Announcement PDF EQ RESOURCES LIMITED Critical Mineral Producer Noosa Mining Conference July 19th, 2023 ASX : EQR Disclaimer Competent Person's Statement • The information in this presentation partly relates to the outcomes of the Mt Carbine Bankable Feasibility Study Update (May 2023), made available through the Company’s website www.eqresources.com.au/. • The Company confirms that it is not aware of any new information that materially affects the information included in the corresponding market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. General Disclaimer • The material contained in this document is a presentation of general information about the Company's activities current as at the date of this presentation. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. • This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of the Company. These forward-looking statements are based on estimates, projections and assumptions made by the Company about circumstances and events that have not yet taken place. Although the Company believes the forwardlooking statements to be reasonable, they are not certain. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond the Company's control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results). • The Company makes no representation or warranty as to the accuracy of any forward-looking statements in this document and undue reliance should not be placed upon such statements. • Forward-looking statements may be identified by words such as “aim”, “anticipate”, “assume”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “should”, “will”, or “would” or the negative of such terms or other similar expressions that are predictions of or otherwise indicate future events or trends. The forward-looking statements included in this document speak only as of the date of this document. The Company does not intend to update the forward-looking statements in this document in the future. 2 Consistent Board & Leadership Team Diverse and Experienced Board & Leadership Team Oliver Kleinhempel - Non-executive Chairman Zhui Pei Yeo - Non-executive Director Stephen Layton - Non-executive Director • Appointed Non-executive Director 12 August 2019 and Chair on 24 April 2020 • Appointed Non-executive November 2017 14 • Appointed Non-executive Director 12 August 2019 • Executive management experience in project development, finance and commodity trading sectors • +35 years’ experience in equity capital markets in UK and Australia • • Experience in both principal and director roles with a depth of knowledge in capital raisings, ASX listings and corporate advisory matters Has held executive, management and supervisory roles with a range of experience from project planning to resource management • Has been working at a leading system integrator in the telecommunications industry in South-East Asia • Currently an executive director of a steel-product manufacturer • Corporate experience includes Outotec, Ferrostaal Group and CRONIMET • Currently an executive director CRONIMET Holding GmbH of Richard Morrow - Non-Executive Director • Appointed as Non-Executive Director on 16 March 2021 • +30 years' experience as a sharebroker in Melbourne and in London, with a particular interest in the resources space. A long-serving Chairman of Melbourne Mining Club, Australia’s foremost networking organisation for the Australian resources sector. • Richard’s investment experience includes a role as director of Lowell Resources Fund Management, manager of the ASX-listed Lowell Resources Fund. He is a Fellow of the AusIMM and an honorary member of the AusIMM Investment Advisory Committee. • Director Currently non-executive director of Mithril Resources Limited, and previously a nonexecutive director on New Age Exploration Limited (both ASX listed) Kevin MacNeill - Chief Executive Officer • +33-year career dedicated to developing and leading mining projects globally EQR’s Chief Geologist, focusing on developing Mt Carbine’s underground resource to define & extract ‘King-Vein’ style mineralisation • Expertise in project development, mineral processing, specialty processing applications & mining waste processing Experience in tungsten projects in South Korea & Africa – including building, owning and managing a tungsten mining operation in South Korea • Expertise includes tungsten, gold, resource definition, mine exploration, feasibility studies, mine development, mine production efficiencies, and day-to-day operations • Currently director of Asia Intercept Mining Ltd and AMB Exploration Pty Ltd 3 • Appointed Interim-CEO & Senior Technical Advisor in May 2019 and permanent CEO in January 2020 • • • Tony Bainbridge - Chief Geologist Held Executive appointments as President of Etruscan Diamonds (part of TSX-listed Etruscan Resources) & founded Specialized Metallurgical Projects Pty Ltd Mt Carbine Mine: At Its Inflection Point of Value INCREASING MARKET CAP & NPV INCREASING SHARE PRICE 0,08 350 307 0,07 0,07 300 0,06 0,05 209 $AUD $AU Millions 250 200 0,04 131 150 ~100 100 50 24% 20 0,03 0,03 33% 100 50 0,05 0,02 0,01 15% 0,00 0 2021 Market Cap NPV %Of Market Cap 2022 2023 01/07/2021 01/07/2022 03/07/2023 2021 2022 2023 JULY yearly share price ✓. Why Tungsten? Tungsten is ranked by the British Geological Surveys, various US Departments, the European Commission, Japan, South Korea and Australia as a 'critical mineral’: - Due to its economic importance - Supply risk with >80% dominance of China in the market - Inability to be substituted in many applications Recently published draft EU Critical Minerals Act furthermore classifies Tungsten as a ‘strategic mineral’ (link) Dodd Frank Act (Art.1502) – tungsten, tin, tantalum & gold defined as ‘conflict mineral’ (wide ranging traceability obligations) as carbide compound hardest element after diamond Supply Risk at 3420OC highest melting point of all metals Australia-US ‘Climate, Critical Minerals & Clean Energy Transformation Compact’, defines Australian resources as “US domestic” source Economic Importance 5 Tungsten Uses Critical Alloy Element, Un-substitutable in many applications Aviation Aerospace Automotive Heavy Machinery Heavy Industry Tools & Construction Medical Military EV Battery Development Green Energy Science & Tech Micro Electronics 6 Why Tungsten? Distribution of End-Use (2022) Gloomy Supply Outlook for 2030 ITIA* forecasted average tungsten consumption growth 2020-2030: 2.9% p.a. / 33,400t W (approx. 3,340t W p.a. - equals >2x EQR each year). *International Tungsten Industry Association Significant deficit throughout 2030 Tungsten Price in US$ per mtu (mtu = 10kg) Stable post Covid price environment In all scenarios the tungsten market is in deficit from 2026 onwards, with an average forecast deficit of 11.5kt W by 2030 (equals ~8x EQR). Citic Securities (25 May): “Gap of supply and demand for tungsten in 2023, 2024, 2025 will be -2,594 tonnes, -2,642 tonnes, -2,449 tonnes.” 7 Mt Carbine Open-cut & Modernisation Project Overview Australia’s Only Primary Tungsten Producer Project Location Map • Situated in Far North Queensland’s Critical Mineral Province • Located 130 km north of the city of Cairns • Cluster Potential: Significant deposits defined in region. • Watershed Tungsten Project • Wolfram Camp Project 8 Noosa 2021 EQR Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia 9 Noosa 2022 EQR Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia 10 Noosa 2023 EQR Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia 11 Mt Carbine Blasts into Operation 3… 2… 1… Go!! Link Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia Mt Carbine Mine: At Its Inflection Point of Production Ramp Up Concentrate Tonnes* OC Mine Commenced June 2023 3000 – 6000T** 6000 Plant Processing Capacity* 0.33% WO3*** 3000 XRT Sorter Upgrade Power Upgrade Production Guidance 2021 1000 Pilot Sorter with Gravity Plant: Tailings + LGS (90/10) 240 – 360T Single Sorter with 24/7 crush & screen operation : Tailings + LGS Feed (70/30) Two Sorters with Early Works Plant Commissioned: LGS Only 900 – 1200T 500 – 750T 1Mtpa Processing Capacity 0.08% - 0.15% WO3*** 0.08% WO3*** 360ktpa processing Capacity 0.08% WO3*** 2021 *Basis 50% WO3 concentrate // **Based on new pit design // ***Actual / estimated feed grade 2023 - onward Compelling Economics Initial BFS already confirmed high margins, low capital intensity & operating cost and speed to market Comparison of Consolidated Project Economics Parameter Total Cash Cost (FCA) Unit BFS Pit Optimisation BFS Pit Optimisation (2022) (May 2023) US$/mtu 118 104 Capital Cost A$m 22.9 26.3* Pre-tax NPV8, real A$m 210* 307** NPV / Capex Ratio x 9.2 11.7 years 1.5 <1 Strip Ratio (Waste:Ore) 3.1:1 3.9:1 Concentrate Produced (t / 50% WO3) 30,960 38,570 Payback Period Indicative Tax Payable from BFS modelling is +/- $95 Million over the LOM * Capex has increased due to $7.7m added to double plant capacity (without this, capex forecast is lower than last BFS) • * * NPV shown as Project NPV; NPV attributable to EQR as 50% portion of Joint Venture Scope and 100% of additional ore recovered from Open Pit results to $270 million Notes: • The BFS has been prepared to a -20% to +20% level of accuracy. The production target and financial information in this table must be read in conjunction with the cautionary statement in the relevant ASX Release • AUD:USD average exchange rate of 0.688 over the life of project was used for currency conversions 14 Mt Carbine Phased Development Plan Focus: Open pit restart and processing facility modernisation BFS Scope / Implementation Ongoing Stage 1 Stage 2 Focus: Minimal capital expenditure, incremental improvements to increase the mine’s productivity and profitability focusing solely on the mining and processing of the Low-Grade Stockpile. Focus: Commencement of open pit mining. Crushing and screening plant and processing plant will be upgraded to further reduce operating costs and improve the tungsten recovery from the open pit high grade ore. Stage 1 Crushing and Screening Circuit Design Stage 2 Projected pit encompassing additional resource Stage 1 Crushing and Screening Circuit in production Stage 2 Crushing and Screening & Sorting Circuit Design 15 Mt Carbine Phased Development Plan Focus: Open pit restart and processing facility modernisation Stage 3 Focus: Underground Mining; >80% of current Mineral Resources are not in the Open Cut BFS but rather sit below the planned pit & in the Iron Duke Formation. A full scoping showed a longlife Underground Mine has potential and EQR should complete a PFS on this option. Stage 3 Projected additional underground resource 16 Grade Control Drilling Progress Grade Control Drilling Program Resource Model Comparison A’ Section JOHNSON ZONE JOHNSON ZONE A BLUFF ZONE BLUFF ZONE Completed Grade Control Drilling Completed Grade Control Drilling 250M Completed Grade Control Hole Grade Control Drilling Shapes Refer to: Mt Carbine Expansion Project Bankable Feasibility Study 2023 Economic Update - Link A to A’ Section 17 Grade Control vs Reserve Model Section showing Johnson Zone Results A Johnson Zone A’ Johnson Zone The above section shows the comparison on the first section. Johnson Zone (Zone 2) was a high-grade zone of 8m @ 0.48% WO3 in the model – Our infill drill results are shown above. 18 What We Care About Responsible and Sustainable Critical Mineral Production EQR 19 What We Care About Responsible and Sustainable Critical Mineral Production EQR 20 21 Strategically Aligned With Key Stakeholders Endorsement Through Funding & Grants Strong support for critical minerals projects in Australia Queensland METS Collaborative Projects Fund (METS Ignited) ASX Announcement 24 July 2020: Government Support for Mt Carbine Mine Waste Transformation Initiative Advanced Manufacturing Growth Center (AMGC) ASX Announcement 25 January 2022: Federal Government Co-Invests in High-Tech Ore Sorting Critical Minerals Accelerator Initiative (CMAI) ASX Announcement 19 September 2022: Federal Government Funding for Mt Carbine Reconfirmed 22 EQ RESOURCES: Australia’s leading primary tungsten producer WO3 Currently In Hard Rock Production De-Risked Increasing LOM 23 EQ RESOURCES: Australia’s leading primary tungsten producer Positive Market Conditions Genuine ESG Commitment Experienced Team & Staffing in Place 24 ASX:EQR Download this presentation: Follow us on Visit the EQ Resources stand and enter to Win a Tungsten cube valued at over $450! Follow us on Site Contact: Investor Relations: Kevin MacNeill Chief Executive Officer T: +61 438 542 260 E: kmacneill@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