on EQR Website (www.eqresources.com.au/site/invest-in-us/technical-reports). Page 11 resourcing the new economy for a better tomorrow 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 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 mineralization 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 to resource estimation has been reviewed by Mr Bainbridge and fairly represents the information known. Mr Bainbridge has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information. The Mineral Resource Estimate linked in this document and available on the Company website has been prepared Mr Jorg Pohl (EurGeol. #1728 and MAusIMM) and reviewed by Mr. Bainbridge who has consented to the inclusion in this release of the matters based on his compiled information in the form and context in which it appears in this announcement. Mr Jorg Pohl has a long association with tungsten in Spain, working for over 10 years with the Iberian Granite Belt on various tungsten, tin, gold deposits and has had more than 4 years being involved with Barruecopardo Deposit directly. 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 12 resourcing the new economy for a better tomorrow JORC Code, 2012 Edition – Table 1 report Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques Nature and quality of sampling (eg 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. Saloro reverse circulation (RC) drill samples are collected over 1m intervals. Multiple methods were used to determine Tungsten mineralisation (WO3) intervals including visual analysis for quartz, originating from veins and UV fluorescense light analysis. Intervals identified to possibly contain tungsten mineralisation were selected and submitted for internal laboratory assay analysis. Saloro diamond drill (DD) core was sampled using 0.05-3.6m intervals in the mineralised zones, including areas of suspected internal low grade or waste. Since 2021 interceptions are between 0.5m and 1.4m, aiming for 1m intervals in addition to the mineralized interval, the sampling is extended 1 or 2m in the hanging and the foot wall of the interpreted mineralised zone. Half core was used for sampling, unless a duplicate sample was taken. In this case quarter core was used. Saloro blast hole sampling results have not been used for this resource estimation. 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 (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information. Drilling techniques Drill sample recovery No historic drill core or historic assay analysis prior to 2006 was used for this resource estimation. Standards and blanks are inserted into the sample stream to assess the accuracy, precision and methodology of the internal laboratory used. In addition, field duplicate samples are inserted to assess the variability of the WO3 mineralisation. Approximately 10-15% of all samples relate to quality control. In addition, the internal laboratory undertakes their own duplicate sampling as part of their internal QA/QC processes. Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy. Drill hole collar locations are surveyed by a qualified internal Saloro surveyor using standard differential GPS (GNSS) equipment TYPE Leica GS14 and tablet CS15, achieving sub decimeter accuracy in horizontal and vertical position. Down-hole surveys are only undertaken since September 2019. 27 DD holes (BD027 to BD053) using a Gyro (type Reflex). Measurements are taken every 5m down hole. Gyro measurements are not affected by magnetism, in addition no strongly magnetic rocks are present within the deposit which may affect magnetic based readings. RC drill samples are collected over 1m intervals and split on site, using a three-tier riffle splitter to provide an approximate 3-5kg sample. In rare cases, wet samples are split using a cone and quarter method. Samples are further split in the core shed using a small riffle splitter such that approximately 800g samples are generated and sent to the internal preparation laboratory. Here, samples are dried, fine crushed down to below 3mm, and pulverised with at least 85% of the sample passing 75µm. 30-50g of sample is separated to make a 10g pressed powder pellet for X-ray fluorescence (pppXRF). Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Saloro drilling comprised both DD, using HQ size with occasional PQ size in the top hole and RC drilling using a 140mm diameter face sampling hammer. Method of recording and assessing core and chip sample recoveries and results assessed. Saloro DD typically recorded overall core recoveries in excess of 90%, which is considered acceptable. For angled DD no oriented core was achieved. A selected number of short DD holes (BD001-BD027) were logged using an acoustic Televiewer for structural analysis. resourcing the new economy for a better tomorrow Criteria JORC Code explanation Commentary Saloro RC drill samples are collected over 1m intervals through a cyclone. Plastic sample bags are strapped to the cyclone to maximise sample recovery. Individual sample bags are not weighed to assess sample recovery, but a visual inspection is made by the Company geologist to ensure all samples are of approximately equivalent size. All inspections for recovery are considered as appropriate. Measures taken to maximise sample recovery and ensure representative nature of the samples. The DD drill rigs used face discharge bits to ensure a low contact between the rock and drilling fluids, minimising ore washing. Core was cut using a water saw with care taken to ensure minimal ore loss. The RC drilling rigs used suitably sized compressors to ensure dry samples where possible. Plastic sample bags are strapped to the cyclone to maximise sample recovery. Sample logs record whether the sample is dry, moist or wet. 