Announcement PDF INVESTOR UPDATE Webinar: Saloro Acquisition / Wolfram Camp Opportunities August 15th, 2023 ASX : EQR Disclaimer Competent Person's Statement • The information in this presentation relates to the most recent Company announcements, details are 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 Agenda WO3 Mt Carbine Project Update EQR Plan for Saloro Saloro Acquisition: Strategic Rationale Wolfram Camp: Tungsten Cluster Development Saloro Transaction Summary 3 Mt Carbine Project Update Ramp-up Discussion • Ramping up production in line with open pit ore output (130-150t of 50% WO3 concentrate forecast for August). • All plants are working well and holding recovery at +80% on open pit ore. • New XRT Ore Sorter (#3) has increased efficiency and run time on the sorting circuit. • Grade control systems in the open pit mining have been developed with reconciliations working well. 4 Agenda WO3 Mt Carbine Project Update EQR Plan for Saloro Saloro Acquisition: Strategic Rationale Wolfram Camp: Tungsten Cluster Development Saloro Transaction Summary 5 Strategic Rationale to expand to EU Tungsten Market at 3420OC highest melting point of all metals as carbide compound hardest element after diamond 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 application 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) Australia-US ‘Climate, Critical Minerals & Clean Energy Transformation Compact’, defining Australian resources “as US domestic” 6 Strategic Rationale – Western #1 Producer • Combination of EQR’s Mt Carbine Tungsten Mine (currently Australia’s main export source) and Saloro’s Barruecopardo Tungsten Mine (EU’s largest independent producer) under one roof offers an attractive value proposition: − Creates the largest tungsten concentrate producer in the western world (ex China, Russia, Vietnam) − Provides a platform for capitalising on horizontal growth opportunities identified, and creates critical mass - and therefore optionality - to enable consideration of a downstream component adding significant further value to the business − Leverages off complementary skill sets currently divided between the two operations − De-risking through the creation of a globally operating multi asset company − Further enhances EQR’s compelling capital markets story as an expanding critical minerals producer in times of “tectonic shifts of geopolitical interests” 7 Mt Carbine & Barruecopardo – Global Relevance • Arguably the two best producing tungsten assets today, with similar characteristics: – Both in Tier 1 locations – Similar mineralogy: Both are hosted in sheeted quartz – Complementary geology: Granite (Barruecopardo) and Metasediments (Mt Carbine) – Identical status: Both have commenced production and are ramping up – Identical mining method: Open pit blast plus truck and excavator - identical fleet – Similar processing: Crush, screen, jigs and tables; Saloro incorporates flotation and mag.sep. cleanup, producing a higher-grade product (price premium) – Identical Marketing: Both supplying the same end customers – Both operating adjacent to world renowned National Parks (strong ESG credential) EQR will have a production second only to Vietnam in ex China/ Russia producing countries, and second only to Nui Phao (Masan Group, Vietnam) compared to top producers ex China/Russia. 8 Extended EQR Marketing Plan (optionality) • As a producing asset, Saloro provides a high commercial readiness level, under combined management the focus will be on extending EQR’s existing downstream partnerships with Cronimet and Masan Group • Cronimet is a well established FeW producer and -trader (note, approx. 25% of concentrate is converted and sold as FeW globally - different end-use/applications to APT) • Masan Group is the largest integrated tungsten producer ex-China, with no production of FeW but instead all specialty products down to cemented carbides (via APT route) • Both downstream partners today already offtake all of EQR’s production from Mt Carbine • Cronimet’s and Masan Group’s (through its subsidiary H.C.Starck) presence in EU to allow for potential EU funding and grant support (ERMA collaboration) 9 Agenda WO3 Mt Carbine Project Update EQR Plan for Saloro Saloro Acquisition: Strategic Rationale Wolfram Camp: Tungsten Cluster Development Saloro Transaction Summary 10 Transaction Summary – Key Terms • EQR through its wholly-owned subsidiary, European Tungsten Pty Ltd, agreed to acquire 100% of Saloro for a nominal consideration of EUR1 • European Tungsten also acquired the benefit of all of the intercompany loans owed by Saloro to the Oaktree Group (which is approximately EUR80mio) for EUR1 (meaning no repayment of those loans to Oaktree, as now owned by EQR) • Closing conditional upon the satisfaction of certain conditions precedent, including the approval of foreign direct investment agencies in both Australia and Spain • EQR will issue 278 million shares at an issue price of $0.09 per share (representing a ~30% premium to the 15 days VWAP) and grant 78 million Options (with an exercise price of $0.10 per share, exercisable during the period of 2 years following the Completion Date) • Saloro currently has outstanding debts of approximately EUR35mio to various reputable third-party Spanish banks, at very competitive interest rates (EUR5mio repaid from Subscription proceeds, additional EUR5mio from proceeds of Oaktree options exercise) 11 Agenda WO3 Mt Carbine Project Update EQR Plan for Saloro Saloro Acquisition: Strategic Rationale Wolfram Camp: Tungsten Cluster Development Saloro Transaction Summary 12 Saloro’s Journey – 2018-2022 13 Saloro’s Journey – today 14 Plan for Saloro Operations Optimisation projects initiated and ongoing Early Focus – Sorting & Metallurgical: World class production plant - Key to work with existing management and execute on complementary skill sets - XRT Sorter - First sorter installed; intermittent operations ongoing testing ore and waste; Early results are positive upgrading >10x the feed grade with a >85% recovery on the material - Sorting will target prevention of overgrinding, free up plant capacity, reduce overall unit operating cost Well established management - (high plant availability) Well performing & cost-efficient mining contractor Metallurgical Focus - Jig including feed conditions (top & bottom size) - Fine Spirals - Hydrosizer & Coarse Spirals - Tables Circuit - Recovery focus to maximise cash recovered per ton processed – next 18-months - Example: 10% increase in recovery = +/- US$500,000/m [25t conc] (0.2% WO3 feed at 93ktpm) Mid term: - Fines recovery (finalise design and order) - Additional XRT sorting capacity – identify optimal number of XRT Sorters to integrate 15 Plan for Saloro Exploration Works World class production plant Well established management Geology: - Pit Mapping of Alteration & Fluid Flow Vectors - Structural review of pit - low angle structures & reflection on depth - Regional Mining areas - dumps & potential resources - Strike extents, repetition of JOG structures understanding - Development of Exploration Program, Budgets & Drill Priorities (high plant availability) Well performing & cost-efficient mining contractor “Find the next Barruecopardo” 16 Plan for Saloro Exploration Works “Find the next Barruecopardo” 17 Strong ESG Credentials Saloro is operating without incident beside a National Park and inside an EU Nature Network 2000 Bird Protection Zone. Environmental initiatives include: • Site wide and surrounding area Environmental Monitoring • Endangered species marking, census and radio tracking during migration (Saloro’s tracking database now sought by universities across EU) • Habitat improvements works for birds, bats, rabbits • Advancing installation of 2MW Solar plant to cover 40% site consumption • Progressive rehabilitation of waste dump + advancing studies on partial waste sales as aggregates • Saloro operations presented across Spain and EU by Regional Environmental Authorities as showpiece operation that “Sets the Standard” 18 Strong ESG Credentials Saloro has strived from Day 1 to include all stakeholders and interested parties in the development and operation of the mine. Social initiatives include: • Fluid dialogue maintained with all Local and Provincial institutions, and NGO’s • Collaboration Agreement with local council including annual contribution to municipal accounts • Collaborations with local school including presentations on interest topics related to the mine and local environment • Numerous collaborations with Salamanca University • Regular open days plus visits for target interest groups • Operations accredited under ISO 14001 & ISO 45001 19 Agenda WO3 Mt Carbine Project Update EQR Plan for Saloro Saloro Acquisition: Strategic Rationale Wolfram Camp: Tungsten Cluster Development Saloro Transaction Summary 20 Wolfram Camp Opportunity (early stage) Strategic Rationale: - Within 2-hours from Mt Carbine by good road infrastructure - Potential access to historic processing plant - Able to share management costs - Potential for a processing hub (“tungsten cluster”) - Strong potential for economic deposit - Government support 21 Wolfram Camp Opportunity (early stage) - Two Primary Exploration Zones - 477 km2 area - Over 20 historical prospects Tungsten Cluster Watershed Mt Carbine and mines - Major areas of Wolfram Camp & Bamford Hill - Historic Waste Dumps are a priority (recent work done by University of Queensland highlights potential) Wolfram Camp Cluster potential - significant deposits defined in region • Watershed: 2014 DFS by Vital Metals (2012 JORC) • Wolfram Camp 2015 Technical Report by Almonty Industries (NI 43101) 22 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