Announcement PDF ` Half Year Report December 2025 Corporate Directory Directors Oliver Kleinhempel Non-executive Chairman Craig Bradshaw Managing Director Stephen Layton Non-executive Director Stephen Weir Non-executive Director Zhui Pei Yeo Non-executive Director Company Secretary Tony DiPietro Registered Office Suite 2, Level 11, 385 Melbourne, VIC, 3000 W : www.eqresources.com.au E : info@eqresources.com.au Principal Place of Business 6888 Mulligan Highway Mount Carbine QLD 4871PO Box 1496, Mareeba Qld 4880 Share Register Automic Pty Ltd Level 5 126 Philip Street Sydney NSW 2000 T : +61 (0)2 9698 5414 Auditors Nexia Melbourne Audit Pty Ltd Level 16, 600 Bourke Street Melbourne VIC 3000 T : +61 (0)3 8613 8888 F : +61 (0)3 8613 8800 Stock Exchange Listing Listed on the Australian Securities Exchange (ASX) ASX : EQR ACN: 115 009 106 ABN: 77 115 009 106 Investor Relations Peter Taylor NWR Communications T : +61 412 036 231 E : peter@nwrcommunications.com.au CONTENTS OPERATING & FINANCIAL REVIEW.................................................................................3 PRODUCTION SUMMARY................................................................................................................................4 Health and Safety..............................................................................................................................................5 Mt Carbine (Australia).........................................................................................................................................5 Barruecopardo (Spain) .......................................................................................................................................6 MT CARBINE OPERATIONS ............................................................................................................................7 Open Cut Mining.................................................................................................................................................7 Processing ..........................................................................................................................................................9 BARRUECOPARDO OPERATIONS ...............................................................................................................10 Open Cut Mining...............................................................................................................................................10 Processing ........................................................................................................................................................12 FINANCIAL AND CORPORATE .....................................................................................................................13 Leadership and corporate positioning ..............................................................................................................13 Funding and balance sheet strengthening .......................................................................................................13 Overview of funding initiatives ..........................................................................................................................13 Cash generation and financial momentum.......................................................................................................14 Tungsten Markets .............................................................................................................................................15 SUSTAINABILITY............................................................................................................................................16 EXPLORATION, RESERVES AND RESOURCES .........................................................................................17 Wolfram Camp, QLD ........................................................................................................................................17 Mineral Resources & Ore Reserves Estimates ................................................................................................18 Tenement Interests...........................................................................................................................................19 FINANCIALS .....................................................................................................................20 DIRECTORS’ REPORT....................................................................................................................................21 Directors............................................................................................................................................................21 Operating Results .............................................................................................................................................21 Review of Operations .......................................................................................................................................21 Auditor’s Independence Declaration.................................................................................................................21 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .........22 CONSOLIDATED STATEMENT OF FINANCIAL POSITION .........................................................................23 CONSOLIDATED STATEMENT OF CASH FLOWS ......................................................................................24 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY..........................................................................25 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...................................................................26 1. SUMMARY OF MATERIAL ACCOUNTING INFORMATION ......................................................26 2. REVENUE AND OTHER INCOME ..............................................................................................27 3. FAIR VALUE REVALUATION OF FINANCIAL LIABILITIES.......................................................28 4. INVENTORY ................................................................................................................................28 5. FINANCIAL ASSETS ...................................................................................................................29 6. TRADE AND OTHER RECEIVABLES.........................................................................................29 7. RECEIVABLES ............................................................................................................................30 8. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE ...........................................30 9. EMPLOYEE BENEFITS...............................................................................................................30 10. TRADE AND OTHER PAYABLES...............................................................................................31 11. ISSUED CAPITAL........................................................................................................................31 12. CONVERTIBLE NOTES ..............................................................................................................32 13. CONTINGENT LIABILITIES.........................................................................................................33 14. BORROWINGS............................................................................................................................34 15. EQUIPMENT LEASES.................................................................................................................35 16. FINANCIAL LIABILITIES..............................................................................................................35 17. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS.................................................36 18. OPERATING SEGMENTS...........................................................................................................36 19. SUBSEQUENT EVENTS.............................................................................................................37 DIRECTORS’ DECLARATION ........................................................................................................................38 AUDITOR’S INDEPENDENCE DECLARATION.............................................................................................39 INDEPENDENT AUDITOR’S REVIEW............................................................................................................40 FORWARD LOOKING STATEMENTS............................................................................................................41 OPERATING & FINANCIAL REVIEW Production Summary Operations Mt Carbine Barruecopardo EQR Group Unit H2 FY2025 H1 FY2026 H2 FY2025 H1 FY2026 H2 FY2025 H1 FY2026 Material Blasted t 817,689 1,081,877 3,123,966 4,014,258 3,941,655 5,096,134 Total Tonnes Mined t 1,117,724 888,640 3,006,265 3,794,498 4,123,989 4,683,138 Waste Mined t 862,219 832,058 2,422,007 3,079,275 3,284,226 3,911,333 Ore Mined t 255,505 56,583 584,258 715,223 839,763 771,806 Strip Ratio W:O 3.4 : 1 14.7 : 1 4.1 : 1 4.3 : 1 3.9 : 1 5.1 : 1 Closing Ore Stock - Rom t 12,384 70,236 209,567 250,715 221,951 320,951 Closing Ore Stock - LGS t 9,483,819 9,393,566 9,483,819 9,393,566 Crushing Plant Feed t 322,566 273,474 748,378 803,150 1,070,944 1,076,624 Gravity Plant Feed t 106,507 111,184 451,860 484,230 558,367 595,414 Gravity Plant Grade % 0.182% 0.130% 0.224% 0.206% - - Recovery % 76% 73% 57% 57% - - WO3 Produced* mtu 13,711 10,493 57,809 56,633 71,519 67,126 *Note: Metric Tonnes Unit, 1 mtu = 10kg WO3 During the 6-month period ending 31 December 2025, the consolidated EQR Group produced 67,126 mtu of tungsten concentrate (Mt Carbine 10,493 mtu; Saloro 56,633 mtu), with 4.68 million total tonnes mined (Mt Carbine 0.89 million tonnes; Saloro 3.79 million tonnes) reflecting a decrease of 6% in total mtus produced, but a 14% increase in tonnes mined compared to the previous Half Financial Year (H2 FY2025). The decrease in production was largely driven by the transition to the processing of low-grade stockpile material at the Mt Carbine mine whilst the company sought additional funds to progress the stripping of the south-west wall to unlock access to the high-grade Iolanthe Vein. Barruecopardo mine performed well throughout the period, increasing its total tonnes moved by 26% compared to the prior period. This performance was offset in final production by a lower gravity plant head grade. A third ore sorter was installed and commissioned increasing Barruecopardo mines’ processing capacity that is expected to enable improved recovery performance. Health and Safety Mt Carbine (Australia) Safety performance remained a strong operational focus at Mt Carbine throughout the first half of the Financial Year 2026 (H1FY26), supported by continued reinforcement of site procedures, training and compliance initiatives. Workforce participation in frontline risk management remained strong. A combined 10,315 “Take 5” safety assessments were completed and 26 toolbox talks delivered across departments, covering operational, equipment and environmental risk. Training activities progressed during the period, including verification of competencies for mobile equipment operation, site-specific inductions and refresher training for operational personnel. Safety monitoring and verification activities continued through H1FY26 in line with safety management plans, including 9,495 alcohol tests and eight post-incident drug tests. Environmental management and water stewardship remained a key focus in preparation for the transition to wet crushing and screening operations. This included dam water-level monitoring, pit dewatering and pipeline installation. Water recycling infrastructure works progressed to support higher processing rates, while maintaining compliance with environmental approvals and site operating conditions. Barruecopardo (Spain) At Barruecopardo, the operations maintained a strong focus on safety performance and workforce engagement during the half-year. Accident and incident frequency rates remained stable and well below Spanish mining sector benchmarks. Lead indicators participation remained high, with 3,228 “Take 5” risk assessments completed across the period, supported by ongoing toolbox talks and regular, targeted safety training, including nine new employee inductions. Occupational hygiene and dust management remained a priority. Joint inspections were undertaken with the National Institute of Silicosis (INS) and monitoring of respirable crystalline silica exposure is ongoing. Additional on-site initiatives during the period included increased water spraying and procedural controls to further reduce dust exposure around the jaw crusher area, including remote-control operation practices where required. The team progressed specific risk controls discussed in site forums, including consideration of operator fatigue alert systems. Mt Carbine Operations Mt Carbine Mine Andy White Open Pit as of early January 2026. The Dazzler and Johnson veins systems can be seen on the north wall pit face. Open Cut Mining Mining at Mt Carbine in H1FY26 transitioned from a capital-constrained period to a funded execution phase, as the operation advanced the South Wall cutback and ramp development to re-establish access to Open Pit Stage II and the Iolanthe vein system. The half year marked a shift from an operational reset to sustained delivery, supported by improved fleet reliability, tighter execution planning and a return to 24/7 mining operations. Material movement increased considerably across the period, with the operation consistently exceeding 300,000 tonnes extracted per month and delivering ~0.89 Mt extracted for H1FY26. Activity remained predominantly focused on waste stripping to unlock ore access and safely reconfigure the pit ahead of Open Pit Stage II mining. Increased drill-and-blast throughput supported broken-stock resilience and higher sustained mining rates. December 2025 recorded multiple monthly all-time highs, including over 20,000 metres drilled, over 344,000 tonnes blasted and over 309,000 tonnes extracted. In H1FY26, stripping progressed through the 365–355 RL levels through a geotechnical fault, and ground support needing to be removed alongside critical maintenance, environmental compliance and site integrity works as part of the reliability reset. Drill-and-blast discipline was strengthened through tighter scheduling and performance management to protect continuity and broken-stock availability. As mining rates increased in Q2, stripping and ramp construction accelerated through the 355–345 RL levels, supported by improved funding and higher equipment availability, delivering 906,604 tonnes blasted and 777,873 tonnes extracted. This advanced pit access to the 335 RL by the end of December 2025 and positioned the operation to reach targeted ore zones within Open Pit Stage II in the following quarter, underpinned by improved short-interval control and mid-term planning cadence to align drilling, blasting, loading and haulage. In parallel with South Wall advancement, mining also continued across the northern and eastern pit areas, including the Dazzler, Johnson and Wayback zones, to optimise equipment utilisation and maintain alignment with the long-term mine plan. Ongoing ramp development supported safer access, improved material flow and greater operating flexibility as the cutback progressed. Progress on the South Wall cutback materially reduced the remaining waste required to unlock the Iolanthe vein system within Open Pit Stage II. At the end of Q1FY26, ~1.34 Mt remained to be removed to unlock Open Pit Stage II ore; by the end of Q2FY26 this reduced to ~650,000 tonnes, with ~250,000 tonnes required for partial access, keeping the operation on track for first access to the higher-grade Iolanthe vein in Q3FY26. Geotechnical controls and water management remained key enablers of safe pit advancement, with ongoing ramp sequencing, bench development and dewatering supporting stable access and pit operating conditions. Mt Carbine Mine Andy White Open Pit facing Southeast. Progress on the Southern Wall in the Iolanthe vein system, the main orebody targeted in Stage II Pit 9 Processing Processing at Mt Carbine during H1FY26 remained constrained by both feed and water availability. Plant operations continued to rely largely on low- grade stockpile feed while mining activity focused on waste stripping and pit development to re- establish access to Stage II ore. As a result, the increase in mining activity during the half year did not yet translate directly into a comparable uplift in plant feed or concentrate production. Crushing performance lifted quarter-on-quarter, with material crushed increasing from 115,509 tonnes in Q1FY26 to 157,965 tonnes in Q2FY26, delivering a half-year total of 273,474 tonnes crushed for H1FY26. However, crushing production was moderated by operating the crushing circuit in dry mode, reflecting limited water availability and the operational priority to preserve available water for gravity plant processing. Ore sorting continued to form an important part of the processing strategy by upgrading feed grade to the downstream circuit and supporting overall plant efficiency. During H1FY26 the ore sorter plant processed 171,965 tonnes. While the throughput was limited by the crushing plant performance, the ore sorters’ contribution was supported by ongoing operational tuning and maintenance focus to improve availability and consistency, particularly as grade and moisture variability changed feed conditions. The gravity plant utilisation also improved, with feed increasing from 46,905 tonnes in Q1FY26 to 64,278 tonnes in Q2FY26, for a total of 111,183 tonnes processed through the circuit over H1FY26. This improvement reflects the progressive uplift in plant readiness as key maintenance and optimisation actions were executed. Metallurgical performance remained stable despite variability in feed characteristics. Recoveries were broadly consistent at 74% in Q1FY26 and 73% in Q2FY26, with the modest reduction primarily due to the lower average gravity plant feed grade (0.133% WO₃ in Q1FY26 vs 0.126% WO₃ in Q2FY26). This was driven by lower sorter product feed, normal quarter-to-quarter variability in low- grade stockpile feed and the low availability and grade of the open pit ore due to the thin-vein nature of ore being mined at the time. As stripping continues and access improves into Stage II ore zones, head grade is expected to improve progressively in line with the mine sequence. The gravity plant production remained modest as expected, with 10,493 mtu produced in H1FY26. Operationally, reliability and plant capability continued to improve as targeted maintenance and optimisation activities were progressed across the circuits, including sustained focus on key bottleneck assets (screens, crushers and gravity components) to support a more consistent operating rhythm. In parallel, the transition to wet crushing and screening by the end of December, with the return of the rain, helped position the plant for improved throughput for the next quarter. Installation of pumps, pipelines and cyclones progressed to deliver improved size control and processing throughput consistency as Stage II ore access is re-established and higher-quality ore becomes available. 10 Barruecopardo Operations Barruecopardo Mine Open Pit (Spain) at the end of December 2025. Open Cut Mining Mining at Barruecopardo recovered and ramped up through H1 FY2026 following a weak start to Q1FY26. Performance improved progressively through the half year as mining rates rebuilt, ore exposure improved and drill-and-blast delivery strengthened. Over H1 FY2026, total tonnes mined were ~3.79 Mt, comprising ~3.08 Mt of waste and ~0.72 Mt of ore, with total material blasted of ~4.01 Mt. In Q1FY26, mining progressed steadily in Phase 5, with waste movement of 1,042,410 tonnes and ore mined of 247,003 tonnes. Operational focus remained on maintaining consistent ore exposure while advancing pit development, particularly in areas where mineralisation occurs in narrow domains and requires disciplined grade control. Q2FY26 delivered a clear step-up in operating performance. Total tonnes mined were 2,505,085 tonnes, including 2,036,865 tonnes of waste and 468,220 tonnes of ore, with all-time record material blasted and extracted for the quarter as drill-and-blast delivery improved. Progress in Phases 6 and 7 during H1FY2026 was focused on mine development and access preparation. Works centred on bench formation, cutback progression and haul road/ramp development to support the next stages of ore extraction in the northern sector of the pit. While activity in these phases was predominantly development and waste movement, the presence of some ore in the upper portion of the orebody was consistent with the mine plan. Ore volumes and grades were modest at this stage, with mining focused on progressing access to deeper and more continuous ore zones. Collectively, these works improved pit access and operational flexibility and positioned the operation for continued mining progression through Phases 6 and 7 in the second half of FY26. 11 Stockpiles and blending were actively managed in the period to maintain stable plant feed. ROM stockpile systems and blending practices were adjusted as needed to align mine delivery with plant capability and concentrate shipment requirements. Barruecopardo Mine Open Pit, Northern Area. Reserve Block Model in Phase 6 and 7 showing early signs of access to ore zones Barruecopardo Mine Open Pit, Northern Area. Phase 6 at elevation 680 RL, including the access ramp and 670 RL bench, with ore stockpile and waste dump on 31 December 2025. 12 Processing Processing performance at Barruecopardo was mixed across H1FY26, with Q1 impacted by weaker operating performance before a marked improvement in Q2 as mining rates increased and plant reliability, sorter utilisation and feed management improved. Over H1FY26, crushing plant feed totalled 803,150 tonnes and gravity plant feed totalled 484,231 tonnes, with tungsten concentrate production of 56,633 mtu. During Q1FY26, the processing team focused on maintaining throughput despite reduced mining rates, which affected feed availability and grade. In parallel, the operation completed commissioning of a third TOMRA ore sorter in mid-August. The upgraded sorting configuration materially improved downstream feed quality towards the end of the quarter. Gravity feed grade increased from approximately 0.16% WO₃ to ~0.30% WO₃ on some shifts, while recoveries remained stable. Plant runtime also improved, reaching 94% in September, reflecting a more consistent operating profile as upgrades and circuit tuning progressed. Operationally, the site continued to execute targeted maintenance and performance improvements across the circuit, including work on multi-deck screens, mineral jigs, belt systems and hydraulics to improve availability and support recovery stability. Additional scavenging capacity was progressed to reduce tail grades and improve overall recovery once fully commissioned. The team focused on improving feed presentation to the sorters, progressing repairs and component replacements to lift gravity circuit performance, and resolving intermittent electrical issues on legacy sorting units. A key operational highlight during the half year was the achievement of several all-time monthly records in October 2025, including crushing throughput of over 161,000 tonnes, gravity throughput of over 85,000 tonnes, and record monthly concentrate production of 12,006 mtu. This performance demonstrated the plant’s production capability under favourable feed and operating conditions and provided an early indication of the benefit of plant optimisation and improved operating continuity. As a result, Q2FY26 delivered record quarterly crushing and sorting performance, with 469,666 tonnes crushed and 177,242 tonnes sorted, underpinned by improved crushing reliability and higher ore sorter utilisation. Recovery remained broadly consistent through the quarter, with variability driven primarily by head grade and ore characteristics rather than processing instability. Concentrate production in Q2FY26 was strong at 32,408 mtu (the second-best quarterly result on record), supported by improved size control and increased monthly output following recommissioning of the multi-deck screen. The operation further managed calendar-related production constraints, including agreement with the workforce to maintain plant operations through local festivities to reduce lost shifts and support December production targets. The tabling circuit was strengthened through the purchase of seven shaking tables, with commissioning targeted by the end of Q3FY26. 13 Financial and Corporate Leadership and corporate positioning During the half year, the Company continued to strengthen its leadership capability to support the next phase of growth across its Australian and Spanish tungsten operations. Craig Bradshaw was appointed Managing Director effective 1 October 2025, following his earlier role as a Non-Executive Director, bringing deep tungsten-sector operational and downstream experience. Funding and balance sheet strengthening During H1 FY26, EQR systematically strengthened the balance sheet and sourced sufficient funds to materially strengthen liquidity and simplify its balance sheet to support sustained operational ramp-up across the Group. This was achieved via: - Raising A$56.5m in additional capital (excluding Oaktree’ contributions to reduce the A$11.5m unsecured loan payable to them), - Entering an unsecured pre-royalty loan of A$11.5m which is currently in the process of being converted to equity, - Converting A$8.9m from debt to equity with the remaining A$7.25m of the unsecured Oaktree pre-royalty loan conversion to be approved by Shareholders at the Extraordinary General Meeting (EGM) on 16 March 2026, - Reducing the debt owed by Saloro S.R.L (EQR’s 100% owned subsidiary in Spain) by €3.5m with a further €1.5m reduction in February 2026, and - Entering a binding term sheet to refinance €15m of the outstanding debt owed by Saloro S.R.L. The completion of this refinancing occurred in February 2026. Overview of funding initiatives In Q1FY2026, EQR completed a staged equity funding program, comprising A$4.0 million raised in July 2025 (114.3 million shares at A$0.035, ASX Announcement 7 July 2025: EQR Successful A$4.0 Million Placement) followed by a A$22.5 million institutional placement in September 2025 (703.1 million shares at A$0.032, ASX Announcement 3 September 2025: EQR Announces Successful A$22.5M institutional Placement). In Q2FY2026, EQR completed a A$34 million equity raising via the issue of 680 million new ordinary shares at A$0.05 per share, enabling a balance-sheet reset and funding to finalise the waste removal at Mt Carbine to access the high-grade ore in the Iolanthe Vein. As part of the same program, Oaktree agreed (subject to shareholder approval) to convert the remaining ~A$7.25 million balance of its pre-royalty loan into equity at the same issue price, and the Company stated that, following this conversion, the previously proposed royalty arrangement would be terminated—effectively 14 resolving the remaining pre-royalty balance through conversion rather than cash repayment. ASX Announcement 5 December 2025: EQR Successfully Undertakes A$34M Equity Raising In parallel with equity funding, EQR progressed refinancing actions to reduce near-term maturities and improve overall liquidity. EQR disclosed that its Spanish subsidiary had €15m due in December 2025 and €5m due in January 2026, supported by Oaktree letters of guarantee, and that discussions and term sheets were progressing (including repayment of €3.5m from available cash) while due diligence continued toward binding outcomes. ASX Announcement 27 November 2025: Update on Refinancing Spanish Debt This progressed into a binding refinancing pathway during Q2FY2026, with EQR entering a binding term sheet for a €15 million, three-year prepayment facility with Traxys Europe S.A. The facility is to be repaid via set-off against monthly tungsten concentrate deliveries, carries interest at EURIBOR + 5.5%, and includes a six-month principal grace period. The prepayment financing is paired with agreed commercial terms for a five-year, index-priced offtake covering a minimum of 3,500 tonnes of WO₃ contained in concentrate, aligning funding with production while providing longer-dated sales certainty. ASX Announcement 9 December 2025: EQR Enters Into Binding Term Sheet for a €15M Prepayment Facility Cash generation and financial momentum A key achievement for the Company was the return to positive operating cash flow at a Group level in the second quarter, reflecting stronger sales receipts and improved operational performance, particularly in Spain. For the quarter ended 31 December 2025, EQR reported positive cash flow from operations of A$1.15 million for the Group, driven by A$14.2 million generated from the Barruecopardo Mine. Cash receipts from sales increased 49% to A$21.8 million, and cash on hand at 31 December 2025 was A$22 million, with a further A$3.2 million available via existing debt facilities. The Company also reported a material improvement in liabilities in the quarter, with current liabilities reduced by A$24.45 million, including a €3.5m reduction in Spanish debt, complementing the Traxys refinancing pathway. 15 Tungsten Markets Tungsten market fundamentals kept strengthening across H1FY26, underpinned by tightening supply conditions and resilient demand in strategic end- marke