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. Logging 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. To avoid any core flushing, the use of water in core recovery for DD is controlled. There is no known relationship between sample recovery and grade. The RC sample recoveries are of an acceptable level and no bias is expected from any sample losses. Saloro logging of DD core included recording descriptions of lithology intervals, which were then coded into the database. Saloro geotechnical logging of DD core included recording descriptions of integrity (recovery and RQD), materials (lithology, and alteration). Saloro structural logging of DD core included recording descriptions of structure type, structural angles, fracture intensity and infill type. Saloro geological logging of RC chip samples included recording descriptions of lithology, weathering, alteration, and mineralisation. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Geological logging is qualitative in nature. Saloro DD core boxes were photographed both dry and wet and photos are stored on the local server. The total length and percentage of the relevant intersections logged. All DD and RC drill holes are logged in full by the company geologists and written into a digital database in Excel format. Sub-sampling If core, whether cut or sawn and whether quarter, half or all techniques core taken. Saloro DD core was sampled using 0.05-3.6m intervals in the mineralised zones, including areas of internal low grade or waste. Average length of 96% of the samples is between 0.8-1m. In addition, the sampling was extended by 1 or 2m up and down hole from the interpreted mineralised zone. Half or quarter core was used for sampling. The remaining core is stored back in the respective core box. and sample preparation If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. Saloro RC drill samples were collected at 1m intervals. RC intervals were sampled by splitting dry samples in the field to 3-5kg using a three-tier riffle splitter. This sample was taken to the core shed, geologically logged and further split to 0.8-1kg using small riffle splitter. Where samples were wet, they were dried prior to spitting. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Saloro analytical samples are systematically prepared and analyzed in Saloro’s internal on-site laboratory. Samples were dried, fine crushed down to 70% below 3mm and pulverised with at least 85% of the sample passing 75µm. 10g of sample was used for analysis by pressed powder pellet XRF method. The XRF ppp method is considered appropriate for this style of Tungsten mineralisation. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Previous field tests have determined that the sample size and method of sampling produce representative RC samples. QA/QC procedures involve the use of standards, duplicates and blanks which are inserted into sample batches at a frequency of approximately 15-20%. 2 resourcing the new economy for a better tomorrow Criteria JORC Code explanation Commentary 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. Duplicate splits of RC samples are taken every 10m down hole within the sampled intervals. The results from these duplicates generally show acceptable repeatability. In some cases, indications of inhomogeneity were observed in a number of duplicates, mainly concerned are samples with grades below 0.05% WO3. 5% of the sample pulps are sent to an Umpire lab (ALS Loughrea). Results show good repeatability. The Tungsten mineralization occurs within quartz veins as coarse scheelite and to a minor content as wolframite minerals. Previous test work carried out by Saloro using different sample sizes has demonstrated that the selected sample size is appropriate. Whether sample sizes are appropriate to the grain size of the material being sampled. Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Saloro assayed samples for Tungsten using the XRF Fluorescence Spectrography method with pressed powder pellets. This analytical method reports total tungsten content. 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. No geophysical surface or downhole tools are used to achieve analytical grades. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. Standards (CRM certified reference material), blanks and duplicates were regularly inserted into the sample stream by Saloro, with approximately 15-20% of all samples related to quality control. The internal laboratory also used their own process of QA/QC inserting standards, pulp repeats, sample duplicates and blanks. Review of the Saloro quality control samples, as well as the internal laboratory quality QA/QC reports, has shown no sample preparation issues, acceptable levels of accuracy and precision and no bias in the analytical datasets. Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. Reported significant intersections have been checked and verified by Senior Geological management. In addition, selected significant intersections have been checked by the Independent CP. The use of twinned holes. Two twin holes have been drilled in the early stage of the development of the deposit, BAR0046bis and BAR056bis. Correlation between both is however challenging, as separation between holes is >7m at first mineralized intercepts. Probably as well due to the high nugget effect seen for the entire deposit and as well on DD hole duplicates. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. All primary data was recorded in templates designed by Saloro. Assay data from the internal laboratory is received in digital and downloaded directly into the Excel spreadsheet, managed by the company’s chief geologist. Data is entered into controlled excel templates for validation. Regular backups of all digital data are undertaken. These procedures are documented in an internal report (Core drilling – QAQC, May 2021) Location of data points Discuss any adjustment to assay data. Tungsten assay data is received from the internal laboratory as WO3 % and is imported as such into the database. Likewise with the three other analytical elements As, P and S. Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches,