Announcement PDF EQ RESOURCES LTD Globally Significant Tungsten Producer Investor Briefing May 2025 AS X : E Q R Disclaimer 2 Board of Directors Strong capital markets, operations and industry backgrounds Craig Bradshaw - Non-executive Director Experienced global tungsten industry executive and former CEO of Masan High-Tech Materials, the operator of the Nui Phao Tungsten Mine and Processing Complex in Vietnam. Qualified CPA as well as a member of the Financial Services Institute of Australasia (FINSIA) and AusIMM. Oliver Kleinhempel - Executive Chairman Non-executive Chair since April 2020. Executive Chair since May 2025. Executive career in global resource industry, across project development, finance and commodity trading. Previous roles at Outotec, Ferrostaal Group, CRONIMET. Executive Director at CRONIMET Group. Stephen Weir - Non-executive Director Richard Morrow - Non-executive Director Representative Director of Oaktree Capital Management. Experience in corporate advisory, project finance, construction management. Former CEO of Magnetite Mines Ltd, Member of the Australian Institute of Company Directors, GBA Capital Advisory Board. 30+ years as a stockbroker, involved in resources sector. Former Chairman of the Melbourne Mining Club. Investment roles at Lowell Resources Fund Management; Fellow of AusIMM. Zhui Pei Yeo - Non-executive Director Background in executive management, project planning, resource management. Works in system integration in telecoms in SouthEast Asia. Executive director at a steel-product manufacturer. Stephen Layton - Non-executive Director 35+ years in equity capital markets in the UK and Australia. Experience in ASX listings and corporate advisory. Directorships at Mithril Resources & Pursuit Minerals. 3 Executive Management Team Experienced Leadership Team driving Operations in both Australia and Spain Kevin MacNeill - Chief Technical Officer (EQR Group) Former CEO (from January 2020), transitioned to CTO in April 2025. 35+ years in mining project development globally. Expertise in mineral processing, specifically tungsten. Past President of Etruscan Diamonds, founded Specialized Metallurgical Projects. Jonathan Kort - Chief Financial Officer (EQR Group) Experienced global executive whose career has spanned listed and private companies in resources and infrastructure. He was most recently Chief Development Officer and CFO at PanAust Limited. Chartered Accountant Australia and New Zealand and holder a Master of Science in Mineral Economics. Commences 1 June 2025 Evren Oeren - Chief Operating Officer (Saloro SLU) Alvaro Serrano - Chief Executive Officer (Saloro SLU) Experienced M.Sc. Mining Engineer and MBA with an academic background from globally renowned universities. Proven expertise from field operations to senior management, overseeing international mineral processing projects and leading multinational teams. 25+ years as senior financial roles in in industrial companies, mainly in pharmaceutical, biomedical and mining industry. Degree in economics and business sciences and executive MBA. from the IE Business School. CFO roles across a number of leading Spanish and subsidiaries of multinational companies 4 Corporate Development Milestones Fast-track (re)development of Mt Carbine, efficient integration of Saloro and focused M&A 5 EQ Resources’ Flagship Operations Mt Carbine Open Pit & Processing Plants Historical mining assets as a source for critical minerals production Mt Carbine Open Pit & Processing Plants #1 #1 Tier 1 jurisdiction producing tungsten assets, with similar characteristics: ✓ Similar mineralogy: Both are hosted in sheeted quartz ✓ Complementary geology: Granite (Barruecopardo) and Metasediments (Mt Carbine) ✓ Identical mining method: Open pit blast plus truck and excavator - similar fleet ✓ Similar processing: Crushing, screening, XRT sorting, jigs and tables; Saloro incorporates flotation and mag.sep.cleanup, due to mineral composition ✓ Synergy in marketing: Both supplying the same end customers ✓ Both operating adjacent to world renowned National Parks (strong ESG credential) ✓ Organizational and significant technical synergies (comparable operational output) 6 EQR Business Update Year-to-Date 2025 Operations Saloro • • Delivered second-highest output since acquisition; $2.1m cashflow (Mar’25 Q) Recoveries >60%, targeting ~70% with 3rd XRT Sorter (Sep’25 Q) Mt Carbine • Weather-impacted Mar’25 Q production (↓25.7% QoQ), significantly slow down in southwall stripping, but mined ore ↑47.8% QoQ • High-grade access expected Sep’25 Q; EBITDA inflection point in 1H FY26 Group Target • Deliver production uplift from Q1 FY26 as Saloro’s expanded ore sorting circuit and Mt Carbine’s Stage 2 Pit converge Funding & Capital • Successfully conducted Equity Raise in May • New US$124m offtake contracts with 5 top-tier global buyers (incl. significant prepayments) • Expansion: Application for debt + US grant (up to US$17m) to double Mt Carbine capacity (construction ready, long-lead items already at site) • M&A: Vietnam’s Tungsten Metals Group due diligence completed, legal documentation drafted Outlook • Saloro on track for record Sep’25 Q • Mt Carbine EBITDA uplift in 1H FY26 • FY26–27 earnings leverage on fixed cost base (driven by ore grade and plant debottlenecking) • Supported by rising APT prices, up 20% QoQ and 30% YoY 60,000 53,993 50,000 42,292 40,000 33,307 32,211 36,710 30,000 20,000 10,000 3,500 8,183 2,825 7,585 0 -10,000 MarQ'23 JunQ'23 SepQ'23 DecQ'23 MarQ'24 JunQ'24 SepQ'24 DecQ'24 MarQ'25 Saloro produced WO3 mtu Mt Carbine produced WO3 mtu Total EQR net equity WO3 mtu Rev less Opex A$'000 7 Saloro 2024 Turnaround Success Story Focus on XRT Ore Sorting & recovery enhancement / Long-term offtakes as funding opportunities • Saloro operations transitioned under EQR’s management in mid-January 2024, followed by a detailed metallurgical assessment throughout Q1 2024 to identify immediate improvement opportunities. • Quick wins were implemented, delivering first positive impacts by February/March 2024, with a focus on recovery enhancement and operational efficiencies. • In Q2 2024, major modifications to the production plant were successfully executed without any major stoppage in production, ensuring a seamless transition. • All planned changes were systematically implemented, with both tungsten recovery and overall output showing significant improvement in Q3 & Q4 2024. • Key production improvements stem from continuous personnel training, application of XRT Ore Sorting, and the addition of a fines recovery circuit, enhancing material separation and minimizing tailings losses. • Cash Positive within 9 months from Acquisition Cash breakeven @ $325/mtu (*) Cash breakeven @ $400/mtu (**) (*) Saloro delivered a record A$7.8m positive EBITDA (unaudited) in Q4-24 & Q1-25 quarters. Avg. 2024 price range (FastMarkets APT, CIF Rotterdam/Baltimore) (**) Spot price May 2025 (FastMarkets APT, CIF Rotterdam/Baltimore) 8 Saloro Project Profile - Technological Transformation XRT Ore Sorting as basis of Turnaround Program 9 Mt Carbine Transformation Re-development of historic Open Pit Mine in less than 5 years 2021 2022 2023 2024 10 Mt Carbine (Australia) Accelerating access to high-grade lolanthe vein package and ramping towards 450ktpm mining rate Ramp-up Status • • • Ore Block Model at current pit elevation (May 2025): Mining rate now consistently above 200ktpm Targeting 450ktpm by late CY2025 as final pre-strip unlocks Iolanthe high-grade ore South-wall stripping completed by Jun’25 Q; expected EBITDA inflection in 1H FY26 Current Operations • • Active stripping of south-wall to expose Iolanthe Vein Package (0.66% WO₃) RC confirmation drilling completed; high-grade zones now being prepared for extraction Plant & Expansion • • Proven plant performance; expanded capacity onsite and quick to connect • Up to US$17m in US Defense grant pending; Alternative: EXIM funding under application S E Doubling of throughput to commence SepQ–DecQ 2025 with secured debt + grant funding N 30,000 Cost Optimisation • • • Owner-operated mining achieving lower unit cost via increased scale Internalisation of drilling with 2x Sandvik rigs and 24/7 operations lowers $/t strip ratio Wider benches, larger blasts improving sequencing and recoveries Strategic Outlook • • • FY26: Higher ore grades + double capacity = margin expansion and cashflow uplift W 16,000 26,028 25,000 11,000 20,270 20,000 16,365 15,000 10,000 7,000 17,954 6,000 15,169 1,000 9,043 5,650 6,717 -4,000 5,000 FY27: Targeting concentrate output levels 2x current capacity Longer-term: Underground mining study underway to extend life and ore body depth access 0 MarQ'23 JunQ'23 SepQ'23 DecQ'23 MarQ'24 JunQ'24 SepQ'24 DecQ'24 MarQ'25 Mt Carbine produced WO3 mtu -9,000 EBITDA approx - Mt Carbine A$'000 Revenue - Mt Carbine A$'000 11 Mining - Blasting Sequence (May / June 2025) Currently Mining (Early May 2025) 7 2 3 4 6 Mining in May 2025 1 Mining in June 2025 5 8 9 0 335-325 RL as transition zone from low-grade to high-grade (confirmed by 2024 RC Drill Program) Pic.1 Pic.1: Resources Block Model showing an extract of the ore blocks in the ore body in the South-East (Section ‘0’ and ‘8’) below 335RL. Colours represent the grade of the ore. E S N W • Pink for high grade (>0.2% WO3). • Blue for low grade. (>0.08% - <0.2% WO3). 12 Mt Carbine Project Profile - Significant Resource Upside Long-term Development Targets Current Ore Reserves / Mine Planning covers only ~20% of the known Mineral Resources (JORC). 13 Value-add through Ecosystem Integration EQR developed a vast network within the global tungsten ecosystem, establishing win-win-relationships • EQR management team specialises in development of mines and supply of tungsten concentrates. • EQR has two producing mines, has rights to explore and develop Wolfram Camp with high potential assets nearby. • EQR assets located in Tier 1 jurisdictions in potential critical minerals clusters with a strong history of mining. • Elaborating opportunities for downstream processing through acquisition or strategic partnerships. Case study MASAN HIGH-TECH MATERIALS: ▪ Strategic Collaboration on commercial and technical basis (Masan currently 100% offtaker of Australian production of EQR) ▪ Joint development projects initiated for production enhancement at Saloro Case study ELMET TECHNOLOGIES: ▪ Strategic Collaboration on commercial basis (Elmet’s tungsten supply chain for western raw materials managed by EQR) ▪ Joint funding application with US Government Case study TUNGSTEN METALS GROUP: Ability to become the largest (integrated) tungsten supplier to end users outside of China. ▪ EQR exploring acquisition of Tungsten Metals Group, to integrate largest ferrotungsten smelter outside China into its portfolio ▪ Value-add EQR’s concentrate production and diversify customer & product portfolio 14 TMG Acquisition Progress Largest Ferrotungsten Plant outside of China (Capacity 4,000t FeW/a) Key Production Personnel • November 24 term sheet defined due diligence (DD) scope and fixed the enterprise value of A$13.5m • EQR completed main DD by end of March 25, with outstanding condition of production trial run of >200mt FeW, successfully performed throughout April 25 (EQR currently supporting sample testing by new customers) • Transaction required a restructuring of main TMG creditors, which had been addressed and principle understanding reached between all parties (EQR, TMG, main creditors) • Term sheet considered various compensation streams: • – Settlement of minor TMG creditors in cash (max. A$2.5m) – Compensation by EQR shares for current TMG shareholders – Compensation by EQR shares for current TMG convertible note holders Metal Tapping Slag Tapping Ore (left) vs FeW (right) Legal advice being finalized on optimized deal implementation structure (scheme of arrangements vs. off-market bid) 15 Tungsten Market Fundamentals Critical applications in key industrial sectors / Non-Substitution / Supply side constraint 2024 End-Use Sectors: Source: ITIA – Tungsten End-Use Analysis (2024), Demand distribution and Growth Contributors • Decades of expanding dependency on China resulted in a market where today 90% of tungsten raw materials originate from China and other non-transparent or conflict sources – including Russia, North-Korea and Central Africa. • Contrary to the “disturbing” supply balance, NAFTA, EU, Japan and South Korea alone stand for >50% of end-use demand for tungsten products. • Strategic industries (automotive, energy, aerospace, defense) continue to depend on tungsten, in addition to new applications in high-tech / high-growth sectors such as energy storage and semiconductors (e.g. nano tungsten oxide). • Declining output from Chinese mines and lack of new projects in Western markets will result in a severe shortage and further increasing geo-political competition around this critical raw material. 2024 Global Tungsten Supply Base: 83% 3% 2% US Defense Production Act (Title 3 - Funding eligibility) 3% 1% 3% 2% 2% 0% 0% Post: EQR applied US$17m DPA Title 3 Grant 0% 16 Geopolitics as Price Catalyst Policies in the US and China drive cost for tungsten products up • Export Control Measures put in place by China in February 25 on various tungsten products, as retaliation to the US tariffs on Chinese goods. • Chinese imports of Western tungsten raw materials up 100% in 2024, seen as an attempt to build strategic stockpile of the critical metal and thus undermine western tungsten consumers. • Chinese Government furthermore reduced mining quota for domestic producers by (-)6.5% for H1-2025, further signalling its preference to preserve domestic resources of critical minerals. EQR remains unhedged for its tungsten sales into the market and would fully benefit from further price increase. China Export Stop Source: FastMarkets – 12-month price chart (FastMarkets APT, CIF Rotterdam/Baltimore) 17 Near Term Milestones / Value Catalysts EQR – Corporate / M&A Results of TMG DD & final legals signed Q2 CY2025 Mt Carbine Completion of waste strip at south-wall (opening access to high-grade Iolanthe Vein Package at full width) Q3 CY2025 Doubling Plant Capacity implemented – with new funding partner(s) Q4 CY2025 / Q1 CY2026 BFS of underground mining option Q1 CY2026 Saloro 3rd XRT Sorter commissioning Q3 CY2025 Exploration program along strike Q4 CY2025 Wolfram Camp XRT Sorter trials completed and conclusion of study results Q3 CY2025 18 19 Corporate Contact: Investor Relations: Oliver Kleinhempel Executive Chairman T: +61 438 542 260 E: okleinhempel@eqresources.com.au Peter Taylor NWR Communications T: +61 412 036 231 E: peter@nwrcommunications.com.au Registered Office: Mt Carbine Office: Level 4, 100 Albert Road South Melbourne, VIC 3205 Australia E: info@eqresources.com.au 6888 Mulligan Highway, Mt Carbine Qld 4871 PO Box 1496, Mareeba Qld 4880 www.eqresources.com.au Follow us on